Swedbank (SWED) Q4 2024 earnings summary

Executive summary

• Full-year 2024 profit rose 2% to SEK 34,866m, with Q4 profit at SEK 8,465m; return on equity was 17.1% and cost-to-income ratio 0.34.

• Maintained solid credit quality, strong liquidity, and capital position; credit impairment provision recoveries in Q4 and full year.

• Board proposes a dividend of SEK 21.70 per share (70% payout), reflecting a new policy of 60–70% of profit.

• Strategic focus on operational efficiency, digital transformation, and sustainability, with significant investments in advisory and omnichannel platforms.

• Maintained leading mortgage position in all home markets; lending and deposits grew in the Baltics; strong inflows to asset management and pension businesses.

Financial highlights

• Net interest income for 2024 was SEK 49,267m, down 3% year-over-year; net commission income increased 11% to SEK 16,716m.

• Total expenses for 2024 were SEK 25,376m, up 5%, mainly due to higher staff and IT costs.

• Customer deposits increased by SEK 4bn in Q4 (excluding FX), with strong growth in the Baltics.

• Net gains and losses on financial items up 25% to SEK 3,687m for the year; Q4 net gains and losses at SEK 923m.

• SEK 757m impairment of intangible assets in Q4 due to IT investment front-loading and discontinued projects.

Outlook and guidance

• Cost guidance for 2025 set at SEK 26.5bn, including SEK 1bn in temporary investments.

• Home markets expected to be among Europe's fastest growing in 2025, supported by strong public finances and lower rates.

• Expectation of further policy rate cuts in 2025, but with increased uncertainty on timing and magnitude.

• Updated strategic plan to be presented before summer 2025.

• Funding plan for 2025 aligns with 2024, with SEK 115bn in long-term funding maturing.