In Estonia Swedbank’s tax payments for 2017 increase by 31% to EUR89m

Swedbank’s tax payments for 2017 increased by 31% to EUR89m, the bank informed. This represents 1.1% of last year’s tax intake. Some EUR 43mn will be paid as income tax, EUR27m in labour taxes, EUR10m in VAT and EUR9m in different local fees, including payment to the deposit guarantee fund and surveillance fees. The growth of the tax payment reflects Swedbank’s decision not to accumulate further capital and pay out the entire profit as dividend. The bank’s profit fell by 3% to EUR170.3m last year. To note, corporate income is differed upon dividend distribution in Estonia.

The Estonian subsidiary of Sweden’s Swedbank is one of the biggest banks in the Baltic country. Its current capital and liquidity ratios have been standing at high levels. The halt of further capital accumulation, suggests that the bank sees the potential for profit in Estonia as rather limited, given the expected deceleration of the GDP growth. We recall that in 2015 the bank paid extraordinary high dividend of EUR400m.

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