den 29 april 2016

Important legal information

According to Handelsbanken’s analysts Swedbank is seen as a stable and cost-efficient retail bank with solid profitability. Dividend per share is estimated between seven and eight percent for 2016. In addition Handelsbanken expects further increases in the upcoming years.

However, the previous months were shaped by management issues, which overshadowed the daily business. As a consequence of continual discussions and also because of previous decisions made by the former management the risk-premium was elevated. After Swedbank had cleared the management issue, analysts of Handelsbanken expects a decreasing risk-premium. Moreover the net interest income is expected to increase and could have improving sentiments as well as positive estimates as a consequence and eventually a re-rating of the share.

Nevertheless Swedbank reported net interest income one percent below Handelsbanken’s expectations but trading, cost control and low loan losses were ahead of consensus. Trading at SEK 400m was clearly ahead of SEK 289m expectations, while costs were one percent lower than expected.

Bloomberg consensus set the 12-month target price to SEK 197,11. Currently, 17 analysts set Swedbank on BUY, 9 on HOLD and 4 on SELL recommendation.



2022-11-26 19:22:33