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SEB — Interim / Quarterly Report 2008
Apr 30, 2008
2966_10-q_2008-04-30_34755913-bbda-43e9-923d-8160261de401.pdf
Interim / Quarterly Report
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Interim report January - March 2008
STOCKHOLM 30 APRIL 2008
SEB – operating profit SEK 2.4bn (4.2)
- Operating profit for the first quarter 2008 was SEK 2,410m, a decrease of 42 per cent compared with the corresponding quarter of 2007 and 47 per cent down from the previous quarter. Net profit was SEK 1,848m (3,262).
- Lending and deposit volumes continued to grow, albeit at a lower pace than during last year. Retail customers' interest to invest in equities and equity-linked bonds fell sharply.
- Operating income was down by 14 per cent compared with the first quarter last year and by 12 per cent from the previous quarter. Valuation losses on fixed-income securities portfolios amounted to SEK 872m in the Profit and Loss account and SEK 1,630m in equity.
- Operating expenses increased by 4 per cent compared with the corresponding quarter last year and were 2 per cent higher than in the previous quarter. On a comparable basis, costs were flat.
- Net credit losses amounted to SEK 368m (234).
- Return on equity was 9.6 per cent (19.0) and earnings per share SEK 2.70 (4.81).
"After nine months with the most severe dislocations of the financial markets for decades, signs have become more evident that also the real economy is affected. With SEB's activity-based business mix, customers' more cautious investment sentiment lowered earnings. Our strong balance sheet provides multiple business opportunities going forward." Annika Falkengren
President's comment
After nine months with the most severe dislocations of the financial markets for decades, signs have become more evident that also the real economy is affected. Just over the last months we have seen several downward revisions of global GDP-growth forecasts and also the outlook for SEB's home market, Northern Europe, has become more subdued. 2008 has provided a challenging start.
Still seven to eight weeks into the quarter, customer flows and activity continued on a high note. However, the reinforced financial market turbulence from late February and onwards with credit spreads reaching new extremes also induced new and more cautious customer sentiment. The fixed-income business faced illiquid markets. Retail customers' interest to invest in equities and equity-linked bonds fell sharply. With SEB's business mix being more activity based, this caused a fall in fee and commission income of 11 per cent.
Also the valuation of SEB's investment portfolios within Merchant Banking were adversely affected by widened credit spreads. Mark to market valuation losses affected income by SEK 0.9bn and equity by SEK 1.6bn. Asset quality in these portfolios is high and the unrealised losses are expected to be reversed over time given the prevailing market conditions.
In the past quarter the development in the Baltic countries entered a new phase. Overall credit growth came to a halt both in Estonia and Latvia and slowed down considerably in Lithuania. This development and a slight deterioration of asset quality, e.g. evidenced in higher
overdue payments on loans in Estonia and Latvia, are not surprising. SEB has over the last two years in its Baltic operations taken measures to prioritise return over volume growth. Collective provisions for loans have increased.
The higher costs reflect a combination of investments in growth and IT infrastructure and higher pension costs. Adjusted for these effects costs were flat.
The challenging start of the year does not change our commitment of becoming the leading bank in Northern Europe as regards customer satisfaction and financial performance. Increased resilience from the strong capital and funding position supports our strategy: to invest in our core areas of strength based on a more efficient and integrated bank. Our strong balance sheet provides multiple business opportunities going forward.
Restatement
SEB has restated the 2007 divisional financial reporting structure for the Baltic countries, Wealth Management and cross-divisional support functions.
The restatement follows the second step of integration of the Group's operations and finalizes the financial reporting structure with a divisional and geographic matrix. The changes affect only the financial reporting structure, since the organisation gradually during 2006 and 2007 has been progressing according to this structure, i.e. product responsibilities in the Baltic countries have been assumed by Merchant Banking, Wealth Management and Life. It involves no further changes of reporting lines.
For further information, see www.sebgroup.com.
Key market characteristics
The financial market turmoil intensified during the first quarter of 2008. Some of the key developments included:
- Higher liquidity premium: The three-month liquidity premium over the risk-free rate in SEK increased to above 70bps, three times higher than a year ago.
- The credit spreads on bonds issued by financial institution catapulted to record levels; the Itraxx 5year senior financials index spread three-folded compared to year-end.
- Market making in the European covered bond market struggled and issuance more than halved compared to a year ago. March issuance was only 15 per cent of the volumes 12-months earlier and the risk appetite for longer maturities non-existent.
- Global stock markets (MSCI World index) fell by 12 per cent and the OMX Stockholm Stock Exchange index by close to 11 per cent.
The Group
Operating profit and net profit
SEB's operating profit for the first quarter amounted to SEK 2,410m (4,157), a decrease of 42 per cent compared with the corresponding quarter of 2007 and 47 per cent down from the previous quarter. Net profit decreased to SEK 1,848m $(3,262)$ .
Income
Total operating income amounted to SEK 8,802m (10,193), down by 14 per cent compared with the corresponding quarter of last year and 12 per cent lower than in the previous quarter.
Net interest income increased by 12 per cent compared with the corresponding quarter of 2007, to SEK 4,223m (3,767), and was down by 3 per cent from the previous quarter. Deposits grew by 2 per cent during the quarter and were 14 per cent higher than twelve months ago. Lending to the public rose by 3 per cent during the quarter and by 8 per cent year-on-year. Lending margins were somewhat under pressure, while improved margins on deposits had a positive effect. Customer-driven net interest income grew by 13 per cent compared with the first quarter of 2007. The increased duration of new borrowings and higher short-term interest rate levels had a negative impact on funding costs.
Net fee and commission income amounted to SEK 3,801m $(4,277)$ , a decrease of 11 per cent from the corresponding quarter of 2007 and down by 8 per cent from the previous quarter due to falling income from advisory and mergers and acquisitions as well as from securities transactions in both retail and institutional business. In spite of the falling stock prices, commissions from custody and mutual funds business were stable. Card-related income was up compared with the corresponding quarter of 2007.
Net financial income decreased to SEK -161m (1,311), due to lower valuations of fixed-income securities and lower income from Group Treasury's and Capital Markets' activities.
Net life insurance income at SEK 713m (743) dropped by 4 per cent compared with the corresponding quarter of last year and by 7 per cent compared with the previous quarter, mainly due to lower unit-linked fund values. Sales growth remained positive. A complete description of Life's operations, including changes in surplus values, is found in "Additional information" on www.sebgroup.com.
Net other income amounted to SEK 226m (95) due to hedge accounting effects. No one-offs were recorded during the quarter.
Expenses
The 4 per cent growth of total operating expenses to SEK 6.027m (5.802) reflect investments made in people. IT and new businesses. On a more comparable basis, i.e. excluding the effects from acquisitions (49), IT infrastructure
investments (119) and pension accounting (84), costs were flat
The cost-management programme is on track. The costefficiency gains during the quarter amounted to SEK 79m, which makes the accumulated gain SEK 625m from the start of last year.
Staff costs rose by 3 per cent compared with the previous quarter and the corresponding quarter of last year, totalling SEK 3,899m (3,796). This was mainly due to increased salaries and higher pension costs, which arose from falling return on planned assets and changed actuarial assumptions regarding longevity. During the quarter, SEK 80m (34) was provisioned for redundancy costs and SEK 39m (81) for costs related to the long-term incentive programmes. Short-term performance-related remuneration was reduced by SEK 217m to SEK 606m (823) The quarterly average number of full time equivalents increased by 1,726 to 21,056 (19,330), of which 1,075 followed the acquisitions consolidated during 2008.
Other expenses rose to SEK 1,756m (1,678), mostly due to investments related to the future IT infrastructure.
Credit Incces
The Group's net credit losses, including changes in the value of assets taken over, amounted to SEK 368m (234). The increase was mainly an effect of higher collective provisions for loans in Estonia. The credit loss level was 0.13 per cent (0.10). Overall asset quality remained stable.
Tax costs
Total tax amounted to SEK 562m (895). The total tax rate was 23 per cent. The expected tax rate for 2008 is 23 per $cent$
Business volumes
Total assets continued to grow. The Group's total balance sheet of SEK 2,399bn as per 31 March represented an increase of 2 per cent since year-end 2007, due to growing lending and trading volumes. Negative currency effects amounted to SEK 26bn.
SEB's total credit exposure increased to SEK 1,605bn (1,552 at year-end) during the first quarter. In the Nordic countries lending continued to grow in both corporate and household sectors. In the Baltic countries lending volumes were almost flat.
As of 31 March 2008, assets under management amounted to SEK 1,331bn (1,370 at year-end 2007). Net inflow during the quarter was SEK 7bn (11), while the change in value was SEK -63bn (71). The acquisition of Key Asset Management contributed with SEK 17bn. SEB remained the market leader within net sales of mutual funds in Sweden, with SEK 1.4bn of net inflows during the first quarter of 2008 in a market which declined by SEK 19.7bn. Assets under custody amounted to SEK 4,887bn $(5,276).$
Fixed-income securities portfolios
Within primarily Merchant Banking and Group Treasury, SEB holds total net positions in fixed-income securities of SEK 360bn (331 at year-end 2007) for investment, treasury and client trading purposes. Holdings consist mainly of covered bonds, bonds issued by financial institutions and asset-backed securities.
Primarily the investment portfolio in Merchant Banking continued to be negatively affected by the dislocations in the credit markets. In the first quarter of 2008, the mark-tomarket loss on this portfolio amounted to SEK 2,502m, of which SEK 872m affected Net financial income and SEK 1,630m was recorded as a valuation loss in equity for Available-for-sale portfolios. SEK 1,784m of the mark-tomarket loss refers to holdings in asset-backed securities and SEK 718m to other financial instruments, mainly bonds issued by financial institutions. At prevailing credit market conditions, SEB views default on the holdings in the portfolios as unlikely.
Based on SEB's long-term investment view of the holdings, risk management has focused on limiting the further income volatility. As a consequence, the holdings classified as Available-for-Sale has increased and the Heldfor-Trading securities have decreased. At the end of March, 63 per cent of the total holdings in the investment portfolio of SEK 131bn were classified as Available-for-Sale (46 per cent at year-end).
The holdings of asset-backed securities in the investment portfolio amounted to SEK 63bn (71 at yearend). 98.3 per cent of these securities are AAA-rated. During the quarter seven transactions have been downgraded by Standard and Poor's or Moody's; since last summer a total of ten out of 740 transactions have been downgraded. The average economic duration of the holdings is approximately four years. 63 per cent of the asset-backed exposures are related to the European markets and 37 per cent to the U.S. market. Direct and indirect asset-backed securities exposures to the U.S. subprime mortgage sector amounted to SEK 1.8bn (2.3 at year-end); until the end of the quarter, no subprime transaction had been downgraded by Standard and Poor's or Moody's.
The holdings of covered bonds and bonds issued by financial institutions in the investment portfolio amounted to SEK 68bn (60 at year-end).
Market risk
During the first quarter of 2008, the Group's Value at Risk in the trading operations averaged SEK 130m (92 during the calendar year 2007). This means that the Group, on average, with 99 per cent probability, should not expect to lose more than this amount during a ten-day period.
Liquidity and funding
The Group has not found any difficulty to finance its ongoing business. SEB has gradually increased the average maturity profile of its funding. At 31 March, the matchfunding of net cash inflows and outflows was twelve
months taking liquidity reserves into consideration. The Swedish covered bond market has maintained its robustness and depth also in more challenging market conditions.
Capital position
As per 31 March 2007, SEB reported a core capital ratio of 8.9 per cent (8.6 at year-end 2007) and a total capital ratio of 11.1 per cent (11.0). The lowering in 2008 of Basel II implementation floors (from 95 to 90 per cent of previous requirements) is reflected in these ratios. Capital requirements according to Basel I regulation would give ratios of 8.0 and 10.0 per cent, respectively. Growth of risk weighted assets (Basel I) is 2 per cent over the quarter. Appendix 3 exposes details of capital adequacy.
During the first quarter of 2008, the Swedish Financial Supervisory Authority concluded that SEB has sufficient capital in relation to the risks the Group is exposed to. The conclusion was based on the review of SEB's internal capital adequacy assessment process (part of Basel II).
In addition, the Swedish Financial Supervisory Authority, together with authorities in eight other European countries, granted SEB the approval to apply the Advanced Measurement Approach for determining the capital requirement for operational risk. Thus, SEB became the first Nordic banking group to receive this major stamp of quality.
Risks and uncertainties
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 2007 (see pp 34-41 and Note 44).
The economic imbalances and overheating problems in Latvia and Estonia have continued during the first quarter of 2008 with higher past due payments on loans.
The tight liquidity conditions in the credit and interbank markets prevailing since the summer of 2007 still puts stable funding and liquidity management in focus. The recent development within this area is described above.
The general credit spread widening across all asset classes in the second half of 2007 and the first quarter of 2008 has resulted in mark-to-market losses on SEB's fixedincome securities portfolios (see under Fixed-income securities portfolios).
Investments and divestments
In January, SEB finalized the acquistion of KAM Group Limited (Key Asset Management).
In March, SEB inaugurated its representative office in New Delhi, in India.
Decisions at the Annual General Meeting
The Annual General Meeting on 8 April 2008 decided on raising the dividend for the financial year 2007 to SEK 6.50 $(6.00)$ .
Christine Novakovic was elected new member of the Board, replacing Steven Kaempfer. Marcus Wallenberg was re-elected Chairman of the Board. Jacob Wallenberg and Tuve Johannesson were elected Deputy Chairmen.
The Board's proposal for principles for remuneration to the President and the other members of the Group Executive Committee as well as new share-based long-term incentive programmes for 2008 in the form of a share savings programme, a performance share programme and a share matching programme were approved.
It was also decided to provide the Board of Directors with mandates to repurchase own shares in order to allow for the hedging of long-term incentive programmes and for an efficient capital management and securities business.
Events after the quarter
Bo Magnusson has been appointed Head of Business Support with the overall responsibility for Group Staff, Group IT and Group Operations. Bo Magnusson has also been appointed deputy to the Group Chief Executive Officer Annika Falkengren.
Mats Torstendahl succeeds Bo Magnusson as Head of Retail Banking. He joins SEB from his former position as Head of Danske Bank in Sweden. Mats Torstendahl has also been appointed Executive Vice President and member of the Group Executive Committee.
Stockholm, 30 April 2008 Annika Falkengren President and Chief Executive Officer
This Interim Report has 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 Parent company accounts are prepared in accordance with the Annual Accounts Act for Financial Institutions. The accounting regulations of the Swedish Financial Supervisory Authority require some additional disclosures.
The same accounting policies and methods of computation are followed in the interim financial statements as those applied to the most recent annual financial statements.
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
- 24 September Capital Markets Day in Stockholm
- 23 October Interim Report January-September
Access to telephone conference and video web cast
The telephone conference at 16.30 (CET) on 30 April 2008 with CEO Annika Falkengren and CFO Per-Arne Blomquist can be accessed by telephone, +44 (0) 20 7162 0125, at least 10 minutes in advance. A replay of the conference call will be available on www.sebgroup.com.
A video web-cast with CFO 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
Review Report
We have reviewed the interim report for the period 1 January-31 March, 2008 for Skandinaviska Enskilda Banken AB (publ). Management is responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Annual Accounts Act for Credit Institutions and Securities Companies. Our responsibility is to express a conclusion on this interim financial information based on our review.
We conducted our review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by FAR. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden RS and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not, in all material respects, in accordance with IAS 34 and the Annual Accounts Act for Credit Institutions and Securities Companies.
Stockholm, 30 April 2008
PricewaterhouseCoopers AB
Peter Clemedtson Authorised Public Accountant Partner in charge
Peter Nyllinge Authorised Public Accountant
The SEB Group
Income statement – SEB Group
| Condensed Q1 Q4 |
Jan - Mar | Full year | |||||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Net interest income | 4 223 | 4 375 | -3 | 4 223 | 3 767 | 12 | 15 998 |
| Net fee and commission income | 3 801 | 4 129 | -8 | 3 801 | 4 277 | -11 | 17 051 |
| Net financial income | - 161 | 420 | -138 | - 161 | 1 311 | -112 | 3 239 |
| Net life insurance income | 713 | 766 | -7 | 713 | 743 | -4 | 2 933 |
| Net other income | 226 | 345 | -34 | 226 | 95 | 138 | 1 219 |
| Total operating income | 8 802 | 10 035 | -12 | 8 802 | 10 193 | -14 | 40 440 |
| Staff costs | -3 899 | -3 787 | 3 | -3 899 | -3 796 | 3 | -14 921 |
| Other expenses | -1 756 | -1 782 | -1 | -1 756 | -1 678 | 5 | -6 919 |
| Depreciation of assets | - 372 | - 359 | 4 | - 372 | - 328 | 13 | -1 354 |
| Total operating expenses | -6 027 | -5 928 | 2 | -6 027 | -5 802 | 4 | -23 194 |
| Gains less losses from tangible and intangible | |||||||
| assets Net credit losses incl. changes in value of |
3 | 787 | -100 | 3 | 788 | ||
| seized assets | - 368 | - 313 | 18 | - 368 | - 234 | 57 | -1 016 |
| Operating profit* | 2 410 | 4 581 | -47 | 2 410 | 4 157 | -42 | 17 018 |
| Income tax expense | - 562 | - 824 | -32 | - 562 | - 895 | -37 | -3 376 |
| Net profit | 1 848 | 3 757 | -51 | 1 848 | 3 262 | -43 | 13 642 |
| Attributable to minority interests | 1 | 5 | -80 | 1 | 4 | -75 | 24 |
| Attributable to equity holders ** | 1 847 | 3 752 | -51 | 1 847 | 3 258 | -43 | 13 618 |
| * Life's operating profit | 368 | 475 | -23 | 368 | 458 | -20 | 1 802 |
| Change in surplus values, net Life's business result |
250 618 |
431 906 |
-42 -32 |
250 618 |
244 702 |
2 -12 |
1 273 3 075 |
| ** Basic earnings per share, SEK | 2.70 | 5.49 | 2.70 | 4.81 | 19.97 | ||
| ** Diluted earnings per share, SEK | 2.69 | 5.48 | 2.69 | 4.76 | 19.88 |
Key figures - SEB Group
| Q1 | Q4 | Jan - Mar | |||
|---|---|---|---|---|---|
| 2008 | 2007 | 2008 | 2007 | 2007 | |
| Return on equity, % | 9.6 | 20.2 | 9.6 | 19.0 | 19.3 |
| Return on total assets, % | 0.31 | 0.67 | 0.31 | 0.64 | 0.63 |
| Return on risk-weighted assets, % | 0.87 | 1.78 | 0.87 | 1.70 | 1.68 |
| Basic earnings per share, SEK | 2.70 | 5.49 | 2.70 | 4.81 | 19.97 |
| Weighted average number of shares, millions* | 684 | 683 | 684 | 677 | 682 |
| Diluted earnings per share, SEK | 2.69 | 5.48 | 2.69 | 4.76 | 19.88 |
| Weighted average number of diluted shares, millions** | 686 | 685 | 686 | 684 | 685 |
| Cost/income ratio | 0.69 | 0.59 | 0.69 | 0.57 | 0.57 |
| Credit loss level, % | 0.13 | 0.13 | 0.13 | 0.10 | 0.11 |
| Reserve ratio for impaired loans, % | 74.5 | 76.1 | 74.5 | 74.0 | 76.1 |
| Level of impaired loans, % | 0.20 | 0.18 | 0.20 | 0.23 | 0.18 |
| Basel II:*** | |||||
| Total capital ratio, incl net profit, % | 11.13 | 11.04 | 11.13 | 11.60 | 11.04 |
| Core capital ratio, incl net profit, % | 8.85 | 8.63 | 8.85 | 8.33 | 8.63 |
| Risk-weighted assets, SEK billion | 817 | 842 | 817 | 753 | 842 |
| Basel I: | |||||
| Total capital ratio, incl net profit, % | 10.01 | 10.42 | 10.01 | 10.97 | 10.42 |
| Core capital ratio, incl net profit, % | 7.96 | 8.15 | 7.96 | 7.87 | 8.15 |
| Risk-weighted assets, SEK billion | 909 | 892 | 909 | 796 | 892 |
| Number of full time equivalents**** | 21 210 | 19 794 | 21 056 | 19 330 | 19 506 |
| Number of e-banking customers, thousands | 2 982 | 2 911 | 2 982 | 2 688 | 2 911 |
| Assets under management, SEK billion | 1 331 | 1 370 | 1 331 | 1 344 | 1 370 |
* Issued number of shares was 687,156,631 at year-end 2007. SEB then owned 3.7 million Class A shares for the employee stock option programme. During 2008 1.4 million of these shares have been sold as employee stock options have been exercised. Thus, as of 31 March SEB owned 2.3 million Class A-shares with a market value of SEK 362m.
