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By Johan Ahlander

STOCKHOLM, Jan 29 (Reuters) - Swedish banking group Swedbank SWEDa.ST beat fourth-quarter operating earnings forecasts on Thursday and proposed a higher-than-expected annual dividend after the end of a U.S. money-laundering probe meant it didn't have to hold extra capital.

Sweden's biggest mortgage lender proposed an annual dividend of 29.80 crowns per share, including a special dividend of 9.35 crowns, up from 21.70 crowns per share a year ago and above the 19.63 crowns per share seen by analysts.

In January, the U.S. Department of Justice closed an investigation into alleged money laundering without issuing a fine, sending Swedbank's shares up more than 5% and removing the biggest legal threat it had faced in years.

"We have had great uncertainty and therefore we have held more capital than necessary. Now the uncertainty has decreased and therefore the bank has decided on an extra dividend," CEO Jens Henriksson told reporters.

The DOJ probe was part of Swedbank's legal troubles tied to the massive Baltic money-laundering scandal that first erupted at Danske Bank. Analysts had feared Swedbank might face a hefty U.S. penalty, with Citi estimating a 6 billion Swedish crown ($652 million) fine in 2026.

Swedbank's shares were up 1.4% at 0813 GMT, and have risen almost 10% so far this year.

The bank said in a statement that its operating profit fell to 11.07 billion Swedish crowns in the fourth quarter from 11.89 billion a year ago, but above the mean forecast of 10.26 billion in an LSEG poll of analysts.

Swedish banks have seen their income hit by lower central bank interest rates, but Henriksson said the economy in the bank's home markets - Sweden and the three Baltic states - was developing well.

"The economy is more resilient than expected, despite tariffs and geopolitical uncertainty," he said.

Swedbank, whose rivals include SEB SEBa.ST, Handelsbanken SHBa.ST and Nordea NDAFI.HE, said its interest income, which includes revenue from mortgages, fell to 10.78 billion crowns from 12.27 billion a year ago, just above the 10.67 billion seen by analysts.

SEB and Nordea both reported fourth-quarter earnings below market expectations earlier on Thursday.