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SEB — Interim / Quarterly Report 2009
Apr 24, 2009
2966_10-q_2009-04-24_f9f2121b-161c-4de1-b247-6b0cde1c315b.pdf
Interim / Quarterly Report
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Interim Report January-March 2009
STOCKHOLM 24 APRIL 2009
The first quarter of 2009 – operating profit SEK 1.8bn (2.4)
- Profit before provisions for credit losses for the first quarter amounted to SEK 4,186m (2,771), an increase of 51 per cent compared with the first quarter of 2008 and 27 per cent down from the previous quarter. Operating profit was SEK 1,802m (2,410) and Net profit SEK 1,027m (1,848).
- Operating income increased by 30 per cent compared with the first quarter of 2008. Net interest income rose by 40 per cent, and Net fee and commission income decreased by 15 per cent. Net financial income improved by SEK 1.3bn. Compared with the previous quarter, operating income was down by 10 per cent.
- Operating expenses were 10 per cent higher than in the corresponding quarter of 2008, excluding goodwill impairment charges. Costs increased due to foreign exchange translation effects, increased pension costs and further redundancy charges. Compared with the previous quarter, costs were up by 4 per cent.
- An impairment charge of SEK 594m was made for all goodwill for SEB's business in Ukraine.
- Loans to the public increased by SEK 219bn and deposits from the public by SEK 71bn year-on-year.
- Provisions for credit losses increased to SEK 2,386m (364), of which 60 per cent were collective, and rose by SEK 683m compared with the previous quarter. The credit loss level was 0.70 per cent (0.13).
- Return on equity was 4.9 per cent (9.6) and earnings per share SEK 1.03 (1.92).
- SEB's rights issue of SEK 15.1bn was successfully completed. Tier I capital ratio was 12.0 per cent (9.7).
- The Board has decided to apply for SEB's participation in the Swedish Funding Guarantee Programme. The application will be filed within the next few days.
"SEB's underlying business has started the year on a strong note. Continued high earnings capacity going forward and the increased capital strength after the rights issue will provide a substantial buffer to withstand further expected deterioration of overall business conditions. "
Annika Falkengren
President's comment
SEB's underlying business has started off on a strong note in a quarter marked by further downward revisions of the macroeconomic outlook and continually distressed financial markets. Operating income increased by 30 per cent compared with the corresponding period last year. Operating profit before provisions for credit losses and goodwill impairment increased by SEK 2,009m to SEK 4,780m (including goodwill impairment SEK 4,186m).
Strong underlying business
High customer interaction and a well diversified product offering within Merchant Banking resulted in one of the highest operating results for the division to date. Business volumes were high especially in areas as fixed income, foreign exchange and corporate banking. Also Retail Sweden and Life recorded robust results.
Deteriorating Baltic economic development
The severe economic downturn, particularly in the Baltic countries, calls for continued cautious and proactive credit portfolio management. Baltic lending amounts to SEK 166bn, or 13 per cent of total lending of SEK 1,317bn. Impaired loans rose sharply in the Baltic countries, reflecting the accelerated pace of negative economic development in the first quarter in Latvia and Lithuania.
To address problem credits early on is key to safeguard the long-term viability of our customers and to minimise our credit losses. The special credit work-out team now includes a total of 150 highly experienced Swedish and local credit specialists, who work in close co-operation with local managers. Reviews of 71 per cent of all Baltic clients with loans exceeding EUR 1m have been made by the special work-out team. High risk committees monitor and follow up on all subsequent action plans. We are expecting a continued harsh development in the Baltic countries and have continued to build up reserves. Provisions for credit losses thus increased substantially to SEK 1.702m in the Baltic region of which two thirds were collective provisions.
Full stop for Ukrainian expansion
The economic crisis in Ukraine severely deepened during the quarter. The former expansion plan for the minor Ukrainian operation has been put on a complete hold as we
believe business conditions will be difficult for the foreseeable future. An impairment charge (SEK 594m) of all goodwill has been made as well as increased collective provisioning.
Strong capital position and earnings resilience
During the quarter our rights issue of SEK 15bn was successfully completed. It is a strong vote of confidence by our shareholders. SEB's Tier I ratio now amounts to 12 per cent.
Going forward, we will support revenue generation through a continued focus on our existing customers, offering them the full range of our services as a strong financial partner. The increased capital strength provides a substantial buffer to withstand further deterioration of overall business conditions
The Swedish Funding Guarantee Programme
The forthcoming application for SEB's participation in the Swedish Funding Guarantee Programme will create an alignment with most of SEB's international competitors who already benefit from different government guarantees in their funding. It may lower funding costs for the Group, in particular as half ot the cost of the state funding guarantee can be offset against the fee for the Swedish stability fund. I believe the participation will benefit SEB's customers and shareholders. It is also a means for SEB to contribute to the overall stability of the Swedish financial system.
The Group
Operating profit and Net profit
SEB's profit before credit losses for the first quarter amounted to SEK 4,186m (2,771), an increase of 51 per cent compared with the first quarter of 2008 and 27 per cent down from the previous quarter. Excluding goodwill impairment, operating profit before provisions for credit losses increased by SEK 2,009m to SEK 4,780m. Operating profit was SEK 1,802m (2,410) and included a net positive effect of SEK 61m from the depreciation of the Swedish krona. Net profit was SEK 1,027m (1,848).
Income
Total operating income amounted to SEK 11,430m (8,798), up by 30 per cent from the first quarter of 2008. A positive foreign exchange translation effect amounted to SEK 682m. Compared with the previous quarter, income was down by 10 per cent (-4 per cent excluding the VPC sales gain in the last quarter of 2008).
Net interest income improved by 40 per cent, to SEK 5,904m (4,223). Higher volumes contributed SEK 551m, or 33 per cent, of the increase; average deposit volumes grew by 11 per cent and average lending volumes to the public by 18 per cent compared with the end of March 2008. The net effect of higher lending and lower deposit margins was SEK 20m. As a consequence, customer-driven net interest income grew by 15 per cent compared with the corresponding quarter of 2008.
Reduced short-term funding rates of fixed-income securities portfolios had a large positive effect on net interest income. Together with shortened funding duration and pull-to-par effects of SEK 120m on the bond investment portfolio the combined effect accounted for 66 per cent of the increased net interest income, or SEK 1,110m. Net interest income also include an accrued cost of SEK 75m for the charge to the Swedish stability fund.
Compared with the previous quarter, the increase in Net interest income was 7 per cent, mainly due to the positive effect of the short-term funding rates.
Net fee and commission income amounted to SEK 3,215m (3,801), a decrease of 15 per cent compared with both the corresponding quarter of 2008 and the previous quarter. This was an effect of reduced equity markets activity, declining fees from lower assets under management and lower performance fees within the Wealth Management division. Commission income from payments, cards and other non-capital market-related business grew by 12 per cent year-on-year.
Net financial income rose by SEK 1,294m, to SEK 1,133m (-161), mainly due to high market volatility and activities within the trading and capital market areas in combination with lower valuation losses at SEK 454m in the bond investment portfolio during the quarter compared with losses of SEK 872m during the first quarter of 2008. Compared with the previous quarter, Net financial income was down by 34 per cent, mainly due to SEK 267m of higher valuation losses in the bond investment portfolio.
The foreign exchange business unit continued to generate income above SEK 1.1bn, even if it was SEK 282m lower than in the previous quarter.
Net life insurance income increased by 21 per cent, to SEK 862m (713), mainly due to recovery of past provisions for covering potential future guarantees related to traditional portfolios. In comparison with the previous quarter, insurance income improved by 67 per cent. A complete description of Life's operations, including changes in surplus values, is found in "Additional information" on www.sebgroup.com.
Net other income rose to SEK 316m (222). Compared with the previous quarter, Net other income was down by 73 per cent or SEK 838m, primarily explained by the VPC sales gain of SEK 780m at the end of 2008.
Expenses
Total operating expenses amounted to SEK 7,244m (6,027). Excluding goodwill impairment charges in Ukraine, the increase in expenses was 10 per cent, fully explained by foreign exchange translation effects of SEK 388m, increased pension costs of SEK 195m and additional redundancy charges of SEK 68m. Compared with the previous quarter, operating expenses rose by 4 per cent.
The cost efficiency gains during the first quarter amounted to SEK 275m, bringing the accumulated gain to SEK 1,304m since the start in 2007.
Staff costs rose by 13 per cent, to SEK 4,391m (3,899). Salaries increased to SEK 3,072m (2,775), pension costs to SEK 417m (222) and redundancy costs to SEK 148m (80). Short-term and long-term incentive remuneration (including social benefit charges) decreased to SEK 563m (644). The average number of full time equivalents decreased by 320 to 20,736 (21,056). In comparison with the previous quarter, staff costs decreased by 4 per cent.
Pension costs for 2009 are expected to increase by some SEK 0.8bn due to falling return on plan assets and increased actuarial losses, which in combination requires an amortisation of the loss over a 15-year period.
Other expenses increased by 5 per cent, to SEK 1,838m (1,756), mostly due to higher IT costs and higher cost for premises. Costs for One IT Roadmap amounted to SEK 81m. Compared with the previous quarter, other expenses decreased by 7 per cent.
SEK 594m goodwill impairment for Ukraine
In the first quarter of 2009, SEB made a SEK 594m goodwill impairment charge for its investment in banking activitites in Ukraine. These costs are included in Total operating expenses. The expansion plan which supported the acquisitions in 2004 and 2007 is no longer valid as the economic conditions in Ukraine have turned dramatically worse. Following this impairment charge, SEB has no goodwill left related to its operations in Ukraine.
Credit losses
Net credit losses - consisting mostly of provisions rather than actual losses - increased to SEK 2,386m (364). The credit loss level rose to 0.70 per cent (0.13).
Higher collective provisions to meet the rapidly deteriorating Baltic economies increased the total provisions for credit losses in the region to SEK 1,702m (221). Collective provisions accounted for 68 per cent. The net credit loss level in the Baltic countries was 3.70 per cent (1.28). In the previous quarter it was 2.59 per cent.
Provisions within Merchant Banking amounted to SEK 279m (27); within the Card business to SEK 110m (51). In Ukraine, SEB provisioned SEK 114m and in Russia SEK 48m, equal to a net credit loss level of 12.4 (0.3) and 7.8 per cent (0.2), respectively.
Individually assessed impaired loans amounted to SEK 12,982m (7,321), an increase of 77 per cent compared with a year ago. This corresponded to a level of impaired loans of net 0.46 per cent (0.26) and gross 0.81 per cent (0.52). The total reserve ratio was 72 per cent (77). The level of impaired loans in the Baltic countries was net 1.85 per cent $(0.11)$ and gross 2.88 per cent $(0.38)$ .
The Group's impaired portfolio assessed loans (homogeneous groups) amounted to SEK 3,841m (1,232) and the corresponding reserve ratio for these loans was 48 per cent (60).
Tax costs
Total tax amounted to SEK 781m (562). The total tax rate of 43.3 per cent reflects the non-tax deductibility of the goodwill impairment charge and the increased credit provisions in the Baltic countries where tax rates are between 0-20 per cent. For these reasons the total tax rate is expected to remain high.
Business volumes
The Group's balance sheet as per 31 March 2009 was SEK 2,460bn (2,511 at year-end 2008). Positive currency effects amounted to SEK 27bn. Lending to the public increased by 2 per cent during the quarter, while deposits from the public were slightly down.
SEB's total credit exposure was flat at SEK 1,933bn (1,934 at year-end 2008). Corporate lending grew in Sweden while it decreased in the Baltic countries. Quarterly credit growth, measured in local currencies, was -3, -3 and -5 per cent in Estonia, Latvia and Lithuania, respectively.
As of 31 March 2009, assets under management amounted to SEK 1,187bn (1,201). Net inflow during the first quarter was SEK 9bn (7), while the change in value was SEK -23bn (-63).
Assets under custody amounted to SEK 3,991bn (3,891).
Fixed-income securities portfolios
As per 31 March, SEB held total net positions in fixedincome securities of SEK 356bn (355) for investment, treasury and client trading purposes. Holdings consist mainly of covered bonds, bonds issued by financial institutions and structured credits.
The SEK 123bn (131) investment portfolio of Merchant Banking remained negatively affected by the dislocations in the credit markets. The holdings of structured credits in the investment portfolio amounted to SEK 62bn (63) and the holdings of covered bonds and bonds issued by financial institutions in the investment portfolio amounted to SEK 61bn (68).
The size of amortisations and sales from the portfolio is offset by foreign exchange translation effects. Applying the currency exchange rates as of the end of March 2008, the holdings of structured credits would have amounted to SEK 50bn, i.e. a decrease by SEK 13bn in one year. The corresponding numbers for bonds issued by financial institutions would have been a decrease of SEK 17bn to SEK 38bn (55).
The valuation losses in the investment portfolio in the first quarter of 2009 amounted to SEK 895m (2.502), of which SEK 454m (872) over income and SEK 441m (1,630) over equity. SEK 530m (1,784) of the mark-to-market loss referred to holdings in structured credits and SEK 365m (718) to other financial instruments, mainly bonds issued by financial institutions. If the Group had not reclassified these financial assets during 2008, fair value losses amounting to SEK 199m and SEK 2,876m, respectively, would have been recognised in the first quarter profit and loss and in the equity revaluation reserve respectively.
Based on SEB's long-term investment view, risk management has been focused on limiting further income volatility and on limited divestments. Thus, and including the reclassification within the portfolio, the Held-for-Trading holdings decreased to SEK 6bn (49) and the Available-for-Sale holdings to SEK 18bn (82), while securities classified as Loans and Receivables increased to SEK 98bn (0).
Under prevailing credit market conditions, SEB views a default on the holdings in the investment portfolio as unlikely. The risk for impairment charges has increased in the structured credits portfolio.
88.5 per cent of the holdings of structured credits in the investment portfolio are AAA-rated and 5.1 per cent have a sub-investment grade rating. There are no impaired assets in the portfolio and no 'level 3' assets. The average economic duration of the holdings is approximately three and a half years. 65 per cent of the structured credits are related to the European markets, 33 per cent to the U.S. market while other markets make up 2 per cent.
83 per cent of the holdings of covered bonds and bonds issued by financial institutions in the investment portfolio involve European institutions, 14 per cent U.S. institutions and 3 per cent Australian institutions.
Market risk
During the first quarter of 2009, the Group's Value at Risk in trading operations averaged SEK 129m (151 for calendar year 2008). This means that the Group on average, with 99 per cent probability, would not expect to lose more than
this amount during a ten-day period. The decrease in overall risk level is a consequence of a certain market normalisation compared to the last quarter of 2008.
Liquidity and funding
The funding markets, which have been severely disrupted since September 2008, are gradually returning to a more normalised situation. Nevertheless, credit spreads remain on a high level. Liquidity risk charges reflecting the higher spreads are applied throughout the Group to reflect the market. With a deposit-to-loan ratio of 67 per cent and having raised some SEK 25bn of long-term funding during the first quarter of 2009, SEB has not restricted its lending. SEB continued to maintain a large pool of eligible assets in excess of SEK 200bn.
At 31 March 2009, the match-funding of net cash inflows and outflows was approximately 6-8 months, taking liquidity reserves into consideration, which in the prevailing market must be deemed satisfactory.
Capital position
Payments of SEK 14.9bn for SEB's rights issue were made before end of March and are included in the capital adequacy. This is reflected in capital ratios below. A further SEK 212m has been paid after the end of March.
As per 31 March 2009, Basel II risk-weighted assets (RWA) amount to SEK 830bn, which would represent a Tier I capital ratio of 12.0 (10.1) per cent and a core Tier I capital ratio of 10.2 (8.6) per cent. The total capital ratio would be 14.3 (12.8) per cent. Risk-weighted assets have grown by 1.5 per cent, SEK 12bn, since year-end, as a net effect of risk class migration, a weaker Swedish krona, extended IRB roll-out and reductions of risk-weighted assets in the business.
Adjusted for the supervisory transitional rules during the first Basel II years, SEB reports RWA of SEK 897bn (986), a Tier I capital ratio of 11.1 per cent (8.4) and a total capital ratio of 13.2 per cent (10.6). The lowering of Basel II implementation floors in 2009 (from 90 to 80 per cent of Basel I requirements) is reflected in these ratios.
Appendix 3 presents details of capital adequacy.
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. (The credit portfolio is described in Appendix 2). The outlook for the global economy has deteriorated and SEB holds the view that economic growth will be substantially lower in the next few years.
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 and risk management of all the risks of the Group and the Parent Company are described in SEB's annual report for 2008 (see pp 36-51 and Note 44). This view is still valid.
The economic imbalances in the Baltic countries and the
short-term orientation of the funding markets constitute specific risks and uncertainties for the Group.
The general credit spread widening across all assets continued in the first quarter of 2009. Wider spreads have resulted in mark-to-market losses on SEB's fixed-income securities portfolios (see under Fixed-income securities portfolios) and further valuation losses cannot be ruled out. The risk for impairment charges has increased.
Rating
In March 2009, Standard & Poors changed its outlook from stable to negative, but affirmed SEB's long-term A rating. In April, Moody's lowered SEB's rating from Aa2 till A1, with a negative outlook. The rating agencies refer to the Baltic macroeconomic challenges as the main rating driver. Fitch and DBRS affirmed SEB's rating in connection with the rights issue announcement.
Divestments
In February 2009, SEB reached an agreement to sell the fund management business of its Polish subsidiary, SEB TFI. The sale is subject to regulatory consent.
Reclassification of securities portfolios
Following the amendments to IAS 39 and IFRS 7, endorsed by the EU in October 2008, SEB has decided to reclassify SEK 52bn of its fixed-income securities as loans and receivables as of 1 January 2009. The reclassification includes SEK 5bn of assets held-for-trading and SEK 47bn of assets in the available-for-sale category.
SEB has the intention and ability to hold these securities for the foreseeable future or until maturity. Thus, the classification as loans and receivables better reflects the purpose of these holdings and avoids further short-term mark-to-market volatility in income and equity.
If the Group had not reclassified these financial assets during 2009, fair value gains of SEK 45m would have been recognised in the first quarter income and a loss of SEK 619m in the equity revaluation reserve. (See further p. 22.)
Decisions at the Annual General Meeting
At SEB's Annual General Meeting (AGM) on 6 March 2009 all Board members were re-elected and Tomas Nicolin was elected as new member of the Board. Following an initiative taken by SEB's Board of Directors the AGM resolved on a 25 per cent reduction of base remuneration for the Board members.
The AGM approved the Board's proposal regarding a capital increase in the form of a rights issue of SEK 15bn (see more below) and resolved that no dividend will be distributed for 2008.
Furthermore, the AGM approved the Board's proposal for new principles for remuneration to the President and the other members of the Group Executive Committee as well as for new share-based long-term incentive programmes for 2009 in the form of a share savings programme, a performance share programme and a share
matching programme.
