FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2024
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Swedbank – Report for the First quarter│ 2024│1
Interim report
First quarter | January – March 2024
25 April 2024
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Swedbank – Report for the First quarter│ 2024│2
First quarter 2024
”Swedbank delivered
a strong and sustainable
result”
Jens Henriksson
President and CEO
Financial information Q1 Q4 Q1
SEKm 2024 2023 % 2023 %
Total income 18 087 19 029 -5 17 387 4
Net interest income 12 599 13 329 -5 11 936 6
Net commission income 3 976 3 754 6 3 660 9
Net gains and losses on financial items 682 845 -19 916 -26
Other income¹ 831 1 101 -25 875 -5
Total expenses 6 185 6 411 -4 6 410 -4
of which administrative fines 0 0 890
Profit before impairments, bank taxes and resolution fees 11 902 12 618 -6 10 977 8
Impairment of tangible and intangible assets 0 74 -100 0
Credit impairment 144 363 -60 777 -81
Bank taxes and resolution fees 1 104 1 102 0 518
Profit before tax 10 654 11 080 -4 9 681 10
Tax expense 2 226 2 758 -19 2 121 5
Profit for the period 8 428 8 321 1 7 560 11
Earnings per share, SEK, after dilution 7.47 7.38 6.71
Return on equity, % 16.9 16.9 17.0
C/I ratio 0.34 0.34 0.37
Common Equity Tier 1 capital ratio, % 19.3 19.0 18.3
Credit impairment ratio, % 0.03 0.08 0.16
1) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures, and Other income from the Group
income statement.
A strong result with stable business volumes.
Low credit impairments in a weak economy.
New organisation strengthens service and offering
for customers.
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Swedbank – Report for the First quarter│ 2024│3
CEO Comment
Swedbank delivered a strong and sustainable result.
Despite global concerns such as the war in Europe,
turbulence in the Middle East and climate change, I still
feel optimistic about the economic outlook.
The global economy has been surprisingly resilient with
stable growth while inflation is now approaching the
target level. In the U.S. inflation remained high, while it
continued to fall in the euro zone.
In Latvia and Lithuania, the recovery has been rapid, and
inflation has come down to normal levels. Estonia is
exiting the recession. In Sweden, the recovery is in sight
and the Riksbank confirmed that inflation and interest
rates are headed lower. Fiscal policy has been
restrained and there is plenty of room for reforms in the
longer term.
Swedbank’s result for the quarter amounted to SEK
8 428m and the return on equity was 16.9 per cent. Net
interest income decreased, while commission income
increased.
Expenses decreased and the cost/income ratio was
0.34, unchanged from the previous quarter. The number
of employees has increased more than forecast,
however, due to lower staff turnover. A temporary hiring
freeze has therefore been introduced with the exception
of business-critical positions. The Anti Financial Crime
unit is being integrated into Group Products & Advice
with an increased focus on quality, efficiency and digital
execution. Now we are taking the next step to be at the
forefront in the fight against financial crime.
Our credit quality is solid and we maintain a thorough
and conservative lending process for both private and
corporate customers. The capital buffer increased to
4.2 percentage points and Swedbank has a strong
liquidity position.
Swedbank is the leader in mortgage loans in all our
home markets. Despite tough competition, our lending
increased in the quarter. In Estonia, Latvia and Lithuania
activity was high. In Sweden, the market was cautious.
Despite this, Swedbank has increased through own
channels mortgage volumes in Sweden for six
consecutive months.
Deposits are following the development of the market.
Deposits increased in Sweden, while they were stable in
the Baltic markets.
Our promise is to make our customers’ financial lives
easier. During the quarter, we strengthened our
organisation in Sweden to customise our services and
adapt our offering to customer needs.
Swedish Banking plays a focused and important role for
private customers and micro corporate customers. The
business area will increase availability and serve as an
engine for the entire Swedish market. Customers with
more complex needs will receive dedicated service
throughout the country from our specialists and
advisers in the new business area, Premium and Private
Banking. Corporate customers who need specialised
expertise have been brought together under the
Corporates and Institutions business area and have
access to our entire product offering.
Fraud is a serious problem for society. In February, all
the major banks in Sweden held a very constructive
meeting with the government. Work is now underway
throughout the banking sector. Swedbank is working
continuously to develop our products, systems and
services in order to minimise the risk that our
customers will be defrauded. Among other things, we
have further strengthened protections in connection
with digital transfers. And more is being done.
Sustainability is at the core of our business strategy. To
strengthen our green advice and support real estate
customers, we have become a minority owner in the
company Hemma and have initiated collaborations with
Ramboll and Agronod. With our collective expertise, we
can help customers implement a green and smart
energy transition.
During the quarter, we signed the Poseidon Principles, a
global framework that integrates climate considerations
into lending decisions within ship finance. This
improves our ability to help the shipping industry reduce
its carbon emissions.
Our green zero-margin loan in Estonia and Latvia was a
success in 2023, and with demand remaining robust, we
launched a green offering in all three Baltic markets in
March.
Swedbank cares deeply about people’s financial health.
To build on our financial literacy work, we established
the Institute for Financial Health in Sweden on 1
February. In Latvia, we have established a foundation to
support educational initiatives that contribute to
society’s growth and development.
Lastly, I am proud as usual of our customers’ societal
engagement. Together we are making a difference.
During the quarter, our investors in Swedbank
Humanfond donated SEK 55m to charity. The funds
were distributed among 73 different charity
organisations. In addition, Swedbank’s dividend
contributes, not least through our owner foundations.
Our customers’ future is our focus.
Jens Henriksson
President and CEO
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Swedbank – Report for the First quarter│ 2024│4
Table of contents
Financial overview 5
Important to note 6
Group development 6
Volume trend by product area 7
Credit and asset quality 9
Funding and liquidity 9
Ratings 9
Operational risks 10
Capital and capital adequacy 10
Investigations 11
Other events 11
Events after the end of the period 11
Business areas
Swedish Banking 12
Baltic Banking 13
Corporates and Institutions 14
Premium and Private Banking 15
Group Functions and Other 16
Financial statements – Group
Income statement, condensed 17
Statement of comprehensive income,
condensed 19
Balance sheet, condensed 20
Statement of changes in equity, condensed 21
Cash flow statement, condensed 22
Notes to the financial statements
Note 1 Accounting policies 23
Note 2 Critical accounting estimates 23
Note 3 Changes in the Group structure 23
Note 4 Operating segments (business areas) 24
Note 5 Net interest income 28
Note 6 Net commission income 29
Note 7 Net gains and losses on financial items 30
Note 8 Net insurance income 31
Note 9 Other general administrative expenses 31
Note 10 Credit impairment 32
Note 11 Bank taxes and resolution fees 34
Note 12 Loans 36
Note 13 Credit impairment provisions 37
Note 14 Credit risk exposures 40
Note 15 Intangible assets 41
Note 16 Amounts owed to credit institutions 41
Note 17 Deposits and borrowings from
the public 41
Note 18 Debt securities in issue, senior non-
preferred liabilities and subordinated liabilities 42
Note 19 Derivatives 42
Note 20 Valuation categories for financial
instruments 43
Note 21 Financial instruments recognised at
fair value 45
Note 22 Assets pledged, contingent liabilities
and commitments 46
Note 23 Offsetting financial assets and
liabilities 47
Note 24 Capital adequacy,
consolidated situation 48
Note 25 Internal capital requirement 50
Note 26 Risks and uncertainties 50
Note 27 Related-party transactions 51
Note 28 Swedbank’s share 52
Financial statements – Swedbank AB 53
Alternative performance measures 58
Signatures of the Board of Directors and
the President 60
Review report 61
Publication of financial information 62
More detailed information can be found in Swedbank’s
Fact book, www.swedbank.com/factbook
.
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Swedbank – Report for the First quarter│ 2024│5
Financial overview
Income statement Q1 Q4 Q1
SEKm 2024 2023 % 2023 %
Net interest income 12 599 13 329 -5 11 936 6
Net commission income 3 976 3 754 6 3 660 9
Net gains and losses on financial items 682 845 -19 916 -26
Other income¹ 831 1 101 -25 875 -5
Total income 18 087 19 029 -5 17 387 4
Staff costs 3 700 3 632 2 3 466 7
Other expenses 2 485 2 778 -11 2 055 21
Administrative fines 0 0 890
Total expenses 6 185 6 411 -4 6 410 -4
Profit before impairments, bank taxes and resolution
fees 11 902 12 618 -6 10 977 8
Impairment of tangible and intangible assets 0 74 -100 0
Credit impairment 144 363 -60 777 -81
Bank taxes and resolution fees 1 104 1 102 0 518
Profit before tax 10 654 11 080 -4 9 681 10
Tax expense 2 226 2 758 -19 2 121 5
Profit for the period 8 428 8 321 1 7 560 11
1) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures, and
Other income from the Group income statement.
Q1 Q4 Q1
Key ratios and data per share 2024 2023 2023
Return on equity, % 16.9 16.9 17.0
Earnings per share before dilution, SEK² 7.49 7.40 6.73
Earnings per share after dilution, SEK² 7.47 7.38 6.71
C/I ratio 0.34 0.34 0.37
Equity per share, SEK¹ 170.7 176.7 154.1
Loans to customers/deposit from customers ratio, % 141 145 137
Common Equity Tier 1 capital ratio, % 19.3 19.0 18.3
Tier 1 capital ratio, % 21.9 20.6 20.1
Total capital ratio, % 24.3 23.1 23.1
Credit impairment ratio, % 0.03 0.08 0.16
Share of Stage 3 loans, gross, % 0.52 0.43 0.32
Total credit impairment provision ratio, % 0.40 0.39 0.37
Liquidity coverage ratio (LCR), %² 180 172 160
Net stable funding ratio (NSFR), % 126 124 120
1) The number of shares and calculation of earnings per share are specified in Note 28.
2) The liquidity coverage ratio has been re-calculated and figures prior to 2024 have been adjusted.
Balance sheet data 31 Mar 31 Dec 31 Mar
SEKbn 2024 2023 % 2023 %
Loans to customers 1 791 1 782 0 1 791 0
Deposits from customers 1 266 1 230 3 1 303 -3
Equity attributable to shareholders of the parent
192 199 -3 173 11
Total assets 3 079 2 856 8 3 036 1
Risk exposure amount 859 847 1 806 7
Definitions of all key ratios can be found in Swedbank’s Fact book on page 77.
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Swedbank – Report for the First quarter│ 2024│6
Important to note
As of the first quarter of 2024, the operations in
Premium and Private Banking are reported separately as
a new business area. The unit was previously reported
within Swedish Banking. Corporate customers managed
by their own advisor have been transferred to
Corporates and Institutions. Comparative figures have
been restated. In addition, several smaller support
functions have been transferred between the business
areas and Group Functions and Other.
The liquidity coverage ratio (LCR) has been re-
calculated and figures prior to 2024 have been adjusted,
and can be found on pages 5, 9 and 55 as well as in
Note 24 of the interim report.
This interim report contains alternative performance
measures that Swedbank considers valuable
information for the reader, since they are used by the
executive management for internal governance and
performance measurement as well as for comparisons
between reporting periods. Further information on the
alternative performance measures used in the interim
report can be found on page 57.
Group development
Result first quarter 2024 compared with fourth quarter
2023
Swedbank’s profit was stable at SEK 8 428m (8 321).
Income decreased, as did expenses, tax expenses and
credit impairments. Foreign exchange effects negatively
impacted profit by SEK -97m before impairment, bank
taxes and resolution fees.
The return on equity was 16.9 per cent (16.9) and the
cost/income ratio was 0.34 (0.34).
Income decreased to SEK 18 087m (19 029) due to
lower net interest income, lower other income and lower
net gains and losses on financial items. Net
commission income increased. Foreign exchange
effects negatively impacted income by SEK 145m.
Net interest income decreased by 5 per cent to SEK
12 599m (13 329). The decrease was mainly related to
lower deposit margins as a result of a higher share of
deposit volume at higher interest rates. Slightly lower
average lending volumes and higher funding costs
contributed as well. Net interest income was also lower
due to positive adjustments of deposit guarantee and
origination fees in the previous quarter as well as fewer
days in the quarter and foreign exchange effects.
Net commission income increased by 6 per cent to SEK
3 976m (3 754). Income from asset management
increased, mainly due to the market performance.
Income from the card business was seasonally lower
during the quarter.
Net gains and losses on financial items decreased to
SEK 682m (845). The largest part of the change was
related to positive valuation effects in the previous
quarter on derivatives within Group Treasury.
Other income decreased by 25 per cent to SEK 831m
(1 101). The decrease was mainly related to valuation
effects within the insurance business. Underlying
income from the insurance business increased, while
the result from partly owned companies increased
slightly.
Expenses decreased by 4 per cent to SEK 6 185m
(6 411) due to seasonally lower consulting expenses
and marketing activities, among other things. AML-
related investigation expenses amounted to SEK 63m
(106). Foreign exchange effects reduced expenses by
SEK 48m.
Credit impairments amounted to SEK 144m (363).
Rating and stage migrations accounted for SEK 403m
(584), while post model adjustments decreased by SEK
349m (-140). Updated macroeconomic scenarios
increased credit impairments by SEK 25m (174). For
individually assessed loans, credit impairments
increased by SEK 302m (414).
Bank taxes and resolution fees amounted to SEK
1 104m (1 102). Latvia introduced a temporary bank tax
in the first quarter of 2024, which to some extent was
offset by the discontinuation of the resolution fee in the
Baltic countries.
The tax expense amounted to SEK 2 226m (2 758),
corresponding to an effective tax rate of 20.9 per cent
(24.9). The lower effective tax rate in the first quarter
was mainly because the fourth quarter of 2023 included
additional deferred tax of SEK 556m related to an
anticipated extra dividend from the Estonian subsidiary
Swedbank AS.
Result January-Mars 2024 compared with January-
Mars 2023
Swedbank’s profit increased to SEK 8 428m (7 560) due
to higher income, lower expenses and lower credit
impairments. Bank taxes in the Baltic countries
negatively impacted profit, which was partly offset by
lower resolution fees. Expenses decreased due to both
the Swedish FSA’s administrative fine and the
settlement with the Office of Foreign Assets Control
(OFAC) in Q1 2023. Foreign exchange effects positively
impacted profit by SEK 13m before impairments, bank
taxes and resolution fees.
The return on equity was 16.9 per cent (17.0) and the
cost income ratio was 0.34 (0.37).
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Swedbank – Report for the First quarter│ 2024│7
Jan-Mar Jan-Mar Jan-Mar
Income statement, SEKm 2024 2023¹ 2023
Total income 18 087 17 387 17 387
Total expenses 6 185 5 520 6 410
of which administrative fines 0 890
Profit before tax 10 654 10 571 9 681
Profit for the period 8 428 8 450 7 560
Return on equity, % 16.9 19.0 17.0
C/I ratio 0.34 0.32 0.37
1) Income statement excluding expenses for the
administrative fines.
Income increased to SEK 18 087m (17 387) mainly due
to higher net interest income. Net commission income
also increased, while net gains and losses on financial
items and other income decreased. Foreign exchange
effects positively impacted profit by SEK 14m.
Net interest income increased by 6 per cent to SEK 12
599m (11 936). Net interest income was positively
impacted mainly by higher deposit margins as a result
of higher market rates.
Net commission income increased by 9 per cent to SEK
3 976m (3 660). The increase was primarily related to
asset management, which benefitted from the market
upturn.
Net gains and losses on financial items decreased by 26
per cent to SEK 682m (916), driven by negative
valuation effects from derivatives within Group
Treasury. This was offset to a certain extent by
valuation effects on derivatives within Corporates and
Institutions.
Other income decreased by 5 per cent to SEK 831m
(875). The decline mainly related to lower income from
Bankgirocentralen and Entercard, as well as valuation
effects within the insurance operations.
