• Tue. May 10th, 2022

Swedbank profit beats forecast as commission income hits record

A Swedbank sign is visible on the bank building in Tallinn, Estonia on October 3, 2019. REUTERS / Ints Kalnins

STOCKHOLM, Oct.21 (Reuters) – Swedish bank Swedbank (SWEDa.ST) on Thursday reported better-than-expected third quarter net profit on continued strong mortgage loan growth and record commission income.

The Nordic economies have rebounded strongly this year, with Sweden returning above pre-pandemic levels, fueling consumer spending and demand for financial services and increasing shares of the region’s bank stocks.

At the same time, soaring energy prices and component shortages in the midst of the recovery have also helped reignite long dormant inflation, potentially changing the zero interest rate environment for banks and their banks. clients.

Sweden’s oldest retail bank said in a statement that its quarterly net profit reached SEK 5.50 billion ($ 639.91 million) from SEK 5.26 billion a year earlier, beating expectations analysts of 5.10 billion crowns in a Refinitiv poll. L8N2RF167

“The quarter was characterized by a gradual return to the new normal,” Swedbank Managing Director Jens Henriksson told reporters. “We are seeing a strong recovery, especially in Sweden.”

Swedbank said commission income reached KKr3.80 billion from KKr 3.25 billion a year earlier, while interest income, which includes mortgage income, fell to KKr 6.59 billion. of crowns against 6.71 billion crowns a year earlier.

Swedbank, largely untouched by COVID-19 and rich in cash after the pandemic limitation on payments to shareholders, announced in October that it plans to pay a dividend of SEK 7.30 per share for 2019 and 2020. L8N2QX114

($ 1 = 8.5949 Swedish kronor)

Reporting by Niklas Pollard; Editing by Johan Ahlander and Krishna Chandra Eluri

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