STOCKHOLM, (Reuters) – The third quarter of the Swedish bank Swedbank’s fourth quarter was better than expected due to record income from commissions and continued strong mortgage growth.

The Nordic countries have seen a sharp rebound this year, with Sweden returning to pre-pandemic levels. This has stoked consumer spending and increased demand for financial services. It also helped lift shares of the regional banking stock.

Soaring energy prices, component shortages and the recovery also contributed to the rekindling of long-stalled inflation. This could shift the environment towards zero interest rates for customers and banks.

The oldest bank in Sweden announced that its quarterly net profit increased to 5.50 Billion Swedish Crowns (or $639.91 million), from 5.26 Billion crowns one year ago. This beat analysts’ estimates of 5.10Billion crowns, according to a Refinitiv survey. [L8N2RF167]

According to Jens Henriksson, Chief Executive of Swedbank, the quarter was marked by a return to normal. We see strong recovery in Sweden, as well.”

Swedbank reported that commission income increased to 3.80 Billion Crowns from 3.25 Billion crowns one year ago, while interest income (which includes income from mortgages) dropped to 6.59 Billion crowns from 6.71Billion crowns one year prior.

Swedbank was largely unaffected by COVID-19, and it reported that in October, it intended to pay 7.30 Swedish Crowns per share dividend for 2019 and 2020. [L8N2QX114]

($1 = 8.5949 Swedish Crowns