Swedbank Q1 2026 Pre-Close Call Summary Company Overview - **Company**: Swedbank (OTCPK:SWDB.F) - **Date of Call**: March 31, 2026 Key Points Industry and Market Trends - The quarter had 2 fewer days compared to the previous quarter, negatively impacting Net Interest Income (NII) by approximately SEK 50 million per day and Net Commission Income (NCI) by SEK 20 million per day [2] - The Swedish krona depreciated against the U.S. dollar and euro by the end of March, but appreciated on average during the quarter compared to the previous quarter [2] - The Riksbank policy rate remained unchanged at 1.75%, while the ECB's policy rate was also unchanged at 2% [2] Financial Performance - The 3-month STIBOR increased by 9 basis points on average compared to the fourth quarter, with a sharp rise of 22 basis points at the end of the quarter [3] - Mortgage list prices in Sweden were adjusted, with a decrease of 15-20 basis points on February 17 and an increase of 30-40 basis points on March 24 [4] - Actual mortgage prices fell by 2 basis points on three-month fixings in the first two months of the quarter, compared to a decrease of 11 basis points in the previous quarter [4] Market Share and Volumes - Swedbank's mortgage volumes increased by SEK 2 billion or 13.4% of the total market increase in the first two months of the quarter [5] - Corporate lending volumes grew by SEK 3.3 billion, representing 13.4% of total market growth, with a market share of 15% at the end of February [6] - Retail deposits grew by SEK 13 billion, with Swedbank accounting for SEK 6.2 billion, or 46.1% of market growth [6] Baltic Region Insights - Total lending in the Baltics increased by 13.7% year-on-year in January, with private lending up by 12.7% and corporate lending by 14.8% [6] - Total deposits in the Baltics increased by 8.3% year-on-year, with private deposits growing by 9.3% [7] Commission Income and Expenses - The Swedish stock market increased by 9.6% up to March 27, impacting asset management fees [9] - The Swedish mutual fund market had net inflows of approximately SEK 15 billion in January and February, down from SEK 80 billion in the fourth quarter [9] - Commission expenses are impacted by large investments in transforming the Swedish payment system, with a cost guidance of around SEK 27.5 billion for 2026 [10][11] Tax and Regulatory Changes - The bank tax in Sweden was adjusted, with a base deduction introduced in 2026, raising the tax rate to 7 basis points [11] - Latvia's NII tax is in its second year, while Lithuania abolished its NII tax for 2026 [12] Future Outlook - The integration of Entercard and the sale of its consumer finance portfolio will be updated in the Q1 report [14][18] - The impact of higher commission expenses due to payment system reforms is expected to continue throughout 2026 [26] Additional Notes - The call emphasized the importance of monitoring macroeconomic indicators and their effects on Swedbank's financial performance [1] - The next Q1 report is scheduled for release on April 29, 2026 [40]

Core Viewpoint - Colony Bankcorp, Inc. has received affirmation of its credit ratings from Kroll Bond Rating Agency, indicating stability in its financial standing and creditworthiness [1] Ratings Summary - The senior unsecured debt rating of Colony Bankcorp is affirmed at BBB [1] - The subordinated debt rating is affirmed at BBB- [1] - The short-term debt rating is affirmed at K3 [1] - Colony Bank's deposit and senior unsecured debt ratings are affirmed at BBB+ [1]

Core Viewpoint - The company expects to improve its Return on Equity (ROE) significantly, with a notable contribution from its Canadian banking segment, which reported an ROE of 18.1% in the first quarter, up 140 basis points year-over-year [1]. Group 1: ROE Improvement Strategies - The Canadian bank's performance is a key driver for overall ROE improvement at the enterprise level [1]. - Four key levers are identified to enhance ROE from the current base [1]. Group 2: Business and Product Mix - The first lever involves improving the business and product mix, specifically increasing non-mortgage loan balances and shifting deposits towards more day-to-day checking accounts [2]. Group 3: Risk-Adjusted Margins (RAM) - The second lever focuses on risk-adjusted margins, with three main drivers: stabilizing or increasing interest rates, a significant mortgage repricing expected in 2027, and the normalization of Provision for Credit Losses (PCL) [2].

