SWEDISH bank SEB posted fourth-quarter operating profits of 3.2bn crowns (£302m), down 28 per cent from 4.4bn crowns a year ago.
As a result the bank is to pay a lower-than-expected dividend for 2011, taking a cautious stance on payouts as the industry hoards capital in the face of tough new regulations.
Sweden aims to toughen capital rules faster than elsewhere in Europe, even though its lenders are already among the most well-capitalised in the region.
“It is a challenge to, on top of European regulation, adapt to an even stricter Swedish regulatory framework with earlier implementation than for our European peers,” SEB chief executive Annika Falkengren said.
Keeping an eye on capital, SEB set a 1.75 crown per share dividend, short of a 2.00 crown analyst forecast. The payout corresponds to 35 per cent of earnings per share, also lower than its policy to pay out around 40 per cent over a business cycle.
