By Dominic Chopping
STOCKHOLM – Swedbank AB on Tuesday reported second-quarter net profit broadly in line with expectations, as higher net interest income was partly offset by higher spending and the negative effects of the revaluation of its trading portfolio. .
Net profit fell to 4.71 billion Swedish crowns ($452.9 million) from SEK 5.56 billion, while net interest income rose 5.5% to 7.11 billion from SEK.
Analysts polled by FactSet had expected net profit of SEK 4.79 billion and net interest income of SEK 6.99 billion.
The cost cap of SEK 20.5 billion for 2022, with an additional SEK 500 million related to money laundering investigations, remains unchanged, he said.
“The mortgage sector is showing strength,” said managing director Jens Henriksson.
“But with higher interest rates and increased uncertainty, we are now seeing that it is taking longer for buyers and sellers to close deals in Sweden.”
Swedbank said US authorities were continuing to investigate the bank to combat money laundering and terrorist financing and that the various investigations were at different stages.
The bank ended the quarter with a common equity tier 1 capital ratio – a key measure of balance sheet strength – of 18.3%, compared to 18.5% in the previous quarter.
Write to Dominic Chopping at [email protected]