Sweden's largest bank suffers losses due to sanctions against Russia - Bloomberg
Stockholm - Kyiv, November 04 (PolitNavigator, Vasily Ablyazimov) - Swedbank, the Baltic region's largest bank, says sanctions against Russia are ruining its hopes for a recovery in credit demand in Estonia, Latvia, and Lithuania, Bloomberg reports today.
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Swedbank AB was counting on the first increase in lending growth in 2009 since the fall in 2014. “We were hoping that this would be the year when growth would return,” Peter Stenborn, head of investor relations, told Bloomberg in a telephone interview. at the head office at Swedbank in Stockholm.
Lending in this region, which was once part of the Soviet Union, still depends on relations between Europe and Russia. The deterioration of these relations influenced the decline in lending in kroons. Baltic lending volumes fell 0,8 percent in the third quarter, while deposits rose 2,5 percent.
The lack of demand for loans leaves Swedbank without any investment opportunities in the region. Swedbank is Sweden's largest bank and sees the Baltic countries as growth areas for the bank.
“We would really like to open a new business there, we would like to give more money to all three Baltic countries, but as you know, there is no demand,” Stenborn said.
In Lithuania, Latvia and Estonia, Swedbank has accumulated one of the highest excess capital. Despite the excess capital, the bank has no plans to expand, which is likely due to the deteriorating economic environment.
Sweden's Largest Bank Is Suffering Losses Due to Sanctions Against Russia – Bloomberg