How the major Swedish banks have earned billions in the mortgageTuesday, 22 November 2011
The generous lending carried out by Swedish bank really brought in the money in the name of profits to the banks. In ten years, the four Swedish biggest banks earned Skr1000 billion in lending rates.
Swedish television review of Swedbank, Nordea, SEB and Handelsbanken's annual reports since 2001 show that the rapid loan growth in Sweden has been an important explanation for banks' huge profits reported recently.
AdvertisementDuring the years in the 2010s, the Swedes' mortgages loaning increased sharply. Various important aspects relating to that is that banks reduced their demand for rigorous requirement from their customers such as suspension of repayment requirements, abolishment of second mortgages and generous lending. And while bank lending has increased, profits also increased.
Ten years ago, interest income was the main source of profits banks made on loans after borrowing costs have been deducted, for the four banking giants that brought in closer to Skr78 billion.
For 2009, lending profits for the four was over Skr110 billion. The following year that moved to around one hundred billion, ie about the same cost as for defence and education in Sweden for one year.
So far this year, interest margins and mortgage profits increased again to the banks.
Since 2001, banks earned about Skr1,000 billion. It is the same as Sweden's entire state debt.
By Scancomark.se Team
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