Expenses decreased by 4 per cent to SEK 6 185m (6
410). Adjusted for the Swedish FSA’s administrative fine
and the settlement with OFAC in the first quarter of
2023, expenses increased. Staff costs increased
primarily due to higher salaries and more employees.
AML-related investigation expenses amounted to SEK
63m (106). High inflation contributed to increased
expenses.
Credit impairments amounted to SEK 144m (777).
Rating and stage migrations as well as increased
provisions for individually assessed loans were offset
by decreased post model adjustments.
Bank taxes and resolution fees amounted to SEK 1
104m (518). The increase was mainly due to the fact
that Lithuania and Latvia introduced temporary bank
taxes.
The tax expense amounted to SEK 2 226m (2 121),
corresponding to an effective tax rate of 20.9 per cent
(21.9). The lower effective tax rate in the first quarter of
2024 was mainly because the first quarter of 2023
included a non-deductible administrative fine from the
Swedish FSA.
Volume trend by product area
Swedbank mainly conducts business in the product
areas of lending, deposits, fund savings and life
insurance, and payments.
Lending
Lending to customers increased by SEK 9bn to SEK
1 791bn (1 782) in the quarter. Compared to the first
quarter of 2023 lending was unchanged. Foreign
exchange effects positively impacted lending volumes
by SEK 12bn compared to the fourth quarter of 2023
and positively by SEK 4bn compared to the first quarter
of 2023.
31 Mar 31 Dec 31 Mar
Loans to customers, SEKbn 2024 2023¹ 2023¹
Loans, private mortgage 1 040 1 033 1 030
of which Sweden 914 913 912
of which Baltic countries 126 120 118
Loans, private other incl tenant-
owner associations 143 142 145
of which Sweden 118 118 123
of which Baltic countries 25 24 22
Loans, corporate 607 606 617
of which Sweden 425 429 448
of which Baltic countries 115 110 102
of which other² 67 67 67
Total 1 791 1 782 1 791
1) Comparative figures have been restated due to the reorganisation
during the first quarter 2024. For more information see Note 4.
2) Other consist of loans in Norway, Finland, China, the USA and
Denmark.
In Sweden, lending to customers decreased by SEK 2bn
to SEK 1 457bn (1 460). Compared to the first quarter of
2023, lending decreased by SEK 26bn.
Lending to mortgage customers in Sweden was stable
during the quarter at SEK 914bn (913). Compared to the
first quarter of 2023, lending to mortgage customers
increased slightly. The market share for mortgages in
Sweden was 22 per cent as of 29 February.
Other private lending in Sweden, including to tenant-
owner associations, was unchanged at SEK 118bn (118)
during the quarter.
Corporate lending in Sweden decreased by SEK 4bn
during the quarter and amounted to SEK 425bn (429).
Compared to the first quarter of 2023, corporate lending
decreased by SEK 23bn. In Sweden, the market share
was 14 per cent as of 29 February. Other corporate
lending was stable during the quarter.
In the Baltic countries lending volume increased by 1 per
cent in local currency and amounted to the equivalent of
SEK 266bn (254) at the end of the quarter. Lending to
both mortgage customers and corporate customers
increased by 1 per cent in local currency during the
quarter.
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Swedbank – Report for the First quarter│ 2024│8
Volumes in the sustainable asset registry increased by
SEK 8bn to 83bn (75) during the quarter. The increase
was primarily related to financing of green buildings. At
the end of the quarter, the registry contained SEK 76bn
in green assets and SEK 7bn in social assets. For more
information on lending and the sustainable assets
registry, see pages 37 and 70 of the Fact book.
Deposits
Total deposits increased by SEK 36bn to SEK 1 266bn
(1 230) compared to the previous quarter. Foreign
exchange effects positively impacted total deposit
volume by SEK 16bn compared to the previous quarter
and positively by SEK 10bn compared to the first quarter
of 2023.
31 Mar 31 Dec 31 Mar
Deposits from customers,
2024 2023¹ 2023¹
Deposits, private 712 703 700
of which Sweden 472 471 476
of which Baltic countries 240 231 223
Deposits, corporate 554 528 603
of which Sweden 394 374 446
of which Baltic countries 157 152 152
of which other² 2 1 5
Total 1 266 1 230 1 303
1) Comparative figures have been restated due to the reorganisation
during the first quarter 2024. For more information see Note 4.
2) Other consist of deposits in Norway, Finland, China, the USA and
Denmark.
Deposits in Sweden increased by SEK 21bn to SEK
866bn (845). Deposits from private customers in
Sweden increased by SEK 1bn to SEK 472bn (471), while
corporate deposits increased by SEK 20bn to SEK
394bn (374). Compared to the same quarter in 2023,
deposits in Sweden decreased by SEK 56bn.
In the Baltic countries, deposits from both private and
corporate customers were stable in local currency
during the quarter. Compared to the same quarter in
2023, deposits increased by 4 per cent in local currency.
As of 29 February, Swedbank’s market share for
deposits from private customers in Sweden was 18 per
cent. The market share for corporate deposits as of 29
February was 15 per cent. For more information on
deposits, see page 38 of the Fact book.
Assets under management and life insurance
Fund assets under management increased by 12 per
cent in the first quarter to SEK 1 809bn (1 614). The
increase was predominantly due to the market upturn,
but net inflows also contributed.
Asset management 31 Mar 31 Dec 31 Mar
SEKbn 2024 2023 2023
Sweden 1 692 1 510 1 365
Estonia 30 27 22
Latvia 43 38 32
Lithuania 41 37 27
Other countries 3 2 2
Total Mutual funds under
Management 1 809 1 614 1 456
Closed End Funds 1 1 0
Discretionary asset management 451 427 388
Total assets under Management 2 260 2 042 1 844
The net flow in the Swedish fund market amounted to
SEK 23bn (42), where the previous quarter included
annual PPM contributions of approximately SEK 43bn.
The net flow to Swedbank Robur’s funds in Sweden
amounted to SEK 10bn (4) in the quarter. Distributions
from Swedbank had positive net flows. Meanwhile,
flows through the savings banks and third-party
distributions increased. In Estonia, Latvia and Lithuania,
the net flow amounted to SEK 2bn (2).
By assets under management, Swedbank Robur is the
leader in the Swedish and Baltic fund markets. As of 29
February, the market share in Sweden was 22 per cent.
In Estonia and Lithuania, the market share was 39 per
cent, while Latvia had a market share of 40 per cent.
Life insurance assets under management in the
Swedish operations increased by 12 per cent during the
quarter to SEK 377bn (337) as of 31 March. Premium
income, consisting of premium payments and capital
transfers, amounted to SEK 10bn (7) in the first quarter.
Swedbank is the largest life insurance company Estonia,
Latvia and Lithuania.
Assets under management, life 31 Mar 31 Dec 31 Mar
insurance SEKbn 2024 2023 2023
Sweden 377 337 305
of which collective occupational
pensions 216 190 167
of which endowment insurance 102 94 90
of which occupational pensions 47 43 38
of which other 12 11 10
Baltic countries 10 9 9
Total assets under management 387 345 313
For premium income, excluding capital transfers,
Swedbank’s market share in the fourth quarter (latest
available data) was 6 per cent (6 per cent in the third
quarter of 2023). In the transfer market, Swedbank’s
market share in the fourth quarter was 9 per cent (9 per
cent in the third quarter of 2023).
Payments
The total number of card transactions acquired by
Swedbank during the quarter was 868 million, 6 per cent
higher than the same period in 2023. The total number
of transactions acquired in Sweden, Norway, Finland
and Denmark increased by 41 million, or 6 per cent,
while the number of transactions acquired in the Baltic
countries increased by 8 per cent.
Acquired transaction volumes increased in Sweden,
Norway, Finland and Denmark by 6 per cent to
SEK 207bn and in the Baltic countries by 8 per cent to
SEK 33bn compared to the same quarter in 2023.
Foreign exchange effects from transaction volumes in
Finland and Denmark, the seasonal impact of Easter in
March and new customers, contributed to higher
transaction volumes.
The total number of Swedbank cards in issue at the end
of the quarter was 8.4 million, in line with the end of the
previous quarter.
===== SIDA 9 =====
Swedbank – Report for the First quarter│ 2024│9
31 Mar 31 Dec 31 Mar
Number of cards 2024 2023 2023
Issued cards, millon 8.4 8.4 8.3
of which Sweden 4.5 4.5 4.5
of which Baltic countries 3.9 3.9 3.9
The number of purchases in Sweden with Swedbank
cards decreased by 0.4 per cent during the quarter
compared to the same quarter in 2023. A total of 332
million card purchases were made. In the Baltic
countries, the number of card purchases increased by
10 per cent in the same period to 233 million during the
quarter.
In Sweden, there were 213 million domestic payments
during the quarter, in line with the same period in 2023.
Swedbank’s market share of payments via Bankgirot
was 34 per cent in the fourth quarter. In the Baltic
countries, 126 million domestic payments were
processed, an increase of 11 per cent compared to the
same period in 2023.
The number of international payments in Sweden
increased by 3 per cent compared to the same quarter
in 2023 and amounted to 1.8 million. In the Baltic
countries, international payments increased by 19 per
cent to 7.8 million.
Credit and asset quality
The credit quality of Swedbank’s lending was solid with
low credit impairments despite the weak economic
situation. Total credit impairment provisions amounted
to SEK 8 463m (8 225), of which SEK 996m (1 324) was
post model adjustments.
In the Swedish mortgage business there were further
increases during the quarter in both loans with late
payments and forborne loans. Weaker household
finances and the simplified application process for
amortisation deferrals contributed to the increase in
forborne loans, of which most are considered repayable
in the long term. A smaller share of forborne loans is
classified as stage 3.
The total share of loans in stage 2, gross, decreased to
10.2 per cent (10.4). For personal loans, the share of
loans in stage 2 was 7.4 per cent (7.8) and for corporate
loans it was 16.3 per cent (16.3).
The share of loans in stage 3, gross, increased to 0.52
per cent (0.43), where the increase primarily consisted
of Swedish mortgages that have been granted
amortisation deferrals and the borrower did not pass a
new “left to live on” calculation. The provision ratio for
loans in stage 3 was 24 per cent (25).
For more information on credit exposures, provisions
and credit quality, see notes 10 and 12-14 as well as
pages 40-48 of the Fact book.
Funding and liquidity
In the first quarter, interest rates increased as the bond
market lowered its expectations of large, rapid interest
rate cuts by central banks. Despite this, the willingness
to invest remained strong, which resulted in lower credit
spreads.
Swedbank continued to be active in the funding
markets. During the quarter, issuance primarily
consisted of covered bonds in SEK, but also of
additional Tier 1 capital instruments in USD as well as
senior non-preferred bonds in USD and CHF. In total,
Swedbank issued SEK 42bn in long-term debt
instruments during the quarter. As of 31 March,
Swedbank’s outstanding short-term funding in issue
amounted to SEK 349bn (263). The need for financing is
affected by the current liquidity situation, future
maturities and changes in deposit and lending volumes,
and therefore is adjusted over the course of the year.
For more information on funding and liquidity, see notes
16-18 and pages 57–69 of the Fact book.
31 Mar 31 dec 31 mar
Liquid assets and ratios 2024 2023 2023
Cash and balances with central
banks and the National Debt Office,
SEKbn 347 278 357
Liquidity reserve, SEKbn 665 513 692
Liquidity coverage ratio (LCR), %¹² 180 172 160
Net stable funding ratio (NSFR), % 126 124 120
1) USD 209%; EUR 277%; SEK 106%.
2) The liquidity coverage ratio has been re-calculated and figures prior
to 2024 have been adjusted.
Ratings
During the quarter, there were no changes to
Swedbank’s ratings. For more information on the
ratings, see page 69 of the Fact book.
Credit ratings Moody's S&P Fitch
Covered bonds Aaa AAA -
Senior preferred Aa3 A+ AA
Senior non-preferred Baa1 A- AA-
Tier 2 Baa2 BBB+ A
Additional tier 1 Ba1 BBB- BBB+
Short term P-1 A-1 F1+
Outlook¹ S S S
1) P=positive, S=stable, N=negative, RuR= Rating(s) under Review
and WN= Watch Negative
Operational risks
During the quarter, an increase in cybersecurity risk as a
result of geopolitical conditions was noted. Given the
current threat scenario, IT and information security,
including cybersecurity risk, remains the highest priority.
Swedbank works continuously to ensure a high level of
availability and security for our customers.
Fraud is a growing problem, which is being discussed at
the highest levels of the society, particularly with fraud
prevention for seniors in focus. The bank is part of a
task force within the Swedish Bankers’ Association with
the goal to draw up industry-wide guidelines for
protecting customers against fraud. Swedbank invests
in and continuously improves its resilience and capacity
to detect, prevent and investigate these crimes.
===== SIDA 10 =====
Swedbank – Report for the First quarter│ 2024│10
Capital and capital adequacy
Capital ratio and capital requirement
The Common Equity Tier 1 (CET1) capital ratio was 19.3
per cent (19.0) at the end of the quarter. The total CET1
capital requirement, including Pillar 2 guidance, was
15.1 per cent (15.1) of the Risk Exposure Amount (REA),
which resulted in a CET1 capital buffer of 4.2 per cent
(3.9). CET1 capital increased to SEK 166bn (161) and
was mainly affected by the quarterly profit and
anticipated dividend.
Change in Common Equity Tier 1 capital
(Refers to Swedbank consolidated situation)
Risk Exposure Amount (REA)
REA increased to SEK 859bn (847) in the first quarter.
REA for credit risk increased primarily due to foreign
exchange effects, increased volumes, and the
implementation of the probability of default (PD) model
for exposures to large corporates within Corporates and
Institutions. Other effects within REA for credit risks
decreased mainly due to shorter maturities for
corporate exposures.
REA for market risk increased by SEK 2bn, mainly
through an increase in specific interest rate risk, while
REA for credit value adjustments decreased by SEK 1bn
due to hedged positions.
REA for Article 3 according to the EU’s regulation on
prudential requirements for credit institutions (CRR)
resulted in a decrease of SEK 2bn.
Change in REA
(Refers to Swedbank consolidated situation)
The leverage ratio was 6.4 per cent (6.5) and therefore
exceeds the leverage ratio requirement including Pillar 2
guidance of 3.5 per cent.
Capital and resolution regulations
Due to the guidelines from the European Banking
Authority (EBA), Swedbank is applying for approval of
new internal models for risk classification. The review
process is expected to continue in 2024 and 2025.
Swedbank previously decided on an Article 3 add-on
corresponding to the bank’s estimate of the remaining
impact on REA of the new models. The Swedish FSA
has also introduced a temporary add-on of 1 per cent in
the Pillar 2 requirement (P2R) related to the ongoing
review of the models. The models are likely to result in a
lower capital requirement than the add-on in P2R. Going
forward, a slight increase in REA over and above the
bank’s voluntary Article 3 add-on is expected when the
new models are implemented.
The Resolution Act, which entered into force in 2021,
applies the MREL requirement as of 1 January 2024.
Swedbank meets the requirements by a wide margin.
Investigations
U.S. authorities continue to investigate Swedbank’s
historical anti-money laundering and counter-terrorism
financing work and historical information disclosures.
The investigations, which are being conducted by the
Department of Justice (DoJ), the Securities and
Exchange Commission (SEC) and the Department of
Financial Services in New York (DFS), are continuing and
the bank is holding individual discussions with the
authorities through its U.S. legal advisors. The
investigations are at different stages and the bank
cannot at this time determine any financial
consequences or when the investigations will be
completed.
In February, the Estonian Prosecutor’s Office closed its
investigation of suspected money laundering offences
by Swedbank AS during the period 2014–2016. The
criminal investigation originated from the Estonian
FSA’s previous investigation of Swedbank AS in 2019.
