Swedbank completes Stabelo acquisition, bolstering digital mortgage strategy

Swedbank AB said Monday it has finalized its acquisition of mortgage technology company Stabelo, a move aimed at strengthening its digital lending capabilities and reaching new customers.

The Swedish lender paid an initial purchase price of approximately 350 million Swedish kronor for Stabelo, which was founded in 2016 and has a fully digital mortgage platform.

The final price will depend on Stabelo's performance through 2028, the company said.

The acquisition is part of a broader strategy by Swedbank to find new growth, following its recent purchase of credit card company Entercard and the launch of a new investment bank.

“I’m pleased that Swedbank has completed this transaction and that we can now work together to strengthen our customer offering,” said Tomas Hedberg, Deputy CEO of Swedbank.

Stabelo, which has about 30 employees and lending of 19 billion kronor in 2024, will continue to operate under its own brand, according to the bank.

Swedbank said the deal, first announced in July, is expected to negatively impact its Common Equity Tier 1 capital ratio, a key measure of financial strength, by approximately 10 basis points.