Core Insights - Deutsche Bank AG's retail business in India is being acquired by Kotak Mahindra Bank for approximately $480.3 million, which includes retail loans and deposits, personal loans, mortgages, small-business lending, and parts of its wealth business [1][11] Group 1: Strategic Restructuring - The acquisition aligns with Deutsche Bank's restructuring strategy under CEO Christian Sewing, focusing on improving profitability by pruning non-core operations globally [2] - Deutsche Bank's "Global Hausbank" strategy emphasizes businesses that leverage its global reach and capital-light model, with continued investment in corporate, investment, and private banking in India [3] Group 2: Financial Performance and Future Outlook - Deutsche Bank is reducing reliance on volatile businesses and focusing on steadier operations, with corporate banking, private banking, and asset management contributing 67.5% to total revenues as of December 31, 2025 [4][11] - The bank aims for revenues exceeding €37 billion ($42.9 billion) by 2028, targeting a compound annual revenue growth of over 5% through 2028, driven by asset gathering, payments, and advisory services [5] Group 3: Market Context - Over the past year, Deutsche Bank's shares have increased by 15.9% on the NYSE, compared to the industry's growth of 27.8% [10]

Core Viewpoint - Woori Financial Group Inc. is highlighted as one of the best Korean stocks to buy, with recent audited financial statements indicating strong asset growth and stable net income [1][3]. Financial Performance - The total assets of Woori Financial Group surged to KRW 601.5 trillion in 2025, up from KRW 525.8 trillion in 2024, driven by loan growth, an expanded securities portfolio, and the consolidation of two newly acquired insurance subsidiaries [3]. - The net income for the group was reported at KRW 3.23 trillion, showing a year-over-year stability [3]. - Credit loss provisions were recorded at KRW 3.36 trillion under the expected credit loss model [3]. Subsidiary Performance - Woori Bank, the wholly-owned banking arm of the group, experienced a decline in net income to KRW 2.58 trillion from KRW 3.05 trillion in 2024, attributed to rising credit costs and higher expenses [4]. Company Overview - Woori Financial Group Inc. operates as a financial holding company in South Korea, providing a range of services including banking, credit cards, securities, and asset management through its subsidiaries [5].

Core Insights - Nu Holdings has successfully acquired over 120 million users across Brazil, Mexico, and Colombia, shifting focus from customer acquisition to monetization quality [1][2] - The company aims to deepen relationships with existing customers rather than solely increasing user numbers, as evidenced by the rise in average revenue per active customer (ARPAC) [3][4] Customer Growth and Revenue - Nu Holdings' previous focus was on customer expansion, attracting millions with no-fee accounts and simple onboarding [2] - The average revenue per active customer has increased to over $12 per month, with mature cohorts generating nearly $27 per month [3] Monetization Strategies - There are two primary paths for increasing revenue per user: expanding unsecured lending and diversifying into investments, insurance, payments, and deposits [5] - Expanding unsecured lending can quickly boost revenue but increases risk, while diversifying into other financial services can create a more stable revenue stream [6] Growth Quality and Stability - The quality of growth is defined by the mix of revenue sources; reliance on riskier lending makes earnings cyclical, while a diversified ecosystem enhances stability [6][7] - In 2025, Nu Holdings expanded its lending portfolio and broadened offerings in investments and protection products, which could provide fee-based income [7] Importance of Deposits - An important aspect of monetization quality is the accumulation of deposits, which lowers funding costs and strengthens net interest margins [10] - A growing deposit base reduces reliance on wholesale funding and enhances resilience during economic stress [10]

