The Q3 EPS of SEK 2.2 was slightly above our estimates and SEB continued the solid momentum on pre-provision profit. With loan losses trending down this should translate into improved ROE as well, especially if SEB can distribute some of the current SEK 46bn capital buffer it has over its capital requirements (SEK 25bn if we assume a full 2.5% CCyB). Our estimates are lifted ~2% and SEB now trades at a P/E '21e of 9.5x which still looks attractive. We reiterate our Buy rec.
