Retail banking market leader in Sweden, with a large customer base and wide digital offering. Advanced digital agenda reflected in strong cost efficiency. Strong earnings capacity and risk-adjusted capital (RAC) levels, reflecting the low risk profile of domestic operations. Remediation of legacy anti-money laundering (AML) deficiencies and weaknesses in governance and risk culture. More concentrated exposure to its domestic market and residential segment than peers. Greater reliance on wholesale funding than international peers. The stable outlook on Swedbank reflects our view that the bank will be able to deal with a short-term economic shock and maintain resilient earnings and solid capital, with the RAC ratio remaining around 12%-13% in the next 18-24 months while the economic environment gradually recovers. We
