Yahoo Finance

• Profit for Full Year 2024: Increased by 2% compared to the previous year.

• Q4 2024 Profit: SEK8.5 billion.

• Net Interest Income: Declined during 2024; stable during Q4 due to timing effects.

• Cost-to-Income Ratio: 0.34 for the full year; 0.36 for Q4.

• Return on Equity: 17.1% for the full year; 15.8% for Q4.

• Dividend Proposal for 2024: SEK21.70 per share, corresponding to 70% of the profit.

• Mortgage Volumes in Sweden: Decreased by SEK2 billion in Q4.

• Corporate Lending in Sweden: Decreased by SEK8 billion in Q4.

• Private Lending in Baltics: Increased by SEK2 billion in Q4.

• Corporate Lending in Baltics: Increased by SEK6 billion in Q4.

• Customer Deposits: Increased by SEK4 billion in Q4, excluding FX impact.

• Net Commission Income: Stable in Q4.

• Net Gains and Losses: SEK923 million in Q4.

• Total Expenses for 2024: SEK25.4 billion.

• Credit Impairment Recoveries: SEK394 million in Q4.

• CET1 Capital Ratio: 19.8% with a buffer of 460 basis points above requirements.

• Warning! GuruFocus has detected 5 Warning Sign with SWDBF.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Swedbank AB (SWDBF) delivered a strong financial performance in 2024, with a 2% increase in profit compared to the previous year.

• The company maintained a solid return on equity of 17.1% for the full year and 15.8% for the fourth quarter.

• Swedbank AB (SWDBF) has a strong capital position, with a CET1 capital ratio of 19.8%, providing a buffer of around 460 basis points above requirements.

• The Board of Directors has proposed a dividend of SEK21.70 per share, corresponding to 70% of the profit, reflecting a new dividend policy of 60% to 70% payout.

• The company has shown strong growth in its Baltic operations, with increased lending and deposits, and a focus on sustainable finance, as evidenced by the growth of its Sustainable Asset Register.

Negative Points

• Net interest income declined during 2024, with challenges in maintaining stable income due to timing effects and lower customer interest rates.

• Swedbank AB (SWDBF) faced increased competition in the Swedish mortgage market, leading to a slight decline in mortgage volumes in the third and fourth quarters.

• The introduction of new bank taxes in Latvia and Lithuania is expected to impact the company's business strategy and profitability in these regions.

• The company is dealing with uncertainties related to ongoing US investigations, which could potentially result in fines, affecting capital reserves.

• Swedbank AB (SWDBF) is experiencing muted corporate loan demand in Sweden, impacting overall lending growth.