Swedbank Reports Q4 Earnings Growth Despite Revenue Decline

Swedbank shows slight profit improvement in Q4. Full year profit reflects growth amid declining total income and net interest income.

Date: 23-01-2025

AI Rating: 6

Earnings Per Share (EPS)
Swedbank reported an EPS of 7.50 kronor for the fourth quarter, up from 7.38 kronor in the previous year. For the full year, the EPS was 30.86 kronor, compared to 30.27 kronor last year, indicating positive growth in earnings.

Net Income
The fourth quarter profit of 8.46 billion Swedish kronor represents a 2% increase from the prior year. Similarly, full year profit reached 34.9 billion kronor, also reflecting a 2% increase.

Revenue Growth
Total income for the fourth quarter was reported at 18.63 billion Swedish kronor, which is a decline of 2% year-on-year. Additionally, net interest income decreased by 8% to 12.27 billion Swedish kronor. This decline in both total income and net interest income could potentially impact stock prices negatively.

Overall Assessment
While the EPS and net income showed positive growth, the decline in total income and net interest income raises concerns about the bank's revenue health. Investors might interpret the mixed results as a reason for caution, especially in light of the revenue decline. Thus, Swedbank's stock could be influenced by these dynamics.

Stocks: SWDBY