Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Swedbank Gains as Nordea Sees Cash Distribution: Stockholm Mover

Don't Miss Out —
Follow us on:

June 14 (Bloomberg) -- Swedbank AB rose to the highest in 11 days in Stockholm trading after Nordea Bank AB said the lender will probably distribute excess capital next year and raised its rating on the stock to buy from hold.

Swedbank rose as much as 1.9 percent to 156.8 kronor, its highest level since June 3 and its steepest intraday increase since June 7. The shares traded 1.7 percent higher as of 10:04 a.m. local time, with trading volume at less than a third of the the daily average in the past three months.

Nordea raised its share-price estimate for Swedbank to 174 kronor from 163 kronor, saying it expects growth to gradually return in Sweden and that Swedbank should start to regain “its natural market share.” When it distributes cash in 2014, Nordea said it believes Swedbank’s markets in the Baltics will provide “good growth” and that the lender will boast the best cost-to-income ratio in the industry.

“Swedbank is overcapitalized and the capital equals a yield of 15 percent that we believe will be handed out in 2014,” Pawel Wyszynski, an analyst at Nordea in Stockholm, said in the note to clients. “We foresee capital triggers drawing closer and regard the 30 percent to 35 percent total upside as attractive.”

Moody’s Investors Service raised Swedbank’s credit ratings one step to A1 on June 4, its fifth-highest investment-grade rating, citing the Swedish lender’s lower risk and higher capital buffers.

To contact the reporter on this story: Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.