Stockholm  - Swedish banking group Swedbank Monday said it was to withhold its planned dividend for 2008, citing "a continued deterioration of macroeconomic conditions" in several markets including the neighbouring Baltics.

A month ago, the bank's board had proposed a dividend of 2.9 billion kronor (315 million dollars) for the financial year 2008. The dividend was to be halved to 4.50 kronor per share.

"This proposal would further strengthen our capital base by 2.9 billion kronor and increase the financial strength in challenging times," board chairman Carl Eric Stalberg said.

The move was backed by shareholders with over 45 per cent of the votes and capital in the bank.

In connection with its full-year 2008 report released last month, the bank made a write-down in Ukraine totalling 1.4 billion kronor.

Swedbank's loan losses doubled in the fourth-quarter to 1.6 billion kronor.

Last year, Swedbank was the first main banking group to join a voluntary guarantee programme set up by the Swedish government. The group also raised 1.51 billion dollars by issuing new shares.

Swedbank was last year in the sights of analysts over its presence in the Baltic region where economic growth has slowed sharply.

The group has 9 million private customers and 600,000 corporate customers and branches in Sweden, the Baltic countries and Ukraine. (dpa)