X

Laadi alla uus Eesti Raadio äpp, kust leiad kõik ERRi raadiojaamad, suure muusikavaliku ja podcastid.

Swedbank reports doubling of profits in 2023 to €385 million

Swedbank headquarters on Liivalaia in Tallinn (the bank is later due to relocate to a new development, further along the same street).
Swedbank headquarters on Liivalaia in Tallinn (the bank is later due to relocate to a new development, further along the same street). Source: Siim Lõvi /ERR

Swedbank, Estonia's largest consumer lender, reported €385 million in profit in the fourth quarter of 2023 (Q4 2023), a rise of €193 million (ie. a near 100 percent rise) on the corresponding quarter in 2022.

Commenting on the results, Olavi Lepp, CEO of Swedbank AS, said: "2023 was a challenging year for Estonian economy; nevertheless, our customers managed to meet their financial obligations."

There was no reason to think this year will be much different, he went on.

"In our assessment, 2024 will be another sluggish year for the Estonian economy," Lepp said, adding that: "In 2023, we, along with our subsidiaries and other group companies active in Estonia, paid €59 million in labor tax and €68 million in corporate income tax, thereby contributing to the state budget," Lepp added, via a Swedbank press release.

Fixed-term deposits gained popularity with Swedbank also, in 2023.

Revenue rose by €309 million, mainly due to higher interest income arising from interest hikes implemented by the European Central Bank (ECB), the bank says.

Lending volumes for Swedbank AS's private customers increased by 5 percent, while with corporate customers the rise was 7 percent last year.

Deposits rose by 1 percent over the course of 2023.

Last year, €1.05 billion in new loans were issued to private customers and €1.7 billion to corporate customers, the bank says.

Swedbank 2023 results, quick facts:

  • Volume of Estonian Swedbank-issued loans exceeded €10 billion.
  • Net interest income rose by €244 million, mainly due to a larger loan portfolio and interest rise driven by the Euro Interbank Offered Rate (Euribor).
  • Smaller payments and bond-related revenues cut net commission income by €1 million, though a larger card turnover as well as corporate overdraft usage made up for some of that gap.
  • Net gains from financial items rose by €8 million as a result of unrealized profits from the revaluation of assets in the asset management and insurance business, whose positive impact was reduced by decreased income from Forex transactions.
  • Other revenues increased by €58 million, due to higher insurance income. Autumn storms in Q4 2023 caused major damages to our customers, and Swedbank P&C Insurance registered nearly 350 loss events (€700,000 in damages relating to vehicle and home insurance claims).
  • Total expenses grew by €20 million. These higher expenses may be attributed to higher staff costs, consultation fees, and services sourced from other Swedbank Group companies. Expenses and investments related to digital solutions also rose.
  • Expected credit impairments of 2023 and expenses accrued from reserves to cover the expected credit impairments amounted to €3 million.
  • Swedbank announced in October that in Q3 2023, the volume of loans issued to private and corporate customers exceeded the €10,000,000,000-mark.
  • In October, fixed-term deposits saw a €329 million volume growth – the largest monthly increase seen in Estonia over the past decade. Of that growth, €228 million consisted of fixed-term deposit agreements concluded with Swedbank.
  • The bank supported energy-efficient home improvements with €127.3 million in loans through 2023.
  • Over 6,300 new companies, 76 percent of them start-ups, opened a business account with Swedbank, through 2023.
  • The bank concluded several real estate business agreements, including the Golden Gate business center, a new Rimi logistics center and a retail complex in Mustamäe in Tallinn.
  • Swedbank was recognized as a TOP101 most valued company in Estonia in 2023.

--

Follow ERR News on Facebook and Twitter and never miss an update!

Editor: Andrew Whyte

Hea lugeja, näeme et kasutate vanemat brauseri versiooni või vähelevinud brauserit.

Parema ja terviklikuma kasutajakogemuse tagamiseks soovitame alla laadida uusim versioon mõnest meie toetatud brauserist: