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SEB — Audit Report / Information 2007
Feb 7, 2008
2966_10-k_2008-02-07_33e776d3-ce86-420c-8a6b-0e9134e13d3d.pdf
Audit Report / Information
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Annual Accounts 2007
STOCKHOLM 7 FEBRUARY 2008
SEB 2007 – operating profit SEK 17.0bn (15.6)
- Operating profit for 2007 increased by 9 per cent, to SEK 17,018m. Net profit rose by 8 per cent, to SEK 13,642m. Operating income increased by 4 per cent. Operating expenses rose by 3 per cent.
- Business volumes were high. Loans to the public increased by SEK 116bn and deposits from the public by SEK 106bn. Net inflows of Assets under Management amounted to SEK 57bn.
- Dislocations in the credit markets in the second half of the year led to lower valuations of fixed-income securities, which affected Net financial income negatively by SEK 1,769m.
- Collective provisioning for the Baltic credit exposures increased the net credit loss level to 0.11 (0.08)
- Return on equity was 19.3 per cent (20.8); earnings per share were SEK 19.97 (18.72).
- The Board of Directors proposes a dividend of SEK 6.50 (6.00).
SEB's fourth quarter – operating profit SEK 4.6bn (4.1)
• Operating profit for the last quarter of 2007 was SEK 4,581m, 11 per cent up from the corresponding quarter of 2006 and 23 per cent better than in the previous quarter. Business flows remained high; lending and deposits grew by 4 and 6 per cent, respectively. Mark-to-market losses on fixed-income securities portfolios was SEK 990m. The capital gain from the sales of SEB's Baltic real estate amounted to SEK 785m. Net profit amounted to SEK 3,757m. Return on equity was 20.2 per cent.
"High customer activity generated strong income growth also in these turbulent financial markets. The capital base has continued to be strengthened in order to further enhance SEB's credit worthiness and the execution of our growth strategy." Annika Falkengren, President and Chief Executive Officer
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President's comment
The past year was characterised by strong underlying performance in SEB's customer business but also by increasingly challenging conditions in the capital markets.
A turn in sentiment
2007 was the year when the prolonged period of abundant liquidity and historically low risk premiums came to an end. As is often the case with market corrections, few predicted the triggering event, the sharpness of the correction and the repercussions on the wider markets and the economy. During the first half of the year, a positive market sentiment spurred activity levels in all segments. The second half of the year followed a downward spiral of rising uncertainty, faltering confidence among market participants and widening credit spreads.
Financial turbulence affected investment portfolios
The credit spread widening also affected SEB. Mark-tomarket losses on fixed-income securities portfolios amounted to SEK 2,467m, of which SEK 1,769m impacted operating profit. These portfolios reflect SEB's size and position in wholesale banking and are held for investment, treasury and to a smaller extent client trading purposes. Portfolios are also held to secure liquidity for pledging with central banks.
A diversified business mix
Despite the turbulent financial market, continued high customer activity generated strong income growth reflecting SEB's diversified business mix.
Retail Banking, Wealth Management and Life all delivered record results and double digit profit growth driven by growth in both net interest income and commissions. In Retail Banking the controlled slowdown of credit growth in the Baltic countries continued, reflecting SEB's view on the macroeconomic imbalances – quarterly credit growth more than halved during the year.
Profit in Merchant Banking was weakened by the reduction in net financial income as a result of the mark-tomarket losses in the fixed-income portfolios. However, continued high customer activity yielded strong results in equity and transaction related areas.
Improved integration and higher customer satisfaction
SEB has taken several steps in the past year to create a more integrated bank in order to make all of SEB's services and product offerings more accessible to customers.
The new Group structure with customer-oriented divisions and common support functions have enabled SEB to leverage on its size and free-up resources which can be reapplied in customer interaction, product development and growth segments. It also supports global and more standardized processes. In 2007, efficiency measures have enabled realization of cost gains of SEK 546m. Thus, the plan to deliver SEK 1.5-2.0bn in cost-efficiency gains over a three-year period is on track.
SEB Way, our operational excellence programme, last year involved more than a third of all employees. It has come far also in developing management capabilities to drive continuous improvement.
During 2007 steps have been taken to a more consolidated IT-platform. Being a transaction and knowledge intensive industry, IT plays a crucial role in developing efficient processes that can cater for cuttingedge product technology.
We have edged closer to our goal to have the most satisfied customers within our selected segments. SEB was again top ranked in areas such as Nordic investment banking and custody as well as within retail banking in Estonia and Lithuania. The recognised global lead of our FX research and cash management products are important landmarks in the highly competitive international banking market. In Swedish retail banking, customer satisfaction improved. SEB was in terms of market share number one or two within unit-linked not only in Sweden and Denmark but also in all Baltic countries. Wealth Management confirmed its leading position towards institutional clients.
A solid capital base supports profitable growth
Concurrently with the past years' expansion with strong income growth in SEB, we have lowered costs, established a more efficient organisation and raised the quality of our product offering. The capital base has continued to be strengthened in order to further enhance SEB's credit worthiness and the execution of our growth strategy.
SEB has an attractive franchise with a multiple growth engine. Capturing this growth will depend on our ability to develop long-term customer relationships. Our customers demand the best – and they should. Only by delivering top quality services will SEB be the number one preferred supplier of banking services.
SEB is well prepared for more uncertain times ahead. The aim remains the same – to be the leading North European bank in terms of customer satisfaction and financial performance.
Annika Falkengren
The Group
Fourth quarter isolated
Operating profit and net profit
Operating profit for the fourth quarter amounted to SEK $4,581$ m $(4,124)$ , an increase of 11 per cent compared with the last quarter of 2006 and up 23 per cent from the previous quarter. Net profit was SEK 3.757m (3.790).
Income
Total operating income amounted to SEK 10,035m, unchanged compared with the corresponding quarter of last year, but up by 6 per cent from the previous quarter.
Net interest income increased compared both with the fourth quarter of last year and with the previous quarter, mainly due to higher lending and deposit volumes during the quarter. Lending margins were lower, even though lending margins on new Swedish household mortgage lending improved. Deposit margins improved.
Net fee and commission income was stable.
Net financial income was down by 63 per cent compared with the corresponding quarter of 2006 as an effect of the mark-to-market losses of SEK 990m on fixed-income securities due to the credit spread widening. Compared with the previous quarter, net financial income improved.
Net life insurance income grew in comparison with the fourth quarter of 2006 but was down somewhat from the previous quarter, due to volatile investment markets and short term interest rate trends.
Net other income of SEK 345m included no one-offs.
Expenses
Total operating expenses amounted to SEK 5,928m, an increase of 4 per cent compared with the fourth quarter of 2006 and by $6$ per cent from the previous quarter, mainly due to higher staff and IT costs. Net recruitments within Merchant Banking and Retail Banking in the Baltic countries increased the number of full-time equivalents with 354.
Credit losses
Net credit losses increased by SEK 124m compared with the previous quarter due to higher collective provisions following the growing lending volumes in the Baltic countries and continued macro-economic imbalances.
Tax expenses
Tax expenses were positively affected, mainly by the nontaxable gains of the sales of SEB's Baltic real estate. The tax rate was 18 per cent.
Capital gain from tangible assets
The capital gain from the sale of SEB's Baltic real estate amounted to SEK 785m.
The full year 2007
Operating profit and net profit
Operating profit for 2007 increased by 9 per cent, to SEK 17,018m (15,562). Net profit improved by 8 per cent, to SEK 13,642m (12,623).
Income
Total operating income increased by 4 per cent, to SEK 40,440m (38,747).
Net interest income was positively affected by volume growth and improved by 12 per cent, to SEK 15,998m (14,281). Deposits grew by 17 per cent, while lending to the public was 12 per cent higher than twelve months ago. Deposit margins improved following higher short-term rates and more than offset the effect from reduced lending margins in the Retail division. As a consequence, customerdriven net interest income grew by 16 per cent compared with 2006.
Net fee and commission income rose by 6 per cent, to SEK 17,051m (16,146). Both payment and securities commissions increased compared with last year.
Net financial income dropped by 20 per cent to SEK 3.239m (4.036), due to increased credit spreads resulting in lower valuations of fixed-income securities since the summer. The valuation loss recognised in income on these holdings amounted to SEK 1.769m.
Net life insurance income improved by 10 per cent, to SEK 2,933m (2,661), mainly due to increased unit-linked fund values. A complete description of Life's operations, including changes in surplus values, is found in "Additional information" on www.sebgroup.com.
Net other income dropped to SEK 1,219m (1,623) due to negative hedge accounting effects, partially offset by capital gains. One-off capital gains amounted to SEK 110m.
Expenses
Total operating expenses increased by 3 per cent, to SEK 23,194m (22,537). Excluding redundancy costs and performance-related remuneration, underlying expenses were up by 3 per cent compared with last year. SEK 281m was provisioned for redundancy costs. Costs related to the long-term incentive programmes amounted to SEK 71m.
Staff costs rose by 4 per cent, to SEK 14,921m (14,363). The average number of full time equivalents decreased by 166, to 19,506 (19,672). Net reductions of close to 300 employees during the year, primarily in Sweden and Germany, were balanced by net recruitments of some 500 persons, primarily in the Baltic business.
Other expenses were unchanged at SEK 6,919m (6,887) benefiting from increased scalability in the operations. IT costs increased due to investments in infrastructure and compliance with new EU regulation, e.g. SEPA and MiFID.
The incremental cost-income ratio for the Group in 2007 was 0.39 compared with last year. Excluding the lower valuations of the fixed-income securities it was 0.19.
The measures under the three-year programme to increase long-term cost-efficiency by SEK 1.5-2.0bn rendered gains of SEK 546m during its first year.
Credit losses
The Group's net credit losses, including changes in the value of assets taken over, amounted to SEK 1,016m (718), mainly due to higher collective provisioning following the continued macro-economic imbalances and growing lending volumes in the Baltic countries. The credit loss level was 0.11 per cent (0.08). Overall asset quality remained sound and stable.
Tax expenses
Total tax expenses amounted to SEK 3,376m (2,939). The total tax rate for 2007 was 19.8 per cent. The rate for 2008 is estimated at around 23 per cent.
Business volumes
Total assets continued to grow. The Group's total balance sheet of SEK 2,344bn as per 31 December represented an increase of 21 per cent since year-end 2006, due to growing lending and trading volumes. Currency effects contributed to the volume increase by SEK 36bn, despite a weaker USdollar.
SEB's total credit exposure increased to SEK 1,552bn (1,315 at year-end 2006). Lending to the corporate sector showed strong growth, particularly in the Nordic countries. Lending to credit institutions increased by SEK83bn to SEK 263bn. Lending to households grew by 16 per cent, primarily due to new mortgage lending volumes. The Baltic banks' lending growth decelerated significantly during the year.
As of 31 December 2007, assets under management amounted to SEK 1,370bn, up by SEK 108bn or 9 per cent compared with year-end 2006. Net inflow during the year was SEK 57bn (61), while the change in value was SEK 51bn (78). SEB remained the market leader within net sales of mutual funds in Sweden, gaining the majority of total net inflows during 2007. SEB is the number one Nordic custodian with assets of SEK 5,314bn (5,234) under custody. SEB was the second largest retail distributor of Swedish registered structured bonds with a 15 per cent market share of all issues.
Fixed-income securities portfolios
Within primarily Merchant Banking and Group Treasury, SEB holds total net positions in fixed-income securities of SEK 331bn (339) for investment, treasury and to a smaller extent client trading purposes. Holdings consist mainly of covered bonds, senior bank bonds and asset-backed securities
Primarily the investment portfolio, which resides in Merchant Banking, was negatively affected by the dislocations in the credit markets during the third and fourth quarters. The mark-to-market loss on this portfolio amounted to SEK 2,467m, of which SEK 1,769m affected Net financial income and SEK 698m was recorded as a
valuation loss in equity for Available-for-sale portfolios. SEK 1,056m of the mark-to-market loss refers to holdings in asset-backed securities and SEK 713m to other financial instruments, mainly bonds issued by financial institutions.
At prevailing credit market conditions, SEB views the risk of default on the holdings in the portfolios as unlikely.
The holdings of asset-backed securities amounted to SEK 71bn, a reduction from SEK 75bn in mid-2007. 99.3 per cent of these securities are AAA-rated; negative rating actions during 2007 only affected three out of 748 positions and the eligibility as collateral with central banks has been sustained. The average economic duration of the holdings is around four years. Some 60 per cent of the asset-backed exposures are related to the European markets and 40 per cent to the US market. Direct and indirect asset-backed securities exposures to the US subprime mortgage sector amounted to SEK 2.3bn, all of which have had their AAAratings affirmed during the fourth quarter.
Market risk
During 2007, the Group's Value at Risk in the trading operations averaged SEK 92m (96). This means that the Group on average, with 99 per cent probability, would not expect to lose more than this amount during a ten-day period. The VaR level was considerably higher during the second half of 2007 than during the first, as a consequence of the turmoil on the financial markets. The sensitivity in net interest income from a one per cent upward parallel shift in the yield curve was SEK +100m (-500). The change is a consequence of increased term funding to strengthen the balance sheet and a continued reduction of interest rate risk in the German treasury portfolio.
Capital position
SEB has during the year continued to strengthen its capital base, further supported by the issue of EUR 500m of core capital contribution securities in December. New capital adequacy regulation (Basel II) is in force since 1 February 2007. Adjusted for the supervisory transitional rules during the first Basel II years, SEB reported a core capital ratio of 8.6 per cent (8.2) and a total capital ratio of 11.0 per cent (11.5). Reporting according to the previous (Basel I) regulation would give capital ratios of 8.1 and 10.4 per cent, respectively. Risk-weighted assets (Basel I) have grown by 21 per cent or SEK 151bn. Currency effects contributed by SEK 15bn. Appendix 3 exposes details of capital adequacy.
Risks and uncertainties
SEB views its reputation and the credibility of the banking industry as key to maintaining long-term customer and counterparty relationships. The macro-economic environment is the major driver of risk to the Group's earnings and financial stability. In particular, it affects the asset quality and thereby the credit risk of the Group (details on the credit portfolio are described in Appendix 2). Also, there are financial risks mainly in the form of price risks (details on market risks are described in Appendix 4).
Credit and market risks as well as other risks in 2007 and risk management of all risks for the Group and the Parent Company are described in SEB's annual report for 2006 (see pp 38-44 and Note 44).
In addition to the risk disclosure in the annual report, increased economic imbalances and signs of overheating in Latvia and Estonia have accentuated during 2007. SEB monitors the situation closely and has implemented revised and stricter credit standards to mitigate risks, while maintaining a balanced growth of lending volumes.
Furthermore, the tight liquidity conditions in the credit and interbank markets prevailing since the summer have put stable funding and liquidity management in focus. In addition to the growing deposit base of the Group, activities during the year to maintain a strong balance sheet included the raising of core capital contribution securities, increased utilisation of covered bonds as a high-quality funding source and an increased match-funding requirement of net cash inflows and outflows of above six months compared to the normal three-month horizon.
The general credit spread widening across all asset classes in the third and fourth quarters has resulted in mark-to-market losses on SEB's fixed-income securities portfolios. Since these portfolios are mark-to-market, results will continue to be affected by further volatility. Given the long-term intention of these holdings, and to limit further income volatility, SEB over time intends to further increase the part of the total holdings in the Available-for-sale portfolio, while reducing the part held on the Held-for-trading portfolio.
Investments in Ukraine and asset management
In December, SEB acquired 97.25 per cent of Factorial Bank (Ukraine). The agreement implies a maximum consideration of USD 120m (approximately SEK 780m) at a 100 per cent holding. Following the acquisition, SEB has about 13,000 corporate customers and 100,000 private clients in Ukraine. Total assets amounted to SEK 3.6bn as of 31 December 2007.
In November, SEB reached an agreement to acquire 100 per cent of the shares in KAM Group Limited ("Key Asset Management"), a leading European fund of hedge funds manager with SEK 20bn of assets under management. The addition of KAM takes SEB's assets under management in hedge funds at year-end to SEK 49bn.
Divestments and restructuring
The sale of the vendor-based car financing operation, ÅF Bil, of SEB Finans was completed during the second quarter, with a capital gain of SEK 110m.
The sale of the properties owned by SEB's Baltic subsidiary banks was finalised in December, with a capital gain of SEK 785m: Estonia SEK 298m, Latvia SEK 255m and Lithuania SEK 232m.
In line with SEB's integration of operations, SEB Finans AB and SEB Bolån AB were merged with the parent company as of 1 October, 2007. The covered bonds issued
by SEB Bolån AB have been grandfathered by the Bank and Moodys' Aaa rating for these issues has been confirmed.
Rating
During the year, Moody's changed SEB's outlook from stable to positive (currently Aa2). The ratings by DBRS (AA low), Fitch (A+, positive outlook) and Standard and Poor's (A+) have been affirmed. SEB has a AA-rating target.
Dividend
The Board proposes a dividend of SEK 6.50 (6.00) per Class A and Class C share respectively. The total dividend amounts to SEK 4,467m (4,123), calculated on the total number of issued shares as per 31 December 2007, including repurchased shares. This proposal corresponds to 33 per cent (32) of earnings per share. The SEB share will be traded ex dividend on 9 April 2008.
Events after year-end
On 28 January 2008, SEB launched its solution for the Single Euro Payments Area (SEPA). It will reduce the overall cost for customers as they will benefit from paying and receiving payments in euro under the same basic terms and conditions regardless of their domicile or whether the payment is domestic or cross-border.
Stockholm, 7 February 2008
Annika Falkengren
President and Chief Executive Officer
These Annual Accounts have been prepared in accordance with International Financial Reporting Standards IFRS/IAS, endorsed by the European Commission, and therefore complies with IAS 34 Interim Financial Reporting. The accounting regulations of the Swedish Financial Supervisory Authority require some additional disclosures.
More detailed information is presented on www.sebgroup.com "Additional information" including:
| Appendix 1 | Division Life |
|---|---|
| Appendix 2 | Credit exposure |
| Appendix 3 | Capital adequacy |
| Appendix 4 | Market risk |
| Appendix 5 | P&L by division, business area and quarter |
| Appendix 6 | P&L by geography and quarter |
| Appendix 7 | Skandinaviska Enskilda Banken (parent |
| company) |
Financial information during 2008
| 7 February | Annual Accounts for 2007 |
|---|---|
| 8 April | Annual General Meeting in Stockholm |
| 30 April | Interim Report January-March |
| $16$ July | Interim Report January-June |
| 23 October | Interim Report January-September |
Access to telephone conference and video web cast
The telephone conference at 15.00 (CET) on 7 February 2008 with CEO Annika Falkengren and CFO Per-Arne Blomquist can be accessed by telephone,
+44 (0) 20 7162 0025, not later than 10 minutes in advance. A replay of the conference call will be available on www.sebgroup.com.
A video web-cast with Per-Arne Blomquist will be available on www.sebgroup.com.
