Frequently asked questions (FAQ)

 

Today Swedbank present a strong interim report. The interim profit of SEK 6.5 billion is the best ever and second quarter profit increased by 24 percent, to SEK 3 604 million, compared to the first quarter. The result is strong from several different perspectives. The bank’s income remains stable for all business areas and the earning capacity is good in all parts of the Group.

 

The Baltic business is still strong and has a high earning capacity, in spite of the fact that the economic situation in the Baltics is slightly worse then expected. Swedbank expects the imbalances in the Baltic economies to remain for some time. For Swedbank this means that the net loan losses will increase, but still the bank will continue to make a good profit.

 

The term capital adequacy objective contains how much capital a bank must have in relation to the risks that the bank takes. On 1 February 2007 a new regulation concerning capital adequacy was implemented. The new rules bring profound changes compared to previous legislation. Because of this the implementation will be made gradually until 2009.

Tier 1 capital consists, above all, of the equity. A way to measure capital adequacy is to relate the tier 1 capital ratio to the risk weighted assets. Before the demand for tier 1 capital ratio was 6,5 percent in the transition rules between for Basel 1. Now when we fully implement the Basel 2-rules the board has decided that the level should be within the range of 8,5-9,0 percent.

 

Swedbank has the capital needed and there is no need for an issue of new shares.

 

The Swedish banks are not influenced, directly, by the international financial turmoil but in directly. This since it extends to other sectors of the society, which make the costs for financial services more expensive.

 

The customers will be influenced by the international turmoil. Since the price for money will increase in the market, the rates for loans will also increase. This process has already started.