Swedbank (SWED) Q4 2025 earnings summary

Executive summary

• Achieved a full-year return on equity of 15.2% for 2025, with net profit at SEK 32.8bn and a proposed dividend of SEK 29.80 per share, including a SEK 9.35 special dividend, reflecting a robust capital position.

• Completed acquisitions of Stabelo and Entercard, expanding mortgage and consumer finance offerings and contributing to lending growth.

• Maintained strong capital generation and robust asset quality, positioning for sustainable growth and profitability.

• Customer availability and efficiency improved, with over 80% of calls answered within three minutes in Sweden.

Financial highlights

• Earnings per share for 2025 reached SEK 28.98; full-year profit was SEK 32,759m.

• CET1 capital ratio at 17.8%, with a buffer of 3 percentage points above requirements.

• Lending increased by SEK 108bn in 2025, with SEK 47bn to corporates, SEK 44bn from acquisitions, and SEK 17bn in organic private loans.

• Cost/income ratio was 0.36 for both Q4 and the full year.

• VAT recoveries of SEK 1.5bn in 2025, with SEK 963m received in Q4.

Outlook and guidance

• Cost guidance for 2026 is SEK 27.5bn, reflecting a 3% increase, including run-rate costs from recent acquisitions.

• Committed to maintaining a return on equity of at least 15% and a cost/income ratio not above 0.40.

• Loan growth expected to continue, especially in the Baltics, with muted demand in Sweden but strong fundamentals.

• No major VAT refunds anticipated after 2026.

• Focus on strict cost control, efficiency, and prudent underwriting standards.