Seb reports lower profit on weak trading, pauses buybacks

Skandinaviska Enskilda Banken AB reported third-quarter net profit of SEK 7,498 million, missing analyst expectations by 5%. The Swedish bank’s return on equity stood at 13.0% for the quarter.

The bank’s pre-provision profit reached SEK 10,448 million, falling 7% short of consensus estimates. The shortfall came from lower revenues in trading and other income categories.

Net interest income came in 1% below expectations but grew 2% from the previous quarter. The increase came from higher volumes and interest rates. Corporate lending volumes rose 6% year-over-year on a currency-adjusted basis, while deposits declined from the prior quarter.

Commission and fee income met expectations, rising 7% year-over-year. Net securities commissions increased 13% annually, while net advisory fees remained stable.

Trading results fell below forecasts due to lower client-related income and difficult market conditions for market-making in fixed income, currencies and commodities. The bank also recorded negative valuation effects in its Treasury liquidity portfolio.

Operating expenses came in 1% better than expected, up 3% year-over-year. The bank updated its 2026 cost target to SEK 33.4 billion and now expects to finish SEK 500-600 million below that target.

Loan impairments stood at 2 basis points, below the 4 basis point consensus estimate. New provisions were partially offset by reversals and a minor release of portfolio model overlays to SEK 0.8 billion. Gross Stage 3 exposures remained unchanged at SEK 12.5 billion.

The bank’s Common Equity Tier 1 ratio was 17.1%, providing a 250 basis point buffer above requirements.

SEB will pause share buybacks following a regulatory decision that increases capital requirements starting December 31, 2026. The bank plans to submit new internal ratings-based model applications in the third quarter of 2027.