Other events
The reorganisation announced in the third quarter of
2023 was implemented during the quarter. A new
business area has been established under the
leadership of Malin Lilliecrona to bring together
premium and private banking customers. Swedish
Banking is focused on mortgage customers, younger
customers, and small businesses and their owners.
Anna-Karin Laurell is the new Head of Swedish Banking.
Corporate customers with advisors have been
transferred to Corporates and Institutions.
On 26 March, Swedbank’s Annual General Meeting re-
elected Göran Bengtsson, Annika Creutzer, Hans
Eckerström, Kerstin Hermansson, Helena Liljedahl, Anna
Mossberg, Per Olof Nyman, Biljana Pehrsson, Göran
===== SIDA 11 =====
Swedbank – Report for the First quarter│ 2024│11
Persson and Biörn Riese as Board members. Göran
Persson was elected by the Annual General Meeting as
Chair of the Board of Directors.
The Annual General Meeting also decided in accordance
with the Board of Directors’ proposal to pay a dividend
of SEK 15.15 per share. The dividend corresponds to 50
per cent of net profit for the financial year 2023 in
accordance with the bank’s dividend policy.
Events after the end of the period
On 12 April, Moody’s raised the outlook on Swedbank’s
long-term ratings to positive from stable partly against
the backdrop of Moody’s assessment that the work the
bank has done to alleviate previous shortcomings has
led to lower risks relating to money laundering and
terrorist financing.
===== SIDA 12 =====
Swedbank – Report for the First quarter│ 2024│12
Swedish Banking
Income statement
Q1 Q4 Q1
SEKm 2024 2023¹ % 2023¹ %
Net interest income 4 650 4 888 -5 5 189 -10
Net commission income 1 866 1 721 8 1 772 5
Net gains and losses on financial items 63 100 -37 58 8
Other income² 243 237 2 311 -22
Total income 6 822 6 947 -2 7 331 -7
Staff costs 513 504 2 473 9
Variable staff costs 16 12 30 10 60
Other expenses 1 647 1 695 -3 1 433 15
Depreciation/amortisation of tangible and intangible
assets 4 4 7 5 -28
Total expenses 2 179 2 215 -2 1 921 13
Profit before impairments, bank taxes and resolution
fees 4 643 4 732 -2 5 410 -14
Credit impairment 83 234 -64 305 -73
Bank taxes and resolution fees 212 218 -2 230 -8
Profit before tax 4 347 4 280 2 4 875 -11
Tax expense 832 799 4 938 -11
Profit for the period 3 515 3 481 1 3 937 -11
Return on allocated equity, % 26.1 26.4 29.8
Loan/deposit ratio, % 191 191 186
Credit impairment ratio, % 0.04 0.11 0.14
Cost/income ratio¹ 0.32 0.32 0.26
Loans to customers, SEKbn 853 858 -1 876 -3
Deposits from customers, SEKbn 446 449 -1 471 -5
Full-time employees 2 633 2 623 0 2 399 10
1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more
information, see Note 4.
2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and
Other income from the Group income statement.
Business development
Swedish Banking’s focus after the reorganisation is on
the mortgage business, young customers and the
bank’s small business customers. Through
improvements to availability and by being proactive, the
business area will develop and strengthen the customer
experience for all of Swedbank’s customers.
Efforts to increase fraud awareness in society are
continuing, not least through an extension of the
industry-wide anti-fraud campaign “Hard to Scam”.
Swedbank is arranging meetings to inform and educate
customers in connection with this.
During the quarter, new features were launched to
improve the customer experience and availability. Now
customers can, for example, see the passcode for their
credit card in the app, and children and guardians can
temporarily block the child’s debit card if it is lost.
Profit was stable during the quarter. Lower income was
offset by decreased expenses and lower credit
impairments.
Net interest income decreased, mainly driven by lower
earnings on deposits.
Household mortgage volume decreased by SEK 2bn.
Corporate deposits decreased by SEK 3bn. Volumes
have been negatively impacted by customer transfers to
the business units Premium & Private Banking and
Corporates and Institutions.
Deposit volumes decreased by SEK 3bn, with household
deposits increasing by SEK 2bn and corporate deposits
decreasing by SEK 5bn.
Net commission income increased, mainly driven by
higher income from asset management.
Other income was stable.
Expenses decreased due to lower consulting expenses.
Credit impairments amounted to SEK 83m (234). Rating
and stage migrations were offset by decreased post
model adjustments.
===== SIDA 13 =====
Swedbank – Report for the First quarter│ 2024│13
Baltic Banking
Income statement
Q1 Q4 Q1
SEKm 2024 2023¹ % 2023¹ %
Net interest income 4 604 4 854 -5 3 940 17
Net commission income 806 847 -5 817 -1
Net gains and losses on financial items 135 159 -15 133 2
Other income² 184 448 -59 207 -11
Total income 5 729 6 308 -9 5 097 12
Staff costs 473 514 -8 476 -1
Variable staff costs 25 32 -23 19 33
Other expenses 906 908 0 732 24
Depreciation/amortisation of tangible and intangible
assets 43 35 23 45 -5
Total expenses 1 448 1 489 -3 1 273 14
Profit before impairments, bank taxes and resolution
fees 4 281 4 819 -11 3 824 12
Impairment of tangible and intangible assets 0 4 0
Credit impairment 6 -28 -29
Bank taxes and resolution fees 621 608 2 24
Profit before tax 3 654 4 235 -14 3 829 -5
Tax expense 737 1 425 -48 692 7
Profit for the period 2 917 2 810 4 3 137 -7
Return on allocated equity, % 33.1 35.6 41.9
Loan/deposit ratio, % 67 67 64
Credit impairment ratio, % 0.01 -0.04 -0.05
Cost/income ratio¹ 0.25 0.24 0.25
Loans to customers, SEKbn 266 255 5 241 11
Deposits from customers, SEKbn 398 383 4 375 6
Full-time employees 4 790 4 762 1 4 674 2
1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more
information, see Note 4.
2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and
Other income from the Group income statement.
Business development
Macroeconomic conditions stabilised in the quarter with
falling inflation and rising real wages. Economic activity
recovered. A sustainable mortgages campaign was
launched in all three Baltic countries as the concept was
successful in Estonia and Latvia last year.
Swedbank Robur, which celebrated its third anniversary
in the Baltic countries, has become the most popular
investment alternative for Swedbank’s customers and
has strong interest among savers.
During the quarter, the “Birthday Present 18” project was
launched in Latvia to give everyone turning 18 years of
age the equivalent of EUR 20 in Swedbank Robur funds.
Profit increased by 7 per cent in local currency during
the quarter, mainly due to a lower tax expense. Income
decreased while credit impairments increased.
Net interest income decreased by 3 per cent in local
currency, mainly due to higher expenses for deposits
driven by a gradual increase in deposit volumes in
accounts with higher interest rates.
Lending increased by 1 per cent in local currency to both
consumers and corporates while deposits remained
stable during the quarter.
Net commission income decreased by 2 per cent in
local currency due to seasonally lower card usage.
Other income decreased by 58 per cent in local
currency, mainly due to positive valuation effects in the
previous quarter.
Expenses decreased slightly in local currency after
seasonally higher expenses in the previous quarter.
Expenses for IT development increased.
Credit impairments amounted to SEK 6m (-28). Rating
and stage migrations as well as increased provisions for
individually assessed loans were offset by decreased
post model adjustments.
The lower tax expense for the quarter was mainly due to
the fact that the fourth quarter of 2023 included
additional deferred tax related to an anticipated extra
dividend from the Estonian subsidiary Swedbank AS.
===== SIDA 14 =====
Swedbank – Report for the First quarter│ 2024│14
Corporates and Institutions
Income statement
Q1 Q4 Q1
SEKm 2024 2023¹ % 2023¹ %
Net interest income 3 375 3 683 -8 3 190 6
Net commission income 963 951 1 814 18
Net gains and losses on financial items 465 128 434 7
Other income² 30 34 -11 39 -23
Total income 4 833 4 796 1 4 478 8
Staff costs 558 539 4 540 3
Variable staff costs 36 22 68 43 -15
Other expenses 977 998 -2 960 2
Depreciation/amortisation of tangible and intangible
assets 5 5 -2 6 -7
Total expenses 1 577 1 564 1 1 548 2
Profit before impairments, bank taxes and resolution
fees 3 257 3 232 1 2 930 11
Impairment of tangible and intangible assets 0 27 0
Credit impairment 54 149 -64 480 -89
Bank taxes and resolution fees 239 238 0 227 5
Profit before tax 2 964 2 818 5 2 223 33
Tax expense 622 536 16 449 39
Profit for the period 2 342 2 282 3 1 775 32
Return on allocated equity, % 19.2 17.4 14.4
Loan/deposit ratio, % 160 170 145
Credit impairment ratio, % 0.03 0.09 0.30
Cost/income ratio¹ 0.33 0.33 0.35
Loans to customers, SEKbn 543 543 0 554 -2
Deposits from customers, SEKbn 339 320 6 383 -11
Full-time employees 1 786 1 725 4 1 714 4
1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more
information, see Note 4.
2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and
Other income from the Group income statement.
Business development
Corporates and Institutions’ new organisation is an
important step in creating a stronger corporate business
that can more effectively offer a broader range of
competence to small, medium-sized and large
companies.
Business activity increased somewhat during the
quarter, partly driven by expectations of interest rate
cuts. Rate-sensitive companies in particular re-
examined their debt.
The market for high-yield bond and equity issuance
improved. Swedbank also assisted banks that were
active in the bond market. Trading in fixed-rate bonds
was high in both the primary and secondary market. FX
trading remained stable.
Lending volume was stable. Lending to the real estate
sector increased slightly, while lending to other sectors
decreased, mainly related to larger customers.
Deposit volume increased due to short-term deposits
from funds in foreign currency and seasonally higher
volumes from the public sector.
Net interest income decreased during the quarter mainly
due to lower deposit margins as well as one-off effects
in the previous quarter.
Net commission income benefited from increased
income mainly related to short-term bond issuance and
asset management, while income from equity-related
transactions decreased.
Net gains and losses on financial items increased due
to derivative valuation adjustments (DVA) and higher
earnings from fixed income trading.
Expenses increased primarily due to salary increases.
Credit impairments amounted to SEK 54m (149). Rating
and stage migrations as well as increased provisions for
individually assessed loans were offset by decreased
post model adjustments.
===== SIDA 15 =====
Swedbank – Report for the First quarter│ 2024│15
Premium and Private Banking
Income statement
Q1 Q4 Q1
SEKm 2024 2023¹ % 2023¹ %
Net interest income 469 491 -5 542 -14
Net commission income 374 346 8 311 20
Net gains and losses on financial items 8 6 21 7 8
Other income² 7 8 -6 6 19
Total income 859 852 1 867 -1
Staff costs 143 130 10 116 24
Variable staff costs 4 3 27 3 35
Other expenses 159 135 18 143 11
Total expenses 305 268 14 261 17
Profit before impairments, bank taxes and resolution
fees 553 584 -5 606 -9
Credit impairment -4 7 11
Bank taxes and resolution fees 31 30 6 32 -2
Profit before tax 526 548 -4 563 -6
Tax expense 97 115 -15 116 -16
Profit for the period 429 433 -1 447 -4
Return on allocated equity, % 27.1 27.2 28.7
Loan/deposit ratio, % 168 165 166
Credit impairment ratio, % -0.01 0.02 0.04
Cost/income ratio¹ 0.36 0.31 0.30
Loans to customers, SEKbn 128 126 2 120 6
Deposits from customers, SEKbn 76 76 0 72 6
Full-time employees 576 552 4 507 14
1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more
information, see Note 4.
2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and
Other income from the Group income statement.
Business development
The new business area Premium and Private Banking
offers a full range of products and services for
customers in Sweden who need ongoing personal
contact with the bank as well as financial planning.
Premium and Private Banking has a strong local
presence and provides convenient access to qualified
advice. The new business area also handles asset
management for corporate customers as well as
pension distribution.
Demand for qualified advice remained high, and during
the quarter the number of Premium and Private Banking
customers increased. Positive expectations about the
stock market performance contributed to high demand
for asset management services.
A pension campaign during the quarter encouraged
Swedbank’s customers to make informed choices about
their pension and pension savings and to improve their
financial health.
Profit was stable during the quarter. Increased income
and lower credit impairments were offset by higher
expenses.
Net interest income decreased mainly driven by lower
earnings from deposits.
Household mortgage volume increased by SEK 2bn and
deposit volume was stable. Volumes have been
positively impacted by customer transfers from
Swedish Banking.
Net commission income increased, mainly driven by
higher income from asset management, where the
market upturn contributed positively.
Expenses increased due to more employees in the new
business area.
Credit impairments amounted to SEK -4m (7).
===== SIDA 16 =====
Swedbank – Report for the First quarter│ 2024│16
Group Functions and Other
Income statement
Q1 Q4 Q1
SEKm 2024 2023¹ % 2023 %
Net interest income -521 -610 -15 -942 -45
Net commission income -35 -109 -68 -52 -33
Net gains and losses on financial items 10 451 -98 283 -96
Other income² 949 956 -1 761 25
Total income 404 689 -41 50
Staff costs 1 836 1 808 2 1 729 6
Variable staff costs 100 72 39 62 61
Other expenses -1 177 -866 36 -1 230 -4
Depreciation/amortisation of tangible and intangible
assets 476 424 12 391 22
Administrative fines 0 890
Total expenses 1 236 1 438 -14 1 843 -33
Profit before impairments, bank taxes and resolution
fees -832 -749 11 -1 793 -54
Impairment of tangible and intangible assets 0 43 0
Credit impairment 6 1 10 -42
Bank taxes and resolution fees 0 8 5
Profit before tax -838 -801 5 -1 808 -54
Tax expense -64 -116 -45 -73 -13
Profit for the period -774 -685 13 -1 734 -55
Full-time employees 7 725 7 614 1 7 496 3
1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more
information, see Note 4.
2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and
Other income from the Group income statement.
Net interest income and net gains and losses on financial items mainly stem from Group Treasury.
Other income mainly refers to income from the savings banks. Expenses mainly relate to Group
Products & Advice and Group Staffs and are allocated to a large extent.
Result
During the quarter, profit decreased due to lower
income.
Net interest income improved while corresponding net
interest income within Group Treasury decreased due to
higher financing expenses related to long-term funding.
Net gains and losses on financial items within Group
Treasury decreased mainly related to negative changes
in the value of derivatives.
Expenses decreased due to lower consulting expenses.
