Swedbank shares fell 4.6% after earnings, despite higher quarterly profit. The transcript points to weaker income outside core interest and commission revenue—net gains and losses and other income declined, with Baltic insurance hit by flood-related claims and negative revaluations—while funding costs rose as market rates increased.
- Profit was SEK 8.2 billion; return on equity was 15.6% and the cost-income ratio 0.41. Excluding SEK 673 million of extraordinary costs, these were 16% and 0.37, respectively.
- Net interest income rose 3% quarter over quarter, supported by higher business volumes and ECB rates; FX and day-count effects added SEK 156 million. Funding costs increased, with their effects arriving ahead of asset repricing.
- Net commission income increased 5% quarter over quarter on customer activity, including asset-management inflows. Assets under management reached SEK 2,989 billion.
- Lending growth was broad-based: Swedish mortgage volumes in Swedbank’s own channels rose SEK 7 billion, while Baltic mortgage and corporate lending grew SEK 6 billion and SEK 5 billion, respectively.
- Net gains and losses and other income declined. Baltic Banking’s insurance result was affected by higher flood-related claims and negative revaluations; net credit impairments were SEK 701 million in reversals.
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