Swedbank AB Series A

Swedbank provides financial services and products in its home markets of Sweden, Estonia, Latvia and Lithuania. Co. has four segments: Swedish Banking, which is responsible for all its Swedish customers except corporates and financial institutions; Large Corporates and Institutions, which is responsible for large corporates, financial institutions and banks as well as for trading and capital market products; Baltic Banking, which operates in Estonia, Latvia and Lithuania; and Group Functions and Other. At Dec 31 2013, Co. had 731 branches and 1,396 automated teller machines. Also as of such date, Co. had total assets of SEK1.82 trillion and deposits of SEK620.85 billion.
  • TickerSWED A
  • ISINSE0000242455
  • ExchangeNasdaq Nordic Stockholm
  • SectorBanks
  • CountrySweden
Jan Erik Gjerland ...
  • Mads Thinggaard
  • Magnus Andersson
  • Patrik Brattelius

Sector Fast Comment - Swedish Banks – another bank tax proposal

Potential bank tax implementation from Adjusted gross adj. EPS impacts of –3% to –5% Negative – highlights the political risk in the sector

Nicolas McBeath

Return of the banks

We have raised our 2020–2022e EPS by 0–2%, and our target price to SEK90 (84), also supported by our 50bp cut in the cost of equity. We reiterate our BUY as we see 7% upside potential to consensus 2021e pre-provision profit, and consider Nordea attractively valued at a 2021e P/E of ~9x in light of its strong balance sheet (we estimate EUR5bn in excess capital, ~20% of the market cap).

Jan Erik Gjerland ...
  • Mads Thinggaard
  • Magnus Andersson
  • Patrik Brattelius

Sector Fast Comment - SBAB lowers list prices – should be NEUTRAL

SBAB lowers 2Y-5Y list prices… …which should be seen as an adaptation to the market No major impact on the competitive pressure - NEUTRAL

Jan Erik Gjerland ...
  • Mads Thinggaard
  • Magnus Andersson
  • Patrik Brattelius

Sector Fast Comment - Swedish mortgage pricing – August 2020

Avg. offered rate on new 3M mortgages flat m-o-m Avg. 3M margin on new mortgages up by 10bp QTD Volumes & margin support for mtg-related NII in H2’20

SWEDBANK AB increases its risk exposure and slightly lowers to Neutral

SWEDBANK AB (SE), a company active in the Money Center Banks industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 4 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date September 4, 2020, the closing price was SEK 145.36 and its expected value was estimated at SEK 141.33.

Swedbank AB: 1 director maiden bought

A director at Swedbank AB maiden bought 3,000 shares at 126.700SEK and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of...

Jan Erik Gjerland ...
  • Mads Thinggaard
  • Magnus Andersson
  • Patrik Brattelius

Sector Fast Comment - Swedish Banks – another bank tax proposal

Potential bank tax implementation from Adjusted gross adj. EPS impacts of –3% to –5% Negative – highlights the political risk in the sector

Nicolas McBeath

Return of the banks

We have raised our 2020–2022e EPS by 0–2%, and our target price to SEK90 (84), also supported by our 50bp cut in the cost of equity. We reiterate our BUY as we see 7% upside potential to consensus 2021e pre-provision profit, and consider Nordea attractively valued at a 2021e P/E of ~9x in light of its strong balance sheet (we estimate EUR5bn in excess capital, ~20% of the market cap).

Jan Erik Gjerland ...
  • Mads Thinggaard
  • Magnus Andersson
  • Patrik Brattelius

Sector Fast Comment - SBAB lowers list prices – should be NEUTRAL

SBAB lowers 2Y-5Y list prices… …which should be seen as an adaptation to the market No major impact on the competitive pressure - NEUTRAL

Jan Erik Gjerland ...
  • Mads Thinggaard
  • Magnus Andersson
  • Patrik Brattelius

Sector Fast Comment - Swedish mortgage pricing – August 2020

Avg. offered rate on new 3M mortgages flat m-o-m Avg. 3M margin on new mortgages up by 10bp QTD Volumes & margin support for mtg-related NII in H2’20

Jan Erik Gjerland ...
  • Mads Thinggaard
  • Magnus Andersson
  • Patrik Brattelius

Swedbank - ESG profile

With an established position and relation to many stakeholders in its home markets, Swedbank can help to prevent corruption, illegal transactions and market abuse. Sustainability risks include failing to spot companies with ESG issues in its lending and fund management operations. Obviously, it would also be serious if Swedbank did not come to terms with its deficiencies when it comes to AML routines. ESG profile

ING
Suvi Platerink Kosonen

Swedbank/Not a good start to the year, but we see value in SWEDA preferred senior vs SHBASS NPS debt

Swedbank started the year with a net loss as, on top of the AML deficiency fine, the bank increased its provisions on the low oil price and Covid-19 related effects. While the capital ratios sank on a combination of higher assets and lower capital, Swedbank's MDA buffer increased to 300bp from 190bp due to the lowered capital requirements. The soft earnings trends and lower capital ratios are negative for the bank's credit profile. That said, some weakness is priced in already, and we see value in SWEDA preferred debt vs SHBASS NPS paper.

