Swedbank beat expectation as another Swedish post huge profits

Wednesday, 25 April 2012
Swedbank reported a strong report on Wednesday morning with net interest income positively impacted by the Bank's increased lending margins. A provision in Ukraine of Skr200 million weighed on credit losses.

After Nordea and SEB was Swedbank’s report followed the same trend with impressive results for the first quarter.

"2012 started positively," writes Swedbank CEO Michael Wolf as the first line in the introduction to the big bank's report for the first quarter of 2012

The Bank's operating profits of Skr4.5 billion were 15 percent above analysts 'expectations according to consensus compilation of twelve analysts' forecasts.

Operating income was only slightly below the Skr5 billion that the Bank made as profit during the same period last year. The profits were "doped" - the former possible loan losses could be reduced, yielding recoveries of nearly 1 billion.

See table

First quarter 2012
Compared with the fourth quarter 2011

First quarter 2012
Compared with the first quarter 2011

The result for the quarter amounted to SEK 3 425m (965)
Earnings per share before dilution amounted to SEK 2.21* (0.88) and earnings per share after dilution amounted to SEK 2.20* (0.88)
The return on equity was 14.0 per cent (3.9)
The cost/income ratio was 0.48 (0.57)
Net interest income increased by 5 per cent to SEK 5 208m (4 967)
Profit before impairments increased by 29 per cent to SEK 4 768m (3 709)
Swedbank reported net credit impairments of SEK 172m (net recoveries of 174)
The core Tier 1 capital ratio was 15.9 per cent according to Basel 2 (15.7 per cent on 31 December 2011). The core Tier 1 capital ratio according to Basel 3 was 14.9** per cent (14.7 per cent on 31 December 2011).

The result for the period amounted to SEK 3 425m (3 852)
Earnings per share before dilution amounted to SEK 2.21* (2.47) and earnings per share after dilution amounted to SEK 2.20* (2.47)
The return on equity was 14.0 per cent (16.1)
The cost/income ratio was 0.48 (0.53)
Net interest income increased by 16 per cent to SEK 5 208m (4 501)
Profit before impairments increased by 17 per cent to SEK 4 768m (4 068)
Swedbank reported net credit impairments of SEK 172m (net recoveries of 972)

Swedbank CEO Michael Wolf and CFO Göran Bronner comment on the Interim Report Q1 2012 and give their view on the future.

What do you think about this article or us? Please leave a comment. Thank you!