Swedbank Q3 net profits of SEK5.52 ($612m) are up 16% year-on-year and ahead of market forecasts.
Birgitte Bonnesen President and CEO stresses that Swedbank is not at risk of being drawn into the type of money laundering saga afflicting rival Danske.
In a statement, Bonnesen says: “Growing attention has been paid to how banks are preventing money laundering and other financial crime. For Swedbank it has always been high on the agenda. With a market-leading position in all four of our home markets comes a responsibility to help develop and strengthen the financial system and financial infrastructure.
“We take responsibility by closely dialoguing with supervisory authorities and decision makers in each country. We have also worked systematically and proactively to monitor payment flows in order to detect potential fraud.”
Swedbank benefitted in the third quarter from steady growth in lending volume. Similarly, Sweden mortgage volumes and corporate lending continues to rise.
Total lending in Swedbank’s Swedish operation rose by 6% year-on-year. Swedbank’s retail mortgage market share in Sweden remains at 24%.
Total deposits rose by 10% year-on-year.
Swedbank Q3 retail banking highlights
Swedbank kicked off two pilot projects in Sweden with new concepts for face-to-face meetings in order to increase availability for customers. A pop-up branch providing digital banking service and support also opened in the Mall of Scandinavia.
In addition, the bank has teamed up with fintech Asteria to offer financial planning solutions for SME customers.
Product highlights include the launch in the third quarter of a green mortgage. Specifically, customers can receive a ten basis point discount on their loan rate if their home meets certain sustainability criteria.
Bonnesen adds:”The latest quarter again showed that we have a strong core business that contributes to stable financial results.
“It gives us a solid foundation to stand on when working intensely to meet our customer needs and ensure that the bank remains competitive in the future.”