FULLTEXT DEL 1 AV 1
Kvartalsrapport Q2 2024
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Swedbank – Report for the Second quarter│ 2024│1
Interim report
Second quarter | January – June 2024
16 July 2024
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Swedbank – Report for the Second quarter│ 2024│2
Second quarter 2024
”We create value for
our customers
and shareholders”
Jens Henriksson
President and CEO
Financial information Q2 Q1 Jan-Jun Jan-Jun
SEKm 2024 2024 % 2024 2023 %
Total income 18 237 18 087 1 36 324 35 560 2
Net interest income 12 165 12 599 -3 24 764 24 704 0
Net commission income 4 169 3 976 5 8 145 7 472 9
Net gains and losses on financial items 911 682 34 1 593 1 441 11
Other income¹ 991 831 19 1 822 1 944 -6
Total expenses 6 465 6 185 5 12 650 12 127 4
of which administrative fines 0 0 0 887
Profit before impairments, bank taxes and resolution fees 11 772 11 902 -1 23 674 23 433 1
Impairment of tangible and intangible assets 32 0 32 11
Credit impairment -289 144 -145 965
Bank taxes and resolution fees 1 045 1 104 -5 2 149 1 362 58
Profit before tax 10 983 10 654 3 21 637 21 095 3
Tax expense 2 388 2 226 7 4 614 4 412 5
Profit for the period 8 595 8 428 2 17 023 16 683 2
Earnings per share, SEK, after dilution 7.61 7.47 15.08 14.80
Return on equity, % 17.5 16.9 17.1 18.6
C/I ratio 0.35 0.34 0.35 0.34
Common Equity Tier 1 capital ratio, % 20.1 19.3 20.1 18.6
Credit impairment ratio, % -0.06 0.03 -0.01 0.10
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.
Strong profitability and high cost efficiency
Solid credit quality with recoveries during the quarter
Leading position in mortgages
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Swedbank – Report for the Second quarter│ 2024│3
CEO Comment
Swedbank again delivered a strong result. We create
value for our customers and shareholders in good times
and bad.
Economic conditions in our four home markets
continued to stabilise. Household purchasing power
improved in Latvia and Lithuania thanks to strong wage
growth and falling inflation. In Sweden and Estonia,
households were somewhat more cautious. Next year,
growth in all our four home markets is expected to be
higher than in other European countries.
Policy rates were cut by both the Riksbank and the
European Central Bank. Looking ahead, we expect rates
to be further reduced. Meanwhile, interest rates will
remain high for longer.
Swedbank’s result for the quarter amounted to
SEK 8 595m and the return on equity was 17.5 per cent.
Net interest income decreased, while commission
income increased. Expenses increased and the
cost/income ratio rose slightly to 0.35. Credit quality is
solid and we saw credit recoveries, mainly attributable
to an improved macroeconomic outlook.
Swedbank is maintaining strict cost control. The
temporary hiring freeze is having effect and the number
of employees decreased in June. The higher investment
rate from the previous quarter remains.
Swedbank is the leader in mortgage loans in all our
home markets and we are maintaining this position
despite tough competition. Loan demand remained
stable in Estonia, Latvia and Lithuania. In Sweden,
demand for loan commitments increased, but the
overall loan volumes remained muted.
Competition for deposits is high. A strong savings
culture is being developed in Estonia, Latvia and
Lithuania and deposits are stable, supported by strong
household finances. In Sweden, we saw an increase in
monthly savings even though households were
squeezed by high interest rates.
Swedbank’s 15/25 strategy included the target of
maintaining a sustainable return on equity of at least 15
per cent. We are achieving this by leveraging our
business model, growing the share of wallet, growing in
prioritised segments, and improving operational
efficiency. Through our cloud-based communication
platform, we have, among other things, increased the
capacity for advisory meetings, and we were able to
distribute nearly 1 million calls through the Swedish
branch network during the quarter.
The work that is being carried out in our new business
area, Premium and Private Banking, is producing
results. Since the start of the year, the number of
customers that have newly chosen the Private Banking
concept has increased by 7 per cent.
The migration of customers to our new and modern
savings platform continued. The platform enhances our
ability to support our customers improving their
financial health, which creates business opportunities.
Corporate lending is performing strongly in Lithuania.
This is the result of an increased focus on both existing
and potential customers, improved service quality and
customised financing solutions.
During the quarter, we took another step in our Nordic
strategy by partnering with the Finnish bank Aktia,
thereby expanding our corporate offering in Finland in
the same way as we have done with partnerships in
Norway and Denmark.
Swedbank works systematically and continuously to
fight financial crime and the risk of fraud. To further
strengthen this work, the Group Function Anti-Financial
Crime (AFC) was integrated into Group Products and
Advice (GPA), moving these operations closer to the
bank’s customer, product and service offerings with
digital execution in focus. AFC is renamed Economic
Crime Prevention (ECP).
During the quarter, we laid a stable foundation for
personalised fraud protection. In a new security portal in
our internet bank and app, customers now set
transaction amount limits themselves.
We adopted a climate target in May for our shipping
portfolio, so that climate considerations are integrated
into the bank’s loan decisions for ship finance.
Together with our customers, we are creating a
financially sound and sustainable society – built on
financial health for the many. It is gratifying to see an
increased interest in pension savings in the shape of
unit-linked life insurance. Swedbank Försäkring is now
the largest unit-linked life insurance company measured
by both premium payments and assets under
management.
Our customers’ future is our focus.
Jens Henriksson
President and CEO
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Swedbank – Report for the Second quarter│ 2024│4
Table of Contents
Financial overview 5 Notes to the financial statements
Important to note 6 Note 1 Accounting policies 22
Group development 6 Note 2 Critical accounting estimates 22
Volume trend by product area 7 Note 3 Changes in the Group structure 22
Credit and asset quality 9 Note 4 Operating segments (business
areas)
23 Funding and liquidity 9
Ratings 9 Note 5 Net interest income 27
Operational risks 9 Note 6 Net commission income 28
Capital and capital adequacy 9 Note 7 Net gains and losses on financial
items
29 Investigations 10
Other events 10 Note 8 Net insurance income 30
Events after the end of the period 11 Note 9 Other general administrative
expenses
30 Business areas
Swedish Banking 12 Note 10 Credit impairment 31
Baltic Banking 13 Note 11 Bank taxes and resolution fees 34
Corporates and Institutions 14 Note 12 Loans 35
Premium and Private Banking 15 Note 13 Credit impairment provisions 37
Group Functions and Other 16 Note 14 Credit risk exposures 39
Financial statements - Group Note 15 Intangible assets 40
Income statement, condensed 17 Note 16 Amounts owed to credit
institutions
40 Statement of comprehensive income,
condensed
18
Note 17 Deposits and borrowings from the
public
40 Balance sheet, condensed 19
Statement of changes in equity, condensed 20 Note 18 Debt securities in issue, senior
non-preferred liabilities and subordinated
liabilities
41
Cash flow statement, condensed 21
Note 19 Derivatives 41
Note 20 Valuation categories for financial
instruments
42
Note 21 Financial instruments recognised
at fair value
44
Note 22 Assets pledged, contingent
liabilities and commitments
45
Note 23 Offsetting financial assets and
liabilities
46
Note 24 Capital adequacy, consolidated
situation
47
Note 25 Internal capital requirement 49
Note 26 Risks and uncertainties 49
Note 27 Related-party transactions 50
Note 28 Swedbank’s share 51
Financial statements – Swedbank AB 52
Alternative performance measures 57
Signatures of the Board of Directors and
the President
59
Review report 60
Publication of financial information 61
More detailed information be found in
Swedbank’s Fact book,
www.swedbank.com/factbook
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Swedbank – Report for the Second quarter│ 2024│5
Financial overview
Income statement Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 % 2023 % 2024 2023 %
Net interest income 12 165 12 599 -3 12 768 -5 24 764 24 704 0
Net commission income 4 169 3 976 5 3 811 9 8 145 7 472 9
Net gains and losses on financial items 911 682 34 524 74 1 593 1 441 11
Other income¹ 991 831 19 1 069 -7 1 822 1 944 -6
Total income 18 237 18 087 1 18 173 0 36 324 35 560 2
Staff costs 3 784 3 700 2 3 417 11 7 484 6 883 9
Other expenses 2 681 2 485 8 2 303 16 5 166 4 358 19
Administrative fines 0 0 -3 0 887
Total expenses 6 465 6 185 5 5 717 13 12 650 12 127 4
Profit before impairments, bank taxes and resolution
fees 11 772 11 902 -1 12 456 -5 23 674 23 433 1
Impairment of tangible and intangible assets 32 0 11 32 11
Credit impairment -289 144 188 -145 965
Bank taxes and resolution fees 1 045 1 104 -5 844 24 2 149 1 362 58
Profit before tax 10 983 10 654 3 11 414 -4 21 637 21 095 3
Tax expense 2 388 2 226 7 2 291 4 4 614 4 412 5
Profit for the period 8 595 8 428 2 9 123 -6 17 023 16 683 2
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.
Q2 Q1 Q2 Jan-Jun Jan-Jun
Key ratios and data per share 2024 2024 2023 2024 2023
Return on equity, % 17.5 16.9 20.4 17.1 18.6
Earnings per share before dilution, SEK² 7.64 7.49 8.11 15.13 14.84
Earnings per share after dilution, SEK² 7.61 7.47 8.09 15.08 14.80
C/I ratio 0.35 0.34 0.31 0.35 0.34
Equity per share, SEK¹ 177.4 170.7 164.1 177.4 164.1
Loans to customers/deposit from customers ratio, % 140 141 139 140 139
Common Equity Tier 1 capital ratio, % 20.1 19.3 18.6 20.1 18.6
Tier 1 capital ratio, % 22.7 21.9 20.4 22.7 20.4
Total capital ratio, % 25.0 24.3 23.7 25.0 23.7
Credit impairment ratio, % -0.06 0.03 0.04 -0.01 0.10
Share of Stage 3 loans, gross, % 0.53 0.52 0.34 0.53 0.34
Total credit impairment provision ratio, % 0.36 0.40 0.38 0.36 0.38
Liquidity coverage ratio (LCR), %² 175 180 165 175 165
Net stable funding ratio (NSFR), % 124 126 123 124 123
1) The number of shares and calculation of earnings per share are specified in Note 28.
2) The liquidity coverage ratio has been re-calculdated and figures prior to 2024 have been adjusted.
Balance sheet data 30 Jun 31 Dec 30 Jun
SEKbn 2024 2023 % 2023 %
Loans to customers 1 799 1 782 1 1 803 0
Deposits from customers 1 282 1 230 4 1 298 -1
Equity attributable to shareholders of the parent
200 199 0 185 8
Total assets 3 068 2 856 7 3 050 1
Risk exposure amount 848 847 0 819 4
Definitions of all key ratios can be found in Swedbank’s Fact book on page 77.
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Swedbank – Report for the Second quarter│ 2024│6
Important to note
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 second quarter 2024 compared to first quarter
2024
Swedbank’s profit increased to SEK 8 595m (8 428).
Income increased, as did expenses and the tax expense,
while credit impairments decreased. Foreign exchange
effects positively impacted profit by SEK 98m before
impairments, bank taxes and resolution fees.
The return on equity was 17.5 per cent (16.9) and the
cost/income ratio was 0.35 (0.34).
Income increased to SEK 18 237m (18 087) due to
higher net gains and losses on financial items, net
commission income and other income. Net interest
income decreased. Foreign exchange effects positively
impacted income by SEK 149m.
Net interest income decreased by 3 per cent to
SEK 12 165m (12 599). The decrease was mainly
related to increased expenses for market funding.
Lower deposit margins also contributed due to a
combination of a continued higher share of deposit
volume at higher interest rates, as well as lower market
interest rates. Net interest income on lending increased
slightly.
Net commission income increased by 5 per cent to
SEK 4 169m (3 976). Income from asset management
increased, mainly due to a market upturn. Income from
the card business was seasonally higher and
commissions from service concepts rose.
Net gains and losses on financial items increased by
34 per cent to SEK 911m (8682). The largest part of the
change was related to higher income from FX trading
within Corporates and Institutions as well as positive
valuation effects on interest rate derivatives within
Group Treasury.
Other income increased by 19 per cent to SEK 991m
(831). The increase was mainly related to the
cooperation with savings banks, net insurance and the
result from partly owned companies.
Expenses increased by 5 per cent to SEK 6 465m
(6 185) due to higher staff costs, IT expenses and
marketing expenses. Staff costs increased mainly due
to the annual salary review in the Baltic countries, but
also because there were more employees on average
during the quarter. IT development and maintenance
contributed to higher expenses. Marketing expenses
were mainly driven by a donation to one of the
educational foundations Swedbank has established in
Latvia. Foreign exchange effects increased expenses by
SEK 50m.
