SEB's Q1 Profit Declines Amid Trade Tariff Turbulence

SEB reports Q1 net profit decline of 18% to 7.82B kronor. Earnings per share also fell to 3.89 kronor. The bank's strong capital position may offer resilience in uncertain market conditions.

Date: 29-04-2025

AI Rating: 4

SEB's recent Q1 report indicates a significant downturn in financial performance, with net profit falling by 18% and earnings per share (EPS) dropping from 4.60 kroner to 3.89 kroner. Such declines in EPS are concerning as they indicate decreased profitability on a per-share basis, which will likely affect investor sentiment negatively.

Moreover, the total operating profit also saw a reduction, down 19% to 9.95 billion kronor. This drop in operating profit is indicative of pressures the bank is facing, such as increased expenses or reduced revenue, which could raise concerns about the overall efficiency of the bank's operations. A declining operational profit margin could deter investors looking for stability in their investments.

In response to declining profits, SEB has highlighted its robust capital and liquidity positions. Being one of the most well-capitalized banks in Europe places SEB in a favorable position to weather market volatility—especially as the bank acknowledged notable turbulence due to new trade tariffs introduced early in the second quarter

Overall, SEB’s financial decline may present a risk for investors in the short term, although its strong liquidity may help navigate these difficulties. Investors will need to monitor incoming data regarding the impact of these tariffs on banking operations.

**Earnings Review Ratings:**
- **Earnings Per Share (EPS):** 4
- **Net Income:** 4
- **Operating Profit:** 4

Stocks: SEB