Swedbank says no provision for secured Lehman loan

STOCKHOLM, (Reuters) - Sweden's Swedbank (SWEDa.ST) said on Tuesday it would not make a provision related to a $1.35 billion exposure to Lehman Brothers LEH.N, the U.S. bank that has sought bankruptcy protection.

Swedbank said it had made an on-site investigation, looking at documents related to the deal and of properties in the United States backing the loan. The investigation confirmed the underlying mortgage loans were performing well and that the collateral was of good quality. "There will be no provisioning made," Swedbank said in a statement.

Swedbank said the Lehman subsidiary that was its counterparty in the deal had filed for bankruptcy protection in the last few days. It said this did not change its views.