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By Johan Ahlander
STOCKHOLM (Reuters) -Sweden’s Swedbank reported a third-quarter net profit above expectations on Wednesday, helped by cost cuts and one-off effects.
The Nordic country’s biggest mortgage lender said net profit rose to 9.4 billion crowns from 9.1 billion a year ago and against a mean forecast of 7.8 billion in an LSEG poll of analysts.
“Swedbank once again delivers a strong result, and this time it is further strengthened by both the one-off and timing effects,” CEO Jens Henriksson told reporters.
The one-off effects included revaluations in the insurance business, which saw the other income segment rise by 47% to 1.4 billion.
The rival to Handelsbanken, Nordea and SEB said interest income – which includes revenue from mortgages – fell to 12.2 billion crowns from 12.9 billion.
However, it beat analysts’ mean expectations of 11.8 billion.
Total expenses increased to 6 billion crowns from 5.6 billion from a year earlier, but were down sequentially due to a temporary hiring freeze and cost control.
“We maintained strict cost control and the temporary hiring freeze that we introduced before the summer is having an effect,” Henriksson said.
Loan losses shrank unexpectedly to 271 million from 347 million. Analysts had predicted an increase to 359 million crowns.
(Reporting by Johan Ahlander; Editing by Anna Ringstrom and Janane Venkatramanm)
