Swedish major banks are earning a quarter of a billion Skr per day
Thursday, 16 February 2012
Swedish big banks earned nearly a quarter of a billion kronor a day during the past year. The Earnings crowns rained especially over state owned banks Nordea with CEO Christian Clausen.
But bank executives are still not satisfied and want to have more. Despite the European Crisis, new capital rules and costly borrowing, one can not complain if you are a bank about bank executives in Stockholm. Clearly, since then all banks have opened their profit books.
With Nordea leading the way, the four major banks together earned Skr191 billion in revenues in 2011. It was Skr34 billion more than a year ago.
When the year was summed up, the bank managers had even more reason to smile. Bank Quartet total profits reached over Skr60 billion after tax. It is about 17 percent more than a year ago and represents a gain of nearly a quarter of a billion per working day.
Measured in monetary terms, Nordea chief Christian Clausen had the widest winning smile - as usual.
Nordea is the largest bank in the Nordic countries and the stock market. With a gain of approximately Skr 24 billion, Christian Clausen hit all other CEOs on the stock exchange. Only H & M’s profit bucket comes close to the giant bank.
The price for the past year's biggest profit lift, however, rests with Swedbank and SEB. But this is a re-conquest of the old profit levels before the crisis of 2009, which hit both banks hard.
Swedbank chief Michael Wolf performed with the financial statements, the best outcome for the bank in three years. 2008 the bank recorded a loss of almost Skr10 billion.
The banks' shareholders have also reason to smile because all banks increased dividends to shareholders to a greater or lesser extent - despite uncertain economic times and future demands for greater financial buffers.
Swedbank's shareholders will be able to afford to drink a little extra this year. Board of Directors proposes a more than twice as large dividends for most shareholders.
Only Handelsbanken’s Pär Boman managed to get over the bar results from last year's final quarter. All other banks delivered quarterly profits that were lower when compared with the previous year. The sluggish state of the banks also appears to have taken analysts by surprise.
Most of the banks especially Swedbank and SEB will be cutting bonuses from next year – that is this year. Only revenue generating staff will get bonuses in the future according to Swedbank.
How much id the banks earned
|Revenues (million) 2012
|Source: Banks' financial statements. Profit billion and after tax.