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STOCKHOLM, July 18 (Reuters) - Swedish banking group Swedbank on Friday posted a second-quarter net profit that beat forecasts on smaller than expected loan losses and as strong domestic demand boosted business.
Net profit for continuing operations rose 9.7 percent to 4.37 billion Swedish crowns ($639.53 million), beating a mean forecast for 4.04 billion seen in a Reuters poll of analysts.
The Swedish bank said economic activity in Sweden continued to grow during the second quarter.
"In addition to strong domestic demand we saw signs of increased credit demand in the commercial sector for the first time in a while," it said. ($1 = 6.8331 Swedish Crowns) (Reporting by Johan Ahlander)