Credit impairments were net positive and comprised
recoveries of SEK -289m (144). Updated
macroeconomic scenarios of SEK -253m (25) as well as
decreased post model adjustments of SEK -43m (-349)
contributed positively. A positive profit effect of SEK -
137 from the sale of loans also contributed. This was
partly offset by rating and stage migrations of
SEK 282m (403) and individually assessed loans of
SEK 207m (302).
Bank taxes and resolution fees amounted to
SEK 1 045m (1 104).
The tax expense amounted to SEK 2 388m (2 226) and
corresponded to an effective tax rate of 21.7 per cent
(20.9). The higher effective tax rate in the second
quarter was mainly due to non-deductible decreases in
the market value of equities.
Result January-June 2024 compared to January-June
2023
Swedbank’s profit increased to SEK 17 023m (16 683)
due to higher income and lower credit impairments,
partly offset by higher expenses. Expenses increased
mainly due to increased staff costs and IT expenses.
Bank taxes in the Baltic countries negatively impacted
profit. Foreign exchange effects positively impacted
profit by SEK 19m before impairments, bank taxes and
resolution fees.
The return on equity was 17.1 per cent (18.6) and the
cost income ratio was 0.35 (0.34).
Jan-Jun Jan-Jun Jan-Jun
Income statement, SEKm 2024 2023¹ 2023
Total income 36 324 35 560 35 560
Total expenses 12 650 11 240 12 127
of which administrative fines 0 887
Profit before tax 21 637 21 982 21 095
Profit for the period 17 023 17 570 16 683
Return on equity, % 17.1 19.6 18.6
C/I ratio 0.35 0.32 0.34
1) Income statement excluding expenses for the
administrative fines.
Income increased to SEK 36 324m (35 560) mainly due
to higher net commission income. Net gains and losses
on financial items also contributed, while net interest
income was stable. Other income decreased. Foreign
exchange effects positively impacted profit by SEK 31m.
Net interest income amounted to SEK 24 764m
(24 704). Net interest income was positively impacted
mainly by higher deposit margins resulting from higher
market rates, partly offset by higher funding costs.
Higher business volumes also had a positive impact.
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Swedbank – Report for the Second quarter│ 2024│7
Net commission income increased by 9 per cent to
SEK 8 145m (7 472). The increase was primarily related
to asset management, which benefitted from the upturn
in market values.
Net gains and losses on financial items increased by
11 per cent to SEK 1 593m (1 441), driven by equity and
fixed income trading, valuation effects from derivatives
and increased earnings from financing activity within
Corporates and Institutions. The result was partly offset
by negative valuation effects within Group Treasury.
Other income fell by 6 per cent to SEK 1 822m (1 944).
The decrease mainly related to valuation effects within
the insurance business and a lower result from partly
owned companies.
Expenses increased by 4 per cent to SEK 12 650m
(12 127). The increase was mainly driven by higher staff
costs related to higher salaries and more employees, as
well as higher IT expenses. The increase compared to
the same period in 2023 was lower due to the Swedish
FSA’s administrative fine and the settlement with OFAC
in the first quarter of 2023.
Credit impairments were net positive at SEK -145m
(965). Improved macroeconomic scenarios and
decreased post model adjustments were partly offset by
negative rating and stage migrations as well as
increased provisions for individually assessed loans.
Positive profit effects of SEK -137m from the sale of
loans contributed.
Bank taxes and resolution fees amounted to
SEK 2 149m (1 362). The increase was mainly due to the
fact that Lithuania and Latvia introduced temporary
bank taxes.
The income tax expense amounted to SEK 4 614m
(4 412), corresponding to an effective tax rate of
21.3 per cent (20.9). The higher effective tax rate in
2024 is mainly due to a higher tax expense both in
Estonia as a result of a higher corporate tax rate, and in
Sweden due to an increase in non-deductible interest
expenses for subordinated loans.
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 8bn to
SEK 1 799bn (1 791) during the quarter. Compared to
the same quarter in 2023, lending decreased by
SEK 4bn. Foreign exchange effects negatively impacted
lending volumes by SEK 5bn compared to the first
quarter of 2024, and negatively by SEK 12bn compared
to the same quarter in 2023.
30 Jun 31 Mar 30 Jun
Loans to customers, SEKbn 2024 2024 2023
Loans, private mortgage 1 041 1 040 1 036
of which Sweden 916 914 911
of which Baltic countries 125 126 125
Loans, private other incl tenant-
owner associations 144 143 145
of which Sweden 118 118 121
of which Baltic countries 26 25 24
Loans, corporate 614 607 621
of which Sweden 427 425 448
of which Baltic countries 117 115 106
of which other¹ 71 67 67
Total 1 799 1 791 1 803
1) Other consist of loans in Norway, Finland, China, the USA and
Denmark.
In Sweden, lending to customers increased by SEK 4bn
to SEK 1 461bn (1 457). Compared to the same quarter
in 2023, lending decreased by SEK 19bn.
Lending to mortgage customers in Sweden increased by
SEK 2bn during the quarter to SEK 916bn (914).
Compared to the same quarter in 2023, lending to
mortgage customers increased by SEK 5bn. The market
share for mortgages in Sweden was 22 per cent as of
31 May.
Other private lending in Sweden, including to tenant-
owner associations, was unchanged at SEK 118bn (118)
during the quarter.
Corporate lending in Sweden increased by SEK 2bn
during the quarter and amounted to SEK 427bn (425).
Compared to the same quarter in 2023, corporate
lending decreased by SEK 21bn. In Sweden, the market
share was 15 per cent as of 31 May.
In the Baltic countries, lending volume increased by
2 per cent in local currency during the quarter. Lending
to mortgage customers increased by 1 per cent, while
lending to corporate customers increased by 3 per cent
in local currency.
Volumes in the sustainable asset registry increased by
SEK 7bn to SEK 90bn (83) during the quarter. The
increase was primarily related to financing of green
buildings. At the end of the quarter, the registry
contained SEK 83bn 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 16bn to SEK 1 282bn
(1 266) compared to the previous quarter. Foreign
exchange effects negatively impacted total deposit
volume by SEK 6bn compared to the previous quarter
and negatively by SEK 2bn compared to the same
quarter in 2023.
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Swedbank – Report for the Second quarter│ 2024│8
30 Jun 31 Mar 30 Jun
Deposits from customers,
SEKbn 2024 2024 2023
Deposits, private 728 712 718
of which Sweden 484 472 483
of which Baltic countries 244 240 235
Deposits, corporate 554 554 579
of which Sweden 391 394 425
of which Baltic countries 159 157 152
of which other¹ 2 1 5
Total 1 282 1 266 1 298
1) Other consist of deposits in Norway, Finland, China, the USA and
Denmark.
Deposits in Sweden increased by SEK 9bn to SEK 875bn
(866). Deposits from private customers in Sweden
increased by SEK 12bn to SEK 484bn (472), while
corporate deposits decreased by SEK 3bn to SEK 391bn
(394). Compared to the same quarter in 2023, deposits
in Sweden decreased by SEK 33bn.
In the Baltic countries, deposits in local currency
increased by 3 per cent in the quarter. Deposits from
both private and corporate customers increased by
3 per cent. Compared to the same quarter in 2023,
deposits increased by 3 per cent in local currency.
As of 31 May, Swedbank’s market share for deposits
from private customers in Sweden was 18 per cent. The
market share for corporate deposits as of 31 May was
14 per cent. For more information on deposits, see page
38 of the Fact book.
Assets under management
Fund assets under management increased by 4 per cent
in the second quarter to SEK 1 874bn (1 809). The
increase was predominantly due to the market upturn,
but net inflows also contributed.
Asset management 30 Jun 31 Mar 30 Jun
(including life insurance) SEKbn 2024 2024 2023
Sweden 1 754 1 692 1 477
Estonia 31 30 27
Latvia 44 43 37
Lithuania 43 41 35
Other countries 3 3 2
Total Mutual funds under
Management 1 874 1 809 1 578
Closed End Funds 1 1 1
Discretionary asset management 462 451 406
Total assets under Management 2 336 2 261 1 984
The net inflow in the Swedish fund market amounted to
SEK 80bn (23).
The net inflow to Swedbank Robur’s funds in Sweden
was at the same level, SEK 10bn (10), as the previous
quarter. Distributions from both Swedbank and the
savings banks, as well as third-party distributions,
contributed positive net inflows. In Estonia, Latvia and
Lithuania, the net inflow amounted to SEK 2bn (2).
By assets under management, Swedbank Robur is the
leader in the Swedish and Baltic fund markets. As of
30 June, the market share in Sweden was 22 per cent. In
Estonia, Latvia and Lithuania, the market share was 39,
40 and 38 per cent, respectively.
Life insurance assets under management in the
Swedish operations increased by 4 per cent during the
second quarter and amounted as of 30 June to
SEK 392bn (377). Premium income, consisting of
premium payments and capital transfers, amounted to
SEK 10bn in the second quarter (10).
Assets under management, life 30 Jun 31 Mar 30 Jun
insurance SEKbn 2024 2024 2023
Sweden 392 377 327
of which collective occupational
pensions 226 216 182
of which endowment insurance 105 102 93
of which occupational pensions 49 47 41
of which other 12 12 11
Baltic countries 10 10 9
Total assets under management 402 387 337
For premium income to all types of assets under
management, excluding capital transfers, Swedbank’s
market share in the first quarter (latest available
information) was 7 per cent (6 per cent in the fourth
quarter of 2023). In the transfer market, Swedbank’s
market share in the first quarter was 10 per cent (9).
Payments
The total number of card transactions acquired by
Swedbank during the quarter was 987 million, 4 per cent
higher than the same period in 2023. The total number
of transactions acquired in Sweden, Norway, Finland
and Denmark increased by 26 million, or 3 per cent,
while total transactions increased by 7 per cent in the
Baltic countries.
Acquired transaction volumes increased in Sweden,
Norway, Finland and Denmark by 2 per cent to
SEK 235bn and in the Baltic countries by 5 per cent to
SEK 38bn compared to the same quarter in 2023. The
higher transaction volume comes from a combination of
sales growth in consumer staples, a decrease in hotel
and restaurant sales, and lower volumes from fuels due
to lower prices.
The total number of Swedbank cards in issue at the end
of the quarter was 8.5 million, which is slightly higher
than the end of the previous quarter.
30 Jun 31 Mar 30 Jun
Number of cards 2024 2024 2023
Issued cards, millon 8.5 8.4 8.4
of which Sweden 4.5 4.5 4.5
of which Baltic countries 4.0 3.9 3.9
The number of purchases in Sweden with Swedbank
cards increased by 1 per cent during the quarter
compared to the same quarter in 2023. A total of 389
million card purchases were made. In the Baltic
countries, the number of card purchases increased by
7 per cent in the same period to 263 million during the
quarter.
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Swedbank – Report for the Second quarter│ 2024│9
In Sweden, a total of 225 million domestic payments
were made during the quarter, in line with the same
period in 2023. Swedbank’s market share of payments
executed via Bankgirot was 34 per cent. In the Baltic
countries, 132 million domestic payments were
processed, an increase of 12 per cent compared to the
same period in 2023.
The number of international payments in Sweden
increased by 8 per cent compared to the same quarter
in 2023 and amounted to 1.9 million. In the Baltic
countries, international payments increased by 18 per
cent to 8 million.
Credit and asset quality
The credit quality of Swedbank’s lending was solid,
while improved macroeconomic scenarios as well as
the effect from the sale of loans contributed to credit
recoveries. Total credit impairment provisions
amounted to SEK 7 731m (8 463), of which SEK 946m
(996) was post model adjustments.
In the Swedish mortgage business, loans with late
payments and forborne loans increased more slowly
than the previous quarter.
The total share of loans in stage 2, gross, amounted to
9.2 per cent (10.2). For personal loans, the
corresponding share was 6.8 per cent (7.4) and for
corporate loans it was 14.5 per cent (16.3).
The share of loans in stage 3, gross, was 0.53 per cent
(0.52).
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
With Swedish inflation approaching the Riksbank’s
target, the Riksbank cut the policy rate by 0.25
percentage points in May. This contributed to lower
interest rates in Sweden during the quarter. As inflation
remained high, primarily in the U.S., international rates
fell at a slightly slower pace. The willingness to invest
was high, which meant that credit spreads continued to
decrease.
Swedbank was active in the funding markets. During the
quarter, issuance primarily consisted of covered bonds
in SEK, but also a green senior non-preferred bond in
EUR. In total, Swedbank issued SEK 41bn in long-term
debt instruments during the quarter. As of 30 June,
Swedbank’s outstanding short-term funding in issue
amounted to SEK 323bn (349). 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.
