Swedbank sets return on equity target of at least 15%

STOCKHOLM (Reuters) -Swedish banking group Swedbank said on Wednesday it was setting a target of at least 15% return on equity in the coming years, in line with a previous goal running through this year, and said geopolitical tensions were creating uncertainty.

Sweden's biggest mortgage lender said in a statement it aimed to increase or maintain market shares for its main products while boosting efficiency across the group by harnessing new technologies, including AI.

"Our plan is to continue to deliver a sustainable return on equity of at least 15 per cent," CEO Jens Henriksson said in a statement. The bank added that issues such as the geopolitical situation was creating uncertainties for businesses and households

The bank last set financial targets in December 2022, aiming to achieve a return on equity of 15% in 2025, a goal it met in both 2023 and 2024, but over the past year central bank rates have tumbled, putting a damper on bank interest income.

(Reporting by Niklas Pollard, editing by Stine Jacobsen)