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SEB — Interim / Quarterly Report 2008
Feb 5, 2009
2966_10-k_2009-02-05_e9ea78af-b46a-4fbd-a249-4e970678c0bc.pdf
Interim / Quarterly Report
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Annual Accounts 2008
STOCKHOLM 5 FEBRUARY 2009
2008 – operating profit SEK 12.5bn (17.0)
- Operating profit for 2008 amounted to SEK 12,471m (17,018), a decrease of 27 per cent compared with 2007. Net profit was SEK 10,050m (13,642).
- Operating income increased by 2 per cent. Net interest income rose by 17 per cent. Net fee and commission income decreased by 11 per cent.
- Operating expenses rose by 10 per cent. On a comparable basis the increase was 2 per cent.
- Loans to the public grew by SEK 229bn, 21 per cent, and deposits from the public by 90bn, 12 per cent.
- Provisions for credit losses were SEK 3,268m (1,016) and the credit loss level 0.30 per cent (0.11).
- Return on equity was 13.1 per cent (19.3) and earnings per share SEK 14.66 (19.97).
- In conjunction with other capital measures, the Board of Directors proposes no dividend (2007: 6.50).
- The Board has decided on a long-term Tier I capital ratio target of 10 per cent.
The fourth quarter – operating profit SEK 4.0bn (4.6)
- Operating profit amounted to SEK 4,028m (4,581), up by 59 per cent compared to the previous quarter and 12 per cent lower than the last quarter of 2007. Net profit was SEK 3,507m.
- Operating income was up by 38 per cent from the previous quarter and by 27 per cent from the last quarter of 2007. Net interest income grew by more than 20 per cent.
- Operating expenses increased by 17 per cent compared with both the previous quarter and the last quarter of 2007. On a comparable basis and including currency effects, costs were unchanged.
"In a year of unprecedented turbulence we have continued to generate income growth, reflecting a solid customer business. With the proposed capital measures to further strengthen our capital base, SEB is well equipped to meet the challenging macro-economic conditions."
Annika Falkengren
President's comment
The past year was a year of unprecedented financial turbulence on a global scale, exacerbated by the downward spiral of faltering confidence that followed on the Lehman Brothers' default in September. In this extremely difficult environment, SEB maintained income growth and reached an operating result of SEK 12.5bn.
The rapid development of events and increased uncertainty has created substantial challenges for the organisation. I am proud of the commitment of SEB's staff and the way in which we have interacted with our customers during a trying period.
A new financial landscape
A year ago there were still expectations that the world economy would be more resilient to a downturn, triggered by the U.S. sub-prime default. However, during 2008 the interdependencies of the financial system, and towards the real economy, became evident. Hopes of a decoupling scenario were put down.
The functioning of global credit markets has been severely impaired, the supply of credit has been reduced, funding costs have increased and asset prices have fallen significantly. These factors have put significant strain on the banking sector. Several major international banks have been rescued, in some cases through government interventions, resulting in a crisis of confidence among market participants and customers.
Despite massive efforts from central banks and governments to remedy the effects, the global economic outlook has turned into a prolonged recessionary mode. We are entering uncharted territories, where the divergence of opinion among experts on where the world economy is heading is unusually broad.
Northern Europe, SEB's core market, has also been affected. GDP-growth in the Nordic countries has come to a halt. In the Baltic countries, the macro-economic outlook markedly worsened towards the end of the year. Latvia was granted support of EUR 7.5bn in an IMF led bail-out. Our view is that there will be a protracted period of declining GDP in Estonia and Latvia, but also in Lithuania over the next few years. The austerity measures taken by the governments are necessary to address the imbalances.
Strong customer relations generated income growth
SEB's franchise is built on long-term customer relationships and product excellence. All through the turbulent year SEB's underlying business has been robust. In the fourth quarter, as the paralysis following the Lehman Brothers default eased somewhat, business activity was high overall. This was evident particularly within Merchant Banking, for example in areas such as foreign exchange, custody and cash management.
Within Retail Banking, income held up well, especially in Sweden. However, due to the sharply deteriorated
economic outlook, we have continued to increase provisions for credit losses in the Baltic countries. We also continue to proactively address asset quality through joint local and Group work-out teams.
In the long-term savings area business was affected by lower equity values, but activity remained high with net inflows into Wealth Management and higher premium income in the Life division compared to last year.
Capital measures to further enhance necessary buffers
SEB entered this downturn as a more integrated bank with a diversified business mix. Maintaining a robust capital adequacy well in excess of minimum levels has been a principal priority for SEB. Thus, more than SEK 27bn has been accumulated since 2005, excluding the proposed capital measures.
In the new financial landscape, it will be even more important for a financial partner to be strong. The market standard for what is considered an adequate capitalisation has been reset, not least in order to cater for the more subdued economic environment.
As a consequence, the long-term Tier 1 capital ratio target has been set at 10 per cent. With the proposed capital measures of SEK 19.5bn, increasing our Tier I capital from SEK 77bn to SEK 97bn, SEB expects to achieve a capital position of 12.1 per cent, which will be among the top of our Nordic peers. I am confident that this will give us the necessary buffer to cope with this severe downturn.
A robust platform and business model
Ahead of us lies a challenging economic environment, affecting the financial stability of both corporate customers and households. In this climate it is inevitable that also SEB will experience higher credit losses. We are prepared for more uncertain times.
SEB's strategy to reach leadership in terms of customer satisfaction and financial performance long-term remains. For the next few years it will imply increased efforts to enhance efficiency and to strengthen relationships even more with our existing customer base.
Fourth quarter isolated
SEB's operating profit for the fourth quarter was SEK 4,028m $(4,581)$ . In comparison with the previous quarter, operating profit improved by 59 per cent due to increased volumes and high activity levels. Net profit amounted to SEK 3,507m $(3,757)$ .
Income
Total operating income amounted to SEK 12,714m (10,035), up by 27 per cent from the last quarter of 2007 and 38 per cent higher than for the previous quarter. A weaker SEK affected income positively by SEK 420m.
Net interest income increased by 26 per cent compared with the corresponding quarter of 2007. This was an effect of a positive development of lending and deposit volumes in combination with higher net interest income on the bond investment portfolio due to the market turbulence. The net margin effect from loans and deposits in relation both to last year and to the previous quarter was limited.
Net fee and commission income decreased by 8 per cent compared with the fourth quarter of last year, due to lower securities commissions and revenues from IPO's and M&A. Compared with the previous quarter, commission income was up by 1 per cent.
Net financial income rose to SEK 1,723m (420), largely due to high volumes and a strong customer demand for SEB's foreign exchange business. Valuation losses from the fixed-income investment portfolio were SEK 187m (990).
Net life insurance income decreased to SEK 516m (766), as unit-linked values decreased, and SEK 218m were provided for potential future guarantees related to Nya Liv. In comparison with the previous quarter, insurance income increased by 2 per cent
Net other income at SEK 1,172m (345) included a capital gain of SEK 780m from the sales of NSCD (VPC).
Expenses
Total operating expenses amounted to SEK 6,965m (5,928). This was an increase of 17 per cent both compared with the corresponding period in 2007 and the previous quarter. On a comparable basis operating expenses were up by 2 per cent, i.e. excluding net effects from increased redundancy costs (SEK 686m, of which SEK 600m for the net reduction of 500 full time equivalents in 2009), pension provisions (SEK 110m), the net increased effects from acquisitions (SEK 74m) and investments in One IT Roadmap (SEK 16m). Negative effects due to the weaker Swedish krona added SEK 230m compared with the previous quarter. The provision for short-term incentive remuneration was up by 8 per cent from the previous quarter, but down 37 per cent compared with the last quarter of 2007.
Credit losses
Net credit losses increased to SEK 1,723m (313). Provisions for credit losses in the Baltic countries increased to SEK 898m (239) as the Bank continued to build reserves to meet the sharp economic downturn in Lithuania during the quarter and the continuous difficult economic environment in Latvia.
Provisions in Merchant Banking amounted to SEK 593m (69), of which 62 per cent represented collective provisioning. Provisions in the Card business were SEK 144m (49).
The full year 2008
SEB's operating profit for 2008 amounted to SEK 12,471m (17,018), a decrease of 27 per cent compared with 2007. Net profit decreased by 26 per cent, to SEK 10,050m (13,642).
Income
Total operating income increased to SEK 41,140m (40,440). A weaker SEK affected income positively by SEK 509m.
Net interest income improved by 17 per cent, to SEK 18,710m (15,998). Higher volumes contributed SEK 1,699m, or 60 per cent, of the increase; average deposit volumes grew by 9 per cent and average lending volumes to the public by 11 per cent compared with 2007. The net effect of lending and deposit margins was an increase of net interest income by SEK 217m. Falling interest rates during the last quarter of the year impacted deposit margins negatively, while lending margins increased. Customer-driven net interest income grew by 13 per cent compared with 2007. The lower short-term rates at the end of the year, higher resets of coupons on the bond investment portfolio and higher net interest on equity contributed positively to net interest income, by SEK 796m.
Net fee and commission income decreased by 11 per cent, to SEK 15,254m (17,051), mostly due to declining income from advisory services and securities transactions both within the retail and institutional business. Paymentrelated income increased. Performance fees related to the asset management business increased to SEK 655m (555).
Net financial income decreased to SEK 2,970m (3,239), due to lower income from capital market-related debt instruments, including a SEK 540m loss in connection with the bankruptcy of Lehman Brothers. Valuation losses on the fixed-income investment portfolio amounted to SEK 1.069m (1.769). Net financial income from SEB's foreign exchange business grew by 43 per cent, to SEK 3,086m, due to high customer activity.
Net life insurance income decreased by 19 per cent, to SEK 2,375m (2,933). Positive sales growth could not compensate for decreased unit-linked values and provisions for guarantees for Nya Liv. The provision is mainly market value-related and recoverable, if future investment returns are adequate to meet guaranteed bonus levels over time. 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 1,831m (1,219) due to capital gain of SEK 780m from the sale of NSCD (VPC), bringing the total 'one off' capital gain to SEK 839m (110) including the sale of PKK.
Expenses
Total operating expenses amounted to SEK 25,407m (23,194). On a comparable basis operating expenses were up by 2 per cent, i.e. excluding the net increased effects from redundancy costs (SEK 769m), pension provisions (SEK 374m), investments in One IT Roadmap (SEK 318m), and acquisitions (SEK 246m). If also the SEK 293m negative effect from the weaker Swedish krona is considered, operating expenses were flat compared with 2007. The cost-efficiency gains during 2008 amounted to SEK 483m, resulting in an accumulated gain of SEK 1,029m from the start of the cost-management programme in 2007.
Staff costs rose by 9 per cent, to SEK 16,241m (14,921). This was mainly due to salary adjustments, increased number of employees and higher pension costs, arising from falling return on plan assets and changed actuarial assumptions regarding longevity. Redundancy costs during the year amounted to SEK 1,050m (281), of which SEK 600m for the net reduction of 500 FTE's in 2009. The costs of SEK 71m for the long-term incentive programmes in 2007 turned into a gain of SEK 67m for 2008. Short-term incentive remuneration (including social benefit charges) was reduced by 30 per cent, to SEK 2,235m (3,172). The average number of full time equivalents increased by 1,785 to $21,291$ (19,506), of whom more than 1,000 following acquisitions consolidated during 2008.
Other expenses increased by 10 per cent, to SEK 7,642m $(6.919)$ , mostly due to higher IT costs including investments in One IT Roadmap and efficiency projects as well as costs for premises, following the divestment of SEB's office premises the Baltic countries at the end of 2007.
Credit losses
The Group's net credit losses, including changes in the value of assets taken over – in reality to a high degree provisions rather than losses - amounted to SEK 3,268m (1,016). The credit loss level rose to 0.30 per cent (0.11)
Provisions for credit losses in the Baltic countries increased to SEK 1,775m (354) as SEB continued to buildup collective reserves in Estonia, Latvia and Lithuania. The net credit loss level in the Baltic countries was 1.28 per cent $(0.43)$ .
Provisions in Merchant Banking were SEK 904m (326), including the provision for Lehman Brothers' bankruptcy filing of SEK 137m. Provisions in the Card business increased to SEK 401m (134).
Impaired loans increased during the year and at yearend they amounted to SEK 13,911m (8,391), corresponding to a level of impaired loans of net 0.35 per cent and gross 0.84 per cent. The total reserve ratio was 66 per cent (76). The level of impaired loans in the Baltic countries was net 1.33 per cent and gross 3.05 per cent.
Tax costs
Total tax amounted to SEK 2,421 (3,376). The relatively low total tax rate of 19.4 per cent was due to tax free capital gains and one-time effects following the reduced Swedish
corporate tax rate to 26.3 per cent from 28.0 per cent.
As a consequence, the Group's effective tax rate starting 2009 will be 0.8 percentage units lower. With respect to the mix of geographic profit contribution and capital gains, the expected tax rate for 2009 is 25 per cent.
Business volumes
The Group's balance sheet as per 31 December 2008 was SEK 2,511bn (2,344). Net of currency effects of SEK 209bn, the balance sheet decreased, to SEK 2,302bn. Lending to and deposits from the public increased by 21 and 12 per cent, respectively.
SEB's total credit exposure increased to SEK 1,934bn (1,552). Credit volumes continued to grow in the corporate sectors in the Nordic countries and in Germany, as did Swedish household lending. Annual credit growth, measured in local currencies, was -2, +5 and +7 per cent in Estonia, Latvia and Lithuania, respectively. These growth rates decreased during the year, especially in Lithuania.
As of 31 December 2008, assets under management amounted to SEK 1,201bn (1,370). Net inflow during the year was SEK 34bn (47), while the change in value was SEK -220bn (-177). (The acquisition of Key Asset Management contributed SEK 17bn.) SEB remained the market leader within net sales of mutual funds in Sweden, with SEK 6.5bn of net inflows during the year. Assets under custody amounted to SEK 3,891bn (5,314).
Fixed-income securities portfolios
As per 31 December, SEB held total net positions in fixedincome securities of SEK 355bn (331) for investment, treasury and client trading purposes. Holdings consist mainly of covered bonds, bonds issued by financial institutions and asset-backed securities.
The SEK 133bn investment portfolio of Merchant Banking remained negatively affected by the dislocations in the credit markets.
Following the reclassification of SEK 99bn of fixedincome securities to loans and receivables from 1 July 2008, the valuation losses in 2008 amounted to SEK 3,976m (2,467), of which SEK 1,069m (1,769) over income and SEK 2,907m (698) over equity. SEK 2,530m (1,682) of the markto-market loss referred to holdings in asset-backed securities and SEK 1,446m (785) to other financial instruments, mainly bonds issued by financial institutions. If the Group had not reclassified financial assets during the year, fair value losses amounting to SEK 1,623m and SEK 5,252m would have been recognised in profit and loss and in the revaluation reserve in equity, respectively.
Based on SEB's long-term investment view, risk management has been focused on limiting further income volatility. Thus, and including the reclassification within the portfolio, the Held-for-Trading holdings decreased to SEK 8bn (72) and the Available-for-Sale holdings to SEK 24bn (60), while securities classified as Loans and Receivables increased to SEK 101bn (0).
Under prevailing credit market conditions and government interventions, SEB views a default on the holdings in the investment portfolio as unlikely.
The holdings of asset-backed securities in the investment portfolio amounted to SEK 68bn (71); 93.0 per cent of these securities are AAA-rated and 1.7 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 vears. 67 per cent of the asset-backed exposures are related to the European markets, 35 per cent to the U.S. market while other markets make up 2 per cent.
The holdings of covered bonds and bonds issued by financial institutions in the investment portfolio amounted to SEK 65bn (60). 70 per cent of the holdings involve European institutions, 26 per cent U.S. institutions and 4 per cent Australian institutions.
Market risk
During 2008, the Group's Value at Risk in the trading operations averaged SEK 151m (92). This means that the Group, on average, with 99 per cent probability, should not expect to lose more than this amount during a ten-day period. The turbulence in the financial markets continued to cause high volatilities throughout the year. This explains the higher VaR level during 2008, even though underlying exposures were reduced.
Liquidity and funding
The funding markets, which were severely disrupted due to increased uncertainty among banks and investors in the third quarter, improved in the fourth quarter. With a deposit-to-loan ratio of 65 per cent and continued capacity to issue covered bonds, SEB has not restricted its lending. Furthermore, SEB has benefited from the close to SEK 160bn of funds with a maturity of more than one year raised during the year. SEB continued to maintain a large pool of eligible assets in excess of SEK 200bn.
At year-end 2008, the match-funding of net cash inflows and outflows was approximately 6-8 months, taking liquidity reserves into consideration.
Capital position
As per 31 December 2008, Basel II risk-weighted assets (RWA) amounted to SEK 818bn, which would represent a Tier I capital ratio of 10.1 per cent and a total capital ratio of 12.8 per cent without application of transition rules.
Adjusted for the supervisory transitional rules during the first Basel II years, SEB reports RWA of SEK 986bn $(842)$ , a Tier I capital ratio of 8.4 per cent $(8.6)$ and a total capital ratio of 10.6 per cent (11.0). The lowering in 2008 of Basel II implementation floors (from 95 to 90 per cent of previous requirements) is reflected in these ratios.
RWA calculated according to the previous (Basel I) regulation would give capital ratios of 7.3 and 9.3 per cent, respectively. Risk-weighted assets (Basel I) have grown by 26 per cent, SEK 235bn, since year-end. Currency effects
contributed SEK 80bn.
Appendix 3 exposes capital adequacy details.
New capital target
The Board has decided on a long-term Tier 1 capital ratio target of 10 per cent when the Basel II framework is applied without transition rules.
Risks and uncertainties
The macro-economic environment is the major driver of risk to the Group's earnings and financial stability. In particular, it affects the asset quality and thereby the credit risk of the Group (details on the credit portfolio are described in Appendix 2). 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 2007 (see pp 34-41 and Note 44).
A sharp reduction of economic growth and continued economic imbalances in the Baltic countries together with higher past due payments on loans during the year have emphasised the need for a continued proactive treatment of any arising asset quality problems and for monitoring further developments closely. In Lithuania, where the economic downturn started later, the situation deteriorated very fast towards the end of the year, leading to substantial increases of SEB's provisions.
The tight liquidity conditions in the credit and interbank markets prevailing since the summer of 2007, and accelerating during the autumn of 2008, put stable funding and liquidity management in focus. Liquidity injections by central banks globally have eased the pressure on banks but the funding markets are still not fully functioning, particularly not for long-term durations.
The general credit spread widening across all assets, which started mid-2007, continued and accelerated in the third quarter. Wider spreads have resulted in mark-tomarket losses on SEB's fixed-income securities portfolios (see under Fixed-income securities portfolios). Following the actions taken by governments and central banks around the world, the likelihood of achieving global financial stability has increased substantially, but further losses cannot be ruled out.
Rating
In December, Moody's changed its outlook from stable to negative, but affirmed SEB's long-term Aa2 rating. In October, Fitch Ratings affirmed its A+ rating for SEB, with maintained stable outlook. Furthermore, Standard & Poor's affirmed its long-term A+ rating for SEB, but changed its outlook to negative, primarily due to concerns regarding the Bank's Baltic operations. DBRS rates SEB's long-term
rating at AA (low) with a stable outlook. SEB has a longterm AA rating target.
Reclassification of securities portfolios
Following the amendments to IAS 39 and IFRS 7, endorsed by the EU in October 2008, SEB has used the possibility of reclassifications of financial instruments from 1 July, 2008 and reclassified SEK 99bn of its fixed-income securities portfolio as loans and receivables, from the total of its net position in fixed income securities of SEK 355bn. The reclassification included SEK 13bn of assets held-fortrading and SEK 86bn of assets in the available-for-sale category.
SEB has decided to reclassify SEK 52 bn of its fixedincome securities as loans and receivables as of 1 January 2009. The reclassification includes SEK 3bn of assets heldfor-trading and SEK 49bn 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.
Dividend
In order to further improve SEB's capital position the Board proposes that no dividend shall be paid for 2008. The proposal should be seen together with the proposed capital measures as announced on 5 February, 2009.
Stockholm, 5 February 2009
Annika Falkengren President and Chief Executive Officer These Annual Accounts have been prepared in accordance with International Financial Reporting Standards IFRS/IAS, endorsed by the European Commission, and therefore complies with IAS 34 Interim Financial Reporting. The accounting regulations of the Swedish Financial Supervisory Authority require some additional disclosures.
More detailed information is presented on www.sebgroup.com "Additional information" including:
| Appendix 1 | Division Life |
|---|---|
| Appendix 2 | Credit exposure |
| Appendix 3 | Capital adequacy |
| Appendix 4 | Market risk |
| Appendix 5 | P&L by division, business area and quarter |
| Appendix 6 | P&L by geography and quarter |
| Appendix 7 | Skandinaviska Enskilda Banken (parent |
| company) |
Financial information during 2009
| 5 February | Annual Accounts 2008 |
|---|---|
| 20 February | Annual Report available on the website |
| 6 March | Annual General Meeting in Stockholm |
| 6 May | 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 14.00 (CET) on 5 February 2009 with CEO Annika Falkengren and CFO Jan Erik Back can be accessed by telephone, not later than 15 minutes in advance: +44 (0)1452 560 063
A video web-cast with CFO Jan Erik Back will be available on www.sebgroup.com.