Further information is available from
Per-Arne Blomquist, Chief Financial Officer Tel: +46 8 22 19 00 Ulf Grunnesjö, Head of Investor Relations Tel. + 46 8 763 85 01, +46 70 763 85 01 Annika Halldin, Financial Information Officer Tel. +46 8 763 85 60, +46 70 379 00 60
Skandinaviska Enskilda Banken AB (publ) SE-106 40 Stockholm, Sweden Telephone: +46 771 62 10 00 www.sebgroup.com Corporate organisation number: 502032-9081
The SEB Group
Income statement – SEB Group
| Condensed | Q4 | Q3 | Q4 | Jan - Dec | ||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Net interest income | 4 375 | 3 917 | 12 | 3 604 | 21 | 15 998 | 14 281 | 12 |
| Net fee and commission income | 4 129 | 4 101 | 1 | 4 274 | -3 | 17 051 | 16 146 | 6 |
| Net financial income | 420 | 163 | 158 | 1 120 | -63 | 3 239 | 4 036 | -20 |
| Net life insurance income | 766 | 782 | -2 | 732 | 5 | 2 933 | 2 661 | 10 |
| Net other income | 345 | 530 | -35 | 274 | 26 | 1 219 | 1 623 | -25 |
| Total operating income | 10 035 | 9 493 | 6 | 10 004 | 0 | 40 440 | 38 747 | 4 |
| Staff costs | -3 787 | -3 564 | 6 | -3 735 | 1 | -14 921 | -14 363 | 4 |
| Other expenses | -1 782 | -1 691 | 5 | -1 634 | 9 | -6 919 | -6 887 | 0 |
| Depreciation of assets | - 359 | - 325 | 10 | - 311 | 15 | -1 354 | -1 287 | 5 |
| Total operating expenses | -5 928 | -5 580 | 6 | -5 680 | 4 | -23 194 | -22 537 | 3 |
| Gains less losses from tangible and intangible | ||||||||
| assets Net credit losses incl. changes in value of |
787 | 2 | 22 | 788 | 70 | |||
| seized assets | - 313 | - 189 | 66 | - 222 | 41 | -1 016 | - 718 | 42 |
| Operating profit* | 4 581 | 3 726 | 23 | 4 124 | 11 | 17 018 | 15 562 | 9 |
| Income tax expense | - 824 | - 625 | 32 | - 334 | 147 | -3 376 | -2 939 | 15 |
| Net profit | 3 757 | 3 101 | 21 | 3 790 | -1 | 13 642 | 12 623 | 8 |
| Attributable to minority interests | 5 | 7 | -29 | 3 | 67 | 24 | 18 | 33 |
| Attributable to equity holders ** | 3 752 | 3 094 | 21 | 3 787 | -1 | 13 618 | 12 605 | 8 |
| * Life's operating profit Change in surplus values, net |
475 431 |
501 275 |
-5 57 |
459 359 |
3 20 |
1 802 1 273 |
1 520 1 655 |
19 -23 |
| Life's business result | 906 | 776 | 17 | 818 | 11 | 3 075 | 3 175 | -3 |
| ** Basic earnings per share, SEK | 5.49 | 4.59 | 5.61 | 19.97 | 18.72 | |||
| ** Diluted earnings per share, SEK | 5.48 | 4.57 | 5.55 | 19.88 | 18.53 |
Key figures - SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | ||
|---|---|---|---|---|---|
| 2007 | 2007 | 2006 | 2007 | 2006 | |
| Return on equity, % | 20.2 | 17.3 | 23.2 | 19.3 | 20.8 |
| Return on total assets, % | 0.67 | 0.57 | 0.78 | 0.63 | 0.64 |
| Return on risk-weighted assets, % | 1.78 | 1.49 | 2.04 | 1.68 | 1.71 |
| Basic earnings per share, SEK | 5.49 | 4.59 | 5.61 | 19.97 | 18.72 |
| Weighted average number of shares, millions* | 683 | 673 | 675 | 682 | 673 |
| Diluted earnings per share, SEK | 5.48 | 4.57 | 5.55 | 19.88 | 18.53 |
| Weighted average number of diluted shares, millions** | 685 | 677 | 682 | 685 | 680 |
| Cost/income ratio | 0.59 | 0.59 | 0.57 | 0.57 | 0.58 |
| Credit loss level, % | 0.13 | 0.08 | 0.10 | 0.11 | 0.08 |
| Reserve ratio for impaired loans, % | 76.1 | 78.5 | 75.1 | 76.1 | 75.1 |
| Level of impaired loans, % | 0.18 | 0.17 | 0.22 | 0.18 | 0.22 |
| Basel II (95% of RWA in Basel I): | |||||
| Total capital ratio, incl net profit, % | 11.04 | 10.70 | 11.04 | ||
| Core capital ratio, incl net profit, % | 8.63 | 8.30 | 8.63 | ||
| Risk-weighted assets, SEK billion | 842 | 797 | 842 | ||
| Basel I: | |||||
| Total capital ratio, incl net profit, % | 10.42 | 10.09 | 11.47 | 10.42 | 11.47 |
| Core capital ratio, incl net profit, % | 8.15 | 7.82 | 8.19 | 8.15 | 8.19 |
| Risk-weighted assets, SEK billion | 892 | 846 | 741 | 892 | 741 |
| Number of full time equivalents*** | 19 794 | 19 440 | 19 597 | 19 506 | 19 672 |
| Number of e-banking customers, thousands | 2 911 | 2 850 | 2 597 | 2 911 | 2 597 |
| Assets under management, SEK billion | 1 370 | 1 385 | 1 262 | 1 370 | 1 262 |
* Issued number of shares was 687,156,631 at year-end 2006. SEB then owned 8.9 million Class A shares for the employee stock option programme. During 2007 5.2 million of these shares have been sold as employee stock options have been exercised. Thus, as of 31 December SEB owned 3.7 million Class A-shares with a market value of SEK 612m.
** Calculated dilution based on the estimated economic value of the long-term incentive programmes.
*** Quarterly numbers are for last month of quarter. Accumulated numbers are average for the period.
Income statement on a quarterly basis - SEB Group
| SEKm | 2007:4 | 2007:3 | 2007:2 | 2007:1 | 2006:4 |
|---|---|---|---|---|---|
| Net interest income | 4 375 | 3 917 | 3 939 | 3 767 | 3 604 |
| Net fee and commission income | 4 129 | 4 101 | 4 544 | 4 277 | 4 274 |
| Net financial income | 420 | 163 | 1 345 | 1 311 | 1 120 |
| Net life insurance income | 766 | 782 | 642 | 743 | 732 |
| Net other income | 345 | 530 | 249 | 95 | 274 |
| Total operating income | 10 035 | 9 493 | 10 719 | 10 193 | 10 004 |
| Staff costs | -3 787 | -3 564 | -3 774 | -3 796 | -3 735 |
| Other expenses | -1 782 | -1 691 | -1 768 | -1 678 | -1 634 |
| Depreciation of assets | - 359 | - 325 | - 342 | - 328 | - 311 |
| Total operating expenses | -5 928 | -5 580 | -5 884 | -5 802 | -5 680 |
| Gains less losses from tangible and intangible assets | 787 | 2 | - 1 | 22 | |
| Net credit losses** | - 313 | - 189 | - 280 | - 234 | - 222 |
| Operating profit* | 4 581 | 3 726 | 4 554 | 4 157 | 4 124 |
| Income tax expense | - 824 | - 625 | -1 032 | - 895 | - 334 |
| Net profit | 3 757 | 3 101 | 3 522 | 3 262 | 3 790 |
| Attributable to minority interests | 5 | 7 | 8 | 4 | 3 |
| Attributable to equity holders*** | 3 752 | 3 094 | 3 514 | 3 258 | 3 787 |
| * SEB Trygg Liv's operating profit | 475 | 501 | 368 | 458 | 459 |
| Change in surplus values, net SEB Trygg Liv's business result |
431 906 |
275 776 |
323 691 |
244 702 |
359 818 |
| ** Including change in value of seized assets | |||||
| *** Basic earnings per share, SEK | 5.49 | 4.59 | 5.21 | 4.81 | 5.61 |
| Diluted earnings per share, SEK | 5.48 | 4.57 | 5.21 | 4.76 | 5.55 |
Income statement, by division - SEB Group
| Other | ||||||
|---|---|---|---|---|---|---|
| incl | ||||||
| Merchant | Retail | Wealth | elimi | |||
| Jan-Dec 2007, SEKm | Banking | Banking | Management | Life* | nations | SEB Group |
| Net interest income | 5 540 | 9 888 | 843 | - 28 | - 245 | 15 998 |
| Net fee and commission | ||||||
| income | 5 890 | 6 274 | 4 077 | 810 | 17 051 | |
| Net financial income | 2 285 | 812 | 79 | 63 | 3 239 | |
| Net life insurance income | 3 958 | -1 025 | 2 933 | |||
| Net other income | 784 | 248 | 86 | 101 | 1 219 | |
| Total operating income | 14 499 | 17 222 | 5 085 | 3 930 | - 296 | 40 440 |
| Staff costs | -4 217 | -5 169 | -1 475 | -1 055 | -3 005 | -14 921 |
| Other expenses | -3 432 | -4 314 | - 902 | - 525 | 2 254 | -6 919 |
| Depreciation of assets | - 82 | - 435 | - 63 | - 548 | - 226 | -1 354 |
| Total operating expenses | -7 731 | -9 918 | -2 440 | -2 128 | - 977 | -23 194 |
| Gains less losses from | ||||||
| tangible and intangible | ||||||
| assets | 2 | 5 | - 1 | 782 | 788 | |
| Net credit losses** | - 323 | - 718 | - 7 | 32 | -1 016 | |
| Operating profit | 6 447 | 6 591 | 2 637 | 1 802 | - 459 | 17 018 |
* Business result in Life amounted to SEK 3,075m (3,175), of which change in surplus values was net SEK 1,273m (1,655).
** Including change in value of seized assets.
Merchant Banking
jÉêÅÜ~åí=_~åâáåÖ=Ü~ë=íïç=ä~êÖÉ=ÄìëáåÉëë=~êÉ~ë=J=qê~ÇáåÖ=~åÇ=~éáí~ä=j~êâÉíë=~åÇ=däçÄ~ä=qê~åë~Åíáçå=pÉêîáÅÉëK=qÜÉ=çíÜÉê=ÄìëáåÉëë=ìåáíëI= ÉKÖK=íÜÉ=oj=ÑìåÅíáçåI=çããÉêÅá~ä=oÉ~ä=bëí~íÉI=çêéçê~íÉ=cáå~åÅÉ=~åÇ=píêìÅíìêÉÇ=cáå~åÅÉI=~êÉ=ÅçåëçäáÇ~íÉÇ=áå=`çêéçê~íÉ=_~åâáåÖK==
Profit and loss account
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Net interest income* | 1 498 | 1 370 | 9 | 1 072 | 40 | 5 540 | 4 809 | 15 |
| Net fee and commission income | 1 351 | 1 357 | 0 | 1 515 | -11 | 5 890 | 5 874 | 0 |
| Net financial income* | 169 | -28 | 1 259 | -87 | 2 285 | 3 676 | -38 | |
| Net other income | 166 | 403 | -59 | 165 | 1 | 784 | 779 | 1 |
| Total operating income | 3 184 | 3 102 | 3 | 4 011 | -21 | 14 499 | 15 138 | -4 |
| Staff costs | -1 033 | -908 | 14 | -1 058 | -2 | -4 217 | -4 082 | 3 |
| Other expenses | -867 | -882 | -2 | -756 | 15 | -3 432 | -3 227 | 6 |
| Depreciation of assets | -24 | -18 | 33 | -25 | -4 | -82 | -89 | -8 |
| Total operating expenses | -1 924 | -1 808 | 6 | -1 839 | 5 | -7 731 | -7 398 | 5 |
| Profit before credit losses etc | 1 260 | 1 294 | -3 | 2 172 | -42 | 6 768 | 7 740 | -13 |
| Gains less losses on assets | 2 | 13 | -85 | 2 | -2 | -200 | ||
| Net credit losses | -63 | -32 | 97 | -101 | -38 | -323 | -320 | 1 |
| Operating profit | 1 199 | 1 262 | -5 | 2 084 | -42 | 6 447 | 7 418 | -13 |
| Cost/Income ratio | 0,60 | 0,58 | 0,46 | 0,53 | 0,49 | |||
| Business equity, SEK bn | 26,4 | 26,4 | 24,9 | 26,4 | 24,9 | |||
| Return on equity, % | 13,1 | 13,8 | 24,1 | 17,6 | 21,4 | |||
| Number of full time equivalents | 2 303 | 2 209 | 2 423 | 2 327 | 2 537 |
* Isolated quarterly effects from structured products in 2006, shifting income to net interest income from net financial income, were: Q1: SEK 5m; Q2: SEK 41m; Q3: SEK 72m; Q4: SEK 201m
- it down 13 per cent; up 10 per cent excluding mark-to-market losses. • Operating prof
- Strong customer activity, predominately in transaction services and equity-related areas.
- Top rankings for investment banking, FX forecasting, custody and cash management.
Com ments on 2007
léÉ áå ÉÇ=áå=íÜÉ=Ñáêëí=ëáñ=ãçåíÜë=ïÜáäÉ= =êçëÉ= b_=t~ó= ê~í Ö=éêçÑáí=êÉÑäÉÅíÉÇ=~=óÉ~ê=áå=ïÜáÅÜ=êÉÅçêÇ=êÉîÉåìÉë= pïÉÇÉåK=fëëì~åÅÉ=çÑ=ëíêìÅíìêÉÇ=éêçÇìÅíë=ÖêÉï=Äó=PM= ~åÇ=éêçÑáíë=ïÉêÉ=éçëí Ñáå~åÅá~ä=ã~êâÉí=íìêÄìäÉåÅÉ=äÉÇ=íç=äçïÉê=É~êåáåÖë=áå=íÜÉ= ëÉÅçåÇ=Ü~äÑK=^äíÜçìÖÜ=ÅìëíçãÉê=~Åíáîáíó=êÉã~áåÉÇ=~í=~=ÜáÖÜ äÉîÉä=íÜêçìÖÜçìí=íÜÉ=óÉ~êI=ã~êâJíçJã~êâÉí=äçëëÉë=çÑ=pbh= NITSVã=ïÉêÉ=êÉÅçêÇÉÇ=çå=ÑáñÉÇJáåÅçãÉ=ëÉÅìêáíáÉë= éçêíÑçäáçëK=qÜÉëÉ=äçëëÉë=ãçêÉ=íÜ~å=çÑÑëÉí=íÜÉ=éçëáíáîÉ= ÇÉîÉäçéãÉåí=çÑ=íÜÉ=åÉí=áåíÉêÉëí=áåÅçãÉ=ïáíÜ=íÜÉ=êÉëìäí=íÜ~í íçí~ä=çéÉê~íáåÖ=áåÅçãÉ=ÇÉÅêÉ~ëÉÇ=Äó=Q=éÉê=ÅÉåíK=`çëíë Äó=R=éÉê=ÅÉåí=ã~áåäó=ÇìÉ=íç=ëí~ÑÑ=êÉÅêìáíãÉåíëK== mêÉé~ê~íáçåë=Ñçê=íÜÉ=åÉï=bìêçéÉ~å=é~óãÉåíë=~åÇ= ëÉÅìêáíáÉë=íê~ÇáåÖ=êÉÖáãÉë=áåíÉåëáÑáÉÇ=ÇìêáåÖ=íÜÉ=óÉ~ê=~åÇ= ~äëç=ÅçåíêáÄìíÉÇ=íç=ÜáÖÜÉê=fq=ÅçëíëK=qÜÉ=ÇáîáëáçåÛë=p éêçÖê~ããÉ=ÅçåíáåìÉÇ=íç=êÉåÇÉê=éêçÇìÅíáîáíó=Ö~áåëK= léÉê~íáåÖ=éêçÑáí=ï~ë=Ççïå=Äó=NP=éÉê=ÅÉåíK==
áíáÉë= táíÜáå=qê~ÇáåÖ=~åÇ=`~éáí~ä=j~êâÉíëI=cu=ÅçåíáåìÉÇ=íç= ëÜçï=áãéêçîÉÇ=êÉîÉåìÉë=~åÇ=éêçÑáí~Äáäáíó=~åÇ=íÜÉ=Éèì ÄìëáåÉëëÉë=ÄÉåÉÑáíÉÇ=Ñêçã=ÜáÖÜ=ã~êâÉí=~Åíáîáíó=~åÇ=Éèìáíó= Ñáå~åÅáåÖ=ÇÉã~åÇK=qÜÉ=ÅêÉÇáí=ã~êâÉí=íìêãçáä=Ü~Ç=~= åÉÖ~íáîÉ=ÉÑÑÉÅí=çå=íÜÉ=ÑáñÉÇ=áåÅçãÉ=ÄìëáåÉëëK==
ëíçÅâ=ÉñÅÜ~åÖÉëI=ïáíÜ=~=Ñáêëí=éçëáíáçå=áå=kçêï~ó=~åÇ= pb_=ã~áåí~áåÉÇ=áíë=äÉ~ÇáåÖ=ã~êâÉí=ëÜ~êÉ=çå=íÜÉ=kçêÇáÅ=
éÉê= ÅÉåí=ÇìêáåÖ=OMMT=~åÇ=pb_=Ü~Ç=~=NR=éÉê=ÅÉåí=ã~êâÉí=ëÜ~êÉ=çÑ= ëìÅÜ=éêçÇìÅíë=êÉÖáëíÉêÉÇ=ïáíÜ=íÜÉ=pïÉÇáëÜ=sm`K==
=ïÉääI= êëK= däçÄ~ä=qê~åë~Åíáçå=pÉêîáÅÉë=ÅçåíáåìÉÇ=íç=éÉêÑçêã ÄçíÜ=áå=íÉêãë=çÑ=éêçÑáí~Äáäáíó=~åÇ=ÅìëíçãÉê=ë~íáëÑ~ÅíáçåK= ^ëëÉíë=ìåÇÉê=ÅìëíçÇó=êÉ~ÅÜÉÇ=~ääJíáãÉ=ÜáÖÜ=ÇìêáåÖ=íÜÉ= óÉ~êI=íê~åë~Åíáçå=îçäìãÉë=Ü~îáåÖ=ÑáîÉJÑçäÇÉÇ=áå=íÜêÉÉ=óÉ~
táíÜáå=`çêéçê~íÉ=_~åâáåÖ=ãçëí=ìåáíë=ÇÉäáîÉêÉÇ=ÜáÖÜÉê= çéÉê~íáåÖ=éêçÑáí=çÑÑëÉííáåÖ=íÜÉ=äçïÉê=Åçêéçê~íÉ=Ñáå~åÅÉ= áåÅçãÉ=íÜ~í=êÉëìäíÉÇ=Ñêçã=éçëíéçåÉÇ=íê~åë~ÅíáçåëK=
KÖK= É= pb_Ûë=éçëáíáçå=~ë=~=äÉ~ÇáåÖ=kçêÇáÅ=ïÜçäÉë~äÉ=Ä~åâ=ï~ë= áå=OMMT=ÅçåÑáêãÉÇ=áå=ëÉîÉê~ä=íçé=ê~åâáåÖë=~åÇ=~ï~êÇë=É íçé=kçêÇáÅ=áå=ÄêçâÉê~ÖÉI=Éèìáíó=êÉëÉ~êÅÜ=~åÇ=Åçêéçê~íÉ= Ñáå~åÅÉ=Äó=mêçëéÉê~=~åÇ=Ñçê=Å~ëÜ=~åÇ=äáèìáÇáíó= ã~å~ÖÉãÉåí=Äó=däçÄ~ä=cáå~åÅÉK=cu=êÉëÉ~êÅÜ=ï~ë=íçé= ê~åâÉÇ=ÖäçÄ~ääó=Äó=cu=tÉÉâLoÉìíÉêë=~åÇ=ÅìëíçÇó=áå=íÜ däçÄ~ä=ìëíçÇá~å=pìêîÉó=çÑ=Éåíê~ä=~åÇ=b~ëíÉêå=bìêçéÉK==
dçáåÖ=Ñçêï~êÇI=éêçÑáí=ÖêçïíÜ=ïáää=ÄÉ=ëìééçêíÉÇ=Äó= áãéêçîÉÇ=êáëâ=êÉï~êÇ=éêáÅáåÖI=êçÄìëí=Åçêéçê~íÉ=ÇÉã~åÇ= Ñçê=Ñáå~åÅáåÖ=~åÇ=áåÅêÉ~ëÉÇ=ëÅ~ä~Äáäáíó=çÑ=çéÉê~íáçåëK=
Retail Banking
qÜÉ=oÉí~áä=_~åâáåÖ=Çáîáëáçå=Åçåëáëíë=çÑ=ëáñ=ÄìëáåÉëë=~êÉ~ë=J=pïÉÇÉåI=dÉêã~ åóI=bëíçåá~I=i~íîá~I=iáíÜì~åá~=~åÇ=`~êÇK=
Profit and loss account
| Q4 | Q3 | Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Net interest income | 2 629 | 2 495 | 5 | 2 231 | 18 | 9 888 | 8 514 | 16 |
| Net fee and commission income | 1 647 | 1 517 | 9 | 1 518 | 8 | 6 274 | 5 752 | 9 |
| Net financial income | 245 | 156 | 57 | 219 | 12 | 812 | 614 | 32 |
| Net other income | 98 | 60 | 63 | 52 | 88 | 248 | 235 | 6 |
| Total operating income | 4 619 | 4 228 | 9 | 4 020 | 15 | 17 222 | 15 115 | 14 |
| Staff costs | -1 333 | -1 315 | 1 | -1 237 | 8 | -5 169 | -4 885 | 6 |
| Other expenses | -1 153 | -1 020 | 13 | -1 079 | 7 | -4 314 | -4 203 | 3 |
| Depreciation of assets | -111 | -106 | 5 | -101 | 10 | -435 | -440 | -1 |
| Total operating expenses | -2 597 | -2 441 | 6 | -2 417 | 7 | -9 918 | -9 528 | 4 |
| Profit before credit losses etc | 2 022 | 1 787 | 13 | 1 603 | 26 | 7 304 | 5 587 | 31 |
| Gains less losses on assets | 2 | 3 | -33 | 11 | -82 | 5 | 45 | -89 |
| Net credit losses | -293 | -146 | 101 | -125 | 134 | -718 | -412 | 74 |
| Operating profit | 1 731 | 1 644 | 5 | 1 489 | 16 | 6 591 | 5 220 | 26 |
| Cost/Income ratio | 0,56 | 0,58 | 0,60 | 0,58 | 0,63 | |||
| Business equity, SEK bn | 24,8 | 24,8 | 22,4 | 24,8 | 22,4 | |||
| Return on equity, % | 21,7 | 20,8 | 20,6 | 20,8 | 18,1 | |||
| Number of full time equivalents | 10 926 | 10 794 | 10 651 | 10 763 | 10 661 |
- Operating profit improved by 26 per cent, growth across all geographies.
