With fear and uncertainty the order of the day in European banks, investors have shown a definite willingness to pay up for perceived quality. Swedbank (OTCPK:SWDBY) fits the bill, with a business that is heavily weighted toward Swedish mortgages and high-quality corporate lending, an efficient cost structure, and ample surplus capital. While I see less growth potential for Swedbank than some of its Nordic peers (not to mention other European banks), a low single-digit core earnings growth rate is still enough to support a double-digit potential annualized return for a company that I believe has well below-average credit risk through this cycle.
Read the full article at Seeking Alpha:
Clean Credit And Efficient Operations Support A Healthier Multiple For Swedbank
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