** Calculated dilution based on the estimated economic value of the long-term incentive programmes.
*** 90 per cent of RWA in Basel I for 2008 and 95 per cent of RWA in Basel I for 2007.
**** Quarterly numbers are for last month of quarter. Accumulated numbers are average for the period.
Income statement on quarterly basis - SEB Group
| SEKm | 2008:1 | 2007:4 | 2007:3 | 2007:2 | 2007:1 |
|---|---|---|---|---|---|
| Net interest income | 4 223 | 4 375 | 3 917 | 3 939 | 3 767 |
| Net fee and commission income | 3 801 | 4 129 | 4 101 | 4 544 | 4 277 |
| Net financial income | - 161 | 420 | 163 | 1 345 | 1 311 |
| Net life insurance income | 713 | 766 | 782 | 642 | 743 |
| Net other income | 226 | 345 | 530 | 249 | 95 |
| Total operating income | 8 802 | 10 035 | 9 493 | 10 719 | 10 193 |
| Staff costs | -3 899 | -3 787 | -3 564 | -3 774 | -3 796 |
| Other expenses | -1 756 | -1 782 | -1 691 | -1 768 | -1 678 |
| Depreciation of assets | - 372 | - 359 | - 325 | - 342 | - 328 |
| Total operating expenses | -6 027 | -5 928 | -5 580 | -5 884 | -5 802 |
| Gains less losses from tangible and intangible assets | 3 | 787 | 2 | - 1 | |
| Net credit losses** | - 368 | - 313 | - 189 | - 280 | - 234 |
| Operating profit* | 2 410 | 4 581 | 3 726 | 4 554 | 4 157 |
| Income tax expense | - 562 | - 824 | - 625 | -1 032 | - 895 |
| Net profit | 1 848 | 3 757 | 3 101 | 3 522 | 3 262 |
| Attributable to minority interests | 1 | 5 | 7 | 8 | 4 |
| Attributable to equity holders*** | 1 847 | 3 752 | 3 094 | 3 514 | 3 258 |
| * SEB Trygg Liv's operating profit Change in surplus values, net |
368 250 |
475 431 |
501 275 |
368 323 |
458 244 |
| SEB Trygg Liv's business result | 618 | 906 | 776 | 691 | 702 |
| ** Including change in value of seized assets | |||||
| *** Basic earnings per share, SEK | 2.70 | 5.49 | 4.59 | 5.21 | 4.81 |
| Diluted earnings per share, SEK | 2.69 | 5.48 | 4.57 | 5.21 | 4.76 |
Income statement, by Division - SEB Group
| Merchant | Retail | Wealth | Other incl | |||
|---|---|---|---|---|---|---|
| Jan-Mar 2008, SEKm | Banking | Banking | Management | Life* | eliminations | SEB Group |
| Net interest income | 1 525 | 2 551 | 242 | - 16 | - 79 | 4 223 |
| Net fee and commission | ||||||
| income | 1 241 | 1 431 | 958 | 171 | 3 801 | |
| Net financial income | 119 | 95 | 20 | - 395 | - 161 | |
| Net life insurance income | 954 | - 241 | 713 | |||
| Net other income | 44 | 23 | 9 | 150 | 226 | |
| Total operating income | 2 929 | 4 100 | 1 229 | 938 | - 394 | 8 802 |
| Staff costs | - 964 | -1 154 | - 383 | - 262 | -1 136 | -3 899 |
| Other expenses | - 909 | -1 304 | - 288 | - 148 | 893 | -1 756 |
| Depreciation of assets | - 22 | - 77 | - 24 | - 160 | - 89 | - 372 |
| Total operating expenses | -1 895 | -2 535 | - 695 | - 570 | - 332 | -6 027 |
| Gains less losses from | ||||||
| tangible and intangible | ||||||
| assets | 3 | 3 | ||||
| Net credit losses** | - 29 | - 311 | - 25 | - 3 | - 368 | |
| Operating profit | 1 008 | 1 254 | 509 | 368 | - 729 | 2 410 |
* Business result in Life amounted to SEK 618m (702), of which change in surplus values was net SEK 250m (244).
** Including change in value of seized assets.
Merchant Banking
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Profit and loss account
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Net interest income | 1 525 | 1 498 | 2 | 1 525 | 1 328 | 15 | 5 610 |
| Net fee and commission income | 1 241 | 1 361 | -9 | 1 241 | 1 561 | -20 | 5 945 |
| Net financial income | 119 | 249 | -52 | 119 | 1 164 | -90 | 2 613 |
| Net other income | 44 | 194 | -77 | 44 | 51 | -14 | 839 |
| Total operating income | 2 929 | 3 302 | -11 | 2 929 | 4 104 | -29 | 15 007 |
| Staff costs | -964 | -1 055 | -9 | -964 | -1 098 | -12 | -4 246 |
| Other expenses | -909 | -868 | 5 | -909 | -857 | 6 | -3 489 |
| Depreciation of assets | -22 | -26 | -15 | -22 | -23 | -4 | -85 |
| Total operating expenses | -1 895 | -1 949 | -3 | -1 895 | -1 978 | -4 | -7 820 |
| Profit before credit losses etc | 1 034 | 1 353 | -24 | 1 034 | 2 126 | -51 | 7 187 |
| Gains less losses on assets | 3 | 2 | 50 | 3 | 2 | ||
| Net credit losses | -29 | -69 | -58 | -29 | -109 | -73 | -326 |
| Operating profit | 1 008 | 1 286 | -22 | 1 008 | 2 017 | -50 | 6 863 |
| Cost/Income ratio | 0,65 | 0,59 | 0,65 | 0,48 | 0,52 | ||
| Business equity, SEK bn | 27,0 | 26,4 | 27,0 | 26,4 | 26,4 | ||
| Return on equity, % | 10,8 | 14,0 | 10,8 | 22,0 | 18,7 | ||
| Number of full time equivalents | 2 742 | 2 672 | 2 726 | 2 518 | 2 566 |
• Increased volatility and lower investor risk appetite
• Distressed credit markets impacts investment portfolio and Capital Markets
Comments on the first quarter
qÜÉ=ëíêÉëëÉÇ=ÅêÉÇáí=ã~êâÉíë=~åÇ=ëéêÉ~Ç=ïáÇÉåáåÖ= ïáíåÉëëÉÇ=áå=íÜÉ=ëÉÅçåÇ=Ü~äÑ=çÑ=ä~ëí=óÉ~ê=ÅçåíáåìÉÇ=áåíç=íÜÉ= Ñáêëí=èì~êíÉê=çÑ=OMMUI=áåíÉåëáÑóáåÖ=ÇìêáåÖ=É~êäó=j~êÅÜK=qÜÉ= çéÉê~íáåÖ=éêçÑáí=çÑ=pbh=NIMMUã=êÉÑäÉÅíë=ïÉ~âÉê=Å~éáí~ä= ã~êâÉíë=êÉîÉåìÉë=~åÇ=áåÅäìÇÉë=ã~êâJíçJã~êâÉí=äçëëÉë=çÑ= pbh=UTOã=çå=íÜÉ=ÇáîáëáçåÛë=ÑáñÉÇJáåÅçãÉ=áåîÉëíãÉåí= éçêíÑçäáçK==
^ÑíÉê=~=ëíêçåÖ=ëí~êíI=íÜÉ=ïçêëÉåÉÇ=ÅçåÇáíáçåë=áå=íÜÉ=Ñáå~ä= ïÉÉâë=çÑ=íÜÉ=èì~êíÉê=Ü~Ç=ëçãÉ=ÅÜáääáåÖ=ÉÑÑÉÅí=çå=áåîÉëíçê= ~ÅíáîáíóK=çåÑáÇÉåÅÉ=~ãçåÖ=Åçêéçê~íÉ=ÅäáÉåíë=êÉã~áåÉÇ= ÜáÖÜ=~åÇI=ïÜáäÉ=ìåÅÉêí~áåíó=Ü~ë=êáëÉåI=íÜÉêÉ=áë=~=ÅçåíáåìÉÇ= ÑçÅìë=çå=ëíê~íÉÖáÅ=íê~åë~Åíáçåë=ëìÅÜ=~ë=ãÉêÖÉêë=~åÇ= ~ÅèìáëáíáçåëK=bãÉêÖáåÖ=ã~êâÉí=êÉä~íÉÇ=~Åíáîáíó=êÉã~áåÉÇ= ëíêçåÖI=ÇÉëéáíÉ=íÜÉ=ÖäçÄ~ä=ÅêáëáëK=aìêáåÖ=íÜÉ=èì~êíÉêI=pb\_= çéÉåÉÇ=~=êÉéêÉëÉåí~íáîÉ=çÑÑáÅÉ=áå=aÉäÜáI=fåÇá~K=^ë=~=êÉëìäíI= pb\_=áë=åçï=éêÉëÉåí=áå=~ää=Ñçìê=çÑ=íÜÉ=ëçJÅ~ääÉÇ=\_of= ÅçìåíêáÉëK==
léÉê~íáåÖ=Åçëíë=ïÉêÉ=êÉÇìÅÉÇ=çå=íÜÉ=Ä~Åâ=çÑ=äçïÉê= î~êá~ÄäÉ=êÉãìåÉê~íáçåK=pb_=t~óI=pb_Ûë=çéÉê~íáçå~ä= ÉñÅÉääÉåÅÉ=éêçÖê~ããÉI=áë=çå=íê~ÅâK=
táíÜáå=qê~ÇáåÖ=~åÇ=`~éáí~ä=j~êâÉíëI=ÑáñÉÇ=áåÅçãÉ= êÉîÉåìÉë=ïÉêÉ=åÉÖ~íáîÉäó=~ÑÑÉÅíÉÇ=Äó=íÜÉ=ÇáÑÑáÅìäí=ã~êâÉí= ÅçåÇáíáçåë=ïÜÉêÉ~ë=íÜÉ=Éèìáíó=~åÇ=ÑçêÉáÖå=ÉñÅÜ~åÖÉ=ìåáíë= ÖÉåÉê~íÉÇ=ëíêçåÖ=êÉëìäíëK=p~äÉë=íç=êÉí~áä=áåîÉëíçêë=ÇêçééÉÇI= êÉÑäÉÅíáåÖ=äçïÉê=îçäìãÉë=áå=íÜÉ=ã~êâÉí=~ë=~=ïÜçäÉK=
içïÉê=ëíçÅâ=ã~êâÉí=î~äì~íáçåë=~åÇ=áåÅêÉ~ëÉÇ=îçä~íáäáíóI= ãÉ~åí=íÜ~í=fmlë=~åÇ=çíÜÉê=Éèìáíó=Å~éáí~ä=ã~êâÉí=~ÅíáîáíáÉë= ïÉêÉ=äáãáíÉÇK=eçïÉîÉêI=ÇÉã~åÇ=Ñçê=Åçêéçê~íÉ=Ñáå~åÅÉ= ~ÇîáÅÉ=êÉã~áåÉÇ=ÜáÖÜ=íÜêçìÖÜçìí=íÜÉ=èì~êíÉêK==
aÉëéáíÉ=ëìÄÇìÉÇ=É~êåáåÖë=Ñêçã=Åçêéçê~íÉ=Ñáå~åÅÉ=~åÇ= ~Åèìáëáíáçå=Ñáå~åÅáåÖI=`çêéçê~íÉ=_~åâáåÖ=Ü~Ç=~=ëíêçåÖ= èì~êíÉêI=ïáíÜ=ëíêìÅíìêÉÇ=Ñáå~åÅÉ=~ÅíáîáíáÉë=ÄÉåÉÑáíáåÖ=Ñêçã= áãéêçîÉÇ=ã~êÖáåë=~åÇ=áãéêçîÉÇ=ÅêÉÇáíçê=íÉêãëK=qÜáë=ï~ë= é~êíáÅìä~êäó=îáëáÄäÉ=áå=ëÉÖãÉåíë=ëìÅÜ=~ë=ëÜáééáåÖ=~åÇ= ÅçããÉêÅá~ä=êÉ~ä=Éëí~íÉI=Äìí=~äëç=áå=ÖÉåÉê~ä=Åçêéçê~íÉ= äÉåÇáåÖK==
táíÜáå=däçÄ~ä=qê~åë~Åíáçå=pÉêîáÅÉëI=íÜÉ=Å~ëÜ= ã~å~ÖÉãÉåí=ÄìëáåÉëë=éÉêÑçêãÉÇ=ïÉääI=ÄÉåÉÑáíáåÖ=Ñêçã= áåÑäçïë=~ë=ïÉää=~ë=ÜáÖÜÉê=áåíÉêÉëí=ê~íÉëK=qê~åë~Åíáçå= îçäìãÉë=áå=ÅìëíçÇó=~åÇ=ÑìåÇ=ëÉêîáÅÉë=ïÉêÉ=ëí~ÄäÉ=~í=~=ÜáÖÜ= äÉîÉäK=içïÉê=ã~êâÉí=î~äì~íáçåë=Ü~Ç=çåäó=~=äáãáíÉÇ=áãé~Åí= çå=áåÅçãÉ=ÇìÉ=íç=ÅçåíáåìÉÇ=~ëëÉí=áåÑäçïëK=`ìëíçÇó= íê~åë~Åíáçåë=áåÅêÉ~ëÉÇ=Äó=SO=éÉê=ÅÉåí=Åçãé~êÉÇ=ïáíÜ=íÜÉ= ÅçêêÉëéçåÇáåÖ=èì~êíÉê=çÑ=OMMTK==
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
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Net interest income | 2 551 | 2 549 | 0 | 2 551 | 2 276 | 12 | 9 698 |
| Net fee and commission income | 1 431 | 1 637 | -13 | 1 431 | 1 523 | -6 | 6 219 |
| Net financial income | 95 | 170 | -44 | 95 | 92 | 3 | 482 |
| Net other income | 23 | 64 | -64 | 23 | 22 | 5 | 159 |
| Total operating income | 4 100 | 4 420 | -7 | 4 100 | 3 913 | 5 | 16 558 |
| Staff costs | -1 154 | -1 085 | 6 | -1 154 | -1 018 | 13 | -4 235 |
| Other expenses | -1 304 | -1 414 | -8 | -1 304 | -1 296 | 1 | -5 286 |
| Depreciation of assets | -77 | -78 | -1 | -77 | -75 | 3 | -318 |
| Total operating expenses | -2 535 | -2 577 | -2 | -2 535 | -2 389 | 6 | -9 839 |
| Profit before credit losses etc | 1 565 | 1 844 | -15 | 1 565 | 1 525 | 3 | 6 719 |
| Gains less losses on assets | 2 | -100 | 4 | ||||
| Net credit losses | -311 | -286 | 9 | -311 | -122 | 155 | -715 |
| Operating profit | 1 254 | 1 560 | -20 | 1 254 | 1 403 | -11 | 6 008 |
| Cost/Income ratio | 0,62 | 0,58 | 0,62 | 0,61 | 0,59 | ||
| Business equity, SEK bn | 25,3 | 24,8 | 25,3 | 24,8 | 24,8 | ||
| Return on equity, % | 15,3 | 19,3 | 15,3 | 17,5 | 18,8 | ||
| Number of full time equivalents | 8 995 | 8 925 | 8 951 | 8 630 | 8 802 |
• Strong net interest income offset declining securities-related fees
• Increased provisions in Estonia led to lower operating profit
Comments on the first quarter
