Swedbank's ability to distribute dividends has in previous years been hampered by the risk of large US fines, according to CEO Jens Henriksson.
This risk has decreased since the US Department of Justice recently closed a lengthy investigation into the bank without taking any action.
The bank has a strong capital position because the bank withheld dividends for a long time. This is now being returned to our owners, he says.
“There is uncertainty”
Henriksson points out that despite the billions now being distributed, there remains a large buffer above regulatory requirements that the bank can distribute to the owners in the future.
But there is uncertainty. Not least because we still have an American investigation, he says.
The bank is reviewing its capital models and taking geopolitical uncertainty into account, according to Henriksson.
SEB's board of directors has decided on a new share buyback program and, like Swedbank, proposes an extra dividend on top of the regular one.
In total, this amounts to almost SEK 23 billion for the owners this year.
Roughly, we give 50 percent of the surplus we generate to the shareholders. It's to the pension funds and foundations, so it comes back to society. It's reinvested the same day they receive it, in other companies and maybe also in SEB, says CEO Johan Torgeby.
He explains the extra dividend by saying the bank must not have too large a buffer against the capital requirement.
Net interest income is under pressure
At the same time, the banks' net interest income is being squeezed. Torgeby now hopes that customers will start investing more in their homes, so that the bank's lending increases and net interest income is thus strengthened.
"Do we want to see higher growth among households, that we buy and build better homes and upgrade our homes? We haven't really seen that yet," he says.
Handelsbanken's report will not be available until next week.
Corrected: In a previous version there was an incorrect figure about SEB's buyback program.
Joakim Goksör/TT
Johanna Ekström/TT
Facts: Bank dividends
TT
Swedbank: The board of directors proposes a dividend of SEK 29.80 per share, including an extra dividend of SEK 9.35. This gives a total of SEK 33.7 billion to the owners. The bank reports a profit before impairments, bank taxes and resolution fees of SEK 11.1 billion, 7 percent lower than the corresponding quarter a year earlier.
Nordea: Distributes SEK 34 billion (0.96 euros per share) and announces buybacks on top of that. The bank reports increased profit before loan losses, up 3 percent to 1.56 billion euros.
SEB: Distributes nearly SEK 23 billion, corresponding to SEK 8.50 per share in ordinary dividend and SEK 2.50 in an extra dividend. The bank reports an 8 percent drop in profit before items affecting comparability to SEK 9.2 billion for the fourth quarter of last year.