30 Jun 31 mar 30 jun
Liquid assets and ratios 2024 2024 2023
Cash and balances with central
banks and the National Debt Office,
SEKbn 322 347 352
Liquidity reserve, SEKbn 656 665 672
Liquidity coverage ratio (LCR), %¹² 175 180 165
Net stable funding ratio (NSFR), % 124 126 123
1) USD 252 %; EUR 242 %; SEK 109 %
2) The liquidity coverage ratio has been re-calculdated and figures prior
to 2024 have been adjusted.
Ratings
During the quarter, Moody’s changed its outlook on
Swedbank’s long-term debt ratings to positive based on
an assessment that the work the bank has done to
alleviate previous shortcomings has led to lower risks
relating to money laundering. No other changes were
made 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 P S S
1) P=positive, S=stable, N=negative, RuR= Rating(s) under Review
and WN= Watch Negative
Operational risks
Swedbank works continuously to ensure a high level of
availability and security for customers. Swedbank
periodically tests the resilience to cyberthreats. Given
the geopolitical situation, information security and
cybersecurity remained high priorities. Some payment-
related incidents occurred during the quarter, which
caused brief disruptions.
The bank is closely collaborating with other members of
the Swedish Bankers’ Association with the goal of
drawing up industry-wide guidelines for protecting
customers against fraud. Swedbank invests in and
continuously improves technology and implements
controls in its digital channels to fight financial crime
and protect the bank’s customers.
Capital and capital adequacy
Capital ratio and capital requirement
The Common Equity Tier 1 (CET1) capital ratio was
20.1 per cent (19.3) 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 5.0 per
cent (4.2). CET1 capital increased to SEK 171bn (166)
and was mainly affected by the quarterly profit net of
anticipated dividend.
===== SIDA 10 =====
Swedbank – Report for the Second quarter│ 2024│10
Change in Common Equity Tier 1 capital
(Refers to Swedbank consolidated situation)
Risk Exposure Amount (REA)
REA decreased to SEK 848bn (859) in the second
quarter.
During the quarter, a change was made to the
probability of default (PD) assignment process and
classification of exposures, which led to a decrease in
REA for credit risk of SEK 10bn, mainly attributable to
the migration of tenant-owner associations from
households to corporates, thereby reducing exposures
covered by the mortgage floor. This was partly offset by
an increase in REA for credit risk mainly due to
increased volumes.
Furthermore, REA for credit risks increased by SEK 6bn
due to the completion of the implementation of the new
PD model for exposures to large corporates. This was
offset by a decrease in REA for Article 3 according to
the EU’s regulation on prudential requirements for credit
institutions (CRR) of SEK 10bn, of which SEK 8bn that
have been held for implementation of the new PD model
in connection with the completion of the migrations.
REA for market risk decreased by SEK 1bn, mainly
through a decrease in REA for internal models.
Change in REA
(Refers to Swedbank consolidated situation)
The leverage ratio was 6.7 per cent (6.4) and therefore
exceeds the leverage ratio requirement including
Pillar 2 guidance of 3.5 per cent.
Capital and resolution regulations
The Swedish FSA has announced that it intends to
extend the risk weight floors for mortgages and
commercial real estate through 2027. The FSA
anticipates a continued need for macroprudential
measures in the form of risk weight floors until the
regulatory capital floor for internal models under the
EU’s revised Capital Requirements Regulation (CRR 3)
(implementation of Basel III) has an equivalent effect.
Due to the guidelines from the European Banking
Authority (EBA), as well as adaptations to CRR 3,
Swedbank is applying for approval of new internal
models for risk classification. The review process is
expected to continue with the gradual implementation
through 2026 and is conditional on the authorities’
decisions.
Swedbank previously decided on an Article 3 add-on
corresponding to the bank’s estimate of the remaining
impact on REA of the remaining risk classification
models. This add-on has been reduced to SEK 17bn due
to the phase-in that has occurred. 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 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.
The revised Capital Requirements Regulation CRR 3
takes effect in 2025 with a phase-in period through
2032. The revisions include changes to the
standardised approaches and internal models used to
calculate capital requirements for credit, market and
operational risk, as well as a output floor for internal
models. The regulation is expected only to result in a
limited increase in the REA.
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.
Other events
On 25 April, it was announced that Anti-Financial Crime
(AFC) will be integrated into Group Products and Advice
(GPA). The change is being made to further strengthen
Swedbank’s ability to fight financial crime in a more
effective way. Meanwhile, the unit is changing its name
to Economic Crime Prevention (ECP).
On 20 June, the Swedish FSA ordered Handelsbanken,
SEB and Swedbank to address shortcomings in the
payment infrastructure. Together with the other banks
===== SIDA 11 =====
Swedbank – Report for the Second quarter│ 2024│11
that own Bankgirot, a process is underway to address
these shortcomings.
Swedbank has invested EUR 4m in the agricultural
technology company eAgronom and will become a
minority owner. Together with eAgronom, Swedbank
offers financing solutions in the Baltic countries for
investments in sustainable agriculture.
Events after the end of the period
No significant events have taken place after the end of
the period.
===== SIDA 12 =====
Swedbank – Report for the Second quarter│ 2024│12
Swedish Banking
Income statement
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 % 2023¹ % 2024 2023¹ %
Net interest income 4 366 4 650 -6 5 248 -17 9 016 10 438 -14
Net commission income² 1 917 1 803 6 1 799 7 3 721 3 514 6
Net gains and losses on financial items 70 63 10 47 49 133 105 26
Other income³ 409 243 68 437 -6 652 748 -13
Total income 6 762 6 760 0 7 532 -10 13 522 14 805 -9
Staff costs 485 513 -6 466 4 998 939 6
Variable staff costs 14 16 -11 7 30 17 78
Other expenses 1 665 1 647 1 1 641 1 3 311 3 073 8
Depreciation/amortisation of tangible and intangible
assets 4 4 -1 5 -21 8 10 -25
Total expenses 2 167 2 179 -1 2 119 2 4 347 4 039 8
Profit before impairments, bank taxes and resolution
fees 4 595 4 580 0 5 413 -15 9 175 10 765 -15
Credit impairment -154 83 76 -70 381
Bank taxes and resolution fees 215 212 1 207 4 427 438 -2
Profit before tax 4 533 4 285 6 5 130 -12 8 818 9 947 -11
Tax expense 854 819 4 962 -11 1 673 1 888 -11
Profit for the period 3 680 3 465 6 4 168 -12 7 145 8 059 -11
Return on allocated equity, % 27.5 25.7 31.7 26.7 30.7
Loan/deposit ratio, % 185 191 188 185 188
Credit impairment ratio, % -0.07 0.04 0.03 -0.02 0.09
Cost/income ratio 0.32 0.32 0.28 0.32 0.27
Loans to customers, SEKbn 850 853 0 870 -2 850 870 -2
Deposits from customers, SEKbn 460 446 3 464 -1 460 464 -1
Full-time employees 2 559 2 633 -3 2 417 6 2 559 2 417 6
1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more information, see Note 4.
2) Comparative figures related to Net commission income have been restated during Q2 2024 for the Swedish business areas.
3) 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.
Business development
In Sweden, demand for loan commitments increased,
but in terms of actual mortgage volumes the market
remained cautious. Monthly savings to funds and
savings accounts grew.
Customer availability increased thanks to the
implementation of the cloud-based communication
platform. The customer experience was also enhanced
through new digital features for personal insurance.
Customers can now make changes digitally when
scheduling payment of their pension insurance in the
portal Mina Försäkringar (“My Insurance”).
Fraud protection was expanded with features that allow
customers to choose their personal limits on transfers
and foreign payments.
Swedbank launched a campaign called “Now we are
helping the country’s 18-year-olds keep better track of
their money. One problem less.” In connection with the
campaign, 18-year-olds have been invited to the bank’s
branches to receive tools to improve their financial
health.
Profit increased during the quarter mainly driven by
lower credit impairments.
Net interest income decreased, mainly through lower
earnings on deposits.
Mortgage volume in Swedish Banking decreased by
SEK 1bn and corporate deposits by SEK 2bn, partly due
to customer transfers to other units.
Deposit volumes increased by SEK 13bn, with
household deposits increasing by SEK 11bn and
corporate deposits by SEK 2bn.
Net commission income increased, mainly driven by
higher income from cards and asset management.
Other income increased, mainly due to increased profits
from Bankgirot and Entercard.
Expenses decreased mainly driven by lower staff costs.
Credit impairments were net positive and amounted to
SEK -154m (83). Positive effects from updated
macroeconomic scenarios and from the sale loans were
partly offset by negative rating and stage migrations.
===== SIDA 13 =====
Swedbank – Report for the Second quarter│ 2024│13
Baltic Banking
Income statement
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 % 2023¹ % 2024 2023¹ %
Net interest income 4 541 4 604 -1 4 629 -2 9 145 8 569 7
Net commission income 876 806 9 856 2 1 682 1 672 1
Net gains and losses on financial items 136 135 0 140 -3 271 273 -1
Other income² 156 184 -15 231 -33 339 438 -23
Total income 5 709 5 729 -0 5 855 -3 11 438 10 952 4
Staff costs 530 473 12 478 11 1 003 954 5
Variable staff costs 37 25 49 30 26 62 48 29
Other expenses 1 077 906 19 817 32 1 983 1 550 28
Depreciation/amortisation of tangible and intangible
assets 44 43 2 46 -6 87 92 -5
Total expenses 1 688 1 448 17 1 371 23 3 136 2 644 19
Profit before impairments, bank taxes and resolution
fees 4 021 4 281 -6 4 485 -10 8 302 8 308 -0
Impairment of tangible and intangible assets -0 0 0 0 0 -56
Credit impairment -15 6 -26 -43 -9 -55 -83
Bank taxes and resolution fees 557 621 -10 349 60 1 179 373
Profit before tax 3 478 3 654 -5 4 161 -16 7 132 7 990 -11
Tax expense 713 737 -3 771 -8 1 450 1 463 -1
Profit for the period 2 765 2 917 -5 3 390 -18 5 682 6 526 -13
Return on allocated equity, % 30.6 33.1 42.2 32.2 41.1
Loan/deposit ratio, % 66 67 66 66 66
Credit impairment ratio, % -0.02 0.01 -0.04 -0.01 -0.05
Cost/income ratio 0.30 0.25 0.23 0.27 0.24
Loans to customers, SEKbn 268 266 0 255 5 268 255 5
Deposits from customers, SEKbn 403 398 1 387 4 403 387 4
Full-time employees 4 766 4 790 0 4 706 1 4 766 4 706 1
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
A resilient labour market, increased purchasing power
and a rate cut by the ECB improved consumer
confidence in the Baltic countries. Purchasing power for
home purchases rose.
Swedbank has strengthened its position in the
Lithuanian corporate lending market due to proactivity
and strong advisory expertise. The bank arranged loans
as part of the European Investment Fund’s guarantee
programme, which aims to make loans available to
SMEs. Swedbank’s campaign for sustainable mortgages
continued in all three countries.
In Lithuania, debit cards now can be activated during the
initial transaction or via Swedbank’s ATMs. It is also
possible by phone or other smart device to make ATM
transactions digitally, which increases convenience.
The educational foundation established by Swedbank in
Latvia commenced its operations and the bank made an
initial contribution of EUR 6m during the quarter. The
foundation’s mission is to support initiatives that
contribute to society’s growth and development.
Profit decreased by 8 per cent in local currency (EUR)
due to lower income and higher expenses. Net interest
income decreased by 4 per cent (EUR) due to falling
market interest rates and rising deposit volumes in
savings accounts.
Lending increased by 2 per cent (EUR). Both consumer
and corporate lending increased. Deposits increased by
3 per cent (EUR). Both consumer and corporate
deposits increased.
Net commission income increased by 6 per cent (EUR)
due to seasonally higher card usage.
Expenses increased by 14 per cent (EUR) mainly due to
the annual salary review and the donation to the
educational foundation in Latvia.
Credit impairments were net positive and amounted to
SEK -15m (6). Improved macroeconomic scenarios
were offset by negative rating and stage migrations.
