SEB (SEB) Q2 2025 earnings summary

Executive summary

• Solid financial performance in Q2 2025, with broad-based growth in lending, deposits, and asset management net sales, and a strong recovery in Corporate & Investment Banking after a slow April.

• Continued cautious client sentiment due to high macroeconomic and geopolitical uncertainty, including US tariffs and Middle East conflict, despite resilient financial markets.

• Ongoing investment in technology, notably AI, including participation in a consortium to build an NVIDIA supercomputer in Sweden.

• AirPlus turnaround progressing as planned, with right-sizing, market exits, and migration to a new tech platform completed; profitability targeted in 2025 excluding implementation costs.

• Continued quarterly share buyback programme of SEK 2.5bn as part of a SEK 10bn annual authorization.

Financial highlights

• Q2 2025 operating profit was SEK 10,400m, up 4–5% sequentially but down 12% year-over-year; net profit was SEK 8,253m, up 5% sequentially.

• Net interest income declined 1% sequentially and 12% year-over-year, offset by higher loan and deposit volumes.

• Net fee and commission income rose 13% year-over-year and remained stable sequentially, with strong performance in May and June.

• Net financial income declined 10% from Q1, reflecting a more challenging market and lower fixed income contribution.

• Operating expenses declined 3% sequentially but rose 8% year-over-year, partly due to AirPlus integration and higher IT investments.

Outlook and guidance

• FX-adjusted cost target for 2025 set at SEK 32.7–33 billion, with a ±SEK 300 million range, reflecting currency effects.

• Entering a phase of cost consolidation, including a pause on external hiring except for critical roles.

• AirPlus expected to reach profitability (excluding implementation costs) in 2025; all non-core markets exited and IT migration completed.

• Basel IV regulatory changes and IRB model reviews expected to impact capital requirements from late 2025 or early 2026.

• Dividend payout ratio target remains at 50%; share repurchases remain the main form of capital distribution when capital exceeds targets.