Here’s a list of 10 best banks in Sweden in our opinion.
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Banks in Sweden
In Sweden, there are 114 banks in total. Sweden, as we all know, has four major banks. The greatest thing is that these four banks have purchased almost 80% of the entire assets of the sector. These 114 banks can be classified into four types: commercial banks, cooperative banks, savings banks, and foreign banks.
As one might anticipate, the primary holdings are held by Sweden’s four largest banks, with the remaining institutions being small to medium-sized.
Banking System in Sweden
Sweden’s banking structure is well developed, and many banks of varied sizes and specialities operate in Sweden. In Sweden, the banking sector is organized into four sections: 1) Foreign Banks 2) Swedish Commercial Banks 3) Cooperative Banks 4) Saving Banks.
The majority of commercial banks in defence were created in the mid-1990s, with the first international bank established in 1986. Sweden’s banking sector is controlled primarily by the country’s four largest domestic banks, which operate as universal banks and account for almost 80% of the industry’s total assets.
Riksbank is Sweden’s central bank, and it is responsible for ensuring that money keeps its value. It also issues banknotes and coins. Finansinspektionen is Sweden’s financial supervisory authority, formed in 1991 with the goal of creating a single integrated regulator encompassing banking, securities, and insurance. Its mission is to improve financial system stability and efficiency while also protecting customers.
Currently, there are 135 to 139 banks operating in Sweden, and Moody’s prognosis for the Swedish banking industry is steady, underpinned by the country’s solid economy. Sweden’s banks and financial institutions are represented by the Swedish bankers’ organization.
Sweden’s banking system, according to Moody’s Investors Service, is highly stable.
The following are the reasons for this rating: 1) Sweden’s operating circumstances are favourable, allowing the banking industry to grow; 2) its banking system maintains a low-interest rate, which will aid in increasing profitability and asset quality; and 3) Sweden’s economic development has been noteworthy, allowing the financial sector to adapt in the foreseeable future.
10 Best Banks in Sweden
1. Nordea Bank
It is one of the Nordic region’s leading financial service firms and one of Europe’s largest banks. The bank has a presence in 20 countries, including four home markets: Denmark, Sweden, Finland, and Norway.
In 2018, the group’s total operating income was EUR 9 billion and its total assets were EUR 551.4 billion. In the year 1832, the bank opened its doors in Sweden. Nordea Sweden bank boasts 4.2 million household clients and 200,000 business and institutional customers as of February 2018, and it is ranked second or third in Sweden.
Nordea Bank provides insurance, investment counselling, and security brokerage services to individuals, businesses, and large enterprises, in addition to banking and allied financial services. Nordea is a financially secure bank with an AA+ credit rating from credit rating agencies.
2. SEB Bank
Among major corporate and institutional clients, it is one of the largest wholesale banks. SEB provides universal banking services in Sweden. SEB also has expanded its standing among Sweden’s small and medium-sized businesses.
The SEB group employs around 15,000 highly qualified workers across 20 countries. The group’s net profit in 2018 was SEK 23.1 billion, up from 16.2 billion in 2017, while operating income was SEK 45.9 billion in 2018, up from 45.6 billion in 2017.
Banks in Sweden primarily function as commercial banks, offering services such as checking and savings accounts, credit cards, foreign exchange, mutual funds, and financial solutions to both residents and non-residents of Sweden.
3. Svenska Handelsbanken AB
The bank first opened its doors in 1871, and it now serves six Home Counties. The bank presently employs 12,000 people across 20 countries. For the seventh year in a row, the bank in Sweden got the top service among banks in 2018. Across the country, the bank has almost 400 locations and 4,000 advisors.
The bank’s net income was 4,015 million SEK, up from 3,760 million SEK a year before. Business cards, investment finance, group and health insurance, private loans, mortgage, and other services are available from banks. The bank has announced management changes that will take effect on March 1st, 2019.
4. Swedbank
Swedbank was formed in 1820 and is now a multinational corporation that provides services to both private and business customers. Today, the bank has 7.3 million ordinary customers and 600,000 business clients. The bank’s mission is to foster a stable and long-term financial status for many homes and companies.
The bank has 186 locations in Sweden and employs around 14453 people. The bank’s overall operating income in 2018 was SEK 44,222 Million, a 5% increase over the previous year. Bank profits grew by 9 percent in 2018 as compared to 2017. The bank provides investing and trading services, such as equities, currency, and fixed income trading.
5. Forex Bank AB
Bank was founded in 1965, and until 2003, its objective was to sell and purchase money as well as provide payment services, and it is one of the world’s leading foreign exchange suppliers. After 2003, the bank began providing services such as loans, accounts, cards, and payments; in addition, the bank provides services such as online, mobile, and telephonic banking.
In 2003, Forex Company was granted a banking license, and it later changed its name to Forex Bank, which now has 107 branches throughout the Nordic region. The bank’s profit for the third quarter of 2018 was SEK 60 million, while the profit for the first nine months of 2018 was SEK 100 million.
6. Ikano Bank
It is a multinational company organization controlled by the Kamprad family that was created in 1988. Banks in Sweden began operations in 1995, and they provide easier financial products to private customers. A bank also takes deposits, makes loans, and offers other services to the public.
The bank’s operational result for the year 2018 declined by 18% to SEK 359 million, compared to SEK 435 million in 2017. The bank also has operations in the United Kingdom, Austria, Denmark, Finland, Norway, Germany, and Poland.
7. Avanza Bank
Avanza Bank was established in 1999, and currently the bank has 837,100 clients, 406 staff, and a 4% part of the Swedish saving market. As of December 2018, the bank’s market capitalisation was SEK 13 billion.
Individual investors can use banks for stock trading, a wide choice of savings products, and education and advice for investment decisions, pension solutions, and mortgage loans. The bank’s operating income was SEK 1,049 million in December 2018. According to a poll performed by the Nordic Bench, Avanza has the most happy banking clients in Sweden.
8. ICA Banken
It was founded in February 2002 and is owned by the retail chain ICA AB. The bank provides financial services to consumers in Sweden. Banking cards, savings accounts, current accounts, insurance, mortgages, and unsecured loans and credit are some of the products and services offered by banks. In 2018, the bank’s operational profit was SEK 42 million, up from 28 million in 2017. Banks began providing insurance services through its subsidiary ICA insurance in 2015.
9. Resursbank
Bank was created in 1977 and provides retail banking and financial services in Sweden. Banks provide payment options and consumer loans. Banks also offer services such as savings and other deposit accounts, insurance policies, retail loans, and internet transactions. The bank’s operational revenue climbed by 11% to SEK 3,437 million at the end of 2018, while operating profit grew by 6% to SEK 1,487 million. As of December 2018, the bank employed 765 people.
10. Westra Wermlands Sparbank
It was established in 1856 and is one of Sweden’s oldest banks. It is a savings bank that offers retail banking products, current accounts, savings accounts, payment cards, funds, pension plans, consumer loans, and vehicle loans. Since 1998, the bank has been part of the Swedbank group, and it employs approximately 100 people. The bank’s primary goal has been to provide clients with long-term financial security and growth over the past 160 years.
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