Good Volume Growth and Deposit Margins Drive Net Interest Income at Swedbank in Q2 Results

Swedbank is one of the largest retail banks in Sweden and the largest in the three Baltic states. While its foundation is based in Swedish savings banks, a position that still benefits Swedbank today and is part of the rationale for our narrow moat rating for the lender, its dominant presence in the Baltics is owed to the acquisition of Hansabank in 2005. Since then, Swedbank has transformed both its Swedish and Baltic lending arms into highly efficient banking operations, taking advantage of economic growth in the Baltics, a booming real estate market in Sweden, and digitalisation initiatives to improve efficiency. As a result, Swedbank has been one of the best-performing Swedish banks recently.