Nordic Credit Rating (NCR) said today that, despite some concern over Swedish savings banks' large real-estate exposure, they enter the second half of 2022 in good health both in terms of earnings and capital. Rising interest rates have not yet translated into higher interest margins for Swedish savings banks, as funding costs have increased faster than lending rates, but we expect margins to improve even as the banks start raising deposit rates.
"As stable as the savings banks are, they are not immune to the growing economic uncertainty", said NCR credit analyst Ylva Forsberg. "However, we believe they are well positioned to weather a tougher economic climate going forward."
Contacts:
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com