Swedbank Beats Market Forecasts With Swing to 2Q Profit From 1Q Loss
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
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
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
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 firstname.lastname@example.org
(END) Dow Jones Newswires
July 17, 2020 01:38 ET (05:38 GMT)
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