Q4 2024 Swedbank AB Earnings Call Transcript
Key Points
- Swedbank AB (SWDBF) delivered a strong financial performance in 2024, with a 2% increase in profit compared to the previous year.
- The company maintained a solid return on equity of 17.1% for the full year and 15.8% for the fourth quarter.
- Swedbank AB (SWDBF) has a strong capital position, with a CET1 capital ratio of 19.8%, providing a buffer of around 460 basis points above requirements.
- The Board of Directors has proposed a dividend of SEK21.70 per share, corresponding to 70% of the profit, reflecting a new dividend policy of 60% to 70% payout.
- The company has shown strong growth in its Baltic operations, with increased lending and deposits, and a focus on sustainable finance, as evidenced by the growth of its Sustainable Asset Register.
- Net interest income declined during 2024, with challenges in maintaining stable income due to timing effects and lower customer interest rates.
- Swedbank AB (SWDBF) faced increased competition in the Swedish mortgage market, leading to a slight decline in mortgage volumes in the third and fourth quarters.
- The introduction of new bank taxes in Latvia and Lithuania is expected to impact the company's business strategy and profitability in these regions.
- The company is dealing with uncertainties related to ongoing US investigations, which could potentially result in fines, affecting capital reserves.
- Swedbank AB (SWDBF) is experiencing muted corporate loan demand in Sweden, impacting overall lending growth.
Ladies and gentlemen, welcome to the Swedbank Interim Report Q4 2024 Conference Call. I'm Sandra, I'm the Chorus Call operator. (Operator Instructions) and the conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Annie Ho, Head of IR. You will now be joined into the conference room.
Good morning, and thank you for dialing into Swedbank's Q4 and Year-end 2024 Results Presentation. My name is Annie Ho, Head of Investor Relations, and we have our C-suite here in the room with me: Jens Henriksson, our CEO; and for the first time, Jon Lidefelt, our CFO; and Rolf Marquardt, our CRO. Let's start with our usual presentation and then follow up with Q&A. Jens, I hand over to you.
Thank you, Annie. Swedbank has once again delivered a strong result supported by timing effects. We are creating value
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