SEB (SEB) Pre-Close Call summary

Executive summary

• The call covered macroeconomic trends, P&L lines, risk exposure, capital, and provided reminders of previous guidance, with no new updates on the current quarter.

• Q3 is affected by seasonality due to summer months, with lower activity in July and a catch-up effect after a slow April.

• No one-off items are expected in Q3, and imposed levies are projected to remain at similar levels in 2026 as in 2025.

Trading performance and revenue trends

• Lower average 3-month Stibor and Euribor rates in Q3 compared to Q2, with lending and deposit rates adjusted accordingly.

• Loan growth remains healthy, especially in retail mortgages, despite stiff competition.

• Net fee and commission income is slightly positively impacted by higher average asset values, but summer seasonality typically reduces activity.

• Net financial income guidance remains the 16-quarter average of SEK 2.5 billion per quarter.

Profitability and margins

• Net interest income (NII) in Q2 was affected by FX losses (~SEK 600 million) offset by positive day effects; Q3 has one extra day, adding ~SEK 100 million.

• Business and retail banking saw a SEK 200 million NII decline in Q2 due to lower deposit margins; mortgage margin pressure persists but shows some stability.

• Baltic division NII also declined by SEK 200 million in Q2, offset by higher loan and deposit volumes.

• Total expenses target for 2025 is at or below SEK 33 billion, with FX-adjusted Q2 expenses at SEK 32.7 billion.

• Share price increases slightly raise costs for long-term incentive programs, but the impact is minor relative to total expenses.