SEB's Net Profit Takes Hit From Lower Interest Rates

By Adria Calatayud

Skandinaviska Enskilda Banken reported a decline in fourth-quarter net profit, partly reflecting lower interest rates, and said it would seek to keep a grip on costs to boost productivity.

The Sweden-based bank on Thursday posted fourth-quarter net profit of 7.31 billion Swedish kronor, equivalent to $827.1 million, down from 7.49 billion kronor in the year-earlier period. Analysts had forecast net profit at 7.73 billion kronor, according to consensus estimates compiled by the bank.

Net interest income--the difference between how much banks earn and pay on interest--fell to 10.07 billion kronor from 11.11 billion kronor, driven by lower interest rates. Analysts had forecast the metric at 10.2 billion kronor.

Net fee and commission income increased by 8% to 6.81 billion kronor, but total income still declined 5% to 18.89 billion kronor.

"After a number of years of cost expansion and growth in full-time employees, we are entering a phase in which we will capitalize on prior investments and leverage new technology to enhance efficiency and productivity," SEB President and Chief Executive Johan Torgeby said.

The bank, which said its employee numbers fell last year for the first time since 2018, set a 2026 cost target of 33.4 billion kronor, plus or minus 250 million kronor.

SEB said it would launch a quarterly buyback of 1.25 billion kronor, on top of an ordinary dividend of 8.50 kronor a share and a special dividend of 2.50 kronor a share.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

January 29, 2026 00:59 ET (05:59 GMT)