Skandinaviska Enskilda Banken AB (publ)

Total revenue increased year over year to above SEK 20 billion. Fee and commission income rose 8% year over year to SEK 7.2 billion, a record quarter. Net interest income increased 4% quarter over quarter, or about SEK 450 million, to around SEK 10.7 billion. Total operating expenses were SEK 8 billion, unchanged versus Q2 last year but up 5% sequentially. Net ECL was SEK 345 million, or 5 basis points. Net profit was SEK 8.7 billion, EPS was SEK 4.4, and ROE was 15.7% (17.4% adjusted for the pension surplus). For the full year, SEK 33.3 billion ± SEK 250 million is the updated cost target on FX, and imposed levies are now expected to be SEK 3.5 billion. Management said the capital buffer ended the quarter at 250 basis points, and the sale of the Euroclear stake is expected to add around 15 basis points to CET1, with 10 basis points at closing.

Johan Torgeby said the quarter showed stronger momentum but not full execution across the bank, noting especially better corporate and investment banking performance and an uptick in corporate lending, fees, and customer activity. He pointed to a clear improvement in business pace toward the end of the quarter, with June particularly strong, while retail banking still has room to improve. He also highlighted strategic priorities such as Nordic competitiveness, AI, and growth in Germany and the Baltics.

Christoffer Malmer said revenue was lifted by both NII and fee income, with fees reaching a quarterly high and costs staying disciplined despite some sequential pressure from equity-linked remuneration. He flagged SEK 345 million of ECLs, the EUR 76 million capital gain from the Euroclear sale, and a 15 bp CET1 impact from that disposal. He also said the quarter-end CET1 buffer was 250 bps, the full-year cost target was revised to SEK 33.3 billion ± SEK 250 million due to FX, and the bank is tracking below that target so far this year. He reiterated that the ROE target remains unchanged at 15% and that the payout ratio target is 50%.

Analysts pressed management on whether SEB is now close to delivering “on all cylinders,” the sustainability of the strong fee quarter, and the outlook for corporate lending, mortgage growth, and AI economics. Torgeby said there is more upside in loan fees, retail banking remains weaker, and the fee strength was largely a rebound/seasonal quarter that should be judged more clearly by Q4. On AI, Malmer said the bank sees efficiency potential, but revenue benefits are slower to emerge and the main use cases are customer service, mortgage credit processing, financial crime prevention, and software development. Management also said the Swiss-style/Swedish model approvals are still under review, there is no new update on Cum-Cum/Cum-Ex matters, and any Swedish bank tax changes remain a political risk rather than a base case.