Interim Report January - March

        Print
| Source: Swedbank AB
Michael Wolf, CEO at Swedbank, comments on the Q1 2014 results:
“Swedbank’s Q1 results were stable, the return on equity for continuing
operations was 14.6 per cent. Good customer activity and a favourable stock
market climate positively affected earnings in all three business segments. Our
intensive work to further increase cost efficiencies and productivity in all the
bank’s operations continues. Low risk and solid capitalisation has meant that
the bank could obtain financing on very good terms.”
“At the same time, the quarter has been marked by events in Ukraine, creating
uncertainty in the global economy. To date we have not seen any financial
effects of the crisis in our business.”

More comments can be found in the Q1 2014 report.

First quarter 2014
Compared with fourth quarter 2013

  · Ÿ  The result for the quarter for continuing operations amounted to SEK
3 980m (3 660)
  · Ÿ  Earnings per share for continuing operations amounted to SEK 3.62 (3.34)
before dilution and SEK 3.59 (3.31) after dilution
  · Ÿ  The return on equity for continuing operations was 14.6 per cent (13.6)
  · Ÿ  The cost/income ratio was 0.45 (0.46)
  · Ÿ  Net interest income amounted to SEK 5 483m (5 626)
  · Ÿ  Profit before impairments decreased by 1 per cent to SEK 5 094m (5 168)
  · Ÿ  Swedbank reported net recoveries of SEK 100m (32)
  · Ÿ  The Common Equity Tier 1 ratio according to Basel 3 was 18.3 per cent
(18.3 per cent on 31 December 2013)3)

First quarter 2014
Compared with first quarter 2013

  · Ÿ  The result for the period for continuing operations amounted to SEK
3 980m (3 916)
  · Ÿ  Earnings per share for continuing operations amounted to SEK 3.62
(3.57)1) before dilution and SEK 3.59 (3.54)1) after dilution
  · Ÿ  The return on equity for continuing operations was 14.6 per cent (15.3)
  · Ÿ  The cost/income ratio was 0.45 (0.45)
  · Ÿ  Net interest income increased by 2 per cent to SEK 5 483m (5 353)
  · Ÿ  Profit before impairments increased by 1 per cent to SEK 5 094m (5 039)
  · Ÿ  Swedbank reported net recoveries of SEK 100m (credit impairments of SEK
60m)

1) Including deduction of preference share dividend, earnings per share for Q1
2013 were SEK 1.63 for total operations after dilution. The calculations are
specified on page 49.
2) Russia and Ukraine are reported as discontinued operations (see the chart in
the pdf attached).
3) The Common Equity Tier 1 ratios for 2013 are based on Swedbank’s previous
calculation according to the new regulations.
The key ratios are based on profit and shareholders’ equity attributed to the
shareholders of Swedbank excluding non-controlling interests.