===== SIDA 14 =====
Swedbank – Report for the Second quarter│ 2024│14
Corporates and Institutions
Income statement
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 % 2023¹ % 2024 2023¹ %
Net interest income 3 244 3 375 -4 3 376 -4 6 619 6 566 1
Net commission income² 994 992 0 940 6 1 986 1 786 11
Net gains and losses on financial items 522 465 12 397 31 987 831 19
Other income³ 30 30 0 42 -29 61 82 -26
Total income 4 790 4 863 -1 4 755 1 9 653 9 265 4
Staff costs 572 558 2 521 10 1 130 1 061 7
Variable staff costs 29 36 -19 14 66 57 16
Other expenses 1 015 977 4 906 12 1 992 1 866 7
Depreciation/amortisation of tangible and intangible
assets 6 5 4 6 -13 11 12 -10
Total expenses 1 622 1 577 3 1 447 12 3 199 2 995 7
Profit before impairments, bank taxes and resolution
fees 3 168 3 286 -4 3 308 -4 6 454 6 270 3
Credit impairment -84 54 142 -31 622
Bank taxes and resolution fees 242 239 1 253 -4 481 480 0
Profit before tax 3 011 2 994 1 2 913 3 6 005 5 169 16
Tax expense 585 628 -7 593 -1 1 214 1 048 16
Profit for the period 2 426 2 365 3 2 321 5 4 791 4 121 16
Return on allocated equity, % 21.4 19.4 18.7 20.2 16.6
Loan/deposit ratio, % 164 160 151 164 151
Credit impairment ratio, % -0.05 0.03 0.09 -0.01 0.19
Cost/income ratio 0.34 0.32 0.30 0.33 0.32
Loans to customers, SEKbn 551 543 1 556 -1 551 556 -1
Deposits from customers, SEKbn 336 339 -1 368 -9 336 368 -9
Full-time employees 1 803 1 786 1 1 686 7 1 803 1 686 7
1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more information, see Note 4.
2) Comparative figures related to Net commission income have been restated during Q2 2024 for the Swedish business areas.
3) 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
Business activity generally increased in the market and
among our clients, partly driven by a belief in falling
interest rates.
The bond market remained strong during the quarter
with investors willing to take on risk, where Swedbank
advised on a number of issues. Activity and volatility in
the bond market created an increased need among
corporates to manage interest rate risk. FX trading
increased mainly due to several large transactions.
During the quarter, Swedbank continued to improve its
Nordic offering by entering a strategic partnership with
the Finnish bank Aktia. Together with Aktia, the bank will
broaden the corporate offering in the Finnish market
and increase the range of services available to our
clients.
Lending volume increased, mainly driven by the real
estate sector and large clients. Lending to mid-sized
corporates rose slightly, while it was stable to smaller
companies.
Deposit volume decreased due to lower short-term
deposits from funds in foreign currency and lower
volumes from corporates.
Net interest income decreased during the quarter mainly
due to lower deposit margins. The decrease was partly
offset by higher lending volumes and margins.
Net commission income was stable. Income from
equity-related transactions contributed positively.
Net gains and losses on financial items increased
mainly due to higher earnings from FX trading.
Corporate bond trading contributed positively.
Expenses increased due to more employees, salary
increases in foreign branches, and higher consulting
and IT related expenses.
Credit impairments were net positive and amounted to
SEK -84m (54). Positive effects from updated
macroeconomic scenarios and changes in exposures
were partly offset by negative rating and stage
migrations as well as increased provisions for
individually assessed loans.
===== SIDA 15 =====
Swedbank – Report for the Second quarter│ 2024│15
Premium and Private Banking
Income statement
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 % 2023¹ % 2024 2023¹ %
Net interest income 439 469 -6 540 -19 908 1 082 -16
Net commission income² 446 408 9 348 28 854 684 25
Net gains and losses on financial items 7 8 -11 7 1 15 14 5
Other income³ 3 7 -53 16 -79 11 22 -52
Total income 896 892 0 911 -2 1 788 1 803 -1
Staff costs 150 143 5 117 28 293 232 26
Variable staff costs 4 4 13 2 8 5 67
Other expenses 178 159 12 145 23 336 287 17
Total expenses 331 305 9 263 26 637 524 21
Profit before impairments, bank taxes and resolution
fees 564 587 -4 648 -13 1 151 1 279 -10
Credit impairment -27 -4 -2 -31 9
Bank taxes and resolution fees 32 31 1 28 12 63 60 5
Profit before tax 560 559 0 621 -10 1 119 1 210 -7
Tax expense 97 104 -7 127 -23 202 248 -19
Profit for the period 462 455 2 494 -6 918 961 -5
Return on allocated equity, % 30.8 28.8 31.6 29.6 30.8
Loan/deposit ratio, % 168 168 161 168 161
Credit impairment ratio, % -0.09 -0.01 -0.01 -0.05 0.02
Cost/income ratio 0.37 0.34 0.29 0.36 0.29
Loans to customers, SEKbn 130 128 2 121 7 130 121 7
Deposits from customers, SEKbn 78 76 3 75 4 78 75 4
Full-time employees 599 576 4 513 17 599 513 17
1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more information, see Note 4.
2) Comparative figures related to Net commission income have been restated during Q2 2024 for the Swedish business areas.
3) 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.
Business development
Through national expertise and a strong local presence,
Premium and Private Banking offers a full range of
products and services for customers in Sweden who
need convenient access and ongoing personalised
advice. The business area also offers asset
management for corporate customers and is
responsible for the bank’s pension distribution.
Demand for qualified advice remained high, and the
number of Premium and Private Banking customers
increased during the quarter. A strong stock market
performance contributed to continued high demand for
asset management services. With regard to mortgage
loans, demand for loan commitments increased, but in
terms of actual mortgage volumes the market remained
cautious.
Swedbank’s ongoing efforts to support customers in
making informed choices about their pension and
pension savings resulted in an increased inflow to
individual occupational pensions, among other things.
Profit was stable during the quarter. Slightly higher
income and lower credit impairments were offset by
higher expenses.
Net interest income decreased, mainly driven by lower
earnings from deposits.
Net commission income increased, mainly due to higher
income from asset management, where the market
upturn contributed positively.
Expenses increased due to more employees in the new
business area.
Household mortgage volume increased by SEK 3bn and
deposit volume increased by SEK 1bn, partly due to
customer transfers from Swedish Banking.
Credit impairments were net positive and amounted to
SEK -27m (-4). Improved macroeconomic scenarios
were partly offset by negative rating and stage
migrations.
===== SIDA 16 =====
Swedbank – Report for the Second quarter│ 2024│16
Group Functions and Other
Income statement
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 % 2023¹ % 2024 2023¹ %
Net interest income -448 -521 -14 -1 044 -57 -969 -1 986 -51
Net commission income -65 -35 87 -121 -47 -100 -173 -43
Net gains and losses on financial items 177 10 -66 188 217 -13
Other income² 1 011 949 7 807 25 1 960 1 568 25
Total income 675 404 67 -425 1 079 -375
Staff costs 1 882 1 836 2 1 727 9 3 718 3 456 8
Variable staff costs 86 100 -14 61 40 185 123 51
Other expenses -1 199 -1 177 2 -1 238 -3 -2 376 -2 468 -4
Depreciation/amortisation of tangible and intangible
assets 483 476 1 463 4 959 854 12
Administrative fines 0 -40 0 850
Total expenses 1 251 1 236 1 972 29 2 487 2 815 -12
Profit before impairments, bank taxes and resolution
fees -576 -832 -31 -1 397 -59 -1 408 -3 190 -56
Impairment of tangible and intangible assets 32 0 11 32 11
Credit impairment -9 6 -3 -3 8
Bank taxes and resolution fees 0 0 6 -100 0 11
Profit before tax -599 -838 -28 -1 412 -58 -1 437 -3 219 -55
Tax expense 139 -64 -162 75 -235
Profit for the period -738 -774 -5 -1 250 -41 -1 513 -2 984 -49
Full-time employees 7 811 7 725 1 7 543 4 7 811 7 543 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.
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 increased to SEK -738m (-774).
Income rose, as did expenses and the tax expense,
while credit impairments decreased slightly.
Net interest income increased, mainly due to falling
short-term interest rates, which meant a lower return on
deposits with the business areas.
Net gains and losses on financial items within Group
Treasury rose mainly related to positive changes in the
value of interest rate derivatives.
Expenses increased slightly. Staff costs rose, partly
offset by lower consulting expenses.
===== SIDA 17 =====
Swedbank – Report for the Second quarter│ 2024│17
Financial statements - Group
Income statement, condensed
Group Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Interest income 28 469 28 209 24 867 56 678 46 300
Interest expense -16 304 -15 609 -12 099 -31 914 -21 596
Net interest income (note 5) 12 165 12 599 12 768 24 764 24 704
Net commission income (note 6) 4 169 3 976 3 811 8 145 7 472
Net gains and losses on financial items (note 7) 911 682 524 1 593 1 441
Net insurance income (note 8) 291 267 384 558 666
Share of profit or loss of associates and joint ventures 189 128 250 316 421
Other income 511 436 435 947 857
Total income 18 237 18 087 18 173 36 324 35 560
Staff costs 3 784 3 700 3 417 7 484 6 883
Other general administrative expenses (note 9) 2 144 1 956 1 783 4 101 3 390
Depreciation/amortisation of tangible and intangible assets 536 528 520 1 065 968
Administrative fines 0 0 -3 0 887
Total expenses 6 465 6 185 5 717 12 650 12 127
Profit before impairments, bank taxes and resolution fees 11 772 11 902 12 456 23 674 23 433
Impairment of tangible and intangible assets 32 0 11 32 11
Credit impairment (note 10) -289 144 188 -145 965
Bank taxes and resolution fees (note 11) 1 045 1 104 844 2 149 1 362
Profit before tax 10 983 10 654 11 414 21 637 21 095
Tax expense 2 388 2 226 2 291 4 614 4 412
Profit for the period 8 595 8 428 9 123 17 023 16 683
Earnings per share, SEK 7.64 7.49 8.11 15.13 14.84
Earnings per share after dilution, SEK 7.61 7.47 8.09 15.08 14.80
===== SIDA 18 =====
Swedbank – Report for the Second quarter│ 2024│18
Statement of comprehensive income, condensed
Group Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Profit for the period reported via income statement 8 595 8 428 9 123 17 023 16 683
Items that will not be reclassified to the income statement
Remeasurements of defined benefit pension plans -805 969 1 062 164 1 310
Share related to associates and joint ventures
1 21 43 22 64
Total -804 990 1 105 186 1 374
Items that may be reclassified to the income statement
Exchange rate differences, foreign operations -1 055 2 505 2 659 1 450 3 569
Hedging of net investments in foreign operations 677 -1 627 -1 687 -950 -2 223
Cash flow hedges -3 3 6 0 4
Foreign currency basis risk -16 -11 1 -27 3
Share of other comprehensive income of
associates and joint ventures 1 12 19 13 -19
Total -396 882 998 486 1 334
Other comprehensive income for the period, net of tax -1 200 1 872 2 103 672 2 708
Total comprehensive income for the period 7 395 10 300 11 225 17 695 19 391
Total comprehensive income attributable to:
Shareholders of Swedbank AB 7 395 10 300 11 225 17 695 19 391
Non-controlling interests 0 0 1 0 0
For the period January – June 2024 a gain after tax of
SEK 164m (1 310) was recognised in other
comprehensive income, relating to remeasurements of
defined benefit pension plans. As per 30 June 2024 the
discount rate used to calculate the closing pension
obligation was 3.67 per cent, compared with 3.69 per
cent per 31 December 2023. The inflation assumption
was 1.63 per cent compared with 1.57 per cent per 31
December 2023. The fair value of plan assets increased
during 2024 by SEK 631m. In total, at 30 June 2024 the
fair value of plan assets exceeded the obligation for
funded defined benefit pension plans by SEK 2 470m,
therefore the funded plans are presented as an asset.
For January – June 2024 an exchange rate difference of
SEK 1 450m (3 569) 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 13m (-19)
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 gain of SEK 1 463m is not taxable.
Most of the Group's foreign net investments are hedged
against currency risk resulting in a loss after tax of
SEK -950m (-2 223) for the hedging instruments.
