Download PDF

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.

Show Full description

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 Q3 2025 Earnings: A Closer Look at Financial Performance

SEB reported a net profit of SEK 7.7 billion for Q3 2025, with a return on equity of 14%. The bank's operating income declined from the previous quarter, largely due to typical seasonal patterns. The net interest income increased slightly, driven by a higher day count, positive FX effects, and lower short-term funding costs. The actual EPS came in at 3.84, slightly below estimates of 3.91. The bank's CET1 ratio stood at 18.2%, with a management buffer of 360 basis points, indicating a strong capital position.

Publication Date: Oct -24

📋 Highlights
  • Net Profit & ROE:: SEB reported Q3 2025 net profit of SEK 7.7 billion, achieving a 14% return on equity.
  • Cost Target:: Full-year cost target remains at SEK 32.6 billion, with a flexibility range of ±SEK 300 million.
  • Capital Strength:: CET1 ratio at 18.2% with a 360 bps management buffer, and LCR/NSFR at 136%/116%.
  • Share Buyback:: Ongoing SEK 2.5 billion quarterly share buyback program, supported by a 50% payout ratio policy.
  • Net Interest Income Outlook:: NII expected to bottom 3-6 months post-last rate cut, with Q3 growth driven by day count and FX effects.

Revenue and Margin Analysis

The bank's revenue growth is expected to be around 1.8% next year, according to analyst estimates. The net interest income is expected to bottom out 3-6 months after the last rate cut, and the outlook for activity-based lending is positive, with a strong pipeline. The bank's net interest margin is a key metric to watch, given the current interest rate environment. SEB's wholesale funding amounts to SEK 400 billion, with U.S.-denominated deposits at SEK 409 billion, which will be impacted by rate cuts.

Valuation Metrics

SEB's Price-to-Tangible Book Value (P/TBV) ratio is an important metric, given the bank's strong capital position. With a P/B Ratio of 1.67, the bank's valuation appears reasonable. The Dividend Yield stands at 4.69%, making it an attractive option for income-seeking investors. The bank's target payout ratio is 50%, and the board has decided to continue the SEK 2.5 billion share buyback program per quarter.

Capital and Liquidity

The bank's capital and liquidity measures strengthened during the quarter, with an LCR of 136% and an NSFR of 116%. The bank's risk-weighted assets were lower than expected, and the run rate is considered reasonable. SEB's buffer stands at 290 basis points, with an estimated 70 basis point impact from the ECB-imposed add-on.

Outlook and Growth Prospects

The Swedish banking market is showing signs of improvement, particularly in capital markets transactions, which is encouraging. The bank's Baltic lending business is growing at 8-9% year-on-year, maintaining its market share. The bank's CEO notes that the leverage buyout market in the Nordics is well-functioning, making private debt less necessary. The bank's capital generation will continue to increase, and the dynamic analysis going forward will consider this when determining the capital position for board deliberations on repatriation.

3. NewsRoom

Card image cap

Neometals secures conditional grant for VRP1 in Pori, Finland

Nov -17

Source:

Card image cap

Assessing SEB's (OM:SEB A) Valuation After Earnings Reveal Weaker Net Income and EPS

Nov -03

Source:

Card image cap

Navios Maritime Partners L.P. Announces Successful Placement of 5-Year Senior Unsecured Bonds

Oct -28

Source:

Card image cap

Fresh USA Sanctions Reignite Strong Upside Momentum in Oil

Oct -23

Source:

Card image cap

Repurchase of shares in Boliden AB on October 22

Oct -23

Source:

Card image cap

Boliden resolves to repurchase its shares

Oct -22

Source:

Card image cap

A Fresh Look at SEB (OM:SEB A) Valuation After Recent Uptrend in Shares

Oct -13

Source:

Card image cap

Is Skandinaviska Enskilda Banken Still Attractive After 29.6% Stock Gain and Strong Earnings?

Oct -13

Source:

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: 5.6

Growth: 5.4

Quality: 5.6

Yield: 8.1

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Danske Bank

A-Score: 6.8/10

Value: 5.5

Growth: 4.4

Quality: 5.6

Yield: 8.1

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
UniCredit

A-Score: 6.7/10

Value: 6.2

Growth: 5.9

Quality: 6.8

Yield: 6.9

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Lloyds Banking

A-Score: 6.3/10

Value: 6.6

Growth: 2.8

Quality: 5.6

Yield: 6.9

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Société Générale

A-Score: 6.3/10

Value: 9.2

Growth: 4.2

Quality: 5.5

Yield: 4.4

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Deutsche Bank

A-Score: 5.8/10

Value: 8.3

Growth: 3.4

Quality: 5.9

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

188.85$

Current Price

188.85$

Potential

-0.00%

Expected Cash-Flows