Further information is available from
Ian Erik Back, Chief Financial Officer Tel: +46 8 22 19 00 Ulf Grunnesiö. 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
The SEB Group
Income statement – SEB Group
| Condensed | Q4 | Q3 | Q4 | Jan - Dec | ||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Net interest income | 5 513 | 4 553 | 21 | 4 375 | 26 | 18 710 | 15 998 | 17 |
| Net fee and commission income | 3 790 | 3 754 | 1 | 4 129 | -8 | 15 254 | 17 051 | -11 |
| Net financial income | 1 723 | 247 | 420 | 2 970 | 3 239 | -8 | ||
| Net life insurance income | 516 | 504 | 2 | 766 | -33 | 2 375 | 2 933 | -19 |
| Net other income | 1 172 | 163 | 345 | 1 831 | 1 219 | 50 | ||
| Total operating income | 12 714 | 9 221 | 38 | 10 035 | 27 | 41 140 | 40 440 | 2 |
| Staff costs | -4 597 | -3 752 | 23 | -3 787 | 21 | -16 241 | -14 921 | 9 |
| Other expenses | -1 968 | -1 820 | 8 | -1 782 | 10 | -7 642 | -6 919 | 10 |
| Depreciation of assets | - 400 | - 398 | 1 | - 359 | 11 | -1 524 | -1 354 | 13 |
| Total operating expenses | -6 965 | -5 970 | 17 | -5 928 | 17 | -25 407 | -23 194 | 10 |
| Gains less losses from tangible and intangible | ||||||||
| assets | 2 | 787 | -100 | 6 | 788 | -99 | ||
| Net credit losses incl. changes in value of | ||||||||
| seized assets | -1 723 | - 725 | 138 | - 313 | -3 268 | -1 016 | ||
| Operating profit | 4 028 | 2 526 | 59 | 4 581 | -12 | 12 471 | 17 018 | -27 |
| Income tax expense | - 519 | - 641 | -19 | - 824 | -37 | -2 421 | -3 376 | -28 |
| Net profit from continuing operations | 3 509 | 1 885 | 86 | 3 757 | -7 | 10 050 | 13 642 | -26 |
| Discontinued operations | - 2 | 1 | ||||||
| Net profit | 3 507 | 1 886 | 86 | 3 757 | -7 | 10 050 | 13 642 | -26 |
| Attributable to minority interests | 1 | 4 | -75 | 5 | -80 | 9 | 24 | -63 |
| Attributable to equity holders * | 3 506 | 1 882 | 86 | 3 752 | -7 | 10 041 | 13 618 | -26 |
| * Basic earnings per share, SEK Diluted earnings per share, SEK |
5.12 5.12 |
2.75 2.74 |
5.49 5.48 |
14.66 14.65 |
19.97 19.88 |
|||
Key figures - SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | ||
|---|---|---|---|---|---|
| 2008 | 2008 | 2007 | 2008 | 2007 | |
| Return on equity, % | 17.6 | 10.0 | 20.2 | 13.1 | 19.3 |
| Return on total assets, % | 0.57 | 0.32 | 0.67 | 0.42 | 0.63 |
| Return on risk-weighted assets, % | 1.45 | 0.83 | 1.78 | 1.13 | 1.68 |
| Basic earnings per share, SEK | 5.12 | 2.75 | 5.49 | 14.66 | 19.97 |
| Weighted average number of shares, millions* | 685 | 685 | 683 | 685 | 682 |
| Diluted earnings per share, SEK | 5.12 | 2.74 | 5.48 | 14.65 | 19.88 |
| Weighted average number of diluted shares, millions** | 687 | 686 | 685 | 686 | 685 |
| Net worth per share, SEK | 134.10 | 125.82 | 127.44 | 134.10 | 127.44 |
| Average equity, SEK billion | 79.8 | 75.2 | 74.4 | 76.4 | 70.6 |
| Cost/income ratio | 0.55 | 0.65 | 0.59 | 0.62 | 0.57 |
| Credit loss level, % | 0.63 | 0.27 | 0.13 | 0.30 | 0.11 |
| Reserve ratio for impaired loans, % | 66.3 | 72.1 | 76.1 | 66.3 | 76.1 |
| Level of impaired loans, % | 0.35 | 0.23 | 0.18 | 0.35 | 0.18 |
| Basel II (Legal reporting with transitional floor) :*** | |||||
| Total capital ratio, incl net profit, % | 10.62 | 10.42 | 11.04 | 10.62 | 11.04 |
| Tier 1 capital ratio, incl net profit, % | 8.36 | 8.15 | 8.63 | 8.36 | 8.63 |
| Risk-weighted assets, SEK billion | 986 | 937 | 842 | 986 | 842 |
| Basel II (without transitional floor): | |||||
| Total capital ratio, incl net profit, % | 12.81 | 12.68 | 12.62 | 12.81 | 12.62 |
| Tier 1 capital ratio, incl net profit, % | 10.08 | 9.91 | 9.87 | 10.08 | 9.87 |
| Risk-weighted assets, SEK billion | 818 | 770 | 737 | 818 | 737 |
| Basel I: | |||||
| Total capital ratio, incl net profit, % | 9.29 | 9.34 | 10.42 | 9.29 | 10.42 |
| Tier 1 capital ratio, incl net profit, % | 7,32 | 7.30 | 8.15 | 7,32 | 8.15 |
| Risk-weighted assets, SEK billion | 1 127 | 1 045 | 892 | 1 127 | 892 |
| Number of full time equivalents**** | 21 131 | 21 428 | 19 794 | 21 291 | 19 506 |
| Assets under custody, SEK billion | 3 891 | 4 437 | 5 314 | 3 891 | 5 314 |
| Assets under management, SEK billion | 1 201 | 1 244 | 1 370 | 1 201 | 1 370 |
* Issued number of shares was 687,156,631 at year-end 2007. SEB then owned 3.7 million Class A shares for the employee stock option programme. During 2008 1.5 million net of these shares have been sold as employee stock options have been exercised. Thus, as of 31 December SEB owned 2.2 million Class A-shares with a market value of SEK 133m.
** Calculated dilution based on the estimated economic value of the long-term incentive programmes.
*** 90 per cent of RWA in Basel I for 2008 and 95 per cent of RWA in Basel I for 2007.
**** Quarterly numbers are for last month of quarter. Accumulated numbers are average for the period.
Income statement on quarterly basis - SEB Group
| SEK m | 2008:4 | 2008:3 | 2008:2 | 2008:1 | 2007:4 |
|---|---|---|---|---|---|
| Net interest income | 5 513 | 4 553 | 4 421 | 4 223 | 4 375 |
| Net fee and commission income | 3 790 | 3 754 | 3 909 | 3 801 | 4 129 |
| Net financial income | 1 723 | 247 | 1 161 | - 161 | 420 |
| Net life insurance income | 516 | 504 | 642 | 713 | 766 |
| Net other income | 1 172 | 163 | 270 | 226 | 345 |
| Total operating income | 12 714 | 9 221 | 10 403 | 8 802 | 10 035 |
| Staff costs | -4 597 | -3 752 | -3 993 | -3 899 | -3 787 |
| Other expenses | -1 968 | -1 820 | -2 098 | -1 756 | -1 782 |
| Depreciation of assets | - 400 | - 398 | - 354 | - 372 | - 359 |
| Total operating expenses | -6 965 | -5 970 | -6 445 | -6 027 | -5 928 |
| Gains less losses from tangible and intangible assets | 2 | 1 | 3 | 787 | |
| Net credit losses incl. changes in value of seized assets | -1 723 | - 725 | - 452 | - 368 | - 313 |
| Operating profit | 4 028 | 2 526 | 3 507 | 2 410 | 4 581 |
| Income tax expense | - 519 | - 641 | - 699 | - 562 | - 824 |
| Net profit from continuing operations | 3 509 | 1 885 | 2 808 | 1 848 | 3 757 |
| Discontinued operations | - 2 | 1 | 1 | ||
| Net profit | 3 507 | 1 886 | 2 809 | 1 848 | 3 757 |
| Attributable to minority interests | 1 | 4 | 3 | 1 | 5 |
| Attributable to equity holders* | 3 506 | 1 882 | 2 806 | 1 847 | 3 752 |
| * Basic earnings per share, SEK Diluted earnings per share, SEK |
5.12 5.12 |
2.75 2.74 |
4.10 4.09 |
2.70 2.69 |
5.49 5.48 |
Income statement, by Division - SEB Group
| Merchant | Retail | Wealth | Other incl | |||
|---|---|---|---|---|---|---|
| Jan-Dec 2008, SEK m | Banking | Banking | Management | Life* | eliminations | SEB Group |
| Net interest income | 7 414 | 10 750 | 891 | - 36 | - 309 | 18 710 |
| Net fee and commission | ||||||
| income | 5 248 | 5 641 | 3 681 | 684 | 15 254 | |
| Net financial income | 3 625 | 397 | 67 | -1 119 | 2 970 | |
| Net life insurance income | 3 296 | - 921 | 2 375 | |||
| Net other income | 541 | 244 | 48 | 998 | 1 831 | |
| Total operating income | 16 828 | 17 032 | 4 687 | 3 260 | - 667 | 41 140 |
| Staff costs | -3 890 | -4 632 | -1 427 | -1 105 | -5 187 | -16 241 |
| Other expenses | -3 594 | -5 449 | -1 132 | - 523 | 3 056 | -7 642 |
| Depreciation of assets | - 95 | - 311 | - 100 | - 569 | - 449 | -1 524 |
| Total operating expenses | -7 579 | -10 392 | -2 659 | -2 197 | -2 580 | -25 407 |
| Gains less losses from | ||||||
| tangible and intangible | ||||||
| assets | 5 | 2 | - 1 | 6 | ||
| Net credit losses** | - 904 | -2 380 | - 17 | 33 | -3 268 | |
| Operating profit | 8 350 | 4 262 | 2 011 | 1 063 | -3 215 | 12 471 |
* Business result in Life amounted to SEK 2,052m (3,075), of which change in surplus values was net SEK 989m (1,273).
** Including change in value of seized assets.
Merchant Banking
jÉêÅÜ~åí=_~åâáåÖ=Ü~ë=íïç=ä~êÖÉ=ÄìëáåÉëë=~êÉ~ë=J=qê~ÇáåÖ=~åÇ=~éáí~ä=j~êâÉíë=~åÇ=däçÄ~ä=qê~åë~Åíáçå=pÉêîáÅÉëK=qÜÉ=çíÜÉê=ÄìëáåÉëë=ìåáíëI= ÉKÖK=íÜÉ=oj=ÑìåÅíáçåI=çããÉêÅá~ä=oÉ~ä=bëí~íÉI=çêéçê~íÉ=cáå~åÅÉ=~åÇ=píêìÅíìêÉÇ=cáå~åÅÉI=~êÉ=ÅçåëçäáÇ~íÉÇ=áå=`çêéçê~íÉ=_~åâáåÖK==
Profit and loss account
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Net interest income | 2 613 | 1 738 | 50 | 1 498 | 74 | 7 414 | 5 610 | 32 |
| Net fee and commission income | 1 163 | 1 374 | - 15 | 1 361 | - 15 | 5 248 | 5 945 | - 12 |
| Net financial income | 1 813 | 757 | 139 | 249 | 3 625 | 2 613 | 39 | |
| Net other income | 342 | 83 | 194 | 76 | 541 | 839 | - 36 | |
| Total operating income | 5 931 | 3 952 | 50 | 3 302 | 80 | 16 828 | 15 007 | 12 |
| Staff costs | - 954 | - 867 | 10 | -1 055 | - 10 | -3 890 | -4 246 | - 8 |
| Other expenses | - 918 | - 830 | 11 | - 868 | 6 | -3 594 | -3 489 | 3 |
| Depreciation of assets | - 30 | - 22 | 36 | - 26 | 15 | - 95 | - 85 | 12 |
| Total operating expenses | -1 902 | -1 719 | 11 | -1 949 | - 2 | -7 579 | -7 820 | - 3 |
| Profit before credit losses etc | 4 029 | 2 233 | 80 | 1 353 | 198 | 9 249 | 7 187 | 29 |
| Gains less losses on assets | 1 | 1 | 2 | - 50 | 5 | 2 150 | ||
| Net credit losses | - 593 | - 255 | 133 | - 69 | - 904 | - 326 177 | ||
| Operating profit | 3 437 | 1 979 | 74 | 1 286 | 167 | 8 350 | 6 863 | 22 |
| Cost/Income ratio | 0,32 | 0,43 | 0,59 | 0,45 | 0,52 | |||
| Business equity, SEK bn | 27,0 | 27,0 | 26,4 | 27,0 | 26,4 | |||
| Return on equity, % | 36,7 | 21,1 | 14,0 | 22,3 | 18,7 | |||
| Number of full time equivalents | 2 698 | 2 719 | 2 672 | 2 721 | 2 566 |
Income and operating profit the highest to date
Strong business volumes and customer demand
Higher credit loss provisions reflect a few specific cases; in general asset quality remains stable
Comments on 2008
jÉêÅÜ~åí=_~åâáåÖ=êÉÅçêÇÉÇ=áíë=ÜáÖÜÉëí=ÉîÉê=çéÉê~íáåÖ= éêçÑáíK=aÉëéáíÉ=íìãìäíìçìë=Ñáå~åÅá~ä=ã~êâÉíë=~åÇ= ÅÜ~ääÉåÖáåÖ=ÉÅçåçãáÅ=ÅçåÇáíáçåëI=ÅäáÉåíë=êÉã~áåÉÇ=~ÅíáîÉK= qçÖÉíÜÉê=ïáíÜ=ã~êâÉí=ëÜ~êÉ=Ö~áåë=~åÇ=ïÉ~âÉåÉÇ= ÅçãéÉíáíçêëI=íÜáë=ëìééçêíÉÇ=ëíêçåÖ=áåÅçãÉ=ÖÉåÉê~íáçåI=ìé= Äó=NO=éÉê=ÅÉåí=Ñêçã=OMMTI=íç=pbh=NSKUÄåK=oÉîÉåìÉë=ïÉêÉ= é~êíáÅìä~êäó=ëíêçåÖ=áå=íÜÉ=ëÉÅçåÇ=Ü~äÑ=çÑ=íÜÉ=óÉ~êI=ÇêáîÉå=Äó= Ñáå~åÅáåÖ=~ÅíáîáíáÉëI=ÜáÖÜ=cu=êÉîÉåìÉë=~åÇ=áãéêçîÉÇ=ÑáñÉÇ= áåÅçãÉ=éÉêÑçêã~åÅÉK=içïÉê=áåîÉëíãÉåí=Ä~åâáåÖ=~Åíáîáíó= êÉÇìÅÉÇ=áåÅçãÉ=~í=kçêÇáÅ=ëáíÉëX=åÉîÉêíÜÉäÉëëI=ÇçìÄäÉ=ÇáÖáí= ÖêçïíÜ=áå=ÅçããÉêÅá~ä=Ä~åâáåÖ=~ÅíáîáíáÉë=ï~ë=êÉÅçêÇÉÇ=áå= É~ÅÜ=çÑ=íÜÉëÉ=ã~êâÉíëK==
`çëíë=ïÉêÉ=P=éÉê=ÅÉåí=äçïÉê=íÜ~å=OMMT=~åÇ=ÇÉÅäáåÉÇ= ÅçåëáÇÉê~Ääó=áå=íÜÉ=ëÉÅçåÇ=Ü~äÑK=léÉê~íáåÖ=éêçÑáí=áåÅêÉ~ëÉÇ= Äó=OO=éÉê=ÅÉåíI=íç=pbh=UIPRMãK==
få=äáåÉ=ïáíÜ=êÉîáëÉÇ=~ÅÅçìåíáåÖ=ÖìáÇÉäáåÉëI=íÜÉ=Çáîáëáçå= êÉJÅä~ëëáÑáÉÇ=~=åìãÄÉê=çÑ=ÜçäÇáåÖë=áå=íÜÉ=ÑáñÉÇ=áåÅçãÉ= áåîÉëíãÉåí=éçêíÑçäáçK=^ë=~=êÉëìäíI=î~äì~íáçå=äçëëÉë= ÇÉÅêÉ~ëÉÇ=íç=pbh=NPNã=áå=íÜÉ=ä~ííÉê=Ü~äÑ=çÑ=íÜÉ=óÉ~êI= Åçãé~êÉÇ=ïáíÜ=pbh=VPUã=ÇìêáåÖ=íÜÉ=Ñáêëí=ëáñ=ãçåíÜëK= `êÉÇáí=äçëë=éêçîáëáçåë=êçëÉI=~äÄÉáí=Ñêçã=~=îÉêó=äçï=äÉîÉäK= ^îÉê~ÖÉ=êáëâ=Åä~ëëÉë=áå=íÜÉ=ÅêÉÇáí=éçêíÑçäáçë=áãéêçîÉÇ= ÇìêáåÖ=íÜÉ=óÉ~ê=~åÇ=~ëëÉí=èì~äáíó=êÉã~áåÉÇ=ÖççÇK= eçïÉîÉêI=íÜÉ=ïÉ~âÉê=ÉÅçåçãáÅ=çìíäççâ=àìëíáÑáÉë=~= ÅçåíáåìÉÇ=ÅçåëÉêî~íáîÉ=~ééêç~ÅÜ=íç=äçëë=éêçîáëáçåáåÖK=
