Swedbank second quarter net profit beats amid loan loss reversals

By Dominic Chopping

 

STOCKHOLM – Swedbank AB on Friday reported better than expected second quarter net profit amid higher commission income and loan loss write-offs.

Quarterly net profit reached SEK 5.56 billion ($ 642.5 million) from SEK 4.85 billion, while net interest income fell 4.6% to 6.57 billion of Swedish crowns.

Analysts polled by FactSet expected net profit of SEK 4.68 billion and net interest income of SEK 6.56 billion.

The bank declared loan loss reversals of SEK 27 million, compared to losses of SEK 1.24 billion last year.

The Swedish bank had previously warned that it had not been able to defend its position in the competitive Swedish mortgage market because the deadlines were too long, but it said on Friday that its new loan market share had steadily increased over the past decade. second trimester.

In April and May, its market share was just over 17% and in June, the bank recorded its highest mortgage sales on record, he said.

“Measures to reassign employees to mortgage processing and reduce wait times are having an effect,” said Managing Director Jens Henriksson.

The spending was in line with the bank’s forecast and the cost cap of SEK 20.5 billion excluding money laundering investigation expenses for 2021 and 2022 remains unchanged.

The bank’s Tier 1 common stock ratio – a measure of financial strength – was 18.5%, down from 17.5% in the previous year quarter.

 

Write to Dominic Chopping at [email protected]

 

(END) Dow Jones Newswires

July 16, 2021 02:21 ET (06:21 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.


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