A Swedbank AB logo sits illumnated outside a bank branch at night in Riga, Latvia, on Monday, Dec. 9, 2013. The country of 2 million will become the 18th member of the euro area in January after transforming its finances and recovering from the world's deepest collapse in output four years ago. Photographer: Jason Alden/Bloomberg
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Losing one boss may be regarded as unfortunate. To lose your entire “C-suite” in less than two months looks worse than careless. But shareholders in Swedbank appear unconcerned. Its shares have outperformed rivals since the chief executive and finance director were ousted in the wake of a property-related scandal. Emboldened, they have now kicked the chairman out too.

They may feel that a bank with such a fortress balance sheet (core tier one capital is twice the European average), double-digit returns on equity and one of the continent’s lowest cost-to-income ratios can be left on autopilot for a while. But good fortune should not beget complacency. Sweden’s negative interest rates are here for a while, crimping margins, while much of the excess fat has already been trimmed from costs. You would not bet against Swedbank getting leaner still, but at 1.7 times tangible book value, its shares are not pricing in much downside.

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