Saturday, February 15, 2025

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Banks reap multi-billion profits during crisis

The destruction of the European economy

Published 20 July 2023
– By Editorial Staff
Swedbank and SEB are making big money from the economic crisis.

Swedbank doubles its operating profit, and Wallenberg’s SEB’s operating profit exceeds SEK 12 billion. At the same time, the economic crisis becomes more difficult for ordinary Swedes, many of whom have to cope with higher interest rates and skyrocketing prices for electricity and food.

Swedbank, one of Sweden’s largest mortgage banks, reports an operating profit of more than SEK 12 billion – compared with about SEK 6 billion for the same period last year. The result is described as “exceptionally strong”.

It is mainly driven by net interest income, says Swedbank CEO Jens Henriksson.

Net interest income is what the bank earns from the difference between deposit and lending rates, and this increased from 7.1 billion to 12.8 billion in one year, notes major Swedish newspaper Svenska Dagbladet.

If we look at the reasons for this, we see that mortgage margins continued to fall this quarter by 6 points (0.06 percentage points), but deposit margins rose, Henriksson added.

SEB, which is controlled by Sweden’s most powerful financial family Wallenberg, is doing almost as well its operating profit for the second quarter was SEK 12,093 million, compared with SEK 7,234 million for the same quarter last year.

Here, too, profits were “better than expected” and net interest income rose from SEK 7,742 million to SEK 11,881 million.

According to the quarterly report, it is mainly the deposits of savers that make SEB’s profit increase significantly.

It should also be noted that Nordea also posted a result “above expectations” with an operating profit of 1,750 million euros for the quarter before credit losses. Handelsbanken has not yet published its quarterly report.

Sweden’s big banks have been criticized for years for profiting from economic crises and the financial misery of ordinary people. While Swedbank’s CEO admits that “many people look at the banks and feel a certain irritation,” he still thinks it is positive that the banks are making large profits.

It’s good that banks make money. It means we can lend more money, and if things get worse, we have a good buffer to deal with it.

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Swedish food prices soar – up 25 percent in three years

The destruction of the European economy

Published 9 January 2025
– By Editorial Staff
The price was increased on almost 36,000 food products last year.

Food prices in Sweden have risen by 25% over the past three years, according to a new report from Matpriskollen, a Swedish consumer price tracking organization. In 2024, the most significant price increases were seen in chocolate, olive oil, coffee, and dairy products.

In 2024, food prices increased by 2.8%. If other grocery products are also included, the increase is 2.1%.

Overall price increases have reached 25% since January 2022, according to the report.

The increases vary between stores, and last year they were most noticeable at City Gross, Ica Kvantum, Hemköp and Ica Supermarket. At the same time, some stores are trying to compete by keeping prices lower.

– Maxi is chasing Willys for low prices and in many cases trying to match prices. The price difference on comparable items is around 4% between Willys and Maxi. Lidl, which also offers low prices, has the same price level on directly comparable items as Willys, says Ulf Mazur, CEO and founder of Matpriskollen in a press release.

36 000 products became more expensive

In 2024, the price of almost 36,000 products increased. The increase was particularly marked for cocoa, which has made chocolate on average 17% more expensive. Vinegar and oils also rose by 12%, with olive oil in particular recording a sharp price increase.

Coffee prices have reached their highest level since 1972, with an 18% increase over the year. Dairy products, meanwhile, have risen by 4.7%.

Organic goods rose by 3.6% over the year, according to Matpriskollen.

Doubling of working retirees in Sweden

The destruction of the European economy

Published 4 April 2024
– By Editorial Staff
Older men tend to have higher employment rates than women.

According to Statistics Sweden (Statistiska Centralbyrån – SCB), twice as many older people are employed today than two decades ago. Men generally have a higher employment rate than women.

Men aged 65-69 worked an average of 27 hours per week, while women in the same age group worked an average of 24 hours per week. In the 70-74 age group, men worked on average 23 hours per week and women 18 hours. In 2023, the employment rate for the age group 75-89 in Sweden was seven per cent, or 65,700 people. For the 65-74 age group, the figure has doubled in two decades.

– More older people are working after retirement. The 65-74 age group has gone from an employment rate of 10 percent in 2001 to 20 percent in 2023, says Louise Stener, a statistician at Statistics Sweden, in a press release.

Women are more likely to work in health and social care, while men are more likely to work in agriculture and horticulture. At the same time, more older people are actively looking for work, and the proportion of unemployed older people is now twice as high as it was ten years ago.

– This suggests that there is an untapped labor supply even at older ages, says Stener.

The report is based on statistics from Statistics Sweden’s labor force surveys of people aged 55-89 in Sweden.

Four out of ten single Swedes borrow money to pay for essentials

The destruction of the European economy

Published 31 March 2024
– By Editorial Staff
Rising prices have made life extremely difficult for many single parents.

Four out of ten single families have had to borrow money in the last six months, according to a new Sifo survey. At the same time, one in five single people have been unable to afford food on one or more occasions.

The survey, commissioned by the Swedish Tenants’ Association (Hyresgästföreningen), Majblomman (an artificial flower sold by schoolchildren for charity), Save the Children (Rädda Barnen) and the Swedish Red Cross (Röda korset), reveals a tougher daily life for the most vulnerable families. Rent increases, high interest rates and rising food prices have put extra pressure on families with limited financial resources, and the situation has become more serious than last year.

Three in ten cohabiting parents and four in ten single parents say they have had to borrow money to pay for the basics in the last six months. This is a significant increase from last year, according to the survey.

In addition, nearly one in two lone parents and one in three low-income cohabiting parents say they have not been able to afford nutritious food every day of the week. One in five single parents cannot always afford to eat well. At the same time, around one in two lone parents and more than three in ten cohabiting parents have struggled to pay for their children’s leisure activities.

The need for effective family policies

– We know that lone parents on low incomes find it particularly difficult to make ends meet. In Save the Children’s activities, we meet single mothers who tell us how difficult it is to manage life on a low income. We need an economic family policy that works, where child benefits follow the cost trend and are increased, said Åsa Regnér, Secretary General of Save the Children, in a press release.

The survey was based on interviews with families with children under the age of 18. The main target groups were single people with an income of less than SEK 29,500 per month and couples with an income of less than SEK 42,000 per month, as well as a control group corresponding to families with children regardless of household income.

Swedish government: “Unemployment will continue to rise”

The destruction of the European economy

Published 12 February 2024
– By Editorial Staff
Minister for employment and integration Johan Pehrson at Tuesday's press conference.

Employment fell in the fourth quarter of last year, while unemployment rose to 8.0%. The number of bankruptcies is also at a record high.

Statistics Sweden’s (Statiska centralbyråns) latest labor force survey shows that unemployment has risen to 8.0 percent, seasonally adjusted, from 7.5 percent in 2022. The government forecasts that it will reach 8.5% in 2025, which is 40,000 more unemployed than in 2023.

– Despite the relatively weak economy, many employers are looking for qualified people to hire. If you lose your job, you should be prepared to relocate or train. Some parts of the country are crying out for workers while unemployment is rising. It doesn’t make sense, says employment and integration minister Johan Pehrson at a press conference.

Unemployment is highest among the foreign-born, who already had significantly higher unemployment rates before the recession.

Employment in the Swedish labor market also fell in the fourth quarter, and the government predicts that it will continue to do so throughout the year. At the same time, the number of bankruptcies is at a record high and will reach its highest level since the 1990s in 2023.