Swedbank’s profit fell 15.7% y/y to SEK4.66bn (€430mn) in the third quarter after the lender had to incur increased costs of dealing with the money laundering scandal in its Estonian branch, figures showed on October 23.
Swedbank’s branch in Estonia is suspect of handling up to €20bn worth of suspicious transactions, including from non-resident clients based in Russia. The shady transactions flowed between 2010 and 2015, it is alleged.
Apart from the internal investigation it is carrying out, Swedbank is also being probed by authorities in the US, Sweden, and the Baltic states over the allegations, which surfaced in the Swedish media early this year.
Swedbank admitted to “historical shortcomings connected to the anti-money laundering work.”
The bank’s costs increased 29% y/y to SEK5.2bn in the third quarter, the bank said in its Q3 report. The rise in the costs was driven in part to “hiring more compliance staff and engaging two financial forensic firms as well as lawyers to deal with the investigations it faces,” according to Reuters.
Related Articles
Poland’s Orlen signs deal to supply Ukraine with LNG
Ukraine’s Naftogaz will purchase 100mn cubic metres of LNG from Poland’s Orlen, Ukraine’s biggest state-owned energy firm announced on March 7. The LNG will be transported from cargoes ... more
Swedbank Estonia CEO says Lithuania's bank taxes spooked investors' and foreign banks’ interest
Olavi Lepp, CEO of Swedbank’s Estonian branch, stated that Lithuania’s recently imposed temporary bank solidarity levy has dampened interest among new banks and foreign investors in the ... more
Citadele Bank profit in Baltics in H1 plummets 21% y/y to €50.9mn
Citadele, a pan-Baltic bank, reported a 21% decrease in net profit for the first half of 2024, totalling €50.9 million compared to €64.5 million in the same period last year, BNS, a Baltic ... more
Most Read
-
Indonesia expands military role in government, protesters clash with police in Jakarta
29 days ago
-
Serbian biotech Dren Bio sold to Sanofi for $1.9bn
30 days ago
-
Putin tells Russia's oligarchs that the return of Western business will not be easy or cheap
1 month ago
-
US sets six conditions for Iran talks in Trump letter to Supreme Leader
29 days ago
-
Korean opposition to push for impeachment motion against acting president
29 days ago