SEB's rights issue oversubscribed
The final calculation of the outcome of Skandinaviska Enskilda Banken AB's ("SEB") rights issue pursuant to which it was offering new series A shares ("New A shares") shows that 1,485,780,686 New A shares, representing 98.6 per cent of the total rights issue, were subscribed for with preferential rights. The 21,234,485 New A shares, representing 1.4 per cent of the total rights issue, that were not subscribed for with preferential rights have been allotted to persons who have subscribed for New A shares with preferential rights, according to the principles described in the prospectus relating to SEB's rights issue. SEB has received SEK 15,070,151,710 through the rights issue, before transaction costs.
As a result of the rights issue, the number of series A shares has increased by 1,507,015,171 and the share capital by SEK 15,070,151,710. Following the rights issue, the company's share capital amounts to SEK 21,941,718,020, distributed among 2,170,019,294 series A shares and 24,152,508 series C shares.
Organisational changes
In March, SEB finalised the merger of its two Ukrainian banks. SEB Bank and Factorial Bank now operate as one company.
In the Baltic countries, parts of Retail Banking have been transferred to Group Operations and to Private Banking from 2009 and corresponding amounts have been restated.
Subsequent events
On 23 April, the Board decided to apply for SEB's particpation on the Swedish Funding Guarantee Programme. The application will be filed within a few days.
Stockholm, 24 April 2009
Annika Falkengren
President and Chief Executive Officer
Accounting policies
This Interim Report has been prepared in accordance with International Financial Reporting Standards IFRS/IAS, endorsed by the European Commission, and therefore comply with IAS 34 Interim Financial Reporting. The accounting regulations of the Swedish Financial Supervisory Authority require some additional disclosures.
Changes in accounting standards
Changes in the value of assets taken over are accounted for in the item Net other income as from January 2009.
IAS 1 "Presentation of financial statements" - an additional statement for Other comprehensive income (changes in equity besides owner transactions) has been added and the Statement of changes in equity has been amended. The Group has implemented IFRS 8 "Operating segments". The new standard states that the segment reporting is to be presented according to management view and follow the internal reporting. The implementation of IFRS 8 has had no impact on the operating segments presented. The implementation of the revised IAS 23 "Borrowing costs" has no material impact on the Group.
Otherwise 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 2009
| 5 February | Annual Accounts 2008 |
|---|---|
| 20 February | Annual Report available on the website |
| 6 March | Annual General Meeting in Stockholm |
| 24 April | Interim Report January - March 2009 |
| 20 July | Interim Report January – June 2009 |
| 21 October | Interim Report January - September 2009 |
Access to telephone conference and video web cast
The telephone conference at 15.00 (CET) on 24 April 2009 with CEO Annika Falkengren and CFO Jan Erik Back can be accessed by telephone, not later than 10 minutes in advance: +44 (0)20 7162 0025
A video web-cast with CFO Jan Erik Back will be available on www.sebgroup.com.
Further information is available from
Jan Erik Back, 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, Senior 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 this report for the period 1 January 2009 to 31 March 2009 for Skandinaviska Enskilda Banken AB (publ). The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Act for Credit institutions and Securities Companies. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. 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 standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Act for Credit institutions and Securities Companies regarding the Group, and with the Swedish Annual Act for Credit institutions and Securities Companies, regarding the Parent Company.
Stockholm, 24 April 2009
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 | |||
|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Net interest income | 5 904 | 5 513 | 7 | 5 904 | 4 223 | 40 | 18 710 |
| Net fee and commission income | 3 215 | 3 790 | -15 | 3 215 | 3 801 | -15 | 15 254 |
| Net financial income | 1 133 | 1 723 | -34 | 1 133 | - 161 | 2 970 | |
| Net life insurance income | 862 | 516 | 67 | 862 | 713 | 21 | 2 375 |
| Net other income | 316 | 1 153 | -73 | 316 | 222 | 42 | 1 795 |
| Total operating income | 11 430 | 12 695 | -10 | 11 430 | 8 798 | 30 | 41 104 |
| Staff costs | -4 391 | -4 597 | -4 | -4 391 | -3 899 | 13 | -16 241 |
| Other expenses | -1 838 | -1 968 | -7 | -1 838 | -1 756 | 5 | -7 642 |
| Depreciation of assets | -1 015 | - 400 | 154 | -1 015 | - 372 | 173 | -1 524 |
| Total operating expenses | -7 244 | -6 965 | 4 | -7 244 | -6 027 | 20 | -25 407 |
| Profit before credit losses etc | 4 186 | 5 730 | -27 | 4 186 | 2 771 | 51 | 15 697 |
| Gains less losses from tangible and intangible | |||||||
| assets | 2 | 1 | 100 | 2 | 3 | -33 | 5 |
| Net credit losses | -2 386 | -1 703 | 40 | -2 386 | - 364 | -3 231 | |
| Operating profit | 1 802 | 4 028 | -55 | 1 802 | 2 410 | -25 | 12 471 |
| Income tax expense | - 781 | - 519 | 50 | - 781 | - 562 | 39 | -2 421 |
| Net profit from continuing operations | 1 021 | 3 509 | -71 | 1 021 | 1 848 | -45 | 10 050 |
| Discontinued operations | 6 | - 2 | 6 | ||||
| Net profit | 1 027 | 3 507 | - 71 | 1 027 | 1848 | - 44 | 10 050 |
| Attributable to minority interests | 2 | 1 | 100 | 2 | 1 | 100 | 9 |
| Attributable to equity holders * | 1 025 | 3 506 | -71 | 1 025 | 1 847 | -45 | 10 041 |
| * Basic earnings per share, SEK | 1.03 | 5.12 | 1.03 | 2.70 | 14.66 | ||
| Diluted earnings per share, SEK | 1.03 | 5.12 | 1.03 | 2.69 | 14.65 |
Statement of comprehensive income
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Net profit | 1 027 | 3 507 | -71 | 1 027 | 1 848 | -44 | 10 050 |
| Other comprehensive income: | |||||||
| Translation of foreign operations | - 248 | 242 | - 248 | - 228 | 9 | 152 | |
| Available-for-sale financial assets | - 153 | - 775 | -80 | - 153 | -1 189 | -87 | -2 624 |
| Cash flow hedges | - 67 | 1 676 | -104 | - 67 | - 69 | -3 | 1 607 |
| Other | 63 | 1 594 | -96 | 63 | - 190 | -133 | 2 066 |
| Total other comprehensive income | - 405 | 2 737 | - 115 | - 405 | -1 676 | - 76 | 1 201 |
| Total comprehensive income | 622 | 6 244 | - 90 | 622 | 172 | 11 251 | |
| Attributable to minority interests | 15 | 9 | 67 | 15 | - 15 | -200 | 1 |
| Attributable to equity holders | 607 | 6 235 | -90 | 607 | 187 | 11 250 |
Key figures - SEB Group
| Q1 | Q4 | Q1 | Jan - Mar | Full year | ||
|---|---|---|---|---|---|---|
| 2009 | 2008 | 2008 | 2009 | 2008 | 2008 | |
| Return on equity, % | 4.9 | 17.6 | 9.6 | 4.9 | 9.6 | 13.1 |
| Return on total assets, % | 0.16 | 0.57 | 0.31 | 0.16 | 0.31 | 0.42 |
| Return on risk-weighted assets, % | 0.44 | 1.45 | 0.87 | 0.44 | 0.87 | 1.13 |
| Basic earnings per share, SEK | 1.03 | 3.63 | 1.92 | 1.03 | 1.92 | 10.40 |
| Weighted average number of shares, millions* | 991 | 966 | 964 | 991 | 964 | 966 |
| Diluted earnings per share, SEK | 1.03 | 3.63 | 1.91 | 1.03 | 1.91 | 10.39 |
| Weighted average number of diluted shares, millions** | 992 | 965 | 967 | 992 | 967 | 967 |
| Net worth per share, SEK | 48.75 | 134.10 | 126.34 | 48.75 | 126.34 | 134.10 |
| Average equity, SEK billion | 84.5 | 79.8 | 76.6 | 84.5 | 76.6 | 76.4 |
| Cost/income ratio | 0.63 | 0.55 | 0.69 | 0.63 | 0.69 | 0.62 |
| Credit loss level, % | 0.70 | 0.63 | 0.13 | 0.70 | 0.13 | 0.30 |
| Total reserve ratio for individually assessed impaired loans, % |
71.6 | 68.5 | 76.9 | 71.6 | 76.9 | 68.5 |
| Net level of impaired loans, % | 0.46 | 0.41 | 0.26 | 0.46 | 0.26 | 0.41 |
| Gross level of impaired loans, % | 0.81 | 0.73 | 0.52 | 0.81 | 0.52 | 0.73 |
| Basel II (Legal reporting with transitional floor) :*** | ||||||
| Total capital ratio, incl net profit, % | 13.20 | 10.62 | 11.13 | 13.20 | 11.13 | 10.62 |
| Tier 1 capital ratio, incl net profit, % | 11.10 | 8.36 | 8.85 | 11.10 | 8.85 | 8.36 |
| Risk-weighted assets, SEK billion | 897 | 986 | 817 | 897 | 817 | 986 |
| Basel II (without transitional floor): | ||||||
| Total capital ratio, incl net profit, % | 14.26 | 12.81 | 12.18 | 14.26 | 12.18 | 12.81 |
| Tier 1 capital ratio, incl net profit, % | 11.99 | 10.08 | 9.68 | 11.99 | 9.68 | 10.08 |
| Risk-weighted assets, SEK billion | 830 | 818 | 748 | 830 | 748 | 818 |
| Basel I: | ||||||
| Total capital ratio, incl net profit, % | 10.41 | 9.29 | 10.01 | 10.41 | 10.01 | 9.29 |
| Tier 1 capital ratio, incl net profit, % | 8.75 | 7.32 | 7.96 | 8.75 | 7.96 | 7.32 |
| Risk-weighted assets, SEK billion | 1 137 | 1 127 | 909 | 1 137 | 909 | 1 127 |
| Number of full time equivalents**** | 20 656 | 21 131 | 21 210 | 20 736 | 21 056 | 21 291 |
| Assets under custody, SEK billion | 3 991 | 3 891 | 4 887 | 3 991 | 4 887 | 3 891 |
| Assets under management, SEK billion | 1 187 | 1 201 | 1 331 | 1 187 | 1 331 | 1 201 |
* The number of issued shares was 2,194,171,802 after the rights issue in March 2009 (687,156,631 at year-end 2008). SEB owned 2.2 million Class A shares for the employee stock option programme at year-end 2008. During 2009 0.1 million net of these shares have been sold as employee stock options have been exercised. Thus, as of 31 March SEB owned 2.1 million Class A-shares with a market value of SEK 55m.
** Calculated dilution based on the estimated economic value of the long-term incentive programmes.
*** 80 per cent of RWA in Basel I for 2009 and 90 per cent of RWA in Basel I for 2008.
**** Quarterly numbers are for last month of quarter. Accumulated numbers are average for the period.
Income statement on quarterly basis - SEB Group
| SEK m | 2009:1 | 2008:4 | 2008:3 | 2008:2 | 2008:1 |
|---|---|---|---|---|---|
| Net interest income | 5 904 | 5 513 | 4 553 | 4 421 | 4 223 |
| Net fee and commission income | 3 215 | 3 790 | 3 754 | 3 909 | 3 801 |
| Net financial income | 1 133 | 1 723 | 247 | 1 161 | - 161 |
| Net life insurance income | 862 | 516 | 504 | 642 | 713 |
| Net other income | 316 | 1 153 | 154 | 266 | 222 |
| Total operating income | 11 430 | 12 695 | 9 212 | 10 399 | 8 798 |
| Staff costs | -4 391 | -4 597 | -3 752 | -3 993 | -3 899 |
| Other expenses | -1 838 | -1 968 | -1 820 | -2 098 | -1 756 |
| Depreciation of assets | -1 015 | - 400 | - 398 | - 354 | - 372 |
| Total operating expenses | -7 244 | -6 965 | -5 970 | -6 445 | -6 027 |
| Profit before credit losses etc | 4 186 | 5 730 | 3 242 | 3 954 | 2 771 |
| Gains less losses from tangible and intangible assets | 2 | 1 | 1 | 3 | |
| Net credit losses | -2 386 | -1 703 | - 716 | - 448 | - 364 |
| Operating profit | 1 802 | 4 028 | 2 526 | 3 507 | 2 410 |
| Income tax expense | - 781 | - 519 | - 641 | - 699 | - 562 |
| Net profit from continuing operations | 1 021 | 3 509 | 1 885 | 2 808 | 1 848 |
| Discontinued operations | 6 | - 2 | 1 | 1 | |
| Net profit | 1 027 | 3 507 | 1 886 | 2 809 | 1 848 |
| Attributable to minority interests | 2 | 1 | 4 | 3 | 1 |
| Attributable to equity holders* | 1 025 | 3 506 | 1 882 | 2 806 | 1 847 |
| * Basic earnings per share, SEK | 1.03 | 5.12 | 2.75 | 4.10 | 2.70 |
| Diluted earnings per share, SEK | 1.03 | 5.12 | 2.74 | 4.09 | 2.69 |
Income statement, by Division - SEB Group
| Merchant | Retail | Wealth | Other incl | |||
|---|---|---|---|---|---|---|
| Jan-Mar 2009, SEK m | Banking | Banking | Management | Life* | eliminations | SEB Group |
| Net interest income Net fee and commission |
2 919 | 2 651 | 198 | - 10 | 146 | 5 904 |
| income | 1 172 | 1 292 | 662 | 89 | 3 215 | |
| Net financial income | 1 186 | 109 | 20 | - 182 | 1 133 | |
| Net life insurance income | 1 043 | - 181 | 862 | |||
| Net other income | 115 | 35 | 1 | 165 | 316 | |
| Total operating income | 5 392 | 4 087 | 881 | 1 033 | 37 | 11 430 |
| Staff costs | -1 092 | -1 284 | - 344 | - 274 | -1 397 | -4 391 |
| Other expenses | - 949 | -1 408 | - 292 | - 126 | 937 | -1 838 |
| Depreciation of assets | - 25 | - 69 | - 30 | - 165 | - 726 | -1 015 |
| Total operating expenses | -2 066 | -2 761 | - 666 | - 565 | -1 186 | -7 244 |
| Profit before credit losses etc | 3 326 | 1 326 | 215 | 468 | -1 149 | 4 186 |
| Gains less losses from | ||||||
| tangible and intangible | ||||||
| assets | 2 | 2 | ||||
| Net credit losses | - 279 | -1 963 | - 8 | - 136 | -2 386 | |
| Operating profit | 3 047 | - 635 | 207 | 468 | -1 285 | 1 802 |
* Business result in Life amounted to SEK 579m (618), of which change in surplus values was net SEK 111m (250).
Merchant Banking
Merchant Banking has two large business areas - Trading and Capital Markets and Global Transaction Services. The other business units, e.g. the CRM function, Commercial Real Estate, Corporate Finance and Structured Finance, are consolidated in Corporate Banking.
Profit and loss account
| Q1 | Q 4 | Jan-Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Net interest income | 2919 | 2613 | 12 | 2919 | 1525 | 91 | 7414 |
| Net fee and commission income | 1 1 7 2 | 1 1 6 3 | -1 | 1 1 7 2 | 1 2 4 1 | - 6 | 5 2 4 8 |
| Net financial income | 1 1 8 6 | 1813 | - 35 | 1 1 8 6 | 119 | 3625 | |
| Net other income | 115 | 341 | - 66 | 115 | 42 | 174 | 526 |
| Total operating income | 5 3 9 2 | 5930 | - 9 | 5 3 9 2 | 2927 | 84 | 16813 |
| Staff costs | $-1092$ | $-954$ | 14 | $-1092$ | $-964$ | 13 | $-3890$ |
| Other expenses | - 949 | $-918$ | 3 | - 949 | $-909$ | 4 | $-3594$ |
| Depreciation of assets | $-25$ | $-30$ | $-17$ | $-25$ | $-22$ | 14 | - 95 |
| Total operating expenses | $-2066$ | $-1902$ | 9 | $-2066$ | $-1895$ | 9 | $-7579$ |
| Profit before credit losses etc | 3 3 2 6 | 4 0 28 | $-17$ | 3 3 2 6 | 1 0 3 2 | 9 2 3 4 | |
| Gains less losses on assets | $-100$ | 3 | $-100$ | 5 | |||
| Net credit losses | $-279$ | $-592$ | $-53$ | $-279$ | $-27$ | - 889 | |
| Operating profit | 3 0 4 7 | 3 4 3 7 | - 11 | 3 0 4 7 | 1 0 0 8 | 202 | 8 3 5 0 |
| Cost/Income ratio | 0.38 | 0.32 | 0.38 | 0.65 | 0.45 | ||
| Business equity, SEK bn | 35.1 | 27.0 | 35.1 | 27.0 | 27.0 | ||
| Return on equity, % | 25.0 | 36.7 | 25.0 | 10.8 | 22.3 | ||
| Number of full time equivalents | 2697 | 2698 | 2 7 1 1 | 2 7 2 6 | 2 7 2 1 |
High income based on strong earnings contributions from most businesses areas
Low lending losses; good overall quality in credit portfolio
Income growth reflecting strengthened relationships with core clients
Comments on the first quarter
Merchant Banking continued to strengthen its franchise in the Nordic countries, gaining market share at the expense of international competitors that have become less active in the region as well as benefiting from the disappearance of several niche players. The deepened footprint is supported by various customer surveys and league table rankings.
Merchant Banking recorded its second highest ever quarterly income and profit, with strong contributions from most units, particularly trading and capital markets units and financing businesses. Volatile markets combined with ongoing de-leveraging in the global banking industry ensured high demand for Merchant Banking's products and services.
Total operating income increased by 84 per cent year-on-year, and was 28 per cent above the average quarter in 2008. Relative to income, cost increases were limited. Provisions for credit losses remained low and asset quality in general remained stable. Negative mark-to-market valuation effects within the investment portfolio (see page 4) amounted to SEK -454m (-872).
Within Trading and Capital Markets, activity remained high, particularly within fixed income, driven by improved turnover and large customer interest in restructuring interest rate risk exposures. Credit issuance increased,
although for many issuers, the bond markets remain effectively closed. As in the previous quarter, FX units performed well. Commissions remained at a lower level in Equities, although total income increased from the fourth quarter, reflecting more benign market conditions.
Equity capital markets activity was high as companies sought to strengthen balance sheets. SEB Enskilda was bookrunner and adviser in the completed rights issues by the SAS Group and Husqvarna AB, as well as the third largest secondary placing in Europe during 2009, placing shares in Danish shipping operator D/S Norden.
Within Corporate Banking, core customer activities was high with large numbers of bilateral client financings. New lending was more limited in specialised segments such as commercial real estate, leveraged lending and project finance, reflecting general market trends.
Global Transaction Services' revenues were relatively stable despite a more challenging operating environment. Increased volumes in traditional trade finance services helped offset the decline in cash management income caused by the low interest rate environment. Income from custody services was down somewhat due to declining stock market turnover. Assets under custody however rose slightly compared with year-end, to SEK 3,991bn (3,891bn).
