Summary of Palisade Bio Conference Call - March 31, 2026 Company Overview - **Company**: Palisade Bio (NasdaqCM:PALI) - **Focus**: Development of PALI-2108, a next-generation therapy for Crohn's disease targeting both inflammation and fibrosis Key Industry Insights - **Crohn's Disease**: A progressive inflammatory bowel disease characterized by relapsing/remitting symptoms, often leading to structural damage and complications requiring surgical intervention - **Current Treatment Landscape**: Existing therapies often fail to address fibrosis, a significant challenge in treating advanced Crohn's disease Core Findings from the Conference Call 1. **PALI-2108 Phase I-B Trial Results**: - Achieved safety and tolerability over two weeks of dosing in patients with fibrostenotic Crohn's disease [5][6] - Demonstrated once-daily dosing capability while maintaining necessary drug levels in tissue and plasma [6] - Positive movement in biomarkers such as fecal calprotectin and SES-CD scores, indicating potential biological effects [7][9] 2. **Clinical Efficacy**: - 40% of patients achieved endoscopic response and remission after two weeks [27] - Mean absolute reduction in SES-CD score of 3.8 points, representing a 47.5% improvement over baseline [27] - Results are favorable compared to established therapies, suggesting PALI-2108's potential in broader Crohn's populations [28] 3. **Strategic Developments**: - Completed $138 million financing, enabling further development and visibility in the gastroenterology community [10] - Strengthened clinical advisory board with experts in inflammatory bowel disease (IBD) [11][12] 4. **Regulatory Pathway**: - Focus on luminal Crohn's disease due to clearer regulatory pathways and larger patient population [36][37] - Future studies may include fibrostenotic Crohn's disease as regulatory paths are established [39] 5. **Safety Profile**: - No serious adverse events reported; PALI-2108 was well tolerated with no PDE4-related side effects [31] - Safety differentiates PALI-2108 from traditional PDE4 inhibitors, which often have significant side effects [31] Additional Insights - **Market Need**: There is a significant unmet need for effective oral therapies targeting both inflammation and fibrosis in Crohn's disease [14][15] - **Mechanism of Action**: PALI-2108 is a gut-activated prodrug with dual anti-inflammatory and anti-fibrotic properties, potentially improving patient outcomes [20][23] - **Future Directions**: Plans to assess efficacy in moderate to severe Crohn's disease and explore antifibrotic effects earlier in the disease course [32] Conclusion - The data presented during the call indicates promising early results for PALI-2108 in treating fibrostenotic Crohn's disease, with a focus on safety, efficacy, and a clear regulatory pathway for future studies. The company is positioned to address significant unmet needs in the IBD market, with ongoing efforts to expand its clinical trials and enhance its visibility within the healthcare community.

Nordea Bank Q1 2026 Pre-Close Call Summary Company Overview - **Company**: Nordea Bank (OTCPK:NBNK.F) - **Event**: Q1 2026 pre-close call - **Date**: March 31, 2026 Key Industry and Company Insights Macro Environment - Significant volatility in financial markets due to geopolitical developments in the Middle East, impacting interest rates and market making activities [2][3] - Recent sharp moves in interest rates have been against consensus positioning, leading to potential losses in trading [2] Financial Performance Indicators - **Interest Rates**: No changes in Nordic policy rates; three-month STIBOR increased by 9 basis points quarter-on-quarter [4] - **Equity Markets**: US dollar-denominated MSCI World Index increased by 2%, while OMX Nordic 40 rose by 8% [4] - **Fixed Income**: Bloomberg Global Aggregate Bond Index increased by 0.7% [4] - **Foreign Exchange (FX)**: SEK and NOK appreciated against the euro, with SEK up 2% and NOK up 3% quarter-on-quarter, providing a tailwind for euro-denominated income [5] Net Interest Income (NII) - Q4 NII reported at EUR 1,765 million; Q1 NII expected to decline due to lower day count, estimated impact of EUR 40 million [5] - Lending volumes grew strongly, contributing EUR 11 million to NII, but lending margin pressure