The net profit of Swedish bank SEB in Q2 is lower than expected

Swedish bank SEB reported a smaller-than-expected fall in second-quarter net profit on Wednesday as the effects of lower interest rates were partially offset by continued growth in lending and deposit volumes.

Analysts polled by LSEG predicted a net profit of 8.25 billion crowns (US$849.5 million), down from 9.42 billion crowns a year ago.

The net interest income (which includes mortgage revenues) fell from 11.7 billion crowns to 10.3 billion crowns in the previous year, slightly above the 10,2 billion predicted by analysts.

It is the first bank to announce its second-quarter results among Sweden's largest banks. The bank generates more income from corporate customers than rivals like Swedbank which will report on Thursday.

For all Swedish banks, a series central bank rate reductions over the last year has dampened interest income. Meanwhile, the uncertainty surrounding President Donald Trump's proposed tariffs in the United States has clouded prospects for both clients and lenders.

SEB announced that its board has decided to launch a new quarterly buyback program of 2,5 billion crowns.

(source: Reuters)