SEB (SEB) Q4 2024 earnings summary

Executive summary

• Increased customer activity in corporate investment banking and the Baltics supported results, with costs and capital in line with full-year targets.

• Full-year return on equity reached 16.2%, exceeding the 15% long-term target, but Q4 return on equity fell to 13.2% due to lower interest rates and AirPlus integration costs.

• The board proposed an ordinary dividend of SEK 8.50 per share, a special dividend of SEK 3 per share, and a SEK 10 billion share buyback for 2025.

• S&P revised SEB's credit rating outlook to positive, citing robust and predictable profitability.

• SEB maintained top customer satisfaction in Nordic corporate banking and improved its ranking in domestic equity services.

Financial highlights

• Full-year 2024 operating income rose to SEK 81.9 billion, with operating expenses at SEK 30.9 billion, just below the SEK 31 billion target.

• Net profit for 2024 was SEK 35,865m, down 6% year-over-year; Q4 net profit was SEK 7,493m, down 21% sequentially.

• Net interest income for 2024 decreased 5% year-over-year to SEK 45,251m; net fee and commission income rose 11% to SEK 24,103m.

• Operating expenses increased 13% year-over-year to SEK 30,949m, mainly due to AirPlus-related costs.

• Asset quality remained strong, with net expected credit losses at three basis points.

Outlook and guidance

• 2025 cost target set at SEK 33 billion, reflecting AirPlus consolidation, inflation, and efficiency gains.

• AirPlus integration charges of SEK 700 million expected in both 2024 and 2025, with break-even EPS (excluding implementation charges) targeted for 2025.

• SEB aims for a sustainable return on equity of 15% and intends to move to semi-annual dividends from 2026.

• Dividend payout ratio target of ~50% of EPS; share repurchases prioritized when capital buffer exceeds 100–300bps above requirements.

• Strategic priorities for 2025–2027 include business growth in wealth and asset management, corporate growth, and technology modernization.