January 23, 2025 06:59 GMT
FINANCIALS: Swedbank (SWEDA Aa3 Pos/A+ Pos/AA) - Q4 2024 Results
FINANCIALS
Swedbank (SWEDA Aa3 Pos/A+ Pos/AA) - Q4 2024 Results
Consensus beat, as interest expense falls faster than expected
- Net interest income was marginally higher than Q3 at SEK12,274mn, forming most of the beat to consensus. Net interest expense fell as fast as net interest income to maintain the net number. Commission and fee income was flat on Q3 at SEK4,285m.
- Expenses rose almost 20%, due to a meaningful impairment charge, but ex this were up 8.6% QoQ on Q3 but flat on Q4 23.
- CET1 was 0.6% lower to 19.8%, due to both RWA growth and anticipated dividends exceeding Net Income.
- Provisions and asset quality are barely worth mentioning at this stage other than to say they are very good, with a net with back SEK394mn for the quarter. Total impaired loans did climb 5bps a bit to 0.65%.
Rating outlook: On balance sheet strength the upgrades are deserved, but Agencies are waiting for confirmation that "
previous governance and cultural shortcomings" do not have create further negative effects.
Valuation: The Sr Prefs and Sr Non-Prefs trade in line with higher quality peers. The tier two bonds screen slightly expensive for their rating, but the tow positive creating rating outlooks which may be converted somewhat make up for that.
Call at 8:00am London time - https://www.swedbank.com/investor-relations/reports-and-presentations/interim-reports.html
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