===== SIDA 19 =====
Swedbank – Report for the Second quarter│ 2024│19
Balance sheet, condensed
Group 30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023
Assets
Cash and balances with central banks 316 886 252 994 358 417
Treasury bills and other bills eligible for refinancing with central banks, etc. 210 505 178 619 270 034
Loans to credit institutions 46 523 67 534 60 527
Loans to the public 1 896 756 1 863 375 1 857 443
Value change of the hedged assets in portfolio hedges of interest rate risk -5 905 -8 489 -17 544
Bonds and other interest-bearing securities 96 759 58 841 58 627
Financial assets for which customers bear the investment risk 374 766 319 795 311 831
Shares and participating interests 45 322 34 316 32 638
Derivatives (note 19) 23 973 39 563 53 702
Intangible assets (note 15) 20 962 20 440 20 992
Other assets 41 363 28 531 43 768
Total assets 3 067 911 2 855 519 3 050 435
Liabilities and equity
Amounts owed to credit institutions (note 16) 92 587 72 054 132 893
Deposits and borrowings from the public (note 17) 1 289 206 1 234 262 1 303 267
Value change of the hedged liabilities in portfolio hedges of interest rate risk 160 209 0
Financial liabilities for which customers bear the investment risk 375 653 320 609 312 145
Debt securities in issue (note 18) 812 638 728 548 838 568
Short positions, securities 28 366 17 297 26 392
Derivatives (note 19) 32 557 73 453 49 098
Insurance provisions 28 189 26 315 26 535
Other liabilities 48 895 46 313 50 228
Senior non-preferred liabilities (note 18) 119 174 104 828 86 799
Subordinated liabilities (note 18) 40 843 32 841 39 855
Total liabilities 2 868 269 2 656 730 2 865 780
Equity 199 643 198 790 184 655
Total liabilities and equity 3 067 911 2 855 519 3 050 435
===== SIDA 20 =====
Swedbank – Report for the Second quarter│ 2024│20
Statement of changes in equity, condensed
===== SIDA 21 =====
Swedbank – Report for the Second quarter│ 2024│21
Cash flow statement, condensed
Group Jan-Jun Full year Jan-Jun
SEKm 2024 2023 2023
Operating activities
Profit before tax 21 637 43 622 21 095
Adjustments for non-cash items in operating activities -3 265 -1 952 44
Income taxes paid -4 819 -5 443 -3 295
Cash flow from operating activities before changes in operating assets and liabilities 13 553 36 227 17 844
Increase (-) / decrease (+) in assets -105 686 -59 104 -137 394
Increase (+) / decrease (-) in liabilities 154 401 -122 271 80 796
Cash flow from operating activities 62 268 -145 148 -38 754
Investing activities
Acquisitions of and contributions to associates and joint ventures -39 -53 -53
Dividend from associates and joint ventures 186 306 113
Acquisitions of other fixed assets and strategic financial assets -192 -852 -440
Disposals of/maturity of other fixed assets and strategic financial assets 49 181 104
Cash flow from investing activities 4 -418 -276
Financing activities
Amortisation of lease liabilities -504 -799 -403
Issuance of senior non-preferred liablities 12 156 46 580 28 361
Redemption of senior non-preferred liablities -1 977 -1 665 -713
Issuance of subordinated liabilities 6 811 9 339 9 339
Redemption of subordinated liabilities -797 -10 316 -3 144
Dividends paid -17 048 -10 964 -10 964
Cash flow from financing activities -1 359 32 175 22 476
Cash flow for the period 60 913 -113 391 -16 554
Cash and cash equivalents at the beginning of the period 252 994 365 992 365 992
Cash flow for the period 60 913 -113 391 -16 554
Exchange rate differences on cash and cash equivalents 2 979 393 8 979
Cash and cash equivalents at end of the period 316 886 252 994 358 417
2024
During the second quarter contributions were provided
to the associated company Svenska e-fakturabolaget
AB of SEK 16m.
During the second quarter, additional shares in the joint
venture P27 Nordic Payments Platform AB of SEK 23m.
Thereby, the ownership amounts to 20,83 percent.
2023
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 Second 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.
Issued accounting standards not yet
applied
Presentation and Disclosures in Financial Statements
(IFRS 18)
The International Accounting Standards Board (IASB)
has published IFRS 18 Presentation and Disclosures in
Financial Statements, which is not yet applied by
Swedbank.
IFRS 18 was issued in April 2024. The standard will be
effective from January 1, 2027, and has not yet been
adopted by the European Union. The new standard
replaces IAS 1 and introduces new requirements
primarily for the presentation of financial statements
and disclosures about certain performance measures.
Impact on the Group's financial statements is currently
being assessed.
Amendments to the Classification and Measurement of
Financial Instruments (IFRS 9 and IFRS 7)
The International Accounting Standards Board (IASB)
has published amendments to the Classification and
Measurement of Financial Instruments, IFRS 9 and
IFRS 7.
The amendments mainly provide guidance on how to
assess the contractual cash flows of a financial asset
that include contingent features and related disclosure
requirements.
The amendments were issued in May 2024 and will be
effective from January 1, 2026. They have not yet been
adopted by the European Union.
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 half year of 2024.
===== SIDA 23 =====
Swedbank – Report for the Second quarter│ 2024│23
Note 4 Operating segments (business areas)
Group
January-June 2024 Swedish Baltic Corporates and Premium and Functions
SEKm Banking Banking Institutions Private Banking and Other Eliminations Group
Income statement
Net interest income 9 016 9 145 6 619 908 -969 45 24 764
Net commission income 3 721 1 682 1 986 854 -100 1 8 145
Net gains and losses on financial items 133 271 987 15 188 0 1 593
Other income¹ 652 339 61 11 1 960 -1 202 1 822
Total income 13 522 11 438 9 653 1 788 1 079 -1 155 36 324
Staff costs 998 1 003 1 130 293 3 718 -9 7 133
Variable staff costs 30 62 66 8 185 0 351
Other expenses 3 311 1 983 1 992 336 -2 376 -1 147 4 101
Depreciation/amortisation of tangible and intangible
assets 8 87 11 0 959 -0 1 065
Total expenses 4 347 3 136 3 199 637 2 487 -1 155 12 650
Profit before impairments, bank taxes and resolution fees 9 175 8 302 6 454 1 151 -1 408 -0 23 674
Impairment of tangible and intangible assets 0 32 32
Credit impairment -70 -9 -31 -31 -3 -0 -145
Bank taxes and resolution fees 427 1 179 481 63 -0 2 149
Profit before tax 8 818 7 132 6 005 1 119 -1 437 0 21 637
Tax expense 1 673 1 450 1 214 202 75 4 614
Profit for the period 7 145 5 682 4 791 918 -1 513 0 17 023
Non-controlling interests 0 0
Net commission income
Commission income
Payment processing 226 319 475 5 222 -8 1 238
Cards 1 083 1 104 1 596 19 -333 3 468
Asset management and custody 3 302 323 1 191 816 -2 -176 5 456
Lending 47 110 445 2 -0 -4 600
Other commission income² 483 337 758 252 26 -8 1 847
Total 5 141 2 192 4 464 1 094 -87 -196 12 609
Commission expense 1 420 510 2 478 240 13 -197 4 464
Net commission income 3 721 1 682 1 986 854 -100 1 8 145
Balance sheet, SEKbn
Cash and balances with central banks 0 4 2 311 0 317
Loans to credit institutions 5 1 144 0 272 -375 47
Loans to the public 850 268 639 130 11 -1 1 897
Interest-bearing securities 2 114 199 -8 307
Financial assets for which customers bear the investment
risk 294 2 30 48 375
Investments in associates and joint ventures 6 2 8
Derivatives 0 96 79 -151 24
Tangible and intangible assets 2 13 -0 0 12 -0 26
Other assets 19 154 29 3 332 -471 67
Total assets 1 177 444 1 054 181 1 218 -1 006 3 068
Amounts owed to credit institutions 5 0 359 0 93 -365 93
Deposits and borrowings from the public 460 403 352 78 7 -10 1 289
Debt securities in issue -0 2 1 818 -8 813
Financial liabilities for which customers bear the
investment risk 295 2 30 49 376
Derivatives 0 103 80 -151 33
Other liabilities 365 163 49 0 -472 106
Senior non-preferred liabilities -0 119 0 119
Subordinated liabilities -0 41 41
Total liabilities 1 125 407 1 008 175 1 159 -1 006 2 868
Allocated equity 52 36 46 6 59 200
Total liabilities and equity 1 177 444 1 054 181 1 218 -1 006 3 068
Key figures
Return on allocated equity, % 26.7 32.2 20.2 29.6 -5.4 0.0 17.1
Cost/income ratio 0.32 0.27 0.33 0.36 2.30 0.00 0.35
Credit impairment ratio, % -0.02 -0.01 -0.01 -0.05 -0.01 0.00 -0.01
Loan/deposit ratio, % 185 66 164 168 15 140
Lending to the public, stage 3, SEKbn (gross) 4 1 4 0 10
Loans to customers, total, SEKbn 850 268 551 130 1 0 1 799
Provisions for loans to customers, total, SEKbn 1 1 4 0 0 0 7
Deposits from customers, SEKbn 460 403 336 78 7 0 1 282
Risk exposure amount, SEKbn 294 196 291 37 30 848
Full-time employees 2 559 4 766 1 803 599 7 811 0 17 538
Allocated equity, average, SEKbn 54 35 47 6 56 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 Second quarter│ 2024│24
Group
January-June 2023¹ Swedish Baltic Corporates and Premium and Functions
SEKm Banking Banking Institutions Private Banking and Other Eliminations Group
Income statement
Net interest income 10 438 8 569 6 566 1 082 -1 986 35 24 704
Net commission income 3 514 1 672 1 786 684 -173 -12 7 472
Net gains and losses on financial items 105 273 831 14 217 -0 1 441
Other income² 748 438 82 22 1 568 -914 1 944
Total income 14 805 10 952 9 265 1 803 -375 -891 35 560
Staff costs 939 954 1 061 232 3 456 -9 6 633
Variable staff costs 17 48 57 5 123 0 249
Other expenses 3 073 1 550 1 866 287 -2 468 -882 3 390
Depreciation/amortisation of tangible and intangible
assets 10 92 12 0 854 -0 968
Administrative fine 37 850 887
Total expenses 4 039 2 644 2 995 524 2 815 -891 12 127
Profit before impairments, bank taxes and resolution fees 10 765 8 308 6 270 1 279 -3 190 0 23 433
Impairment of tangible and intangible assets 0 11 11
Credit impairment 381 -55 622 9 8 0 965
Bank taxes and resolution fees 438 373 480 60 11 1 362
Profit before tax 9 947 7 990 5 169 1 210 -3 219 -0 21 095
Tax expense 1 888 1 463 1 048 248 -235 4 412
Profit for the period 8 059 6 526 4 121 961 -2 984 -0 16 683
Net commission income
Commission income
Payment processing 225 337 472 6 205 -9 1 236
Cards 1 064 1 098 1 464 16 -195 0 3 447
Asset management and custody 2 796 295 1 014 641 -2 -158 4 585
Lending 0 114 495 3 -1 -4 607
Other commission income³ 562 307 696 214 7 -13 1 772
Total 4 647 2 149 4 141 880 14 -184 11 647
Commission expense 1 133 477 2 354 195 187 -172 4 176
Net commission income 3 514 1 672 1 786 684 -173 -12 7 472
Balance sheet, SEKbn
Cash and balances with central banks 0 4 1 354 358
Loans to credit institutions 4 0 194 258 -396 61
Loans to the public 870 255 612 121 1 -1 1 857
Interest-bearing securities 2 55 277 -5 329
Financial assets for which customers bear the investment
risk 244 2 25 40 312
Investments in associates 6 2 8
Derivatives 0 162 146 -255 54
Tangible and intangible assets 2 13 -0 0 11 0 27
Other assets 18 149 22 3 216 -363 45
Total assets 1 145 426 1 070 164 1 265 -1 020 3 050
Amounts owed to credit institutions 6 0 389 125 -388 133
Deposits and borrowings from the public 464 387 382 75 3 -8 1 303
Debt securities in issue -0 3 2 839 -5 839
Financial liabilities for which customers bear the
investment risk 245 2 25 40 312
Derivatives 0 175 129 -255 49
Other liabilities 378 46 42 1 -364 103
Senior non-preferred liabilities -0 87 87
Subordinated liabilities -0 40 40
Total liabilities 1 093 393 1 019 158 1 223 -1 020 2 866
Allocated equity 52 33 52 6 42 185
Total liabilities and equity 1 145 426 1 070 164 1 265 -1 020 3 050
Key figures
Return on allocated equity, % 30.7 41.1 16.6 30.8 -15.4 0.0 18.6
Cost/income ratio 0.27 0.24 0.32 0.29 -7.51 0.00 0.34
Credit impairment ratio, % 0.09 -0.05 0.19 0.02 0.05 0.00 0.10
Loan/deposit ratio, % 188 66 151 161 26 0 139
Lending to the public, stage 3, SEKbn (gross) 2 2 3 0 6
Loans to customers, total, SEKbn 870 255 556 121 1 1 803
Provisions for loans to customers, total, SEKbn 2 1 4 0 7
Deposits from customers, SEKbn 464 387 368 75 3 0 1298
Risk exposure amount, SEKbn 346 171 259 14 29 0 819
Full-time employees 2 417 4 706 1 686 513 7 543 0 16 865
Allocated equity, average, SEKbn 53 32 50 6 39 0 179
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 from 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 Second 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 Second quarter│ 2024│26
