Sweden’s biggest bank is suddenly without a chief executive, as Johan Torgeby decided to step down from SEB AB with immediate effect, citing personal and family-related reasons.
Torgeby will leave as president and CEO on Oct. 6, when he will also exit the board, capping an almost decade-long tenure at the helm, the Stockholm-based lender said in a statement Tuesday. SEB shares slid as much as 2% on the news.
While speculation about Torgeby’s future had been mounting, the abrupt timing of his departure came as a surprise, DNB Carnegie analyst Nicolas McBeath said in a note to clients. It contrasts with SEB’s practice of communicating major changes in an orderly way, he said.
During his era as CEO, Torgeby steered SEB through the Covid-19 pandemic, a surge in inflation and interest rates, and growing geopolitical uncertainty. The bank’s profitability strengthened.
“While we do not know for sure, we trust the company’s statement that personal reasons are indeed the true reasons and that the resignation is voluntary,” McBeath said. “In particular, the press release’s reference to ‘family-related reasons’ is quite explicit and unlikely to have been included if this were a cover for something.”
Torgeby rose through SEB’s corporate-banking operations before becoming co-head of its Merchant Banking division. He joined the bank in 2009 and helped reinforce SEB’s position as the leading corporate bank in Sweden during his tenure as CEO. Torgeby also increased investment in technology and pushed to expand areas including wealth and asset management.
Under his term, return on equity rose to 13.8% last year from 11.5% in 2017, with an interim peak at 17.9%.
The lender said it will begin the recruitment for a permanent successor, having on Tuesday appointed Deputy President and CEO Jonas Ahlström as acting CEO, subject to regulatory approvals. Ahlström has worked at SEB since 2005 and has been a member of its group executive committee since 2020.
Citi analyst Shrey Srivastava similarly said in a note to clients that Torgeby’s immediate departure came as somewhat of a surprise to investors. Torgeby was seen as an effective communicator and a leader in technology among Nordic banks, while Ahlström has long been viewed as a continuity candidate, he said.
In addition to Ahlström, CEO candidates include Chief Financial Officer Christoffer Malmer and corporate and investment banking head, John Turesson, McBeath said.
SEB has longstanding ties to Sweden’s Wallenberg family, dating back to the bank’s founding by André Oscar Wallenberg in 1856. Investor AB, the investment company controlled by the family’s foundations, is SEB’s largest shareholder, with a 22% stake. Marcus Wallenberg is chairman of SEB and has worked closely with Torgeby during his tenure as CEO.
“In a time of significant change, the bank has, under his leadership, continued to strengthen its position and create long-term value for customers, shareholders and society at large,” the chairman said, citing Torgeby’s “notable contributions” to the bank.