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

Skandinaviska Enskilda Banken AB (publ)

Yesterday 05:38

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: ID:nWkrcfwHmx

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.)