Changes between previous reporting and new restated reporting
Group
January-June 2023 Swedish Baltic Corporates and Premium and Functions
SEKm Banking Banking Institutions Private banking and Other Eliminations Group
Income statement
Net interest income -2 722 1 639 1 082 1
Net commission income -959 278 684 -3
Net gains and losses on financial items -86 71 14 0
Other income -34 -33 22 45
Total income -3 800 1 955 1 803 42
Staff costs -448 234 232 -19
Variable staff costs -7 2 5 -1
Other expenses -720 -1 393 287 41
Total expenses -1 175 -1 630 524 21
Profit before impairments, bank taxes and resolution
fees -2 626 1 1 325 1 279 21
Credit impairment -235 226 9 -0
Bank taxes and resolution fees -119 59 60
Profit before tax -2 272 1 1 041 1 210 21
Tax expense -492 239 248 5
Profit for the period -1 780 1 802 961 16
Net commission income
Commission income
Payment processing -87 81 6
Cards -117 78 16 23
Asset management and custody -737 96 641
Lending -19 19 3 -3
Other commission income -395 181 214
Total -1 354 455 880 19
Commission expense -395 177 195 23
Net commission income -959 278 684 -3
Balance sheet, SEKbn
Loans to credit institutions -0 0
Loans to the public -205 84 121
Financial assets for which customers bear the
-65 25 40
Other assets -5 2 3 1
Total assets -275 111 164 1
Amounts owed to credit institutions -1 1
Deposits and borrowings from the public -159 83 75 1
Financial liabilities for which customers bear the
investment risk -65 25 40
Other liabilities -39 -3 42 -0
Total liabilities -263 106 158 1
Allocated equity -12 5 6
Total liabilities and equity -275 111 164 1
Key figures
Return on allocated equity, % 0.0 0.0 1.6 30.8 0.1
Cost/income ratio -0.01 0.00 0.00 0.29 -0.81
Credit impairment ratio, % -0.02 0.04 0.19 0.00
Loan/deposit ratio, % 14 -14 161 3
Lending to the public, stage 3, SEKbn (gross) -1 1 0
Loans to customers, total, SEKbn -205 84 121 0
Provisions for loans to customers, total, SEKbn -1 1 0
Deposits from customers, SEKbn -156 82 75 0
Risk exposure amount, SEKbn -14 14 0
Full-time employees -958 491 513 -46
Allocated equity, average, SEKbn -12 5 6
===== SIDA 27 =====
Swedbank – Report for the Second quarter│ 2024│27
Note 5 Net interest income
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Interest income
Cash and balances with central banks 4 122 4 007 3 954 8 129 7 360
Treasury bills and other bills eligible for refinancing with central banks, etc. 1 996 2 047 2 207 4 042 3 621
Loans to credit institutions 770 835 799 1 605 1 490
Loans to the public 23 391 23 075 19 225 46 466 35 993
Bonds and other interest-bearing securities 595 552 474 1 147 863
Derivatives¹ -364 -1 044 -182 -1 409 -308
Other assets -10 -1 17 -11 28
Total 30 500 29 470 26 494 59 970 49 047
Transfer of trading-related interests reported in Net gains and losses 2 030 1 261 1 627 3 292 2 748
Total interest income 28 469 28 209 24 867 56 678 46 300
Interest expense
Amounts owed to credit institutions -1 194 -1 280 -1 656 -2 474 -2 943
Deposits and borrowings from the public -8 345 -8 381 -6 210 -16 727 -10 894
of which deposit guarantee fees -151 -149 -183 -300 -340
Debt securities in issue -7 335 -6 895 -6 718 -14 230 -12 578
Senior non-preferred liabilities -1 045 -922 -483 -1 967 -860
Subordinated liabilities -607 -537 -453 -1 143 -827
Derivatives¹ -209 127 1 625 -82 3 489
Other liabilities -23 -24 -16 -47 -37
Total -18 757 -17 911 -13 911 -36 669 -24 650
Transfer of trading-related interests reported in Net gains and losses -2 453 -2 302 -1 812 -4 755 -3 054
Total interest expense -16 304 -15 609 -12 099 -31 914 -21 596
Net interest income 12 165 12 599 12 768 24 764 24 704
Net investment margin before trading-related interests are deducted 1.51 1.54 1.62 1.52 1.58
Average total assets 3 118 814 3 006 487 3 105 025 3 060 254 3 084 076
Interest income on financial assets at amortised cost 28 337 28 018 25 216 56 355 46 704
Interest expense on financial liabilities at amortised cost 17 639 17 166 14 910 34 806 27 011
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 Second quarter│ 2024│28
Note 6 Net commission income
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Commission income
Payment processing 618 620 635 1 238 1 236
Cards 1 827 1 641 1 867 3 468 3 447
Service concepts 450 420 401 870 792
Asset management and custody 2 823 2 632 2 363 5 456 4 585
Insurance 67 98 77 165 163
Securities and corporate finance 205 198 167 404 366
Lending 298 301 311 600 607
Other 207 201 201 409 451
Total commission income 6 496 6 113 6 022 12 609 11 647
Commission expense
Payment processing -395 -380 -415 -776 -780
Cards -834 -762 -865 -1 596 -1 573
Service concepts -46 -50 -43 -96 -90
Asset management and custody -754 -686 -626 -1 440 -1 204
Insurance -98 -84 -76 -183 -145
Securities and corporate finance -94 -99 -100 -193 -194
Lending -39 -24 -25 -63 -65
Other -66 -52 -60 -117 -124
Total commission expense -2 326 -2 137 -2 211 -4 464 -4 176
Net commission income
Payment processing 223 240 219 463 456
Cards 993 879 1 002 1 872 1 874
Service concepts 403 370 357 774 702
Asset management and custody 2 069 1 947 1 737 4 016 3 380
Insurance -31 13 1 -18 18
Securities and corporate finance 111 99 67 211 173
Lending 259 277 286 537 542
Other 141 150 141 291 327
Total net commission income 4 169 3 976 3 811 8 145 7 472
===== SIDA 29 =====
Swedbank – Report for the Second quarter│ 2024│29
Note 7 Net gains and losses on financial items
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Fair value through profit or loss
Shares and share related derivatives 286 370 25 657 12
of which dividend 65 159 60 224 149
Interest-bearing securities and interest related derivatives 697 1 101 380 1 798 851
Financial liabilities -2 1 2 -1 2
Financial assets and liabilities where the customers bear the
investment risk, net 1 13 2 14 1
Other financial instruments 0 -1 0 0 0
Total fair value through profit or loss 983 1 485 408 2 468 866
Hedge accounting
Ineffectiveness, one-to-one fair value hedges -53 3 -72 -50 14
of which hedging instruments 2 000 -3 214 -3 441 -1 215 235
of which hedged items -2 053 3 217 3 369 1 164 -221
Ineffectiveness, portfolio fair value hedges 58 -6 45 52 127
of which hedging instruments -2 326 -256 200 -2 582 -2 699
of which hedged items 2 384 250 -155 2 635 2 826
Ineffectiveness, cash flow hedges 20 -2 -1 18 -2
Total hedge accounting 25 -5 -27 20 139
Amortised cost
Derecognition gain or loss for financial assets 25 3 17 28 28
Derecognition gain or loss for financial liabilities -103 99 11 -5 20
Total amortised cost -78 102 28 23 48
Trading related interest
Interest income 2 030 1 261 1 627 3 292 2 748
Interest expense -2 453 -2 302 -1 812 -4 755 -3 054
Total trading related interest -423 -1 041 -186 -1 463 -307
Change in exchange rates 405 141 301 546 694
Total 911 682 524 1 593 1 441
===== SIDA 30 =====
Swedbank – Report for the Second quarter│ 2024│30
Note 8 Net insurance income
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Insurance service revenue 1 202 1 210 1 060 2 412 2 102
Insurance service expenses -791 -943 -690 -1 735 -1 488
Insurance service result 411 267 370 678 614
Result from reinsurance contracts held -20 1 -4 -19 -20
Insurance finance income and expense -646 -1 517 -879 -2 163 -1 614
Insurance result -255 -1 249 -514 -1 504 -1 019
Return on financial assets backing insurance contracts with
participation features 547 1 516 898 2 062 1 685
Total 291 267 384 558 666
Note 9 Other general administrative expenses
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Premises 97 98 126 194 247
IT expenses 934 836 730 1 770 1 362
Telecommunications and postage 28 36 30 65 62
Consultants 267 286 224 553 446
Compensation to savings banks 53 53 55 106 110
Other purchased services 345 325 278 670 545
Travel 40 26 36 66 63
Entertainment 11 6 9 16 16
Supplies 18 16 16 33 39
Advertising, PR and marketing 175 71 91 246 124
Security transport and alarm systems 17 21 17 38 34
Repair/maintenance of inventories 41 37 34 79 65
Other administrative expenses 102 120 112 222 223
Other operating expenses 18 25 26 42 55
Total 2 144 1 956 1 783 4 101 3 390
===== SIDA 31 =====
Swedbank – Report for the Second quarter│ 2024│31
Note 10 Credit impairment
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Credit impairments for loans at amortised cost
Credit impairments - stage 1 -33 -167 -95 -200 164
Credit impairments - stage 2 -379 -22 168 -402 624
Credit impairments - stage 3 -329 261 54 -69 58
Credit impairments - purchased or originated credit impaired 0 -1 1 0 1
Total -742 71 128 -671 848
Write-offs 617 105 117 722 174
Recoveries -182 -55 -51 -236 -100
Total 435 51 66 486 75
Total - credit impairments for loans at amortised cost -307 122 194 -185 923
Credit impairments for loan commitments and guarantees
Credit impairments - stage 1 -51 5 -2 -45 33
Credit impairments - stage 2 63 -51 -4 11 17
Credit impairments - stage 3 6 68 0 74 -8
Total - credit impairments for loan commitments and
guarantees 18 23 -6 40 42
Total credit impairments -289 144 188 -145 965
Credit impairment ratio, % -0.06 0.03 0.04 -0.01 0.10
Disposal of loans
During the second quarter 2024 a portfolio of loans to
private persons was disposed. The loans were either
classified in stage 3 or were previously written off.
The disposal of the loans in stage 3 resulted in write
offs amounting to SEK 505m together with reversals of
credit impairment provisions amounting to SEK 496m.
The disposal of loans previously written of resulted in
recoveries amounting to SEK 145m.
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 946m (SEK 996m at 31
March 2024, SEK 1 324m at 31 December 2023) and are
allocated as SEK 505m in stage 1 and SEK 441m in
stage 2 (SEK 525m in stage 1, SEK 471m in stage 2 at
31 March 2024). Customers and industries are reviewed
and analysed considering the current situation,
particularly in more vulnerable sectors. During the
second quarter, the main changes were that post-model
expert credit adjustments for the Retail sector and
Property management sector were decreased whilst
post-model expert credit adjustments for Agriculture,
forestry, fishing sector and Manufacturing sector
increased. The most significant post-model
adjustments at 30 June 2024 were in the Property
management, Manufacturing and Agriculture, forestry,
fishing sectors.
===== SIDA 32 =====
Swedbank – Report for the Second 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 Second quarter│ 2024│33
Incorporation of forward-looking macroeconomic scenarios
The Swedbank Economic Outlook was published on
18 April 2024 and the baseline scenario was updated by
Swedbank Macro Research as of 10 June 2024. 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 30 June 2024.
30 June 2024 Positive scenario Baseline scenario Negative scenario
2024 2025 2026 2024 2025 2026 2024 2025 2026
Sweden
GDP (annual % change) 0.8 3.8 2.5 0.5 2.8 2.8 -1.3 -5.2 2.4
Unemployment (annual %) 8.4 8.2 7.6 8.4 8.3 7.7 8.5 10.4 11.0
House prices (annual % change) 0.2 5.1 6.8 0.1 4.4 6.5 -3.5 -11.7 3.4
Stibor 3m (%) 3.79 2.65 2.11 3.72 2.44 2.10 3.46 0.69 0.29
Estonia
GDP (annual % change) -0.5 4.2 2.8 -1.0 2.8 3.0 -3.3 -7.1 1.0
Unemployment (annual %) 7.4 6.2 5.3 7.5 6.6 5.8 8.1 11.5 14.3
House prices (annual % change) -2.6 5.4 6.4 -3.1 2.8 4.5 -10.5 -24.7 -2.9
Latvia
GDP (annual % change) 1.5 3.3 3.5 1.4 2.8 2.9 -0.4 -5.9 0.9
Unemployment (annual %) 6.6 5.9 5.7 6.7 6.1 6.0 7.5 11.0 12.3
House prices (annual % change) -1.4 6.0 6.0 -2.6 3.8 5.3 -9.5 -26.2 -8.6
Lithuania
GDP (annual % change) 2.1 3.2 2.2 1.8 2.5 2.3 -0.4 -7.1 1.2
Unemployment (annual %) 7.1 5.9 5.5 7.3 6.7 6.6 7.6 10.5 14.8
House prices (annual % change) 2.8 6.2 5.9 1.7 3.7 4.9 -8.8 -28.1 -5.3
Global indicators
US GDP (annual %) 2.5 2.3 1.7 2.3 1.4 1.5 1.2 -3.3 0.1
EU GDP (annual %) 1.0 2.3 1.3 0.7 1.5 1.4 -0.8 -5.7 0.4
Brent Crude Oil (USD/Barrel) 83.8 80.4 76.1 83.1 79.0 75.4 72.4 48.1 58.9
Euribor 6m (%) 3.58 2.39 1.73 3.47 2.14 1.72 3.34 0.22 0.02
Global growth remains weak, but development is varied
across regions and countries. After the summer,
European economies will start to recover as inflation
normalises and interest rates decline. US growth, on the
other hand, is expected to slow slightly later this year
and in 2025, as a result of less fiscal stimulus and lags
from tight monetary policy.