===== SIDA 17 =====
Swedbank – Report for the First quarter│ 2024│17
Financial statements - Group
Income statement, condensed
Group Q1 Q4 Q1
SEKm 2024 2023 2023
Interest income 28 209 28 445 21 432
Interest expense -15 609 -15 116 -9 497
Net interest income (note 5) 12 599 13 329 11 936
Net commission income (note 6) 3 976 3 754 3 660
Net gains and losses on financial items (note 7) 682 845 916
Net insurance income (note 8) 267 535 282
Share of profit or loss of associates and joint ventures 128 117 171
Other income 436 448 422
Total income 18 087 19 029 17 387
Staff costs 3 700 3 632 3 466
Other general administrative expenses (note 9) 1 956 2 310 1 607
Depreciation/amortisation of tangible and intangible assets 528 468 448
Administrative fines 0 0 890
Total expenses 6 185 6 411 6 410
Profit before impairments, bank taxes and resolution fees 11 902 12 618 10 977
Impairment of tangible and intangible assets 0 74 0
Credit impairment (note 10) 144 363 777
Bank taxes and resolution fees (note 11) 1 104 1 102 518
Profit before tax 10 654 11 080 9 681
Tax expense 2 226 2 758 2 121
Profit for the period 8 428 8 321 7 560
Earnings per share, SEK 7.49 7.40 6.73
Earnings per share after dilution, SEK 7.47 7.38 6.71
===== SIDA 18 =====
Swedbank – Report for the First quarter│ 2024│18
Statement of comprehensive income, condensed
Group Q1 Q4 Q1
SEKm 2024 2023 2023
Profit for the period reported via income statement 8 428 8 321 7 560
Items that will not be reclassified to the income statement
Remeasurements of defined benefit pension plans 969 -1 637 247
Share related to associates and joint ventures
21 -43 22
Total 990 -1 680 269
Items that may be reclassified to the income statement
Exchange rate differences, foreign operations 2 505 -2 505 910
Hedging of net investments in foreign operations -1 627 1 617 -536
Cash flow hedges 3 -3 -2
Foreign currency basis risk -11 0 2
Share of other comprehensive income of
associates and joint ventures 12 -22 -38
Total 882 -913 336
Other comprehensive income for the period, net of tax 1 872 -2 593 605
Total comprehensive income for the period 10 300 5 729 8 165
Total comprehensive income attributable to:
Shareholders of Swedbank AB 10 300 5 729 8 166
Non-controlling interests 0 0 -1
For the period January – March 2024 a gain after tax of
SEK -969m (247) was recognised in other
comprehensive income, relating to remeasurements of
defined benefit pension plans. As per 31 March 2024
the discount rate used to calculate the closing pension
obligation was 3.89 per cent, compared with 3.69 per
cent per 31 December 2023. The inflation assumption
was 1.56 per cent compared with 1.57 per cent per 31
December 2023. The fair value of plan assets increased
during 2024 by SEK 799m. In total, at 31 March 2024 the
fair value of plan assets exceeded the obligation for
funded defined benefit pension plans by SEK 3 395m,
therefore the funded plans are presented as an asset.
For January – March 2024 an exchange rate difference
of SEK 2 505m (910) was recognised for the Group's
foreign net investments in subsidiaries. The gain related
to subsidiaries mainly arose because the Swedish krona
weakened against the euro during the period. In
addition, an exchange rate difference of SEK 12m (-38)
for the Group's foreign net investments in associates
and joint ventures is included in Share of other
comprehensive income of associates and joint
ventures. The total loss of SEK 2 517m is not taxable.
Most of the Group's foreign net investments are hedged
against currency risk resulting in a loss after tax of SEK -
1 627m (-536) for the hedging instruments.
===== SIDA 19 =====
Swedbank – Report for the First quarter│ 2024│19
Balance sheet, condensed
Group 31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023
Assets
Cash and balances with central banks 346 835 252 994 361 343
Treasury bills and other bills eligible for refinancing with central banks, etc. 216 836 178 619 290 378
Loans to credit institutions 44 819 67 534 59 316
Loans to the public 1 890 048 1 863 375 1 838 152
Value change of the hedged assets in portfolio hedges of interest rate risk -8 345 -8 489 -17 389
Bonds and other interest-bearing securities 74 479 58 841 72 513
Financial assets for which customers bear the investment risk 359 157 319 795 287 622
Shares and participating interests 48 128 34 316 37 894
Derivatives (note 19) 42 665 39 563 37 351
Intangible assets (note 15) 20 962 20 440 20 301
Other assets 43 841 28 531 48 857
Total assets 3 079 424 2 855 519 3 036 339
Liabilities and equity
Amounts owed to credit institutions (note 16) 93 671 72 054 136 427
Deposits and borrowings from the public (note 17) 1 275 393 1 234 262 1 313 079
Value change of the hedged liabilities in portfolio hedges of interest rate risk 103 209 0
Financial liabilities for which customers bear the investment risk 360 340 320 609 289 440
Debt securities in issue (note 18) 827 627 728 548 864 571
Short positions, securities 30 087 17 297 23 986
Derivatives (note 19) 39 008 73 453 47 859
Insurance provisions 27 986 26 315 25 582
Other liabilities 72 962 46 313 58 027
Senior non-preferred liabilities (note 18) 119 171 104 828 66 774
Subordinated liabilities (note 18) 40 933 32 841 37 232
Total liabilities 2 887 281 2 656 730 2 862 977
Equity 192 144 198 790 173 362
Total liabilities and equity 3 079 424 2 855 519 3 036 339
===== SIDA 20 =====
Swedbank – Report for the First quarter│ 2024│20
Statement of changes in equity, condensed
===== SIDA 21 =====
Swedbank – Report for the First quarter│ 2024│21
Cash flow statement, condensed
Group Jan-Mar Full year Jan-Mar
SEKm 2024 2023 2023
Operating activities
Profit before tax 10 654 43 622 9 681
Adjustments for non-cash items in operating activities -6 -1 952 3 355
Income taxes paid -1 652 -5 443 -896
Cash flow from operating activities before changes in operating assets and liabilities 8 996 36 227 12 140
Increase (-) / decrease (+) in assets -71 328 -59 104 -173 848
Increase (+) / decrease (-) in liabilities 134 500 -122 271 141 764
Cash flow from operating activities 72 168 -145 148 -19 944
Investing activities
Acquisitions of and contributions to associates and joint ventures 0 -53 -50
Dividend from associates and joint ventures 101 306 69
Acquisitions of other fixed assets and strategic financial assets -30 -852 -352
Disposals of/maturity of other fixed assets and strategic financial assets 4 181 59
Cash flow from investing activities 75 -418 -274
Financing activities
Amortisation of lease liabilities -298 -799 -201
Issuance of senior non-preferred liablities 11 460 46 580 9 152
Redemption of senior non-preferred liablities -908 -1 665 -578
Issuance of subordinated liabilities 6 811 9 339 5 243
Redemption of subordinated liabilities -481 -10 316 -255
Dividends paid 0 -10 964 0
Cash flow from financing activities 16 584 32 175 13 361
Cash flow for the period 88 827 -113 391 -6 857
Cash and cash equivalents at the beginning of the period 252 994 365 992 365 992
Cash flow for the period 88 827 -113 391 -6 857
Exchange rate differences on cash and cash equivalents 5 014 393 2 208
Cash and cash equivalents at end of the period 346 835 252 994 361 343
During 2023 contributions were provided to the joint ventures P27 Nordic Payments Platform AB, Invidem AB and Tibern
AB of SEK 48m, 3m and 2m respectively.
===== SIDA 22 =====
Swedbank – Report for the First quarter│ 2024│22
Note 1 Accounting policies
The interim report has been prepared in accordance
with IAS 34 Interim Financial Reporting. The condensed
consolidated financial statements have also been
prepared in accordance with the recommendations and
statements of the Swedish Corporate Reporting Board,
the Annual Accounts Act for Credit Institutions and
Securities Companies and the directives of the Swedish
Financial Supervisory Authority (SFSA).
The Parent Company report has been prepared in
accordance with the Annual Accounts Act for Credit
Institutions and Securities Companies, the directives of
the SFSA and recommendation RFR 2 of the Swedish
Corporate Reporting Board.
The accounting policies applied in the interim report
conform to those applied in the Annual and
Sustainability Report for 2023, which was prepared in
accordance with International Financial Reporting
Standards as adopted by the European Union and
interpretations thereof.
The financial statements are presented in Swedish
kronor and all figures are rounded to millions of kronor
(SEKm) unless otherwise indicated. No adjustments for
rounding are made, therefore summation differences
may occur.
Change in presentation
In order to provide a better overview of the financial
statements, items within these have been aggregated
from the first quarter 2024.
Changes in accounting regulations
Amended regulations that is applicable from 1 January
2024 did not have a significant impact on the Group’s
financial position, results, cash flows or disclosures.
Note 2 Critical accounting estimates
Presentation of consolidated financial statements in
conformity with IFRS requires the executive
management to make judgments and estimates that
affect the recognised amounts of assets, liabilities and
disclosures of contingent assets and liabilities as of the
reporting date as well as the recognised income and
expenses during the reporting period. The executive
management continuously evaluates these judgments
and estimates, including assessing control over
investment funds, the fair value of financial instruments,
provisions for credit impairment, impairment testing of
goodwill, provisions and contingent liabilities, defined
benefit pension provisions, insurance contracts and
deferred taxes.
Post-model expert credit adjustments to the credit
impairment provisions continue to be necessary, given
the geopolitical and economic uncertainties. Further
information is provided in Note 10.
Beyond this, there have been no significant changes to
the basis upon which the critical accounting judgments
and estimates have been determined compared with 31
December 2023.
Note 3 Changes in the Group structure
No significant changes to the Group structure occurred during the first quarter 2024.
===== SIDA 23 =====
Swedbank – Report for the First quarter│ 2024│23
Note 4 Operating segments (business areas)
Group
January-March 2024 Swedish Baltic Corporates and Premium and Functions
SEKm Banking Banking Institutions Private Banking and Other Eliminations Group
Income statement
Net interest income 4 650 4 604 3 375 469 -521 22 12 599
Net commission income 1 866 806 963 374 -35 1 3 976
Net gains and losses on financial items 63 135 465 8 10 0 682
Other income¹ 243 184 30 7 949 -583 831
Total income 6 822 5 729 4 833 859 404 -560 18 087
Staff costs 513 473 558 143 1 836 -4 3 520
Variable staff costs 16 25 36 4 100 181
Other expenses 1 647 906 977 159 -1 177 -555 1 956
Depreciation/amortisation of tangible and intangible
assets 4 43 5 0 476 528
Total expenses 2 179 1 448 1 577 305 1 236 -560 6 185
Profit before impairments, bank taxes and resolution fees 4 643 4 281 3 257 553 -832 -0 11 902
Impairment of tangible and intangible assets 0 0
Credit impairment 83 6 54 -4 6 -0 144
Bank taxes and resolution fees 212 621 239 31 -0 1 104
Profit before tax 4 347 3 654 2 964 526 -838 0 10 654
Tax expense 832 737 622 97 -64 2 226
Profit for the period 3 515 2 917 2 342 429 -774 0 8 428
Net commission income
Commission income
Payment processing 113 159 239 3 110 -4 620
Cards 505 525 759 9 -156 1 641
Asset management and custody 1 594 160 580 386 -1 -87 2 632
Lending 23 54 225 1 0 -2 301
Other commission income² 246 159 380 125 13 -5 918
Total 2 481 1 057 2 183 523 -33 -98 6 113
Commission expense 615 251 1 220 149 1 -99 2 137
Net commission income 1 866 806 963 374 -35 1 3 976
Balance sheet, SEKbn
Cash and balances with central banks 0 4 4 339 -0 347
Loans to credit institutions 6 1 149 0 278 -388 45
Loans to the public 853 267 638 128 6 -1 1 890
Interest-bearing securities 2 75 217 -2 291
Financial assets for which customers bear the investment
risk 282 2 29 46 359
Investments in associates and joint ventures 6 2 8
Derivatives 0 114 98 -170 43
Tangible and intangible assets 2 13 -0 0 12 0 26
Other assets 20 151 32 3 290 -426 70
Total assets 1 168 440 1 040 177 1 242 -987 3 079
Amounts owed to credit institutions 5 0 370 0 95 -376 94
Deposits and borrowings from the public 446 398 360 76 6 -11 1 275
Debt securities in issue -0 2 1 827 -3 828
Financial liabilities for which customers bear the
investment risk 283 2 29 47 360
Derivatives 0 122 86 -170 39
Other liabilities 379 114 48 17 -428 131
Senior non-preferred liabilities -0 119 119
Subordinated liabilities -0 41 41
Total liabilities 1 114 403 996 171 1 192 -987 2 887
Allocated equity 55 37 44 6 51 192
Total liabilities and equity 1 168 440 1 040 177 1 242 -987 3 079
Key figures
Return on allocated equity, % 26.1 33.1 19.2 27.1 -5.6 0.0 16.9
Cost/income ratio 0.32 0.25 0.33 0.36 3.06 0.00 0.34
Credit impairment ratio, % 0.04 0.01 0.03 -0.01 0.05 0.00 0.03
Loan/deposit ratio, % 191 67 160 168 18 141
Lending to the public, stage 3, SEKbn (gross) 5 1 3 0 10
Loans to customers, total, SEKbn 853 266 543 128 1 1 791
Provisions for loans to customers, total, SEKbn 2 1 4 0 0 0 7
Deposits from customers, SEKbn 446 398 339 76 6 1 266
Risk exposure amount, SEKbn 292 197 302 37 32 0 859
Full-time employees 2 633 4 790 1 786 576 7 725 0 17 510
Allocated equity, average, SEKbn 54 35 49 6 55 0 199
1) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and Other income from the Group income statement.
2) Other commission income includes Service concepts, Insurance, Securities and corporate finance and Other, see Note 6.
===== SIDA 24 =====
Swedbank – Report for the First quarter│ 2024│24
Group
January-March 2023¹ Swedish Baltic Corporates and Premium and Functions
SEKm Banking Banking Institutions Private Banking and Other Eliminations Group
Income statement
Net interest income 5 189 3 940 3 190 542 -942 16 11 936
Net commission income 1 772 817 814 311 -52 -2 3 660
Net gains and losses on financial items 58 133 434 7 283 0 916
Other income² 311 207 39 6 761 -449 875
Total income 7 331 5 097 4 478 867 50 -435 17 387
Staff costs 473 476 540 116 1 729 -4 3 330
Variable staff costs 10 19 43 3 62 0 136
Other expenses 1 433 732 960 143 -1 230 -432 1 607
Depreciation/amortisation of tangible and intangible
assets 5 45 6 0 391 0 448
Administrative fine 890 890
Total expenses 1 921 1 273 1 548 261 1 843 -435 6 410
Profit before impairments, bank taxes and resolution fees 5 410 3 824 2 930 606 -1 793 -0 10 977
Credit impairment 305 -29 480 11 10 -0 777
Bank taxes and resolution fees 230 24 227 32 5 0 518
Profit before tax 4 875 3 829 2 223 563 -1 808 -0 9 681
Tax expense 938 692 449 116 -73 -0 2 121
Profit for the period 3 937 3 137 1 775 447 -1 734 -0 7 560
Net commission income
Commission income
Payment processing 115 164 224 3 99 -4 601
Cards 468 516 668 8 -80 0 1 580
Asset management and custody 1 354 144 491 311 -1 -77 2 222
Lending 15 54 221 2 5 -2 296
Other commission income³ 301 153 363 107 3 -2 926
Total 2 253 1 032 1 966 432 27 -85 5 625
Commission expense 481 215 1 152 121 79 -83 1 965
Net commission income 1 772 817 814 311 -52 -2 3 660
Balance sheet, SEKbn
Cash and balances with central banks 1 4 2 354 361
Loans to credit institutions 5 0 198 285 -429 59
Loans to the public 876 241 601 120 1 -1 1 838
Interest-bearing securities 2 71 293 -3 363
Financial assets for which customers bear the investment
risk 225 2 23 37 288
Investments in associates 6 2 8
Derivatives 0 152 124 -239 37
Tangible and intangible assets 2 13 -0 0 11 0 26
Other assets 18 151 24 3 205 -346 56
Total assets 1 134 413 1 072 160 1 276 -1 018 3 036
Amounts owed to credit institutions 8 2 382 140 -396 136
Deposits and borrowings from the public 471 375 403 72 2 -11 1 313
Debt securities in issue -0 2 3 864 -4 865
Financial liabilities for which customers bear the
investment risk 227 2 23 37 289
Derivatives 0 0 163 123 -239 48
Other liabilities 375 49 44 8 -368 108
Senior non-preferred liabilities -0 67 -0 67
Subordinated liabilities -0 37 -0 37
Total liabilities 1 081 383 1 024 153 1 241 -1 018 2 863
Allocated equity 53 30 49 6 35 173
Total liabilities and equity 1 134 413 1 072 160 1 276 -1 018 3 036
Key figures
Return on allocated equity, % 29.8 41.9 14.4 28.7 -17.6 0.0 17.0
Cost/income ratio 0.26 0.25 0.35 0.30 36.67 0.00 0.37
Credit impairment ratio, % 0.14 -0.05 0.30 0.04 0.13 0.00 0.16
Loan/deposit ratio, % 186 64 145 166 33 0 137
Lending to the public, stage 3, SEKbn (gross) 2 1 3 0 6
Loans to customers, total, SEKbn 876 241 554 120 1 1 791
Provisions for loans to customers, total, SEKbn 1 1 4 0 7
Deposits from customers, SEKbn 430 375 425 71 2 0 1303
Risk exposure amount, SEKbn 345 160 258 14 29 0 806
Full-time employees 2 399 4 674 1 714 507 7 496 0 16 789
Allocated equity, average, SEKbn 53 30 49 6 39 0 178
1) Comparative figures have been restated due to the reorganisation during the first quarter 2024.
