Sparbanken Skane

The stable outlook on Sparbanken Skåne reflects S&P Global Ratings' expectation that the bank will continue its relationship with Swedbank and keep its leading position in its local market. We believe Sparbanken Skåne can protect its robust capitalization while expanding its balance sheet over the next 24 months, despite possible pressure on earnings and asset quality stemming from COVID-19. We anticipate that Sparbanken Skåne will continue building a considerable ALAC buffer in the coming years as it fulfils its MREL requirements, and that the ALAC buffer will durably exceed 6% of our risk-weighted assets (RWAs) metric over our forecast period. We could take a negative rating action if we observed changes in the bank's risk appetite or operating conditions that

...Sparbanken Sksne's partnership with Swedbank will continue to support its local presence We expect Sparbanken Sksne to maintain a leading position in its home market, the Sksne region in Southern Sweden. As a result of its size, Swedbank provides support by equipping the bank with products, IT, and short-term liquidity, if needed. This is a long-term partnership, that we believe will continue as it supports overall revenue capacity and efficiency gains. Sparbanken Sksne's core strategy of providing banking products in Sksne will continue to pose concentration risk, in our view. The result of a merger between three local banks in 2014, Sparbanken Sksne has actively lent to the Sksne region for decades. The bank remains committed to the region and, as a result, faces concentration in terms of risk exposure. While some pressure from COVID-19 may arise as the government withdraws monetary and fiscal measures, we expect the bank to be on top of its lending exposures with annual nonperforming...

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