The Retail Banking division consists of six business areas - Sweden, Germany, Estonia, Latvia, Lithuania and Card.
Profit and loss account
| Q 1 | 04 | Jan-Mar | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | % | 2008 | |
| Net interest income | 2651 | 2845 | $-7$ | 2651 | 2 5 4 5 | 4 | 10 7 26 | |
| Net fee and commission income | 1 2 9 2 | 1 4 0 0 | $-8$ | 1 2 9 2 | 1425 | - 9 | 5618 | |
| Net financial income | 109 | 116 | $-6$ | 109 | 95 | 15 | 396 | |
| Net other income | 35 | 89 | - 61 | 35 | 21 | 67 | 222 | |
| Total operating income | 4 0 8 7 | 4 4 5 0 | - 8 | 4 0 8 7 | 4 0 8 6 | $\boldsymbol{0}$ | 16 962 | |
| Staff costs | $-1284$ | $-1143$ | 12 | $-1284$ | $-1136$ | 13 | -4 557 | |
| Other expenses | $-1408$ | $-1480$ | - 5 | $-1408$ | $-1314$ | 7 | $-5489$ | |
| Depreciation of assets | $-69$ | - 81 | $-15$ | - 69 | $-76$ | - 9 | $-308$ | |
| Total operating expenses | $-2761$ | $-2704$ | $\mathbf{2}$ | $-2761$ | $-2526$ | 9 | $-10354$ | |
| Profit before credit losses etc | 1 3 2 6 | 1746 | $-24$ | 1 3 2 6 | 1 5 6 0 | $-15$ | 6 608 | |
| Gains less losses on assets | $\overline{c}$ | $\overline{2}$ | 2 | 2 | ||||
| Net credit losses | $-1963$ | $-1093$ | 80 | $-1963$ | $-308$ | $-2359$ | ||
| Operating profit | - 635 | 655 - 197 | $-635$ | 1 252 - 151 | 4 2 5 1 | |||
| Cost/Income ratio | 0.68 | 0.61 | 0.68 | 0.62 | 0.61 | |||
| Business equity, SEK bn | 27.6 | 25.3 | 27.6 | 25.3 | 25.3 | |||
| Return on equity, % | $-8.2$ | 7.2 | $-8.2$ | 15.2 | 12.7 | |||
| Number of full time equivalents | 8 4 3 1 | 8580 | 8438 | 8647 | 8765 |
- Operating profit of Retail Sweden and Card showing resilience
- Operations in the Baltic countries characterized by strong recessionary forces
- Impact of lower market interest rates feeding through into lower Net interest income
Comments on the first quarter
The operating result for the first quarter amounted to SEK-635m (1,252). The results differed substantially between the various business areas.
Retail Banking in Sweden held up well during the first quarter. Income increased by 9 per cent compared with the first quarter of 2008, but decreased by 3 per cent compared with the previous quarter. Key driver behind the shortterm trend was decreased deposit margin. Growth in mortages continued, leading to a volume 8 per cent larger than a year earlier. Operating expenses decreased by 3 per cent compared with the fourth quarter in spite of significantly higher pension costs.
The resilience of operating profit can be attributed both to continued success in the SME-segment and to SEB's ability to attract mass affluent private clients. In terms of number of new clients within this segment, the first quarter of 2009 was the best quarter ever.
Operations in the Baltic countries continued to be characterized by strong recessionary forces. Provisions for credit losses in Estonia, Latvia and Lithuania increased to SEK 232m, 684m and 786m, respectively, in the first
quarter. To meet this, SEB has dedicated a substantial number of employees to advising customers affected by the economic crisis.
While lending exposure in the Baltic markets continued to decrease sligthly, progress was made within such other product areas as long-term savings and cash solutions, payments and foreign exchange, contributing to a balanced business mix.
In Germany, profitability deteriorated from an already unsatisfactory level. Sales of insurance and consumer lending improved compared with the first quarter of 2008, but could not compensate for the substantial effect of lower market interest rates.
Within the Card business area income increased compared with the first quarter of 2008, reflecting the strong competitive position and the different industry dynamics of this business area. Due to credit losses, although lower than in the previous quarter, operating profit remained at the same level as in the first quarter of 2008
Wealth Management
This division has two business areas – Institutional Clients and Private Banking.
Profit and loss account
| Q1 | Q4 | Jan-Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | $\%$ | 2008 |
| Net interest income | 198 | 220 | $-10$ | 198 | 248 | $-20$ | 915 |
| Net fee and commission income | 662 | 1 1 2 5 | $-41$ | 662 | 964 | $-31$ | 3702 |
| Net financial income | 20 | 26 | $-23$ | 20 | 20 | 69 | |
| Net other income | 11 | - 91 | 9 | - 89 | 49 | ||
| Total operating income | 881 | 1 3 8 2 | $-36$ | 881 | 1 24 1 | $-29$ | 4735 |
| Staff costs | $-344$ | $-351$ | $-2$ | $-344$ | $-387$ | $-11$ | $-1441$ |
| Other expenses | $-292$ | $-331$ | $-12$ | $-292$ | $-293$ | 0 | $-1154$ |
| Depreciation of assets | $-30$ | $-29$ | 3 | $-30$ | $-24$ | 25 | $-100$ |
| Total operating expenses | - 666 | $-711$ | - 6 | - 666 | $-704$ | - 5 | $-2695$ |
| Profit before credit losses etc | 215 | 671 | - 68 | 215 | 537 | - 60 | 2 040 |
| Gains less losses on assets | |||||||
| Net credit losses | - 8 | $-15$ | $-47$ | - 8 | - 25 | - 68 | $-18$ |
| Operating profit | 207 | 656 | - 68 | 207 | 512 | - 60 | 2022 |
| Cost/Income ratio | 0.76 | 0.51 | 0.76 | 0.57 | 0.57 | ||
| Business equity, SEK bn | 5.5 | 6.6 | 5.5 | 6.6 | 6.6 | ||
| Return on equity, % | 10.8 | 28.6 | 10.8 | 22.3 | 22.1 | ||
| Number of full time equivalents | 1 1 1 2 | 1 1 3 5 | 1 1 0 8 | 1 201 | 1 1 8 1 |
- Volatile stock markets and reduced asset values lowered base income
- Good net sales in both Institutional Clients and Private Banking
Comments on the first quarter
The uncertainty on the global financial markets continued during the first quarter, resulting in declining asset values, reduced client brokerage activity and lower interest rates. Operating income dropped to SEK 881m (1,241), mainly as a result of a 10 per cent reduction in assets under management versus previous year and lower income from performance and transaction fees, at SEK 27m (183).
SEB is the second largest mutual fund manager in Sweden. During the first quarter net sales on the Swedish mutual funds market improved overall. SEB had a smaller share of the total net sales compared to 2008 and continued to dominate the alternative fund market with a net inflow of SEK 1.6bn.
The division's total assets under management fell by 1 per cent from year-end to SEK 1,128bn, primarily affected by lower asset values. Exchange rate effects and net sales of SEK 8bn (7) helped limit the decline in assets under management.
Investment performance improved during the first quarter, with 62 per cent (33) of portfolios and 40 per cent (29) of assets under management ahead of their respective benchmarks at the end of March.
Operating expenses decreased by 5 per cent, to SEK 666m
Institutional Clients was affected by the declining asset values. Lower base commissions and limited performance fees were the main reasons for the drop in income. Institutional Clients reported continued strong net sales for the first quarter. Net sales amounted to SEK 19.4bn for the last 12 months. Product development has been a priority and new index funds and credit funds have been launched during the quarter. A family of so called strategic funds have been launched in order to offer an active asset allocation service based on the client's different risk profiles.
Private Banking generated net sales of SEK 4.7bn (5.8). In comparison with the previous quarter, sales improved due to a number of strategic efforts started in 2008; the launch of the modern investment programmes, the SEB Way transformation and closer co-operation with the Retail Banking division. Also Private Banking units in the Baltic region have been incorporated in the Private Banking figures as of 1 January 2009, with restated figures for 2008.
Life
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Profit and loss account
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Net interest income | - 10 | - 4 | 150 | - 10 | - 16 | - 38 | - 36 |
| Net life insurance income | 1 043 | 739 | 41 | 1 043 | 954 | 9 | 3 296 |
| Total operating income | 1 033 | 735 | 41 | 1 033 | 938 | 10 | 3 260 |
| Staff costs | - 274 | - 292 | - 6 | - 274 | - 262 | 5 | -1 105 |
| Other expenses | - 126 | - 117 | 8 | - 126 | - 148 | - 15 | - 523 |
| Depreciation of assets | - 165 | - 115 | 43 | - 165 | - 160 | 3 | - 569 |
| Total operating expenses | - 565 | - 524 | 8 | - 565 | - 570 | - 1 | -2 197 |
| Operating profit | 468 | 211 | 122 | 468 | 368 | 27 | 1 063 |
| Change in surplus values, net | 111 | 380 | - 71 | 111 | 250 | - 56 | 989 |
| Business result | 579 | 591 | - 2 | 579 | 618 | - 6 | 2 052 |
| Cost/Income ratio | 0.55 | 0.71 | 0.55 | 0.61 | 0.67 | ||
| Business equity, SEK bn | 6.8 | 7.5 | 6.8 | 7.5 | 7.5 | ||
| Return on equity, % | |||||||
| based on operating profit | 24.2 | 9.9 | 24.2 | 17.3 | 12.5 | ||
| based on business result | 30.0 | 27.7 | 30.0 | 29.0 | 24.1 | ||
| Number of full time equivalents | 1 206 | 1 226 | 1 209 | 1 218 | 1 233 |
- Higher operating profit from recovery of past provisions related to traditional portfolios
- Costs were stable
- Sweden Total premium income increased by 7 per cent; higher sales in
Comments on the first quarter
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Result by geography January-March 2009
pb_=çÑÑÉêë=ìåáîÉêë~ä=Ä~åâáåÖ=ëÉêîáÅÉë= áå=pïÉÇÉåI=dÉêã~åó=~åÇ=íÜÉ=_~äíáÅ=ÅçìåíêáÉë=J=bëíçåá~I=i~íîá~=~åÇ=iáíÜì~åá~K=fí=~äëç=Ü~ë=~=äçÅ~ä= éêÉëÉåÅÉ=áå=íÜÉ=çíÜÉê=kçêÇáÅ=ÅçìåíêáÉëI=mçä~åÇI=râê~áåÉ=~åÇ=oìëëá~=~åÇ=~=ÖäçÄ~ä=éêÉëÉåÅÉ=íÜêçìÖÜ=áíë=áåíÉêå~íáçå~ä=åÉíïçêâ=áå ÅçìåíêáÉëK= =~åçíÜÉê=NM=
- Improved results in the Nordic region in spite of worsened economic conditions
- 52 per cent of operating profit generated in Sweden
- Increased provisions for credit losses reduced operating profit in the Baltic countries
Comments on the first quarter of 2009
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| Distribution by country Jan - March | Total operating income | Total operating expenses | Operating profit | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | % | 2009 | 2008 | % | |
| Sweden | 5 663 | 5 096 | 11 | -4 447 | -3 384 | 31 | 931 | 1 693 | -45 | |
| Norway | 937 | 560 | 67 | - 306 | - 323 | -5 | 559 | 177 | ||
| Denmark | 801 | 604 | 33 | - 399 | - 356 | 12 | 357 | 225 | 59 | |
| Finland | 372 | 281 | 32 | - 99 | - 152 | -35 | 261 | 127 | 106 | |
| Germany | 1 649 | 1 353 | 22 | -1 366 | -1 210 | 13 | 182 | 108 | 69 | |
| Estonia | 370 | 328 | 13 | - 202 | - 137 | 47 | - 64 | 25 | ||
| Latvia | 467 | 409 | 14 | - 209 | - 176 | 19 | - 426 | 195 | ||
| Lithuania | 545 | 597 | -9 | - 265 | - 232 | 14 | - 504 | 348 | ||
| Other countries and eliminations | 626 | - 430 | 49 | - 57 | -186 | 506 | - 488 | |||
| Total | 11 430 | 8 798 | 30 | -7 244 | -6 027 | 20 | 1 802 | 2 410 | -25 |
SEK 0,6 bn t with SEK 1, Write-down of goodwill for holdings in Ukraine effect operating expenses and profit with Centralisation of CPM portfolios from US to Sweden effects operating i in Q1 2009. ncome and profi 8 bn in Q4 2008.
SEB in Ukraine and Russia
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åÉK=qÜÉ=~Åèìáëáíáçåë=ïÉêÉ=ã~ÇÉ=íç= ÄÉå íáãÉI= ÅçåÇáíáçåë=ïçêëÉåÉÇ=áå=OMMUI=ìåÇÉêäáåÉÇ=Äó=~=PM=éÉê=ÅÉåí= Ñ~ää=áå=dam=áå=íÜÉ=Ñáêëí=íïç=ãçåíÜë=çÑ=OMMVI=pb_Ûë=ÄìëáåÉëë= cçääçïáåÖ=íÜÉ=~Åèìáëáíáçåë=çÑ=_~åâ=^Öáç=áå=OMMQ=~åÇ c~Åíçêá~ä=_~åâ=áå=OMMTI=pb_=Ü~ë=NMMIMMM=ÅìëíçãÉêë=~åÇ= NIPMM=ÉãéäçóÉÉë=áå=râê~á ÉÑáí=Ñêçã=íÜÉ=äçåÖJíÉêã=ÖêçïíÜ=éçíÉåíá~ä=áåI=~í=íÜÉ çåÉ=çÑ=bìêçéÉÛë=Ñ~ëíÉëí=ÖêçïáåÖ=ã~êâÉíëK=^ë=íÜÉ=ÉÅçåçãáÅ=
=Ü~ë= OKT ÑçÅìë=Ü~ë=ÅÜ~åÖÉÇ=~åÇ=åç=ÑìêíÜÉê=Éñé~åëáçå=áë=éä~ååÉÇK= ^ÅÅçêÇáåÖäóI=íÜÉ=Ñìää=~Åèìáëáíáçå=ÖççÇïáääI=pbh=RVQãI ÄÉÉå=áãé~áêÉÇK=^í=íÜÉ=ÉåÇ=çÑ=j~êÅÜI=ÅêÉÇáí=ÉñéçëìêÉ ~ãçìåíÉÇ=íç=pbh=PKQÄåI=çÑ=ïÜáÅÜ=äç~åë=íç=íÜÉ=éìÄäáÅ=pbh= ÄåK=qÜÉ=Öêçëë=äÉîÉä=çÑ=áãé~áêÉÇ=~ëëÉíë=ï~ë=NKQ=éÉê=ÅÉåí= ~åÇ=íÜÉ=íçí~ä=êÉëÉêîÉ=ê~íáç=QOQ=éÉê=ÅÉåíK=qÜÉ=åÉí=ÅêÉÇáí=äçëë äÉîÉä=áåÅêÉ~ëÉÇ=íç=NOKQ=éÉê=ÅÉåíK==
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The SEB Group
Net interest income SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SE mK | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Interest income | 19 966 | 25 156 | - 21 | 19 966 | 24 091 | - 17 | 97 281 |
| Interest expense | -14 062 | -19 643 | - 28 | -14 062 | -19 868 | - 29 | -78 571 |
| Net interest income | 5 904 | 5 513 | 7 | 5 904 | 4 223 | 40 | 18 710 |
Net fee and commission income – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Iss ue of securities |
35 | 2 7 |
30 | 35 | 7 | 172 | |
| Secondary market | 559 | 444 | 26 | 559 | 758 | - 26 | 2 769 |
| Custody and mutual funds | 1 345 | 1 93 1 |
- 30 | 1 345 | 1 804 | - 25 | 7 022 |
| Securities commissions | 1 939 | 2 402 | - 19 | 1 939 | 2 569 | - 25 | 9 963 |
| Payments | 457 | 94 4 |
- 7 |
457 | 439 | 4 | 1 844 |
| Card fees | 1 037 | 1 094 | - 5 | 1 037 | 1 032 | 0 | 4 300 |
| Payment commissi ons |
1 494 | 1 588 | - 6 |
1 494 | 1 471 | 2 | 6 144 |
| Advisory | 177 | 327 | - 46 | 177 | 289 | - 39 | 1 118 |
| Lending | 335 | 29 1 |
15 | 335 | 185 | 81 | 1 004 |
| Deposits | 28 | 2 6 |
8 | 28 | 23 | 22 | 9 8 |
| Guarantees | 95 | 85 | 12 | 95 | 67 | 42 | 301 |
| Derivatives | 15 9 |
197 | - 19 | 159 | 113 | 41 | 601 |
| Other | 171 | 124 | 38 | 171 | 176 | - 3 | 648 |
| Other commissions | 965 | 1 050 | - 8 | 965 | 853 | 13 | 3 770 |
| Fee and commission income | 4 398 | 5 040 | - 13 | 4 398 | 4 893 | - 10 | 19 877 |
| Securities commissions | - 233 | - 228 | 2 | - 233 | - 241 | - 3 | - 970 |
| Payment commissions | - 639 | - 641 | 0 | - 639 | - 585 | 9 | -2 450 |
| Other commissions | - 311 | - 381 | - 18 | - 311 | - 266 | 17 | -1 203 |
| Fee and commission expense | -1 183 | -1 250 | - 5 | -1 183 | -1 092 | 8 | -4 623 |
| Securities commissions, net | 1 706 | 2 174 | - 22 | 1 706 | 2 328 | - 27 | 8 993 |
| Payment commissions, net | 855 | 947 | - 10 | 855 | 886 | - 3 | 3 694 |
| Other commissions, net | 654 | 669 | - 2 | 654 | 587 | 11 | 2 567 |
| Net fee and commission income | 3 215 | 3 790 | - 15 | 3 215 | 3 801 | - 15 | 15 254 |
Net financial income – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2009 | 2008 | % | 20 08 |
| Equity instruments and related derivatives | 95 | 449 | -79 | 95 | 171 | -44 | 1 415 |
| De bt instruments and related derivatives |
58 | 111 | -48 | 58 | -1 164 | -105 | -1 059 |
| Currency-related | 1 041 | 1 227 | -15 | 1 041 | 832 | 25 | 3 076 |
| Other financial instruments | 3 | 21 | -86 | 3 | 12 | ||
| Impairments | - 64 | - 85 | - 64 | - 474 | |||
| Net financial income | 1 133 | 1 723 | -34 | 1 133 | - 161 | 2 970 |
Net credit losses - Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| S EK m |
2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Pr ovisions: |
|||||||
| Net collective provisions for individually asses sed |
|||||||
| loans | - 902 | - 628 | 44 | - 902 | - 68 | - 712 | |
| Net collective provisions for portfolio assessed loans | - 432 | - 256 | 69 | - 432 | - 44 | - 591 | |
| Specific provisions | - 912 | - 788 | 16 | - 912 | - 190 | -1 718 | |
| Reversal of specific provisions no longer required | 190 | 142 | 34 | 190 | 44 | 336 | |
| Net p rovisions for contingent liabilities |
- 151 | - 36 | - 151 | 1 | - 56 | ||
