Swedish bank SEB (SEBa.ST) reported a better-than-expected net profit for the first quarter on Wednesday, boosted by higher interest and commission income.
Net profit at Sweden’s top corporate bank rose to 6.40 billion Swedish crowns ($652 million) from a year-ago 6.02 billion crowns, beating by a wide margin a mean forecast of 4.93 billion crowns in a Refinitiv poll of analysts.
SEB said Russia’s invasion of Ukraine had worsened the macroeconomic outlook, but noted that robust public finances in the Nordic and Baltic countries would help soften the blow.
“This indicates that capacity remains to support households and corporates in Sweden if required,” SEB said.
Fee and commission income at Sweden’s top corporate bank rose 13% to 5.40 billion crowns from 4.78 billion crowns a year ago, as increased assets under management offset the sluggish pandemic-induced effect on payments.
Interest income, which includes income from mortgages, increased by 5% to 7.06 billion crowns from 6.30 billion a year ago, amid strong demand for mortgages in Sweden.
($1 = 9.8095 Swedish crowns)
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Reporting by Johan Ahlander; Editing by Niklas Pollard and Sherry Jacob-Phillips