SEB (SEB) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by macroeconomic turbulence and geopolitical tensions, especially in the Middle East, leading to higher energy prices, inflation risk, and volatile markets, but conditions stabilized in April.

• Market volatility drove higher demand for commodity hedging and secondary equities activity; cost consolidation efforts progressed, enabling continued investment and a SEK 1.25 billion share buyback per quarter.

• Modest growth in corporate and property management lending, with strong year-over-year growth in the Baltics and Wealth & Asset Management, supported by new customer inflows.

• Customer satisfaction surveys showed strong positions in cash management, fixed income, and capital markets in Sweden.

• Operating profit rose 7% sequentially to SEK 9,432m, but fell 5% year-over-year.

Financial highlights

• Net profit for Q1 2026 was SEK 7,497m, with EPS at SEK 3.83 and return on equity at 13.1%.

• Net interest income declined 6% year-over-year to SEK 10,242m, mainly due to lower deposit margins from lower rates.

• Net fee and commission income fell 4% year-over-year to SEK 6,410m, especially in payment/card fees and securities commissions.

• Net financial income dropped 28% year-over-year to SEK 1,699m.

• Operating expenses declined 8% year-over-year to SEK 7,616m, with FTEs down by 250 from Q1 last year.

Outlook and guidance

• Cost target for 2026 updated to SEK 33 billion ± SEK 250 million, with actuals tracking below target.

• Market-related fee and commission income outlook remains dependent on broader market conditions and volatility.

• No changes to financial targets: 50% payout ratio, 100-300 bps capital buffer, and 15% ROE aspiration.

• Share repurchases remain the main form of capital distribution when capital exceeds targets.