Bank Scandals And Buy Ratings Offer Reality Check in Sweden

Nordea Bank AB and Swedbank AB are both the best ranked Swedish bank stocks. Swedbank this year lost its chief executive officer following accusations of insider trading of which he was subsequently cleared. The bank’s chairman wasn’t re-elected and its chief financial officer is leaving. But 57 percent of analysts tracked by Bloomberg are advising clients to buy Swedbank shares, a bigger proportion than at any time since 2013.

Nordea’s alleged role in helping rich clients hide their wealth from tax authorities, revealed in the so-called Panama Papers, has provoked a media, political and regulatory storm. The government is considering stricter laws while the Swedish Financial Supervisory Authority is investigating Nordea, linking its probe to earlier money laundering charges. The proportion of analysts recommending that clients buy Nordea shares is at a two-year high of 47 percent, according to Bloomberg data.