táíÜáå=qê~ÇáåÖ=~åÇ=`~éáí~ä=j~êâÉíëI=~ää=ã~àçê=ÄìëáåÉëë= ìåáíë=éÉêÑçêãÉÇ=ïÉääK=táíÜáå=bèìáíáÉëI=îçäìãÉ=êÉã~áåÉÇ= äçï=~åÇ=Åçããáëëáçåë=ïÉêÉ=ÇçïåI=~äíÜçìÖÜ=ÇÉÅäáåÉë=ïÉêÉ= äÉëë=íÜ~å=Ñçê=íÜÉ=ã~êâÉí=~ë=~=ïÜçäÉ=~ë=pb_=båëâáäÇ~= áåÅêÉ~ëÉÇ=áíë=kçêÇáÅ=ã~êâÉí=ëÜ~êÉ=íç=VKO=éÉê=ÅÉåí=ETKRFK= cu=ìåáíë=éÉêÑçêãÉÇ=é~êíáÅìä~êäó=ïÉääI=ïáíÜ=ÜáÖÜäó=~ÅíáîÉ= ÅìëíçãÉêë=~åÇ=Ñ~îçìê~ÄäÉ=ÅçåÇáíáçåë=Ñçê=ã~êâÉí=ã~âáåÖK==
`çêéçê~íÉ=Ä~åâáåÖ=éêçÑáíë=áåÅêÉ~ëÉÇ=íÜêçìÖÜçìí=OMMU== ~ë=îçäìãÉ=~åÇ=êÉîÉåìÉ=ÖêçïíÜ=áå=äÉåÇáåÖ=Öê~Çì~ääó=çÑÑëÉí= äçïÉê=~Çîáëçêó=~åÇ=~Åèìáëáíáçå=Ñáå~åÅÉ=áåÅçãÉK=dêçïíÜ=áå= áåíÉêÉëí=áåÅçãÉ=áå=íÜáë=~êÉ~=éêáã~êáäó=êÉÑäÉÅíë=áåÅêÉ~ëÉÇ= Äáä~íÉê~ä=Ñáå~åÅáåÖ=çÑ=ÅçêÉ=ÄäìÉ=ÅÜáé=Åçêéçê~íÉ=ÅäáÉåíëK= oÉÇìÅÉÇ=~ÅíáîáíáÉë=çÑ=áåíÉêå~íáçå~ä=Ä~åâë=ïáíÜáå=pb_Ûë= ã~áå=ã~êâÉíë=ÉåëìêÉÇ=ëíêçåÖ=ÇÉã~åÇ=~åÇ=~ääçïÉÇ=Ñçê= ãçêÉ=~ééêçéêá~íÉ=éêáÅáåÖ=çÑ=ÅêÉÇáíK==
mêçÑáíë=ïÉêÉ=ëí~ÄäÉ=áå=däçÄ~ä=qê~åë~Åíáçå=pÉêîáÅÉëK= cìêíÜÉê=áåÑäçï=çÑ=åÉï=ÅìëíçãÉêëI=é~êíáÅìä~êäó=ëìÄëáÇá~êáÉë= çÑ=ÉñáëíáåÖ=Å~ëÜ=ã~å~ÖÉãÉåí=ÅäáÉåíëI=çÑÑëÉí=åÉÖ~íáîÉ=ÉÑÑÉÅíë= Ñêçã=äçïÉê=~ëëÉí=î~äì~íáçåëK=^í=óÉ~êJÉåÇI=~ëëÉíë=ìåÇÉê= ÅìëíçÇó=ïÉêÉ=pbh=PIUVNÄåK==
aìêáåÖ=íÜÉ=ÑçìêíÜ=èì~êíÉêI=pb_=êÉÅÉáîÉÇ=~=ê~åÖÉ=çÑ=íçé= ê~åâáåÖë=Ñçê=Å~ëÜ=~åÇ=íêÉ~ëìêó=ã~å~ÖÉãÉåíI=íê~ÇÉ=Ñáå~åÅÉI= ÅìëíçÇó=~åÇ=ÉèìáíáÉëI=êÉÅçåÑáêãáåÖ=áíë=äÉ~ÇáåÖ=éçëáíáçå=áå= íÜÉëÉ=~êÉ~ëK=
qÜÉ=oÉí~áä=_~åâáåÖ=Çáîáëáçå=Åçåëáëíë=çÑ=ëáñ=ÄìëáåÉëë=~êÉ~ë=J=pïÉÇÉåI=dÉêã~åóI=bëíçåá~I=i~íîá~I=iáíÜì~åá~=~åÇ=`~êÇK=
Profit and loss account
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Net interest income | 2 851 | 2 755 | 3 | 2 549 | 12 | 10 750 | 9 698 | 11 |
| Net fee and commission income | 1 408 | 1 372 | 3 | 1 637 | - 14 | 5 641 | 6 219 | - 9 |
| Net financial income | 116 | 84 | 38 | 170 | - 32 | 397 | 482 | - 18 |
| Net other income | 110 | 26 | 64 | 72 | 244 | 159 | 53 | |
| Total operating income | 4 485 | 4 237 | 6 | 4 420 | 1 | 17 032 | 16 558 | 3 |
| Staff costs | -1 162 | -1 148 | 1 | -1 085 | 7 | -4 632 | -4 235 | 9 |
| Other expenses | -1 471 | -1 326 | 11 | -1 414 | 4 | -5 449 | -5 286 | 3 |
| Depreciation of assets | - 82 | - 76 | 8 | - 78 | 5 | - 311 | - 318 | - 2 |
| Total operating expenses | -2 715 | -2 550 | 6 | -2 577 | 5 | -10 392 | -9 839 | 6 |
| Profit before credit losses etc | 1 770 | 1 687 | 5 | 1 843 | - 4 | 6 640 | 6 719 | - 1 |
| Gains less losses on assets | 2 | 2 | 2 | 4 | - 50 | |||
| Net credit losses | -1 113 | - 516 | 116 | - 286 | -2 380 | - 715 | ||
| Operating profit | 659 | 1 171 | - 44 | 1 559 | - 58 | 4 262 | 6 008 | - 29 |
| Cost/Income ratio | 0,61 | 0,60 | 0,58 | 0,61 | 0,59 | |||
| Business equity, SEK bn | 25,3 | 25,3 | 24,8 | 25,3 | 24,8 | |||
| Return on equity, % | 7,3 | 14,0 | 19,3 | 12,7 | 18,8 | |||
| Number of full time equivalents | 8 951 | 9 139 | 8 925 | 9 084 | 8 802 |
- Despite a turbulent year operating income increased; profit before losses in line with 2007
- Higher deposit and lending volumes, 16 000 new SME clients
- Deteriorated economic conditions resulted in increased provisioning, particularly in the Baltic countries
Comments on 2008
kÉí=áåíÉêÉëí=áåÅçãÉ=ÇÉîÉäçéÉÇ=ëíêçåÖäó=~åÇ=áåÅêÉ~ëÉÇ= Öê~Çì~ääó=èì~êíÉê=Äó=èì~êíÉêK=aÉéçëáí=~åÇ=äÉåÇáåÖ=îçäìãÉë= áåÅêÉ~ëÉÇ=íÜêçìÖÜçìí=íÜÉ=óÉ~êI=íç=ëçãÉ=ÉñíÉåí=~ë=~=êÉëìäí=çÑ= ÉñÅÜ~åÖÉ=ê~íÉ=ÅÜ~åÖÉëK=kÉí=ÑÉÉ=~åÇ=Åçããáëëáçå=áåÅçãÉ= êÉÅçîÉêÉÇ=ëäáÖÜíäó=áå=íÜÉ=ÑçìêíÜ=èì~êíÉêI=Äìí=ÇÉÅêÉ~ëÉÇ=Äó= V=éÉê=ÅÉåí=çå=~=íïÉäîÉ=ãçåíÜë=Ä~ëáëK=cìää=óÉ~ê=êÉëìäí=ÄÉÑçêÉ= äçëëÉë=ï~ë=áå=äáåÉ=ïáíÜ=OMMTK=mêçîáëáçåë=Ñçê=ÅêÉÇáí=äçëëÉë= áåÅêÉ~ëÉÇ=íÜêçìÖÜçìí=íÜÉ=óÉ~êI=~åÇ=íÜÉ=ÇÉîÉäçéãÉåí= ~ÅÅÉäÉê~íÉÇ=áå=íÜÉ=ëÜ~êéÉåáåÖ=ÉÅçåçãáÅ=ëäçïÇçïå=ÇìêáåÖ= íÜÉ=ÑçìêíÜ=èì~êíÉêK=
få=pïÉÇÉåI=åÉí=áåíÉêÉëí=áåÅçãÉ=ÖêÉï=Äó=NR=éÉê=ÅÉåíK= jçêíÖ~ÖÉ=äç~åë=íç=pïÉÇáëÜ=ÜçìëÉÜçäÇëI=ïÜáÅÜ=~ÅÅçìåí=Ñçê= ~ééêçñáã~íÉäó=QM=éÉê=ÅÉåí=çÑ=íÜÉ=ÇáîáëáçåÛë=íçí~ä=äÉåÇáåÖ= îçäìãÉI=áåÅêÉ~ëÉÇ=Äó=U=éÉê=ÅÉåí=ÇìêáåÖ=íÜÉ=óÉ~êK=qÜÉ= ëíêÉåÖíÜÉåÉÇ=çÑÑÉê=íç=ëã~ää=~åÇ=ãÉÇáìãJëáòÉÇ=Åçêéçê~íáçåë= ÅçåíêáÄìíÉÇ=íç=çîÉê=NMIMMM=åÉí=åÉï=pïÉÇáëÜ=pjb=ÅäáÉåíë= ÇìêáåÖ=OMMUK==cìêíÜÉêãçêÉI=pb_=ï~ë=~ï~êÇÉÇ="_Éëí=pjb= Ä~åâ=OMMUÒ=Äó=íÜÉ=ã~Ö~òáåÉ=mêáî~í~=^ÑÑ®êÉêK=`çëíë= áåÅêÉ~ëÉÇ=Äó=R=éÉê=ÅÉåí=ÇìêáåÖ=OMMUI=~ÑÑÉÅíÉÇ=Äó=ÜáÖÜÉê= éÉåëáçå=ÅçëíëK=
cçê=bëíçåá~I=i~íîá~=~åÇ=iáíÜì~åá~=íÜÉ=ÖäçÄ~ä=ÉÅçåçãáÅ= ëäçïÇçïå=ÅçãÄáåÉÇ=ïáíÜ=äçÅ~ä=áãÄ~ä~åÅÉë=äÉÇ=íç= áåÅêÉ~ëáåÖäó=ÅÜ~ääÉåÖáåÖ=ã~êâÉí=ÅçåÇáíáçåëK=qÜáë=åÉÖ~íáîÉ= ÇÉîÉäçéãÉåí=Ö~áåÉÇ=ãçãÉåíìã=áå=íÜÉ=ÑçìêíÜ=èì~êíÉê= êÉëìäíáåÖ=áå=ëáÖåáÑáÅ~åíäó=áåÅêÉ~ëÉÇ=éêçîáëáçåë=Ñçê=ÅêÉÇáí= äçëëÉëK=^ë=~=ÅçåëÉèìÉåÅÉ=çÑ=áíë=ãçêÉ=ÅçåëÉêî~íáîÉ=äÉåÇáåÖI= pb_Ûë=ã~êâÉí=ëÜ~êÉ=Ü~ë=ÇÉÅêÉ~ëÉÇ=ÅçåëáëíÉåíäó=ëáåÅÉ=OMMRK= ^ååì~ä=ÅêÉÇáí=ÖêçïíÜI=ãÉ~ëìêÉÇ=áå=äçÅ~ä=ÅìêêÉåÅáÉëI=ï~ë=JOI= HR=~åÇ=HT=éÉê=ÅÉåí=áå=bëíçåá~I=i~íîá~=~åÇ=iáíÜì~åá~I= êÉëéÉÅíáîÉäóK=qÜÉëÉ=ÖêçïíÜ=ê~íÉë=ÇÉÅêÉ~ëÉÇ=ÇìêáåÖ=íÜÉ=óÉ~êI= ÉëéÉÅá~ääó=áå=iáíÜì~åá~K=aÉéçëáí=îçäìãÉë=êÉã~áåÉÇ=ëí~ÄäÉ= áå=bëíçåá~=~åÇ=i~íîá~=ÇìêáåÖ=íÜÉ=ÑçìêíÜ=èì~êíÉêI=ïÜáäÉ= ÇÉéçëáíë=ÇÉÅêÉ~ëÉÇ=ëäáÖÜíäó=áå=iáíÜì~åá~K=`çëíë=áåÅêÉ~ëÉÇ= ÇìêáåÖ=íÜÉ=óÉ~ê=~ë=~=êÉëìäí=çÑ=ÅìêêÉåÅó=ÉÑÑÉÅíëI=êÉåí~ä=Åçëí= áåÅêÉ~ëÉ=ÑçääçïáåÖ=íÜÉ=ÇáîÉëíãÉåí=çÑ=êÉ~ä=Éëí~íÉ=~åÇ=Åçëí= áåÑä~íáçåK=få=êÉä~íáçå=íç=íÜÉ=Ñìää=óÉ~êI=íÜÉ=ê~íÉ=çÑ=Åçëí=áåÅêÉ~ëÉ= ï~ë=ëáÖåáÑáÅ~åíäó=äçïÉê=áå=íÜÉ=ä~ëí=èì~êíÉêK=qÜÉ=åìãÄÉê=çÑ= cqbë=ï~ë=êÉÇìÅÉÇ=Äó=ãçêÉ=íÜ~å=NMM=ÇìêáåÖ=íÜÉ=ÑçìêíÜ= èì~êíÉêK==
få=dÉêã~åóI=ëÉÅìêáíáÉëJêÉä~íÉÇ=áåÅçãÉ=ÅçåíáåìÉÇ=íç=ÄÉ= ~ÑÑÉÅíÉÇ=Äó=äçïÉê=ã~êâÉí=~ÅíáîáíóK=aÉëéáíÉ=ÖêçïáåÖ=åÉí= áåíÉêÉëí=áåÅçãÉ=éêçÑáí~Äáäáíó=ÇÉíÉêáçê~íÉÇ=ÑìêíÜÉêK=
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Wealth Management
qÜáë=Çáîáëáçå=Ü~ë=íïç=ÄìëáåÉëë=~êÉ~ë=J=fåëíáíìíáçå~ä=`äáÉåíë=~åÇ=mêáî~íÉ=_~åâáåÖK
Profit and loss account
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Net interest income | 213 | 237 | - 10 | 245 | - 13 | 891 | 843 | 6 |
| Net fee and commission income | 1 119 | 784 | 43 | 979 | 14 | 3 681 | 4 077 | - 10 |
| Net financial income | 25 | 14 | 79 | 46 | - 46 | 67 | 79 | - 15 |
| Net other income | 10 | 3 | 40 | - 75 | 48 | 86 | - 44 | |
| Total operating income | 1 367 | 1 038 | 32 | 1 310 | 4 | 4 687 | 5 085 | - 8 |
| Staff costs | - 347 | - 330 | 5 | - 355 | - 2 | -1 427 | -1 340 | 6 |
| Other expenses | - 325 | - 249 | 31 | - 289 | 12 | -1 132 | -1 040 | 9 |
| Depreciation of assets | - 29 | - 25 | 16 | - 14 | 107 | - 100 | - 60 | 67 |
| Total operating expenses | - 701 | - 604 | 16 | - 658 | 7 | -2 659 | -2 440 | 9 |
| Profit before credit losses etc | 666 | 434 | 53 | 652 | 2 | 2 028 | 2 645 | - 23 |
| Gains less losses on assets | - 1 - 100 | |||||||
| Net credit losses | - 15 | 10 | - 17 | - 7 143 | ||||
| Operating profit | 651 | 434 | 50 | 662 | - 2 | 2 011 | 2 637 | - 24 |
| Cost/Income ratio | 0,51 | 0,58 | 0,50 | 0,57 | 0,48 | |||
| Business equity, SEK bn | 6,6 | 6,6 | 5,5 | 6,6 | 5,5 | |||
| Return on equity, % | 28,4 | 18,9 | 34,7 | 21,9 | 34,5 | |||
| Number of full time equivalents | 1 088 | 1 123 | 1 073 | 1 133 | 1 074 |
Operating profit down by 24 per cent, mainly due to lower asset values
Strong net sales within both Private Banking and Institutional Clients
Continued gain of market share in the Swedish mutual fund market
Comments on 2008
léÉê~íáåÖ=áåÅçãÉ=ÇêçééÉÇ=Äó=U=éÉê=ÅÉåí=Åçãé~êÉÇ=ïáíÜ= ä~ëí=óÉ~êI=êÉÑäÉÅíáåÖ=íÜÉ=ëÜ~êé=Ñ~ää=çÑ=ÖäçÄ~ä=ëíçÅâ=ã~êâÉíë=Äó= ëçãÉ=QM=éÉê=ÅÉåíK=kÉí=ë~äÉëI=áåÅêÉ~ëÉÇ=åÉí=áåíÉêÉëí=áåÅçãÉ= ~åÇ=éÉêÑçêã~åÅÉ=ÑÉÉë=Ä~ä~åÅÉÇ=ëçãÉïÜ~í=äçïÉê=åÉí=ÑÉÉ= ~åÇ=Åçããáëëáçå=áåÅçãÉI=ÇìÉ=íç=Ñ~ääáåÖ=~ëëÉí=î~äìÉë=~åÇ= äçïÉê=ÅìëíçãÉê=~ÅíáîáíóK=mÉêÑçêã~åÅÉ=~åÇ=íê~åë~Åíáçå=ÑÉÉë= Ñçê=OMMU=~ãçìåíÉÇ=íç=pbh=SRRã=ERRRFI=çÑ=ïÜáÅÜ=pbh=QMQã= ï~ë=êÉ~äáëÉÇ=áå=íÜÉ=ÑçìêíÜ=èì~êíÉêK=
léÉê~íáåÖ=ÉñéÉåëÉë=ÇìêáåÖ=íÜÉ=óÉ~ê=áåÅêÉ~ëÉÇ=Äó=V=éÉê= ÅÉåíI=çÑ=ïÜáÅÜ=S=éÉê=ÅÉåí=ï~ë=êÉä~íÉÇ=íç=íÜÉ=~Åèìáëáíáçå=çÑ= hÉó=^ëëÉí=j~å~ÖÉãÉåíK=bñÅäìÇáåÖ=íÜáë=~ÅèìáëáíáçåI=Åçëíë= áåÅêÉ~ëÉÇ=Äó=P=éÉê=ÅÉåí=ÇìÉ=íç=íÜÉ=Éñé~åëáçå=çÑ=mêáî~íÉ= _~åâáåÖ=~åÇ=fåëíáíìíáçå~ä=p~äÉë=~ë=ïÉää=~ë=~äíÉêå~íáîÉ= áåîÉëíãÉåí=éêçÇìÅí=ÇÉîÉäçéãÉåíK==
léÉê~íáåÖ=éêçÑáí=ÇÉÅêÉ~ëÉÇ=Äó=OQ=éÉê=ÅÉåíI=íç=pbh= OIMNNãK==
pb_=ÅçåíáåìÉÇ=íç=Å~éíìêÉ=îçäìãÉë=çå=íÜÉ=pïÉÇáëÜ= ãìíì~ä=ÑìåÇ=ã~êâÉíK=qçí~ä=åÉí=áåÑäçïë=~ãçìåíÉÇ=íç=pbh= SKRÄå=ENQF=Ñçê=íÜÉ=óÉ~ê=çå=~=ã~êâÉí=ÉñéÉêáÉåÅáåÖ=íçí~ä=åÉí= Ñäçïë=çÑ=pbh=JNTKRÄå=EHNVFK=^äíÉêå~íáîÉ=áåîÉëíãÉåíë=~äçåÉ= ~ííê~ÅíÉÇ=åÉí=áåÑäçïë=íçí~ääáåÖ=pbh=UKSÄå=ESKTFK=aìêáåÖ=íÜÉ= óÉ~ê=áåîÉëíãÉåí=~ééÉíáíÉ=ëÜáÑíÉÇ=Ñêçã=ÉèìáíáÉë=íç= ~äíÉêå~íáîÉ=áåîÉëíãÉåíë=~åÇ=ÑáñÉÇ=áåÅçãÉK=pb_=êÉÅçêÇÉÇ=íÜÉ= ä~êÖÉëí=áåÑäçï=çÑ=~ää=áåíç=íÜÉ=pïÉÇáëÜ=ãìíì~ä=ÑìåÇ=ã~êâÉí=
ÇìêáåÖ=OMMU=~åÇ=âÉéí=áíë=kçK=N=éçëáíáçåK===
kÉí=åÉï=~ëëÉíë=ïÉêÉ=ëìÄëí~åíá~ä=ÅçåëáÇÉêáåÖ=íÜÉ=ã~êâÉí= íìêÄìäÉåÅÉI=~åÇ=~ãçìåíÉÇ=íç=pbh=PPÄå=ERRFK=qÜáë=é~êíäó= çÑÑëÉí=íÜÉ=áãé~Åí=çÑ=ÇÉÅäáåáåÖ=Éèìáíó=ã~êâÉíë=çå=~ëëÉíë= ìåÇÉê=ã~å~ÖÉãÉåíI=ïÜáÅÜ=ÇÉÅêÉ~ëÉÇ=Äó=NN=éÉê=ÅÉåíI=íç= pbh=NINQOÄåI=Ñêçã=óÉ~êJÉåÇ=OMMTK==
fåîÉëíãÉåí=éÉêÑçêã~åÅÉ=ÇÉíÉêáçê~íÉÇ=ÇìêáåÖ=íÜÉ=ä~ëí= é~êí=çÑ=íÜÉ=ÑçìêíÜ=èì~êíÉêK=vÉ~êJíçJÇ~íÉ=éÉêÑçêã~åÅÉ= êÉã~áåÉÇ=ìåë~íáëÑ~ÅíçêóI=ïáíÜ=PQ=éÉê=ÅÉåí=EQVF=çÑ=íÜÉ= éçêíÑçäáçë=~åÇ=PP=éÉê=ÅÉåí=ERQF=çÑ=~ëëÉíë=ìåÇÉê=ã~å~ÖÉãÉåí= ~ÜÉ~Ç=çÑ=íÜÉáê=êÉëéÉÅíáîÉ=ÄÉåÅÜã~êâëK==
mêáî~íÉ=_~åâáåÖ=ÖÉåÉê~íÉÇ=åÉí=åÉï=~ëëÉíë=çÑ=pbh=NVÄå= ENPF=ÇÉëéáíÉ=íÜÉ=~ÇîÉêëÉ=ã~êâÉí=ÅçåÇáíáçåëX=~=êÉëìäí=çÑ=ÜáÖÜ= ~Åíáîáíó=~åÇ=ÅäçëÉ=ÅçJçéÉê~íáçå=ïáíÜ=íÜÉ=oÉí~áä=_~åâáåÖ= ÇáîáëáçåK==
fåëíáíìíáçå~ä=`äáÉåíë=ÅçåíáåìÉÇ=íç=ëÜçï=ëíêçåÖ=ë~äÉë=áå= pïÉÇÉå=ÇìêáåÖ=íÜÉ=ÑçìêíÜ=èì~êíÉêI=Äìí=åçíáÅÉÇ=çìíÑäçïë=áå= ëçãÉ=çíÜÉê=ã~êâÉíë=ÇìÉ=íç=ÅäáÉåíë=ëÜáÑíáåÖ=íÜÉáê=áåîÉëíãÉåí= ëíê~íÉÖóK==qÜÉ=ÄìëáåÉëë=~êÉ~=Ü~ë=Ö~áåÉÇ=ëìÄëí~åíá~ä=ã~êâÉí= ëÜ~êÉë=áå=ÅçêÉ=ã~êâÉíëI=ëìÅÜ=~ë=íÜÉ=pïÉÇáëÜ=ãìíì~ä=ÑìåÇ= ã~êâÉí=~åÇ=áåëíáíìíáçå~ä=ÄìëáåÉëëK==
tÉ~äíÜ=j~å~ÖÉãÉåí=ÅçåíáåìÉÇ=íç=áãéäÉãÉåí=pb_=t~ó= íÜêçìÖÜçìí=íÜÉ=Çáîáëáçå=~åÇ=áåíÉåëáÑáÉÇ=íÜÉ=éêçÖê~ããÉ= ÇìêáåÖ=íÜÉ=óÉ~êI=ïáíÜ=ÑçÅìë=çå=áãéêçîáåÖ=ë~äÉëK
Life
iáÑÉ=Åçåëáëíë=çÑ=íÜêÉÉ=ÄìëáåÉëë=~êÉ~ë=J=pb_=qêóÖÖ=iáî=EpïÉÇÉåFI=pb_=mÉåëáçå=EaÉåã~êâF=~åÇ=pb_=iáÑÉ=C=mÉåëáçå=fåíÉêå~íáçå~äK==
Profit and loss account
| Q4 | Q3 | Q4 | Jan- Dec | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | % | 2007 % |
2008 | 2007 | % |
| Net interest income | - 4 | - 3 | 33 | - 7 - 43 |
- 36 | - 28 | 29 |
| Net life insurance income | 739 | 720 | 3 | 1 031 - 28 |
3 296 | 3 958 | - 17 |
| Total operating income | 735 | 717 | 3 | 1 024 - 28 |
3 260 | 3 930 | - 17 |
| Staff costs | - 292 | - 266 | 10 | - 284 3 |
-1 105 | -1 050 | 5 |
| Other expenses | - 117 | - 126 | - 7 | - 121 - 3 |
- 523 | - 530 | - 1 |
| Depreciation of assets | - 115 | - 149 | - 23 | - 144 - 20 |
- 569 | - 548 | 4 |
| Total operating expenses | - 524 | - 541 | - 3 | - 549 - 5 |
-2 197 | -2 128 | 3 |
| Operating profit | 211 | 176 | 20 | 475 - 56 |
1 063 | 1 802 | - 41 |
| Change in surplus values, net | 380 | 132 188 | 431 - 12 |
989 | 1 273 | - 22 | |
| Business result | 591 | 308 | 92 | 906 - 35 |
2 052 | 3 075 | - 33 |
| Cost/Income ratio | 0,71 | 0,75 | 0,54 | 0,67 | 0,54 | ||
| Business equity, SEK bn | 7,5 | 7,5 | 7,5 | 7,5 | 7,5 | ||
| Return on equity, % | |||||||
| based on operating profit | 9,9 | 8,3 | 22,3 | 12,5 | 21,1 | ||
| based on business result | 27,7 | 14,5 | 42,5 | 24,1 | 36,1 | ||
| Number of full time equivalents | 1 226 | 1 250 | 1 218 | 1 233 | 1 201 |
• Lower operating profit reflecting difficult markets conditions and guarantee provisions
• Total premium income increased 10 per cent
• Positive sales development despite financial turbulence and increasingly competitive markets.