2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and Other income f rom the Group income statement.
3) Other commission income includes Service concepts, Insurance, Securities and corporate finance and Other, see Note 6.
===== SIDA 25 =====
Swedbank – Report for the First quarter│ 2024│25
Operating segments accounting policies
The operating segment report is based on Swedbank’s
accounting policies, organisation and management
accounts. Market-based transfer prices are applied
between operating segments, while all expenses for
Group functions and Group staffs are transfer priced at
cost to the operating segments. Cross-border transfer
pricing is applied according to OECD transfer pricing
guidelines.
The Group’s equity attributable to shareholders is
allocated to each operating segment based on capital
adequacy rules and estimated capital requirements
based on the bank’s Internal Capital Adequacy
Assessment Process (ICAAP).
The return on allocated equity for the operating
segments is calculated based on profit for the period
attributable to the shareholders for the operating
segment, in relation to average monthly allocated equity
for the operating segment. For periods shorter than one
year the key ratio is annualised.
From the first quarter 2024, the operation within
Premium and Private Banking is reported as a new
business segment. The operation was previously
reported within Swedish Banking. In connection with the
change the corporate customers, which are handled by
advisors, have been moved to Corporates and
Institutions. The comparative figures have been
restated. In addition to this, there have been a few minor
transfers of support functions between the segments
and Group Functions and Other.
===== SIDA 26 =====
Swedbank – Report for the First quarter│ 2024│26
Changes between presentation in second interim report 2023 and new restated reporting
SEKm Banking Banking Institutions Private banking and Other Eliminations Group
Income statement
Net interest income -1 373 830 542 1
Net commission income -416 100 311 5
Net gains and losses on financial items -44 37 7
Other income² -9 -22 6 25
Total income -1 843 946 867 30
Staff costs -226 120 116 -10
Variable staff costs -4 2 3
Other expenses -361 196 143 22
Depreciation/amortisation of tangible and intangible
assets -0 0 0
Total expenses -591 318 261 12
Profit before impairments, bank taxes and resolution
fees -1 252 628 606 18
Credit impairment -132 121 11
Bank taxes and resolution fees -63 31 32
Profit before tax -1 057 476 563 18
Tax expense -223 105 116 2
Profit for the period -833 371 447 16
Net commission income
Commission income
Payment processing -46 43 3
Cards -57 39 8 10
Asset management and custody -356 45 311
Lending -12 4 2 5
Other commission income³ -199 92 107
Total -671 224 432 15
Commission expense -255 124 121 10
Net commission income -416 100 311 5
Balance sheet, SEKbn
Loans to credit institutions -1 1
Loans to the public -212 92 120
Financial assets for which customers bear the
-60 23 37
Other assets -5 2 3 1 -1
Total assets -278 118 160 1 -1
Amounts owed to credit institutions -1 1
Deposits and borrowings from the public -155 83 72 1
Financial liabilities for which customers bear the
investment risk -60 23 37
Other liabilities -49 6 44 -1
Total liabilities -266 113 153 1 -1
Allocated equity -12 5 6
Total liabilities and equity -278 118 160 1 -1
Key figures
Return on allocated equity, % 0.2 1.6 28.7 0.2
Cost/income ratio -0.01 0.00 0.30
Credit impairment ratio, % -0.02 0.03 0.04
Loan/deposit ratio, % 12 -9 166 6
Lending to the public, stage 3, SEKbn (gross) -1 1 0
Loans to customers, total, SEKbn -212 92 120 0
Provisions for loans to customers, total, SEKbn -1 1 0
Deposits from customers, SEKbn -154 83 72 0
Risk exposure amount, SEKbn -14 14
Full-time employees -982 549 507 -74
Allocated equity, average, SEKbn -12 5 6
===== SIDA 27 =====
Swedbank – Report for the First quarter│ 2024│27
Note 5 Net interest income
Q1 Q4 Q1
SEKm 2024 2023 2023
Interest income
Cash and balances with central banks 4 007 3 663 3 406
Treasury bills and other bills eligible for refinancing with central banks, etc. 2 047 2 686 1 413
Loans to credit institutions 835 890 691
Loans to the public 23 075 22 950 16 769
Bonds and other interest-bearing securities 552 453 389
Derivatives¹ -1 044 -487 -126
Other assets -1 21 11
Total 29 470 30 175 22 553
Transfer of trading-related interests reported in Net gains and losses 1 261 1 730 1 121
Total interest income 28 209 28 445 21 432
Interest expense
Amounts owed to credit institutions -1 280 -1 615 -1 287
Deposits and borrowings from the public -8 381 -7 979 -4 684
of which deposit guarantee fees -149 -82 -157
Debt securities in issue -6 895 -7 127 -5 860
Senior non-preferred liabilities -922 -895 -377
Subordinated liabilities -537 -475 -374
Derivatives¹ 127 587 1 864
Other liabilities -24 -26 -21
Total -17 911 -17 530 -10 739
Transfer of trading-related interests reported in Net gains and losses -2 302 -2 414 -1 242
Total interest expense -15 609 -15 116 -9 497
Net interest income 12 599 13 329 11 936
Net investment margin before trading-related interests are deducted 1.54 1.68 1.55
Average total assets 3 006 487 3 017 371 3 051 193
Interest income on financial assets at amortised cost 28 018 28 327 21 240
Interest expense on financial liabilities at amortised cost 17 166 17 075 12 100
1) The derivatives lines includes net interest income from derivatives hedging assets and liabilities in the balance sheet. T hese may
have both positive and negative
impact on interest income and interest expense.
===== SIDA 28 =====
Swedbank – Report for the First quarter│ 2024│28
Note 6 Net commission income
Q1 Q4 Q1
SEKm 2024 2023 2023
Commission income
Payment processing 620 625 601
Cards 1 641 1 786 1 580
Service concepts 420 414 392
Asset management and custody 2 632 2 426 2 222
Insurance 98 156 86
Securities and corporate finance 198 189 199
Lending 301 326 296
Other 201 122 250
Total commission income 6 113 6 043 5 625
Commission expense
Payment processing -380 -412 -364
Cards -762 -885 -708
Service concepts -50 -46 -47
Asset management and custody -686 -651 -579
Insurance -84 -74 -69
Securities and corporate finance -99 -100 -93
Lending -24 -45 -40
Other -52 -75 -64
Total commission expense -2 137 -2 289 -1 965
Net commission income
Payment processing 240 212 237
Cards 879 901 872
Service concepts 370 368 345
Asset management and custody 1 947 1 775 1 643
Insurance 13 82 17
Securities and corporate finance 99 89 105
Lending 277 281 256
Other 150 47 185
Total net commission income 3 976 3 754 3 660
===== SIDA 29 =====
Swedbank – Report for the First quarter│ 2024│29
Note 7 Net gains and losses on financial items
Q1 Q4 Q1
SEKm 2024 2023 2023
Fair value through profit or loss
Shares and share related derivatives 370 152 -14
of which dividend 159 18 88
Interest-bearing securities and interest related derivatives 1 101 924 472
Financial liabilities 1 -6 0
Financial assets and liabilities where the customers bear the
investment risk, net 13 8 -1
Other financial instruments -1 0 1
Total fair value through profit or loss 1 485 1 079 458
Hedge accounting
Ineffectiveness, one-to-one fair value hedges 3 33 86
of which hedging instruments -3 214 16 482 3 676
of which hedged items 3 217 -16 450 -3 590
Ineffectiveness, portfolio fair value hedges -6 -29 82
of which hedging instruments -256 -6 620 -2 898
of which hedged items 250 6 591 2 980
Ineffectiveness, cash flow hedges -2 3 -1
Total hedge accounting -5 6 167
Amortised cost
Derecognition gain or loss for financial assets 3 14 11
Derecognition gain or loss for financial liabilities 99 6 9
Total amortised cost 102 20 20
Trading related interest
Interest income 1 261 1 730 1 121
Interest expense -2 302 -2 414 -1 242
Total trading related interest -1 041 -684 -121
Change in exchange rates 141 423 393
Total 682 845 916
===== SIDA 30 =====
Swedbank – Report for the First quarter│ 2024│30
Note 8 Net insurance income
Q1 Q4 Q1
SEKm 2024 2023 2023
Insurance service revenue 1 210 1 124 1 043
Insurance service expenses -943 -872 -799
Insurance service result 267 252 244
Result from reinsurance contracts held 1 -7 -16
Insurance finance income and expense -1 517 -1 020 -734
Insurance result -1 249 -776 -506
Return on financial assets backing insurance contracts with
participation features 1 516 1 311 787
Total 267 535 282
Note 9 Other general administrative expenses
Q1 Q4 Q1
SEKm 2024 2023 2023
Premises 98 122 121
IT expenses 836 926 631
Telecommunications and postage 36 28 32
Consultants 286 492 222
Compensation to savings banks 53 54 55
Other purchased services 325 316 267
Travel 26 43 27
Entertainment 6 13 6
Supplies 16 20 23
Advertising, PR and marketing 71 142 33
Security transport and alarm systems 21 19 17
Repair/maintenance of inventories 37 41 31
Other administrative expenses 120 82 111
Other operating expenses 25 12 29
Total 1 956 2 310 1 607
===== SIDA 31 =====
Swedbank – Report for the First quarter│ 2024│31
Note 10 Credit impairment
Q1 Q4 Q1
SEKm 2024 2023 2023
Credit impairments for loans at amortised cost
Credit impairments - stage 1 -167 -283 259
Credit impairments - stage 2 -22 314 456
Credit impairments - stage 3 261 11 4
Credit impairments - purchased or originated credit impaired -1 0 0
Total 71 42 720
Write-offs 105 160 57
Recoveries -55 -33 -49
Total 51 127 9
Total - credit impairments for loans at amortised cost 122 168 729
Credit impairments for loan commitments and guarantees
Credit impairments - stage 1 5 -93 35
Credit impairments - stage 2 -51 -10 21
Credit impairments - stage 3 68 297 -8
Total - credit impairments for loan commitments and
guarantees 23 194 48
Total credit impairments 144 363 777
Credit impairment ratio, % 0.03 0.08 0.16
Calculation of credit impairment provisions
The measurement of expected credit losses is
described in Note G3.1 Credit risk on pages 86-91 of
the 2023 Annual and Sustainability Report.
Measurement of 12-month and lifetime expected
credit losses
While inflation has started to come down, the high
interest rates and overall costs levels, combined with
geopolitical instability, continue to weigh on private
persons and companies, resulting in a high level of
uncertainty regarding impact on credit risk. As the
quantitative risk models do not yet reflect all potential
deteriorations in credit quality, post-model adjustments
have been made to capture potential future rating and
stage migrations.
Post-model expert credit adjustments to increase the
credit impairment provisions continue to be deemed
necessary and amounted to SEK 996m (SEK 1 324m at
31 December 2023) and are allocated as SEK 525m in
stage 1 and SEK 471m in stage 2 (SEK 678m in stage 1,
SEK 644m in stage 2 and SEK 1m in stage 3 at 31
December 2023). Customers and industries are
reviewed and analysed considering the current situation,
particularly in more vulnerable sectors. During the first
quarter, the main changes were that post-model expert
credit adjustments for the Property management sector
and Retail sector were released whilst post-model
expert credit adjustments for Manufacturing sector
increased. The most significant post-model
adjustments at 31 March 2024 were in the Property
management, Manufacturing and Agriculture, forestry,
fishing sectors.
===== SIDA 32 =====
Swedbank – Report for the First quarter│ 2024│32
The tables below show the quantitative thresholds used
by the Group for assessing a significant increase in
credit risk, namely:
• Changes in the 12-month PD and internal risk rating
grades, which have been applied for the portfolio of
loans originated before 1 January 2018. For
instance, for exposures originated with risk grades
0 to 5, a downgrade by 1 grade from initial
recognition is assessed as a significant change in
credit risk. Alternatively, for exposures originated
with risk grades 18 to 21, a downgrade by 5 to 8
grades from initial recognition is considered
significant. Internal risk ratings are assigned
according to the risk management framework
outlined in Note G3 Risks in the 2023 Annual and
Sustainability Report.
• Changes in the lifetime PD, which have been
applied for the portfolio of loans originated on or
after 1 January 2018. For instance, for exposures
originated with risk grades 0 to 5, a 50 per cent
increase in the lifetime PD from initial recognition is
assessed as a significant change in credit risk.
Alternatively, for exposures originated with risk
grades 18 to 21, an increase of 200-300 per cent
from initial recognition is considered significant
except for Swedish mortgages where an absolute
12-month PD threshold is also applied.
These limits reflect a lower sensitivity to change in the
low-risk end of the risk scale and a higher sensitivity to
change in the high-risk end of the scale. The Group has
performed a sensitivity analysis on how credit
impairment provisions would change if thresholds
applied were increased or decreased. A lower threshold
would increase the number of loans that have migrated
from Stage 1 to Stage 2 and also increase the estimated
credit impairment provisions. A higher threshold would
have the opposite effect.
The tables below disclose the impacts of this sensitivity
analysis on the credit impairment provisions. Positive
amounts represent higher credit impairment provisions
that would be recognised.
Significant increase in credit risk - financial instruments with initial recognition before 1 January 2018
Significant increase in credit risk - financial instruments with initial recognition on or after 1 January 2018
===== SIDA 33 =====
Swedbank – Report for the First quarter│ 2024│33
Incorporation of forward-looking macroeconomic scenarios
The Swedbank Economic Outlook was published on
25 January and the baseline scenario was updated by
Swedbank Macro Research as of 11 March. The
baseline scenario, with an assigned probability weight
of 66.6 per cent, is aligned with the published outlook
and incorporates updated observed outcome and data
points. The alternative scenarios are aligned with the
updated baseline scenario, with probability weights of
16.7 per cent assigned to both the upside and downside
scenario. The table below sets out the key assumptions
of the scenarios at 31 March 2024.
31 March 2024 Positive scenario Baseline scenario Negative scenario
2024 2025 2026 2024 2025 2026 2024 2025 2026
Sweden
GDP (annual % change) 0.5 3.6 2.3 -0.1 3.0 2.6 -3.6 -4.1 3.6
Unemployment (annual %)¹ 8.4 8.4 7.7 8.4 8.4 7.8 8.8 11.1 10.9
House prices (annual % change) -1.7 4.9 4.3 -1.8 4.4 4.0 -10.7 -7.6 3.7
Stibor 3m (%) 3.72 2.64 2.11 3.54 2.41 2.10 3.02 0.52 0.25
Estonia
GDP (annual % change) 0.6 3.7 3.1 -0.4 2.8 3.4 -4.2 -6.0 3.3
Unemployment (annual %) 7.5 6.2 5.5 7.7 6.8 5.9 8.4 12.2 13.5
House prices (annual % change) -0.7 4.7 5.1 -1.5 3.5 4.9 -18.0 -22.0 4.9
Latvia
GDP (annual % change) 1.5 3.4 3.0 1.4 2.7 2.5 -2.6 -5.2 2.6
Unemployment (annual %) 6.5 5.8 5.7 6.6 6.1 6.0 8.4 12.4 12.7
House prices (annual % change) 1.4 5.0 3.9 0.0 4.7 5.3 -15.5 -23.1 -0.9
Lithuania
GDP (annual % change) 1.6 2.5 2.1 1.1 2.0 2.3 -3.2 -6.0 3.1
Unemployment (annual %) 6.8 6.2 6.0 7.1 6.7 6.6 7.9 11.5 14.7
House prices (annual % change) 0.9 4.0 4.2 -0.1 3.7 4.9 -18.7 -23.2 1.9
Global indicators
US GDP (annual %) 2.4 2.3 2.1 2.0 1.5 1.9 -0.2 -2.8 1.4
EU GDP (annual %) 0.5 2.1 1.2 -0.1 1.5 1.4 -3.2 -4.9 1.9
Brent Crude Oil (USD/Barrel) 81.3 76.3 72.5 80.2 75.5 72.5 61.4 43.9 56.2
Euribor 6m (%) 3.55 2.67 2.07 3.32 2.03 1.87 3.07 0.31 0.00
1) Unemployment rate, 16-64 years
The rapid decline in inflation, combined with falling
interest rates, increases the likelihood of a soft landing
for many economies this year. The US economy has
remained resilient and growth in 2024 will be only
slightly slower than last year. Growth in the euro area
economy has slowed down markedly, not least in
Germany, but a recovery is expected in 2025.
