STOCKHOLM (Reuters) -Swedish bank SEB reported a smaller-than-expected drop in second-quarter profit on Wednesday, as continued growth in lending and deposit volumes partially offset the impact of lower interest rates.
Net profit fell to 8.25 billion crowns ($849.5 million) from 9.42 billion crowns seen last year, against a mean forecast of 7.64 billion crowns in an LSEG poll of analysts.
Net interest income, which includes revenue from mortgages, fell to 10.3 billion crowns from 11.7 billion, against 10.2 billion crowns projected by analysts.
SEB generates a larger portion of its income from corporate clients compared with domestic rivals such as Swedbank, which is scheduled to report results on Thursday.
Still, for all Sweden’s banks, a series of central bank rate cuts over the past year has weighed on interest income, while uncertainty surrounding U.S. President Donald Trump’s tariff plans has clouded the outlook for clients and lenders alike.
Earlier in the day, Swedish rival Handelsbanken reported a drop in quarterly net profit, bigger than forecast, as net interest income fell while lending volume growth was limited.
SEB said costs fell in the quarter and reaffirmed its previously announced full-year cost target of 33 billion crowns in local currencies. However, the target has decreased in Swedish crown terms due to the recent strengthening of the currency.
SEB, a key piece of the financial sphere centred on Sweden’s Wallenberg family, announced a new quarterly share buyback programme of 2.5 billion crowns.
(Reporting by Anna Ringstrom; Editing by Louise Rasmussen and Sherry Jacob-Phillips)