Comments on 2008
léÉê~íáåÖ=éêçÑáí=ÇÉÅêÉ~ëÉÇ=Äó=QN=éÉê=ÅÉåí=Åçãé~êÉÇ=ïáíÜ= ä~ëí=óÉ~êK=råáíJäáåâÉÇ=áåÅçãÉ=ÇÉÅêÉ~ëÉÇI=ã~áåäó=~ë=~=êÉëìäí= çÑ=Ñ~ääáåÖ=Éèìáíó=î~äìÉë=~åÇ=ÅìëíçãÉêëÛ=áåÅêÉ~ëÉÇ=êáëâ= ~ï~êÉåÉëëK=`ìëíçãÉêë=áåÅêÉ~ëáåÖäó=êÉ~ääçÅ~íÉÇ=Ñêçã=Éèìáíó= ÉñéçëìêÉë=íç=ÑáñÉÇ=áåÅçãÉ=~äíÉêå~íáîÉëK=qÜÉ=íê~Çáíáçå~ä= áåëìê~åÅÉ=éçêíÑçäáçë=áå=aÉåã~êâ=~åÇ=pïÉÇÉå=Ü~îÉ=~äëç= ÄÉÉå=åÉÖ~íáîÉäó=~ÑÑÉÅíÉÇ=Äó=íÜÉ=ÇÉíÉêáçê~íáåÖ=î~äìÉ=çÑ= ÉèìáíáÉë=~åÇ=ÑáñÉÇ=áåÅçãÉ=áåîÉëíãÉåíëK=c~ääáåÖ=äçåÖJíÉêã= áåíÉêÉëí=ê~íÉë=ÇìêáåÖ=íÜÉ=ëÉÅçåÇ=Ü~äÑ=çÑ=íÜÉ=óÉ~ê=~ÑÑÉÅíÉÇ=íÜÉ= áåëìê~åÅÉ=äá~ÄáäáíáÉë=åÉÖ~íáîÉäóK=qÜÉ=ã~êâÉí=î~äìÉJêÉä~íÉÇ= ÉÑÑÉÅíë=ã~áåäó=êÉéêÉëÉåíÉÇ=ìåêÉ~äáëÉÇ=äçëëÉëI=êÉÅçîÉê~ÄäÉ=áå= ~=ãçêÉ=åçêã~ä=ã~êâÉí=çêI=áå=íÜÉ=Å~ëÉ=çÑ=ÄçåÇëI=áÑ=ÜÉäÇ=íç= ã~íìêáíóK=qÜÉ=êÉëìäíë=Ñçê=êáëâ=éêçÇìÅíëI=ëìÅÜ=~ë=ëáÅâåÉëë= áåëìê~åÅÉ=~åÇ=Å~êÉ=éêçÇìÅíëI=ïÉêÉ=ÜáÖÜÉê=íÜ~å=ä~ëí=óÉ~êK==
^=éêçîáëáçå=çÑ=pbh=PRPãI=çÑ=ïÜáÅÜ=pbh=ONUã=áå=íÜÉ= ÑçìêíÜ=èì~êíÉêI=Ü~ë=ÄÉÉå=ã~ÇÉ=íç=ÅçîÉê=éçíÉåíá~ä=ÑìíìêÉ= Öì~ê~åíÉÉë=êÉä~íÉÇ=íç=íÜÉ=íê~Çáíáçå~ä=äáÑÉ=éçêíÑçäáç= íê~åëÑÉêêÉÇ=Ñêçã=kó~=iáî=áå=OMMTK=qÜÉ=éêçîáëáçå=áë=ã~áåäó= ã~êâÉí=î~äìÉJêÉä~íÉÇ=~åÇ=êÉÅçîÉê~ÄäÉ=áÑ=ÑìíìêÉ=áåîÉëíãÉåí= êÉíìêåë=~êÉ=~ÇÉèì~íÉ=íç=ãÉÉí=Öì~ê~åíÉÉÇ=Äçåìë=äÉîÉäë=çîÉê= íáãÉK==
léÉê~íáåÖ=ÉñéÉåëÉë=áåÅêÉ~ëÉÇ=ÇìÉ=íç=ÜáÖÜÉê=ë~äÉë=~åÇ= áåîÉëíãÉåíë=áå=åÉï=ã~êâÉíëK=qÜÉ=åìãÄÉê=çÑ=ëí~ÑÑ=êÉã~áåÉÇ= ëí~ÄäÉ=ÇìêáåÖ=íÜÉ=é~ëí=óÉ~êI=ÉñÅÉéí=Ñçê=~ÇÇáíáçåë=áå=íÜÉ= _~äíáÅ=ÅçìåíêáÉë=~åÇ=râê~áåÉK=^=êÉÇìÅíáçå=çÑ=ëí~ÑÑ=ï~ë= ã~ÇÉ=ÇìêáåÖ=íÜÉ=ÑçìêíÜ=èì~êíÉêK==
råáíJäáåâÉÇ=áåëìê~åÅÉ=êÉã~áåë=íÜÉ=ã~àçê=éêçÇìÅí= ÖêçìéI=êÉéêÉëÉåíáåÖ=TR=éÉê=ÅÉåí=EUMF=çÑ=íçí~ä=ë~äÉëK=qÜÉ=ëÜ~êÉ= çÑ=Åçêéçê~íÉ=éÉåëáçå=ÇÉÅêÉ~ëÉÇ=íç=SV=éÉê=ÅÉåí=ETOF=~ë=~= êÉëìäí=çÑ=ëíêçåÖ=ÖêçïíÜ=áå=íÜÉ=ÇÉã~åÇ=Ñçê=mçêíÑçäáç=_çåÇ= ~åÇ=ÉåÇçïãÉåí=éçäáÅáÉë=áå=pïÉÇÉåK==
qçí~ä=ë~äÉëI=ïÉáÖÜíÉÇ=îçäìãÉI=êçëÉ=Äó=NM=éÉê=ÅÉåí= Åçãé~êÉÇ=ïáíÜ=ä~ëí=óÉ~êK=qÜÉ=ëÜ~êÉ=çÑ=êÉÖìä~ê=éêÉãáìã= Åçåíê~Åíë=êÉã~áåÉÇ=ëí~ÄäÉ=~êçìåÇ=UM=éÉê=ÅÉåíK=mêáÅÉ= éêÉëëìêÉ=ÅçåíáåìÉë=íç=ÄÉ=~å=áëëìÉ=áå=íÜÉ=Åçêéçê~íÉ=ã~êâÉíë= áå=pïÉÇÉå=~åÇ=aÉåã~êâI=ïÜáÅÜ=ÅçãÄáåÉÇ=ïáíÜ=~=ÜáÖÜÉê= îçäìãÉ=çÑ=áåîÉëíãÉåí=êÉä~íÉÇ=éêçÇìÅíë=Ü~Ç=~=åÉÖ~íáîÉ= ÉÑÑÉÅí=çå=ã~êÖáåëK=qÜÉ=ë~äÉë=ã~êÖáå=ÇêçééÉÇ=íç=NUKT=éÉê= ÅÉåí=Åçãé~êÉÇ=ïáíÜ=OPKT=éÉê=ÅÉåí=áå=OMMTK==
få=pïÉÇÉåI=ë~äÉë=áåÅêÉ~ëÉÇ=Äó=U=éÉê=ÅÉåíK=få=aÉåã~êâI= ë~äÉë=êçëÉ=Äó=NM=éÉê=ÅÉåí=ïÜáäÉ=éêÉãáìã=áåÅçãÉ=áåÅêÉ~ëÉÇ= Äó=V=éÉê=ÅÉåíK=p~äÉë=áå=íÜÉ=_~äíáÅ=ÅçìåíêáÉë=ïÉêÉ=OM=éÉê=ÅÉåí= äçïÉê=íÜ~å=ä~ëí=óÉ~êI=ïÜáäÉ=ë~äÉë=çÑ=íÜÉ=mçêíÑçäáç=_çåÇ= éêçÇìÅí=áå=pïÉÇÉå=íÜêçìÖÜ=pb_=iáÑÉ=C=mÉåëáçå= fåíÉêå~íáçå~ä=áåÅêÉ~ëÉÇ=Äó=SU=éÉê=ÅÉåíK==
qçí~ä=éêÉãáìã=áåÅçãÉ=áåÅêÉ~ëÉÇ=Äó=NM=éÉê=ÅÉåíI=íç= pbh=OUKVÄå=Åçãé~êÉÇ=ïáíÜ=pbh=OSKQÄå=áå=OMMTK=qÜÉ=íçí~ä= î~äìÉ=çÑ=ìåáíJäáåâÉÇ=ÑìåÇë=ÇÉÅêÉ~ëÉÇ=Äó=NR=éÉê=ÅÉåíI=íç= pbh=NNRÄå=Åçãé~êÉÇ=ïáíÜ=pbh=NPSÄå=~í=óÉ~êJÉåÇ=OMMTK= qçí~ä=~ëëÉíë=ìåÇÉê=ã~å~ÖÉãÉåí=EåÉí=~ëëÉíëF=ÇÉÅêÉ~ëÉÇ=Äó= NP=éÉê=ÅÉåíI=íç=pbh=PRQÄåK
Result by geography 2008
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=~åçíÜÉê=NM= ÅçìåíêáÉëK=
- Credit market turbulence and worsened economic conditions affected results in all markets
- 65 per cent of operating profit was generated in Sweden*
- Operating profit in the Baltic countries was negatively affected by increased provisions for credit losses
Comments on 2008
qÜÉ=ÉñíêÉãÉ=Çáëêìéíáçå=áå=íÜÉ=ÖäçÄ~ä=Ñáå~åÅá~ä=ã~êâÉíë=~åÇ= íÜÉ=ëÜ~êé=ÇÉíÉêáçê~íáçå=çÑ=íÜÉ=êÉ~ä=ÉÅçåçãó=ÇìêáåÖ=OMMU= ~ÇîÉêëÉäó=~ÑÑÉÅíÉÇ=pb_Ûë=çéÉê~íáçåë=áå=~ää=ã~êâÉíëK= eçïÉîÉêI=ìåÇÉêäóáåÖ=ÄìëáåÉëë=ï~ë=ëíêçåÖ=áå=ãçëí=~êÉ~ëK=
få=pïÉÇÉåI=çéÉê~íáåÖ=áåÅçãÉ=êçëÉ=ã~áåäó=ÇìÉ=íç= áãéêçîÉÇ=åÉí=áåíÉêÉëí=áåÅçãÉK=qÜáë=ï~ë=íç=~=ä~êÖÉ=ÉñíÉåí= íÜÉ=êÉëìäí=çÑ=~=ëìÄëí~åíá~ä=îçäìãÉ=ÖêçïíÜI=ëìééçêíÉÇ=Äó= ÅìêêÉåÅó=ÉÑÑÉÅíëK=léÉê~íáåÖ=ÉñéÉåëÉë=áåÅêÉ~ëÉÇI=ä~êÖÉäó=ÇìÉ= íç=ÜáÖÜÉê=Åçëíë=Ñçê=êÉÇìåÇ~åÅó=~åÇ=éÉåëáçåëK=cçê=íÜÉ=Ñáêëí= íáãÉ=áå=ã~åó=óÉ~êëI=pïÉÇÉå=~ÅÅçìåíÉÇ=Ñçê=íÜÉ=ã~àçê=é~êíI= çê=SR=éÉê=ÅÉåíI=çÑ=pb_Ûë=çéÉê~íáåÖ=éêçÑáíK==
få=aÉåã~êâ=~åÇ=kçêï~óI=pb_Ûë=Åçêéçê~íÉ=Ä~åâáåÖ= ÄìëáåÉëë=ÇÉîÉäçéÉÇ=ïÉääK=få=ÄçíÜ=ÅçìåíêáÉëI=ÜçïÉîÉêI=äçïÉê= ~ÅíáîáíáÉë=ïáíÜáå=áåîÉëíãÉåí=Ä~åâáåÖ=äÉÇ=íç=ÇÉÅêÉ~ëÉÇ= áåÅçãÉ=Åçãé~êÉÇ=ïáíÜ=ä~ëí=óÉ~êK=pb_Ûë=äáÑÉ=áåëìê~åÅÉ= ÄìëáåÉëë=áå=aÉåã~êâ=ï~ë=åÉÖ~íáîÉäó=~ÑÑÉÅíÉÇ=Äó=äçïÉê= î~äìÉëK=få=cáåä~åÇI=jÉêÅÜ~åí=_~åâáåÖ=êÉéçêíÉÇ=ëíêçåÖ= ÖêçïíÜ=ÄçíÜ=áå=íÉêãë=çÑ=ÄìëáåÉëë=îçäìãÉë=~åÇ=çéÉê~íáåÖ= éêçÑáíK=tÉ~äíÜ=j~å~ÖÉãÉåí=éÉêÑçêãÉÇ=ïÉää=áå=êÉä~íáîÉ= íÉêãëK==
få=íÜÉ=_~äíáÅ=êÉÖáçåI=áåÅçãÉ=êçëÉ=áå=iáíÜì~åá~I=ïÜáäÉ=áí= ÇÉÅêÉ~ëÉÇ=áå=bëíçåá~=~åÇ=i~íîá~K==
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Operating profit* January-December 2008
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| ÉåÇ=çÑ=OMMTK== Distribution by country Jan - Dec |
Total operating income | Total operating expenses | Operating profit | ||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2007 | % | 2008 | 2007 | % | 2008 | 2007 | % |
| Sweden | 22 507 | 20 489 | 10 | -13 675 | -12 265 | 11 | 8 344 | 8 145 | 2 |
| Norway | 2 902 | 2 942 | -1 | -1 464 | -1 546 | -5 | 1 172 | 1 302 | -10 |
| Denmark | 2 232 | 2 823 | -21 | -1 407 | -1 555 | -10 | 556 | 1 232 | -55 |
| Finland | 1 234 | 1 177 | 5 | - 669 | - 589 | 14 | 554 | 579 | -4 |
| Germany | 5 956 | 6 148 | -3 | -4 967 | -4 810 | 3 | 754 | 996 | -24 |
| Estonia | 1 536 | 1 660 | -7 | - 715 | - 649 | 10 | 309 | 1 090 | -72 |
| Latvia | 1 637 | 1 649 | -1 | - 734 | - 602 | 22 | 391 | 1 192 | -67 |
| Lithuania | 2 498 | 2 386 | 5 | -1 030 | - 876 | 18 | 717 | 1 621 | -56 |
| Other countries and eliminations | 638 | 1 166 | -45 | - 746 | - 302 | 147 | - 326 | 861 | -138 |
| Total | 41 140 | 40 440 | 2 | -25 407 | -23 194 | 10 | 12 471 | 17 018 | -27 |
* Adjusted for centralisation of CPM portfolios from U.S. to Sweden, which effects operating income and profit with SEK 1.8 bn in Q4 2008.
The SEB Group
Net fee and commission income – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Issue of securities | 27 | 47 | - 43 | 61 | - 56 | 172 | 335 | - 49 |
| Secondary market | 444 | 654 | - 32 | 859 | - 48 | 2 769 | 3 751 | - 26 |
| Custody and mutual funds | 1 931 | 1 623 | 19 | 1 763 | 10 | 7 022 | 7 165 | - 2 |
| Securities commissions | 2 402 | 2 324 | 3 | 2 683 | - 10 | 9 963 | 11 251 | - 11 |
| Payments | 494 | 447 | 11 | 463 | 7 | 1 844 | 1 808 | 2 |
| Card fees | 1 094 | 1 066 | 3 | 1 087 | 1 | 4 300 | 4 093 | 5 |
| Payment commissions | 1 588 | 1 513 | 5 | 1 550 | 2 | 6 144 | 5 901 | 4 |
| Advisory | 327 | 329 | - 1 | 316 | 3 | 1 118 | 1 473 | - 24 |
| Lending | 291 | 258 | 13 | 294 | - 1 | 1 004 | 1 055 | - 5 |
| Deposits | 26 | 25 | 4 | 23 | 13 | 98 | 89 | 10 |
| Guarantees | 85 | 78 | 9 | 66 | 29 | 301 | 264 | 14 |
| Derivatives | 197 | 175 | 13 | 92 | 114 | 601 | 363 | 66 |
| Other | 124 | 168 | - 26 | 235 | - 47 | 648 | 1 004 | - 35 |
| Other commissions | 1 050 | 1 033 | 2 | 1 026 | 2 | 3 770 | 4 248 | - 11 |
| Fee and commission income | 5 040 | 4 870 | 3 | 5 259 | - 4 | 19 877 | 21 400 | - 7 |
| Securities commissions | - 228 | - 226 | 1 | - 195 | 17 | - 970 | - 902 | 8 |
| Payment commissions | - 641 | - 593 | 8 | - 619 | 4 | -2 450 | -2 373 | 3 |
| Other commissions | - 381 | - 297 | 28 | - 316 | 21 | -1 203 | -1 074 | 12 |
| Fee and commission expense | -1 250 | -1 116 | 12 | -1 130 | 11 | -4 623 | -4 349 | 6 |
| Securities commissions, net | 2 174 | 2 098 | 4 | 2 488 | - 13 | 8 993 | 10 349 | - 13 |
| Payment commissions, net | 947 | 920 | 3 | 931 | 2 | 3 694 | 3 528 | 5 |
| Other commissions, net | 669 | 736 | - 9 | 710 | - 6 | 2 567 | 3 174 | - 19 |
| Net fee and commission income | 3 790 | 3 754 | 1 | 4 129 | - 8 | 15 254 | 17 051 | - 11 |
Net financial income – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Equity instruments and related derivatives | 420 | 489 | -14 | 157 | 168 | 1 386 | 520 | 167 |
| Debt instruments and related derivatives | 54 | - 503 | -111 | - 477 | - 111 | -1 505 | - 101 | |
| Capital market related | 474 | - 14 | - 320 | - 119 | 419 | -128 | ||
| Currency-related | 1 228 | 270 | 740 | 66 | 3 077 | 2 820 | 9 | |
| Other financial instruments | 21 | - 9 | 12 | |||||
| Net financial income | 1 723 | 247 | 420 | 2 970 | 3 239 | -8 |
Net credit losses - Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Provisions: | ||||||||
| Net collective provisions | - 884 | - 318 | 178 | 15 | -1 303 | - 390 | ||
| Specific provisions | - 788 | - 331 | 138 | - 231 | -1 718 | - 653 | 163 | |
| Reversal of specific provisions no longer required | 142 | 71 | 100 | 163 | -13 | 336 | 405 | -17 |
| Net provisions for contingent liabilities | - 36 | - 23 | 57 | - 24 | 50 | - 56 | 8 | |
| Net provisions | -1 566 | - 601 | 161 | - 77 | -2 741 | - 630 | ||
| Write-offs: | ||||||||
| Total write-offs | - 464 | - 265 | 75 | - 562 | -17 | -1 428 | -1 395 | 2 |
| Reversal of specific provisions utilized for write-offs | 210 | 71 | 196 | 242 | -13 | 699 | 711 | -2 |
| Write-offs not previously provided for | - 254 | - 194 | 31 | - 320 | -21 | - 729 | - 684 | 7 |
| Recovered from previous write-offs | 117 | 79 | 48 | 85 | 38 | 239 | 293 | -18 |
| Net write-offs | - 137 | - 115 | 19 | - 235 | -42 | - 490 | - 391 | 25 |
| Net credit losses | -1 703 | - 716 | 138 | - 312 | -3 231 | -1 021 | ||
| Change in value of seized assets | - 20 | - 9 | 122 | - 1 | - 37 | 5 | ||
| Net credit losses incl change in value | -1 723 | - 725 | 138 | - 313 | -3 268 | -1 016 |
Balance sheet – SEB Group
| Condensed | 31 December | 31 December |
|---|---|---|
| SEK m | 2008 | 2007 |
| Cash and cash balances with central banks | 44 852 | 96 871 |
| Loans to credit institutions | 266 363 | 263 012 |
| Loans to the public | 1 296 777 | 1 067 341 |
| Financial assets at fair value * | 635 454 | 661 223 |
| Available-for-sale financial assets * | 163 115 | 170 137 |
| Held-to-maturity investments * | 1 997 | 1 798 |
| Investments in associates | 1 129 | 1 257 |
| Tangible and intangible assets | 29 511 | 24 697 |
| Other assets | 71 504 | 58 126 |
| Total assets | 2 510 702 | 2 344 462 |
| Deposits by credit institutions | 429 425 | 421 348 |
| Deposits and borrowing from the public | 841 034 | 750 481 |
| Liabilities to policyholders | 211 070 | 225 916 |
| Debt securities | 525 219 | 510 564 |
| Financial liabilities at fair value | 295 533 | 216 390 |
| Other liabilities | 71 565 | 97 519 |
| Provisions | 1 897 | 1 536 |
| Subordinated liabilities | 51 230 | 43 989 |
| Total equity | 83 729 | 76 719 |
| Total liabilities and equity | 2 510 702 | 2 344 462 |
| * Of which bonds and other interest bearing securities inclusive derivatives. | 628 675 | 608 016 |
Memorandum items – SEB Group
| 31 December | 31 December | |
|---|---|---|
| SEK m | 2008 | 2007 |
| Collateral and comparable security pledged for own liabilities | 375 227 | 308 342 |
| Other pledged assets and comparable collateral | 152 142 | 207 363 |
| Contingent liabilities | 86 675 | 66 984 |
| Commitments | 416 533 | 394 128 |
Statement of changes in equity – SEB Group
| Reserve for | Reserve for | ||||||
|---|---|---|---|---|---|---|---|
| SEK m | Minority interests |
cash flow hedges |
afs financial assets |
Share capital |
Restricted reserves |
Retained earnings |
Total |
| Jan-Dec 2008 | |||||||
| Opening balance | 191 | 160 | - 438 | 6 872 | 29 757 | 40 177 | 76 719 |
| Change in market value | 1 623 | -2 573 | - 950 | ||||
| Recognised in income statement | - 16 | - 51 | - 67 | ||||
| Translation difference | 151 | 151 | |||||
| Net income recognised directly in equity | 1 607 | -2 624 | 151 | - 866 | |||
| Net profit | 9 | 10 041 | 10 050 | ||||
| Total recognised income | 9 | 1 607 | -2 624 | 151 | 10 041 | 9 184 | |
| Dividend to shareholders | -4 451 | -4 451 | |||||
| Swap hedging of employee stock option programme Eliminations of repurchased shares for employee |
27 | 27 | |||||
| stock option programme* | 183 | 183 | |||||
| Other changes | - 8 | 2 949 | - 874 | 2 067 | |||
| Closing balance | 192 | 1 767 | -3 062 | 6 872 | 32 857 | 45 103 | 83 729 |
| Jan-Dec 2007 | |||||||
| Opening balance | 130 | 380 | 392 | 6 872 | 30 203 | 29 290 | 67 267 |
| Change in market value | - 206 | - 614 | - 820 | ||||
| Recognised in income statement | - 14 | - 216 | - 230 | ||||
| Translation difference | 98 | 98 | |||||
| Net income recognised directly in equity | - 220 | - 830 | 98 | - 952 | |||
| Net profit | 24 | 13 618 | 13 642 | ||||
| Total recognised income | 24 | - 220 | - 830 | 98 | 13 618 | 12 690 | |
| Dividend to shareholders | -4 079 | -4 079 | |||||
| Swap hedging of employee stock option programme Eliminations of repurchased shares for employee |
- 428 | - 428 | |||||
| stock option programme* | 897 | 897 | |||||
| Other changes | 37 | - 544 | 879 | 372 | |||
| Closing balance | 191 | 160 | - 438 | 6 872 | 29 757 | 40 177 | 76 719 |
* As of 31 December 2007 SEB owned 3.7 million Class A shares for the employee stock option programme. The acquisition cost for these shares is deducted from shareholders' equity. During 2008 1.5 million net of these shares have been sold as employee stock options have been exercised. Thus, as of 31 December SEB owned 2.2 million Class A-shares with a market value of SEK 133m for hedging of the long-term incentive programmes.
Cash flow statement – SEB Group
| Jan - Dec | ||||||
|---|---|---|---|---|---|---|
| SEK m | 2008 | 2007 | % | |||
| Cash flow from the profit and loss statement | 12 205 | 17 890 | - 32 | |||
| Increase (-)/decrease (+) in portfolios | - 12 646 | - 32 503 | - 61 | |||
| Increase (+)/decrease (-) in issued short term securities | 13 276 | 72 454 | - 82 | |||
| Increase (-)/decrease (+) in lending to credit institutions | 38 890 | - 45 995 | - 185 | |||
| Increase (-)/decrease (+) in lending to the public | - 162 529 | - 116 298 | 40 | |||
| Increase (+)/decrease (-) in liabilities to credit institutions | 9 208 | 52 274 | - 82 | |||
| Increase (+)/decrease (-) in deposits and borrowings from the public | 87 815 | 104 715 | - 16 | |||
| Increase (-)/decrease (+) in net investment contracts in insurance business | 234 | 22 302 | - 99 | |||
| Change in other balance sheet items | - 2 894 | 10 348 | - 128 | |||
| Cash flow from operating activities | - 16 441 | 85 187 | - 119 | |||
| Cash flow from investment activities1) | - 6 050 | - 2 350 | 157 | |||
| Cash flow from financing activities | 2 653 | 38 397 | - 93 | |||
| Net increase in cash and cash equivalents | - 19 838 | 121 234 - 116 | ||||
| Cash and cash equivalents at beginning of year | 194 985 | 73 751 | 164 | |||
| Net increase in cash and cash equivalents | - 19 838 | 121 234 | - 116 | |||
| Cash and cash equivalents at end of period2) | 175 147 | 194 985 | - 10 | |||
| 1) Including investments in subsidiaries | ||||||
| Cost of acquisitions | - 1 040 | - 759 | 37 | |||
| Less cash acquired | 102 | - 100 | ||||
| Outflow on acquisition | - 1 040 | - 657 | 58 |
2) Cash and cash equivalents at end of period is defined as Cash and cash balances with central banks and Loans to credit institutions payable on demand.
