Swedbank reports profits as expected
Tuesday, 14 February 2012
Banking group Swedbank reported an operating profit of skr1.753 million in the fourth quarter of 2011. This compares with profit of Skr3.445 billion in the corresponding period in 2010.
Analysts had, according to Reuters, on average expected a profit of Skr1.787 million.
The Board proposes a dividend of Skr5:30 per share.
Therefore Swedbank CEO, Michael Wolf, delivered a far lower quarterly profit compared with a year ago but also a large write-down which reduced the performance figures. Overall, the Board approved the financial statement and which was also cleared by the analysts.
Swedbank is the last but one among the four major banks in the stock market to account for what happened in 2011 and especially during the last three months.
In Swedbank's case it came to a quarterly performance to an operating profit of Skr1.7 billion. As SEB and Nordea as well as Swedbank's profit have turned out to be less than a year ago. But the result is clearly better than forecasters had predicted.
The fact that Mr. Wolf did not reach last year's performance has been blamed on the fact that the bank made a big write-down of goodwill in its Latvian operations. It's about almost Skr2 billion, which affect negatively. That figure, however, were previously known.
The Bank's income rose, however overall to Skr8518 million from Skr7958 million. Above all, the bank managed better in terms of the major loan and deposit business, which includes a focus on earnings from the mortgage.
Net interest income rose by 3 percent during the quarter compared with a year ago.
By Scancomark.se Team