Retail banking market leader in Sweden, with a large customer base and wide distribution network. Risk-adjusted capital levels are improving and reflect the low risk profile of domestic operations. Strong earnings capacity. Sluggish credit recoveries in Baltic markets. Reliance on wholesale funding increases confidence sensitivity. Standard&Poor's Ratings Services outlook on Sweden-based Swedbank AB is stable. It reflects our expectation that over the next two years, Swedbank's strong capital and earnings should allow it to navigate through weaker economic conditions in Sweden. With its strong earnings capacity and cost efficiency, Swedbank will likely continue to build capital, despite its 75% dividend payout ratio. We estimate that Swedbank's annual operating revenues will increase to Swedish krona (SEK) 20 billion throughout