Intensified geopolitical tensions, not least in the Middle
East, pose a risk to the global economic recovery. The
disruption to trade flows in the Suez Canal is causing
damage in the form of production delays and higher
prices. If this remains an isolated event, it will not to be
enough to reverse the downward trend in inflation.
Falling inflation, lower interest rates and rising real
incomes pave the way for a rapid recovery of the
Swedish economy in 2025. However, the near-term
outlook is bleak, and GDP is expected to be unchanged
this year before growing by 3% next year. The labour
market will continue to weaken and the unemployment
rate is expected to peak at 8.6% in the fourth quarter of
2024.
In the Baltic countries, GDP growth will resume in 2024,
especially in the second half of the year, mainly driven
by stronger household purchasing power. Growth is
likely to accelerate in 2025. Unemployment is expected
to remain stable or increase only slightly.
===== SIDA 34 =====
Swedbank – Report for the First quarter│ 2024│34
Sensitivity
The table below shows the credit impairment provisions that would result from the negative and positive scenarios, which
are considered reasonably possible, being assigned a probability weight of 100 per cent.
Post-model expert credit adjustments are assumed to be constant in the results.
Note 11 Bank taxes and resolution fees
Q1 Q4 Q1
SEKm 2024 2023 2023
Swedish bank tax 276 294 292
Lithuanian bank tax 508 584 0
Latvian bank tax 107 0 0
Resolution fees 213 224 226
Total 1 104 1 102 518
Swedish bank tax refers to Risk tax on credit institutions that was introduced from 1 January 2022. It is applied on credit
institutions with a tax base exceeding SEK 150bn.
Lithuanian bank tax refers to the Lithuanian temporary solidarity contribution on credit institutions that was introduced
and is calculated from May 2023 until the end of 2024. The bank tax is 60 percent and is applied to a part of the net
interest income earned during the period which exceeds the average net interest income of four historical years by more
than 50 percent.
Latvian bank tax refers to the temporary fee that was introduced January 1, 2024 and applies for 2024 only. The bank tax
will be charged with 0.5% per quarter calculated on the total portfolio of floating mortgage loans signed before October
31, 2023.
===== SIDA 35 =====
Swedbank – Report for the First quarter│ 2024│35
Note 12 Loans
The following tables present loans to the public and credit institutions at amortised cost by industry sectors, loans and
credit impairment provisions ratios.
===== SIDA 36 =====
Swedbank – Report for the First quarter│ 2024│36
===== SIDA 37 =====
Swedbank – Report for the First quarter│ 2024│37
Note 13 Credit impairment provisions
The following table presents a summary of credit impairment provisions for financial instruments that are subject to the
credit impairment requirements.
The following table presents gross carrying amounts and nominal amounts by stage for financial instruments that are
subject to the credit impairment requirements.
===== SIDA 38 =====
Swedbank – Report for the First quarter│ 2024│38
Reconciliation of credit impairment provisions for loans
The tables below provide a reconciliation of credit impairment provisions for loans to the public and credit institutions at
amortised cost.
Loan commitments and financial guarantees
The tables below provide a reconciliation of credit impairment provisions for loan commitments and financial guarantees.
===== SIDA 39 =====
Swedbank – Report for the First quarter│ 2024│39
Note 14 Credit risk exposures
31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023
Assets
Cash and balances with central banks 346 835 252 994 361 343
Interest-bearing securities 291 314 237 460 362 891
Loans to credit institutions 44 819 67 534 59 316
Loans to the public 1 890 048 1 863 375 1 838 152
Derivatives 42 665 39 563 37 351
Other financial assets 21 564 7 972 28 114
Total assets 2 637 245 2 468 899 2 687 168
Contingent liabilities and commitments
Guarantees 44 123 43 835 42 136
Loan commitments 261 670 249 422 265 181
Total contingent liabilities and commitments 305 793 293 257 307 317
Total 2 943 038 2 762 156 2 994 484
===== SIDA 40 =====
Swedbank – Report for the First quarter│ 2024│40
Note 15 Intangible assets
Indefinate useful life Definate useful life Total
Goodwill & Brand Other intangible assets
Jan-Mar Full year Jan-Mar Jan-Mar Full year Jan-Mar Jan-Mar Full year Jan-Mar
SEKm 2024 2023 2023 2024 2023 2023 2024 2023 2023
Opening balance 13 861 13 850 13 850 6 580 6 036 6 036 20 440 19 886 19 886
Additions 0 0 301 1 265 379 301 1 265 379
Amortisation for the period -204 -641 -138 -204 -641 -138
Impairment for the period 0 -81 0 -81
Sales and disposals 0 0 -2 0 -1 -2 0 -1
Exchange rate differences 424 11 175 2 1 1 426 12 176
Closing balance 14 285 13 861 14 024 6 677 6 580 6 276 20 962 20 440 20 301
As of 31 March 2024, there was no indication of an impairment of intangible assets.
During 2023, impairments of SEK 81m was made in relation to internally developed software, which will no longer be used.
Note 16 Amounts owed to credit institutions
31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023
Central banks 11 097 10 098 22 971
Banks 69 676 46 540 76 198
Other credit institutions 5 827 8 162 8 104
Repurchase agreements 7 073 7 256 29 155
Total 93 671 72 054 136 427
Note 17 Deposits and borrowings from the public
31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023
Private customers 712 385 702 565 699 943
Corporate customers 553 600 527 863 603 119
Total deposits from customers 1 265 985 1 230 428 1 303 062
Cash collaterals received 3 816 3 470 4 449
Swedish National Debt Office 229 94 85
Repurchase agreements - Swedish National Debt Office 1 3 0
Repurchase agreements 5 362 268 5 482
Total borrowings 9 408 3 835 10 017
Deposits and borrowings from the public 1 275 393 1 234 262 1 313 079
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Swedbank – Report for the First quarter│ 2024│41
Note 18 Debt securities in issue, senior non-preferred
liabilities and subordinated liabilities
31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023
Commercial papers 349 033 263 334 407 435
Covered bonds 361 343 345 615 331 013
Senior unsecured bonds 116 237 118 238 123 968
Structured retail bonds 1 013 1 361 2 155
Total debt securities in issue 827 627 728 548 864 571
Senior non-preferred liabilities 119 171 104 828 66 774
Subordinated liabilities 40 933 32 841 37 232
Total 987 731 866 217 968 577
Jan-Mar Full-year Jan-Mar
Turnover 2024 2023 2023
Opening balance 866 217 872 976 872 976
Issued 205 560 893 599 290 932
Repurchased -1 129 -20 295 -5 832
Repaid -118 285 -899 951 -195 532
Interest, change in fair values or hedged items in fair value hedges and
changes in exchange rates 35 367 19 888 6 033
Closing balance 987 731 866 217 968 577
Note 19 Derivatives
Nominal amount Positive fair value Negative fair value
31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023 2024 2023 2023 2024 2023 2023
Derivatives in hedge accounting
One-to-one fair value hedges 598 946 558 527 534 771 3 015 6 415 984 17 107 15 654 26 465
Portfolio fair value hedges 343 750 352 036 400 750 9 149 9 665 18 017 596 503 43
Cash flow hedges 8 496 8 188 8 307 893 596 731
Total 951 192 918 751 943 828 13 057 16 676 19 732 17 703 16 157 26 508
Non-hedge accounting derivatives 34 833 358 33 026 557 32 244 837 931 479 887 411 1 149 370 930 928 925 558 1 158 022
Gross amount 35 784 550 33 945 308 33 188 666 944 536 904 087 1 169 102 948 631 941 715 1 184 530
Offset amount -901 871 -864 523 -1 131 750 -909 623 -868 262 -1 136 671
Total 42 665 39 563 37 351 39 008 73 453 47 859
1) Interest rate swaps
2) Cross currency basis swaps
The Group trades in derivatives in the normal course of business and for the purpose of hedging certain
positions that are exposed to share price, interest rate, credit and currency risks. The carrying amounts of
all derivatives refer to fair value including accrued interest.
===== SIDA 42 =====
Swedbank – Report for the First quarter│ 2024│42
Note 20 Valuation categories for financial instruments
The tables below present the carrying amount and fair value of financial assets and financial liabilities,
according to valuation categories. The methodologies to determine the fair value are described in the
Annual and Sustainability Report 2023, note G47 Fair value of financial instruments.
===== SIDA 43 =====
Swedbank – Report for the First quarter│ 2024│43
===== SIDA 44 =====
Swedbank – Report for the First quarter│ 2024│44
Note 21 Financial instruments recognised at fair value
The determination of fair value, the valuation hierarchy and the valuation process for fair value
measurements in Level 3 are described in the Annual and Sustainability Report 2023, note G47 Fair value of
financial instruments.
The financial instruments are distributed in three levels depending on the degree of observable market data
in the valuation and activity in the market.
• Level 1: Unadjusted quoted price on an active market.
• Level 2: Adjusted quoted price or valuation model with valuation parameters derived from an active
market.
• Level 3: Valuation model where significant valuation parameters are non-observable and based on
internal assumptions.
The following tables present fair values of financial instruments recognised at fair value split between the
three valuation hierarchy levels.
Transfers between levels are reflected as per the fair value at closing day. There were no transfers of financial
instruments between valuation levels 1 and 2 during the period.
Financial instruments are transferred to or from level 3
depending on whether the internal assumptions have
changed in significance to the valuation.
Level 3 mainly comprises strategic unlisted shares.
These include holdings in VISA Inc. C shares that are
subject to selling restrictions until June 2028 and under
certain conditions may have to be returned. Liquid
quotes are not available for these shares, therefore the
fair value is established with significant elements of
===== SIDA 45 =====
Swedbank – Report for the First quarter│ 2024│45
Swedbank’s own internal assumptions. The carrying
amount of the holdings in Visa Inc. C amounted as per
31 mars 2024 to SEK 615m (SEK 467m 31 mars 2023).
In the Group’s insurance operations, fund units are held
in which the customers have chosen to invest their
insurance savings. The holdings are reported in the
balance sheet as financial assets
where the customers bear the investment risk and are
normally measured at fair value according to level 1,
because the units are traded in an active market. The
Group’s obligations to insurance savers are reported as
financial liabilities where the customers bear the
investment risk because it is the customers who bear
the entire market value change of the assets. The
liabilities are normally measured at fair value according
to level 2.
During the first quarter 2022, trading was closed in
whole or in part in Russia and Eastern Europe targeted
funds. Remaining unit holdings, only correlated to the
Russia funds, and related liabilities to the insurance
savers have been measured at fair value according to
level 3 and been measured at value SEK
0m.
Note 22 Assets pledged, contingent liabilities and
commitments
31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023
Loans used as collateral for covered bonds¹ 394 281 381 369 371 022
Assets recorded in register on behalf of insurance policy holders 375 410 335 375 304 184
Other assets ledged for own liabilities 116 545 151 763 84 913
Other assets pledged 17 311 18 253 15 398
Assets pledged 903 547 886 760 775 517
Nominal amounts
Guarantees 44 123 43 835 42 136
Other 74 77 75
Contingent liabilities 44 197 43 911 42 211
Nominal amounts
Loans granted not paid 207 166 192 919 207 713
Overdraft facilities granted but not utilised 54 504 56 503 57 468
Commitments 261 670 249 422 265 181
1) The pledge is defined as the borrower’s nominal debt including accrued interest and refers to the loans of the total avail able
collateral that are used as the pledge at each point in time.
Swedbank is cooperating with authorities in the United
States who are conducting investigations into
Swedbank’s historic AML compliance and the Group's
response thereto, as well as related issues involving the
Group's anti-money laundering controls and certain
individuals and entities who may at some time have
been customers of the Group. Investigations by the
Department of Justice (DoJ), the Securities and
Exchange Commission (SEC) and the Department of
Financial Services (DFS) in New York are ongoing. In
June 2023, Swedbank reached an agreement to remit
SEK 37m related to violation of OFAC regulations.
The timing of the completion of the investigations is still
unknown and the outcomes are still uncertain. It is
therefore not possible to reliably estimate the amount of
any potential settlement or fines, which could be
material.
In February, the Estonian Prosecutor’s Office closed its
investigation of suspected money laundering offences
by Swedbank AS in 2014–2016. The criminal
investigation originated from the Estonian FSA’s
previous investigation of Swedbank AS in 2019.
===== SIDA 46 =====
Swedbank – Report for the First quarter│ 2024│46
Note 23 Offsetting financial assets and liabilities
The tables below present recognised financial
instruments that have been offset in the balance sheet
under IAS 32 and those that are subject to legally
enforceable master netting or similar agreements but
do not qualify for offset. Such financial instruments
relate to derivatives, repurchase and reverse repurchase
agreements, securities settlements, securities
borrowing and lending transactions. Collateral amounts
represent financial instruments or cash collateral
received or pledged for transactions that are subject to
a legally enforceable master netting or similar
agreements and which allow for the netting of
obligations against the counterparty in the event of a
default. Collateral amounts are limited to the amount of
the related instruments presented in the balance sheet;
therefore any over-collateralisation is not included.
Amounts that are not offset in the balance sheet are
presented as a reduction to the financial assets or
liabilities in order to derive net asset and net liability
exposure.
Financial assets Financial liabilities
31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023 2024 2023 2023
Financial assets and liabilities, which have been offset or are
subject to netting
Gross amount 1 190 873 1 036 690 1 292 397 1 115 533 1 035 778 1 292 412
Offset amount -1 054 511 -951 626 -1 202 839 -1 062 263 -955 365 -1 207 759
Net amounts presented in the balance sheet 136 362 85 064 89 559 53 270 80 414 84 653
Related amounts not offset in the balance sheet
Financial instruments, netting arrangements 22 640 21 929 29 111 19 295 21 930 29 111
Financial Instruments, collateral 89 364 45 980 42 982 18 163 19 294 35 549
Cash collateral 13 075 7 460 8 217 8 796 38 055 16 002
Total amount not offset in the balance sheet 125 079 75 369 80 310 46 254 79 279 80 662
Net amount 11 283 9 695 9 249 7 015 1 135 3 991
The amount offset for derivative assets includes offset
cash collateral of SEK 8 116m (9 542) derived from the
balance sheet item Amounts owed to credit institutions.
The amount offset for derivative liabilities includes
offset cash collateral of SEK 15 869m (13 281), derived
from the balance sheet item Loans to credit institutions.
===== SIDA 47 =====
Swedbank – Report for the First quarter│ 2024│47
Note 24 Capital adequacy, consolidated situation
This note contains the information made public according to the Swedish Financial Supervisory Authority Regulation FFFS
2008:25. Additional periodic information according to Regulation (EU) No 575/2013 of the European Parliament and of the
Council on Supervisory Requirements for Credit Institutions and Implementing Regulation (EU) No 2021/637 of the
European Commission can be found on Swedbank’s website: https://www.swedbank.com/ investor- relations/reports-and-
presentations/risk-reports.
