Compare 4 big Nordic banks: Nordea, SEB, Swedbank and Handelsbanken
Nordea Bank (NDA SE) provides various banking products and services in Sweden, Finland, Norway, Denmark, and internationally. The company operates through Personal Banking, Business Banking, Large Corporates and Institutions, and Asset and Wealth Management segments. The Personal Banking segment offers various financial services to household customers through internet and mobile banking, over the phone, online meetings, and branch offices. It was founded in 1820 and is headquartered in Helsinki, Finland.
Skandinaviska Enskilda Banken (SEB A) provides corporate, retail, investment, and private banking services in Sweden and internationally. It operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Baltic, Life, and Investment Management divisions. The company offers research and strategy services; analysis, advisory, execution, and trading services in the foreign exchange, fixed income, equities, and commodities markets; transaction services, including cash management, trade and supply chain financing, custody, asset servicing, and fund services; and investor services. It was founded in 1856 and is headquartered in Stockholm, Sweden.
Swedbank (SWED A) provides various banking products and services to individuals and companies. The company operates through Swedish Banking, Baltic Banking, and Large Corporates & Institutions segments. It offers savings, salary, and current accounts; private residential and corporate lending; leasing, factoring, and financing services; consumer, mortgage, acquisition and project, export, and marine financing; mutual funds; and asset management, and life insurance and pension services. It was founded in 1820 and is headquartered in Sundbyberg, Sweden and formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB in September 2006.
Svenska Handelsbanken (SHB A) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, and internationally. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and accounts, and payment and reconciliation services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as sustainable, vehicle, and real estate financing services; green loans and advisor services; investment and other financing services; medical care group and health, disability, and travel insurance products; pension products; forestry and farming banking products; and online and mobile banking services. It was founded in 1871 and is headquartered in Stockholm, Sweden.
The first thing we are gonna look at is ROIC, but we know it is gonna be low since banks need lots of capital to operate and return should be low. For banks it is all about volume and risk.
Nordea is slowing down and averaging around 2%, SEB is averaging around 2,75%, Swedbank is averaging around 2,4% and Handelsbanken is slowing down too and averaging at 1,6% in recent years.
Now we go to earnings, we expect to see improved earnings over the years so we know the bank is not losing market share.
Nordea has a growth of 4,5% over the years and averaging to 29 billion SEK in recent years. SEB has 6,98% and averaging around 16 billion SEK of earning. Swedbank has earning growth of 5,07% and averaging around 18 billion SEK. Handelsbanken is the slowest of them all (but with less bad years) at 3,6% and averaging around 16 billion SEK. None of them has a very large increase in number of shares so EPS has the same story.
Now we will go to revenue.
With just a look we can see none of them are increasing their revenue and that is not what we are looking for. They are losing to their competitors and their revenue is shrinking in value with inflation. So we will just stop here and cut our losses. These are not for us, we will remove them from our list.
Thank you for your time and see you on the next story.