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FINANCIALS: Swedish FSA New Capital Requirements; Tiny Moves, Not Material

FINANCIALS

Swedish FSA has updated its capital requirements for the big three Swedes today, only very minor alterations (Handelsbanken +5bp the largest) but all have meaningful capital buffers and retain some of the highest CET1 ratios in Europe, we estimate. Shouldn’t be credit material, we feel.

  • SEB (SEB: A3 pos/A-/AA-) sees its rise by 2bp which means, due to capital generation during 2Q24, its buffer to actual CET1 has risen 8bp (to 428bp).
  • Handelsbanken (SHBASS: A2/A/AA) is up 5bp, buffer stable at 400bp
  • Swedbank (SWEDA: Baa1 pos/A-/AA-) is up 1bp, buffer +77bp (to 502bp), reflecting Swedbank’s lower equity payout characteristics relative to the other two.

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