Skandinaviska Enskilda Banken AB (publ)

Well-diversified revenue base by geography and business areas, supporting capital generation. Large Nordic corporate and institutions business supportive of several business areas. Stable earnings from Swedish retail and large corporate banking business. Concentration of comparably large single-name exposures. Cost efficiency is less than domestic peers, but is improving. Our stable outlook on Sweden-based Skandinaviska Enskilda Banken AB (publ) (SEB) balances increasing economic risks in SEB's core market with our view that the Swedish government will remain supportive of its domestic systemically important banks. The outlook also reflects our view that the bank will have a RAC ratio of 10.5%-11.0% over the next 18-24 months, consistent with our revised strong assessment of the bank's capital and earnings. Moreover, this incorporates our

...Outlook : Stable Our stable outlook on Sweden-based Skandinaviska Enskilda Banken AB (publ) (SEB) balances increasing economic risks in SEB's core market with our view that the Swedish government will remain supportive of its domestic systemically important banks. The outlook also reflects our view that the bank will have a RAC ratio of 10.5%-11.0% over the next 18-24 months, consistent with our revised strong assessment of the bank's capital and earnings. Moreover, this incorporates our view that SEB's asset quality and loss experience will continue to be in line with that of its core Nordic peers. We anticipate stable credit losses of about 10 bps of total lending, which we believe will be reinforced by the bank's continued focus on maintaining low earnings volatility, in addition to the supportive interest rate environment. Our view is further underpinned by SEB's established franchise value that enables the bank to deliver consistently solid profitability metrics. If the negative trends...

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