Summary of Conference Call Notes Company Overview - The conference call primarily discusses **Swedbank**, a major banking institution in Sweden, focusing on its performance metrics and market position. Key Points Industry and Market Performance - **Corporate Lending Growth**: In October, corporate lending in Sweden grew by **2.2%** year-on-year, while Swedbank's corporate lending grew by **3.9%**, increasing its market share to **15.1%** [1] - **Retail Deposits**: Retail deposits in Sweden increased by **4.7%** year-on-year, with Swedbank's retail deposits growing by **4.3%**. The bank's market share for retail deposits stood at **17.6%** [1] - **Baltic Market Growth**: Total lending in the Baltic countries rose by **14.3%** year-on-year, with private lending increasing by **12.3%** and corporate lending by **16.7%**. Total deposits in the Baltics grew by **7.1%** [1] Financial Metrics - **Interest Rates**: As of December 12, Swedbank maintained a **0%** interest rate on transaction accounts, with some increases in fixed accounts in Estonia [2] - **Asset Management Fees**: The Swedish, US, and European stock markets saw increases of **6%**, **5.2%**, and **4.1%** respectively, impacting asset management fees positively [2] - **VAT Refunds**: Swedbank announced VAT refunds totaling **SEK 837 million** from overpaid VAT for the years 2019, 2020, 2022, and 2023, which will affect the cost line [4] Cost Management - **Full Year Cost Guidance**: The expected cost for the full year 2025 is around **SEK 25.3 billion**, which includes VAT recoveries and lower temporary investments [4] - **Impact of Entercard Acquisition**: The acquisition of Entercard is expected to negatively impact CT1 capital by approximately **40 basis points** due to increased risk-weighted assets [6] Loan Losses and Credit Quality - **Loan Loss Impact**: The acquisition of Entercard is expected to add **one to two basis points** to Swedbank Group's loan loss ratio, with historical loan loss levels for Entercard being higher [8][9] - **Asset Quality**: As of the end of Q3, asset quality post-model adjustment stood at **SEK 398 million**, following a release of **SEK 196 million** [5] Other Important Information - **IRB Models**: Swedbank has resubmitted its IRB models for the Baltics and is in the process of model approvals, with no new information reported [12] - **Upcoming Reports**: The Q4 report is scheduled for release on **January 29**, with a silent period starting on **January 13** [16] Conclusion The conference call provided insights into Swedbank's performance in the Swedish and Baltic markets, highlighting growth in lending and deposits, as well as strategic cost management and the implications of recent acquisitions. The bank's focus on maintaining asset quality and managing loan losses will be critical as it navigates the evolving financial landscape.