- High activity and volume growth throughout the year. Strong focus on savings products.
- Continued measures to control SEB's credit growth in the Baltic countries.
Comments on 2007
léÉê~íáåÖ=éêçÑáí=áåÅêÉ~ëÉÇ=Äó=OS=éÉê=ÅÉåí=ÑçääçïáåÖ=ÜáÖÜ= ÅìëíçãÉê=~Åíáîáíó=~åÇ=Åçëí=ÅçåíêçäK=dêçïíÜ=êÉã~áåÉÇ=ÜáÖÜ= íÜêçìÖÜçìí=íÜÉ=óÉ~êI=ïáíÜ=íÜÉ=ÑçìêíÜ=èì~êíÉê=ÄÉáåÖ=íÜÉ= ëíêçåÖÉëí=áå=íÉêãë=çÑ=ÄìëáåÉëë=îçäìãÉëI=áåÅçãÉ=~åÇ=éêçÑáíK=
táíÜáå=oÉí~áä=pïÉÇÉåI=ÜçìëÉÜçäÇ=ãçêíÖ~ÖÉë=~åÇ= ÇÉéçëáíë=ÖêÉï=Äó=NP=~åÇ=ON=éÉê=ÅÉåíI=êÉëéÉÅíáîÉäóI=ÄçíÜ= ïáíÜ=áåÅêÉ~ëáåÖ=ã~êâÉí=ëÜ~êÉëK=^äëç=Ñçê=íÜÉ=ë~îáåÖë=ã~êâÉí= áå=íçí~äI=íÜÉ=ã~êâÉí=ëÜ~êÉ=áåÅêÉ~ëÉÇ=~ÅÅçêÇáåÖ=íç=pb_Ûë= p~îáåÖë=_~êçãÉíÉêK=pjb=ÅìëíçãÉê=ÖêçïíÜ=ÉñÅÉÉÇÉÇ=ÄçíÜ= íÜÉ=ã~êâÉí=~åÇ=íÜÉ=éêÉîáçìë=óÉ~êK=qÜÉ=åÉï=ÑìääJëÉêîáÅÉJ çÑÑÉêáåÖ="båâä~=Ñáêã~åÒ=Ñçê=íÜÉ=ëã~ääÉê=pjb=ëÉÖãÉåí= ~ííê~ÅíÉÇ=NNIMMM=ÅìëíçãÉêë=~äêÉ~Çó=ÇìêáåÖ=íÜÉ=Ñáêëí=íÜêÉÉ= ãçåíÜëK=fí=ï~ë=~äëç=~ï~êÇÉÇ="pjb=mêçÇìÅí=çÑ=íÜÉ=vÉ~êÒ=Äó= mêáî~í~=^ÑÑ®êÉêK=jçêíÖ~ÖÉ=ã~êÖáå=éêÉëëìêÉ=ï~ë=ÑáÉêÅÉ=Äìí= ÇÉÅÉäÉê~íÉÇ=ÇìêáåÖ=íÜÉ=óÉ~ê=~åÇ=áå=Ñ~Åí=ã~êÖáåë=áãéêçîÉÇ= çå=åÉï=äÉåÇáåÖ=íçï~êÇë=íÜÉ=ÉåÇ=çÑ=íÜÉ=óÉ~êK=qÜÉ=ÑçÅìë=çå= çéÉê~íáçå~ä=ÉÑÑáÅáÉåÅó=ÅçåíáåìÉÇ=íç=óáÉäÇ=êÉëìäí=~ë=Åçëíë= ÇÉÅêÉ~ëÉÇ=Äó=O=éÉê=ÅÉåíK=
qÜÉ=ÅçåíêçääÉÇ=ëäçïÇçïå=çÑ=ÅêÉÇáí=ÖêçïíÜ=áå=íÜÉ=_~äíáÅ= ÅçìåíêáÉë=ÅçåíáåìÉÇK=nì~êíÉêäó=ÅêÉÇáí=ÖêçïíÜ=ãçêÉ=íÜ~å= Ü~äîÉÇ=ÇìêáåÖ=íÜÉ=óÉ~ê=~åÇ=áå=íÜÉ=ÑçìêíÜ=èì~êíÉê=ÅêÉÇáí= ÖêçïíÜ=áå=i~íîá~=ï~ë=N=éÉê=ÅÉåíI=áå=bëíçåá~=P=éÉê=ÅÉåí=~åÇ= áå=iáíÜì~åá~=Q=éÉê=ÅÉåíK=qÜÉ=ëäçïÇçïå=êÉÇìÅÉÇ=äÉåÇáåÖ=
ã~êâÉí=ëÜ~êÉëI=é~êíáÅìä~êäó=áå=i~íîá~=~åÇ=bëíçåá~I= íÜêçìÖÜçìí=íÜÉ=óÉ~êK=pb_=i~íîá~=~åÇ=pb_=iáíÜì~åá~= êÉÅÉáîÉÇ=~ééêçî~ä=Ñêçã=íÜÉ=pïÉÇáëÜ=cáå~åÅá~ä=pìéÉêîáëçêó= ^ìíÜçêáíó=íç=~ééäó=íÜÉ=fåíÉêå~ä=o~íáåÖ=_~ëÉÇ=~ééêç~ÅÜ=Ñçê= _~ëÉä=ff=éìêéçëÉë=ëí~êíáåÖ=N=g~åì~êó=OMMUK=aìêáåÖ=íÜÉ=ÑçìêíÜ= èì~êíÉêI=pb_Ûë=éçëáíáçå=áå=íÜÉ=êÉÖáçå=ï~ë=ÅçåÑáêãÉÇ=Äó=íÜÉ= ~ï~êÇ=~ë="_~åâ=çÑ=íÜÉ=vÉ~êÒ=áå=bëíçåá~=~åÇ=iáíÜì~åá~=Äó= qÜÉ=_~åâÉêK=b~êäáÉê=áå=OMMTI=pb_=áå=i~íîá~=ï~ë=~ï~êÇÉÇ= "_Éëí=_~åâÒ=Äó=bìêçãçåÉóK=^=êÉÑáåÉÇ=ÅçääÉÅíáîÉ= éêçîáëáçåáåÖ=Ä~ëÉÇ=çå=ÖêçïáåÖ=äÉåÇáåÖ=îçäìãÉë=Éñéä~áåÉÇ= íÜÉ=ÇáîáëáçåÛë=ÜáÖÜÉê=åÉí=ÅêÉÇáí=äçëëÉëK=
få=dÉêã~åóI=íÜÉ=ïçêâ=íç=êÉ~ÅÜ=ë~íáëÑ~Åíçêó=éêçÑáí~Äáäáíó= ÅçåíáåìÉÇI=ïáíÜ=áåÅçãÉ=ÖêçïíÜI=ë~äÉë=~Åíáîáíó=~åÇ= ÅìëíçãÉê=ÖêçïíÜ=ÇÉîÉäçéáåÖ=Ñ~îçìê~ÄäóK==
`~êÇÛë=íìêåçîÉê=áåÅêÉ~ëÉÇ=Äó=V=éÉê=ÅÉåíI=ïÜáÅÜ=ãçêÉ= íÜ~å=ÅçãéÉåë~íÉÇ=Ñçê=ÜáÖÜÉê=ÑìåÇáåÖ=Åçëíë=ÇìêáåÖ=OMMTK= píêçåÖ=ÑçÅìë=ï~ë=ÖáîÉå=íç=éêçÇìÅí=ÇÉîÉäçéãÉåí=íç= ë~ÑÉÖì~êÇ=íÜÉ=äÉ~ÇáåÖ=éçëáíáçå=Ñçê=kçêÇáÅ=ÅÜ~êÖÉ=Å~êÇëK===
qÜÉ=ëçäáÇ=ìåÇÉêäóáåÖ=ÅìëíçãÉê=~åÇ=ÄìëáåÉëë=ÖêçïíÜ= íçÖÉíÜÉê=ïáíÜ=íÜÉ=ÇáîáëáçåÛë=ëíêçåÖ=éçëáíáçå=áå=~ííê~ÅíáîÉ= ~êÉ~ë=ëìÅÜ=~ë=_~äíáÅ=ë~îáåÖë=éêçÇìÅíë=~åÇ=pjbëI=éêçîáÇÉ=~å= ~ííê~ÅíáîÉ=Ä~ëáë=Ñçê=ÑìíìêÉ=éêçÑáí=ÖêçïíÜK===
Wealth Manage ment
qÜáë=Çáîáëáçå=Ü~ë=íïç=ÄìëáåÉ ëë=~êÉ~ë=J=^ëëÉí=j~å~ÖÉãÉåí=~åÇ=mêáî~íÉ=_~åâáåÖK
Profit and loss account
| Q4 | Q3 | Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Net interest income | 245 | 214 | 14 | 179 | 37 | 843 | 644 | 31 |
| Net fee and commission income | 979 | 988 | -1 | 1 094 | -11 | 4 077 | 3 836 | 6 |
| Net financial income | 46 | 3 | 12 | 79 | 55 | 44 | ||
| Net other income | 40 | 13 | 11 | 86 | 60 | 43 | ||
| Total operating income | 1 310 | 1 218 | 8 | 1 296 | 1 | 5 085 | 4 595 | 11 |
| Staff costs | -386 | -357 | 8 | -376 | 3 | -1 475 | -1 440 | 2 |
| Other expenses | -258 | -222 | 16 | -207 | 25 | -902 | -801 | 13 |
| Depreciation of assets | -14 | -13 | 8 | -15 | -7 | -63 | -51 | 24 |
| Total operating expenses | -658 | -592 | 11 | -598 | 10 | -2 440 | -2 292 | 6 |
| Profit before credit losses etc | 652 | 626 | 4 | 698 | -7 | 2 645 | 2 303 | 15 |
| Gains less losses on assets | -1 | 29 | -103 | |||||
| Net credit losses | 10 | -8 | 4 | 150 | -7 | 25 | -128 | |
| Operating profit | 662 | 618 | 7 | 702 | -6 | 2 637 | 2 357 | 12 |
| Cost/Income ratio | 0,50 | 0,49 | 0,46 | 0,48 | 0,50 | |||
| Business equity, SEK bn | 5,5 | 5,5 | 4,0 | 5,5 | 4,0 | |||
| Return on equity, % | 34,7 | 32,4 | 50,5 | 34,5 | 42,4 | |||
| Number of full time equivalents | 1 236 | 1 215 | 1 320 | 1 251 | 1 300 |
• Operating profit increased by 12 per cent.
vestments. • Captured major part of net sales of Swedish mutual funds and alternative in
Com e m nts on 2007
qÜÉ é íÜ~í ê åÖ=~ëëÉíë=ìåÇÉê=ã~å~ÖÉãÉåíI= Ç= =NO= Éê=ÅÉåí=çéÉê~íáåÖ=éêçÑáí=áåÅêÉ~ëÉ=êÉÑäÉÅíÉÇ=~=óÉ~ê= ~åÇ=RQ=éÉê=ÅÉåí=ETVF=çÑ=~ëëÉíë=ìåÇÉê=ã~å~ÖÉãÉåí=ïÉêÉ= =ëí~ íÉÇ=ïáíÜ=ëíêçåÖ=åÉï=ë~äÉëI=ëíêçåÖ=áåîÉëíãÉåí= ~ÜÉ~Ç=çÑ=íÜÉáê=êÉëéÉÅíáîÉ=ÄÉåÅÜã~êâë éÉêÑçêã~åÅÉ=~åÇ=Öêçïá ïÜáÅÜ=ÉåÇÉÇ=ïáíÜ=~=Çê~ã~íáÅ=ëÜáÑí=çÑ=ã~êâÉí=ëÉåíáãÉåí=~å áåîÉëíãÉåí=éÉêÑçêã~åÅÉ=ÇìÉ=íç=íÜÉ=ÅêÉÇáí=ã~êâÉí=íìêãçáäK= léÉê~íáåÖ=áåÅçãÉ=ï~ë=ìé=Äó=NN=éÉê=ÅÉåí=ÇìêáåÖ=íÜÉ=óÉ~êI= ïÜáÅÜ=áåÅäìÇÉÇ=éÉêÑçêã~åÅÉ=~åÇ=íê~åë~Åíáçå=ÑÉÉë=çÑ=pbh= RRSã=EQSRFK=eáÖÜÉê=~ëëÉí=î~äìÉë=~åÇ=åÉí=ë~äÉë=~äëç= ÖÉåÉê~íÉÇ=ÖêçïíÜ=çÑ=åÉí=ÑÉÉ=~åÇ=Åçããáëëáçå=áåÅçãÉK= léÉê~íáåÖ=ÉñéÉåëÉë=áåÅêÉ~ëÉÇ=Äó=S=éÉê=ÅÉåíK=bÑÑÉÅíë=Ñêçã= ÜáÖÜÉê=çéÉê~íáçå~ä=ÉÑÑáÅáÉåÅó=~êÉ=äáãáíÉÇ=~ë=óÉíI=~ë=íÜÉ=pb_= t~ó=éêçÖê~ããÉ=ïáää=áåíÉåëáÑó=ÇìêáåÖ=OMMUK=
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K= p~äÉë=áå=mêáî~íÉ=_~åâáåÖ=~äãçëí=ÇçìÄäÉÇI=íç=pbh=OPÄå= ENPFI=ïáíÜ=~=ëíêçåÖ=ÇÉã~åÇ=Ñçê=~äíÉêå~íáîÉ=~ëëÉí=éêçÇìÅíë _êçâÉê~ÖÉ=áåÅçãÉ=ÇÉÅäáåÉÇ=ÇìÉ=íç=ã~êÖáå=éêÉëëìêÉ=~åÇ= äçïÉê=ÅäáÉåí=íê~ÇáåÖ=~ÅíáîáíóK=léÉê~íáåÖ=éêçÑáí=áãéêçîÉÇ=Äó= R=éÉê=ÅÉåíK=qÜÉ=kçêïÉÖá~å=~åÇ=a~åáëÜ=çéÉê~íáçåë=Ü~îÉ= ÄÉÉå=êÉëíêìÅíìêÉÇ=~åÇ=áåíÉÖê~íÉÇ=ÇìêáåÖ=OMMTK==
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Life
iáÑÉ=Åçåëáëíë=çÑ=íÜêÉÉ=ÄìëáåÉëë=~êÉ~ë=J=pb_=qêóÖÖ=iáî=EpïÉÇÉåFI=pb_=mÉåëáçå=EaÉåã~êâF=~åÇ=pb_=iáÑÉ=C=mÉåëáçå=fåíÉêå~íáçå~äK==
Profit and loss account
| Q4 | Q3 | Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Net interest income | -7 | -6 | 17 | -4 | 75 | -28 | -15 | 87 |
| Net life insurance income | 1 031 | 1 039 | -1 | 934 | 10 | 3 958 | 3 471 | 14 |
| Total operating income | 1 024 | 1 033 | -1 | 930 | 10 | 3 930 | 3 456 | 14 |
| Staff costs | -284 | -251 | 13 | -258 | 10 | -1 055 | -1 008 | 5 |
| Other expenses | -121 | -147 | -18 | -108 | 12 | -525 | -474 | 11 |
| Depreciation of assets | -144 | -134 | 7 | -105 | 37 | -548 | -454 | 21 |
| Total operating expenses | -549 | -532 | 3 | -471 | 17 | -2 128 | -1 936 | 10 |
| Operating profit | 475 | 501 | -5 | 459 | 3 | 1 802 | 1 520 | 19 |
| Change in surplus values, net | 431 | 275 | 57 | 359 | 20 | 1 273 | 1 655 | -23 |
| Business result | 906 | 776 | 17 | 818 | 11 | 3 075 | 3 175 | -3 |
| Cost/Income ratio | 0,54 | 0,52 | 0,51 | 0,54 | 0,56 | |||
| Business equity, SEK bn | 7,5 | 7,5 | 7,0 | 7,5 | 7,0 | |||
| Return on equity, % | ||||||||
| based on operating profit | 22,3 | 23,5 | 23,1 | 21,1 | 19,1 | |||
| based on business profit | 42,5 | 36,4 | 41,1 | 36,1 | 39,9 | |||
| Number of full time equivalents | 1 218 | 1 206 | 1 221 | 1 206 | 1 280 |
• Operating profit increased by 19 per cent.
nt; International's share above 10 per cent. • Sales in the Baltic markets up by 76 per ce
Com ments on 2007
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K=bñÅäìÇáåÖ= íÜÉ ÜÉ= qçí~ä=éêÉãáìã=áåÅçãÉ=EéêÉãáìãë=é~áÇF=~ãçìåíÉÇ=íç pbh=OSKQÄå=Åçãé~êÉÇ=ïáíÜ=pbh=PNKNÄå=ä~ëí=óÉ~ê =ÉÑÑÉÅí=çÑ=íÜÉ=äÉÖáëä~íáîÉ=~Åíáçåë=áå=pïÉÇÉåI=áåÅäìÇáåÖ=í ëíçé=Ñçê=íê~åëÑÉêëI=éêÉãáìã=áåÅçãÉ=êçëÉ=Äó=pbh=PKNÄåI=çê NQ=éÉê=ÅÉåíK==
=NQ=éÉê= =áå= ÖÉåÉê~äK=qçí~ä=~ëëÉíë=ìåÇÉê=ã~å~ÖÉãÉåí=EåÉí=~ëëÉíëF= áåÅêÉ~ëÉÇ=Äó=P=éÉê=ÅÉåí=Ñêçã=ä~ëí=óÉ~êI=íç=pbh=QMUÄåK= qÜÉ=íçí~ä=î~äìÉ=çÑ=ìåáíJäáåâÉÇ=ÑìåÇë=áåÅêÉ~ëÉÇ=Äó ÅÉåíI=íç=pbh=NPSÄåI=Åçãé~êÉÇ=ïáíÜ=pbh=NOMÄå=ä~ëí=óÉ~êK= qÜÉ=éçëáíáîÉ=íêÉåÇ=áë=~=êÉëìäí=çÑ=áåÅêÉ~ëáåÖ=ÑìåÇ=î~äìÉëI= éêÉãáìã=é~óãÉåíë=~åÇ=~=äçï=äÉîÉä=çÑ=ëìêêÉåÇÉêë
Result by geography 2007
SEB offers universal banking services in Sweden, Germany and the Baltic countries. It also has a local presence in the other Nordic countries, Poland, Ukraine and Russia and a strategic presence through its international network in another 10 countries.
- Strong profit growth in most markets, especially in the Baltic countries.
- Increased cost efficiency in Sweden.
- Business volumes outside Sweden generated 50 per cent of operating profit.
Comments on 2007
The business climate in Sweden remained strong during 2007 and all of SEB's business areas continued to report improved revenues, with the exception of Trading and Capital Markets, which in the second half of the year was adversely affected by the turbulent credit markets. As an example, Retail increased risk-weighted assets (Basel I) by 14 per cent during the year. The cost increase of 2 per cent reflected the higher operational efficiency, including staff reductions. Operating profit rose by 9 per cent.
SEB's operations in Denmark and Finland developed favourably, mainly due to a strong development for Life in Denmark and for Merchant Banking and Wealth Management in Finland. SEB in Norway consolidated its market position within investment banking and maintained the strong business flow from last year.
Business in Estonia, Latvia and, particularly, Lithuania remained strong. Income was supported by 285,000 new customers and a capital gain of SEK 785m from the sale of SEB's Baltic real estate. Net interest income growth ranged between 40 and 60 per cent by country, mainly due to improved deposit margins and volume growth. Quarterly credit growth more than halved during the year. SEB's measures to create a controlled slowdown of credit growth included tightened lending requirements for customers borrowing in non-local currencies and a cautious view of the real estate sector.
The strengthened focus on savings products in the three Baltic countries continued to vield results: depositrelated net interest income grew by 87 per cent and commission income by 27 per cent in the region. Sales of structured products increased by 60 per cent. SEB remains focused on quality and risk-adjusted returns rather than on volumes and market share. Collective provisioning increased net credit losses reflecting growing business volumes and continued macro-economic imbalances.
Operating profit per country, Jan-Dec 2007 Excluding capital gains of Baltic real estate sale
Operating profit in Germany decreased by 36 per cent, mainly as a result of mark-to-market losses in the fixedincome securities portfolios of Merchant Banking due to the turbulent credit markets. The overall German customer-related business increased operating profit by 3 per cent compared with last year. The operating profit of SEB's customer business at SEK 1.4bn is six times higher than the corresponding operating profit in 2005.
