Q4 2024 Skandinaviska Enskilda Banken AB Earnings Call Transcript
Key Points
- Skandinaviska Enskilda Banken AB (SVKEF) reported increased customer activity within Corporate and Investment Banking, particularly in the Large Corporate & Financial Institutions division.
- The bank maintained its top position for the Nordic Corporate Bank and was ranked as the top domestic equity service provider in the Nordics.
- The Board proposed an ordinary dividend of SEK8.50 per share, along with a special dividend of SEK3 per share, and announced a SEK10 billion share buyback program for 2025.
- Operating expenses were slightly below the communicated cost target, demonstrating effective cost management.
- The bank's asset quality remains strong, with net expected credit losses (ECLs) at 3 basis points, indicating a stable credit environment.
- Operating profit decreased by 2% compared to the previous year, excluding the impact of AirPlus.
- Net profit was down 3% sequentially from last year, and earnings per share (EPS) decreased by 1% on an underlying basis.
- Net interest income declined by 2% in the fourth quarter, reflecting challenges in maintaining interest margins.
- The bank's return on equity for the fourth quarter was 13.2%, which is below its long-term aspiration of 15%.
- The Prospera survey ranked the bank sixth in private banking in Sweden, indicating room for improvement in customer satisfaction in this segment.
Good morning, and welcome to this closing of the books for 2024 earnings call. As always, we will run through the PowerPoint presentation that we have posted on our website. Going to highlights, we have seen increased customer activity within Corporate and Investment Banking, still called Large Corporate & Financial Institutions division and some healthy customer activity with loan growth in the Baltics. Both costs and capital came in as planned for our full year targets.
The cost target for 2025 is set at SEK33 billion, which will enable us a fair balance between incorporation of AirPlus, reinvesting in the business, acknowledging some higher inflation rates going forward, compensated by continuation of extract efficiencies and productivity gains within the group. The Board has proposed to the AGM an ordinary dividend of SEK8.50 per share, combined with a special dividend of an additional SEK3 per share. And we've also announced the intention and the share buyback program for the full year of 2025
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