Swedbank Lifts Dividend After Net Profit Beat Forecasts
By Dominic Chopping
STOCKHOLM--Swedbank raised its dividend after reporting a forecast-beating increase in fourth-quarter net profit as higher interest rates continued to lift net interest income.
The Swedish lender said on Wednesday that net profit rose to 8.32 billion Swedish kronor ($793.3 million) compared with SEK6.79 billion in the prior-year period, as net interest income rose 22% to SEK13.33 billion.
Analysts polled by FactSet had expected net profit of SEK8 billion and net interest income of SEK12.89 billion.
The bank said net interest income was also boosted by lending rates that have increased more than funding costs.
"Our good profitability enables us, this year and in 2025, to temporarily further increase investments by SEK1 billion per year," Chief Executive Jens Henriksson said.
The bank ended the quarter with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 19.0% compared with 17.8% the prior year.
Swedbank proposed a dividend of SEK15.15, up from SEK9.75.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
January 24, 2024 01:48 ET (06:48 GMT)
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