Top-Paying Nordic Bank Unfazed by Risk of Capital Add-On: Chart

Investors in one of Sweden’s best-paying banks needn’t fret.

Swedbank AB says it’s committed to a target of returning 75 percent of profit to shareholders, even if Sweden’s regulator raises the counter-cyclical buffer requirement. The watchdog has signaled the current 1.5 percent level that kicks in this year may not be high enough given the pace of credit growth, and will discuss raising it in March. Gregori Karamouzis, Swedbank’s head of investor relations, says that won’t affect dividend policy. Jefferies analyst Kristin Dahlberg notes that Swedbank has the biggest surplus of common equity Tier 1 capital of Sweden’s leading banks. Nordea, which targets a dividend payout ratio of “at least” 75 percent of profit, says it can’t comment before Jan. 27, when it releases annual results.

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