SWDBF - Swedbank AB (publ) (SWDBF) Q4 2023 Earnings Call Transcript
2024-01-24 12:16:06 ET
Swedbank AB (publ) (SWDBF)
Q4 2023 Earnings Call Transcript
January 24, 2024 3:00 AM ET
Company Participants
Annie Ho - Head of Investor Relations
Jens Henriksson - Chief Executive Officer
Anders Karlsson - Chief Financial Officer
Rolf Marquardt - Chief Risk Officer
Conference Call Participants
Andreas Hakansson - SEB
Nicolas McBeath - DNB
Magnus Andersson - ABG
Sofie Peterzens - JPMorgan
Namita Samtani - Barclays
Presentation
Annie Ho
Good morning, and welcome to Swedbank's Fourth Quarter and Year-End 2023 Results Presentation. My name is Annie Ho from Investor Relations, and with me in the room is our CEO, Jens Henriksson; our CFO, Anders Karlsson; and our CRO, Rolf Marquardt.
Let's begin with our usual presentation and then follow it up by Q&A. Jens?
Jens Henriksson
Thank you. Thank you, Annie, and good morning, everyone. Swedbank stands strong in turbulent times. We are now leaving 2023 behind us, a year that has been characterized by concerns about both external and internal security, climate change and a weak economic development. It is a time of continued war in Europe and a terrible conflict in the Middle East. The global economy though finished 2023 stronger than forecasted. Decisive actions by central banks have prevailed and we saw both inflation and GDP decline in all our home markets.
The Swedish economy was characterized by weak domestic demand. The first half of 2024 will be tough for both households and businesses before things start to improve in autumn. Looking ahead, I am optimistic, not the least because of strong public finances giving fiscal space in all our home markets.
Swedbank delivered a very strong result of SEK 34 billion for 2023. Net interest income grew by 54% for the full year, even though margins on mortgages were under pressure. Commission income was up by 7% due to rising assets under management and increased income in cards and payments. Special bank taxes and higher profit has raised our tax cost significantly. For 2023, we are paying more than SEK 13 billion in tax.
During the year, we have continued to invest in the bank while maintaining strict cost control. Expenses rose as planned. And our full year cost-to-income ratio ended at the low 0.33. This gives a return on equity of 18.3% and an earnings per share of SEK 30.27. The high profitability gives us the opportunity to increase investment this year and the next, with SEK 1 billion each per year.
A sustainable bank is a profitable bank. Half of the profit is being used to strengthen the bank, thus, creating customer value. The other half is being distributed in accordance with the bank's dividend policy to our owners, savings banks, insurance companies, pension funds, private owners and foundations that in turn give back to society.
Last week, I was honored that together with the principal participate when the Swedbank owner foundation in Skane donated money to Malmo University. Our dividend contribute to society. And therefore, I am proud that our Board proposes the Annual General Meeting a dividend of SEK 15.15 per share....
Swedbank AB (publ) (SWDBF) Q4 2023 Earnings Call Transcript