Swedbank reports solid third-quarter profit, brushes off housing slump worries

Swedbank beat third-quarter operating profit expectations on Tuesday as well as brushed off concerns that will the Swedish housing market could be set for a significant correction.

Operating profit rose to 6.19 billion Swedish crowns ($755 million), helped by higher lending volumes within the bank’s home markets.

that will topped a mean forecast of 5.87 billion in a Reuters poll of analysts as well as its 6.03 billion crowns profit a year earlier.

Sweden’s housing market has stumbled in recent months. Late on Monday, a Stockholm-based developer of luxury condos issued a profit warning as well as some analysts are worried the economy, as well as banks, could suffer.

Swedbank acknowledged the housing market had continued to cool off during the third quarter nevertheless said This kind of was a welcome development.

“The slowdown we see right now I think is actually healthy, nevertheless at the same time This kind of does not solve the problems we have. There are far too few homes available for people with regular income,” Swedbank CEO Birgitte Bonnesen told a conference call with reporters.

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