Stock Groups

Swedbank lands narrow profit beat as loan loss provisions fall -Breaking

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© Reuters. FILEPHOTO: This is the Swedbank logo on Riga’s October 21 2014 branch. REUTERS/Ints. kalnins/File Photograph

STOCKHOLM (Reuters] – The Swedish banking group Swedbank announced Thursday a slight increase in net profits for its quarter, but warned that a disruption of Russian gas deliveries from Europe might have an effect on the economy’s development.

Swedbank’s net profit for the first quarter was 4.62 billion Swedish Crowns (or $468 million) down from 4.98 billion one year ago. However, it still beats the expected 4.58 billion analyst estimates according to Refinitiv data.

While Russia’s invasion in Ukraine had no direct effect on Sweden, the threat of an interruption to gas supplies has shaken European economies.

Swedbank which operates in Estonia, Latvia, and Lithuania, reported that it had only a small exposure to Russia.

Jens Henriksson from Swedbank stated to reporters that there would be a gas boycott and Russia will shut off gas. He did not elaborate on the effect.

He said, “But at end of day, credit quality is excellent.”

Swedbank was a competitor to banks like SEB, Handelsbanken and Nordea. It made loan loss provisions in excess of 158 millions crowns for the first quarter. This is down from 246million a year ago, when the Swedish pandemic had impacted the economy.

The marginal drop in interest income (which includes income from mortgages) was only 0.6% from 6.78 Billion a year earlier, which is higher than the 6.66 Billion analysts had expected.

Commission income was 3.59 billion crowns higher than it was a year before. This beat the forecast of 3.66 trillion analysts had expected. However, net income from financial products, which include income from trading income, dropped to 122 million crowns for the quarter, down from 585million a one year ago.

($1 = 9.8776 Swedish Crowns

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