STOCKHOLM, April 28 Reuters Swedish bank SEB reported a betterthanexpected net profit for the first quarter on Wednesday after it slashed provisions for bad debts amid an improving economic outlook and tapped into a boom in trading on markets.
Over the last year Swedens banks, some of the best capitalised in the world, have defied expectations of rising loan losses as the spread of COVID19 shut businesses and reduced employment around the world.
The overall concern observed last year in the global economy has been replaced by an increased optimism, CEO Johan Torgeby said in the report.
Net profit at Swedens top corporate bank rose to 6.02 billion Swedish crowns 717.6 millionfrom a yearago 2.36 billion, beating a mean forecast of 4.87 billion in a Refinitiv poll of analysts.
Loan loss provisions, a figure closely watched in the wake of the economic slump due to the pandemic, were 156 million crowns compared to a yearago 1.5 billion, much better than the 803 million seen by analysts.
Fee and commission income at Swedens top corporate bank rose slightly to 4.78 billion crowns from 4.62 billion a year ago, as increased assets under management offset the sluggish effect the pandemic had on payments.
Interest income, which includes income from mortgages, increased to 6.4 billion crowns from 6.20 billion a year ago, amid strong demand for mortgages in Sweden.
The bank said it increased its digital offering in the quarter, with customers able to apply for household…