Swedish bank SEB Q3 net profit below forecast, pauses share buybacks (updated)

Nordea Bank Abp

Today 05:53

Adds detail and background in text bullets
STOCKHOLM, Oct 22 (Reuters) - Swedish banking group SEB SEBa.ST reported third-quarter net earnings below market expectations on Thursday and said it was pausing share buybacks due to continued loan growth and temporarily higher capital requirements.
SEB's net profit fell to 7.50 billion Swedish crowns ($758.70 million) from a year-ago 7.68 billion, below the 7.91 billion expected by analysts polled by LSEG
"Net financial income was negatively impacted by muted client activity and a challenging market-making environment for the fixed income, foreign exchange and commodities business," acting CEO Jonas Ahlstrom said
Quarterly net interest income totalled 10.88 billion crowns versus 10.54 billion a year ago and a mean forecast of 10.97 billion
SEB said net financial income, which includes trading and is subject to sharper quarterly swings, fell to 1.12 billion crowns from 1.77 billion a year ago
Sweden's financial watchdog said earlier this month that SEB will temporarily be subject to higher capital requirements due to Internal Ratings-Based (IRB) model deficiencies. The new measure increases SEB's core tier one capital requirement by approximately 10 billion crowns
SEB said costs are expected to come in below the 2026 full year cost target by approximately 500-600 million crowns  
     
     
     
($1 = 9.8853 Swedish crowns)

(Reporting by Niklas Pollard, editing by Essi Lehto)
((Niklas.Pollard@thomsonreuters.com;))