oÉÇìÅÉÇ=ÅìëíçãÉê=~Åíáîáíó=ÑçääçïáåÖ=íÜÉ=Ñáå~åÅá~ä=ã~êâÉí= íìêãçáä=~ÑÑÉÅíÉÇ=íÜÉ=ÇáîáëáçåÛë=ëÉÅìêáíáÉëJêÉä~íÉÇ=áåÅçãÉ= åÉÖ~íáîÉäó=ÇìêáåÖ=íÜÉ=èì~êíÉêK=jÉ~åïÜáäÉI=åÉí=áåíÉêÉëí= áåÅçãÉ=êÉã~áåÉÇ=ëíêçåÖ=~åÇ=áãéêçîÉÇ=ïáíÜáå=~ää=ÄìëáåÉëë= ~êÉ~ë=Åçãé~êÉÇ=ïáíÜ=íÜÉ=Ñáêëí=èì~êíÉê=çÑ=OMMTK=`êÉÇáí=äçëëÉë= áåÅêÉ~ëÉÇI=ã~áåäó=ÇìÉ=íç=ÜáÖÜÉê=éêçîáëáçåë=áå=bëíçåá~K= léÉê~íáåÖ=êÉëìäí=ÇÉÅêÉ~ëÉÇ=Äó=NN=éÉê=ÅÉåí=Åçãé~êÉÇ=ïáíÜ= íÜÉ=Ñáêëí=èì~êíÉê=çÑ=OMMTK=
få=pïÉÇÉåI=áåÅçãÉ=áåÅêÉ~ëÉÇ=Äó=N=éÉê=ÅÉåí=Åçãé~êÉÇ= ïáíÜ=íÜÉ=Ñáêëí=èì~êíÉê=çÑ=OMMTK=kÉí=áåíÉêÉëí=áåÅçãÉ=ÖêçïíÜ= ï~ë=ëìééçêíÉÇ=Äó=ÅçåíáåìÉÇ=ãçêíÖ~ÖÉ=îçäìãÉ=ÖêçïíÜ=~åÇ= ëí~ÄäÉ=ã~êÖáåë=ÇìêáåÖ=íÜÉ=èì~êíÉêK=jçêíÖ~ÖÉ=ë~äÉë=ã~êÖáåë= ïÉêÉ=áå=äáåÉ=ïáíÜ=íÜÉ=çîÉê~ää=~îÉê~ÖÉ=äÉåÇáåÖ=ã~êÖáå=áå=íÜÉ= Ä~Åâ=ÄççâK=tÜáäÉ=ã~êâÉí=ëÉåëáíáîÉ=ÑÉÉë=ëìÅÜ=~ë=ÄêçâÉê~ÖÉ= áåÅçãÉ=~åÇ=Éèìáíó=ÄçåÇ=ÑÉÉë=ÇÉÅêÉ~ëÉÇI=áåëìê~åÅÉ=ë~äÉë= êçëÉ=Äó=~ééêçñáã~íÉäó=OM=éÉê=ÅÉåíK=cìêíÜÉêãçêÉI=íÜÉ= áåÅêÉ~ëÉÇ=ÑçÅìë=çå=íÜÉ=pjb=ëÉÖãÉåí=ÅçåíáåìÉÇ=íç=óáÉäÇ= êÉëìäíX=NIVMM=åÉï=ëã~ää=~åÇ=ãÉÇáìãJëáòÉÇ=Åçêéçê~íÉ= ÅìëíçãÉêë=ïÉêÉ=Ö~áåÉÇ=ENIPMMFK==
`çëíë=áåÅêÉ~ëÉÇ=Äó=S=éÉê=ÅÉåíI=ÇêáîÉå=Äó=ÜáÖÜÉê=ë~ä~êáÉë= ~åÇ=éÉåëáçå=ÅçëíëK==
få=bëíçåá~I=áåÅêÉ~ëÉÇ=éêçîáëáçåë=êÉä~íáåÖ=íç=Åçêéçê~íÉ= ÅìëíçãÉêë=Ü~Ç=~=åÉÖ~íáîÉ=ÉÑÑÉÅí=çå=íÜÉ=êÉëìäíK=få=i~íîá~=~åÇ= iáíÜì~åá~=ÅêÉÇáí=äçëëÉë=êÉã~áåÉÇ=~í=äçï=äÉîÉäëK=`êÉÇáí=
îçäìãÉë=ïÉêÉ=Ççïå=Äó=N=éÉê=ÅÉåí=áå=bëíçåá~=~åÇ=i~íîá~I= ïÜáäÉ=íÜÉ=áåÅêÉ~ëÉ=áå=iáíÜì~åá~=ï~ë=P=éÉê=ÅÉåíK=qÜÉ=dêçìéÛë= ã~êâÉí=ëÜ~êÉë=Ñçê=äÉåÇáåÖ=ÇÉÅêÉ~ëÉÇ=áå=~ää=íÜêÉÉ=ÅçìåíêáÉëI= ÑçääçïáåÖ=pb_Ûë=ãçêÉ=Å~ìíáçìë=~ííáíìÇÉK=få=é~ê~ääÉäI=ÉÑÑçêíë= íç=Å~éíìêÉ=íÜÉ=äçåÖJíÉêã=ÖêçïíÜ=çééçêíìåáíáÉë=ïáíÜáå=íÜÉ= ë~îáåÖë=~êÉ~ë=ÅçåíáåìÉÇ=íÜêçìÖÜ=ä~ìåÅÜáåÖ=çÑ=åÉï= áåîÉëíãÉåí=éêçÇìÅíë=~åÇ=ã~êâÉí=Å~ãé~áÖåëK=få=iáíÜì~åá~I= íÜÉ=Éñé~åëáçå=çÑ=íÜÉ=ÇáëíêáÄìíáçå=åÉíïçêâ=ÅçåíáåìÉÇK= aìêáåÖ=íÜÉ=èì~êíÉêI=pb_Ûë=Ä~åâë=áå=~ää=íÜêÉÉ=_~äíáÅ=ÅçìåíêáÉë= ïÉêÉ=êÉÄê~åÇÉÇ=áåíç=çåäó=pb_K==
få=dÉêã~åóI=éêçÑáí~Äáäáíó=êÉã~áåÉÇ=~í=~å=ìåë~íáëÑ~Åíçêó= äÉîÉäK=p~äÉë=çÑ=ÅçåëìãÉê=äÉåÇáåÖ=~åÇ=ãçêíÖ~ÖÉë=ïÉêÉ= ÜáÖÜÉêI=ïÜáäÉ=ëÉÅìêáíáÉëJêÉä~íÉÇ=áåÅçãÉ=ï~ë=åÉÖ~íáîÉäó= ~ÑÑÉÅíÉÇ=Äó=íÜÉ=ã~êâÉí=íìêãçáäK=
táíÜáå=íÜÉ=~êÇ=ÄìëáåÉëë=~êÉ~I=çéÉê~íáåÖ=éêçÑáí= áåÅêÉ~ëÉÇ=Äó=S=éÉê=ÅÉåí=Åçãé~êÉÇ=ïáíÜ=íÜÉ=Ñáêëí=èì~êíÉê=çÑ= OMMTK=fåÅçãÉ=ÖêÉï=Äó=S=éÉê=ÅÉåí=~åÇ=Åçëíë=ïÉêÉ=åÉ~êäó=Ñä~íK=~êÇ=íìêåçîÉê=ÅçåíáåìÉÇ=íç=Öêçï=~åÇ=áåÅêÉ~ëÉÇ=Äó=S=éÉê= ÅÉåíK=pÉîÉê~ä=åÉï=ä~êÖÉ=ÅìëíçãÉêë=ïÉêÉ=Ö~áåÉÇI=Ñçê= Éñ~ãéäÉ=pí~íçáä=áå=pïÉÇÉåK==
pb_=t~óI=pb_Ûë=çéÉê~íáçå~ä=ÉñÅÉääÉåÅÉ=éêçÖê~ããÉI=áë= çåÖçáåÖ=~Åêçëë=íÜÉ=Çáîáëáçå=~åÇ=áë=~ëëáÖåÉÇ=ÉîÉå=ëíêçåÖÉê= áãéçêí~åÅÉ=áå=íÜÉ=ãçêÉ=ÅÜ~ääÉåÖáåÖ=ÉåîáêçåãÉåíK==
Wealth Management
qÜáë=Çáîáëáçå=Ü~ë=íïç=ÄìëáåÉëë=~êÉ~ë=Ó=fåëíáíìíáçå~ä=`äáÉåíë=~åÇ=mêáî~íÉ=_~åâáåÖK
Profit and loss account
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Net interest income | 242 | 245 | -1 | 242 | 186 | 30 | 843 |
| Net fee and commission income | 958 | 979 | -2 | 958 | 1 024 | -6 | 4 077 |
| Net financial income | 20 | 46 | -57 | 20 | 14 | 43 | 79 |
| Net other income | 9 | 40 | -78 | 9 | 6 | 50 | 86 |
| Total operating income | 1 229 | 1 310 | -6 | 1 229 | 1 230 | 0 | 5 085 |
| Staff costs | -383 | -355 | 8 | -383 | -346 | 11 | -1 340 |
| Other expenses | -288 | -289 | 0 | -288 | -253 | 14 | -1 040 |
| Depreciation of assets | -24 | -14 | 71 | -24 | -13 | 85 | -60 |
| Total operating expenses | -695 | -658 | 6 | -695 | -612 | 14 | -2 440 |
| Profit before credit losses etc | 534 | 652 | -18 | 534 | 618 | -14 | 2 645 |
| Gains less losses on assets | -1 | ||||||
| Net credit losses | -25 | 10 | -25 | -4 | -7 | ||
| Operating profit | 509 | 662 | -23 | 509 | 614 | -17 | 2 637 |
| Cost/Income ratio | 0,57 | 0,50 | 0,57 | 0,50 | 0,48 | ||
| Business equity, SEK bn | 6,6 | 5,5 | 6,6 | 5,5 | 5,5 | ||
| Return on equity, % | 22,2 | 34,7 | 22,2 | 32,2 | 34,5 | ||
| Number of full time equivalents | 1 160 | 1 073 | 1 153 | 1 104 | 1 074 |
• Weak stock markets lowered income while performance fees increased
• SEB continued to capture market share in the Swedish mutual fund market
Comments on the first quarter
pb_Ûë=ÅìëíçãÉêëÛ=êÉëéçåëÉ=íç=íÜÉ=ìåÅÉêí~áåíó=çå=íÜÉ=ÖäçÄ~ä= Ñáå~åÅá~ä=ã~êâÉíë=ÇìêáåÖ=íÜÉ=Ñáêëí=èì~êíÉê=ï~ë=~=ÅçåíáåìÉÇ= ëÜáÑí=íçï~êÇë=äÉëë=îçä~íáäÉ=áåîÉëíãÉåíëK=e~åÇJáåJÜ~åÇ=ïáíÜ= íÜÉ=ÇáîáëáçåÛë=äçåÖJíÉêã=ÑçÅìë=çå=~äíÉêå~íáîÉ=áåîÉëíãÉåíëI= íÜáë=êÉëìäíÉÇ=áå=~=ëí~ÄäÉ=çéÉê~íáåÖ=áåÅçãÉ=çÑ=pbh=NIOOVã= ENIOPMF=ïÜÉêÉ=åÉí=áåíÉêÉëí=áåÅçãÉ=~åÇ=éÉêÑçêã~åÅÉ=ÑÉÉë= çÑÑëÉí=ÇÉÅêÉ~ëÉÇ=áåÅçãÉ=Ñêçã=~ëëÉí=î~äìÉë=~åÇ=äçïÉê= ÄêçâÉê~ÖÉ=~ÅíáîáíáÉëK=mÉêÑçêã~åÅÉ=ÑÉÉë=~ãçìåíÉÇ=íç=pbh= NUPã=ENRQFK==
pb_=~Ö~áå=Å~éíìêÉÇ=îçäìãÉë=çå=íÜÉ=ïÉ~â=pïÉÇáëÜ= ãìíì~ä=ÑìåÇ=ã~êâÉí=ïáíÜ=áåÑäçïë=çÑ=pbh=NKRÄå=EQKOF=~Ö~áåëí= ~=íçí~ä=ã~êâÉí=çìíÑäçï=çÑ=pbh=NVKTÄå=EJMKNF=ÇìêáåÖ=íÜÉ= éÉêáçÇK=pb_=ÄÉåÉÑáíÉÇ=Ñêçã=áíë=ïáÇÉ=ÇáëíêáÄìíáçå=Å~é~Åáíó= ~åÇ=ëíêçåÖ=éçëáíáçå=ïáíÜáå=~äíÉêå~íáîÉ=áåîÉëíãÉåíëI=ïÜÉêÉ= pb_=~äçåÉ=Ü~Ç=áåÑäçïë=çÑ=pbh=RKSÄå=ENKSFI=íçí~ääó= Ççãáå~íáåÖ=íÜáë=ã~êâÉíK=pb_Ûë=~äíÉêå~íáîÉ=áåîÉëíãÉåíë=çÑÑÉê= ïáää=ÄÉ=ÑìêíÜÉê=ëíêÉåÖíÜÉåÉÇ=ÇìêáåÖ=íÜÉ=Ñáêëí=Ü~äÑ=çÑ=OMMU= íÜêçìÖÜ=ä~ìåÅÜÉë=çÑ=åÉï=éêçÇìÅíë=Ñêçã=hÉó=^ëëÉí= j~å~ÖÉãÉåíK=
qÜÉ=ÇáîáëáçåÛë=íçí~ä=~ëëÉíë=ìåÇÉê=ã~å~ÖÉãÉåí=ÑÉää=Äó= O=éÉê=ÅÉåí=Ñêçã=óÉ~êJÉåÇ=íç=pbh=NIORSÄåI=~ÑÑÉÅíÉÇ=Äó=äçïÉê= ~ëëÉí=î~äìÉë=~åÇ=åÉÖ~íáîÉ=ÉñÅÜ~åÖÉ=ê~íÉ=ÉÑÑÉÅíëK=qÜÉ=
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fåîÉëíãÉåí=éÉêÑçêã~åÅÉ=ïÉ~âÉåÉÇ=ÇìêáåÖ=íÜÉ=èì~êíÉê= ïáíÜ=PP=éÉê=ÅÉåí=ERSF=çÑ=éçêíÑçäáçë=~åÇ=OV=éÉê=ÅÉåí=ETNF=çÑ= ~ëëÉíë=ìåÇÉê=ã~å~ÖÉãÉåí=~ÜÉ~Ç=çÑ=íÜÉáê=êÉëéÉÅíáîÉ= ÄÉåÅÜã~êâëK=
`çëíë=áåÅêÉ~ëÉÇ=Äó=NQ=éÉê=ÅÉåíI=íç=pbh=SVRãK=lìí=çÑ= íÜÉëÉI=T=éÉê=ÅÉåí=ïÉêÉ=åçåJÅçãé~ê~ÄäÉ=ÅçëíëI=áåÅäìÇáåÖ=íÜÉ= ÅçåëçäáÇ~íáçå=çÑ=hÉó=^ëëÉí=j~å~ÖÉãÉåí=~åÇ=ÜáÖÜÉê= éÉåëáçå=ÅçëíëK=råÇÉêäóáåÖ=Åçëíë=áåÅêÉ~ëÉÇ=Äó=T=éÉê=ÅÉåíK==
fåëíáíìíáçå~ä=`äáÉåíë=ÅçåíáåìÉÇ=íç=ëíêÉåÖíÜÉå=ë~äÉë=ïáíÜ= ~ÅíáîáíáÉë=ÑçÅìëÉÇ=çå=qáÉê=N=ÅäáÉåíë=áå=pïÉÇÉåI=íÜáêÇ=é~êíó= ÇáëíêáÄìíçêë=~åÇ=áåëíáíìíáçå~ä=~ëëÉí=ã~å~ÖÉãÉåí=ÅìëíçãÉêë= çìíëáÇÉ=pb_Ûë=ÜçãÉ=ã~êâÉíëK=fåîÉëíãÉåíë=áå=~äíÉêå~íáîÉ= éêçÇìÅíë=áåÅêÉ~ëÉÇ=íç=ãÉÉí=ÅìëíçãÉêëÛ=ÇÉã~åÇ=~åÇ=ÇáêÉÅí= êÉ~ä=Éëí~íÉ=áåîÉëíãÉåíëI=É~êäáÉê=çåäó=~î~áä~ÄäÉ=áå=dÉêã~åóI= ïÉêÉ=~ÇÇÉÇ=íç=íÜÉ=ÖäçÄ~ä=çÑÑÉêK==
eáÖÜ=äÉîÉäë=çÑ=~Åíáîáíó=ïáíÜáå=mêáî~íÉ=_~åâáåÖ=êÉëìäíÉÇ= áå=åÉí=åÉï=~ëëÉíë=çÑ=pbh=RKUÄå=EQKNF=ÇìêáåÖ=íÜÉ=éÉêáçÇK=qÜÉ= ÉÑÑÉÅíë=ëíÉã=Ñêçã=~=åìãÄÉê=çÑ=ëíê~íÉÖáÅ=ÉÑÑçêíëI=íÜÉ= êÉÉåÖáåÉÉêÉÇ=ÄìëáåÉëë=ãçÇÉäI=íÜÉ=pb_=t~ó=íê~åëÑçêã~íáçå= ~åÇ=ÅäçëÉê=ÅçJçéÉê~íáçå=ïáíÜ=íÜÉ=oÉí~áä=_~åâáåÖ=ÇáîáëáçåK==
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
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Net interest income | -16 | -7 | 129 | -16 | -9 | 78 | -28 |
| Net life insurance income | 954 | 1 031 | -7 | 954 | 981 | -3 | 3 958 |
| Total operating income | 938 | 1 024 | -8 | 938 | 972 | -3 | 3 930 |
| Staff costs | -262 | -284 | -8 | -262 | -254 | 3 | -1 050 |
| Other expenses | -148 | -121 | 22 | -148 | -130 | 14 | -530 |
| Depreciation of assets | -160 | -144 | 11 | -160 | -130 | 23 | -548 |
| Total operating expenses | -570 | -549 | 4 | -570 | -514 | 11 | -2 128 |
| Operating profit | 368 | 475 | -23 | 368 | 458 | -20 | 1 802 |
| Change in surplus values, net | 250 | 431 | -42 | 250 | 244 | 2 | 1 273 |
| Business result | 618 | 906 | -32 | 618 | 702 | -12 | 3 075 |
| Cost/Income ratio | 0,61 | 0,54 | 0,61 | 0,53 | 0,54 | ||
| Business equity, SEK bn | 7,5 | 7,5 | 7,5 | 7,5 | 7,5 | ||
| Return on equity, % | |||||||
| based on operating profit | 17,3 | 22,3 | 17,3 | 21,5 | 21,1 | ||
| based on business result | 29,0 | 42,5 | 29,0 | 32,9 | 36,1 | ||
| Number of full time equivalents | 1 222 | 1 218 | 1 218 | 1 195 | 1 201 |
• Sales increased by 11 per cent
• Declining market values in unit-linked reduced income
Comments on the first quarter
léÉê~íáåÖ=éêçÑáí=ÇÉÅêÉ~ëÉÇ=Äó=OM=éÉê=ÅÉåí=Åçãé~êÉÇ=ïáíÜ= íÜÉ=ÅçêêÉëéçåÇáåÖ=èì~êíÉê=çÑ=ä~ëí=óÉ~êK=léÉê~íáåÖ=áåÅçãÉ= ï~ë=~ÑÑÉÅíÉÇ=Äó=ÇÉÅäáåáåÖ=ìåáíJäáåâÉÇ=ÑìåÇ=î~äìÉë=~åÇ=~= íêÉåÇ=íç=ëïáíÅÜ=Ñêçã=ÉèìáíóJêÉä~íÉÇ=ÑìåÇë=íç=ãçêÉ= ÅçåëÉêî~íáîÉ=áåîÉëíãÉåí=~äíÉêå~íáîÉë=ëìÅÜ=~ë=ÑáñÉÇJáåÅçãÉ= ÑìåÇëK=qÜÉ=êÉëìäíë=Ñçê=êáëâ=éêçÇìÅíë=ëìÅÜ=~ë=ëáÅâåÉëë= áåëìê~åÅÉ=~åÇ=Å~êÉ=éêçÇìÅíëI=ïÉêÉ=ïÉää=~ÄçîÉ=ä~ëí=óÉ~êI= ÄÉåÉÑáíáåÖ=Ñêçã=ãçÇÉê~íÉ=Åä~áãë=~åÇ=ÖççÇ=áåîÉëíãÉåí= êÉíìêåëK=eçïÉîÉêI=íÜÉ=îçä~íáäÉ=Å~éáí~ä=ã~êâÉíë=~åÇ=áåíÉêÉëí= ê~íÉ=ãçîÉãÉåíë=ã~ó=ïÉää=ÅçåíêáÄìíÉ=íç=ëçãÉ=ÑäìÅíì~íáçåë= ÄÉíïÉÉå=èì~êíÉêë=íÜêçìÖÜçìí=íÜÉ=óÉ~êK==
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Result by geography - January-March 2008
SEB offers universal banking services in Sweden, Germany and the Baltic countries- Estonia, Latvia and Lithuania. It also has local presence in the other Nordic countries, Poland, Ukraine and Russia and a global presence through its international network in another 10 countries.