resulted in a negative impact of EUR 31 million [6] - NII is expected to grow in line with volume and margin developments in the medium term [7] Net Fee and Commission Income - Q4 net fee and commission income was EUR 853 million, with a decline expected in Q1 due to lower day count and absence of annual fees [9] - Slightly positive market performance effect on average AUM despite declines in relevant indices in March [9] Net Fair Value - Expected to be within the normal quarterly range of EUR 200 million to EUR 250 million for Q1, likely around the midpoint due to market volatility [11][12] Costs and Restructuring - Restructuring costs of EUR 190 million to be booked in Q1, with gradual benefits expected in 2026 and 2027 [12][49] - Full-year resolution fee expected to be higher than average due to booking in Q1 [12] Credit Quality - Strong credit quality with loan loss level at 7 basis points in Q4; no significant direct impacts expected from current geopolitical situations [13] Capital and Dividends - CET1 ratio at 15.7% with a requirement of 13.8% [13] - Dividend policy to pay out 60%-70% of annual profits; semi-annual dividends approved by shareholders [14] Changes in Reporting - AUM reporting will be adjusted to better align with savings fees development, breaking down into investment product AUM and other assets [15][16] Additional Insights - The geopolitical situation may affect lending volumes and margins, with expectations of continued pressure on funding costs [6][7] - The impact of the recent increase in STIBOR on funding costs is expected to be minimal [69] - The weighting of IFRS9 scenarios is 20% adverse, 60% baseline, and 20% upside [69] This summary encapsulates the key points discussed during the Nordea Bank Q1 2026 pre-close call, highlighting the macroeconomic environment, financial performance, and strategic outlook for the company.

Swedbank Q1 2026 Pre-Close Call Summary Company Overview - **Company**: Swedbank (OTCPK:SWDB.F) - **Date of Call**: March 31, 2026 Key Points Industry and Market Trends - The quarter had 2 fewer days compared to the previous quarter, negatively impacting Net Interest Income (NII) by approximately SEK 50 million per day and Net Commission Income (NCI) by SEK 20 million per day [2] - The Swedish krona depreciated against the U.S. dollar and euro by the end of March, but appreciated on average during the quarter compared to the previous quarter [2] - The Riksbank policy rate remained unchanged at 1.75%, while the ECB's policy rate was also unchanged at 2% [2] Financial Performance - The 3-month STIBOR increased by 9 basis points on average compared to the fourth quarter, with a sharp rise of 22 basis points at the end of the quarter [3] - Mortgage list prices in Sweden were adjusted, with a decrease of 15-20 basis points on February 17 and an increase of 30-40 basis points on March 24 [4] - Actual mortgage prices fell by 2 basis points on three-month fixings in the first two months of the quarter, compared to a decrease of 11 basis points in the previous quarter [4] Market Share and Volumes - Swedbank's mortgage volumes increased by SEK 2 billion or 13.4% of the total market increase in the first two months of the quarter [5] - Corporate lending volumes grew by SEK 3.3 billion, representing 13.4% of total market growth, with a market share of 15% at the end of February [6] - Retail deposits grew by SEK 13 billion, with Swedbank accounting for SEK 6.2 billion, or 46.1% of market growth [6] Baltic Region Insights - Total lending in the Baltics increased by 13.7% year-on-year in January, with private lending up by 12.7% and corporate lending by 14.8% [6] - Total deposits in the Baltics increased by 8.3% year-on-year, with private deposits growing by 9.3% [7] Commission Income and Expenses - The Swedish stock market increased by 9.6% up to March 27, impacting asset management fees [9] - The Swedish mutual fund market had net inflows of approximately SEK 15 billion in January and February, down from SEK 80 billion in the fourth quarter [9] - Commission expenses are impacted by large investments in transforming the Swedish payment system, with a cost guidance of around SEK 27.5 billion for 2026 [10][11] Tax and Regulatory Changes - The bank tax in Sweden was adjusted, with a base deduction introduced in 2026, raising the tax rate to 7 basis points [11] - Latvia's NII tax is in its second year, while Lithuania abolished its NII tax for 2026 [12] Future Outlook - The integration of Entercard and the sale of its consumer finance portfolio will be updated in the Q1 report [14][18] - The impact of higher commission expenses due to payment system reforms is expected to continue throughout 2026 [26] Additional Notes - The call emphasized the importance of monitoring macroeconomic indicators and their effects on Swedbank's financial performance [1] - The next Q1 report is scheduled for release on April 29, 2026 [40]

