Swedbank Profit Falls as Lower Interest Rates Continue to Bite

By Elena Vardon

Swedbank reported a smaller-than-expected decline in net profit for its third quarter as lower interest rates continued to drag on its top line.

The Swedish group--which also operates in Estonia, Latvia and Lithuania--on Thursday reported that net profit for the three-month period fell to 8.51 billion Swedish kronor ($904.7 million) from 9.38 billion kronor in the same quarter the previous year.

The bank posted a 11% decline in total income to 17.105 billion kronor for the period. Net interest income--the difference between what banks earn on loans and pay clients for deposits--contributed 10.82 billion kronor to the total while commissions brought in 4.12 billion kronor on lower card commissions and higher payment-related costs. Foreign-exchange effects hurt the result, it said.

Analysts had expected net profit of 7.55 billion kroner on total income of 16.65 billion kroner, according to a company-compiled consensus.

"Swedbank stands strong and is well-positioned for sustainable growth and profitability," Chief Executive Jens Henriksson said.

He added that economic activity remains strong in Lithuania, but weaker in Estonia, Latvia and Sweden, where some signs of improvement are emerging.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

October 23, 2025 01:40 ET (05:40 GMT)