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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

SEK 7.50 bln

Q3 Basic EPS

SEK 3.85

Q3 Net Credit Losses

SEK 179 mln

Q3 ROE

13.00%


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%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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