STOCKS NEWS EUROPE-Swedbank seen up 3-4 pct on strong Q3

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Shares in Swedbank (Other OTC: SWDBF - news) are expected to rise 3 to 4 percent after Sweden's second largest bank by value reports operating profit ahead of expectations, boosted by stronger than expected income from lending, traders say.

"In all areas I think the result was very strong so I believe there should be a positive reaction this morning," says Kimmo Rama, analyst at Evli Bank.

"Net interest income, especially, was very strong and ahead expectations, driven by good market share, volumes and margin improvements."

A recovery of money put aside to cover bad loans and good cost control also help the positive tone of the results, Rama says.

Operating profit for the third quarter was up 6 percent year-on-year to 5.2 billion Swedish crowns ($812.23 million, above a mean forecast for 4.9 billion seen in a Reuters poll of analysts.

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