By Ian Walker

 

Swedbank AB on Friday reported swing to net profit for the second quarter of the year compared with the first quarter, beating market forecasts as it booked lower costs and despite the coronavirus pandemic.

The bank said it has a strong financial position, with a common equity Tier 1 ratio of 16.4%, compared with 16.1% in the year-earlier quarter.

The bank reported a quarterly net profit of 4.85 billion Swedish kroner ($533.7 million) compared with SEK5.34 billion in same quarter last year and a loss of SEK1.69 billion for the first quarter. Net profit was forecast at SEK3.51 billion, taken from FactSet and based on seven analysts' forecasts. It booked a SEK1.24 billion impairment credit in the quarter compared with a credit of SEK109 million for the same period last year.

Operating profit before impairment--one of the company's preferred metrics--rose to SEK7.23 billion from SEK6.66 billion.

Net interest income rose to SEK6.89 billion from SEK6.61 billion. A poll of nine analysts by FactSet had expected net interest income of SEK6.69 billion.

Swedbank said it will resume dividend payouts once the consequences of the pandemic are better understood. In April Swedbank pulled a planned dividend of SEK8.80 a share due to the coronavirus, and said it would call a meeting to vote on it once conditions were appropriate and the consequences of the Covid-19 pandemic were clearer.

 

Write to Ian Walker at ian.walker@wsj.com

 

(END) Dow Jones Newswires

July 17, 2020 01:38 ET (05:38 GMT)

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