Geopolitical risks remain elevated. The situation in the
Middle East could lead to higher oil prices. Natural gas
prices have stayed low, however, and at current levels,
energy prices are not driving inflation. Some commodity
prices and freight costs have started to rise, which
could complicate the path to normal inflation and
further delay central bank rate cuts.
In Sweden, GDP growth will gradually increase in the
second half of this year as real wages, and hence
household consumption, increase. Next year, growth will
pick up further, and GDP will increase by close to 3%.
The labour market will weaken further this year before
employment increases again next year as growth picks
up.
In 2024, GDP is expected to grow modestly in Latvia and
Lithuania and fall further in Estonia. Growth is likely to
pick up and be broad-based in 2025. Exports and
manufacturing have been the weakest spot, and
external demand is expected to pick up toward the end
of the year.
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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
Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Swedish bank tax 277 276 292 553 584
Lithuanian bank tax 438 508 325 946 325
Latvian bank tax 111 107 0 218 0
Resolution fees 219 213 227 432 453
Total 1 045 1 104 844 2 149 1 362
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.
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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.
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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.
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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.
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Loan commitments and financial guarantees
The tables below provide a reconciliation of credit impairment provisions for loan commitments and financial guarantees.
Note 14 Credit risk exposures
30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023
Assets
Cash and balances with central banks 316 886 252 994 358 417
Interest-bearing securities 307 264 237 460 328 661
Loans to credit institutions 46 523 67 534 60 527
Loans to the public 1 896 756 1 863 375 1 857 443
Derivatives 23 973 39 563 53 702
Other financial assets 19 865 7 972 21 273
Total assets 2 611 268 2 468 899 2 680 024
Contingent liabilities and commitments
Guarantees 42 702 43 835 45 012
Loan commitments 258 737 249 422 268 579
Total contingent liabilities and commitments 301 439 293 257 313 591
Total 2 912 707 2 762 156 2 993 615
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Note 15 Intangible assets
Indefinate useful life Definate useful life Total
Goodwill & Brand Other intangible assets
Jan-Jun Full year Jan-Jun Jan-Jun Full year Jan-Jun Jan-Jun Full year Jan-Jun
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 0 717 1 265 764 717 1 265 764
Amortisation for the period -412 -641 -336 -412 -641 -336
Impairment for the period 0 -32 -81 -11 -32 -81 -11
Sales and disposals 0 0 0 0 -3 0 0 -3
Exchange rate differences 249 11 689 0 1 3 249 12 692
Closing balance 14 110 13 861 14 538 6 852 6 580 6 453 20 962 20 440 20 992
During the second quarter of 2023, an impairment of SEK 32m was made in relation to internally developed software, which will no longer
be used. There were no additional indications of 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
30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023
Central banks 13 984 10 098 21 688
Banks 62 304 46 540 90 446
Other credit institutions 6 521 8 161 6 337
Repurchase agreements 9 779 7 256 14 422
Total 92 587 72 054 132 893
Note 17 Deposits and borrowings from the public
30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023
Private customers 728 085 702 565 715 700
Corporate customers 554 076 527 863 581 997
Total deposits from customers 1 282 162 1 230 428 1 297 697
Cash collaterals received 3 094 3 470 5 117
Swedish National Debt Office 114 94 69
Repurchase agreements - Swedish National Debt Office 1 3 0
Repurchase agreements 3 835 268 383
Total borrowings 7 044 3 835 5 570
Deposits and borrowings from the public 1 289 206 1 234 262 1 303 267
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Note 18 Debt securities in issue, senior non-preferred
liabilities and subordinated liabilities
30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023
Commercial papers 322 497 263 334 364 025
Covered bonds 369 045 345 615 345 014
Senior unsecured bonds 120 570 118 238 127 654
Structured retail bonds 526 1 361 1 875
Total debt securities in issue 812 638 728 548 838 568
Senior non-preferred liabilities 119 174 104 828 86 799
Subordinated liabilities 40 843 32 841 39 855
Total 972 655 866 217 965 222
Jan-Jun Full-year Jan-Jun
Turnover 2024 2023 2023
Opening balance 866 217 872 976 872 976
Issued 376 625 893 599 520 547
Repurchased -6 131 -20 295 -7 577
Repaid -297 690 -899 951 -456 023
Interest, change in fair values or hedged items in fair value hedges and
changes in exchange rates 33 634 19 888 35 298
Closing balance 972 655 866 217 965 222
Note 19 Derivatives
Nominal amount Positive fair value Negative fair value
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023 2024 2023 2023 2024 2023 2023
Derivatives in hedge accounting
One-to-one fair value hedges 612 108 558 527 576 955 4 531 6 415 694 15 489 15 654 30 464
Portfolio fair value hedges 333 826 352 036 356 900 6 810 9 665 18 300 1 113 503 1
Cash flow hedges 8 369 8 188 8 681 768 596 1 113
Total 954 303 918 751 942 536 12 109 16 676 20 107 16 602 16 157 30 465
Non-hedge accounting derivatives 35 087 320 33 026 557 33 542 667 883 110 887 411 1 249 556 895 096 925 558 1 241 788
Gross amount 36 041 622 33 945 308 34 485 203 895 219 904 087 1 269 663 911 698 941 715 1 272 253
Offset amount -871 246 -864 523 -1 215 961 -879 141 -868 262 -1 223 155
Total 23 973 39 563 53 702 32 557 73 453 49 098
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.
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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.
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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
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fair value is established with significant elements of
Swedbank’s own internal assumptions. The carrying
amount of the holdings in Visa Inc. C amounted as per
30 June 2024 to SEK 579m (SEK 534m 31 December
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
30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023
Loans used as collateral for covered bonds¹ 397 653 381 369 382 836
Assets recorded in register on behalf of insurance policy holders 390 723 335 375 328 232
Other assets ledged for own liabilities 122 793 151 763 142 009
Other assets pledged 17 223 18 253 17 197
Assets pledged 928 393 886 760 870 274
Nominal amounts
Guarantees 42 702 43 835 45 012
Other 107 77 72
Contingent liabilities 42 808 43 911 45 084
Nominal amounts
Loans granted not paid 204 165 192 919 211 500
Overdraft facilities granted but not utilised 54 572 56 503 57 079
Commitments 258 737 249 422 268 579
1) The pledge is defined as the borrower’s nominal debt including accrued interest and refers to the loans of the total available
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 2024, 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.
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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
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023 2024 2023 2023
Financial assets and liabilities, which have been offset or are
subject to netting
Gross amount 1 059 921 1 036 690 1 407 287 999 225 1 035 778 1 365 235
Offset amount -944 414 -951 626 -1 292 356 -952 309 -955 365 -1 299 550
Net amounts presented in the balance sheet 115 507 85 064 114 932 46 916 80 414 65 685
Related amounts not offset in the balance sheet
Financial instruments, netting arrangements 24 278 21 929 22 305 14 236 21 930 22 306
Financial Instruments, collateral 81 708 45 980 58 489 11 281 19 294 20 740
Cash collateral 4 573 7 460 26 306 10 784 38 055 19 095
Total amount not offset in the balance sheet 110 559 75 369 107 100 36 300 79 279 62 142
Net amount 4 949 9 695 7 832 10 615 1 135 3 543
The amount offset for derivative assets includes offset
cash collateral of SEK 7 296m (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 191m (13 281), derived
from the balance sheet item Loans to credit institutions.
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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.
30 Jun 31 Mar 31 Dec 30 Sep 30 Jun
Consolidated situation, SEKm 2024 2024 2023 2023 2023
Available own funds
Common Equity Tier 1 (CET1) capital 170 511 166 143 160 659 156 880 152 511
Tier 1 capital 192 269 187 988 174 848 171 844 167 442
Total capital 212 259 208 908 195 648 192 499 193 791
Risk-weighted exposure amounts
Total risk exposure amount 847 922 859 345 847 121 837 943 819 021
Capital ratios as a percentage of risk-weighted exposure amount
Common Equity Tier 1 ratio 20.1 19.3 19.0 18.7 18.6
Tier 1 ratio 22.7 21.9 20.6 20.5 20.4
Total capital ratio 25.0 24.3 23.1 23.0 23.7
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 2.7 2.3
of which: to be made up of CET1 capital 1.8 1.8 1.8 1.8 1.5
of which: to be made up of Tier 1 capital 2.1 2.1 2.1 2.1 1.8
Total SREP own funds requirements 10.7 10.7 10.7 10.7 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
Institution-specific countercyclical capital buffer 1.7 1.7 1.7 1.6 1.6
Systemic risk buffer 3.1 3.1 3.1 3.1 3.1
Global Systemically Important Institution buffer
Other Systemically Important Institution buffer 1.0 1.0 1.0 1.0 1.0
Combined buffer requirement 8.3 8.3 8.3 8.2 8.2
Overall capital requirements 19.0 18.9 19.0 18.9 18.4
CET1 available after meeting the total SREP own funds requirements 13.8 13.0 12.4 12.3 12.6
Leverage ratio
Total exposure measure 2 874 539 2 957 209 2 689 307 2 876 831 2 892 936
Leverage ratio, % 6.7 6.4 6.5 6.0 5.8
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 676 585 691 200 709 683 722 060 717 976
Cash outflows, total weighted value 480 805 499 465 521 325 536 211 537 832
Cash inflows, total weighted value 56 832 58 558 58 123 55 863 55 578
Total net cash outflows, adjusted value 423 974 440 907 463 202 480 347 482 255
Liquidity coverage ratio, % 160.9 158.2 154.2 151.0 149.8
Net stable funding ratio
Total available stable funding 1 748 751 1 781 575 1 720 299 1 722 723 1 741 688
Total required stable funding 1 413 022 1 415 898 1 390 353 1 420 508 1 415 740
Net stable funding ratio, % 123.8 125.9 123.7 121.3 123.0
1) The liquidity coverage ratio has been re-calculdated 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.
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Common Equity Tier 1 capital 30 Jun 31 Dec 30 Jun
Consolidated situation, SEKm 2024 2023 2023
Shareholders' equity according to the Group's balance sheet 199 612 198 760 184 627
Anticipated dividend -8 511 -17 049 -8 342
Value changes in own financial liabilities -113 -150 -294
Cash flow hedges -9 -9 -17
Additional value adjustments -461 -609 -605
Goodwill -14 123 -13 874 -14 551
Deferred tax assets -15 -25 -38
Intangible assets -3 663 -4 470 -4 669
Insufficient coverage for non-performing exposures -58 -61 -12
Deductions of CET1 capital due to Article 3 CRR -139 -140 -134
Shares deducted from CET1 capital -49 -46 -41
Pension fund assets -1 961 -1 667 -3 412
Total 170 511 160 659 152 511
Risk exposure amount 30 Jun 31 Dec 30 Jun
Consolidated situation, SEKm 2024 2023 2023
Credit risks, standardised approach 59 299 59 387 55 743
Credit risks, IRB 403 161 374 538 351 224
Default fund contribution 350 335 149
Settlement risks #N/A #N/A #N/A
Market risks 17 242 16 592 17 122
Credit value adjustment 1 609 2 986 1 981
Operational risks 96 123 96 123 79 995
Additional risk exposure amount, Article 3 CRR 17 320 29 234 73 086
Additional risk exposure amount, Article 458 CRR 252 817 267 925 239 720
Total 847 922 847 121 819 021
SEKm %
Capital requirements¹ 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
Consolidated situation, SEKm / % 2024 2023 2023 2024 2023 2023
Capital requirement Pillar 1 138 061 138 023 132 353 16.3 16.3 16.2
of which Buffer requirements² 70 227 70 254 66 831 8.3 8.3 8.2
Capital requirement Pillar 2³ 22 640 22 618 18 592 2.7 2.7 2.3
Pillar 2 guidance 4 240 4 236 8 190 0.5 0.5 1.0
Total capital requirement including Pillar 2
guidance 164 940 164 877 159 135 19.5 19.5 19.4
Own funds 212 259 195 648 193 791
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 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
Consolidated situation, SEKm / % 2024 2023 2023 2024 2023 2023
Leverage ratio requirement Pillar 1 86 236 80 679 86 788 3.0 3.0 3.0
Leverage ratio Pillar 2 guidance 14 373 13 447 13 018 0.5 0.5 0.5
Total capital requirement including Pillar 2
guidance 100 609 94 126 99 806 3.5 3.5 3.5
Tier 1 capital 192 269 174 848 167 442
1) Swedbank's calculation based on the SFSA's announced leverage ratio requirements, including Pillar 2 requirements and Pil lar 2 guidance.
