Stockholm, Feb 5 (Reuters) - Swedish bank Handelsbanken announced a fourth-quarter net profit that exceeded market expectations, driven by robust interest and financial income. The bank reported a net profit of 6.85 billion crowns ($624 million), a decrease from 7.24 billion a year earlier but surpassing the average forecast of 6.17 billion based on analyst estimates compiled by LSEG.
Handelsbanken disclosed that its costs increased by 5% compared to the previous quarter, reaching 6.36 billion crowns, slightly below the analysts' projection of 6.39 billion. The bank, which faced scrutiny over its costs due to high spending in certain areas such as IT and staffing in the earlier part of the year, managed to reduce costs sequentially in the second and third quarters.
The historic company proposed a dividend of 15.0 crowns per share, up from 13.0 crowns in the previous year, surpassing the analysts' expectation of 13.5 crowns per share.
Handelsbanken, along with its peers, has experienced pressure on interest income due to central bank rate cuts in recent quarters, although the impact has remained relatively moderate. The bank reported a decrease in net interest income to 11.75 billion from 12.22 billion a year ago, but this still exceeded the analysts' forecast of 11.24 billion.
($1 = 10.9741 Swedish crowns)