Swedbank's Estonian unit's revenue climbed by €89.2 million, owing primarily to greater interest income as a result of European Central Bank rate hikes, according to the bank. Net interest income increased due to a larger loan portfolio and higher Euribor-supported interest rates.

"The banks' outstanding financial performance was supported by an increase in business volume as well as a fall in the base interest rate. Individuals and organizations have kept up their debt obligations, and the rate of overdue payments has remained historically low," Olavi Lepp, Swedbank AS's CEO, explained, adding that there are prospects for loan portfolio expansion in the current situation.

Expenses increased by only €6.7 million within the same time period. The principal drivers of the increase were higher human costs and an increase in the cost of Swedbank Group services. Furthermore, expenses and investments in digital solutions soared.

The estimated credit losses for the first three months of 2023 were -2.9 million euros, compared to -1.3 million euros for the same period in 2022.

Swedbank AS and its subsidiaries and group organizations in Estonia paid a total of €14.4 million in labor taxes during the first three months of the year, making it one of Estonia's major labor tax payers.

Swedbank AS and its Estonian subsidiaries and group entities paid corporate income tax of €9.3 million in the first quarter. A further €10.8 million in corporate income tax on March dividends was paid in April.

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