Swedbank's board of directors proposes a dividend of SEK 29.80 per share, including an extra dividend of SEK 9.35. This gives a total of SEK 33.7 billion to the owners.
Swedbank's room for distributions has in previous years been hampered by the risk of large US fines, according to CEO Jens Henriksson. This risk has decreased since the US Department of Justice recently closed a lengthy investigation into the bank without taking any action.
"The bank has a strong capital position because the bank withheld dividends for a long time. This is now being returned to our owners," he says.
“There is uncertainty”
Henriksson points out that despite the billions now being distributed, the bank still has a large buffer above regulatory requirements that it can distribute to the owners in the future.
"But there is uncertainty out there. Not least related to the fact that we still have a US investigation," he says.
The bank is reviewing its capital models and taking geopolitical uncertainty into account, according to Henriksson.
SEB's board has decided on a new share buyback program and, like Swedbank, is proposing an extra dividend on top of the regular one. In total, this amounts to almost 23 billion to the owners this year. Nordea is paying a dividend equivalent to 34 billion and is announcing a buyback on top of that.
For the fourth quarter, Swedbank reported a profit before impairments, bank taxes and resolution fees of 11.1 billion, 7 percent lower than the corresponding quarter a year earlier. Net interest income, the difference between deposit and lending rates the bank received during the quarter, fell 12 percent to 10.8 billion. But that was better than the average forecast among analysts, according to Bloomberg.
Net interest income is under pressure
SEB reports an 8 percent drop in profit before items affecting comparability to SEK 9.2 billion for the fourth quarter of last year. Net interest income fell to SEK 10.1 billion. In the fourth quarter of 2024, net interest income was SEK 11.1 billion and the average forecast was SEK 10.2 billion.
At the same time, net commission income rose to 6.8 billion, up from 6.5 billion a year earlier.
Nordea reports an increased profit before loan losses, up 3 percent to EUR 1.56 billion. But Nordea's net interest income is also being squeezed, down 5 percent to EUR 1.76 billion.
Corrected: In a previous version there was an incorrect figure about SEB's buyback program.
