By Dominic Chopping
STOCKHOLM--Skandinaviska Enskilda Banken AB on Thursday posted a better-than expected third-quarter net profit as net interest income rose while costs remained flat.
The Sweden-based bank posted net profit of 4.77 billion Swedish kronor ($546.4 million) for the three months ended Sept. 30, unchanged from a year earlier and above the SEK4.6 billion forecast from analysts polled by FactSet.
Net interest income for the quarter rose 5.9% to SEK6.34 billion while expected credit losses in the quarter increased to SEK1.1 billion from SEK489 million a year prior. The majority of allowances taken were mainly related to the offshore portfolio, which includes rigs, accommodation rigs and platform support vessels.
"We continue to see limited effects from the pandemic on the asset quality and the guidance on net expected credit losses of around SEK6 billion for 2020 remains," Chief Executive Johan Torgeby said.
"We have a strong capital and liquidity position and the capital buffer above the common equity tier 1 regulatory requirement amounted to 580 basis points. Despite some light at the end of the tunnel, uncertainty still remains," he said.
The bank's common equity Tier 1 ratio--a key measure of financial strength--stood at 19.4% at the end of the quarter, up from 16.4% a year prior.
SEB said the board has assessed the current situation and confirms its previous decision to not propose a dividend during 2020.
Write to Dominic Chopping at email@example.com