SEB Q2 Profit Rises 4% on Record Fee Income, Bank Announces New Buyback

Swedish banking group Skandinaviska Enskilda Banken (SEB) reported a 4% year-over-year increase in second-quarter operating profit, citing record fee income and robust corporate client activity. The bank also announced a new share buyback program valued at 1.25 billion Swedish crowns.

Performance Highlights

SEB's operating profit for the April-to-June period rose to 10.77 billion Swedish crowns ($1.12 billion), according to its latest earnings report. The result was supported by a 3% increase in total operating income to 20.06 billion crowns.

Key figures from the second quarter include:

• Net Profit: 8.66 billion crowns, an increase of 5% from the prior year.
• Net Fee and Commission Income: A record 7.19 billion crowns.
• Net Interest Income: 10.69 billion crowns, up 1% year-over-year.
• Assets Under Management: A record 3.07 trillion crowns, following net inflows of 11 billion crowns.

Business Drivers and Balance Sheet

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The earnings growth was primarily fueled by strong performance in fee-generating businesses, suggesting heightened client activity in investment banking and wealth management. The modest 1% rise in net interest income reflected a mixed environment; while higher lending volumes and stable policy rates provided support, the bank noted continued pressure on mortgage margins in its home market of Sweden.

Customer lending expanded by 4% from the previous quarter to 2.41 trillion crowns, led by stronger demand from large corporate clients. The bank's credit quality remained resilient, with net expected credit losses falling to 345 million crowns from 546 million crowns in the first quarter.

Outlook and Capital Returns

SEB's board approved a new quarterly share buyback program of 1.25 billion crowns, signaling confidence in its financial position after completing its previous repurchase plan.

The bank reaffirmed its 2026 cost target of approximately 33.3 billion crowns, adjusted for exchange rates. It also stated its intention to continue making investments in technology and artificial intelligence to support future operations.