Swedbank 3Q Net Profit Beat on Higher Commission and Lower Loan Losses

By Dominic Chopping

STOCKHOLM--Swedbank AB on Thursday reported forecast-beating third-quarter net profit as higher commission income and lower loan losses offset a drop in net interest income.

Quarterly net profit rose to 5.5 billion Swedish kronor ($638.9 million) from SEK5.26 billion, while net interest income slipped 1.8% to SEK6.59 billion.

Analysts polled by FactSet had expected net profit of SEK5.04 billion and net interest income of SEK6.56 billion.

The bank reported loan losses of SEK18 million, from SEK425 million last year.

The cost cap of SEK20.5 billion excluding expenses related to money laundering investigations for 2021 and 2022 remains unchanged.

"With a strong business focus, robust profit, costs under control, a solid capital and liquidity situation, high credit quality and strong economic development, I look to the future with confidence," Chief Executive Jens Henriksson said.

The bank's common equity Tier 1 ratio--a measure of financial strength--was 18.5%, compared with 16.8% in the year-earlier quarter.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

October 21, 2021 01:38 ET (05:38 GMT)

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