- Credit market turbulence affected income in most markets
- SEB's business mix and a robust economy supported Swedish operations
Comments on the quarter
The continued dislocation of the credit markets in combination with a deteriorating business sentiment and decreasing activities on the equities markets negatively affected SEB's operations in most markets.
In Sweden, operating income increased by 3 per cent even if securities commissions were lower and market valuations of the fixed-income securities portfolios declined. Net interest income increased due to continued volume growth. Costs were higher following higher pension costs and increased number of staff.
In Denmark and Norway, lower activities on the weakened equities markets led to a drop in both income and results for SEB's investment banking and asset management operations. Life business showed a positive development in Denmark during the quarter.
In Finland, SEB's investment in advisory service within Merchant Banking and Wealth Management during the last few years has paid off - both income and operating profit increased compared with last year.
SEB's business in Latvia and Lithuania remained strong, while revenues in Estonia were negatively affected by decreased income from Merchant Banking and Life. This, in combination with higher collective provisions, led to a sharp reduction of SEB's operating profit in Estonia. In Latvia and Lithuania, credit losses remained at low levels and operating profits rose somewhat.
The slowdown of credit volume in the Baltic countries has resulted in decreased market shares.
Operating income in Germany was negatively affected by the development in the fixed-income securities portfolios and capital market activities. Apart from that, sales of consumer lending and mortgages rose.
Operating profit per country, 01 2008 Adjusted for Other, SEK -487m
Volumes in new markets, i.e. Ukraine and Russia, continued to increase. The integration of SEB Bank and the recently acquired Factorial Bank in Ukraine proceeded according to plan. SEB aims to open 20-25 branch offices per year in Ukraine and has also launched e.g. cash management solutions, asset management services, investment funds and life insurance in the country.
Valuations of holdings of fixed-income securities in branches to the parent company were severely affected by the credit spread widening. These lower valuations, together with slower capital markets and lowered contribution from the Baltic countries, explain the relatively low share of operating profit generated outside Sweden, 42 per cent.
| Distribution by country Jan - March | Total operating income | Operating profit Total operating expenses |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2008 | 2007 | % |
| Sweden | 5096 | 4 9 6 5 | 3 | $-3384$ | $-3157$ | .693 | .795 | -6 | |
| Norway | 560 | 853 | $-34$ | $-323$ | $-442$ | $-27$ | 177 | 374 | -53 |
| Denmark | 604 | 754 | $-20$ | $-356$ | $-356$ | 225 | 398 | $-43$ | |
| Finland | 281 | 247 | 14 | $-152$ | $-137$ | 11 | 127 | 106 | 20 |
| Germany | l 356 | 1620 | $-16$ | $-1210$ | $-1140$ | 6 | 108 | 331 | -67 |
| Estonia | 328 | 388 | $-15$ | $-137$ | $-151$ | -9 | 25 | 225 | -89 |
| Latvia | 410 | 329 | 25 | $-176$ | $-137$ | 28 | 195 | 184 | 6 |
| Lithuania | 597 | 508 | 18 | $-232$ | $-195$ | 19 | 347 | 301 | 15 |
| Other countries and eliminations | $-430$ | 529 | -181 | $-57$ | $-87$ | $-34$ | $-487$ | 443 | |
| Total | 8802 | 10 193 | $-14$ | $-6027$ | $-5802$ | 4 | 2410 | 4 1 5 7 | -42 |
The SEB Group
Net fee and commission income – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Issue of securities | 7 | 61 | - 89 | 7 | 32 | - 78 | 335 |
| Secondary market shares | 677 | 711 | - 5 | 677 | 891 | - 24 | 3 153 |
| Secondary market other | 81 | 148 | - 45 | 81 | 177 | - 54 | 598 |
| Custody and mutual funds | 1 804 | 1 763 | 2 | 1 804 | 1 692 | 7 | 7 165 |
| Securities commissions | 2 569 | 2 683 | - 4 | 2 569 | 2 792 | - 8 | 11 251 |
| Payments | 439 | 463 | - 5 | 439 | 459 | - 4 | 1 808 |
| Card fees | 1 032 | 1 087 | - 5 | 1 032 | 957 | 8 | 4 093 |
| Payment commissions | 1 471 | 1 550 | - 5 | 1 471 | 1 416 | 4 | 5 901 |
| Advisory | 289 | 316 | - 9 | 289 | 499 | - 42 | 1 473 |
| Lending | 185 | 294 | - 37 | 185 | 231 | - 20 | 1 055 |
| Deposits | 23 | 23 | 23 | 27 | - 15 | 89 | |
| Guarantees | 67 | 66 | 2 | 67 | 68 | - 1 | 264 |
| Derivatives | 113 | 92 | 23 | 113 | 96 | 18 | 363 |
| Other | 176 | 235 | - 25 | 176 | 226 | - 22 | 1 004 |
| Other commissions | 853 | 1 026 | - 17 | 853 | 1 147 | - 26 | 4 248 |
| Fee and commission income | 4 893 | 5 259 | - 7 | 4 893 | 5 355 | - 9 | 21 400 |
| Securities commissions | - 241 | - 195 | 24 | - 241 | - 204 | 18 | - 902 |
| Payment commissions | - 585 | - 619 | - 5 | - 585 | - 576 | 2 | -2 373 |
| Other commissions | - 266 | - 316 | - 16 | - 266 | - 298 | - 11 | -1 074 |
| Fee and commission expense | -1 092 | -1 130 | - 3 | -1 092 | -1 078 | 1 | -4 349 |
| Securities commissions, net | 2 328 | 2 488 | - 6 | 2 328 | 2 588 | - 10 | 10 349 |
| Payment commissions, net | 886 | 931 | - 5 | 886 | 840 | 5 | 3 528 |
| Other commissions, net | 587 | 710 | - 17 | 587 | 849 | - 31 | 3 174 |
| Net fee and commission income | 3 801 | 4 129 | - 8 | 3 801 | 4 277 | - 11 | 17 051 |
Net financial income – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Equity instruments and related derivatives | 171 | 157 | 9 | 171 | 147 | 16 | 520 |
| Debt instruments and related derivatives | -1 164 | - 477 | 144 | -1 164 | 645 | - 101 | |
| Capital market related | - 993 | - 320 | - 993 | 792 | 419 | ||
| Currency-related | 832 | 740 | 12 | 832 | 519 | 60 | 2 820 |
| Net financial income | - 161 | 420 | -138 | - 161 | 1 311 | -112 | 3 239 |
Net credit losses - Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Provisions: | |||||||
| Net collective provisions | - 112 | 15 | - 112 | - 114 | -2 | - 390 | |
| Specific provisions | - 190 | - 231 | -18 | - 190 | - 245 | -22 | - 653 |
| Reversal of specific provisions no longer required | 44 | 163 | -73 | 44 | 75 | -41 | 405 |
| Net provisions for contingent liabilities | 1 | - 24 | -104 | 1 | 31 | -97 | 8 |
| Net provisions | - 257 | - 77 | - 257 | - 253 | 2 | - 630 | |
| Write-offs: | |||||||
| Total write-offs | - 332 | - 562 | -41 | - 332 | - 243 | 37 | -1 395 |
| Reversal of specific provisions utilized for write-offs | 201 | 242 | -17 | 201 | 124 | 62 | 711 |
| Write-offs not previously provided for | - 131 | - 320 | -59 | - 131 | - 119 | 10 | - 684 |
| Recovered from previous write-offs | 24 | 85 | -72 | 24 | 135 | -82 | 293 |
| Net write-offs | - 107 | - 235 | -54 | - 107 | 16 | - 391 | |
| Net credit losses | - 364 | - 312 | 17 | - 364 | - 237 | 54 | -1 021 |
| Change in value of seized assets | - 4 | - 1 | - 4 | 3 | 5 | ||
| Net credit losses incl change in value | - 368 | - 313 | 18 | - 368 | - 234 | 57 | -1 016 |
Balance sheet – SEB Group
| Condensed | 31 March | 31 December | 31 March |
|---|---|---|---|
| SEKm | 2008 | 2007 | 2007 |
| Cash and cash balances with central banks | 17 728 | 96 871 | 11 866 |
| Loans to credit institutions | 308 822 | 263 012 | 232 935 |
| Loans to the public | 1 098 597 | 1 067 341 | 1016 519 |
| Financial assets at fair value * | 694 111 | 661 223 | 684 290 |
| Available-for-sale financial assets * | 196 848 | 170 137 | 125 166 |
| Held-to-maturity investments * | 1 868 | 1 798 | 2 053 |
| Asset held for sale / Discontinued operations | 952 | ||
| Investments in associates | 1 314 | 1 257 | 1 134 |
| Tangible and intangible assets | 25 452 | 24 697 | 23 328 |
| Other assets | 53 823 | 58 126 | 37 879 |
| Total assets | 2 398 563 | 2 344 462 | 2 136 122 |
| Deposits by credit institutions | 455 707 | 421 348 | 427 367 |
| Deposits and borrowing from the public | 764 567 | 750 481 | 669 646 |
| Liabilities to policyholders | 213 046 | 225 916 | 213 289 |
| Debt securities | 499 622 | 510 564 | 457 442 |
| Financial liabilities at fair value | 256 961 | 216 390 | 174 757 |
| Other liabilities | 87 273 | 97 519 | 80 419 |
| Provisions | 1 338 | 1 536 | 1 863 |
| Subordinated liabilities | 42 990 | 43 989 | 45 325 |
| Total equity | 77 059 | 76 719 | 66 014 |
| Total liabilities and equity | 2 398 563 | 2 344 462 | 2 136 122 |
| * Of which bonds and other interest bearing securities inclusive derivatives. | 675 521 | 608 016 | 564 459 |
Memorandum items – SEB Group
| 31 March | 31 December | 31 March | |
|---|---|---|---|
| SEKm | 2008 | 2007 | 2007 |
| Collateral and comparable security pledged for own liabilities | 388 200 | 308 342 | 341 840 |
| Other pledged assets and comparable collateral | 240 060 | 207 363 | 228 373 |
| Contingent liabilities | 63 621 | 66 984 | 61 164 |
| Commitments | 443 059 | 394 128 | 391 485 |
Statement of changes in equity – SEB Group
| Reserve for | Reserve for | ||||||
|---|---|---|---|---|---|---|---|
| Minority | cash flow | afs financial | Share | Restricted | Retained | ||
| SEKm | interests | hedges | assets | capital | reserves | earnings | Total |
| Jan-Mar 2008 | |||||||
| Opening balance | 191 | 160 | - 438 | 6 872 | 29 757 | 40 177 | 76 719 |
| Change in market value | -69 | - 1 186 | - 1 255 | ||||
| Recognised in income statement | - 3 | - 3 | |||||
| Translation difference | -228 | - 228 | |||||
| Net income recognised directly in equity | -69 | -1 189 | -228 | -1 486 | |||
| Net profit | 1 | 1 847 | 1 848 | ||||
| Total recognised income | 1 | -69 | -1 189 | -228 | 1 847 | 362 | |
| Neutralisation of PL impact and utilisation of | |||||||
| employee stock options* | 54 | 54 | |||||
| Eliminations of repurchased shares for employee | |||||||
| stock option programme*** | 114 | 114 | |||||
| Other changes | -16 | 861 | - 1 035 | - 190 | |||
| Closing balance | 176 | 91 | - 1 627 | 6 872 | 30 390 | 41 157 | 77 059 |
| 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 | ||||
| 98 | |||||||
| Translation difference | 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* | - 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-Mar 2007 | |||||||
| Opening balance | 130 | 380 | 392 | 6 872 | 30 203 | 29 290 | 67 267 |
| Change in market value | -51 | - 164 | - 215 | ||||
| Recognised in income statement | 72 | 72 | |||||
| Translation difference | 35 | 35 | |||||
| Net income recognised directly in equity | -51 | -92 | 35 | -108 | |||
| Net profit | 4 | 3 258 | 3 262 | ||||
| Total recognised income | 4 | -51 | -92 | 35 | 3 258 | 3 154 | |
| Dividend to shareholders | - 4 123 | - 4 123 | |||||
| Dividend, own holdings of shares | 44 | 44 | |||||
| Neutralisation of PL impact and utilisation of | |||||||
| employee stock options* Eliminations of repurchased shares for employee |
- 707 | - 707 | |||||
| stock option programme*** | 146 | 146 | |||||
| Other changes | 2 | 70 | 161 | 233 | |||
| Closing balance | 136 | 329 | 300 | 6 872 | 30 308 | 28 069 | 66 014 |
* 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 2007 SEB owned 3.7 million Class A shares for the employee stock option programme. The acquisition cost for these shares is deducted from shareholders' equity. During 2008 1.4 million of these shares have been sold as employee stock options have been exercised. Thus, as of 31 March SEB owned 2.3 million Class A-shares with a market value of SEK 362m for hedging of the long-term incentive programmes.
Cash flow statement – SEB Group
| Jan - Mar | Full year | |||
|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2007 |
| Cash flow from the profit and loss statement | 4 360 | 4 813 | -9 | 17 476 |
| Increase (-)/decrease (+) in trading portfolios | -23 041 | -59 637 | -61 | -32 503 |
| Increase (+)/decrease (-) in issued short term securities | -40 616 | 56 993 | -171 | 72 454 |
| Increase (-)/decrease (+) in lending to credit institutions | -1 588 | -13 459 | -88 | -45 995 |
| Increase (-)/decrease (+) in lending to the public | -32 086 | -70 273 | -54 | -116 298 |
| Increase (+)/decrease (-) in liabilities to credit institutions | 33 861 | 61 387 | -45 | 52 274 |
| Increase (+)/decrease (-) in deposits and borrowings from the public | 11 889 | 27 888 | -57 | 104 715 |
| Increase (-)/decrease (+) in insurance portfolios | -12 849 | 9 606 | 22 302 | |
| Change in other balance sheet items | 158 | 14 321 | -99 | 10 348 |
| Cash flow from operating activities | -59 912 | 31 639 | 84 773 | |
| Cash flow from investment activities1) | -1 214 | - 673 | 80 | -2 350 |
| Cash flow from financing activities | 28 104 | 9 425 | 198 | 38 397 |
| Net increase in cash and cash equivalents | -33 022 | 40 391 | -182 | 120 820 |
| Cash and cash equivalents at beginning of year | 194 985 | 73 751 | 164 | 73 751 |
| Exchange difference in cash and cash equivalents | -3 341 | 304 | 414 | |
| Net increase in cash and cash equivalents | -33 022 | 40 391 | -182 | 120 820 |
| Cash and cash equivalents at end of period2) | 158 622 | 114 446 | 39 | 194 985 |
| 1) Including investments in subsidiaries | ||||
| Cost of acquisitions | - 708 | - 130 | - 759 | |
| Less cash acquired | 113 | -100 | 102 | |
| Outflow on acquisition | - 708 | - 17 | - 657 |
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 March | 31 December | 31 March | |
|---|---|---|---|
| SEKm | 2008 | 2007 | 2007 |
| Non-performing impaired loans | 7 775 | 7 619 | 7 860 |
| Performing impaired loans | 778 | 772 | 1 168 |
| Impaired loans gross* | 8 553 | 8 391 | 9 028 |
| Specific reserves | -3 669 | -3 787 | -4 344 |
| of which reserves for non-performing loans | -3 372 | -3 456 | -3 845 |
| of which reserves for performing loans | -297 | -331 | -499 |
| Collective reserves | -2 703 | -2 602 | -2 334 |
| Impaired loans net | 2 181 | 2 002 | 2 350 |
| Reserves for off-balance sheet items | -202 | -209 | -188 |
| Total reserves | -6 574 | -6 598 | -6 866 |
| Level of impaired loans | 0.20% | 0.18% | 0.23% |
| (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) |
74.5% | 76.1% | 74.0% |
| Specific reserve ratio for impaired loans | 42.9% | 45.1% | 48.1% |
| Pledges taken over | |||
| Properties | 24 | 23 | 86 |
| Shares | 50 | 39 | 42 |
| Total volume of pledges taken over | 74 | 62 | 128 |
* Individually impaired loans.
