Swedbank AB (SWDBY) AI Stock Analysis

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Swedbank AB

(OTC:SWDBY)

79Outperform

Swedbank's overall strong financial performance, characterized by high profitability and improved cash flow, is a significant strength. Technical indicators suggest positive momentum, though caution is advised due to potential overbought conditions. Valuation metrics are attractive, with a low P/E ratio and high dividend yield. Earnings call insights reaffirm robust fundamentals but highlight areas of concern, such as declining net interest income and regional tax impacts. These factors collectively position Swedbank as a solid investment choice in the regional banking sector.

Swedbank AB (SWDBY) vs. S&P 500 (SPY)

Market Cap

$29.92B

Dividend Yield7.65%

Average Volume (3M)2.53K

Price to Earnings (P/E)9.2

Beta (1Y)0.77

Revenue Growth0.37%

EPS Growth-1.32%

CountryUS

Employees16,933

SectorFinancial

Sector Strength84

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.75

Shares Outstanding1,132,006,000

10 Day Avg. Volume931

30 Day Avg. Volume2,527

Financial Highlights & Ratios

PEG Ratio-12.25

Price to Book (P/B)1.37

Price to Sales (P/S)0.00

P/FCF Ratio6.25

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Swedbank AB Business Overview & Revenue Model

Company DescriptionSwedbank AB (SWDBY) is a leading financial institution based in Sweden, operating primarily in the Nordic and Baltic regions. The bank provides a wide range of financial services, including retail, corporate, and investment banking, asset management, and insurance products. With a strong emphasis on sustainability and digital innovation, Swedbank aims to meet the diverse financial needs of its customers through comprehensive and tailored solutions.

How the Company Makes MoneySwedbank AB generates revenue through multiple streams. A significant portion of its income comes from interest earned on loans and advances to both retail and corporate clients. The bank also earns fees and commissions from a variety of financial services such as asset management, investment banking activities, and payment processing. Additionally, Swedbank's insurance products contribute to its revenue through premiums collected. The bank benefits from strategic partnerships with businesses and financial institutions, enhancing its ability to offer competitive financial solutions. Swedbank's focus on digital banking services helps in cost reduction and expands its customer base, further driving profitability.

Swedbank AB Financial Statement Overview

Summary

Swedbank AB's financial performance is strong, driven by impressive profit margins and revenue growth. The balance sheet reflects stability with no debt, though the equity ratio indicates a higher leverage. Cash flow has improved significantly, showing better cash management. While the company is financially robust, attention to operational efficiencies can further enhance performance.

Income Statement

Very Positive

Swedbank AB has shown strong revenue growth with a consistent increase year-over-year, notably a 4.8% increase from 2023 to 2024. The net profit margin is robust at 47.5% in 2024, indicating high profitability. However, there is no reported EBIT or EBITDA margin for 2024, which limits a comprehensive understanding of operational efficiency.

Balance Sheet

Very Positive

The balance sheet is strong, with no reported debt in 2024, demonstrating excellent financial stability. The equity ratio is healthy at 7.3%, and the return on equity is impressive at 15.9%, indicating efficient use of equity to generate profits. However, the comparatively low equity ratio suggests high leverage relative to industry norms.

Cash Flow

Positive

Operating cash flow improved significantly to 80.8 billion in 2024, showing a positive turnaround from negative cash flow in 2023. Free cash flow also improved considerably. However, the operating cash flow to net income ratio is approximately 2.3, which indicates strong cash generation relative to net income but could be better balanced.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
95.05B	73.33B	72.25B	52.48B	45.91B	45.09B
	Gross Profit
95.05B	73.33B	73.12B	52.48B	45.91B	45.09B
	EBIT
32.07B	44.19B	47.42B	39.48B	25.82B	16.78B
	EBITDA
0.00	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
34.64B	34.87B	34.13B	21.36B	20.87B	12.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
363.21B	325.60B	252.99B	365.99B	360.15B	293.81B
	Total Assets
3.10T	3.01T	2.86T	2.85T	2.75T	2.59T
	Total Debt
0.00	916.01B	866.22B	881.36B	806.11B	770.22B
	Net Debt
-363.21B	590.41B	-252.99B	515.37B	445.96B	476.41B
	Total Liabilities
2.90T	2.79T	2.66T	2.68T	806.11B	770.22B
	Stockholders Equity
200.39B	218.87B	198.76B	176.06B	161.67B	155.17B
Cash Flow		Free Cash Flow
43.81B	80.41B	-146.00B	-18.98B	49.16B	108.87B
	Operating Cash Flow
44.24B	80.82B	-145.15B	-18.62B	49.41B	109.24B
	Investing Cash Flow
-201.00M	-147.00M	-418.00M	691.00M	628.00M	1.38B
	Financing Cash Flow
-17.69B	-12.64B	32.17B	10.02B	14.15B	-8.70B

