AI assistant
SEB — Interim / Quarterly Report 2011
May 3, 2011
2966_10-q_2011-05-03_2e7bc2f8-3d15-4de1-aaf7-7d81ff0d186f.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Interim report January – March 2011
STOCKHOLM 3 MAY 2011
The first quarter of 2011 – operating profit SEK 4.4bn (1.3)
- Operating income at SEK 9.7bn rose by 11 per cent compared with the corresponding quarter of 2010 and fell by 4 per cent compared with the previous quarter. Operating expenses at SEK 5.8bn were 4 per cent higher than the corresponding quarter of 2010 and 6 per cent lower than the previous quarter.
- Net interest income increased by 20 per cent compared with the first quarter last year and decreased 6 per cent from the previous quarter.
- Net fee and commission income increased by 10 per cent compared with the first quarter last year and decreased 10 per cent from the previous quarter.
- Net credit provisions of SEK 537m were released during the quarter corresponding to a net credit loss level of -0.17 per cent (0.50). Non-performing loans decreased by SEK 5.2bn, or 19 per cent, compared with the first quarter 2010.
- Net profit from continuing operations amounted to SEK 3.5bn (0.8). Return on equity was 14.1 per cent (3.3) and earnings per share SEK 1.59 (0.37).
- Core Tier 1 capital ratio was 13.0 per cent (12.2 at year-end 2010) and Tier 1 capital ratio 15.1 per cent (14.2 at yearend 2010).
- Lending to the public increased by SEK 39bn during the quarter.
- Including discontinued operations, the divestment of SEB's German Retail operations, net profit amounted to SEK 2.6bn (0.7). Return on equity was 10.5 per cent (2.7) and earnings per share SEK 1.19 (0.31).
"The first quarter result gives us further confidence that our relationship banking model is appreciated by existing and new customers. Business volumes are gradually shifting up and we see an increase in event-driven corporate activity."
Annika Falkengren
SEB Interim Report January – March 2011 1
15.1
* Basel II with (lower) and without transitional floors (higher)
President's comment
In a quarter marked by political turmoil in North Africa and the Middle East and the devastating earthquake in Japan, we are grateful that the Nordic countries, and Sweden in particular, have seen continued strong economic development. In the Baltic countries the economic recovery has gathered pace, albeit from low levels. Altogether, the quarter in our part of the world can be characterised by stronger market sentiment, increased interest rates and higher customer activity – a contrast to the economic sentiment only a year ago.
Higher business volumes and operating profit
Given this climate, SEB recorded a robust operating profit of SEK 4.4bn. Even though the first quarter displayed typical seasonality, we can see business volumes gradually shifting up and an increased utilisation of committed facilities. Net inflow of assets under management amounted to SEK 11bn. While it will take some time before the increased volumes affect the income statement, we do see an upturn in eventdriven activity. Return on equity is trending in the right direction and reached 14.1 per cent for continuing operations.
Growth initiatives on track
SEB's growth initiatives are progressing according to plan. The first phase of the investments in the Nordic countries and Germany has now been completed. For example, SEB has gained 20 new customers in our large corporate business over the last quarter. For the third year in a row, SEB was ranked as the top Swedish cash management provider by Prospera – which to us serves as an acknowledgement of our relationship banking model.
In the Swedish SME segment we continue to enhance our Union. position and build market share. We have introduced new SME customer advisors in the micro segment and have also developed our internet and mobile banking services.
Fundamental support for the Swedish mortgage market
The much awaited Swedish central bank review of the domestic housing market concluded that there are valid and sustainable reasons which have supported the growth of the Swedish housing market.
SEB shares the central bank's view that asset quality in the Swedish mortgage portfolios remains very high. We continue
to safeguard our customers' repayment capacity through proactive advice on amortizations and buffers for higher mortgage rates.
Net credit reversals reflect underlying strength
SEB made a net release of provisions for credit losses, reflecting the continued improved asset quality. In the Baltic operations, where our businesses have been back in black since the third quarter of last year, there was positive risk migration among corporates. Non-performing loans (NPL) in the Group dropped 9 per cent in the quarter to SEK 22bn and the NPL coverage ratio was marginally lower at 64 per cent.
Importance of level playing field
In the new regulatory framework, banks will be asked to hold more capital and long-term funding than before to ensure a more robust financial system. As a Swedish bank, SEB expects Sweden to abide by the same rules as the rest of the European
The Relationship Bank
SEB's development during the first quarter confirms the merits of our strategy of building long-term relationships with our customers. All business areas have shown the capacity to leverage the fundamentals in our region and that SEB has the right business mix, people and solutions. Through persistent customer focus and continued cost control, we create value for both customers and shareholders as the Relationship Bank in our part of the world.
Restatement of financial effects following minor business alignments (as published 14 April 2011) :
- During the first quarter of 2011, some of the large corporate and institutions related activities in the Baltic countries were moved from the Merchant Banking division to the Baltic division. The Baltic parts of the business units Trading Capital Markets and Global Transaction Services in Merchant Banking previously operated in a matrix organisation with Merchant Banking having responsibility for product governance. These product units have now from a reporting and governance perspective been integrated into the Baltic Division. The income statements and business equity for 2009 and 2010 for the two divisions have been restated.
- Also, the restated numbers reflect other minor alignments of the management organisation such as further centralisation of the Treasury activities. The majority of all common costs previously held centrally have also been allocated to the divisional level. The income statements for all divisions and support functions have been restated for 2010 accordingly.
- For comparative purposes, the Group's income statement was restated last year as continuing and discontinued operations, reflecting the divestment of SEB's German retail operations which was finalised on 31 January 2011.
The Group
Operating profit from continuing operations amounted to SEK 4,374m (1,287). The strengthened SEK lowered operating profit by SEK 338m compared with the first quarter and by SEK 106m compared with the fourth quarter of 2010. Net profit from continuing operations rose to SEK 3,509m (835).
As previously communicated, the divestment of SEB's German retail operations to Banco Santander was finalised on 31 January 2011. The financial consequences were as expected and previously communicated.
Net profit (after tax) including the negative effect of SEK 893m (146) from the divestment of the German Retail operations was SEK 2,616m (689).
Income
Total operating income amounted to SEK 9,672m (8,735), an increase by 11 per cent compared with the corresponding quarter of 2010 and a decrease of 4 per cent from the previous quarter. Currency translation effects lowered operating income by SEK 501m and 153m, respectively.
Net interest income at SEK 4,261m (3,542) was 20 per cent higher than in the corresponding quarter of 2010 and 6 per cent lower than the previous quarter. The Swedish Government's stability fund fee, which from 2011 will be applied without the earlier 50 per cent discount, amounted to SEK 150m in the first quarter. Customer-driven net interest income was up SEK 173m compared with the corresponding quarter last year and down by SEK 29m from the previous quarter; on a comparable basis with adjustments for e.g. currency translation effects, the customer-driven net interest income increased by some SEK 350m and SEK 100m, respectively. Contributions from lending margins were marginally lower while deposit margins were marginally up compared to the same period last year. Net interest income from the trading and treasury businesses was up SEK 547m compared with the corresponding quarter of 2010 and down by SEK 236m from the previous quarter. As previously communicated, the net interest income during the first quarter of 2011 was negatively affected by SEK 250m relating to the sale of the German retail operations.
Net fee and commission income at SEK 3,503m (3,194) increased by 10 per cent compared with the corresponding quarter 2010. The increase was primarily in the areas of fund management where assets under management have increased compared with a year ago and lending where loan commitment volumes have increased. The decrease in Net fee and commission income of 10 per cent compared with the previous quarter was primarily due to a seasonal effect, i.e. a decrease from the high level activity in the quarter within corporate finance, structured finance and cards.
Net financial income at SEK 1,235m (950) was stable since SEK 300m of the increase was due to the repositioning of treasury hedges for the continuing German business. Compared with the last quarter of 2010, net financial income was up due to increased activity in fixed income and foreign exchange.
Net life insurance income decreased with 11 per cent, or SEK 97m, to SEK 782m (879), primarily due to lower returns in the investment portfolios for own account and reduced income from the traditional life portfolios. Life insurance income was flat in comparison with the previous quarter.
Net other income at SEK -109m (170) decreased mainly due to fluctuations from hedge accounting.
Expenses
Total operating expenses rose by 4 per cent to SEK 5,841m (5,631) due to increased staff costs. Excluding the SEK 199m write-down of IT systems in Lithuania in 2010, the decrease of operating expenses compared with the last quarter was 2 per cent. Currency-translation effects lowered total operating expenses by SEK 245m compared with the first quarter of 2010 and by SEK 77m versus the fourth quarter 2010.
Credit losses and provisions
A net release of provisions for credit losses of SEK 537m reflected the continued improved asset quality in the Baltic countries. In the third and fourth quarters of 2010, the net releases were SEK 196m and SEK 419m, respectively.
Individually assessed impaired loans decreased by SEK 2,348m to SEK 14,870m during the quarter, mainly due to the continued improvement in the Baltic countries, where impaired loans decreased by SEK 1,020m, or 9 per cent. Positive risk migration was a main reason for the change. The Group's past due >60 days portfolio assessed loans increased with SEK 162m during the quarter to SEK 6,696m, of which SEK 140m in the Baltic countries. The outstanding amount of restructured Baltic household loans was SEK 503m.
The total reserve ratio for individually assessed impaired loans and the total non-performing loans coverage ratio were marginally down because of the net release of provisions following positive risk migration and reduced non-performing loans formation on the back of continued improvement of macro-economic indicators. The total non-performing loans coverage ratio for the Group was 64 per cent (66 at year-end).
Tax expenses
Total tax amounted to SEK 865m (452) corresponding to a tax rate of 20 per cent (35).
Discontinued operations
The negative result after tax from the divestment of SEB's German retail operations amounted to SEK 893m. It was a net of the operating result, the capital gain and the effect of unwinding of hedges.
Business volumes
Total assets per 31 March 2011 amounted to SEK 2,118bn (2,180 at year-end 2010). The main reason for the decrease is the sale of the German retail operations. Assets sold amounted to SEK 75bn and liabilities sold amounted to SEK 48bn.
Lending to the public increased with SEK 39bn.
SEB's total credit portfolio decreased, to SEK 1,639bn (1,703 at year-end). The decrease is primarily explained by the divested German retail operations. There was underlying customer credit volume growth in all segments although corporate credit volumes grew at a slower pace than in the latter part of 2010.
SEB's net position in fixed-income securities for investment, treasury and client trading purposes amounted to SEK 290bn (278 at year-end 2010), of which the bond investment portfolio was SEK 39bn (48 at year-end 2010).
As of 31 March 2011, assets under management totalled SEK 1,372bn (1,399 at year-end 2010). Net inflow of assets during the quarter was SEK 11bn. The change in value amounted to SEK -38bn. Assets under custody amounted to SEK 4,948bn (5,072).
Market risk
During the first quarter of 2011, Value at Risk in the trading operations averaged SEK 247m. 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.
Acquisitions
During the quarter, SEB acquired and consolidated DnB NOR's retail customer mortgage loan portfolio in Sweden. The agreement covers around 5,000 customers and a mortgage lending volume of approximately SEK 7bn.
SEB also signed an agreement to acquire Irish Life International Ltd, from Irish Life & Permanent Group Holdings plc. The acquisition will facilitate European distribution of insurance based investment products. Assets under management and premium income amount to approximately SEK 18bn and SEK 3bn, respectively.
Liquidity and long-term funding
SEB's loan-to-deposit ratio was 146 per cent (139 at year-end), excluding repos and reclassified bond portfolios. The increase is a result of higher lending. On 31 March, the matched funding of net cash inflows and outflows was over 18 months. Total funding raised in the quarter amounted to SEK 36bn. In addition, SEB raised EUR 1.25bn in a 10-year covered bond directly after quarter-end.
In order to increase transparency regarding liquidity management, a common definition of liquidity reserves has been agreed within the Swedish Bankers' Association. In SEB, this reserve at the end of the first quarter amounted to SEK 229bn. SEB's total liquid resources which include net trading assets and unutilised collateral in the cover pool amounted to SEK 422bn. See also the Fact Book.
Capital position
SEB has maintained stable and strong capital ratios. As of 31 March 2011, the Basel II core Tier 1 capital ratio was 13.0 per cent (12.2 at year-end 2010), the Tier 1 capital ratio was 15.1 per cent (14.2) and the total capital ratio was 14.6 per cent (13.8). The Group's risk-weighted assets (RWA) amounted to SEK 678bn (716 at year-end 2010). The sale of the German retail operations resulted in a decrease of RWA in the amount of SEK 37bn.
Adjusting for the supervisory transitional rules during the first Basel II years, SEB reports RWA of SEK 777bn (800), a Tier 1 capital ratio of 13.2 per cent (12.8) and a total capital ratio of 12.7 per cent (12.4).
Rating
SEB's long-term senior unsecured rating is 'A1', 'A' and 'A+' by Moody's, Standard & Poor's and Fitch respectively. All ratings have a stable outlook. SEB targets a long-term AA rating.
Annual General Meeting
At the Annual General Meeting on 24 March, Johan H. Andresen, Jr. was elected as new member of the Board, succeeding Christine Novakovic.
The AGM approved the Board of Director's proposal concerning the acquisition and sale of SEB's own shares, for securities business, for long-term equity based incentive programmes and for capital management purposes. In total, utilisation of these mandates is limited to the maximum 10 per cent of all shares outstanding that is allowed under Swedish company law. The authorisations will be valid until the AGM in 2012.
A dividend of SEK 1.50 (1.00) per share was resolved.
Risks and uncertainties
The macro-economic environment is the major driver of risk to the Group's earnings and financial stability. In particular, it affects the asset quality and thereby the credit risk of the Group. The medium-term outlook for the global economy remains divided – whereas Nordic economies have proven to be robust, austerity measures in many countries accentuate sovereign risk and create subdued economic growth, which could impact SEB's main markets. Thus, negative effects on economic recovery cannot be ruled out. Also, sovereign risk may impact valuations.
There are also financial risks, mainly in the form of price risks. Credit and market risks as well as other risks and the management of all the risks of the Group and the Parent Company are described in SEB's annual report.
Stockholm, 3 May 2011
Annika Falkengren President and Chief Executive Officer
The President declares that the Interim Account for January-March 2011 provides a fair overview of the Parent Company's and Group's operations, their financial position and results and describes material risks and uncertainties facing the Parent Company and other companies in the Group.
Press conference and webcasts
The press conference at 9.30 (CEST) on 3 May 2011 at Kungsträdgårdsgatan 8 with CEO Annika Falkengren can be followed live in Swedish on www.sebgroup.com/ir and translated into English on the website. It will also be available afterwards.
Access to telephone conference
The telephone conference at 15.00 (CEST) on 3 May 2011 with CEO Annika Falkengren and CFO Jan Erik Back can be accessed by telephone, +44(0)20 7162 0025. Please quote conference id: 893526, not later than 10 minutes in advance. A replay of the conference call will be available on www.sebgroup.com/ir
Financial information during 2011
| 14 July | Interim Report January-June 2011 |
|---|---|
| 27 October | Interim Report January-September 2011 |
Further information is available from Jan Erik Back, Chief Financial Officer, Tel: +46 8 22 19 00 Ulf Grunnesjö, Head of Investor Relations Tel. +46 8 763 85 01, +46 70 763 85 01 Malin Schenkenberg, Financial Information Officer Tel. +46 8 763 9531, +46 70 763 9531 Viveka Hirdman-Ryrberg, Head of Corporate Communications Tel. +46 8 763 8577, +46 70 550 35 00
Skandinaviska Enskilda Banken AB (publ) SE-106 40 Stockholm, Sweden Telephone: +46 771 62 10 00 www.sebgroup.com Corporate organisation number: 502032-9081
SEB's Fact Book is available on www.sebgroup.com/ir
Accounting policies
This Interim Report is presented in accordance with IAS 34 Interim Financial Reporting.
The Group's consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) and interpretations of these standards as adopted by the European Commission. The accounting follows the Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) and the regulation and general guidelines issued by the Swedish Financial Supervisory Authority: Annual reports in credit institutions and securities companies (FFFS 2008:25). In addition, the Supplementary accounting rules for groups (RFR 1) from the Swedish Financial Reporting Board have been applied. The Parent company has prepared its accounts in accordance with Swedish statutory IFRS and has applied the Supplementary
accounting rules for legal entities (RFR 2) from the Swedish Financial Reporting Board.
As from 2011, the following changes have been introduced in the accounting standards: IAS 24 (revised 2010) Related Party Disclosures, IAS 32 (amendment) Financial Instruments: Classification, IFRS 7 (amendment) Financial instruments: Disclosures, IFRIC 14 (amendment) Prepayments of a Minimum Funding Requirement, and IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments. The changes have not had a material effect on the consolidated financial statements for 2011.
In all other respects, the Group's and the Parent company's accounting policies, basis for calculations and presentations are, in all material aspects, unchanged in comparison with the 2010 Annual Report.
Review report
We have reviewed this report for the period 1 January 2011 to 31 March 2011 for Skandinaviska Enskilda Banken AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Act for Credit institutions and Securities Companies. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden, RS, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Act for Credit institutions and Securities Companies regarding the Group, and with the Swedish Annual Act for Credit institutions and Securities Companies, regarding the Parent Company.
Stockholm, 3 May 2011
PricewaterhouseCoopers AB
Peter Clemedtson Authorised Public Accountant
The SEB Group
Income statement – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 4 261 | 4 526 | -6 | 4 261 | 3 542 | 20 | 16 010 |
| Net fee and commission income | 3 503 | 3 906 | -10 | 3 503 | 3 194 | 10 | 14 160 |
| Net financial income | 1 235 | 512 | 141 | 1 235 | 950 | 30 | 3 166 |
| Net life insurance income | 782 | 780 | 0 | 782 | 879 | -11 | 3 255 |
| Net other income | - 109 | 314 | - 109 | 170 | 288 | ||
| Total operating income | 9 672 | 10 038 | -4 | 9 672 | 8 735 | 11 | 36 879 |
| Staff costs | -3 610 | -3 558 | 1 | -3 610 | -3 438 | 5 | -14 004 |
| Other expenses | -1 798 | -1 965 | -8 | -1 798 | -1 784 | 1 | -7 303 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 433 | - 650 | -33 | - 433 | - 409 | 6 | -1 880 |
| Restructuring costs | - 9 | -100 | - 764 | ||||
| Total operating expenses | -5 841 | -6 182 | -6 | -5 841 | -5 631 | 4 | -23 951 |
| Profit before credit losses | 3 831 | 3 856 | 3 831 | 3 104 | 23 | 12 928 | |
| Gains less losses on disposals of tangible and | |||||||
| intangible assets | 6 | 21 | -71 | 6 | - 4 | 14 | |
| Net credit losses | 537 | 419 | 28 | 537 | -1 813 | -1 837 | |
| Operating profit | 4 374 | 4 296 | 2 | 4 374 | 1 287 | 11 105 | |
| Income tax expense | - 865 | - 704 | 23 | - 865 | - 452 | 91 | -2 521 |
| Net profit from continuing operations | 3 509 | 3 592 | 2 - |
3 509 | 835 | 8 584 | |
| Discontinued operations | - 893 | - 83 | - 893 | - 146 | -1 786 | ||
| Net profit | 2 616 | 3 509 | - 25 | 2 616 | 689 | 6 798 | |
| Attributable to minority interests | 14 | 6 | 133 | 14 | 15 | -7 | 53 |
| Attributable to equity holders | 2 602 | 3 503 | -26 | 2 602 | 674 | 6 745 | |
| Continuing operations | |||||||
| Basic earnings per share, SEK | 1.59 | 1.64 | 1.59 | 0.37 | 3.88 | ||
| Diluted earnings per share, SEK | 1.58 | 1.62 | 1.58 | 0.37 | 3.87 | ||
| Total operations | |||||||
| Basic earnings per share, SEK | 1.19 | 1.60 | 1.19 | 0.31 | 3.07 | ||
| Diluted earnings per share, SEK | 1.18 | 1.58 | 1.18 | 0.31 | 3.06 |
Statement of comprehensive income
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net profit | 2 616 | 3 509 | -25 | 2 616 | 689 | 6 798 | |
| Available-for-sale financial assets | 11 | - 377 | 11 | 281 | -96 | - 629 | |
| Cash flow hedges | - 478 | - 731 | -35 | - 478 | - 257 | 86 | -1 215 |
| Translation of foreign operations | - 262 | 215 | - 262 | - 267 | -2 | - 733 | |
| Deferred taxes on translation effects | - 73 | - 186 | -61 | - 73 | - 661 | -89 | -1 574 |
| Other | - 210 | - 61 | - 210 | 26 | 100 | ||
| Other comprehensive income (net of tax) | - 1 012 | - 1 140 | - 11 | - 1 012 | - 878 | 15 | -4 051 |
| Total comprehensive income | 1 604 | 2 369 | - 32 | 1 604 | - 189 | 2 747 | |
| Attributable to minority interests | 8 | - 3 | 8 | 14 | |||
| Attributable to equity holders | 1 596 | 2 372 | -33 | 1 596 | - 189 | 2 733 |
Key figures – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||
|---|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | 2010 | |
| Continuing operations | |||||
| Return on equity, continuing operations, % | 14.06 | 14.62 | 14.06 | 3.30 | 8.65 |
| Basic earnings per share, continuing operations, SEK | 1.59 | 1.64 | 1.59 | 0.37 | 3.88 |
| Diluted earnings per share, continuing operations, SEK | 1.58 | 1.62 | 1.58 | 0.37 | 3.87 |
| Cost/income ratio, continuing operations | 0.60 | 0.62 | 0.60 | 0.64 | 0.65 |
| Number of full time equivalents, continuing operations* | 17,426 | 17,347 | 17,264 | 17,021 | 17,104 |
| Total operations | |||||
| Return on equity, % | 10.47 | 14.28 | 10.47 | 2.71 | 6.84 |
| Return on total assets, % | 0.49 | 0.63 | 0.49 | 0.12 | 0.30 |
| Return on risk-weighted assets, % | 1.34 | 1.73 | 1.34 | 0.34 | 0.83 |
| Basic earnings per share, SEK | 1.19 | 1.60 | 1.19 | 0.31 | 3.07 |
| Weighted average number of shares, millions** | 2,194 | 2,194 | 2,194 | 2,194 | 2,194 |
| Diluted earnings per share, SEK | 1.18 | 1.58 | 1.18 | 0.31 | 3.06 |
| Weighted average number of diluted shares, millions*** | 2,206 | 2,212 | 2,206 | 2,199 | 2,202 |
| Net worth per share, SEK | 49.79 | 50.34 | 49.79 | 50.07 | 50.34 |
| Average equity, SEK, billion | 99.7 | 98.4 | 99.7 | 99.3 | 98.9 |
| Credit loss level, % | -0.17 | -0.07 | -0.17 | 0.50 | 0.14 |
| Total reserve ratio individually assessed impaired loans, % | 69.0 | 69.2 | 69.0 | 77.0 | 69.2 |
| Net level of impaired loans, % | 0.54 | 0.62 | 0.54 | 0.64 | 0.62 |
| Gross level of impaired loans, % | 1.12 | 1.26 | 1.12 | 1.31 | 1.26 |
| Basel II (Legal reporting with transitional floor) :**** | |||||
| Risk-weighted assets, SEK billion | 777 | 800 | 777 | 812 | 800 |
| Core Tier 1 capital ratio, % | 11.35 | 10.93 | 11.35 | 10.43 | 10.93 |
| Tier 1 capital ratio, % | 13.18 | 12.75 | 13.18 | 12.37 | 12.75 |
| Total capital ratio, % | 12.72 | 12.40 | 12.72 | 13.10 | 12.40 |
| Basel II (without transitional floor): | |||||
| Risk-weighted assets, SEK billion | 678 | 716 | 678 | 723 | 716 |
| Core Tier 1 capital ratio, % | 13.00 | 12.20 | 13.00 | 11.71 | 12.20 |
| Tier 1 capital ratio, % | 15.09 | 14.24 | 15.09 | 13.88 | 14.24 |
| Total capital ratio, % | 14.57 | 13.85 | 14.57 | 14.70 | 13.85 |
| Number of full time equivalents* | 17,512 | 19,220 | 17,354 | 19,134 | 19,125 |
| Assets under custody, SEK billion | 4,948 | 5,072 | 4,948 | 5,127 | 5,072 |
| Assets under management, SEK billion | 1,372 | 1,399 | 1,372 | 1,382 | 1,399 |
| Discontinued operations | |||||
| Basic earnings per share, discontinued operations, SEK | -0.40 | -0.04 | -0.40 | -0.06 | -0.81 |
| Diluted earnings per share, discontinued operations, SEK | -0.40 | -0.04 | -0.40 | -0.06 | -0.81 |
* Quarterly numbers are for last month of quarter. Accumulated numbers are average for the period.
** The number of issued shares was 2,194,171,802. SEB owned 267,360 Class A shares for the employee stock option programme at year end 2010. During 2011 SEB has repurchased 300,000 shares and 265,087 have been sold as employee stock options have been exercised. Thus, as at 31 March 2011 SEB owned 302,273 Class A-shares with a market value of SEK 17m.
*** Calculated dilution based on the estimated economic value of the long-term incentive programmes.
**** 80 per cent of RWA in Basel I
Income statement on quarterly basis - SEB Group
| Q1 | Q4 | Q3 | Q2 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 | 2010 | 2010 |
| Net interest income | 4 261 | 4 526 | 4 180 | 3 762 | 3 542 |
| Net fee and commission income | 3 503 | 3 906 | 3 387 | 3 673 | 3 194 |
| Net financial income | 1 235 | 512 | 727 | 977 | 950 |
| Net life insurance income | 782 | 780 | 818 | 778 | 879 |
| Net other income | - 109 | 314 | - 230 | 34 | 170 |
| Total operating income | 9 672 | 10 038 | 8 882 | 9 224 | 8 735 |
| Staff costs | -3 610 | -3 558 | -3 392 | -3 616 | -3 438 |
| Other expenses | -1 798 | -1 965 | -1 679 | -1 875 | -1 784 |
| Depreciation, amortisation and impairment of tangible and | |||||
| intangible assets | - 433 | - 650 | - 405 | - 416 | - 409 |
| Restructuring costs | - 9 | - 755 | |||
| Total operating expenses | -5 841 | -6 182 | -6 231 | -5 907 | -5 631 |
| Profit before credit losses | 3 831 | 3 856 | 2 651 | 3 317 | 3 104 |
| Gains less losses on disposals of tangible and intangible | |||||
| assets | 6 | 21 | - 3 | - 4 | |
| Net credit losses | 537 | 419 | 196 | - 639 | -1 813 |
| Operating profit | 4 374 | 4 296 | 2 847 | 2 675 | 1 287 |
| Income tax expense | - 865 | - 704 | - 765 | - 600 | - 452 |
| Net profit from continuing operations | 3 509 | 3 592 | 2 082 | 2 075 | 835 |
| Discontinued operations | - 893 | - 83 | -1 486 | - 71 | - 146 |
| Net profit | 2 616 | 3 509 | 596 | 2 004 | 689 |
| Attributable to minority interests | 14 | 6 | 15 | 17 | 15 |
| Attributable to equity holders | 2 602 | 3 503 | 581 | 1 987 | 674 |
| Continuing operations | |||||
| Basic earnings per share, SEK | 1.59 | 1.64 | 0.94 | 0.94 | 0.37 |
| Diluted earnings per share, SEK | 1.58 | 1.62 | 0.94 | 0.94 | 0.37 |
| Total operations | |||||
| Basic earnings per share, SEK | 1.19 | 1.60 | 0.26 | 0.91 | 0.31 |
| Diluted earnings per share, SEK | 1.18 | 1.58 | 0.26 | 0.90 | 0.31 |
Income statement, by Division – SEB Group
| Merchant | Retail | Wealth | Other incl | ||||
|---|---|---|---|---|---|---|---|
| Jan-Mar 2011, SEK m | Banking | Banking | Management | Life* | Baltic | eliminations | SEB Group |
| Net interest income | 1 732 | 1 349 | 143 | - 8 | 456 | 589 | 4 261 |
| Net fee and commission income | 1 259 | 788 | 994 | 209 | 253 | 3 503 | |
| Net financial income | 1 085 | 64 | 15 | 80 | - 9 | 1 235 | |
| Net life insurance income | 1 138 | - 356 | 782 | ||||
| Net other income | 35 | 14 | 2 | - 5 | - 155 | - 109 | |
| Total operating income | 4 111 | 2 215 | 1 154 | 1 130 | 740 | 322 | 9 672 |
| Staff costs | -1 062 | - 673 | - 368 | - 292 | - 146 | -1 069 | -3 610 |
| Other expenses | -1 207 | - 882 | - 368 | - 135 | - 250 | 1 044 | -1 798 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 51 | - 19 | - 12 | - 192 | - 32 | - 127 | - 433 |
| Total operating expenses | -2 320 | -1 574 | - 748 | - 619 | - 428 | - 152 | -5 841 |
| Profit before credit losses | 1 791 | 641 | 406 | 511 | 312 | 170 | 3 831 |
| Gains less losses on disposals of tangible and | |||||||
| intangible assets | 3 | 1 | 2 | 6 | |||
| Net credit losses | - 48 | - 98 | - 1 | 572 | 112 | 537 | |
| Operating profit | 1 746 | 544 | 405 | 511 | 886 | 282 | 4 374 |
* Business result in Life amounted to SEK 538m (777), of which change in surplus values was net SEK 27m (195).