Impaired loans and seized assets – SEB Group
| 31 December | 31 December | |
|---|---|---|
| SEK m | 2008 | 2007 |
| Non-performing impaired loans | 12 963 | 7 619 |
| Performing impaired loans | 948 | 772 |
| Impaired loans gross* | 13 911 | 8 391 |
| Specific reserves | - 5 022 | - 3 787 |
| of which reserves for non-performing loans | - 4 679 | - 3 456 |
| of which reserves for performing loans | - 343 | - 331 |
| Collective reserves | - 4 197 | - 2 602 |
| Impaired loans net | 4 692 | 2 002 |
| Reserves for off-balance sheet items | - 251 | - 209 |
| Total reserves | - 9 470 | - 6 598 |
| Level of impaired loans (Impaired loans, net in relation to lending, at end of period) |
0.35% | 0.18% |
| Reserve ratio for impaired loans (Specific and collective reserves in relation to impaired loans gross, per cent) |
66.3% | 76.1% |
| Specific reserve ratio for impaired loans | 36.1% | 45.1% |
| Pledges taken over | ||
| Properties | 30 | 23 |
| Shares | 106 | 39 |
| Total volume of pledges taken over | 136 | 62 |
* Individually impaired loans.
The SEB share
Rating
| Moody's Outlook Negative (December 2008) |
Standard & Poor's Outlook Negative (October 2008) |
Fitch Outlook Stable (July 2008) |
DBRS Outlook Stable (July 2008) |
||||
|---|---|---|---|---|---|---|---|
| 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, | |
|---|---|
| December 2008 | per cent |
| Investor AB | 20.7 |
| Trygg-Stiftelsen | 9.6 |
| Alecta | 5.3 |
| Swedbank Robur Funds | 3.8 |
| AFA Försäkring | 2.7 |
| SEB Funds | 1.9 |
| 4th AP-fund | 1.9 |
| AMF Pension | 1.6 |
| Wallenberg-foundations | 1.5 |
| SHB/SPP Funds | 1.4 |
| Foreign owners Source: NCSD/SIS Ägarservice |
18.6 |
Additional Information 2008
STOCKHOLM 5 FEBRUARY 2009
Appendix 1 The Life division
pb_=qêóÖÖ=iáî=áë=çåÉ=çÑ=íÜÉ=äÉ~ÇáåÖ=äáÑÉ=áåëìê~åÅÉ=Öêçìéë=áå= íÜÉ=kçêÇáÅ=êÉÖáçåK=léÉê~íáçåë=ÅçãéêáëÉ=áåëìê~åÅÉ= ëçäìíáçåë=ïáíÜáå=íÜÉ=áåîÉëíãÉåí=~åÇ=ëçÅá~ä=ëÉÅìêáíó=~êÉ~=Ñçê= áåÇáîáÇì~äë=~åÇ=Åçêéçê~íáçåëK=pb_=qêóÖÖ=iáî=éêçîáÇÉë=ÄçíÜ= ìåáíJäáåâÉÇ=~åÇ=íê~Çáíáçå~ä=áåëìê~åÅÉK=qÜÉ=Çáîáëáçå= çéÉê~íÉë=áå=pïÉÇÉåI=aÉåã~êâI=cáåä~åÇI=fêÉä~åÇI=iìñÉãJ ÄçìêÖI=bëíçåá~I=i~íîá~I=iáíÜì~åá~=~åÇ=râê~áåÉK=qÜÉ=Çáîáëáçå= áë=çêÖ~åáëÉÇ=áå=íÜêÉÉ=ÄìëáåÉëë=~êÉ~ëX=pb_=qêóÖÖ=iáî= pïÉÇÉåI=pb_=mÉåëáçå=aÉåã~êâ=~åÇ=pb_=iáÑÉ=C=mÉåëáçå= fåíÉêå~íáçå~äI=ëÉêîáåÖ=ëçãÉ=NKU=ãáääáçå=ÅìëíçãÉêëK=få= lÅíçÄÉê=OMMTI=cçåÇÑ∏êë®âêáåÖë~âíáÉÄçä~ÖÉí=pb_=qêóÖÖ=iáî= ~åÇ=kó~=iáîÑ∏êë®âêáåÖë~âíáÉÄçä~ÖÉí=pb_=qêóÖÖ=iáî=EÒkó~= iáîÒF=ãÉêÖÉÇK=kó~=iáî=ï~ë=çéÉê~íÉÇ=~ÅÅçêÇáåÖ=íç=ãìíì~ä= éêáåÅáéäÉë=~åÇ=åçí=ÅçåëçäáÇ~íÉÇ=áå=pb_=qêóÖÖ=iáîÛë=êÉëìäíëK= ^ÑíÉê=íÜÉ=ãÉêÖÉê=íÜÉ=êÉëìäí=çÑ=íÜáë=ÄìëáåÉëë=Ó=ïáíÜ=êÉëéÉÅí= íç=áåîÉëíãÉåí=áåÅçãÉ=~åÇ=áåëìê~åÅÉ=êáëâ=J=áë=ëíáää=~ääçÅ~íÉÇ= íç=íÜÉ=éçäáÅóÜçäÇÉêëK=eçïÉîÉêI=pb_=qêóÖÖ=iáî=Öì~ê~åíÉÉë= íÜÉ=Åçåíê~Åíì~ä=ÄÉåÉÑáíë=íç=íÜÉ=éçäáÅóÜçäÇÉêë=áå=íÜáë= ÄìëáåÉëëK=cêçã=j~ó=íç=^ìÖìëí=OMMUI=íÜÉ=éçäáÅóÜçäÇÉêë= ïÉêÉ=ÖáîÉå=~å=çÑÑÉê=çÑ=~=íê~åëÑÉê=Ñêçã=kó~=iáî=íç= cçåÇÑ∏êë®âêáåÖë~âíáÉÄçä~ÖÉí=pb_=qêóÖÖ=iáîK=qÜÉ= íê~åëÑÉêêÉÇ=~ãçìåí=íçí~ääÉÇ=pbh=NKOÄåK==
Comments on 2008
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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=ÄìëáåÉëëI=~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 48 per cent by September 2008.
Market position
Sales focus is on unit-linked, which represents 75 per cent of total sales. SEB Trygg Liv is the market leader in Sweden within unit-linked insurance. The market share for the twelve month period to September 2008 was 23.8 per cent (23.6). 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 2008, however, this share decreased to 69 per cent (72). SEB Trygg Liv is the market leader within new business unit-linked occupational pension. The market share for the twelve month period to September 2008 was 19.0 per cent (20.7).
SEB Trygg Liv also offers administration and management of pension foundations. SEB Trygg Liv Pensionstjänst (Pension Service) is the leading Swedish company in this field.
Strong in the private market
In the private market SEB Trygg Liv has a strong position within new business unit-linked endowment insurance. The market share for the twelve month period to September 2008 was 31.3 per cent (28.2).
Sales of private pension savings were relatively stable. SEB's sales in this area consist mainly of IPS - Individual Pension Savings and "Enkla Pensionen", a unit-linked product with a guarantee.
SEB Pension, Denmark
SEB Pension's traditional life insurance operations in Denmark are carried out in a profit-sharing company and therefore included in the division's result. By hedging the investment portfolios, the market and investment risks are controlled in relation to guaranteed commitments to policyholders. Variations in investment returns can be absorbed to a great extent by accumulated buffer funds, called "collective bonus potential".
The result includes an additional accrued income of SEK 353m (SEK 50m at last year end) from the traditional life portfolios in Denmark. The total amount SEK 403m is 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.
SEB Pension's products
SEB Pension sells savings, life, sickness and disability insurance to private individuals and corporate clients through private and corporate sales personnel, insurance mediators and Codan Forsikring (general insurance).
Savings insurance is available both as unit-linked and traditional insurance (in a profit-sharing company). In the private market unit-linked insurance accounts for almost 90 per cent of sales, while more than 50 per cent of the corporate market consists of traditional insurance, since certain collective agreement or companies do not allow unit-linked insurance to be the only component of an occupational pension plan.
The market for non-traditional life insurance, such as unit-linked, keeps expanding. This growth emanates mainly from the corporate segment, via insurance mediators.
Growing occupational pension market
The Danish occupational pension market has grown by approximately 10 per cent annually since year 2000, while the private market has shown virtually zero-growth. SEB Pension's growth rate within occupational pension has been in the range of 15-18 per cent in recent years, and the company has gained market shares accordingly.
SEB Pension's development in the private market has been in line with the general trend. Measured in terms of premium income, SEB Pension is the fourth largest life insurance company in Denmark. The market share in the unit-linked segment was around 10 per cent in 2007.
Distribution
Most insurance companies, including SEB Pension, have developed specialised private pension sales units that primarily concentrate on high-salary groups and customers with qualified advisory requirements.
Insurance mediators and the insurance companies' corporate sales personnel comprise the two dominant sales channels in the occupational pension market.
SEB Life & Pension International
SEB Life & Pension International includes operating subsidiaries in Ireland, Estonia, Latvia, 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. 91 per cent of the sales volume is private and 9 per cent corporate paid.
Profit & loss account
| Q4 | Q3 | Q2 | Q1 | Q4 | Jan - Dec | ||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 | 2007 |
| Income unit-linked | 459 | 469 | 491 | 484 | 553 | 1 903 | 2 142 |
| Income other insurance | 47 | 129 | 317 | 295 | 322 | 788 | 1 208 |
| Other income | 229 | 119 | 62 | 159 | 149 | 569 | 580 |
| Total operating income | 735 | 717 | 870 | 938 | 1 024 | 3 260 | 3 930 |
| Operating expenses | -623 | -647 | -583 | -608 | -623 | -2 461 | -2 306 |
| Other expenses | -1 | -1 | -20 | -2 | 7 | -24 | -12 |
| Change in deferred acquisition costs | 100 | 107 | 41 | 40 | 67 | 288 | 190 |
| Total expenses | -524 | -541 | -562 | -570 | -549 | -2 197 | -2 128 |
| Operating profit 1) | 211 | 176 | 308 | 368 | 475 | 1 063 | 1 802 |
| Change in surplus value, net | 380 | 132 | 227 | 250 | 431 | 989 | 1 273 |
| Business result | 591 | 308 | 535 | 618 | 906 | 2 052 | 3 075 |
| Financial effects due to market fluctuations 2) | -914 | -897 | -196 | -1 819 | -436 | -3 826 | -62 |
| Change in assumptions 2) | -151 | -1 | 38 | -25 | 53 | -139 | 53 |
| Total result | -474 | -590 | 377 | -1 226 | 523 | -1 913 | 3 066 |
| Business equity | 7 500 | 7 500 | 7 500 | 7 500 | 7 500 | 7 500 | 7 500 |
| Return on business equity 3) | |||||||
| based on operating profit, % | 9,9% | 8,3% | 14,5% | 17,3% | 22,3% | 12,5% | 21,1% |
| based on business result, % | 27,7% | 14,5% | 25,1% | 29,0% | 42,5% | 24,1% | 36,1% |
| Expense ratio, % 4) | 8,1 | 9,7 | 8,2 | 8,2 | 8,0 | 8,5 | 8,7 |
| 1) SEB Trygg Liv, Sweden | -14 | 172 | 282 | 222 | 321 | 662 | 1 222 |
| SEB Pension, Denmark | 232 | 34 | 61 | 157 | 111 | 484 | 472 |
| SEB Life & Pension, International | 27 | 1 | 22 | 19 | 51 | 69 | 216 |
| Other including central functions etc | -34 | -31 | -57 | -30 | -8 | -152 | -108 |
| 211 | 176 | 308 | 368 | 475 | 1 063 | 1 802 |
2) Effect on surplus values.
3) Annual basis after 12 per cent tax which reflects the divisions effective tax rate.
4) Operating expenses as percentage of premium income.
Sales volume insurance (weighted)
| Q4 | Q3 | Q2 | Q1 | Q4 | Jan - Dec | ||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 | 2007 |
| Total | 12 939 | 10 686 | 11 884 | 13 314 | 12 018 | 48 823 | 44 339 |
| SEB Trygg Liv Sweden | 7 352 | 6 592 | 6 732 | 7 674 | 6 718 | 28 350 | 26 271 |
| Traditional life and sickness/health insurance | 349 | 340 | 367 | 564 | 510 | 1 620 | 1 791 |
| Unit-linked insurance | 7 003 | 6 252 | 6 365 | 7 110 | 6 208 | 26 730 | 24 480 |
| Private paid | 2 279 | 1 713 | 1 952 | 2 021 | 1 683 | 7 965 | 5 845 |
| Corporate paid | 5 073 | 4 879 | 4 780 | 5 653 | 5 035 | 20 385 | 20 426 |
| SEB Pension Denmark | 4 404 | 3 138 | 3 433 | 3 947 | 3 667 | 14 922 | 13 601 |
| Traditional life and sickness/health insurance | 2 953 | 2 050 | 2 269 | 2 302 | 1 811 | 9 574 | 6 493 |
| Unit-linked insurance | 1 451 | 1 088 | 1 164 | 1 645 | 1 856 | 5 348 | 7 108 |
| Private paid | 696 | 472 | 560 | 885 | 852 | 2 613 | 3 040 |
| Corporate paid | 3 708 | 2 666 | 2 873 | 3 062 | 2 815 | 12 309 | 10 561 |
| SEB Life & Pension International | 1 183 | 956 | 1 719 | 1 693 | 1 633 | 5 551 | 4 467 |
| Traditional life and sickness insurance | 342 | 285 | 212 | 152 | 192 | 991 | 639 |
| Unit-linked insurance | 841 | 671 | 1 507 | 1 541 | 1 441 | 4 560 | 3 828 |
| Private paid | 1 013 | 786 | 1 489 | 1 309 | 1 320 | 4 597 | 3 395 |
| Corporate paid | 170 | 170 | 230 | 384 | 313 | 954 | 1 072 |
Premium income and Assets under management
| Q4 | Q3 | Q2 | Q1 | Q4 | Jan - Dec | ||
|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 | 2007 |
| Premium income | |||||||
| Total | 7 692 | 6 684 | 7 131 | 7 421 | 7 794 | 28 928 | 26 370 |
| SEB Trygg Liv Sweden | 4 085 | 4 247 | 3 750 | 4 048 | 4 098 | 16 130 | 15 370 |
| Traditional life and sickness/health insurance | 866 | 590 | 749 | 755 | 1 002 | 2 960 | 3 280 |
| Unit-linked insurance | 3 219 | 3 657 | 3 001 | 3 293 | 3 096 | 13 170 | 12 090 |
| SEB Pension Denmark | 2 517 | 1 753 | 1 902 | 1 726 | 2 319 | 7 898 | 7 219 |
| Traditional life and sickness insurance | 1 795 | 1 204 | 1 361 | 1 123 | 1 506 | 5 483 | 4 588 |
| Unit-linked insurance | 722 | 549 | 541 | 603 | 813 | 2 415 | 2 631 |
| SEB Life & Pension International | 1 090 | 684 | 1 479 | 1 647 | 1 377 | 4 900 | 3 781 |
| Traditional life and sickness insurance | 109 | 83 | 78 | 76 | 84 | 346 | 261 |
| Unit-linked insurance | 981 | 601 | 1 401 | 1 571 | 1 293 | 4 554 | 3 520 |
| Assets under management, net assets * | |||||||
| Total | 354 400 | 364 400 | 376 300 | 384 300 | 408 400 | 354 400 | 408 400 |
| SEB Trygg Liv Sweden | 242 000 | 260 300 | 274 800 | 281 400 | 303 600 | 242 000 | 303 600 |
| Traditional life and sickness/health insurance | 151 700 | 165 100 | 174 900 | 181 700 | 192 700 | 151 700 | 192 700 |
| Unit-linked insurance | 90 300 | 95 200 | 99 900 | 99 700 | 110 900 | 90 300 | 110 900 |
| SEB Pension Denmark | 95 900 | 86 500 | 83 100 | 85 100 | 87 300 | 95 900 | 87 300 |
| Traditional life and sickness insurance | 86 900 | 77 800 | 74 500 | 76 800 | 79 000 | 86 900 | 79 000 |
| Unit-linked insurance | 9 000 | 8 700 | 8 600 | 8 300 | 8 300 | 9 000 | 8 300 |
| SEB Life & Pension International | 16 500 | 17 600 | 18 400 | 17 800 | 17 500 | 16 500 | 17 500 |
| Traditional life and sickness insurance | 700 | 600 | 600 | 500 | 500 | 700 | 500 |
| Unit-linked insurance | 15 800 | 17 000 | 17 800 | 17 300 | 17 000 | 15 800 | 17 000 |
* rounded to whole 100 millions
Surplus value accounting Traditional insurance Denmark is not included Traditional
| Denmark* | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Q4 2008 |
Q3 2008 |
Q2 2008 |
Q1 2008 |
Q4 2007 |
Jan - Dec 2008 |
2007 | Jan-Dec 2008 |
| Surplus values, opening balance Adjustment opening balance 1) |
12 160 1 |
12 902 | 12 896 -69 |
14 496 | 14 085 334 |
14 496 -68 |
12 872 334 |
958 |
| Present value of new sales 2) Return/realised value on policies from previous periods Actual outcome compared to assumptions 3) |
267 -81 294 |
473 -79 -155 |
399 -72 -59 |
449 -71 -88 |
576 -127 49 |
1 588 -303 -8 |
1 773 -335 25 |
155 -163 99 |
| Change in surplus values ongoing business, gross | 480 | 239 | 268 | 290 | 498 | 1 277 | 1 463 | 91 |
| Capitalisation of acquisition costs for the period Amortisation of capitalised acquisition costs |
-200 100 |
-244 137 |
-175 134 |
-188 148 |
-196 129 |
-807 519 |
-683 493 |
|
| Change in surplus values ongoing business, net 4) | 380 | 132 | 227 | 250 | 431 | 989 | 1 273 | 91 |
| Financial effects due to short term market fluctuations 5) Change in assumptions 6) |
-914 -151 |
-897 -1 |
-196 38 |
-1 819 -25 |
-436 53 |
-3 826 -139 |
-62 53 |
-195 106 |
| Total change in surplus values | -685 | -766 | 69 | -1 594 | 48 | -2 976 | 1 264 | 2 |
| Exchange rate differences etc | 73 | 24 | 6 | -6 | 29 | 97 | 26 | 1 51 |
| Surplus values, closing balance 7) | 11 549 | 12 160 | 12 902 | 12 896 | 14 496 | 11 549 | 14 496 | 1 111 |
* Based on preliminary calculations - not included in the total figures for the division.
1) The Baltic countries are included from Q4 2007. Q2 2008 includes effects from an adjustment of the calculation method (mainly Denmark).
2) Sales defined as new contracts and extra premiums in existing contracts.
3) The reported actual outcome of contracts signed can be placed in relation to the operative assumptions that were made. Thus, the value of the deviations can be estimated. The most important components consist of extensions of contracts as well as cancellations. However, the actual income and administrative expenses are included in full in the operating result.
4) Deferred acquisition costs are capitalised in the accounts and amortised according to plan. The reported change in surplus values is therefore adjusted by the net result of the capitalisation and amortisation during the period.
5) Assumed unit growth is 5.5 per cent gross (before fees and taxes). Actual growth results in positive or negative financial effects.
6) 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. In 2007 the major positive effect was caused by adjustments of the administrative costs per policy.
7) 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 3,351m at December 31, 2008).
| Most important assumptions (Swedish customer base - which represent 94 per cent of the surplus value), per cent. | |||
|---|---|---|---|
| Discount rate | 7.5 | 8.0 | |
| Surrender of endowment insurance contracts: contracts signed within | 1 / 10 / |
1 / 10 / | |
| 1 year / 2-4 years / 5 years / thereafter | 20 / 11 | 10 / 12 | |
| Lapse rate of regular premiums, unit-linked | 11 | 10 | |
| Growth in fund units, gross before fees and taxes | 5.5 | 6.0 | |
| Inflation CPI / Inflation expenses | 2 / 3 | 2 / 3 | |
| Expected return on solvency margin | 4 | 4 | |
| Right to transfer policy, unit-linked | 1 | 1 | |
| Mortality | The Group's experience | ||
| Sensitivity to changes in assumptions (total division). | |||
| Change in discount rate | +1 per cent | -1 353 | -1 452 |
| -1 per cent | 1 559 | 1 707 | |
| Change in value growth of investment assets | +1 per cent | 1 360 | 1 496 |
| -1 per cent | -1 200 | -1 315 |
Surplus value accounting
Surplus values
pìêéäìë=î~äìÉë=~êÉ=íÜÉ=éêÉëÉåí=î~äìÉë=çÑ=ÑìíìêÉ=éêçÑáíë=Ñêçã= ïêáííÉå=áåëìê~åÅÉ=éçäáÅáÉëK=qÜÉó=~êÉ=Å~äÅìä~íÉÇ=íç=ÄÉííÉê= Éî~äì~íÉ=íÜÉ=éêçÑáí~Äáäáíó=çÑ=~=äáÑÉ=áåëìê~åÅÉ=ÄìëáåÉëë=ëáåÅÉ= ~å=áåëìê~åÅÉ=éçäáÅó=çÑíÉå=Ü~ë=~=äçåÖ=Çìê~íáçåK=fåÅçãÉ= ~ÅÅêìÉë=êÉÖìä~êäó=íÜêçìÖÜçìí=íÜÉ=Çìê~íáçå=çÑ=íÜÉ=éçäáÅóK=
`çëíëI=çå=íÜÉ=çíÜÉê=Ü~åÇI=ã~áåäó=~êáëÉ=~í=íÜÉ=éçáåí=çÑ=ë~äÉI= ïÜáÅÜ=äÉ~Çë=íç=~å=áãÄ~ä~åÅÉ=ÄÉíïÉÉå=áåÅçãÉ=~åÇ=Åçëíë=~í= íÜÉ=íáãÉ=ïÜÉå=~=éçäáÅó=áë=ëáÖåÉÇK==
qÜÉ=êÉéçêíáåÖ=áë=~ÅÅçêÇáåÖ=íç=áåíÉêå~íáçå~ä=éê~ÅíáÅÉ=~åÇ= áë=êÉîáÉïÉÇ=Äó=~å=ÉñíÉêå~ä=é~êíó=~ååì~ääóK=pìêéäìë=î~äìÉë=
are not consolidated in the SEB Group accounts. Surplus values relating to the traditional business in Denmark is not yet 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 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.
