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Investing.com -- Skandinaviska Enskilda Banken AB (STO:SEBA) on Thursday reported third-quarter net profit of SEK 7,677 million, falling 3% below consensus estimates of SEK 7,917 million, with return on equity at 14%.
The Swedish bank’s pre-provision profit came in at SEK 10,744 million, 4% below expectations, primarily due to weaker revenue that was partially offset by lower costs.
While net interest income exceeded forecasts by 2% and grew 1% quarter-over-quarter, commission and fee income missed expectations by 3%, despite rising 4% year-over-year.
Trading income declined significantly, with net financial income dropping 23% from the previous quarter due to lower market volatility and seasonally reduced activity in the Corporate & Investment Banking division.
Operating expenses came in 2% better than anticipated, driven by lower staff and other costs. SEB has adjusted its 2025 cost target to SEK 32.6 billion (plus or minus SEK 0.3 billion), slightly down from the previous SEK 32.7 billion due to foreign exchange changes.
Loan impairments were lower than expected at 3 basis points, compared to consensus estimates of 54 basis points. The bank increased its portfolio model overlays to SEK 1.5 billion from SEK 1.4 billion in the second quarter.
SEB reported a Common Equity Tier 1 (CET1) ratio of 18.2%, creating a buffer of 360 basis points, in line with the bank’s target range of 100-300 basis points.
During the quarter, SEB began phasing in the transitory increase in risk-weighted assets related to Baltic models, which reduced CET1 by 18 basis points. The pro-forma capital buffer stands at 290 basis points.
The bank announced a new share buyback program of SEK 2.5 billion, set to begin on Friday and run until January 27, 2026.
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