Merchant Banking
Merchant Banking has two large business areas - Trading and Capital Markets and Global Transaction Services. The other business units, e.g. the CRM function, Commercial Real Estate, Corporate Finance and Structured Finance, are consolidated in Corporate Banking.
Income statement
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 1 732 | 1 966 | - 12 | 1 732 | 1 782 | - 3 | 7 328 |
| Net fee and commission income | 1 259 | 1 503 | - 16 | 1 259 | 1 079 | 17 | 5 275 |
| Net financial income | 1 085 | 607 | 79 | 1 085 | 832 | 30 | 3 366 |
| Net other income | 35 | 155 | - 77 | 35 | 84 | 322 | |
| Total operating income | 4 111 | 4 231 | - 3 | 4 111 | 3 777 | 9 | 16 291 |
| Staff costs | -1 062 | -1 084 | - 2 | -1 062 | - 956 | 11 | -3 959 |
| Other expenses | -1 207 | -1 230 | - 2 | -1 207 | -1 150 | 5 | -4 649 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 51 | - 63 | - 19 | - 51 | - 28 | 82 | - 170 |
| Total operating expenses | -2 320 | -2 377 | - 2 | -2 320 | -2 134 | 9 | -8 778 |
| Profit before credit losses | 1 791 | 1 854 | - 3 | 1 791 | 1 643 | 9 | 7 513 |
| Gains less losses on disposals of tangible and | |||||||
| intangible assets | 3 | 23 | - 87 | 3 | - 3 | - 200 | 20 |
| Net credit losses | - 48 | - 99 | - 52 | - 48 | - 104 | - 54 | - 203 |
| Operating profit | 1 746 | 1 778 | -2 | 1 746 | 1 536 | 14 | 7 330 |
| Cost/Income ratio | 0,56 | 0,56 | 0,56 | 0,56 | 0,54 | ||
| Business equity, SEK bn | 25,6 | 25,7 | 25,6 | 25,8 | 25,8 | ||
| Return on business equity, % | 19,7 | 19,9 | 19,7 | 17,1 | 20,5 | ||
| Number of full time equivalents | 2 481 | 2 394 | 2 484 | 2 316 | 2 343 |
- Growth initiatives on track
- Continued franchise growth and normal seasonality in the quarter
- Strong asset quality
Comments to the first quarter
Improved market sentiment, interest rate hikes and higher customer activity characterised the first quarter of 2011 in the Nordic region. In combination with increased tension and a higher degree of uncertainty in the Middle East, North Africa and Japan this led to higher volatility, especially in the capital markets. Customer surveys, for instance by TNS Sifo Prospera, confirmed SEB's enhanced position as the leading corporate bank.
Operating income for the first quarter increased 9 per cent compared with 2010. It was a strong start of the year for all business areas, but particularly in Trading and Capital Markets. Operating expenses for the first quarter were up 9 per cent compared with 2010, largely related to the investments outside Sweden. Operating profit amounted to SEK 1,746m, a 14 per cent increase year-on-year. Asset quality remained strong.
Corporate Banking started the year with a solid first quarter even though both M&A and Equity Capital Market activities were lower than previous quarters. The demand for corporate borrowing continued to increase. Global Transaction Services performed well in all segments with increasing customer activities and volumes. At the end of the quarter, assets under custody were SEK 4,948bn (5,072 at year-end 2010).
Trading and Capital Markets performed stronger across all asset classes. Capital Markets continued to improve revenues driven by high activity in all areas. TNS Sifo Prospera awarded SEB as the best lead arranger for bond issuance on behalf of Swedish issuers. Foreign exchange delivered stable income driven by higher customer activity in turn fuelled by the higher volatility in the FX market. Improved sentiment also fuelled stock market volumes and SEB Enskilda Equities confirmed the strong franchise with the largest market share on the Nordic and Baltic exchanges.
The first phase of the growth initiatives was completed and the strong platforms have been upgraded to cater for a growing customer base.
Retail Banking
The Retail Banking division consists of two business areas - Sweden and Card.
Income statement
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 1 349 | 1 332 | 1 | 1 349 | 1 201 | 12 | 5 008 |
| Net fee and commission income | 788 | 848 | - 7 | 788 | 789 | 0 | 3 240 |
| Net financial income | 64 | 74 | - 14 | 64 | 65 | - 2 | 273 |
| Net other income | 14 | 14 | 0 | 14 | 9 | 56 | 48 |
| Total operating income | 2 215 | 2 268 | - 2 | 2 215 | 2 064 | 7 | 8 569 |
| Staff costs | - 673 | - 647 | 4 | - 673 | - 658 | 2 | -2 650 |
| Other expenses | - 882 | - 928 | - 5 | - 882 | - 778 | 13 | -3 381 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 19 | - 21 | - 10 | - 19 | - 21 | - 10 | - 84 |
| Total operating expenses | -1 574 | -1 596 | - 1 | -1 574 | -1 457 | 8 | -6 115 |
| Profit before credit losses | 641 | 672 | - 5 | 641 | 607 | 6 | 2 454 |
| Gains less losses on disposals of tangible and | |||||||
| intangible assets | 1 | 1 | - 1 | ||||
| Net credit losses | - 98 | - 144 | - 32 | - 98 | - 196 | - 50 | - 543 |
| Operating profit | 544 | 528 | 3 | 544 | 411 | 32 | 1 910 |
| Cost/Income ratio | 0,71 | 0,70 | 0,71 | 0,71 | 0,71 | ||
| Business equity, SEK bn | 9,9 | 9,8 | 9,9 | 9,5 | 9,7 | ||
| Return on business equity, % | 16,2 | 16,0 | 16,2 | 12,8 | 14,5 | ||
| Number of full time equivalents | 3 498 | 3 441 | 3 487 | 3 310 | 3 404 |
- Volumes drive increase in net interest income
- Increased corporate lending and market share
- Strong asset quality
Comments to the first quarter
The Nordic macro economic situation of increased market interest rates and stabilised household financials, support the Retail banking operations. Business activity continued at a high level with a significant number of customer meetings to enhance customer experience and long-term customer relations.
Operating profit for the first quarter 2011 increased to SEK 544m (411). This was primarily due to an increase in net interest income to SEK 1,349bn (1,201).
Operating expenses grew by 8 per cent compared with the first quarter in 2010, primarily as a result of investments in mobile- and internet banking services to secure a sustainable growth based on quality customer service. Availability and core banking systems are key investment areas.
Net credit losses decreased to SEK 98m (196). Retail Sweden's operating profit for the first quarter of 2011 reached SEK 336m (201). Private mortgage volumes were on par with market growth and reached SEK 270bn (258). Mortgage growth was subdued in Stockholm, and a stabilising trend is evident across Sweden. Customers are to a higher
extent selecting fixed interest on new mortgages. A solid inflow of deposits resulted in a total volume of SEK 175bn (154 at the end of March 2010), net of cyclical outflows due to tax payments. Deposit margins increased compared with both the first and fourth quarter of 2010.
SEB's advancement within the SME segment continued. The corporate portfolio rose by 6 per cent in the quarter to SEK 97bn and margins increased slightly.
The Card business' operating profit amounted to SEK 208m (210). The result is negatively affected by higher short-term interest rates, FX effects and a strategic decision to discontinue a lending portfolio in Norway. The underlying business is characterised by stable costs, high level of business activity and undertakings aiming to improve efficiency. Moreover, lower lending losses have a substantial impact on the result.
As announced on 28 March, SEB acquired DnB NOR's retail customer mortgage loan portfolio in Sweden. The agreement covers around 5,000 customers and a mortgage lending volume of approximately SEK 7bn.
Wealth Management
The Wealth Management division has two business areas – Private Banking and Institutional Clients.
Income statement
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 143 | 136 | 5 | 143 | 111 | 29 | 485 |
| Net fee and commission income | 994 | 1 115 | - 11 | 994 | 868 | 15 | 3 752 |
| Net financial income | 15 | 30 | - 50 | 15 | 18 | - 17 | 89 |
| Net other income | 2 | 4 | - 50 | 2 | 5 8 |
||
| Total operating income | 1 154 | 1 285 | - 10 | 1 154 | 997 | 16 | 4 384 |
| Staff costs | - 368 | - 344 | 7 | - 368 | - 309 | 19 | -1 298 |
| Other expenses | - 368 | - 422 | - 13 | - 368 | - 350 | 5 | -1 528 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 12 | - 23 | - 48 | - 12 | - 20 | - 40 | - 84 |
| Total operating expenses | - 748 | - 789 | - 5 | - 748 | - 679 | 10 | -2 910 |
| Profit before credit losses | 406 | 496 | - 18 | 406 | 318 | 28 | 1 474 |
| Gains less losses on disposals of tangible and | |||||||
| intangible assets | |||||||
| Net credit losses | - 1 | 7 | - 114 | - 1 | - 1 | 0 | 3 |
| Operating profit | 405 | 503 | - 19 | 405 | 317 | 28 | 1 477 |
| Cost/Income ratio | 0,65 | 0,61 | 0,65 | 0,68 | 0,66 | ||
| Business equity, SEK bn | 5,0 | 5,3 | 5,0 | 5,2 | 5,3 | ||
| Return on business equity, % | 23,1 | 27,4 | 23,1 | 17,7 | 20,2 | ||
| Number of full time equivalents | 1 007 | 1 005 | 1 006 | 956 | 963 |
- Increased performance and transaction fees
- High net sales with close to 400 new customers within Private Banking
- New sales through Merchant Banking collaboration
Comments to the first quarter
Operating income increased by 16 per cent compared with the same period last year. Performance and transaction fees increased to SEK 155m (107). Net interest income increased by 29 per cent compared with last year and base commissions have strengthened due to SEB's asset mix and net sales. Operating expenses increased 10 per cent compared with last year. This was partially the result of an increased number of employees, mainly within Private Banking, who were hired to meet customer demand.
Private Banking continued its successful expansion from its number one position and started the year with strong net sales amounting to SEK 10bn (6). Various group-wide initiatives were launched to enhance SEB's offering to wealthy individuals and entrepreneurs. As an example Direct Market Access (DMA) is now available to the most active trading
customers within Private Banking. SEB's Family Office offers an individualised investment process.
In Euromoney's yearly rating, SEB retains its first position for the third year in a row as the leading private bank in Sweden and takes pole position in Finland.
An increased collaboration with the institutional business within Merchant Banking has led to new business within Institutional Clients. One example is the new hedge fund-offunds with Private Equity upside.
Based on the demand and interest from customers, SEB's own Exchange Traded Funds (ETF) were successfully launched under the trademark SpotR.
Assets under management decreased by 1 per cent, to SEK 1,303bn, compared with the end of 2010, due to falling asset values.
Life
Life consists of three business areas - SEB Trygg Liv (Sweden), SEB Pension (Denmark) and SEB Life & Pension International.
Income statement
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | - 8 | - 5 | 60 | - 8 | - 2 | - 11 | |
| Net life insurance income | 1 138 | 1 106 | 3 | 1 138 | 1 186 | - 4 | 4 550 |
| Total operating income | 1 130 | 1 101 | 3 | 1 130 | 1 184 | - 5 | 4 539 |
| Staff costs | - 292 | - 278 | 5 | - 292 | - 282 | 4 | -1 123 |
| Other expenses | - 135 | - 141 | - 4 | - 135 | - 147 | - 8 | - 589 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 192 | - 176 | 9 | - 192 | - 173 | 11 | - 690 |
| Total operating expenses | - 619 | - 595 | 4 | - 619 | - 602 | 3 | -2 402 |
| Operating profit | 511 | 506 | 1 | 511 | 582 | - 12 | 2 137 |
| Change in surplus values, net | 27 | 294 | - 91 | 27 | 195 | - 86 | 1 045 |
| Business result | 538 | 800 | - 33 | 538 | 777 | - 31 | 3 182 |
| Cost/Income ratio | 0,55 | 0,54 | 0,55 | 0,51 | 0,53 | ||
| Business equity, SEK bn | 6,4 | 6,0 | 6,4 | 6,0 | 6,0 | ||
| Return on business equity, % | |||||||
| based on operating profit | 28,1 | 29,7 | 28,1 | 34,1 | 31,3 | ||
| based on business result | 29,6 | 46,9 | 29,6 | 45,6 | 46,7 | ||
| Number of full time equivalents | 1 237 | 1 226 | 1 235 | 1 175 | 1 190 |
The surplus value in the traditional business in Denmark has been included in the surplus value reporting from Q1 2011 and historical figures are restated.
Higher unit-linked income but lower income from traditional portfolios
- Continued high premium inflows
- Customer satisfaction improved in several areas
Comments on the first quarter
The work to further strengthen long-term customer relationships continues. Customer surveys confirm that customer satisfaction has improved in several areas. This is due to initiatives such as better availability at customer service centres combined with improved advisory service and enhanced product offerings.
The portfolio bond offering will be enhanced through the previously announced acquisition of Irish Life International. This company has assets under management of some SEK 18bn and premium income of SEK 3bn. The acquisition will strengthen the distribution capacity across Europe and especially in the Private Banking segment.
The continued high premium inflow confirmed that the initiatives were well received by customers. Total premium income amounted to SEK 8.5bn which is at the same level as the strong first quarter 2010 and 10 per cent above the fourth quarter last year.
Operating profit decreased by 12 per cent or SEK 71m compared with last year. The decrease was mainly due to lower return in investment portfolios for own account and reduced income from the traditional life portfolios in Denmark and the Baltics. The Swedish result improved supported by strong income in the unit-linked area. The total unit-linked fund value was unchanged from year-end 2010, at SEK 180bn, and grew compared with the SEK 165bn volume managed a year ago.
Operating expenses increased by 3 per cent, partly due to higher amortisation of deferred acquisition costs. Also, expenses rose due to the hiring of more sales personnel within SEB Trygg Liv to further improve distribution capacity.
Unit-linked insurance remains the major product group, representing 88 per cent (86) of total sales. The share of corporate paid policies decreased to 58 per cent (60). Continued focus on unit-linked insurance has led to moderate risk exposure and a high return on business equity.
Total assets under management (net assets) amounted to SEK 425bn, which was an increase of 4 per cent from a year ago but virtually unchanged from the SEK 424bn at year-end 2010.
Baltic
The Baltic division encompasses the Retail, Trading & Capital Markets and Global Transaction Services operations in Estonia, Latvia and Lithuania. In the Fact Book the full Baltic geographical segmentation is also reported, including the operations in Corporate Finance, Structured Finance, Wealth Management and Life.
| Income statement | |||||||
|---|---|---|---|---|---|---|---|
| Q1 | Q4 | Jan- Mar | Full year | ||||
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 456 | 492 | - 7 | 456 | 506 | - 10 | 1 923 |
| Net fee and commission income | 209 | 235 | - 11 | 209 | 228 | - 8 | 964 |
| Net financial income | 80 | 60 | 33 | 80 | 131 | - 39 | 401 |
| Net other income | - 5 | 11 | - 145 | - 5 | 4 | 52 | |
| Total operating income | 740 | 798 | - 7 | 740 | 869 | - 15 | 3 340 |
| Staff costs | - 146 | - 163 | - 10 | - 146 | - 206 | - 29 | - 728 |
| Other expenses | - 250 | - 290 | - 14 | - 250 | - 306 | - 18 | -1 177 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 32 | - 235 | - 86 | - 32 | - 21 | 52 | - 296 |
| Total operating expenses | - 428 | - 688 | - 38 | - 428 | - 533 | - 20 | -2 201 |
| Profit before credit losses | 312 | 110 | 184 | 312 | 336 | - 7 | 1 139 |
| Gains less losses on disposals of tangible and | |||||||
| intangible assets | 2 | - 4 | - 150 | 2 | - 5 |
||
| Net credit losses | 572 | 736 | - 22 | 572 | -1 431 | - 140 | - 873 |
| Operating profit | 886 | 842 | 5 | 886 | -1 095 | - 181 | 261 |
| Cost/Income ratio | 0,58 | 0,86 | 0,58 | 0,61 | 0,66 | ||
| Business equity, SEK bn | 8,3 | 11,8 | 8,3 | 11,8 | 11,8 | ||
| Return on business equity, % | 37,3 | 25,7 | 37,3 | negative | 2,2 | ||
| Number of full time equivalents | 3 200 | 3 203 | 3 193 | 3 233 | 3 208 |
- Improved asset quality supported further reversals of credit reserves
- Continued focus on cost control
- Corporate business picking up
Comments on the first quarter
The economic recovery in the Baltic region that began in 2010 gathered pace during the first quarter. Unemployment levels are now decreasing in all three Baltic countries and the internal devaluation processes are coming to an end. As presented in SEB's Eastern European Outlook in March, the GDP growth rate forecast for 2011 is 5 per cent for Estonia and 4 per cent for Lithuania and Latvia.
As of 1 January 2011, Estonia changed its currency from the Estonian kroon to the Euro. In Latvia, SEB was selected to grant state guaranteed student loans during 2011. JSC Latvenergo awarded SEB Latvia its "Powered by Green" hallmark in recognition of SEB's use of power from sustainable resources. Euromoney nominated SEB as the Best Private Bank in Lithuania.
Across the three Baltic countries, SEB launched its first pan-Baltic mortgage campaign to secure SEB's strong position in the Baltic mortgage market. Corporate business in the Baltics is picking up.
Operating income for the first quarter decreased to SEK 740m (869). Excluding the strengthened Swedish krona income fell by 4 per cent. Deposit margins remained low due to the ongoing low interest rate environment. As at 31 March 2011, pan-Baltic deposit volumes were slightly higher on a year-on-year basis, although gross lending volumes were lower. Loan volumes have shown some signs of stabilisation during recent months, with reasonable loan margins seen on new lending.
Operating expenses for the quarter was SEK 428m (533), partly reflecting the proactively lowered underlying cost base in the Baltic countries. Operating profit was SEK 886m (-1,095). The improvement was due to significantly lower provisions for credit losses, with a net release of provisions totalling SEK 572m for the quarter. Non-performing loans declined during the quarter in all three countries. The total reserve ratio was reduced to 64 per cent.
At the end of March, SEB's real estate holding companies in the three Baltic countries had acquired assets with a total volume of SEK 534m.
Result by geography – January-March 2011
As the Relationship bank, SEB offers universal financial advice and a wide range of financial services in Sweden and the Baltic countries. In Denmark, Finland, Norway and Germany, the bank's operations have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients.
- Nordic business generated 74 per cent of operating income in the first quarter of 2011
- Improved operating profit in local currency in all of SEB's major markets
- Continued asset quality improvement, especially in the Baltic countries
Comments to the first quarter
In Sweden, which accounts for 57 per cent of SEB's operating Jan – Mar 2011 income, operating profit was 20 per cent higher than the corresponding quarter last year. Corporate and institutional activities were higher and SEB continued to advance in the SME segment. Customers shifted to higher risk investments in equity leading to higher performance fees. The results from both Retail and Wealth increased.
In Denmark Capital Markets activities and Corporate banking continued to show strong results. The Life operations almost matched the peak in 2010 in terms of total gross premium, but the operating profit was negatively affected by lower return on investment portfolios for own account. Wealth Management continued to deepen the private banking and institutional customer franchise, whereas Kort recorded lower credit losses.
In Finland the Trading and Capital Markets and Corporate Banking units were successful. Wealth Management continued to report a strong result with an increase in operating income of 40 per cent compared with last year. Assets under management increased 6 per cent year-on-year and the base commissions have increased as well. Income from the sale of structured products also contributed to a good result.
In Norway corporate activity increased during the period. SEB participated in, or arranged, a large number of the major transactions. Trading activity stabilised on a higher level than
* Excluding centralised Treasury operations
last year, but now with even tougher competition. Card volumes and assets under management increased.
In Estonia, Latvia and Lithuania, the improved economic situation continues to stepwise contribute to improved operating profit (see the Baltic division information, page 15).
In Germany the start of 2011 was strong for all business areas with an increase of 25 per cent in operating income in local currency compared with the same quarter of 2010. The Merchant Banking growth strategy and increased client focus led to a number of new clients, higher product penetration and improved visibility in the German market and improved operating income. For Wealth Management, the stronger performance from the real estate funds contributed positively.
| Distribution by country Jan - Mar | Operating profit | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total operating income Total operating expenses |
Operating profit | in local currency | ||||||||||
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2011 | 2010 | % | 2011 | 2010 | % |
| Sweden | 5 399 | 4 766 | 13 | -3 899 | -3 427 | 14 | 1 377 | 1 147 | 20 | |||
| Norway | 701 | 726 | -3 | - 266 | - 335 | -21 | 400 | 340 | 18 | 353 | 277 | 28 |
| Denmark | 708 | 724 | -2 | - 384 | - 380 | 1 | 309 | 318 | -3 | 260 | 238 | 9 |
| Finland | 338 | 254 | 33 | - 160 | - 101 | 58 | 178 | 150 | 19 | 20 | 15 | 33 |
| Germany* | 742 | 669 | 11 | - 471 | - 475 | -1 | 295 | 153 | 93 | 33 | 15 | 116 |
| Estonia | 272 | 315 | -14 | - 145 | - 197 | -26 | 146 | - 33 | 17 | -3 | ||
| Latvia | 241 | 297 | -19 | - 103 | - 141 | -27 | 320 | - 418 | 25 | -30 | ||
| Lithuania | 335 | 322 | 4 | - 204 | - 211 | -3 | 503 | - 595 | 196 | -206 | ||
| Other countries and eliminations | 936 | 662 | 41 | - 209 | - 364 | -43 | 846 | 225 | ||||
| Total | 9 672 | 8 735 | 11 | -5 841 | -5 631 | 4 | 4 374 | 1 287 |
*Excluding centralised Treasury operations
The SEB Group
Net interest income – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Interest income | 12 937 | 11 653 | 11 | 12 937 | 11 307 | 14 | 46 041 |
| Interest expense | -8 676 | -7 127 | 22 | -8 676 | -7 765 | 12 | -30 031 |
| Net interest income | 4 261 | 4 526 | - 6 | 4 261 | 3 542 | 20 | 16 010 |
Net fee and commission income – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Issue of securities | 62 | 168 | - 63 | 62 | 45 | 38 | 357 |
| Secondary market | 440 | 546 | - 19 | 440 | 426 | 3 | 1 765 |
| Custody and mutual funds | 1 903 | 1 920 | - 1 | 1 903 | 1 667 | 14 | 7 067 |
| Securities commissions | 2 405 | 2 634 | - 9 | 2 405 | 2 138 | 12 | 9 189 |
| Payments | 392 | 372 | 5 | 392 | 394 | - 1 | 1 561 |
| Card fees | 947 | 944 | 0 | 947 | 989 | - 4 | 3 992 |
| Payment commissions | 1 339 | 1 316 | 2 | 1 339 | 1 383 | - 3 | 5 553 |
| Advisory | 66 | 137 | - 52 | 66 | 64 | 3 | 482 |
| Lending | 446 | 462 | - 3 | 446 | 336 | 33 | 1 686 |
| Deposits | 26 | 26 | 26 | 26 | 103 | ||
| Guarantees | 95 | 105 | - 10 | 95 | 112 | - 15 | 428 |
| Derivatives | 151 | 117 | 29 | 151 | 134 | 13 | 518 |
| Other | 124 | 178 | - 30 | 124 | 148 | - 16 | 712 |
| Other commissions | 908 | 1 025 | - 11 | 908 | 820 | 11 | 3 929 |
| Fee and commission income | 4 652 | 4 975 | - 6 | 4 652 | 4 341 | 7 | 18 671 |
| Securities commissions | - 352 | - 341 | 3 | - 352 | - 290 | 21 | -1 216 |
| Payment commissions | - 542 | - 450 | 20 | - 542 | - 587 | - 8 | -2 245 |
| Other commissions | - 255 | - 278 | - 8 | - 255 | - 270 | - 6 | -1 050 |
| Fee and commission expense | -1 149 | -1 069 | 7 | -1 149 | -1 147 | 0 | -4 511 |
| Securities commissions, net | 2 053 | 2 293 | - 10 | 2 053 | 1 848 | 11 | 7 973 |
| Payment commissions, net | 797 | 866 | - 8 | 797 | 796 | 0 | 3 308 |
| Other commissions, net | 653 | 747 | - 13 | 653 | 550 | 19 | 2 879 |
| Net fee and commission income | 3 503 | 3 906 | - 10 | 3 503 | 3 194 | 10 | 14 160 |
Net financial income – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Equity instruments and related derivatives | 146 | - 31 | 146 | 138 | 6 | 629 | |
| Debt instruments and related derivatives | 218 | - 70 | 218 | 327 | -33 | 479 | |
| Currency related | 865 | 605 | 43 | 865 | 495 | 75 | 2 106 |
| Other financial instruments | 6 | 4 | 50 | 6 | 2 | 200 | 12 |
| Impairments | 4 | -100 | - 12 | -100 | - 60 | ||
| Net financial income | 1 235 | 512 | 141 | 1 235 | 950 | 30 | 3 166 |
Net credit losses – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Provisions: | |||||||
| Net collective provisions for individually assessed | |||||||
| loans | 385 | 782 | -51 | 385 | - 738 | -152 | 665 |
| Net collective provisions for portfolio assessed | |||||||
| loans | - 35 | - 13 | 169 | - 35 | - 398 | -91 | - 701 |
| Specific provisions | - 327 | - 431 | -24 | - 327 | - 715 | -54 | -2 405 |
| Reversal of specific provisions no longer required | 578 | 479 | 21 | 578 | 349 | 66 | 1 503 |
| Net provisions for off-balance sheet items | 14 | 16 | 14 | - 36 | -139 | - 14 | |
| Net provisions | 615 | 833 | -26 | 615 | -1 538 | -140 | - 952 |
| Write-offs: | |||||||
| Total write-offs | - 478 | - 833 | -43 | - 478 | - 574 | -17 | -2 310 |
| Reversal of specific provisions utilized for write-offs | 369 | 394 | -6 | 369 | 263 | 40 | 1 315 |
| Write-offs not previously provided for | - 109 | - 439 | - 109 | - 311 | -65 | - 995 | |
| Recovered from previous write-offs | 31 | 25 | 24 | 31 | 36 | -14 | 110 |
| Net write-offs | - 78 | - 414 | - 78 | - 275 | -72 | - 885 | |
| Net credit losses | 537 | 419 | 537 | -1 813 | -130 | -1 837 |
Balance sheet – SEB Group
| 31 March | 31 Dec | 31 March | |
|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 |
| Cash and cash balances with central banks | 15 914 | 46 488 | 19 634 |
| Loans to credit institutions1) | 199 060 | 204 188 | 272 242 |
| Loans to the public | 1 113 807 | 1 074 879 | 1 203 833 |
| Financial assets at fair value * | 644 421 | 617 746 | 623 302 |
| Available-for-sale financial assets * | 68 635 | 66 970 | 70 954 |
| Held-to-maturity investments * | 1 181 | 1 451 | 1 303 |
| Assets held for sale | 74 951 | 523 | |
| Investments in associates | 1 079 | 1 022 | 1 018 |
| Tangible and intangible assets | 27 212 | 27 035 | 27 206 |
| Other assets | 47 112 | 65 091 | 65 275 |
| Total assets | 2 118 421 | 2 179 821 | 2 285 290 |
| Deposits from credit institutions | 201 503 | 212 624 | 393 379 |
| Deposits and borrowing from the public | 707 095 | 711 541 | 739 907 |
| Liabilities to policyholders | 263 075 | 263 970 | 255 289 |
| Debt securities | 549 849 | 530 483 | 469 312 |
| Financial liabilities at fair value | 195 347 | 200 690 | 209 524 |
| Liabilities held for sale | 48 339 | 141 | |
| Other liabilities | 78 092 | 85 331 | 80 606 |
| Provisions | 1 612 | 1 748 | 1 724 |
| Subordinated liabilities | 23 992 | 25 552 | 35 886 |
| Total equity | 97 856 | 99 543 | 99 522 |
| Total liabilities and equity | 2 118 421 | 2 179 821 | 2 285 290 |
| * Of which bonds and other interest bearing securities including derivatives. | 423 328 | 416 849 | 463 267 |
1) Loans to credit institutions and liquidity placements with other direct participants in interbank fund transfer systems.
A more detailed balance sheet is included in the Fact Book.
