Swedbank reports SEK 3.5 billion profit for the third quarter 201125-10-2011
Swedbank showed a continued stable earnings capacity in the third quarter, despite an economic picture that has clearly worsened. Net interest income increased for the fifth consecutive quarter and credit quality continued to improve. Swedbank is strongly positioned to meet the increased macro risks and worsened economic outlook.
“We demonstrate continued stable results despite increased macro risks. We are also equipped to adapt to changes in our operating environment. We have been working for some time to extend the average maturity on our funding and increase our liquidity reserves. This, coupled with our strong capitalisation, makes us well-prepared in the current market,” commented Swedbank’s CEO Michael Wolf.
The profit for the quarter increased to SEK 3 475 million from SEK 3 452 million in the second quarter 2011. Uncertainties regarding the macro economic outlook have increased significantly during the last quarter due to the huge fiscal challenges facing several European countries. The macro economic outcome, and its impact on the banks, will depend greatly on how the crisis is resolved.
“To meet the worsening macro economic outlook, we have taken action by strengthening our focus on costs, an effort which will be further intensified in the months ahead,” Michael Wolf concluded.
The results in more detail
Profit before impairments was SEK 3 859 million (SEK 4 010 million in the second quarter 2011). Credit quality strengthened and net recoveries of SEK 441 million (SEK 324 million) were reported.
The return on equity was 14.4 per cent (14.4). Earnings per share before dilution amounted to SEK 3.12 (3.02) and earnings per share after dilution amounted to SEK 3.11 (3.01).