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☆ Danske Bank profits beat forecasts on interest income boost
▼ + stars: | 2023-10-27 | by ( ) www.reuters.com time to read: +2 min

COPENHAGEN, Oct 27 (Reuters) - Danske Bank (DANSKE.CO) on Friday reported a bigger than expected third-quarter profit, boosted primarily by high interest income, and narrowed its full-year earnings guidance, sending its shares up more than 6%. Danske Bank's results mirror those of rival Nordic banks SEB (SEBa.ST) and Swedbank (SWEDa.ST), which also beat analysts expectations when they published third-quarter results earlier this week. Danske, Denmark's biggest bank, narrowed its 2023 guidance for full-year net profit to a range of 19.5 billion-20.5 billion crowns, from 18.5 billion-20.5 billion previously. Danske's net interest income was up at 9.32 billion crowns from a year earlier 6.29 billion, and just above the 9.09 billion forecast by an LSEG poll of analysts. The bank said it expects net interest income to grow further based on the announced central bank rate hikes.

Persons: Danske, Louise Breusch Rasmussen, Terje Solsvik, Jane Merriman Organizations: Danske Bank, Thomson Locations: COPENHAGEN, Denmark's

☆ Swedbank beats Q3 profit estimates, says economy "remains resilient"
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Tom Little/File photo Acquire Licensing RightsSTOCKHOLM, Oct 26 (Reuters) - Swedish banking group Swedbank (SWEDa.ST) reported a bigger-than-expected third-quarter net profit on Thursday, and said the economy remained resilient despite turbulence and higher interest rates. Sweden's biggest mortgage lender posted a net profit of 9.13 billion crowns ($817 million), well above a forecast of 8.57 billion crowns in a LSEG poll of analysts. It had posted a profit of 5.59 billion crowns in the year-ago period. Swedbank, a rival to lenders such as Handelsbanken (SHBa.ST), Nordea (NDAFI.HE) and SEB (SEBa.ST), said interest income, which includes revenues from mortgages, rose to 12.9 billion crowns from 8.36 billion crowns a year ago, slightly beating expectations. Swedbank booked loan loss provisions of 347 million crowns, down from 602 million crowns in the year-ago quarter, and below analysts' expectations of losses of 583 million crowns.

Persons: Tom Little, Jens Henriksson, SEB, Swedbank, Johan Ahlander, Anna Ringstrom Organizations: REUTERS, Rights, Thomson Locations: Stockholm, Sweden, Rights STOCKHOLM, Swedish, Swedbank

☆ Bank SEB's Q3 operating profit jumps 42%, beats expectations
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: +1 min

The Nordic bank SEB group logo is seen outside a branch in central Stockholm, Sweden, July 18, 2023. REUTERS/Tom Little Acquire Licensing RightsSTOCKHOLM, Oct 25 (Reuters) - Swedish bank SEB (SEBa.ST) reported a 42% rise in third-quarter operating profit on Wednesday, topping market expectations, but said the positive effect from higher interest rates had come down compared to previous quarters. Sweden's biggest corporate bank said operating profit was 13.0 billion crowns ($1.17 billion) against a year-ago 9.12 billion, beating a mean forecast of 11.0 billion in an LSEG poll of analysts. Banks have seen their income boosted by higher interest rates as central banks scrambled to bring down stubbornly high inflation. The bank, whose main rivals include Handelsbanken, Swedbank and Nordea, said its net interest income rose to 12.3 billion crowns from 7.7 billion crowns, above the 12.0 billion crowns expected by analysts.

Persons: Tom Little, SEBa.ST, Banks, SEB, Johan Ahlander, Anna Ringstrom, Eileen Soreng Organizations: REUTERS, Rights, Thomson Locations: Stockholm, Sweden, Rights STOCKHOLM, Swedish

High debts, rising interest rates and a wilting economy has produced a toxic cocktail for Sweden's commercial property companies, with several cut to junk by rating agencies. Sweden and Germany are among the worst affected by a widening property slump on the continent, according to Eurostat. Swedish officials are worried that banks could compound property companies' troubled by cutting credit, triggering firesales that would further drag down the market. Financial markets minister Wykman said he had held discussions with banks, property companies and investors about the entire commercial property market. This week, analysts at JP Morgan said big banks in Sweden, which had 1 trillion Swedish crowns of property exposure, were 'ill-prepared' for losses.