KDDI Update Briefing Summary Company Overview - **Company**: KDDI Corporation - **Date of Briefing**: March 31, 2026 - **Context**: The briefing was held to discuss the findings of a Special Investigation Committee regarding fictitious circular transactions at KDDI's subsidiaries, gPlan and Big Globe. Key Findings from the Special Investigation Committee - **Investigation Purpose**: The investigation aimed to uncover the nature of fictitious circular transactions, assess their impact on KDDI's financial statements, identify similar incidents, analyze root causes, and recommend prevention measures [5][6][32]. - **Investigation Duration**: Conducted from January 14, 2026, to March 31, 2026, involving document reviews, digital forensics, and interviews with 80 individuals [6][7]. - **Fictitious Transactions**: Approximately 99.7% of gPlan and Big Globe's advertising agency business was recorded through fictitious circular transactions, which were not part of an organized scheme by KDDI [10][11]. - **Transaction Timeline**: Fictitious transactions occurred from August 2018 to December 2025, initiated by key individuals (Person A and Person B) to cover business losses and meet sales targets [9][13][50]. - **Financial Impact**: Cumulative revenue reversal of ¥246.1 billion and operating profit reduction of ¥49.9 billion due to these transactions [52][53]. Root Causes Identified - **Lack of Expertise**: A company-wide lack of expertise in the advertising agency business and insufficient risk awareness were significant contributors to the misconduct [32][39]. - **Concentration of Authority**: Authority was overly concentrated in specific individuals, leading to insufficient checks and balances in transaction processes [32][57]. - **Inadequate Internal Controls**: Insufficient verification of transactions and a lack of effective internal audits allowed the misconduct to continue undetected [41][62]. Recommendations for Prevention - **Strengthening Governance**: KDDI plans to enhance group governance and risk management systems, focusing on eliminating reliance on specific individuals and improving separation of duties [36][66]. - **Improving Credit Management**: Recommendations include reviewing management standards for business partners and enhancing credit evaluation processes [59][66]. - **Revising Internal Audit Practices**: Strengthening internal audit methodologies to ensure effective oversight of subsidiaries and their operations [41][66]. Future Initiatives by KDDI - **Withdrawal from Advertising Business**: KDDI will withdraw from the advertising agency business due to the lack of substance in operations, as 99.7% of the business was tied to fictitious transactions [90]. - **Personnel Changes**: Key executives involved in the misconduct have resigned, and disciplinary actions have been taken against two former employees [54]. - **Legal Actions**: KDDI is considering civil lawsuits and potential criminal charges against those involved in the fictitious transactions [78][79]. Financial Outlook - **Revised Financial Forecast**: KDDI revised its revenue forecast downward by ¥270 billion and operating profit by ¥88 billion for the fiscal year ending March 2026, primarily due to the impact of the fictitious transactions [73][74]. - **Impact on Cash Flow**: Despite the financial adjustments, KDDI asserts that there will be no impact on its cash flow generation capability [80]. Conclusion - KDDI acknowledges the severity of the findings and is committed to implementing effective measures to prevent recurrence of such misconduct, aiming to restore stakeholder trust and strengthen corporate governance [70][80].

