Skandinaviska Enskilda Banken (SEB) reported a fourth-quarter profit miss, disappointing analysts with earnings 6% below expectations. The Swedish bank cited weaker revenues, with net interest income down 3% quarter-over-quarter. However, commission and fees saw a 5% year-over-year increase, indicating some areas of growth amidst the challenges.

Despite the profit shortfall, SEB announced a full-year 2025 dividend of SEK 11 per share, exceeding forecasts. This includes a special dividend, signaling confidence in its financial position. Additionally, the bank's CET1 capital ratio remained strong at 17.7%, well above requirements, providing a solid buffer for future operations.

SEB also revealed a new share buyback program worth SEK 1.25 billion, scheduled from January to March 2026. This move further suggests the bank's commitment to returning value to shareholders. Looking ahead, SEB set a 2026 cost target, remaining in line with current analyst expectations, showing a focus on financial discipline.

This mixed bag of results reflects the ongoing challenges facing European banks, including pressure on net interest margins and the economic climate. The dividend increase and buyback are positive signals, however, the profit miss could pressure the stock price in the near term. Investors will be watching how SEB navigates these headwinds.