Swedbank has worked in a structured way to control costs without having recourse to massive cost-cutting programmes. The result is a reduction in the cost-to-income ratio from 57% in 2003 to 51% last year. The bank has also successfully held or improved its market leadership in areas such as mortgage lending, net new savings, deposits and payments.
In Sweden, a great effort has been made to improve efficiency. The time required to process a mortgage loan has been cut by 40% and at the same time, organisational efficiency has been increased.
The group’s Swedish mortgage lender, Swedbank Mortgage, recently converted its long-term funding into covered bonds as its main source of funding, meaning lower funding costs, increased liquidity for the group and access to an even broader investor base. The group is now in the process of re-branding its Baltic operation, Hansabank, to Swedbank, which emphasises the strategy of operating as a single group.
“We will continue our profitable journey under the present challenging financial conditions maintaining high asset quality, strengthening credit and risk control and also improving operational efficiency,” says CEO Jan Lidén.
