Swedbank Reports Record Loss of SEK 10,5bn

Swedbank, one of Sweden‘s major financial institution, reported Tuesday at total loss of 10,5 billions Swedish kroner in 2009. More than estimated. Almost 2bn was lost during the fourth quarter of last year. However, the Bank expects to be profitable this year.

“We will continue to reduce the share of our lending in Ukraine, Russia and the Baltic countries.”

Michael Wolf


“2009 will be remembered as one of the most turbulent years in Swedbank’s history.” the Bank’s CEO Micheal Wolf writes in a press release.


“The financial crisis in the Baltic countries, Ukraine and Russia entailed large provisions and a loss of SEK 10.5bn. However, the operational measures we implemented during the year together with the rights issue means that the bank is well prepared to take care of our customers and create value for our shareholders,” he adds.

Here’s the main figures:

Full-year 2009 (compared with full-year 2008)

* The result for the period was SEK -10 511m (10 887)

* Earnings per share were SEK -10.66 (16.51)

* The return on equity was -12.5 per cent (15.2 per cent)

* The cost/income ratio was 0.51 (0.50)

* Net interest income decreased by 4 per cent to SEK 20 765m (21 702)

* Profit before impairments excluding non-recurring items decreased by 1 per cent to SEK 16 612m (16 856)

* Credit impairments amounted to SEK 24 641m (3 156). Provisions for loan losses amounted to SEK 21 794m (2 638).

* Net write-offs amounted to SEK 2 847m (518)

* Impairment of intangible assets affected profit by SEK 1 305m (1 403)

* The Tier 1 capital ratio increased to 13.5 per cent according to Basel 2 (11.1 per cent on 31 December 2008) and 10.4 per cent (8.4) according to transitional rules. The core Tier 1 capital ratio was 12.0 per cent (9.7) according to Basel 2 and 9.2 per cent (7.4) according to transitional rules).

Fourth quarter 2009 (compared with third quarter 2009)

* The result for the period was SEK -1 804m (-3 337)

* Earnings per share were SEK -1.83 (-3.57)

* The return on equity was -8.3 per cent (-16.9)

* The cost/income ratio was 0.54 (0.56)

* Net interest income decreased by 6 per cent to SEK 4 702m (5 017)

* Profit before impairments excluding non-recurring items increased by 4 per cent to SEK 3 737m (3 593)

* Credit impairments amounted to SEK 5 003m (6 121). Provisions for loan losses amounted to SEK 3 766m (5 338).

* Net write-offs amounted to SEK 1 237m (783). The credit impairment ratio was 1.44 per cent (1.75)

Outlook

“Compared to a year ago, the risk level in the bank is lower. 2010 will be a challenging year and the work to bring down the risk level will continue. Given that the global macro economy continues to develop positively without substantial divergence, particularly in Latvia and Ukraine, a profit for the full-year 2010 is feasible.”

Here’s the full press release from Swedbank.

Related by the Econotwist:

Nordic Central Banks Agree On Baltic Bank Bailout

How Sweden sent Estonian economy into free fall

Baltic losses of Swedish banks at 3.7 billion dollars

East European banks needs $304bn

More Billions Lost In The Baltics

Baltic Loan Losses Could Double

“The Baltic Lab Rat”

“Not Grounded In Reality”


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0 thoughts on “Swedbank Reports Record Loss of SEK 10,5bn

  1. Pingback: Swedbank报告记录丢失的SEK 10,50 # 8226;《Econotwist&博客

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