Astellas Pharma R&D Day Summary Company Overview - **Company**: Astellas Pharma - **Event**: R&D Day - **Key Speakers**: Naoki Okamura (CEO), Tadaaki Taniguchi (CRDO) Core Industry Focus - **Primary Focus Areas**: 1. Immuno-oncology 2. Targeted protein degradation 3. Blindness and regeneration 4. Genetic regulation Key Points and Arguments Vision and Strategy - Astellas aims to transform innovative science into value for patients, focusing on outcomes that matter to patients and the costs to the healthcare system [3][4] - The **Focus Area Approach** is employed to address high unmet medical needs, linking biology, modality, and technology [3][4] R&D Progress - Achieved proof of concept (POC) for three assets: ASP 2138, ASP 7317, and zitidagresib (ASP 3082) [5] - Over the past five years, Astellas accelerated its pipeline, achieving 12 phase II first subject doses and initiating one new phase III trial [5] - Terminated 21 clinical stage programs to reallocate resources to higher value assets, improving overall pipeline quality [6] Financial and Operational Strategy - Focus on maximizing sales of strategic brands to mitigate revenue decline from XTANDI's loss of exclusivity [8] - Implementing a new end-to-end operational model to enhance productivity and integrate research, development, commercialization, and lifecycle management [9] Pipeline Development - Building a robust pipeline with strategic brands, flagship programs, and follow-on programs [9][10] - Examples include the prostate cancer franchise and the acquisition of IZERVAY for geographic atrophy in age-related macular degeneration [10] Specific Program Updates - **Setidegrasib**: A targeted protein degrader for solid tumors with KRAS G12D mutations, showing promising results in pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC) [24][25] - ORR of 58.3% in PDAC and 37.5% in NSCLC with ongoing phase III trials [26][28] - **ASP2138**: A bispecific antibody targeting claudin 18.2 in gastric cancer, preparing for phase III trials [30] - **ASP7317**: Achieved POC for severe visual impairment in geographic atrophy, moving towards phase III [34] Future Outlook - Astellas plans to transform its R&D organization and governance structure to enhance productivity from 2024 to 2026, aiming for significant improvements in R&D productivity by 2030 to 2034 [15][36] - Continuous investment in cutting-edge technologies, including AI and robotics, to accelerate drug discovery and clinical trials [20][21] Additional Important Insights - Astellas emphasizes the importance of portfolio discipline, making strategic decisions to discontinue low-value projects [6][45] - The company is actively collaborating with external partners and academia to enhance its R&D capabilities [22] - Astellas aims to maintain a 30% operating margin sustainably while investing in R&D and managing expenses effectively [53][58] This summary encapsulates the key points discussed during Astellas Pharma's R&D Day, highlighting the company's strategic focus, R&D progress, and future outlook in the pharmaceutical industry.

Summary of Biomea Fusion Fireside Chat (March 30, 2026) Company Overview - **Company**: Biomea Fusion (NasdaqGS: BMEA) - **Lead Program**: Icovamenib, a novel menin inhibitor aimed at treating Type 1 and Type 2 diabetes, with potential to preserve and enhance pancreatic beta cell function [2][12] Core Industry Insights - **Industry Context**: The diabetes treatment landscape has seen limited innovation, particularly in the context of menin inhibitors, which have primarily been associated with oncology [1][4] - **Market Opportunity**: Biomea has a relatively small market capitalization but significant potential for growth due to the large unmet need in diabetes treatment [2] Key Mechanism of Action - **Mechanism**: Icovamenib targets menin, a scaffold protein that regulates pancreatic islet growth. Down-regulating menin can restore beta cell function, leading to increased insulin production and improved glucose control [12][14] - **Research Basis**: Initial studies from Stanford University indicated that menin plays a crucial role in beta cell lifecycle, and its inhibition could lead to beneficial effects in diabetes [12][40] Clinical Development and Results - **Clinical Trials**: Ongoing studies include COVALENT-111 (Type 2 diabetes) and COVALENT-112 (Type 1 diabetes), with plans for COVALENT-211 and COVALENT-212 [116][117] - **Efficacy**: In early trials, a 1.5% reduction in A1C was observed after 12 weeks of dosing, indicating significant glucose control [50][49] - **Durability of Effect**: The sustained effect of icovamenib is hypothesized to be due to the maturation of newly created beta cells, which continue to function even after treatment cessation [57][66] Synergistic Effects - **Combination Therapy**: Icovamenib shows synergistic effects with GLP-1 receptor agonists, enhancing insulin production in patients who previously did not respond to GLP-1 therapy [74][75] - **Patient Selection**: Targeting patients who are overweight or obese and have failed GLP-1 therapy could optimize treatment outcomes [80][82] Market Positioning - **Competitive Landscape**: Icovamenib aims to fill a gap between existing diabetes treatments and insulin dependency, potentially preventing patients from progressing to more severe treatment options [96][109] - **Regulatory Considerations**: The company anticipates that demonstrating efficacy in patients who would otherwise require insulin will be crucial for FDA approval [113][114] Future Directions - **Upcoming Data**: Results from ongoing trials are expected to be released by the end of the year, with a focus on refining patient selection criteria based on BMI and diabetes subtype [204][205] - **Type 1 Diabetes Research**: A proof-of-concept study is underway to assess icovamenib's effects in Type 1 diabetes patients, exploring its potential even in patients with minimal beta cell function [220][221] Additional Insights - **Patient Demographics**: The impact of gender and BMI on treatment response is being studied, with preliminary findings suggesting that higher BMI may correlate with reduced efficacy of icovamenib [123][124] - **Dosing Considerations**: The company has established dosing protocols to minimize variability and enhance drug exposure in clinical settings [187][188] This summary encapsulates the key points discussed during the fireside chat, highlighting Biomea Fusion's innovative approach to diabetes treatment through icovamenib and its potential impact on the market.