Off-balance sheet items – SEB Group
| 31 March | 31 Dec | 31 March | |
|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 |
| Collateral pledged for own liabilities | 231 534 | 231 334 | 361 745 |
| Other pledged collateral | 259 466 | 214 989 | 232 110 |
| Contingent liabilities | 80 880 | 82 048 | 82 254 |
| Commitments | 398 814 | 388 619 | 387 568 |
Statement of changes in equity – SEB Group
| Available | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| for-sale | Translation | Total Share | |||||||
| Share | Retained | financial | Cash flow | of foreign | holders' | Minority | |||
| SEK m | capital | earnings | assets | hedges | operations | Other | equity | interests Total Equity | |
| Jan-Mar 2011 | |||||||||
| Opening balance | 21 942 | 80 571 | -1 725 | - 422 | -1 145 | 56 | 99 277 | 266 | 99 543 |
| Net profit | 2 602 | 2 602 | 14 | 2 616 | |||||
| Other comprehensive income (net of tax) | 11 | - 478 | -262 | -277 | -1 006 | - 6 | -1 012 | ||
| Total comprehensive income | 2 602 | 11 | - 478 | - 262 | - 277 | 1 596 | 8 | 1 604 | |
| Dividend to shareholders | -3 291 | -3 291 | -3 291 | ||||||
| Closing balance | 21 942 | 79 882 | -1 714 | - 900 | -1 407 | - 221 | 97 582 | 274 | 97 856 |
| Jan-Dec 2010 Opening balance |
21 942 | 76 699 | -1 096 | 793 | -412 | 1 491 | 99 417 | 252 | 99 669 |
| Net profit | 6 745 | 6 745 | 53 | 6 798 | |||||
| Other comprehensive income (net of tax) | - 629 | -1 215 | -733 | -1 435 | -4 012 | - 39 | -4 051 | ||
| Total comprehensive income | 6 745 | - 629 | -1 215 | - 733 | -1 435 | 2 733 | 14 | 2 747 | |
| Dividend to shareholders | -2 194 | -2 194 | -2 194 | ||||||
| Swap hedging of employee stock option programme* | - 713 | -713 | -713 | ||||||
| Eliminations of repurchased shares for employee stock | |||||||||
| option programme** | 34 | 34 | 34 | ||||||
| Closing balance | 21 942 | 80 571 | -1 725 | - 422 | -1 145 | 56 | 99 277 | 266 | 99 543 |
| Jan-Mar 2010 | |||||||||
| Opening balance | 21 942 | 76 699 | -1 096 | 793 | -412 | 1 491 | 99 417 | 252 | 99 669 |
| Net profit | 674 | 674 | 15 | 689 | |||||
| Other comprehensive income (net of tax) | 281 | - 257 | -267 | -620 | - 863 | - 15 | - 878 | ||
| Total recognised income | 674 | 281 | - 257 | - 267 | - 620 | - 189 | - 189 | ||
| Swap hedging of employee stock option programme* | 17 | 17 | 17 | ||||||
| Eliminations of repurchased shares for employee stock | |||||||||
| option programme** | 25 | 25 | 25 |
* Includes changes in nominal amounts of equity swaps used for hedging of stock option programmes.
** SEB has repurchased 19.4 million Series A shares for the long-term incentive programmes as decided at the Annual General Meetings in 2002, 2003 and 2004. The acquisition cost for these shares is deducted from shareholders' equity. In 2005 1.0 million shares were transferred from the capital structure programme to the incentive programmes and in 2006 3.1 million shares were sold in accordance with a decision at the Annual General Meeting. As stock options have been exercised during 2005–2010 17.6 million shares have been sold and another 0.3 million shares have been sold in 2011. During 2010, SEB repurchased 0.6 million and during 2011 0.3 million Series A shares for the long-term incentive programmes as decided at the Annual General Meeting. The acquisition cost for these shares is deducted from shareholders' equity. Thus, as of 31 March 2011 SEB owned 0.3 million Class A-shares with a market value of SEK 17m.
Closing balance 21 942 77 415 - 815 536 - 679 871 99 270 252 99 522
Cash flow statement – SEB Group
| Jan - Mar | Full year | |||
|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2010 |
| Cash flow from operating activities | 38 920 | 70 156 | - 45 | - 3 472 |
| Cash flow from investment activities | 89 | 709 | - 87 | 935 |
| Cash flow from financing activities | - 4 886 | - 22 155 | - 78 | - 23 490 |
| Net increase in cash and cash equivalents | 34 123 | 48 710 | - 26 027 | |
| Cash and cash equivalents at the beginning of year | 63 646 | 89 673 | - 29 | 89 673 |
| Net increase in cash and cash equivalents | 34 123 | 48 710 | - 26 027 | |
| Cash and cash equivalents at the end of period1) | 97 769 | 138 383 | - 29 | 63 646 |
1) Cash and cash equivalents at the end of period is defined as Cash and cash balances with central banks and Loans to credit institutions - payable on demand.
Reclassified portfolios – SEB Group
| Q1 | Q4 | Jan - Mar | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | Full year 2010 |
|
| Reclassified, SEK m | ||||||||
| Opening balance | 78 681 | 95 003 | -17 | 78 681 | 125 339 | -37 | 125 339 | |
| Reclassified | ||||||||
| Amortisations | -2 138 | -3 004 | -29 | -2 138 | -1 668 | 28 | -6 618 | |
| Securities sold | -11 008 | -11 164 | -1 | -11 008 | -5 623 | 96 | -25 325 | |
| Accrued coupon | 40 | - 79 | -151 | 40 | 231 | -83 | - 44 | |
| Exchange rate differences | -1 077 | -2 075 | -48 | -1 077 | -4 123 | -74 | -14 671 | |
| Closing balance* | 64 498 | 78 681 | - 18 | 64 498 | 114 156 | -44 | 78 681 | |
| * Market value | 63 544 | 77 138 | -18 | 63 544 | 111 052 | -43 | 77 138 | |
| Fair value impact - if not reclassified, SEK m | ||||||||
| In Equity (AFS origin) | 542 | 112 | 542 | 1 248 | -57 | 2 901 | ||
| In Income Statements (HFT origin) | 47 | 46 | 2 | 47 | 352 | -87 | 49 | |
| Total | 589 | 158 | 589 | 1 600 | -63 | 2 950 | ||
| Effect in Income Statements, SEK m* | ||||||||
| Net interest income | 312 | 232 | 34 | 312 | 380 | -18 | 1 578 | |
| Net financial income | -1 000 | -1 447 | -31 | -1 000 | 1 911 | -152 | -9 060 | |
| Other income | - 159 | - 180 | -12 | - 159 | 30 | - 278 | ||
| Total | - 847 | -1 395 | -39 | - 847 | 2 321 | -136 | -7 764 |
* The effect in the Income Statement is the profit or loss transactions from the reclassified portfolio reported gross. Net interest income is the interest income from the portfolio without taking into account the funding costs. Net financial income is the foreign currency effect related to the reclassified portfolio but does not include the off-setting foreign currency effects from financing activities. Other income is the realised gains or losses from sales in the portfolio.
Non-performing loans – SEB Group
| 31 March | 31 Dec | 31 March | |
|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 |
| Individually assessed impaired loans Impaired loans, past due > 60 days |
12 579 | 14 464 | 17 023 |
| Impaired loans, performing or past due < 60 days | 2 291 | 2 754 | 2 598 |
| Total individually assessed impaired loans | 14 870 | 17 218 | 19 621 |
| Specific reserves | - 7 801 | - 8 883 | - 10 222 |
| for impaired loans, past due > 60 days | - 6 943 | - 7 741 | - 9 025 |
| for impaired loans, performing or past due < 60 days | - 858 | - 1 142 | - 1 197 |
| Collective reserves | - 2 459 | - 3 030 | - 4 893 |
| Impaired loans net | 4 610 | 5 305 | 4 506 |
| Specific reserve ratio for individually assessed impaired loans | 52.5% | 51.6% | 52.1% |
| Total reserve ratio for individually assessed impaired loans | 69.0% | 69.2% | 77.0% |
| Net level of impaired loans | 0.54% | 0.62% | 0.64% |
| Gross level of impaired loans | 1.12% | 1.26% | 1.31% |
| Portfolio assessed loans | |||
| Portfolio assessed loans past due > 60 days | 6 696 | 6 534 | 7 148 |
| Restructured loans | 503 | 502 | 450 |
| Collective reserves for portfolio assessed loans | - 3 544 | - 3 577 | - 3 510 |
| Reserve ratio for portfolio assessed loans | 49.2% | 50.8% | 46.2% |
| Reserves | |||
| Specific reserves | - 7 801 | - 8 883 | - 10 222 |
| Collective reserves | - 6 003 | - 6 607 | - 8 403 |
| Reserves for off-balance sheet items | - 400 | - 476 | - 516 |
| Total reserves | - 14 204 | - 15 966 | - 19 141 |
| Non-performing loans | |||
| Non-performing loans* | 22 069 | 24 254 | 27 219 |
| NPL coverage ratio | 64.4% | 65.8% | 70.3% |
| NPL % of lending | 1.66% | 1.77% | 1.82% |
* Impaired loans + portfolio assessed loans > 60 days + restructured portfolio assessed loans
Seized assets – SEB Group
| 31 March | 31 Dec | 31 March | |
|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 |
| Properties, vehicles and equipment | 758 | 647 | 239 |
| Shares | 57 | 56 | 59 |
| Total seized assets | 815 | 703 | 298 |
Discontinued operations – SEB Group
Income statement
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Total operating income | - 878 | 599 | - 878 | 720 | 2 648 | ||
| Total operating expenses | - 283 | - 647 | -56 | - 283 | - 819 | -65 | -4 204 |
| Profit before credit losses | -1 161 | - 48 | -1 161 | - 99 | -1 556 | ||
| Net credit losses | - 12 | - 160 | -93 | - 12 | - 113 | -89 | - 361 |
| Operating profit | -1 173 | - 208 | -1 173 | - 212 | -1 917 | ||
| Income tax expense | 280 | 125 | 124 | 280 | 66 | 131 | |
| Net profit from discontinued operations | - 893 | - 83 | - 893 | - 146 | -1 786 |
Assets and liabilities held for sale
| 31 March | 31 Dec | 31 March | |
|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 |
| Loans to the public | 73 866 | ||
| Other assets | 1 085 | 523 | |
| Total assets held for sale | 74 951 | 523 | |
| Deposits from credit institutions | 6 303 | ||
| Deposits and borrowing from the public | 40 777 | ||
| Other liabilities | 1 259 | 141 | |
| Total liabilities held for sale | 48 339 | 141 |
Cash flow statement
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Cash flow from operating activities | 26 629 | 813 | 26 629 | - 179 | 774 | ||
| Cash flow from investment activities | 204 | - 113 | 204 | - 1 | - 115 | ||
| Cash flow from financing activities | - 27 604 | - 757 | - 27 604 | 189 | - 726 | ||
| Net increase in cash and cash equivalents | |||||||
| from discontinued operations | - 771 | - 57 | - 771 | 9 | - 67 |
Capital base of the SEB financial group of undertakings
| 31 Mar | 31 Dec | |
|---|---|---|
| SEK m | 2011 | 2010 |
| Total equity according to balance sheet (1) | 97 856 | 99 543 |
| Dividend (excl repurchased shares) | -823 | -3 291 |
| Investments outside the financial group of undertakings (2) | -41 | -40 |
| Other deductions outside the financial group of undertakings (3) | -2 966 | -2 688 |
| = Total equity in the capital adequacy | 94 026 | 93 524 |
| Adjustment for hedge contracts (4) | 2 233 | 1 755 |
| Net provisioning amount for IRB-reported credit exposures (5) | 0 | 0 |
| Unrealised value changes on available-for-sale financial assets (6) | 1 714 | 1 724 |
| Exposures where RWA is not calculated (7) | -1 034 | -1 184 |
| Goodwill (8) | -4 110 | -4 174 |
| Other intangible assets | -2 608 | -2 564 |
| Deferred tax assets | -2 031 | -1 694 |
| = Core Tier 1 capital | 88 190 | 87 387 |
| Tier 1 capital contribution (non-innovative) | 4 468 | 4 492 |
| Tier 1 capital contribution (innovative) | 9 704 | 10 101 |
| = Tier 1 capital | 102 362 | 101 980 |
| Dated subordinated debt | 4 896 | 4 922 |
| Deduction for remaining maturity | -360 | -361 |
| Perpetual subordinated debt | 3 923 | 4 152 |
| Net provisioning amount for IRB-reported credit exposures (5) | 3 | 91 |
| Unrealised gains on available-for-sale financial assets (6) | 490 | 511 |
| Exposures where RWA is not calculated (7) | -1 034 | -1 184 |
| Investments outside the financial group of undertakings (2) | -41 | -40 |
| = Tier 2 capital | 7 877 | 8 091 |
| Investments in insurance companies (9) | -10 500 | -10 500 |
| Pension assets in excess of related liabilities (10) | -933 | -422 |
| = Capital base | 98 806 | 99 149 |
Total equity according to the balance sheet (1) includes the current year's profit, which has been reviewed by the auditors.
Deductions (2) for investments outside the financial may be included in Tier 2 capital. group of undertakings should be made with equal parts from Tier 1 and Tier 2 capital. However, investments in insurance companies made before 20 July 2006 can be deducted from the capital base (9) – this holds for SEB's investments in insurance companies.
The deduction (3) consists of retained earnings in subsidiaries outside the financial group of undertakings.
The adjustment (4) refers to differences in how hedging contracts are acknowledged according to the capital adequacy regulation, as compared with the preparation of the balance sheet.
If provisions and value adjustments for credit exposures reported according to the Internal Ratings-Based approach fall short of expected losses on these exposures, the difference (5) should be deducted in equal parts from Tier 1 and Tier 2 capital. A corresponding excess can, up to a certain limit, be added to Tier 2 capital.
For Available For Sale portfolios (6) value changes on debt instruments should not be acknowledged for capital adequacy. Any surplus attributable to equity instruments
Securitisation positions with external rating below BB/Ba are not included in RWA calculations but are treated via deductions (7) from Tier 1 and Tier 2 capital.
Goodwill in (8) relates only to consolidation into the financial group of undertakings. When consolidating the entire Group's balance sheet further goodwill of SEK 5,721m is created. This is included in the deduction (9) for insurance investments.
Pension surplus values (10) should be deducted from the capital base, excepting such indemnification as prescribed in the Swedish Act on safeguarding of pension undertakings.
On 31 March 2011 the parent company's Tier 1 capital was SEK 94,789m (94,050m) and the reported Tier 1 capital ratio was 16.1 per cent (16.0).
Capital requirements for the SEB financial group of undertakings
Minimum capital requirements are 8 per cent of risk-weighted assets as stated below.
| Risk-weighted assets | 31 Mar | 31 Dec |
|---|---|---|
| SEK m | 2011 | 2010 |
| Credit risk IRB approach | ||
| Institutions | 36 161 | 37 405 |
| Corporates (1) | 401 680 | 403 128 |
| Securitisation positions | 5 660 | 6 337 |
| Retail mortgages | 44 033 | 65 704 |
| Other retail exposures | 9 769 | 9 826 |
| Other exposure classes | 1 449 | 1 511 |
| Total credit risk IRB approach | 498 752 | 523 911 |
| Further risk-weighted assets | ||
| Credit risk, Standardised approach (2) | 77 699 | 91 682 |
| Operational risk, Advanced Measurement approach | 43 477 | 44 568 |
| Foreign exchange rate risk | 12 243 | 15 995 |
| Trading book risks | 46 013 | 39 970 |
| Total risk-weighted assets | 678 184 | 716 126 |
| Summary | ||
| Credit risk | 576 451 | 615 593 |
| Operational risk | 43 477 | 44 568 |
| Market risk | 58 256 | 55 965 |
| Total | 678 184 | 716 126 |
| Adjustment for flooring rules | ||
| Addition according to transitional flooring (3) | 98 582 | 83 672 |
| Total reported | 776 766 | 799 798 |
Corporate exposures (1) exclude such small companies where the total exposure does not exceed certain regulatory-defined thresholds.
The Standardised approach (2) is used for credit exposures to central governments, central banks and local governments and authorities, and to exposures where IRB implementation is on-going. Reported risk-weighted assets are dominated by the Corporate and Retail exposure classes.
Capital adequacy analysis
Representing business volumes as risk-weighted assets the regulatory minima can be expressed as a total capital ratio of at least 8 per cent and a Tier 1 capital ratio of at least 4 per cent. However, and following the "second pillar" of the capital adequacy framework, banks are expected to operate above this level. The margin supports SEB's high rating ambitions,
During 2009 institutions were required to have a capital base not below 80 per cent of the capital requirement according to Basel I regulation. Following supervisory guidance the same should hold also during years 2010 and 2011. The addition (3) is made in consequence with these transitional arrangementsK
covering risks that are not included in the capital adequacy regulation, and representing a buffer for the less benign phases of the business cycle. The Group's internal capital assessment process is based on the long term business plans and utilises SEB's economic capital model, supplemented e.g. with macro economic analysis and stress testing.
| 31 Mar | 31 Dec | |
|---|---|---|
| Capital adequacy | 2011 | 2010 |
| Capital resources | ||
| Core Tier 1 capital | 88 190 | 87 387 |
| Tier 1 capital | 102 362 | 101 980 |
| Capital base | 98 805 | 99 149 |
| Capital adequacy without transitional floor (Basel II) | ||
| Risk-weighted assets | 678 184 | 716 126 |
| Expressed as capital requirement | 54 255 | 57 290 |
| Core Tier 1 capital ratio | 13,0% | 12,2% |
| Tier 1 capital ratio | 15,1% | 14,2% |
| Total capital ratio | 14,6% | 13,8% |
| Capital base in relation to capital requirement | 1,82 | 1,73 |
| Capital adequacy including transitional floor | ||
| Transition floor applied | 80% | 80% |
| Risk-weighted assets | 776 766 | 799 798 |
| Expressed as capital requirement | 62 141 | 63 984 |
| Core Tier 1 capital ratio | 11,4% | 10,9% |
| Tier 1 capital ratio | 13,2% | 12,8% |
| Total capital ratio | 12,7% | 12,4% |
| Capital base in relation to capital requirement | 1,59 | 1,55 |
| Capital adequacy with risk weighting according to Basel I | ||
| Risk-weighted assets | 970 912 | 998 326 |
| Expressed as capital requirement | 77 673 | 79 866 |
| Core Tier 1 capital ratio | 9,1% | 8,8% |
| Tier 1 capital ratio | 10,5% | 10,2% |
| Total capital ratio | 10,2% | 9,9% |
| Capital base in relation to capital requirement | 1,27 | 1,24 |
Overall Basel II RWA (before the effect of transitional flooring) decreased with 5 per cent or SEK 38bn during the quarter. The largest factor behind this decrease is the divestiture of the German Retail portfolios (decrease SEK 37bn). Underlying credit volumes expressed as RWA increased SEK 14bn, mainly dependent on increased corporate lending and purchase of DnB NOR Retail mortgages. The Swedish krona strengthened further in beginning of the quarter later followed by a slight weakening, resulting in a RWA decrease of SEK 6bn due to currency translation effect. The effect of risk class migration was limited during the quarter. Operational- and market risk RWA taken together increased SEK 2 bn during the quarter. Including other changes this resulted in a net decrease of RWA according to Basel II (without transitional floor) to SEK 678bn.
Un-floored Basel II RWA was 30 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. In addition the estimate will certainly be affected by the proposed revisions to the international capital framework ("Basel III") as published by the Basel Committee in 2009 and 2010. SEB participated in the Basel Committee's impact study concerned with the proposal.
The following table exposes average risk weights (RWA divided by EAD, Exposure At Default) for exposures where RWA is calculated following the IRB approach. Repo-style transactions are excluded from the analysis since they carry low risk weight and can vary considerably in volume, thus making numbers less comparable
| IRB reported credit exposures (less repos and securities lending) | 31 Mar | 31 Dec | ||
|---|---|---|---|---|
| Average risk weight | 2011 | 2010 | ||
| Institutions | 20,0% | 19,5% | ||
| Corporates | 56,6% | 57,0% | ||
| Securitisation positions | 20,0% | 20,6% | ||
| Retail mortgages | 13,0% | 16,9% | ||
| Other retail exposures | 37,6% | 38,2% |
Corporate exposures showed a limited risk class migration which decreased RWA with SEK 2bn during the quarter. A limited migration effect which increased RWA with SEK 1Bn was recorded for inter-bank exposures. The large decrease in risk weight for retail mortgages relates to the divestiture
.
during the first quarter 2011 of the German Retail portfolios, typically having higher loan-to value (and thus risk weight) than Group averages. Excluding the German portfolios the average risk weight for retail mortgages was 12.6 per cent at year end 2010.
| Income statement – Skandinaviska Enskilda Banken AB (publ) | ||
|---|---|---|
| ------------------------------------------------------------ | -- | -- |
| In accordance with FSA regulations | Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 | |
| Interest income | 8 044 | 7 883 | 2 | 8 044 | 6 250 | 29 | 27 830 | |
| Leasing income | 1 382 | 1 415 | -2 | 1 382 | 1 353 | 2 | 5 496 | |
| Interest expense | -5 666 | -5 493 | 3 | -5 666 | -4 507 | 26 | -19 498 | |
| Dividends | 1 088 | 42 | 1 088 | 234 | 1 182 | |||
| Fee and commission income | 2 181 | 2 328 | -6 | 2 181 | 1 862 | 17 | 8 408 | |
| Fee and commission expense | - 357 | - 361 | -1 | - 357 | - 367 | -3 | -1 501 | |
| Net financial income | 803 | 449 | 79 | 803 | 966 | -17 | 3 239 | |
| Other income | 166 | 217 | -24 | 166 | 194 | -14 | 532 | |
| Total operating income | 7 641 | 6 480 | 18 | 7 641 | 5 985 | 28 | 25 688 | |
| Administrative expenses | -3 641 | -3 859 | -6 | -3 641 | -3 282 | 11 | -13 935 | |
| Other expenses | ||||||||
| tangible and intangible assets | -1 162 | -1 165 | 0 | -1 162 | -1 144 | 2 | -4 630 | |
| Total operating expenses | -4 803 | -5 024 | -4 | -4 803 | -4 426 | 9 | -18 565 | |
| Profit before credit losses | 2 838 | 1 456 | 95 | 2 838 | 1 559 | 82 | 7 123 | |
| Net credit losses | - 123 | - 185 | -34 | - 123 | - 171 | -28 | - 362 | |
| Impairment of financial assets | 7 | -100 | - 40 | -100 | - 442 | |||
| Operating profit | 2 715 | 1 278 | 112 | 2 715 | 1 348 | 101 | 6 319 | |
| Appropriations | -1 288 | -100 | - 1 | -100 | -1 283 | |||
| Income tax expense | - 519 | - 155 | - 519 | - 927 | -44 | -2 591 | ||
| Other taxes | 3 | - 22 | 3 | - 75 | ||||
| Net profit | 2 199 | - 187 | 2 199 | 420 | 2 370 |
Statement of comprehensive income – Skandinaviska Enskilda Banken AB (publ)
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net profit | 2 199 | - 187 | 2 199 | 420 | 2 370 | ||
| Available-for-sale financial assets | 175 | -223 | 175 | 127 | 38 | -337 | |
| Cash flow hedges | -477 | -730 | -35 | -477 | -142 | -1 208 | |
| Translation of foreign operations | -159 | 8 | -159 | -41 | -29 | ||
| Group contributions | 272 | 199 | 37 | 272 | 285 | -5 | 1 203 |
| Other | -185 | 758 | -185 | 4 | 603 | ||
| Other comprehensive income (net of tax) | - 374 | 12 | - 374 | 233 | 232 | ||
| Total comprehensive income | 1 825 | - 175 | 1 825 | 653 | 179 | 2 602 |
| Condensed | 31 Mar | 31 Dec | 31 Mar |
|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 |
| Cash and cash balances with central banks | 5 721 | 19 941 | 1 804 |
| Loans to credit institutions | 223 675 | 250 568 | 325 934 |
| Loans to the public | 810 411 | 763 441 | 752 574 |
| Financial assets at fair value | 357 027 | 334 060 | 338 707 |
| Available-for-sale financial assets | 17 804 | 16 583 | 15 840 |
| Held-to-maturity investments | 3 675 | 3 685 | 4 589 |
| Investments in associates | 1024 | 967 | 930 |
| Shares in subsidiaries | 54 257 | 55 145 | 58 279 |
| Tangible and intangible assets | 40 853 | 40 907 | 41 034 |
| Other assets | 31 977 | 51 031 | 45 566 |
| Total assets | 1 546 424 | 1 536 328 | 1 585 257 |
| Deposits from credit institutions | 219 479 | 195 408 | 361 534 |
| Deposits and borrowing from the public | 469 147 | 484 839 | 450 853 |
| Debt securities | 510 184 | 488 533 | 403 401 |
| Financial liabilities at fair value | 186 515 | 190 638 | 191 406 |
| Other liabilities | 49 622 | 62 363 | 53 743 |
| Provisions | 133 | 180 | 239 |
| Subordinated liabilities | 23 539 | 25 096 | 35 121 |
| Untaxed reserves | 23 930 | 23 930 | 22 644 |
| Total equity | 63 875 | 65 341 | 66 316 |
| Total liabilities, untaxed reserves and shareholders' equity | 1 546 424 | 1 536 328 | 1 585 257 |
Balance sheet - Skandinaviska Enskilda Banken AB (publ)
Off-balance sheet items - Skandinaviska Enskilda Banken AB (publ)
| 31 Mar | 31 Dec | 31 Mar | |
|---|---|---|---|
| SEK m | 2011 | 2010 | 2010 |
| Collateral pledged for own liabilities | 141 773 | 138 775 | 222 689 |
| Other pledged collateral | 79 230 | 35 663 | 67 026 |
| Contingent liabilities | 61 456 | 64 120 | 62 237 |
| Commitments | 327 378 | 291 046 | 288 681 |
Fact Book January – March 2011
STOCKHOLM 3 MAY 2011
= =
| Table of contents 2 | |
|---|---|
| About SEB3 | |
| SEB history 3 | |
| Financial targets3 | |
| Organisation 4 | |
| Corporate Governance5 | |
| Income statement 7 | |
| Balance sheet structure & funding23 | |
| Capital adequacy and RWA 28 | |
| Volumes 31 | |
| Credit portfolio, loan portfolio by industry and geography33 | |
| Asset quality37 | |
| Bond investment portfolio43 | |
| Divisional structure 44 | |
| Merchant Banking45 | |
| Retail Banking 48 | |
| Wealth Management 52 | |
| Life54 | |
| Baltic 63 | |
| Macro 67 | |
| Definitions72 |
About SEB
| We help people and businesses thrive by providing quality advice and financial resources. |
|---|
| To be the trusted partner for customers with aspirations. |
| 2,500 large corporates and institutions, 400,000 SMEs and 4 million private customers bank with us. They are mainly located in eight markets around the Baltic Sea. |
| Rewarding relationships. |
| To be the relationship bank of the Nordics. Excel in universal banking in Sweden, Estonia, Latvia and Lithuania by providing a full range of banking, wealth management and life insurance services to corporations, institutions and private individuals. Expand in core areas of strength, merchant banking and wealth management, in the Nordic area and in Germany. In life insurance and the card business, SEB will grow and invest in its business also outside the Nordic countries. Support SEB's customers internationally through its network of strategic locations in major global financial centres. |
| 17,000 highly skilled people serving customers from locations in some 20 countries; covering different time zones, securing reach and local market knowledge. |
| Guided by our Code of Business Conduct and our core values: professionalism, commitment, mutual respect and continuity. |
| Over 150 years of business, building trust and sharing knowledge. We have always acted responsibly in society promoting entrepreneurship, international outlook and long-term relationships. |
SEB history
- 1856- Stockholms Enskilda Bank was founded
- 1914- Head offices at Kungsträdgårdsgatan
- 1972- Merger with Skandinaviska Banken
- 1990- Bank crises and e-banking revolution. Several acquisitions: Trygg Hansa, Baltic banks, asset managers and Germany
- 2000- A Northern European financial corporation with international operations
- 2010- Divestment of German Retail business
Financial targets
| Financial targets and outcome | 2005 | 2006 | 2007 | 2008 2009 | 2010 | Target | |
|---|---|---|---|---|---|---|---|
| Return on equity (per cent) | 15.8 | 20.8 | 19.3 | 13.1 | 1.2 | 6.8 | Highest among its peers |
| Net profit (SEK m) | 8,421 | 12,623 | 13,642 | 10,050 1,178 6,798 | Sustainable profit growth | ||
| Tier I capital ratio (per cent) 1) | 7.5 | 8.2 | 9.9 | 10.1 | 13.9 | 14.2 | 10 per cent over a business cycle |
| Dividend (per cent of earnings per share) | 38 | 32 | 33 | 0 | 172 | 49 | 40 per cent of net profit per share |
| over a business cycle |
1) 2005–2006 Basel I. 2007–2010 Basel II without transitional rules.
