Swedbank’s earnings in January-June were EUR 88 million. Compared to the first half of 2019, earnings dropped by EUR 9 million, which could mostly be attributed to increased credit losses.
The bank announced that due to restrictions set to alleviate the spread of COVID-19, a drop in consumption and a decrease in pension fund management fee ratios, fee incomes decreased by 14%, to EUR 34.4 million.
Net income from financial instruments dropped by 56%, which could be attributed to asset revaluation. Interest income increased by 7%, to EUR 115.7 million, with loan and deposit portfolios increasing.
Loan portfolios for households and businesses have grown, having increased by 3%, to EUR 8.272 billion. Deposits increased by 14%, to EUR 9.856 billion.
Swedbank’s expenses increased by 3% with staff costs, anti-money laundering protection and customer knowledge taking up most of the increased expenses.
Reserves for loan losses increased by EUR 10 million over the first six months of 2020. The reserve, along with impaired loans, stands at EUR 56.3 million.
For comparison, reserves increased by EUR 1 million in the same period in 2019. The increases are mostly a consequence of the emergency situation and outlooks for macroeconomics.
Loan loss rates last year were 0% compared to 0.2% this year.
Swedbank Estonia’s return on equity in the period was 18.1%.
The number of loans issued to private customers in the second quarter decreased in comparison to the second quarter of 2019. Issued loans were in a downward trend in April and May, with June seeing an increase in the number of issued loans.
Factoring volumes continually increased among business clients, but decreases were noticed in the volumes of long-term loans and leases. In the second half of the quarter, business lease demand recovered to pre-pandemic levels and investments are continued that were suspended in spring. (ERR/Business World Magazine)