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Sweden's Financial Supervisory Authority has fined SBB SEK 80 million, or USD 8.9 million, for violations of accounting rules in its 2021 consolidated financial statements. The regulator found that certain properties were not valued correctly and that two acquisitions were improperly accounted for, resulting in earnings being overstated by SEK 3.6 billion. SBB said it is reviewing the decision and considering an appeal. The action adds to existing pressures on the real estate group, whose shares declined following the announcement.
Sweden's financial watchdog has imposed a penalty of SEK 80 million, equivalent to USD 8.9 million, on real estate company Samh llsbyggnadsbolaget i Norden (SBB) for breaches of accounting regulations related to the preparation of its consolidated financial statements. Advertisement
According to the Financial Supervisory Authority, SBB's financial report for 2021 did not comply with applicable accounting standards. The regulator found that certain properties were not reported at fair value and that two acquisitions were incorrectly accounted for, leading to material inaccuracies in the group's financial disclosures.
SBB stated that it is currently reviewing the regulator's decision and is assessing whether to challenge the ruling through an appeal process.
The enforcement action comes at a difficult time for SBB, which owns assets including hospitals and care homes. The company is among several European real estate groups that have faced mounting pressure in recent years due to rising interest rates, tighter financing conditions, and broader economic challenges, with Sweden being one of the more affected markets.
The regulator noted that because of the accounting errors, SBB's reported earnings for the year were overstated by SEK 3.6 billion, and the group's financial position as presented to the market did not accurately reflect its actual standing. Following the announcement, SBB's shares fell 2.4 percent during early trading hours.
Commenting on the matter, FI Director General Johan Almenberg said that it is essential for consolidated accounts to present a true and fair view, warning that failures in this area can undermine confidence in both equity and bond markets.
Source Reuters
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