| Ne t p rovisions |
-2 207 | -1 566 | 41 | -2 207 | - 257 | -2 741 | |
| Write-offs: | |||||||
| Total write-offs | - 291 | - 464 | -37 | - 291 | - 332 | -12 | -1 428 |
| Reversal of specific provisions utilized for write-offs | 79 | 210 | -62 | 79 | 201 | -61 | 699 |
| Write-offs not previously provided for | - 212 | - 254 | -17 | - 212 | - 131 | 62 | - 729 |
| Recovered from previous write-offs | 33 | 117 | -72 | 33 | 24 | 38 | 239 |
| Net write-offs | - 179 | - 137 | 31 | - 179 | - 107 | 67 | - 490 |
| Net credit losses | -2 386 | -1 703 | 4 0 |
-2 386 | - 364 | -3 231 |
Balance sheet – SEB Group
| Condensed | 31 March | 31 December | 31 March |
|---|---|---|---|
| SEK m | 2009 | 2008 | 2008 |
| Cash and cash balances with central banks | 18 929 | 44 852 | 17 728 |
| Loans to credit institutions | 284 096 | 266 363 | 308 822 |
| Loans to the public | 1 317 189 | 1 296 777 | 1 098 597 |
| Financial assets at fair value * | 639 483 | 635 454 | 694 111 |
| Available-for-sale financial assets * | 105 011 | 163 115 | 196 848 |
| Held-to-maturity investments * | 1 236 | 1 997 | 1 868 |
| Investments in associates | 1 152 | 1 129 | 1 314 |
| Tangible and intangible assets | 29 965 | 29 511 | 25 452 |
| Other assets | 63 167 | 71 504 | 53 823 |
| Total assets | 2 460 228 | 2 510 702 | 2 398 563 |
| Deposits by credit institutions | 401 471 | 429 425 | 455 707 |
| Deposits and borrowing from the public | 835 603 | 841 034 | 764 567 |
| Liabilities to policyholders | 210 939 | 211 070 | 213 046 |
| Debt securities | 495 782 | 525 219 | 499 622 |
| Financial liabilities at fair value | 276 325 | 295 533 | 256 961 |
| Ot her liabilities |
89 051 | 71 565 | 87 273 |
| Pr ovisions |
2 020 | 1 897 | 1 338 |
| Su bordinated liabilities |
50 081 | 51 230 | 42 990 |
| T otal equity |
98 956 | 83 729 | 77 059 |
| T otal liabilities and equity |
2 460 228 | 2 510 702 | 2 398 563 |
| * Of which bonds and other interest bearing securities inclusive derivatives. |
567 980 | 628 675 | 675 521 |
Memorandum items – SEB Group
| 31 March | 31 December | 31 March | |
|---|---|---|---|
| SEK m | 2009 | 2008 | 2008 |
| Collateral and comparable security pledged for own liabilities | 379 334 | 375 227 | 388 200 |
| Other pledged assets and comparable collateral | 168 276 | 152 142 | 240 060 |
| Contingent liabilities | 92 145 | 86 675 | 63 621 |
| Commitments | 440 504 | 416 533 | 443 059 |
Statement of changes in equity – SEB Group
| Translation | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| for-sale | Total Share | ||||||||
| Share | Retained | of foreign | financial | Cash flow | holder's | Minority | |||
| SEK m | capital | earnings | operations | assets | hedges | Other | equity | interests Total Equity | |
| Jan-Mar 2009 | |||||||||
| Opening balance | 6 872 | 75 949 | -225 | -3 062 | 1 767 | 2 236 | 83 537 | 192 | 83 729 |
| Net profit | 1 025 | 1 025 | 2 | 1 027 | |||||
| Other comprehensive income (net of tax) | -248 | - 153 | - 67 | 50 | - 418 | 13 | - 405 | ||
| Total comprehensive income | 1 025 | - 248 | - 153 | - 67 | 50 | 607 | 15 | 622 | |
| Rights issue | 15 070 | - 564 | 14 506 | 14 506 | |||||
| Swap hedging of employee stock option programme* Eliminations of repurchased shares for employee |
98 | 98 | 98 | ||||||
| stock option programme** | 1 | 1 | 1 | ||||||
| Closing balance | 21 942 | 76 509 | - 473 | -3 215 | 1 700 | 2 286 | 98 749 | 207 | 98 956 |
| Jan-Dec 2008 | |||||||||
| Opening balance | 6 872 | 70 149 | -377 | - 438 | 160 | 162 | 76 528 | 191 | 76 719 |
| Net profit | 10 041 | 10 041 | 9 | 10 050 | |||||
| Other comprehensive income (net of tax) | 152 | -2 624 | 1 607 | 2 074 | 1 209 | - 8 | 1 201 | ||
| Total recognised income | 10 041 | 152 | -2 624 | 1 607 | 2 074 | 11 250 | 1 | 11 251 | |
| Dividend to shareholders | -4 451 | -4 451 | -4 451 | ||||||
| Swap hedging of employee stock option programme* Eliminations of repurchased shares for employee |
27 | 27 | 27 | ||||||
| stock option programme** | 183 | 183 | 183 | ||||||
| Closing balance | 6 872 | 75 949 | - 225 | -3 062 | 1 767 | 2 236 | 83 537 | 192 | 83 729 |
| J an-Mar 2008 |
|||||||||
| Op ening balance |
6 872 | 70 149 | -377 | - 438 | 160 | 162 | 76 528 | 191 | 76 719 |
| Net profit | 1 847 | 1 847 | 1 | 1 848 | |||||
| Other comprehensive income (net of tax) | -228 | -1 189 | - 69 | -174 | -1 660 | - 16 | -1 676 | ||
| Total recognised income | 1 847 | - 228 | -1 189 | - 69 | - 174 | 187 | - 15 | 172 | |
| Swap hedging of employee stock option programme* Eliminations of repurchased shares for employee |
54 | 54 | 54 | ||||||
| stock option programme** | 114 | 114 | 114 | ||||||
| Closing balance | 6 872 | 72 164 | - 605 | -1 627 | 91 | - 12 | 76 883 | 176 | 77 059 |
Includes changes in nominal amounts of equity swaps used for hedging of stock option programmes. *
As of 31 December 2008 SEB owned 2.2 million Class A shares for the employee stock option programme. The acquisition cost for these shares is deducted from shareholders' quity. During 2009 0.1 million net of these shares have been sold as employee stock options have been exercised. Thus, as of 31 March 2009 SEB owned 2.1 million Class A-shares ith a market value of SEK 55m for hedging of the long-term incentive programmes. * e w
Cash flow statement – SEB Group
| Jan - Mar | ||||||
|---|---|---|---|---|---|---|
| SEK m | 2009 | 2008 | % | 2008 | ||
| Cash flow from operating activities | - 55 194 | - 63 253 | - 13 | - 16 441 | ||
| Cash flow from investment activities1) | - 620 | - 1 214 | - 49 | - 6 050 | ||
| Cash flow from financing activities | 13 069 | 28 104 | - 53 | 2 653 | ||
| Net increase in cash and cash equivalents | - 42 745 | - 36 363 | 18 | - 19 838 | ||
| Cash and cash equivalents at beginning of year | 175 147 | 194 985 | - 10 | 194 985 | ||
| Net increase in cash and cash equivalents | - 42 745 | - 36 363 | 18 | - 19 838 | ||
| Cash and cash equivalents at end of period2) | 132 402 | 158 622 | - 17 | 175 147 | ||
| 1) Including investments in subsidiaries | ||||||
| Cost of acquisitions | - 708 | - 100 | - 1 040 | |||
| Less cash acquired Outflow on acquisition |
- 708 - 100 | - 1 040 |
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.
Reclassified portfolios - SEB Group
| Q1 | Q4 | J | an - Mar | |||
|---|---|---|---|---|---|---|
| 2009 | 2008 | % | 2009 | 2008 % |
2008 | |
| Reclassified, SEB bn | ||||||
| Opening balance | 107 | 99 | 8 | 107 | ||
| Reclassified | 52 | 52 | 95 | |||
| Amortisations | - 2 | - 3 | -33 | - 2 | - 4 | |
| Securities sold | - 2 | - 2 | ||||
| Accrued coupon | 1 | 1 | 1 | 2 | ||
| Translation difference | 1 | 10 | -90 | 1 | 1 4 |
|
| Closing balance* | 157 | 107 | 47 | 157 | 107 | |
| * Market value | 147 | 100 | 147 | 100 | ||
| Fair value impact - if not reclassified, SEK m | ||||||
| In Equity (AFS origin) | -3 206 | -3 753 | -15 | -3 206 | -5 252 | |
| In Income Statement (HFT origin) | - 318 | -1 163 | -73 | - 318 | -1 623 | |
| Total | -3 524 | -4 916 | -28 | -3 524 | -6 875 | |
| Effect in Income Statement, SEK m* | ||||||
| N et interest income |
1 371 | 980 | 40 | 1 371 | 1 959 | |
| Net financial income |
1 276 | 9 945 | -87 | 1 276 | 13 699 | |
| Other income | 205 | 205 | ||||
| Total | 2 852 | 10 925 | -74 | 2 852 | 15 658 |
* Total impact in Income statement for the reclassified portfolios, including impact even if reclassification had not been done.
As of 1 January 2009 SEB reclassified SEK 47bn in the AFS and SEK 5bn in the HFT categories as L&R.
Assets held for trading, no longer held for the purpose of selling in the near term, were reclassified based on the Group's view that the deterioration of the financial markets represent the rare circumstance required for such reclassification. The Group had the intention and ability to hold reclassified available for sale assets for the foreseeable future or until maturity.
The Group estimates to recover the principal amounts (undiscounted cash flows) of SEK 1 bn within 1-2 years, SEK19 bn within 2-5 years and SEK 33bn after 5 years. The SEK 52 bn reclassified assets have floating rate and fixed rate coupons. The effective interest rate spreads for floating rate financial assets were between 0.25 and 1.90 per cent above interbank offered rates. The effective interest rate on fixed-coupon reclassified assets were between 3.0 and 6.0 per cent.
Impaired loans – SEB Group
| 31 March | 31 December | 31 March | |
|---|---|---|---|
| SEK m | 2009 | 2008 | 2008 |
| Individually assessed loans | |||
| Non-performing impaired loans | 11 928 | 10 463 | 6 543 |
| Performing impaired loans | 1 054 | 948 | 778 |
| Total impaired loans | 12 982 | 11 411 | 7 321 |
| Reserves for non-performing loans | - 5 179 | - 4 679 | - 3 372 |
| Reserves for performing loans | - 429 | - 343 | - 297 |
| Total specific reserves | - 5 608 | - 5 022 | - 3 669 |
| Collective reserves for individually assessed loans | - 3 685 | - 2 793 | - 1 963 |
| Total reserves | - 9 293 | - 7 815 | - 5 632 |
| Specific reserve ratio for individually assessed impaired loans | 43,2% | 44,0% | 50,1% |
| Total reserve ratio for individually assessed impaired loans | 71,6% | 68,5% | 76,9% |
| Net level of impaired loans | 0,46% | 0,41% | 0,26% |
| Gross level of impaired loans | 0,81% | 0,73% | 0,52% |
| Portfolio assessed loans | |||
| Loans past due > 60 days | 3 841 | 2 500 | 1 232 |
| Collective reserves for portfolio assessed loans | - 1 847 | - 1 404 | - 740 |
| Reserve ratio for portfolio assessed loans | 48,1% | 56,2% | 60,1% |
| Reserves | |||
| Sp ecific reserves |
-5 608 | -5 022 | -3 669 |
| Colle ctive reserves |
-5 532 | -4 197 | -2 703 |
| Reserv es for off-balance sheet items |
- 407 | - 251 | - 202 |
| T otal reserves |
- 11 547 | - 9 470 | - 6 574 |
Seized assets – SEB Group
| 31 March | 31 December | 31 March | |
|---|---|---|---|
| SEK m | 2009 | 2008 | 2008 |
| P roperties |
311 | 30 | 24 |
| Shar es |
50 | 106 | 50 |
| T otal volume of pledges taken over |
361 | 136 | 74 |
Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09
Rating
| Moody's Outlook Negative (April 2009) |
Standard & Poor's Outlook Negative (March 2009) |
Fitch Outlook Stable (February 2009) |
DBRS Outlook Stable (February 2009) |
||||
|---|---|---|---|---|---|---|---|
| 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 2009 | per cent |
| Investor AB | 20,7 |
| Trygg Foundation | 9,6 |
| Alecta | 5,3 |
| Swedbank/ Robur Funds | 3,9 |
| AFA Försäkring entities | 2,7 |
| SEB Funds | 2,3 |
| 4th AP Fund | 1,8 |
| 2nd AP Fund | 1,8 |
| Capital Group Funds | 1,6 |
| Wallenberg-foundations | 1,5 |
| Foreign owners Source: Eurocard Sweden/SIS Ägarservice |
19,4 |
Additional Information Jan – March 2009
STOCKHOLM 24 APRIL 2009
Appendix 1 The Life division
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Comments on the first quarter 2009
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qçí~ä=ë~äÉëI=ïÉáÖÜíÉÇ=îçäìãÉI=~ãçìåíÉÇ=íç=pbh=NOKVÄåI= ~=ÇÉÅêÉ~ëÉ=çÑ=pbh=MKQÄå=çê=P=éÉê=ÅÉåí=Åçãé~êÉÇ=ïáíÜ=ä~ëí= óÉ~êK=råáíJäáåâÉÇ=ë~äÉë=áå=pïÉÇÉå=áåÅêÉ~ëÉÇ=Äó=pbh=MKSÄåK= qÜÉ=ìåáíJäáåâÉÇ=éêçÇìÅí=mçêíÑçäáç=_çåÇ=EÇÉéçí=ÉåÇçïãÉåí= áåëìê~åÅÉF=ÇÉÅêÉ~ëÉÇ=Äó=pbh=MKQÄåK=qÜáë=éêçÇìÅí=áë= ~ÅÅçìåíÉÇ=Ñçê=áå=ÄìëáåÉëë=~êÉ~=fåíÉêå~íáçå~ä=Äìí=áë éêáã~êáäó=ëçäÇ=íç=pïÉÇáëÜ=ÅìëíçãÉêëK=qê~Çáíáçå~ä=áåëìê~åÅÉ= áå=pïÉÇÉå=ÇÉÅêÉ~ëÉÇ=Äó=pbh=MKOÄåK=táíÜáå=pb_=mÉåëáçå= ÄçíÜ=íê~Çáíáçå~ä=áåëìê~åÅÉ=~åÇ=ìåáíJäáåâÉÇ=ÇÉÅêÉ~ëÉÇ=ïáíÜ=~= ÅçãÄáåÉÇ=~ãçìåí=çÑ=pbh=MKRÄåK=p~äÉë=áå=íÜÉ=_~äíáÅ= Åçãé~åáÉë=ÇÉÅêÉ~ëÉÇ=Äó=PP=éÉê=ÅÉåí=~åÇ=~ãçìåíÉÇ=íç= pbh=MKOÄåK=p~äÉë=áå=íÜÉ=fêáëÜ=ëìÄëáÇá~êóÛë=iìñÉãÄçìêÖ= Äê~åÅÜ=ÅçåíêáÄìíÉÇ=ïáíÜ=pbh=MKOÄåK=
SEB Trygg Liv, Sweden
qÜÉ=pïÉÇáëÜ=çéÉê~íáçåë=~êÉ=ÅçåÇìÅíÉÇ=é~êíäó=~ÅÅçêÇáåÖ=íç= ~=Ä~åâ~ëëìê~åÅÉ=ÅçåÅÉéíI=áKÉK=~å=áåíÉÖê~íÉÇ=Ä~åâáåÖ=~åÇ= áåëìê~åÅÉ=çéÉê~íáçåI=~åÇ=é~êíäó=íÜêçìÖÜ=áåëìê~åÅÉ= ãÉÇá~íçêë=~åÇ=çíÜÉê=ÉñíÉêå~ä=é~êíåÉêëK=qÜÉ=éìêéçëÉ=çÑ=íÜÉ= ÅçåÅÉéí=áë=íç=çÑÑÉê=pb_Ûë=ÅìëíçãÉêë=~=ÅçãéäÉíÉ=ê~åÖÉ=çÑ= éêçÇìÅíë=~åÇ=ëÉêîáÅÉë=ïáíÜáå=íÜÉ=Ñáå~åÅá~ä=~êÉ~K=p~îáåÖë=áå= life insurance products, including pension savings, represent a growing share of the Swedish households' financial assets. According to the SEB "Sparbarometern" this share was 49 per cent by 31 December 2008.
Market position
Sales focus is on unit-linked, which represents 95 per cent of total sales. SEB Trygg Liv is the market leader in Sweden within unit-linked insurance. The market share for full year 2008 was 24.4 per cent (22.5). Distribution channels are SEB's branch offices, own sales force and insurance mediators
Significant occupational pension business
Corporate sales have gradually grown and increased the share of total sales. During the full year 2008, this share however decreased to 72 per cent from 78 per cent in 2007. During the first quarter 2009 the decrease continued to 63 per cent. SEB Trygg Liv is the market leader within new business unit-linked occupational pension. The market share for full year 2008 was 19.0 per cent (19.2).
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 also 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 2008 was 33.5 per cent (29.9).
Sales of private pension savings is 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
The traditional life insurance operation in SEB Pension Denmark is 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".
By year end 275 million danish crowns were placed in a "shadow account", according to Danish legislation regarding shareholder fee available for distribution in profit-sharing traditional life insurance. The amount is considered as restricted equity and not available for dividend to the shareholders of the company. During the first quarter 2009 the amount increased to 318 million danish crowns
SEB Pension's products
SEB Pension sells savings, life, sickness and disability insurance to private individuals and corporate clients through own sales personnel, insurance mediators and Codan Forsikring.
Savings insurance is available both as unit-linked and traditional insurance. In the danish private market unitlinked insurance dominates whereas traditional insurance still accounts for the larger part of sales in the corporate market. Some collective agreements do not allow sole unitlinked insurance solutions in occupational pension plans.
The trend is that the market for non-traditional life insurance such as unit-linked is expanding. The growth is mainly in the corporate segment sold mainly by insurance mediators.
Growing occupational pension market
Since year 2000 the growth is mainly in the Danish occupational pension market while the private market is relatively unchanged.
SEB Pension's development in the market has been in line with the general trend. Measured in terms of premium income, SEB Pension has a total market share of about 5 per cent. The market share in the unit-linked segment is about 10 per. Danica is the dominating company with a market share of about 17 and 40 per cent respectively.
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 subsidiaries in Ireland, Estonia, Latvia, Lithuania and Ukraine. The Irish company has branch officies in the UK, Luxembourg and Finland.
