Swedbank reports SEK 3.4 billion profit for first quarter 201225-04-2012
Swedbank showed a strong development in the first quarter with a SEK 3.4 billion profit. The bank is acting from a position of strength and is well positioned to meet customer needs and add new business, despite continued macro uncertainty. Strengthened customer satisfaction, improved operational efficiency and increased cost awareness is in focus.
“We are currently well ahead regarding compliance with the new regulatory requirements. This puts us in a good position to grow with our current customers and to add new business – despite continued macro uncertainty. We stand ready when our customers want to do more business,” commented Swedbank’s CEO Michael Wolf.
Profit in the quarter increased to SEK 3 425 million from SEK 965 million in the fourth quarter 2011. However, the macroeconomic outlook remains uncertain with a risk of recession in Europe.
“This makes it difficult to provide accurate earnings guidance. We are planning for a weak scenario and focusing on costs,” continued Michael Wolf.
Measures to cut costs in the bank are continuing as planned. The goal is to reduce expenses in 2012 by one billion kronor, excluding variable remuneration, compared with the previous year.
The results in more detail
Profit before impairments was SEK 4 768 million (SEK 3 709 million in the fourth quarter 2011). Credit quality remains high.
Costs decreased 11 per cent compared with the previous quarter and amounted to SEK 4 413 million. The cost/income ratio was 0.48 (0.57).
The return on equity was 14.0 per cent (3.9). Earnings per share before dilution amounted to SEK 2.21 (0.88) and earnings per share after dilution amounted to SEK 2.20 (0.88).