STOCKHOLM (Reuters) – Quarterly earnings at Handelsbanken (SHBa.ST) and SEB (SEBa.ST) fell lower than anticipated because the Swedish banks coped with the financial hit from the COVID-19 pandemic, though SEB noticed a spike in provisions for unhealthy loans. FILE PHOTO: A department of Handelsbanken is seen in Wilmslow, Britain January 12, 2015. REUTERS/Phil Noble/File PhotoNordic banks are the primary in Europe to report second quarter earnings and to this point have defied gloomy predictions, with Norway’s DNB additionally topping forecasts. “The bank’s credit quality remains good,” Handelsbanken stated on Wednesday, including loan losses within the quarter have been the bottom in years. “Household lending, household deposits and corporate deposits continued to exhibit stable growth.” Its second-quarter web revenue fell to three.96 billion crowns ($436 million) from 4.22 billion a 12 months earlier, beating analysts’ imply forecast of three.34 billion. SEB’s web revenue additionally fell lower than anticipated, as revenue from its buying and selling arm offset credit score loss provisions and a positive for insufficient cash laundering controls. Web revenue at SEB, Sweden’s high company bank, fell to three.5 billion crowns from 4.9 billion a 12 months earlier, however beat analysts’ imply forecast of three.2 billion. SEB stated it might not attraction in opposition to a 1 billion crown positive from Sweden’s monetary regulator for failures in anti-money laundering controls within the Baltics, although it added it didn’t agree with components of the watchdog’s choice. Its curiosity revenue, which incorporates revenue from mortgages, elevated 6% to six.05 billion crowns. CREDIT AND THE CORONAVIRUS Analysts are usually anticipating banks to see a bounce in unhealthy loans because the pandemic plunges economies into recession. loan losses for Handelsbanken have been 97 million crowns, higher than 435 million a 12 months earlier and far decrease than the 1.02 billion loss projected by analysts. SEB, nonetheless, noticed loan losses surge to 2.7 billion crowns from 386 million a 12 months in the past, worse than analysts’ imply forecast of 1.7 billion. CEO Johan Torgeby stated SEB was sticking with its forecast for credit score losses of 6 billion crowns this 12 months, practically triple the extent for 2019. Kepler Cheuvreux analyst Robin Rane stated he didn’t anticipate traders to purchase into SEB as its efficiency was pushed by its buying and selling arm, “which was a given due strong market conditions”. Rane added that though Handelsbanken’s low credit score losses stood out, efficiency in different components of the core enterprise was comparatively weak. Handelsbanken’s web curiosity revenue, which incorporates revenue from mortgages, fell 5% to 7.6 billion crowns, lacking analysts’ forecast of 8.2 billion. At 0720 GMT, Handelsbanken shares have been down 1.1% and SEB’s down 2.6%. ($1 = 9.0840 Swedish crowns) Reporting by Colm Fulton; modifying by Anna Ringstrom and Mark PotterOur Requirements:The Thomson Reuters Belief Rules.