Higher profits than expected for SEB – but minus the interest rates weighed – Private Businesses

SEB’s net financial income was 766 million SEK (845), compared with analysts’ expectations that average stood at SEK 160 million.

SEB’s net interest income fell 6 percent in the second quarter to 4.632 billion SEK (4943) and reflected the effect of the negative repo rates, writes the bank in its interim report. SME Direkt consensus stood at a net interest income of 4.844 billion kronor.

The customer-driven net interest income decreased by 49 million compared with the first quarter. The effect of the low interest rates, partially offset by increased volumes and improved lending margins.

Net interest income from other activities declined by 265 million compared with the first quarter due to interest rate volatility and business mix. It also included an expense of 82 million which was attributable to nonrecurring item, SEB announced in May.

Net commission income amounted to 4.812 billion kronor, an increase of 14 percent compared to the second quarter of 2014 and 9 percent better than SMEs Direkt consensus. A big positive seasonally contributions from securities lending were included. In the low interest rates was implemented a large number of IPOs, of which SEB participated in eleven.

“Together, these two factors, partially offset by the effect of lower performance-related income, a part of the reasons for the increase in commission income compared to the first quarter of $ 538 million, “writes SEB.

Net financial income amounted to SEK 766 million (845), compared with analysts’ expectations that average stood at SEK 160 million. Excluding the impact of one-off item of 820 million, profit was 1,586 million, an increase of 26 percent compared to last year.