SEB 3Q Net Profit Beat Forecasts on Higher Income, Flat Costs
October 22 2020 - 2:01AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Skandinaviska Enskilda Banken AB on Thursday posted a
better-than expected third-quarter net profit as net interest
income rose while costs remained flat.
The Sweden-based bank posted net profit of 4.77 billion Swedish
kronor ($546.4 million) for the three months ended Sept. 30,
unchanged from a year earlier and above the SEK4.6 billion forecast
from analysts polled by FactSet.
Net interest income for the quarter rose 5.9% to SEK6.34 billion
while expected credit losses in the quarter increased to SEK1.1
billion from SEK489 million a year prior. The majority of
allowances taken were mainly related to the offshore portfolio,
which includes rigs, accommodation rigs and platform support
vessels.
"We continue to see limited effects from the pandemic on the
asset quality and the guidance on net expected credit losses of
around SEK6 billion for 2020 remains," Chief Executive Johan
Torgeby said.
"We have a strong capital and liquidity position and the capital
buffer above the common equity tier 1 regulatory requirement
amounted to 580 basis points. Despite some light at the end of the
tunnel, uncertainty still remains," he said.
The bank's common equity Tier 1 ratio--a key measure of
financial strength--stood at 19.4% at the end of the quarter, up
from 16.4% a year prior.
SEB said the board has assessed the current situation and
confirms its previous decision to not propose a dividend during
2020.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 22, 2020 01:46 ET (05:46 GMT)
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