SEB Results: All About Asset Quality

SEB 1Q24 results are 24-Apr – all about asset quality but spreads have still tracked banks tighter since the last results, even as the equity’s underperformed.

• FY23 results missed at the net profit level on higher loan losses. Non-performers remained low in absolute sense but were also higher and this appears likely to be the focus for these results. That said, spreads have tracked the market tighter (unlike Handelsbanken) which highlights that incremental equity payouts (or lack thereof with last results) are a greater factor.
• Handelsbanken’s curve is 34bp tighter YTD (EUR IG banks -33bp) but its equity is down marginally (would have been +6% pre-dividends) since its last results (SX7P +15%).
• EPS estimates are up marginally since results, revenue estimates have barely moved.

Results are 0600 (London) with a conf call at 0830, available at: https://sebgroup.com/investor-relations/reports-and-presentations/presentations