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Like peers elsewhere, Nordic banks face surging inflation and interest rates fuelled in part by the war in Ukraine and lingering effects of the pandemic, lifting mortgage income but also squeezing corporate clients and households.
Swedbank’s second-quarter net profit stood at 4.71 billion Swedish crowns ($452.8 million) versus 4.62 billion in the preceding quarter and 5.56 billion a year ago.
The result lagged a mean forecast of 5.01 billion crowns, according to Refinitiv estimates.
“The result for the second quarter was strong with the second-highest net interest income to date,” Swedbank Chief Executive Jens Henriksson said in a statement. “Credit quality is good and credit impairments are low.”
Swedbank, a rival of banks such as Handelsbanken, SEB and Nordea, said interest income, which includes revenues from mortgages, rose to 7.11 billion crowns from 6.74 billion a year ago, above the 7.05 billion analysts had excepted.
The bank repeated its guidance for a cost cap for 2022 of 20.5 billion crowns.
($1 = 10.4020 Swedish crowns)