The operations of the Irish company SEB Life (Ireland) are focused primarily on sales of Portfolio Bond (depot endowment insurance). Sales are primarily concentrated on the Swedish market. The branch office in Luxembourg focus on sales via SEB Private Banking to Swedes living abroad. Since 2008 the Finnish branch office focus on sales to the Finnish market.
The Baltic subsidiaries concentrate primarily on unitlinked insurance but offer traditional insurance and sickness/disability insurance as well. About 95 per cent of the sales volume is private and 5 per cent corporate paid.
Profit & loss account
| SEKm | Q 1 2009 |
Q 4 2008 |
Q 3 2008 |
Q 2 2008 |
Q 1 2008 |
Full year 2008 |
|---|---|---|---|---|---|---|
| Income unit-linked | 437 | 459 | 469 | 491 | 484 | 1 903 |
| Income other insurance Other income |
440 156 |
47 229 |
129 119 |
317 62 |
295 159 |
788 569 |
| Total operating income | 1 033 | 735 | 717 | 870 | 938 | 3 260 |
| Operating expenses | -627 | -623 | -647 | -583 | -608 | -2 461 |
| Other expenses | -1 | -1 | -1 | -20 | -2 | -24 |
| Change in deferred acquisition costs | 63 | 100 | 107 | 41 | 40 | 288 |
| Total expenses | -565 | -524 | -541 | -562 | -570 | -2 197 |
| Operating profit 1) | 468 | 211 | 176 | 308 | 368 | 1 063 |
| Change in surplus value, net | 111 | 380 | 132 | 227 | 250 | 989 |
| Business result | 579 | 591 | 308 | 535 | 618 | 2 052 |
| Financial effects due to market fluctuations 2) | -282 | -914 | -897 | -196 | -1 819 | -3 826 |
| Change in assumptions 2) | -32 | -151 | -1 | 38 | -25 | -139 |
| Total result | 265 | -474 | -590 | 377 | -1 226 | -1 913 |
| Business equity | 6 800 | 7 500 | 7 500 | 7 500 | 7 500 | 7 500 |
| Return on business equity 3) | ||||||
| based on operating profit, % | 24,2% | 9,9% | 8,3% | 14,5% | 17,3% | 12,5% |
| based on business result, % | 30,0% | 27,7% | 14,5% | 25,1% | 29,0% | 24,1% |
| Expense ratio, % 4) | 7,9 | 8,1 | 9,7 | 8,2 | 8,2 | 8 ,5 |
| 1) SEB Trygg Liv, Sweden | 277 | -14 | 172 | 282 | 222 | 662 |
| SEB Pension, Denmark | 180 | 232 | 34 | 61 | 157 | 484 |
| SEB Life & Pension, International | 25 | 27 | 1 | 22 | 19 | 69 |
| Other including central functions etc | -14 | -34 | -31 | -57 | -30 | -152 |
| 468 | 211 | 176 | 308 | 368 | 1 063 |
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)
| SEKm | Q 1 2009 |
Q 4 2008 |
Q 3 2008 |
Q 2 2008 |
Q 1 2008 |
Full year 2008 |
|---|---|---|---|---|---|---|
| Total | 12 912 | 12 939 | 10 686 | 11 884 | 13 314 | 48 823 |
| SEB Trygg Liv Sweden | 8 086 | 7 352 | 6 592 | 6 732 | 7 674 | 28 350 |
| Traditional life and sickness/health insurance | 401 | 349 | 340 | 367 | 564 | 1 620 |
| Unit-linked insurance | 7 685 | 7 003 | 6 252 | 6 365 | 7 110 | 26 730 |
| Private paid | 2 983 | 2 279 | 1 713 | 1 952 | 2 021 | 7 965 |
| Corporate paid | 5 103 | 5 073 | 4 879 | 4 780 | 5 653 | 20 385 |
| SEB Pension Denmark | 3 459 | 4 404 | 3 138 | 3 433 | 3 947 | 14 922 |
| Traditional life and sickness insurance | 2 080 | 2 953 | 2 050 | 2 269 | 2 302 | 9 574 |
| Unit-linked insurance | 1 379 | 1 451 | 1 088 | 1 164 | 1 645 | 5 348 |
| Private paid | 586 | 696 | 472 | 560 | 885 | 2 613 |
| Corporate paid | 2 873 | 3 708 | 2 666 | 2 873 | 3 062 | 12 309 |
| SEB Life & Pension International | 1 367 | 1 183 | 956 | 1 719 | 1 693 | 5 551 |
| Traditional life and sickness insurance | 182 | 342 | 285 | 212 | 152 | 991 |
| Unit-linked insurance | 1 185 | 841 | 671 | 1 507 | 1 541 | 4 560 |
| Private paid | 1 083 | 1 013 | 786 | 1 489 | 1 309 | 4 597 |
| Corporate paid | 284 | 170 | 170 | 230 | 384 | 954 |
Premium income and Assets under management
| Q 1 | Q 4 | Q 3 | Q 2 | Q 1 | Full year |
|
|---|---|---|---|---|---|---|
| SEKm | 2009 | 2008 | 2008 | 2008 | 2008 | 2008 |
| Premium income | ||||||
| Total | 7 919 | 7 692 | 6 684 | 7 131 | 7 421 | 28 928 |
| SEB Trygg Liv Sweden | 4 508 | 4 085 | 4 247 | 3 750 | 4 048 | 16 130 |
| Traditional life and sickness/health insurance | 777 | 866 | 590 | 749 | 755 | 2 960 |
| Unit-linked insurance | 3 731 | 3 219 | 3 657 | 3 001 | 3 293 | 13 170 |
| SEB Pension Denmark | 2 071 | 2 517 | 1 753 | 1 902 | 1 726 | 7 898 |
| Traditional life and sickness insurance | 1 436 | 1 795 | 1 204 | 1 361 | 1 123 | 5 483 |
| Unit-linked insurance | 635 | 722 | 549 | 541 | 603 | 2 415 |
| SEB Life & Pension International | 1 340 | 1 090 | 684 | 1 479 | 1 647 | 4 900 |
| Traditional life and sickness insurance | 96 | 109 | 83 | 78 | 76 | 346 |
| Unit-linked insurance | 1 244 | 981 | 601 | 1 401 | 1 571 | 4 554 |
| Assets under management, net assets * | ||||||
| Total | 347 000 | 354 400 | 364 400 | 376 300 | 384 300 | 354 400 |
| SEB Trygg Liv Sweden | 235 800 | 242 000 | 260 300 | 274 800 | 281 400 | 242 000 |
| Traditional life and sickness/health insurance | 145 000 | 151 700 | 165 100 | 174 900 | 181 700 | 151 700 |
| Unit-linked insurance | 90 800 | 90 300 | 95 200 | 99 900 | 99 700 | 90 300 |
| SEB Pension Denmark | 94 000 | 95 900 | 86 500 | 83 100 | 85 100 | 95 900 |
| Traditional life and sickness insurance | 84 500 | 86 900 | 77 800 | 74 500 | 76 800 | 86 900 |
| Unit-linked insurance | 9 500 | 9 000 | 8 700 | 8 600 | 8 300 | 9 000 |
| SEB Life & Pension International | 17 200 | 16 500 | 17 600 | 18 400 | 17 800 | 16 500 |
| Traditional life and sickness insurance | 1 100 | 700 | 600 | 600 | 500 | 700 |
| Unit-linked insurance | 16 100 | 15 800 | 17 000 | 17 800 | 17 300 | 15 800 |
* rounded to whole 100 millions
Surplus value accounting Traditional insurance Denmark is not included Traditional insurance Denmark* Q 1 Q 4 Q 3 Q 2 Q 1 Full year Q 1 Full ye SEKm 2009 2008 2008 2008 2008 2008 2009 2008 Surplus values, opening balance 11 549 12 160 12 902 12 896 14 496 14 496 1 111 958 Adjustment opening balance 1) -81 1 -69 -68 Present value of new sales 2) 402 267 473 399 449 1 588 34 155 Return/realised value on policies from previous periods ar -61 -81 -79 -72 -71 -303 -40 -163 Actual outcome compared to assumptions 3) -167 294 -155 -59 -88 -8 177 99 Change in surplus values ongoing business, gross 174 480 239 268 290 1 277 171 91 Capitalisation of acquisition costs for the period -217 -200 -244 -175 -188 -807 Amortisation of capitalised acquisition costs 154 100 137 134 148 519 Change in surplus values ongoing business, net 4) 111 380 132 227 250 989 171 91 Financial effects due to short term market fluctuations 5) -282 -914 -897 -196 -1 819 -3 826 -29 -195 Change in assumptions 6) -32 -151 -1 38 -25 -139 72 106 Total change in surplus values -203 -685 -766 69 -1 594 -2 976 214 2 Exchange rate differences etc 1 73 24 6 -6 97 3 1 Surplus values, closing balance 7) 11 266 11 549 12 160 12 902 12 896 11 549 1 328 1 111 51
Based on preliminary calculations - not included in the total figures for the division. *
Effects from adjustments of the calculation method. 1)
2) Sales defined as new contracts and extra premiums in existing contracts.
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. 3)
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. 4)
Assumed unit growth is 5.5 per cent gross (before fees and taxes). Actual growth results in positive or negative financial effects. 5)
During Q4 2008 the major negative net effect was due to adjustments of the surrender rate and the lapse rate. The lower assumed growth in fund assets had a negative effect which was more than offset by a positive effect from a lower discount rate. 6)
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 3,415m at March 31, 2009). 7)
| Most important assumptions (Swedish customer base - which represent 94 per cent of the surplus value), per cent. | |||
|---|---|---|---|
| Discount rate | 7,5 | 7,5 | |
| Surrender of endowment insurance contracts: contracts signed | 1 / 10 / |
1 / 10 / | |
| w ithin 1 year / 1-4 years / 5 years / thereafter |
20 / 11 | 20 / 11 | |
| Lapse rate of regular premiums, unit-linked | 11 | 11 | |
| Growth in fund units, gross before fees and taxes | 5,5 | 5,5 | |
| I nflation CPI / Inflation expenses |
2 / 3 | 2 / 3 | |
| Ex pected return on solvency margin |
4 | 4 | |
| Right to transfer policy, unit-linked | 1 | 1 | |
| M ortality |
The Group's experience | The Group's experience | |
| Sen sitivity to changes in assumptions (total division). |
|||
| Change in discount rate | +1 per cent | -1 326 | -1 353 |
| -1 per cent | 1 538 | 1 559 | |
| Change in value growth of investment assets +1 per cent | 1 339 | 1 360 | |
| -1 per cent | -1 173 | -1 200 |
Surplus values
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Denmark is not vet included in the total surplus values for the division. In the table above initial calculations are presented as supplementary information. Profit distribution between shareholders and policyholders in this business is defined by the so-called contribution principle. Surplus values are therefore the net present value of future profits allocated to the shareholders. As for unit-linked, the calculations are based on different
assumptions, which are adjusted as required to correspond to the long term actual development. During the full year 2008 there were positive effects of changes in assumptions mainly due to lower expenses per policy and a reduction in the surrender rate in combination with an increase in surrender fees. During the first quarter 2009 the positive effect of changed assumptions was due to a decrease of the discount rate from 8 to 7.5 per cent.
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 2008 - Mar 2009 | Jan-Dec 2008 | Jan-Dec 2007 | Jan-Dec 2006 |
|---|---|---|---|---|
| Sales volume weighted (regular $+$ single/10) | 3844 | 3858 | 3689 | 3 3 4 5 |
| Present value of new sales | 1 556 | 1598 | 1 7 7 5 | 1 788 |
| Sales expenses | $-893$ | $-879$ | $-901$ | -970 |
| Profit from new business | 663 | 719 | 874 | 818 |
| Sales margin new business | 17.2% | 18.6% | 23.7% | 24,5% |
2007 and later is calculated for the total division. 2006 is business area Sweden. The traditional insurance in Denmark is not included.
The margin during 2008 is adversely affected by a change in the product mix.
Embedded value
| SEKm | 31 Mar 2009 | 31 Dec 2008 | 31 Dec 2007 | 31 Dec 2006 |
|---|---|---|---|---|
| Equity $1$ | 9 5 2 3 | 8827 | 8836 | 8450 |
| Surplus values | 11 266 | 11 549 | 14 4 9 6 | 12872 |
| 1) Dividend paid to the parent company during the period | $-1275$ | $-1150$ | -400 |
The traditional insurance in Denmark is not included in the surplus values.
Gamla Livförsäkringsaktiebolaget
Traditional insurance business is operated in Gamla Livförsäkringsaktiebolaget SEB Trygg Liv ("Gamla Liv"). The entity is operated according to mutual principles and is not consolidated in SEB Trygg Liv's result. Gamla Liv is closed for new business.
The policyholder organisation, Trygg Stiftelsen (the Trygg Foundation), has the purpose to secure policy holders' influence in Gamla Liv. The Trygg Foundation is entitled to:
- •Appoint two board members of Gamla Liv and, jointly with SEB, appoint the Chairman of the Board, which consists of five members.
- •Appoint the majority of members and the Chairman of the Finance Delegation, which is responsible for the asset management of Gamla Liv.
Appendix 2 Credit portfolio by industry and geography*
| SEB Group, 31 March 2009 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK bn | Sweden Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total | |
| Banks | 157.9 | 20.6 | 12.0 | 2.3 | 0.2 | 1.4 | 0.5 | 55.9 | 24.1 | 274.9 |
| Finance and insurance | 47.8 | 1.2 | 2.9 | 2.3 | 0.2 | 1.0 | 0.4 | 16.2 | 15.0 | 87.0 |
| Wholesale and retail | 33.6 | 1.1 | 2.4 | 0.5 | 4.8 | 6.2 | 13.1 | 16.5 | 6.5 | 84.7 |
| Transportation | 23.7 | 1.9 | 3.7 | 0.5 | 1.8 | 2.6 | 6.4 | 3.0 | 0.6 | 44.2 |
| Shipping | 11.7 | 3.5 | 10.9 | 0.1 | 1.1 | 0.3 | 0.4 | 12.7 | 40.7 | |
| Business and household services | 81.0 | 1.4 | 16.2 | 3.2 | 2.7 | 2.1 | 3.7 | 35.6 | 3.9 | 149.8 |
| Construction | 8.7 | 0.1 | 0.9 | 0.4 | 1.9 | 2.7 | 2.9 | 3.9 | 0.8 | 22.3 |
| Manufacturing | 120.3 | 5.4 | 13.5 | 17.0 | 5.0 | 4.1 | 12.0 | 29.7 | 19.2 | 226.2 |
| Agriculture, forestry and fishing | 3.6 | 0.4 | 1.4 | 2.4 | 0.9 | 0.2 | 0.1 | 9.0 | ||
| Mining and quarrying | 6.1 | 1.1 | 9.9 | 0.4 | 0.1 | 0.1 | 0.1 | 1.0 | 0.7 | 19.5 |
| Electricity, gas and water supply | 24.2 | 1.4 | 3.2 | 10.1 | 2.1 | 1.4 | 2.7 | 6.8 | 0.7 | 52.6 |
| Other | 20.4 | 3.6 | 3.9 | 0.4 | 0.5 | 0.4 | 0.7 | 7.7 | 7.1 | 44.7 |
| Corporates | 381.1 | 21.1 | 67.5 | 34.9 | 21.6 | 23.3 | 43.3 | 120.6 | 67.3 | 780.7 |
| Commercial | 48.5 | 0.3 | 12.8 | 8.9 | 8.4 | 4.7 | 15.8 | 67.7 | 0.8 | 167.9 |
| Multi-family | 59.9 | 2.7 | 34.2 | 96.8 | ||||||
| Property Management | 108.4 | 0.3 | 12.8 | 8.9 | 8.4 | 7.4 | 15.8 | 101.9 | 0.8 | 264.7 |
| Public Administration | 22.8 | 0.1 | 0.4 | 0.6 | 2.4 | 0.4 | 3.0 | 78.2 | 1.7 | 109.6 |
| Household mortgage | 243.0 | 3.9 | 18.2 | 11.5 | 25.1 | 79.1 | 2.0 | 382.8 | ||
| Other | 39.5 | 7.1 | 30.5 | 1.7 | 4.3 | 4.2 | 3.3 | 25.8 | 3.4 | 119.8 |
| Households | 282.5 | 7.1 | 34.4 | 1.7 | 22.5 | 15.7 | 28.4 | 104.9 | 5.4 | 502.6 |
| Credit portfolio | 952.7 | 49.2 | 127.1 | 48.4 | 55.1 | 48.2 | 91.0 | 461.5 | 99.3 | 1,932.5 |
* The geographical distribution is based on SEB's operations.
| SEB Group, 31 December 2008 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK bn | Sweden Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total | |
| Banks | 174.9 | 10.9 | 10.7 | 2.6 | 0.2 | 1.1 | 0.6 | 68.1 | 16.5 | 285.6 |
| Finance and insurance | 55.9 | 2.1 | 1.5 | 1.7 | 0.2 | 1.2 | 0.5 | 16.0 | 14.1 | 93.2 |
| Wholesale and retail | 32.8 | 1.4 | 1.6 | 0.5 | 5.2 | 7.2 | 14.2 | 17.1 | 6.7 | 86.7 |
| Transportation | 21.9 | 1.9 | 3.5 | 0.6 | 2.0 | 2.8 | 6.7 | 3.0 | 0.4 | 42.8 |
| Shipping | 10.7 | 2.3 | 10.6 | 0.1 | 1.1 | 0.3 | 0.4 | 0.0 | 12.7 | 38.2 |
| Business and household services | 81.5 | 1.4 | 13.1 | 3.3 | 3.0 | 2.4 | 4.4 | 36.1 | 3.4 | 148.6 |
| Construction | 8.4 | 0.1 | 0.7 | 0.5 | 2.0 | 2.9 | 3.3 | 4.1 | 0.4 | 22.4 |
| Manufacturing | 117.6 | 5.4 | 10.7 | 16.1 | 5.2 | 3.7 | 12.4 | 31.8 | 18.0 | 220.9 |
| Agriculture, forestry and fishing | 3.9 | 0.4 | 0.0 | 0.0 | 1.5 | 2.7 | 0.9 | 0.2 | 0.1 | 9.7 |
| Mining and quarrying | 6.6 | 1.1 | 10.4 | 0.2 | 0.0 | 0.1 | 0.1 | 0.7 | 0.8 | 20.0 |
| Electricity, gas and water supply | 21.2 | 1.4 | 2.9 | 10.3 | 2.2 | 1.4 | 2.8 | 6.0 | 0.6 | 48.8 |
| Other | 30.9 | 1.1 | 3.7 | 0.3 | 0.4 | 0.6 | 0.7 | 5.3 | 7.4 | 50.4 |
| Corporates | 391.4 | 18.6 | 58.7 | 33.6 | 22.8 | 25.3 | 46.4 | 120.3 | 64.6 | 781.7 |
| Commercial | 46.6 | 0.3 | 11.9 | 8.9 | 8.5 | 4.6 | 16.1 | 71.7 | 0.8 | 169.4 |
| Multi-family | 58.4 | 0.0 | 0.0 | 0.0 | 0.0 | 2.5 | 0.0 | 32.0 | 0.0 | 92.9 |
| Property Management | 105.0 | 0.3 | 11.9 | 8.9 | 8.5 | 7.1 | 16.1 | 103.7 | 0.8 | 262.3 |
| Public Administration | 31.7 | 0.1 | 0.3 | 0.4 | 2.4 | 0.4 | 3.2 | 78.9 | 1.5 | 118.9 |
| Household mortgage | 230.3 | 0.0 | 3.7 | 0.0 | 18.3 | 11.7 | 25.5 | 79.4 | 1.8 | 370.7 |
| Other | 38.8 | 6.9 | 27.5 | 1.7 | 4.4 | 4.3 | 3.4 | 25.0 | 3.0 | 115.0 |
| Households | 269.1 | 6.9 | 31.2 | 1.7 | 22.7 | 16.0 | 28.9 | 104.4 | 4.8 | 485.7 |
| Credit portfolio | 972.1 | 36.8 | 112.8 | 47.2 | 56.6 | 49.9 | 95.2 | 475.4 | 88.2 | 1,934.2 |
* The geographical distribution is based on SEB's operations.
