SEB (SEB) Q2 2024 earnings summary

Executive summary

• Return on equity reached 17.6% in Q2 2024, with a capital buffer 430 basis points above regulatory requirements and robust asset quality.

• Business momentum improved in Q2, with positive net flows in asset management, increased investment banking activity, and signs of rising credit demand.

• Net profit for Q2 2024 was SEK 9,416m, stable from Q1 and down 4% year-over-year.

• Increased quarterly share buyback to SEK 2.5 billion, with a new program commencing July 2024.

• SEB advanced digitalisation, sustainability offerings, and efficiency improvements as part of its 2030 Strategy.

Financial highlights

• Total operating income for Q2 2024 was SEK 20,312m, down 2% sequentially but up 1% year-over-year.

• Net interest income for Q2 2024 was SEK 11,611m, down 1% sequentially and 2% year-over-year.

• Net fee and commission income grew 6% sequentially and 5-7% year-over-year to SEK 5,936m in Q2 2024, driven by asset management inflows.

• Net financial income was SEK 2,747m in Q2 2024, up 5% year-over-year but down 15% sequentially.

• Operating expenses increased 3% sequentially and 6% year-over-year to SEK 7,383m.

Outlook and guidance

• Imposed levies expected just below SEK 2 billion in H2 2024; 2025 levies should be lower.

• Cost growth to slow in 2025, with 2025 seen as a year of consolidation.

• Net interest income faces pressure from expected rate cuts, but lending and deposit growth provide some support.

• Regulatory changes (Basel IV, IRB model updates) expected to have a largely neutral effect on capital in the medium term.

• Capital target remains a buffer of 100-300 basis points above requirements by end-2024.