Business in new markets, i.e. Ukraine and Russia, developed according to plan. The acquisition of Factorial Bank in December will accelerate SEB's growth strategy in the Ukraine. Following the acquisition, SEB has 13,000 corporate customers and 100,000 private clients in Ukraine. SEB also sold its first life insurance policy in Ukraine.
| Distribution by country Jan - Dec | Total operating income | Total operating expenses | Operating profit | ||||||
|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2006 | % | 2007 | 2006 | % | 2007 | 2006 | % |
| Sweden | 20 489 | 19811 | 3 | $-12265$ | $-12130$ | 8 1 4 5 | 7449 | 9 | |
| Norway | 2942 | 3 0 4 2 | $-3$ | $-1546$ | $-1674$ | -8 | 1 302 | 383 | -6 |
| Denmark | 2823 | 2633 | $-1555$ | $-1487$ | 5 | 1 2 3 2 | 1 1 2 2 | 10 | |
| Finland | 1 1 7 7 | 976 | 21 | $-589$ | $-579$ | 2 | 579 | 392 | 48 |
| Germany | 6 1 4 8 | 6 5 6 4 | -6 | $-4810$ | $-4618$ | 4 | 996 | 545 | $-36$ |
| Estonia | 1660 | 1 2 9 5 | 28 | $-649$ | $-518$ | 25 | 1 0 9 0 | 788 | 38 |
| Latvia | 1649 | 1 1 8 3 | 39 | $-602$ | $-503$ | 20 | 1 1 9 2 | 659 | 81 |
| Lithuania | 2 3 8 6 | 1603 | 49 | $-876$ | $-705$ | 24 | 1621 | 873 | 86 |
| Other countries and eliminations | 1 166 | 1640 | $-29$ | $-302$ | $-323$ | $-7$ | 861 | 351 | $-36$ |
| Total | 40 440 | 38 747 | 4 | $-23194$ | $-22537$ | 3 | 17018 | 15 5 62 | 9 |
The SEB Group
Net fee and commission income – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SE Km |
2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Issu e of s ecurities |
61 | 45 | 36 | 98 | - 38 | 335 | 290 | 16 |
| Sec ar ond y market shares* |
711 | 779 | - 9 | 759 | - 6 | 3 153 | 3 100 | 2 |
| Sec ar ond y market other |
148 | 107 | 38 | 205 | - 28 | 598 | 531 | 13 |
| Cus a tody nd mutual funds |
1 763 | 1 787 | - 1 | 1 662 | 6 | 7 165 | 6 184 | 16 |
| Secu rit ie s commissions |
2 683 | 2 718 | - 1 | 2 724 | - 2 | 11 251 | 10 105 | 1 1 |
| Payments | 463 | 440 | 5 | 463 | 1 808 | 1 787 | 1 | |
| Card fees | 1 087 | 1 010 |
8 | 985 | 10 | 4 093 | 3 730 | 10 |
| Payment commissions | 1 550 | 1 450 | 7 | 1 448 | 7 | 5 901 | 5 517 | 7 |
| Advisory | 316 | 321 | - 2 | 456 | - 31 | 1 473 | 1 742 | - 15 |
| Lending | 294 | 204 | 44 | 231 | 27 | 1 055 | 946 | 12 |
| Deposits | 23 | 22 | 5 | 36 | - 36 | 89 | 124 | - 28 |
| Guarantees | 66 | 68 | - 3 | 71 | - 7 | 264 | 278 | - 5 |
| Derivatives | 92 | 94 | - 2 | 82 | 12 | 363 | 384 | - 5 |
| Other | 235 | 275 | - 15 | 253 | - 7 | 1 004 | 849 | 18 |
| Other commissions | 1 026 | 984 | 4 | 1 129 | - 9 | 4 248 | 4 323 | - 2 |
| Fee and commission income | 5 259 | 5 152 | 2 | 5 301 | - 1 | 21 400 | 19 945 | 7 |
| Securities commissions* | - 195 | - 208 | - 6 | - 198 | - 2 | - 902 | - 698 | 29 |
| Payment commissions | - 619 | - 576 | 7 | - 589 | 5 | -2 373 | -2 150 | 10 |
| Other commissions | - 316 | - 267 | 18 | - 240 | 32 | -1 074 | - 951 | 13 |
| Fee and commission expense | -1 130 | -1 051 | 8 | -1 027 | 10 | -4 349 | -3 799 | 14 |
| Securities commissions, net | 2 488 | 2 510 | - 1 | 2 526 | - 2 | 10 349 | 9 407 | 10 |
| Payment commissions, net | 931 | 874 | 7 | 859 | 8 | 3 528 | 3 367 | 5 |
| Other commissions, net | 710 | 717 | - 1 | 889 | - 20 | 3 174 | 3 372 | - 6 |
| Net fee and commission income | 4 129 | 4 101 | 1 | 4 274 | - 3 | 17 051 | 16 146 | 6 |
* Adjusted for gross fees for securities lending in 2006, SEK 20 0m.
Net financial income – SEB Group
| Q4 | Q3 Q4 |
Jan - Dec | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % | |
| Equity instruments and related derivatives | 157 | 90 | 74 | - 68 | 520 | 342 | 52 | ||
| Debt instruments and related derivatives | - 477 | - 782 | -39 | 529 | -190 | - 101 | 1 424 | -107 | |
| Capital market related | - 320 | - 692 | -54 | 461 | -169 | 419 | 1 766 | -76 | |
| Currency-related | 740 | 855 | -13 | 659 | 12 | 2 820 | 2 270 | 24 | |
| Net financial income | 420 | 163 | 158 | 1 120 | -63 | 3 239 | 4 036 | -20 |
Net credit losses – Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Provisions: | ||||||||
| Net collective provisions | 15 | - 71 | -121 | 212 | -93 | - 390 | - 108 | |
| Specific provisions | - 231 | - 100 | 131 | - 455 | -49 | - 653 | - 888 | -26 |
| Reversal of specific provisions no longer required | 163 | 80 | 104 | 173 | -6 | 405 | 544 | -26 |
| Net provisions for contingent liabilities | - 24 | 8 | 10 | 8 | 31 | -74 | ||
| Net provisions | - 77 | - 83 | -7 | - 60 | 28 | - 630 | - 421 | 50 |
| Write-offs: | ||||||||
| Total write-offs | - 562 | - 350 | 61 | - 444 | 27 | -1 395 | -1 308 | 7 |
| Reversal of specific provisions utilized for write-offs | 242 | 214 | 13 | 221 | 10 | 711 | 704 | 1 |
| Write-offs not previously provided for | - 320 | - 136 | 135 | - 223 | 43 | - 684 | - 604 | 13 |
| Recovered from previous write-offs | 85 | 30 | 183 | 62 | 37 | 293 | 322 | -9 |
| Net write-offs | - 235 | - 106 | 122 | - 161 | 46 | - 391 | - 282 | 39 |
| Net credit losses | - 312 | - 189 | 65 | - 221 | 41 | -1 021 | - 703 | 45 |
| Change in value of seized assets | - 1 | - 1 | 5 | - 15 | -133 | |||
| Net credit losses incl change in value | - 313 | - 189 | 6 6 |
- 222 | 41 | -1 016 | - 718 | 42 |
Balance sheet – SEB Group
| Condensed | 31 December | 31 December |
|---|---|---|
| SEKm | 2007 | 2006 |
| Cash and cash balances with central banks | 96 871 | 11 314 |
| Loans to credit institutions | 263 012 | 180 478 |
| Loans to the public | 1 067 341 | 950 861 |
| Financial assets at fair value * | 661 223 | 614 288 |
| Available-for-sale financial assets * | 170 158 | 116 630 |
| Held-to-maturity investments * | 1 798 | 2 231 |
| Asset held for sale / Discontinued operations | 2 189 | |
| Investments in associates | 1 236 | 1 085 |
| Tangible and intangible assets | 24 697 | 22 914 |
| Other assets | 58 126 | 32 451 |
| Total assets | 2 344 462 | 1 934 441 |
| Deposits by credit institutions | 421 348 | 368 326 |
| Deposits and borrowing from the public | 750 481 | 643 849 |
| Liabilities to policyholders | 225 916 | 203 719 |
| Debt securities | 510 564 | 394 357 |
| Financial liabilities at fair value | 216 390 | 151 032 |
| Other liabilities | 97 519 | 60 150 |
| Provisions | 1 536 | 2 066 |
| Subordinated liabilities | 43 989 | 43 675 |
| Total equity | 76 719 | 67 267 |
| Total liabilities and equity | 2 344 462 | 1 934 441 |
| * Of which bonds and other interest bearing securities inclusive derivatives. | 607 895 | 560 844 |
Memorandum items – SEB Group
| 31 December | 31 December | |
|---|---|---|
| SEKm | 2007 | 2006 |
| Collateral and comparable security pledged for own liabilities | 308 342 | 354 694 |
| Other pledged assets and comparable collateral | 207 363 | 189 730 |
| Contingent liabilities | 66 984 | 60 156 |
| Commitments | 394 128 | 346 517 |
Statement of changes in equity – SEB Group
| Reserve for | Reserve for | ||||||
|---|---|---|---|---|---|---|---|
| SEKm | Minority interests |
cash flow hedges |
afs financial assets |
Share capital |
Restricted reserves |
Retained earnings |
Total |
| Jan-Dec 2007 | |||||||
| Opening balance | 130 | 380 | 392 | 6 872 | 30 203 | 29 290 | 67 267 |
| Change in market value | -206 | - 614 | - 820 | ||||
| Recognised in income statement | -14 | - 216 | - 230 | ||||
| Translation difference | 98 | 98 | |||||
| Net income recognised directly in equity | -220 | -830 | 98 | -952 | |||
| Net profit | 24 | 13 618 | 13 642 | ||||
| Total recognised income | 24 | -220 | -830 | 98 | 13 618 | 12 690 | |
| Dividend to shareholders | - 4 123 | - 4 123 | |||||
| Dividend, own holdings of shares Neutralisation of PL impact and utilisation of |
44 | 44 | |||||
| employee stock options* Eliminations of repurchased shares for employee |
- 428 | - 428 | |||||
| stock option programme*** | 897 | 897 | |||||
| Other changes | 37 | -544 | 879 | 372 | |||
| Closing balance | 191 | 160 | - 438 | 6 872 | 29 757 | 40 177 | 76 719 |
| Jan-Dec 2006 | |||||||
| Opening balance | 112 | 882 | 481 | 6 872 | 28 882 | 19 567 | 56 796 |
| Change in market value | -502 | - 27 | - 529 | ||||
| Recognised in income statement | - 62 | - 62 | |||||
| Translation difference | -184 | - 184 | |||||
| Net income recognised directly in equity | -502 | -89 | -18 4 |
-775 | |||
| Net profit | 18 | 12 605 | 12 623 | ||||
| Tot al recognised income |
18 | -502 | -89 | -184 | 12 605 | 11 848 | |
| D ividend to shareholders |
- 3 264 | - 3 264 | |||||
| Dividend, own holdings of shares Neutralisation of PL impact and utilisation of |
75 | 75 | |||||
| employee stock options* Eliminations of repurchased shares for employee |
580 | 580 | |||||
| stock option programme*** | 1 232 | 1 232 | |||||
| Other changes | 1 505 | - 1 505 | |||||
| Closing balance | 130 | 380 | 392 | 6 872 | 30 203 | 29 290 | 67 267 |
Includes changes in nominal amounts of equity swaps used for hedging of stock option programmes. *
Reclassification from equity instruments to financial instruments. **
*** As of 31 December 2006 SEB owned 8.9 million Class A shares for the employee stock option programme. The acquisition cost for these shares is deducted from shareholders' equity. During 2007 5.2 million of these shares have been sold as employee stock options have been exercised. Thus, as of 31 December SEB owned 3.7 million Class A-shares with a market value of SEK 612m for hedging of the long-term incentive programmes.
Cash flow statement – SEB Group
| Jan - Dec | |||
|---|---|---|---|
| SEKm | 2007 | 2006 | % |
| Cash flow from the profit and loss statement | 17 476 | 15 490 | 13 |
| Increase (-)/decrease (+) in trading portfolios | -32 503 | -69 110 | -53 |
| Increase (+)/decrease (-) in issued short term securities | 72 454 | 10 581 | |
| Increase (-)/decrease (+) in lending to credit institutions | -45 995 | 17 745 | |
| Increase (-)/decrease (+) in lending to the public | -116 298 | -46 351 | 151 |
| Increase (+)/decrease (-) in liabilities to credit institutions | 52 274 | -33 559 | |
| Increase (+)/decrease (-) in deposits and borrowings from the public | 104 715 | 71 495 | 46 |
| Increase (-)/decrease (+) in insurance portfolios | 22 302 | 18 319 | 22 |
| Change in other balance sheet items | 10 348 | -1 587 | |
| Cash flow from operating activities | 84 773 | -16 977 | |
| Cash flow from investment activities1) | -2 350 | - 12 | |
| Cash flow from financing activities | 38 397 | 21 048 | 82 |
| Net increase in cash and cash equivalents | 120 820 | 4 059 | |
| Cash and cash equivalents at beginning of year | 73 751 | 70 796 | 4 |
| Exchange difference in cash and cash equivalents | 414 | -1 104 | -138 |
| Net increase in cash and cash equivalents | 120 820 | 4 059 | |
| Cash and cash equivalents at end of period2) | 194 985 | 73 751 | 164 |
| 1) Including investments in subsidiaries | |||
| Cost of acquisitions | - 759 | - 130 | |
| Less cash acquired | 102 | 113 | -10 |
| Outflow on acquisition | - 657 | - 17 |
2) Cash and cash equivalents at end of period is defined as Cash and cash balances with central banks and Loans to credit institutions - payable on demand.
Impaired loans and seized assets – SEB Group
| 31 December | 31 December | |
|---|---|---|
| SEKm | 2007 | 2006 |
| Non-performing impaired loans | 7 619 | 7 123 |
| Performing impaired loans | 772 | 1 403 |
| Impaired loans gross* | 8 391 | 8 526 |
| Specific reserves | -3 787 | -4 234 |
| of which reserves for non-performing loans | -3 456 | -3 630 |
| of which reserves for performing loans | -331 | -604 |
| Collective reserves | -2 602 | -2 170 |
| Impaired loans net | 2 002 | 2 122 |
| Reserves for off-balance sheet items | -209 | -215 |
| Total reserves | -6 598 | -6 619 |
| Level of impaired loans | 0.18% | 0.22% |
| (Impaired loans, net in relation to lending, at end of period) | ||
| Reserve ratio for impaired loans (Specific and collective reserves in relation to impaired loans gross, per cent) |
76.1% | 75.1% |
| Specific reserve ratio for impaired loans | 45.1% | 49.7% |
| Pledges taken over | ||
| Properties | 23 | 86 |
| Shar es |
39 | 42 |
| T otal volume of pledges taken over |
62 | 128 |
The SEB share
Rating
| Moody's Outlook Positive |
Standard & Poor's Outlook Stable |
Fitch Outlook Positive |
DBRS Outlook Stable |
||||
|---|---|---|---|---|---|---|---|
| Short | Long | Short | Long | Short | Long | Short | Long |
| P-1 | Aaa | A-1+ | AAA | F1+ | AAA | R-1 (high) | AAA |
| P-2 | Aa1 | A-1 | AA+ | F1 | AA+ | R-1 (middle) | AA (high) |
| P-3 | Aa2 | A-2 | AA | F2 | AA | R-1 (low) | AA |
| Aa3 | A-3 | AA- | F3 | AA- | R-2 (high) | AA (low) | |
| A1 | A+ | A+ | R-2 (middle) | A | |||
| A2 | A | A | R-2 (low) | BBB | |||
| A3 | A- | A- | R-3 | BB | |||
| Baa1 | BBB+ | BBB+ | R-4 | B | |||
| Baa2 | BBB | BBB | R-5 | CCC CC C | |||
| Baa3 | BBB- | BBB- | D | D | |||
| få=gìäó=OMMTI=jççÇóÛë=ÅÜ~åÖÉÇ=pb_Ûë=çìíäççâ=Ñêçã=ëí~ÄäÉ=íç=éçëáíáîÉK= |
SEB's major shareholders
| Share of capital, | |
|---|---|
| December 2007 | per cent |
| Investor AB | 20.0 |
| Trygg Foundation | 9.6 |
| Alecta | 3.6 |
| Swedbank Robur Funds | 2.6 |
| AFA Försäkring | 2.5 |
| SHB/SPP mutul funds | 1.9 |
| SEB mutual funds | 1.5 |
| Wallenberg Foundations | 1.5 |
| Nordea mutual funds | 1.4 |
| Foreign shareholders Source: VPC/SIS Ägarservice |
23.6 |
Additional Information 2007
STOCKHOLM 7 FEBRUARY 2008
Appendix 1 Division Life
pb_=qêóÖÖ=iáî=áë=çåÉ=çÑ=íÜÉ=äÉ~ÇáåÖ=äáÑÉ=áåëìê~åÅÉ=Öêçìéë=áå= íÜÉ=kçêÇáÅ=êÉÖáçåK=léÉê~íáçåë=ÅçãéêáëÉ=áåëìê~åÅÉ= ëçäìíáçåë=ïáíÜáå=íÜÉ=áåîÉëíãÉåí=~åÇ=ëçÅá~ä=ëÉÅìêáíó=~êÉ~=Ñçê= áåÇáîáÇì~äë=~åÇ=Åçêéçê~íáçåëK=pb_=qêóÖÖ=iáî=éêçîáÇÉë=ÄçíÜ= ìåáíJäáåâÉÇ=~åÇ=íê~Çáíáçå~ä=áåëìê~åÅÉK=qÜÉ=Çáîáëáçå= çéÉê~íÉë=áå=pïÉÇÉåI=aÉåã~êâI=cáåä~åÇI=fêÉä~åÇI= iìñÉãÄçìêÖI=bëíçåá~I=i~íîá~=~åÇ=iáíÜì~åá~K=få=râê~áåÉ=~= ëìÄëáÇá~êó=áë=ìåÇÉê=Éëí~ÄäáëÜãÉåíK=qÜÉ=Çáîáëáçå=ëÉêîÉë= ÅäçëÉ=íç=O=ãáääáçå=ÅìëíçãÉêëK=
Comments on 2007
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SEB Trygg Liv, Sweden
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Market position
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Significant occupational pension business
`çêéçê~íÉ=ë~äÉë=Ü~îÉ=Öê~Çì~ääó=Öêçïå=~åÇ=áåÅêÉ~ëÉÇ=íÜÉ= ëÜ~êÉ=çÑ=íçí~ä=ë~äÉëK=aìêáåÖ=OMMT=íÜÉ=ëÜ~êÉ=ï~ë=TO=éÉê=ÅÉåí= Åçãé~êÉÇ=ïáíÜ=ST=éÉê=ÅÉåí=Ñçê=éêÉîáçìë=óÉ~êK=pb_=qêóÖÖ= iáî=áë=íÜÉ=ã~êâÉí=äÉ~ÇÉê=ïáíÜáå=åÉï=ÄìëáåÉëë=ìåáíJäáåâÉÇ=
occupational pension. The market share for the twelve month period to September 2007 was 21.0 per cent (26.8).
SEB Trygg Liv also offers administration and management of pension foundations. SEB Trygg Liv Pensionstjänst (Pension Service) is the leading Swedish company in this field.
Strong in the private market
In the private market SEB Trygg Liv has a strong position within new business unit-linked endowment insurance. The market share for the twelve month period to September 2007 was 26.0 per cent (36.3). SEB Trygg Liv was the first company in 2005 to launch the new product "Kapitalpension". Kapitalpension was stopped due to legislative actions on 2 February 2007.
Sales of private pension savings are relatively stable. SEB's sales in this area consist mainly of IPS - Individual Pension Savings and "Enkla Pensionen", a unit-linked product with a guarantee.
SEB Pension, Denmark
SEB Pension's traditional life insurance operations in Denmark are carried out in a profit-sharing company and therefore included in the division's result. By hedging the investment portfolios, the market and investment risks are controlled in relation to guaranteed commitments to policyholders. Variations in investment returns can be absorbed to a great extent by accumulated buffer funds, called "collective bonus potential".
The results include accrued income of SEK 50m from the traditional life portfolios in Denmark. The amount is placed in a "shadow account", following the local Danish legislation regarding shareholder fee available for distribution in profit-sharing traditional life insurance.
SEB Pension's products
SEB Pension sells savings, life, sickness and disability insurance to private individuals and corporate clients through private and corporate sales personnel, insurance mediators and Codan Forsikring (general insurance).
Savings insurance is available both as unit-linked and traditional insurance (in a profit-sharing company). In the private market unit-linked insurance accounts for almost 90 per cent of sales, while approximately 50 per cent of the corporate market consists of traditional insurance, since certain business areas still do not allow unit-linked insurance to form part of an occupational pension plan.
