Swedbank chair-Baltic loans not reason for issue
Swedish bank Swedbank’s chairman said on Monday the situation regarding the firm’s loan portfolio in the Baltic region was not the reason it was raising capital via a rights issue.
Chairman Carl Eric Stalberg noted the bank has said it expected loan losses in the Baltics of some 0.7 percent of the total loan portfolio in 2008 and 1.2 percent in 2009.
Swedbank said earlier on Monday it would raise 12.4 billion crowns ($1.56 billion) in a rights issue to boost capital in the face of market turmoil and a weakening broader economy. (Reporting by Simon Johnson and Adam Cox; Editing by John Stonestreet)
(Corrects paragraph 2 to read “of some 0.7 percent of the total loan portfolio in 2008 and 1.2 percent in 2009″ instead of “of some 70 basis points and 120 basis points in 2009″ to make clear reference is being made to losses in 2008 and 2009 as a percentage of total loan portfolio)
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Tags: Loans