SEB’s lending to shipping companies shrank last year.
Its portfolio fell by 12% to SEK 50.9bn ($4.9bn) at the end of December from SEK 58bn at the end of 2022. Total corporate lending declined by 1%.
Shipping companies have been reluctant to increase bank borrowing, the general level of investment has been low and interest rates have risen.
The Swedish bank said in its fourth-quarter report: “Overall asset quality remained robust and return on equity was solid at 15.2%, in line with our long-term aspiration.”
Net profit for the fourth quarter was SEK 8.4bn compared with SEK 7.4bn for the same period in 2022.
Chief executive Johan Torgeby said: “We report a solid result with a return on equity that is in line with our long-term aspiration.
“After a year of exceptional macroeconomic circumstances, we are now starting to see a normalisation of our operating environment.”
SEB, which is controlled by the Swedish industrial family Wallenberg, proposed an ordinary dividend of SEK 8.50 per share and a special dividend of SEK 3, and decided on a new quarterly share buyback programme of SEK 1.75bn.
“Interest rates started to plateau towards the end of the year and the positive effect on our results experienced earlier in 2023 continued to abate,” Torgeby said.
The bank’s 2030 strategy remains intact, which includes an expansion of corporate and investment banking.
Another Swedish bank, Swedbank reported fourth-quarter results on Wednesday. Its loans to the shipping and offshore sectors fell to SEK 7bn from SEK 10bn in 2023.
