Swedish bank SEB Q4 net profit misses forecast (updated)
29/01/2026 05:31
Adds CEO comment in paragraphs 3-4, background in paragraphs 8-9, detail in paragraphs 10-12 SEB Q4 net profit 7.31 bln SEK vs forecast 7.70 bln Interest income below forecast Proposes higher-than-expected total dividend payout CEO says muted lending growth could turn in 2026 By Niklas Pollard STOCKHOLM, Jan 29 (Reuters) - Swedish banking group SEB SEBa.ST reported fourth-quarter net profits below market expectations on Thursday, dented by softer interest income and goodwill writedowns, but proposed a bigger-than-expected shareholder payout for last year. The bank said in a statement net profit fell to 7.31 billion Swedish crowns ($831 million) from 7.49 billion a year ago to come in short of a mean forecast 7.70 billion seen in a poll of analysts' estimates collected by LSEG. A full impairment of goodwill for SEB Card Norway of 416 million crowns weighed on earnings in the quarter. "We reported a stable fourth quarter characterised by increasing customer activity, strong financial markets, and lower interest rates," SEB CEO Johan Torgeby said in a statement. "In our other home markets, lending growth remained muted. With the improving economic outlook, this is a trend that could turn in 2026." SEB, part of the business sphere centred on Sweden's Wallenberg family, proposed an ordinary shareholder payout of 8.50 crowns per share, in line with last year, as well as an extra dividend of 2.50 crowns per share. Analysts saw the dividend totalling 8.94 crowns, according to LSEG estimates. In the previous year, SEB also paid an additional 3.00 crowns per share in an extraordinary dividend. SEB is the first of Sweden's major banks to publish fourth-quarter results with Swedbank SWEDa.ST due to report later on Thursday. A budding economic recovery in its home market, accelerated by sizeable fiscal stimulus in a Swedish election year, is expected to support commission income and underpin demand for credit and financial services in the year ahead. Even so, uncertainties stemming from U.S. President Donald Trump's policies in areas such trade and foreign policy linger for companies, markets and households, while recent central bank rate cuts continue to put a damper on interest income. SEB, which relies more on corporate clients compared to some rivals, said interest income, which includes mortgage revenues, dipped to 10.07 billion crowns from a year-ago 11.11 billion, lagging the 10.12 billion seen by analysts. The bank said commission income rose to 6.81 billion crowns versus a year-ago 6.51 billion and a mean forecast 6.77 billion, while net financial income, which includes trading and is prone to greater swings, fell to 1.99 billion crowns from 2.06 billion a year ago. ($1 = 8.7933 Swedish crowns) (Reporting by Niklas Pollard, editing by Essi Lehto) ((Niklas.Pollard@thomsonreuters.com;))