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SEB reports Q3 net profit surge, launches new share buyback program

EditorPollock Mondal
Published 2023/10/25, 09:02
© Reuters.

Swedish financial group SEB has reported a notable third-quarter net profit of SEK10.58 billion ($951.1 million), surpassing the projected SEK8.82 billion. The bank's CEO, Johan Torgeby, cited a 37% increase in net interest income to SEK12.25 billion as a significant contributing factor to this growth. This surge was primarily fueled by rising interest rates, although their influence on net interest income is reportedly diminishing.

In related news, Swedish household mortgage margins have stabilized, albeit at historical lows, due to these escalating rates. Despite the challenging environment, SEB has maintained strong financial health as evidenced by its common equity Tier 1 ratio, a key measure of financial strength. The ratio rose from 18.1% to 18.9%.

Looking into the future, SEB has set its cost projection for 2023 between SEK26.5 billion and SEK27 billion, influenced by forex rates from 2022.

In an effort to return capital to shareholders, SEB announced the launch of a new share buyback program valued at SEK1.25 billion, following the completion of a similar program of the same value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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