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Appendix 3a Capital base of the SEB financial group of undertakings
| 31 Mar | 31 Dec | |
|---|---|---|
| SEKm | 2009 | 2008 |
| Total equity according to balance sheet (1) | 98,744 | 83,729 |
| ./. Dividend (excl repurchased shares) | 0 | 0 |
| ./. Investments outside the financial group of undertakings (2) | -76 | -76 |
| ./. Other deductions outside the financial group of undertakings (3) | -3,600 | -2,878 |
| = Total equity in the capital adequacy | 95,068 | 80,775 |
| Adjustment for hedge contracts (4) | -1,326 | -1,395 |
| Net provisioning amount for IRB-reported credit exposures (5) | -527 | -1,133 |
| Unrealised value changes on available-for-sale financial assets (6) | 3,215 | 3,062 |
| ./. Exposures where RWA is not calculated (7) | -630 | 0 |
| ./. Goodwill (8) | -6,949 | -7,305 |
| ./. Other intangible assets | -2,308 | -2,090 |
| ./. Deferred tax assets | -1,509 | -1,822 |
| = Core Tier I capital | 85,034 | 70,092 |
| Tier I capital contribution | 14,530 | 12,371 |
| = Tier I capital | 99,564 | 82,463 |
| Dated subordinated debt | 20,017 | 21,552 |
| ./. Deduction for remaining maturity | -735 | -2,242 |
| Perpetual subordinated debt | 12,408 | 14,421 |
| Net provisioning amount for IRB-reported credit exposures (5) | -527 | -1,133 |
| Unrealised gains on available-for-sale financial assets (6) | 354 | 1,221 |
| ./. Exposures where RWA is not calculated (7) | -630 | 0 |
| ./. Investments outside the financial group of undertakings (2) | -76 | -76 |
| = Tier II capital | 30,811 | 33,743 |
| ./. Investments in insurance companies (9) | -10,620 | -10,620 |
| ./. Pension assets in excess of related liabilities (10) | -1,396 | -863 |
| = Capital base | 118,359 | 104,723 |
To note:
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Appendix 3b Capital requirements for the SEB financial group of undertakings
| Capital requirements | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEKm | 2009 | 2008 | |
| Credit risk, IRB reported capital requirements | |||
| Institutions | 4,834 | 4,472 | |
| Corporates (1) | 38,808 | 37,158 | |
| Securitisation positions | 600 | 572 | |
| Retail mortgages | 4,675 | 4,627 | |
| Other retail exposures (2) | 964 | 385 | |
| Other exposure classes | 163 | 174 | |
| Total for credit risk, IRB approach | 50,044 | 47,388 | |
| Further capital requirements | |||
| Credit risk, Standardised approach (3) | 9,997 | 11,610 | |
| Operational risk, Advanced Measurement approach | 3,099 | 3,080 | |
| Foreign exchange rate risk | 578 | 570 | |
| Trading book risks | 2,695 | 2,775 | |
| Total | 66,413 | 65,423 | |
| Summary | |||
| Credit risk | 60,041 | 58,998 | |
| Operational risk | 3,099 | 3,080 | |
| Market risk | 3,273 | 3,345 | |
| Total | 66,413 | 65,423 | |
| Adjustment for flooring rules | |||
| Additional requirement according to transitional flooring (4) | 5,319 | 13,460 | |
| Total reported | 71,732 | 78,883 |
To note:
`çêéçê~íÉ=ÉñéçëìêÉë=ENF=ÉñÅäìÇÉ=ëìÅÜ=ëã~ää=Åçãé ïÜÉêÉ=íÜÉ=íçí~ä=ÉñéçëìêÉ=ÇçÉë=å ~åáÉë= çí=ÉñÅÉÉÇ=ÅÉêí~áå= êÉÖ ìä~íçêóJÇÉÑáåÉÇ=íÜêÉëÜçäÇëK=
ë= Ñ= U=~åÇ= êÉÑÉêêÉÇ=íç=íÜÉ="çíÜÉê=ÉñéçëìêÉ=Åä~ëëÉëÒ= Å~íÉÖçêóK= cêçã=íÜÉ=Ñáêëí=èì~êíÉê=OMMV=~=ä~êÖÉ=ëÜ~êÉ=çÑ=íÜÉ=dêçìéÛ êÉí~áä=ÉñéçëìêÉë=EçíÜÉê=íÜ~å=ãçêíÖ~ÖÉëF=~êÉ=fo_=êÉéçêíÉÇ= EOFK=qÜáë=ã~áåäó=êÉÑÉêë=íç=éêáî~íÉ=áåÇáîáÇì~äë=áå=pïÉÇÉåI= Äìí=ëçãÉ=ëã~ääJÉåíÉêéêáëÉ=äÉåÇáåÖ=áë=~äëç=áåÅäìÇÉÇK=m~êíë=ç íÜáë=éçêíÑçäáç=ïÉêÉ=fo_=êÉéçêíÉÇ=~äêÉ~Çó=ÇìêáåÖ=OMM ïÉêÉ=íÜÉå=
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É= çå= EQF=áë=ã~ÇÉ=áå=ÅçåëÉèìÉåÅÉ=ïáíÜ=íÜáë=íê~åëáíáçå~ä=êìäÉK= aìêáåÖ=óÉ~êë=OMMTLOMMULOMMV=áåëíáíìíáçåë=ëÜçìäÇ=Ü~î ~=Å~éáí~ä=Ä~ëÉ=åçí=ÄÉäçï=VRLVMLUM=éÉê=ÅÉåí=çÑ=íÜÉ=Å~éáí~ä= êÉèìáêÉãÉåí=~ÅÅçêÇáåÖ=íç=_~ëÉä=f=êÉÖìä~íáçåK=qÜÉ=~ÇÇáíá
Appendix 3c Capital adequacy analysis
Representing 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 Tier I 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 Mar | 31 Dec | |
|---|---|---|
| Capital adequacy | 2009 | 2008 |
| Capital resources | ||
| Core Tier I capital | 85,034 | 70,092 |
| Tier I capital | 99,564 | 82,463 |
| Capital base | 118,359 | 104,723 |
| Capital adequacy without transitional floor (Basel II) | ||
| Capital requirement | 66,413 | 65,423 |
| Expressed as Risk weighted assets | 830,159 | 817,789 |
| Core Tier I capital ratio | 10.2% | 8.6% |
| Tier I capital ratio | 12.0% | 10.1% |
| Total capital ratio | 14.3% | 12.8% |
| Capital adequacy quotient (capital base / capital requirement) | 1.78 | 1.60 |
| Capital adequacy as officially reported with transitional rules (Basel II) | ||
| Transition floor applied | 80% | 90% |
| Capital requirement | 71,732 | 78,883 |
| Expressed as Risk weighted assets | 896,654 | 986,034 |
| Core Tier I capital ratio | 9.5% | 7.1% |
| Tier I capital ratio | 11.1% | 8.4% |
| Total capital ratio | 13.2% | 10.6% |
| Capital adequacy quotient (capital base / capital requirement) | 1.65 | 1.33 |
| Capital adequacy with risk weighting according to Basel I | ||
| Capital requirement | 90,984 | 90,164 |
| Expressed as Risk weighted assets | 1,137,300 | 1,127,054 |
| Core Tier I capital ratio | 7.5% | 6.2% |
| Tier I capital ratio | 8.8% | 7.3% |
| Total capital ratio | 10.4% | 9.3% |
| Capital adequacy quotient (capital base / capital requirement) | 1.30 | 1.16 |
Overall Basel I RWA increased with 1 per cent over the quarter while Basel II RWA (before the effect of regulatory floors) increased with 1.5 per cent or SEK 12bn: Risk class migration is discussed below; lending volumes decreased slightly in nominal currencies; the weakening of the Swedish krona caused an increase of 12bn; the IRB roll-out of further Retail exposures lowered RWA with some 8bn as compared to earlier Standardised reporting.
Considering also the lowering of the regulatory floor from 90 per cent of Basel I (2008) to 80 per cent (2009), reported RWA decreased from SEK 986bn to SEK 897bn over the quarter.
The above means that un-floored Basel II RWA was 27 per cent lower than Basel I RWA. SEB uses a gradual roll-out of the Basel II framework; the ultimate target is to use IRB reporting for all credit exposures except those to central governments, central banks and local governments and authorities, and excluding a small number of insignificant portfolios. The current best estimate indicates that this would mean a reduction in total RWA (compared with Basel I, and as a business cycle average) of 35 per cent. This cannot be equated with a similar capital release, however, due to the new framework's increased business cycle sensitivity, supervisory evaluation and rating agency considerations.
Appendix 3 c continued
qÜÉ=ÑçääçïáåÖ=í~ÄäÉ=ÉñéçëÉë=~îÉê~ÖÉ=êáëâ=ïÉáÖÜíë=Eot^=ÇáîáÇÉÇ=Äó=b^aI=bñéçëìêÉ=^í=aÉÑ~ìäíF=Ñçê=ÉñéçëìêÉë=ïÜÉêÉ=ot^=áë= Å~äÅìä~íÉÇ=ÑçääçïáåÖ=íÜÉ=fo_=~ééêç~ÅÜK=oÉéçJëíóäÉ=íê~åë~Åíáçåë=~êÉ=ÉñÅäìÇÉÇ=Ñêçã=íÜÉ=~å~äóëáë=ëáåÅÉ=íÜÉó=Å~êêó=äçï=êáëâ=ïÉáÖÜí= ~åÇ=Å~å=î~êó=ÅçåëáÇÉê~Ääó=áå=îçäìãÉI=íÜìë=ã~âáåÖ=åìãÄÉêë=äÉëë=Åçãé~ê~ÄäÉK==
| IRB reported credit exposures (less repos and securites lending) | 31 Mar | 31 Dec |
|---|---|---|
| Average risk weight | 2009 | 2008 |
| Institutions | 17.3% | 17.0% |
| Corporates | 59.3% | 57.3% |
| Securitisation positions | 12.2% | 10.6% |
| Retail mortgages | 16.3% | 16.5% |
| Other retail exposures | 39.9% | n/a |
açïåï~êÇ=Äá~ë=áå=áåíÉêå~ä=êáëâ=Åä~ëë=ãáÖê~íáçå=áåÅêÉ~ëÉÇ=ot^=Ñçê=áåíÉêÄ~åâ=~åÇ=Åçêéçê~íÉ=ÉñéçëìêÉë=ïáíÜ=ëçãÉ= pbh=OMÄåI=Éñéä~áåáåÖ=ãçëí=çÑ= íÜÉ=áåÅêÉ~ëÉ=áå=~îÉê~ÖÉ=êáëâ=ïÉáÖÜí= Ñçê= íÜÉëÉ=éçêíÑçäáçëK=qÜÉ=ÜáÖÜÉê=êáëâ=ïÉáÖÜí= Ñçê= ëÉÅìêáíáë~íáçå=éçëáíáçåë= Eã~áåäó=ëíêìÅíìêÉÇ=ÅêÉÇáíë=áëëìÉÇ= Ñêçã=çíÜÉê=Ä~åâëF=êÉÑäÉÅíë=ÇçïåJÖê~ÇÉ=çÑ=ëçãÉ=ÉñíÉêå~ä= ê~íáåÖëK=
Appendix 4 Market risk
qÜÉ=dêçìéÛë=êáëâ=í~âáåÖ=áå=íê~ÇáåÖ=çéÉê~íáçåë=áë=éêáã~êáäó= ãÉ~ëìêÉÇ=Äó=î~äìÉ=~í=êáëâI=s~oK=qÜÉ=dêçìé=Ü~ë=ÅÜçëÉå=~= äÉîÉä=çÑ=VV=éÉê=ÅÉåí=éêçÄ~Äáäáíó=~åÇ=~=íÉåJÇ~ó=íáãÉJÜçêáòçå= Ñçê=êÉéçêíáåÖK=få=íÜÉ=Ç~óJíçJÇ~ó=êáëâ=ã~å~ÖÉãÉåí=çÑ íê~ÇáåÖ=éçëáíáçåëI=pb_=Ñçääçïë=ìé=äáãáíë=ïáíÜ=~=çåÉJÇ~ó= íáãÉ=ÜçêáòçåK==
qÜÉ=í~ÄäÉ=ÄÉäçï=ëÜçïë=íÜÉ=êáëâ=ÉñéçëìêÉë=Äó=êáëâ=íóéÉK=
^=ÇÉÅêÉ~ëÉ=áå=íÜÉ=çîÉê~ää=êáëâ=äÉîÉä=Å~å=ÄÉ=ëÉÉåI=~ë=~= ÅçåëÉèìÉåÅÉ=çÑ=~=ÅÉêí~áå=ã~êâÉí=åçêã~äáë~íáçå=Åçãé~êÉÇ= íç=íÜÉ=ä~ëí=èì~êíÉê=çÑ=OMMUK=eçïÉîÉêI=îçä~íáäáíáÉë=áå=íÜÉ= ÅìêêÉåÅó=ã~êâÉíë=êÉã~áåÉÇ=çå=ÜáÖÜ=äÉîÉäëI=ïÜáÅÜ=äÉÇ=íç=~å= áåÅêÉ~ëÉ=áå=cu=s~o=Ó=ÜçïÉîÉê=ëíáää=ïÉää=ïáíÜáå=ÇÉÅáÇÉÇ= äáãáíëK=
| Value at Risk (99 per cent, ten days) | |||||
|---|---|---|---|---|---|
| SEKm | Min | Max | 31 Mar 2009 | Average 2009 | Average 2008 |
| Interest rate risk | 81 | 197 | 112 | 116 | 145 |
| Foreign exchange rate risk | 17 | 120 | 29 | 46 | 34 |
| Equity price risk | 13 | 80 | 56 | 28 | 75 |
| Diversification | -47 | -61 | -103 | ||
| Total | 87 | 211 | 150 | 129 | 151 |
K
Appendix 5 Profit and loss accounts by division, business area and quarter
The SEB Group
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income Net fee and commission income |
4,223 3,801 |
4,421 3,909 |
4,553 3,754 |
5,513 3,790 |
5,904 3,215 |
18,710 15,254 |
| Net financial income | -161 | 1,161 | 247 | 1,723 | 1,133 | 2,970 |
| Net life insurance income | 713 | 642 | 504 | 516 | 862 | 2,375 |
| Net other income | 222 | 266 | 154 | 1,153 | 316 | 1,795 |
| Total operating income | 8,798 | 10,399 | 9,212 | 12,695 | 11,430 | 41,104 |
| Staff costs | -3,899 | -3,993 | -3,752 | -4,597 | -4,391 | -16,241 |
| Other expenses | -1,756 | -2,098 | -1,820 | -1,968 | -1,838 | -7,642 |
| Depreciation of assets | -372 | -354 | -398 | -400 | -1,015 | -1,524 |
| Total operating expenses | -6,027 | -6,445 | -5,970 | -6,965 | -7,244 | -25,407 |
| Profit before credit losses etc | 2,771 | 3,954 | 3,242 | 5,730 | 4,186 | 15,697 |
| Gains less losses from assets | 3 | 1 | 1 | 2 | 5 | |
| Net credit losses | -364 | -448 | -716 | -1,703 | -2,386 | -3,231 |
| Operating profit | 2,410 | 3,507 | 2,526 | 4,028 | 1,802 | 12,471 |
| Income tax expense | -562 | -699 | -641 | -519 | -781 | -2,421 |
| Net profit continued operations | 1,848 | 2,808 | 1,885 | 3,509 | 1,021 | 10,050 |
| Discontinued operations | 1 | 1 | -2 | 6 | ||
| Net profit | 1,848 | 2,809 | 1,886 | 3,507 | 1,027 | 10,050 |
| Attributable to minority interests | 1 | 3 | 4 | 1 | 2 | 9 |
| Attributable to equity holders | 1,847 | 2,806 | 1,882 | 3,506 | 1,025 | 10,041 |
Merchant Banking
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 1,525 | 1,538 | 1,738 | 2,613 | 2,919 | 7,414 |
| Net fee and commission income | 1,241 | 1,470 | 1,374 | 1,163 | 1,172 | 5,248 |
| Net financial income | 119 | 936 | 757 | 1,813 | 1,186 | 3,625 |
| Net other income | 42 | 66 | 77 | 341 | 115 | 526 |
| Total operating income | 2,927 | 4,010 | 3,946 | 5,930 | 5,392 | 16,813 |
| Staff costs | -964 | -1,105 | -867 | -954 | -1,092 | -3,890 |
| Other expenses | -909 | -937 | -830 | -918 | -949 | -3,594 |
| Depreciation of assets | -22 | -21 | -22 | -30 | -25 | -95 |
| Total operating expenses | -1,895 | -2,063 | -1,719 | -1,902 | -2,066 | -7,579 |
| Profit before credit losses etc | 1,032 | 1,947 | 2,227 | 4,028 | 3,326 | 9,234 |
| Gains less losses from assets | 3 | 1 | 1 | 5 | ||
| Net credit losses | -27 | -21 | -249 | -592 | -279 | -889 |
| Operating profit | 1,008 | 1,926 | 1,979 | 3,437 | 3,047 | 8,350 |
Merchant Banking
Trading and Capital Markets
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 290 | 253 | 315 | 976 | 1,452 | 1,834 |
| Net fee and commission income | 528 | 782 | 594 | 372 | 354 | 2,276 |
| Net financial income | 80 | 889 | 873 | 2,003 | 1,319 | 3,845 |
| Net other income | 10 | 14 | 8 | -48 | 73 | -16 |
| Total operating income | 908 | 1,938 | 1,790 | 3,303 | 3,198 | 7,939 |
| Staff costs | -430 | -508 | -380 | -422 | -473 | -1,740 |
| Other expenses | -414 | -414 | -369 | -432 | -410 | -1,629 |
| Depreciation of assets | -6 | -7 | -8 | -10 | -8 | -31 |
| Total operating expenses | -850 | -929 | -757 | -864 | -891 | -3,400 |
| Profit before credit losses etc | 58 | 1,009 | 1,033 | 2,439 | 2,307 | 4,539 |
| Gains less losses from assets | -1 | -1 | ||||
| Net credit losses | -20 | -13 | -68 | -196 | -62 | -297 |
| Operating profit | 37 | 996 | 965 | 2,243 | 2,245 | 4,241 |
Merchant Banking
Corporate Banking
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 871 | 884 | 1,031 | 1,269 | 1,094 | 4,055 |
| Net fee and commission income | 316 | 279 | 395 | 402 | 397 | 1,392 |
| Net financial income | 22 | 29 | -126 | -207 | -140 | -282 |
| Net other income | 26 | 50 | 67 | 386 | 24 | 529 |
| Total operating income | 1,235 | 1,242 | 1,367 | 1,850 | 1,375 | 5,694 |
| Staff costs | -427 | -482 | -384 | -420 | -436 | -1,713 |
| Other expenses | -170 | -185 | -152 | -158 | -190 | -665 |
| Depreciation of assets | -13 | -13 | -13 | -16 | -12 | -55 |
| Total operating expenses | -610 | -680 | -549 | -594 | -638 | -2,433 |
| Profit before credit losses etc | 625 | 562 | 818 | 1,256 | 737 | 3,261 |
| Gains less losses from assets | 4 | 1 | 5 | |||
| Net credit losses | -7 | -8 | -174 | -396 | -167 | -585 |
| Operating profit | 622 | 554 | 645 | 860 | 570 | 2,681 |
Merchant Banking
Global Transaction Services
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 364 | 400 | 394 | 368 | 373 | 1,526 |
| Net fee and commission income | 397 | 409 | 384 | 389 | 421 | 1,579 |
| Net financial income | 17 | 18 | 10 | 18 | 7 | 63 |
| Net other income | 5 | 3 | 3 | 2 | 19 | 13 |
| Total operating income | 783 | 830 | 791 | 777 | 820 | 3,181 |
| Staff costs | -106 | -115 | -105 | -111 | -183 | -437 |
| Other expenses | -325 | -338 | -308 | -330 | -350 | -1,301 |
| Depreciation of assets | -3 | -1 | -2 | -2 | -5 | -8 |
| Total operating expenses | -434 | -454 | -415 | -443 | -538 | -1,746 |
