Swedish lender Skandinaviska Enskilda Banken (SEB) (ST:SEBa) posted higher earnings for the April-June quarter, citing healthy client activity, stronger corporate lending and record fee income as primary contributors to the quarterly improvement. The bank also unveiled a fresh quarterly share buyback programme following the completion of its previous repurchase effort.
Quarterly results in brief
SEB reported operating profit of 10.77 billion Swedish crowns in the second quarter, a 4% increase compared with the same period a year earlier. Net profit rose 5% year-on-year to 8.66 billion crowns.
Total operating income climbed 3% to 20.06 billion crowns. That growth was led by a record 7.19 billion crowns in net fee and commission income, together with higher net financial income.
Net interest income increased by 1% versus the prior year to 10.69 billion crowns. The bank attributed the rise to larger lending volumes and policy rates that were stable to higher, although it noted ongoing pressure on mortgage margins in Sweden.
Balance sheet and asset trends
Customer lending rose 4% from the previous quarter to 2.41 trillion crowns, with stronger demand coming from large corporate clients. Deposits grew to 2.03 trillion crowns.
Assets under management reached a new high of 3.07 trillion crowns, supported by favourable market conditions and net inflows of 11 billion crowns during the quarter.
Credit quality and costs
Credit quality held up, with net expected credit losses falling to 345 million crowns from 546 million crowns in the preceding quarter.
SEB kept its 2026 cost target unchanged at about 33.3 billion crowns, plus or minus 250 million crowns when adjusted for current exchange rates. The bank said it will continue to invest in technology and artificial intelligence while pursuing that target.
Capital returns
The board authorised a new quarterly share buyback programme worth 1.25 billion crowns after completing the prior repurchase programme.
Sections impacted
- Banking and financial services: earnings, lending volumes, mortgage margins and fee-based revenue.
- Wealth management: record AUM driven by market conditions and net inflows.
- Corporate banking: increased lending to large corporate clients.