Skandinaviska Enskilda Banken AB (publ)

Key performance (headline results): - Net interest income (NII): +3% QoQ and +2% vs prior year (driven by stabilizing/increasing rates + continued lending/deposit growth). - Net fee & commission income: +7% YoY to a record Q3 (seasonal moderation vs a very strong Q2). - Net financial income: down materially (~SEK -600m YoY) due to challenging rates/capital markets market conditions affecting FICC (valuation + lower client flow/market-making activity). - Net profit: ~SEK 7.5bn; EPS ~SEK 3.85; ROE 13% (14.4% adjusted for overfunded pension scheme). - Credit quality / ECL: ECL ~SEK 100m; overlays released ~SEK 60m; overall overlays stand at ~SEK 800m.

Cost / operating jaws (good news): - Operating expenses: SEK 8.2bn (moderate QoQ increase; mainly staff costs from equity-linked remuneration + some tech costs). - Strong cost discipline: SEB now expects to beat the 2026 cost target by ~SEK 500–600m (already including SEK 33m related to resolution of DFS historical matters). - Cost guidance remains on track: expectation to beat full-year cost target ~SEK 33.4bn.

Capital shock + dividend/buyback impact (bad/important): - Swedish FSA decision (IRB models): temporary capital requirement increase of ~SEK 10bn effective Dec 31 due to regulatory compliance deficiencies in model governance/technical standards (explicitly stated not driven by worsening credit risk level). - Implication: management buffer outlook tightening; SEB pauses its share buyback program (in light of loan growth + capital impact). - Year-end capital buffer expectation: ~150 bps management buffer (range target communicated: 100–300 bps).