Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Swedbank Q1 profits beats expectations on better deposit margins

Published 04/27/2023, 01:13 AM
Updated 04/27/2023, 01:45 AM
© Reuters. FILE PHOTO: The Swedbank logo is pictured on its branch in Riga October 21, 2014. REUTERS/Ints Kalnins/File Photo

STOCKHOLM (Reuters) -Swedish bank Swedbank reported first-quarter net profit above market expectations on Thursday and said higher deposit margins had boosted results, although credit impairments also rose.

The rival of Handelsbanken, SEB and Nordea said net profit totaled 7.56 billion Swedish crowns ($733.24 million) versus a year-ago 4.48 billion, topping a mean forecast of 6.62 billion, according to analyst estimates provided by the company.

CEO Jens Henriksson said Swedbank had a strong start to the year.

"The driving factor was higher net interest income, which strengthened thanks to higher deposit margins," he told a news conference.

Higher interest rates have meant that Swedish banks have increased margins on their loan business. The Riksbank raised interest rates to 3.5% on Wednesday, up from zero just over a year ago, and said a further hike was likely.

Swedbank, Sweden's biggest mortgage bank, said its net interest income, which includes revenues from mortgages, rose by 77% to 11.94 billion from a year-ago 6.76 billion, above the 11.37 billion expected by analysts.

© Reuters. FILE PHOTO: The Swedbank logo is pictured on its branch in Riga October 21, 2014. REUTERS/Ints Kalnins/File Photo

Commission income rose to 3.66 billion crowns from a year-ago 3.55 billion, above the mean forecast 3.48 billion, while the bank made a profit on financial transactions, including hedging instruments, of 916 million compared to 139 million a year earlier.

Swedbank said its credit impairments rose to 777 million crowns from 158 million a year ago, above the 386 million seen by analysts.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.