By Dominic Chopping
STOCKHOLM–Skandinaviska Enskilda Banken AB on Wednesday posted a better-than-expected first-quarter net profit as both net interest income and fees and commission rose on the year.
The Sweden-based bank posted net profit of 6.4 billion Swedish kronor ($650.2 million) for the three months ended Mar. 31, up from SEK6.02 billion a year earlier and above the SEK4.98 billion forecast from analysts polled by FactSet.
Net interest income for the quarter rose 12% to SEK7.06 billion, while expected credit losses in the quarter rose to SEK535 million from SEK156 million a year prior.
As part of a new 2022-24 business plan, the bank said its cost target for 2022 of SEK24.5 billion remains unchanged.
SEB has a small presence in both Ukraine and Russia and it said recently that it is not viable to maintain operations in Russia under the current conditions, so has therefore started scaling down.
“We believe we are well reserved, and therefore net expected credit losses are likely to remain at a low level for the full year,” Chief Executive Johan Torgeby said.
The bank’s common equity Tier 1 ratio–a key measure of financial strength–stood at 18.7% at the end of the quarter down from 20.3% a year prior.
Write to Dominic Chopping at [email protected]
Credit: www.marketwatch.com /