Financial Data and Key Metrics Changes - In Q4 2025, Banco Macro's net income totaled ARS 100 billion, with a fiscal year total of ARS 290.7 billion, recovering from a loss in the previous quarter but 26% lower than Q4 2024 [4] - Excluding ARS 82.9 billion of non-recurring expenses in Q4 2025, net income would have been ARS 183 billion, and fiscal year 2025 net income would have been ARS 393.7 billion, with accumulated ROE and ROA at 6.6% and 1.8% respectively [5][6] - Total comprehensive income for fiscal year 2025 was ARS 303 billion, 1% higher than fiscal year 2024 [5] Business Line Data and Key Metrics Changes - In Q4 2025, net interest income was ARS 836.5 billion, a 13% increase from Q3 2025 and a 19% increase year-on-year [7] - Provision for loan losses in Q4 2025 totaled ARS 169.3 billion, 1% lower than Q3 2025 but 243% higher year-on-year [7] - Other operating income in Q4 2025 was ARS 73.3 billion, 3% lower than Q3 2025 but 13% higher year-on-year [13] Market Data and Key Metrics Changes - Total financing reached ARS 10.71 trillion, increasing 2% quarter-on-quarter and 40% year-on-year [19] - Total deposits increased 8% quarter-on-quarter to ARS 13.7 trillion and 24% year-on-year [20] - Banco Macro's market share of private sector loans as of December 2025 was 8.3%, up 30 basis points from December 2024 [19] Company Strategy and Development Direction - The bank aims to optimize its excess capital of ARS 3.6 trillion, with a Capital Adequacy Ratio of 30.6% [22] - The bank plans to continue reducing its branch network and headcount while gaining market share in private sector loans and deposits [16][17] - The strategy includes maintaining a tight monetary policy and focusing on reducing inflation while ensuring fiscal surplus [45] Management's Comments on Operating Environment and Future Outlook - Management expects a real growth of 20% in loans and 6% in deposits for 2026, adjusting for macroeconomic changes [28][29] - The cost of risk is projected to decrease to 5.2% in 2026, with NPLs expected to trend down to mid to low threes [91] - The government is expected to introduce tax reforms and continue with labor reforms, which could positively impact the banking sector [42][46] Other Important Information - The bank's net interest margin in Q4 2025 was 21.7%, higher than Q3 2025 but lower than Q4 2024 [12] - The restructuring expenses of ARS 82.9 billion in Q4 2025 were related to early retirement plans and severance payments [5][15] - The bank's liquidity remains strong, with a liquid assets to deposit ratio of 73% [22] Q&A Session Summary Question: Update on guidance after the election - Management indicated a potential modification in guidance due to reduced GDP growth expectations and higher inflation forecasts for 2026 [28][29] Question: Recurring nature of security gains - Management attributed the strong security gains in Q4 to a reversal of trends from previous volatility, with a positive outlook on local peso securities [30] Question: Gap between loans and deposits - Management explained that while loan growth is expected to outpace deposit growth, they have securities to finance any gaps [32] Question: Consumer asset quality and cost of risk - Management noted a reduction in the speed of deterioration in consumer asset quality and expects a stable outlook for early 2026 [38] Question: Political landscape and reforms - Management highlighted the government's focus on labor and tax reforms, which are expected to improve the economic landscape [42][46] Question: Mark to market on securities - Management discussed the volatility of trading gains and suggested modeling based on inflation expectations [52] Question: Risk-adjusted NIMs for 2026 - Management indicated that Q4 2025 is a reasonable starting point for risk-adjusted NIMs, with slight pressure expected going forward [57] Question: Impact of restructuring costs on ROE - Management estimated that restructuring charges would impact ROE by approximately 3 percentage points in 2026 [79]

Financial Data and Key Metrics Changes - Annual net income totaled COP 3.8 trillion, with a return on equity (ROE) of 9.1%, impacted by a non-cash impairment charge. Excluding this effect, net income would have reached COP 7.3 trillion, resulting in an ROE of 17.2% [5][28] - The group achieved a 14.6% annual dividend growth, exceeding inflation by over 950 basis points [6] - The price-to-book ratios improved, and P/E multiples indicated increased market confidence [7] Business Line Data and Key Metrics Changes - The loan portfolio declined by 8.3% year-over-year, but would have grown by 2.1% without accounting impacts. Mortgages led growth, while consumer lending regained momentum [16][17] - Deposits reported a 5.2% contraction, but expanded by 4.5% absent accounting impacts, with a 10.2% growth when excluding foreign exchange effects [18] - Net interest income decreased by 5.3% annually, but recorded a 1% expansion excluding accounting impacts [19] Market Data and Key Metrics Changes - The Colombian economy demonstrated moderate resilience with a growth of 2.6% in 2025, supported by consumer spending and government expenditures [8][9] - Inflation closed at 5.1%, with expectations rising sharply, leading to a stable monetary policy rate being ineffective [10] Company Strategy and Development Direction - Grupo Cibest's new holding structure improved capital allocation, enabling higher dividends and share buybacks [4] - The company aims for loan growth of 7%-8% in 2026, with a net interest margin expected between 6.8% and 7% [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from inflation and rising interest rates but expressed confidence in managing these risks [37][38] - The company is prepared for macroeconomic challenges and believes in the resilience of the Colombian economy [38] Other Important Information - Nequi and Wompi reached breakeven in Q4 2025, marking significant progress in digital businesses [5][23] - The company plans to invest approximately COP 600 billion in Nequi and COP 50 billion in both Wenia and Wompi [68] Q&A Session Summary Question: Outlook for asset quality and cost of risk guidance - Management acknowledged the need to manage cost of risk amid high inflation and interest rates, indicating preparedness for economic uncertainty [36][37] Question: Capital allocation and potential for additional buybacks - Management confirmed flexibility in capital management and commitment to support operations in Guatemala, targeting double-digit ROE for Banco Agromercantil [40][41] Question: Tax implications and effective tax rate guidance - Management indicated uncertainty regarding taxes but projected an effective tax rate of 28% for guidance, incorporating potential additional taxes [52][54] Question: Operating expenses growth and impact of salary increases - Management expects operating expenses to grow in line with inflation, with some increases due to vendor service costs tied to minimum wage adjustments [80] Question: Capital deployment and double leverage - Management plans to invest significantly in digital ventures and indicated a comfortable double leverage limit of 120% [69]

