Swedbank Commits to 75% Dividend as Profit Is Little Changed

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Swedbank AB said profit was little changed last quarter as Sweden’s biggest mortgage lender committed to its shareholder payout target.

The bank’s net income reached 3.81 billion kronor ($447 million) in the three months through December, it said on Tuesday. The Stockholm-based lender maintained its dividend policy of returning 75 percent of profit to owners, but its payout of 10.70 kronor per share for 2015 was lower than the 11.35 kronor shareholders got a year earlier.

Swedbank opened 2.4 percent lower and traded 1.2 percent down at 174.70 kronor as of 9:06 a.m. in Stockholm.

“Though earnings remained under pressure from lower interest rates, increased mortgage and deposit volumes contributed positively,” Michael Wolf, the bank’s chief executive officer, said in the statement.

Net interest income slipped 1 percent to 5.76 billion kronor, while net commission income was unchanged at 2.88 billion kronor, Swedbank said. The lender’s total income was up 1 percent in the period.

— With assistance by Christian Wienberg

(Adds share price in third paragraph.)
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