Swedbank AB

Swedbank maintains a capital structure characterized by significant leverage, with total liabilities of 2.84 trillion SEK against total equity of 225.8 billion SEK. The debt-to-equity ratio stands at 4.07, reflecting the asset-light, liability-heavy nature of banking operations. Long-term debt totals 917.9 billion SEK, contributing to a negative net cash position after subtracting total debt from cash equivalents. Operating cash flow is reported as negative 46.3 billion SEK, while free cash flow remains positive at 10.1 billion SEK, supported by minimal capital expenditures of 490 million SEK. The liquidity risk is assessed as medium, consistent with the high leverage and negative net cash flag.

Profitability metrics indicate efficient capital utilization, with a return on equity of 14.13% and a return on assets of 1.04%. Net income reached 32.8 billion SEK on revenue of 44.0 billion SEK, demonstrating a strong net margin profile. While cohort median comparisons are not provided in the input data, the ROE exceeds typical banking benchmarks, suggesting robust earnings power relative to the equity base. The company’s ability to generate positive free cash flow despite negative operating cash flow highlights the importance of non-cash adjustments and working capital dynamics in its earnings quality.

Segment and geographic revenue mix data are absent from the provided input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is broadly classified under Banks, implying a diversified financial services model, but specific segment contributions cannot be quantified from the available data. Without segment-level breakdowns, the assessment of geographic risk or customer concentration remains limited to the aggregate financial snapshot.

Historical revenue and net income trends are not included in the input data, so the growth trajectory cannot be evaluated using multi-period analysis. The current period’s revenue of 44.0 billion SEK serves as the sole data point for performance assessment. In the absence of historical context, the sustainability of the current profitability levels remains unverified by trend data.

Risk assessment identifies dilution risk as low, with no recent share issuance indicated by the identical basic and diluted share counts of 1.12 billion shares. The key flag of negative net cash after debt subtraction underscores the leverage risk inherent in the business model. Liquidity risk is rated medium, requiring ongoing monitoring of cash flow generation and debt maturity profiles. The absence of specific regulatory or geopolitical risk scores in the narrative constraints limits the discussion of external risk factors.

Recent analyst observations indicate a mean price target of 362.56 SEK and a median target of 366.50 SEK, with a mean recommendation of 2.89. The analyst consensus leans towards a hold rating, with eight hold recommendations, five buy ratings, and one strong buy. The high price target of 420.00 SEK and low of 311.00 SEK suggest a wide dispersion in analyst views on the company’s valuation. Competitor context lists JPMorgan Chase, Bank of America, and Citigroup, but no comparative metrics are provided.

Net income grew at an 11.9% CAGR over four years, reaching SEK 32.8 billion in FY2026.

Total assets expanded at a 2.7% CAGR, indicating steady balance sheet growth to SEK 3.06 trillion.

Equity grew at an 8.7% CAGR, reaching SEK 225.8 billion, supporting long-term capital strength.

The debt-to-equity ratio of 4.07 places Swedbank in the bottom quartile of the bank cohort.

Net income fell 6.0% year-over-year to SEK 32.8 billion, marking the first decline in the period.

Cash conversion of -1.45 ranks in the bottom quartile, indicating poor translation of earnings to cash.

Revenue kr 11.15B, −3,0% YoY; Net income −10,4% YoY.

• ▍Revenue kr 11.15B, −3,0% YoY
• ▍Net income −10,4% YoY
• ▍Free cash flow −396,4% YoY
• ▍Net margin 65.9%

Revenue kr 10.78B, −12,2% YoY; Net income −3,6% YoY.

• ▍Revenue kr 10.78B, −12,2% YoY
• ▍Net income −3,6% YoY
• ▍Free cash flow −3,3% YoY
• ▍Net margin 75.8%

Revenue kr 10.82B, −11,5% YoY; Net income −9,2% YoY.

• ▍Revenue kr 10.82B, −11,5% YoY
• ▍Net income −9,2% YoY
• ▍Free cash flow −8,6% YoY
• ▍Net margin 78.7%

Revenue kr 10.92B, −10,3% YoY; Net income −8,2% YoY.

• ▍Revenue kr 10.92B, −10,3% YoY
• ▍Net income −8,2% YoY
• ▍Free cash flow −99,9% YoY
• ▍Net margin 72.2%

Revenue kr 11.49B; Net margin 71.3%.

• ▍Revenue kr 11.49B
• ▍Net margin 71.3%

Revenue kr 12.27B; Net margin 69.0%.

• ▍Revenue kr 12.27B
• ▍Net margin 69.0%

Revenue kr 12.23B; Net margin 76.7%.

• ▍Revenue kr 12.23B
• ▍Net margin 76.7%

Revenue kr 12.17B; Net margin 70.6%.

• ▍Revenue kr 12.17B
• ▍Net margin 70.6%

Revenue kr 44.00B, −10,7% YoY; Net income −6,0% YoY.

• ▍Revenue kr 44.00B, −10,7% YoY
• ▍Net income −6,0% YoY
• ▍Free cash flow −48,5% YoY
• ▍Net margin 74.5%

Revenue kr 49.27B, −3,3% YoY; Net income +2,2% YoY.

• ▍Revenue kr 49.27B, −3,3% YoY
• ▍Net income +2,2% YoY
• ▍Free cash flow −19,2% YoY
• ▍Net margin 70.8%

Revenue kr 50.93B, +53,7% YoY; Net income +59,7% YoY.

• ▍Revenue kr 50.93B, +53,7% YoY
• ▍Net income +59,7% YoY
• ▍Free cash flow +140,4% YoY
• ▍Net margin 67.0%

Revenue kr 33.15B, +22,6% YoY; Net income +2,4% YoY.

• ▍Revenue kr 33.15B, +22,6% YoY
• ▍Net income +2,4% YoY
• ▍Free cash flow +70,5% YoY
• ▍Net margin 64.5%