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 |
SEB's major shareholders
| Share of capital, | |
|---|---|
| March 2008 | per cent |
| Investor AB | 20.5 |
| Trygg Foundation | 9.6 |
| Alecta | 4.2 |
| Swedbank Robur Funds | 3.1 |
| AFA Insurance | 2.5 |
| SHB/SPP Funds | 1.9 |
| Wallenberg Foundations | 1.5 |
| Fourth Swedish | |
| National Pension Fund | 1.4 |
| SEB Funds | 1.4 |
| Foreign shareholders | 19.6 |
| Source: SIS Ägarservice |
Additional Information Q1 2008
STOCKHOLM 30 APRIL 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=áë= çêÖ~åáëÉÇ=áå=íÜêÉÉ=ÄìëáåÉëë=~êÉ~ëX=pb_=qêóÖÖ=iáîI=pïÉÇÉåI= pb_=mÉåëáçåI=aÉåã~êâI=~åÇ=pb_=iáÑÉ=C=mÉåëáçå=fåíÉêå~J íáçå~äK=qÜÉ=Çáîáëáçå=ëÉêîÉë=ëçãÉ=NKU=ãáääáçå=ÅìëíçãÉêëK=få= lÅíçÄÉê=OMMTI=cçåÇÑ∏êë®âêáåÖë~âíáÉÄçä~ÖÉí=pb_=qêóÖÖ=iáî= ~åÇ=kó~=iáîÑ∏êë®âêáåÖë~âíáÉÄçä~ÖÉí=pb_=qêóÖÖ=iáî=EÒkó~= iáîÒF=ãÉêÖÉÇK=kó~=iáî=ï~ë=çéÉê~íÉÇ=~ÅÅçêÇáåÖ=íç=ãìíì~ä= éêáåÅáéäÉë=~åÇ=åçí=ÅçåëçäáÇ~íÉÇ=áå=pb_=qêóÖÖ=iáîÛë=êÉëìäíëK= ^ÑíÉê=íÜÉ=ãÉêÖÉê=íÜÉ=êÉëìäí=çÑ=íÜáë=ÄìëáåÉëë=Ó=ïáíÜ=êÉëéÉÅí= íç=áåîÉëíãÉåí=áåÅçãÉ=~åÇ=áåëìê~åÅÉ=êáëâ=J=áë=ëíáää=~ääçÅ~íÉÇ= íç=íÜÉ=éçäáÅóÜçäÇÉêëK=pb_=qêóÖÖ=iáî=ÜçïÉîÉê=Öì~ê~åíÉÉë= íÜÉ=Åçåíê~Åíì~ä=ÄÉåÉÑáíë=íç=íÜÉ=éçäáÅóÜçäÇÉêë=áå=íÜáë= ÄìëáåÉëëK=
Comments on the first quarter 2008
léÉê~íáåÖ=éêçÑáí=~ãçìåíÉÇ=íç=pbh=PSUãI=ïÜáÅÜ=ï~ë= pbh=VMã=çê=OM=éÉê=ÅÉåí=äÉëë=íÜ~å=ä~ëí=óÉ~êK=léÉê~íáåÖ= áåÅçãÉ=ÇÉÅêÉ~ëÉÇ=Äó=pbh=PQã=çê=P=éÉê=ÅÉåíK=qÜÉ=áåÅçãÉ= áåÅäìÇÉë=~å=ìåêÉ~äáëÉÇ=äçëë=çÑ=pbh=ROã=íç=ÅçîÉê=Öì~ê~åíÉÉ= ÅçããáíãÉåíë=áå=íÜÉ=kó~=iáî=ÄìëáåÉëëK=få=aÉÅÉãÄÉê=OMMTI=~= Öì~ê~åíÉÉ=Åçëí=çÑ=pbh=PUã=ï~ë=~äëç=~ÅÅçìåíÉÇ=ÑçêK= ^ÇàìëíÉÇ=Ñçê=çåÉJçÑÑ=áíÉãë=EpbhJROã=ãÉåíáçåÉÇ=Ñçê=ÅìêêÉåí= óÉ~ê=íçÖÉíÜÉê=ïáíÜ=~å=~ÇÇáíáçå~ä=çíÜÉê=áåÅçãÉ=çÑ=pbhHNOã= ~åÇ=Ñçê=éêÉîáçìë=óÉ~ê=pbhHPPãF=áåÅçãÉ=áåÅêÉ~ëÉÇ=Äó= pbh=PVã=çê=Q=éÉê=ÅÉåíK=qÜÉ=ìåáíJäáåâÉÇ=áåÅçãÉ=ÇÉÅêÉ~ëÉÇ= Äó=pbh=NVã=ïÜÉå=íÜÉ=ÑìåÇ=î~äìÉë=ïÉêÉ=ëèìÉÉòÉÇ=Äó=íÜÉ= åÉÖ~íáîÉ=ÇÉîÉäçéãÉåí=çå=íÜÉ=ïçêäÇ=ëíçÅâ=ã~êâÉíëK=líÜÉê= áåÅçãÉ=áåÅêÉ~ëÉÇ=Äó=pbh=RUãI=ïÜáÅÜ=ï~ë=ã~áåäó= ~ííêáÄìí~ÄäÉ=íç=pb_=mÉåëáçå=aÉåã~êâK=bñéÉåëÉë=êçëÉ=Äó= pbh=RSãI=çÑ=ïÜáÅÜ=pbh=PMã=ï~ë=ÇìÉ=íç=áåÅêÉ~ëÉÇ= ÇÉéêÉÅá~íáçå=çÑ=ÇÉÑÉêêÉÇ=~Åèìáëáíáçå=ÅçëíëK=fåîÉëíãÉåíë= ïáíÜáå=fåíÉêå~íáçå~ä=ÅçåíêáÄìíÉÇ=ïáíÜ=pbh=VãK=líÜÉê= ÉñéÉåëÉë=áåÅêÉ~ëÉÇ=Äó=pbh=NTã=çê=P=éÉê=ÅÉåíK=
lÑ=íÜÉ=ÄìëáåÉëë=~êÉ~ëI=pb_=mÉåëáçåI=aÉåã~êâI=Ü~Ç=íÜÉ= ÄÉëí=ÇÉîÉäçéãÉåí=Åçãé~êÉÇ=íç=ä~ëí=óÉ~êK=fåÅçãÉ=áåÅêÉ~ëÉÇ= ÇìÉ=íç=ÖççÇ=éÉêÑçêã~åÅÉ=áå=íÜÉ=Éèìáíó=Å~éáí~ä=ÑìåÇ=ÜÉäÇ=áå= ëÜçêí=íÉêã=ÄçåÇëK=líÜÉê=áåëìê~åÅÉ=áåÅçãÉ=~äëç=áåÅêÉ~ëÉÇK=
léÉê~íáåÖ=éêçÑáí=áåÅêÉ~ëÉÇ=Äó=pbh=NUãI=íç=pbh=NRTãK= léÉê~íáåÖ=éêçÑáí=áå=pb_=qêóÖÖ=iáîI=pïÉÇÉåI=áåÅäìÇáåÖ= ÅÉåíê~ä=ÑìåÅíáçåëI=ÇÉÅäáåÉÇ=Äó=pbh=SPã=íç=pbh=NVOãK=qÜáë= ï~ë=ÇìÉ=íç=íÜÉ=Öì~ê~åíÉÉ=Åçëí=Ñçê=íÜÉ=kó~=iáî=ÄìëáåÉëë=~åÇ= ~äëç=äçïÉê=ìåáíJäáåâÉÇ=áåÅçãÉK=léÉê~íáåÖ=éêçÑáí=áå=pb_=iáÑÉ= C=mÉåëáçå=fåíÉêå~íáçå~ä=ÇÉÅäáåÉÇ=Äó=pbh=QRã=íç=pbh=NVãK= qÜáë=áåÅäìÇÉÇ=~=çåÉJçÑÑ=áåÅçãÉ=çÑ=pbh=NOã=Åçãé~êÉÇ=íç= pbh=PPã=ÇìêáåÖ=íÜÉ=Ñáêëí=èì~êíÉê=ä~ëí=óÉ~êK=qÜÉ=çåÉJçÑÑ= áåÅçãÉ=ï~ë=êÉä~íÉÇ=íç=êÉî~äì~íáçå=çÑ=áåëìê~åÅÉ=êÉä~íÉÇ= éêçîáëáçåëK=qÜÉ=íÜáêÇ=~åÇ=ÑçìêíÜ=èì~êíÉê=OMMT=~äëç=áåÅäìÇÉÇ= çåÉJçÑÑ=áåÅçãÉ=çÑ=pbh=NTã=~åÇ=pbh=OOãI=êÉëéÉÅíáîÉäóK=
qÜÉ=íçí~ä=î~äìÉ=çÑ=ìåáíJäáåâ=ÑìåÇë=~ãçìåíÉÇ=íç= pbh=NORÄå=~í=íÜÉ=ÉåÇ=çÑ=íÜÉ=Ñáêëí=èì~êíÉê=Åçãé~êÉÇ=ïáíÜ= pbh=NPSÄå=~í=óÉ~ê=ÉåÇ=~åÇ=pbh=NOVã=çåÉ=óÉ~ê=~ÖçK=qçí~ä= ~ëëÉíë=ìåÇÉê=ã~å~ÖÉãÉåí=EåÉí=~ëëÉíëF=~ãçìåíÉÇ=íç= pbh=PUQÄåI=Ççïå=Äó=R=éÉê=ÅÉåí=Ñêçã=óÉ~ê=ÉåÇ=~åÇ=S=éÉê= ÅÉåí=Ñêçã=~=óÉ~ê=~ÖçK=
qçí~ä=ë~äÉëI=ïÉáÖÜíÉÇ=îçäìãÉI=~ãçìåíÉÇ=íç=pbh=NPKPÄåK= qÜáë=áë=~å=áåÅêÉ~ëÉ=çÑ=pbh=NKPÄå=Åçãé~êÉÇ=ïáíÜ=éêÉîáçìë= óÉ~êK=pbh=NKMÄå=çÑ=íÜÉ=áåÅêÉ~ëÉ=ï~ë=~ííêáÄìí~ÄäÉ=íç=íÜÉ=ìåáíJ äáåâÉÇ=éêçÇìÅí=mçêíÑçäáç=_çåÇ=EÇÉéçí=ÉåÇçïãÉåí= áåëìê~åÅÉFK=mçêíÑçäáç=_çåÇ=áë=~ÅÅçìåíÉÇ=Ñçê=áå=ÄìëáåÉëë=~êÉ~= fåíÉêå~íáçå~ä=Äìí=éêáã~êáäó=ëÉêîÉë=pïÉÇáëÜ=ÅìëíçãÉêëK= qê~Çáíáçå~ä=áåëìê~åÅÉ=ïáíÜáå=pb_=mÉåëáçå=aÉåã~êâ= áåÅêÉ~ëÉÇ=Äó=pbh=MKUÄåI=ïÜÉêÉ~ë=áíë=ìåáíJäáåâÉÇ=ë~äÉë= ÇêçééÉÇ=pbh=MKQÄåK=
SEB Trygg Liv, Sweden
qÜÉ=pïÉÇáëÜ=çéÉê~íáçåë=~êÉ=ÅçåÇìÅíÉÇ=é~êíäó=~ÅÅçêÇáåÖ=íç= ~=Ä~åÅ~ëëìê~åÅÉ=ÅçåÅÉéíI=áKÉK=~å=áåíÉÖê~íÉÇ=Ä~åâáåÖ=~åÇ= áåëìê~åÅÉ=ÄìëáåÉëëI=~åÇ=é~êíäó=íÜêçìÖÜ=áåëìê~åÅÉ= ãÉÇá~íçêë=~åÇ=çíÜÉê=ÉñíÉêå~ä=ãÉÇá~íçêëK=qÜÉ=éìêéçëÉ=çÑ=íÜÉ= Ä~åÅ~ëëìê~åÅÉ=ÅçåÅÉéí=áë=íç=çÑÑÉê=pb_Ûë=ÅìëíçãÉêë=~= ÅçãéäÉíÉ=ê~åÖÉ=çÑ=éêçÇìÅíë=~åÇ=ëÉêîáÅÉë=ïáíÜáå=íÜÉ= Ñáå~åÅá~ä=~êÉ~K=p~îáåÖë=áå=äáÑÉ=áåëìê~åÅÉ=éêçÇìÅíëI=áåÅäìÇáåÖ= éÉåëáçå=ë~îáåÖëI=êÉéêÉëÉåí=~=ÖêçïáåÖ=ëÜ~êÉ=çÑ=íÜÉ=pïÉÇáëÜ= ÜçìëÉÜçäÇëÛ=Ñáå~åÅá~ä=~ëëÉíëK=^ÅÅçêÇáåÖ=íç=íÜÉ=pb_= "pé~êÄ~êçãÉíÉêåÒ=íÜáë=ëÜ~êÉ=ï~ë=QT=éÉê=ÅÉåí=Äó=aÉÅÉãÄÉê= OMMTK=
Market position
p~äÉë=ÑçÅìë=áë=çå=ìåáíJäáåâÉÇI=ïÜáÅÜ=êÉéêÉëÉåíë=ÅäçëÉ=íç=UM= éÉê=ÅÉåí=çÑ=íçí~ä=ë~äÉëK=pb_=qêóÖÖ=iáî=áë=íÜÉ=ã~êâÉí=äÉ~ÇÉê=áå= Sweden within unit-linked insurance with a 22.1 per cent (29.3) share of new sales for the full year 2007. Distribution channels are SEB's branch offices, own sales force and insurance mediators.
Significant occupational pension business
Corporate sales have gradually grown and increased its share of total sales. During the first quarter the share however decreased to 68 per cent (71). SEB Trygg Liv is the market leader within new business unit-linked occupational pension. The market share for the full year 2007 was 18.7 per cent (26.5).
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 full year 2007 was 29.9 per cent (32.9).
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 140m (SEK 50m at year end) 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 11 per cent. In the unit-linked segment the market share is 17 per cent. The market share figures are preliminary for full year 2007.
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 endowment insurance). 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. 92 per cent of the sales volume is private and 8 per cent is corporate paid.
Profit & loss account
| Full year | ||||||
|---|---|---|---|---|---|---|
| SEKm | Q1 2008 | Q4 2007 | Q3 2007 | Q2 2007 | Q1 2007 | 2007 |
| Income unit-linked | 484 | 553 | 538 | 548 | 503 | 2 142 |
| Income other insurance | 295 | 322 | 316 | 245 | 325 | 1 208 |
| Other income | 159 | 149 | 179 | 108 | 144 | 580 |
| Total operating income | 938 | 1 024 | 1 033 | 901 | 972 | 3 930 |
| Operating expenses | -608 | -623 | -528 | -577 | -578 | -2 306 |
| Other expenses | -2 | 7 | -11 | -1 | -7 | -12 |
| Change in deferred acquisition costs | 40 | 67 | 7 | 45 | 71 | 190 |
| Total expenses | -570 | -549 | -532 | -533 | -514 | -2 128 |
| Operating profit 1) | 368 | 475 | 501 | 368 | 458 | 1 802 |
| Change in surplus value, net | 250 | 431 | 275 | 323 | 244 | 1 273 |
| Business result | 618 | 906 | 776 | 691 | 702 | 3 075 |
| Financial effects due to market fluctuations 2) | -1 819 | -436 | -322 | 353 | 343 | -62 |
| Change in assumptions 2) | -25 | 53 | 0 | 0 | 0 | 53 |
| Total result | -1 226 | 523 | 454 | 1 044 | 1 045 | 3 066 |
| Business equity | 7 500 | 7 500 | 7 500 | 7 500 | 7 500 | 7 500 |
| Return on business equity 3) | ||||||
| based on operating profit, % | 17,3% | 22,3% | 23,5% | 17,3% | 21,5% | 21,1% |
| based on business result, % | 29,0% | 42,5% | 36,4% | 32,4% | 32,9% | 36,1% |
| Expense ratio, % 4) | 8,2 | 8,0 | 9,1 | 9,7 | 8,5 | 8,7 |
| 1) SEB Trygg Liv, Sweden | 222 | 321 | 329 | 283 | 289 | 1 222 |
| SEB Pension, Denmark | 157 | 111 | 153 | 69 | 139 | 472 |
| SEB Life & Pension, International | 19 | 51 | 59 | 42 | 64 | 216 |
| Other including central functions etc | -30 | -8 | -40 | -26 | -34 | -108 |
| 368 | 475 | 501 | 368 | 458 | 1 802 |
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.
Sales volume insurance (weighted)
| Full year | ||||||
|---|---|---|---|---|---|---|
| SEKm | Q1 2008 | Q4 2007 | Q3 2007 | Q2 2007 | Q1 2007 | 2007 |
| Total | 13 314 | 12 018 | 9 667 | 10 668 | 11 986 | 44 339 |
| SEB Trygg Liv Sweden | 7 674 | 6 718 | 5 173 | 6 689 | 7 691 | 26 271 |
| Traditional life and sickness/health insurance | 564 | 510 | 342 | 435 | 504 | 1 791 |
| Unit-linked insurance | 7 110 | 6 208 | 4 831 | 6 254 | 7 187 | 24 480 |
| Private paid | 2 021 | 1 683 | 976 | 1 455 | 1 731 | 5 845 |
| Corporate paid | 5 653 | 5 035 | 4 197 | 5 234 | 5 960 | 20 426 |
| SEB Pension Denmark | 3 947 | 3 667 | 3 360 | 3 023 | 3 551 | 13 601 |
| Traditional life and sickness/health insurance* | 2 302 | 1 811 | 1 833 | 1 382 | 1 467 | 6 493 |
| Unit-linked insurance | 1 645 | 1 856 | 1 527 | 1 641 | 2 084 | 7 108 |
| Private paid | 885 | 852 | 495 | 684 | 1 009 | 3 040 |
| Corporate paid | 3 062 | 2 815 | 2 865 | 2 339 | 2 542 | 10 561 |
| SEB Life & Pension International | 1 693 | 1 633 | 1 134 | 956 | 744 | 4 467 |
| Traditional life and sickness insurance | 152 | 192 | 150 | 132 | 165 | 639 |
| Unit-linked insurance | 1 541 | 1 441 | 984 | 824 | 579 | 3 828 |
| Private paid | 1 309 | 1 320 | 823 | 679 | 573 | 3 395 |
| Corporate paid | 384 | 313 | 311 | 277 | 171 | 1 072 |
Premium income and Assets under management
| SEKm | Q1 2008 | Q4 2007 | Q3 2007 | Q2 2007 | Q1 2007 | Full year 2007 |
|---|---|---|---|---|---|---|
| Premium income | ||||||
| Total | 7 421 | 7 794 | 5 828 | 5 963 | 6 785 | 26 370 |
| SEB Trygg Liv Sweden | 4 048 | 4 098 | 3 215 | 3 625 | 4 432 | 15 370 |
| Traditional life and sickness/health insurance | 755 | 1 002 | 657 | 752 | 869 | 3 280 |
| Unit-linked insurance | 3 293 | 3 096 | 2 558 | 2 873 | 3 563 | 12 090 |
| SEB Pension Denmark | 1 726 | 2 319 | 1 743 | 1 535 | 1 622 | 7 219 |
| Traditional life and sickness insurance | 1 123 | 1 506 | 1 112 | 1 105 | 865 | 4 588 |
| Unit-linked insurance | 603 | 813 | 631 | 430 | 757 | 2 631 |
| SEB Life & Pension International | 1 647 | 1 377 | 870 | 803 | 731 | 3 781 |
| Traditional life and sickness insurance | 76 | 84 | 64 | 18 | 95 | 261 |
| Unit-linked insurance | 1 571 | 1 293 | 806 | 785 | 636 | 3 520 |
| Assets under management, net assets * | ||||||
| Total | 384 300 | 408 400 | 411 700 | 415 200 | 407 700 | 408 400 |
| SEB Trygg Liv Sweden | 281 400 | 303 600 | 309 400 | 312 100 | 303 900 | 303 600 |
| Traditional life and sickness/health insurance | 181 700 | 192 700 | 197 100 | 199 200 | 197 000 | 192 700 |
| Unit-linked insurance | 99 700 | 110 900 | 112 300 | 112 900 | 106 900 | 110 900 |
| SEB Pension Denmark | 85 100 | 87 300 | 85 000 | 85 900 | 87 600 | 87 300 |
| Traditional life and sickness insurance | 76 800 | 79 000 | 77 300 | 78 500 | 80 900 | 79 000 |
| Unit-linked insurance | 8 300 | 8 300 | 7 700 | 7 400 | 6 700 | 8 300 |
| SEB Life & Pension International | 17 800 | 17 500 | 17 300 | 17 200 | 16 200 | 17 500 |
| Traditional life and sickness insurance | 500 | 500 | 500 | 500 | 900 | 500 |
| Unit-linked insurance | 17 300 | 17 000 | 16 800 | 16 700 | 15 300 | 17 000 |
* rounded to whole 100 millions
Surplus value accounting
| SEKm | 01 2008 | 04 2007 | 03 2007 | 02 2007 | 01 2007 | Full year 2007 |
|---|---|---|---|---|---|---|
| Surplus values, opening balance Adjustment opening balance 1) |
14 4 96 | 14 085 334 |
14 130 | 13 4 52 | 12872 | 12872 334 |
| Present value of new sales 2) Return/realised value on policies from previous periods Actual outcome compared to assumptions 3) |
449 $-71$ -88 |
576 $-127$ 49 |
319 $-78$ 41 |
396 $-68$ 40 |
482 $-62$ $-105$ |
1 7 7 3 $-335$ 25 |
| Change in surplus values ongoing business, gross | 290 | 498 | 282 | 368 | 315 | 1463 |
| Capitalisation of acquisition costs for the period Amortisation of capitalised acquisition costs |
$-188$ 148 |
$-196$ 129 |
$-125$ 118 |
$-173$ 128 |
$-189$ 118 |
-683 493 |
| Change in surplus values ongoing business, net 4) | 250 | 431 | 275 | 323 | 244 | 1 2 7 3 |
| Financial effects due to short term market fluctuations 5) Change in assumptions 6) |
$-1819$ $-25$ |
$-436$ 53 |
$-322$ | 353 | 343 | $-62$ 53 |
| Total change in surplus values | $-1594$ | 48 | $-47$ | 676 | 587 | 1 264 |
| Exchange rate differences etc | -6 | 29 | 2 | 2 | $-7$ | 26 |
| Surplus values, closing balance 7) | 12896 | 14 496 | 14 085 | 14 130 | 13452 | 14 496 |
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 01 2008 administrative costs per policy in SEB Pension were adjusted. 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.
