SEB AB (AO) | Hold | Q2 first take: strong report, beat on all lines

研报英文原文证据摘录

SEB AB (AO) | Hold | Q2 first take: strong report, beat on all lines

SEB AB Hold | Target Price: SEK210.00

Company description Management

SEB is one of Sweden's Big 4 banks with a presence in all four Nordic countries, Johan Torgeby, CEO

Germany, and the Baltics. The group has a large corporate bias in its business Christoffer Malmer, CFO

mix relative to peers. Pawel Wyszynski, Head of IR

Key shareholders

Free float 74.00%

Investor 21.80%

AMF 4.40%

SEB 4.00%

Investment case Valuation methodology

A diversified income mix, high return on equity, and low We value SEB using an excess capital valuation model, with

expected regulatory headwinds should result in fast capital assumptions for cost of equity, normalised RoE, and terminal

build-up and a high yield from dividends and buybacks. growth.

We see limited headwinds from normalised credit losses. Risks to our rating

However, the economic environment is declining, which could Deteriorating credit quality triggered by a combination of higher

increase impairments somewhat. interest rates, rising unemployment, and falling real estate

We consider SEB one of the best-capitalised European banks, prices could lead to higher credit impairments.

and we foresee continued capital distribution in order to reach Regulatory and political pressure to impose further levies could

capital target levels. make the shares less attractive.

Catalysts Pressure on net interest margins, if competition were to increase

Higher capital distribution should support the share price. as volume growth slows.

Changes in policy rates.

Macro data such as unemployment, house prices, and CRE

prices.

Key data charts

Price performance Segment revenue CET1 ratio

SWOT analysis

Strengths Weaknesses

Strong position in large corporate customer segment.