Rating
| Moody's | Standard & Poor's | Fitch | ||||
|---|---|---|---|---|---|---|
| Outlook Stable (June 2010) | Outlook Stable (February 2010) | Outlook Stable (June 2009) | ||||
| Short | Long | Short | Long | Short | Long | |
| P-1 | Aaa | A-1+ | AAA | F1+ | AAA | |
| P-2 | Aa1 | A-1 | AA+ | F1 | AA+ | |
| P-3 | Aa2 | A-2 | AA | F2 | AA | |
| Aa3 | A-3 | AA- | F3 | AA | ||
| A1 | A+ | A+ | ||||
| A2 | A | A | ||||
| A3 | A- | A | ||||
| Baa1 | BBB+ | BBB+ | ||||
| Baa2 | BBB | BBB | ||||
| Baa3 | BBB- | BBB |
Organisation
Full-time equivalents, end of quarter
| Q1 2009 |
Q2 2009 |
Q3 2009 |
Q4 2009 |
Q1 2010 |
Q2 2010 |
Q3 2010 |
Q4 2010 |
Q1 2011 |
|
|---|---|---|---|---|---|---|---|---|---|
| Merchant Banking | 2,382 | 2,351 | 2,320 | 2,309 | 2,320 | 2,326 | 2,365 | 2,394 | 2,481 |
| Retail Banking | 3,435 | 3,465 | 3,332 | 3,316 | 3,326 | 3,482 | 3,430 | 3,441 | 3,498 |
| RB Sweden | 2,630 | 2,653 | 2,527 | 2,515 | 2,541 | 2,686 | 2,620 | 2,667 | 2,725 |
| RB Cards | 804 | 812 | 805 | 801 | 785 | 796 | 810 | 774 | 773 |
| Wealth Management | 1,045 | 992 | 960 | 978 | 952 | 945 | 971 | 1,005 | 1,007 |
| Life | 1,206 | 1,196 | 1,184 | 1,173 | 1,175 | 1,173 | 1,200 | 1,226 | 1,237 |
| Baltic | 3,738 | 3,655 | 3,582 | 3,387 | 3,216 | 3,185 | 3,206 | 3,203 | 3,200 |
| Baltic Estonia | 1,089 | 1,081 | 1,090 | 1,030 | 1,008 | 1,000 | 1,000 | 986 | 984 |
| Baltic Latvia | 990 | 977 | 956 | 923 | 852 | 843 | 863 | 871 | 886 |
| Baltic Lithuania | 1,659 | 1,598 | 1,536 | 1,435 | 1,356 | 1,342 | 1,342 | 1,346 | 1,330 |
| Operations & IT | 3,675 | 3,670 | 3,597 | 3,566 | 3,531 | 3,516 | 3,512 | 3,538 | 3,532 |
| Other | 6,579 | 6,484 | 6,277 | 6,168 | 5,997 | 5,948 | 5,961 | 6,078 | 6,003 |
| SEB Group | |||||||||
| Continuing operations | 18,385 | 18,143 | 17,655 | 17,331 | 16,986 | 17,059 | 17,133 | 17,347 | 17,426 |
| Discontinued operations | 2,272 | 2,287 | 2,257 | 2,231 | 2,046 | 2,032 | 2,017 | 1,873 | 86 |
| SEB Group | 20,656 | 20,430 | 19,912 | 19,562 | 19,032 | 19,091 | 19,150 | 19,220 | 17,512 |
Corporate Governance
SEB follows the Swedish Code of Corporate Governance (Bolagsstyrningskoden). The structure of responsibility distribution and governance comprises:
- Annual General Meeting (AGM)
- Board of Directors
- President/Chief Executive Officer
- Divisions, business areas and business units
- Staff and Support functions
- Internal Audit, Compliance and Risk Control.
Board
The Board members are appointed by the shareholders at the AGM for a term of office of one year, until the next AGM. The Board of Directors consists of eleven members without any deputies, elected by the AGM, and of two members and two deputies appointed by the employees.
In order for the Board to form a quorum more than half of the
Group Executive Committee
The President has three different committees at her disposal; the Group Executive Committee, the Group Credit Committee and the Asset and Liability Committee. The President also consults with the IT Committee and the New Product Approval Committee. The GEC deals with, among other things, matters of common concern to several divisions, strategic issues, business plans, financial forecasts and reports.
The Board of Directors and the President perform their governing and controlling roles through several policies and instructions, the
members must be present. The President, Annika Falkengren, is the only Board member elected by the AGM who is equally an employee of the Bank. All other Board members elected by the AGM are considered to be independent in relation to the Bank and its Management.
purpose of which is to clearly define the distribution of responsibility.
The Rules of Procedure for the Board of Directors, the Instruction for the President and Chief Executive Officer, the Instruction for the Activities, the Group's Credit Instruction, Instruction for handling of Conflicts of Interest, Ethics Policy, Risk Policy, Instruction for procedures against Money Laundering and Financing of Terrorism, Remuneration Policy, Code of Business Conduct and the Corporate Sustainability Policy are of special importance.
SEB's activities are managed, controlled and followed up in accordance with policies and instructions established by the Board and the President (CEO).
Share and shareholders
The SEB share
Index
SEB's major shareholders Dividend development
| Share of capital, | |
|---|---|
| March 2011 | per cent |
| Investor AB | 20.8 |
| Trygg Foundation | 8.1 |
| Alecta | 7.0 |
| SHB | 3.7 |
| Swedbank/Robur Funds | 3.4 |
| AMF Insurance & Funds | 1.9 |
| SEB Funds | 1.6 |
| Wallenberg Foundations | 1.5 |
| SHB Funds | 1.5 |
| Skandia Liv | 1.1 |
| Foreign owners | 19.3 |
| Source: Euroclear Sweden/SIS Ägarservice |
Income statement
SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 4,261 | 4,526 | -6 | 4,261 | 3,542 | 20 | 16,010 |
| Net fee and commission income | 3,503 | 3,906 | -10 | 3,503 | 3,194 | 10 | 14,160 |
| Net financial income | 1,235 | 512 | 141 | 1,235 | 950 | 30 | 3,166 |
| Net life insurance income | 782 | 780 | 0 | 782 | 879 | -11 | 3,255 |
| Net other income | -109 | 314 | -135 | -109 | 170 | -164 | 288 |
| Total operating income | 9,672 | 10,038 | -4 | 9,672 | 8,735 | 11 | 36,879 |
| Staff costs | -3,610 | -3,558 | 1 | -3,610 | -3,438 | 5 | -14,004 |
| Other expenses | -1,798 | -1,965 | -8 | -1,798 | -1,784 | 1 | -7,303 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | -433 | -650 | -33 | -433 | -409 | 6 | -1,880 |
| Restructuring costs | -9 | -100 | -764 | ||||
| Total operating expenses | -5,841 | -6,182 | -6 | -5,841 | -5,631 | 4 | -23,951 |
| Profit before credit losses | 3,831 | 3,856 | -1 | 3,831 | 3,104 | 23 | 12,928 |
| Gains less losses on disposals of tangible and | |||||||
| intangible assets | 6 | 21 | 6 | -4 | 14 | ||
| Net credit losses | 537 | 419 | 28 | 537 | -1,813 | -130 | -1,837 |
| Operating profit | 4,374 | 4,296 | 2 | 4,374 | 1,287 | 11,105 | |
| Income tax expense | -865 | -704 | 23 | -865 | -452 | 91 | -2,521 |
| Net profit from continuing operations | 3,509 | 3,592 | -2 | 3,509 | 835 | 8,584 | |
| Discontinued operations | -893 | -83 | -893 | -146 | -1,786 | ||
| Net profit | 2,616 | 3,509 | -25 | 2,616 | 689 | 6,798 | |
| Attributable to minority interests | 14 | 6 | 133 | 14 | 15 | -7 | 53 |
| Attributable to equity holders | 2,602 | 3,503 | -26 | 2,602 | 674 | 6,745 | |
| Continuing operations | |||||||
| Basic earnings per share, SEK | 1.59 | 1.64 | 1.59 | 0.37 | 3.88 | ||
| Diluted earnings per share, SEK | 1.58 | 1.62 | 1.58 | 0.37 | 3.87 | ||
| Total operations | |||||||
| Basic earnings per share, SEK | 1.19 | 1.60 | 1.19 | 0.31 | 3.07 | ||
| Diluted earnings per share, SEK | 1.18 | 1.58 | 1.18 | 0.31 | 3.06 |
Including: SEK 600m redundancies and SEK 780m VPC divest in Q4 2008
SEK 594m goodwill write-down for Ukraine in Q1 2009
SEK 2,394m goodwill write-down for Baltics and Russia in Q2 2009 and SEK 1,3bn capital gain on repurchased bonds
SEK 270m capital gain on repurchased bonds in Q4 2009
SEK 755m restructuring costs for German Retail divestment in Q3 2010
Key figures – SEB Group
| Q1 | Q4 | Jan - Mar | Full year | ||
|---|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | 2010 | |
| Continuing operations | |||||
| Return on equity, continuing operations, % | 14.06 | 14.62 | 14.06 | 3.30 | 8.65 |
| Basic earnings per share, continuing operations, SEK | 1.59 | 1.64 | 1.59 | 0.37 | 3.88 |
| Diluted earnings per share, continuing operations, SEK | 1.58 | 1.62 | 1.58 | 0.37 | 3.87 |
| Cost/income ratio, continuing operations | 0.60 | 0.62 | 0.60 | 0.64 | 0.65 |
| Number of full time equivalents, continuing operations* | 17.426 | 17.347 | 17.264 | 17.021 | 17.104 |
| Total operations | |||||
| Return on equity, % | 10.47 | 14.28 | 10.47 | 2.71 | 6.84 |
| Return on total assets, % | 0.49 | 0.63 | 0.49 | 0.12 | 0.30 |
| Return on risk-weighted assets, % | 1.34 | 1.73 | 1.34 | 0.34 | 0.83 |
| Basic earnings per share, SEK | 1.19 | 1.60 | 1.19 | 0.31 | 3.07 |
| Weighted average number of shares, millions** | 2.194 | 2.194 | 2.194 | 2.194 | 2.194 |
| Diluted earnings per share, SEK | 1.18 | 1.58 | 1.18 | 0.31 | 3.06 |
| Weighted average number of diluted shares, millions*** | 2.206 | 2.212 | 2.206 | 2.199 | 2.202 |
| Net worth per share, SEK | 49.79 | 50.34 | 49.79 | 50.07 | 50.34 |
| Average equity, SEK, billion | 99.7 | 98.4 | 99.7 | 99.3 | 98.9 |
| Credit loss level, % | -0.17 | -0.07 | -0.17 | 0.50 | 0.14 |
| Total reserve ratio individually assessed impaired loans, % | 69.0 | 69.2 | 69.0 | 77.0 | 69.2 |
| Net level of impaired loans, % | 0.54 | 0.62 | 0.54 | 0.64 | 0.62 |
| Gross level of impaired loans, % | 1.12 | 1.26 | 1.12 | 1.31 | 1.26 |
| Basel II (Legal reporting with transitional floor) :**** | |||||
| Risk-weighted assets, SEK billion | 777 | 800 | 777 | 812 | 800 |
| Core Tier 1 capital ratio, % | 11.35 | 10.93 | 11.35 | 10.43 | 10.93 |
| Tier 1 capital ratio, % | 13.18 | 12.75 | 13.18 | 12.37 | 12.75 |
| Total capital ratio, % | 12.72 | 12.40 | 12.72 | 13.10 | 12.40 |
| Basel II (without transitional floor): | |||||
| Risk-weighted assets, SEK billion | 678 | 716 | 678 | 723 | 716 |
| Core Tier 1 capital ratio, % | 13.00 | 12.20 | 13.00 | 11.71 | 12.20 |
| Tier 1 capital ratio, % | 15.09 | 14.24 | 15.09 | 13.88 | 14.24 |
| Total capital ratio, % | 14.57 | 13.85 | 14.57 | 14.70 | 13.85 |
| Number of full time equivalents* | 17.512 | 19.220 | 17.354 | 19.134 | 19.125 |
| Assets under custody, SEK billion | 4.948 | 5.072 | 4.948 | 5.127 | 5.072 |
| Assets under management, SEK billion | 1.372 | 1.399 | 1.372 | 1.382 | 1.399 |
| Discontinued operations | |||||
| Basic earnings per share, discontinued operations, SEK | -0.40 | -0.04 | -0.40 | -0.06 | -0.81 |
| Diluted earnings per share, discontinued operations, SEK | -0.40 | -0.04 | -0.40 | -0.06 | -0.81 |
* Quarterly numbers are for last month of quarter. Accumulated numbers are average for the period.
** The number of issued shares was 2,194,171,802. SEB owned 267,360 Class A shares for the employee stock option programme at year end 2010. During 2011 SEB has repurchased 300,000 shares and 265,087 have been sold as employee stock options have been exercised. Thus, as at 31 March 2011 SEB owned 302,273 Class A-shares with a market value of SEK 17m.
*** Calculated dilution based on the estimated economic value of the long-term incentive programmes.
**** 80 per cent of RWA in Basel I
Income statement SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 | 2009 | 2010 |
| Net interest income | 5,488 | 5,029 | 4,197 | 3,332 | 3,542 | 3,762 | 4,180 | 4,526 | 4,261 | 18,046 | 16,010 |
| Net fee and commission income | 2,944 | 3,491 | 3,263 | 3,587 | 3,194 | 3,673 | 3,387 | 3,906 | 3,503 | 13,285 | 14,160 |
| Net financial income | 1,133 | 1,471 | 945 | 939 | 950 | 977 | 727 | 512 | 1,235 | 4,488 | 3,166 |
| Net life insurance income | 862 | 946 | 857 | 932 | 879 | 778 | 818 | 780 | 782 | 3,597 | 3,255 |
| Net other income | 315 | 1,579 | -165 | 430 | 170 | 34 | -230 | 314 | -109 | 2,159 | 288 |
| Total operating income | 10,742 | 12,516 | 9,097 | 9,220 | 8,735 | 9,224 | 8,882 | 10,038 | 9,672 | 41,575 | 36,879 |
| Staff costs | -3,920 | -3,799 | -3,282 | -2,785 | -3,438 | -3,616 | -3,392 | -3,558 | -3,610 | -13,786 | -14,004 |
| Other expenses | -1,465 | -1,612 | -1,535 | -2,128 | -1,784 | -1,875 | -1,679 | -1,965 | -1,798 | -6,740 | -7,303 |
| Depreciation, amortisation and impairment of | |||||||||||
| tangible and intangible assets | -1,008 | -2,826 | -375 | -463 | -409 | -416 | -405 | -650 | -433 | -4,672 | -1,880 |
| Restructuring costs | -755 | -9 | -764 | ||||||||
| Total operating expenses | -6,393 | -8,237 | -5,192 | -5,376 | -5,631 | -5,907 | -6,231 | -6,182 | -5,841 | -25,198 | -23,951 |
| Profit before credit losses | 4,349 | 4,279 | 3,905 | 3,844 | 3,104 | 3,317 | 2,651 | 3,856 | 3,831 | 16,377 | 12,928 |
| Gains less losses on disposals of tangible and | |||||||||||
| intangible assets | 2 | 23 | 3 | -24 | -4 | -3 | 21 | 6 | 4 | 14 | |
| Net credit losses | -2,321 | -3,439 | -3,206 | -3,064 | -1,813 | -639 | 196 | 419 | 537 | -12,030 | -1,837 |
| Operating profit | 2,030 | 863 | 702 | 756 | 1,287 | 2,675 | 2,847 | 4,296 | 4,374 | 4,351 | 11,105 |
| Income tax expense | -838 | -865 | -446 | -333 | -452 | -600 | -765 | -704 | -865 | -2,482 | -2,521 |
| Net profit from continuing operations | 1,192 | -2 | 256 | 423 | 835 | 2,075 | 2,082 | 3,592 | 3,509 | 1,869 | 8,584 |
| Discontinued operations | -165 | -168 | -219 | -139 | -146 | -71 | -1,486 | -83 | -893 | -691 | -1,786 |
| Net profit | 1,027 | -170 | 37 | 284 | 689 | 2,004 | 596 | 3,509 | 2,616 | 1,178 | 6,798 |
| Attributable to minority interests | 2 | 23 | 12 | 27 | 15 | 17 | 15 | 6 | 14 | 64 | 53 |
| Attributable to equity holders | 1,025 | -193 | 25 | 257 | 674 | 1,987 | 581 | 3,503 | 2,602 | 1,114 | 6,745 |
Share of profit before credit losses
Geography – Adjusted for Other Divisions – Adjusted for Other
Divisions
Merchant Banking
Total
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 1,782 | 1,728 | 1,852 | 1,966 | 1,732 |
| Net fee and commission income | 1,079 | 1,412 | 1,281 | 1,503 | 1,259 |
| Net financial income | 832 | 1,242 | 685 | 607 | 1,085 |
| Net other income | 84 | 39 | 44 | 155 | 35 |
| Total operating income | 3,777 | 4,421 | 3,862 | 4,231 | 4,111 |
| Staff costs | -956 | -1,076 | -843 | -1,084 | -1,062 |
| Other expenses | -1,150 | -1,203 | -1,066 | -1,230 | -1,207 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -28 | -39 | -40 | -63 | -51 |
| Total operating expenses | -2,134 | -2,318 | -1,949 | -2,377 | -2,320 |
| Profit before credit losses | 1,643 | 2,103 | 1,913 | 1,854 | 1,791 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | -3 | -1 | 1 | 23 | 3 |
| Net credit losses | -104 | 26 | -26 | -99 | -48 |
| Operating profit | 1,536 | 2,128 | 1,888 | 1,778 | 1,746 |
Merchant Banking
Trading and Capital Markets
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 368 | 315 | 382 | 459 | 293 |
| Net fee and commission income | 312 | 437 | 356 | 487 | 396 |
| Net financial income | 854 | 1,274 | 696 | 645 | 1,085 |
| Net other income | 34 | -15 | -4 | -3 | 2 |
| Total operating income | 1,568 | 2,011 | 1,430 | 1,588 | 1,776 |
| Staff costs | -418 | -480 | -365 | -482 | -465 |
| Other expenses | -505 | -531 | -465 | -552 | -562 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -8 | -9 | -9 | -9 | -27 |
| Total operating expenses | -931 | -1,020 | -839 | -1,043 | -1,054 |
| Profit before credit losses | 637 | 991 | 591 | 545 | 722 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | 1 | ||||
| Net credit losses | 1 | 1 | |||
| Operating profit | 638 | 991 | 591 | 546 | 723 |
Merchant Banking
Corporate Banking
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 1,072 | 1,091 | 1,148 | 1,140 | 1,093 |
| Net fee and commission income | 381 | 560 | 571 | 681 | 489 |
| Net financial income | -36 | -57 | -27 | -66 | -35 |
| Net other income | 39 | 41 | 38 | 143 | 24 |
| Total operating income | 1,456 | 1,635 | 1,730 | 1,898 | 1,571 |
| Staff costs | -402 | -456 | -349 | -467 | -459 |
| Other expenses | -303 | -307 | -261 | -251 | -312 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -17 | -18 | -16 | -51 | -22 |
| Total operating expenses | -722 | -781 | -626 | -769 | -793 |
| Profit before credit losses | 734 | 854 | 1,104 | 1,129 | 778 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | -1 | 29 | 2 | ||
| Net credit losses | -98 | 29 | -37 | -97 | -51 |
| Operating profit | 636 | 883 | 1,066 | 1,061 | 729 |
Merchant Banking
Global Transaction Services
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 341 | 321 | 321 | 367 | 345 |
| Net fee and commission income | 386 | 416 | 355 | 334 | 374 |
| Net financial income | 15 | 25 | 16 | 27 | 35 |
| Net other income | 11 | 12 | 10 | 16 | 9 |
| Total operating income | 753 | 774 | 702 | 744 | 763 |
| Staff costs | -137 | -139 | -128 | -135 | -137 |
| Other expenses | -342 | -365 | -340 | -427 | -332 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -2 | -12 | -16 | -2 | -3 |
| Total operating expenses | -481 | -516 | -484 | -564 | -472 |
| Profit before credit losses | 272 | 258 | 218 | 180 | 291 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | -3 | -1 | 2 | -6 | -1 |
| Net credit losses | -7 | -3 | 11 | -3 | 4 |
| Operating profit | 262 | 254 | 231 | 171 | 294 |
Retail Banking
| Total | |||||
|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 1,201 | 1,212 | 1,263 | 1,332 | 1,349 |
| Net fee and commission income | 789 | 829 | 774 | 848 | 788 |
| Net financial income | 65 | 76 | 58 | 74 | 64 |
| Net other income | 9 | 11 | 14 | 14 | 14 |
| Total operating income | 2,064 | 2,128 | 2,109 | 2,268 | 2,215 |
| Staff costs | -658 | -659 | -686 | -647 | -673 |
| Other expenses | -778 | -875 | -800 | -928 | -882 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -21 | -21 | -21 | -21 | -19 |
| Total operating expenses | -1,457 | -1,555 | -1,507 | -1,596 | -1,574 |
| Profit before credit losses | 607 | 573 | 602 | 672 | 641 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | -1 | 1 | |||
| Net credit losses | -196 | -147 | -56 | -144 | -98 |
| Operating profit | 411 | 426 | 545 | 528 | 544 |
Retail Banking
Retail Sweden
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 949 | 962 | 1,019 | 1,095 | 1,123 |
| Net fee and commission income | 384 | 378 | 363 | 396 | 393 |
| Net financial income | 65 | 76 | 58 | 74 | 64 |
| Net other income | 4 | 5 | 4 | 5 | 15 |
| Total operating income | 1,402 | 1,421 | 1,444 | 1,570 | 1,595 |
| Staff costs | -461 | -468 | -491 | -472 | -498 |
| Other expenses | -624 | -681 | -640 | -756 | -706 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -11 | -12 | -12 | -14 | -13 |
| Total operating expenses | -1,096 | -1,161 | -1,143 | -1,242 | -1,217 |
| Profit before credit losses | 306 | 260 | 301 | 328 | 378 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | 1 | ||||
| Net credit losses | -105 | -63 | -5 | -70 | -43 |
| Operating profit | 201 | 197 | 296 | 258 | 336 |
Retail Banking
Cards
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 253 | 249 | 244 | 236 | 226 |
| Net fee and commission income | 397 | 438 | 403 | 444 | 392 |
| Net other income | 15 | 16 | 18 | 22 | 3 |
| Total operating income | 665 | 703 | 665 | 702 | 621 |
| Staff costs | -196 | -192 | -195 | -175 | -175 |
| Other expenses | -158 | -189 | -160 | -178 | -176 |
| Net Deferred Acquisition Costs | |||||
| Impairment of goodwill | |||||
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -10 | -9 | -8 | -8 | -7 |
| Total operating expenses | -364 | -390 | -363 | -361 | -358 |
| Profit before credit losses | 301 | 313 | 302 | 341 | 263 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | -1 | ||||
| Net credit losses | -91 | -84 | -51 | -73 | -55 |
| Operating profit | 210 | 229 | 250 | 268 | 208 |
Wealth Management
| Total | |||||
|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 111 | 120 | 118 | 136 | 143 |
| Net fee and commission income | 868 | 939 | 830 | 1,115 | 994 |
| Net financial income | 18 | 24 | 17 | 30 | 15 |
| Net other income | 47 | 7 | 4 | 2 | |
| Total operating income | 997 | 1,130 | 972 | 1,285 | 1,154 |
| Staff costs | -309 | -339 | -306 | -344 | -368 |
| Other expenses | -350 | -388 | -368 | -422 | -368 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -20 | -21 | -20 | -23 | -12 |
| Total operating expenses | -679 | -748 | -694 | -789 | -748 |
| Profit before credit losses | 318 | 382 | 278 | 496 | 406 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | |||||
| Net credit losses | -1 | -2 | -1 | 7 | -1 |
| Operating profit | 317 | 380 | 277 | 503 | 405 |
Life
Total
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | -2 | -2 | -2 | -5 | -8 |
| Net life insurance income | 1,186 | 1,115 | 1,143 | 1,106 | 1,138 |
| Total operating income | 1,184 | 1,113 | 1,141 | 1,101 | 1,130 |
| Staff costs | -282 | -287 | -276 | -278 | -292 |
| Other expenses | -147 | -152 | -150 | -140 | -135 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -173 | -172 | -169 | -176 | -192 |
| Total operating expenses | -602 | -611 | -595 | -594 | -619 |
| Profit before credit losses | 582 | 502 | 546 | 507 | 511 |
| Operating profit * | 582 | 502 | 546 | 507 | 511 |
| Change in surplus values | 195 | 180 | 376 | 294 | 27 |
| Business result | 777 | 682 | 922 | 801 | 538 |
* Consolidated in the Group accounts
Baltic
Total
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 506 | 471 | 454 | 492 | 456 |
| Net fee and commission income | 228 | 250 | 251 | 235 | 209 |
| Net financial income | 131 | 141 | 69 | 60 | 80 |
| Net other income | 4 | 9 | 28 | 11 | -5 |
| Total operating income | 869 | 871 | 802 | 798 | 740 |
| Staff costs | -206 | -182 | -177 | -163 | -146 |
| Other expenses | -306 | -289 | -292 | -290 | -250 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -21 | -20 | -20 | -235 | -32 |
| Total operating expenses | -533 | -491 | -489 | -688 | -428 |
| Profit before credit losses | 336 | 380 | 313 | 110 | 312 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | -1 | -4 | 2 | ||
| Net credit losses | -1,431 | -451 | 273 | 736 | 572 |
| Operating profit | -1,095 | -72 | 586 | 842 | 886 |
Baltic
Baltic Estonia
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 156 | 141 | 139 | 153 | 150 |
| Net fee and commission income | 77 | 80 | 76 | 74 | 66 |
| Net financial income | 24 | 25 | 9 | -6 | 12 |
| Net other income | 3 | 4 | 2 | 10 | 1 |
| Total operating income | 260 | 250 | 226 | 231 | 229 |
| Staff costs | -83 | -59 | -59 | -42 | -52 |
| Other expenses | -107 | -88 | -85 | -70 | -78 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -4 | -4 | -4 | -5 | -3 |
| Total operating expenses | -194 | -151 | -148 | -117 | -133 |
| Profit before credit losses | 66 | 99 | 78 | 114 | 96 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | 1 | 2 | |||
| Net credit losses | -151 | -108 | 10 | 162 | 17 |
| Operating profit | -85 | -9 | 88 | 277 | 115 |
Baltic
Baltic Latvia
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 155 | 154 | 144 | 148 | 133 |
| Net fee and commission income | 53 | 55 | 54 | 52 | 49 |
| Net financial income | 23 | 26 | 28 | 33 | 30 |
| Net other income | 3 | 1 | 1 | 1 | -2 |
| Total operating income | 234 | 236 | 227 | 234 | 210 |
| Staff costs | -49 | -50 | -49 | -63 | -35 |
| Other expenses | -81 | -69 | -72 | -99 | -54 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -8 | -7 | -8 | -11 | -6 |
| Total operating expenses | -138 | -126 | -129 | -173 | -95 |
| Profit before credit losses | 96 | 110 | 98 | 61 | 115 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | -1 | -5 | |||
| Net credit losses | -574 | -170 | 109 | 275 | 182 |
| Operating profit | -478 | -61 | 207 | 331 | 297 |
Baltic
Baltic Lithuania
| Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | 195 | 175 | 171 | 191 | 173 |
| Net fee and commission income | 98 | 115 | 121 | 110 | 94 |
| Net financial income | 83 | 91 | 31 | 32 | 38 |
| Net other income | -1 | 4 | 25 | -1 | -3 |
| Total operating income | 375 | 385 | 348 | 332 | 302 |
| Staff costs | -74 | -73 | -69 | -57 | -59 |
| Other expenses | -119 | -133 | -135 | -121 | -118 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -9 | -8 | -8 | -219 | -22 |
| Total operating expenses | -202 | -214 | -212 | -397 | -199 |
| Profit before credit losses | 173 | 171 | 136 | -65 | 103 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | |||||
| Net credit losses | -705 | -173 | 154 | 299 | 372 |
| Operating profit | -532 | -2 | 290 | 234 | 475 |
Other and eliminations
| Total | |||||
|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net interest income | -56 | 233 | 495 | 605 | 589 |
| Net fee and commission income | 230 | 243 | 251 | 205 | 253 |
| Net financial income | -96 | -506 | -102 | -259 | -9 |
| Net life insurance income | -307 | -337 | -325 | -326 | -356 |
| Net other income | 73 | -72 | -323 | 130 | -155 |
| Total operating income | -156 | -439 | -4 | 355 | 322 |
| Staff costs | -1,027 | -1,073 | -1,104 | -1,042 | -1,069 |
| Other expenses | 947 | 1,032 | 997 | 1,045 | 1,044 |
| Depreciation, amortisation and impairment of | |||||
| tangible and intangible assets | -146 | -143 | -135 | -132 | -127 |
| Restructuring costs | -755 | -9 | |||
| Total operating expenses | -226 | -184 | -997 | -138 | -152 |
| Profit before credit losses | -382 | -623 | -1,001 | 217 | 170 |
| Gains less losses on disposals of tangible and | |||||
| intangible assets | -1 | -1 | 2 | ||
| Net credit losses | -81 | -65 | 6 | -81 | 112 |
| Operating profit | -464 | -689 | -995 | 138 | 282 |
By geography
Sweden
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 5,627 | 7,485 | 4,933 | 4,839 | 4,766 | 5,126 | 4,871 | 5,613 | 5,399 |
| Total operating expenses | -4,365 | -4,785 | -2,956 | -2,883 | -3,427 | -3,669 | -3,348 | -3,612 | -3,899 |
| Profit before credit losses | 1,262 | 2,700 | 1,977 | 1,956 | 1,339 | 1,457 | 1,523 | 2,001 | 1,500 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | 2 | ||||||||
| Net credit losses | -285 | -450 | -139 | -260 | -192 | -13 | 3 | -126 | -125 |
| Operating profit | 977 | 2,250 | 1,838 | 1,696 | 1,147 | 1,444 | 1,526 | 1,875 | 1,377 |
Goodwill impairments for holdings in the Baltic region, Russia and Ukraine affect operating expenses and profit by SEK 1.5bn in Q2 and 0.6bn in Q1 2009.
| Norway | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 937 | 966 | 896 | 850 | 726 | 721 | 649 | 749 | 701 |
| Total operating expenses | -306 | -372 | -393 | -236 | -335 | -305 | -301 | -374 | -266 |
| Profit before credit losses | 631 | 594 | 503 | 614 | 391 | 416 | 348 | 375 | 435 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | |||||||||
| Net credit losses | -72 | -73 | -44 | -28 | -51 | -37 | -24 | -31 | -35 |
| Operating profit | 559 | 521 | 459 | 586 | 340 | 379 | 324 | 344 | 400 |
| Denmark | |||||||||
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 801 | 798 | 752 | 785 | 724 | 842 | 731 | 723 | 708 |
| Total operating expenses | -399 | -453 | -368 | -323 | -380 | -422 | -364 | -440 | -384 |
| Profit before credit losses | 402 | 345 | 384 | 462 | 344 | 420 | 367 | 283 | 324 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | |||||||||
| Net credit losses | -45 | -36 | -30 | -70 | -26 | -22 | -31 | -37 | -15 |
| Operating profit | 357 | 309 | 354 | 392 | 318 | 398 | 336 | 246 | 309 |
| Finland | |||||||||
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 372 | 201 | 246 | 374 | 254 | 350 | 319 | 349 | 338 |
| Total operating expenses | -99 | -159 | -120 | -196 | -101 | -158 | -150 | -183 | -160 |
| Profit before credit losses | 273 | 42 | 126 | 178 | 153 | 192 | 169 | 166 | 178 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | -1 | ||||||||
| Net credit losses | -12 | -5 | -8 | -2 | -3 | -10 | -2 | ||
| Operating profit | 261 | 37 | 118 | 176 | 150 | 182 | 168 | 164 | 178 |
| Germany* | |||||||||
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 793 | 899 | 693 | 735 | 669 | 787 | 742 | 760 | 742 |
| Total operating expenses | -520 | -486 | -494 | -563 | -475 | -486 | -1,236 | -500 | -471 |
| Profit before credit losses | 273 | 413 | 199 | 172 | 194 | 301 | -494 | 260 | 271 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | -1 | -3 | -2 | 29 | 3 | ||||
| Net credit losses | -36 | -87 | -93 | -90 | -41 | -35 | -24 | -43 | 21 |
| Operating profit | 237 | 326 | 105 | 79 | 153 | 266 | -520 | 246 | 295 |
*Excluding centralised Treasury operations
Restructuring costs amounted to EUR 80m in Q3 2010.