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 | Jan-Dec 2008 | Jan-Dec 2007 | Jan-Dec 2006 | Jan-Dec 2005 |
|---|---|---|---|---|
| Sales volume weighted (regular $+$ single/10) | 3858 | 3689 | 3 3 4 5 | 3678 |
| Present value of new sales | 1 5 9 8 | 1 7 7 5 | 1788 | 1924 |
| Sales expenses | $-879$ | $-901$ | $-970$ | $-1116$ |
| Profit from new business | 719 | 874 | 818 | 808 |
| Sales margin new business | 18,6% | 23,7% | 24.5% | 22,0% |
2007 and later is calculated for the total division. 2005 - 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 Dec 2008 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2005 |
|---|---|---|---|---|
| Equity $1$ | 8827 | 8836 | 8450 | 7 696 |
| Surplus values | 11 549 | 14 4 9 6 | 12872 | 10 755 |
| 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 Exposure
| TOTAL | ||||
|---|---|---|---|---|
| 31 Dec 2008 | % | 31 Dec 2007 | % | |
| Banks | 285.6 | 14.8 | 247.6 | 16.0 |
| Corporate | 781.7 | 40.4 | 570.5 | 36.8 |
| Finance and insurance | 93.2 | 4.8 | 48.7 | 3.1 |
| Wholesale and retail | 86.7 | 4.5 | 70.5 | 4.5 |
| Transportation | 42.8 | 2.2 | 31.9 | 2.1 |
| Shipping | 38.2 | 2.0 | 21.5 | 1.4 |
| Business and Household Services | 148.6 | 7.7 | 117.0 | 7.5 |
| Construction | 22.4 | 1.2 | 19.7 | 1.3 |
| Manufacturing | 220.9 | 11.4 | 157.5 | 10.2 |
| Agriculture, forestry and fishing | 9.7 | 0.5 | 8.2 | 0.5 |
| Mining and quarrying | 20.0 | 1.0 | 10.5 | 0.7 |
| Electricity, gas and water supply | 48.8 | 2.5 | 32.7 | 2.1 |
| Other | 50.4 | 2.6 | 52.3 | 3.4 |
| Property Management | 262.3 | 13.6 | 212.0 | 13.7 |
| Public Administration | 118.9 | 6.1 | 87.6 | 5.6 |
| Households | 485.7 | 25.1 | 434.0 | 28.0 |
| Housing loans | 370.7 | 19.2 | 330.5 | 21.3 |
| Other | 115.0 | 5.9 | 103.5 | 6.7 |
| Total credit portfolio | 1 934.2 | 100 | 1 551.7 | 100.0 |
| Repos | 102.4 | 227.6 | ||
| Credit institutions | 42.2 | 97.2 | ||
| General public | 60.2 | 130.4 | ||
| Bonds and other interest bearing securities* | 446.7 | 523.3 |
*including Bonds reclassified from securities Securities held for trading and Available-for-sale financial assets to Loans.
Appendix 3a Capital base of the SEB financial group of undertakings
| 31 Dec | 31 Dec | |
|---|---|---|
| SEKm | 2008 | 2007 |
| Total equity according to balance sheet (1) | 83 729 | 76 719 |
| ./. Proposed dividend (excl repurchased shares) | 0 | -4 442 |
| ./. Deductions for investments outside the financial group of undertakings (2) | -76 | -81 |
| ./. Other deductions outside the financial group of undertakings (3) | -2 878 | -2 975 |
| = Total equity in the capital adequacy | 80 775 | 69 221 |
| Tier I capital contribution | 12 371 | 10 907 |
| Adjustment for hedge contracts (4) | -1 395 | 237 |
| Net provisioning amount for IRB-reported credit exposures (5) | -1 133 | -235 |
| Unrealised value changes on available-for-sale financial assets (6) | 3 062 | 572 |
| ./. Goodwill (7) | -7 305 | -6 079 |
| ./. Other intangible assets | -2 090 | -1 135 |
| ./. Deferred tax assets | -1 822 | -786 |
| = Tier I capital | 82 463 | 72 702 |
| Dated subordinated debt | 21 552 | 18 670 |
| ./. Deduction for remaining maturity | -2 242 | -1 414 |
| Perpetual subordinated debt | 14 421 | 14 256 |
| Net provisioning amount for IRB-reported credit exposures (5) | -1 133 | -235 |
| Unrealised gains on available-for-sale financial assets (6) | 1 221 | 451 |
| ./. Deductions for investments outside the financial group of undertakings (2) | -76 | -81 |
| = Tier II capital | 33 743 | 31 647 |
| ./. Deductions for investments in insurance companies (8) | -10 620 | -10 592 |
| ./. Deduction for pension assets in excess of related liabilities (9) | -863 | -784 |
| = Capital base | 104 723 | 92 973 |
To note:
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Appendix 3b Capital requirements for the SEB financial group of undertakings
aìêáåÖ=OMMT=pb_=ìëÉÇ=~=ãáñÉÇ=~ééêç~ÅÜ=ïÜÉêÉ=Å~éáí~ä=êÉèìáêÉãÉåíë=Ñçê=pb_=^_I=pb_=^d=~åÇ=pb_=dóääÉåÄÉêÖ=ïÉêÉ=êÉéçêíÉÇ= ~ÅÅçêÇáåÖ=íç=_~ëÉä=ffI=ïÜáäÉ=_~ëÉä=f=êÉéçêíáåÖ=ï~ë=ìëÉÇ=Ñçê=êÉã~áåáåÖ=Åçãé~åáÉë=áå=íÜÉ=dêçìéK=cêçã=OMMU=~ää=pb_Ûë=êÉéçêíáåÖ= Ñçääçïë=_~ëÉä=ffK
| Capital requirements | 31 Dec | 31 Dec |
|---|---|---|
| SEK m | 2008 | 2007 |
| Credit risk, IRB reported capital requirements | ||
| Institutions | 4 472 | 4 506 |
| Corporates (1) | 37 158 | 21 420 |
| Securitisation positions | 572 | 174 |
| Retail mortgages | 4 627 | 3 409 |
| Other exposure classes | 559 | |
| Total for credit risk, IRB approach | 47 388 | 29 509 |
| Other Basel II reported capital requirements | ||
| Credit risk, Standardised approach (2) | 11 610 | 6 227 |
| Operational risk, Basic Indicator approach | 3 723 | |
| Operational risk, Advanced Measurement approach | 3 080 | |
| Foreign exchange rate risk | 570 | 580 |
| Trading book risks | 2 775 | 4 010 |
| Total, reporting according to Basel II | 65 423 | 44 049 |
| Reporting according to Basel I | ||
| Credit risk | 14 859 | |
| Foreign exchange rate risk | 0 | |
| Trading book risks | 41 | |
| Total, reporting according to Basel I | 14 900 | |
| Summary | ||
| Credit risk | 58 998 | 50 595 |
| Operational risk | 3 080 | 3 723 |
| Market risk | 3 345 | 4 631 |
| Total | 65 423 | 58 949 |
| Adjustment for flooring rules | ||
| Additional requirement according to transitional flooring (3) | 13 460 | 8 409 |
| Total reported | 78 883 | 67 358 |
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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 Dec | 31 Dec | |
|---|---|---|
| Capital adequacy | 2008 | 2007 |
| Capital resources | ||
| Tier I capital | 82 4 63 | 72 702 |
| Capital base | 104 723 | 92 973 |
| Capital adequacy without transitional floor (Basel II) | ||
| Capital requirement | 65 4 23 | 58 949 |
| Expressed as Risk weighted assets | 817 788 | 736 864 |
| Tier I capital ratio | 10.1% | 9,9% |
| Total capital ratio | 12,8% | 12,6% |
| Capital adequacy quotient (capital base / capital requirement) | 1,60 | 1,58 |
| Capital adequacy as officially reported with transitional rules (Basel II) | ||
| Transition floor applied | 90% | 95% |
| Capital requirement | 78 883 | 67 358 |
| Expressed as Risk weighted assets | 986 034 | 841 974 |
| Tier I capital ratio | 8,4% | 8,6% |
| Total capital ratio | 10.6% | 11,0% |
| Capital adequacy quotient (capital base / capital requirement) | 1,33 | 1,38 |
| Capital adequacy with risk weighting according to Basel I | ||
| Capital requirement | 90 164 | 71 398 |
| Expressed as Risk weighted assets | 1 127 054 | 892 473 |
| Tier I capital ratio | 7.3% | 8,1% |
| Total capital ratio | 9,3% | 10,4% |
| Capital adequacy quotient (capital base / capital requirement) | 1.16 | 1,30 |
The following changes hold compared with 2007 when only SEB AB, SEB AG and SEB Gyllenberg were reported according to Basel II:
- IRB reporting of exposures that previously followed Basel I. This mainly relates to retail, corporate and interbank $\circ$ exposures in Latvia, Lithuania and (from the third quarter of 2008) Estonia.
- Basel II Standardised reporting of other credit exposures that previously followed Basel I. $\circ$
- Operational risk reporting extended to the entire Group. After supervisory approval, the Group from the second quarter $\circ$ of 2008 reports the capital requirement for operational risk according to the Advance Measurement Approaches. Please note that the SEK 3 723bn reported at year end 2007 related to a subset of the SEB Group only; the currently reported number 3 080 can better be compared with the 5 428 reported (following the Basic Indicator approach) at the end of the first quarter 2008.
Overall Basel I RWA increased by 26 per cent over the year while Basel II RWA (before the effect of regulatory floors) increased with 11 per cent. Considering also the lowering of the regulatory floor from 95 per cent of Basel I (2007) to 90 per cent (2008), reported RWA increased from SEK 842bn to SEK 986bn over the year 2008.
Appendix 3 c continued
The following table exposes average risk weights (RWA divided by EAD, Exposure At Default) for IRB reported exposures classes. Changes over the year 2008 reflect both IRB reporting of new portfolios as well as changes in credit quality. Considering what was IRB reported already 2007, the average risk weight for corporate exposures at the reporting date is almost the same as one year ago. This is the net effect of an inflow of credits for core clients with strong ratings, and a certain downward bias in risk class migration.
| RB reported credit exposures | 31 Dec | 31 Dec |
|---|---|---|
| Average risk weight | 2008 | 2007 |
| Institutions | 16,3% | 15.1% |
| Corporates | 56,2% | 53,4% |
| Securitisation positions | 10.6% | 7.4% |
| Retail mortgages | 16,5% | 16.1% |
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 4 Risk and Capital Management
To best use the capital of the Group, and to assess the overall capital need, SEB uses an economic capital framework based on a "Capital at Risk" model. CAR gives a coherent quantification of the risks that the operations of the Group imply at each given point in time. It is based on statistical probability calculations of the Group's credit, market, insurance, operational and business risks.
The Group's total economic capital was SEK 76.6bn $(66.6)$ at the end of the year. The increase is mainly derived from expanding business volumes. Out of the total, credit risk constituted the larger portion with 62 per cent. Market, insurance, operational and business risk contribute with 5. 17, 8 and 8 per cent respectively. The Group's capital policy prescribes the allowed economic capital level, relative to shareholders' equity and other loss absorption items.
The Group's risk taking in trading operations is primarily measured by value at risk, VaR. The Group has chosen a level of 99 per cent probability and a ten-day period. The table below shows the risk exposures by risk type. The turbulence in the financial markets continued to cause high volatilities throughout the year. It was somewhat calmer during November but then again worsened in December. Even though the exposures in the trading book were reduced, the VaR figures rose due to increased market volatility. Consequently, average trading VaR during 2008 increased by 65 per cent from 2007.
| SEKm | Min | Max | 31 Dec 2008 | Average 2008 | Average 2007 |
|---|---|---|---|---|---|
| Interest rate risk | 57 | 282 | 203 | 146 | 64 |
| Foreign exchange rate risk | 165 | 132 | 34 | 21 | |
| Equity price risk | 18 | 230 | 41 | 75 | 75 |
| Diversification | -111 | $-104$ | $-68$ | ||
| Total | 69 | 308 | 265 | 151 | 92 |
Appendix 5 Profit and loss accounts by division, business area and quarter
The SEB Group
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 3,767 | 3,939 | 3,917 | 4,375 | 4,223 | 4,421 | 4,553 | 5,513 | 15,998 | 18,710 |
| Net fee and commission income | 4,277 | 4,544 | 4,101 | 4,129 | 3,801 | 3,909 | 3,754 | 3,790 | 17,051 | 15,254 |
| Net financial income | 1,311 | 1,345 | 163 | 420 | -161 | 1,161 | 247 | 1,723 | 3,239 | 2,970 |
| Net life insurance income | 743 | 642 | 782 | 766 | 713 | 642 | 504 | 516 | 2,933 | 2,375 |
| Net other income | 95 | 249 | 530 | 345 | 226 | 270 | 163 | 1,172 | 1,219 | 1,831 |
| Total operating income | 10,193 | 10,719 | 9,493 | 10,035 | 8,802 | 10,403 | 9,221 | 12,714 | 40,440 | 41,140 |
| Staff costs | -3,796 | -3,774 | -3,564 | -3,787 | -3,899 | -3,993 | -3,752 | -4,597 | -14,921 | -16,241 |
| Other expenses | -1,678 | -1,768 | -1,691 | -1,782 | -1,756 | -2,098 | -1,820 | -1,968 | -6,919 | -7,642 |
| Depreciation of assets | -328 | -342 | -325 | -359 | -372 | -354 | -398 | -400 | -1,354 | -1,524 |
| Total operating expenses | -5,802 | -5,884 | -5,580 | -5,928 | -6,027 | -6,445 | -5,970 | -6,965 | -23,194 | -25,407 |
| Profit before credit losses etc | 4,391 | 4,835 | 3,913 | 4,107 | 2,775 | 3,958 | 3,251 | 5,749 | 17,246 | 15,733 |
| Gains less losses from assets | -1 | 2 | 787 | 3 | 1 | 2 | 788 | 6 | ||
| Net credit losses including change in value | ||||||||||
| of seized assets | -234 | -280 | -189 | -313 | -368 | -452 | -725 | -1,723 | -1,016 | -3,268 |
| Operating profit | 4,157 | 4,554 | 3,726 | 4,581 | 2,410 | 3,507 | 2,526 | 4,028 | 17,018 | 12,471 |
| Income tax expense | -895 | -1,032 | -625 | -824 | -562 | -699 | -641 | -519 | -3,376 | -2,421 |
| Net profit continued operations | 3,262 | 3,522 | 3,101 | 3,757 | 1,848 | 2,808 | 1,885 | 3,509 | 13,642 | 10,050 |
| Discontinued operations | 1 | 1 | -2 | |||||||
| Net profit | 3,262 | 3,522 | 3,101 | 3,757 | 1,848 | 2,809 | 1,886 | 3,507 | 13,642 | 10,050 |
| Attributable to minority interests | 4 | 8 | 7 | 5 | 1 | 3 | 4 | 1 | 24 | 9 |
| Attributable to equity holders | 3,258 | 3,514 | 3,094 | 3,752 | 1,847 | 2,806 | 1,882 | 3,506 | 13,618 | 10,041 |
Merchant Banking
| Total | |
|---|---|
| ------- | -- |
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 1,328 | 1,377 | 1,407 | 1,498 | 1,525 | 1,538 | 1,738 | 2,613 | 5,610 | 7,414 |
| Net fee and commission income | 1,561 | 1,659 | 1,364 | 1,361 | 1,241 | 1,470 | 1,374 | 1,163 | 5,945 | 5,248 |
| Net financial income | 1,164 | 1,169 | 31 | 249 | 119 | 936 | 757 | 1,813 | 2,613 | 3,625 |
| Net other income | 51 | 183 | 411 | 194 | 44 | 72 | 83 | 342 | 839 | 541 |
| Total operating income | 4,104 | 4,388 | 3,213 | 3,302 | 2,929 | 4,016 | 3,952 | 5,931 | 15,007 | 16,828 |
| Staff costs | -1,098 | -1,172 | -921 | -1,055 | -964 | -1,105 | -867 | -954 | -4,246 | -3,890 |
| Other expenses | -857 | -877 | -887 | -868 | -909 | -937 | -830 | -918 | -3,489 | -3,594 |
| Depreciation of assets | -23 | -17 | -19 | -26 | -22 | -21 | -22 | -30 | -85 | -95 |
| Total operating expenses | -1,978 | -2,066 | -1,827 | -1,949 | -1,895 | -2,063 | -1,719 | -1,902 | -7,820 | -7,579 |
| Profit before credit losses etc | 2,126 | 2,322 | 1,386 | 1,353 | 1,034 | 1,953 | 2,233 | 4,029 | 7,187 | 9,249 |
| Gains less losses from assets | 2 | 3 | 1 | 1 | 2 | 5 | ||||
| Net credit losses | -109 | -115 | -33 | -69 | -29 | -27 | -255 | -593 | -326 | -904 |
| Operating profit | 2,017 | 2,207 | 1,353 | 1,286 | 1,008 | 1,926 | 1,979 | 3,437 | 6,863 | 8,350 |
Merchant Banking
Trading and Capital Markets
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 144 | 100 | 163 | 217 | 290 | 253 | 315 | 976 | 624 | 1,834 |
| Net fee and commission income | 636 | 718 | 627 | 655 | 528 | 782 | 594 | 372 | 2,636 | 2,276 |
| Net financial income | 1,155 | 1,156 | -15 | 186 | 80 | 889 | 873 | 2,003 | 2,482 | 3,845 |
| Net other income | 12 | 27 | 283 | 14 | 10 | 14 | 8 | -48 | 336 | -16 |
| Total operating income | 1,947 | 2,001 | 1,058 | 1,072 | 908 | 1,938 | 1,790 | 3,303 | 6,078 | 7,939 |
| Staff costs | -499 | -547 | -405 | -480 | -430 | -508 | -380 | -422 | -1,931 | -1,740 |
| Other expenses | -383 | -384 | -384 | -387 | -414 | -414 | -369 | -432 | -1,538 | -1,629 |
| Depreciation of assets | -7 | -6 | -6 | -9 | -6 | -7 | -8 | -10 | -28 | -31 |
| Total operating expenses | -889 | -937 | -795 | -876 | -850 | -929 | -757 | -864 | -3,497 | -3,400 |
| Profit before credit losses etc | 1,058 | 1,064 | 263 | 196 | 58 | 1,009 | 1,033 | 2,439 | 2,581 | 4,539 |
| Gains less losses from assets | -1 | -1 | -1 | -1 | ||||||
| Net credit losses | -22 | -25 | -38 | -20 | -13 | -68 | -196 | -85 | -297 | |
| Operating profit | 1,036 | 1,039 | 224 | 196 | 37 | 996 | 965 | 2,243 | 2,495 | 4,241 |
Merchant Banking
| Corporate Banking | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Q 1 2008 |
Q 2 2008 |
Q 3 2008 |
Q 4 2008 |
Full year 2007 |
Full year 2008 |
| Net interest income | 849 | 884 | 856 | 918 | 871 | 884 | 1,031 | 1,269 | 3,507 | 4,055 |
| Net fee and commission income | 528 | 532 | 347 | 303 | 316 | 279 | 395 | 402 | 1,710 | 1,392 |
| Net financial income | -14 | -9 | 22 | 37 | 22 | 29 | -126 | -207 | 36 | -282 |
| Net other income | 34 | 147 | 123 | 170 | 28 | 56 | 73 | 387 | 474 | 544 |
| Total operating income | 1,397 | 1,554 | 1,348 | 1,428 | 1,237 | 1,248 | 1,373 | 1,851 | 5,727 | 5,709 |
| Staff costs | -501 | -518 | -421 | -464 | -427 | -482 | -384 | -420 | -1,904 | -1,713 |
| Other expenses | -160 | -165 | -188 | -121 | -170 | -185 | -152 | -158 | -634 | -665 |
| Depreciation of assets | -14 | -9 | -12 | -14 | -13 | -13 | -13 | -16 | -49 | -55 |
| Total operating expenses | -675 | -692 | -621 | -599 | -610 | -680 | -549 | -594 | -2,587 | -2,433 |
| Profit before credit losses etc | 722 | 862 | 727 | 829 | 627 | 568 | 824 | 1,257 | 3,140 | 3,276 |
| Gains less losses from assets | 1 | 2 | 4 | 1 | 3 | 5 | ||||
| Net credit losses | -87 | -87 | 7 | -69 | -9 | -14 | -180 | -397 | -236 | -600 |
| Operating profit | 635 | 775 | 735 | 762 | 622 | 554 | 645 | 860 | 2,907 | 2,681 |
Merchant Banking
Global Transaction Services
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 335 | 393 | 388 | 363 | 364 | 400 | 394 | 368 | 1,479 | 1,526 |
| Net fee and commission income | 397 | 409 | 390 | 403 | 397 | 409 | 384 | 389 | 1,599 | 1,579 |
| Net financial income | 23 | 22 | 25 | 25 | 17 | 18 | 10 | 18 | 95 | 63 |
| Net other income | 5 | 8 | 5 | 10 | 5 | 3 | 3 | 2 | 28 | 13 |
| Total operating income | 760 | 832 | 808 | 801 | 783 | 830 | 791 | 777 | 3,201 | 3,181 |
| Staff costs | -98 | -107 | -96 | -110 | -106 | -115 | -105 | -111 | -411 | -437 |
| Other expenses | -314 | -328 | -315 | -360 | -325 | -338 | -308 | -330 | -1,317 | -1,301 |
| Depreciation of assets | -2 | -2 | -1 | -3 | -3 | -1 | -2 | -2 | -8 | -8 |
| Total operating expenses | -414 | -437 | -412 | -473 | -434 | -454 | -415 | -443 | -1,736 | -1,746 |
| Profit before credit losses etc | 346 | 395 | 396 | 328 | 349 | 376 | 376 | 334 | 1,465 | 1,435 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -2 | -2 | -7 | -4 | -7 | |||||
| Operating profit | 346 | 393 | 394 | 328 | 349 | 376 | 369 | 334 | 1,461 | 1,428 |
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Q 1 2008 |
Q 2 2008 |
Q 3 2008 |
Q 4 2008 |
Full year 2007 |
Full year 2008 |
