Swedbank CEO Michael Wolf. Photo: Magnus Hjalmarsson Neideman
The Riksbank has soon less interest for a year. As the Swedish commercial banks do not want to force the bank customer to pay to have money in their bank account, it becomes a loss. According to CEO Michael Wolf is the Swedbank part of billion.
– I did not figure in my head but it’s definitely about billion, he said.
Some more detailed specification about the cost does not go to be given. Wolf, however, completely determined in terms of less interest to customers.
– As long as interest rates are at this level, it is manageable. It is important to signal to customers that they should not worry that they will get a negative rate.
Is it unthinkable?
– I think it is unthinkable. Then there will be much larger changes in the economy than we have today.
The cost of negative interest rates can be expected to increase if we are to believe Swedbank’s own forecast. The bank traces a further reduction at the National Bank meeting later in February. Banks must find new ways to increase revenue or decrease costs.
– We have growing volumes of loan side, but I do not think there is much room to improve margins, it is a very competitive sector (mortgage sector , editor’s note).
Michael Wolf points out, as before, that profitability will be squeezed in a number of sectors and the banking sector will need to continue its cost cutting.
– The growth we have not flagged for a long time, but we see opportunities for further streamlining. I believe that our large customer base gives us scale opportunities. There’s a big upside if we are good at making sure customers’ wishes and digitizing what they think is boring to make the analogy, says Michael Wolf.
He also explains that he dislikes the Riksbank’s plans for intervention in the currency market in order to weaken the crown.
– I think it’s good to have correctly priced foreign exchange because it will have to work on the issues that create real competitive edge.
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