Estonia
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 370 | 319 | 343 | 388 | 315 | 299 | 283 | 290 | 272 |
| Total operating expenses | -202 | -439 | -167 | -267 | -197 | -157 | -153 | -125 | -145 |
| Profit before credit losses | 168 | -120 | 176 | 121 | 118 | 142 | 130 | 165 | 127 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | -1 | 1 | 1 | 2 | |||||
| Net credit losses | -232 | -454 | -212 | -297 | -151 | -108 | 10 | 162 | 17 |
| Operating profit | -64 | -575 | -35 | -176 | -33 | 34 | 140 | 328 | 146 |
Goodwill impairment affected operating expenses and profit by SEK 0.3bn in Q2 2009.
| Latvia | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 467 | 453 | 436 | 313 | 297 | 236 | 260 | 273 | 241 |
| Total operating expenses | -209 | -208 | -168 | -180 | -141 | -137 | -140 | -183 | -103 |
| Profit before credit losses | 258 | 245 | 268 | 133 | 156 | 99 | 120 | 90 | 138 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | -1 | -1 | -5 | ||||||
| Net credit losses | -684 | -917 | -941 | -586 | -574 | -170 | 109 | 275 | 182 |
| Operating profit | -426 | -673 | -673 | -453 | -418 | -72 | 229 | 360 | 320 |
| Lithuania | |||||||||
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 545 | 430 | 393 | 313 | 322 | 357 | 351 | 350 | 335 |
| Total operating expenses | -265 | -839 | -225 | -292 | -211 | -224 | -223 | -408 | -204 |
| Profit before credit losses | 280 | -409 | 168 | 21 | 111 | 133 | 128 | -58 | 131 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | 2 | -5 | 2 | -16 | |||||
| Net credit losses | -786 | -1,270 | -1,489 | -1,705 | -706 | -173 | 154 | 299 | 372 |
| Operating profit | -504 | -1,684 | -1,319 | -1,700 | -595 | -40 | 282 | 241 | 503 |
Goodwill impairment affected operating expenses and profit by SEK 0.6bn in Q2 2009. Write-off of systems related to core banking implementation affected Q4 2010 b
Other countries and eliminations
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 830 | 965 | 405 | 623 | 662 | 506 | 676 | 931 | 936 |
| Total operating expenses | -28 | -496 | -301 | -436 | -364 | -349 | -316 | -357 | -209 |
| Profit before credit losses | 802 | 469 | 104 | 187 | 298 | 157 | 360 | 574 | 727 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | 30 | 1 | -5 | -4 | -2 | 3 | -4 | -1 | |
| Net credit losses | -169 | -147 | -250 | -26 | -69 | -71 | -1 | -78 | 120 |
| Operating profit | 633 | 352 | -145 | 156 | 225 | 84 | 362 | 492 | 846 |
SEB Group Total
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total operating income | 10,742 | 12,516 | 9,097 | 9,220 | 8,735 | 9,224 | 8,882 | 10,038 | 9,672 |
| Total operating expenses | -6,393 | -8,237 | -5,192 | -5,376 | -5,631 | -5,907 | -6,231 | -6,182 | -5,841 |
| Profit before credit losses | 4,349 | 4,279 | 3,905 | 3,844 | 3,104 | 3,317 | 2,651 | 3,856 | 3,831 |
| Gains less losses on disposals of tangible and | |||||||||
| intangible assets | 2 | 23 | 3 | -24 | -4 | -3 | 21 | 6 | |
| Net credit losses | -2,321 | -3,439 | -3,206 | -3,064 | -1,813 | -639 | 196 | 419 | 537 |
| Operating profit | 2,030 | 863 | 702 | 756 | 1,287 | 2,675 | 2,847 | 4,296 | 4,374 |
Net interest income
SEB Group, SEK m
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Interest income | 18,584 | 15,090 | 12,901 | 11,529 | 11,307 | 11,337 | 11,744 | 11,653 | 12,937 |
| Interest expense | -13,096 | -10,061 | -8,704 | -8,197 | -7,765 | -7,575 | -7,564 | -7,127 | -8,676 |
| Net interest income | 5,488 | 5,029 | 4,197 | 3,332 | 3,542 | 3,762 | 4,180 | 4,526 | 4,261 |
NII specification and development
SEB Group, SEK m
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 | |
| Start | 5,070 | 5,488 | 5,029 | 4,197 | 3,332 | 3,542 | 3,762 | 4,180 | 4,526 |
| Lending volume | 77 | 5 | -139 | -74 | -6 | 12 | -40 | 75 | -38 |
| Lending margin | 186 | 155 | 109 | 27 | -59 | -6 | 54 | -27 | -64 |
| Deposit volume | 44 | -23 | -48 | -10 | -17 | 11 | 7 | 14 | -1 |
| Deposit margin | -269 | -102 | -233 | -136 | -114 | -45 | 54 | 91 | 74 |
| Funding & other | 380 | -495 | -520 | -673 | 405 | 249 | 342 | 192 | -236 * |
| Sum | 5,488 | 5,029 | 4,197 | 3,332 | 3,542 | 3,762 | 4,180 | 4,526 | 4,261 |
* Adjusted for comparability SEK 325 m
Net interest income analysis
SEB Group, SEK m
Net interest and Net fee and commission income
SEB Group, SEK m
Net fee and commission income
SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Issue of securities | 35 | 168 | 99 | 199 | 45 | 124 | 20 | 168 | 62 |
| Secondary market | 491 | 639 | 525 | 519 | 426 | 419 | 374 | 546 | 440 |
| Custody and mutual funds | 1,289 | 1,380 | 1,427 | 1,560 | 1,667 | 1,805 | 1,675 | 1,920 | 1,903 |
| Securities commissions | 1,815 | 2,187 | 2,051 | 2,278 | 2,138 | 2,348 | 2,069 | 2,634 | 2,405 |
| Payments | 403 | 407 | 408 | 415 | 394 | 408 | 387 | 372 | 392 |
| Card fees | 1,027 | 1,074 | 1,034 | 1,068 | 989 | 1,038 | 1,021 | 944 | 947 |
| Payment commissions | 1,430 | 1,481 | 1,442 | 1,483 | 1,383 | 1,446 | 1,408 | 1,316 | 1,339 |
| Advisory | 118 | 160 | 157 | 215 | 64 | 96 | 185 | 137 | 66 |
| Lending | 335 | 351 | 356 | 351 | 336 | 448 | 440 | 462 | 446 |
| Deposits | 28 | 27 | 27 | 26 | 26 | 26 | 25 | 26 | 26 |
| Guarantees | 95 | 99 | 114 | 105 | 112 | 108 | 103 | 105 | 95 |
| Derivatives | 159 | 153 | 130 | 114 | 134 | 157 | 110 | 117 | 151 |
| Other | 170 | 176 | 161 | 201 | 148 | 207 | 179 | 178 | 124 |
| Other commissions | 905 | 966 | 945 | 1,012 | 820 | 1,042 | 1,042 | 1,025 | 908 |
| Total commission income | 4,150 | 4,634 | 4,438 | 4,773 | 4,341 | 4,836 | 4,519 | 4,975 | 4,652 |
| Securities commissions | -226 | -183 | -241 | -194 | -290 | -297 | -288 | -341 | -352 |
| Payment commissions | -630 | -594 | -588 | -601 | -587 | -609 | -599 | -450 | -542 |
| Other commissions | -350 | -366 | -346 | -391 | -270 | -257 | -245 | -278 | -255 |
| Commission expense | -1,206 | -1,143 | -1,175 | -1,186 | -1,147 | -1,163 | -1,132 | -1,069 | -1,149 |
| Securities commissions | 1,589 | 2,004 | 1,810 | 2,084 | 1,848 | 2,051 | 1,781 | 2,293 | 2,053 |
| Payment commissions | 800 | 887 | 854 | 882 | 796 | 837 | 809 | 866 | 797 |
| Other commissions | 555 | 600 | 599 | 621 | 550 | 785 | 797 | 747 | 653 |
| Net fee and commission income | 2,944 | 3,491 | 3,263 | 3,587 | 3,194 | 3,673 | 3,387 | 3,906 | 3,503 |
Net financial income
SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Equity instruments and related derivatives | 95 | -166 | -40 | 47 | 138 | 334 | 188 | -31 | 146 |
| Debt instruments and related derivatives | 58 | 568 | -33 | 210 | 327 | 205 | 17 | -70 | 218 |
| Currency related | 1,041 | 1,127 | 1,059 | 684 | 495 | 506 | 500 | 605 | 865 |
| Other financial instruments | 3 | -2 | -12 | 7 | 2 | -14 | 20 | 4 | 6 |
| Impairments | -64 | -56 | -29 | -9 | -12 | -54 | 2 | 4 | |
| Net financial income | 1,133 | 1,471 | 945 | 939 | 950 | 977 | 727 | 512 | 1,235 |
Note that Net financial income does not reflect the full income from the Trading operations which distribution can be found on page 47.
Fee and commission income SEB Group
Gross quarterly development Q1 2006 – Q1 2011, SEK m
Impact from exchange rate fluctuations
| SEK m | Q1-11/Q1-10 | Q1-11/Q4-10 | YTD-11/YTD-10 |
|---|---|---|---|
| Total income | -501 | -153 | -501 |
| Total expenses | 245 | 77 | 245 |
| Net credit losses | -82 | -29 | -82 |
| Operating profit | -338 | -106 | -338 |
| SEK bn | Mar-11/Dec-10 | ||
| Loans to the public | -8 | ||
| Deposits from the public | -7 | ||
| RWA - Basel II | -6 | ||
| Total assets | -17 |
Expenses
Staff costs - SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Salaries etc | -3,243 | -3,220 | -2,790 | -2,099 | -2,946 | -3,120 | -2,923 | -3,122 | -3,142 |
| Redundancies | -124 | -42 | -10 | -132 | -32 | -53 | -22 | -28 | -17 |
| Pensions | -390 | -383 | -341 | -328 | -297 | -271 | -293 | -232 | -297 |
| Other staff costs | -163 | -154 | -141 | -226 | -163 | -172 | -154 | -176 | -153 |
| Staff costs* | -3,920 | -3,799 | -3,282 | -2,785 | -3,438 | -3,616 | -3,392 | -3,558 | -3,609 |
*all items include social charges
Other expenses - SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Costs for premises | -414 | -420 | -408 | -441 | -419 | -403 | -414 | -423 | -413 |
| Data costs | -680 | -674 | -640 | -777 | -701 | -865 | -741 | -1,042 | -863 |
| Travel and entertainment | -92 | -106 | -83 | -147 | -92 | -128 | -98 | -182 | -103 |
| Consultants | -188 | -193 | -195 | -364 | -206 | -310 | -274 | -338 | -233 |
| Marketing | -118 | -119 | -127 | -152 | -94 | -139 | -118 | -192 | -103 |
| Information services | -109 | -100 | -100 | -104 | -106 | -106 | -109 | -109 | -110 |
| Other operating costs | 136 | 18 | -143 | -166 | 76 | 75 | 321 | 27 | |
| Other expenses | -1,465 | -1,612 | -1,535 | -2,128 | -1,784 | -1,875 | -1,679 | -1,965 | -1,798 |
Balance sheet structure & funding
Activity based balance sheet
| Assets SEK m |
Dec 2009 |
Dec 2010 |
Mar 2011 |
|---|---|---|---|
| Cash and cash balances with central banks | 36,589 | 46,488 | 15,914 |
| Lending | 218,700 | 132,846 | 148,294 |
| Repos | 42,324 | 30,885 | 17,464 |
| Reclassified bonds | 70,436 | 40,457 | 33,302 |
| Loans to credit institutions (1) | 331,460 | 204,188 | 199,060 |
| Public | 100,661 | 76,109 | 76,004 |
| Private Individuals | 460,204 | 388,263 | 397,925 |
| Corporate | 510,431 | 508,835 | 532,396 |
| Repos | 61,638 | 63,449 | 76,214 |
| Reclassifed bonds | 54,903 | 38,223 | 31,267 |
| Loans to the public | 1,187,837 | 1,074,879 | 1,113,807 |
| Debt instruments | 148,521 | 165,516 | 177,477 |
| Equity instruments | 39,403 | 56,275 | 78,676 |
| Derivatives | 147,462 | 131,058 | 124,369 |
| Insurance assets | 246,255 | 264,897 | 263,900 |
| Financial assets at fair value | 581,641 | 617,746 | 644,421 |
| Debt instruments | 85,538 | 64,135 | 65,534 |
| Other | 2,410 | 2,835 | 3,101 |
| Available-for-sale financial assets | 87,948 | 66,970 | 68,635 |
| Assets held for sale* | 596 | 74,951 | 0 |
| Tangible and intangible assets | 27,770 | 27,035 | 27,212 |
| Other assets | 54,386 | 67,564 | 49,372 |
| Total assets | 2,308,227 | 2,179,821 | 2,118,421 |
| Liabilities | Dec | Dec | Mar |
| SEK m | 2009 | 2010 | 2011 |
| Central banks | 122,413 | 31,714 | 36,326 |
| Credit institutions | 244,572 | 165,105 | 137,811 |
| Repos Deposits from credit institutions |
30,448 397,433 |
15,805 212,624 |
27,365 201,503 |
| Public | 46,802 214,819 |
54,866 175,933 |
62,139 173,068 |
| Private Individuals Corporate |
509,313 | 470,557 | 456,319 |
| Repos | 30,154 | 10,185 | 15,569 |
| Deposits and borrowing from the public | 801,088 | 711,541 | 707,095 |
| Liabilities to policyholders | 249,009 | 263,970 | 263,075 |
| CP/CD | 93,381 | 180,521 | 206,449 |
| Long term debt | 362,662 | 349,962 | 343,400 |
| Debt securities | 456,043 | 530,483 | 549,849 |
| Debt instruments | 47,002 | 44,798 | 31,239 |
| Equity instruments Derivatives |
14,527 129,911 |
33,670 122,222 |
41,129 122,979 |
| Financial liabilities at fair value | 191,440 | 200,690 | 195,347 |
| Liabilities held for sale* Other liabilities |
165 77,017 |
48,339 87,079 |
0 79,704 |
| Subordinated liabilities | 36,363 | 25,552 | 23,992 |
| Total liabilities | 2,208,558 | 2,080,278 | 2,020,566 |
| Total equity | 99,669 | 99,543 | 97,856 |
* German Retail Operations
1) Loans to credit institutions and liquidity placements with other direct participants in interbank fund transfer systems.
A strong balance sheet structure, March 2011 Funding structure by product
SEB Group, SEK 1,392bn, Mar 2011
Loan to deposit ratio excl repos and reclassified bonds
Total loans and deposits
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 | |
| Loans to the public | 1,317 | 1,305 | 1,207 | 1,188 | 1,204 | 1,226 | 1,089 | 1,075 | 1,114 |
| Less repos | 74 | 96 | 68 | 62 | 103 | 133 | 89 | 63 | 76 |
| Less reclassified bonds | 70 | 67 | 58 | 55 | 48 | 46 | 41 | 38 | 31 |
| Loans adjusted for repos and reclassified bonds | 1,174 | 1,142 | 1,081 | 1,072 | 1,053 | 1,047 | 958 | 974 | 1,006 |
| Deposits and borrow from the public | 836 | 823 | 753 | 801 | 740 | 759 | 717 | 712 | 707 |
| Less repos | 13 | 26 | 22 | 30 | 21 | 22 | 24 | 10 | 16 |
| Deposits adjusted for repos | 822 | 798 | 731 | 771 | 719 | 737 | 693 | 701 | 692 |
| Loan to deposit ratio | |||||||||
| excl reclassified bonds and repos | 143% | 143% | 148% | 139% | 146% | 142% | 138% | 139% | 146% |
Long-term funding Maturity profile, Mar 2011
By product, SEK bn
Long-term funding Maturity profile, Mar 2011
By currency, SEK bn
| Funding raised with original maturity > 1 year, SEK bn | |||
|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Full year | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|
| Instrument | 2010 | 2010 | 2010 | 2010 | 2011 | 2008 | 2009 | 2010 |
| Yankee CD | 0.0 | 1.2 | 1.4 | 0.3 | 0.0 | 5.9 | 3.1 | 2.9 |
| Senior unsecured SEB AG | 0.1 | 0.0 | 0.0 | 0.3 | 0.2 | 2.0 | 5.2 | 0.4 |
| Senior unsecured SEB AB | 3.7 | 0.0 | 6.9 | 3.4 | 4.5 | 37.4 | 60.4 | 14.0 |
| Structured bonds | 1.1 | 1.8 | 0.3 | 0.0 | 1.5 | 13.4 | 8.3 | 3.2 |
| Covered bonds SEB AG | 3.7 | 0.2 | 6.8 | 0.0 | 0.0 | 29.7 | 24.4 | 10.7 |
| Covered bonds SEB AB* | 0.0 | 22.9 | 16.6 | 31.5 | 43.9 | 72.9 | 25.6 | 71.0 |
| Hybrid tier 1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 4.7 | 3.3 | 0.0 |
| Total | 8.6 | 26.1 | 32.0 | 35.5 | 50.1 | 166.0 | 130.3 | 102.2 |
* Includes deal that was settled in first week of April
Net liquidity position
Note this is a cash flow based model where assets and liabilities are mapped to contractual maturities. SEB will manage more than 18 months without any new funding if the loans and liabilities mature without prolongation. Not ongoing business if funding is disturbed or lending increases.
SEB's Liquidity Reserve
| SEK bn | |
|---|---|
| Core Reserve * | 229 |
| of which | |
| Cash and holdings in central banks and deposits in other banks available o/n | 68 |
| Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | 39 |
| Securities issued or guaranteed by municipalities or other public entities | 39 |
| Covered bonds | 42 |
| SEB's own issued covered bonds | 0 |
| Securities issued by financial institutions (excluding covered bonds) | 13 |
| Other eligible securities | 28 |
| Extended Reserve | 297 |
| of which | |
| Core Reserve | 229 |
| Overcollateralization in SEB's cover pool | 68 |
| Additional Net Liquid Assets | 125 |
| (Net fixed income securities in trading operations) | |
| Total Liquid Resources | 422 |
| * As defined by the Swedish FSA ('SFSA') and the Swedish Bankers' Association |
SEB AB Covered bonds
| Characteristics of the Cover Pool March 2011 |
||
|---|---|---|
| Loans originated by | Skandinaviska Enskilda Banken AB (publ) | |
| Pool type / Pool notional | Dynamic / SEK 306bn | |
| Type of loans | 100% residential Swedish mortgages Single family Tenant owned apartments Multi family |
61% 24% 15% |
| Geographic loan distribution | A concentration to urban areas 68% in the three largest cities |
|
| Substitute assets | No substitute assets are included | |
| Number of loans / Number of borrowers | 517 K / 335 K | |
| WA loan balance | SEK 591 K | |
| WA LTV | 45% | |
| LTV distribution | 0 <=40% >40<=50% >50<=60% >60<=70% >70<=75% |
46% 14% 12% 11% 17% |
| Interest rate type | Floating rate Fixed reset <2yrs Fixed rate reset 2yrs <5yrs Fixed rate reset => 5yrs |
61% 26% 11% 1% |
| Payment frequency | Monthly Quarterly |
83% 17% |
| Prior ranks | No prior ranks Prior ranks of value <25% of value >25%<50% of value |
95% 4% 1% |
| Loans past due 60 days | 0.1247% | |
| Net credit losses ( = aggregated net of write-backs, write-offs and gross provisions) | 0.0053% |
| Characteristics of the Covered Bonds | |||||||
|---|---|---|---|---|---|---|---|
| Rating | Aaa by Moody's | ||||||
| Notional amount outstanding | SEK 210bn | ||||||
| Overcollateralization | 46% | ||||||
| Currencies | 72% SEK 28% non-SEK |
Capital adequacy and RWA
Capital adequacy, SEB Group
Basel II (without transition rules)
Target: A Tier 1 capital ratio of 10% over the business cycle
SEB Group - Basel II without transitional rules
RWA development
| Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 |
|---|---|---|---|---|---|---|---|---|
| 818 | 831 | 790 | 747 | 730 | 723 | 714 | 711 | 716 |
| 18 | 8 | 5 | 4 | 3 | 1 | 1 | -1 | 0 |
| 10 | -10 | -29 | 5 | -16 | 0 | -24 | -5 | -6 |
| -37 | ||||||||
| -1 | 5 | 3 | 1 | 13 | -11 | 8 | 1 | 2 |
| -14 | -44 | -22 | -27 | -7 | 1 | 12 | 10 | 3 |
| 831 | 790 | 747 | 730 | 723 | 714 | 711 | 716 | 678 |
SEB Fact Book January – March 2011 28
Capital base of the SEB financial group of undertakings
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Total equity according to balance sheet | 98,744 | 98,801 | 98,978 | 99,669 | 99,522 | 98,214 | 97,105 | 99,543 | 97,856 |
| ./. Dividend (excl repurchased shares) | 0 | 0 | 0 | -2,193 | -2,743 | -1,097 | -1,646 | -3,291 | -823 |
| ./. Investments outside the financial group of undertakings | -76 | -74 | -70 | -47 | -39 | -36 | -34 | -40 | -41 |
| ./. Other deductions outside the financial group of undertakings | -3,600 | -2,006 | -2,198 | -2,570 | -2,747 | -2,037 | -2,261 | -2,688 | -2,966 |
| = Total equity in the capital adequacy | 95,068 | 96,721 | 96,710 | 94,859 | 93,993 | 95,044 | 93,164 | 93,524 | 94,026 |
| Adjustment for hedge contracts | -1,326 | -913 | -437 | -419 | -275 | -57 | 1,085 | 1,755 | 2,233 |
| Net provisioning amount for IRB-reported credit exposures | -527 | -604 | -374 | -297 | 0 | 0 | 0 | 0 | 0 |
| Unrealised value changes on available-for-sale financial assets | 3,215 | 2,798 | 1,310 | 1,096 | 870 | 1,511 | 1,348 | 1,724 | 1,714 |
| ./. Exposures where RWA is not calculated | -630 | -939 | -1,037 | -1,169 | -1,324 | -1,457 | -1,175 | -1,184 | -1,034 |
| ./. Goodwill (8) | -6,949 | -4,497 | -4,364 | -4,464 | -4,374 | -4,374 | -4,184 | -4,174 | -4,110 |
| ./. Other intangible assets | -2,308 | -2,459 | -2,465 | -2,616 | -2,570 | -2,683 | -2,633 | -2,564 | -2,608 |
| ./. Deferred tax assets | -1,509 | -784 | -1,152 | -1,609 | -1,636 | -1,768 | -1,441 | -1,694 | -2,031 |
| = Core Tier 1 capital | 85,034 | 89,323 | 88,191 | 85,381 | 84,684 | 86,216 | 86,164 | 87,387 | 88,190 |
| Tier 1 capital contribution (non-innovative) | 5,130 | 4,869 | 4,762 | 4,577 | 4,492 | 4,468 | |||
| Tier 1 capital contribution (innovative) | 14,530 | 13,883 | 12,803 | 11,093 | 10,858 | 11,217 | 10,155 | 10,101 | 9,704 |
| = Tier 1 capital | 99,564 | 103,206 | 100,994 | 101,604 | 100,411 | 102,195 | 100,896 | 101,980 | 102,362 |
| Dated subordinated debt | 20,017 | 19,755 | 18,626 | 11,028 | 10,366 | 5,217 | 5,014 | 4,922 | 4,896 |
| ./. Deduction for remaining maturity | -735 | -679 | -641 | -658 | -554 | -383 | -368 | -361 | -360 |
| Perpetual subordinated debt | 12,408 | 8,057 | 7,275 | 7,386 | 7,137 | 7,738 | 7,050 | 4,152 | 3,923 |
| Net provisioning amount for IRB-reported credit exposures | -527 | -604 | -374 | -297 | 1,349 | 1,449 | 808 | 91 | 3 |
| Unrealised gains on available-for-sale financial assets | 354 | 300 | 494 | 642 | 615 | 504 | 484 | 511 | 490 |
| ./. Exposures where RWA is not calculated | -630 | -939 | -1,037 | -1,169 | -1,324 | -1,457 | -1,175 | -1,184 | -1,034 |
| ./. Investments outside the financial group of undertakings | -76 | -74 | -70 | -47 | -39 | -36 | -34 | -40 | -41 |
| = Tier 2 capital | 30,811 | 25,816 | 24,273 | 16,885 | 17,550 | 13,032 | 11,779 | 8,091 | 7,877 |
| ./. Investments in insurance companies | -10,620 | -10,621 | -10,600 | -10,601 | -10,500 | -10,500 | -10,500 | -10,500 | -10,500 |
| ./. Pension assets in excess of related liabilities | -1,396 | -1,113 | -864 | -543 | -1,119 | -869 | -652 | -422 | -933 |
| = Capital base | 118,359 | 117,288 | 113,803 | 107,345 | 106,342 | 103,858 | 101,523 | 99,149 | 98,806 |
Risk-weighted assets for the SEB financial group of undertakings
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Credit risk, IRB reported capital requirements | |||||||||
| Institutions | 60,424 | 53,453 | 48,846 | 50,200 | 41,796 | 41,764 | 42,642 | 37,405 | 36,161 |
| Corporates | 485,107 | 455,126 | 424,469 | 405,072 | 402,200 | 407,121 | 403,427 | 403,128 | 401,680 |
| Securitisation positions | 7,503 | 10,766 | 9,531 | 10,590 | 9,489 | 8,563 | 7,900 | 6,337 | 5,660 |
| Retail mortgages | 58,432 | 59,150 | 60,981 | 65,021 | 64,892 | 67,596 | 66,386 | 65,704 | 44,033 |
| Other retail exposures | 12,045 | 11,420 | 10,753 | 10,792 | 10,839 | 10,299 | 10,014 | 9,826 | 9,769 |
| Other exposure classes | 2,038 | 2,116 | 2,025 | 1,638 | 1,557 | 1,548 | 1,514 | 1,511 | 1,449 |
| Total for credit risk, IRB approach | 625,549 | 592,031 | 556,605 | 543,313 | 530,773 | 536,891 | 531,883 | 523,911 | 498,752 |
| Further capital requirements | |||||||||
| Credit risk, Standardised approach | 124,966 | 112,558 | 102,252 | 97,563 | 90,373 | 86,156 | 80,377 | 91,682 | 77,699 |
| Operational risk, Advanced Measurement approach | 38,733 | 43,583 | 43,440 | 39,459 | 39,793 | 39,814 | 45,440 | 44,568 | 43,477 |
| Foreign exchange rate risk | 7,670 | 9,016 | 6,610 | 7,957 | 11,981 | 11,577 | 16,754 | 15,995 | 12,243 |
| Trading book risks | 33,241 | 32,395 | 38,480 | 42,200 | 50,351 | 39,748 | 36,927 | 39,970 | 46,013 |
| Total | 830,159 | 789,583 | 747,387 | 730,492 | 723,271 | 714,186 | 711,381 | 716,126 | 678,184 |
| Summary | |||||||||
| Credit risk | 750,515 | 704,589 | 658,857 | 640,876 | 621,146 | 623,047 | 612,260 | 615,593 | 576,451 |
| Operational risk | 38,733 | 43,583 | 43,440 | 39,459 | 39,793 | 39,814 | 45,440 | 44,568 | 43,477 |
| Market risk | 40,911 | 41,411 | 45,090 | 50,157 | 62,332 | 51,325 | 53,681 | 55,965 | 58,256 |
| Total | 830,159 | 789,583 | 747,387 | 730,492 | 723,271 | 714,186 | 711,381 | 716,126 | 678,184 |
| Adjustment for flooring rules | |||||||||
| Addition according to transitional flooring | 66,495 | 59,591 | 58,732 | 64,685 | 88,537 | 110,276 | 86,102 | 83,672 | 98,582 |
| Total reported | 896,654 | 849,174 | 806,119 | 795,177 | 811,808 | 824,462 | 797,483 | 799,798 | 776,766 |
Specified information on the Capital base and requirements can be found in the interim report.
