Swedbank AB (publ)'s second-quarter results will include a number of one-off items such as those related to higher resolution fees and changes in corporate taxes in Sweden.
The lender expects its Swedish risk-adjusted resolution fee for 2018 to reach 1.66 billion Swedish kronor, up from 1.21 billion kronor a year earlier. An adjustment of the reported resolution fee will occur during the second quarter, resulting in an expense 61 million kronor higher than the previous quarter.
Swedbank also expects to book impairments totaling 280 million kronor from the development of a new data warehouse and risk system, although this will not impact its common equity Tier 1 capital.
In addition, the lowering of Sweden's tax corporate tax rate will lead to a revaluation of the bank's deferred tax assets and liabilities. As a result, the bank's reported tax expense in its profit and loss statement will fall by 110 million kronor, while tax in other comprehensive income will rise by 100 million kronor. It noted, however, that the figures are preliminary and could be impacted by foreign exchange and interest rate levels.
Meanwhile, Swedbank said it will book a gain of 85 million kronor after its stake in Visa Sweden rose to 40.7% from 39.8% due to a positive arbitration result, and a tax-free capital gain of roughly 670 million kronor from the recent sale of business and credit research firm UC AB to Finnish credit information company Asiakastieto Group Oyj. The deal is expected to have a marginal impact on Swedbank's CET1 ratio, it noted.
As of July 2, US$1 was equivalent to 9.01 Swedish kronor.