Swedish bank SEB reported a fourth-quarter net profit on Wednesday that slightly missed market expectations and proposed a total annual dividend lower than analysts had anticipated.
The bank, which has a stronger focus on corporate clients compared to some of its domestic peers, posted a net profit of 7.49 billion Swedish crowns ($683 million), down from 8.37 billion a year earlier. This figure fell just short of the 7.65 billion forecasted in a poll of estimates compiled by LSEG.
SEB proposed an ordinary and special dividend totaling 11.5 crowns per share for the year, unchanged from the previous year but below the 12.73 crowns per share expected by analysts, according to LSEG.
CEO Johan Torgeby noted in a statement that the bank’s return on equity was impacted in the quarter by declining interest rates, a weaker net financial income, and costs associated with integrating payment service provider AirPlus.
As a key player in Sweden’s financial sector, particularly linked to the Wallenberg family’s investment sphere, SEB is the second major Swedish bank to report fourth-quarter earnings. Last week, Swedbank exceeded profit expectations.
Swedish banks have benefited from rising central bank interest rates in recent years, but the recent rate cuts by Sweden’s Riksbank have begun to put pressure on interest income, though the impact remains limited so far.
SEB reported interest income—comprising revenue from mortgages—of 10.82 billion crowns, down from 12.10 billion a year earlier but slightly above the analysts’ estimate of 10.59 billion. The bank also set a cost target of 33 billion crowns for 2025, including AirPlus, after reporting expenses of 30.9 billion in 2024, aligning with its previous guidance.
($1 = 10.9729 Swedish crowns)