In the consolidated situation the Group’s insurance companies are accounted for according to the equity method instead of
full consolidation. Joint venture companies EnterCard Group AB, Invidem AB and P27 Nordic Payments Platform AB
consolidates by proportional method instead of accounted for with the equity method. Otherwise, the same principles for
consolidations are applied as for the Group. Otherwise, the same principles for consolidations are applied as for the Group.
31 Mar 31 Dec 30 Sep 30 Jun 31 Mar
Consolidated situation, SEKm 2024 2023 2023 2023 2023
Available own funds
Common Equity Tier 1 (CET1) capital 166 143 160 659 156 880 152 511 147 702
Tier 1 capital 187 988 174 848 171 844 167 442 162 241
Total capital 208 908 195 648 192 499 193 791 185 944
Risk-weighted exposure amounts
Total risk exposure amount 859 345 847 121 837 943 819 021 806 178
Capital ratios as a percentage of risk-weighted exposure amount
Common Equity Tier 1 ratio 19.3 19.0 18.7 18.6 18.3
Tier 1 ratio 21.9 20.6 20.5 20.4 20.1
Total capital ratio 24.3 23.1 23.0 23.7 23.1
Additional own funds requirements to address risks other than the risk of
excessive leverage as a percentage of risk-weighted exposure amount
Additional own funds requirements to address risks other than the risk of
excessive leverage 2.7 2.7 2.7 2.3 2.3
of which: to be made up of CET1 capital 1.8 1.8 1.8 1.5 1.5
of which: to be made up of Tier 1 capital 2.1 2.1 2.1 1.8 1.8
Total SREP own funds requirements 10.7 10.7 10.7 10.3 10.3
Combined buffer and overall capital requirement as a percentage of risk-weighted
exposure amount
Capital conservation buffer 2.5 2.5 2.5 2.5 2.5
Conservation buffer due to macro-prudential or systemic risk identified at the level
of a Member State 0.0 0.0 0.0 0.0 0.0
Institution-specific countercyclical capital buffer 1.7 1.7 1.6 1.6 0.9
Systemic risk buffer 3.1 3.1 3.1 3.1 3.0
Global Systemically Important Institution buffer 0.0 0.0 0.0 0.0 0.0
Other Systemically Important Institution buffer 1.0 1.0 1.0 1.0 1.0
Combined buffer requirement 8.3 8.3 8.2 8.2 7.4
Overall capital requirements 18.9 19.0 18.9 18.4 17.7
CET1 available after meeting the total SREP own funds requirements 13.0 12.4 12.3 12.6 12.3
Leverage ratio
Total exposure measure 2 957 209 2 689 307 2 876 831 2 892 936 2 921 562
Leverage ratio, % 6.4 6.5 6.0 5.8 5.6
Additional own funds requirements to address the risk of excessive leverage as a
percentage of total exposure measure
Additional own funds requirements to address the risk of excessive leverage 0.0 0 0 0 0
of which: to be made up of CET1 capital 0.0 0.0 0.0 0.0 0.0
Total SREP leverage ratio requirements 3.0 3.0 3.0 3.0 3.0
Leverage ratio buffer and overall leverage ratio requirement as a percentage of
total exposure measure
Leverage ratio buffer requirement
Overall leverage ratio requirement 3.0 3.0 3.0 3.0 3.0
Liquidity Coverage Ratio¹²
Total high-quality liquid assets, average weighted value 691 200 709 683 722 060 717 976 715 174
Cash outflows, total weighted value 499 465 521 325 536 211 537 832 544 397
Cash inflows, total weighted value 58 558 58 123 55 863 55 578 53 133
Total net cash outflows, adjusted value 440 907 463 202 480 347 482 255 491 264
Liquidity coverage ratio, % 158.2 154.2 151.0 149.8 146.5
Net stable funding ratio
Total available stable funding 1 781 575 1 720 299 1 722 723 1 741 688 1 709 056
Total required stable funding 1 415 898 1 390 353 1 420 508 1 415 740 1 418 583
Net stable funding ratio, % 125.9 123.7 121.3 123.0 120.5
1) The liquidity coverage ratio has been re-calculated and figures prior to 2024 have been adjusted.
2) High quality liquid assets and cashflows refer to the average of the values at each month -end during the last 12 months. The ratio is calculated as an average
of the 12 last month-end observations.
===== SIDA 48 =====
Swedbank – Report for the First quarter│ 2024│48
Common Equity Tier 1 capital 31 Mar 31 Dec 31 Mar
Consolidated situation, SEKm 2024 2023 2023
Shareholders' equity according to the Group's balance sheet 192 114 198 760 173 334
Anticipated dividend -4 214 -17 049 -3 780
Value changes in own financial liabilities -125 -150 -227
Cash flow hedges -13 -9 -11
Additional value adjustments -528 -609 -803
Goodwill -14 298 -13 874 -14 037
Deferred tax assets -20 -25 -41
Intangible assets -3 800 -4 470 -4 320
Insufficient coverage for non-performing exposures -87 -61 -9
Deductions of CET1 capital due to Article 3 CRR -141 -140 -113
Shares deducted from CET1 capital -48 -46 -39
Pension fund assets -2 696 -1 667 -2 253
Total 166 143 160 659 147 702
Risk exposure amount 31 Mar 31 Dec 31 Mar
Consolidated situation, SEKm 2024 2023 2023
Credit risks, standardised approach 59 138 59 387 53 128
Credit risks, IRB 388 620 374 538 337 809
Default fund contribution 329 335 231
Settlement risks 0 0 0
Market risks 18 364 16 592 19 837
Credit value adjustment 1 569 2 986 1 976
Operational risks 96 123 96 123 79 995
Additional risk exposure amount, Article 3 CRR 27 279 29 234 73 400
Additional risk exposure amount, Article 458 CRR 267 924 267 925 239 802
Total 859 345 847 121 806 178
SEKm %
Capital requirements¹ 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar
Consolidated situation, SEKm / % 2024 2023 2023 2024 2023 2023
Capital requirement Pillar 1 139 869 138 023 124 354 16.3 16.3 15.4
of which Buffer requirements² 71 121 70 254 59 860 8.3 8.3 7.4
Capital requirement Pillar 2³ 22 945 22 618 18 300 2.7 2.7 2.3
Pillar 2 guidance 4 297 4 236 8 062 0.5 0.5 1.0
Total capital requirement including Pillar 2
guidance 167 110 164 877 150 716 19.4 19.5 18.7
Own funds 208 908 195 648 185 944
1) Swedbank's calculation based on the SFSA's announced capital requirements, including Pillar 2 requirements and Pillar 2 guidance.
2) Buffer requirements includes systemic risk buffer, capital conservation buffer, countercyclical capital buffer and buffer for other systemically
important institutions.
3) Individual Pillar 2 requirement according to decision from SFSA SREP 2023.
SEKm %
Leverage ratio requirements¹ 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar
Consolidated situation, SEKm / % 2024 2023 2023 2024 2023 2023
Leverage ratio requirement Pillar 1 88 716 80 679 87 647 3.0 3.0 3.0
Leverage ratio Pillar 2 guidance 14 786 13 447 13 147 0.5 0.5 0.5
Total capital requirement including Pillar 2
guidance 103 502 94 126 100 794 3.5 3.5 3.5
Tier 1 capital 187 988 174 848 162 241
1) Swedbank's calculation based on the SFSA's announced leverage ratio requirements, including Pillar 2 requirements and Pillar 2 guidance.
===== SIDA 49 =====
Swedbank – Report for the First quarter│ 2024│49
Note 25 Internal capital requirement
This note provides information on the internal capital
assessment according to chapter 8, section 5 of the
SFSA’s regulation on prudential requirements and
capital buffers (2014:12). The internal capital
assessment is published in the interim report according
to chapter 8, section 4 of the SFSA’s regulation and
general advice on annual reports from credit institutions
and investment firms (2008:25).
A bank must identify, measure and manage the risks
with which its activities are associated and have
sufficient capital to cover these risks. The purpose of
the Internal Capital Adequacy Assessment Process
(ICAAP) is to ensure that the bank is sufficiently
capitalised to cover its risks and to conduct and develop
its business activities. Swedbank applies its own
models and processes to evaluate its capital need for all
relevant risks. The models that serve as a basis for the
internal capital assessment evaluate the need for
economic capital over a one-year horizon at a 99.9 per
cent confidence level for each type of risk.
Diversification effects between various types of risks
are not taken into account in the calculation of
economic capital.
As a complement to the economic capital calculation,
scenario-based simulations and stress tests are
conducted at least once a year. The analyses provide an
overview of the most important risks Swedbank is
exposed to by quantifying their impact on the income
statement and balance sheet as well as the own funds
and risk-weighted assets. The purpose is to ensure
efficient use of capital. This methodology serves as a
basis of proactive risk and capital management.
As of 31 March 2024, the internal capital assessment
for Swedbank’s consolidated situation amounted to
SEK 50bn (SEK 50.5bn as of 31 December 2023). The
capital to meet the internal capital assessment, i.e. the
Total capital, amounted to SEK 208.9bn (SEK 195.6bn
as of 31 December 2023) (see Note 24). Swedbank’s
internal capital assessment using its own models is not
comparable with the estimated capital requirement that
the SFSA releases quarterly and does not consider the
SFSA risk-weight floor for Swedish mortgages.
The internally estimated capital requirement for the
parent company amounted to SEK 33.7bn (SEK 34.4bn
as of 31 December 2023) and the total capital
amounted to SEK 153.7bn (SEK 142.8bn as of 31
December 2023) (see the parent company’s note on
capital adequacy).
In addition to what is stated in this interim report, risk
management and capital adequacy according to the
Basel III framework are described in more detail in
Swedbank’s Annual and Sustainability Report 2023 as
well as in Swedbank’s yearly Risk Management and
Capital Adequacy Report, available on
www.swedbank.se.
Note 26 Risks and uncertainties
Swedbank’s earnings are affected by changes in the
global marketplace over which it has no control,
including macroeconomic factors such as GDP, asset
prices and unemployment as well as changes in interest
rates, equity prices and exchange rates.
Geopolitical situation
The geopolitical situation is still uncertain due to the
instability in the Middle east, the ongoing Russian war of
aggression against Ukraine, and an increasingly
protectionist trade policies that could affect the
financial risks. Although these factors have had a
significant impact on the economy, Swedbank has low
to negligible direct exposures to counterparts in the
warring countries and is assessed to have the ability to
manage the indirect risks that may arise due to the
heightened geopolitical uncertainty.
Inflation
Global inflation is declining, but it remains significantly
above the monetary policy target levels. Both lowering
interest rates too early and keeping them high for too
long pose a risk to the economies of the Nordic and
Baltic regions, which could ultimately cause an
economic downturn and increased unemployment. This
concern is exacerbated by relatively high levels of
household debt and short-term interest rate binding
periods in Sweden, making them particularly sensitive to
further interest rate hikes.
Challenges and risk in digitalisation
Swedbank continuously monitors operational risks and
focuses on areas where the risks are considered
highest. Swedbank has noted an increase of cyber risk
due to geopolitical situation. During first quarter,
Swedbank has prioritised activities to improve IT and
information security, including cyber risk. Swedbank
works continuously to ensure high service availability
and security for its customers. Swedbank’s capacity to
manage these risks is good.
Fraud is a growing issue that is discussed at the highest
societal level, especially focusing on fraud prevention
activities within senior citizen population. Swedbank
invests in and continuously improves the bank’s
resilience and ability to detect, prevent, and investigate
fraud related crimes.
Anti-money laundering and Counter terrorist
financing and other compliance risks
For risks related to the ongoing investigations of
authorities in US related to historic anti-money
laundering compliance and response related to anti-
money laundering controls, please refer to Note 22
Assets pledged, contingent liabilities and commitments.
The risk level related to Market Conduct risk (within
Conduct risk) is elevated and risk-mitigating activities
are ongoing.
===== SIDA 50 =====
Swedbank – Report for the First quarter│ 2024│50
Tax
The tax area is complex and there can be a scope for
different interpretations. Practices and interpretations
of applicable laws can be changed, sometimes
retroactively. In the event that the tax authorities and,
where appropriate, the tax courts decide on a different
interpretation than what Swedbank initially made, it
could impact the Group’s operations, results and
financial position.
In addition to what is stated in this interim report,
detailed descriptions are provided in Swedbank’s 2023
Annual and sustainability report and in the disclosures
in the Risk Management and Capital Adequacy reports
available at www.swedbank.com.
Change in value if the market interest rate rises by one percentage point
Impact in SEKm on the net value of assets and liabilities, including derivatives, when market interest
rates are increased by one percentage point.
31 March 2024 < 5 yrs 5-10 yrs > 10 yrs Total
SEK -975 -107 255 -827
Foreign currencies 1 010 -305 -28 677
Total 35 -412 227 -150
31 December 2023
SEK -1 289 38 331 -920
Foreign currencies 1 110 -242 -69 799
Total -179 -204 262 -121
Impact in SEKm on the net value of assets and liabilities measured at fair value through profit or loss,
when market interest rates are increased by one percentage point.
31 March 2024 < 5 yrs 5-10 yrs > 10 yrs Total
SEK 793 -644 280 429
Foreign currencies -700 -279 39 -940
Total 93 -923 319 -511
31 December 2023
SEK 788 -805 428 411
Foreign currencies -583 -293 -18 -894
Total 205 -1 098 410 -483
Note 27 Related-party transactions
During the period normal business transactions were executed between companies in the Group, including other related
companies such as associates and joint ventures. The five partly owned savings banks are important associates.
===== SIDA 51 =====
Swedbank – Report for the First quarter│ 2024│51
Note 28 Swedbank’s share
31 Mar 31 Dec 31 Mar
Number of outstanding ordinary shares 2024 2023 2023
Issued shares
SWED A 1 132 005 722 1 132 005 722 1 132 005 722
Repurchased shares
SWED A -6 752 058 -7 209 322 -7 446 771
Number of outstanding ordinary shares on the closing
day 1 125 253 664 1 124 796 400 1 124 558 951
SWED A
Last price, SEK 212.30 201.70 170.15
Market capitalisation, SEKm 238 891 226 871 191 343
During 2024, within Swedbank's share-based compensation programme, Swedbank AB transferred 457
264 shares at no cost to employees.
Q1 Q4 Q1
Earnings per share 2024 2023 2023
Average number of shares
Average number of shares before dilution 1 125 014 707 1 124 509 662 1 123 704 913
Weighted average number of shares for potential
ordinary shares that incur a dilutive effect due to share-
based compensation programme 3 121 382 2 862 375 2 729 989
Average number of shares after dilution 1 128 136 089 1 127 372 036 1 126 434 902
Profit, SEKm
Profit for the period attributable to shareholders of
Swedbank 8 428 8 321 7 561
Earnings for the purpose of calculating earnings per
share 8 428 8 321 7 561
Earnings per share, SEK
Earnings per share before dilution 7.49 7.40 6.73
Earnings per share after dilution 7.47 7.38 6.71
===== SIDA 52 =====
Swedbank – Report for the First quarter│ 2024│52
Financial statements -
Swedbank AB
Income statement, condensed
Parent company Q1 Q4 Q1
SEKm 2024 2023 2023
Interest income
22 275 23 620 18 136
Interest expense -16 611 -16 792 -11 311
Net interest income 5 663 6 828 6 825
Dividends received 5 627 4 869 6 262
Net commission income 1 764 1 682 1 699
Net gains and losses on financial items 266 1 152 342
Other income 1 096 1 057 923
Total income 14 416 15 588 16 051
Staff costs 3 103 3 042 2 883
Other expenses 1 829 2 147 1 557
Depreciation/amortisation and impairment of tangible and intangible fixed
1 304 1 261 1 265
Administrative fines 890
Total expenses 6 236 6 450 6 596
Profit before impairments, Swedish bank tax and resolution fees 8 180 9 138 9 455
Credit impairments, net 109 214 547
Impairment of financial assets¹ 115
Swedish bank tax and resolution fees 337 339 337
Operating profit 7 734 8 471 8 571
Appropriations 6 995
Tax expense 951 317 1 101
Profit for the period 6 783 1 159 7 471
1) Impairment of financial assets refers to impairment of P27 Nordic Payments Platform AB.
