Profit of SEK 8,249m fell 3% from a year earlier but rose 15% from Q2 2. Income grew 5% while expenses rose 23%, and a SEK 543m credit-impairment release offset much of SEK 673m in one-off costs 27.
Swedbank · Q3 2026 · Reported 22 Oct 2026 · Nordic
Key figures
Billion SEK | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 11.32 | 12.02 | -5.8 % |
Operating profit | 4.23 | 5.66 | -25.2 % |
Net income | 3.20 | 4.39 | -27.1 % |
Operating margin | 37.4 % | 47.1 % | -9.7 pp |
Net margin | 28.3 % | 36.5 % | -8.3 pp |
Figures in SEK, as reported. Margins are computed from the reported lines.
Higher costs absorbed the income growth
Total income rose 5% from a year earlier to SEK 17,986m, but total expenses rose 23% to SEK 7,417m, so profit before impairments, bank taxes and resolution fees fell 5% to SEK 10,569m 5. The cost/income ratio was 0.41 against 0.35 a year earlier, and return on equity was 15.6% against 16.0% 5. Diluted EPS was SEK 7.30 against SEK 7.53 5.
The year-earlier base was flattered by SEK 197m of VAT reimbursements that reduced expenses 5. This quarter's expenses include SEK 673m of extraordinary items: SEK 190m of restructuring and a SEK 483m settlement with the New York State Department of Financial Services 6. Against Q2, expenses fell 6%, mainly because extraordinary costs dropped from SEK 860m 2.
Adjusting for one-off costs and the credit release lifts profit to SEK 8,452m
Credit impairments were a net release of SEK 701m, against a release of SEK 398m a year earlier 5. SEK 543m of it came from a reassessment of held-for-sale assets, linked to the agreed sale of Entercard's non-performing loans, which have a contractual value of about SEK 4bn 6. The sale is expected to close in Q4 2026, subject to regulatory approvals 11.
Company-defined adjusted figures strip out both the cost items and the release: adjusted profit was SEK 8,452m, return on equity 16.0% and the cost/income ratio 0.37 6. The adjustments net to only SEK 130m of pre-tax profit 6. The report does not give an adjusted figure for the year-earlier quarter, so the adjusted year-on-year change cannot be stated.
Interest and commission income grew, with the Baltics supplying the interest growth
Net interest income rose 7% from a year earlier to SEK 11,568m, and net commission income rose 14% to SEK 4,704m 5. Net gains and losses on financial items fell 29% and other income fell 16% 5. Against Q2, management ties the interest rise to higher loan volumes in Sweden and the Baltics 6. Net commission income rose mainly on higher asset management commissions, helped by stock market and exchange rate developments 6.
Baltic Banking's net interest income rose 21% from a year earlier to SEK 4,063m, while Swedish Banking's fell 3% and its profit fell 9% to SEK 2,782m 1213. Baltic return on allocated equity was 19.2% against 23.2% a year earlier 13. Credit impairments there were SEK 117m against a release of SEK 153m 13.
The capital buffer narrowed as the CET1 requirement rose
The CET1 ratio was 17.2%, against 17.4% in the prior quarter and 19.7% a year earlier 5. The total CET1 requirement including Pillar 2 guidance rose to 15.1% from 14.8%, mainly because of the annual supervisory review, and the buffer fell to 2.1% from 2.6% 10. Risk exposure amount rose to SEK 999bn from SEK 976bn, mainly on higher volumes 10.
What to watch next
Management gives no financial targets in this report; the CEO's only outlook is that Sweden and the Baltics will grow 2 to 3 per cent this year 3. The test is whether costs fall back once extraordinary items end.
Capital: the new Swedish mortgage model is due in Q4 2026 and cuts the P2R add-on by about 0.7 percentage points, while the Baltic corporate models add a temporary REA add-on of about SEK 20bn in Q1 2027 11.
Credit impairments after the Entercard non-performing loan sale closes, since this quarter's release came from revaluing those assets 1116.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.