Analyst Note| Niklas Kammer, CFA |
No-moat SEB reported third-quarter operating profits of SEK 9,118, up 25% on a sequential basis. Operating income up 15% to SEK 16,551 million paired with just a 1% increase in operating expenses to SEK 6,201 million resulted in a respectable 14.9% return on equity in the quarter. Net expected credit losses increased to SEK 567 million from SEK 399 million a quarter ago. We maintain our fair value estimate of SEK 123 per share.