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1. Company Snapshot

1.a. Company Description

Skandinaviska Enskilda Banken AB (publ) provides corporate, retail, investment, and private banking services.It operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Baltic, Life, and Investment Management divisions.The company offers research and strategy services; analysis, advisory, execution, and trading services in the foreign exchange, fixed income, equities, and commodities markets; transaction services, including cash management, trade and supply chain finance, and business services; and investor services.


It also provides investment banking services, such as corporate finance advisory services related to acquisitions, divestments, and mergers; equity capital market services related to initial public offerings, rights issues, and placings; debt transaction services comprising bonds, corporate acquisition financing, and general corporate refinancing services; leveraged and structured finance services, as well as real estate and shipping finance services.In addition, the company offers venture capital for entrepreneurs and innovators; asset management products that include equities, fixed income securities, hedge funds, commodities, and private equity solutions; and pensions, life insurance, health care insurance, and disability insurance.It serves large corporations and financial institutions, private customers, and small and medium-sized corporates.


The company offers its services through 156 branch offices.It operates in Sweden, Norway, Denmark, Finland, Estonia, Latvia, Lithuania, Germany, the United Kingdom, the United States, Ireland, Luxembourg, China, Singapore, Russia, Poland, Hong Kong, Ukraine, and internationally.The company was founded in 1856 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on SEB

Skandinaviska Enskilda Banken AB (publ) recent performance was driven by its focus on strategic acquisitions and market leadership to drive future growth. The company's emphasis on expansion through acquisitions is a positive driver, as it can lead to increased market share and revenue growth. Additionally, the bank's focus on dividend stocks, such as BioGaia, offers potential stability and income generation for investors. Furthermore, the company's consideration as a top dividend stock in January 2025 highlights its attractiveness to investors seeking reliable returns amidst market volatility. The bank's ability to navigate economic uncertainty and fluctuating market performance through regular payouts makes it an attractive option for investors.

1.c. Company Highlights

2. SEB's Q4 2025 Earnings: A Strong Finish to a Challenging Year

SEB's Q4 2025 earnings report showed a resilient financial performance, with revenues coming in at SEK 14.4 billion, slightly above analyst estimates. However, EPS came out at SEK 3.51, below estimates of SEK 3.7. The bank's net interest income was impacted by lower rates, but this was offset by a pickup in fees and commission income across all divisions. The bank's cost control was also commendable, with the cost target being met. As Christoffer Malmer, CFO, noted, "the full-year 2025 performance showed a diversified revenue mix, with net interest income impacted by lower rates and net fee and commission income increasing organically and due to AirPlus consolidation."

Publication Date: Feb -02

📋 Highlights
  • Dividend & Buyback Proposal:: Proposed ordinary (SEK 8.50/share) and special (SEK 2.50/share) dividends plus SEK 1.25B share buyback in Q1 2026.
  • Cost Target Adjustment:: Annual cost target reduced by SEK 500M due to stronger krona, with 2026 cost growth of ~2% excluding AirPlus charges.
  • AI & Tech Investment:: SEB plans SEK 500M in AI, regulatory resilience, and digital assets, including a euro-denominated stablecoin initiative.
  • Capital Strength:: CET1 buffer at 290 bps (pro forma) above 360 bps regulatory minimum, with surplus pension capital of SEK 24B.
  • Fee Income Growth:: Q4 2025 saw increased fees/commissions (driven by CIB corporate finance and BRB card fees), offsetting net interest income declines.

Revenue Mix and Cost Control

The bank's revenue mix was diversified, with net fee and commission income increasing organically and due to AirPlus consolidation. The cost target was adjusted downwards by SEK 500 million due to the stronger krona. The bank's cost control was also evident in its ability to meet its annual cost target. For 2026, SEB expects an underlying cost increase of around 2% excluding implementation charges at AirPlus.

Capital Position and Dividend

SEB's capital position remains strong, with a CET1 buffer above the regulatory minimum. The bank's ROE came in at 14% underlying, below its 15% target. The Board proposed an ordinary dividend of SEK 8.50 per share, a special dividend of SEK 2.50 per share, and a SEK 1.25 billion share buyback program for the first quarter of 2026. The dividend yield stands at 4.44%, which is attractive given the current interest rate environment.

Valuation

SEB's P/TBV ratio stands at 1.64, indicating that the stock is reasonably valued. The bank's NIM is also expected to remain stable, given its diversified revenue mix. Analysts estimate next year's revenue growth at 4.4%, which is modest but in line with the bank's guidance. Given the current valuation multiples and dividend yield, we believe SEB remains an attractive investment opportunity in the banking sector.

