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Visa Europe sale boosts Swedbank Q2 profit


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Visa Europe sale boosts Swedbank Q2 profit

Swedbank AB(publ) reported second-quarter profit attributable to shareholdersof 6.27 billion Swedish kronor, up from 3.67 billion kronor earned in theyear-ago period.

EPS rose to 5.62 kronor from 3.30 kronor a year earlier.

The bank said the increase was mainly driven by the 2.12 billion kronortax-exempt incomefrom the finalization of the sale of Visa Europe to Visa Inc. Excluding the income related to Visa Europe,second-quarter attributable profit amounted to 4.16 billion kronor.

The group's net interest income for the quarter amounted to 5.73 billionkronor, compared to the year-ago 5.70 billion kronor. Net commission incomedipped to 2.80 billion kronor from 2.84 billion kronor.

Net gains and losses on financial items at fair value amounted to 877million kronor, of which 457 million kronor were related to the Visa Europesale. The year-ago result was 82 million kronor.

Net credit impairments increased to 538 million kronor from 6 millionkronor a year earlier, due to increased provisions for few oil-relatedcommitments within the bank's large corporates and institutions division.

ROE for the quarter was 21.0%, compared to 13.4% a year earlier.

For the first half, attributable profit rose to 10.58 billion kronor fromthe year-ago 7.99 billion kronor. ROE was 17.4%, compared to 14.1% a year ago.

The group's common equity Tier 1 ratio stood at 23.0% at the end of June,compared to 23.7% at March-end and 22.4% at June 30, 2015.

As of July 20, US$1 was equivalent to 8.59 Swedish kronor.