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Impressive performance from Swedbank



  

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Thursday, 21 July 2011
Swedbank reported a more than doubling of net profit in the second quarter. The big Bank's net interest income continued to be strengthened, and beat analysts' expectations.

Net profit was Skr3.5 million in the second quarter, compared with Skr1.6 million during the same period last year. It also met analysts' expectations of Skr3.2 billion, according various consensuses.

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Operating profit almost doubled, even compared with second quarter last year, and reached Skr4.3 billion. It was 5 percent better than the consensus forecast of Skr4.1 billion.

"Swedbank's financial performance remains stable. For the fourth consecutive quarter net interest income was reinforced and credit quality continues to improve, "wrote President Michael Wolf in a statement.

Although analysts expressed high expectations on the bank's net interest income, the report showed a lower result. The generally higher interest rates in Sweden have affected net interest income in the first half, and lower costs for deposits in local currency in the Baltic countries, writes Swedbank.


Swedbank's report summary
Second quarter 2011 January - June 2011
Compared with the first quarter 2011
The result for the quarter amounted to SEK 3 452m (3 852)
Earnings per share before dilution amounted to SEK 3.02* (2.47) and earnings per share after dilution amounted to SEK 3.01* (2.4)
The return on equity was 14.4 per cent (16.1)
The cost/income ratio was 0.52 (0.52)
Net interest income was SEK 4 740m (4 527)
Profit before impairments decreased by 1 per cent to SEK 4 010m (4 068)
Swedbank reported net recoveries of SEK 324m (972)
The core Tier 1 capital ratio was 14.8 per cent according to Basel 2 (13.9 per cent on 31 December 2010) and 10.1 per cent (10.1) according to transition rules. The Tier 1 capital ratio according to Basel 2 increased to 16.1 per cent (15.2). According to transition rules, the Tier 1 capital ratio was 11.0 per cent (11.0).
Compared with January - June 2010
The result for the period amounted to SEK 7 304m (2 103)
Earnings per share before dilution amounted to SEK 5.48* (1.82) and earnings per share after dilution amounted to SEK 5.48* (1.82)
The return on equity was 15.3 per cent (4.7)
The cost/income ratio was 0.52 (0.57)
Net interest income increased by 18 per cent to SEK 9 267m (7 822)
Profit before impairments increased by 22 per cent to SEK 8 078m (6 625)
Swedbank reported net recoveries of SEK 1 296m (credit impairments of 3 173).
By Scancomark.se Team

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