| Profit before credit losses etc | 349 | 376 | 376 | 334 | 282 | 1,435 |
| Net credit losses | -7 | -50 | -7 | |||
| Operating profit | 349 | 376 | 369 | 334 | 232 | 1,428 |
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 2,545 | 2,588 | 2,748 | 2,845 | 2,651 | 10,726 |
| Net fee and commission income | 1,425 | 1,426 | 1,367 | 1,400 | 1,292 | 5,618 |
| Net financial income | 95 | 101 | 84 | 116 | 109 | 396 |
| Net other income | 21 | 86 | 26 | 89 | 35 | 222 |
| Total operating income | 4,086 | 4,201 | 4,225 | 4,450 | 4,087 | 16,962 |
| Staff costs | -1,136 | -1,149 | -1,129 | -1,143 | -1,284 | -4,557 |
| Other expenses | -1,314 | -1,359 | -1,336 | -1,480 | -1,408 | -5,489 |
| Depreciation of assets | -76 | -76 | -75 | -81 | -69 | -308 |
| Total operating expenses | -2,526 | -2,584 | -2,540 | -2,704 | -2,761 | -10,354 |
| Profit before credit losses etc | 1,560 | 1,617 | 1,685 | 1,746 | 1,326 | 6,608 |
| Gains less losses from assets | 2 | 2 | 2 | |||
| Net credit losses | -308 | -442 | -516 | -1,093 | -1,963 | -2,359 |
| Operating profit | 1,252 | 1,175 | 1,169 | 655 | -635 | 4,251 |
Retail Banking
Retail Sweden
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 1,085 | 1,135 | 1,233 | 1,273 | 1,235 | 4,726 |
| Net fee and commission income | 393 | 364 | 349 | 384 | 369 | 1,490 |
| Net financial income | 58 | 69 | 49 | 74 | 72 | 250 |
| Net other income | 10 | -1 | 5 | 4 | 5 | 18 |
| Total operating income | 1,546 | 1,567 | 1,636 | 1,735 | 1,681 | 6,484 |
| Staff costs | -449 | -447 | -443 | -435 | -488 | -1,774 |
| Other expenses | -511 | -537 | -494 | -565 | -487 | -2,107 |
| Depreciation of assets | -3 | -4 | -11 | -17 | -9 | -35 |
| Total operating expenses | -963 | -988 | -948 | -1,017 | -984 | -3,916 |
| Profit before credit losses etc | 583 | 579 | 688 | 718 | 697 | 2,568 |
| Gains less losses from assets | ||||||
| Net credit losses | -9 | -23 | -53 | -105 | -95 | -190 |
| Operating profit | 574 | 556 | 635 | 613 | 602 | 2,378 |
Retail Estonia
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 209 | 222 | 248 | 253 | 250 | 932 |
| Net fee and commission income | 83 | 87 | 76 | 72 | 76 | 318 |
| Net financial income | 8 | 8 | 9 | 13 | 9 | 38 |
| Net other income | 3 | 62 | 2 | 21 | 6 | 88 |
| Total operating income | 303 | 379 | 335 | 359 | 341 | 1,376 |
| Staff costs | -54 | -50 | -53 | -53 | -59 | -210 |
| Other expenses | -73 | -91 | -80 | -89 | -97 | -333 |
| Depreciation of assets | -5 | -5 | -5 | -5 | -5 | -20 |
| Total operating expenses | -132 | -146 | -138 | -147 | -161 | -563 |
| Profit before credit losses etc | 171 | 233 | 197 | 212 | 180 | 813 |
| Gains less losses from assets | ||||||
| Net credit losses | -166 | -202 | -60 | -78 | -232 | -506 |
| Operating profit | 5 | 31 | 137 | 134 | -52 | 307 |
Retail Banking
Retail Latvia
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 272 | 239 | 239 | 267 | 239 | 1,017 |
| Net fee and commission income | 43 | 48 | 48 | 58 | 55 | 197 |
| Net financial income | 9 | 7 | 10 | 12 | 11 | 38 |
| Net other income | 2 | 6 | -1 | 8 | ||
| Total operating income | 324 | 296 | 297 | 343 | 304 | 1,260 |
| Staff costs | -49 | -54 | -46 | -56 | -61 | -205 |
| Other expenses | -91 | -100 | -92 | -94 | -108 | -377 |
| Depreciation of assets | -8 | -8 | -8 | -9 | -10 | -33 |
| Total operating expenses | -148 | -162 | -146 | -159 | -179 | -615 |
| Profit before credit losses etc | 176 | 134 | 151 | 184 | 125 | 645 |
| Gains less losses from assets | ||||||
| Net credit losses | -37 | -46 | -159 | -250 | -684 | -492 |
| Operating profit | 139 | 88 | -8 | -66 | -559 | 153 |
Retail Lithuania
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 410 | 378 | 397 | 396 | 280 | 1,581 |
| Net fee and commission income | 90 | 108 | 108 | 105 | 103 | 411 |
| Net financial income | 17 | 16 | 19 | 20 | 17 | 72 |
| Net other income | 5 | 6 | 10 | 13 | 8 | 34 |
| Total operating income | 522 | 508 | 534 | 534 | 408 | 2,098 |
| Staff costs | -78 | -86 | -88 | -61 | -95 | -313 |
| Other expenses | -112 | -119 | -125 | -141 | -124 | -497 |
| Depreciation of assets | -8 | -8 | -8 | -9 | -10 | -33 |
| Total operating expenses | -198 | -213 | -221 | -211 | -229 | -843 |
| Profit before credit losses etc | 324 | 295 | 313 | 323 | 179 | 1,255 |
| Gains less losses from assets | 2 | |||||
| Net credit losses | -17 | -35 | -134 | -524 | -786 | -710 |
| Operating profit | 307 | 260 | 179 | -201 | -605 | 545 |
Retail Banking
Retail Germany
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 480 | 469 | 500 | 514 | 426 | 1,963 |
| Net fee and commission income | 340 | 307 | 313 | 270 | 267 | 1,230 |
| Net financial income | 3 | 1 | -3 | -3 | -2 | |
| Net other income | 1 | 12 | 11 | 35 | 3 | 59 |
| Total operating income | 824 | 789 | 821 | 816 | 696 | 3,250 |
| Staff costs | -327 | -326 | -329 | -351 | -394 | -1,333 |
| Other expenses | -390 | -363 | -397 | -431 | -435 | -1,581 |
| Depreciation of assets | -42 | -41 | -32 | -31 | -24 | -146 |
| Total operating expenses | -759 | -730 | -758 | -813 | -853 | -3,060 |
| Profit before credit losses etc | 65 | 59 | 63 | 3 | -157 | 190 |
| Gains less losses from assets | 2 | 2 | ||||
| Net credit losses | -27 | -23 | -17 | 9 | -55 | -58 |
| Operating profit | 38 | 36 | 46 | 14 | -212 | 134 |
Cards
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 90 | 142 | 132 | 141 | 220 | 505 |
| Net fee and commission income | 469 | 508 | 468 | 510 | 415 | 1,955 |
| Net other income | 8 | 13 | 4 | 13 | 21 | 38 |
| Total operating income | 567 | 663 | 604 | 664 | 656 | 2,498 |
| Staff costs | -179 | -187 | -170 | -187 | -187 | -723 |
| Other expenses | -138 | -150 | -150 | -162 | -157 | -600 |
| Depreciation of assets | -10 | -10 | -10 | -10 | -11 | -40 |
| Total operating expenses | -327 | -347 | -330 | -359 | -355 | -1,363 |
| Profit before credit losses etc | 240 | 316 | 274 | 305 | 301 | 1,135 |
| Gains less losses from assets | ||||||
| Net credit losses | -51 | -112 | -94 | -144 | -110 | -401 |
| Operating profit | 189 | 204 | 180 | 161 | 191 | 734 |
Wealth Management
| Total | ||||||
|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 248 | 205 | 242 | 220 | 198 | 915 |
| Net fee and commission income | 964 | 825 | 788 | 1,125 | 662 | 3,702 |
| Net financial income | 20 | 8 | 15 | 26 | 20 | 69 |
| Net other income | 9 | 26 | 3 | 11 | 1 | 49 |
| Total operating income | 1,241 | 1,064 | 1,048 | 1,382 | 881 | 4,735 |
| Staff costs | -387 | -369 | -334 | -351 | -344 | -1,441 |
| Other expenses | -293 | -276 | -254 | -331 | -292 | -1,154 |
| Depreciation of assets | -24 | -22 | -25 | -29 | -30 | -100 |
| Total operating expenses | -704 | -667 | -613 | -711 | -666 | -2,695 |
| Profit before credit losses etc | 537 | 397 | 435 | 671 | 215 | 2,040 |
| Gains less losses from assets | ||||||
| Net credit losses | -25 | 22 | -15 | -8 | -18 | |
| Operating profit | 512 | 419 | 435 | 656 | 207 | 2,022 |
Wealth Management
Institutional Clients
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 56 | 62 | 65 | 54 | 23 | 237 |
| Net fee and commission income | 770 | 638 | 613 | 933 | 507 | 2,954 |
| Net financial income | 4 | -2 | 22 | 1 | 24 | |
| Net other income | 7 | -3 | 2 | 6 | ||
| Total operating income | 837 | 697 | 676 | 1,011 | 531 | 3,221 |
| Staff costs | -242 | -230 | -203 | -218 | -228 | -893 |
| Other expenses | -161 | -160 | -144 | -197 | -173 | -662 |
| Depreciation of assets | -17 | -16 | -18 | -22 | -23 | -73 |
| Total operating expenses | -420 | -406 | -365 | -437 | -424 | -1,628 |
| Profit before credit losses etc | 417 | 291 | 311 | 574 | 107 | 1,593 |
| Gains less losses from assets Net credit losses |
||||||
| Operating profit | 417 | 291 | 311 | 574 | 107 | 1,593 |
Wealth Management
Private Banking
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | 192 | 144 | 178 | 164 | 175 | 678 |
| Net fee and commission income | 193 | 186 | 177 | 191 | 154 | 747 |
| Net financial income | 16 | 8 | 16 | 5 | 19 | 45 |
| Net other income | 2 | 31 | 9 | 1 | 42 | |
| Total operating income | 403 | 369 | 371 | 369 | 349 | 1,512 |
| Staff costs | -144 | -139 | -132 | -132 | -116 | -547 |
| Other expenses | -132 | -117 | -108 | -133 | -119 | -490 |
| Depreciation of assets | -7 | -7 | -7 | -7 | -7 | -28 |
| Total operating expenses | -283 | -263 | -247 | -272 | -242 | -1,065 |
| Profit before credit losses etc | 120 | 106 | 124 | 97 | 107 | 447 |
| Gains less losses from assets | ||||||
| Net credit losses | -25 | 22 | -15 | -7 | -18 | |
| Operating profit | 95 | 128 | 124 | 82 | 100 | 429 |
Life
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Net interest income | -16 | -13 | -3 | -4 | -10 | -36 |
| Net life insurance income | 954 | 883 | 720 | 739 | 1,043 | 3,296 |
| Net other income | ||||||
| Total operating income | 938 | 870 | 717 | 735 | 1,033 | 3,260 |
| Staff costs | -262 | -285 | -266 | -292 | -274 | -1,105 |
| Other expenses | -148 | -132 | -126 | -117 | -126 | -523 |
| Depreciation of assets | -160 | -145 | -149 | -115 | -165 | -569 |
| Total operating expenses | -570 | -562 | -541 | -524 | -565 | -2,197 |
| Profit before credit losses etc | 368 | 308 | 176 | 211 | 468 | 1,063 |
| Gains less losses from assets Net credit losses |
||||||
| Operating profit * | 368 | 308 | 176 | 211 | 468 | 1,063 |
| Change in surplus values | 250 | 227 | 132 | 380 | 111 | 989 |
| Business result | 618 | 535 | 308 | 591 | 579 | 2,052 |
* Consolidated in the Group accounts
Other and eliminations
| Total | ||||||
|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q1 | Full year | ||
| SEK m | 2008 | 2008 | 2008 Q 4 2008 | 2009 | 2008 | |
| Net interest income | -79 | 103 | -172 | -161 | 145 | -309 |
| Net fee and commission income | 171 | 188 | 225 | 102 | 88 | 686 |
| Net financial income | -395 | 116 | -609 | -232 | -182 | -1,120 |
| Net life insurance income | -241 | -241 | -216 | -223 | -181 | -921 |
| Net other income | 150 | 88 | 48 | 712 | 166 | 998 |
| Total operating income | -394 | 254 | -724 | 198 | 36 | -666 |
| Staff costs | -1,150 | -1,085 | -1,156 | -1,857 | -1,395 | -5,248 |
| Other expenses | 908 | 606 | 726 | 878 | 937 | 3,118 |
| Depreciation of assets | -90 | -90 | -127 | -145 | -726 | -452 |
| Total operating expenses | -332 | -569 | -557 | -1,124 | -1,184 | -2,582 |
| Profit before credit losses etc | -726 | -315 | -1,281 | -926 | -1,148 | -3,248 |
| Gains less losses from assets | 1 | -1 | -2 | -2 | ||
| Net credit losses | -4 | -7 | 49 | -3 | -137 | 35 |
| Operating profit | -730 | -321 | -1,233 | -931 | -1,285 | -3,215 |
The SEB Group
Net interest income
| Kv 1 | Kv 2 | Kv 3 | Kv 4 | Kv 1 | Helår | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Interest income | 24 091 | 23 965 | 24 069 | 25 156 | 19 966 | 97 281 |
| Interest expense | -19 868 | -19 544 | -19 516 | -19 643 | -14 062 | -78 571 |
| Net interest income | 4 223 | 4 421 | 4 553 | 5 513 | 5 904 | 18 710 |
The SEB Group
Net fee and commission income
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Issue of securities | 7 | 91 | 47 | 27 | 35 | 172 |
| Secondary market | 758 | 913 | 654 | 444 | 559 | 2 769 |
| Custody and mutual funds | 1 804 | 1 664 | 1 623 | 1 931 | 1 345 | 7 022 |
| Securities commissions | 2 569 | 2 668 | 2 324 | 2 402 | 1 939 | 9 963 |
| Payments | 439 | 464 | 447 | 494 | 457 | 1 844 |
| Card fees | 1 032 | 1 108 | 1 066 | 1 094 | 1 037 | 4 300 |
| Payment commissions | 1 471 | 1 572 | 1 513 | 1 588 | 1 494 | 6 144 |
| Advisory | 289 | 173 | 329 | 327 | 177 | 1 118 |
| Lending | 185 | 270 | 258 | 291 | 335 | 1 004 |
| Deposits | 23 | 24 | 25 | 26 | 28 | 98 |
| Guarantees | 67 | 71 | 78 | 85 | 95 | 301 |
| Derivatives | 113 | 116 | 175 | 197 | 159 | 601 |
| Other | 176 | 180 | 168 | 124 | 171 | 648 |
| Other commissions | 853 | 834 | 1 033 | 1 050 | 965 | 3 770 |
| Total commission income | 4 893 | 5 074 | 4 870 | 5 040 | 4 398 | 19 877 |
| Securities commissions | -241 | -275 | -226 | -228 | -233 | -970 |
| Payment commissions | -585 | -631 | -593 | -641 | -639 | -2 450 |
| Other commissions | -266 | -259 | -297 | -381 | -311 | -1 203 |
| Commission expense | -1 092 | -1 165 | -1 116 | -1 250 | -1 183 | -4 623 |
| Securities commissions | 2 328 | 2 393 | 2 098 | 2 174 | 1 706 | 8 993 |
| Payment commissions | 886 | 941 | 920 | 947 | 855 | 3 694 |
| Other commissions | 587 | 575 | 736 | 669 | 654 | 2 567 |
| Net fee and commission income | 3 801 | 3 909 | 3 754 | 3 790 | 3 215 | 15 254 |
The SEB Group
Net financial income
| Q 1 | Q 2 | Q 3 | Q 4 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Equity instruments and related derivatives | 171 | 306 | 489 | 449 | 95 | 1 415 |
| Debt instruments and related derivatives | -1 164 | 108 | -114 | 111 | 58 | -1 059 |
| Currency related | 832 | 747 | 270 | 1 227 | 1 041 | 3 076 |
| Other financial instruments | -9 | 21 | 3 | 12 | ||
| Impairments | -389 | -85 | -64 | -474 | ||
| Net financial income | -161 | 1 161 | 247 | 1 723 | 1 133 | 2 970 |
Appendix 6 Profit and loss accounts by geography and quarter
Sweden
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 5 096 | 4 850 | 5 144 | 7 417 | 5 663 | 22 507 |
| Total operating expenses | -3 384 | -3 643 | -3 276 | -3 372 | -4 447 | -13 675 |
| Profit before credit losses etc | 1 712 | 1 207 | 1 868 | 4 045 | 1 216 | 8 832 |
| Gains less losses from assets | ||||||
| Net credit losses | - 19 | - 38 | - 162 | - 269 | - 285 | - 488 |
| Operating profit | 1 693 | 1 169 | 1 706 | 3 776 | 931 | 8 344 |
Write-down of goodwill for holdings in Ukraine effect operating expenses and profit with SEK 0,6 bn in Q1 2009. Centralisation of CPM portfolios from US to Sweden effects operating income and profit with SEK 1,8 bn in Q4 2008.
