SEB's Q4 2026 Earnings Miss Expectations but Proposes Extra Dividend

Sweden's SEB bank reported a fourth-quarter profit that fell short of expectations but still proposed an extra dividend to shareholders, signaling confidence despite challenging financial conditions. The bank’s profit before items affecting comparability dropped by 8% to 9.2 billion kronor compared to the same quarter last year, with interest income declining from 11.1 billion kronor to 10.1 billion kronor. Credit loss provisions also edged up slightly, from 377 million kronor to 387 million kronor.

Despite the earnings miss, SEB’s board proposed a regular dividend of 8.50 kronor per share alongside an additional extra dividend of 2.50 kronor per share, together amounting to nearly 23 billion kronor in payouts to shareholders. This total dividend package was slightly below last year's extra dividend of 3 kronor per share but exceeded some analyst expectations, which averaged to a total dividend of 9.27 kronor per share. Alongside dividends, SEB also approved a new share buyback program worth 1.25 billion kronor, scheduled to run until late March 2026.

CEO Johan Torgeby highlighted that the bank experienced a stable fourth quarter characterized by rising customer activity, strong financial markets, and lower interest rates. He expressed cautious optimism, anticipating that loan growth, which has recently faced pressure, will soon turn positive despite the current challenges.

SEB's results contrast with broader banking sector dynamics in Sweden, as upcoming earnings and dividend announcements from competitors Nordea, Swedbank, and Handelsbanken are highly anticipated. SEB's maintenance of shareholder returns through dividends and buybacks despite a profit decline illustrates a commitment to delivering value in a shifting economic landscape.

In summary, while SEB's profitability fell short of market expectations in Q4 2026 due to declining interest income and slightly higher credit loss provisions, the bank remains proactive in rewarding shareholders, proposing a substantial payout and a strategic buyback program, supported by CEO Torgeby's positive outlook on future loan growth.