$\sqrt[n]{2}$ 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 3,066m at March 31, 2008).
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 Q4 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-1,431/+1,667m. 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 +1,485/-1,287m.
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.
| SEKm | Apr 2007-Mar 2008 | Full year 2007 | Full vear 2006 | Full year 2005 |
|---|---|---|---|---|
| Sales volume weighted (regular $+$ single/10) | 3741 | 3689 | 3 3 4 5 | 3678 |
| Present value of new sales | 1 704 | 1 7 7 5 | 1788 | 1924 |
| Sales expenses | $-910$ | $-901$ | $-970$ | $-1116$ |
| Profit from new business | 794 | 874 | 818 | 808 |
| Sales margin new business | 21,2% | 23.7% | 24.5% | 22,0% |
| 2007 and later is calculated for the total division. 2005 - 2006 is business area Sweden. | ||||
| The effect of Denmark and the Baltics: | ||||
| Sales volume weighted (regular $+$ single/10) | 798 | 845 | ||
| Profit from new business | 195 | 224 |
| Sales margin new business | 0.9% | 0.8% |
|---|---|---|
The margin during 2008 is adversely affected by a change in the product mix.
Fmbedded value
| SEKm | 31 Mar 2008 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2005 |
|---|---|---|---|---|
| Equity $1$ Surplus values |
9 1 4 8 12896 |
8836 14 496 |
8450 12872 |
7 696 10 755 |
| 1) Dividend paid to the parent company during the period | $-1150$ | $-400$ |
Traditional life insurance, Sweden
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.
Appendix 2 Credit Exposure
Credit Exposure by Industry, SEKbn (before provisions for possible credit losses)
| TOTAL | |||||
|---|---|---|---|---|---|
| 31 Mar 2008 | % | 31 Dec 2007 | % | ||
| Banks | 268.7 | 16.7 | 247.6 | 16.0 | |
| Corporate | 581.2 | 36.2 | 572.5 | 36.9 | |
| Finance and insurance | 58.5 | 3.6 | 48.7 | 3.1 | |
| Wholesale and retail | 69.2 | 4.3 | 70.6 | 4.5 | |
| Transportation | 60,0 | 3.7 | 53.4 | 3.4 | |
| Other service sectors | 108.2 | 6.7 | 117.0 | 7.5 | |
| Construction | 21.1 | 1.3 | 21.0 | 1.4 | |
| Manufacturing | 159.5 | 9.9 | 157.5 | 10.2 | |
| Other | 104.8 | 6.5 | 104.3 | 6.7 | |
| Property Management | 212.9 | 13.3 | 210.1 | 13.5 | |
| Public Administration | 96.3 | 6.0 | 87.6 | 5.6 | |
| Households | 446.2 | 27.8 | 434.0 | 27.97 | |
| Housing loans | 339.8 | 21.2 | 330.5 | 21.3 | |
| Other | 106.3 | 6.6 | 103.5 | 6.7 | |
| Total credit portfolio | 1 605.2 | 100.0 | 1 551.7 | 100.0 | |
| Repos | 259.2 | 227.6 | |||
| Credit institutions | 120.8 | 97.2 | |||
| General public | 138.5 | 130.4 | |||
| Bonds and other interest bearing securities | 560.5 | 530.6 |
Appendix 3a Capital base of the SEB financial group of undertakings
| 31 March | 31 December | |
|---|---|---|
| SEKm | 2008 | 2007 |
| Total equity according to balance sheet (1) | 77 059 | 76 719 |
| ./. Proposed dividend 2007 (excl repurchased shares) | -4 442 | -4 442 |
| ./. Estimated dividend for the current year (excl repurchased shares) | -1 113 | |
| ./. Deductions for investments outside the financial group of undertakings (2) | -89 | -81 |
| ./. Other deductions outside the financial group of undertakings (3) | -3 169 | -2 975 |
| =Total equity in the capital adequacy | 68 246 | 69 221 |
| Core capital contribution | 10 863 | 10 907 |
| Adjustment for hedge contracts (4) | 307 | 237 |
| Net provisioning amount for IRB-reported credit exposures (5) | -22 | -235 |
| Unrealised value changes on available-for-sale financial assets (6) | 1 627 | 572 |
| ./. Goodwill (7) | -6 535 | -6 079 |
| ./. Other intangible assets | -1 332 | -1 135 |
| ./. Deferred tax assets | -741 | -786 |
| = Core capital (tier 1) | 72 413 | 72 702 |
| Dated subordinated debt | 18 446 | 18 670 |
| ./. Deduction for remaining maturity | -1 567 | -1 414 |
| Perpetual subordinated debt | 12 843 | 14 256 |
| Net provisioning amount for IRB-reported credit exposures (5) | -22 | -235 |
| Unrealised gains on available-for-sale financial assets (6) | 1 160 | 451 |
| ./. Deductions for investments outside the financial group of undertakings (2) | -89 | -81 |
| = Supplementary capital (tier 2) | 30 771 | 31 647 |
| ./. Deductions for investments in insurance companies (8) | -10 591 | -10 592 |
| ./. Deduction for pension assets in excess of related liabilities (9) | -1 497 | -784 |
| = Capital base | 91 096 | 92 973 |
To note:
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Appendix 3b Capital requirements for the SEB financial group of undertakings
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| Capital requirements | 31 March | 31 December |
|---|---|---|
| SEKm | 2008 | 2007 |
| Credit risk, IRB reported capital requirements | ||
| Institutions | 4 059 | 4 506 |
| Corporates (1) | 26 911 | 21 420 |
| Securitisation positions | 272 | 174 |
| Retail mortgages | 4 553 | 3 409 |
| Other exposure classes | 157 | |
| Total for credit risk, IRB approach | 35 952 | 29 509 |
| Other Basel II reported capital requirements | ||
| Credit risk, Standardised approach (2) | 13 877 | 6 227 |
| Operational risk, Basic indicator approach | 5 428 | 3 723 |
| Currency price risk | 465 | 580 |
| Trading book risks | 4 135 | 4 010 |
| Total, reporting according to Basel II | 59 857 | 44 049 |
| Reporting according to Basel I | ||
| Credit risk | 14 859 | |
| Currency price risk | 0 | |
| Trading book risks | 41 | |
| Total, reporting according to Basel I | 14 900 | |
| Summary | ||
| Credit risk | 49 829 | 50 595 |
| Operational risk | 5 428 | 3 723 |
| Market risk | 4 600 | 4 631 |
| Total | 59 857 | 58 949 |
| note: | ||
| ÉñéçëìêÉ= | ||
| Adjustment for flooring rules Additional requirement according to transitional flooring (3) |
5 542 | 8 409 |
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Appendix 3c Capital adequacy analysis
Representing the business volume as RWA (risk weighted assets, 12.5 times the capital requirement) the regulatory minima 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.
| 31 March | 31 December | |
|---|---|---|
| Capital adequacy | 2008 | 2007 |
| Capital resources | ||
| Core capital (tier 1) | 72413 | 72 702 |
| Capital base | 91 0 96 | 92 973 |
| Capital adequacy with risk weighting according to Basel I | ||
| Capital requirement | 72 715 | 71 398 |
| Expressed as Risk weighted assets | 908 933 | 892 473 |
| Core capital ratio | 8,0% | 8.1% |
| Total capital ratio | 10,0% | 10,4% |
| Capital adequacy quotient (capital base / capital requirement) | 1,25 | 1,30 |
| Capital adequacy as officially reported with transitional rules (Basel II) | ||
| Transition floor applied | 90% | 95% |
| Capital requirement | 65 399 | 67 358 |
| Expressed as Risk weighted assets | 817487 | 841 974 |
| Core capital ratio | 8,9% | 8,6% |
| Total capital ratio | 11.1% | 11,0% |
| Capital adequacy quotient (capital base / capital requirement) | 1,39 | 1,38 |
| Capital adequacy without transitional floor (Basel II) | ||
| Capital requirement | 59857 | 58 949 |
| Expressed as Risk weighted assets | 748 213 | 736 864 |
| Core capital ratio | 9.7% | 9,9% |
| Total capital ratio | 12.2% | 12,6% |
| Capital adequacy quotient (capital base / capital requirement) | 1,52 | 1,58 |
Compared with 2007 - when only SEB AB, SEB AG and SEB Gyllenberg were reported according to Basel II - the following changes hold from the year 2008:
- IRB reporting of retail, corporate and interbank exposures in Latvia and Lithuania that previously followed $\Omega$ Basel I (11 per cent of the total credit risk RWA).
- Basel II Standardised reporting of other credit exposures that previously followed Basel I (16 per cent of the $\circ$ total credit risk RWA).
- Operational risk reporting extended to the entire Group. $\circ$
Above changes – together with stable average risk weight on portfolios that were IRB reported during 2007 – had a neutral net effect on the overall risk weight of assets; before the effect of regulatory floors Basel II RWA increased with two per cent from year end to end of March; also Basel I RWA increased with two per cent over the quarter.
Considering also the lowering of the regulatory floor from 95 per cent of Basel I (2007) to 90 per cent (2008), reported RWA decreased from SEK 842bn at year end to 817 at end of the first quarter.
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| IRB reported credit exposures | 31 March | 31 December | ||
|---|---|---|---|---|
| Average risk weight | 2008 | 2007 | ||
| Institutions | 14,4% | 15,1% | ||
| Corporates | 51,0% | 53,4% | ||
| Securitisation positions | 7,4% | 7,4% | ||
| Retail mortgages | 18,9% | 16,1% |
råJÑäççêÉÇ=_~ëÉä=ff=ot^=ï~ë=NU=éÉê=ÅÉåí=äçïÉê=íÜ~å=_~ëÉä=f=ot^K=pb_=ìëÉë=~=Öê~Çì~ä=êçääJçìí=çÑ=íÜÉ=_~ëÉä=ff= Ñê~ãÉïçêâX=íÜÉ=ìäíáã~íÉ=í~êÖÉí=áë=íç=ìëÉ=fo_=êÉéçêíáåÖ=Ñçê=~ää=ÅêÉÇáí=ÉñéçëìêÉë=ÉñÅÉéí=íÜçëÉ=íç=ÅÉåíê~ä=ÖçîÉêåãÉåíëI= ÅÉåíê~ä=Ä~åâë=~åÇ=äçÅ~ä=ÖçîÉêåãÉåíë=~åÇ=~ìíÜçêáíáÉëI=~åÇ=ÉñÅäìÇáåÖ=~=ëã~ää=åìãÄÉê=çÑ=áåëáÖåáÑáÅ~åí=éçêíÑçäáçëK=qÜÉ= ÅìêêÉåí=ÄÉëí=Éëíáã~íÉ=áåÇáÅ~íÉë=íÜ~í=íÜáë=ïçìäÇ=ãÉ~å=~=êÉÇìÅíáçå=áå=íçí~ä=ot^=EÅçãé~êÉÇ=ïáíÜ=_~ëÉä=fF=çÑ=~í=äÉ~ëí=PM= éÉê=ÅÉåíK=qÜáë=Å~ååçí=ÄÉ=Éèì~íÉÇ=ïáíÜ=~=ëáãáä~ê=Å~éáí~ä=êÉäÉ~ëÉI=ÜçïÉîÉêI=ÇìÉ=íç=íÜÉ=åÉï=Ñê~ãÉïçêâÛë=áåÅêÉ~ëÉÇ= ÄìëáåÉëë=ÅóÅäÉ=ëÉåëáíáîáíóI=ëìéÉêîáëçêó=Éî~äì~íáçå=~åÇ=ê~íáåÖ=~ÖÉåÅó=ÅçåëáÇÉê~íáçåëK
Appendix 4 Market risk
qÜÉ=dêçìéÛë=êáëâ=í~âáåÖ=áå=íê~ÇáåÖ=çéÉê~íáçåë=áë=ãÉ~ëìêÉÇ= Äó=î~äìÉ=~í=êáëâI=s~oK=qÜÉ=dêçìé=Ü~ë=ÅÜçëÉå=~=äÉîÉä=çÑ=VV= éÉê=ÅÉåí=éêçÄ~Äáäáíó=~åÇ=~=íÉåJÇ~ó=íáãÉJÜçêáòçåK=qÜÉ=í~ÄäÉ= ÄÉäçï=ëÜçïë=íÜÉ=êáëâ=Äó=êáëâ=íóéÉK=qÜÉ=íìêÄìäÉåÅÉ=~åÇ=ÜáÖÜ= îçä~íáäáíó=áå=íÜÉ=Ñáå~åÅá~ä=ã~êâÉíë=íÜ~í=ê~áëÉÇ=s~o=ÑáÖìêÉë= ÇìêáåÖ=íÜÉ=ëÉÅçåÇ=Ü~äÑ=çÑ=OMMT=Ü~ë=ÅçåíáåìÉÇ=áå=íÜÉ=Ñáêëí=
èì~êíÉê=çÑ=OMMUI=ÖáîáåÖ=~=ÜáÖÜÉê=s~o=íÜ~å=íÜÉ=~îÉê~ÖÉ=çîÉê= íÜÉ=Ñìää=óÉ~ê=OMMTK=qÜáë=Ü~ë=éêáã~êáäó=áãé~ÅíÉÇ=áåíÉêÉëí=ê~íÉ= êáëâK=bèìáíó=éêáÅÉ=îçä~íáäáíó=ÅçåíáåìÉë=íç=ÄÉ=ÜáÖÜ=Äìí= êÉÇìÅÉÇ=éçëáíáçåë=Å~ìëÉÇ=íÜÉ=~îÉê~ÖÉ=s~o=äÉîÉä=ÇìêáåÖ=íÜÉ= Ñáêëí=èì~êíÉê=çÑ=OMMU=íç=ÄÉ=áå=äáåÉ=ïáíÜ=íÜÉ=~îÉê~ÖÉ=Ñçê=OMMTK
| SEKm | Min | Max | 31 Mar 2008 | Average 2008 | Average 2007 |
|---|---|---|---|---|---|
| Interest risk | 57 | 256 | 137 | 110 | 64 |
| Currency risk | 5 | 68 | 16 | 24 | 21 |
| Equity risk | 26 | 141 | 109 | 77 | 75 |
| Diversification | -124 | -81 | -68 | ||
| Total | 79 | 254 | 138 | 130 | 92 |
Appendix 5 Profit and loss accounts by division, business area and quarter
The SEB Group
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 3 767 | 3 939 | 3 917 | 4 375 | 4 223 | 15 998 |
| Net fee and commission income | 4 277 | 4 544 | 4 101 | 4 129 | 3 801 | 17 051 |
| Net financial income | 1 311 | 1 345 | 163 | 420 | -161 | 3 239 |
| Net life insurance income | 743 | 642 | 782 | 766 | 713 | 2 933 |
| Net other income | 95 | 249 | 530 | 345 | 226 | 1 219 |
| Total operating income | 10 193 | 10 719 | 9 493 | 10 035 | 8 802 | 40 440 |
| Staff costs | -3 796 | -3 774 | -3 564 | -3 787 | -3 899 | -14 921 |
| Other expenses | -1 678 | -1 768 | -1 691 | -1 782 | -1 756 | -6 919 |
| Depreciation of assets | -328 | -342 | -325 | -359 | -372 | -1 354 |
| Total operating expenses | -5 802 | -5 884 | -5 580 | -5 928 | -6 027 | -23 194 |
| Profit before credit losses etc | 4 391 | 4 835 | 3 913 | 4 107 | 2 775 | 17 246 |
| Gains less losses from assets | -1 | 2 | 787 | 3 | 788 | |
| Net credit losses including change in value | ||||||
| of seized assets | -234 | -280 | -189 | -313 | -368 | -1 016 |
| Operating profit | 4 157 | 4 554 | 3 726 | 4 581 | 2 410 | 17 018 |
| Income tax expense | -895 | -1 032 | -625 | -824 | -562 | -3 376 |
| Net profit continued operations | 3 262 | 3 522 | 3 101 | 3 757 | 1 848 | 13 642 |
| Discontinued operations | ||||||
| Net profit | 3 262 | 3 522 | 3 101 | 3 757 | 1 848 | 13 642 |
| Attributable to minority interests | 4 | 8 | 7 | 5 | 1 | 24 |
| Attributable to equity holders | 3 258 | 3 514 | 3 094 | 3 752 | 1 847 | 13 618 |
Merchant Banking
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 1 328 | 1 377 | 1 407 | 1 498 | 1 525 | 5 610 |
| Net fee and commission income | 1 561 | 1 659 | 1 364 | 1 361 | 1 241 | 5 945 |
| Net financial income | 1 164 | 1 169 | 31 | 249 | 119 | 2 613 |
| Net other income | 51 | 183 | 411 | 194 | 44 | 839 |
| Total operating income | 4 104 | 4 388 | 3 213 | 3 302 | 2 929 | 15 007 |
| Staff costs | -1 098 | -1 172 | -921 | -1 055 | -964 | -4 246 |
| Other expenses | -857 | -877 | -887 | -868 | -909 | -3 489 |
| Depreciation of assets | -23 | -17 | -19 | -26 | -22 | -85 |
| Total operating expenses | -1 978 | -2 066 | -1 827 | -1 949 | -1 895 | -7 820 |
| Profit before credit losses etc | 2 126 | 2 322 | 1 386 | 1 353 | 1 034 | 7 187 |
| Gains less losses from assets | 2 | 3 | 2 | |||
| Net credit losses | -109 | -115 | -33 | -69 | -29 | -326 |
| Operating profit | 2 017 | 2 207 | 1 353 | 1 286 | 1 008 | 6 863 |
Merchant Banking
Trading and Capital Markets
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 144 | 100 | 163 | 217 | 290 | 624 |
| Net fee and commission income | 636 | 718 | 627 | 655 | 528 | 2 636 |
| Net financial income | 1 155 | 1 156 | -15 | 186 | 80 | 2 482 |
| Net other income | 12 | 27 | 283 | 14 | 10 | 336 |
| Total operating income | 1 947 | 2 001 | 1 058 | 1 072 | 908 | 6 078 |
| Staff costs | -499 | -547 | -405 | -480 | -430 | -1 931 |
| Other expenses | -383 | -384 | -384 | -387 | -414 | -1 538 |
| Depreciation of assets | -7 | -6 | -6 | -9 | -6 | -28 |
| Total operating expenses | -889 | -937 | -795 | -876 | -850 | -3 497 |
| Profit before credit losses etc | 1 058 | 1 064 | 263 | 196 | 58 | 2 581 |
| Gains less losses from assets | -1 | -1 | -1 | |||
| Net credit losses | -22 | -25 | -38 | -20 | -85 | |
| Operating profit | 1 036 | 1 039 | 224 | 196 | 37 | 2 495 |
Merchant Banking
Corporate Banking
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 849 | 884 | 856 | 918 | 871 | 3 507 |
| Net fee and commission income | 528 | 532 | 347 | 303 | 316 | 1 710 |
| Net financial income | -14 | -9 | 22 | 37 | 22 | 36 |
| Net other income | 34 | 147 | 123 | 170 | 28 | 474 |
| Total operating income | 1 397 | 1 554 | 1 348 | 1 428 | 1 237 | 5 727 |
| Staff costs | -501 | -518 | -421 | -464 | -427 | -1 904 |
| Other expenses | -160 | -165 | -188 | -121 | -170 | -634 |
| Depreciation of assets | -14 | -9 | -12 | -14 | -13 | -49 |
| Total operating expenses | -675 | -692 | -621 | -599 | -610 | -2 587 |
| Profit before credit losses etc | 722 | 862 | 727 | 829 | 627 | 3 140 |
