Now, three of four major banks completed. Today, Tuesday, was Swedbank’s turn to be judged by the market. It is so important net interest income fell by 20 million from the same quarter last year to 5.8 billion. It was also in line with expectations, according to figures from the Inquiry Financial. Dividend increased to 11.35 per share.
Swedbank Mortgage margins, which rose in the third quarter was stable during the fourth quarter and today is taken every four mortgages in the country at the bank. At the same time it appears in SvD Enterprise’s interest map that Swedbank Mortgage is among the most expensive right now.
– We are very pleased with our market share in the mortgage. It is located at 25 percent, so every fourth mortgage goes to us. It is on par with what we had in the past, we are extremely satisfied with. We are competitive in the mortgage market.
Is it still as profitable mortgage?
– No. After that increased capital requirement from 5 per loaned hundred to $ 25, so profitability has gone down very much on the mortgage.
The collapse in crude oil has given effect to several oil companies violating loan terms, covenants, and has been forced to renegotiate the terms with lenders. Swedbank has stress-tested their clients twice – at the thesis of an oil price of $ 60 per barrel and at 40 dollars per barrel and where the price remains at a low level for a long time.
– If the oil price would lie down there for a long time, it will over time affect credit quality. But today, we work with customers in that segment and ensures that they take action.
How often do you stress tests?
– We do this ongoing basis. The external analysis is incredibly important for a bank to understand what is happening around the corner to be on time with proactive measures and discussion with the customer. We see this in the last six years, we had the disappearance of a little credit, and I would like to say that banks and customers have worked a lot with balance sheets to have a greater resistance.
But Swedbank has overall not been spared from losses in recent years. When it was at its worst in 2009 landed Swedbank’s loan losses of 24 billion, of which 15 billion was only in the Baltics.
Today, Russia’s economy a threat to many banks with exposure to the country, who are in a deep crisis with the fall of the currency, capital flight and sharp increases in interest rates.
– If you look at our direct exposure in Russia, it is vanishingly small, we have only 500 million left. We took a depreciation of more than 200 million in the quarter for which the credit quality deteriorated markedly.
But Swedbank has lent 2.5 billion to companies in the Baltic States relating to the Russian economy. Among other things, the Baltics milk producers had a hard time with the embargoes and sanctions against Russia.
– But the indirect impact on the Baltic economies, we have also been working proactively, but we see no noticeable effect on the quality. There is a good resistance in the Baltics, says Michael Wolf.
Swedbank’s operating as a whole for the fourth quarter was disappointing. The reason it came in a half billion below expectations was the line “Net profit on financial items at fair value”. But according to the bank depends on the accrual and market values of such bonds.
Michael Wolf satisfied with the report as a whole.
– We think above all that is pleasing is that we get a confirmation that our competitiveness is strengthened and that we are doing more business with customers. It is clearly in the report. On all lines, except for one, we came in as we had expected. We continue to demonstrate that we can keep costs he explains.
Swedbank’s share fell around 1 percent on the Stockholm Stock Exchange following the report.
No comments:
Post a Comment