Executive Summary
Swedbank AB (publ) provides various banking products and services to private, corporate, and organizational customers.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued average dividend payer.
Similar Companies
Share Price & News
How has Swedbank's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SWED A's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
10.5%
SWED A
9.0%
SE Banks
4.1%
SE Market
1 Year Return
-13.2%
SWED A
-8.1%
SE Banks
8.9%
SE Market
Return vs Industry: SWED A underperformed the Swedish Banks industry which returned -6.4% over the past year.
Return vs Market: SWED A underperformed the Swedish Market which returned 9.1% over the past year.
Shareholder returns
| SWED A | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.5% | 9.0% | 4.1% |
| 30 Day | 2.3% | 1.3% | 5.8% |
| 90 Day | -19.8% | -15.9% | -2.2% |
| 1 Year | -13.2%-13.2% | -7.6%-8.1% | 10.4%8.9% |
| 3 Year | -32.4%-43.2% | -27.6%-38.6% | 11.5%-3.4% |
| 5 Year | -17.1%-38.5% | -40.1%-51.7% | 30.8%5.3% |
Price Volatility Vs. Market
How volatile is Swedbank's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Swedbank AB (publ) (STO:SWED A) Insiders Increased Their Holdings1 month ago | Simply Wall St
Investors Who Bought Swedbank (STO:SWED A) Shares Three Years Ago Are Now Down 48%2 months ago | Simply Wall St
What To Know Before Buying Swedbank AB (publ) (STO:SWED A) For Its DividendValuation
Is Swedbank undervalued compared to its fair value and its price relative to the market?
30.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SWED A (SEK118) is trading below our estimate of fair value (SEK170.9)
Significantly Below Fair Value: SWED A is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SWED A is poor value based on its PE Ratio (10.4x) compared to the Banks industry average (8.4x).
PE vs Market: SWED A is good value based on its PE Ratio (10.4x) compared to the Swedish market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: SWED A is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: SWED A is good value based on its PB Ratio (0.9x) compared to the SE Banks industry average (0.9x).
Next Steps
Future Growth
How is Swedbank forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
21.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SWED A's forecast earnings growth (21.8% per year) is above the savings rate (0.5%).
Earnings vs Market: SWED A's earnings (21.8% per year) are forecast to grow faster than the Swedish market (16.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SWED A's revenue (3.4% per year) is forecast to grow slower than the Swedish market (5.9% per year).
High Growth Revenue: SWED A's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SWED A's Return on Equity is forecast to be low in 3 years time (11.5%).
Next Steps
Past Performance
How has Swedbank performed over the past 5 years?
3.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SWED A has high quality earnings.
Growing Profit Margin: SWED A's current net profit margins (30.8%) are lower than last year (48.3%).
Past Earnings Growth Analysis
Earnings Trend: SWED A's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: SWED A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SWED A had negative earnings growth (-40.4%) over the past year, making it difficult to compare to the Banks industry average (0.09%).
Return on Equity
High ROE: SWED A's Return on Equity (9%) is considered low.
Next Steps
Financial Health
How is Swedbank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: SWED A's Assets to Equity ratio (18.9x) is moderate.
Allowance for Bad Loans: SWED A has a low allowance for bad loans (65%).
Low Risk Liabilities: 59% of SWED A's liabilities are made up of primarily higher risk sources of funding.
Loan Level: SWED A has an appropriate level of Loans to Assets ratio (63%).
Low Risk Deposits: SWED A's Loans to Deposits ratio (161%) is high.
Level of Bad Loans: SWED A has an appropriate level of bad loans (0.8%).
Next Steps
Dividend
What is Swedbank's current dividend yield, its reliability and sustainability?
7.46%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SWED A's dividend (7.46%) is higher than the bottom 25% of dividend payers in the Swedish market (1.74%).
High Dividend: SWED A's dividend (7.46%) is in the top 25% of dividend payers in the Swedish market (5.59%)
Stability and Growth of Payments
Stable Dividend: SWED A has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: SWED A's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (77.3%), SWED A's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SWED A's dividends in 3 years are forecast to be covered by earnings (52.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.6yrs
Average management tenure
CEO
Jens Henriksson (52yo)
0.58
Tenure
kr13,996,000
Compensation
Mr. Jens Henriksson serves as President and Chief Executive Officer at Swedbank AB (publ) since October 1, 2019. Mr. Henriksson has been the Chief Executive Officer and President of Folksam AB since 2013. ...
