Swedbank net profit remains sky high in 2024

The 2024 net profit of Swedbank's Estonian branch, the largest commercial bank in Estonia, amounted to €358 million. This marks a decrease of €28 million compared to 2023.
Revenues decreased by €45 million due to lower interest income, the bank reported. Net interest income declined by €44 million, primarily driven by higher deposit interest rates and lower loan margins.
Service fee income fell by €0.6 million year-over-year, attributed to reduced fees in everyday banking services.
Expenses increased by €26 million. The main reasons for the rise were higher costs for personnel, consulting, administration, marketing and services purchased from the Swedbank Group, according to the bank. Costs and investments related to digital solutions also grew.
"In the fourth quarter, our loan portfolios continued to grow. The corporate loan portfolio grew by nearly 9 percent in 2024. We still hold the largest market share in loan products in Estonia," said Swedbank AS CEO Olavi Lepp. "The end of the year also brought very strong results in leasing sales."
The estimated credit loss and provisions for expected losses in 2024 amounted to -€0.6 million.
In 2024, Swedbank AS, owned by Swedish capital, along with its subsidiaries and other group companies operating in Estonia, paid €63.3 million in labor taxes, making it one of the largest contributors to labor taxes in the country. Additionally, Swedbank AS paid €145 million in corporate income tax, the bank reported.
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Editor: Marcus Turovski