SEB Beats Estimates as Handelsbanken Falters in Swedish Bank Earnings

SEB, Sweden’s largest lender by market value, reported second-quarter net profit of 8.25 billion kronor ($850 million), down from 9.42 billion a year earlier but ahead of the 7.64 billion kronor consensus compiled by LSEG. Lending and deposit growth partially offset the drag from lower interest rates, leaving net interest income at 10.3 billion kronor, marginally above expectations. The board authorised a new quarterly share-buyback programme of 2.5 billion kronor. Rival Handelsbanken posted a weaker set of numbers the same day. Second-quarter net profit fell to 5.49 billion kronor, almost 20 percent below the prior year and short of the 6.79 billion kronor analysts anticipated. Revenue slipped to 13.62 billion kronor versus forecasts for 14.51 billion, as a stronger Swedish krona weighed on net interest income. Operating profit of 7.16 billion kronor also trailed expectations.