Competition in Swedbank's home markets
In an international comparison, the banking sector is fairly concentrated in Swedbank’s home markets.
In Sweden, Swedbank, Handelsbanken, Nordea and SEB accounted for about 70 per cent of deposits and lending in 2012. Swedbank is the biggest in retail banking and has a leading market position in mortgages (26 per cent), deposits from private customers (22 per cent) and fund management (25 per cent). In the Swedish corporate market, the bank’s share was 17 per cent for lending and 16 per cent for deposits at the end of 2012.
The Estonian banking sector is more concentrated than Sweden’s. The market is dominated by foreign companies. Together, Swedbank, SEB, Nordea and Sampo (owned by Danske Bank) control around 90 per cent of the market. Swedbank had a market share of 54 per cent of deposits from private customers and 46 per cent of lending. In the Estonian corporate market, the bank’s share was 35 per cent for lending and 38 per cent for deposits.
Latvia has a more fragmented market where local banks account for 30 to 70 per cent of the various segments. In 2012 Swedbank accounted for 28 per cent of deposits and 30 per cent of lending to private customers. In the corporate market, the bank’s share was 18 per cent for lending and 13 per cent for deposits.
Like Sweden, the banking market in Lithuania is dominated by a few major players. Among private customers, Swedbank accounted for 36 per cent of deposits and 27 per cent of lending. In the corporate market, the bank’s share was 19 per cent of lending and 27 per cent of deposits
Key ratios for Swedbank and peers
|Jan-Dec 2012*||Market cap, SEKbn||Net profit, SEKbn||Total Income, SEKbn||Return on Equity,%||Cost/Income ratio||Common equity Tier 1-ratio Basel 3 incl. IAS19|
* Based on stock price 8 February 2013