STOCKHOLM, April 26 (Reuters) – Swedish financial institution SEB (SEBa.ST) reported first-quarter working revenue above market expectations on Wednesday as larger rates of interest boosted revenue from loans.
SEB, Sweden’s prime company financial institution, stated working revenue was 11.62 billion Swedish crowns ($1.13 billion) versus a year-ago 7.86 billion, simply beating a imply forecast of 9.49 billion, in line with estimates offered by the corporate.
Hovering inflation over the previous yr has seen central banks crank up key charges radically, boosting curiosity revenue for Swedish banks, whereas unstable markets have elevated demand for danger administration providers.
SEB stated the quarter had been marked by renewed volatility because the failure of U.S. banks and excessive inflation had rattled markets.
“Our massive company prospects remained cautious, mirrored in steady lending and elevated deposit volumes whereas the demand for danger administration providers remained excessive,” CEO Johan Torgeby stated within the report.
The financial institution stated its internet curiosity revenue, which incorporates revenues from mortgages, rose 60% to 11.30 billion from a year-ago 7.06 billion, above the ten.18 billion anticipated by analysts.
Curiosity revenue benefited from larger charges because the central financial institution has raised the benchmark fee to three% from zero simply over a yr in the past, with one other hike projected in a while Wednesday.
Fee revenue fell to five.17 billion crowns from a year-ago 5.40 billion, beneath the imply forecast 5.26 billion.
Falling actual property costs, above all in Sweden, might spur larger mortgage losses forward. Nonetheless, SEB stated its internet credit score losses fell to 272 million the quarter from 535 million a yr in the past, beneath the 686 million seen by analysts.
Reporting by Johan Ahlander, enhancing by Terje Solsvik
Our Requirements: The Thomson Reuters Belief Ideas.
