Record-high interest rates behind the big banks’ billion-dollar party

Record high interest rates behind the big banks billion dollar party

For the first time, the big Swedish banks distribute profits of over SEK 104 billion. It is, of course, the record high interest rates that are behind the billion rollover, which has enabled major banks such as SEB, Nordea and Swedbank to carve gold.

Lastly is Handelsbanken, which did not want to be worse than its competitors.

Handelsbanken is going against the grain – highlights the report

“Drömgränsen” catches the eye

The business world calls it on Wednesday to blow the “dream limit” of SEK 100 billion in share dividends. Whether Swedish households, with their record high interest rates on mortgages and private loans, would agree that it is some kind of dream scenario is not as certain.

But Handelsbanken gave a dividend of SEK 13 per share – well above the analysts’ expected SEK 9.

One of those upset is the Minister of Finance, who said in January that it was a big deal.

“It is clear that the banks must make a profit, otherwise we will have a weak financial system. But these enormous profits, which are now distributed, are eye-catching,” said Elisabeth Svantesson to TT in January.

“The profit goes to the Swedish people”

At the time, the analysts still believed that the banks’ profits would amount to NOK 90 billion.

It reports The business world on Wednesday.

But SEB’s CEO Johan Torgeby meant, for example, that the profit distribution also benefits the Swedish people:

“Our contribution when households are having a hard time is to provide a return on investments. Another type of income, which many millions of people in Sweden depend on, especially pensioners.”

Storbanken: No interest rate cuts until 2024

The stock goes up

On the report, Handelsbanken went against the flow on the Stockholm Stock Exchange on Wednesday, which News24 written about before.

The A share rose by 5.7 percent to SEK 121.60 each, while the B share rose by roughly the same amount in absolute terms, but slightly less in percentage: Up 3.87 percent to SEK 148.20 per share.

It appears from Dagens Industris stock exchange control after Wednesday’s close.

Swedbank gives the most

According to Affärsvärlden’s review, Handelsbanken gives a proper dividend to the owners: SEK 13 per share, which gives a total dividend amount of SEK 25.74 billion.

In absolute terms, this is the second most of the four major banks. Only Nordea, the largest bank, pays out more – SEK 36.55 billion.

The dividend per share landed at 0.92 euros.

SEB pays out SEK 11.50 per share for a total amount of SEK 24.61 billion.

Swedbank gives the most per share, SEK 15.15 for a total amount of SEK 17.15 billion to the owners.

Read more about Swedish economy:

Handelsbanken is going against the grain – highlights the report

The central bank introduces interest on the salary account – then it starts to apply

Handelsbanken wants to buy Norwegian operations

Storbanken: No interest rate cuts until 2024