Swedbank profit tops forecast

Swedish bank Swedbank reported better-than-expected net profit for the third quarter on the back of continued strong growth for mortgages and record commission income. Nordic economies have rebounded sharply this year. This is because of the Sweden back above pre-pandemic levels, by stoking consumer spending and demand for financial services and lifting shares in the region’s banking stocks. The soaring energy prices and component shortages have also played a part in rekindling long-dormant inflation.

Sweden’s oldest retail bank said that its quarterly net profit rose to 5.50 billion Swedish crowns ($639.91 million) from 5.26 billion crowns a year earlier. This is by beating analysts’ expectations of 5.10 billion crowns. Swedbank Chief Executive Jens Henriksson told reporters that the quarter has been characterized by a gradual return to the new normal. They see a strong recovery, not least in Sweden. Swedbank said that the commission income rose to 3.80 billion crowns from 3.25 billion crowns. Interest income, including the income from mortgages, dipped to 6.59 billion crowns. Swedbank, largely unscathed by the pandemic and cash-rich after pandemic curbs on shareholder payouts, reported in October that it planned to pay 7.30 Swedish crowns per share dividend relating to 2019 and 2020.