Swedbank AB Technical Analysis

Technical Analysis Sentiment

Positive

Last Price26.85

Price Trends

50DMA

23.69

Positive

100DMA

22.22

Positive

200DMA

20.55

Positive

Market Momentum

MACD

0.91

Negative

RSI

75.49

Negative

STOCH

97.73

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWDBY, the sentiment is Positive. The current price of 26.85 is above the 20-day moving average (MA) of 25.05, above the 50-day MA of 23.69, and above the 200-day MA of 20.55, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 75.49 is Negative, neither overbought nor oversold. The STOCH value of 97.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWDBY.

Swedbank AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWDBY	79 Outperform	$29.92B	9.16	17.18%	7.65%	0.37%	-1.32%
HBAN	77 Outperform	$23.48B	12.43	10.30%	3.85%	7.55%	17.46%
FCNCA	76 Outperform	$25.54B	11.19	11.46%	0.37%	0.33%	-3.13%
RF	75 Outperform	$20.26B	10.88	11.33%	4.39%	1.05%	12.14%
MTB	74 Outperform	$30.07B	12.55	9.39%	2.88%	1.20%	1.12%
FITB	69 Neutral	$26.37B	12.55	11.71%	3.69%	5.75%	0.68%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%

* Financial Sector Average

Performance Comparison

SWDBY

Swedbank AB

26.85

8.13

43.43%

FITB

Fifth Third Bancorp

39.07

2.84

7.84%

FCNCA

First Citizens BancShares

1,918.20

144.42

8.14%

HBAN

Huntington Bancshares

15.94

2.60

19.49%

MTB

M&T Bank

185.74

37.24

25.08%

Regions Financial

22.25

3.59

19.24%

Swedbank AB Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 14.11%|

Next Earnings Date:Jul 17, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Swedbank's strong financial performance in terms of profitability, cost control, and sustainability initiatives. However, challenges were noted in the decline of net interest income, net commission income, and the impact of increased taxes in Latvia. The sentiment is balanced with both positive achievements and notable challenges.

Q1-2025 Updates

Positive Updates

Strong Return on Equity

Swedbank reported a return on equity of 15.2% for the first quarter, indicating robust profitability.

Earnings Per Share Increase

Earnings per share reached SEK7.26 for the first quarter, reflecting strong financial performance.

Cost Control and Efficiency

The bank demonstrated strict cost control with a cost-to-income ratio of 0.35 and a decrease in total expenses by SEK625 million during the quarter.

Credit Quality and Capital Position

Swedbank maintained solid credit quality with credit impairment reversals of SEK140 million and a strong capital buffer of 4.5 percentage points.

Sustainability Initiatives

Swedbank's Sustainable Asset Register amounted to SEK136 billion, with successful issuance of two green bonds and a third of arranged bonds classified as sustainable.

Customer Service Improvements

Significant improvements in customer service, with more than 50% of incoming calls answered within three minutes compared to 20% at the beginning of the quarter.

Negative Updates

Net Interest Income Decline

Net interest income declined by SEK785 million due to lower market rates and fewer days in the quarter.

Net Commission Income Decrease

Net commission income decreased, driven by seasonally lower card commissions and falling stock prices.

Challenges in Swedish Mortgage Market

Mortgage volumes decreased by SEK2 billion in Sweden, facing tough competition and maintaining balance between volumes and margins.

Impact of Latvian Bank Tax

Increased Latvian bank tax added SEK140 million in costs, impacting the bank's strategic positioning in Latvia.

Company Guidance

In Swedbank's first-quarter results presentation for 2025, the bank demonstrated resilience despite increased global economic uncertainty. Key financial metrics included a robust return on equity of 15.2% and earnings per share of SEK 7.26. The bank's net interest income remained strong, although it experienced a decline of SEK 785 million, attributed to lower market rates, fewer days in the quarter, and currency effects. The cost-to-income ratio was maintained at 0.35, and credit quality remained solid with credit impairment reversals of SEK 140 million. Swedbank's capital position was strong with a CET1 capital ratio of 19.7% and a capital buffer of 4.5 percentage points. Despite challenges, the bank continued to show strong performance in its home markets, notably with strong public finances and innovative companies positioning them well for future growth. Additionally, Swedbank made strategic moves to strengthen its corporate segment, including a partnership with SpareBank 1 to establish a new Nordic investment bank.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.