Swedbank's third-quarter net profit saw a significant rise, surpassing analysts' expectations. The bank reported a net profit of SEK9.12 billion ($818 million) today, marking a substantial increase from SEK5.59 billion recorded in the same period last year. This surge was primarily driven by a 54% increase in net interest income, which reached SEK12.9 billion.
While there was a decrease in margins, Swedbank managed to maintain high credit quality due to its conservative lending practices. This approach led to an increase in lending volumes and contributed to the bank's robust financial performance.
In addition to its impressive Q3 results, Swedbank's CEO Jens Henriksson announced restructuring plans aimed at streamlining the organization and ensuring a sustainable return on equity of 15% from 2025 onwards. These changes include the creation of a dedicated business area for premium and private banking customers and the transition of all corporate clients in Sweden with an advisor to the corporates and institutions business area.
The bank's financial strength was further demonstrated by an improved common equity Tier 1 ratio, a key measure of a bank's financial strength. The ratio rose slightly to 18.7%, up from last year’s 18.5%, reflecting the bank's balance-sheet strength and resilience amidst these changes.
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