Stock Markets July 15, 2026 01:26 AM

SEB posts stronger Q2 results on fee income, lending growth and new buyback plan

Operating profit and net income rise as fee revenue hits a record and client activity supports lending and AUM growth

By Jordan Park
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Skandinaviska Enskilda Banken reported higher second-quarter profits driven by robust client activity, record net fee and commission income and increased lending volumes. The board approved a new quarterly share repurchase programme after completing the prior buyback, while the bank maintained its 2026 cost target and continued investments in technology and artificial intelligence.

SEB posts stronger Q2 results on fee income, lending growth and new buyback plan
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Key Points

  • Operating profit rose 4% year-on-year to 10.77 billion crowns; net profit increased 5% to 8.66 billion crowns.
  • Total operating income climbed 3% to 20.06 billion crowns, led by record net fee and commission income of 7.19 billion crowns.
  • Customer lending and assets under management grew, with lending at 2.41 trillion crowns and AUM at a record 3.07 trillion crowns after net inflows of 11 billion crowns.

Swedish lender Skandinaviska Enskilda Banken (SEB) (ST:SEBa) posted higher earnings for the April-June quarter, citing healthy client activity, stronger corporate lending and record fee income as primary contributors to the quarterly improvement. The bank also unveiled a fresh quarterly share buyback programme following the completion of its previous repurchase effort.

Quarterly results in brief

SEB reported operating profit of 10.77 billion Swedish crowns in the second quarter, a 4% increase compared with the same period a year earlier. Net profit rose 5% year-on-year to 8.66 billion crowns.

Total operating income climbed 3% to 20.06 billion crowns. That growth was led by a record 7.19 billion crowns in net fee and commission income, together with higher net financial income.

Net interest income increased by 1% versus the prior year to 10.69 billion crowns. The bank attributed the rise to larger lending volumes and policy rates that were stable to higher, although it noted ongoing pressure on mortgage margins in Sweden.

Balance sheet and asset trends

Customer lending rose 4% from the previous quarter to 2.41 trillion crowns, with stronger demand coming from large corporate clients. Deposits grew to 2.03 trillion crowns.

Assets under management reached a new high of 3.07 trillion crowns, supported by favourable market conditions and net inflows of 11 billion crowns during the quarter.

Credit quality and costs

Credit quality held up, with net expected credit losses falling to 345 million crowns from 546 million crowns in the preceding quarter.

SEB kept its 2026 cost target unchanged at about 33.3 billion crowns, plus or minus 250 million crowns when adjusted for current exchange rates. The bank said it will continue to invest in technology and artificial intelligence while pursuing that target.

Capital returns

The board authorised a new quarterly share buyback programme worth 1.25 billion crowns after completing the prior repurchase programme.


Sections impacted

  • Banking and financial services: earnings, lending volumes, mortgage margins and fee-based revenue.
  • Wealth management: record AUM driven by market conditions and net inflows.
  • Corporate banking: increased lending to large corporate clients.

Risks

  • Pressure on Swedish mortgage margins could weigh on net interest income for the retail mortgage segment - impacts banking and retail mortgage markets.
  • AUM growth was supported by favourable market conditions and net inflows; a reversal in market conditions could reduce fee-based revenue and assets under management - impacts wealth management and asset management.
  • Maintaining the 2026 cost target while continuing investments in technology and artificial intelligence creates an execution risk if investments drive higher near-term expenses - impacts operating cost management.

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