| Net interest income | 2,276 | 2,429 | 2,444 | 2,549 | 2,551 | 2,593 | 2,755 | 2,851 | 9,698 | 10,750 |
| Net fee and commission income | 1,523 | 1,549 | 1,510 | 1,637 | 1,431 | 1,430 | 1,372 | 1,408 | 6,219 | 5,641 |
| Net financial income | 92 | 114 | 106 | 170 | 95 | 102 | 84 | 116 | 482 | 397 |
| Net other income | 22 | 35 | 38 | 64 | 23 | 85 | 26 | 110 | 159 | 244 |
| Total operating income | 3,913 | 4,127 | 4,098 | 4,420 | 4,100 | 4,210 | 4,237 | 4,485 | 16,558 | 17,032 |
| Staff costs | -1,018 | -1,045 | -1,087 | -1,085 | -1,154 | -1,168 | -1,148 | -1,162 | -4,235 | -4,632 |
| Other expenses | -1,295 | -1,324 | -1,253 | -1,414 | -1,304 | -1,348 | -1,326 | -1,471 | -5,286 | -5,449 |
| Depreciation of assets | -75 | -87 | -78 | -78 | -77 | -76 | -76 | -82 | -318 | -311 |
| Total operating expenses | -2,388 | -2,456 | -2,418 | -2,577 | -2,535 | -2,592 | -2,550 | -2,715 | -9,839 | -10,392 |
| Profit before credit losses etc | 1,525 | 1,671 | 1,680 | 1,843 | 1,565 | 1,618 | 1,687 | 1,770 | 6,719 | 6,640 |
| Gains less losses from assets | 2 | 2 | 2 | 4 | 2 | |||||
| Net credit losses | -122 | -161 | -146 | -286 | -311 | -440 | -516 | -1,113 | -715 | -2,380 |
| Operating profit | 1,403 | 1,510 | 1,536 | 1,559 | 1,254 | 1,178 | 1,171 | 659 | 6,008 | 4,262 |
Retail Banking
Retail Sweden
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 1,007 | 1,005 | 1,018 | 1,076 | 1,085 | 1,135 | 1,233 | 1,273 | 4,106 | 4,726 |
| Net fee and commission income | 462 | 415 | 409 | 460 | 393 | 364 | 349 | 384 | 1,746 | 1,490 |
| Net financial income | 56 | 77 | 65 | 105 | 57 | 69 | 50 | 74 | 303 | 250 |
| Net other income | 12 | 13 | 7 | 9 | 10 | -1 | 5 | 4 | 41 | 1 8 |
| Total operating income | 1,537 | 1,510 | 1,499 | 1,650 | 1,545 | 1,567 | 1,637 | 1,735 | 6,196 | 6,484 |
| Staff costs | -390 | -403 | -410 | -403 | -450 | -448 | -445 | -437 | -1,606 | -1,780 |
| Other expenses | -518 | -527 | -494 | -554 | -509 | -536 | -492 | -564 | -2,093 | -2,101 |
| Depreciation of assets | -2 | -13 | -3 | -3 | -3 | -4 | -12 | -16 | -21 | -35 |
| Total operating expenses | -910 | -943 | -907 | -960 | -962 | -988 | -949 | -1,017 | -3,720 | -3,916 |
| Profit before credit losses etc | 627 | 567 | 592 | 690 | 583 | 579 | 688 | 718 | 2,476 | 2,568 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -25 | -19 | -22 | 2 | -10 | -23 | -53 | -105 | -64 | -191 |
| Operating profit | 602 | 548 | 570 | 692 | 573 | 556 | 635 | 613 | 2,412 | 2,377 |
| Retail Estonia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Q 1 2008 |
Q 2 2008 |
Q 3 2008 |
Q 4 2008 |
Full year 2007 |
Full year 2008 |
| Net interest income | 204 | 218 | 226 | 223 | 211 | 224 | 250 | 254 | 871 | 939 |
| Net fee and commission income | 82 | 91 | 88 | 91 | 86 | 90 | 79 | 76 | 352 | 331 |
| Net financial income | 13 | 14 | 15 | 22 | 9 | 8 | 9 | 13 | 64 | 39 |
| Net other income | 5 | -2 | 18 | 3 | 61 | 2 | 24 | 21 | 9 0 |
|
| Total operating income | 299 | 328 | 327 | 354 | 309 | 383 | 340 | 367 | 1,308 | 1,399 |
| Staff costs | -48 | -54 | -58 | -60 | -59 | -53 | -57 | -58 | -220 | -227 |
| Other expenses | -56 | -59 | -56 | -65 | -72 | -90 | -80 | -88 | -236 | -330 |
| Depreciation of assets | -4 | -5 | -5 | -4 | -5 | -5 | -5 | -5 | -18 | -20 |
| Total operating expenses | -108 | -118 | -119 | -129 | -136 | -148 | -142 | -151 | -474 | -577 |
| Profit before credit losses etc | 191 | 210 | 208 | 225 | 173 | 235 | 198 | 216 | 834 | 822 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -12 | -17 | -32 | -153 | -166 | -202 | -60 | -81 | -214 | -509 |
| Operating profit | 179 | 193 | 176 | 72 | 7 | 33 | 138 | 135 | 620 | 313 |
Retail Banking
Retail Latvia
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 190 | 278 | 258 | 265 | 273 | 241 | 240 | 269 | 991 | 1,023 |
| Net fee and commission income | 74 | 89 | 86 | 89 | 44 | 48 | 49 | 60 | 338 | 201 |
| Net financial income | 6 | 7 | 11 | 8 | 10 | 7 | 10 | 12 | 32 | 39 |
| Net other income | -5 | -8 | -5 | -6 | 3 | 1 | 7 | -24 | 11 | |
| Total operating income | 265 | 366 | 350 | 356 | 327 | 299 | 300 | 348 | 1,337 | 1,274 |
| Staff costs | -43 | -51 | -51 | -58 | -54 | -59 | -50 | -61 | -203 | -224 |
| Other expenses | -73 | -74 | -74 | -86 | -87 | -97 | -89 | -91 | -307 | -364 |
| Depreciation of assets | -7 | -8 | -8 | -9 | -9 | -8 | -9 | -10 | -32 | -36 |
| Total operating expenses | -123 | -133 | -133 | -153 | -150 | -164 | -148 | -162 | -542 | -624 |
| Profit before credit losses etc | 142 | 233 | 217 | 203 | 177 | 135 | 152 | 186 | 795 | 650 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -8 | -31 | -28 | -45 | -38 | -47 | -159 | -251 | -112 | -495 |
| Operating profit | 134 | 202 | 189 | 158 | 139 | 88 | -7 | -65 | 683 | 155 |
Retail Lithuania
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 315 | 380 | 388 | 433 | 412 | 381 | 400 | 399 | 1,516 | 1,592 |
| Net fee and commission income | 88 | 108 | 110 | 112 | 91 | 110 | 109 | 108 | 418 | 418 |
| Net financial income | 15 | 16 | 16 | 16 | 17 | 16 | 18 | 20 | 63 | 71 |
| Net other income | 8 | 8 | 3 | 12 | 8 | 3 | 10 | 30 | 31 | 51 |
| Total operating income | 426 | 512 | 517 | 573 | 528 | 510 | 537 | 557 | 2,028 | 2,132 |
| Staff costs | -74 | -70 | -75 | -86 | -85 | -95 | -97 | -69 | -305 | -346 |
| Other expenses | -87 | -99 | -94 | -123 | -108 | -114 | -118 | -137 | -403 | -477 |
| Depreciation of assets | -9 | -9 | -10 | -10 | -8 | -8 | -9 | -9 | -38 | -34 |
| Total operating expenses | -170 | -178 | -179 | -219 | -201 | -217 | -224 | -215 | -746 | -857 |
| Profit before credit losses etc | 256 | 334 | 338 | 354 | 327 | 293 | 313 | 342 | 1,282 | 1,275 |
| Gains less losses from assets | 2 | 2 | ||||||||
| Net credit losses | -15 | -44 | -32 | -34 | -19 | -32 | -135 | -540 | -125 | -726 |
| Operating profit | 241 | 290 | 308 | 320 | 308 | 261 | 178 | -198 | 1,159 | 549 |
Retail Banking
| Retail Germany | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 473 | 471 | 469 | 484 | 480 | 469 | 500 | 514 | 1,897 | 1,963 |
| Net fee and commission income | 374 | 350 | 350 | 330 | 340 | 307 | 313 | 270 | 1,404 | 1,230 |
| Net financial income | 3 | 3 | 1 | -3 | -3 | 3 | -2 | |||
| Net other income | 6 | 6 | 28 | 16 | 1 | 12 | 11 | 35 | 56 | 5 9 |
| Total operating income | 853 | 827 | 847 | 833 | 824 | 789 | 821 | 816 | 3,360 | 3,250 |
| Staff costs | -293 | -293 | -328 | -308 | -327 | -326 | -329 | -351 | -1,222 | -1,333 |
| Other expenses | -416 | -405 | -396 | -410 | -390 | -363 | -397 | -431 | -1,627 | -1,581 |
| Depreciation of assets | -44 | -45 | -44 | -43 | -42 | -41 | -32 | -31 | -176 | -146 |
| Total operating expenses | -753 | -743 | -768 | -761 | -759 | -730 | -758 | -813 | -3,025 | -3,060 |
| Profit before credit losses etc | 100 | 84 | 79 | 72 | 65 | 59 | 63 | 3 | 335 | 190 |
| Gains less losses from assets | -1 | 2 | 2 | 1 | 2 | |||||
| Net credit losses | -31 | -16 | -11 | -8 | -27 | -23 | -17 | 9 | -66 | -58 |
| Operating profit | 68 | 68 | 68 | 66 | 38 | 36 | 46 | 14 | 270 | 134 |
Cards
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 89 | 77 | 85 | 66 | 90 | 142 | 132 | 141 | 317 | 505 |
| Net fee and commission income | 436 | 487 | 462 | 543 | 469 | 508 | 468 | 510 | 1,928 | 1,955 |
| Net financial income | 17 | 17 | ||||||||
| Net other income | 8 | 16 | 12 | 23 | 8 | 13 | 4 | 13 | 59 | 38 |
| Total operating income | 533 | 580 | 559 | 649 | 567 | 663 | 604 | 664 | 2,321 | 2,498 |
| Staff costs | -170 | -173 | -165 | -171 | -179 | -187 | -170 | -187 | -679 | -723 |
| Other expenses | -145 | -155 | -141 | -170 | -138 | -150 | -150 | -162 | -611 | -600 |
| Depreciation of assets | -8 | -8 | -9 | -9 | -10 | -10 | -10 | -10 | -34 | -40 |
| Total operating expenses | -323 | -336 | -315 | -350 | -327 | -347 | -330 | -359 | -1,324 | -1,363 |
| Profit before credit losses etc | 210 | 244 | 244 | 299 | 240 | 316 | 274 | 305 | 997 | 1,135 |
| Gains less losses from assets | 1 | 1 | ||||||||
| Net credit losses | -31 | -35 | -19 | -49 | -51 | -112 | -94 | -144 | -134 | -401 |
| Operating profit | 179 | 209 | 225 | 251 | 189 | 204 | 180 | 161 | 864 | 734 |
Wealth Management
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 186 | 198 | 214 | 245 | 242 | 199 | 237 | 213 | 843 | 891 |
| Net fee and commission income | 1,024 | 1,086 | 988 | 979 | 958 | 820 | 784 | 1,119 | 4,077 | 3,681 |
| Net financial income | 14 | 16 | 3 | 46 | 20 | 8 | 14 | 25 | 79 | 67 |
| Net other income | 6 | 27 | 13 | 40 | 9 | 26 | 3 | 10 | 86 | 48 |
| Total operating income | 1,230 | 1,327 | 1,218 | 1,310 | 1,229 | 1,053 | 1,038 | 1,367 | 5,085 | 4,687 |
| Staff costs | -346 | -314 | -325 | -355 | -383 | -367 | -330 | -347 | -1,340 | -1,427 |
| Other expenses | -253 | -243 | -255 | -289 | -288 | -270 | -249 | -325 | -1,040 | -1,132 |
| Depreciation of assets | -13 | -21 | -12 | -14 | -24 | -22 | -25 | -29 | -60 | -100 |
| Total operating expenses | -612 | -578 | -592 | -658 | -695 | -659 | -604 | -701 | -2,440 | -2,659 |
| Profit before credit losses etc | 618 | 749 | 626 | 652 | 534 | 394 | 434 | 666 | 2,645 | 2,028 |
| Gains less losses from assets | -1 | -1 | ||||||||
| Net credit losses | -4 | -5 | -8 | 10 | -25 | 23 | -15 | -7 | -17 | |
| Operating profit | 614 | 743 | 618 | 662 | 509 | 417 | 434 | 651 | 2,637 | 2,011 |
Wealth Management
Institutional Clients
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 44 | 41 | 49 | 56 | 56 | 62 | 65 | 54 | 190 | 237 |
| Net fee and commission income | 807 | 881 | 776 | 807 | 770 | 638 | 613 | 933 | 3,271 | 2,954 |
| Net financial income | 3 | 5 | 6 | 3 | 4 | -2 | 22 | 17 | 24 | |
| Net other income | 5 | 8 | 11 | 2 | 7 | -3 | 2 | 26 | 6 | |
| Total operating income | 859 | 935 | 842 | 868 | 837 | 697 | 676 | 1,011 | 3,504 | 3,221 |
| Staff costs | -216 | -184 | -197 | -236 | -242 | -230 | -203 | -218 | -833 | -893 |
| Other expenses | -158 | -147 | -160 | -188 | -161 | -160 | -144 | -197 | -653 | -662 |
| Depreciation of assets | -5 | -5 | -6 | -6 | -17 | -16 | -18 | -22 | -22 | -73 |
| Total operating expenses | -379 | -336 | -363 | -430 | -420 | -406 | -365 | -437 | -1,508 | -1,628 |
| Profit before credit losses etc | 480 | 599 | 479 | 438 | 417 | 291 | 311 | 574 | 1,996 | 1,593 |
| Gains less losses from assets Net credit losses |
-1 | -1 | ||||||||
| Operating profit | 480 | 598 | 479 | 438 | 417 | 291 | 311 | 574 | 1,995 | 1,593 |
Wealth Management
Private Banking
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Net interest income | 142 | 157 | 166 | 188 | 185 | 138 | 173 | 158 | 653 | 654 |
| Net fee and commission income | 215 | 205 | 212 | 172 | 188 | 181 | 173 | 184 | 804 | 726 |
| Net financial income | 11 | 12 | -4 | 44 | 16 | 8 | 15 | 4 | 63 | 4 3 |
| Net other income | 1 | 18 | 2 | 40 | 2 | 31 | 9 | 61 | 42 | |
| Total operating income | 369 | 392 | 376 | 444 | 391 | 358 | 361 | 355 | 1,581 | 1,465 |
| Staff costs | -130 | -129 | -128 | -119 | -140 | -137 | -128 | -129 | -506 | -534 |
| Other expenses | -94 | -97 | -94 | -103 | -127 | -112 | -103 | -127 | -388 | -469 |
| Depreciation of assets | -7 | -16 | -7 | -8 | -7 | -6 | -7 | -7 | -38 | -27 |
| Total operating expenses | -231 | -242 | -229 | -230 | -274 | -255 | -238 | -263 | -932 | -1,030 |
| Profit before credit losses etc | 138 | 150 | 147 | 214 | 117 | 103 | 123 | 92 | 649 | 435 |
| Gains less losses from assets | ||||||||||
| Net credit losses | -4 | -5 | -8 | 10 | -25 | 23 | -15 | -7 | -17 | |
| Operating profit | 134 | 145 | 139 | 224 | 92 | 126 | 123 | 77 | 642 | 418 |
Life
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Q 1 2008 |
Q 2 2008 |
Q 3 2008 |
Q 4 2008 |
Full year 2007 |
Full year 2008 |
| Net interest income | -9 | -6 | -6 | -7 | -16 | -13 | -3 | -4 | -28 | -36 |
| Net life insurance income | 981 | 907 | 1,039 | 1,031 | 954 | 883 | 720 | 739 | 3,958 | 3,296 |
| Net other income | ||||||||||
| Total operating income | 972 | 901 | 1,033 | 1,024 | 938 | 870 | 717 | 735 | 3,930 | 3,260 |
| Staff costs | -254 | -263 | -249 | -284 | -262 | -285 | -266 | -292 | -1,050 | -1,105 |
| Other expenses | -130 | -130 | -149 | -121 | -148 | -132 | -126 | -117 | -530 | -523 |
| Depreciation of assets | -130 | -140 | -134 | -144 | -160 | -145 | -149 | -115 | -548 | -569 |
| Total operating expenses | -514 | -533 | -532 | -549 | -570 | -562 | -541 | -524 | -2,128 | -2,197 |
| Profit before credit losses etc | 458 | 368 | 501 | 475 | 368 | 308 | 176 | 211 | 1,802 | 1,063 |
| Gains less losses from assets Net credit losses |
||||||||||
| Operating profit * | 458 | 368 | 501 | 475 | 368 | 308 | 176 | 211 | 1,802 | 1,063 |
| Change in surplus values | 244 | 323 | 275 | 431 | 250 | 227 | 132 | 380 | 1,273 | 989 |
| Business result | 702 | 691 | 776 | 906 | 618 | 535 | 308 | 591 | 3,075 | 2,052 |
* Consolidated in the Group accounts
Other and eliminations
Total
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Full year | Full year | ||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 Q 4 2008 | 2007 | 2008 | |
| Net interest income | -14 | -59 | -142 | 90 | -79 | 104 | -174 | -160 | -125 | -309 |
| Net fee and commission income | 169 | 250 | 239 | 152 | 171 | 189 | 224 | 100 | 810 | 684 |
| Net financial income | 41 | 46 | 23 | -45 | -395 | 115 | -608 | -231 | 65 | -1,119 |
| Net life insurance income | -238 | -265 | -257 | -265 | -241 | -241 | -216 | -223 | -1,025 | -921 |
| Net other income | 16 | 4 | 68 | 47 | 150 | 87 | 51 | 710 | 135 | 998 |
| Total operating income | -26 | -24 | -69 | -21 | -394 | 254 | -723 | 196 | -140 | -667 |
| Staff costs | -1,080 | -980 | -982 | -1,008 | -1,136 | -1,068 | -1,141 | -1,842 | -4,050 | -5,187 |
| Other expenses | 857 | 806 | 853 | 910 | 893 | 589 | 711 | 863 | 3,426 | 3,056 |
| Depreciation of assets | -87 | -77 | -82 | -97 | -89 | -90 | -126 | -144 | -343 | -449 |
| Total operating expenses | -310 | -251 | -211 | -195 | -332 | -569 | -556 | -1,123 | -967 | -2,580 |
| Profit before credit losses etc | -336 | -275 | -280 | -216 | -726 | -315 | -1,279 | -927 | -1,107 | -3,247 |
| Gains less losses from assets | 783 | 1 | -1 | -1 | 783 | -1 | ||||
| Net credit losses | 1 | 1 | -2 | 32 | -3 | -8 | 46 | -2 | 32 | 33 |
| Operating profit | -335 | -274 | -282 | 599 | -729 | -322 | -1,234 | -930 | -292 | -3,215 |
The SEB Group
| Net fee and commission income | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | Q 1 2007 |
Q 2 2007 |
Q 3 2007 |
Q 4 2007 |
Q 1 2008 |
Q 2 2008 |
Q 3 2008 |
Q 4 2008 |
Full year 2007 |
Full year 2008 |
| Issue of securities | 32 | 197 | 45 | 61 | 7 | 91 | 47 | 27 | 335 | 172 |
| Secondary market | 1 068 | 938 | 886 | 859 | 758 | 913 | 654 | 444 | 3 751 | 2 769 |
| Custody and mutual funds | 1 692 | 1 923 | 1 787 | 1 763 | 1 804 | 1 664 | 1 623 | 1 931 | 7 165 | 7 022 |
| Securities commissions | 2 792 | 3 058 | 2 718 | 2 683 | 2 569 | 2 668 | 2 324 | 2 402 | 11 251 | 9 963 |
| Payments | 459 | 446 | 440 | 463 | 439 | 464 | 447 | 494 | 1 808 | 1 844 |
| Card fees | 957 | 1 039 | 1 010 | 1 087 | 1 032 | 1 108 | 1 066 | 1 094 | 4 093 | 4 300 |
| Payment commissions | 1 416 | 1 485 | 1 450 | 1 550 | 1 471 | 1 572 | 1 513 | 1 588 | 5 901 | 6 144 |
| Advisory | 499 | 337 | 321 | 316 | 289 | 173 | 329 | 327 | 1 473 | 1 118 |
| Lending | 231 | 326 | 204 | 294 | 185 | 270 | 258 | 291 | 1 055 | 1 004 |
| Deposits | 27 | 17 | 22 | 23 | 23 | 24 | 25 | 26 | 89 | 98 |
| Guarantees | 68 | 62 | 68 | 66 | 67 | 71 | 78 | 85 | 264 | 301 |
| Derivatives | 96 | 81 | 94 | 92 | 113 | 116 | 175 | 197 | 363 | 601 |
| Other | 226 | 268 | 275 | 235 | 176 | 180 | 168 | 124 | 1 004 | 648 |
| Other commissions | 1 147 | 1 091 | 984 | 1 026 | 853 | 834 | 1 033 | 1 050 | 4 248 | 3 770 |
| Total commission income | 5 355 | 5 634 | 5 152 | 5 259 | 4 893 | 5 074 | 4 870 | 5 040 | 21 400 | 19 877 |
| Securities commissions | -204 | -295 | -208 | -195 | -241 | -275 | -226 | -228 | -902 | -970 |
| Payment commissions | -576 | -602 | -576 | -619 | -585 | -631 | -593 | -641 | -2 373 | -2 450 |
| Other commissions | -298 | -193 | -267 | -316 | -266 | -259 | -297 | -381 | -1 074 | -1 203 |
| Commission expense | -1 078 | -1 090 | -1 051 | -1 130 | -1 092 | -1 165 | -1 116 | -1 250 | -4 349 | -4 623 |
| Securities commissions | 2 588 | 2 763 | 2 510 | 2 488 | 2 328 | 2 393 | 2 098 | 2 174 | 10 349 | 8 993 |
| Payment commissions | 840 | 883 | 874 | 931 | 886 | 941 | 920 | 947 | 3 528 | 3 694 |
| Other commissions | 849 | 898 | 717 | 710 | 587 | 575 | 736 | 669 | 3 174 | 2 567 |
| Net fee and commission income | 4 277 | 4 544 | 4 101 | 4 129 | 3 801 | 3 909 | 3 754 | 3 790 | 17 051 | 15 254 |
The SEB Group
Net financial income
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Equity instruments and related derivatives | 147 | 126 | 90 | 157 | 171 | 306 | 489 | 420 | 520 | 1,386 |
| Debt instruments and related derivatives | 645 | 513 | -782 | -477 | -1,164 | 108 | -503 | 54 | -101 | -1,505 |
| Capital market related | 792 | 639 | -692 | -320 | -993 | 414 | -14 | 474 | 419 | -119 |
| Currency related | 519 | 706 | 855 | 740 | 832 | 747 | 270 | 1,228 | 2,820 | 3,077 |
| Other financial instruments | -9 | 21 | 12 | |||||||
| Net financial income | 1,311 | 1,345 | 163 | 420 | -161 | 1,161 | 247 | 1,723 | 3,239 | 2,970 |
Appendix 6 Profit and loss accounts by geography and quarter
Sweden
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 4 965 | 5 342 | 4 506 | 5 676 | 5 096 | 4 850 | 5 144 | 7 417 | 20 489 | 22 507 |
| Total operating expenses | -3 157 | -3 107 | -2 689 | -3 312 | -3 384 | -3 643 | -3 276 | -3 372 | -12 265 | -13 675 |
| Profit before credit losses etc | 1 808 | 2 235 | 1 817 | 2 364 | 1 712 | 1 207 | 1 868 | 4 045 | 8 224 | 8 832 |
| Gains less losses from assets | ||||||||||
| Net credit losses | - 13 | - 113 | - 32 | 79 | - 19 | - 38 | - 162 | - 269 | - 79 | - 488 |
| Operating profit | 1 795 | 2 122 | 1 785 | 2 443 | 1 693 | 1 169 | 1 706 | 3 776 | 8 145 | 8 344 |
Adjusted for centralisation of CPM portfolios from US to Sweden, which effects operating income and profit with SEK 1,8 bn in Q4 2008.
