By Dominic Chopping
Skandinaviska Enskilda Banken AB posted a forecast-beating third-quarter net profit on Wednesday amid solid growth in both corporate and mortgage lending and advisory services to large corporates and institutions.
“Despite a softening macroeconomic environment and a seasonal slowdown, clients remained active in the third quarter,” Chief Executive Johan Torgeby said.
Separately, the bank /zigman2/quotes/201173722/delayed SE:SEB.A -2.24% said it has appointed finance director Masih Yazdi as chief financial officer from Jan. 1. Nina Korfu-Pedersen, currently head of group finance, has been appointed head of business support and operations.
The Sweden-based bank posted net profit of 4.77 billion Swedish kronor ($495 million) for the three months ended Sept. 30 compared with SEK4.54 billion a year earlier, beating the SEK4.64 billion forecast from analysts polled by FactSet.
Net interest income rose to SEK5.98 billion from SEK5.32 billion.
Lending growth remained strong and SEB continued to grow its market share within corporate and mortgage lending, while margins on new sales remained stable, it said.
Margin pressure on insurance and pension services continued and the bank said cross-selling and process automation will therefore remain key for profitability and economies of scale to be maintained.
In the short term, the pipeline for lending and investment banking activity continues to look promising. However, SEB said it recognizes that the macroeconomic outlook has continued to weaken.
The bank’s common equity Tier 1 ratio--a key measure of financial strength--stood at 16.4% at the end of the quarter, down from 19.7%.