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UPDATE 1-SEB Q3 profit narrowly beats forecast
October 25, 2017 / 6:04 AM / a month ago

UPDATE 1-SEB Q3 profit narrowly beats forecast

* SEB Q3 operating profit just above forecast

* Lower volatility impacted commission income

* Said recent Swedish housing market cool-off healthy (Adds details, comment)

STOCKHOLM, Oct 25 (Reuters) - Swedish banking group SEB reported third-quarter operating earnings just above expectations on Wednesday and said the Swedish housing market had shown healthy signs of stabilisation in recent months.

SEB, the Nordic region’s top corporate bank, saw its operating profit in the quarter rise to 5.38 billion Swedish crowns ($654 million), beating a mean forecast for 5.28 billion in a Reuters poll of analysts and compared with 5.23 billion in the year-ago period.

Swedish house prices have levelled out in recent months after decades of high growth, prompting some analysts to warn of a potential crash. One Stockholm luxury-condo developer issued a profit warning earlier this week, citing weaker market conditions.

However, SEB made light of the concerns.

“Over the past months, the Swedish housing market has seen some healthy signs of stabilisation,” SEB said in the report, echoing comments from peer Swedbank, which reported on Tuesday.

Net interest income, which includes revenue from mortgages and loans to companies, rose to 5.08 billion crowns from 4.66 billion a year earlier and higher than a forecast 4.95 billion.

Net commission income fell slightly to 4.03 billion crowns from 4.05 billion a year earlier and lower than a forecast 4.29 billion. SEB said low market volatility, and thus customer activity, had impacted commission income negatively.

$1 = 8.2274 Swedish crowns Reporting by Johan Ahlander; Editing by Niklas Pollard and Biju Dwarakanath

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