Update: 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 2022-2024. 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 over the next two years despite the weakening economic outlook. 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 stream of revenue. Notably, its corporate service offering will capture increased lending demand and hedging needs in a more volatile environment. We believe SEB's diversified offerings will continue to support earnings, delivering approximately Swedish krona (SEK) 23 billion-SEK24 billion (2.1 billion-2.2 billion) in net profits over the coming years. However, we acknowledge there is a high degree of macroeconomic uncertainty--inflationary pressures, weaker growth, and capital market volatility are included as probable challenges for SEB....

Full Report