Capital adequacy
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Capital resources | |||||||||
| Core Tier 1 capital | 85,034 | 89,323 | 88,191 | 85,381 | 84,684 | 86,216 | 86,164 | 87,387 | 88,190 |
| Tier 1 capital | 99,564 | 103,206 | 100,994 | 101,604 | 100,411 | 102,195 | 100,896 | 101,980 | 102,362 |
| Capital base | 118,359 | 117,288 | 113,803 | 107,345 | 106,342 | 103,858 | 101,523 | 99,149 | 98,805 |
| Capital adequacy without transitional floor (Basel II) | |||||||||
| Risk-weighted assets | 830,159 | 789,583 | 747,387 | 730,492 | 723,271 | 714,186 | 711,381 | 716,126 | 678,184 |
| Expressed as capital requirement | 66,413 | 63,167 | 59,791 | 58,439 | 57,862 | 57,135 | 56,911 | 57,290 | 54,255 |
| Core Tier 1 capital ratio | 10.2% | 11.3% | 11.8% | 11.7% | 11.7% | 12.1% | 12.1% | 12.2% | 13.0% |
| Tier 1 capital ratio | 12.0% | 13.1% | 13.5% | 13.9% | 13.9% | 14.3% | 14.2% | 14.2% | 15.1% |
| Total capital ratio | 14.3% | 14.9% | 15.2% | 14.7% | 14.7% | 14.5% | 14.3% | 13.8% | 14.6% |
| Capital base in relation to capital requirement | 1.78 | 1.86 | 1.90 | 1.84 | 1.84 | 1.82 | 1.78 | 1.73 | 1.82 |
| Capital adequacy including transitional floor | |||||||||
| Transition floor applied | 80% | 80% | 80% | 80% | 80% | 80% | 80% | 80% | 80% |
| Risk-weighted assets | 896,654 | 849,174 | 806,131 | 795,177 | 811,808 | 824,462 | 797,483 | 799,798 | 776,766 |
| Expressed as capital requirement | 71,732 | 67,934 | 64,490 | 63,614 | 64,945 | 65,957 | 63,799 | 63,984 | 62,141 |
| Core Tier 1 capital ratio | 9.5% | 10.5% | 10.9% | 10.7% | 10.4% | 10.5% | 10.8% | 10.9% | 11.4% |
| Tier 1 capital ratio | 11.1% | 12.2% | 12.5% | 12.8% | 12.4% | 12.4% | 12.7% | 12.8% | 13.2% |
| Total capital ratio | 13.2% | 13.8% | 14.1% | 13.5% | 13.1% | 12.6% | 12.7% | 12.4% | 12.7% |
| Capital base in relation to capital requirement | 1.65 | 1.73 | 1.76 | 1.69 | 1.64 | 1.57 | 1.59 | 1.55 | 1.59 |
| Capital adequacy with risk weighting according to Basel I | |||||||||
| Risk-weighted assets | 1,137,300 | 1,080,347 | 1,019,329 | 1,003,250 | 993,680 | 1,007,939 | 984,225 | 998,326 | 970,912 |
| Expressed as capital requirement | 90,984 | 86,428 | 81,546 | 80,260 | 79,494 | 80,635 | 78,738 | 79,866 | 77,673 |
| Core Tier 1 capital ratio | 7.5% | 8.3% | 8.7% | 8.5% | 8.5% | 8.6% | 8.8% | 8.8% | 9.1% |
| Tier 1 capital ratio | 8.8% | 9.6% | 9.9% | 10.1% | 10.1% | 10.1% | 10.3% | 10.2% | 10.5% |
| Total capital ratio | 10.4% | 10.9% | 11.2% | 10.7% | 10.7% | 10.3% | 10.3% | 9.9% | 10.2% |
| Capital base in relation to capital requirement | 1.30 | 1.36 | 1.40 | 1.34 | 1.34 | 1.29 | 1.29 | 1.24 | 1.27 |
IRB reported credit exposures (less repos and securities lending)
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | |
|---|---|---|---|---|---|---|---|---|---|
| Average risk weight | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Institutions | 17.3% | 17.7% | 17.6% | 17.5% | 17.0% | 18.1% | 17.8% | 19.5% | 20.2% |
| Corporates | 59.3% | 59.1% | 59.1% | 57.8% | 58.5% | 57.7% | 59.1% | 57.0% | 56.6% |
| Securitisation positions | 12.2% | 19.3% | 18.6% | 22.6% | 22.6% | 22.5% | 22.4% | 20.6% | 20.0% |
| Retail mortgages | 16.3% | 16.2% | 16.7% | 17.2% | 16.8% | 17.1% | 17.2% | 16.9% | 13.0% |
| Other retail exposures | 39.9% | 38.7% | 37.9% | 38.5% | 39.1% | 38.6% | 38.7% | 38.2% | 37.6% |
All outstanding Subordinated Debt and Hybrid Tier 1 issues
| Maturity | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Issue date | Ratings | Format | Coupon | date | First call date Step-up | Currency | Size (m) | ||
| Lower Tier II Issues | |||||||||
| 15-Sep-05 | A2/A-/A | 12NC7 | mth € + 25 bps | 28-Sep-17 | 28-Sep-12 | 3-mth €+ 175bps | EUR | 500 | |
| Upper Tier II Issues | |||||||||
| 17-Nov-06 A2/BB+/A | PerpNC5 | 5.5000% | Perpetual | 28-Nov-11 | 3-mth £L+ 184bps | GBP | 200 | ||
| 25-Dec-97 A2/BB+/A | PerpNC30 | 5.0000% | Perpetual | 28-Jan-28 | 6-mth ¥L+ 150bps | JPY | 15,000 | ||
| 26-Jun-95 A2/BB+/A | PerpNC20 | 4.4000% | Perpetual | 14-Nov-15 | 6-mth ¥L+ 200bps | JPY | 10,000 | ||
| Tier I Issues | |||||||||
| 19-Mar-04 A3/BB+/A | PerpNC10 | 4.9580% | Perpetual | 25-Mar-14 | 3-mth \$L+ 182bps | USD | 407 | ||
| 23-Mar-05 A3/BB+/A | PerpNC10 | 5.4710% | Perpetual | 23-Mar-15 | 3-mth \$L+ 154bps | USD | 423 | ||
| 1-Oct-09 A3/BB+/A | PerpNC5 | 9.2500% | Perpetual | 31-Mar-15 | EUR | 500 | |||
| 17-Dec-07 A3/BB+/A | PerpNC10 | 7.0922% | Perpetual | 21-Dec-17 | 3-mth € + 340 bps | EUR | 500 |
Volumes
Balance sheet
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar |
|---|---|---|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| 18,929 | 97,886 | 25,158 | 36,589 | 19,634 | 17,372 | 34,384 | 46,488 | 15,914 |
| 284,096 | 213,245 | 231,697 | 331,460 | 272,242 | 246,891 | 225,236 | 204,188 | 199,060 |
| 1,317,189 | 1,304,683 | 1,206,833 | 1,187,837 | 1,203,833 | 1,226,476 | 1,088,736 | 1,074,879 | 1,113,807 |
| 639,483 | 568,035 | 604,624 | 581,641 | 623,302 | 670,990 | 666,731 | 617,746 | 644,421 |
| 105,011 | 98,014 | 88,138 | 87,948 | 70,954 | 65,988 | 66,937 | 66,970 | 68,635 |
| 1,236 | 1,845 | 1,793 | 1,332 | 1,303 | 1,500 | 1,461 | 1,451 | 1,181 |
| 79,280 | 74,951 | |||||||
| 1,152 | 1,174 | 1,122 | 995 | 1,018 | 1,018 | 1,020 | 1,022 | 1,079 |
| 29,965 | 27,900 | 27,432 | 27,770 | 27,206 | 27,565 | 26,998 | 27,035 | 27,212 |
| 63,167 | 60,736 | 46,602 | 52,655 | 65,798 | 60,807 | 62,996 | 65,091 | 47,112 |
| 2,460,228 | 2,373,518 | 2,233,399 | 2,308,227 | 2,285,290 | 2,318,607 | 2,253,779 | 2,179,821 | 2,118,421 |
| 401,471 | 405,699 | 342,518 | 397,433 | 393,379 | 358,448 | 238,293 | 212,624 | 201,503 |
| 835,603 | 823,359 | 752,966 | 801,088 | 739,907 | 759,347 | 717,005 | 711,541 | 707,095 |
| 210,939 | 227,401 | 237,665 | 249,009 | 255,289 | 253,024 | 256,953 | 263,970 | 263,075 |
| 495,782 | 488,951 | 480,564 | 456,043 | 469,312 | 486,330 | 536,882 | 530,483 | 549,849 |
| 276,325 | 211,978 | 201,069 | 191,440 | 209,524 | 258,415 | 238,741 | 200,690 | 195,347 |
| 50,680 | 48,339 | |||||||
| 89,051 | 72,220 | 76,855 | 75,149 | 80,747 | 70,867 | 86,732 | 85,665 | 78,092 |
| 2,020 | 1,822 | 1,791 | 2,033 | 1,724 | 1,753 | 1,478 | 1,414 | 1,612 |
| 50,081 | 43,287 | 40,993 | 36,363 | 35,886 | 32,209 | 29,910 | 25,552 | 23,992 |
| 98,956 | 98,801 | 98,978 | 99,669 | 99,522 | 98,214 | 97,105 | 99,543 | 97,856 |
| 2,460,228 | 2,373,518 | 2,233,399 | 2,308,227 | 2,285,290 | 2,318,607 | 2,253,779 | 2,179,821 | 2,118,421 |
| 567,980 | 474,129 | 496,467 | 457,209 | 463,267 | 469,235 | 485,206 | 416,864 | 423,328 |
placements with other direct participants in
interbank fund transfer systems.
Intangible assets
| SEK m | Mar'09 | Jun '09 | Sep '09 | Dec '09 | Mar '10 | Jun '10 | Sep '10 | Dec '10 | Mar '11 |
|---|---|---|---|---|---|---|---|---|---|
| Goodwill | 13,333 | 10,882 | 10,729 | 10,829 | 10,723 | 10,717 | 10,515 | 10,491 | 10,434 |
| Other intangibles | 2,565 | 2,712 | 2,702 | 2,847 | 2,841 | 2,945 | 2,879 | 2,801 | 2,836 |
| Deferred acquisition costs | 3,415 | 3,434 | 3,422 | 3,501 | 3,556 | 3,583 | 3,580 | 3,631 | 3,660 |
| Intangible assets | 19,313 | 17,027 | 16,854 | 17,177 | 17,121 | 17,245 | 16,974 | 16,923 | 16,930 |
Assets under management
SEK bn
| 2008 | 2009 | 2010 | Mar 2011 | |
|---|---|---|---|---|
| Assets under management, start of period | 1,370 | 1,201 | 1,356 | 1,399 |
| Inflow | 295 | 256 | 287 | 77 |
| Outflow | -261 | -209 | -232 | -65 |
| Net inflow of which: | 34 | 47 | 55 | 12 |
| Sweden | 25 | 30 | 9 | |
| Other Nordic | 6 | 2 | 4 | |
| Germany | 5 | 12 | 0 | |
| Baltic countries and Poland | 3 | 1 | 0 | |
| Other and Eliminations | 8 | 11 | -1 | |
| Acquisition/disposal net | 17 | -2 | -1 | |
| Change in value | -220 | 109 | -11 | -38 |
| Assets under management, end of period* | 1,201 | 1,356 | 1,399 | 1,372 |
| *Of which, not eliminated: | ||||
| Retail Banking | 74 | 86 | 91 | 74 |
| Wealth Management | 1,142 | 1,275 | 1,321 | 1,303 |
| Life | 354 | 402 | 424 | 425 |
Lending to the public
| Q1 2009 |
Q2 2009 |
Q3 2009 |
Q4 2009 |
Q1 2010 |
Q2 2010 |
Q3 2010 |
Q4 2010 |
Q1 2011 |
|
|---|---|---|---|---|---|---|---|---|---|
| Merchant Banking | 662 | 627 | 565 | 547 | 557 | 543 | 530 | 519 | 536 |
| Retail Banking | 421 | 433 | 436 | 446 | 450 | 458 | 385 | 397 | 413 |
| RB Sweden | 313 | 323 | 331 | 342 | 352 | 360 | 369 | 380 | 397 |
| RB Germany | 91 | 93 | 88 | 87 | 82 | 81 | - | - | - |
| RB Cards | 17 | 17 | 17 | 17 | 16 | 17 | 16 | 17 | 16 |
| Wealth Management | 29 | 30 | 28 | 27 | 29 | 29 | 29 | 31 | 32 |
| Life | - | - | - | - | - | - | - | - | - |
| Baltic | 161 | 152 | 137 | 131 | 119 | 113 | 106 | 102 | 101 |
| Baltic Estonia | 47 | 45 | 42 | 41 | 37 | 36 | 33 | 33 | 32 |
| Baltic Latvia | 40 | 38 | 33 | 32 | 29 | 27 | 26 | 24 | 24 |
| Baltic Lithuania | 74 | 69 | 62 | 58 | 53 | 50 | 47 | 45 | 45 |
| Other/Elim | 44 | 63 | 41 | 37 | 49 | 83 | 39 | 26 | 32 |
| SEB Group | 1,317 | 1,305 | 1,207 | 1,188 | 1,204 | 1,226 | 1,089 | 1,075 | 1,114 |
Deposits from the public
| Q1 2009 |
Q2 2009 |
Q3 2009 |
Q4 2009 |
Q1 2010 |
Q2 2010 |
Q3 2010 |
Q4 2010 |
Q1 2011 |
|
|---|---|---|---|---|---|---|---|---|---|
| Merchant Banking | 411 | 407 | 342 | 377 | 360 | 355 | 372 | 365 | 368 |
| Retail Banking | 207 | 210 | 203 | 206 | 199 | 205 | 166 | 175 | 175 |
| RB Sweden | 151 | 155 | 154 | 158 | 154 | 161 | 166 | 175 | 175 |
| RB Germany | 56 | 55 | 49 | 48 | 45 | 44 | - | - | - |
| RB Cards | - | - | - | - | - | - | - | - | - |
| Wealth Management | 53 | 54 | 51 | 47 | 50 | 55 | 50 | 47 | 45 |
| Life | - | - | - | - | - | - | - | - | - |
| Baltic | 73 | 68 | 65 | 64 | 60 | 59 | 56 | 57 | 56 |
| Baltic Estonia | 24 | 23 | 21 | 21 | 20 | 20 | 19 | 20 | 20 |
| Baltic Latvia | 18 | 16 | 14 | 14 | 14 | 14 | 13 | 12 | 12 |
| Baltic Lithuania | 31 | 29 | 30 | 29 | 26 | 25 | 24 | 25 | 24 |
| Other/Elim | 92 | 84 | 92 | 107 | 71 | 85 | 73 | 68 | 63 |
| SEB Group | 836 | 823 | 753 | 801 | 740 | 759 | 717 | 712 | 707 |
Credit portfolio, loan portfolio by industry and geography
Credit portfolio by industry and geography*
| SEB Group, 31 March 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 319 | 1 | 4 | 324 | ||||||
| Finance and insurance | 11 | 4 | 4 | 19 | ||||||
| Wholesale and retail | 97 | 310 | 452 | 330 | 74 | 1,263 | ||||
| Transportation | 20 | 4 | 313 | 105 | 19 | 461 | ||||
| Shipping | 2 | 43 | 1 | 46 | ||||||
| Business and household services | 42 | 6 | 107 | 456 | 46 | 52 | 709 | |||
| Construction | 44 | 51 | 11 | 172 | 385 | 100 | 763 | |||
| Manufacturing | 82 | 239 | 6 | 242 | 170 | 557 | 122 | 377 | 1,795 | |
| Agriculture, forestry and fishing | 1 | 12 | 60 | 23 | 96 | |||||
| Mining and quarrying | 33 | 22 | 55 | |||||||
| Electricity, gas and water supply | 1 | 1 | 1 | 5 | 8 | |||||
| Other | 173 | 4 | 24 | 30 | 340 | 571 | ||||
| Corporates | 472 | 615 | 148 | 246 | 170 | 2,006 | 1,112 | 1,017 | 5,786 | |
| Commercial | 100 | 1,859 | 3,721 | 1,256 | 554 | 7,490 | ||||
| Multi-family | 84 | 262 | 293 | 639 | ||||||
| Property Management | 184 | 2,121 | 3,721 | 1,549 | 554 | 8,129 | ||||
| Public Administration | ||||||||||
| Household mortgage | 118 | 10 | 128 | |||||||
| Other | 4 | 3 | 9 | 208 | 279 | 503 | ||||
| Households | 4 | 3 | 9 | 118 | 208 | 289 | 631 | |||
| Impaired loans | 975 | 2,741 | 155 | 9 | 246 | 170 | 5,845 | 2,869 | 1,860 | 14,870 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 339 | 4 | 1 | 344 | ||||||
| Finance and insurance | 1 | 3 | 4 | 2 | 21 | 31 | ||||
| Wholesale and retail | 81 | 77 | 362 | 459 | 333 | 1 | 1,312 | |||
| Transportation | 20 | 3 | 16 | 128 | 507 | 7 | 35 | 716 | ||
| Shipping | 2 | 6 | 8 | |||||||
| Business and household services | 46 | 107 | 57 | 68 | 511 | 108 | 5 | 902 | ||
| Construction | 21 | 18 | 1 | 98 | 481 | 285 | 88 | 27 | 1,018 | |
| Manufacturing | 86 | 7 | 12 | 243 | 361 | 154 | 631 | 255 | 209 | 1,957 |
| Agriculture, forestry and fishing | 26 | 6 | 75 | 20 | 21 | 147 | ||||
| Mining and quarrying | 33 | 24 | 57 | |||||||
| Electricity, gas and water supply | 0 | 4 | 0 | 0 | 4 | |||||
| Other | 153 | 24 | 24 | 15 | 30 | 0 | 55 | 716 | 1,017 | |
| Corporates | 435 | 156 | 42 | 247 | 635 | 1,330 | 2,420 | 866 | 1,039 | 7,170 |
| Commercial | 128 | 586 | 1,369 | 3,836 | 1,864 | 7,784 | ||||
| Multi-family | 70 | 305 | 0 | 325 | 700 | |||||
| Property Management | 198 | 586 | 1,674 | 3,836 | 2,189 | 8,484 | ||||
| Public Administration | ||||||||||
| Household mortgage | ||||||||||
| Other | 9 | 4 | 105 | 5 | 275 | 113 | 497 | 213 | 1,220 | |
| Households | 9 | 4 | 105 | 5 | 275 | 113 | 497 | 213 | 1,220 | |
| Impaired loans | 981 | 163 | 146 | 247 | 1,227 | 3,279 | 6,370 | 3,554 | 1,252 | 17,218 |
| whereof Retail, SEB AG | -743 | |||||||||
| Impaired loans excl Retail, SEB AG | 16,475 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses. Including German Retail portfolio.
Loan portfolio by industry and geography*
| SEB Group, 31 March 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 60,950 | 7,904 | 6,154 | 548 | 97 | 195 | 483 | 38,354 | 11,387 | 126,072 |
| Finance and insurance | 32,783 | 98 | 1,960 | 168 | 40 | 188 | 13 | 10,905 | 2,151 | 48,306 |
| Wholesale and retail | 15,344 | 929 | 365 | 117 | 1,611 | 2,424 | 5,716 | 4,323 | 1,921 | 32,750 |
| Transportation | 21,960 | 119 | 821 | 2 | 714 | 1,569 | 2,127 | 1,815 | 254 | 29,381 |
| Shipping | 22,002 | 18 | 87 | 151 | 226 | 150 | 271 | 8 | 4,069 | 26,982 |
| Business and household services | 44,079 | 258 | 2,578 | 283 | 1,680 | 1,059 | 1,479 | 10,666 | 657 | 62,739 |
| Construction | 5,152 | 82 | 353 | 94 | 414 | 946 | 684 | 91 | 48 | 7,864 |
| Manufacturing | 53,719 | 1,239 | 670 | 3,690 | 2,576 | 1,507 | 4,264 | 8,408 | 2,708 | 78,781 |
| Agriculture, forestry and fishing | 3,758 | 47 | 1 | 32 | 781 | 1,493 | 412 | 6 | 6,530 | |
| Mining and quarrying | 7,114 | 29 | 272 | 25 | 95 | 104 | 1 | 7,640 | ||
| Electricity, gas and water supply | 10,356 | 31 | 98 | 4,074 | 1,425 | 1,019 | 1,418 | 3,226 | 62 | 21,709 |
| Other | 13,891 | 815 | 2,492 | 107 | 290 | 269 | 252 | 830 | 3,186 | 22,132 |
| Corporates | 230,158 | 3,636 | 9,454 | 8,990 | 9,782 | 10,719 | 16,740 | 40,272 | 15,063 | 344,814 |
| Commercial | 63,809 | 794 | 527 | 5,551 | 3,180 | 10,745 | 41,568 | 1,393 | 127,567 | |
| Multi-family | 78,232 | 1 | 125 | 1,951 | 16 | 22,664 | 102,989 | |||
| Property Management | 142,041 | 1 | 919 | 527 | 5,551 | 5,131 | 10,761 | 64,232 | 1,393 | 230,556 |
| Public Administration | 7,445 | 5 | 142 | 960 | 1,569 | 112 | 1,747 | 66,087 | 126 | 78,193 |
| Household mortgage | 284,347 | 3,002 | 14,323 | 8,546 | 18,751 | 3 | 2,475 | 331,447 | ||
| Other | 23,246 | 2,498 | 9,406 | 722 | 2,214 | 2,252 | 1,287 | 450 | 2,700 | 44,775 |
| Households | 307,593 | 2,498 | 12,408 | 722 | 16,537 | 10,798 | 20,038 | 453 | 5,175 | 376,222 |
| Loan portfolio | 748,187 | 14,044 | 29,077 | 11,747 | 33,536 | 26,955 | 49,769 | 209,398 | 33,144 | 1,155,857 |
| Repos, credit institutions | 17,464 | |||||||||
| Repos, general public | 76,214 | |||||||||
| Debt instruments reclassified | 77,136 | |||||||||
| Reserves | -13,804 | |||||||||
| Total lending | 1,312,867 |
* The geographical distribution is based on where the loan is booked.
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 45,262 | 8,372 | 2,198 | 581 | 75 | 155 | 214 | 57,968 | 8,466 | 123,291 |
| Finance and insurance | 21,487 | 325 | 1,857 | 72 | 45 | 212 | 121 | 12,373 | 2,321 | 38,813 |
| Wholesale and retail | 15,869 | 386 | 523 | 104 | 1,535 | 2,520 | 5,666 | 6,757 | 1,550 | 34,910 |
| Transportation | 21,004 | 124 | 1,144 | 7 | 756 | 1,570 | 2,376 | 1,650 | 556 | 29,187 |
| Shipping | 23,173 | 57 | 124 | 121 | 254 | 190 | 254 | 14 | 3,601 | 27,788 |
| Business and household services | 46,420 | 388 | 3,409 | 260 | 1,736 | 1,090 | 1,492 | 13,307 | 1,028 | 69,130 |
| Construction | 4,228 | 74 | 321 | 77 | 455 | 1,017 | 720 | 1,046 | 37 | 7,975 |
| Manufacturing | 47,278 | 707 | 887 | 4,109 | 2,556 | 1,598 | 4,440 | 6,506 | 4,033 | 72,114 |
| Agriculture, forestry and fishing | 3,134 | 49 | 1 | 34 | 818 | 1,490 | 545 | 102 | 5 | 6,178 |
| Mining and quarrying | 7,156 | 28 | 287 | 24 | 104 | 108 | 4 | 3 | 7,714 | |
| Electricity, gas and water supply | 11,422 | 39 | 88 | 3,530 | 1,470 | 1,007 | 995 | 3,006 | 49 | 21,606 |
| Other | 19,947 | 714 | 2,508 | 807 | 295 | 287 | 320 | 2,818 | 3,395 | 31,091 |
| Corporates | 221,118 | 2,863 | 10,890 | 9,408 | 9,944 | 11,085 | 17,037 | 47,583 | 16,578 | 346,506 |
| Commercial | 56,752 | 160 | 841 | 515 | 5,721 | 3,402 | 10,819 | 42,010 | 682 | 120,902 |
| Multi-family | 72,275 | 1 | 154 | 2,049 | 17 | 23,697 | 98,193 | |||
| Property Management | 129,027 | 161 | 995 | 515 | 5,721 | 5,451 | 10,836 | 65,707 | 682 | 219,095 |
| Public Administration | 6,178 | 58 | 145 | 926 | 1,565 | 123 | 1,810 | 51,763 | 99 | 62,667 |
| Household mortgage | 271,997 | 3,034 | 14,486 | 8,713 | 18,944 | 58,146 | 2,634 | 377,954 | ||
| Other | 23,670 | 2,821 | 9,736 | 706 | 2,312 | 2,314 | 1,390 | 7,546 | 2,749 | 53,244 |
| Households | 295,667 | 2,821 | 12,770 | 706 | 16,798 | 11,027 | 20,334 | 65,692 | 5,383 | 431,198 |
| Loan portfolio | 697,252 | 14,275 | 26,998 | 12,136 | 34,103 | 27,841 | 50,231 | 288,713 | 31,208 | 1,182,757 |
| Repos, credit institutions | 30,885 | |||||||||
| Repos, general public | 63,449 | |||||||||
| Debt instruments reclassified | 91,333 | |||||||||
| Reserves | -14,919 | |||||||||
| Retail, SEB AG gross | -74,438 | |||||||||
| Total lending | 1,279,067 |
* The geographical distribution is based on where the loan is booked.
Credit portfolio – corporates Credit portfolio – households
Geography based on SEB's operations
* Incl. other Q1 affected by German Retail divestment
Credit portfolio by industry and geography*
| SEB Group, 31 March 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 107,439 | 17,953 | 14,171 | 2,606 | 100 | 228 | 571 | 49,541 | 15,115 | 207,724 |
| Corporates | 332,246 | 21,794 | 60,428 | 46,446 | 13,310 | 14,020 | 21,923 | 99,725 | 40,533 | 650,425 |
| Property Management | 145,312 | 713 | 7,013 | 8,004 | 5,646 | 5,244 | 10,958 | 70,584 | 1,982 | 255,456 |
| Public Administration | 17,907 | 4 | 1,010 | 960 | 1,869 | 114 | 2,294 | 66,960 | 126 | 91,244 |
| Households | 347,914 | 4,370 | 24,621 | 1,351 | 17,137 | 11,376 | 20,730 | 454 | 5,982 | 433,935 |
| Credit portfolio | 950,818 | 44,834 | 107,243 | 59,367 | 38,062 | 30,982 | 56,476 | 287,264 | 63,738 | 1,638,784 |
* Geography distribution is based on SEB's operations. Amounts before provisions for credit losses
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 92,222 | 15,222 | 10,239 | 2,592 | 78 | 192 | 315 | 72,245 | 12,391 | 205,496 |
| Corporates | 339,697 | 18,199 | 62,624 | 45,360 | 13,359 | 13,911 | 23,604 | 106,265 | 42,926 | 665,945 |
| Property Management | 134,845 | 885 | 7,319 | 8,060 | 5,833 | 5,649 | 11,058 | 72,064 | 1,278 | 246,991 |
| Public Administration | 16,841 | 58 | 444 | 926 | 1,864 | 133 | 2,265 | 52,827 | 99 | 75,457 |
| Households | 331,847 | 5,462 | 30,246 | 1,300 | 17,393 | 11,581 | 21,033 | 83,760 | 6,188 | 508,810 |
| Credit portfolio | 915,452 | 39,826 | 110,872 | 58,238 | 38,527 | 31,466 | 58,275 | 387,161 | 62,882 | 1,702,699 |
* Geography distribution is based on SEB's operations. Amounts before provisions for credit losses. Including German Retail portfolio.
