"The bank's business results in the third quarter were strong; despite a negative external environment, the quality of our credit portfolio remains solid," Swedbank AS CEO Olavi Lepp said according to a press release.

"At the same time, high price growth and the ongoing war in Ukraine have put a lot of pressure on companies' cash flows and liquidity," he continued. "Thus far, most companies have managed to deal with this pressure, but it is clear that the end of the year, nor the start of next one, will bring any relief. Private persons have grown more cautious when it comes to taking on long-term loans; the rising cost of living continues to affect businesses and households."

Thus far in 2022, Swedbank AS and its subsidiaries and other Swedbank Group companies operating in Estonia have paid €37 million in labor taxes; the bank remains among Estonia's biggest labor tax payers.

The lending volumes of Swedbank AS' private customers as well as those of its corporate customers each increased by 8 percent as well. Deposits, meanwhile, decreased by 1 percent on year.

In the first nine months of 2022, a total of €857 million in new loans were issued to private customers, while another €880 million in loans were issued to businesses.

Income increased by 8 percent on year, primarily as a result of higher interest income. Net interest income increased by 16 percent, spurred by a larger loan portfolio and interest growth driven by Euribor.

Net commission income, meanwhile, decreased by 6 percent on year due to a smaller II pillar pension portfolio and lower income from payments. Greater turnover in the cards area, however, balanced the negative impact.

Net gains and losses on financial items decreased by 68 percent. This decrease was largely brought on by unrealized losses in the bank's asset management and insurance businesses, the negative impact of which was reduced by increased income from Foreign Exchange Market (Forex) transactions.

Other income increased 15 percent, due primarily to higher insurance income and a higher volume of services sold to the Swedbank Group.

The bank's total expenses grew 8 percent on year, largely due to higher staff costs, utilities and the growth of expenses related to services sourced from other companies within the Swedbank Group. Expenses and investments related to digital solutions increased as well.

In the first nine months of 2022, credit impairments reached €4.6 million, down from €9.5 million on year.

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