Swedbank Q3 net income slightly beats expectations

By Reuters News


Overview

  • Sweden banking group's Q3 net income slightly beat analyst expectations

  • Q3 net interest income missed analyst expectations

  • Company cites positive business climate and credit risk model approvals as key drivers


Outlook

  • Swedbank did not provide specific financial guidance for the current quarter or full year in the press release


Result Drivers

  • POSITIVE BUSINESS CLIMATE - Swedbank said a favorable business environment supported results in the quarter

  • CREDIT RISK MODEL APPROVALS - Co highlighted approvals of credit risk models in Sweden and the Baltics as contributing to performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

SEK 7.30

Q3 Net Income

Slight Beat*

SEK 8.25 bln

SEK 8.24 bln (9 Analysts)

Q3 Net Interest Income

Miss

SEK 11.57 bln

SEK 11.82 bln (5 Analysts)

Q3 CET 1 Capital Ratio

17.20%

Q3 Net Commission Income

SEK 4.70 bln

Q3 Return on Equity

15.60%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Swedbank AB is SEK410.00, about 3.9% above its October 21 closing price of SEK394.50

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Oct 22 - Swedish bank SEB Q3 net profit below forecast, pauses share buybacks

  • Oct 21 - Sweden's Handelsbanken Q3 operating profit below consesus estimates

  • Oct 21 - Norway's DNB Q3 profit falls 7.9%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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