SEB (SEB) Q1 2025 earnings summary

Executive summary

• Higher fee and commission income from Corporate & Investment Banking offset lower net interest income in Q1 2025.

• Asset quality remained stable, with a slight increase in reserves and higher credit losses linked to a few large exposures.

• AI initiatives and digitalization advanced, with over 100 use cases in production and new digital services launched.

• Share buyback program maintained at SEK 2.5 billion per quarter, with a new program announced.

• Strong customer satisfaction in fixed income, derivatives, and capital markets.

Financial highlights

• Total operating income was SEK 19.8 billion, largely unchanged from Q4, despite a shorter quarter.

• Net interest income declined 6% sequentially and 11% year-over-year to SEK 10,469m, partly offset by strong Markets NII.

• Net fee and commission income rose 19% year-over-year and 3% sequentially to SEK 6,705m, driven by strong market activity.

• Operating expenses were SEK 8.2 billion, down from Q4 but up year-on-year due to AirPlus consolidation.

• Net expected credit losses were SEK 663 million (9 bps), reflecting higher reserves for a few large exposures.

Outlook and guidance

• Early Q2 shows a 'wait-and-see' market mode amid high volatility and uncertainty, but some increase in activity.

• 2025 cost plan remains at SEK 33bn (+/- SEK 0.3bn), with management monitoring for adjustments.

• Tax rate guidance for forecasting is 21%.

• Imposed levies for 2025 estimated at SEK 3.4 billion, with higher impact in H1.

• Share repurchases will remain the main form of capital distribution when buffers exceed targets.