Swedbank (SWED) Q1 2026 earnings summary

Executive summary

• Delivered stable Q1 2026 results amid geopolitical and economic uncertainty, with net profit of SEK 7.3 billion, earnings per share at SEK 6.50, and return on equity at 13.3%.

• Cost-to-income ratio was 0.40, and CET1 capital ratio stood at 17.5% with a 270bps buffer above requirements.

• Lending and deposit volumes grew by 1% quarter-over-quarter, with corporate lending up SEK 9 billion.

• Asset quality remained solid, with credit impairments at SEK 164 million and a credit impairment ratio of 3bps.

• Continued execution of transformation and efficiency programs, including reorganisation and strategic acquisitions.

Financial highlights

• Net interest income increased 3% sequentially to SEK 11,147 million, supported by loan growth and Entercard contribution.

• Net commission income decreased 2% from Q4 to SEK 4,172 million, normalizing after one-off effects.

• Total expenses rose 10% quarter-over-quarter to SEK 6,881 million, impacted by seasonality, VAT, acquisitions, and salary increases.

• Credit impairments totaled SEK 164 million, down 54% sequentially.

• Total assets under management reached SEK 2.6 trillion.

Outlook and guidance

• Swedish, Estonian, and Latvian GDP growth forecast at 2% for 2026; Lithuania at 3%.

• Cost guidance for 2026 is SEK 27.5 billion, excluding extraordinary costs; SEK 1.3 billion in extraordinary costs expected, mainly for integration and restructuring.

• Annual cost savings of SEK 1 billion expected by 2028 from reorganisation and integration, with FTEs to reduce from 17,350 to 16,800 by end of 2027.

• Dividend payout ratio targeted at 60-70%, with a normalized CET1 buffer of 200bps and ROE of at least 15%.