SEB Q2 Profit Rises on Strong Lending, Record Fee Income, Announces New Share Buyback

Swedish bank Skandinaviska Enskilda Banken (SEB) reported stronger second-quarter 2026 earnings, supported by robust client activity, higher corporate lending, and record fee income, while unveiling a new share buyback...

Swedish bank Skandinaviska Enskilda Banken (SEB) reported stronger second-quarter 2026 earnings, supported by robust client activity, higher corporate lending, and record fee income, while unveiling a new share buyback program to return capital to shareholders. SEB posted operating profit of 10.77 billion Swedish crowns ($1.12 billion) for the April-June quarter, up 4% from the same period a year earlier. Net profit increased 5% to 8.66 billion crowns, reflecting steady business growth and resilient customer demand.

Total operating income rose 3% year-over-year to 20.06 billion crowns, driven by record net fee and commission income of 7.19 billion crowns alongside higher net financial income. Net interest income also improved 1% to 10.69 billion crowns, benefiting from stronger lending volumes and stable to higher policy interest rates, despite ongoing pressure on mortgage lending margins in Sweden. Customer lending expanded 4% from the previous quarter to 2.41 trillion crowns, fueled by increased borrowing from large corporate clients.

Customer deposits also climbed to 2.03 trillion crowns, highlighting continued confidence in the bank. Meanwhile, assets under management reached a record 3.07 trillion crowns, supported by favorable market performance and net inflows totaling 11 billion crowns. SEB also reported improving credit quality during the quarter.

Net expected credit losses declined to 345 million crowns from 546 million crowns in the previous quarter, underscoring the resilience of its loan portfolio despite an uncertain economic environment. The bank maintained its 2026 cost target of approximately 33.3 billion crowns, plus or minus 250 million crowns at current exchange rates, while continuing to invest in technology upgrades and artificial intelligence initiatives aimed at strengthening long-term efficiency and customer services. In addition, SEB's board approved a new quarterly share buyback program worth 1.25 billion crowns after successfully completing its previous repurchase plan, reinforcing the bank's commitment to delivering shareholder value while maintaining a solid financial position.