SEB: We Are Raising Our Fair Value Estimate to SEK 152 per Share

Skandinaviska Enskilda Banken's focus on corporate lending and advisory banking services results in a healthy diversification between spread- and fee-based income streams. We like the group’s achievements in its efficiency programmes, keeping costs virtually flat for almost a decade. SEB has exploited its largest efficiency levers such as noncore divestments and branch closures. As a result, the group now has one of the smallest branch networks in the Nordics, and management already acknowledged that any further closures may chip away at its small and medium enterprise business, which relies on close customer relationships through branches.