| Gains less losses from assets | 1 | 2 | 4 | 3 | ||
| Net credit losses | -87 | -87 | 7 | -69 | -9 | -236 |
| Operating profit | 635 | 775 | 735 | 762 | 622 | 2 907 |
Merchant Banking
Global Transaction Services
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 335 | 393 | 388 | 363 | 364 | 1 479 |
| Net fee and commission income | 397 | 409 | 390 | 403 | 397 | 1 599 |
| Net financial income | 23 | 22 | 25 | 25 | 17 | 95 |
| Net other income | 5 | 8 | 5 | 10 | 5 | 28 |
| Total operating income | 760 | 832 | 808 | 801 | 783 | 3 201 |
| Staff costs | -98 | -107 | -96 | -110 | -106 | -411 |
| Other expenses | -314 | -328 | -315 | -360 | -325 | -1 317 |
| Depreciation of assets | -2 | -2 | -1 | -3 | -3 | -8 |
| Total operating expenses | -414 | -437 | -412 | -473 | -434 | -1 736 |
| Profit before credit losses etc | 346 | 395 | 396 | 328 | 349 | 1 465 |
| Gains less losses from assets | ||||||
| Net credit losses | -2 | -2 | -4 | |||
| Operating profit | 346 | 393 | 394 | 328 | 349 | 1 461 |
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 2 276 | 2 429 | 2 444 | 2 549 | 2 551 | 9 698 |
| Net fee and commission income | 1 523 | 1 549 | 1 510 | 1 637 | 1 431 | 6 219 |
| Net financial income | 92 | 114 | 106 | 170 | 95 | 482 |
| Net other income | 22 | 35 | 38 | 64 | 23 | 159 |
| Total operating income | 3 913 | 4 127 | 4 098 | 4 420 | 4 100 | 16 558 |
| Staff costs | -1 018 | -1 045 | -1 087 | -1 085 | -1 154 | -4 235 |
| Other expenses | -1 296 | -1324 | -1 254 | -1 414 | -1 304 | -5 286 |
| Depreciation of assets | -75 | -87 | -78 | -78 | -77 | -318 |
| Total operating expenses | -2 389 | -2 456 | -2 419 | -2 577 | -2 535 | -9 839 |
| Profit before credit losses etc | 1 525 | 1 672 | 1 680 | 1 844 | 1 565 | 6 719 |
| Gains less losses from assets | 2 | 2 | 4 | |||
| Net credit losses | -122 | -161 | -146 | -286 | -311 | -715 |
| Operating profit | 1 403 | 1 511 | 1 536 | 1 560 | 1 254 | 6 008 |
Retail Banking
Retail Sweden
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 1 007 | 1 005 | 1 018 | 1 076 | 1 085 | 4 106 |
| Net fee and commission income | 462 | 415 | 409 | 460 | 393 | 1 746 |
| Net financial income | 56 | 77 | 65 | 105 | 57 | 303 |
| Net other income | 12 | 13 | 7 | 9 | 10 | 41 |
| Total operating income | 1 537 | 1 510 | 1 499 | 1 650 | 1 545 | 6 196 |
| Staff costs | -390 | -403 | -410 | -403 | -450 | -1 606 |
| Other expenses | -519 | -527 | -495 | -554 | -509 | -2 093 |
| Depreciation of assets | -2 | -13 | -3 | -3 | -3 | -21 |
| Total operating expenses | -911 | -943 | -908 | -960 | -962 | -3 720 |
| Profit before credit losses etc | 627 | 568 | 592 | 691 | 583 | 2 476 |
| Gains less losses from assets | ||||||
| Net credit losses | -25 | -19 | -22 | 2 | -10 | -64 |
| Operating profit | 602 | 549 | 570 | 693 | 573 | 2 412 |
| Retail Estonia |
|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 204 | 218 | 226 | 223 | 211 | 871 |
| Net fee and commission income | 82 | 91 | 88 | 91 | 86 | 352 |
| Net financial income | 13 | 14 | 15 | 22 | 9 | 64 |
| Net other income | 5 | -2 | 18 | 3 | 21 | |
| Total operating income | 299 | 328 | 327 | 354 | 309 | 1 308 |
| Staff costs | -48 | -54 | -58 | -60 | -59 | -220 |
| Other expenses | -56 | -59 | -56 | -65 | -72 | -236 |
| Depreciation of assets | -4 | -5 | -5 | -4 | -5 | -18 |
| Total operating expenses | -108 | -118 | -119 | -129 | -136 | -474 |
| Profit before credit losses etc | 191 | 210 | 208 | 225 | 173 | 834 |
| Gains less losses from assets | ||||||
| Net credit losses | -12 | -17 | -32 | -153 | -166 | -214 |
| Operating profit | 179 | 193 | 176 | 72 | 7 | 620 |
Retail Banking
Retail Latvia
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 190 | 278 | 258 | 265 | 273 | 991 |
| Net fee and commission income | 74 | 89 | 86 | 89 | 44 | 338 |
| Net financial income | 6 | 7 | 11 | 8 | 10 | 32 |
| Net other income | -5 | -8 | -5 | -6 | -24 | |
| Total operating income | 265 | 366 | 350 | 356 | 327 | 1 337 |
| Staff costs | -43 | -51 | -51 | -58 | -54 | -203 |
| Other expenses | -73 | -74 | -74 | -86 | -87 | -307 |
| Depreciation of assets | -7 | -8 | -8 | -9 | -9 | -32 |
| Total operating expenses | -123 | -133 | -133 | -153 | -150 | -542 |
| Profit before credit losses etc | 142 | 233 | 217 | 203 | 177 | 795 |
| Gains less losses from assets | ||||||
| Net credit losses | -8 | -31 | -28 | -45 | -38 | -112 |
| Operating profit | 134 | 202 | 189 | 158 | 139 | 683 |
| Retail Lithuania | |
|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 315 | 380 | 388 | 433 | 412 | 1 516 |
| Net fee and commission income | 88 | 108 | 110 | 112 | 91 | 418 |
| Net financial income | 15 | 16 | 16 | 16 | 17 | 63 |
| Net other income | 8 | 8 | 3 | 12 | 8 | 31 |
| Total operating income | 426 | 512 | 517 | 573 | 528 | 2 028 |
| Staff costs | -74 | -70 | -75 | -86 | -85 | -305 |
| Other expenses | -87 | -99 | -94 | -123 | -108 | -403 |
| Depreciation of assets | -9 | -9 | -10 | -10 | -8 | -38 |
| Total operating expenses | -170 | -178 | -179 | -219 | -201 | -746 |
| Profit before credit losses etc | 256 | 334 | 338 | 354 | 327 | 1 282 |
| Gains less losses from assets | 2 | 2 | ||||
| Net credit losses | -15 | -44 | -32 | -34 | -19 | -125 |
| Operating profit | 241 | 290 | 308 | 320 | 308 | 1 159 |
Retail Banking
Retail Germany
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 473 | 471 | 469 | 484 | 480 | 1 897 |
| Net fee and commission income | 374 | 350 | 350 | 330 | 340 | 1 404 |
| Net financial income | 3 | 3 | 3 | |||
| Net other income | 6 | 6 | 28 | 16 | 1 | 56 |
| Total operating income | 853 | 827 | 847 | 833 | 824 | 3 360 |
| Staff costs | -293 | -293 | -328 | -308 | -327 | -1 222 |
| Other expenses | -416 | -405 | -396 | -410 | -390 | -1 627 |
| Depreciation of assets | -44 | -45 | -44 | -43 | -42 | -176 |
| Total operating expenses | -753 | -743 | -768 | -761 | -759 | -3 025 |
| Profit before credit losses etc | 100 | 84 | 79 | 72 | 65 | 335 |
| Gains less losses from assets | -1 | 2 | 1 | |||
| Net credit losses | -31 | -16 | -11 | -8 | -27 | -66 |
| Operating profit | 68 | 68 | 68 | 66 | 38 | 270 |
Cards
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 89 | 77 | 85 | 66 | 90 | 317 |
| Net fee and commission income | 436 | 487 | 462 | 543 | 469 | 1 928 |
| Net financial income | 17 | 17 | ||||
| Net other income | 8 | 16 | 12 | 23 | 8 | 59 |
| Total operating income | 533 | 580 | 559 | 649 | 567 | 2 321 |
| Staff costs | -170 | -173 | -165 | -171 | -179 | -679 |
| Other expenses | -145 | -155 | -141 | -170 | -138 | -611 |
| Depreciation of assets | -8 | -8 | -9 | -9 | -10 | -34 |
| Total operating expenses | -323 | -336 | -315 | -350 | -327 | -1 324 |
| Profit before credit losses etc | 210 | 244 | 244 | 299 | 240 | 997 |
| Gains less losses from assets | 1 | 1 | ||||
| Net credit losses | -31 | -35 | -19 | -49 | -51 | -134 |
| Operating profit | 179 | 209 | 225 | 251 | 189 | 864 |
Wealth Management
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 186 | 198 | 214 | 245 | 242 | 843 |
| Net fee and commission income | 1 024 | 1 086 | 988 | 979 | 958 | 4 077 |
| Net financial income | 14 | 16 | 3 | 46 | 20 | 79 |
| Net other income | 6 | 27 | 13 | 40 | 9 | 86 |
| Total operating income | 1 230 | 1 327 | 1 218 | 1 310 | 1 229 | 5 085 |
| Staff costs | -346 | -314 | -325 | -355 | -383 | -1 340 |
| Other expenses | -253 | -243 | -255 | -289 | -288 | -1 040 |
| Depreciation of assets | -13 | -21 | -12 | -14 | -24 | -60 |
| Total operating expenses | -612 | -578 | -592 | -658 | -695 | -2 440 |
| Profit before credit losses etc | 618 | 749 | 626 | 652 | 534 | 2 645 |
| Gains less losses from assets | -1 | -1 | ||||
| Net credit losses | -4 | -5 | -8 | 10 | -25 | -7 |
| Operating profit | 614 | 743 | 618 | 662 | 509 | 2 637 |
Wealth Management
Institutional Clients
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 44 | 41 | 49 | 56 | 56 | 190 |
| Net fee and commission income | 807 | 881 | 776 | 807 | 770 | 3 271 |
| Net financial income | 3 | 5 | 6 | 3 | 4 | 17 |
| Net other income | 5 | 8 | 11 | 2 | 7 | 26 |
| Total operating income | 859 | 935 | 842 | 868 | 837 | 3 504 |
| Staff costs | -216 | -184 | -197 | -236 | -242 | -833 |
| Other expenses | -158 | -147 | -160 | -188 | -161 | -653 |
| Depreciation of assets | -5 | -5 | -6 | -6 | -17 | -22 |
| Total operating expenses | -379 | -336 | -363 | -430 | -420 | -1 508 |
| Profit before credit losses etc | 480 | 599 | 479 | 438 | 417 | 1 996 |
| Gains less losses from assets Net credit losses |
-1 | -1 | ||||
| Operating profit | 480 | 598 | 479 | 438 | 417 | 1 995 |
Wealth Management
Private Banking
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income | 142 | 157 | 166 | 188 | 185 | 653 |
| Net fee and commission income | 215 | 205 | 212 | 172 | 188 | 804 |
| Net financial income | 11 | 12 | -4 | 44 | 16 | 63 |
| Net other income | 1 | 18 | 2 | 40 | 2 | 61 |
| Total operating income | 369 | 392 | 376 | 444 | 391 | 1 581 |
| Staff costs | -130 | -129 | -128 | -119 | -140 | -506 |
| Other expenses | -94 | -97 | -94 | -103 | -127 | -388 |
| Depreciation of assets | -7 | -16 | -7 | -8 | -7 | -38 |
| Total operating expenses | -231 | -242 | -229 | -230 | -274 | -932 |
| Profit before credit losses etc | 138 | 150 | 147 | 214 | 117 | 649 |
| Gains less losses from assets | ||||||
| Net credit losses | -4 | -5 | -8 | 10 | -25 | -7 |
| Operating profit | 134 | 145 | 139 | 224 | 92 | 642 |
Life
| Total | ||||||
|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Net interest income Net life insurance income |
-9 981 |
-6 907 |
-6 1 039 |
-7 1 031 |
-16 954 |
-28 3 958 |
| Net other income | ||||||
| Total operating income | 972 | 901 | 1 033 | 1 024 | 938 | 3 930 |
| Staff costs | -254 | -263 | -249 | -284 | -262 | -1 050 |
| Other expenses | -130 | -130 | -149 | -121 | -148 | -530 |
| Depreciation of assets | -130 | -140 | -134 | -144 | -160 | -548 |
| Total operating expenses | -514 | -533 | -532 | -549 | -570 | -2 128 |
| Profit before credit losses etc | 458 | 368 | 501 | 475 | 368 | 1 802 |
| Gains less losses from assets Net credit losses |
||||||
| Operating profit * | 458 | 368 | 501 | 475 | 368 | 1 802 |
| Change in surplus values | 244 | 323 | 275 | 431 | 250 | 1 273 |
| Business result | 702 | 691 | 776 | 906 | 618 | 3 075 |
* Consolidated in the Group accounts
Other and eliminations
| Total | ||||||
|---|---|---|---|---|---|---|
| SEKm | Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Q 1 2008 |
Full year 2007 |
| Net interest income | -14 | -59 | -142 | 90 | -79 | -125 |
| Net fee and commission income | 169 | 250 | 239 | 152 | 171 | 810 |
| Net financial income | 41 | 46 | 23 | -45 | -395 | 65 |
| Net life insurance income | -238 | -265 | -257 | -265 | -241 | -1 025 |
| Net other income | 16 | 4 | 68 | 47 | 150 | 135 |
| Total operating income | -26 | -24 | -69 | -21 | -394 | -140 |
| Staff costs | -1 080 | -980 | -982 | -1 008 | -1 136 | -4 050 |
| Other expenses | 858 | 806 | 854 | 910 | 893 | 3 426 |
| Depreciation of assets | -87 | -77 | -82 | -97 | -89 | -343 |
| Total operating expenses | -310 | -252 | -211 | -196 | -332 | -967 |
| Profit before credit losses etc | -336 | -276 | -280 | -217 | -726 | -1 107 |
| Gains less losses from assets | 783 | 783 | ||||
| Net credit losses | 1 | 1 | -2 | 32 | -3 | 32 |
| Operating profit | -335 | -275 | -282 | 599 | -729 | -292 |
The SEB Group
Net fee and commission income
| SEKm | Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Q 1 2008 |
Full year 2007 |
|---|---|---|---|---|---|---|
| Issue of securities | 32 | 197 | 45 | 61 | 7 | 335 |
| Secondary market shares | 891 | 772 | 779 | 711 | 677 | 3 153 |
| Secondary market other | 177 | 166 | 107 | 148 | 81 | 598 |
| Custody and mutual funds | 1 692 | 1 923 | 1 787 | 1 763 | 1 804 | 7 165 |
| Securities commissions | 2 792 | 3 058 | 2 718 | 2 683 | 2 569 | 11 251 |
| Payments | 459 | 446 | 440 | 463 | 439 | 1 808 |
| Card fees | 957 | 1 039 | 1 010 | 1 087 | 1 032 | 4 093 |
| Payment commissions | 1 416 | 1 485 | 1 450 | 1 550 | 1 471 | 5 901 |
| Advisory | 499 | 337 | 321 | 316 | 289 | 1 473 |
| Lending | 231 | 326 | 204 | 294 | 185 | 1 055 |
| Deposits | 27 | 17 | 22 | 23 | 23 | 89 |
| Guarantees | 68 | 62 | 68 | 66 | 67 | 264 |
| Derivatives | 96 | 81 | 94 | 92 | 113 | 363 |
| Other | 226 | 268 | 275 | 235 | 176 | 1 004 |
| Other commissions | 1 147 | 1 091 | 984 | 1 026 | 853 | 4 248 |
| Total commission income | 5 355 | 5 634 | 5 152 | 5 259 | 4 893 | 21 400 |
| Securities commissions | -204 | -295 | -208 | -195 | -241 | -902 |
| Payment commissions | -576 | -602 | -576 | -619 | -585 | -2 373 |
| Other commissions | -298 | -193 | -267 | -316 | -266 | -1 074 |
| Commission expense | -1 078 | -1 090 | -1 051 | -1 130 | -1 092 | -4 349 |
| Securities commissions | 2 588 | 2 763 | 2 510 | 2 488 | 2 328 | 10 349 |
| Payment commissions | 840 | 883 | 874 | 931 | 886 | 3 528 |
| Other commissions | 849 | 898 | 717 | 710 | 587 | 3 174 |
| Net fee and commission income | 4 277 | 4 544 | 4 101 | 4 129 | 3 801 | 17 051 |
The SEB Group
Net financial income
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Equity instruments and related derivatives | 147 | 126 | 90 | 157 | 171 | 520 |
| Debt instruments and related derivatives | 645 | 513 | -782 | -477 | -1 164 | -101 |
| Capital market related | 792 | 639 | -692 | -320 | -993 | 419 |
| Currency related | 519 | 706 | 855 | 740 | 832 | 2 820 |
| Net financial income | 1 311 | 1 345 | 163 | 420 | -161 | 3 239 |
A ppendix 6 Profit and loss accounts by geography and quarter
Sweden
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 4 965 | 5 342 | 4 506 | 5 676 | 5 096 | 20 489 |
| Total operating expenses | -3 157 | -3 107 | -2 689 | -3 312 | -3 384 | -12 265 |
| Profit before credit losses etc | 1 808 | 2 235 | 1 817 | 2 364 | 1 712 | 8 224 |
| Gains less losses from assets | ||||||
| Net credit losses | -13 | -113 | -32 | 79 | -19 | -79 |
| Operating profit | 1 795 | 2 122 | 1 785 | 2 443 | 1 693 | 8 145 |
Norway
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 853 | 701 | 611 | 777 | 560 | 2 942 |
| Total operating expenses | -442 | -387 | -250 | -467 | -323 | -1 546 |
| Profit before credit losses etc | 411 | 314 | 361 | 310 | 237 | 1 396 |
| Gains less losses from assets | ||||||
| Net credit losses | -37 | -15 | -37 | -5 | -60 | -94 |
| Operating profit | 374 | 299 | 324 | 305 | 177 | 1 302 |
Denmark
