STOCKHOLM, Sweden, August 22, 2003 (PRIMEZONE) -- Interim report for ForeningsSparbanken (Other OTC:FGSKY) (Swedbank)
Operating profit rose by 25 percent to SEK 4,529 M
First half of 2003 in summary:
* Operating profit rose by 25 percent to SEK 4,529 M (3,612)
* Profit after tax increased by 30 percent to SEK 2,983M (2,292)
* The return on equity rose to 15.3 percent (12.2)
* Earnings per share increased to SEK 5.65 (4.34)
* Total income rose by 7 percent to SEK 12,254 M (11,462)
* Net interest income rose by 3 percent to SEK 7,991 M (7,733)
* Net commission income decreased by 9 percent to SEK 2,701 M
(2,956)
* Net profit on financial operations rose to SEK 412 M (70)
* Expenses decreased by 1 percent to SEK 6,807 M (6,899)
* Loan losses decreased by 23 percent to SEK 672 M (868)
* The capital gain on the sale of the shares in Erste Bank
amounted to SEK 489 M
* The shareholding in SpareBank 1 Gruppen was written down by SEK
311 M
Group profit
The Group's operating profit for the first half of 2003 rose to SEK 4,529 M (3,612). Income rose to SEK 12,254 M (11,462), while expenses decreased to SEK 6,807 M (6,899). Loan losses decreased to SEK 672 M, compared with SEK 868 M in the first half of 2002. Profit for the period was affected by a capital gain of SEK 489 M on the sale of the shares in Erste Bank and by the writedown of the shareholding in SpareBank 1 Gruppen by SEK 311 M. The return on equity rose to 15.3 percent (12.2), while earnings per share rose to SEK 5.65 (4.34).
Operating profit in the second quarter of the year rose by SEK 563 M compared with the first quarter, to SEK 2,546 M (1,983). The Group's profit trend in recent quarters is shown on page 10.
Income
The Group's income rose by SEK 792 M or 7 percent compared with the first half of 2002 to SEK 12,254 M (11,462). Excluding the capital gain on the sale of the shares in Erste Bank, the income increase was SEK 303 M or 3 percent. Net interest income rose by SEK 258 M, partly due to higher lending volumes, while net commission income decreased by SEK 255 M. Net profit on financial operations rose by SEK 342 M primarily due to higher income from fixed income and foreign exchange operations.
Total income during the second quarter increased by SEK 642 M or by 11 percent to SEK 6 448 M compared with the first quarter. Excluding the capital gain, the increase was SEK 153 M or 3 percent. Net interest income The Group's net interest income amounted to SEK 7,991 M (7,733) during the first half-year. In the Swedish retail operations, net interest income from lending rose by approximately SEK 300 M due to higher volumes and margins. Lower deposit margins affected net interest income negatively by approximately SEK 300 M, while higher deposit volumes added slightly over SEK 100 M. Net interest income in Swedbank Markets improved by SEK 89 M. In the International banking operations, net interest income rose by SEK 36 M, mainly through Hansabank's volume growth.
Net interest income in the second quarter was slightly lower than the first quarter. Net interest income from Spintab's mortgage lending continued to develop positively, while net interest income from FI- Holding declined. Dividends received Dividends received amounted to SEK 99 M (87).
Net commission
income Net commission income amounted to SEK 2,701 M (2,956). Net commission income from payment services developed positively, rising by SEK 49 M. Asset management commissions declined by SEK 322 M due to lower stock prices and a higher share of savings in fixed income funds, where commissions are lower. Brokerage commissions fell by SEK 22 M due to lower stock market volume.
Net commission income rose by SEK 101 M during the second quarter of 2003 compared with the first quarter, to SEK 1,401 M (1,300). The increase is mainly due to higher lending, securities and payment processing commissions. Net profit on financial operations Net profit on financial operations amounted to SEK 412 M (70). Profit from trading in stocks and fixed income securities rose by SEK 275 M, while profit from trading in other financial instruments declined by SEK 104 M. Income from foreign exchange operations rose by SEK 171 M.
Net profit on financial operations rose by SEK 24 M during the second quarter of 2003 compared with the first quarter. Other income Other income amounted to SEK 1,051 M (616) during the first half-year. Income was affected by a capital gain of SEK 489 M from the sale of the shareholding in Erste Bank in June 2003. The first half of 2002 included a capital gain of SEK 85 M from branch sales.
Stockholm, August 22, 2003
Deloitte & Touche AB Ernst & Young AB
Jan Palmqvist Torbjorn Hanson Peter Markborn
Authorized Public Authorized Public Authorized Public
Accountant Accountant Accountant
Appointed by the
Swedish
Financial Supervisory
Authority
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