ING
Alyssa Gammoudy ...
  • Hendrik Wiersma
  • Jeroen van den Broek
  • Nadège Tillier
  • Suvi Platerink Kosonen
  • Timothy Rahill

Coffee, Croissants & Credit/Mutual fund outflows, Swedbank, Deutsche Bank, bank stress tests, AT&T, TOTAL & Enel

Strategy: Substantially large outflows from mutual funds, Euro IG will be supported by ECB

ING
Suvi Platerink Kosonen

SEB vs Swedbank/Picking the right horse

We assess the capital position, capital generation capacity and MREL positions of SEB and Swedbank. Both these banks are being investigated in relation to money laundering issues. We consider SEB's buffers to be somewhat stronger and see value in the bank's preferred senior against SWEDA. Both banks are likely to continue to issue non-preferred senior (NPS) for MREL. We consider SWEDA NPS to price in a downgrade and consider SEB NPS to trade at too tight levels.

ING
Suvi Platerink Kosonen

Nordic bank green bonds/Fresh green bonds with value

Nordic banks have issued €4.25bn in green senior unsecured paper targeting 10 different UN sustainable development goals. We expect the Nordic green bond market to continue growing and become more varied also as there is no social/ sustainable bond yet issued. The first green redemptions are due in 2022.

ING
Suvi Platerink Kosonen

Swedish banks/Quality doesn't come cheap

Swedish banks have started the build-up of their loss absorption buffers slowly, which led the Swedish Riksgälden to urge the banks to take action. Swedish banks flag to issue

Christer Magnergård ...
  • Frank Maaø
  • Håkon Astrup
  • Joachim Gunell
  • Jon Masdal
  • Jørgen Lian
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolai Farstad Olsen
  • Nicolas McBeath
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Ragnhild Støer
  • Rune Majlund Dahl
  • Simen Mortensen
  • Stefan Gauffin
  • Tomi Railo

Northern Lights

Alexander Aukner ...
  • Christoffer Wang Bjørnsen
  • Jesper Ingildsen
  • Jimi Lehtonen
  • Joachim Gunell
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Eivind Sars Veddeng ...
  • Mattias Holmberg
  • Nicolas McBeath
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Christoffer Wang Bjørnsen ...
  • Frank Maaø
  • Joachim Gunell
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Eivind Sars Veddeng ...
  • Frank Maaø
  • Håkon Astrup
  • Joachim Gunell
  • Karl-Johan Bonnevier
  • Mattias Holmberg
  • Nicolas McBeath
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Simen Mortensen
  • Stefan Gauffin

Nothern Lights

SWEDBANK AB increases its risk exposure and slightly lowers to Neutral

SWEDBANK AB (SE), a company active in the Money Center Banks industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 4 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date September 4, 2020, the closing price was SEK 145.36 and its expected value was estimated at SEK 141.33.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the we...

Expert Corporate Governance Service (ECGS)

Swedbank – AGM 28 May 2020

In general, Swedbank is in compliance with the Swedish regulations relating to the organisation and procedures of the AGM.   ECGS notes that Sweden's Financial Supervisory Authority has launched an investigation together with its Estonian equivalent into Swedbank, in connection with possible breaches of anti-money laundering (AML) regulation in the Baltic states. In addition, ECGS notes that the Company is also being investigated by the ECB and US authorities regarding the same matter. All investigations are currently still pending.   Under ITEMS 10a-10u discharge of the board of directors...

Expert Corporate Governance Service (ECGS)

Swedbank - EGM 19 June 2019

In general, Swedbank is in compliance with the Swedish regulations relating to the organisation and procedures of the EGM. Background On February 20, 2019, the Swedish public television service (SVT) released an episode of an investigative television programme ³Uppdrag granskning´ alleging that Swedbank may have been used for money laundering over a 12-year period, including transactions linked to the scandal-hit Danske Bank A/S. Documents seen by SVT showed significant transactions between Danske Bank and Swedbank during the same period, including accounts belonging to companies without con...

Expert Corporate Governance Service (ECGS)

SwedBank, March 28, 2019

In general, Swedbank is in compliance with the Swedish regulations relating to the organisation and procedures of the AGM. Under ITEM 10, discharge of the board of directors & CEO is sought. ECGS notes that Swedbank appears to have become increasingly involved in the same money laundering scandal that hit Danish competitor Danske Bank A/S, following an episode of a Swedish investigative television programme. In connection with said programme, Sweden's Financial Supervisory Authority launched an investigation into the Company together with the equivalent authority in Estonia, since many of the...

Swedbank – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

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