SEB’s market RWAs drop 20% as FX positions recede

Fall in currency exposures below EU’s threshold in Q4 reversed Skr5.3bn RWA hit from previous quarter

Skandinaviska Enskilda Banken (SEB) slashed market risk charges by a fifth in the fourth quarter, helped in large part by its currency exposures falling below the de minimis level for risk-weighting.

Reversing most of the previous quarter’s spike, market risk-weighted assets (RWAs) dropped from a record Skr59 billion ($5.7 billion) to Skr47.1 billion in the last three months of 2022, leaving the figure up a modest 2% for the second half of the year.

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