CEO Compensation Analysis
Compensation vs Market: Jens's total compensation ($USD1.49M) is below average for companies of similar size in the Swedish market ($USD2.58M).
Compensation vs Earnings: Insufficient data to compare Jens's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 0.58yr | kr14.00m | 0.0018% SEK2.4m | |
| Chief Financial Officer | 0.58yr | kr14.75m | 0.0020% SEK2.7m | |
| Head of Investor Relations | no data | no data | no data | |
| Head of Group Compliance | 0.58yr | no data | 0.00013% SEK171.8k | |
| Interim Chief Legal Officer & Head of Group Legal | no data | no data | no data | |
| Acting Head of Group Communications & Sustainability | no data | no data | no data | |
| Head of Group Communications & Sustainability | 0.33yr | no data | no data | |
| Head of Group HR & Infrastructure | 2.58yrs | no data | no data | |
| Head of HR Channels & Concepts | 7.33yrs | no data | no data | |
| Head of Anti-Financial Crime Unit | 12.33yrs | no data | 0.0020% SEK2.7m |
0.6yrs
Average Tenure
55yo
Average Age
Experienced Management: SWED A's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 3.17yrs | kr1.04m | 0.00089% SEK1.2m | |
| Independent Director | 3.17yrs | kr845.00k | 0.000090% SEK118.9k | |
| Independent Director | 4yrs | kr710.00k | no data | |
| Independent Vice Chairman of the Board | 0.83yr | kr1.64m | 0.0018% SEK2.4m | |
| Independent Chairman of the Board | 0.83yr | kr2.99m | 0.0022% SEK2.9m | |
| Employee Representative Director | 5.33yrs | no data | 0.00011% SEK145.3k | |
| Employee Representative Director | 5.33yrs | no data | 0.000010% SEK13.2k | |
| Director | 3.17yrs | kr855.00k | 0.00058% SEK766.3k | |
| Independent Director | 2.17yrs | kr942.00k | 0.00016% SEK211.4k | |
| Independent Director | 1.17yrs | kr845.00k | no data |
3.2yrs
Average Tenure
56.5yo
Average Age
Experienced Board: SWED A's board of directors are considered experienced (3.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Swedbank AB (publ)'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Swedbank AB (publ)
- Ticker: SWED A
- Exchange: OM
- Founded: 1820
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: kr132.127b
- Shares outstanding: 1.12b
- Website: https://www.swedbank.com
Number of Employees
Location
- Swedbank AB (publ)
- Landsvägen 40
- Sundbyberg
- Stockholm County
- 172 63
- Sweden
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SWED A | OM (OMX Nordic Exchange Stockholm) | Yes | Common Shares | SE | SEK | Jun 1995 |
| 0H6T | LSE (London Stock Exchange) | Yes | Common Shares | GB | SEK | Jun 1995 |
| SWDB.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jun 1995 |
| FRYA | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 1995 |
| SWEDAS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | SEK | Jun 1995 |
| SWDB.Y | OTCPK (Pink Sheets LLC) | SPD ADR | US | USD | Jun 2003 |
Biography
Swedbank AB (publ) provides various banking products and services to private, corporate, and organizational customers. The company operates through Swedish Banking, Baltic Banking, and Large Corporates & Institutions segments. It offers savings, salary, and current accounts; private residential and corporate lending; leasing, factoring, and financing services; consumer, mortgage, acquisition and project, export, and marine financing; mutual funds; and asset management, and life insurance and pension services. The company also offers investment and trading services, including currency, fixed income, and equity derivatives and related derivatives services, as well as structured products; advisory and investment banking products and services, such as corporate financing, debt capital market, structured finance, and loans and syndication services; and transaction banking services, such as cash management, trade finance, securities, commercial payments, account, and clearing and settlement services. In addition, it provides domestic, international, mobile, document, and other payment products; debit and credit cards; real estate brokerage and management; legal services; and safe deposit boxes, as well as telephone, Internet, and mobile banking services. The company has 168 branches in Sweden, 26 branches in Estonia, 30 in Latvia, and 43 in Lithuania. It also operates in Norway, Finland, Denmark, Luxembourg, China, the United States, and South Africa. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/31 20:57 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.