Swedbank reported second-quarter 2026 net profit of SEK 7.2 billion on Friday, with earnings per share of SEK 6.37 and an adjusted return on equity of 15.5%, with higher commission income and trading gains lifting total income to SEK 18.1 billion.
Extraordinary restructuring costs weighed on reported figures, with return on equity of 14.2% on a reported basis against 15.5% on an adjusted basis.
COMMISSION INCOME UNDERPINS RESULT
Net commission income rose 7% from the first quarter to SEK 4.5 billion, driven by strong stock market performance and net inflows to assets under management. Net interest income rose 1% from the first quarter.
Adjusted return on equity of 15.5% compares with the target of at least 15% under the bank's Swedbank 15/27 plan, which also caps the cost-to-income ratio at 0.40.
Chief executive Jens Henriksson pointed to SEK 22 billion of net savings inflows in the quarter.
RESTRUCTURING COSTS WEIGH
Expenses in the quarter included extraordinary restructuring costs of SEK 860 million. Excluding these costs, expenses rose 2% from the first quarter, and the adjusted cost-to-income ratio was 0.39.
Swedbank expects extraordinary costs of about SEK 1.3 billion for full-year 2026, on top of cost guidance of SEK 27.5 billion that excludes extraordinary costs and currency effects.
Total expenses rose 28% year on year to SEK 7.85 billion, including the restructuring costs. Henriksson said Swedbank continued to execute its 15/27 strategic plan, highlighting strong lending growth across its home markets.
Swedbank reported after Nordic peers DNB, SEB, Handelsbanken and Nordea had published second-quarter results earlier in the week. Danske Bank also reported its second-quarter results on 17 July.
Swedbank also said it had reached a settlement with the New York Department of Financial Services, closing all of its historical investigations.