January - March 2007
Stable net profit for first quarter 2007 compared with fourth quarter 2006
• Net profit for the period amounted to SEK 2,910m (2,913)
• Earnings per share amounted to SEK 5.65 (5.65)
• The return on equity amounted to 18.9 percent (19.8)
• The cost/income ratio improved to 0.51 (0.52)
• Net interest income increased by 5 percent to SEK 4,501m (4,303)
• Operating profit amounted to SEK 3,807m (3,887)
• Loan losses amounted to SEK 49m (-72).
• The tier 1 capital ratio, according to new capital adequacy rules, amounted to 6.8 percent (6.5 percent according to previous framework on December 31, 2006).
Net profit for the period increased by 28 percent compared with first quarter 2006
• Net profit for the period increased by 28 percent to SEK 2,910m (2,270)
• Earnings per share increased to SEK 5.65 (4.41)
• The return on equity increased to 18.9 percent (16.6)
• The cost/income ratio improved to 0.51 (0.56)
• Net interest income increased by 28 percent to SEK 4,501m (3,506)
• Operating profit increased by 34 percent to SEK 3,807m (2,843)
• Loan losses were unchanged at SEK 49m (50).
The CEO comments on the first quarter
“2007 has begun positively for Swedbank. Net interest income increased for the fourth consecutive quarter at the same time that net commissions remained strong. Swedish Banking, Baltic Banking and Swedbank Markets all developed positively, which is helping to generate stable profits.
Concerns of an overheating economy in the Baltics during the first quarter have contributed to greater awareness among decision-makers and the public. This has led to signs of a slowdown in lending growth in the region. Our judgement of the development in the Baltics is continued positive.
Preparations to complete the acquisition of TAS-Kommerzbank are proceeding according to plan with respect to both government approvals and operational preparations. We expect the acquisition to be finalized during the third quarter this year.
Through an agreement whereby it will take over approximately SEK 170bn in assets from the insurance company Folksam, Swedbank Robur has strengthened its position as one of the leading fund managers in the Nordic region. Swedbank Robur’s strong performance, which recently received recognition from Morningstar, among others, has been an important factor in winning new business.
During the year we will continue our journey to become a service leader. Several exciting new initiatives are under way, particularly in the savings area, which will benefit our customers.”