Q3 2024 Skandinaviska Enskilda Banken AB Earnings Call Transcript
Key Points
- Skandinaviska Enskilda Banken AB (SVKEF) has successfully integrated the acquisition of Germany's Air Plus, enhancing its corporate credit card business.
- The bank continues its share buyback program, committing to a capital target of 300 basis points or below as a capital buffer by year-end 2024.
- The establishment of a Chief Operating Officer function aims to improve decision-making speed and clarity in a complex banking environment.
- Skandinaviska Enskilda Banken AB (SVKEF) maintains a strong position in the Nordic market, holding the number one spot in FX, Nordic equities, and asset management.
- The bank's operating income has grown by 3% year-to-date, reaching 61.9 billion for the first nine months of 2024.
- Net interest income has declined by 4% sequentially, excluding the impact of Air Plus, due to changes in deposit mix and market conditions.
- The bank has underperformed relative to larger peers in Sweden in terms of public perception, as indicated by the Swedish Quality Index.
- Operating expenses have increased by 6% on an underlying basis, partly due to the integration of Air Plus.
- Expected credit losses have risen to 393 million in the quarter, reflecting specific provisions on a small number of exposures.
- The bank's return on equity has decreased to 17%, with an operating profit decline of 7% compared to the same period last year.
Welcome everyone to our Q3 2024 results. As customary, we will refer to the slides or from the slide show that we posted on SAB on the web. So starting with our highlights on page 2, this is clearly a quarter where interest rates continue to fall and amidst a falling interest rate environment, one can see the diversified business model of SAB in play where both fees and commission and net financial income mitigates the otherwise falling trend in interest rates.
We've also now consumed the acquisition of Germany's Air plus, the corporate credit card business and therefore we reiterate the underlying cost target for 2024 of the low or at '29 billion and we now include Air plus, which we will come back to and the new target is 31.0 billion.
We continue after the decision of the board yesterday with our share buyback program with another 2.5 billion per quarter and this means that we are continued to continue to commit to our capital target of 300 basis points or below as a capital buffer as of
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