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Swedish bank SEB Q3 net profit below forecast, pauses share buybacks - Finance news and analysis from Global Banking & Finance Review
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Swedish bank SEB Q3 net profit below forecast, pauses share buybacks

Published by Global Banking & Finance Review

Posted on October 22, 2026

2 min read

· Last updated: October 22, 2026

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SEB Q3 Net Profit Falls Below Forecast and Pauses Share Buybacks

SEB Third-Quarter Financial Results and Strategic Updates

Net Profit Performance

STOCKHOLM, Oct 22 (Reuters) - Swedish banking group SEB reported third-quarter net earnings below market expectations on Thursday and said it was pausing share buybacks due to continued loan growth and temporarily higher capital requirements.

Net Profit Figures

• SEB's net profit fell to 7.50 billion Swedish crowns ($758.70 million) from a year-ago 7.68 billion, below the 7.91 billion expected by analysts polled by LSEG

Net Financial Income

• "Net financial income was negatively impacted by muted client activity and a challenging market-making environment for the fixed income, foreign exchange and commodities business," acting CEO Jonas Ahlstrom said

Quarterly Income Breakdown

Net Interest Income

• Quarterly net interest income totalled 10.88 billion crowns versus 10.54 billion a year ago and a mean forecast of 10.97 billion

Trading and Volatility

• SEB said net financial income, which includes trading and is subject to sharper quarterly swings, fell to 1.12 billion crowns from 1.77 billion a year ago

Capital Requirements and Cost Outlook

Regulatory Changes

• Sweden's financial watchdog said earlier this month that SEB will temporarily be subject to higher capital requirements due to Internal Ratings-Based (IRB) model deficiencies. The new measure increases SEB's core tier one capital requirement by approximately 10 billion crowns

Cost Targets

• SEB said costs are expected to come in below the 2026 full year cost target by approximately 500-600 million crowns

Currency Exchange Rate

($1 = 9.8853 Swedish crowns)

Reporting Credits

(Reporting by Niklas Pollard, editing by Essi Lehto)

Key Takeaways

  • Net profit of SEK 7.50 billion missed analysts’ LSEG estimate of SEK 7.91 billion, down from SEK 7.68 billion a year ago
  • Net financial income dropped—Q3 trading income weakened due to sluggish fixed income, FX and commodities markets
  • Share buybacks paused as SEB addresses about SEK 20 billion in elevated CET1 capital requirements tied to IRB model deficiencies per the Swedish regulator

Frequently Asked Questions

Why did SEB pause share buybacks in Q3?
SEB paused share buybacks due to continued loan growth and temporarily higher capital requirements.
How did SEB's Q3 net profit compare to analyst expectations?
SEB's Q3 net profit was below analyst expectations, posting 7.50 billion Swedish crowns versus an expected 7.91 billion.
What factors impacted SEB's net financial income in Q3?
Net financial income was negatively impacted by muted client activity and a challenging market-making environment in fixed income, foreign exchange, and commodities.
What regulatory changes affected SEB's capital requirements?
Sweden's financial watchdog imposed temporarily higher capital requirements on SEB due to deficiencies in its Internal Ratings-Based (IRB) models.
Are SEB's operating costs expected to meet its 2026 target?
SEB stated costs are expected to come in below the 2026 full year cost target by approximately 500-600 million crowns.

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