Entercard Agrees to Sell Non-Performing Loans for SEK 4 Billion

Entercard, a wholly-owned subsidiary of Swedbank, has entered into an agreement to sell the non-performing segment of its consumer finance portfolio to Brocc Finance and Intrum. The portfolio of non-performing loans amounts to approximately SEK 4 billion.

The sale is expected to have several financial effects for Swedbank. The bank will recognize a positive revaluation of expected credit losses of approximately SEK 0.5 billion in the third quarter. Additionally, the transaction is anticipated to provide a capital benefit of approximately 3-5 basis points upon closing.

Furthermore, the agreement will result in an approximately SEK 100 million reduction in annual net interest income for Swedbank. This move is intended to improve the quality of Entercard's balance sheet and reduce its exposure to credit risk.

The transaction is expected to be finalized during the third quarter of the year. This strategic divestment allows Entercard to streamline its operations and focus on its core lending activities while managing its risk exposure.