Skandinaviska Enskilda Banken AB (publ)

The stable outlook reflects our view that SEB's earnings will remain robust and support its credit profile. Although the economic backdrop could create a more difficult operating climate, asset quality is expected to remain intact over 2023-2024. We anticipate SEB will remain compliant with the requirements set by financial regulators, having worked to improve its AML framework. Our RAC ratio is expected to remain sustainably above 10% over our two-year outlook horizon, supported by SEB's strong capacity for profit generation. We could lower the ratings if macroeconomic pressures and geopolitical uncertainties appear to challenge asset quality and earnings materially beyond our expectations. Also, while AML risks have subsided, if ongoing investigations indicate possible misconduct signaling that governance and control weaknesses

...S&P Global Ratings expects Skandinaviska Enskilda Banken AB (SEB)'s diversified revenue mix will support earnings in 2023-2024. SEB's leading position among large corporates in the Nordics and top position in the Swedish and Baltic retail markets affords the bank a steady revenue stream. We believe SEB's diversified offerings will continue to serve it well in delivering approximately Swedish krona (SEK) 50 billion-SEK51 billion (4.8 billion) in annual operating revenue over the coming years. We forecast SEB's capitalization will remain solid. SEB's risk-adjusted capital (RAC) ratio was 10.3% as of year-end 2022. RAC is expected remain at 10%-11% over the next two years, assuming annual risk-weighted asset (RWA) growth of about 5-6%. Buybacks of about SEK2.5 billion are incorporated in 2023 capital figures, similarly we expect...

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