The market for non-traditional life insurance, such as unit-linked, keeps expanding. This growth emanates mainly from the corporate segment, via insurance mediators.
Growing occupational pension market
The Danish occupational pension market has grown by approximately 10 per cent annually since year 2000, while the private market has shown virtually zero-growth. SEB Pension's growth rate within occupational pension has been in the range of 15-18 per cent in recent years, and the company has gained market shares, accordingly.
SEB Pension's development in the private market has been in line with the general trend. Measured in terms of premium income SEB Pension is the fourth largest life insurance company in Denmark, with a market share of nearly 10 per cent. In the unit-linked segment the market share is 17 per cent. Both figures are for full year 2006.
Distribution
Most insurance companies, including SEB Pension, have developed specialised private pension sales units that primarily concentrate on high-salary groups and customers with qualified advisory requirements.
Insurance mediators and the insurance companies' corporate sales personnel comprise the two dominant sales channels in the occupational pension market.
SEB Life & Pension, International
SEB Life & Pension International includes operating subsidiaries in Ireland, Estonia, Latvia and Lithuania. Also in Ukraine a subsidiary is being established. The Irish company also has a branch in the UK.
The operations of the Irish company SEB Life (Ireland) are focused primarily on sales of Portfolio Bond (depot investments), existing in the form of an international endowment insurance, and Personal Life Portfolio Bond (endowment pension). The sale is primarily concentrated on the Swedish market. Since 2004, the company also has a branch office in Luxembourg via SEB Private Banking, with sales focused on Swedes living abroad.
The Baltic subsidiaries are mainly focused on unitlinked insurance but also offer traditional insurance and sickness/disability insurance. 86 per cent of the sales volume is private and 14 per cent is corporate paid.
Profit & loss account
| Jan - Dec | |||||||
|---|---|---|---|---|---|---|---|
| SEKm | Q4 2007 | Q3 2007 | Q2 2007 | Q1 2007 | Q4 2006 | 2007 | 2006 |
| Income unit-linked | 553 | 538 | 548 | 503 | 479 | 2 142 | 1 775 |
| Income other insurance | 322 | 316 | 245 | 325 | 298 | 1 208 | 1 221 |
| Other income | 149 | 179 | 108 | 144 | 153 | 580 | 460 |
| Total operating income | 1 024 | 1 033 | 901 | 972 | 930 | 3 930 | 3 456 |
| Operating expenses | -623 | -528 | -577 | -578 | -624 | -2 306 | -2 408 |
| Other expenses | 7 | -11 | -1 | -7 | 2 | -12 | -35 |
| Change in deferred acquisition costs | 67 | 7 | 45 | 71 | 151 | 190 | 507 |
| Total expenses | -549 | -532 | -533 | -514 | -471 | -2 128 | -1 936 |
| Operating profit 1) | 475 | 501 | 368 | 458 | 459 | 1 802 | 1 520 |
| Change in surplus value, net | 431 | 275 | 323 | 244 | 359 | 1 273 | 1 655 |
| Business result | 906 | 776 | 691 | 702 | 818 | 3 075 | 3 175 |
| Financial effects due to market fluctuations 2) | -436 | -322 | 353 | 343 | 433 | -62 | 528 |
| Change in assumptions 2) | 53 | 0 | 0 | 0 | -72 | 53 | -72 |
| Total result | 523 | 454 | 1 044 | 1 045 | 1 179 | 3 066 | 3 631 |
| Business equity | 7 500 | 7 500 | 7 500 | 7 500 | 7 000 | 7 500 | 7 000 |
| Return on business equity 3) | |||||||
| based on operating profit, % | 22,3% | 23,5% | 17,3% | 21,5% | 23,1% | 21,1% | 19,1% |
| based on business result, % | 42,5% | 36,4% | 32,4% | 32,9% | 41,1% | 36,1% | 39,9% |
| Expense ratio, % 4) | 8,0 | 9,1 | 9,7 | 8,5 | 6,7 | 8,7 | 7,7 |
| 1) SEB Trygg Liv, Sweden | 320 | 329 | 283 | 289 | 284 | 1 221 | 998 |
| SEB Pension, Denmark | 111 | 153 | 69 | 139 | 142 | 472 | 422 |
| SEB Life & Pension, International | 51 | 59 | 42 | 64 | 53 | 216 | 224 |
| Other including central functions etc | -7 | -40 | -26 | -34 | -20 | -107 | -124 |
| 475 | 501 | 368 | 458 | 459 | 1 802 | 1 520 |
2) Effect on surplus values.
3) Annual basis after 12 per cent tax which reflects the divisions effective tax rate.
4) Operating expenses as percentage of premium income.
Note that compared to the report Jan-Sep 2007 there has been som changes between lines.
-
Risk result in the UL business has been moved from Income unit-linked to Income other insurance.
-
Investment return in the shareholders equity portfolio in SEB Pension has been moved from Income other insurance to Other income.
-
Amortisation of intangible assets has been moved from Other expenses to Operating expenses.
-
Minor adjustments in Operating profit between business areas.
Sales volume insurance (weighted)
| Jan - Dec | |||||||
|---|---|---|---|---|---|---|---|
| SEKm | Q4 2007 | Q3 2007 | Q2 2007 | Q1 2007 | Q4 2006 | 2007 | 2006 |
| To tal |
12 018 | 9 667 | 10 668 | 11 986 | 13 249 | 44 339 | 47 701 |
| S EB Trygg Liv Sweden |
6 718 | 5 173 | 6 689 | 7 691 | 8 245 | 26 271 | 31 242 |
| Tr aditional life and sickness/health insurance |
510 | 342 | 435 | 504 | 529 | 1 791 | 1 889 |
| Un it-linked insurance |
6 208 | 4 831 | 6 254 | 7 187 | 7 716 | 24 480 | 29 353 |
| Private paid | 1 683 | 976 | 1 455 | 1 731 | 3 164 | 5 845 | 9 538 |
| Corporate paid | 5 035 | 4 197 | 5 234 | 5 960 | 5 081 | 20 426 | 21 704 |
| S EB Pension Denmark |
3 667 | 3 360 | 3 023 | 3 551 | 3 386 | 13 601 | 12 970 |
| Tr aditional life and sickness/health insurance* |
1 811 | 1 833 | 1 382 | 1 467 | 1 428 | 6 493 | 5 601 |
| Un it-linked insurance |
1 856 | 1 527 | 1 641 | 2 084 | 1 958 | 7 108 | 7 369 |
| Private paid | 852 | 495 | 684 | 1 009 | 915 | 3 040 | 2 912 |
| Corporate paid | 2 815 | 2 865 | 2 339 | 2 542 | 2 471 | 10 561 | 10 058 |
| S EB Life & Pension International |
1 633 | 1 134 | 956 | 744 | 1 618 | 4 467 | 3 489 |
| Tr aditional life and sickness insurance |
192 | 150 | 132 | 165 | 199 | 639 | 614 |
| Un it-linked insurance |
1 441 | 984 | 824 | 579 | 1 419 | 3 828 | 2 875 |
| Private paid | 1 320 | 823 | 679 | 573 | 1 462 | 3 395 | 3 116 |
| Corporate paid | 313 | 311 | 277 | 171 | 156 | 1 072 | 373 |
| * Adjustment sickness/health insurance | |||||||
| compared to previous report | -132 | 132 | 171 | 0 | 576 |
Premium income and Assets under management
| Jan - Dec |
|---|
| 2007 2006 |
| 26 370 31 082 |
| 15 370 21 259 |
| 3 280 3 477 |
| 12 090 17 782 |
| 7 219 6 505 |
| 4 588 4 238 |
| 2 631 2 267 |
| 3 781 3 318 |
| 261 511 |
| 3 520 2 807 |
| 408 400 395 300 |
| 303 600 295 400 |
| 192 700 194 200 |
| 110 900 101 200 |
| 87 300 84 700 |
| 79 000 80 400 |
| 8 300 4 300 |
| 17 500 15 200 |
| 500 1 000 |
| 17 000 14 200 |
* rounded to whole 100 millions
pb_=^ÇÇáíáçå~ä=fåÑçêã~íáçå=OMMT= Q
Surplus value accounting
| Jan - Dec | |||||||
|---|---|---|---|---|---|---|---|
| SEKm | 04 2007 | 03 2007 | Q2 2007 | Q1 2007 | 04 2006 | 2007 | 2006 |
| Surplus values, opening balance | 14 085 | 14 130 | 13 4 52 | 12872 | 12 148 | 12872 | 10755 |
| Adjustment opening balance 17 | 334 | 334 | |||||
| Present value of new sales 2) | 576 | 319 | 396 | 482 | 765 | 1 7 7 3 | 2 545 |
| Return/realised value on policies from previous periods | $-127$ | -78 | -68 | $-62$ | -45 | $-335$ | $-173$ |
| Actual outcome compared to assumptions 3) | 49 | 41 | 40 | $-105$ | $-210$ | 25 | $-210$ |
| Change in surplus values ongoing business, gross | 498 | 282 | 368 | 315 | 510 | 1463 | 2 1 6 2 |
| Capitalisation of acquisition costs for the period | $-196$ | $-125$ | $-173$ | $-189$ | $-243$ | $-683$ | $-911$ |
| Amortisation of capitalised acquisition costs | 129 | 118 | 128 | 118 | 92 | 493 | 404 |
| Change in surplus values ongoing business, net 4) | 431 | 275 | 323 | 244 | 359 | 1 2 7 3 | 1655 |
| Financial effects due to short term market fluctuations 5) | $-436$ | $-322$ | 353 | 343 | 433 | $-62$ | 528 |
| Change in assumptions b) | 53 | -72 | 53 | $-72$ | |||
| Total change in surplus values | 48 | -47 | 676 | 587 | 720 | 1 2 6 4 | 2 1 1 1 |
| Exchange rate differences etc | 29 | 2 | $\overline{c}$ | $-7$ | 4 | 26 | 6 |
| Surplus values, closing balance " | 14 4 96 | 14 085 | 14 130 | 13452 | 12872 | 14 496 | 12872 |
1) The Baltics is included for the first time in Q4 2007.
2) Sales defined as new contracts and extra premiums in existing contracts.
3) The reported actual outcome of contracts signed can be placed in relation to the operative assumptions that were made. Thus, the value of the deviations can be estimated. The most important components consist of extensions of contracts as well as cancellations. However, the actual income and administrative expenses are included in full in the operating result.
$4)$ Deferred acquisition costs are capitalised in the accounts and amortised according to plan. The reported change in surplus values is therefore adjusted by the net result of the capitalisation and amortisation during the period.
5) Assumed unit growth is 6 per cent, i.e. 1.5 per cent per quarter. Actual growth results in positive or negative financial effects.
$^{6}$ In 2006 the assumption of a 1% transfer of ITPK policies was introduced in Sweden with a negative effect. The surrender rate was changed from 10 per cent to 6 or 12 per cent depending on years past since the sign of contracts. Administrative costs per policy were also adjusted with a positive effect. Main changes in 2007: Administrative costs per policy were adjusted with a positive effect. In Sweden the surrender rate was adjusted from $6/6/12$ per cent to $1/10/12$ per cent depending on years past since the sign of contracts (within $1/5/10$ years). This change had a negative effect.
$\frac{7}{1}$ Estimated surplus value according to the above are not included in the SEB Group's consolidated accounts. The closing balance is shown after the deduction of capitalised acquisition costs (SEK 3,027m at December 31, 2007).
Surplus values
Surplus values are the present values of future profits from written insurance policies. They are calculated to better evaluate the profitability of a life insurance business since an insurance policy often has a long duration. Income accrues regularly throughout the duration of the policy. Costs, on the other hand, mainly arise at the point of sale, which leads to an imbalance between income and costs at the time when a policy is signed.
SEB Trygg Liv uses the method of surplus value calculations since 1997 for both internal management accounting and external reporting. The reporting is according to international practice and is reviewed by an external party annually. Surplus values are not consolidated in the SEB Group accounts. For the Danish business, surplus values are included for the unit linked business but not for the traditional insurance business. For traditional insurance in Denmark, profit distribution between shareholders and policyholders is defined by the so-called contribution principle. The Baltic insurance business is included from O4 2007.
Assumptions for calculating surplus values
The surplus value calculation is based on different assumptions, which are adjusted when necessary to correspond to the long-term actual development.
| Discount rate | 8% |
|---|---|
| Surrender of endowment insurance | |
| contracts, Sweden: contracts signed | |
| within 1 year $/5$ years $/$ thereafter | 1%/10%/12% |
| Surrender of insurance contracts, Denmark | 6% |
| Lapse rate of regular premiums, unit-linked | 10% |
| Growth in fund units, Sweden | 6% |
| Growth in fund units, Denmark | 5.1% |
| Inflation CPI / Inflation expenses | 2%/3% |
| Right to transfer policy (unit-linked) | $1\%$ |
| According to the | |
| Group's | |
| Mortality | experience |
The sensitivity analysis
The calculation of surplus values is relatively sensitive to changes in assumptions. A change of the discount rate by $+1/-1$ percentage point gives an effect in surplus values of SEK-1,452/+1,707m. A higher or lower actual
return/growth in fund units will result in positive or negative effects when the surplus value change of the period is calculated. A change in the growth assumption by $+1/-1$ percentage point will give a change in surplus values of SEK +1,496/-1,315m.
New business profit
One way of measuring profitability of sales is to calculate the new business profit. Profit from new business, the net of present value of new sales and sales expenses, is measured in relation to the weighted sales volume.
| Full year 2007 | Full year 2006 | Full year 2005 | Full year 2004 |
|---|---|---|---|
| 3689 | 3 3 4 5 | 3678 | 2962 |
| 1 7 7 5 | 1 788 | 1924 | 1525 |
| $-901$ | $-970$ | $-1116$ | $-947$ |
| 874 | 818 | 808 | 578 |
| 23.7% | 24.5% | 22.0% | 19,5% |
2007 is calculated for the total Division. 2004 - 2006 is business area Sweden.
| The effect of Denmark and the Baltics: | |
|---|---|
| Sales volume weighted (regular $+$ single/10) | 845 |
| Profit from new business | 224 |
| Sales margin new business | 0.8% |
Embedded value
| SEKm | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2005 | 31 Dec 2004 |
|---|---|---|---|---|
| Equity $1$ | 8836 | 8450 | 7 696 | 6482 |
| Surplus values | 14 4 9 6 | 12872 | 10755 | 7757 |
| 1) Dividend paid to the parent company during the period | $-1150$ | $-400$ |
Traditional life insurance, Sweden
Gamla Livförsäkringsaktiebolaget
Traditional insurance business is operated in Gamla Livförsäkringsaktiebolaget SEB Trygg Liv ("Gamla Liv"). The entity is operated according to mutual principles and is not consolidated in SEB Trygg Liv's result. Gamla Liv is closed for new business.
The policyholder organisation, Trygg Stiftelsen (the Trygg Foundation), has the purpose to secure policy holders' influence in Gamla Liv. The Trygg Foundation is entitled to:
- Appoint two board members of Gamla Liv and, jointly with SEB, appoint the Chairman of the Board, which consists of five members.
- Appoint the majority of members and the Chairman of the Finance Delegation, which is responsible for the asset management of Gamla Liv.
Traditional insurance business was also operated in Nya Livförsäkringsaktiebolaget SEB Trygg Liv ("Nya Liv"). In October 2007, Fondförsäkringsaktiebolaget SEB Trygg Liv and Nya Liv merged. Nya Liv was operated according to mutual principles and not consolidated in SEB Trygg Liv's results. After the merger the result of this business - with respect to investment income and insurance risk - is still allocated to the policyholders. SEB Trygg Liv, however, guarantees the contractual benefits to the policyholders in this business and in December took an unrealised loss of SEK 38m to cover these commitments.
For more facts concerning these companies see SEB Trygg Liv at www.sebgroup.com
Appendix 2 Credit Exposure
Credit Exposure by Industry, SEKbn
(before provisions for possible credit losses)
| TOTAL | ||||
|---|---|---|---|---|
| 31 Dec 2007 | % | 31 Dec 2006 | % | |
| Banks | 247.6 | 16 | 168.6 | 12.8 |
| Corporate | 572.5 | 36.9 | 485.0 | 36.9 |
| Finance and insurance | 48.7 | 3.1 | 36.3 | 2.8 |
| Wholesale and retail | 70.6 | 4.5 | 65.6 | 5,0 |
| Transportation | 53.4 | 3.4 | 46.0 | 3.5 |
| Other service sectors | 117,0 | 7.5 | 61.8 | 4.7 |
| Construction | 21,0 | 1.4 | 16.8 | 1.3 |
| Manufacturing | 157.5 | 10.2 | 125.3 | 9.5 |
| Other | 104.3 | 6.7 | 133.3 | 10.1 |
| Property Management | 210.1 | 13.5 | 190.7 | 14.5 |
| Public Administration | 87.6 | 5.6 | 96.6 | 7.3 |
| Households | 434,0 | 27.97 | 374.3 | 28.5 |
| Housing loans | 330.5 | 21.3 | 269.6 | 20.5 |
| Other | 103.5 | 6.7 | 104.7 | 8,0 |
| Total credit portfolio | 1 551.7 | 100.0 | 1 315.3 | 100.0 |
| Repos | 227.6 | 195.3 | ||
| Credit institutions | 97.2 | 82.9 | ||
| General public | 130.4 | 112.4 | ||
| Bonds and other interest bearing securities | 530.6 | 487.3 |
Credit Exposure*, Emerging Markets, SEKbn
| 31 Dec 2007 | 31 Dec 2006 | |
|---|---|---|
| Asia | 10.0 | 8.2 |
| China | 3.9 | 3.0 |
| Hong Kong | 2.2 | 2.1 |
| Korea | 1.2 | 1.0 |
| India | 1.1 | 0.8 |
| Latin America | 1.9 | 1.4 |
| Brazil | 1.3 | 0.8 |
| Eastern and Central Europe | 9.2 | 5.2 |
| Russia | 5.2 | 2.6 |
| Africa and Middle East | 2.5 | 4.0 |
| Saudi Arabia | 0.4 | 0.6 |
| Total - gross | 23.6 | 18.8 |
| Reserve | 0.1 | 0.3 |
| Total - net | 23.4 | 18.5 |
*) SEB subsidiaries domiciled in emerging market countries, the domestic (i.e. non cross-border) exposure is excluded from the above figures.
Appendix 3a Capital base of the SEB financial group of undertakings
| 31 December | 31 December | |
|---|---|---|
| SEKm | 2007 | 2006 |
| Total equity according to balance sheet (1) | 76 719 | 67 267 |
| ./. Proposed dividend (excl repurchased shares) | -4 442 | -4 070 |
| ./. Deductions for investments outside the financial group of undertakings (2) | -81 | |
| ./. Other deductions outside the financial group of undertakings (3) | -2 975 | -2 622 |
| =Total equity in the capital adequacy | 69 221 | 60 575 |
| Core capital contribution | 10 907 | 7 543 |
| Adjustment for hedge contracts (4) | 237 | 51 |
| Net provisioning amount for IRB-reported credit exposures (5) | -235 | |
| Unrealised value changes on available-for-sale financial assets (6) | 572 | -388 |
| ./. Goodwill (7) | -6 079 | -5 341 |
| ./. Other intangible assets | -1 135 | -712 |
| ./. Deferred tax assets | -786 | -1 066 |
| = Core capital (tier 1) | 72 702 | 60 662 |
| Dated subordinated debt | 18 670 | 22 770 |
| ./. Deduction for remaining maturity | -1 414 | -1 289 |
| Perpetual subordinated debt | 14 256 | 13 973 |
| Net provisioning amount for IRB-reported credit exposures (5) | -235 | |
| Unrealised gains on available-for-sale financial assets (6) | 451 | 381 |
| ./. Deductions for investments outside the financial group of undertakings (2) | -81 | |
| = Supplementary capital (tier 2) | 31 647 | 35 835 |
| ./. Deductions for investments in insurance companies (8) | -10 592 | -10 500 |
| ./. Deductions for other investments outside the financial group of undertakings (2) | -464 | |
| ./. Deduction for pension assets in excess of related liabilities (9) | -784 | -611 |
| = Capital base | 92 973 | 84 922 |
To note:
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Appendix 3b Capital requirements for the SEB financial group of undertakings
To facilitate comparison with previous reporting, the regulatory capital requirements below are expressed also as risk weighted assets (RWA, 12.5 times the capital requirement). For operational and market risk these are derived entities, since the new regulation is formulated directly in terms of capital requirements. SEB's own capital targets are set considerably higher than the regulatory minimal.
| 31 December 2007 | Capital req't SEKm |
RWA SEKm |
|---|---|---|
| Companies that report according to Basel II (1) | ||
| Credit risk, IRB approach: Institutions | 4 5 0 6 | 56 323 |
| 21 4 20 | 267 748 | |
| Credit risk, IRB approach: Corporates (2) | ||
| Credit risk, IRB approach: Securitisations | 174 | 2 1 7 4 |
| Credit risk, IRB approach: Retail mortgages | 3 4 0 9 | 42 617 |
| Total for credit risk, IRB approach | 29 509 | 368 862 |
| Credit risk, Standardised approach (3) | 6 2 2 7 | 77840 |
| Operational risk, Basic Indicator approach | 3723 | 46 540 |
| Currency price risk | 580 | 7 2 4 8 |
| Trading book risks | 4 0 1 0 | 50 119 |
| Total, companies that report according to Basel II | 44 049 | 550 609 |
| Companies that report according to Basel I Credit risk Currency price risk Trading book risks |
14 8 60 0 41 |
185 744 $\Omega$ 511 |
| Total, companies that report according to Basel I | 14 900 | 186 255 |
| Summary | ||
| Credit risk, Basel II | 35 7 36 | 446 702 |
| Credit risk, Basel I | 14 8 60 | 185 744 |
| Operational risk | 3723 | 46 540 |
| Market risk | 4630 | 57878 |
| Total | 58 949 | 736 864 |
| Adjustment for flooring rules | ||
| Additional requirement according to transitional flooring (4) | 8 4 0 9 | 105 110 |
| Total reported | 67 358 | 841 974 |
To note:
The capital requirement for the individual company (both in solo and in consolidated reporting) is computed either fully according to Basel I or fully according to Basel II. The companies (1) that in 31 December 2007 reporting follow Basel II are SEB AB, SEB AG and SEB Gyllenberg Ab(SEB Bolån and SEB Finans AB were merged with SEB AB during fourth quarter.)
