Major Bank Posts High Losses
SwedBank, one of the biggest banks in Scandinavia, has reported losses of over 400 million US dollars for the first quarter of 2009.
As a reaction their shares have fallen by 15% in the Stockholm exchange.
The bank has been hard hit by the financial crisis, but many analysts were expecting Swedbank to remain in the black. Instead major credit losses have pulled the balance sheet into the red.
Much of the bank’s current troubles are due to over-eager investments in Eastern Europe, especially in the Baltic Republics and Ukraine. Despite this, SwedBank made it clear on Thursday that it will continue operations in those countries.