- SEB’s net interest income for Q3 was SEK11.06 billion, falling short of the estimated SEK11.31 billion.
- Despite this, net income surpassed expectations at SEK9.45 billion against an estimate of SEK8.53 billion.
- Net fee and commission income came in slightly lower than expected at SEK6.03 billion, compared to an estimate of SEK6.13 billion.
- Total operating income exceeded projections, reaching SEK20.91 billion against an estimated SEK19.76 billion.
- Operating profit was higher than expected at SEK11.82 billion, compared to the estimated SEK10.59 billion.
- Operating expenses were close to estimates at SEK7.72 billion, while credit loss provisions were slightly above expectations at SEK393 million.
- Earnings per share were SEK4.57.
- The common equity Tier 1 (CET1) ratio was 19.4%, slightly above the estimate of 19.2%.
- CET1 capital was reported at SEK178.74 billion, marginally higher than the estimated SEK177.01 billion.
- Tier 1 capital stood at SEK197.96 billion, ahead of the forecast SEK192.01 billion.
- Total risk exposure was under the estimate at SEK923.63 billion, compared to SEK933.38 billion expected.
- The gross stage 3 ratio was 0.41%, lower than the estimate of 0.42%.
- SEB reiterates its full-year 2024 cost target, noting the impact of integrating AirPlus will adjust expenses up to SEK31 billion.
- The new fiscal policy in Sweden is shifting to a more active growth approach, as per the 2025 budget proposal.
- SEB’s operating expenses will be affected by the AirPlus acquisition, adding SEK2 billion in costs.
- The company has 7 buy, 11 hold, and 6 sell recommendations.
“`
A look at Skandinaviska Enskilda Banken Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Skandinaviska Enskilda Banken AB (SEB) is a North European financial banking group that has garnered positive Smartkarma Smart Scores in key areas. With strong scores in Dividend, Growth, and Momentum, SEB is poised to deliver value to its investors over the long term. The company’s focus on providing various banking services including savings accounts, investment banking, and insurance products has contributed to its favorable outlook. Although SEB may need to address areas of improvement such as Resilience, its solid performance in critical factors showcases its potential for sustained growth and profitability.
In summary, Skandinaviska Enskilda Banken is a well-established banking group with a broad geographical presence and a diverse range of financial services. The company’s high scores in Dividend, Growth, and Momentum underscore its positive prospects for the future. While there are some areas for enhancement, SEB’s overall outlook remains promising, indicating its ability to continue delivering value to its stakeholders and maintaining a competitive position in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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