Credit impairments vary over time

Swedbank’s credit impairments are normally low, since we have long maintained low risk-taking. In 2020, however, they were the highest in the last decade due to the pandemic. Credit impairments are recognised in accordance with IFRS 9, which is based on an assessment of expected future credit impairments. This means that the provisions for expected credit impairments can change either up or down over time, depending on how the future outlook changes. Although the outlook improved in the latter part of 2020, Swedbank made the determination that the uncertainty surrounding the economic recovery is still so high that it would be inappropriate to reduce the provisions for a macroeconomic slowdown allocated in the first part of 2020.