Swedbank reports SEK 3.2 billion profit in second quarter 2012
Swedbank continues to show stable results in the second quarter, with a SEK 3.2 billion profit. The bank is acting from a position of strength, and has the resources needed to support the bank´s customers. However, the macro economic outlook remains uncertain, bringing cost control and improved operational efficiency to center stage.
“Swedbank continues to report stable results and low relative risks at the same time that we are continuing to work to improve customer satisfaction”, commented Swedbank’s CEO Michael Wolf.
Profit in the quarter amounted to SEK 3 162 million, compared to SEK 3 425 million in the first quarter 2012 when higher earnings within fixed income and currency trading benefitted Large Corporates & Institutions.
The work to reduce costs continues as planned. The aim is to lower costs in 2012 by SEK 1bn, excluding variable salary costs, compared with 2011.
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, noting that the bank despite the general macro woes is acting from a position of strength.
The work to improve customer satisfaction is in focus. The bank has recently won several awards in the area in all home markets, and continues the implementation of the new tool that provides direct feedback from customers when in contact with the bank, which will help improve customer satisfaction.
Another positive area is the bank’s mobile services. Swedbank’s new mobile bank now has over 900 000 users.
The results in more detail
Profit before impairments was SEK 4 646 million (SEK 4 768 million in the first quarter 2012).
Costs decreased 4 per cent compared to the previous quarter and amounted to SEK 4 251 million. The cost/income ratio was 0.48 (0.48).
The return on equity was 13.0 per cent (14.0). Earnings per share before dilution amounted to SEK 2.88 (2.21) and earnings per share after dilution amounted to SEK 2.87 (2.20).
The core Tier 1 capital ratio was 16.6 per cent according to Basel 2 (15.7 per cent on 31 December 2011).