SEB Q1 2026 Pre-Close Call Summary Company Overview - **Company**: SEB (OTCPK:SVKE.F) - **Date of Call**: March 30, 2026 - **Speaker**: Pawel Wyszynski, Investor Relations Team Key Points Financial Reporting Changes - SEB has restated segment information for 2024 and 2025 due to the transfer of Mid Corporate clients from Business & Retail Banking to Corporate & Investment Banking [1] - Changes in income statement for 2025 related to net financial income (NFI) and net interest income (NII) to enhance risk management [1][2] - Restatements do not impact SEB's net profit or equity for the years mentioned [2] Interest Rates and Lending - Average three-month STIBOR increased by 8 basis points quarter-to-date as of March 23, 2026, compared to Q4 2025 [2] - Average three-month Euribor rates remained stable, affecting Baltic operations primarily on the deposit side [3] - A stronger SEK leads to lower income and costs, while a weaker SEK has the opposite effect [3] Profit and Loss Insights - Lending and deposit growth observed in Sweden and the Baltics [4] - NII is expected to be impacted by a 2-day lower count and increased deposit insurance costs, totaling a headwind of approximately SEK 250 million compared to Q4 2025 [6] - Net fee and commission income is anticipated to be significantly lower in Q1 2026 compared to Q1 2025, with a notable decline in corporate travel affecting card business [8][9] Financial Performance Expectations - NFI is expected to be at the lower end of the historical average due to lower customer activity and restatements [10] - Total expenses for 2026 are targeted at SEK 33.4 billion ± 250 million [11] - Expected credit losses may see negative effects under IFRS 9 due to economic conditions [11][28] Capital and Risk Exposure - SEB's share buyback program of SEK 1.25 billion ended recently [12] - Risk exposure amount (REA) is influenced by FX movements and is expected to increase by SEK 50 billion over Q1 and Q2 2026 due to lending volume growth [12][13] Market and Economic Context - The economic environment is expected to create some bumps in credit losses, with macro parameters being updated accordingly [28] - Corporate lending appears strong, while household lending remains soft, as indicated by Statistics Sweden data [36] Additional Insights - SEB has a hiring freeze in place, and headcount is expected to remain flat to down [15] - The bank's dependency on specific repricing dates may delay the recognition of higher short-term rates in Q1 [20][24] - There is a significant spread between three-month STIBOR and the Riksbank policy rate, with most large and mid corporate lending linked to reference rates [42] Conclusion - SEB is navigating a complex financial landscape with adjustments in reporting, interest rate sensitivity, and economic challenges. The upcoming Q1 2026 interim report is scheduled for April 29, 2026, which will provide further insights into the company's performance and outlook [13]

Core Insights - Urbo Bankas reported a net profit of EUR 5.5 million in 2025, which is 1.3 times lower than the EUR 7.4 million profit in 2024 [3] - The bank's total deposit portfolio increased by over 17% to EUR 655 million, while the loan portfolio grew by 31% to EUR 545 million [2][3] - Total assets reached EUR 740 million, a 17% increase from EUR 635 million the previous year [4] Financial Performance - Net interest income rose by 4% to EUR 23.9 million, despite a contraction in market interest margins [5] - The net result from foreign currency operations decreased by EUR 0.5 million to EUR 1.9 million, and net fee and commission income fell by EUR 0.7 million to EUR 2.9 million [6] - Shareholders' equity increased by 6% from EUR 64 million to EUR 68 million [4] Market Outlook - The CEO anticipates continued strong growth in 2026, driven by demand from small and medium-sized enterprises and growth in consumer and housing loans [7] - The Bank of Lithuania forecasts a GDP growth of 3.2% for the year, with rising average wages and declining inflation expected to support household consumption [8] - The bank employed 281 staff and operated 25 branches by the end of December 2025 [9]