Swedish banking group SEB posted a better-than-expected first-quarter operating profit on July 13 due to lower loan losses and it remained confident that asset quality in the hard-hit Baltics will function exceptionally well.
Swedish bank SEB (SEBa.ST) stated on Thursday that its Q2 net profit beat analyst expectations, as higher interest rates and increased demand from the corporate clients offset negative impact from some lackluster stock markets.
Net profit dropped to 5.84 billion Swedish crowns ($551 million) from 12 months ago when it recorded 6.57 billion, but beat mean projection of 5.51 billion crowns in a poll of analysts on SEB’s website.Buy Crypto Now
Notably, Sweden’s central bank hiked interest rates by 0.5% in June to stave off rampant inflation. Chief Executive Officer Johan Torgeby said in the report:
“We saw a positive contribution from higher interest rates and currency effects, increased demand from corporate customers for credit and risk management, and resumed travelling and consumption.”
Net interest income that includes income from mortgages, rose to 7.74 billion crowns, up from 6.47 billion crowns a year ago and 7.18 billion crowns in the consensus estimates.
($1 = 10.5908 Swedish crowns)