Important market position in Sweden, with a large customer base and wide distribution network. Low risk profile of domestic operations. High systemic importance in Sweden. Improved funding composition and duration. Non-Nordic exposures increase risk of earnings volatility. Heavy reliance on wholesale funding. Relatively weak cost efficiency. The ratings on Sweden-based Swedbank AB reflect the bank's important domestic market position, its large customer base, and wide distribution network. They also reflect the low-risk profile of its domestic operations, its high systemic importance in Sweden, and its improved funding composition and duration. These strengths are partly offset by the risk of earnings volatility due to Swedbank's non-Nordic exposures, the bank's heavy reliance on wholesale funding, and its relatively weak cost efficiency. Our
