In the first half of this year, the lending volumes of Swedbank Estonia's private customers increased by 4 percent and those of its corporate customers by 8 percent, with deposits going up by 7 percent. A total of €477 million in new loans were issued to private customers, and another €653 million in loans went to enterprises.

The bank's income fell by €10 million on year due to lower insurance and interest income.

This included a decrease of €3 million in net interest income due to higher interest margins on deposits and narrower loan margins; €1 million in net commission income due to lower card and payment income; €500,000 in net gains and financial losses on financial items due to lower income from forex transactions as well as the revaluation of assets; and €5 million in other income, mainly due to lower insurance income.

Total expenses, meanwhile, grew by €13 million, primarily due to higher costs for staff, utilities and services outsourced from other companies in the Swedbank Group, but also increased expenses and investments related to digital solutions.

Estimated credit impairments in the first six months of the year reached -€1.8 million, down from €4.5 million on year.

Swedbank Estonia's net profit for the first half of 2024 totaled €182 million, down from €214 million in the first half of 2023.

€37 million in labor taxes

In the first half of this year, Swedbank AS and its subsidiaries and other Swedbank Group companies operating in Estonia paid labor taxes in the amount of €36.5 million, thus remaining among the country's biggest payers of labor tax. These companies likewise paid a total of €54 million in corporate income taxes, as well as a further €62.5 million in corporate income tax on additional dividends paid in June.

In the first half of this year, Swedbank AS and its subsidiaries and other Swedbank Group companies operating in Estonia paid labor taxes in the amount of €36.5 million, thus remaining among the country's biggest payers of labor tax.

These companies likewise paid a total of €54 million in corporate income taxes, as well as a further €62.5 million in corporate income tax on additional dividends paid in June.

"Considering the strong market results, the first half of 2024 has sparked Swedbank clients' interest in investments and savings," said Swedbank Estonia CEO Olavi Lepp, noting that the bank saw a significant trend of income tax refunds being saved.

In the first half of the year, the bank paid nearly €100 million in interest on its customers' savings, he added.

"In terms of corporate banking, we have witnessed a monthly growth within our customer base," Lepp continued. "Businesses have once again started to invest and act a little more boldly to realize their ambitions. This upward trend allows us to hope that in the second half of the year, their positive impact will also translate into the gradual growth of the economy."

In 2023, Swedbank Estonia earned a total net profit of €385 million, up from €224 million in 2022.

--

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