Summary of Block (NYSE:SQ) Update / Briefing March 30, 2026 Company Overview - **Company**: Block (NYSE:SQ) - **Focus**: Development of AI tools and applications, particularly through a product called Goose Key Points and Arguments AI Development and Transition - **Background of AI Development**: The speaker transitioned from growth machine learning and lending to full-time AI development due to the potential of new technology and its rapid performance improvements [5][6] - **Motivation**: The speaker found motivation in applying state-of-the-art models to practical tasks, moving beyond mere conversation to actionable outcomes [6][8] Goose and AI Tools - **Goose**: Described as an "agent harness," Goose connects foundational language models (LLMs) to systems that allow them to take actions based on user input [31][34] - **Productivity Tools**: Goose is used across the company for various operational tasks, including document management and email summarization, making it a general-purpose tool [34] - **User Adoption**: Over 10,000 employees have used Goose internally, allowing for iterative improvements based on user feedback [55] AI Tech Stack - **Foundational Models**: The foundational models take text input and produce text output, with advancements allowing for more complex interactions, such as code generation [13][14] - **Tool Calling**: The concept of "tool calling" allows agents to execute code and interact with various tools, enhancing their functionality [14][49] Recent Developments in AI - **Model Reliability**: A significant shift occurred around December 2023, where models became more reliable, enabling the development of systems that can execute multiple tasks in parallel [82][84] - **Sub-Agents**: The introduction of sub-agents allows for a parent agent to manage multiple tasks simultaneously, increasing efficiency and reducing the need for micromanagement [85][86] Builder Bot - **Internal Automation**: Builder Bot is designed for internal use, integrating various capabilities to assist employees in their tasks, such as incident management and operational support [116][117] - **Operational Efficiency**: Builder Bot can triage issues and provide solutions before human intervention, significantly reducing operational load [117] Open Source and Community Engagement - **Open Source Strategy**: Goose was open-sourced to contribute to the community and improve the tool through external feedback, reflecting Block's commitment to open-source technology [56][57] Cultural and Organizational Insights - **Innovation Culture**: Block encourages a culture of innovation, allowing employees to explore promising technologies and develop them into viable products [52][53] - **Feedback Loop**: The internal use of Goose has created a feedback loop that informs both the open-source version and internal applications, enhancing overall product quality [55] Additional Important Content - **Naming of Goose**: The name "Goose" is a reference to the movie Top Gun, chosen to reflect the tool's role as a co-pilot in assisting users [58] - **Role in AI Community**: Block is actively involved in the AI development community, contributing to projects like MCP and participating in the Agentic AI Foundation [66][70] This summary encapsulates the key points discussed in the Block update, highlighting the company's focus on AI development, the functionality of Goose, and the cultural aspects that drive innovation within the organization.

