STOCKHOLM, July 17 (Reuters) - Sweden's Handelsbanken posted on Wednesday a second-quarter operating profit that beat expectations as core income topped forecasts and on smaller-than-expected loan losses.
Operating profits in the quarter reached 4.72 billion Swedish crowns ($714 million), topping a mean forecast for 4.45 billion seen in a Reuters poll of analysts and compared with 4.41 billion in the year-earlier period.
The bank, one of Europe's strongest lenders, said a decision by Sweden's financial regulator to introduce a mortgage risk weight floor of 15 percent would entail a capital requirement of approximately 7 billion crowns in Pillar 2.
Its core tier one capital ratio stood at 17.8 percent according to Basel 3. ($1 = 6.5815 Swedish crowns) (Reporting by Mia Shanley)