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SEB unveils investment program of up to 2.5B kronor

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SEB unveils investment program of up to 2.5B kronor

Skandinaviska Enskilda Banken AB said Dec. 13 that it plans to invest up to 2.5 billion Swedish kronor back into the business over the next three years in a bid to position itself for longer-term growth.

The 2019-2021 business plan includes spending of between 600 million kronor and 900 million kronor on data, automation and sustainability, and between 200 million kronor and 300 million kronor on exploring new technology to meet customer needs. The bank will also plow between 400 million kronor and 600 million kronor into its corporate and investment banking and private banking businesses.

The pace of investments will be "gradually ramped up" over the coming three years, a company said.

Johan Torgeby, president and CEO, said during an analyst call following the announcement that SEB is "more inclined to deploy capital into the business" than to pay it out to shareholders in the form of dividends for the time being.

SEB plans to partner up with outside firms to take advantage of some of the opportunities that arise as the result of open banking, the company said.

The bank is also eager to grow its share of the mortgage market.

"We have been punching below our weight [in mortgages] for some time, and now we want to claim our space," Torgeby said.

As of Dec. 12, US$1 was equivalent to 9.09 Swedish kronor.