Retail Banking Market Dynamics: Sweden 2018
Summary
Sweden’s economy grew at 2.4% in 2017, compared to 3.2% in 2016. 2017 growth was underpinned by higher housing investments, exports, and household consumption. Consumer confidence increased during 2017, while the employment rate reached a historical high. However, rising inflation and mortgage rates restrained spending to an extent.
The retail deposit market in Sweden witnessed strong growth during 2013-17, registering a compound annual growth rate (CAGR) of 6.5%. The Swedish retail deposit base rose 4% from $203,829m in 2016 to $212,045m in 2017, driven by higher wages, decreasing unemployment, and a stable household savings rate. However, deposit interest rates have been steadily declining since 2012, led by a downward trend in the repo rate. The repo rate - which entered negative territory in 2014 - fell further until 2016.
The Swedish credit card market also reported poor performance during 2013-17, but is expected to recover slowly going forward. The retail deposit and mortgage markets in Sweden are expected to decelerate during 2018-22 after a strong performance in the preceding five-year period, while the personal loan market is expected to remain steady.
Swedish banks have reported higher profitability compared to their peers in Denmark and Norway, and their operating efficiency is also on an upward trend.
The report "Retail Banking Market Dynamics: Sweden 2018", identifies macroeconomic and competitive dynamics that impact upon the Swedish retail banking market.
Key Highlights
Scope
Reasons to Buy
Summary
Sweden’s economy grew at 2.4% in 2017, compared to 3.2% in 2016. 2017 growth was underpinned by higher housing investments, exports, and household consumption. Consumer confidence increased during 2017, while the employment rate reached a historical high. However, rising inflation and mortgage rates restrained spending to an extent.
The retail deposit market in Sweden witnessed strong growth during 2013-17, registering a compound annual growth rate (CAGR) of 6.5%. The Swedish retail deposit base rose 4% from $203,829m in 2016 to $212,045m in 2017, driven by higher wages, decreasing unemployment, and a stable household savings rate. However, deposit interest rates have been steadily declining since 2012, led by a downward trend in the repo rate. The repo rate - which entered negative territory in 2014 - fell further until 2016.
The Swedish credit card market also reported poor performance during 2013-17, but is expected to recover slowly going forward. The retail deposit and mortgage markets in Sweden are expected to decelerate during 2018-22 after a strong performance in the preceding five-year period, while the personal loan market is expected to remain steady.
Swedish banks have reported higher profitability compared to their peers in Denmark and Norway, and their operating efficiency is also on an upward trend.
The report "Retail Banking Market Dynamics: Sweden 2018", identifies macroeconomic and competitive dynamics that impact upon the Swedish retail banking market.
Key Highlights
- Among the top banks in the Swedish retail deposits market, SEB increased its market share the most in 2017.
- Credit card balances are expected to record a compound annual growth rate of 1.6% over 2018-22.
- Personal loan balances are expected to record a compound annual growth rate of 5.8% over 2018-22.
Scope
- The outlook for deposits, credit cards, personal loans, and mortgages.
- Net changes in market share across all four product areas.
- Overall financial performance including profitability, efficiency, and income sources.
Reasons to Buy
- Identify factors affecting growth prospects across the deposit, credit card, personal loan, and mortgage markets.
- Track competitor gains and losses in market share.
- Assess the financial performance of competitors.
Table of Contents
- Table of Contents
- Macroeconomic Overview
- Retail Deposits
- Credit Cards
- Personal Loans
- Mortgages
- Financial Ratios Market Average
- Competitor Financial Performance
- Appendix
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Marginalen Bank
- SEB
- Nordax AB
- Danske Bank
- Swedbank
- Ikano Bank
- Nordea
- Handelsbanken
- SBAB
- Länsförsäkringar Bank
- Skandia
- Collector Bank
- Nordnet