Statement of comprehensive income, condensed
Parent company Q1 Q4 Q1
SEKm 2024 2023 2023
Profit for the period reported via income statement 6 783 1 159 7 471
Total comprehensive income for the period 6 783 1 159 7 471
===== SIDA 53 =====
Swedbank – Report for the First quarter│ 2024│53
Balance sheet, condensed
Parent company 31 Mar 31 Dec 31 Mar
SEKm 2024 2023 2023
Assets
Cash and balances with central banks 213 228 116 547 218 900
Loans to credit institutions 801 514 817 011 819 143
Loans to the public 484 590 471 612 464 675
Interest-bearing securities 286 068 235 641 357 321
Shares and participating interests 89 867 77 642 77 176
Derivatives 53 460 49 650 53 621
Other assets 44 553 37 196 39 100
Total assets 1 973 281 1 805 299 2 029 938
Liabilities and equity
Amounts owed to credit institutions 187 881 152 479 186 713
Deposits and borrowings from the public 899 717 864 906 952 674
Value change of the hedged liabilities in portfolio hedges of
interest rate risk 125 209
Debt securities in issue 460 933 378 554 528 185
Derivatives 62 908 96 284 78 986
Other liabilities and provisions 81 056 44 476 65 920
Senior non-preferred liabilities 119 171 104 828 66 774
Subordinated liabilities 40 933 32 841 37 232
Untaxed reserves 12 362 12 362 5 367
Equity 108 194 118 359 108 088
Total liabilities and equity 1 973 281 1 805 299 2 029 938
Pledged collateral 116 326 151 609 84 810
Other assets pledged 17 311 18 253 15 398
Contingent liabilities 89 893 88 535 88 787
Commitments 245 935 235 739 254 058
===== SIDA 54 =====
Swedbank – Report for the First quarter│ 2024│54
Statement of changes in equity, condensed
Parent company
SEKm
Restricted equity Non-restricted equity
January-March 2024 Share capital Statutory reserve
Share premium
reserve
Retained
earnings Total
Opening balance 1 January 2024 24 904 5 968 13 206 74 281 118 359
Dividend -17 048 -17 048
Share based payments to employees 100 100
Total comprehensive income for the period 6 783 6 783
Closing balance 31 March 2024 24 904 5 968 13 206 64 116 108 194
January-December 2023
Opening balance 1 January 2023 24 904 5 968 13 206 67 424 111 502
Dividend -10 964 -10 964
Share based payments to employees 301 301
Total comprehensive income for the period 17 520 17 520
Closing balance 31 December 2023 24 904 5 968 13 206 74 281 118 359
January-March 2023
Opening balance 1 January 2023 24 904 5 968 13 206 67 424 111 502
Dividend -10 964 -10 964
Share based payments to employees 79 79
Total comprehensive income for the period 7 471 7 471
Closing balance 31 March 2023 24 904 5 968 13 206 64 010 108 088
Cash flow statement, condensed
Parent company Jan-Mar Full-year Jan-Mar
SEKm 2024 2023 2023
Cash flow from operating activities 70 658 -137 536 -22 969
Cash flow from investing activities 9 140 5 794 12 994
Cash flow from financing activities 16 883 32 975 13 562
Cash flow for the period 96 681 -98 767 3 587
Cash and cash equivalents at beginning of period 116 547 215 314 215 314
Cash flow for the period 96 681 -98 767 3 587
Cash and cash equivalents at end of period 213 228 116 547 218 900
===== SIDA 55 =====
Swedbank – Report for the First quarter│ 2024│55
Capital adequacy
31 Mar 31 Dec 30 Sep 30 Jun 31 Mar
Parent company, SEKm 2024 2023 2023 2023 2023
Available own funds
Common equity tier 1 (CET1) capital 111 949 109 148 106 441 106 100 106 324
Tier 1 capital 133 793 123 336 121 405 121 031 120 863
Total capital 153 667 142 832 140 837 146 348 143 484
Risk-weighted exposure amounts
Total risk exposure amount 435 166 427 077 414 671 393 039 381 565
Capital ratios as a percentage of risk-weighted exposure amount
Common equity tier 1 ratio 25.7 25.6 25.7 27.0 27.9
Tier 1 ratio 30.7 28.9 29.3 30.8 31.7
Total capital ratio 35.3 33.4 34.0 37.2 37.6
Additional own funds requirements to address risks other than the risk of
excessive leverage as a percentage of risk-weighted exposure amount
Additional own funds requirements to address risks other than the risk of
excessive leverage 1.2 1.2 1.2 2.1 2.1
of which: to be made up of CET1 capital 0.8 0.8 0.8 1.4 1.4
of which: to be made up of Tier 1 capital 0.9 0.9 0.9 1.6 1.6
Total SREP own funds requirements 9.2 9.2 9.2 10.1 10.1
Combined buffer and overall capital requirement as a percentage of risk-weighted
exposure amount
Capital conservation buffer 2.5 2.5 2.5 2.5 2.5
Conservation buffer due to macro-prudential or systemic risk identified at the level
of a Member State
Institution-specific countercyclical capital buffer 1.6 1.7 1.7 1.6 0.9
Systemic risk buffer 0.0 0.0 0.0 0.0 0.0
Global Systemically Important Institution buffer
Other Systemically Important Institution buffer
Combined buffer requirement 4.1 4.2 4.2 4.1 3.4
Overall capital requirements 13.4 13.4 13.4 14.2 13.5
CET1 available after meeting the total SREP own funds requirements 20.5 20.3 20.4 21.1 21.9
Leverage ratio
Total exposure measure 1 571 858 1 308 778 1 532 147 1 529 710 1 521 947
Leverage ratio, % 8.5 9.4 7.9 7.9 7.9
Additional own funds requirements to address the risk of excessive leverage as a
percentage of total exposure measure
Additional own funds requirements to address the risk of excessive leverage
of which: to be made up of CET1 capital
Total SREP leverage ratio requirements 3.0 3.0 3.0 3.0 3.0
Leverage ratio buffer and overall leverage ratio requirement as a percentage of
total exposure measure
Leverage ratio buffer requirement
Overall leverage ratio requirement 3.0 3.0 3.0 3.0 3.0
Liquidity coverage ratio¹²
Total high-quality liquid assets, average weighted value 571 529 588 366 595 633 581 236 571 405
Cash outflows, total weighted value 504 906 530 163 547 814 547 225 571 247
Cash inflows, total weighted value 51 895 51 162 50 033 50 918 51 115
Total net cash outflows, adjusted value 453 011 479 001 497 781 496 308 520 131
Liquidity coverage ratio, % 126.8 123.5 120.0 117.5 110.6
Net stable funding ratio
Total available stable funding 1 095 569 1 033 099 1 044 967 1 039 516 1 032 023
Total required stable funding 614 594 596 745 601 829 589 546 601 344
Net stable funding ratio, % 178.3 173.1 173.6 176.3 171.6
1) The liquidity coverage ratio has been re-calculated and figures prior to 2024 have been adjusted.
2) High quality liquid assets and cashflows refer to the average of the values at each month-end during the last 12 months. The ratio is
calculated as an average of the 12 last month-end observations.
===== SIDA 56 =====
Swedbank – Report for the First quarter│ 2024│56
Risk exposure amount 31 Mar 31 Dec 31 Mar
Parent company, SEKm 2024 2023 2023
Credit risks, standardised approach 131 424 125 798 104 306
Credit risks, IRB 197 172 196 446 175 375
Default fund contribution 329 335 231
Settlement risks 0 0 0
Market risks 18 117 16 690 19 747
Credit value adjustment 1 538 2 940 1 968
Operational risks 50 860 50 860 42 408
Additional risk exposure amount, Article 3 CRR 1 000 500 29 358
Additional risk exposure amount, Article 458 CRR 34 726 33 508 8 172
Total 435 166 427 077 381 565
SEKm %
Capital requirements¹ 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar
Parent company, SEKm / % 2024 2023 2023 2024 2023 2023
Capital requirement Pillar 1 52 870 51 942 43 500 12.1 12.2 11.4
of which Buffer requirements² 18 056 17 775 12 975 4.1 4.2 3.4
Capital requirement Pillar 2³ 5 353 5 253 8 013 1.2 1.2 2.1
Total capital requirement including Pillar 2 guidance 58 222 57 195 51 513 13.4 13.4 13.5
Own funds 153 667 142 832 143 484 0 0 0
1) Swedbank's calculation based on the SFSA's announced capital requirements, including Pillar 2 requirements and Pillar 2 guidance.
2) Buffer requirements includes capital conservation buffer and countercyclical capital buffer.
3) Individual Pillar 2 requirement according to decision from SFSA SREP 2023.
SEKm %
Leverage ratio requirements¹ 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar
Parent company, SEKm / % 2024 2023 2023 2024 2023 2023
Leverage ratio requirement Pillar 1 47 156 39 263 45 658 3.0 3.0 3.0
Total leverage ratio requirement including Pillar 2 guidance 47 156 39 263 45 658 3.0 3.0 3.0
Tier 1 capital 133 793 123 336 120 863 0 0 0
1) Swedbank's calculation based on the SFSA's announced leverage ratio requirements, including Pillar 2 requirements and Pillar 2 guidance.
===== SIDA 57 =====
Swedbank – Report for the First quarter│ 2024│57
Alternative performance measures
Swedbank prepares its financial statements in accordance with IFRS as adopted by the EU, as set out in Note 1. The
interim report includes a number of alternative performance measures, which exclude certain items that management
believes are not representative of the underlying/ongoing performance of the business. Therefore the alternative
performance measures provide more comparative information between periods. Management believes that inclusion of
these measures provides information to the readers that enable comparability between periods.
Measure and definition Purpose
Net investment margin before trading interest is deducted
Calculated as Net interest income before trading-related interest is
deducted, in relation to average total assets. The average is calculated using
month-end figures1, including the prior year end. The nearest IFRS measure is
Net interest income and can be reconciled in Note 5.
Considers all interest income and
interest expense, independent of
how it has been presented in the
income statement.
Allocated equity
Allocated equity is the operating segment’s equity measure and is not
directly required by IFRS. The Group’s equity attributable to shareholders is
allocated to each operating segment based on capital adequacy rules and
estimated capital requirements based on the bank’s internal Capital
Adequacy Assessment Process (ICAAP). The allocated equity amounts per
operating segment are reconciled to the Group Total equity, the nearest IFRS
measure, in Note 4.
Used by Group Management for
internal governance and operating
segment performance
management purposes.
Return on allocated equity
Calculated based on profit for the period (annualised) attributable to the
shareholders for the operating segment, in relation to average allocated
equity for the operating segment. The average is calculated using month-end
figures
1, including the prior year end. The allocated equity amounts per
operating segment are reconciled to the Group Total equity, the nearest IFRS
measure, in Note 4.
Used by Group Management for
internal governance and operating
segment performance
management purposes.
Income statement excluding expenses for the administrative fines
Amount related to expenses is presented excluding expenses for
administrative fines. The amounts are reconciled to the relevant IFRS
income statement lines on page 5.
Provides comparability of figures
between reporting periods.
Return on equity excluding expenses for administrative fines
Calculated based on profit for the period (annualised) attributable to the
shareholders excluding expenses for the administrative fines, in relation to
average equity attributable to shareholders’ of the parent company. The
average is calculated using month-end figures
1, including the prior year end.
Profit for the period attributable to shareholders excluding expenses for
administrative fines are reconciled to Profit for the period allocated to
shareholders, the nearest IFRS measure, on page 5.
Provides comparability of figures
between reporting periods.
Cost/Income ratio excluding expenses for administrative fines
Total expenses excluding expenses related to administrative fines in relation
to total income. Total expenses excluding expense for administrative fines is
reconciled to Total expenses, the nearest IFRS measure, on page 5.
Provides comparability of figures
between reporting periods.
1) The month-end figures used in the calculation of the average can be found on page 71 of the Fact book.
===== SIDA 58 =====
Swedbank – Report for the First quarter│ 2024│58
Measure and definition Purpose
Other alternative performance measures
These measures are defined in the Fact book on page 77 and are calculated
from the financial statements without adjustment.
Share of Stage 1 loans, gross
Share of Stage 2 loans, gross
Share of Stage 3 loans, gross
Equity per share
Cost/Income ratio
Credit Impairment ratio
Loans to customers/Deposits from customers ratio
Credit impairment provision ratio Stage 1 loans
Credit impairment provision ratio Stage 2 loans
Credit impairment provision ratio Stage 3 loans
Return on equity1
Total credit impairment provision ratio
Used by Group Management for
internal governance and operating
segment performance
management purposes.
1) The month-end figures used in the calculation of the average can be found on page 71 of the Fact book.
===== SIDA 59 =====
Swedbank – Report for the First quarter│ 2024│59
Signatures of the Board of Directors and the President
The Board of Directors and the President hereby certify that the Interim report for January-March 2024 provides a fair and
accurate overview of the operations, position and results of the parent company and the Group and describes the
significant risks and uncertainties faced by the parent company and the companies in the Group.
Stockholm, 24 April 2024
Göran Persson
Chair
Göran Bengtsson Annika Creutzer Hans Eckerström
Board Member Board Member Board Member
Kerstin Hermansson Helena Liljedahl Anna Mossberg
Board Member Board Member Board member
Per Olof Nyman Biljana Pehrsson Biörn Riese
Board Member Board Member Board Member
Roger Ljung Åke Skoglund
Board Member Board Member
Employee Representative Employee Representative
Jens Henriksson
President and CEO
===== SIDA 60 =====
Swedbank – Report for the First quarter│ 2024│60
Review report
Introduction
We have reviewed the condensed interim financial information (interim report) of Swedbank AB (publ) as of 31 March
2024 and the three-month period then ended. The Board of Directors and the CEO are responsible for the preparation and
presentation of the interim financial information in accordance with IAS 34 and the Annual Accounts Act for credit
institutions and securities companies. Our responsibility is to express a conclusion on this interim report based on our
review.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of
Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review
is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and
other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in
all material respects, in accordance with IAS 34 and the Annual Accounts Act for credit institutions and securities
companies, regarding the Group, and with the Annual Accounts Act for credit institutions and securities companies,
regarding the Parent Company.
Stockholm, 25 April 2024
PricewaterhouseCoopers AB
Anneli Granqvist Martin By
Authorised Public Accountant Authorised Public Accountant
Auditor in charge
===== SIDA 61 =====
Swedbank – Report for the First quarter│ 2024│61
Publication of financial information
The Group’s financial reports can be found on www.swedbank.com/ir
Financial calendar 2024
Interim report for the second quarter 2024 16 July 2024
Interim report for the third quarter 2024 23 October 2024
For further information, please contact:
Jens Henriksson
President and CEO
Telephone +46 8 585 934 82
Anders Karlsson
CFO
Telephone +46 8 585 938 75
Annie Ho
Head of Investor Relations
Telephone +46 70 343 7815
Erik Ljungberg
Head of Group Communications
and Sustainability
Telephone +46 73 988 3557
Information on Swedbank’s strategy, values and share is also available on www.swedbank.com.
Swedbank AB (publ)
Registration no. 502017-7753
Head office
Visiting adress:
Landsvägen 40
172 63 Sundbyberg
Postal address:
Swedbank AB
SE-105 34 Stockholm, Sweden
Telephone +46 8 585 900 00
www.swedbank.com