Persons: Niklas Wykman, Wykman, Ilija Batljan, Batljan, JP Morgan, Finland's, SEBa.ST, Chiara Elisei, Sinead Cruise, John O'Donnell, Toby Chopra Organizations: Organisation for Economic Cooperation, Development, Financial, Reuters, Eurostat, OECD, Reuters Graphics, SBB, JP, Thomson Locations: STOCKHOLM, FRANKFURT, Europe, Sweden, Germany, Stockholm, Swedish, Spain, Ireland, London

☆ Nordea Q1 profit tops forecast as interest rates rise
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +1 min

HELSINKI, April 27 (Reuters) - The Nordic region's biggest lender Nordea (NDAFI.HE) posted a larger than expected gain in first-quarter operating profits on Thursday, on the back of rising interest rates and despite weaker Nordic currencies. The rise in results followed a similar trend among other Nordic banks such as Swedish rival SEB (SEBa.ST), which on Wednesday beat market expectations and reported higher net interest income. The bank saw its net fee and commission income decline 8% year on year to 765 million euros. Net interest income climbed 35% to 1.77 billion euros. Nordea said individual net loan losses remained low despite the Nordic economies slowing and kept its management judgement buffer unchanged at 585 million euros.

☆ Handelsbanken scores profit beat as interest income climbs
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

STOCKHOLM, April 26 (Reuters) - Swedish bank Handelsbanken (SHBa.ST) reported first-quarter net profit above market expectations on Wednesday on the back of climbing interest income and said its credit quality remained good against a backdrop of heightened uncertainty. Soaring inflation over the past year has seen central banks crank up key rates radically, boosting interest income for banks such as Handelsbanken, but also spurring their own costs and ramping up pressure on their customers and on property prices. The rival of Swedbank (SWEDa.ST), SEB (SEBa.ST) and Nordea (NDAFI.HE) said net profit totalled 6.81 billion Swedish crowns ($661.23 million) versus a year-ago 5.69 billion, topping a mean forecast 6.20 billion, according to Refinitiv estimates. The bank, whose main markets are Sweden, Norway and Britain, said its net interest income, which includes revenues from mortgages, rose to 11.49 billion from a year-ago 8.01 billion, above the 10.89 billion expected by analysts. Handelsbanken said its credit losses edged up to 30 million crowns from only 6 million a year ago, well below the 386 million seen by analysts.

☆ Swedish bank SEB's operating profit beats forecast in Q1
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

STOCKHOLM, April 26 (Reuters) - Swedish bank SEB (SEBa.ST) reported first-quarter operating profit above market expectations on Wednesday as higher interest rates boosted income from loans. SEB, Sweden's top corporate bank, said operating profit was 11.62 billion Swedish crowns ($1.13 billion) versus a year-ago 7.86 billion, easily beating a mean forecast of 9.49 billion, according to estimates provided by the company. Soaring inflation over the past year has seen central banks crank up key rates radically, boosting interest income for Swedish banks, while volatile markets have increased demand for risk management services. Commission income fell to 5.17 billion crowns from a year-ago 5.40 billion, below the mean forecast 5.26 billion. However, SEB said its net credit losses fell to 272 million the quarter from 535 million a year ago, below the 686 million seen by analysts.

☆ Lithuania aims to raise $539 mln from temporary windfall tax on banks
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

VILNIUS, March 9 (Reuters) - Lithuania's finance minister proposed on Thursday a temporary windfall tax on bank profits, aiming to raise an estimated 510 million euros ($538.7 million) over a two-year period. "In large part, the policy of banks has no influence on the profits, they are due to exceptional circumstances, and are probably surprising to banks themselves," Skaiste said. The government and the central bank had previously said Lithuania was contemplating a windfall tax on the banking industry, but had not said how much this could raise. The government's proposal would impose a two-year tax of 60% on the part of a bank's interest income that is more than 50% higher than a four-year average, Skaiste said. Two Swedish-owned groups hold more than half of Lithuania's banking assets, Swedbank (SWEDa.ST), whose 2022 profits increased by 64% to 148 million euros, and SEB (SEBa.ST), whose profits were up 49% to 172 million euros.