Credit portfolio*
On & off balance, SEK bn
| Dec | Dec | Dec | Mar | ||
|---|---|---|---|---|---|
| SEB Group | 2008 | 2009 | 2010 | 2011 | % |
| Banks | 286 | 310 | 206 | 206 | 13% |
| Corporates | 782 | 656 | 666 | 666 | 40% |
| Property Management | 262 | 247 | 247 | 247 | 16% |
| Households | 486 | 509 | 509 | 509 | 26% |
| Public Administration | 119 | 94 | 75 | 75 | 5% |
| Total non-banks | 1.649 | 1.506 | 1.497 | 1.431 | 87% |
| Total | 1.934 | 1.816 | 1.703 | 1.639 | 100% |
| Dec | Dec | Dec | Mar | ||
|---|---|---|---|---|---|
| SEB Group | 2008 | 2009 | 2010 | 2011 | Q4 |
| Lending ** | 1.362 | 1.308 | 1.183 | 1.156 | -27 |
| Contingent Liabilities | 442 | 406 | 430 | 396 | -34 |
| Derivative Instruments | 130 | 102 | 90 | 87 | -3 |
| Credit Portfolio | 1.934 | 1.816 | 1.703 | 1.639 | -64 |
* Before loan loss reserves, excluding repos & debt instruments. Including German Retail until Dec 2010
Baltic geographies
Credit portfolio
Asset quality
Rating of credit portfolio, Mar 2011
Credit loss level, % *
* Total operations
SEB Group – net credit losses, SEK m
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| Net credit losses, quarterly | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Net write-offs | -178 | -328 | -570 | -738 | -275 | -64 | -132 | -414 | -78 |
| Net specific provisions | -787 | -1,269 | -1,907 | -2,455 | -402 | -588 | 10 | 64 | 265 |
| Net collective provisions of which: |
-1,356 | -1,842 | -729 | 129 | -1,136 | 13 | 318 | 769 | 350 |
| Individually assessed loans | -924 | -1,293 | -199 | 580 | -738 | 214 | 407 | 782 | 385 |
| Portfolio assessed loans | -432 | -549 | -530 | -451 | -398 | -201 | -89 | -13 | -35 |
| Net credit losses continuing operations | -2,321 | -3,439 | -3,206 | -3,064 | -1,813 | -639 | 196 | 419 | 537 |
| Net credit loss level total operations, YTD | 0.70 | 1.05 | 0.98 | 0.93 | 0.50 | 0.33 | 0.21 | 0.14 | -0.17 |
Development of non-performing loans
SEK bn
Non-performing loans & reserves
SEB Group, SEK m
| Mar '09 | Jun '09 | Sep '09 | Dec '09 | Mar '10 | Jun '10 | Sep '10 | Dec '10 | Mar '11 | |
|---|---|---|---|---|---|---|---|---|---|
| Individually assessed loans | |||||||||
| Impaired loans, gross | 12,982 | 16,690 | 18,369 | 21,324 | 19,621 | 19,238 | 18,136 | 17,218 | 14,870 |
| Specific reserves | 5,608 | 7,001 | 8,347 | 10,456 | 10,222 | 10,407 | 9,455 | 8,883 | 7,801 |
| Collective reserves | 3,685 | 4,963 | 4,915 | 4,371 | 4,893 | 4,386 | 3,822 | 3,030 | 2,459 |
| Off Balance sheet reserves | 407 | 281 | 348 | 478 | 516 | 503 | 491 | 476 | 400 |
| Specific reserve ratio | 43% | 42% | 45% | 49% | 52% | 54% | 52% | 52% | 52% |
| Total reserve ratio | 72% | 72% | 72% | 70% | 77% | 77% | 73% | 69% | 69% |
| Portfolio assessed loans | |||||||||
| Loans past due > 60 days | 4,561 | 6,393 | 6,939 | 6,937 | 7,148 | 7,107 | 6,980 | 6,534 | 6,696 |
| Restructured loans | 312 | 450 | 555 | 505 | 502 | 503 | |||
| Collective reserves | 1,847 | 2,375 | 2,781 | 3,250 | 3,509 | 3,668 | 3,594 | 3,576 | 3,544 |
| Reserve ratio | 41% | 37% | 40% | 45% | 46% | 48% | 48% | 51% | 49% |
| Non-performing loans | 17,543 | 23,083 | 25,308 | 28,573 | 27,219 | 26,900 | 25,621 | 24,254 | 22,069 |
| Total reserves | 11,547 | 14,620 | 16,391 | 18,555 | 19,141 | 18,965 | 17,363 | 15,965 | 14,204 |
| NPL coverage ratio | 66% | 63% | 65% | 65% | 70% | 71% | 68% | 66% | 64% |
| Non-performing loans / Lending | 1.1% | 1.5% | 1.7% | 1.9% | 1.8% | 1.8% | 1.8% | 1.8% | 1.7% |
Seized assets - SEB Group
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Properties, vehicles and equipment | 311 | 621 | 428 | 217 | 239 | 241 | 582 | 647 | 758 |
| Shares | 50 | 63 | 62 | 62 | 59 | 54 | 55 | 56 | 57 |
| Total seized assets | 361 | 684 | 490 | 279 | 298 | 295 | 637 | 703 | 815 |
Impaired loans by industry and geography*
(Individually assessed loans)
| SEB Group, 31 March 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 319 | 4 | 1 | 324 | ||||||
| Finance and insurance | 11 | 2 | 4 | 2 | 19 | |||||
| Wholesale and retail | 97 | 73 | 330 | 452 | 310 | 1 | 1,263 | |||
| Transportation | 20 | 3 | 11 | 105 | 313 | 5 | 4 | 461 | ||
| Shipping | 2 | 43 | 1 | 46 | ||||||
| Business and household services | 42 | 107 | 50 | 46 | 456 | 6 | 2 | 709 | ||
| Construction | 44 | 10 | 1 | 85 | 385 | 172 | 51 | 15 | 763 | |
| Manufacturing | 82 | 7 | 11 | 242 | 341 | 122 | 557 | 238 | 195 | 1,795 |
| Agriculture, forestry and fishing | 1 | 3 | 60 | 12 | 20 | 96 | ||||
| Mining and quarrying | 33 | 22 | 55 | |||||||
| Electricity, gas and water supply | 5 | 1 | 1 | 1 | 8 | |||||
| Other | 173 | 24 | 19 | 15 | 30 | 4 | 306 | 571 | ||
| Corporates | 472 | 148 | 36 | 246 | 585 | 1,112 | 2,006 | 615 | 566 | 5,786 |
| Commercial | 100 | 554 | 1,256 | 3,721 | 1,859 | 7,490 | ||||
| Multi-family | 84 | 294 | 261 | 639 | ||||||
| Property Management | 184 | 554 | 1,550 | 3,721 | 2,120 | 8,129 | ||||
| Public Administration | ||||||||||
| Household mortgage | 10 | 118 | 128 | |||||||
| Other | 3 | 74 | 208 | 4 | 214 | 503 | ||||
| Households | 3 | 84 | 208 | 118 | 4 | 214 | 631 | |||
| Impaired loans | 975 | 155 | 120 | 246 | 1,139 | 2,870 | 5,845 | 2,740 | 780 | 14,870 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 339 | 4 | 1 | 344 | ||||||
| Finance and insurance | 1 | 3 | 4 | 2 | 21 | 31 | ||||
| Wholesale and retail | 81 | 77 | 362 | 459 | 333 | 1 | 1,312 | |||
| Transportation | 20 | 3 | 16 | 128 | 507 | 7 | 35 | 716 | ||
| Shipping | 2 | 6 | 8 | |||||||
| Business and household services | 46 | 107 | 57 | 68 | 511 | 108 | 5 | 902 | ||
| Construction | 21 | 18 | 1 | 98 | 481 | 285 | 88 | 27 | 1,018 | |
| Manufacturing | 86 | 7 | 12 | 243 | 361 | 154 | 631 | 255 | 209 | 1,957 |
| Agriculture, forestry and fishing | 26 | 6 | 75 | 20 | 21 | 147 | ||||
| Mining and quarrying | 33 | 24 | 57 | |||||||
| Electricity, gas and water supply | 0 | 4 | 0 | 0 | 4 | |||||
| Other | 153 | 24 | 24 | 15 | 30 | 0 | 55 | 716 | 1,017 | |
| Corporates | 435 | 156 | 42 | 247 | 635 | 1,330 | 2,420 | 866 | 1,039 | 7,170 |
| Commercial | 128 | 586 | 1,369 | 3,836 | 1,864 | 7,784 | ||||
| Multi-family | 70 | 305 | 0 | 325 | 700 | |||||
| Property Management | 198 | 586 | 1,674 | 3,836 | 2,189 | 8,484 | ||||
| Public Administration | ||||||||||
| Household mortgage | ||||||||||
| Other | 9 | 4 | 105 | 5 | 275 | 113 | 497 | 213 | 1,220 | |
| Households | 9 | 4 | 105 | 5 | 275 | 113 | 497 | 213 | 1,220 | |
| Impaired loans | 981 | 163 | 146 | 247 | 1,227 | 3,279 | 6,370 | 3,554 | 1,252 | 17,218 |
| whereof Retail, SEB AG | -743 | |||||||||
| Impaired loans excl Retail, SEB AG | 16,475 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
Portfolio assessed loans*
Loans past due > 60 days
| SEB Group, 31 March 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark Norway Finland Estonia | Latvia | Lithuania Germany | Other | Total | |||||
| Corporates | 24 | 11 | 61 | 5 | 229 | 253 | 194 | 4 | 781 | |
| Household mortgage | 394 | 588 | 1,542 | 1,200 | 105 | 3,829 | ||||
| Other | 609 | 298 | 376 | 47 | 109 | 353 | 167 | 125 | 2,084 | |
| Households | 1,003 | 298 | 376 | 47 | 697 | 1,895 | 1,367 | 230 | 5,913 | |
| Past due > 60 days | 1,027 | 309 | 437 | 52 | 926 | 2,148 | 1,561 | 234 | 6,694 | |
* The geographical distribution is based on where the loan is booked.
SEB Group, 31 December 2010
| SEK m | Sweden Denmark Norway Finland Estonia | Latvia | Lithuania Germany | Other | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Corporates | 24 | 13 | 68 | 5 | 245 | 255 | 191 | 5 | 806 | |
| Household mortgage | 266 | 564 | 1,487 | 1,110 | 75 | 104 | 3,606 | |||
| Other | 590 | 299 | 383 | 65 | 112 | 355 | 177 | 141 | 2,122 | |
| Households | 856 | 299 | 383 | 65 | 676 | 1,842 | 1,287 | 75 | 245 | 5,728 |
| Past due > 60 days | 880 | 312 | 451 | 70 | 921 | 2,097 | 1,478 | 75 | 250 | 6,534 |
| whereof Retail, SEB AG | -75 | |||||||||
| Past due > 60 days excl Retail, SEB AG | 6,459 |
* The geographical distribution is based on where the loan is booked.
Portfolio assessed loans*
Restructured loans
| SEB Group, 31 March 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark Norway Finland Estonia | Latvia | Lithuania Germany | Other | Total | |||
| Corporates | ||||||||
| Household mortgage | 50 | 154 | 299 | 503 | ||||
| Other | ||||||||
| Households | 50 | 154 | 299 | 503 | ||||
| Restructured loans | 50 | 154 | 299 | 503 |
* The geographical distribution is based on where the loan is booked.
| SEB Group, 31 December 2010 | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark Norway Finland Estonia | Latvia | Lithuania Germany | Other | Total | |||
| Corporates | ||||||||
| Household mortgage | 49 | 159 | 294 | 502 | ||||
| Other | ||||||||
| Households | 49 | 159 | 294 | 502 | ||||
| Restructured loans | 49 | 159 | 294 | 502 |
* The geographical distribution is based on where the loan is booked.
Baltic geographies – asset quality
| SEB Baltic – net credit losses | Jan - Mar | % of | |||
|---|---|---|---|---|---|
| SEK m | Estonia | Latvia Lithuania | 2011 | Total | |
| Net Write-offs | -5 | -9 | 23 | 9 | 2% |
| Net Specific Provisions | 18 | 39 | 225 | 282 | 49% |
| Net Collective Provisions | 5 | 152 | 124 | 281 | 49% |
| of which: | |||||
| Individually assessed loans | 4 | 164 | 157 | 325 | 57% |
| Portfolio assessed loans | 1 | -12 | -33 | -44 | -8% |
| Net Credit Losses | 18 | 182 | 372 | 572 | 100% |
NPLs & reserves
Baltic geographies, Mar 2011, SEK m
By quarter
| Mar '09 | Jun '09 | Sep '09 | Dec '09 | Mar '10 | Jun '10 | Sep '10 | Dec '10 | Mar '11 | |
|---|---|---|---|---|---|---|---|---|---|
| Impaired loans, gross | 5,152 | 8,056 | 10,671 | 13,932 | 13,050 | 12,743 | 11,880 | 10,875 | 9,855 |
| Specific reserves | 1,852 | 2,668 | 4,305 | 6,632 | 6,634 | 6,759 | 6,060 | 5,502 | 4,922 |
| Collective reserves | 1,560 | 2,799 | 3,060 | 2,467 | 2,913 | 2,741 | 2,254 | 1,670 | 1,350 |
| Off balance sheet reserves | 4 | 48 | 50 | 82 | 87 | 86 | 73 | 69 | |
| Specific reserve ratio | 36% | 33% | 40% | 48% | 51% | 53% | 51% | 51% | 50% |
| Total reserve ratio | 66% | 68% | 69% | 65% | 73% | 74% | 70% | 66% | 64% |
| Portfolio assessed loans | |||||||||
| Loans past due > 60 days | 2,939 | 4,351 | 4,366 | 4,440 | 4,649 | 4,705 | 4,735 | 4,495 | 4,635 |
| Restructured loans | 0 | 0 | 0 | 312 | 450 | 555 | 505 | 502 | 503 |
| Collective reserves | 1,343 | 1,793 | 1,857 | 2,267 | 2,507 | 2,640 | 2,690 | 2,727 | 2,757 |
| Reserve ratio | 46% | 41% | 43% | 48% | 49% | 50% | 51% | 55% | 54% |
| Non-performing loans | 8,091 | 12,407 | 15,037 | 18,684 | 18,149 | 18,003 | 17,119 | 15,872 | 14,994 |
| Total reserves | 4,755 | 7,264 | 9,270 | 11,416 | 12,136 | 12,227 | 11,090 | 9,972 | 9,097 |
| NPL coverage ratio | 59% | 59% | 62% | 61% | 67% | 68% | 65% | 63% | 61% |
By country, Mar 2011, SEK m
| Estonia | Latvia | Lithuania | SEB Baltic | Dec 2010 | |
|---|---|---|---|---|---|
| Individually assessed loans | |||||
| Impaired loans, gross | 1,141 | 2,869 | 5,845 | 9,855 | 10,875 |
| Specific reserves | 773 | 1,399 | 2,750 | 4,922 | 5,502 |
| Collective reserves | 241 | 360 | 749 | 1,350 | 1,670 |
| Off balance sheet reserves | 2 | 34 | 33 | 69 | 73 |
| Specific reserve ratio | 68% | 49% | 47% | 50% | 51% |
| Total reserve ratio | 89% | 61% | 60% | 64% | 66% |
| Portfolio assessed loans | |||||
| Loans past due > 60 days, gross | 927 | 2,148 | 1,560 | 4,635 | 4,495 |
| Restructured loans | 51 | 154 | 298 | 503 | 502 |
| Collective reserves | 551 | 1,349 | 857 | 2,757 | 2,727 |
| Reserve ratio | 56% | 59% | 46% | 54% | 55% |
| Non-performing loans | 2,119 | 5,171 | 7,704 | 14,994 | 15,872 |
| Total reserves | 1,567 | 3,142 | 4,388 | 9,097 | 9,972 |
| NPL coverage ratio | 74% | 61% | 57% | 61% | 63% |
Baltic lending to the public*
EUR bn
Market risk
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 time-horizon for reporting. In the day-today risk management of trading positions, SEB follows up limits with a one-day time horizon. All risk exposures are well within the Board's decided limits.
The table below shows the VaR exposure by risk type. During the first quarter of 2011, the Group's Value at Risk in the trading operations averaged SEK 247m. The decrease compared to 2010 is due to lower positions in credit spreads and better positioning against higher interest rates.
| Value at Risk (99 per cent, ten days) | |||||
|---|---|---|---|---|---|
| SEKm | Min | Max | 31 March 2011 | Average 2010 | Average 2009 |
| Commodities | 0 | 0 | 0 | 0 | 1 |
| Credit spread | 192 | 286 | 224 | 251 | 111 |
| Equity | 16 | 71 | 44 | 40 | 50 |
| FX | 16 | 63 | 31 | 44 | 60 |
| Interest rate | 46 | 105 | 102 | 100 | 152 |
| Volatilities | 17 | 32 | 25 | 24 | - |
| Diversification | - | - | -169 | -155 | -212 |
| Total | 198 | 336 | 257 | 305 | 162 |
Bond investment portfolio
Total holdings amount to SEK 39bn
- 79% were Loans & Receivables (MTM not recorded)
- 2% were held for Trading (MTM over income)
- 19% were available for sale (MTM over equity)
Structured Credits
- 327 positions, well diversified across products, asset classes and geographical areas
- 39.1% of the portfolio volume is rated Aaa/AAA, 11.3% below investment grade
- During Q1, 27 positions have been downgraded whereof 6 positions from AAA
- During Q1, 4 positions have been upgraded
- Mark-to-Market prices are applied to almost all positions – very small amount of inventory in level 3
Financials
- Senior FRNs
- Maturity is 6M 5Y, weighted average life is 1.2Y
Portfolio breakdown by geography, 31 Mar, 2011
| Product | UK | Spain | Europe Other |
US | Australia NZ |
Total Volume |
|---|---|---|---|---|---|---|
| Financials | 18.8% | 0.0% | 17.9% | 60.0% | 3.3% | 5.3 |
| Covered Bonds |
0% | 98.7% | 1.3% | 0% | 0% | 7.5 |
| Structured 15.1% Credits |
7.5% | 49.9% | 26.7% | 0.8% | 26.0 | |
| ABS | 0.0% | 2.0% | 3.4% | 1.6% | 0.0% | 1.8 |
| CDO | 0.5% | 0.0% | 4.2% | 3.1% | 0.0% | 2.0 |
| CLO | 0.4% | 0.0% | 17.3% | 14.3% | 0.0% | 8.3 |
| CMBS | 2.0% | 0.0% | 8.1% | 0.5% | 0.0% | 2.8 |
| CMO | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0 |
| RMBS prime |
12.0% | 6.0% | 17.0% | 3.0% | 1.0% | 9.9 |
| RMBS non-prime |
0.0% | 0.0% | 0.0% | 4.0% | 0.0% | 1.2 |
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| Structured credits | -503 | 26 | 28 | 16 | 94 | 19 | 9 | -6 | 5 |
| Financial institutions | 39 | -7 | -7 | -55 | -11 | -41 | |||
| Covered bonds etc. | 10 | 1 | 5 | 0 | 0 | 3 | -7 | 4 | |
| Income effect | -454 | 19 | 22 | -34 | 83 | -22 | 12 | -13 | 9 |
| Structured credits | -27 | 225 | 259 | 184 | 237 | 61 | 255 | 68 | 77 |
| Financial institutions | 221 | 90 | 144 | 46 | 51 | 26 | 74 | 49 | 56 |
| Covered bonds etc. | -635 | 248 | 727 | -109 | -83 | -639 | -136 | -239 | 288 |
| Equity effect | -441 | 563 | 1,130 | 121 | 205 | -552 | 193 | -122 | 421 |
| Total recognised | -895 | 582 | 1,152 | 87 | 288 | -574 | 205 | -135 | 430 |
| Structured credits | -2,336 | -1,194 | 2,183 | 1,874 | 799 | 1,317 | 655 | 240 | 649 |
| Financial institutions | -672 | 141 | 1,020 | 354 | 253 | -572 | 171 | -72 | -33 |
| Covered bonds etc. | -67 | 29 | 32 | 9 | 6 | -15 | 3 | 0 | 3 |
| Fair value of reclassified securities |
-3,075 | -1,024 | 3,235 | 2,237 | 1,058 | 730 | 829 | 168 | 619 |
| Total fair value | -3,970 | -442 | 4,387 | 2,324 | 1,346 | 156 | 1,034 | 33 | 1,049 |
Portfolio breakdown, Financial effects
Divisional structure
Operating profit before credit loss provisions per division
Jan – Mar 2011 vs. Jan – Mar 2010
* Where of Sweden 7.3bn and Cards 2.6bn
** Where of Estonia 2.1bn, Latvia 3.2bn and Lithuania 3.0bn Average shareholder's equity SEK 99.7bn
Continuing operations
RoBE isolated per quarter, %
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 | |
| SEB Group (RoE) | 5.6 | -0.1 | 1.0 | 1.6 | 3.3 | 8.4 | 8.5 | 14.6 | 14.1 |
| Merchant Banking | 19.1 | 19.8 | 18.6 | 18.6 | 17.1 | 23.8 | 21.1 | 19.9 | 19.7 |
| Retail | 21.7 | 17.3 | 19.3 | 20.8 | 12.8 | 12.7 | 16.5 | 16.0 | 16.2 |
| Wealth Management | 10.8 | 13.4 | 14.6 | 21.1 | 17.7 | 21.0 | 15.2 | 27.4 | 23.1 |
| Life based on op profit | 24.2 | 27.0 | 28.8 | 29.5 | 34.1 | 29.5 | 32.0 | 29.7 | 28.1 |
| Life based on business result | 30.0 | 47.4 | 40.4 | 38.3 | 45.6 | 41.7 | 56.5 | 46.9 | 29.6 |
| Baltic | negative | negative | negative | negative | negative | negative | 17.3 | 25.7 | 37.3 |
| RoBE accumulated in the period, % | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 | |
| SEB Group (RoE) | 5.6 | 2.5 | 2.0 | 1.9 | 3.3 | 5.8 | 6.7 | 8.7 | 14.1 |
| Merchant Banking | 19.1 | 19.4 | 19.1 | 19.0 | 17.1 | 20.5 | 20.7 | 20.5 | 19.7 |
| Retail | 21.7 | 19.5 | 19.4 | 19.8 | 12.8 | 12.7 | 14.0 | 14.5 | 16.2 |
| Wealth Management | 10.8 | 12.1 | 12.9 | 14.9 | 17.7 | 19.1 | 17.8 | 20.2 | 23.1 |
| Life based on op profit | 24.2 | 25.6 | 26.7 | 27.4 | 34.1 | 31.8 | 31.9 | 31.3 | 28.1 |
| Life based on business result | 38.8 | 47.8 | 40.0 | 38.1 | 45.6 | 40.1 | 54.1 | 46.7 | 29.6 |
| Baltic | negative | negative | negative | negative | negative | negative | negative | 2.2 | 37.3 |
RWA per division, Basel I
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| SEB Group | 1,137 | 1,080 | 1,019 | 1,003 | 994 | 1,008 | 984 | 998 | 971 |
| Merchant Banking | 621 | 578 | 535 | 518 | 508 | 520 | 497 | 504 | 510 |
| Retail | 299 | 304 | 304 | 311 | 316 | 319 | 322 | 332 | 291 |
| Wealth Management | 25 | 26 | 23 | 22 | 24 | 25 | 25 | 27 | 27 |
| Baltic | 142 | 133 | 121 | 115 | 104 | 99 | 95 | 91 | 90 |
| Other | 51 | 40 | 36 | 37 | 41 | 46 | 45 | 44 | 53 |
RWA per division, Basel II
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 |
| SEB Group | 830 | 790 | 747 | 730 | 723 | 714 | 711 | 716 | 678 |
| Merchant Banking | 471 | 446 | 425 | 404 | 394 | 388 | 388 | 387 | 387 |
| Retail | 157 | 153 | 148 | 150 | 160 | 163 | 162 | 168 | 131 |
| Wealth Management | 42 | 35 | 30 | 31 | 31 | 32 | 31 | 33 | 32 |
| Baltic | 114 | 109 | 99 | 101 | 92 | 89 | 84 | 79 | 77 |
| Other | 46 | 48 | 44 | 45 | 46 | 43 | 46 | 49 | 51 |
Merchant Banking
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 1,732 | 1,966 | -12 | 1,732 | 1,782 | -3 | 7,328 |
| Net fee and commission income | 1,259 | 1,503 | -16 | 1,259 | 1,079 | 17 | 5,275 |
| Net financial income | 1,085 | 607 | 79 | 1,085 | 832 | 30 | 3,366 |
| Total operating income | 4,111 | 4,231 | -3 | 4,111 | 3,777 | 9 | 16,291 |
| Total operating expenses | -2,320 | -2,377 | -2 | -2,320 | -2,134 | 9 | -8,778 |
| Profit before credit losses | 1,791 | 1,854 | -3 | 1,791 | 1,643 | 9 | 7,513 |
| Net credit losses | -48 | -99 | -52 | -48 | -104 | -54 | -203 |
| Operating profit | 1,746 | 1,778 | -2 | 1,746 | 1,536 | 14 | 7,330 |
| Cost/Income ratio | 0.56 | 0.56 | 0.56 | 0.56 | 0.54 | ||
| Return on business equity, % | 19.7 | 19.9 | 19.7 | 17.1 | 20.5 |
Nordic leader in investment banking
Source: The Nordic Stock exchanges
Swedish M&A*
* Rank based on completed deals. All Swedish involvement. Source: Thomson Reuters
Nordic ECM transactions, by Bookrunner*
Jan – Mar 2011 (EUR m)
*Rank based on IPOs or follow-ons, Nordic stock exchanges Source: Dealogic
SEK League Tables - Corporate Bonds Jan – Mar 2011 (SEK m)
3.9%
3.4%
Source: Bloomberg
DnB NOR
SHB
Trading and Capital Markets Corporate Banking Income by main product cluster Total operating income
Custody volume development
Merchant Banking – recent rankings
| March 2011 | SEB's the Benche awarded best technology for use of customer communication and social networking in the financial sector |
|
|---|---|---|
| March 2011 | SEB Best Arranger Nordic Loans | |
| March 2011 | Best Nordic Corporate Loan - Hexagon | |
| March 2011 | SEB leading bank for arranging new bonds on behalf of Swedish issuers | |
| March 2011 | SEB Best Cash Management provider Sweden | |
| February 2011 | SEB Enskilda ranked as No.1 Research House in the Nordics by European institutions | |
| January 2011 | SEB - the best Nordic corporate bank tier 1 segment | |
| January 2011 | SEB named the Best Treasury & Cash Management Providers in the Nordic Region 2011 | |
| December 2010 | SEB awarded best client relationship bank in Sweden | |
| Financial Times & Mergermarket |
December 2010 | SEB Enskilda - Financial Adviser of the year in the Nordics |
| December 2010 | SEB Enskilda ranked best stockbroker in the Nordic region | |
| Bloomberg | December 2010 | Ranked no. 1 arranger of Scandinavian Domestic Bonds |
| FOW | December 2010 | SEB awarded best innovation by a bank for its cash flow hedging solution |
| November 2010 | Best FX Provider in the Nordic region as well as in Latvia and Lithuania | |
| November 2010 | SEB top ranked as lead arranger of corporate syndicated loans in Sweden |
Retail Banking
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 1,349 | 1,332 | 1 | 1,349 | 1,201 | 12 | 5,008 |
| Net fee and commission income | 788 | 848 | -7 | 788 | 789 | 0 | 3,240 |
| Net financial income | 64 | 74 | -14 | 64 | 65 | -2 | 273 |
| Total operating income | 2,215 | 2,268 | -2 | 2,215 | 2,064 | 7 | 8,569 |
| Total operating expenses | -1,574 | -1,596 | -1 | -1,574 | -1,457 | 8 | -6,115 |
| Profit before credit losses | 641 | 672 | -5 | 641 | 607 | 6 | 2,454 |
| Net credit losses | -98 | -144 | -32 | -98 | -196 | -50 | -543 |
| Operating profit | 544 | 528 | 3 | 544 | 411 | 32 | 1,910 |
| Cost/Income ratio | 0.71 | 0.70 | 0.71 | 0.71 | 0.71 | ||
| Return on business equity, % | 16.2 | 16.0 | 16.2 | 12.8 | 14.5 |
Income, Expenses and Operating profit, SEK m
Business volume development by area
SEK bn Q1 2011 change vs. Q1 2010
Retail Sweden
* Q1 2011 includes acquired volumes of SEK 7bn
Net interest income and volumes
Retail Sweden
Swedish mortgages private market
Fixed / floating interest rates, market share, per cent
Note: Fixed as presented here include mortgages with interest rate fixed for 1 year or more Floating as presented here include mortgages with interest rate fixed for 3 months or less
Market share development
Note: Other lending and deposits=SEB Parent Bank Sweden, i.e. not only Retail Sweden
Wealth Management
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 143 | 136 | 5 | 143 | 111 | 29 | 485 |
| Net fee and commission income | 994 | 1,115 | -11 | 994 | 868 | 15 | 3,752 |
| Net financial income | 15 | 30 | -50 | 15 | 18 | -17 | 89 |
| Total operating income | 1,154 | 1,285 | -10 | 1,154 | 997 | 16 | 4,384 |
| Total operating expenses | -748 | -789 | -5 | -748 | -679 | 10 | -2,910 |
| Profit before credit losses | 406 | 496 | -18 | 406 | 318 | 28 | 1,474 |
| Net credit losses | -1 | 7 | -114 | -1 | -1 | 0 | 3 |
| Operating profit | 405 | 503 | -19 | 405 | 317 | 28 | 1,477 |
| Cost/Income ratio | 0.65 | 0.61 | 0.65 | 0.68 | 0.66 | ||
| Return on business equity, % | 23.1 | 27.4 | 23.1 | 17.7 | 20.2 |
Income
Income, Expenses and Operating profit, SEK m
AuM per customer type, SEK bn
Total Net Sales per quarter, SEK bn
Mutual funds per product type
| Q1 2009 Q2 2009 Q3 2009 Q4 2009 | Q1 2010 Q2 2010 Q3 2010 Q4 2010 | Q1 2011 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Equity funds | 28% | 32% | 34% | 37% | 38% | 36% | 37% | 40% | 38% |
| Fixed income funds | 29% | 27% | 26% | 25% | 25% | 27% | 27% | 23% | 25% |
| Balanced funds | 13% | 14% | 14% | 14% | 14% | 15% | 15% | 16% | 16% |
| Alternative funds | 30% | 27% | 26% | 24% | 23% | 22% | 22% | 21% | 21% |
Activity level – Wealth
Life
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Total operating income | 1,130 | 1,101 | 3 | 1,130 | 1,184 | -5 | 4,539 |
| Total operating expenses | -619 | -595 | 4 | -619 | -602 | 3 | -2,402 |
| Operating profit | 511 | 506 | 1 | 511 | 582 | -12 | 2,137 |
| Change in surplus values, net | 27 | 294 | -91 | 27 | 195 | -86 | 1,045 |
| Business result | 538 | 800 | - 33 | 538 | 777 | - 31 | 3 182 |
| Cost/Income ratio | 0.55 | 0.54 | 0.55 | 0.51 | 0.53 | ||
| Return on business equity, % | |||||||
| based on operating profit | 28.1 | 29.7 | 28.1 | 34.1 | 31.3 | ||
| based on business result | 29.6 | 46.9 | 29.6 | 45.6 | 46.7 |
Income, Expenses and Operating profit, SEK m
Market position by profit area
Market shares, premium income,
Unit-linked insurances, (%, December 2010)
* Denmark unit-linked insurance in competitive markets (preliminary figures) ** Latvia Q1 2010, since the unit-linked is not reported separately
Market shares Sweden, per cent
Premium income, new and existing unit-linked policies December 2010 (December 2009)
Sales volume weighted
Life Division total sales, SEK m
| Jan – Mar | Jan – Mar | ||
|---|---|---|---|
| 2011 | 2010 | Change | |
| Unit linked | 10,525 | 11,636 | -10% |
| Traditional and | |||
| Sickness/health | 1,408 | 1,871 | -25% |
| Total | 11,933 | 13,507 | -12% |
Unit-linked sales, Sweden, SEK m
* Including Swedish customers of the Irish subsidiary
** December2010 figures (latest)
New business profit
Life (2006 only Swedish market), SEK m
| Full year 2006 |
Full year 2007 |
Full year 2008 |
Full year 2009 |
Full year 2010 |
Apr 2010 - Mar 2011 |
|
|---|---|---|---|---|---|---|
| New sales (single/10+regular) | 3,345 | 3,689 | 3,858 | 4,026 | 3,964 | 3,854 |
| Net present value | 1,788 | 1,775 | 1,598 | 1,492 | 1,536 | 1,455 |
| Acquisition cost | -970 | -901 | -879 | -916 | -929 | -897 |
| New business profit | 818 | 874 | 719 | 576 | 607 | 558 |
| Margin, % | 24.5 | 23.7 | 18.6 | 14.3 | 15.3 | 14.5 |
| Swedish market | 24.5 | 22.9 | 20.8 | 16.2 | 17,1 | 16.2 |
Details on Life
The division is responsible for SEB's life insurance operations and is one of the leading Nordic life insurance groups. The division is organised in three business areas:
- SEB Trygg Liv (Sweden)
- SEB Pension (Denmark)
- SEB Life & Pension International
The operations comprise insurance products in the area of investments and social security for private individuals and companies. The division has 1.8 million customers and is active in Sweden, Denmark, Finland, Ireland, Luxembourg, Estonia, Latvia, Lithuania and Ukraine. The main part of the traditional life insurance operations in Sweden is conducted through the mutually operated insurance company Gamla Livförsäkringsaktiebolaget SEB Trygg Liv and therefore not consolidated with the division's result. Gamla Liv is closed for new business. Traditional insurance business is also conducted in Fondförsäkringsaktiebolaget SEB Trygg Liv. The result of this business – with respect to investment income and insurance risk – is allocated to the policyholders. However, SEB Trygg Liv guarantees the contractual benefits to the policyholders in this business.