Summary of Biomea Fusion Fireside Chat - March 30, 2026 Company Overview - **Company**: Biomea Fusion (NasdaqGS: BMEA) - **Event**: Fireside chat as part of the 2026 J.P. Morgan Biotech Conference Key Points Discussed 1. BMF-650 Development - **Phase I Data**: Expected in Q2 2026 for BMF-650, an oral GLP-1 receptor agonist built on the orforglipron scaffold [2][3] - **Molecule Attributes**: Aims for better pharmacokinetics (PK) and tolerability compared to orforglipron, with a focus on high oral bioavailability and reduced inter-patient variability [8][9] - **Trial Design**: - Single Ascending Dose (SAD) phase with 5 cohorts (10 mg to 200 mg) to establish safety and PK [12] - Multiple Ascending Dose (MAD) phase ongoing with 4 cohorts of 10 individuals each, tracking weight loss over a 6-week period [13][14] - **Weight Loss Expectations**: Aiming for significant weight loss data, with comparisons to orforglipron's reported results of 2 kg loss in placebo and 5 kg in the highest dose group [16][17] 2. Competitive Landscape - **Reference Points**: The weight loss benchmark of 5 kg or 5% is critical, with emphasis on the speed of titration and gastrointestinal (GI) side effects [18][21] - **Patient Experience**: Faster titration may lead to better patient satisfaction and adherence [19] 3. Icovamenib Program Insights - **Mechanism of Action**: Icovamenib targets the underlying dysfunction in beta cells, aiming to prevent insulin dependency in diabetes patients [28][29] - **Study Design**: Ongoing studies with endpoints at 26 weeks (primary) and 52 weeks (secondary) to assess long-term benefits [30] - **Type 1 Diabetes Focus**: COVALENT-112 study to provide insights on patients diagnosed 0-3 years and 3-15 years, with a total of 20 patients [35][37] 4. Enrollment and Milestones - **COVALENT-211 and COVALENT-212**: Enrollment expected to start in Q2 2026, with data readouts anticipated by year-end [40][41] - **Win Scenarios**: A reduction in HbA1c of 0.5% or more is considered a success for these studies [45][52] 5. Financial Position - **Cash Position**: $56 million available, expected to last into 2027, with a focus on clinical development and key programs [59][60] - **Operational Efficiency**: Company has streamlined operations to focus on clinical development, reducing workforce to 40 people [63] 6. Future Considerations - **Potential for Future Funding**: Plans to raise funds depending on the success of ongoing trials and data readouts [64] Additional Insights - **Market Context**: The need for new agents in diabetes care is emphasized, as many current treatments lead to insulin dependency [28][29] - **Long-term Goals**: Focus on sustainable weight loss and maintaining weight post-treatment, rather than just short-term results [25][26] This summary encapsulates the critical discussions and insights from the Biomea Fusion fireside chat, highlighting the company's strategic direction and upcoming milestones in drug development.

Connect Biopharma Conference Call Summary Company Overview - **Company**: Connect Biopharma (NasdaqGM:CNTB) - **Focus**: Development of Rademikibart, an IL-4 receptor alpha monoclonal antibody for asthma, COPD, and atopic dermatitis Key Updates on Rademikibart Clinical Development - **Rademikibart** is designed for treating acute exacerbations of asthma and COPD, with a focus on rapid onset of action and improved efficacy compared to existing treatments like dupilumab [4][25] - Preliminary results from an IV clinical pharmacology study show significant improvements in FEV1 (Forced Expiratory Volume in 1 second) within 15-30 minutes, with increases of 200-400 mL observed [20][24] - The drug demonstrates a faster onset of action, with significant improvements noted as early as 15 minutes post-administration [18][21] Mechanism of Action - Rademikibart shows a unique binding orientation and greater internalization compared to dupilumab, leading to a reduction in eosinophils, which is contrary to the increase seen with dupilumab [5][42] - The drug enhances the efficacy of beta-agonists, improving bronchodilation, which is not observed with other biologics [10][77] Safety Profile - The IV administration of Rademikibart has shown a clean safety profile with no significant adverse events reported in the small study [25][26] Market Opportunity - There are over 1 million emergency department visits for asthma and 1.3 million for COPD patients due to acute exacerbations, indicating a significant unmet need in the market [12] - Current biologics are not approved for acute exacerbations, presenting a unique opportunity for Rademikibart to fill this gap [25] Financial Outlook - Connect Biopharma has cash equivalents of $55 million, expected to cover operations into the second half of 2027 [44] - A worldwide peak sales forecast of approximately $5 billion for both acute and chronic indications in asthma and COPD has been projected [32] Upcoming Milestones - Results from two phase II acute asthma and COPD studies are anticipated mid-year [44] - A pending New Drug Application in China for atopic dermatitis is expected to be approved between mid-year and the end of the year [44] Atopic Dermatitis Data - In a study sponsored by Simcere Pharmaceutical, Rademikibart showed an 87.1% response rate at 52 weeks and a 96.6% response rate for EASI-75, indicating strong efficacy [35][36] - The drug has a significantly lower rate of conjunctivitis compared to dupilumab, enhancing its safety profile [37] Conclusion - Connect Biopharma is positioned to leverage the unique properties of Rademikibart to address significant unmet needs in the treatment of asthma, COPD, and atopic dermatitis, with promising clinical data and a strong market opportunity ahead [43][44]

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]