SBAB Bank´s CEO, Carl-Viggo Östlund, comments: BAB Bank displayed a strong performance in the first quarter, with increases in net interest income and in earnings from under-lying business operations compared with the corresponding period in 2011. This increase was mainly due to stronger demand, higher average volumes and improved earnings in the lending operations. However, the market value of financial instruments resulted in unrealised negative effects on operating profit, which, along with development costs, was the main reason for the loss we reported.
In January and February, the market for retail deposits rose SEK 6.5 billion, with SBAB Bank accounting for 29 percent of this increase. In March, SBAB Bank´s retail deposits rose SEK 1.4 billion. These highly robust figures demonstrate that our strategy of offering straightforward and clear savings accounts and a competitive savings rate has been successful.
The recent discussions regarding the transparency of margins on mortgage rates are relevant. Funding costs for banks have increased sharply since the financial crisis in 2008 and, as a result, there no longer exists the same correlation between the repo rate and mortgage rates. Accordingly, we will now work to determine how we can contribute to increased transparency by presenting our pricing procedures for residential mortgages in a clear and straightforward manner.
The first quarter of 2012 compared with the fourth quarter of 2011
For balance sheet items and information concerning capital adequacy, all comparative figures in parentheses refer to the figures at the preceding year-end.
For further information, please contact:
Carl-Viggo Östlund, CEO, SBAB Bank
Telephone: +46 8 614 43 01, Mobile: +46 727 17 43 01, email@example.com
Bernd Schmitz, Chief Press Officer, SBAB Bank
Telephone: +46 8 614 43 94, Mobile: +46 727 44 43 94, firstname.lastname@example.org