Skandinaviska Enskilda Banken on Wednesday reported a 12% drop in second-quarter operating profit, as declining interest rates weighed on its lending income.
The Swedish lender posted an operating profit of 10.4 billion Swedish kronor, down from 11.84 billion kronor in the same period a year earlier.
“Our net interest income decreased as interest rates continued to decline but the effect was partially offset by continued growth in lending and deposit volumes,” Chief Executive Johan Torgeby said in a statement.
Separately, the bank announced it expects to hold more capital for its operations in the Baltics.
SEB said its risk exposure amount is expected to increase by approximately 5% related to ongoing updates of its risk models for its Baltic subsidiaries.
The change is expected to be implemented gradually, likely starting toward the end of 2025 or early 2026, the company said.
Net profit for the quarter fell 12% to 8.25 billion kronor.
The bank also said its board approved a new share buyback program of 2.5 billion kronor after completing a previous one of the same size.
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