In This Article:
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Net Income: SEK9.4 billion, a 9% increase for the third quarter.
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Net Interest Income: Stable, with lower lending rates offset by lower funding costs.
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Net Commission Income: Increased by 3%, driven by asset management and core business.
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Cost to Income Ratio: 0.31.
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Return on Equity: 18.4% for the third quarter.
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Earnings Per Share: SEK8.30 for the third quarter.
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Credit Impairments: SEK270 million for the third quarter.
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Capital Buffer: 5.2 percentage points.
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CT1 Capital Ratio: 20.4% with a buffer of 520 basis points above the requirement.
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Loan Portfolio: Stable, excluding a negative FX impact of SEK3 billion.
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Customer Deposits: Decreased by SEK7 billion, excluding a SEK2 billion negative FX impact.
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Corporate Lending in Sweden: Decreased by SEK7 billion.
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Private Lending in the Baltics: Increased by SEK3 billion.
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Corporate Lending in the Baltics: Increased by SEK6 billion.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Swedbank AB (SWDBF) delivered a strong third-quarter result with a 9% increase, amounting to SEK9.4 billion.
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The company maintained a solid return on equity of 18.4% and a low cost-to-income ratio of 0.31.
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Net commission income increased by 3%, driven by asset management and core business activities.
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Swedbank AB (SWDBF) has a strong capital position with a buffer of 5.2 percentage points and a CT1 capital ratio of 20.4%.
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The bank continues to invest in improving its systems, fighting fraud, and enhancing customer experience, including a new digital savings platform.
Negative Points
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The global economy faces challenges such as geopolitical uncertainty, low growth, and high debt, impacting Swedbank AB (SWDBF)'s operating environment.
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Corporate lending in Sweden decreased by SEK7 billion, primarily due to property management, indicating a sluggish market.
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Customer deposits decreased by SEK7 billion in Sweden, reflecting seasonal effects and market conditions.
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The bank faces ongoing cyber threats, requiring high preparedness and continuous investment in security measures.
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There is uncertainty regarding the US investigations, with no clear timeline or potential financial impact, affecting capital management decisions.
Q & A Highlights
Q: Can you explain the impact of the reset of covered bond swaps on net interest income (NII) and whether further benefits are expected? A: Anders Karlsson, CFO, explained that while there was a positive impact from the reset of liability swaps, asset swaps also reprice over the quarter. The primary reason for stable NII was the repricing of savings accounts and transaction accounts, which offset the gradual rolling effect on the mortgage side. Funding costs are expected to decrease gradually as rates fall.