In Basel II, counterparty risk (repos, securities lending, derivatives) in the trading book is referred to credit risk, and not to market risk as in Basel I.
Corporate exposures (2) exclude such small companies where the total exposure does not exceed certain regulatory-defined thresholds.
Reporting according to the Standardised approach (3) mainly refers to exposures to the public sector, to small companies as described in the previous paragraph, and to other household exposures than those secured by residential mortgage.
Swedish law (2006:1372) stipulates that during the year 2007 institutions should have a capital base not below 95 per cent of the capital requirement according to previous (Basel I) regulation. The addition (4) is made in consequence with this transitional rule.
Appendix 3c Capital adequacy analysis
SEB uses a gradual roll-out of the new framework, which means that the aggregate capital requirement is calculated using a combination of Basel I and Basel II rules. At the reporting as per 31 December 2007 more than 70 per cent of the total credit portfolio is reported according to the IRB approach. Operational risk reporting follows the Basic Indicator approach, awaiting supervisory processing of SEB's application to use the Advanced Measurement approach.
The part of the Group that follows Basel II reports credit risk RWA of SEK 447bn and operational risk RWA of SEK 46,5bn; a total of 493bn. The same part of the Group would report credit risk RWA of 634bn under Basel I. The lower Basel II number can be derived from considerably lower capital requirements for mortgages and for corporate exposures, while the risk weight for exposures to institutions is roughly the same under the two frameworks.
| 31 December | 31 December | |
|---|---|---|
| Capital adequacy | 2007 | 2006 |
| Capital resources | ||
| 72 702 | 60 662 | |
| Core capital (tier 1) | ||
| Capital base | 92 973 | 84 922 |
| Capital adequacy with RWA according to Basel I | ||
| Risk weighted assets | 892 473 | 740 513 |
| Core capital ratio | 8.1% | 8,2% |
| Total capital ratio | 10,4% | 11,5% |
| Capital adequacy quotient (capital base / capital requirement) | 1,30 | 1,43 |
| Capital adequacy as officially reported with transitional rules (Basel II) | ||
| Risk weighted assets | 841 974 | 740 513 |
| Core capital ratio | 8,6% | 8,2% |
| Total capital ratio | 11.0% | 11,5% |
| Capital adequacy quotient (capital base / capital requirement) | 1,38 | 1,43 |
| Capital adequacy without transitional floor (Basel II) | ||
| Risk weighted assets | 736 864 | |
| Core capital ratio | 9,9% | |
| Total capital ratio | 12,6% | |
| Capital adequacy quotient (capital base / capital requirement) | 1,58 |
The regulatory requirements can be expressed as a total capital ratio of at least 8 per cent and a core capital ratio of at least 4 per cent. However, and following the "second pillar" of the new framework, banks are expected to operate above this level. The margin supports SEB's high rating ambitions, covering risks that are not included in the capital adequacy regulation, and representing a buffer for the less benign phases of the business cycle. The Group's internal capital assessment process is based on the long term business plans and utilises SEB's economic capital model, supplemented e.g. with macro economic analysis and stress testing.
Appendix 4 Market risk
To best use the capital of the Group, and to assess the overall capital need, SEB uses an economic capital framework based on a "Capital at Risk" model. CAR gives a coherent quantification of the risks that the operations of the Group imply at each given point in time. It is based on statistical probability calculations of the Group's credit, market, insurance, operational and business risks.
The Group's total economic capital was SEK 66.6bn (52.8) at the end of the year. The increase is mainly derived from expanding business volumes but also reflects the introduction and calibration of a new generation of SEB's credit portfolio model. Out of the total, credit risk constituted the larger portion with 63 per cent. Market, insurance, operational and business risk contributes with 3, 17, 7 and 10 per cent respectively. The Group's capital
policy prescribes the allowed economic capital level, relative to available capital resources.
The Group's risk taking in trading operations is measured by so-called value at risk, VaR. The Group has chosen a level of 99 per cent probability and a ten-day period. The table below shows the risk by risk type. Average VaR level during the year was SEK 92m, compared with 96m during the calendar year 2006. During the second half of the year all VaR figures have been affected by the turbulence in the financial markets. Even though market volatility has increased, equity VaR decreased during the fourth quarter as a result of reduced positions. The increase in interest rate VaR over the last few months of the year reflects both higher market volatility and increased positions.
| SEKm | Min | Max | 31 Dec 2007 | Average 2007 | Average 2006 |
|---|---|---|---|---|---|
| Interest risk | 28 | 233 | 119 | 64 | 63 |
| Currency risk | 4 | 83 | 30 | 21 | 30 |
| Equity risk | 17 | 243 | 70 | 75 | 48 |
| Diversification | -66 | -68 | -45 | ||
| Total | 36 | 281 | 153 | 92 | 96 |
Appendix 5 Profit and loss accounts by division, business area and quarter
The SEB Group
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Net interest income | 3 596 | 3 578 | 3 503 | 3 604 | 3 767 | 3 939 | 3 917 | 4 375 | 14 281 | 15 998 |
| Net fee and commission income | 3 993 | 4 107 | 3 772 | 4 274 | 4 277 | 4 544 | 4 101 | 4 129 | 16 146 | 17 051 |
| Net financial income | 979 | 1 047 | 890 | 1 120 | 1 311 | 1 345 | 163 | 420 | 4 036 | 3 239 |
| Net life insurance income | 583 | 607 | 739 | 732 | 743 | 642 | 782 | 766 | 2 661 | 2 933 |
| Net other income | 459 | 352 | 538 | 274 | 95 | 249 | 530 | 345 | 1 623 | 1 219 |
| Total operating income | 9 610 | 9 691 | 9 442 | 10 004 | 10 193 | 10 719 | 9 493 | 10 035 | 38 747 | 40 440 |
| Staff costs | -3 722 | -3 463 | -3 443 | -3 735 | -3 796 | -3 774 | -3 564 | -3 787 | -14 363 | -14 921 |
| Other expenses | -1 736 | -1 853 | -1 664 | -1 634 | -1 678 | -1 768 | -1 691 | -1 782 | -6 887 | -6 919 |
| Depreciation of assets | -312 | -321 | -343 | -311 | -328 | -342 | -325 | -359 | -1 287 | -1 354 |
| Total operating expenses | -5 770 | -5 637 | -5 450 | -5 680 | -5 802 | -5 884 | -5 580 | -5 928 | -22 537 | -23 194 |
| Profit before credit losses etc | 3 840 | 4 054 | 3 992 | 4 324 | 4 391 | 4 835 | 3 913 | 4 107 | 16 210 | 17 246 |
| Gains less losses from assets Net credit losses including change in value |
28 | 14 | 6 | 22 | -1 | 2 | 787 | 70 | 788 | |
| of seized assets | -198 | -162 | -136 | -222 | -234 | -280 | -189 | -313 | -718 | -1 016 |
| Operating profit | 3 670 | 3 906 | 3 862 | 4 124 | 4 157 | 4 554 | 3 726 | 4 581 | 15 562 | 17 018 |
| Income tax expense | -843 | -959 | -803 | -334 | -895 | -1 032 | -625 | -824 | -2 939 | -3 376 |
| Net profit | 2 827 | 2 947 | 3 059 | 3 790 | 3 262 | 3 522 | 3 101 | 3 757 | 12 623 | 13 642 |
| Attributable to minority interests | 5 | 4 | 6 | 3 | 4 | 8 | 7 | 5 | 18 | 24 |
| Attributable to equity holders | 2 822 | 2 943 | 3 053 | 3 787 | 3 258 | 3 514 | 3 094 | 3 752 | 12 605 | 13 618 |
Merchant Banking
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Net interest income* | 1 280 | 1 283 | 1 174 | 1 072 | 1 323 | 1349 | 1 370 | 1 498 | 4 809 | 5 540 |
| Net fee and commission income | 1 479 | 1 504 | 1 376 | 1 515 | 1 557 | 1625 | 1 357 | 1 351 | 5 874 | 5 890 |
| Net financial income* | 875 | 847 | 695 | 1 259 | 1 094 | 1050 | -28 | 169 | 3 676 | 2 285 |
| Net other income | 196 | 225 | 193 | 165 | 45 | 170 | 403 | 166 | 779 | 784 |
| Total operating income | 3 830 | 3 859 | 3 438 | 4 011 | 4 019 | 4 194 | 3 102 | 3 184 | 15 138 | 14 499 |
| Staff costs | -1 184 | -887 | -953 | -1 058 | -1 117 | -1159 | -908 | -1 033 | -4 082 | -4 217 |
| Other expenses | -760 | -881 | -830 | -756 | -826 | -857 | -882 | -867 | -3 227 | -3 432 |
| Depreciation of assets | -25 | -18 | -21 | -25 | -23 | -17 | -18 | -24 | -89 | -82 |
| Total operating expenses | -1 969 | -1 786 | -1 804 | -1 839 | -1 966 | -2 033 | -1 808 | -1 924 | -7 398 | -7 731 |
| Profit before credit losses etc | 1 861 | 2 073 | 1 634 | 2 172 | 2 053 | 2 161 | 1 294 | 1 260 | 7 740 | 6 768 |
| Gains less losses from assets | -18 | 3 | 13 | 2 | -2 | 2 | ||||
| Net credit losses | -54 | -85 | -80 | -101 | -113 | -115 | -32 | -63 | -320 | -323 |
| Operating profit | 1 789 | 1 988 | 1 557 | 2 084 | 1 940 | 2 046 | 1 262 | 1 199 | 7 418 | 6 447 |
* Isolated quarterly effects from structured products in 2006, shifting income to net interest income from net financial income,
were: Q1: SEK 5m; Q2: SEK 41m; Q3: 72m; Q4: SEK 201m.
Merchant Banking
Trading and Capital Markets
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Net interest income* | 283 | 184 | 126 | -91 | 146 | 94 | 139 | 231 | 502 | 610 |
| Net fee and commission income | 704 | 621 | 483 | 652 | 629 | 715 | 617 | 649 | 2 460 | 2 610 |
| Net financial income* | 866 | 813 | 698 | 1 285 | 1 084 | 1 030 | -79 | 100 | 3 662 | 2 135 |
| Net other income | 7 | 206 | 19 | 1 | 9 | 17 | 282 | 8 | 233 | 316 |
| Total operating income | 1 860 | 1 824 | 1 326 | 1 847 | 1 868 | 1 856 | 959 | 988 | 6 857 | 5 671 |
| Staff costs | -571 | -419 | -452 | -503 | -531 | -561 | -430 | -489 | -1 945 | -2 011 |
| Other expenses | -316 | -358 | -352 | -312 | -350 | -356 | -369 | -367 | -1 338 | -1 442 |
| Depreciation of assets | -8 | -6 | -6 | -8 | -7 | -7 | -6 | -9 | -28 | -29 |
| Total operating expenses | -895 | -783 | -810 | -823 | -888 | -924 | -805 | -865 | -3 311 | -3 482 |
| Profit before credit losses etc | 965 | 1 041 | 516 | 1 024 | 980 | 932 | 154 | 123 | 3 546 | 2 189 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -7 | -14 | -15 | 21 | -23 | -25 | -38 | -15 | -86 | |
| Operating profit | 958 | 1 027 | 501 | 1 045 | 957 | 907 | 116 | 123 | 3 531 | 2 103 |
* Isolated quarterly effects from structured products in 2006, shifting income to net interest income from net financial income,
were: Q1: SEK 5m; Q2: SEK 41m; Q3: 72m; Q4: SEK 201m.
Merchant Banking
Corporate Banking
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Net interest income | 746 | 792 | 765 | 820 | 852 | 870 | 852 | 911 | 3 123 | 3 485 |
| Net fee and commission income | 425 | 512 | 552 | 500 | 541 | 515 | 365 | 313 | 1 989 | 1 734 |
| Net financial income | -21 | 9 | -21 | -43 | -13 | -1 | 26 | 42 | -76 | 54 |
| Net other income | 185 | 16 | 168 | 153 | 31 | 145 | 116 | 151 | 522 | 443 |
| Total operating income | 1 335 | 1 329 | 1 464 | 1 430 | 1 411 | 1 529 | 1 359 | 1 417 | 5 558 | 5 716 |
| Staff costs | -505 | -376 | -404 | -442 | -480 | -486 | -377 | -430 | -1 727 | -1 773 |
| Other expenses | -132 | -202 | -176 | -115 | -172 | -182 | -207 | -144 | -625 | -705 |
| Depreciation of assets | -16 | -12 | -13 | -15 | -14 | -8 | -11 | -12 | -56 | -45 |
| Total operating expenses | -653 | -590 | -593 | -572 | -666 | -676 | -595 | -586 | -2 408 | -2 523 |
| Profit before credit losses etc | 682 | 739 | 871 | 858 | 745 | 853 | 764 | 831 | 3 150 | 3 193 |
| Gains less losses from assets | -18 | 3 | 12 | 2 | -3 | 2 | ||||
| Net credit losses | -45 | -69 | -63 | -125 | -90 | -88 | 9 | -64 | -302 | -233 |
| Operating profit | 619 | 670 | 811 | 745 | 655 | 765 | 773 | 769 | 2 845 | 2 962 |
Merchant Banking
Global Transaction Services
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Net interest income | 251 | 307 | 282 | 344 | 325 | 386 | 379 | 355 | 1 184 | 1 445 |
| Net fee and commission income | 349 | 370 | 342 | 364 | 388 | 394 | 375 | 389 | 1 425 | 1 546 |
| Net financial income | 29 | 25 | 18 | 17 | 23 | 22 | 25 | 26 | 89 | 96 |
| Net other income | 5 | 4 | 5 | 11 | 4 | 8 | 4 | 9 | 25 | 25 |
| Total operating income | 634 | 706 | 647 | 736 | 740 | 810 | 783 | 779 | 2 723 | 3 112 |
| Staff costs | -108 | -92 | -97 | -113 | -105 | -113 | -100 | -115 | -410 | -433 |
| Other expenses | -312 | -321 | -303 | -329 | -305 | -319 | -306 | -354 | -1 265 | -1 284 |
| Depreciation of assets | -1 | -1 | -1 | -2 | -2 | -2 | -2 | -2 | -5 | -8 |
| Total operating expenses | -421 | -414 | -401 | -444 | -412 | -434 | -408 | -471 | -1 680 | -1 725 |
| Profit before credit losses etc | 213 | 292 | 246 | 292 | 328 | 376 | 375 | 308 | 1 043 | 1 387 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -1 | -1 | -1 | 2 | -2 | -2 | -1 | -4 | ||
| Operating profit | 212 | 291 | 245 | 294 | 328 | 374 | 373 | 308 | 1 042 | 1 383 |
R etail Banking
Total
| = | Q 1 | Q 2 | Q 3 = |
Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Fu ll year |
Full yea r |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Net interest income | 1 995 | 2 083 | 2 205 | 2 231 | 2 338 | 2 426 | 2 495 | 2 629 | 8 514 | 9 888 |
| N et fee and commission income |
1 438 | 1 479 | 1 317 | 1 518 | 1 526 | 1 584 | 1 517 | 1 647 | 5 752 | 6 274 |
| N et financial income |
119 | 148 | 128 | 219 | 166 | 245 | 156 | 245 | 614 | 812 |
| N et other income |
22 | 47 | 114 | 52 | 35 | 55 | 60 | 98 | 235 | 248 |
| To tal operating income |
3 574 | 3 757 | 3 764 | 4 020 | 4 065 | 4 310 | 4 228 | 4 619 | 15 115 | 17 222 |
| St aff costs |
-1 174 | -1 220 | -1 254 | -1 237 | -1 231 | -1 290 | -1 315 | -1 333 | -4 885 | -5 169 |
| Other expenses | -1 073 | -1 080 | -971 | -1 079 | -1 065 | -1076 | -1 020 | -1 153 | -4 203 | -4 314 |
| Depreciation of assets | -104 | -115 | -120 | -101 | -102 | -116 | -106 | -111 | -440 | -435 |
| To tal operating expenses |
-2 351 | -2 415 | -2 345 | -2 417 | -2 398 | -2 482 | -2 441 | -2 597 | -9 528 | -9 918 |
| P rofit before credit losses etc |
1 223 | 1 342 | 1 419 | 1 603 | 1 667 | 1 828 | 1 787 | 2 022 | 5 587 | 7 304 |
| G ains less losses from assets |
17 | 14 | 3 | 11 | 3 | 2 | 45 | 5 | ||
| N et credit losses |
-132 | -95 | -60 | -125 | -119 | -160 | -146 | -293 | -412 | -718 |
| Operating profit | 1 108 | 1 261 | 1 362 | 1 489 | 1 548 | 1 668 | 1 644 | 1 731 | 5 220 | 6 591 |
Retail Banking
etail Sweden R
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Net interest income | 923 | 960 | 976 | 981 | 975 | 977 | 983 | 1 047 | 3 840 | 3 982 |
| Net fee and commission income | 471 | 455 | 345 | 474 | 462 | 415 | 409 | 459 | 1 745 | 1 745 |
| Net financial income | 43 | 58 | 39 | 109 | 56 | 77 | 65 | 105 | 249 | 303 |
| Net other income | 3 | 5 | 4 | 3 | 5 | 5 | 15 | 10 | ||
| Total operating income | 1 440 | 1 478 | 1 364 | 1 567 | 1 498 | 1 474 | 1 457 | 1 611 | 5 849 | 6 040 |
| Staff costs | -428 | -441 | -477 | -444 | -429 | -443 | -444 | -435 | -1 790 | -1 751 |
| Other expenses | -466 | -494 | -407 | -474 | -441 | -447 | -425 | -486 | -1 841 | -1 799 |
| Depreciation of assets | -2 | -10 | -2 | -5 | -4 | -14 | -4 | -5 | -19 | -27 |
| Total operating expenses | -896 | -945 | -886 | -923 | -874 | -904 | -873 | -926 | -3 650 | -3 577 |
