Q2 2024 Skandinaviska Enskilda Banken AB Earnings Call Transcript
Key Points
- Return on equity improved to 17.6%, indicating strong profitability.
- Capital buffer remains solid at 430 basis points over the regulatory minimum requirement.
- Increased quarterly share buyback program to SEK2.5 billion, resulting in an annual pace of SEK10 billion.
- Positive net flows in asset management, driven by private wealth management and family offices.
- 44% uptick in operating income for the investment bank, showing recovery from low volumes last year.
- Income tax expense was elevated in Q1, leading to a marginal decrease in net profit.
- Net interest income is down marginally in Q2 versus Q1, with continued margin pressure on the mortgage side.
- Uncertainty remains around the timing and magnitude of potential reserve releases.
- Operating profit is up only 2% so far this year, indicating slow growth.
- Imposed levies are expected to be just below SEK2 billion in the second half of 2024, adding to costs.
Good morning to everyone for the second quarter results from SEB. And as always, you can follow the slides that we are referring to on our website.
Starting with the highlights for the second quarter, we saw improved business momentum in several areas of the bank, including positive net flows in asset management, and that was also broad-based across divisions. We clearly saw a higher activity level within the investment bank and also signs of improving credit demand. And I'll come back to this with some data points in a minute.
Return on equity improved to 17.6%. And our capital buffer was remained at a solid level at 430 basis points over the regulatory minimum requirement. And we have, together with the Board, decided to increase the quarterly share buyback program now to SEK2.5 billion in the next period, resulting in an annual pace of SEK10 billion per annum.
Flicking to the next page, just to give a few data points on the improved business momentum. So first, on the net flows in
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