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UPDATE 1-Handelsbanken Q2 operating profit beats forecast

Published 07/21/2009, 02:04 AM
Updated 07/21/2009, 02:08 AM
SWEDa
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SEBF
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* Q2 op profit 3.45 bln crowns, above consensus forecast

* Loan losses lower than expected at 939 million crowns

(Adds background, details)

STOCKHOLM, July 21 (Reuters) - Sweden's Handelsbanken unexpectedly posted a small year-on-year rise in second-quarter operating profit on Tuesday as income beat analysts' forecasts and loan losses were lower than expected.

Operating profit was 3.45 billion Swedish crowns ($443 million) against a year-earlier 3.43 billion and a forecast for 2.92 billion in a Reuters poll of 17 analysts.

Handelsbanken said its liquidity situation had strengthened further and it would be able to free up liquid funds of more than 450 billion crowns, equivalent to about a third of the bank's loans to the public.

Nordic banks have been hit hard by the financial crisis, though Handelsbanken has steered clear of the economic fallout in the Baltic region which has affected rivals SEB and Swedbank .

Both SEB and Swedbank have reported sharply weaker-than-expected second-quarter results in the past week as they took provisions against loans in the Baltic.

Handelsbanken's loan losses rose to 939 million crowns from 571 million a year ago, landing below a forecast for 1.61 billion.

Handelsbanken's net interest income rose to a higher-than-expected 5.64 billion Swedish crowns, a 25-percent year-on-year gain. Net commission income was 1.86 billion crowns, above an average forecast of 1.69 billion in a Reuters poll. (Editing by Will Waterman)

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