3. NewsRoom

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Skandinaviska Enskilda Banken AB (SVKEF) Q4 2025 Earnings Call Highlights: Strong Dividends and ...

Jan -29

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Municipality Finance issues EUR 100 million notes under its MTN programme

Jan -21

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Municipality Finance issues SEK 1 billion notes under its MTN programme

Jan -14

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Assessing Skandinaviska Enskilda Banken (OM:SEB A)’s Valuation After Its Recent Share Price Climb

Dec -17

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EQT completes sale of shares in Enity Holding AB (publ)

Dec -16

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Smart Eye Aktiebolag (publ) Contemplates Issuing Senior Unsecured Bonds

Dec -08

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Today's $67 Per Barrel Is Only $44 in 2008 Dollars

Dec -05

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Neometals secures conditional grant for VRP1 in Pori, Finland

Nov -17

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.80%)

6. Segments

Corporate & Investment Banking

Expected Growth: 2.2%

The global revenue growth hypothesis of 1.8% is adjusted to 2.2% for this segment due to its strong performance in investment banking and capital markets, driven by increasing demand for advisory services and growth in emerging markets.

Business & Retail Banking

Expected Growth: 1.5%

The expected growth rate of 1.5% is slightly lower than the global hypothesis, reflecting the segment's stable but mature nature, with growth driven by digitalization and increasing customer activity.

Baltic

Expected Growth: 2.5%

The Baltic segment is expected to grow at a faster rate of 2.5% due to the region's strong economic growth, driven by EU funding and a growing tech industry, which is expected to boost demand for banking services.

Private Wealth Management & Family Office

Expected Growth: 3.0%

The expected growth rate of 3.0% reflects the segment's strong performance, driven by increasing demand for wealth management services, growing assets under management, and a focus on providing personalized services to high net worth clients.

Life

Expected Growth: 2.0%

The expected growth rate of 2.0% reflects the segment's stable performance, driven by a growing demand for life insurance products, particularly in the areas of savings and retirement planning.

Investment Management

Expected Growth: 3.2%

The expected growth rate of 3.2% reflects the segment's strong performance, driven by a growing demand for investment products, increasing assets under management, and a focus on providing innovative investment solutions.

Eliminations

Expected Growth: 0.0%

The expected growth rate of 0.0% reflects the segment's neutral nature, as it simply represents the elimination of intra-group transactions and balances, with no underlying business growth.

Group Functions

Expected Growth: 0.0%

The expected growth rate of 0.0% reflects the segment's stable nature, as it provides essential functions to the bank, with growth driven by regulatory requirements and internal efficiency measures.

7. Detailed Products

Corporate & Private Banking

Provides a range of financial services to corporate and private clients, including cash management, trade finance, and investment products.

Life Insurance

Offers a range of life insurance products to individuals and companies, including term life, whole life, and pension insurance.

Investment Management

Provides investment management services to institutional clients, including portfolio management and investment advice.

Transaction Services

Offers a range of transaction services, including payment processing, card services, and account services.

Card Services

Provides card services, including credit cards, debit cards, and prepaid cards, to individuals and companies.

Asset Management

Offers a range of asset management services, including fund management and discretionary portfolio management.

Real Estate Finance

Provides real estate finance services, including property financing and property management.

Trade Finance

Offers trade finance services, including letter of credit, factoring, and forfaiting.

8. Skandinaviska Enskilda Banken AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Skandinaviska Enskilda Banken AB (publ) is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers is low due to the bank's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the bank's dependence on technology providers and other third-party vendors.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the banking industry, including regulatory requirements and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the banking industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.83%
Debt Cost 7.74%
Equity Weight 13.17%
Equity Cost 7.74%
WACC 7.74%
Leverage 659.48%

11. Quality Control: Skandinaviska Enskilda Banken AB (publ) passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SEB

A-Score: 7.0/10

Value: 5.7

Growth: 6.2

Quality: 4.9

Yield: 8.1

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Danske Bank

A-Score: 6.6/10

Value: 5.5

Growth: 4.6

Quality: 5.5

Yield: 6.9

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
UniCredit

A-Score: 6.5/10

Value: 4.0

Growth: 6.7

Quality: 5.8

Yield: 7.5

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Société Générale

A-Score: 6.5/10

Value: 8.6

Growth: 4.2

Quality: 5.5

Yield: 6.2

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Lloyds Banking

A-Score: 6.1/10

Value: 5.0

Growth: 2.7

Quality: 5.4

Yield: 6.9

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Deutsche Bank

A-Score: 5.7/10

Value: 6.7

Growth: 4.9

Quality: 5.1

Yield: 3.1

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

196.85$

Current Price

196.85$

Potential

-0.00%

Expected Cash-Flows