Swedbank Proposes Dividend Payouts After Posting 4Q Net Profit Beat
By Dominic Chopping
STOCKHOLM--Swedbank AB on Monday reported a forecast-beating net
profit for the fourth quarter and proposed dividend payouts for
2019 and 2020.
The Swedish bank said that, after consultation with the
country's Financial Supervisory Authority, it is proposing a
dividend corresponding to 25% of net profit for both the 2019 and
2020 financial year. This equates to a dividend of 4.35 Swedish
kronor ($0.52) a share for 2019 and SEK2.90 for 2020.
The bank booked SEK523 million of credit-impairment provisions
in the quarter, lower than the SEK651 million expected in a FactSet
Swedbank said it will establish a new Baltic subsidiary that
will become owner of the current subsidiary banks in Estonia,
Latvia and Lithuania to increase accountability and responsibility
of the Baltic banking management. The move is aimed to complement
its action plan to remedy money-laundering shortcomings and will
strengthen governance of the Baltic operations.
The Swedbank CEO will be chairman of the supervisory board of
the new holding company, while the head of Baltic banking will be
the CEO, the company said.
The bank reported a quarterly net profit of SEK4.51 billion,
from SEK4.43 billion a year earlier, while net interest income rose
2.5% to SEK6.57 billion.
Analysts polled by FactSet had expected net profit of SEK4.11
billion with net interest income of SEK6.67 billion.
The bank's common equity Tier 1 ratio--a measure of financial
strength--was 17.5%, compared with 17.0% in the year-earlier
Write to Dominic Chopping at email@example.com
(END) Dow Jones Newswires
February 01, 2021 02:02 ET (07:02 GMT)
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