Norway
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 853 | 701 | 611 | 777 | 560 | 729 | 624 | 989 | 2 942 | 2 902 |
| Total operating expenses | - 442 | - 387 | - 250 | - 467 | - 323 | - 390 | - 350 | - 401 | -1 546 | -1 464 |
| Profit before credit losses etc | 411 | 314 | 361 | 310 | 237 | 339 | 274 | 588 | 1 396 | 1 438 |
| Gains less losses from assets | ||||||||||
| Net credit losses | - 37 | - 15 | - 37 | - 5 | - 60 | - 61 | - 39 | - 106 | - 94 | - 266 |
| Operating profit | 374 | 299 | 324 | 305 | 177 | 278 | 235 | 482 | 1 302 | 1 172 |
Denmark
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 754 | 664 | 706 | 699 | 604 | 492 | 521 | 615 | 2 823 | 2 232 |
| Total operating expenses | - 356 | - 433 | - 361 | - 405 | - 356 | - 385 | - 332 | - 334 | -1 555 | -1 407 |
| Profit before credit losses etc | 398 | 231 | 345 | 294 | 248 | 107 | 189 | 281 | 1 268 | 825 |
| Gains less losses from assets | ||||||||||
| Net credit losses | - 8 | - 8 | - 20 | - 23 | - 24 | - 30 | - 192 | - 36 | - 269 | |
| Operating profit | 398 | 223 | 337 | 274 | 225 | 83 | 159 | 89 | 1 232 | 556 |
| Finland | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 247 | 296 | 282 | 352 | 281 | 348 | 303 | 302 | 1 177 | 1 234 |
| Total operating expenses | - 137 | - 160 | - 136 | - 156 | - 152 | - 176 | - 161 | - 180 | - 589 | - 669 |
| Profit before credit losses etc | 110 | 136 | 146 | 196 | 129 | 172 | 142 | 122 | 588 | 565 |
| Gains less losses from assets | ||||||||||
| Net credit losses | - 4 | - 2 | - 1 | - 2 | - 2 | - 4 | - 2 | - 3 | - 9 | - 11 |
| Operating profit | 106 | 134 | 145 | 194 | 127 | 168 | 140 | 119 | 579 | 554 |
| Germany | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 1 620 | 1 676 | 1 334 | 1 518 | 1 356 | 1 921 | 1 139 | 1 540 | 6 148 | 5 956 |
| Total operating expenses | -1 140 | -1 148 | -1 231 | -1 291 | -1 210 | -1 155 | -1 186 | -1 416 | -4 810 | -4 967 |
| Profit before credit losses etc | 480 | 528 | 103 | 227 | 146 | 766 | - 47 | 124 | 1 338 | 989 |
| Gains less losses from assets | - 1 | - 1 | 1 | 2 | 2 | - 1 | 4 | |||
| Net credit losses | - 149 | - 51 | - 16 | - 125 | - 40 | - 31 | - 108 | - 60 | - 341 | - 239 |
| Operating profit | 331 | 476 | 86 | 103 | 108 | 735 | - 155 | 66 | 996 | 754 |
Estonia
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 388 | 445 | 400 | 427 | 328 | 503 | 400 | 305 | 1 660 | 1 536 |
| Total operating expenses | - 151 | - 169 | - 155 | - 174 | - 137 | - 215 | - 171 | - 192 | - 649 | - 715 |
| Profit before credit losses etc | 237 | 276 | 245 | 253 | 191 | 288 | 229 | 113 | 1 011 | 821 |
| Gains less losses from assets | 298 | 298 | ||||||||
| Net credit losses | - 12 | - 17 | - 32 | - 158 | - 166 | - 202 | - 61 | - 83 | - 219 | - 512 |
| Operating profit | 225 | 259 | 213 | 393 | 25 | 86 | 168 | 30 | 1 090 | 309 |
| Latvia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 329 | 424 | 426 | 470 | 410 | 388 | 393 | 446 | 1 649 | 1 637 |
| Total operating expenses | - 137 | - 149 | - 146 | - 170 | - 176 | - 187 | - 171 | - 200 | - 602 | - 734 |
| Profit before credit losses etc | 192 | 275 | 280 | 300 | 234 | 201 | 222 | 246 | 1 047 | 903 |
| Gains less losses from assets | 1 | 256 | 257 | |||||||
| Net credit losses | - 8 | - 30 | - 28 | - 46 | - 39 | - 47 | - 171 | - 255 | - 112 | - 512 |
| Operating profit | 184 | 245 | 253 | 510 | 195 | 154 | 51 | - 9 | 1 192 | 391 |
| Lithuania | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 508 | 609 | 593 | 676 | 597 | 633 | 659 | 609 | 2 386 | 2 498 |
| Total operating expenses | - 195 | - 202 | - 215 | - 264 | - 232 | - 264 | - 268 | - 266 | - 876 | -1 030 |
| Profit before credit losses etc | 313 | 407 | 378 | 412 | 365 | 369 | 391 | 343 | 1 510 | 1 468 |
| Gains less losses from assets | 2 | 232 | 1 | 234 | 1 | |||||
| Net credit losses | - 12 | - 43 | - 33 | - 35 | - 18 | - 35 | - 139 | - 560 | - 123 | - 752 |
| Operating profit | 301 | 364 | 347 | 609 | 347 | 334 | 252 | - 216 | 1 621 | 717 |
Other countries and eliminations
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 529 | 562 | 635 | - 560 | - 430 | 539 | 38 | 491 | 1 166 | 638 |
| Total operating expenses | - 87 | - 129 | - 397 | 311 | - 57 | - 30 | - 55 | - 604 | - 302 | - 746 |
| Profit before credit losses etc | 442 | 433 | 238 | - 249 | - 487 | 509 | - 17 | - 113 | 864 | - 108 |
| Gains less losses from assets | 1 | 1 | - 1 | 1 | ||||||
| Net credit losses | 1 | - 1 | - 2 | - 1 | - 1 | - 10 | - 13 | - 195 | - 3 | - 219 |
| Operating profit | 443 | 432 | 236 | - 250 | - 487 | 500 | - 30 | - 309 | 861 | - 326 |
Adjusted for centralisation of CPM portfolios from US to Sweden, which 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 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2007 | 2008 |
| Total operating income | 10 193 | 10 719 | 9 493 | 10 035 | 8 802 | 10 403 | 9 221 | 12 714 | 40 440 | 41 140 |
| Total operating expenses | -5 802 | -5 884 | -5 580 | -5 928 | -6 027 | -6 445 | -5 970 | -6 965 | -23 194 | -25 407 |
| Profit before credit losses etc | 4 391 | 4 835 | 3 913 | 4 107 | 2 775 | 3 958 | 3 251 | 5 749 | 17 246 | 15 733 |
| Gains less losses from assets | - 1 | 2 | 787 | 3 | 1 | 2 | 788 | 6 | ||
| Net credit losses | - 234 | - 280 | - 189 | - 313 | - 368 | - 452 | - 725 | -1 723 | -1 016 | -3 268 |
| Operating profit | 4 157 | 4 554 | 3 726 | 4 581 | 2 410 | 3 507 | 2 526 | 4 028 | 17 018 | 12 471 |
Appendix 7 Skandinaviska Enskilda Banken (parent company)
Income statement – Skandinaviska Enskilda Banken
| In accordance with SFSA regulations | Q4 | Q3 | Q4 | Jan - Dec | ||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Interest income | 23 924 | 12 370 | 93 | 9 117 | 162 | 59 786 | 43 913 | 36 |
| Leasing income | 1 673 | 1 562 | 7 | 5 463 | -69 | 6 372 | 6 154 | 4 |
| Interest expense | -21 835 | -10 658 | 105 | -6 844 | -52 987 | -38 464 | 38 | |
| Net interest income 1) | ||||||||
| Dividends received | 462 | 8 | 2 082 | -78 | 2 715 | 3 925 | -31 | |
| Commission income 2) | 1 964 | 1 881 | 4 | 2 117 | -7 | 7 473 | 8 455 | -12 |
| Commission costs 2) | - 481 | - 376 | 28 | - 351 | 37 | -1 480 | -1 331 | 11 |
| Net commission income 2) | 1 483 | 1 505 | -1 | 1 766 | -16 | 5 993 | 7 124 | -16 |
| Net financial income 3) | 2 556 | - 137 | 240 | 3 236 | 2 490 | 30 | ||
| Other operating income | 2 145 | 319 | - 519 | 2 935 | 658 | |||
| Total income | 10 408 | 4 969 | 109 | 11 305 | -8 | 28 050 | 25 800 | 9 |
| Staff costs | -2 602 | -2 136 | 22 | -2 160 | 20 | -9 274 | -8 611 | 8 |
| Other administrative and operating costs | -1 120 | -1 088 | 3 | -1 078 | 4 | -4 471 | -3 978 | 12 |
| Depreciation of assets | -1 280 | -1 168 | 10 | -4 537 | -72 | -4 814 | -4 847 | -1 |
| Total costs | -5 002 | -4 392 | 14 | -7 775 | -36 | -18 559 | -17 436 | 6 |
| Profit/loss from banking operations before | ||||||||
| credit losses | 5 406 | 577 | 3 530 | 53 | 9 491 | 8 364 | 13 | |
| Net credit losses 4) | - 564 | - 187 | 59 | - 773 | - 24 | |||
| Change in value of seized assets | ||||||||
| Impairment financial assets | - 73 | - 35 | 109 | - 34 | 115 | - 121 | - 106 | 14 |
| Operating profit | 4 769 | 355 | 3 555 | 34 | 8 597 | 8 234 | 4 | |
| Pension compensation | 128 | 104 | 23 | 99 | 29 | 434 | 362 | 20 |
| Profit before appropriation and tax | 4 897 | 459 | 3 654 | 34 | 9 031 | 8 596 | 5 | |
| Other appropriations | -3 188 | 1 249 | - 249 | -2 117 | - 520 | |||
| Current tax | 325 | - 63 | - 491 | -166 | - 4 | - 800 | -100 | |
| Deferred tax | 1 304 | 362 | 1 304 | 209 | ||||
| Net profit | 3 338 | 1 645 | 103 | 3 276 | 2 | 8 214 | 7 485 | 10 |
1) Net interest income - Skandinaviska Enskilda Banken
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Interest income | 23 924 | 12 370 | 93 | 9 117 | 162 | 59 786 | 43 913 | 36 |
| Leasing income | 1 673 | 1 562 | 7 | 5 463 | - 69 | 6 372 | 6 154 | 4 |
| Interest costs | -21 835 | -10 658 | 105 | -6 843 | -52 987 | -38 464 | 38 | |
| Leasing depreciation | -1 177 | -1 128 | 4 | -4 502 | - 74 | -4 604 | -4 735 | - 3 |
| Net interest income | 2 585 | 2 146 | 20 | 3 235 | - 20 | 8 567 | 6 868 | 25 |
2) Net fee and commission income - Skandinaviska Enskilda Banken
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Securities commissions | 976 | 936 | 4 | 1 208 | - 19 | 3 936 | 4 787 | - 18 |
| Payment commissions | 359 | 317 | 13 | 320 | 12 | 1 307 | 1 279 | 2 |
| Other commissions | 628 | 628 | 589 | 7 | 2 229 | 2 389 | - 7 | |
| Commission income | 1 963 | 1 881 | 4 | 2 117 | - 7 | 7 472 | 8 455 | - 12 |
| Securities commissions | - 67 | - 68 | - 1 | - 72 | - 7 | - 267 | - 260 | 3 |
| Payment commissions | - 162 | - 132 | 23 | - 135 | 20 | - 526 | - 520 | 1 |
| Other commissions | - 251 | - 176 | 43 | - 144 | 74 | - 686 | - 551 | 25 |
| Commission expense | - 480 | - 376 | 28 | - 351 | 37 | -1 479 | -1 331 | 11 |
| Securities commissions, net | 909 | 868 | 5 | 1 136 | - 20 | 3 669 | 4 527 | - 19 |
| Payment commissions, net | 197 | 185 | 6 | 185 | 6 | 781 | 759 | 3 |
| Other commissions, net | 377 | 452 | - 17 | 445 | - 15 | 1 543 | 1 838 | - 16 |
| Net fee and commission income | 1 483 | 1 505 | - 1 | 1 766 | - 16 | 5 993 | 7 124 | - 16 |
3) Net financial income - Skandinaviska Enskilda Banken
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Equity instruments and related derivatives | 365 | 322 | 13 | 404 | - 10 | 1 002 | 587 | 71 |
| Debt instruments and related derivatives | 984 | - 416 | - 540 | - 176 | - 104 | 69 | ||
| Capital market related | 1 349 | - 94 | - 136 | 826 | 483 | 71 | ||
| Currency-related | 1 207 | - 43 | 376 | 2 410 | 2 007 | 20 | ||
| Net financial income | 2 556 | - 137 | 240 | 3 236 | 2 490 | 30 |
4) Net credit losses - Skandinaviska Enskilda Banken
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2008 | 2008 | % | 2007 | % | 2008 | 2007 | % |
| Provisions: | ||||||||
| Net collective provisions | - 384 | - 15 | 95 | - 393 | 38 | |||
| Specific provisions | - 173 | - 156 | 11 | - 46 | - 347 | - 51 | ||
| Reversal of specific provisions no longer | ||||||||
| required | 19 | 11 | 73 | 21 | -10 | 39 | 25 | 56 |
| Net provisions for contingent liabilities | ||||||||
| Net provisions | - 538 | - 160 | 70 | - 701 | 12 | |||
| Write-offs: | ||||||||
| Total write-offs | - 55 | - 46 | 20 | - 46 | 20 | - 192 | - 160 | 20 |
| Reversal of specific provisions utilized for | ||||||||
| write-offs | 5 | 9 | -44 | 5 | 70 | 53 | 32 | |
| Write-offs not previously provided for | - 50 | - 37 | 35 | - 41 | 22 | - 122 | - 107 | 14 |
| Recovered from previous write-offs | 24 | 10 | 140 | 30 | -20 | 50 | 71 | -30 |
| Net write-offs | - 26 | - 27 | -4 | - 11 | 136 | - 72 | - 36 | 100 |
| Net credit losses | - 564 | - 187 | 59 | - 773 | - 24 | |||
| Change in value of seized assets | ||||||||
| Net credit losses incl. change in value of seized assets |
- 564 | - 187 | 59 | - 773 | - 24 |
Balance sheet - Skandinaviska Enskilda Banken
| Condensed | 31 December | 31 December |
|---|---|---|
| SEKm | 2008 | 2007 |
| Cash and cash balances with central banks | 10 670 | 1 758 |
| Loans to credit institutions | 349 073 | 357 482 |
| Loans to the public | 768 737 | 637 138 |
| Financial assets at fair value | 386 802 | 367 985 |
| Available-for-sale financial assets | 26 897 | 62 085 |
| Held-to-maturity investments | 3 263 | 3 348 |
| Investments in associates | 1 011 | 1 063 |
| Shares in subsidiaries | 60 063 | 51 936 |
| Tangible and intangible assets | 41 412 | 35 497 |
| Other assets | 60 572 | 41 027 |
| Total assets | 1 708 500 | 1 559 319 |
| Deposits by credit institutions | 410 105 | 367 699 |
| Deposits and borrowing from the public | 453 697 | 412 499 |
| Debt securities | 394 246 | 408 002 |
| Financial liabilities at fair value | 279 512 | 201 761 |
| Other liabilities | 55 657 | 67 093 |
| Provisions | 789 | 271 |
| Subordinated liabilities | 50 199 | 43 046 |
| Untaxed reserves | 21 136 | 19 016 |
| Total equity | 43 159 | 39 932 |
| Total liabilities and shareholders' equity | 1 708 500 | 1 559 319 |
Memorandum items - Skandinaviska Enskilda Banken
| 31 December | 31 December | |
|---|---|---|
| SEK m | 2008 | 2007 |
| Collateral and comparable security pledged for own liabilities | 242 395 | 146 563 |
| Other pledged assets and comparable collateral | 37 737 | 73 510 |
| Contingent liabilities | 62 260 | 50 909 |
| Commitments | 261 252 | 259 024 |
Statement of changes in equity - Skandinaviska Enskilda Banken
| Reserve for | Reserve for | |||||
|---|---|---|---|---|---|---|
| cash flow | afs financial | Share | Restricted | Retained | ||
| SEKm | hedges | assets | capital | reserves | earnings | Total |
| Jan-Dec 2008 | ||||||
| Opening balance | 190 | - 408 | 6 872 | 12 260 | 21 018 | 39 932 |
| Change in market value | 1 563 | -2 242 | - 679 | |||
| Recognised in income statement | - 16 | 65 | 49 | |||
| Translation difference | - 195 | - 195 | ||||
| Net income recognised directly in equity | 1 547 | -2 177 | - 195 | - 825 | ||
| Net profit | 8 214 | 8 214 | ||||
| Total recognised income | 1 547 | -2 177 | 8 019 | 7 389 | ||
| Dividend to shareholders | -4 451 | -4 451 | ||||
| Group contributions net after tax | 500 | 500 | ||||
| Swap hedging of employee stock option programme Eliminations of repurchased shares for employee |
27 | 27 | ||||
| stock option programme* | 183 | 183 | ||||
| Other changes | - 421 | - 421 | ||||
| Closing balance | 1 737 | -2 585 | 6 872 | 12 260 | 24 875 | 43 159 |
| Jan-Dec 2007 Opening balance |
367 | 212 | 6 872 | 12 804 | 15 558 | 35 813 |
| Change in market value | - 163 | - 653 | - 816 | |||
| Recognised in income statement | - 14 | 33 | 19 | |||
| Translation difference | - 36 | - 36 | ||||
| Net income recognised directly in equity | - 177 | - 620 | - 36 | - 833 | ||
| Net profit | 7 485 | 7 485 | ||||
| Total recognised income | - 177 | - 620 | 7 449 | 6 652 | ||
| Effect of merger of SEB BoLån and SEB Finans | 399 | 399 | ||||
| Dividend to shareholders | -4 079 | -4 079 | ||||
| Group contributions net after tax | 806 | 806 | ||||
| Swap hedging of employee stock option programme Eliminations of repurchased shares for employee |
- 428 | - 428 | ||||
| stock option programme* | 897 | 897 | ||||
| Other changes | - 544 | 416 | - 128 | |||
| Closing balance | 190 | - 408 | 6 872 | 12 260 | 21 018 | 39 932 |
* As of 31 December 2007 SEB owned 3.7 million Class A shares for the employee stock option programme. The acquisition cost for these shares is deducted from shareholders' equity. During 2008 1.5 million net of these shares have been sold as employee stock options have been exercised. Thus, as of 31 December SEB owned 2.2 million Class A-shares with a market value of SEK 133m for hedging of the long-term incentive programmes.
Cash flow analysis - Skandinaviska Enskilda Banken
| Jan - Dec | |||
|---|---|---|---|
| SEKm | 2008 | 2007 | % |
| Cash flow from the profit and loss statement | 7 219 | 9 845 | - 27 |
| Increase (-)/decrease (+) in portfolios | 13 209 | 2 338 | |
| Increase (+)/decrease (-) in issued short term securities | -31 863 | 84 144 | - 138 |
| Increase (-)/decrease (+) in lending to credit institutions | 42 460 | -87 515 | - 149 |
| Increase (-)/decrease (+) in lending to the public | -72 892 | -56 939 | 28 |
| Increase (+)/decrease (-) in liabilities to credit institutions | 42 893 | 35 327 | 21 |
| Increase (+)/decrease (-) in deposits and borrowings from the public | 41 382 | 23 373 | 77 |
| Change in other balance sheet items | -53 432 | 6 627 | |
| Cash flow, current operations | -11 024 | 17 200 | - 164 |
| Cash flow, investment activities | -8 881 | -15 971 | - 44 |
| Cash flow, financing activities | 20 279 | 49 340 | - 59 |
| Cash flow | 374 | 50 569 | - 99 |
| Liquid funds at beginning of year | 139 767 | 89 198 | 57 |
| Cash flow | 374 | 50 569 | - 99 |
| Liquid funds at end of period1) | 140 141 | 139 767 | 0 |
Only liquid funds have been adjusted for exchange rate differences.
1) Cash and cash equivalents at end of period is defined as Cash and cash balances with central banks and Loans to credit institutions - payable on demand.
Derivative contracts - Skandinaviska Enskilda Banken
| 31 December 2008 | ||
|---|---|---|
| Derivatives with positive | Derivatives with negative | |
| Book value, SEK m | amounts | amounts |
| Interest-related | 135 415 | 121 768 |
| Currency-related | 108 258 | 105 470 |
| Equity-related | 3 087 | 2 088 |
| Other | 8 698 | 757 |
| Total | 255 458 | 230 083 |