Scandinavian-owned bank Swedbank performed well in Estonia in the third quarter of 2020 (Q3 2020) despite the coronavirus crisis, the bank says, with loan volume increasing.
Q3 2020 net profit was €45.4 million compared to the second quarter, which was €48.2.
The net profit of the nine months, January to September, was €133.6 million, which is €15 million less than last year during the same period. Net profit fell, primarily due to an increase in costs and credit losses.
The net interest income profit was €56.6 million compared with €58.4 million in the second quarter.
The net service charges profit grew to €18.1 million compared with €16.6 million in the previous quarter.
The loan volume (€8.333 million) and deposit volume (€10.146) both increased compared with the second quarter.
Despite these good results, Swedbank admitted that the bank has had to deal with the ongoing COVID-19 pandemic, with grace periods on loan one common measure.
"The grace period order established as a mitigation measurement was extended until the end of September even though the demand for grace periods has fallen," Swedbank said.
From the end of March to the end of September, 12,000 people applied for a loan holiday in their private credit agreements. As of the end of September, there are about 8,700 private grace period contracts in force, of which about 4,900 are microfinance contracts and about 3,700 consist of mortgage agreements. As of March, a grace period agreement had been concluded with 1,533 business customers.
Editor: Roberta Vaino, Andrew Whyte