Swedbank halt repurchase of own shares
Given the intensified financial anxiety in Europe, the bank’s management has suggested to the Board that further repurchases are being halted for the time being.
- (1888PressRelease) September 15, 2011 - ”During the past weeks, the situation in Europe has worsened significantly. We see today no altered risk in our portfolio, but the perception of our buyback program is not supporting Swedbank’s brand in the current market situation. On my recommendation the Board have decided to halt further repurchases until the market situation becomes clearer”, concludes Michael Wolf, CEO and president of Swedbank.
Swedbank’s Board of Directors received a mandate from shareholders at the AGM 2011 to repurchase a maximum of 10 per cent of outstanding shares up until the AGM 2012. The background to the decision was that Swedbank, given the risk level in the bank’s balance sheet as shown in various stress tests, had decided upon a target for the Core Tier 1 capital ratio of 13 per cent.
Swedbank has since 29 April 2011 repurchased shares continuously, taking into account Swedbank’s capital situation, existing regulation and market situation. Swedbank’s Core Tier 1 capital ratio was at the end of the second quarter 14.8 per cent, a level making the bank one of the best capitalised banks in Sweden as well as in Europe.
For further information, please contact:
Lars Idermark, Chairman of the Board, Swedbank, tfn: +46 8 781 10 01
Michael Wolf, CEO and President, Swedbank, phone: +46 8 585 926 66
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