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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 30 June 2024, the internal capital assessment for
Swedbank’s consolidated situation amounted to
SEK 50.8bn (SEK 50.5bn as of 31 December 2023). The
capital to meet the internal capital assessment, i.e. the
Total capital, amounted to SEK 212.3bn (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 35.2bn (SEK 34.4bn
as of 31 December 2023) and the total capital
amounted to SEK 154.7bn (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.
Economic growth and outlook
Economic growth in the Nordic and Baltic regions
shows subtle signs of recovery, although being
highly dependent on the global economy that is
affected by several uncertainties. Future trade
policies and various geopolitical tensions may
negatively impact growth.
Interest rate trends and monetary policy
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 monitors operational risks and focuses on
areas where the risks are considered highest. Swedbank
works continuously to ensure high service availability
for its customers and conducts regular cyber resilience
tests. The threat landscape, as a consequence of the
geopolitical situation, keeps information security and
cybersecurity in focus.
Swedbank continuously invests in and improves
technology, as well as implements controls in our
digital channels to combat financial crime and
protect our customers. Swedbank has even a close
collaboration within the Swedish Bankers’
Association with the goal of creating common
guidelines for customer protection against fraud.
Anti-money laundering and Counter terrorist
financing and other compliance risks
===== SIDA 50 =====
Swedbank – Report for the Second quarter│ 2024│50
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.
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.
30 June 2024 < 5 yrs 5-10 yrs > 10 yrs Total
SEK -960 -171 340 -791
Foreign currencies 257 118 -80 295
Total -703 -53 260 -496
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.
30 June 2024 < 5 yrs 5-10 yrs > 10 yrs Total
SEK 631 -640 331 322
Foreign currencies -994 281 -102 -815
Total -363 -359 229 -493
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. Partly owned savings banks are important associates.
===== SIDA 51 =====
Swedbank – Report for the Second quarter│ 2024│51
Note 28 Swedbank’s share
30 Jun 31 Dec 30 Jun
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 -6 687 262 -7 209 322 -7 209 322
Number of outstanding ordinary shares on the closing
day 1 125 318 460 1 124 796 400 1 124 796 400
SWED A
Last price, SEK 218.10 201.70 181.85
Market capitalisation, SEKm 245 431 226 871 204 544
During 2024, within Swedbank's share-based compensation programme, Swedbank AB transferred 457 264 shares at no cost to
employees.
Q2 Q1 Q2 Jan-Jun Jan-Jun
Earnings per share 2024 2024 2023 2024 2023
Average number of shares
Average number of shares before dilution 1 125 300 646 1 125 014 707 1 124 725 789 1 125 157 676 1 124 218 171
Weighted average number of shares for potential
ordinary shares that incur a dilutive effect due to share-
based compensation programme 3 656 521 3 121 382 2 438 823 3 638 487 2 761 392
Average number of shares after dilution 1 128 957 167 1 128 136 089 1 127 164 612 1 128 796 163 1 126 979 563
Profit, SEKm
Profit for the period attributable to shareholders of
Swedbank 8 594 8 428 9 122 17 022 16 683
Earnings for the purpose of calculating earnings per
share 8 594 8 428 9 122 17 022 16 683
Earnings per share, SEK
Earnings per share before dilution 7.64 7.49 8.11 15.13 14.84
Earnings per share after dilution 7.61 7.47 8.09 15.08 14.80
===== SIDA 52 =====
Swedbank – Report for the Second quarter│ 2024│52
Financial statements -
Swedbank AB
Income statement, condensed
Parent company Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Interest income
22 675 22 275 21 495 44 950 39 631
Interest expense -16 825 -16 611 -14 093 -33 437 -25 404
Net interest income 5 849 5 663 7 402 11 513 14 227
Dividends received 3 394 5 627 1 370 9 021 7 632
Net commission income 1 812 1 764 1 736 3 575 3 434
Net gains and losses on financial items 1 013 266 528 1 279 870
Other income 1 199 1 096 965 2 295 1 888
Total income 13 267 14 416 12 001 27 683 28 051
Staff costs 3 156 3 103 2 885 6 259 5 768
Other expenses 1 939 1 829 1 709 3 768 3 266
Depreciation/amortisation and impairment of tangible and intangible
fixed assets 1 320 1 304 1 379 2 624 2 644
Administrative fines¹ -40 850
Total expenses 6 415 6 236 5 933 12 651 12 529
Profit before impairments, Swedish bank tax and resolution fees 6 852 8 180 6 068 15 032 15 523
Credit impairments, net -287 109 123 -178 670
Impairment of financial assets² 125 125
Swedish bank tax and resolution fees 335 337 339 672 676
Operating profit 6 804 7 734 5 481 14 538 14 052
Tax expense 1 365 951 1 243 2 316 2 343
Profit for the period 5 439 6 783 4 238 12 222 11 709
1) During the first quarter 2023 a provision was made related to the Office of Foreign Assets Control (OFAC) of SEK 40m. During the sec ond
quarter an agreement was reached with OFAC. The provision was reversed and has been recognised in Swedbank AS in Latvia.
2) Impairment of financial assets refers to impairment of Invidem AB.
Statement of comprehensive income, condensed
Parent company Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2024 2024 2023 2024 2023
Profit for the period reported via income statement 5 439 6 783 4 238 12 222 11 709
Total comprehensive income for the period 5 439 6 783 4 238 12 222 11 709
===== SIDA 53 =====
Swedbank – Report for the Second quarter│ 2024│53
Balance sheet, condensed
Parent company 30 Jun 31 Dec 30 Jun
SEKm 2024 2023 2023
Assets
Cash and balances with central banks 166 061 116 547 234 262
Loans to credit institutions 832 628 817 011 809 882
Loans to the public 486 027 471 612 470 075
Interest-bearing securities 310 985 235 641 325 547
Shares and participating interests 86 993 77 642 70 847
Derivatives 31 988 49 650 72 216
Other assets 44 700 37 196 41 678
Total assets 1 959 381 1 805 299 2 024 506
Liabilities and equity
Amounts owed to credit institutions 218 516 152 479 218 979
Deposits and borrowings from the public 908 818 864 906 928 412
Value change of the hedged liabilities in portfolio hedges of
interest rate risk 188 209
Debt securities in issue 439 087 378 554 486 051
Derivatives 49 655 96 284 86 510
Other liabilities and provisions 56 999 44 476 60 136
Senior non-preferred liabilities 119 174 104 828 86 799
Subordinated liabilities 40 843 32 841 39 855
Untaxed reserves 12 362 12 362 5 367
Equity 113 740 118 359 112 396
Total liabilities and equity 1 959 381 1 805 299 2 024 506
Pledged collateral 122 577 151 609 141 994
Other assets pledged 17 223 18 253 17 197
Contingent liabilities 76 107 88 535 92 978
Commitments 243 095 235 739 252 600
===== SIDA 54 =====
Swedbank – Report for the Second quarter│ 2024│54
Statement of changes in equity, condensed
Parent company
SEKm
Restricted equity Non-restricted equity
January-June 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 207 207
Total comprehensive income for the period 12 222 12 222
Closing balance 30 June 2024 24 904 5 968 13 206 69 662 113 740
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-June 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 149 149
Total comprehensive income for the period 11 709 11 709
Closing balance 30 June 2023 24 904 5 968 13 206 68 318 112 396
Cash flow statement, condensed
Parent company Jan-Jun Full-year Jan-Jun
SEKm 2024 2023 2023
Cash flow from operating activities 39 043 -137 536 -17 520
Cash flow from investing activities 11 325 5 794 13 589
Cash flow from financing activities -854 32 975 22 879
Cash flow for the period 49 514 -98 767 18 948
Cash and cash equivalents at beginning of period 116 547 215 314 215 314
Cash flow for the period 49 514 -98 767 18 948
Cash and cash equivalents at end of period 166 061 116 547 234 262
===== SIDA 55 =====
Swedbank – Report for the Second quarter│ 2024│55
Capital adequacy
30 Jun 31 Mar 31 Dec 30 Sep 30 Jun
Parent company, SEKm 2024 2024 2023 2023 2023
Available own funds
Common equity tier 1 (CET1) capital 113 273 111 949 109 148 106 441 106 100
Tier 1 capital 135 032 133 793 123 336 121 405 121 031
Total capital 154 670 153 667 142 832 140 837 146 348
Risk-weighted exposure amounts
Total risk exposure amount 441 696 435 166 427 077 414 671 393 039
Capital ratios as a percentage of risk-weighted exposure amount
Common equity tier 1 ratio 25.6 25.7 25.6 25.7 27.0
Tier 1 ratio 30.6 30.7 28.9 29.3 30.8
Total capital ratio 35.0 35.3 33.4 34.0 37.2
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 1.2 2.1
of which: to be made up of CET1 capital 0.8 0.8 0.8 0.8 1.4
of which: to be made up of Tier 1 capital 0.9 0.9 0.9 0.9 1.6
Total SREP own funds requirements 9.2 9.2 9.2 9.2 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 1.7 1.6 1.7 1.7 1.6
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 4.2 4.1 4.2 4.2 4.1
Overall capital requirements 13.4 13.4 13.4 13.4 14.2
CET1 available after meeting the total SREP own funds requirements 20.4 20.5 20.3 20.4 21.1
Leverage ratio
Total exposure measure 1 459 154 1 571 858 1 308 778 1 532 147 1 529 710
Leverage ratio, % 9.3 8.5 9.4 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 550 102 571 529 588 366 595 633 581 236
Cash outflows, total weighted value 489 366 504 906 530 163 547 814 547 225
Cash inflows, total weighted value 50 064 51 895 51 162 50 033 50 918
Total net cash outflows, adjusted value 439 302 453 011 479 001 497 781 496 308
Liquidity coverage ratio, % 125.9 126.8 123.5 120.0 117.5
Net stable funding ratio
Total available stable funding 1 057 450 1 095 569 1 033 099 1 044 967 1 039 516
Total required stable funding 623 768 614 594 596 745 601 829 589 546
Net stable funding ratio, % 169.5 178.3 173.1 173.6 176.3
1) The liquidity coverage ratio has been re-calculdated 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 Second quarter│ 2024│56
Risk exposure amount 30 Jun 31 Dec 30 Jun
Parent company, SEKm 2024 2023 2023
Credit risks, standardised approach 130 835 125 798 115 135
Credit risks, IRB 204 306 196 446 182 355
Default fund contribution 350 335 149
Settlement risks #N/A #N/A #N/A
Market risks 17 149 16 690 17 063
Credit value adjustment 1 575 2 940 1 977
Operational risks 50 860 50 860 42 408
Additional risk exposure amount, Article 3 CRR 200 500 25 558
Additional risk exposure amount, Article 458 CRR 36 423 33 508 8 394
Total 441 696 427 077 393 039
SEKm %
Capital requirements¹ 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
Parent company, SEKm / % 2024 2023 2023 2024 2023 2023
Capital requirement Pillar 1 53 705 51 942 47 554 12.2 12.2 12.1
of which Buffer requirements² 18 369 17 775 16 111 4.2 4.2 4.1
Capital requirement Pillar 2³ 5 433 5 253 8 254 1.2 1.2 2.1
Total capital requirement including Pillar 2 guidance 59 138 57 195 55 808 13.4 13.4 14.2
Own funds 154 670 142 832 146 348 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 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
Parent company, SEKm / % 2024 2023 2023 2024 2023 2023
Leverage ratio requirement Pillar 1 43 775 39 263 45 891 3.0 3.0 3.0
Total leverage ratio requirement including Pillar 2 guidance 43 775 39 263 45 891 3.0 3.0 3.0
Tier 1 capital 135 032 123 336 121 031 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 Second 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 6.
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 figures1, 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 6.
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 6.
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 Second 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 Second 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-June 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, 15 July 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 Second quarter│ 2024│60
Review report
Introduction
We have reviewed the condensed interim financial information (interim report) of Swedbank AB (publ) as of 30 June 2024
and the six-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, 16 July 2024
PricewaterhouseCoopers AB
Anneli Granqvist Martin By
Authorised Public Accountant Authorised Public Accountant
Auditor in charge
===== SIDA 61 =====
Swedbank – Report for the Second 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 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