Major bank Swedbank reported a lower operating profit - before impairment charges, taxes and fees - for the quarter, SEK 10.25 billion compared with SEK 10.8 billion in the corresponding quarter last year.
Net interest income - that is, what the bank earns from the difference between deposit and lending rates - rose 3 percent to SEK 11.3 billion. However, in the Swedish operations, net interest income fell by 8 percent.
Competition
According to Jens Henriksson, the interest margin fell slightly, to the lowest level in the bank's history, as far as he knows, something that his colleague at Nordea also said the other day.
Why is that?
"That's because there is very tough competition. There are many of us who want to grow," says Henriksson.
According to him, the bank managed to defend its position. One in five new mortgage customers on the market chose Swedbank.
More people borrow more
Net commissions - what the bank collects on fund and card fees, among other things - rose even more, by 14 percent to 4.5 billion.
From April 1, new mortgage rules apply, making it somewhat easier to borrow a higher amount, with the aim of helping young people who want to enter the housing market.
"My assessment is that they have had the desired effects. We see that we have had an increased proportion where people are taking higher loans as a proportion of the value," says Henriksson.