| Profit before credit losses etc | 544 | 533 | 478 | 644 | 624 | 570 | 584 | 685 | 2 199 | 2 463 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -26 | -13 | -21 | -21 | -25 | -19 | -22 | 2 | -81 | -64 |
| Operating profit | 518 | 520 | 457 | 623 | 599 | 551 | 562 | 687 | 2 118 | 2 399 |
R etail Banking
| R etail Estonia |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
Q 1 2006 |
Q 2 2006 |
Q 3 2006 |
Q 4 2006 |
Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Full year 2006 |
Full year 2007 |
| N et interest income |
144 | 162 | 173 | 193 | 211 | 225 | 235 | 254 | 672 | 925 |
| N et fee and commission income |
76 | 92 | 90 | 87 | 98 | 138 | 100 | 112 | 345 | 448 |
| N et financial income |
17 | 24 | 19 | 32 | 39 | 38 | 36 | 11 | 92 | 124 |
| N et other income |
6 | 13 | 8 | 8 | 8 | 13 | 6 | 23 | 35 | 50 |
| To tal operating income |
243 | 291 | 290 | 320 | 356 | 414 | 377 | 400 | 1 144 | 1 547 |
| St aff costs |
-66 | -70 | -72 | -76 | -84 | -103 | -92 | -95 | -284 | -374 |
| Other expenses | -34 | -31 | -36 | -45 | -44 | -48 | -41 | -50 | -146 | -183 |
| Depreciation of assets | -12 | -10 | -11 | -8 | -9 | -9 | -9 | -8 | -41 | -35 |
| To tal operating expenses |
-112 | -111 | -119 | -129 | -137 | -160 | -142 | -153 | -471 | -592 |
| P rofit before credit losses etc |
131 | 180 | 171 | 191 | 219 | 254 | 235 | 247 | 673 | 955 |
| G ains less losses from assets |
13 | 5 | 13 | 31 | ||||||
| N et credit losses |
-3 | 2 | -6 | -13 | -12 | -17 | -32 | -158 | -20 | -219 |
| O perating profit |
141 | 182 | 170 | 191 | 207 | 237 | 203 | 89 | 684 | 736 |
Retail Banking
| R etail Latvia |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
Q 1 2006 |
Q 2 2006 |
Q 3 2006 |
Q 4 2006 |
Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Full year 2006 |
Full year 2007 |
| Net interest income | 172 | 195 | 214 | 244 | 252 | 309 | 318 | 330 | 825 | 1 209 |
| Net fee and commission income | 55 | 62 | 62 | 60 | 46 | 55 | 59 | 59 | 239 | 219 |
| Net financial income | 22 | 20 | 22 | 22 | 22 | 45 | 30 | 63 | 86 | 160 |
| Net other income | 2 | 2 | 3 | 1 | 6 | 8 | 10 | 9 | 8 | 33 |
| Total operating income | 251 | 279 | 301 | 327 | 326 | 417 | 417 | 461 | 1 158 | 1 621 |
| Staff costs | -55 | -63 | -57 | -73 | -62 | -74 | -73 | -85 | -248 | -294 |
| Other expenses | -41 | -42 | -36 | -43 | -49 | -48 | -50 | -57 | -162 | -204 |
| Depreciation of assets | -19 | -18 | -18 | -17 | -17 | -18 | -17 | -19 | -72 | -71 |
| Total operating expenses | -115 | -123 | -111 | -133 | -128 | -140 | -140 | -161 | -482 | -569 |
| Profit before credit losses etc | 136 | 156 | 190 | 194 | 198 | 277 | 277 | 300 | 676 | 1 052 |
| Gains less losses from assets | 4 | -1 | 1 | 3 | 1 | |||||
| Net credit losses | 2 | -6 | 3 | -24 | -8 | -30 | -29 | -45 | -25 | -112 |
| Operating profit | 142 | 150 | 192 | 170 | 190 | 247 | 249 | 255 | 654 | 941 |
== Retail Banking
| R etail Lithuania |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
Q 1 2006 |
Q 2 2006 |
Q 3 2006 |
Q 4 2006 |
Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Full year 2006 |
Full year 2007 |
| N et interest income |
201 | 234 | 265 | 272 | 339 | 368 | 404 | 447 | 972 | 1 558 |
| N et fee and commission income |
82 | 83 | 83 | 85 | 103 | 131 | 131 | 132 | 333 | 497 |
| N et financial income |
41 | 44 | 49 | 58 | 50 | 83 | 27 | 45 | 192 | 205 |
| N et other income |
7 | 7 | 9 | 11 | 10 | 14 | 7 | 34 | 34 | 65 |
| To tal operating income |
331 | 368 | 406 | 426 | 502 | 596 | 569 | 658 | 1 531 | 2 325 |
| St aff costs |
-81 | -87 | -87 | -92 | -102 | -104 | -111 | -127 | -347 | -444 |
| Other expenses | -60 | -53 | -60 | -68 | -65 | -75 | -73 | -95 | -241 | -308 |
| Depreciation of assets | -19 | -17 | -21 | -16 | -18 | -18 | -17 | -18 | -73 | -71 |
| To tal operating expenses |
-160 | -157 | -168 | -176 | -185 | -197 | -201 | -240 | -661 | -823 |
| P rofit before credit losses etc |
171 | 211 | 238 | 250 | 317 | 399 | 368 | 418 | 870 | 1 502 |
| G ains less losses from assets |
14 | 2 | 2 | 16 | 2 | |||||
| N et credit losses |
-12 | -12 | -7 | -10 | -12 | -43 | -33 | -35 | -41 | -123 |
| O perating profit |
159 | 213 | 233 | 240 | 305 | 356 | 337 | 383 | 845 | 1 381 |
Retail Banking
etail Germany R
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Net interest income | 452 | 435 | 475 | 456 | 473 | 471 | 469 | 484 | 1 818 | 1 897 |
| Net fee and commission income | 337 | 325 | 291 | 326 | 374 | 350 | 350 | 330 | 1 279 | 1 404 |
| Net financial income | -3 | 1 | -1 | -2 | 3 | -5 | 3 | |||
| Net other income | -2 | 13 | 14 | 23 | 5 | 4 | 31 | 16 | 48 | 56 |
| Total operating income | 784 | 774 | 779 | 803 | 852 | 825 | 850 | 833 | 3 140 | 3 360 |
| Staff costs | -385 | -392 | -395 | -391 | -383 | -394 | -429 | -421 | -1 563 | -1 627 |
| Other expenses | -307 | -298 | -298 | -271 | -321 | -298 | -293 | -289 | -1 174 | -1 201 |
| Depreciation of assets | -44 | -53 | -61 | -46 | -48 | -49 | -49 | -51 | -204 | -197 |
| Total operating expenses | -736 | -743 | -754 | -708 | -752 | -741 | -771 | -761 | -2 941 | -3 025 |
| Profit before credit losses etc | 48 | 31 | 25 | 95 | 100 | 84 | 79 | 72 | 199 | 335 |
| Gains less losses from assets | -2 | -3 | -1 | 2 | -5 | 1 | ||||
| Net credit losses | -60 | -41 | -11 | -44 | -31 | -16 | -11 | -8 | -156 | -66 |
| Operating profit | -12 | -10 | 12 | 48 | 68 | 68 | 68 | 66 | 38 | 270 |
Retail Banking
| Card s |
|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| N et interest income |
103 | 98 | 102 | 85 | 89 | 77 | 85 | 66 | 388 | 317 |
| N et fee and commission income |
416 | 456 | 441 | 479 | 436 | 487 | 462 | 543 | 1 792 | 1 928 |
| Ne t financial income |
17 | 17 | ||||||||
| N et other income |
5 | 14 | 78 | 12 | 8 | 16 | 12 | 23 | 109 | 59 |
| To tal operating income |
524 | 568 | 621 | 576 | 533 | 580 | 559 | 649 | 2 289 | 2 321 |
| St aff costs |
-159 | -166 | -167 | -163 | -170 | -173 | -165 | -171 | -655 | -679 |
| Other expenses | -164 | -163 | -132 | -177 | -145 | -155 | -141 | -170 | -636 | -611 |
| Depreciation of assets | -8 | -7 | -7 | -7 | -8 | -8 | -9 | -9 | -29 | -34 |
| T otal operating expenses |
-331 | -336 | -306 | -347 | -323 | -336 | -315 | -350 | -1 320 | -1 324 |
| P rofit before credit losses etc |
193 | 232 | 315 | 229 | 210 | 244 | 244 | 299 | 969 | 997 |
| G ains less losses from assets |
1 | 1 | 1 | 1 | ||||||
| N et credit losses |
-33 | -26 | -17 | -13 | -31 | -35 | -19 | -49 | -89 | -134 |
| O perating profit |
160 | 206 | 298 | 217 | 179 | 209 | 225 | 251 | 881 | 864 |
Wealth Management
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | Q 1 2006 |
Q 2 2006 |
Q 3 2006 |
Q 4 2006 |
Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Full year 2006 |
Full year 2007 |
| Net interest income | 142 | 158 | 165 | 179 | 186 | 198 | 214 | 245 | 644 | 843 |
| Net fee and commission income | 934 | 960 | 848 | 1 094 | 1 024 | 1086 | 988 | 979 | 3 836 | 4 077 |
| Net financial income | 14 | 19 | 10 | 12 | 14 | 16 | 3 | 46 | 55 | 79 |
| Net other income | 20 | 24 | 5 | 11 | 6 | 27 | 13 | 40 | 60 | 86 |
| Total operating income | 1 110 | 1 161 | 1 028 | 1 296 | 1 230 | 1 327 | 1 218 | 1 310 | 4 595 | 5 085 |
| Staff costs | -338 | -371 | -355 | -376 | -383 | -349 | -357 | -386 | -1 440 | -1 475 |
| Other expenses | -189 | -206 | -199 | -207 | -215 | -207 | -222 | -258 | -801 | -902 |
| Depreciation of assets | -11 | -12 | -13 | -15 | -14 | -22 | -13 | -14 | -51 | -63 |
| Total operating expenses | -538 | -589 | -567 | -598 | -612 | -578 | -592 | -658 | -2 292 | -2 440 |
| Profit before credit losses etc | 572 | 572 | 461 | 698 | 618 | 749 | 626 | 652 | 2 303 | 2 645 |
| Gains less losses from assets | 29 | -1 | 29 | -1 | ||||||
| Net credit losses | 6 | 11 | 4 | 4 | -4 | -5 | -8 | 10 | 25 | -7 |
| Operating profit | 607 | 583 | 465 | 702 | 614 | 743 | 618 | 662 | 2 357 | 2 637 |
Wealth Management
Asset Management
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| N et interest income |
20 | 22 | 29 | 36 | 35 | 30 | 40 | 45 | 107 | 150 |
| N et fee and commission income |
610 | 653 | 603 | 783 | 720 | 795 | 697 | 727 | 2 649 | 2 939 |
| N et financial income |
2 | 4 | 4 | 2 | 4 | 5 | 1 | 10 | 12 | |
| N et other income |
4 | 3 | 2 | 11 | 5 | 8 | 11 | 3 | 20 | 27 |
| To tal operating income |
636 | 682 | 638 | 830 | 762 | 837 | 753 | 776 | 2 786 | 3 128 |
| St aff costs |
-172 | -203 | -184 | -203 | -202 | -171 | -183 | -216 | -762 | -772 |
| Other expenses | -111 | -120 | -125 | -122 | -128 | -124 | -144 | -170 | -478 | -566 |
| Depreciation of assets | -5 | -5 | -5 | -6 | -5 | -6 | -5 | -6 | -21 | -22 |
| T otal operating expenses |
-288 | -328 | -314 | -331 | -335 | -301 | -332 | -392 | -1 261 | -1 360 |
| P rofit before credit losses etc |
348 | 354 | 324 | 499 | 427 | 536 | 421 | 384 | 1 525 | 1 768 |
| G ains less losses from assets N et credit losses |
-1 | -1 | ||||||||
| O perating profit |
348 | 354 | 324 | 499 | 427 | 535 | 421 | 384 | 1 525 | 1 767 |
Wealth Management
Private Banking
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m |
2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| N et interest income |
122 | 136 | 135 | 143 | 150 | 168 | 176 | 199 | 536 | 693 |
| N et fee and commission income |
324 | 307 | 246 | 309 | 304 | 291 | 289 | 253 | 1 186 | 1 137 |
| N et financial income |
12 | 15 | 7 | 12 | 12 | 13 | -3 | 45 | 46 | 67 |
| N et other income |
16 | 21 | 2 | 1 | 1 | 19 | 2 | 39 | 40 | 61 |
| Total operating income | 474 | 479 | 390 | 465 | 467 | 491 | 464 | 536 | 1 808 | 1 958 |
| Staff costs | -165 | -168 | -171 | -173 | -181 | -178 | -174 | -169 | -677 | -702 |
| Other expenses | -78 | -86 | -74 | -85 | -87 | -83 | -77 | -90 | -323 | -337 |
| Depreciation of assets | -6 | -7 | -8 | -9 | -8 | -17 | -8 | -9 | -30 | -42 |
| Total operating expenses | -249 | -261 | -253 | -267 | -276 | -278 | -259 | -268 | -1 030 | -1 081 |
| Profit before credit losses etc | 225 | 218 | 137 | 198 | 191 | 213 | 205 | 268 | 778 | 877 |
| Gains less losses from assets | 29 | 29 | ||||||||
| Net credit losses | 5 | 11 | 4 | 5 | -4 | -5 | -8 | 10 | 25 | -7 |
| Operating profit | 259 | 229 | 141 | 203 | 187 | 208 | 197 | 278 | 832 | 870 |
| Life | ||
|---|---|---|
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | Q 1 2006 |
Q 2 2006 |
Q 3 2006 |
Q 4 2006 |
Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Full year 2006 |
Full year 2007 |
| Net interest income | -2 | -4 | -5 | -4 | -9 | -6 | -6 | -7 | -15 | -28 |
| Net life insurance income | 786 | 808 | 943 | 934 | 981 | 907 | 1 039 | 1 031 | 3 471 | 3 958 |
| Net other income | 1 | -1 | ||||||||
| Total operating income | 785 | 803 | 938 | 930 | 972 | 901 | 1 033 | 1 024 | 3 456 | 3 930 |
| Staff costs | -247 | -267 | -236 | -258 | -256 | -264 | -251 | -284 | -1 008 | -1 055 |
| Other expenses | -135 | -125 | -106 | -108 | -128 | -129 | -147 | -121 | -474 | -525 |
| Depreciation of assets | -109 | -116 | -124 | -105 | -130 | -140 | -134 | -144 | -454 | -548 |
| Total operating expenses | -491 | -508 | -466 | -471 | -514 | -533 | -532 | -549 | -1 936 | -2 128 |
| Profit before credit losses etc | 294 | 295 | 472 | 459 | 458 | 368 | 501 | 475 | 1 520 | 1 802 |
| Gains less losses from assets Net credit losses |
||||||||||
| Operating profit * | 294 | 295 | 472 | 459 | 458 | 368 | 501 | 475 | 1 520 | 1 802 |
| Change in surplus values | 423 | 492 | 381 | 359 | 244 | 323 | 275 | 431 | 1 655 | 1 273 |
| Business result | 717 | 787 | 853 | 818 | 702 | 691 | 776 | 906 | 3 175 | 3 075 |
* Consolidated in the Group accounts
Other and eliminations
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year |
|---|---|---|---|---|---|---|---|---|---|
| 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| -245 | |||||||||
| 810 | |||||||||
| -29 | 33 | 57 | -370 | 37 | 34 | 32 | -40 | -309 | 63 |
| -203 | -201 | -204 | -202 | -238 | -265 | -257 | -265 | -810 | -1 025 |
| 220 | 57 | 226 | 46 | 9 | -3 | 54 | 41 | 549 | 1 01 |
| 311 | 111 | 274 | -253 | -93 | -13 | -88 | -102 | 443 | -296 |
| -779 | -718 | -645 | -806 | -809 | -712 | -733 | -751 | -2 948 | -3 005 |
| 421 | 439 | 442 | 516 | 556 | 501 | 580 | 617 | 1 818 | 2 254 |
| -63 | -60 | -65 | -65 | -59 | -47 | -54 | -66 | -253 | -226 |
| -421 | -339 | -268 | -355 | -312 | -258 | -207 | -200 | -1 383 | -977 |
| -110 | -228 | 6 | -608 | -405 | -271 | -295 | -302 | -940 | -1 273 |
| 7 82 |
|||||||||
| -18 | 7 | 2 | -3 | 33 | -11 | 32 | |||
| -128 | -221 | 6 | -610 | -403 | -271 | -299 | 514 | -953 | -459 |
| 181 142 |
58 164 |
-36 231 |
126 147 -2 |
-71 170 |
-28 249 |
-156 239 -1 |
10 152 783 |
329 684 -2 |
The SEB Group
Net fee and commission income
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Issue of securities | 42 | 99 | 51 | 98 | 32 | 197 | 45 | 61 | 290 | 335 |
| Secondary market shares* | 915 | 870 | 556 | 759 | 891 | 772 | 779 | 711 | 3 100 | 3 153 |
| Secondary market other | 109 | 154 | 63 | 205 | 177 | 166 | 107 | 148 | 531 | 598 |
| Custody and mutual funds | 1 487 | 1 535 | 1 500 | 1 662 | 1 692 | 1 923 | 1 787 | 1 763 | 6 184 | 7 165 |
| Securities commissions | 2 553 | 2 658 | 2 170 | 2 724 | 2 792 | 3 058 | 2 718 | 2 683 | 10 105 | 11 251 |
| Payments | 442 | 444 | 438 | 463 | 459 | 446 | 440 | 463 | 1 787 | 1 808 |
| Card fees | 868 | 949 | 928 | 985 | 957 | 1 039 | 1 010 | 1 087 | 3 730 | 4 093 |
| Payment commissions | 1 310 | 1 393 | 1 366 | 1 448 | 1 416 | 1 485 | 1 450 | 1 550 | 5 517 | 5 901 |
| Advisory | 403 | 372 | 511 | 456 | 499 | 337 | 321 | 316 | 1 742 | 1 473 |
| Lending | 250 | 258 | 207 | 231 | 231 | 326 | 204 | 294 | 946 | 1 055 |
| Deposits | 24 | 28 | 36 | 36 | 27 | 17 | 22 | 23 | 124 | 89 |
| Guarantees | 63 | 74 | 70 | 71 | 68 | 62 | 68 | 66 | 278 | 264 |
| Derivatives | 110 | 111 | 81 | 82 | 96 | 81 | 94 | 92 | 384 | 363 |
| Other | 181 | 193 | 222 | 253 | 226 | 268 | 275 | 235 | 849 | 1 004 |
| Other commissions | 1 031 | 1 036 | 1 127 | 1 129 | 1 147 | 1 091 | 984 | 1 026 | 4 323 | 4 248 |
| Total commission income | 4 894 | 5 087 | 4 663 | 5 301 | 5 355 | 5 634 | 5 152 | 5 259 | 19 945 | 21 400 |
| Securities commissions* | -164 | -219 | -117 | -198 | -204 | -295 | -208 | -195 | -698 | -902 |
| Payment commissions | -494 | -537 | -530 | -589 | -576 | -602 | -576 | -619 | -2 150 | -2 373 |
| Other commissions | -243 | -224 | -244 | -240 | -298 | -193 | -267 | -316 | -951 | -1 074 |
| Commission expense | -901 | -980 | -891 | -1 027 | -1 078 | -1 090 | -1 051 | -1 130 | -3 799 | -4 349 |
| Securities commissions | 2 389 | 2 439 | 2 053 | 2 526 | 2 588 | 2 763 | 2 510 | 2 488 | 9 407 | 10 349 |
| Payment commissions | 816 | 856 | 836 | 859 | 840 | 883 | 874 | 931 | 3 367 | 3 528 |
| Other commissions | 788 | 812 | 883 | 889 | 849 | 898 | 717 | 710 | 3 372 | 3 174 |
| Net fee and commission income | 3 993 | 4 107 | 3 772 | 4 274 | 4 277 | 4 544 | 4 101 | 4 129 | 16 146 | 17 051 |
| - | - | - | - | - | - | - | - | - |
* Adjusted for gross fees for securities lending in 2006, SEK 200m.