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 754 | 664 | 706 | 699 | 604 | 2 823 |
| Total operating expenses | -356 | -433 | -361 | -405 | -356 | -1 555 |
| Profit before credit losses etc | 398 | 231 | 345 | 294 | 248 | 1 268 |
| Gains less losses from assets | ||||||
| Net credit losses | -8 | -8 | -20 | -23 | -36 | |
| Operating profit | 398 | 223 | 337 | 274 | 225 | 1 232 |
Finland
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 247 | 296 | 282 | 352 | 281 | 1 177 |
| Total operating expenses | -137 | -160 | -136 | -156 | -152 | -589 |
| Profit before credit losses etc | 110 | 136 | 146 | 196 | 129 | 588 |
| Gains less losses from assets | ||||||
| Net credit losses | -4 | -2 | -1 | -2 | -2 | -9 |
| Operating profit | 106 | 134 | 145 | 194 | 127 | 579 |
Germany
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 1 620 | 1 676 | 1 334 | 1 518 | 1 356 | 6 148 |
| Total operating expenses | -1 140 | -1 148 | -1 231 | -1 291 | -1 210 | -4 810 |
| Profit before credit losses etc | 480 | 528 | 103 | 227 | 146 | 1 338 |
| Gains less losses from assets | -1 | -1 | 1 | 2 | -1 | |
| Net credit losses | -149 | -51 | -16 | -125 | -40 | -341 |
| Operating profit | 331 | 476 | 86 | 103 | 108 | 996 |
Estonia
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 388 | 445 | 400 | 427 | 328 | 1 660 |
| Total operating expenses | -151 | -169 | -155 | -174 | -137 | -649 |
| Profit before credit losses etc | 237 | 276 | 245 | 253 | 191 | 1 011 |
| Gains less losses from assets | 298 | 298 | ||||
| Net credit losses | -12 | -17 | -32 | -158 | -166 | -219 |
| Operating profit | 225 | 259 | 213 | 393 | 25 | 1 090 |
Latvia
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 329 | 424 | 426 | 470 | 410 | 1 649 |
| Total operating expenses | -137 | -149 | -146 | -170 | -176 | -602 |
| Profit before credit losses etc | 192 | 275 | 280 | 300 | 234 | 1 047 |
| Gains less losses from assets | 1 | 256 | 257 | |||
| Net credit losses | -8 | -30 | -28 | -46 | -39 | -112 |
| Operating profit | 184 | 245 | 253 | 510 | 195 | 1 192 |
Lithuania
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 508 | 609 | 593 | 676 | 597 | 2 386 |
| Total operating expenses | -195 | -202 | -215 | -264 | -232 | -876 |
| Profit before credit losses etc | 313 | 407 | 378 | 412 | 365 | 1 510 |
| Gains less losses from assets | 2 | 232 | 234 | |||
| Net credit losses | -12 | -43 | -33 | -35 | -18 | -123 |
| Operating profit | 301 | 364 | 347 | 609 | 347 | 1 621 |
Other countries and eliminations
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 529 | 562 | 635 | -560 | -430 | 1 166 |
| Total operating expenses | -87 | -129 | -397 | 311 | -57 | -302 |
| Profit before credit losses etc | 442 | 433 | 238 | -249 | -487 | 864 |
| Gains less losses from assets | 1 | |||||
| Net credit losses | 1 | -1 | -2 | -1 | -1 | -3 |
| Operating profit | 443 | 432 | 236 | -250 | -487 | 861 |
SEB Group Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2007 |
| Total operating income | 10 193 | 10 719 | 9 493 | 10 035 | 8 802 | 40 440 |
| Total operating expenses | -5 802 | -5 884 | -5 580 | -5 928 | -6 027 | -23 194 |
| Profit before credit losses etc | 4 391 | 4 835 | 3 913 | 4 107 | 2 775 | 17 246 |
| Gains less losses from assets | -1 | 2 | 787 | 3 | 788 | |
| Net credit losses | -234 | -280 | -189 | -313 | -368 | -1 016 |
| Operating profit | 4 157 | 4 554 | 3 726 | 4 581 | 2 410 | 17 018 |
Appendix 7 Skandinaviska Enskilda Banken (parent company)
| In accordance with SFSA regulations | Q1 | Q4 | Jan - Mar | Full year | |||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Interest income | 11 321 | 9 117 | 24 | 11 321 | 9 739 | 16 | 43 913 |
| Leasing income | 1 508 | 5 463 | -72 | 1 508 | 223 | 6 154 | |
| Interest expense | -9 893 | -6 844 | 45 | -9 893 | -8 736 | 13 | -38 464 |
| Net interest income 1) | |||||||
| Dividends received | 13 | 2 082 | -99 | 13 | 10 | 30 | 3 925 |
| Commission income 2) | 1 850 | 2 117 | -13 | 1 850 | 2 178 | -15 | 8 455 |
| Commission costs 2) | - 319 | - 351 | -9 | - 319 | - 320 | 0 | -1 331 |
| Net commission income 2) | 1 531 | 1 766 | -13 | 1 531 | 1 858 | -18 | 7 124 |
| Net financial income 3) | 43 | 240 | -82 | 43 | 1 057 | -96 | 2 490 |
| Other operating income | 253 | - 519 | -149 | 253 | 316 | -20 | 658 |
| Total income | 4 776 | 11 305 | -58 | 4 776 | 4 467 | 7 | 25 800 |
| Staff costs | -2 332 | -2 160 | 8 | -2 332 | -2 139 | 9 | -8 611 |
| Other administrative and operating costs | -1 018 | -1 078 | -6 | -1 018 | -1 010 | 1 | -3 978 |
| Depreciation of assets | -1 143 | -4 537 | -75 | -1 143 | - 100 | -4 847 | |
| Total costs | -4 493 | -7 775 | -42 | -4 493 | -3 249 | 38 | -17 436 |
| Profit/loss from banking operations before | |||||||
| credit losses | 283 | 3 530 | -92 | 283 | 1 218 | -77 | 8 364 |
| Net credit losses 4) | - 5 | 59 | -108 | - 5 | 6 | -183 | - 24 |
| Change in value of seized assets | |||||||
| Impairment financial assets | - 10 | - 34 | -71 | - 10 | - 106 | ||
| Operating profit | 268 | 3 555 | -92 | 268 | 1 224 | -78 | 8 234 |
| Pension compensation | 99 | 99 | 99 | 87 | 14 | 362 | |
| Profit before appropriation and tax | 367 | 3 654 | -90 | 367 | 1 311 | -72 | 8 596 |
| Other appropriations | - 89 | - 249 | -64 | - 89 | - 90 | -1 | - 520 |
| Current tax | - 205 | - 491 | -58 | - 205 | - 118 | 74 | - 800 |
| Deferred tax | 362 | -100 | - 11 | -100 | 209 | ||
| Net profit | 73 | 3 276 | -98 | 73 | 1 092 | -93 | 7 485 |
1) Net interest income - Skandinaviska Enskilda Banken
| Q1 | Q4 | Jan - Mar | Full year | ||
|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 2007 % |
2007 |
| Interest income | 11 321 | 9 117 | 24 | 11 321 9 739 16 |
43 913 |
| Leasing income | 1 508 | 5 463 | -72 | 1 508 223 |
6 154 |
| Interest costs | -9 893 | -6 843 | 45 | -9 893 -8 736 13 |
-38 464 |
| Leasing depreciation | -1 109 | -4 502 | -75 | -1 109 -74 |
-4 735 |
| Net interest income | 1 827 | 3 235 | -44 | 1 827 1 152 59 |
6 868 |
2) Net fee and commission income - Skandinaviska Enskilda Banken
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Securities commissions | 1 048 | 1 208 | -13 | 1 048 | 1 237 | -15 | 4 787 |
| Payment commissions | 314 | 320 | -2 | 314 | 333 | -6 | 1 279 |
| Other commissions | 488 | 589 | -17 | 488 | 608 | -20 | 2 389 |
| Commission income | 1 850 | 2 117 | -13 | 1 850 | 2 178 | -15 | 8 455 |
| Securities commissions | -68 | -72 | -6 | -68 | -47 | 45 | -260 |
| Payment commissions | -118 | -135 | -13 | -118 | -126 | -6 | -520 |
| Other commissions | -133 | -144 | -8 | -133 | -147 | -10 | -551 |
| Commission expense | -319 | -351 | -9 | -319 | -320 | 0 | -1 331 |
| Securities commissions, net | 980 | 1 136 | -14 | 980 | 1 190 | -18 | 4 527 |
| Payment commissions, net | 196 | 185 | 6 | 196 | 207 | -5 | 759 |
| Other commissions, net | 355 | 445 | -20 | 355 | 461 | -23 | 1 838 |
| Net fee and commission income | 1 531 | 1 766 | -13 | 1 531 | 1 858 | -18 | 7 124 |
3) Net financial income - Skandinaviska Enskilda Banken
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Equity instruments and related derivatives | 102 | 404 | -75 | 102 | 78 | 31 | 587 |
| Debt instruments and related derivatives | - 712 | - 540 | 32 | - 712 | 592 | - 104 | |
| Capital market related | - 610 | - 136 | - 610 | 670 -191 | 483 | ||
| Currency-related | 653 | 376 | 74 | 653 | 387 | 69 | 2 007 |
| Net financial income | 43 | 240 | -82 | 43 | 1 057 | -96 | 2 490 |
4) Net credit losses - Skandinaviska Enskilda Banken
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| Provisions: | |||||||
| Net collective provisions | 11 | 95 | -88 | 11 | 29 | -62 | 38 |
| Specific provisions | - 12 | - 46 | -74 | - 12 | - 51 | ||
| Reversal of specific provisions no longer | |||||||
| required | 3 | 21 | -86 | 3 | 1 | 200 | 25 |
| Net provisions for contingent liabilities | |||||||
| Net provisions | 2 | 70 | -97 | 2 | 30 | -93 | 12 |
| Write-offs: | |||||||
| Total write-offs | - 63 | - 46 | 37 | - 63 | - 48 | 31 | - 160 |
| Reversal of specific provisions utilized for | |||||||
| write-offs | 47 | 5 | 47 | 20 | 135 | 53 | |
| Write-offs not previously provided for | - 16 | - 41 | -61 | - 16 | - 28 | - 43 | - 107 |
| Recovered from previous write-offs | 9 | 30 | -70 | 9 | 4 | 125 | 71 |
| Net write-offs | - 7 | - 11 | -36 | - 7 | - 24 | -71 | - 36 |
| Net credit losses | - 5 | 59 | -108 | - 5 | 6 | -183 | - 24 |
| Change in value of seized assets | |||||||
| Net credit losses incl. change in value of | |||||||
| seized assets | - 5 | 59 | -108 | - 5 | 6 | -183 | - 24 |
Balance sheet - Skandinaviska Enskilda Banken
| Condensed | 31 March | 31 December | 31 March |
|---|---|---|---|
| SEKm | 2008 | 2007 | 2007 |
| Cash and cash balances with central banks | 1 766 | 1 758 | 4 131 |
| Loans to credit institutions | 392 173 | 357 482 | 454 453 |
| Loans to the public | 652 313 | 637 138 | 381 332 |
| Financial assets at fair value | 416 537 | 367 985 | 380 666 |
| Available-for-sale financial assets | 85 120 | 62 085 | 34 505 |
| Held-to-maturity investments | 3 348 | 3 348 | 3 691 |
| Investments in associates | 1 106 | 1 063 | 1 080 |
| Shares in subsidiaries | 52 141 | 51 936 | 56 669 |
| Tangible and intangible assets | 35 687 | 35 497 | 15 408 |
| Other assets | 40 432 | 41 027 | 21 407 |
| Total assets | 1 680 623 | 1 559 319 | 1 353 342 |
| Deposits by credit institutions | 446 825 | 367 699 | 397 667 |
| Deposits and borrowing from the public | 433 298 | 412 499 | 397 014 |
| Debt securities | 390 066 | 408 002 | 255 850 |
| Financial liabilities at fair value | 243 391 | 201 761 | 159 454 |
| Other liabilities | 66 269 | 67 093 | 54 096 |
| Provisions | 267 | 271 | 358 |
| Subordinated liabilities | 42 170 | 43 046 | 44 080 |
| Untaxed reserves | 19 105 | 19 016 | 12 176 |
| Total equity | 39 032 | 39 932 | 32 647 |
| Total liabilities and shareholders' equity | 1 680 423 | 1 559 319 | 1 353 342 |
Memorandum items - Skandinaviska Enskilda Banken
| 31 March | 31 December | 31 March | |
|---|---|---|---|
| SEK m | 2008 | 2007 | 2007 |
| Collateral and comparable security pledged for own liabilities | 261 097 | 146 563 | 220 716 |
| Other pledged assets and comparable collateral | 115 685 | 73 510 | 99 548 |
| Contingent liabilities | 40 250 | 50 909 | 42 961 |
| Commitments | 308 578 | 259 024 | 247 876 |
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-Mar 2008 | ||||||
| Opening balance | 190 | - 408 | 6 872 | 12 260 | 21 018 | 39 932 |
| Change in market value | -77 | - 1 123 | - 1 200 | |||
| Recognised in income statement | -10 | - 21 | - 31 | |||
| Translation difference | 11 | 11 | ||||
| Net income recognised directly in equity | -87 | -1 144 | 11 | -1 220 | ||
| Net profit | 73 | 73 | ||||
| Total recognised income | -87 | -1 144 | 84 | -1 147 | ||
| Group contributions net after tax | 161 | 161 | ||||
| Neutralisation of PL impact and utilisation of | ||||||
| employee stock options* | 54 | 54 | ||||
| Eliminations of repurchased shares for employee | ||||||
| stock option programme*** | 114 | 114 | ||||
| Other changes | - 82 | - 82 | ||||
| Closing balance | 103 | - 1 552 | 6 872 | 12 260 | 21 349 | 39 032 |
| 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 | - 36 | - 36 | ||||
| Net income recognised directly in equity | -177 | -620 | -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* | - 428 | - 428 | ||||
| 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-Mar 2007 Opening balance |
367 | 212 | 6 872 | 12 804 | 15 558 | 35 813 |
| Change in market value | - 35 | 35 | ||||
| Recognised in income statement | - 8 | - 8 | ||||
| Translation difference | 6 | 6 | ||||
| Net income recognised directly in equity Net profit |
-35 | 27 | 6 1 092 |
-2 1 092 |
||
| Total recognised income | -35 | 27 | 1 098 | 1 090 | ||
| Dividend to shareholders | - 4 123 | - 4 123 | ||||
| Dividend, own holdings of shares | 44 | 44 | ||||
| Group contributions net after tax | 384 | 384 | ||||
| Neutralisation of PL impact and utilisation of | ||||||
| employee stock options* | - 707 | - 707 | ||||
| Eliminations of repurchased shares for employee | ||||||
| stock option programme*** | 146 | 146 | ||||
| Other changes | 32 | - 32 | ||||
| Closing balance | 332 | 239 | 6 872 | 12 836 | 12 368 | 32 647 |
* 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 2007 SEB owned 3.7 million Class A shares for the employee stock option programme. The acquisition cost for these shares is deducted from shareholders' equity. During 2008 1.4 million of these shares have been sold as employee stock options have been exercised. Thus, as of 31 March SEB owned 2.3 million Class A-shares with a market value of SEK 362m for hedging of the long-term incentive programmes.
Cash flow analysis - Skandinaviska Enskilda Banken
| Jan - Mar | Full year | |||
|---|---|---|---|---|
| SEKm | 2008 | 2007 | % | 2007 |
| Cash flow from the profit and loss statement | 3 213 | 789 | 9 831 | |
| Increase (-)/decrease (+) in portfolios | -30 385 | -22 737 | 34 | 2 338 |
| Increase (+)/decrease (-) in issued short term securities | -20 285 | 68 820 | -129 | 84 144 |
| Increase (-)/decrease (+) in lending to credit institutions | 10 491 | -58 419 | -118 | -87 515 |
| Increase (-)/decrease (+) in lending to the public | -15 223 | -48 248 | -68 | -56 939 |
| Increase (+)/decrease (-) in liabilities to credit institutions | 79 126 | 65 295 | 21 | 35 327 |
| Increase (+)/decrease (-) in deposits and borrowings from the public | 20 800 | 7 889 | 164 | 23 373 |
| Change in other balance sheet items | 310 | 12 999 | -98 | 6 627 |
| Cash flow, current operations | 48 047 | 26 388 | 82 | 17 186 |
| Cash flow, investment activities | -1 327 | -1 257 | 6 | -15 971 |
| Cash flow, financing activities | 1 473 | 12 464 | -88 | 49 340 |
| Cash flow | 48 193 | 37 595 | 28 | 50 555 |
| Liquid funds at beginning of year | 139 767 | 89 198 | 57 | 89 198 |
| Exchange difference in liquid funds | -3 003 | - 13 | 14 | |
| Cash flow | 48 193 | 37 595 | 28 | 50 555 |
| Liquid funds at end of period1) | 184 957 | 126 780 | 46 | 139 767 |
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
| 31 March 2008 | ||
|---|---|---|
| Derivatives with positive | Derivatives with negative | |
| Book value, SEK m | amounts | amounts |
| Interest-related | 48 287 | 44 432 |
| Currency-related | 56 109 | 65 366 |
| Equity-related | 6 834 | 4 683 |
| Other | 5 975 | 345 |
| Total | 117 205 | 114 826 |