Norway
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 560 | 729 | 624 | 989 | 937 | 2 902 |
| Total operating expenses | - 323 | - 390 | - 350 | - 401 | - 306 | -1 4 64 |
| Profit before credit losses etc | 237 | 339 | 274 | 588 | 631 | 1 438 |
| Gains less losses from assets | ||||||
| Net credit losses | - 60 | - 61 | - 39 | - 106 | - 72 | - 266 |
| Operating profit | 177 | 278 | 235 | 482 | 559 | 1 172 |
Denmark
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 604 | 492 | 521 | 615 | 801 | 2 232 |
| Total operating expenses | - 356 | - 385 | - 332 | - 334 | - 399 | -1 4 07 |
| Profit before credit losses etc | 248 | 107 | 189 | 281 | 402 | 825 |
| Gains less losses from assets | ||||||
| Net credit losses | - 23 | - 24 | - 30 | - 192 | - 45 | - 269 |
| Operating profit | 225 | 83 | 159 | 89 | 357 | 556 |
Finland
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 281 | 348 | 303 | 302 | 372 | 1 234 |
| Total operating expenses | - 152 | - 176 | - 161 | - 180 | - 99 | - 669 |
| Profit before credit losses etc | 129 | 172 | 142 | 122 | 273 | 565 |
| Gains less losses from assets | ||||||
| Net credit losses | - 2 | - 4 | - 2 | - 3 | - 12 | - 11 |
| Operating profit | 127 | 168 | 140 | 119 | 261 | 554 |
Germany
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 1 353 | 1 919 | 1 135 | 1 540 | 1 649 | 5 947 |
| Total operating expenses | -1 210 | -1 155 | -1 185 | -1 417 | -1 366 | -4 967 |
| Profit before credit losses etc | 143 | 764 | - 50 | 123 | 283 | 980 |
| Gains less losses from assets | 2 | 2 | 4 | |||
| Net credit losses | - 37 | - 29 | - 105 | - 59 | - 101 | - 230 |
| Operating profit | 108 | 735 | - 155 | 66 | 182 | 754 |
Estonia
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 328 | 503 | 399 | 301 | 370 | 1 531 |
| Total operating expenses | - 137 | - 215 | - 171 | - 192 | - 202 | - 7 15 |
| Profit before credit losses etc | 191 | 288 | 228 | 109 | 168 | 816 |
| Gains less losses from assets | ||||||
| Net credit losses | - 166 | - 202 | - 60 | - 79 | - 232 | - 507 |
| Operating profit | 25 | 86 | 168 | 30 | - 64 | 309 |
Latvia
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 409 | 388 | 392 | 443 | 467 | 1 632 |
| Total operating expenses | - 176 | - 187 | - 171 | - 200 | - 209 | - 7 34 |
| Profit before credit losses etc | 233 | 201 | 221 | 243 | 258 | 898 |
| Gains less losses from assets | ||||||
| Net credit losses | - 38 | - 47 | - 170 | - 252 | - 684 | - 507 |
| Operating profit | 195 | 154 | 51 | - 9 | - 426 | 391 |
Lithuania
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 597 | 631 | 657 | 595 | 545 | 2 480 |
| Total operating expenses | - 232 | - 264 | - 268 | - 266 | - 265 | -1 0 30 |
| Profit before credit losses etc | 365 | 367 | 389 | 329 | 280 | 1 450 |
| Gains less losses from assets | 1 | 2 | 1 | |||
| Net credit losses | - 17 | - 34 | - 137 | - 546 | - 786 | - 734 |
| Operating profit | 348 | 333 | 252 | - 216 | - 504 | 717 |
Other countries and eliminations
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | - 430 | 539 | 37 | 493 | 626 | 639 |
| Total operating expenses | - 57 | - 30 | - 56 | - 603 | 49 | - 746 |
| Profit before credit losses etc | - 487 | 509 | - 19 | - 110 | 675 | - 107 |
| Gains less losses from assets | 1 | 1 | - 2 | |||
| Net credit losses | - 2 | - 9 | - 11 | - 197 | - 169 | - 219 |
| Operating profit | - 488 | 501 | - 30 | - 309 | 506 | - 326 |
Centralisation of CPM portfolios from US to Sweden effects operating income and profit with SEK 1,8 bn in Q4 2008.
SEB Group Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | |
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 | 2008 | 2009 | 2008 |
| Total operating income | 8 798 | 10 399 | 9 212 | 12 695 | 11 430 | 41 104 |
| Total operating expenses | -6 027 | -6 445 | -5 970 | -6 965 | -7 244 | -25 407 |
| Profit before credit losses etc | 2 771 | 3 954 | 3 242 | 5 730 | 4 186 | 15 697 |
| Gains less losses from assets | 3 | 1 | 1 | 2 | 5 | |
| Net credit losses | - 364 | - 448 | - 716 | -1 703 | -2 386 | -3 231 |
| Operating profit | 2 410 | 3 507 | 2 526 | 4 028 | 1 802 | 12 471 |
Appendix 7 Skandinaviska Enskilda Banken (parent company)
Income statement – Skandinaviska Enskilda Banken
| In accordance with SFSA regulations | Q1 | Q4 | Jan - Mar | Full year | |||
|---|---|---|---|---|---|---|---|
| SEKm | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Interest income | 11 212 | 23 924 | -53 | 11 212 | 11 321 | -1 | 59 786 |
| Leasing income | 1 562 | 1 673 | -7 | 1 562 | 1 508 | 4 | 6 372 |
| Interest expense | -8 384 | -21 835 | -62 | -8 384 | -9 893 | -15 | -52 987 |
| Net interest income 1) | |||||||
| Dividends received | 39 | 462 | -92 | 39 | 13 | 200 | 2 715 |
| Commission income 2) | 1 744 | 1 964 | -11 | 1 744 | 1 850 | -6 | 7 473 |
| Commission costs 2) | - 382 | - 481 | -21 | - 382 | - 319 | 20 | -1 480 |
| Net commission income 2) | 1 362 | 1 483 | -8 | 1 362 | 1 531 | -11 | 5 993 |
| Net financial income 3) | 1 101 | 2 556 | -57 | 1 101 | 43 | 3 236 | |
| Other operating income | 370 | 2 145 | -83 | 370 | 253 | 46 | 2 935 |
| Total income | 7 262 | 10 408 | -30 | 7 262 | 4 776 | 52 | 28 050 |
| Staff costs | -2 375 | -2 602 | -9 | -2 375 | -2 332 | 2 | -9 274 |
| Other administrative and operating costs | - 978 | -1 114 | -12 | - 978 | -1 018 | -4 | -4 465 |
| Depreciation of assets | -1 239 | -1 286 | -4 | -1 239 | -1 143 | 8 | -4 820 |
| Total costs | -4 592 | -5 002 | -8 | -4 592 | -4 493 | 2 | -18 559 |
| Profit/loss from banking operations before | |||||||
| credit losses | 2 670 | 5 406 | -51 | 2 670 | 283 | 9 491 | |
| Net credit losses 4) | - 168 | - 564 | -70 | - 168 | - 5 | - 773 | |
| Change in value of seized assets | |||||||
| Impairment financial assets | - 636 | - 73 | - 636 | - 10 | - 121 | ||
| Operating profit | 1 866 | 4 769 | -61 | 1 866 | 268 | 8 597 | |
| Pension compensation | 98 | 128 | -23 | 98 | 99 | -1 | 434 |
| Profit before appropriation and tax | 1 964 | 4 897 | -60 | 1 964 | 367 | 9 031 | |
| Other appropriations | - 2 | -3 188 | -100 | - 2 | - 89 | -98 | -2 117 |
| Current tax | - 249 | 325 | -177 | - 249 | - 205 | 21 | - 4 |
| Deferred tax | - 247 | 1 304 | -119 | - 247 | 1 304 | ||
| Net profit | 1 466 | 3 338 | -56 | 1 466 | 73 | 8 214 |
1) Net interest income - Skandinaviska Enskilda Banken
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Interest income | 11 212 | 23 924 | - 53 | 11 212 | 11 321 | - 1 | 59 786 |
| Leasing income | 1 562 | 1 673 | - 7 | 1 562 | 1 508 | 4 | 6 372 |
| Interest costs | -8 384 | -21 835 | - 62 | -8 384 | -9 893 | - 15 | -52 987 |
| Leasing depreciation | -1 178 | -1 177 | 0 | -1 178 | -1 109 | 6 | -4 604 |
| Net interest income | 3 212 | 2 585 | 24 | 3 212 | 1 827 | 76 | 8 567 |
2) Net fee and commission income - Skandinaviska Enskilda Banken
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Securities commissions | 744 | 976 | - 24 | 744 | 1 048 | - 29 | 3 936 |
| Payment commissions | 325 | 359 | - 9 | 325 | 314 | 4 | 1 307 |
| Other commissions | 675 | 628 | 7 | 675 | 488 | 38 | 2 229 |
| Commission income | 1 744 | 1 963 | - 11 | 1 744 | 1 850 | - 6 | 7 472 |
| Securities commissions | - 52 | - 67 | - 22 | - 52 | - 68 | - 24 | - 267 |
| Payment commissions | - 108 | - 162 | - 33 | - 108 | - 118 | - 8 | - 526 |
| Other commissions | - 222 | - 251 | - 12 | - 222 | - 133 | 67 | - 686 |
| Commission expense | - 382 | - 480 | - 20 | - 382 | - 319 | 20 | -1 479 |
| Securities commissions, net | 692 | 909 | - 24 | 692 | 980 | - 29 | 3 669 |
| Payment commissions, net | 217 | 197 | 10 | 217 | 196 | 11 | 781 |
| Other commissions, net | 453 | 377 | 20 | 453 | 355 | 28 | 1 543 |
| Net fee and commission income | 1 362 | 1 483 | - 8 | 1 362 | 1 531 | - 11 | 5 993 |
3) Net financial income - Skandinaviska Enskilda Banken
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Equity instruments and related derivatives | 8 | 365 | - 98 | 8 | 102 | - 92 | 1 002 |
| Debt instruments and related derivatives | 292 | 984 | - 70 | 292 | - 712 | - 141 | - 176 |
| Currency-related | 801 | 1 207 | - 34 | 801 | 653 | 23 | 2 410 |
| Net financial income | 1 101 | 2 556 | - 57 | 1 101 | 43 | 3 236 |
4) Net credit losses - Skandinaviska Enskilda Banken
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2009 | 2008 | % | 2009 | 2008 | % | 2008 |
| Provisions: | |||||||
| Net collective provisions for individually | |||||||
| assessed loans | 69 | - 354 | -119 | 69 | 11 | - 363 | |
| Net collective provisions for portfolio | |||||||
| assessed loans | - 9 | - 30 | -70 | - 9 | - 30 | ||
| Specific provisions | - 83 | - 173 | -52 | - 83 | - 12 | - 347 | |
| Reversal of specific provisions no longer | |||||||
| required | 18 | 19 | -5 | 18 | 3 | 39 | |
| Net provisions for contingent liabilities | - 151 | - 151 | |||||
| Net provisions | - 156 | - 538 | -71 | - 156 | 2 | - 701 | |
| Write-offs: | |||||||
| Total write-offs | - 31 | - 55 | -44 | - 31 | - 63 | -51 | - 192 |
| Reversal of specific provisions utilized for | |||||||
| write-offs | 3 | 5 | -40 | 3 | 47 | -94 | 70 |
| Write-offs not previously provided for | - 28 | - 50 | -44 | - 28 | - 16 | 75 | - 122 |
| Recovered from previous write-offs | 16 | 24 | -33 | 16 | 9 | 78 | 50 |
| Net write-offs | - 12 | - 26 | -54 | - 12 | - 7 | 71 | - 72 |
| Net credit losses | - 168 | - 564 | -70 | - 168 | - 5 | - 773 |
Balance sheet - Skandinaviska Enskilda Banken
| Condensed | 31 March | 31 December | 31 March |
|---|---|---|---|
| SEKm | 2008 | 2008 | 2008 |
| Cash and cash balances with central banks | 1 166 | 10 670 | 1 766 |
| Loans to credit institutions | 336 656 | 349 073 | 392 173 |
| Loans to the public | 789 242 | 768 737 | 652 313 |
| Financial assets at fair value | 392 651 | 386 802 | 416 537 |
| Available-for-sale financial assets | 22 402 | 26 897 | 85 120 |
| Held-to-maturity investments | 3 304 | 3 263 | 3 348 |
| Investments in associates | 1 058 | 1 011 | 1 106 |
| Shares in subsidiaries | 59 919 | 60 063 | 52 141 |
| Tangible and intangible assets | 41 575 | 41 412 | 35 687 |
| Other assets | 44 793 | 60 572 | 40 232 |
| Total assets | 1 692 766 | 1 708 500 | 1 680 423 |
| Deposits by credit institutions | 394 580 | 410 105 | 446 825 |
| Deposits and borrowing from the public | 469 714 | 453 697 | 433 298 |
| Debt securities | 380 795 | 394 246 | 390 066 |
| Financial liabilities at fair value | 255 661 | 279 512 | 243 391 |
| Other liabilities | 77 067 | 55 657 | 66 269 |
| Provisions | 808 | 789 | 267 |
| Subordinated liabilities | 49 132 | 50 199 | 42 170 |
| Untaxed reserves | 21 138 | 21 136 | 19 105 |
| Total equity | 43 871 | 43 159 | 39 032 |
| Total liabilities and shareholders' equity | 1 692 766 | 1 708 500 | 1 680 423 |
Memorandum items - Skandinaviska Enskilda Banken
| 31 March | 31 December | 31 March | |
|---|---|---|---|
| SEK m | 2008 | 2008 | 2008 |
| Collateral and comparable security pledged for own liabilities | 250 528 | 242 395 | 261 097 |
| Other pledged assets and comparable collateral | 52 107 | 37 737 | 115 685 |
| Contingent liabilities | 68 568 | 62 260 | 40 250 |
| Commitments | 283 389 | 261 252 | 308 578 |
Statement of changes in equity - Skandinaviska Enskilda Banken
| Translation | Available for-sale |
||||||
|---|---|---|---|---|---|---|---|
| Share | Restricted | Retained | of foreign | financial | Cash flow | ||
| SEKm | capital | reserves | earnings | operations | assets | hedges | Total |
| Jan-Mar 2009 Opening balance |
6 872 | 12 260 | 25 143 | - 268 | -2 585 | 1 737 | 43 159 |
| Net profit | 1 466 | 1 466 | |||||
| Net income recognised directly in equity | - 194 | - 255 | - 92 | - 541 | |||
| Total recognised income | 1 466 | - 194 | - 255 | - 92 | 925 | ||
| Group contributions net after tax | - 155 | - 155 | |||||
| Swap hedging of employee stock option programme Eliminations of repurchased shares for employee |
98 | 98 | |||||
| stock option programme* | 1 | 1 | |||||
| Other changes Closing balance |
6 872 | 12 260 | - 157 26 396 |
- 462 | -2 840 | 1 645 | - 157 43 871 |
| Jan-Dec 2008 | |||||||
| Opening balance | 6 872 | 12 260 | 21 091 | - 73 | - 408 | 190 | 39 932 |
| Net profit | 8 214 | 8 214 | |||||
| Net income recognised directly in equity | - 195 | -2 177 | 1 547 | - 825 | |||
| Total recognised income | 8 214 | - 195 | -2 177 | 1 547 | 7 389 | ||
| Dividend to shareholders | -4 451 | -4 451 | |||||
| Group contributions net after tax | 500 | 500 | |||||
| Swap hedging of employee stock option programme | 27 | 27 | |||||
| Eliminations of repurchased shares for employee | |||||||
| stock option programme* | 183 | 183 | |||||
| Other changes | - 421 | - 421 | |||||
| Closing balance | 6 872 | 12 260 | 25 143 | - 268 | -2 585 | 1 737 | 43 159 |
| Jan-Mar 2008 | |||||||
| Opening balance | 6 872 | 12 260 | 21 091 | - 73 | - 408 | 190 | 39 932 |
| Net profit | 73 | 73 | |||||
| Net income recognised directly in equity | 11 | -1 144 | - 87 | -1 220 | |||
| Total recognised income | 73 | 11 | -1 144 | - 87 | -1 147 | ||
| Group contributions net after tax | 161 | 161 | |||||
| Swap hedging of employee stock option programme | 54 | 54 | |||||
| Eliminations of repurchased shares for employee | |||||||
| stock option programme** | 114 | 114 | |||||
| Other changes | - 82 | - 82 | |||||
| Closing balance | 6 872 | 12 260 | 21 411 | - 62 | -1 552 | 103 | 39 032 |
* Includes changes in nominal amounts of equity swaps used for hedging of stock option programmes.
* As of 31 December 2008 SEB owned 2.2 million Class A shares for the employee stock option programme. The acquisition cost for these shares is deducted from shareholders' equity. During 2009 0.1 million net of these shares have been sold as employee stock options have been exercised. Thus, as of 31 March 2009 SEB owned 2.1 million Class A-shares with a market value of SEK 55m for hedging of the long-term incentive programmes. According to the Swedish Financial Supervisory Authority's regulations the parent company will recognise the rights issue in equity after it has been registered.
Cash flow analysis - Skandinaviska Enskilda Banken
| Jan - Mar | Full year | |||
|---|---|---|---|---|
| SEKm | 2009 | 2008 | % | 2008 |
| Cash flow, current operations | -28 013 | 45 044 | - 162 | -11 024 |
| Cash flow, investment activities | -2 558 | -1 327 | 93 | -8 881 |
| Cash flow, financing activities | 12 357 | 1 473 | 20 279 | |
| Cash flow | -18 214 | 45 190 | - 140 | 374 |
| Liquid funds at beginning of year | 140 141 | 139 767 | 0 | 139 767 |
| Cash flow | -18 214 | 45 190 | - 140 | 374 |
| Liquid funds at end of period1) | 121 927 | 184 957 | - 34 | 140 141 |
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 2009 | ||
|---|---|---|
| Derivatives with positive | Derivatives with negative | |
| Book value, SEK m | amounts | amounts |
| Interest-related | 134 170 | 116 722 |
| Currency-related | 86 874 | 83 451 |
| Equity-related | 2 441 | 341 |
| Other | 9 896 | 662 |
| Total | 233 381 | 201 176 |