Swedbank reports €322 million net profits for first nine months of 2023
Estonia's largest lender Swedbank has reported net profits of €322 million for the first nine months of 2023, ie. to the end of the third quarter (Q3 2023), a rise of €204 million.
Olavi Lepp, CEO of Swedbank AS, said: "In Q3, we worked hard to continue financing households and companies despite the current difficult economic climate. Over the first three quarters of the year, we have issued new private loans in the amount of €784 million and business loans at a total of €1.273 billion."
Over the nine months, Swedbank's private customers lending volumes rose by 5 percent; those of corporate customers by 9 percent.
Deposits grew by 3 percent during that time, the bank says.
The bank has announced it is also set to relocate its headquarters in Tallinn from the Liivalaia offices it has occupied for many years, further down the same street to the 28-storey Arter development, due to be completed in the fall of 2024.
Swedbank Estonia results to Q3 2023 quick facts.
- Private customers issued new loans totaling €784 million, enterprises €1.273 billion.
- Income rose by €265 million, primarily the result of boosted interest income due interest hikes by the European Central Bank.
- Interest on annual deposit reached 4.5 percent.
- €58 million paid out in interest.
- Net interest income rose by €213 million, again the result of a larger loan portfolio and interest increase driven by Euribor.
- Swedbank AS, along with its subsidiaries and Group businesses active in Estonia, paid €43 million in labor tax.
- Swedbank AS, along with its subsidiaries and group businesses active in Estonia, paid €52 million in corporate income tax.
- Credit portfolio crossed the significant 10-billion-euro mark, which has helped customers purchase 80,400 properties and 53,500 vehicles.
- Net gains on financial instruments rose by €6 million, due to unrealized profits from revaluation of assets in the asset management and insurance area, whose positive impact was reduced by lower income from Forex transactions.
- Other income increased by €44 million, due to higher insurance income.
- Expenses increased by €18 million, largely driven by higher staff costs and services sourced from other companies in the Swedbank Group.
- The estimated credit impairments of the first nine months of 2023 reached €3 million, compared with €5 million for the same period in 2022.
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Editor: Andrew Whyte
Source: Swedbank
