Swedbank’s ratings reflect the bank’s strong and low-risk franchise in Sweden, enjoying a low level of both impaired loans and credit impairment charges.

Swedbank is Sweden’s largest mortgage lender, with a 23% market share, and one of the country’s leading banks. It is also the market leader in the Baltic states. It has a very strong capital position and minimal problem assets, as well as a high level of profitability, supported by strong cost efficiency. The long-term ratings also reflect a degree of caution about Swedbank’s reliance on the real estate sector in Sweden for revenue and balance-sheet growth.

Like other Swedish banks, Swedbank depends on wholesale markets and corporate deposits for a considerable proportion of its funding. This is mitigated by access to the stable and well-tested covered bond market in Sweden, accounting for nearly one third of Swedbank’s funding.

For the detailed rating report, click here.