Swedbank (OTCPK:SWDB.F) Update / Briefing December 17, 2025 04:30 AM ET Company ParticipantsMaria Caneman - Head of Investor RelationsMaria CanemanOf which Savings Banks' volumes on our balance sheet constitute 3.7 percentage points. Correspondingly, according to Statistics Sweden, the corporate lending in October grew by 2.2% year-on-year, while Swedbank's volumes grew by 3.9%. Swedbank's market share increased slightly to 15.1% at the end of October. Retail deposits in Sweden grew in October by 4.7% year- ...

The European Central Bank has identified significant deficiencies in risk models of top Swedish lenders SEB and Swedbank for their operations in Baltic countries https://t.co/GcGhgfYSbR ...

Core Viewpoint - Swedbank (SWDBY) is highlighted as a strong investment opportunity due to its robust earnings growth and attractive dividend yield [1]. Company Summary - Swedbank is a leading Nordic-Baltic banking group serving retail and corporate customers in Sweden, Estonia, Lithuania, and Latvia [1]. - The Zacks Consensus Estimate for Swedbank's current year earnings has increased by 5.1% over the last 60 days [1]. - The company holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [1]. - Swedbank offers a dividend yield of 6.3%, significantly higher than the industry average of 2.8% [1].

Core Insights - Three stocks are highlighted with strong buy rankings and momentum characteristics for investors to consider on November 19th Group 1: Tactile Systems Technology (TCMD) - Tactile Systems Technology is a medical technology company focused on developing devices for chronic disease treatment at home [1] - The company has a Zacks Rank of 1 (Strong Buy) and its current year earnings estimate has increased by 29% over the last 60 days [1] - Tactile Systems Technology's shares have gained 80% over the last three months, significantly outperforming the S&P 500's gain of 3.2% [2] - The company possesses a Momentum Score of A [2] Group 2: Swedbank (SWDBY) - Swedbank is a leading Nordic-Baltic banking group serving retail and corporate customers in Sweden, Estonia, Lithuania, and Latvia [2] - The bank has a Zacks Rank of 1 and its next year earnings estimate has increased by 1.5% over the last 60 days [2] - Swedbank's shares have gained 6.5% over the last three months, also outperforming the S&P 500's gain of 3.2% [3] - The company possesses a Momentum Score of A [3] Group 3: Naspers (NPSNY) - Naspers is a multinational media group with operations in pay television, Internet subscriber platforms, print media, book publishing, private education, and technology markets [3] - The company has a Zacks Rank of 1 and its current year earnings estimate has increased by 20.7% over the last 60 days [3] - Naspers' shares have gained 6.7% over the last three months, again outperforming the S&P 500's gain of 3.2% [4] - The company possesses a Momentum Score of B [4]

Automotive Sector - Tesla (TSLA) experienced a dramatic decline in new registrations in Denmark, falling by 86% year-on-year in October, despite an overall increase in car sales and a high adoption rate of electric vehicles in the market, where EVs constituted over 70% of new registrations [3][9] - The Volkswagen Group is gaining significant market share in Denmark, dominating the top 10 list of new registrations [3] Commodity Markets - Aluminum prices are approaching a three-year high, with prices rising to $2,892.55 USD per tonne, representing an 11.04% increase compared to the same period last year, driven by easing US-China tensions and strong demand from sectors like renewable energy and transportation [4][9] Economic Indicators - Switzerland's Consumer Price Index (CPI) for October reported an annual inflation rate of 0.1%, missing the estimated 0.3% and falling from 0.2% in September, indicating persistent low inflationary pressures [5][9] - Sweden's Swedbank/Silf PMI Manufacturing registered 55.1 in October, a slight decrease from the previous month's 55.5, suggesting a moderation in growth momentum while still indicating expansion in the manufacturing sector [6] Corporate Ratings - Goldman Sachs downgraded Remy Cointreau (RCO) to Neutral from Buy, reducing its target price from €65 to €50, citing low visibility for recovery and weak demand for cognac in the United States and China [7][9] - JP Morgan added Alphabet Inc. (GOOGL, GOOG) to its US Analyst Focus List, maintaining an "Overweight" rating and raising its price target for Alphabet to $340 from $300 [8]

Group 1: Tesla Earnings and CEO Remarks - Tesla shares declined after missing earnings forecasts, with a 29% year-over-year profit drop and a nearly halved operating margin despite record car sales [16][31][15] - CEO Elon Musk defended his proposed $1 trillion pay package, criticizing advisory firms ISS and Glass Lewis for their recommendations against it, labeling them as "corporate terrorists" [18][19][14] - Musk emphasized the importance of maintaining influence over Tesla's direction, particularly regarding AI developments, as part of the rationale for the pay package [23][22][21] Group 2: Unilever Financial Performance - Unilever reported a 3.9% underlying sales growth in Q3, with total sales reaching €14.8 billion, driven by a mix of volume and price increases [10][8][9] - The company anticipates lower restructuring costs and confirmed its full-year outlook, although its defensive market position is questioned due to muted share price growth [7][9][6] - Unilever's dividend yield stands at 3.3%, which some investors find less compelling compared to risk-free alternatives [8][10] Group 3: Sanctions on Russian Oil Firms - The US imposed new sanctions on Russia's two largest oil companies, aiming to pressure Moscow amid ongoing conflict [4][39][41] - The EU adopted a 19th sanctions package against Russia, including a phased ban on LNG imports, reflecting a commitment to reducing reliance on Russian energy [46][50][47] - The sanctions are expected to impact global oil prices, with crude prices rising sharply following the announcement [38][39][40] Group 4: Swedbank Financial Results - Swedbank reported a net profit of 1 billion Swedish kronor in Q3, exceeding expectations, although the overall economic outlook remains weak [58][61] - The CEO expressed optimism for a 2% growth in Sweden's economy next year, highlighting strong public finances in its home markets [61][62] - Credit quality improved, with net positive credit impairments, indicating a robust lending environment [64][66]

