Swedbank returns to surprise profit
Sweden’s fourth biggest bank Swedbank swung to its first profit since the end of 2008 as bad-loan provisions dropped.
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It posted a first-quarter profit of 536 million kronor ($74.7 million) from a loss of 3.36 billion kronor a year earlier. Analysts had been expecting a net loss of around 1.1 billion kronor in the latest quarter.
The profit is mainly a result of significantly lower provisions for loan losses in the Baltic countries. Net credit impairments fell by more than half from the preceding quarter to 2.21 billion kronor, of which 2.1 billion kronor came from Baltic Banking.
“We have posted a profit for the first time since the end of 2008. We can now clearly see the effect of the work we began a year ago. A lower risk level in the bank and a stronger organization for problem loans, together with improved macroeconomic conditions, led to a significant decline in credit impairments during the first quarter,” said Swedbank’s CEO Michael Wolf.
In the Baltic countries, impaired loans and loans overdue for more than 60 days have stopped rising, the bank said. In Sweden, credit quality remained good and it can be noted that the credit culture is strong.
Swedbank was the first of the major Swedish banks to report first-quarter earnings.
Last Updated (Tuesday, 27 April 2010 09:03)
