Swedish bank Handelsbanken reported its second-quarter profit well below forecasts; after a downturn in capital markets triggered a loss on hedging instruments. Operating earnings at the 150-year-old rival to Swedbank fell to 5.25 billion Swedish crowns ($496.80 million); from 5.67 billion crowns a year ago. The mean forecast in the Refinitiv poll of analysts had been for a profit of 6 billion crowns.
The unusually severe downturn in the capital markets over a short period has led to a negative market valuation impact on our hedging instruments;” Chief Executive Officer Carina Akerstrom said in the report.
But the effect would be reversed over time and lacked importance for performing the bank, she added.
Handelsbanken made a loss on financial transaction; which includes hedging instruments, of 147 million Swedish crowns, versus a profit of 429 million crowns a year ago.
Net interest income, which includes income from mortgages, came in at 8.39 billion crowns; higher than 7.57 billion crowns posted a year ago and 8.03 billion crowns. Net commission income fell to 2.74 billion crowns from 2.77 billion a year ago and 2.86 billion in the poll.
-Reuters.