Sweden's SEB Q3 net profit falls on muted client activity

Overview

• Sweden financial services group's Q3 net profit declined 2% yr/yr to SEK 7.5 bln

• Operating profit for Q3 fell 3% yr/yr, net financial income impacted by muted client activity

• Company expects 2026 full-year costs to be SEK 500-600 mln below target

Outlook

• SEB expects 2026 full-year costs to be SEK 500-600 mln below target

Result Drivers

• CUSTOMER ACTIVITY - SEB said overall customer activity and credit demand remained solid across divisions, per Acting CEO Jonas Ahlström

• NET FINANCIAL INCOME - SEB said net financial income was negatively impacted by muted client activity and a challenging market-making environment

• COST MANAGEMENT - SEB said ongoing cost consolidation is expected to bring 2026 full-year costs SEK 500-600 mln below target

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Skandinaviska Enskilda Banken AB (publ) is SEK235.00, about 8% above its October 21 closing price of SEK217.50

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 21 - Sweden's Handelsbanken Q3 operating profit below consesus estimates

• Oct 21 - Norway's DNB Q3 profit falls 7.9%

• Oct 20 - Synchrony Financial's Q3 net earnings fall 17%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)