Swedbank comments the past day’s discussion on the bank’s repurchase of shares
Swedbank’s Board of Directors received a mandate at the Annual General Meeting 2011 from the bank’s shareholders to repurchase a maximum of 10 percent of outstanding shares. The background for the decision is that Swedbank – based on the risk level in the bank’s balance sheet as shown by various stress tests – set a target for the bank’s core Tier 1 capital ratio of 13 percent.
- (1888PressRelease) September 01, 2011 - At the start of 2011, Swedbank’s core Tier 1 ratio was 13.9 per cent and at the end of the first quarter 2011, the ratio was 14.9 per cent. Swedbank’s Board of Directors therefore decided to start repurchase shares at the beginning of the second quarter. Swedbank bought back shares to a value of SEK 3.5 billion during the second quarter. Despite this, Swedbank’s core Tier 1 ratio was 14.8 per cent at the end of the second quarter 2011, a level placing the bank as one of the absolutely best capitalized banks in Sweden as well as in Europe.
Swedbank’s CEO and President Michael Wolf comments:
”We have transformed Swedbank into a robust bank with a strong balance sheet. Based on the knowledge we today have regarding the macro economy and the risk level in Swedbank’s balance sheet, the decision regarding our repurchase programs remains. Despite the buy-backs, we make the assessment that our core Tier 1 capital ratio will be higher at the end of the year then it was at the beginning of the year. We continue to have one of the highest core Tier 1 ratios of all Swedish and European banks. I share the government’s view that we have a serious global debt crisis which will have effects on the banking system. We continuously review the conditions for our capitalization. If the risk level in the global economy increases, Swedbank will continue to act responsibly with society’s, our customers and owners best in mind.”
For further information, please contact:
Thomas Backteman, Head of Corporate Affairs, Swedbank, phone: +46 708 311 166
Anna Sundblad, Press Manager, Swedbank, phone: +46 70 321 39 95
Swedbank promotes a sound and sustainable financial situation for the many people, households and companies. Our vision is to contribute to a development “Beyond Financial Growth”. As a leading bank in the home markets Sweden, Estonia, Latvia and Lithuania, Swedbank offers a wide range of financial services and products. Swedbank has 9.4 million retail customers and around 650,000 corporate customers with 321 branches in Sweden and over 200 branches in the Baltic countries. The group is also present in other Nordic countries, the U.S., China, Russia and Ukraine. As of 30 June, 2011 the group had total assets of SEK 1,758 billion. Read more at www.swedbank.com