In This Article:
-
Operating Income: 61.9 billion SEK for the first nine months of 2024, a 3% increase on an underlying basis.
-
Operating Expenses: 22.3 billion SEK, up 6% on an underlying basis.
-
Operating Profit: 11.8 billion SEK for Q3 2024, a 7% decline compared to the same period last year.
-
Net Interest Income: 11.1 billion SEK for Q3 2024, a 4% sequential decline excluding Air Plus impact.
-
Fees and Commissions: Sequential decline of 4% excluding Air Plus impact.
-
Net Financial Income: Significant increase compared to both the same quarter last year and the second quarter.
-
Expected Credit Losses: 393 million SEK for Q3 2024, reflecting specific provisions and portfolio overlay reversals.
-
Return on Equity: 17% for Q3 2024.
-
Common Equity Tier 1 Ratio: Increased from 19% in Q2 to 19.4% in Q3 2024.
-
Cost Target: Updated to 31 billion SEK for 2024, including Air Plus consolidation and transaction-related costs.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Skandinaviska Enskilda Banken AB (SVKEF) has successfully integrated the acquisition of Germany's Air Plus, enhancing its corporate credit card business.
-
The bank continues its share buyback program, committing to a capital target of 300 basis points or below as a capital buffer by year-end 2024.
-
The establishment of a Chief Operating Officer function aims to improve decision-making speed and clarity in a complex banking environment.
-
Skandinaviska Enskilda Banken AB (SVKEF) maintains a strong position in the Nordic market, holding the number one spot in FX, Nordic equities, and asset management.
-
The bank's operating income has grown by 3% year-to-date, reaching 61.9 billion for the first nine months of 2024.
Negative Points
-
Net interest income has declined by 4% sequentially, excluding the impact of Air Plus, due to changes in deposit mix and market conditions.
-
The bank has underperformed relative to larger peers in Sweden in terms of public perception, as indicated by the Swedish Quality Index.
-
Operating expenses have increased by 6% on an underlying basis, partly due to the integration of Air Plus.
-
Expected credit losses have risen to 393 million in the quarter, reflecting specific provisions on a small number of exposures.
-
The bank's return on equity has decreased to 17%, with an operating profit decline of 7% compared to the same period last year.
Q & A Highlights
Q: What is Skandinaviska Enskilda Banken AB's (SEB) strategic focus in asset management and wealth, and why is the bank not participating in ongoing consolidation in Sweden? A: Johan Torgeby, CEO, explained that asset management and wealth are key strategic focuses due to their attractive growth characteristics. SEB is not participating in large consolidation plays because such moves are rare and transformational. The bank is closely monitoring developments and is involved in smaller, strategic initiatives to enhance its offerings organically.