The SEB Group
Net financial income
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Equity instruments and related derivatives | 143 | 114 | 153 | -68 | 147 | 126 | 90 | 157 | 342 | 520 |
| Debt instruments and related derivatives | 320 | 288 | 287 | 529 | 645 | 513 | -782 | -477 | 1 424 | -101 |
| Capital market related | 463 | 402 | 440 | 461 | 792 | 639 | -692 | -320 | 1 766 | 419 |
| Currency related | 516 | 645 | 450 | 659 | 519 | 706 | 855 | 740 | 2 270 | 2 820 |
| Net financial income | 979 | 1 047 | 890 | 1 120 | 1 311 | 1 345 | 163 | 420 | 4 036 | 3 239 |
| - | - | - | - | - | - | - | - | - |
=========A ppendix 6 Profit and loss accounts by geography and quarter
Sweden
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Total operating income | 4 904 | 5 023 | 4 879 | 5 005 | 4 965 | 5 342 | 4 506 | 5 676 | 19 811 | 20 489 |
| Total operating expenses | -3 192 | -3 367 | -3 133 | -2 438 | -3 157 | -3 107 | -2 689 | -3 312 | -12 130 | -12 265 |
| Profit before credit losses etc | 1 712 | 1 656 | 1 746 | 2 567 | 1 808 | 2 235 | 1 817 | 2 364 | 7 681 | 8 224 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -59 | -44 | -68 | -61 | -13 | -113 | -32 | 79 | -232 | -79 |
| Operating profit | 1 653 | 1 612 | 1 678 | 2 506 | 1 795 | 2 122 | 1 785 | 2 443 | 7 449 | 8 145 |
| Norway | ||||||||||
| SEKm | Q 1 2006 |
Q 2 2006 |
Q 3 2006 |
Q 4 2006 |
Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Full year 2006 |
Full year 2007 |
| Total operating income | 624 | 827 | 710 | 881 | 853 | 701 | 611 | 777 | 3 042 | 2 942 |
| Total operating expenses | -361 | -409 | -372 | -532 | -442 | -387 | -250 | -467 | -1 674 | -1 546 |
| Profit before credit losses etc Gains less losses from assets |
263 | 418 | 338 | 349 | 411 | 314 | 361 | 310 | 1 368 | 1 396 |
| Net credit losses | -11 | 8 | 10 | 8 | -37 | -15 | -37 | -5 | 15 | -94 |
| Operating profit | 252 | 426 | 348 | 357 | 374 | 299 | 324 | 305 | 1 383 | 1 302 |
| Denmark | ||||||||||
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Total operating income | 614 | 632 | 672 | 715 | 754 | 664 | 706 | 699 | 2 633 | 2 823 |
| Total operating expenses | -314 | -339 | -326 | -508 | -356 | -433 | -361 | -405 | -1 487 | -1 555 |
| Profit before credit losses etc | 300 | 293 | 346 | 207 | 398 | 231 | 345 | 294 | 1 146 | 1 268 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -7 | -6 | -9 | -2 | -8 | -8 | -20 | -24 | -36 | |
| Operating profit | 293 | 287 | 337 | 205 | 398 | 223 | 337 | 274 | 1 122 | 1 232 |
| Finland | ||||||||||
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 200 7 |
| Total operating income | 238 | 236 | 222 | 280 | 247 | 296 | 282 | 352 | 976 | 1 177 |
| Total operating expenses | -144 | -112 | -119 | -204 | -137 | -160 | -136 | -156 | -579 | -589 |
| Profit before credit losses etc Gains less losses from assets |
94 | 124 | 103 | 76 | 110 | 136 | 146 | 196 | 397 | 58 8 |
| Net credit losses | -1 | -1 | -2 | -1 | -4 | -2 | -1 | -2 -5 |
-9 | |
| Operating profit | 93 | 123 | 101 | 75 | 106 | 134 | 145 | 194 | 392 | 579 |
| Germany | ||||||||||
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Total operating income | 1 730 | 1 644 | 1 526 | 1 664 | 1 620 | 1 676 | 1 334 | 1 518 | 6 564 | 6 148 |
| Total operating expenses | -1 139 | -1 126 | -1 172 | -1 181 | -1 140 | -1 148 | -1 231 | -1 291 | -4 618 | -4 810 |
| Profit before credit losses etc | 591 | 518 | 354 | 483 | 480 | 528 | 103 | 227 | 1 946 | 1 338 |
| Gains less losses from assets | -18 | 1 | 8 | -1 | -1 | 1 -9 |
-1 | |||
| Net credit losses | -113 | -86 | -75 | -118 | -149 | -51 | -16 | -125 | -392 | -341 |
| Operating profit | 460 | 432 | 280 | 373 | 331 | 476 | 86 | 103 | 1 545 | 996 |
Estonia
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Total operating income | 282 | 297 | 324 | 392 | 388 | 445 | 400 | 427 | 1 295 | 1 660 |
| Total operating expenses | -121 | -118 | -128 | -151 | -151 | -169 | -155 | -174 | -518 | -649 |
| Profit before credit losses etc | 161 | 179 | 196 | 241 | 237 | 276 | 245 | 253 | 777 | 1 011 |
| Gains less losses from assets | 13 | 5 | 13 | 298 | 31 | 298 | ||||
| Net credit losses | -3 | 2 | -6 | -13 | -12 | -17 | -32 | -158 | -20 | -219 |
| Operating profit | 171 | 181 | 195 | 241 | 225 | 259 | 213 | 393 | 788 | 1 090 |
| Latvia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Total operating income | 256 | 286 | 309 | 332 | 329 | 424 | 426 | 470 | 1 183 | 1 649 |
| Total operating expenses | -120 | -130 | -119 | -134 | -137 | -149 | -146 | -170 | -503 | -602 |
| Profit before credit losses etc | 136 | 156 | 190 | 198 | 192 | 275 | 280 | 300 | 680 | 1 047 |
| Gains less losses from assets | 4 | 1 | -1 | 1 | 256 | 4 | 257 | |||
| Net credit losses | 2 | -6 | 3 | -24 | -8 | -30 | -28 | -46 | -25 | -112 |
| Operating profit | 142 | 151 | 192 | 174 | 184 | 245 | 253 | 510 | 659 | 1 192 |
Lithuania
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Total operating income | 346 | 387 | 429 | 441 | 508 | 609 | 593 | 676 | 1 603 | 2 386 |
| Total operating expenses | -169 | -168 | -180 | -188 | -195 | -202 | -215 | -264 | -705 | -876 |
| Profit before credit losses etc | 177 | 219 | 249 | 253 | 313 | 407 | 378 | 412 | 898 | 1 510 |
| Gains less losses from assets | 14 | 2 | 2 | 232 | 16 | 234 | ||||
| Net credit losses | -12 | -32 | 13 | -10 | -12 | -43 | -33 | -35 | -41 | -123 |
| Operating profit | 165 | 201 | 264 | 243 | 301 | 364 | 347 | 609 | 873 | 1 621 |
Other countries and eliminations
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Total operating income | 616 | 359 | 371 | 294 | 529 | 562 | 635 | -560 | 1 640 | 1 166 |
| Total operating expenses | -210 | 132 | 99 | -344 | -87 | -129 | -397 | 311 | -323 | -302 |
| Profit before credit losses etc | 406 | 491 | 470 | -50 | 442 | 433 | 238 | -249 | 1 317 | 864 |
| Gains less losses from assets | 29 | -1 | -1 | 1 | 28 | |||||
| Net credit losses | 6 | 3 | -2 | -1 | 1 | -1 | -2 | -1 | 6 | -3 |
| Operating profit | 441 | 493 | 467 | -50 | 443 | 432 | 236 | -250 | 1 351 | 861 |
SEB Group Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2006 | 2007 |
| Total operating income | 9 610 | 9 691 | 9 442 | 10 004 | 10 193 | 10 719 | 9 493 | 10 035 | 38 747 | 40 440 |
| Total operating expenses | -5 770 | -5 637 | -5 450 | -5 680 | -5 802 | -5 884 | -5 580 | -5 928 | -22 537 | -23 194 |
| Profit before credit losses etc | 3 840 | 4 054 | 3 992 | 4 324 | 4 391 | 4 835 | 3 913 | 4 107 | 16 210 | 17 246 |
| Gains less losses from assets | 28 | 14 | 6 | 22 | -1 | 2 | 787 | 70 | 788 | |
| Net credit losses | -198 | -162 | -136 | -222 | -234 | -280 | -189 | -313 | -718 | -1 016 |
| Operating profit | 3 670 | 3 906 | 3 862 | 4 124 | 4 157 | 4 554 | 3 726 | 4 581 | 15 562 | 17 018 |
Appendix 7 Skandinaviska Enskilda Banken (parent company)
Income statement – Skandinaviska Enskilda Banken
| In accordance with SFSA regulations | Q4 Q3 Q4 |
Jan - Dec | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Interest income | 9 117 | 12 450 | -27 | 9 506 | -4 | 43 913 | 32 316 | 36 |
| Leasing income | 5 463 | 242 | 222 | 6 154 | 877 | |||
| Interest expense | -6 844 | -11 408 | -40 | -8 600 | -20 | -38 464 | -28 482 | 35 |
| Net interest income 1) | ||||||||
| Dividends received | 2 082 | 1 203 | 73 | 1 095 | 90 | 3 925 | 1 407 | 179 |
| Commission income 2) | 2 117 | 1 916 | 10 | 2 164 | -2 | 8 455 | 8 374 | 1 |
| Commission costs 2) | - 351 | - 342 | 3 | - 311 | 13 | -1 331 | -1 211 | 10 |
| Net commission income 2) | 1 766 | 1 574 | 12 | 1 853 | -5 | 7 124 | 7 163 | -1 |
| Net financial income 3) | 240 | 277 | -13 | 1 024 | -77 | 2 490 | 3 515 | -29 |
| Other operating income | - 519 | 645 | -180 | 631 | -182 | 658 | 2 108 | -69 |
| Total income | 11 305 | 4 983 | 127 | 5 731 | 97 | 25 800 | 18 904 | 36 |
| Staff costs | -2 160 | -2 133 | 1 | -2 118 | 2 | -8 611 | -8 409 | 2 |
| Other administrative and operating costs | -1 078 | - 972 | 11 | -1 061 | 2 | -3 978 | -4 664 | -15 |
| Depreciation of assets | -4 537 | - 108 | - 109 | -4 847 | - 399 | |||
| Total costs | -7 775 | -3 213 | 142 | -3 288 | 136 | -17 436 | -13 472 | 29 |
| Profit/loss from banking operations before | ||||||||
| credit losses | 3 530 | 1 770 | 99 | 2 443 | 44 | 8 364 | 5 432 | 54 |
| Net credit losses 4) | 59 | - 41 | - 45 | - 24 | - 134 | -82 | ||
| Change in value of seized assets | ||||||||
| Impairment financial assets | - 34 | - 5 | - 89 | -62 | - 106 | - 100 | 6 | |
| Operating profit | 3 555 | 1 724 | 106 | 2 309 | 54 | 8 234 | 5 198 | 58 |
| Pension compensation | 99 | 86 | 15 | 93 | 6 | 362 | 343 | 6 |
| Profit before appropriation and tax | 3 654 | 1 810 | 102 | 2 402 | 52 | 8 596 | 5 541 | 55 |
| Other appropriations | - 249 | - 91 | 174 | - 155 | 61 | - 520 | - 688 | -24 |
| Current tax | - 491 | - 213 | 131 | 924 | -153 | - 800 | - 200 | |
| Deferred tax | 362 | 151 | 140 | - 832 | -144 | 209 | - 491 | -143 |
| Net profit | 3 276 | 1 657 | 98 | 2 339 | 40 | 7 485 | 4 162 | 80 |
1) Net interest income - Skandinaviska Enskilda Banken
| Q4 | Q3 Q4 |
Jan - Dec | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Interest income | 9 117 | 12 450 | -27 | 9 506 | -4 | 43 913 | 32 316 | 36 |
| Leasing income | 5 463 | 242 | 222 | 6 154 | 877 | |||
| Interest costs | -6 843 | -11 408 | -40 | -8 600 | -20 | -38 464 | -28 482 | 35 |
| Leasing depreciation | -4 502 | -82 | -75 | -4 735 | -302 | |||
| Net interest income | 3 235 | 1 202 | 169 | 1 053 | 6 868 | 4 409 | 56 |
2) Net fee and commission income - Skandinaviska Enskilda Banken
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Securities commissions | 1 208 | 1 061 | 14 | 1 260 | -4 | 4 787 | 4 633 | 3 |
| Payment commissions | 320 | 310 | 3 | 323 | -1 | 1 279 | 1 279 | |
| Other commissions | 589 | 545 | 8 | 581 | 1 | 2 389 | 2 462 | -3 |
| Commission income | 2 117 | 1 916 | 10 | 2 164 | -2 | 8 455 | 8 374 | 1 |
| Securities commissions | -72 | -70 | 3 | -48 | 50 | -260 | -174 | 49 |
| Payment commissions | -135 | -123 | 10 | -137 | -1 | -520 | -490 | 6 |
| Other commissions | -144 | -149 | -3 | -126 | 14 | -551 | -547 | 1 |
| Commission expense | -351 | -342 | 3 | -311 | 13 | -1 331 | -1 211 | 10 |
| Securities commissions, net | 1 136 | 991 | 15 | 1 212 | -6 | 4 527 | 4 459 | 2 |
| Payment commissions, net | 185 | 187 | -1 | 186 | -1 | 759 | 789 | -4 |
| Other commissions, net | 445 | 396 | 12 | 455 | -2 | 1 838 | 1 915 | -4 |
| Net fee and commission income | 1 766 | 1 574 | 12 | 1 853 | -5 | 7 124 | 7 163 | -1 |
3) Net financial income - Skandinaviska Enskilda Banken
| Q4 Q3 Q4 |
Jan - sep | |||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Equity instruments and related derivatives | 404 | 34 | - 47 | 587 | 189 | |||
| Debt instruments and related derivatives | - 540 | - 474 | 14 | 581 | -193 | - 104 | 1 557 | -107 |
| Capital market related | - 136 | - 440 | -69 | 534 | -125 | 483 | 1 746 | -72 |
| Currency-related | 376 | 717 | -48 | 490 | -23 | 2 007 | 1 769 | 13 |
| Net financial income | 240 | 277 | -13 | 1 024 | -77 | 2 490 | 3 515 | -29 |
4) Net credit losses - Skandinaviska Enskilda Banken
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |
| Provisions: | ||||||||
| Net collective provisions | 95 | - 33 | - 7 | 38 | - 138 | -128 | ||
| Specific provisions | - 46 | - 1 | - 22 | 109 | - 51 | - 46 | 11 | |
| Reversal of specific provisions no longer | ||||||||
| required | 21 | 1 | 14 | 50 | 25 | 36 | -31 | |
| Net provisions for contingent liabilities | - 1 | -100 | 2 | -100 | ||||
| Net provisions | 70 | - 34 | - 13 | 12 | - 148 | -108 | ||
| Write-offs: | ||||||||
| Total write-offs | - 46 | - 35 | 31 | - 95 | -52 | - 160 | - 265 | -40 |
| Reversal of specific provisions utilized for | ||||||||
| write-offs | 5 | 17 | -71 | 48 | -90 | 53 | 182 | -71 |
| Write-offs not previously provided for | - 41 | - 18 | 128 | - 47 | -13 | - 107 | - 83 | 29 |
| Recovered from previous write-offs | 30 | 11 | 173 | 15 | 100 | 71 | 97 | -27 |
| Net write-offs | - 11 | - 7 | 57 | - 32 | -66 | - 36 | 14 | |
| Net credit losses | 59 | - 41 | - 45 | - 24 | - 134 | -82 | ||
| Change in value of seized assets | ||||||||
| Net credit losses incl. change in value of | ||||||||
| seized assets | 59 | - 41 | - 45 | - 24 | - 134 | -82 |
Balance sheet - Skandinaviska Enskilda Banken
| Condensed | 31 December | 31 December |
|---|---|---|
| SEKm | 2007 | 2006 |
| Cash and cash balances with central banks | 1 758 | 1 828 |
| Loans to credit institutions | 357 482 | 361 615 |
| Loans to the public | 637 138 | 336 562 |
| Financial assets at fair value | 367 985 | 351 996 |
| Available-for-sale financial assets | 62 085 | 22 411 |
| Held-to-maturity investments | 3 348 | 3 824 |
| Investments in associates | 1 063 | 1 059 |
| Shares in subsidiaries | 51 936 | 55 306 |
| Tangible and intangible assets | 35 497 | 15 397 |
| Other assets | 41 027 | 22 051 |
| Total assets | 1 559 319 | 1 172 049 |
| Deposits by credit institutions | 367 699 | 334 116 |
| Deposits and borrowing from the public | 412 499 | 390 085 |
| Liabilities to policyholders | ||
| Financial liabilities at fair value | 201 761 | 141 809 |
| Other liabilities | 67 093 | 41 065 |
| Provisions | 271 | 416 |
| Subordinated liabilities | 43 046 | 42 700 |
| Untaxed reserves | 19 016 | 12 089 |
| Total equity | 39 932 | 35 813 |
| Total liabilities and shareholders' equity | 1 559 319 | 1 172 049 |
Memorandum items - Skandinaviska Enskilda Banken
| 31 December | 31 December | |
|---|---|---|
| SEK m | 2007 | 2006 |
| Collateral and comparable security pledged for own liabilities | 146 563 | 231 121 |
| Other pledged assets and comparable collateral | 73 510 | 70 051 |
| Contingent liabilities | 50 909 | 55 721 |
| Commitments | 259 024 | 233 895 |
Statement of changes in equity - Skandinaviska Enskilda Banken
| Reserve for Reserve for cash flow afs financial |
Share | Restricted | Retained | |||
|---|---|---|---|---|---|---|
| SEKm | hedges | assets | capital | reserves | earnings | Total |
| Jan-Dec 2007 | ||||||
| Opening balance | 367 | 212 | 6 872 | 12 804 | 15 558 | 35 813 |
| Change in market value | -163 | - 653 | - 816 | |||
| Recognised in income statement | -14 | 33 | 19 | |||
| Translation difference Net income recognised directly in equity |
-177 | -620 | - 36 -36 |
- 36 -833 |
||
| Net profit | 7 485 | 7 485 | ||||
| Total recognised income | -177 | -620 | 7 449 | 6 652 | ||
| Effect of merger of SEB BoLån and SEB Finans | 399 | 399 | ||||
| Dividend to shareholders | - 4 123 | - 4 123 | ||||
| Dividend, own holdings of shares | 44 | 44 | ||||
| Group contributions net after tax | 806 | 806 | ||||
| Neutralisation of PL impact and utilisation of | ||||||
| employee stock options* | 162 | 162 | ||||
| Neutralisation of 2004 employee stock options** | - 590 | - 590 | ||||
| Eliminations of repurchased shares for employee | ||||||
| stock option programme*** | 897 | 897 | ||||
| Other changes | -544 | 416 | - 128 | |||
| Closing balance | 190 | - 408 | 6 872 | 12 260 | 21 018 | 39 932 |
| Jan-Dec 2006 | ||||||
| Opening balance | 818 | 191 | 6 872 | 12 260 | 10 696 | 30 837 |
| Change in market value | - 451 | 45 | - 406 | |||
| Recognised in income statement | - 24 | - 24 | ||||
| Translation difference | - 37 | - 37 | ||||
| Net income recognised directly in equity | -451 | 21 | -37 | -467 | ||
| Net profit | 4 162 | 4 162 | ||||
| Total recognised income | -451 | 21 | 4 125 | 3 695 | ||
| Effect of merger of SEB IT and Enskilda Securities | 1 031 | 1 031 | ||||
| Dividend to shareholders | - 3 264 | - 3 264 | ||||
| Dividend, own holdings of shares | 75 | 75 | ||||
| Group contributions net after tax | 1 627 | 1 627 | ||||
| Neutralisation of PL impact and utilisation of | ||||||
| employee stock options* | 580 | 580 | ||||
| Eliminations of repurchased shares for employee | ||||||
| stock option programme*** | 1 232 | 1 232 | ||||
| Other changes | 544 | - 544 | ||||
| Closing balance | 367 | 212 | 6 872 | 12 804 | 15 558 | 35 813 |
* Includes changes in nominal amounts of equity swaps used for hedging of stock option programmes.
** Reclassification from equity instruments to financial instruments.
*** As of 31 December 2006 SEB owned 8.9 million Class A shares for the employee stock option programme. The acquisition cost for these shares is deducted from shareholders' equity. During 2007 5.2 million of these shares have been sold as employee stock options have been exercised. Thus, as of 31 December SEB owned 3.7 million Class A-shares with a market value of SEK 612m for hedging of the long-term incentive programmes.
Cash flow analysis – Skandinaviska Enskilda Banken
| Jan - Dec | |||||
|---|---|---|---|---|---|
| SEKm | 2007 | 2006 | % | ||
| Cash flow from the profit and loss statement | 16 843 | 3 924 | |||
| Increase (-)/decrease (+) in portfolios | 2 338 | -32 945 | -107 | ||
| Increase (+)/decrease (-) in issued short term securities | 84 144 | 60 688 | 39 | ||
| Increase (-)/decrease (+) in lending to credit institutions | 55 660 | -18 537 | |||
| Increase (-)/decrease (+) in lending to the public | -304 275 | -41 796 | |||
| Increase (+)/decrease (-) in liabilities to credit institutions | 35 327 | -13 138 | |||
| Increase (+)/decrease (-) in deposits and borrowings from the public | 23 373 | 64 407 | -64 | ||
| Change in other balance sheet items | 6 627 | 9 411 | -30 | ||
| Cash flow, current operations | -79 963 | 32 014 | |||
| Cash flow, investment activities | -15 971 | 5 208 | |||
| Cash flow, financing activities | 148 259 | -30 396 | |||
| Cash flow | 52 325 | 6 826 | |||
| Liquid funds at beginning of year | 89 198 | 82 666 | 8 | ||
| Exchange difference in liquid funds | - 17 | - 294 | -94 | ||
| Cash flow | 52 325 | 6 826 | |||
| Liquid funds at end of period1) | 141 506 | 89 198 | 59 |
Only liquid funds have been adjusted for exchange rate differences.
1) Cash and cash equivalents at end of period is defined as Cash and cash balances with central banks and Loans to credit institutions - payable on demand.
Derivative contracts - Skandinaviska Enskilda Banken
| 30 December 2007 | ||
|---|---|---|
| Derivatives with positive | Derivatives with negative | |
| Book value, SEK m | amounts | amounts |
| Interest-related | 41 173 | 40 009 |
| Currency-related | 29 189 | 32 926 |
| Equity-related | 9 329 | 7 061 |
| Other | 3 146 | 78 |
| Total | 82 837 | 80 074 |