Swedbank Estonia announced yesterday that it made EUR 199.6m in profit last year which is 9% more than in 2011 and the bank’s biggest-ever profit in Estonia.
In the fourth quarter, the bank earned 63.3m euros in net profit or almost twice the third-quarter result. "Figures are impressive indeed," admitted the bank’s CEO Priit Perens. Perens said that record profits came from the decline in bad loan provisions that last year were EUR 40m lower than in 2011.
„Loans that we were not hoping to recover performed better than we expected,” said Perens, adding that the bank has recovered about 25% of its total initial provision of EUR 320m. The bank says that although its customers have become more active economically, the bank’s income from service fees remained at the 2011 level.
Perens said that he cannot rule out that Swedbank will adjust its structure of banking fees. „I am not saying that it will be made next month, but I cannot rule out it in the long term,” said Perens without going into further detail. Nordea Eesti reported that it ended last year with a profit of EUR 48m which is about 20% more than a year earlier.
Comparing the results of both banks, Swedbank continues to lose market share in loans and deposits, while Nordea has strengthened its position.