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Photo by Vladimir Ivanovo (V)
Swedbank Lithuania, the first major bank to announce its 9-month results, saw its net interest, fee and service income increase, and the deposit portfolio continued to grow. May business financing. The destination of the Group’s dividend last year is still uncertain.
Swedbank in Lithuania announced its 9-month results on Tuesday morning.
[infogram id=”28decae3-f45e-40af-aee6-f025aeb43caf” prefix=”490″ format=”interactive” title=”swedbank 2020q3″]During the nine months, Swedbank Lithuania’s loan volumes grew by 2% compared to the same period in 2019. Residential financing grew by 10% and financing to commercial clients grew by 11%
2020 At the end of the third quarter, provisions were LTL 5 million. Eur, for the same period in 2019. 0.4 million were recorded. Restorations of accumulation of value in euros. The overall quality of Swedbank’s loan portfolio remains good, the bank says. Loan portfolio without losses in 2020 at the end of the third quarter amounted to 73 million. EUR.
It is true that provisions did not increase for three quarters, during the first half of the year Swedbank Lithuania’s provisions amounted to LTL 5 million. EUR.
The recovery of the Lithuanian economy after the negative consequences of the pandemic lasted for three quarters. As wages and household consumption continued to grow, we saw strong demand for home finance and our bank’s retail loan portfolio grew 10%. On the other hand, the demand for business financing has been weak, since the pandemic will generate uncertainty that slows down investment and development projects. Currently, the majority of corporate clients to whom deferred payments have been applied are again meeting their credit obligations poorly, according to the report, quoting Dovil Grigien, head of Swedbank Lithuania.
Group results
At the end of October, on the occasion of the bicentennial of the Swedish banking group Swedbank, net wage income for the first nine months increased 4% to LTL 20.3 billion. SEK (EUR 2 billion).
Net fee and commission income increased 2% to $ 9.4 billion. SEK.
Provisions for 9 months, year-on-year, increased from LTL 481 million. SEK to 3.8 billion. SEK. During the three quarters, the group made provisions for 425 million. SEK.
9-month earnings fell 45% year-on-year to $ 8.4 billion. SEK.
The 9-month capital ratio (ROE) ranged between 15.3% and 7.8% annually.
The coronavirus crisis has once again demonstrated the importance of a financial cushion. Households save more than usual by a quarter. The same goes for companies. The deposit portfolio reached a record in three quarters, the report quotes Jens Henriksson, chairman and chief executive officer of Swedbank Group.
The management of the Swedbank Group has doubts about the payment of dividends.
The Board of Directors continues to consider the issue of dividends for 2019. The bank has a strong financial position and we want to pay dividends. In addition, we monitor current developments and take into account institutional assessments, we monitor the development of the pandemic, says J. Henriksson.
Although the recovery in the first half of the year after the historic slowdown in the Swedish economy was observed in autumn, the Swedbank Group suggests that market volatility should be treated with caution as the number of COVID19 cases increases.
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