Core Insights - LHV Group reported higher profitability and growth in business volumes for January 2026, with a consolidated net profit of EUR 7.2 million, exceeding financial forecasts by EUR 0.4 million [2][3] Group Performance - The consolidated loan portfolio increased by EUR 51 million to EUR 5.52 billion, while total deposits decreased by EUR 214 million to EUR 7.92 billion [1] - The volume of funds managed by LHV rose by EUR 13 million to EUR 1.72 billion, with 8.7 million payments processed related to financial intermediaries [1] Subsidiary Performance LHV Pank - LHV Pank's customer base grew by 3,200 to 495,000, with a loan portfolio reaching EUR 4.71 billion, an increase of EUR 24 million [4] - Deposits decreased by EUR 259 million to EUR 6.71 billion, with net profit exceeding the financial plan by EUR 0.3 million [4] LHV Bank - LHV Bank in the UK saw its loan portfolio increase by EUR 26 million to EUR 809 million, with deposits also rising by EUR 26 million to EUR 1.31 billion [5] - The customer base increased by 600, and net profit exceeded the financial plan by EUR 0.2 million [5] LHV Varahaldus - LHV Varahaldus reported strong performance with significant increases in fund values, including a 4.7% rise in the Julge fund and a 3.0% rise in the Ettevõtlik fund [6] - Net profit for January exceeded the financial plan by EUR 0.2 million [6] LHV Kindlustus - LHV Kindlustus concluded new insurance contracts totaling EUR 7.1 million, with approximately 306,000 contracts in force [7] - The net loss ratio increased to 86.5% due to adverse weather conditions, and overall results were EUR 0.6 million below the financial plan [7] Company Overview - LHV Group is the largest domestic financial group in Estonia, with key subsidiaries including LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited [8] - The group employs around 1,200 people and serves 495,000 customers through LHV Pank, with 105,000 active customers in pension funds and 233,000 customers in insurance [8]

Core Viewpoint - SouthState Bank Corporation (SSB) is recognized as one of the top bank stocks to consider for investment in 2026, with a positive outlook from UBS following strong Q4 2025 results [1][2]. Financial Performance - SSB reported a significant net income growth of 71.8% year-over-year (YoY) in Q4 2025, reaching $247.7 million, up from $144.2 million [3]. - Diluted earnings per share increased by 31.6% YoY to $2.46, compared to $1.87 in the previous year [3]. - Return on average assets improved by 24 basis points YoY to 1.47%, while return on common equity rose by 178 basis points YoY to 10.90% [3]. Revenue Drivers - The strong earnings growth was primarily fueled by a 57.2% YoY increase in net interest income (NII), totaling $581.1 million, up from $369.8 million [4]. - Net interest margin (NIM) expanded by 38 basis points YoY to 3.86%, with average earning asset yields improving by 46 basis points YoY to 5.62% [4]. Asset Growth - Earning assets grew by 41.5% YoY to $59.9 billion, with a notable 43.0% expansion in the loan book, increasing from $33.8 billion to $48.4 billion [5]. - This growth in earning assets was primarily funded by a $17.1 billion YoY increase in deposits, rising from $38.1 billion to $55.1 billion [5]. Asset Quality - Asset quality remained stable, with a slight increase in the net charge-off ratio to 0.09% YoY, while the allowance for credit loss percentage improved to 1.20% [6]. - Provisions for credit losses grew modestly by 3.6% YoY to $6.6 million [6]. Shareholder Actions - The board of directors approved a new stock purchase plan, allowing the repurchase of 5.56 million common shares, approximately 5.6% of the company's weighted average common shares outstanding as of December 31, 2025 [7].