Analytics, Banks, Financial Services, Latvia

Key highlights from DBRS's commentary discussing the 9M19 results of the large Swedish banks include:
• Revenue pressure continues on the back of low interest rate environment, increased competition and weakened economic conditions.
• Banks also face pressure on costs due to business and compliance and/or AML-related issues.
• Nonetheless, the banks remain amongst the most profitable and most efficient banks in Europe.

"In DBRS Morningstar's view, the net profits of the large Swedish banks have been pressured in 9M19. Revenues remain resilient but challenged as a result of ongoing low interest rates, increased competition, and toughened macroeconomic conditions, while costs have been impacted by additional costs that the banks had to take, mainly relating to restructuring and compliance/anti-money laundering issues. However, the banks remain amongst the most profitable and efficient banks in Europe", said Lito Chousiada, Assistant Vice President from DBRS's FIG team.