Market Overview - European stocks are expected to open slightly lower as investors await earnings reports that may indicate business activity and confidence in the region [1] - Major European indices such as the U.K.'s FTSE, Germany's DAX, and France's CAC 40 are projected to open around the flatline, while Italy's FTSE MIB is anticipated to open 0.17% lower [2] Earnings Reports - A busy day for earnings in Europe includes reports from notable companies such as Kering, Roche Holding, Unilever, Vinci, Thales, LSEG, Dassault Systemes, Antofagasta, Swedbank, Nokia, and Lloyds Banking Group [2] - U.S. stock futures edged lower as investors processed quarterly earnings from companies like Tesla, IBM, Moderna, and Lam Research, with Tesla shares dipping 3% and IBM shares shedding about 6% [5] Oil Market - Oil prices are in focus after a 3% increase in the previous session due to new sanctions imposed by the Trump administration on Russia's major crude companies, Rosneft and Lukoil [3] - The sanctions were a response to Russia's lack of commitment to a peace process regarding the war in Ukraine [3] Trade Relations - Trade fears have resurfaced as reports indicate the Trump administration is considering export curbs to China on items made with U.S. software, which could affect a wide range of products [4] - The potential plan may not move forward, and other options are also being discussed [4] Economic Data - Investors are closely monitoring earnings releases, which are seen as critical for the current bull market rally [6] - Upcoming data releases in Europe include French business confidence and Spanish trade figures [6]

Core Insights - The Group has signed a EUR 318 million project financing agreement for the Kelmė wind farm, the largest in the Baltics, with a total investment of EUR 550 million [1][3] Financing Details - The Loan is provided by a consortium of lenders including the European Investment Bank, Swedbank AB, European Bank for Reconstruction and Development, and Nordic Investment Bank, with a term of 15 years [2] Project Specifications - The Kelmė wind farm has a combined installed capacity of 314 MW and is capable of supplying electricity to 250,000 Lithuanian households [3] Strategic Goals - The Group aims to increase its Green Capacities from 1.4 GW in 2024 to 4–5 GW by 2030, currently having installed Green Capacities of 2.1 GW [4]

Core Points - PST Group AB has signed a €19 million contract with Swedbank for the renovation of an administrative building in Vilnius [1] - The renovation will involve fundamental updates to all three wings of the building, focusing on modern work models and increased comfort [2] - The project will adhere to sustainability principles, emphasizing material selection, energy efficiency, and responsible waste management [3] Company Summary - PST Group AB is responsible for the interior renovation works of a building constructed in 2009, with a new renovation project designed by DO Architects [1] - The renovation aims to create a modern and environmentally friendly building that meets high sustainable construction standards [3] Industry Summary - The project reflects a trend in the construction industry towards modernizing workspaces to enhance efficiency and comfort while prioritizing environmental sustainability [2][3]

Summary of Swedbank Q3 2025 Pre-Close Call Company Overview - **Company**: Swedbank - **Event**: Q3 2025 pre-close call Macro Environment - The quarter had one additional day, positively impacting Investor Relations (IR) and Net Commission Income (NCI) [2] - The Swedish krona appreciated against the US dollar and euro by the end of September, with average quarter-on-quarter movements showing appreciation against the dollar and depreciation against the euro [2] - The Riksbank reduced the policy rate by 25 basis points to 1.75% effective October 1st, with no further cuts expected in the near future [2] Financial Performance - The European Central Bank (ECB) maintained its policy rate, with three-month and six-month interest rates declining by 17 and 4 basis points respectively [3] - The Swedish loan book typically reprices in three months, while the Baltic loan book takes six months, leading to a quicker positive effect from policy rate cuts on liabilities compared to assets [3] - Mortgage rates in Sweden decreased by approximately 30 basis points during the quarter [4] - Market mortgage volume in Sweden increased by 2.4% in August, while Swedbank's total volumes slightly declined by 0.1%, maintaining a market share of 22% [5] - Corporate lending in Sweden grew by 2.4% year-on-year, with Swedbank's volumes increasing by 4%, keeping a market share of 15% [5] - Retail deposits in Sweden grew by 5.3% year-on-year, while Swedbank's retail deposits increased by 4.8% [6] - Total lending in the Baltic countries rose by 12% year-on-year, with private lending up by 11% and corporate lending by 14% [6] Commission Income and Expenses - Asset management fees were positively impacted by stock market performance, with Swedish, U.S., and European markets increasing by 6.4%, 12.1%, and 3.3% respectively [8] - Card activity typically sees seasonal increases in the third quarter [9] - The company expects actual costs to be lower than the guidance of 26.5 billion SEK due to VAT recoveries and temporary investments [9] Capital and Regulatory Updates - The balance sheet is influenced by end-of-period foreign exchange rates, particularly from RWAs in the Baltics denominated in euros [10] - The updated Common Equity Tier 1 (CT1) requirement will be included in the end Q3 report [10] Acquisitions and Future Outlook - The acquisitions of Stabilo and MT-Card are pending regulatory confirmations, with expectations for closure in the fourth quarter [13] - SB1 Markets launched on September 1st and will be included in other income starting from Q4 [13] Additional Notes - No updates were provided regarding VAT recoveries for 2019 to 2023 [14] - The company will enter a silent period on October 9th, with the Q3 report scheduled for release on October 23rd at 7:00 A.M. CET [15]