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Investing.com -- Swedbank AB ser A (ST:SWEDa) said on Wednesday that it is maintaining its return on equity (RoE) target of at least 15% for the coming years, reaffirming a goal it had set through 2025.
The Swedish banking group said it remains focused on sustaining market share across its core products while improving efficiency through the adoption of new technologies, including artificial intelligence.
“Our plan is to continue to deliver a sustainable return on equity of at least 15 per cent,” CEO Jens Henriksson said in a statement. He also pointed to rising geopolitical risks as a source of uncertainty for both businesses and households.
“It is in times like these that being a profitable bank matters the most. Profitability means resilience and long-term stability,” he added.
To support its profitability ambitions, the bank plans to increase efficiency through automation and AI, which it said will streamline operations and allow more time for customer engagement.
It also set a cost-to-income ratio cap of 0.4 and a common equity tier 1 (CET1) buffer target of 200 basis points.
The dividend payout ratio will remain between 60% and 70%.
Swedbank had originally introduced its financial targets in December 2022, aiming for a 15% return on equity by 2025 — a level it reached in both 2023 and 2024. However, falling interest rates over the past year have weighed on bank income, potentially challenging profitability going forward.