By Adria Calatayud

Swedbank shares rose after the bank reported results for the third quarter that exceeded analysts' expectations both at the top and bottom lines.

Shares in the Swedish lender traded 5.9% higher in early European trading at 220.10 Swedish kronor, taking the year-to-date gain to 8.2%.

Swedbank reported a net profit of 9.38 billion kronor ($889.3 million) for the third quarter compared with 9.125 billion kronor in the same period last year.

Total income rose to 19.15 billion kronor from 18.47 billion kronor, benefiting from higher net commission income. Net interest income--the difference between what banks earn and pay on interest rates--declined to 12.23 billion kronor from 12.90 billion.

Analysts had forecast a net profit of 7.80 billion kronor, net interest income of 11.79 billion kronor and total income of 17.46 billion, according to consensus estimates compiled by the bank.

Higher-than-expected net interest income was the biggest positive surprise in the results, but fees and costs also came in better than anticipated, Jefferies analysts Alexander Demetriou and Joseph Dickerson said in a note to clients.

Swedbank said it expects second-half costs to be similar to those of the first half excluding currency movements. A hiring freeze and cost controls helped the bank lower costs in the third quarter compared with the second, it said.

Analysts at JPMorgan said Swedbank's cost guidance, together with the better-than-expected earnings, could trigger increases to consensus expectations.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

October 23, 2024 04:26 ET (08:26 GMT)

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