SEB Earnings Beat Forecasts on Higher Income

By Dominic Chopping

STOCKHOLM--Skandinaviska Enskilda Banken posted a better-than-expected first-quarter net profit, driven by a sharp rise in income.

The Sweden-based bank posted net profit of 9.5 billion kronor ($878.7 million), up from SEK9.39 billion a year earlier and ahead of the SEK8.84 billion forecast from analysts polled by FactSet.

Net interest income rose 4.1% to SEK11.77 billion, compared with an expected SEK12.12 billion.

"The strengthening macroeconomic picture in Sweden was partly reflected in an improved market sentiment," Chief Executive Johan Torgeby said.

"At the same time, the high interest rate environment continued to have a dampening effect on credit demand."

SEB has an overall ambition to grow earnings per share and reach the long-term aspirational target of 15% return on equity.

Its cost target for 2024 is below or equal to SEK29 billion, assuming average foreign-exchange rates during 2023.

The bank's common equity Tier 1 ratio--a key measure of financial strength--stood at 18.9% at the end of the quarter, down from 19.2% a year prior.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 24, 2024 01:46 ET (05:46 GMT)

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