☆ Lithuania may tax windfall bank profits, boost defence spending
▼ + stars: | 2023-02-06 | by ( Andrius Sytas | ) www.reuters.com time to read: +2 min

[1/2] Czech Finance Minister Zbynek Stanjura speaks with Lithuania's Finance Minister Gintare Skaiste at the European Union finance ministers meeting in Brussels, Belgium, July 12, 2022. "This is a critical situation, we are in an environment of high rates, so unexpected profits are appearing," central bank Governor Gediminas Simkus told a news conference. "The war in Ukraine and countries' reactions to it led to the high liquidity and high rates. The invasion also leads to more defence spending, so if we tax the windfall, the income would be used for defence", Skaiste told reporters. The neighbour of Russia had so far budgeted 2023 defence spending at 1.8 billion euros ($1.9 billion), or 2.52% of its gross domestic product.

☆ Swedbank sees income growth outpacing costs as eyes set on ROE boost
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +1 min

The rival of banks including Handelsbanken (SHBa.ST), SEB (SEBa.ST) and Nordea (NDAFI.HE) said in a statement it would maintain its dividend policy of a 50% payout ratio and that any excess capital would be distributed to shareholders. "A sustainable bank is a profitable bank. Our target is therefore to reach a 15% return on equity," Chief Executive Jens Henriksson said. The bank, which is holding a capital markets day for investors and analysts on Tuesday, recorded a return on equity of 12.4% in the first nine months of this year. Reporting by Niklas Pollard, editing by Anna RingstromOur Standards: The Thomson Reuters Trust Principles.

☆ Swedbank's quarterly profit tops forecast as interest income gives boost
▼ + stars: | 2022-10-27 | by ( Johan Ahlander | ) www.reuters.com time to read: +2 min

SummarySummary Companies Swedbank operating profit tops forecastInterest income boosted by higher c.bank rateSays credit quality good despite turbulenceSTOCKHOLM, Oct 27 (Reuters) - Swedbank (SWEDa.ST) on Thursday reported a better-than-expected operating profit for the third quarter, underpinned by strong income from mortgages. The Swedish bank said in a statement its quarterly operating profit rose 24% to 8.70 billion crowns ($801 million) from 7.03 billion crowns posted last year, beating the 7.19 billion crowns seen by analysts in a Refinitiv poll. "Due to our position and business model, our net interest income benefits from this." Commission income fell to 3.63 billion crowns from 3.80 billion crowns last year, beating the 3.53 billion seen by analysts. Swedbank said high inflation, especially in the Baltic countries, meant that full-year expenses were likely to be around 1% higher than the cost cap of 20.5 billion crowns.

☆ Handelsbanken posts record profit as interest income climbs
▼ + stars: | 2022-10-19 | by ( Niklas Pollard | ) www.reuters.com time to read: +3 min

Handelsbanken, whose main markets are Sweden, Norway and Britain, added that its net interest income, which includes revenues from mortgages, climbed to 9.58 billion crowns from 7.59 billion crowns a year ago, well above the 8.67 billion crowns seen by analysts. "Continued good volume growth, on both the private and corporate sides, together with recovering margins, has contributed to improved net interest income and to profits reaching a new all-time high." Meanwhile, commission income dipped to 2.73 billion crowns in the quarter from a year-ago's 2.87 billion crowns - just below forecast - while it booked credit loss reversals of 69 million crowns compared with net losses of 131 million crowns a year earlier. The 150-year-old bank said it made a gain on financial transactions, which include hedging instruments and yielded an unexpected setback earlier this year, of 471 million crowns versus a profit of 534 million crowns a year ago. Total expenses at the bank rose 11% from a year earlier to 5.12 billion crowns.

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