Comments on the first quarter 2011
During the first quarter operating profit decreased by 12 per cent to SEK 511m (582 the corresponding period last year).
Operating income amounted to SEK 1,130m which was SEK 54m or 5 per cent lower than last year. Currency effects when translating depreciated (against Swedish SEK) currencies in foreign subsidiaries accounted for SEK 42m of the decrease. The unit-linked income rose by SEK 47m or 8 per cent as a result of higher fund values. Income from other insurance, mainly traditional insurance and risk products such as sickness and health insurance, decreased by SEK 57m. The decrease within International was SEK 24m due to substantial recoveries in traditional investment portfolios last year. The decrease in Denmark amounted to SEK 20m but was a currency translation effect due to the stronger Swedish currency. In the Swedish business income from the risk insurance business decreased somewhat. Guarantee recoveries in the Swedish traditional business decreased to SEK 15m (24). The remaining guarantee provisions amount to SEK 14m in total. The provisions are related to previous depreciations of investment assets and recoverable when future investment returns are adequate to meet guaranteed bonus levels. Other income decreased by SEK 44m mainly as a result of lower return in investment portfolios for own account. Other items included in other income, such as IPS - Individual Pension Savings and other administrative fees, were stable.
Total expenses increased by 3 per cent to SEK 619m (602). If currency effects when translating foreign subsidiaries to SEK are excluded, expenses increased by SEK 42m or 7 per cent. Higher amortisation of deferred acquisition costs accounted for 3 per cent of the increase but should be seen in the light of increasing unit-linked income. The major part of the remaining increase of expenses was due to the employment of more sales personnel in order to strengthen the distribution capacity in Sweden.
Operating profit in SEB Trygg Liv Sweden, including central functions, was virtually unchanged at SEK 377m (372). Higher unitlinked income compensated for incresing expenses.
Operating profit in SEB Pension Denmark decreased by SEK 37m to SEK 114m. Currency translation effects contributed negatively by SEK 14m. In local currency, total income decreased by 9 per cent and expenses by 4 per cent. The decresed in income was a result of lower return in the investment portfolio for own account. Income from unitlinked and other insurance products increased in local currency.
Operating profit in SEB Life & Pension International decreased by SEK 39m to SEK 20m. The main cause was lower income from traditional insurance due to substantial recoveries in investment portfolios last year
Total assets under management amounted to SEK 425bn (411). The value of unit-linked funds increased by 9 per cent to SEK 180bn. From year-end the value was virtually unchanged. Gamla Liv's part of total assets under management was SEK 159bn, other traditional insurance accounted for 82bn and risk products for 4bn. In addition to this, SEK 6bn was managed for the division's own account.
The total weighted sales volume amounted to 11.9bn. The decrease compared to last year was SEK 1.2bn or 9 per cent in local currencies and an additional 0.4bn due to currency translation effects. In Sweden sales decreased by 13 per cent or SEK 1.0bn. The unit-linked product Portfolio Bond (depot endowment insurance) increased by SEK 0.5bn. This product is accounted for in the business area International, but is primarily sold to Swedish customers. In Denmark, at fixed currency rates, sale decreased by 18 per cent or SEK 0.7bn. Baltics and Ukraine were unchanged with a total volume of SEK 0.2bn during the first quarter.
SEB Trygg Liv, Sweden
The Swedish operation is partly conducted according to a bank assurance concept and partly through distribution via insurance mediators and other external partners. The bank assurance concept involves an integrated banking and insurance operation with distribution through SEB's branch offices and own sales personnel. The purpose of the concept is to offer SEB's customers a complete range of products and services within the financial area. Pension savings represent almost half of the Swedish households' financial assets. With a total asset volume of SEK 2,834bn, the share was 48 per cent at 31 December 2010 according to the SEB "Sparbarometer".
Market position
Sales focus is on unit-linked, which represents some 95 per cent of total sales. SEB Trygg Liv is the market leader in Sweden within unitlinked insurance. The new sales market share for full year 2010 was 22.4 per cent (26.7). The drop is due to the re-election of occupational pension within the SAF-LO agreement where SEB Trygg Liv doesn't participate.
Significant occupational pension business
The corporate share is recoverering slightly after falling since the beginning of 2008 due to the weak economic development during the past years. During the first quarter the corporate share was 61 per cent (58). For full year 2010, SEB Trygg Liv's market share in new sales unit-linked occupational pension was 17.4 per cent (18.5). In 2010 Folksam was number one due to the LO-SAF re-election with a market share of 21.5 per cent (10.2). SEB Trygg Liv also offers administration and management of pension foundations.
Strong also in the private market
In the private market, SEB Trygg Liv has a strong position within new business unit-linked endowment insurance, which has shown a strong growth. The market share in new sales for full year 2010 was 34.5 per cent (37.3). Sales of private pension savings other than endowment insurance are relatively stable. SEB's sales in this area consist mainly of IPS - Individual Pension Savings and "Enkla Pensionen", a unit-linked product with a guarantee.
SEB Pension, Denmark
The traditional life insurance operation of SEB Pension Denmark is carried out in a profit-sharing company and therefore included in the division's result. By hedging the investment portfolios, the market and investment risks are managed in relation to guaranteed commitments to policyholders. Variations in investment returns can be absorbed largely by accumulated buffer funds, called "collective bonus potential".
SEB Pension's products
SEB Pension sells savings, life, sickness and disability insurance to private individuals and corporate clients through own sales personnel, insurance mediators and Codan Forsikring.
Savings insurance is available both as unit-linked and traditional insurance. In the Danish private market, unit-linked insurance dominates whereas traditional insurance still accounts for the major part of sales in the corporate market. Some collective agreements do not allow sole unit-linked insurance solutions in occupational pension plans.
The trend is that the market for non-traditional life insurance such as unit-linked is expanding. The growth is mainly in the corporate segment, sold mainly by insurance mediators.
Growing occupational pension market
Since year 2000, it is mainly the Danish occupational pension market that grows, while the private market is relatively unchanged. SEB Pension's development has been in line with the general
trend. Measured in terms of premium income, SEB Pension has a total market share of 11 per cent. The market share in the unit-linked segment is 16 per cent. PFA Pension was number one with a total market share of 29 per cent but Danica dominated the unit-linked segment with a 40 per cent share. The market shares are preliminary for full year 2010 in the peer group / competitive market segment.
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 are the two dominant sales channels in the occupational pension market.
SEB Life & Pension International
SEB Life & Pension International includes subsidiaries in Ireland, Estonia, Latvia, Lithuania, Ukraine and branch offices in 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 focuses on sales via SEB Private Banking to Swedes living abroad. Since 2008, the Finnish branch office focuses on sales to the Finnish market. The portfolio bond offering will be strenghtened through the previously announced acquisition of Irish Life International with assets under management of some SEK 18bn and premium income of SEK 3bn. This will strengthen the distribution capacity across Europe and especially in the Private Banking segment.
The Baltic subsidiaries concentrate primarily on unit-linked insurance, but offer traditional insurance and sickness/disability insurance as well. During the first quarter 94 per cent of the sales volume was to private individuals. For full year 2010 the private share was 80 per cent.
Risk
The supervisory authorities in Sweden and Denmark are using a traffic light model for measuring insurance companies' exposure to various risks. The model estimates a capital buffer based on the fair value of assets and liabilities using realistic assumptions. Thereafter the companies are exposed to a number of fictitious stress scenarios which is determined by the regulators. The scenarios give rise to an overall capital requirement imposed on the companies.
If the estimated buffer is not sufficient the traffic light model show a red light, causing regulators to execute a more thorough review of both quantitative and qualitative nature. Both Fondförsäkringaktiebolaget SEB Trygg Liv and SEB Pension have a reassuring capital buffer as of 31 March 2011.
Income statement
| Q 1 Q 2 Q 3 Q 4 Q 1 Full year |
Full year |
|---|---|
| SEKm 2010 2010 2010 2010 2011 2009 |
2010 |
| Income unit-linked 585 609 611 668 632 2,048 |
2,473 |
| Income other insurance 1) 427 363 392 310 370 1,664 |
1,492 |
| Other income 172 141 138 123 128 713 |
574 |
| Total operating income 1,184 1,113 1,141 1,101 1,130 4,425 |
4,539 |
| Operating expenses 2) -668 -641 -594 -646 -649 -2,448 |
-2,549 |
| Other expenses -1 -1 -6 -5 0 -27 |
-13 |
| Change in deferred acquisition costs 67 32 5 56 30 165 |
160 |
| Total expenses -602 -610 -595 -595 -619 -2,310 |
-2,402 |
| Operating profit 582 503 546 506 511 2,115 |
2,137 |
| Change in surplus value, net 3) 195 180 376 294 27 1,067 |
1,045 |
| Business result 777 683 922 800 538 3,182 |
3,182 |
| Financial effects due to market fluctuations 3) 297 -537 180 686 -455 2,083 |
626 |
| Change in assumptions 3) 24 32 24 -323 -24 -704 |
-243 |
| Total result 1,098 178 1,126 1,163 59 4,561 |
3,565 |
| Business equity 6,000 6,000 6,000 6,000 6,400 6,800 |
6,000 |
| Return on business equity 4) 34.1 29.5 32.0 29.7 28.1 27.4 |
31.3 |
| Premium income, gross 8,527 7,491 6,698 7,752 8,549 30,605 |
30,468 |
| Expense ratio, % 5) 7.8 8.6 8.9 8.3 7.6 8.0 |
8.4 |
| Operating profit by business area | |
| SEB Trygg Liv, Sweden 375 333 359 408 388 1,479 |
1,475 |
| SEB Pension, Denmark 151 158 151 61 114 574 |
521 |
| SEB Life & Pension, International 59 29 50 38 20 148 |
176 |
| Other including central functions etc -3 -17 -14 -1 -11 -86 |
-35 |
| 582 503 546 506 511 2,115 |
2,137 |
| 1) Effect of guarantee commitments in | |
| traditional insurance in Sweden 24 -10 12 50 15 286 |
76 |
| 2) Change compared to previous reporting due to | |
| reallocation within the Group -16 -16 -17 -16 |
-65 |
| 3) Effect on surplus values | |
| Changes compared to previously because | |
| Danish traditional insurance is now included: | |
| Change in surplus value, net -34 -11 -24 -51 167 |
-120 |
| Financial effects due to market fluctuations 5 1 42 24 64 Change in assumptions 12 31 10 56 5 |
72 109 |
4) Operating profit after 12 per cent tax which reflects the divisions effective tax rate, annual basis
5) Operating expenses as percentage of premium income
Sales volume insurance (weighted)
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Full year | Full year | |
|---|---|---|---|---|---|---|---|
| SEKm | 2010 | 2010 | 2010 | 2010 | 2011 | 2009 | 2010 |
| Total | 13,507 | 11,967 | 10,699 | 12,314 | 11,933 | 50,666 | 48,487 |
| Traditional life and sickness/health insurance | 1,871 | 1,754 | 1,548 | 1,938 | 1,408 | 10,267 | 7,111 |
| Unit-linked insurance | 11,636 | 10,213 | 9,151 | 10,376 | 10,525 | 40,399 | 41,376 |
| Corporate as per cent of total | 60% | 62% | 72% | 66% | 58% | 61% | 65% |
| SEB Trygg Liv Sweden | 8,067 | 7,470 | 7,032 | 7,804 | 7,026 | 31,222 | 30,373 |
| Traditional life and sickness/health insurance | 341 | 356 | 322 | 403 | 322 | 1,340 | 1,422 |
| Unit-linked insurance | 7,726 | 7,114 | 6,710 | 7,401 | 6,704 | 29,882 | 28,951 |
| Corporate as per cent of total | 58% | 59% | 73% | 66% | 61% | 57% | 63% |
| SEB Pension Denmark | 3,882 | 3,137 | 2,579 | 3,146 | 2,845 | 14,105 | 12,744 |
| Traditional life and sickness insurance | 1,399 | 1,228 | 1,126 | 1,338 | 955 | 8,089 | 5,091 |
| Unit-linked insurance | 2,483 | 1,909 | 1,453 | 1,808 | 1,890 | 6,016 | 7,653 |
| Corporate as per cent of total | 79% | 85% | 88% | 80% | 76% | 84% | 82% |
| SEB Life & Pension International | 1,558 | 1,360 | 1,088 | 1,364 | 2,062 | 5,339 | 5,370 |
| Traditional life and sickness insurance | 131 | 170 | 100 | 197 | 131 | 838 | 598 |
| Unit-linked insurance | 1,427 | 1,190 | 988 | 1,167 | 1,931 | 4,501 | 4,772 |
| Corporate as per cent of total | 22% | 28% | 32% | 31% | 26% | 21% | 28% |
Sales SPE
Life including the Baltics from 2006
Note: SPE = Single premiums plus regular premiums times ten
Premium income and Assets under management
| SEKm | Q 1 2010 |
Q 2 2010 |
Q 3 2010 |
Q 4 2010 |
Q 1 2011 |
Full year 2009 |
Full year 2010 |
|---|---|---|---|---|---|---|---|
| Premium income: Total | 8,527 | 7,491 | 6,698 | 7,752 | 8,549 | 30,605 | 30,468 |
| Traditional life and sickness/health insurance | 1,993 | 1,662 | 1,332 | 1,959 | 1,301 | 9,102 | 6,946 |
| Unit-linked insurance | 6,534 | 5,829 | 5,366 | 5,793 | 7,248 | 21,503 | 23,522 |
| SEB Trygg Liv Sweden | 4,808 | 4,137 | 3,882 | 4,290 | 4,743 | 17,295 | 17,117 |
| Traditional life and sickness/health insurance | 672 | 560 | 517 | 651 | 607 | 3,018 | 2,400 |
| Unit-linked insurance | 4,136 | 3,577 | 3,365 | 3,639 | 4,136 | 14,277 | 14,717 |
| SEB Pension Denmark | 2,152 | 2,184 | 1,943 | 2,326 | 1,795 | 8,460 | 8,605 |
| Traditional life and sickness/health insurance | 1,235 | 1,004 | 738 | 1,199 | 616 | 5,682 | 4,176 |
| Unit-linked insurance | 917 | 1,180 | 1,205 | 1,127 | 1,179 | 2,778 | 4,429 |
| SEB Life & Pension International | 1,567 | 1,170 | 873 | 1,136 | 2,011 | 4,850 | 4,746 |
| Traditional life and sickness/health insurance | 86 | 98 | 77 | 109 | 78 | 402 | 370 |
| Unit-linked insurance | 1,481 | 1,072 | 796 | 1,027 | 1,933 | 4,448 | 4,376 |
| Assets under management:* Total | 410,700 | 405,300 | 413,600 | 424,100 | 425,100 | 401,700 | 424,100 |
| Traditional life and sickness/health insurance | 246,200 | 241,600 | 244,600 | 244,600 | 245,600 | 245,300 | 244,600 |
| Unit-linked insurance | 164,500 | 163,700 | 169,000 | 179,500 | 179,500 | 156,400 | 179,500 |
| SEB Trygg Liv Sweden | 290,100 | 284,300 | 292,600 | 303,900 | 302,900 | 282,400 | 303,900 |
| Traditional life and sickness/health insurance | 164,300 | 160,300 | 164,800 | 168,100 | 168,700 | 162,100 | 168,100 |
| Unit-linked insurance | 125,800 | 124,000 | 127,800 | 135,800 | 134,200 | 120,300 | 135,800 |
| SEB Pension Denmark | 94,500 | 94,300 | 93,700 | 91,400 | 92,400 | 95,000 | 91,400 |
| Traditional life and sickness/health insurance | 80,800 | 80,200 | 78,700 | 75,400 | 75,800 | 82,100 | 75,400 |
| Unit-linked insurance | 13,700 | 14,100 | 15,000 | 16,000 | 16,600 | 12,900 | 16,000 |
| SEB Life & Pension International | 26,100 | 26,700 | 27,300 | 28,800 | 29,800 | 24,300 | 28,800 |
| Traditional life and sickness/health insurance | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 |
| Unit-linked insurance | 25,000 | 25,600 | 26,200 | 27,700 | 28,700 | 23,200 | 27,700 |
* rounded to whole 100 millions.
SEK bn
Surplus value accounting Including traditional insurance in Denmark (not included in previous reporting)
| SEKm | Q 1 2010 |
Q 2 2010 |
Q 3 2010 |
Q 4 2010 |
Q 1 2011 |
Full year 2010 |
|---|---|---|---|---|---|---|
| Surplus values, opening balance | 14,928 | 15,554 | 15,184 | 15,698 | 16,318 | 14,928 |
| Adjustment opening balance 1) | 203 | -6 | 6 | -56 | 203 | |
| Present value of new sales 2) | 428 | 382 | 370 | 422 | 342 | 1,602 |
| Return/realised value on policies from previous periods | -137 | -150 | -160 | -163 | -142 | -610 |
| Actual outcome compared to assumptions 3) | -29 | -20 | 171 | 91 | -143 | 213 |
| Change in surplus values ongoing business, gross | 262 | 212 | 381 | 350 | 57 | 1,205 |
| Capitalisation of acquisition costs for the period | -231 | -195 | -165 | -222 | -214 | -813 |
| Amortisation of capitalised acquisition costs | 164 | 163 | 160 | 166 | 184 | 653 |
| Change in surplus values ongoing business, net 4) | 195 | 180 | 376 | 294 | 27 | 1,045 |
| Financial effects due to short term market fluctuations 5) | 297 | -537 | 180 | 686 | -455 | 626 |
| Change in assumptions 6) | 24 | 32 | 24 | -323 | -24 | -243 |
| Total change in surplus values | 516 | -325 | 580 | 657 | -452 | 1,428 |
| Exchange rate differences etc | -93 | -39 | -72 | -37 | -11 | -241 |
| Surplus values, closing balance 7) | 15,554 | 15,184 | 15,698 | 16,318 | 15,799 | 16,318 |
| Of which traditional insurance in Denmark | 1,190 | 1,178 | 1,158 | 1,164 | 1,118 | 1,164 |
| Most important assumptions (Swedish customer base - which represent 89 per cent of the surplus value), per cent. | ||||||
| Discount rate | 7.5 | 7.5 | ||||
| Surrender of endowment insurance contracts: | ||||||
| contracts signed within 1 year / 1-4 years | 1 / 7 / | 1 / 7 / | ||||
| / 5 years / 6 years / thereafter | 15 / 12 / 8 | 15 / 12 / 8 | ||||
| Lapse rate of regular premiums, unit-linked | 11 | 11 | ||||
| Growth in fund units, gross before fees and taxes | 5.5 | 5.5 | ||||
| Inflation CPI / Inflation expenses | 2 / 3 | 2 / 3 | ||||
| Expected return on solvency margin | 4 | 4 | ||||
| Right to transfer policy, unit-linked | 2 | 2 | ||||
| Mortality | The Group's experience | |||||
| Sensitivity to changes in assumptions (total division). | ||||||
| Change in discount rate +1 per cent | -1,637 | -1,585 | ||||
| " -1 per cent |
1,881 | 1,829 | ||||
| Change in value growth +1 per cent |
1,560 | 1,615 | ||||
| of investment assets -1 per cent |
-1,430 | -1,430 |
1) Effects from adjustments of the calculation method.
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) 2010 was negatively affected by assumed higher frequency of transfer of policies.
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 3,660m at March 31, 2011).
Surplus values
Surplus values are the present values of future profits from written insurance policies. They are calculated to better evaluate the profitability of a life insurance business since an insurance policy often has a long duration. Income accrues regularly throughout the duration of the policy. Costs, on the other hand, mainly arise at the point of sale, which leads to an imbalance between income and costs at the time when a policy is signed.
The reporting is according to international practice and is reviewed by an external party annually. Surplus values are not consolidated in the SEB Group accounts. Surplus values relating to the traditional business in Denmark are for the first time included in the total surplus values for the division. Historical figures are restated accordingly. 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.
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 | Full year 2008 | Full year 2009 | Full year 2010 | Apr 2010 - Mar 2011 | |
|---|---|---|---|---|---|
| Sales volume weighted (regular + single/10) | 3,858 | 4,026 | 3,964 | 3,854 | |
| Present value of new sales | 1,598 | 1,492 | 1,536 | 1,455 | |
| Sales expenses | -879 | -916 | -929 | -897 | |
| Profit from new business | 719 | 576 | 607 | 558 | |
| Sales margin new business | 18.6% | 14.3% | 15.3% | 14.5% |
The traditional insurance in Denmark is not included.
During the past years there has been pressure on prices. Together with a change in the product mix this has affected the margin negatively.
Embedded value
| SEKm | 31 Dec 2008 | 31 Dec 2009 | 31 Dec 2010 | 31 Mar 2011 |
|---|---|---|---|---|
| Equity 1) | 8,827 | 8,594 | 8,780 | 9,081 |
| Surplus values 2) | 12,660 | 14,928 | 16,318 | 15,799 |
| 1) Dividend paid to the parent company during the period | -1,275 | -1,850 | -1,000 | 0 |
| 2) Of which traditional insurance in Denmark | 1,111 | 1,272 | 1,164 | 1,118 |
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 policyholders' 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.
Baltic
| Q1 | Q4 | Jan- Mar | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net interest income | 456 | 492 | -7 | 456 | 506 | -10 | 1,923 |
| Net fee and commission income | 209 | 235 | -11 | 209 | 228 | -8 | 964 |
| Net financial income | 80 | 60 | 33 | 80 | 131 | -39 | 401 |
| Total operating income | 740 | 798 | -7 | 740 | 869 | -15 | 3,340 |
| Total operating expenses | -428 | -688 | -38 | -428 | -533 | -20 | -2,201 |
| Profit before credit losses | 312 | 110 | 184 | 312 | 336 | -7 | 1,139 |
| Net credit losses | 572 | 736 | -22 | 572 | -1,431 | -140 | -873 |
| Operating profit | 886 | 842 | 5 | 886 | -1,095 | -181 | 261 |
| Cost/Income ratio | 0.58 | 0.86 | 0.58 | 0.61 | 0.66 | ||
| Return on business equity, % | 37.3 | 25.7 | 37.3 | negative | 2.2 |
Income, Expenses and Operating profit, SEK m
Income Profit before credit losses
Business volume development by area SEK bn
Q1 2011 change vs. Q1 2010 (local currency)
Baltic Lending market shares
Per cent, Q1 2008 – Q1 2011
Source: Bank of Estonia, Association of Latvian Banks, Association of Lithuanian Banks, SEB Group
Net interest income and volumes
Baltic Estonia, EUR
Baltic Latvia, LVL
Baltic Lithuania, LTL
Real Estate holding companies
Baltic countries
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
| Seized assets | 0 | 0 | 0 | 50 | 50 | 158 | 293 | 399 | 534 |
Baltic division vs. geography*
The Baltic division encompasses the retail, trading & capital markets and global transaction services operations in Estonia, Latvia and Lithuania. In the Fact Book the full Baltic geographical segmentation is also reported, including the operations in Wealth Management and Life.
| C/I ratio | ||
|---|---|---|
| Division | 0.61 | 0.58 |
| Country | 0.56 | 0.53 |
Macro
Nordic countries
General govermental public debt, % of GDP General governmental deficit,
Baltic countries
Baltic GDP, year-on-year % change Unemployment, % of labour force
Sentiment indicator, year-on-year % change Inflation, year-on-year % change
General government balance, year-on-year % change General government public debts, % of GDP
Retail sales, year-on year % change Export, year-on-year % change
Swedish housing market
Number of housing starts compared to population, % Mortgage lending rates, %
Swedish household debt, % of disposable income Household savings ratio
House prices Residential investments
Asset to debt ratio Labour market situation
Macro forecasts per country
| GDP (%) | Inflation (%) | |||||||
|---|---|---|---|---|---|---|---|---|
| 2009 | 2010 | 2011F | 2012F | 2009 | 2010 | 2011F | 2012F | |
| Denmark* | -5.3 | 2.3 | 2.6 | 2.3 | 1.1 | 2.2 | 2.4 | 2.1 |
| Finland* | -8.1 | 3.0 | 3.5 | 3.0 | 1.6 | 1.7 | 2.3 | 2.0 |
| Norway | -1.4 | 0.1 | 2.7 | 2.5 | 2.1 | 2.5 | 1.6 | 2.2 |
| Sweden | -5.3 | 5.7 | 4.7 | 2.5 | -0.3 | 1.3 | 2.7 | 2.4 |
| Germany* | -4.7 | 3.6 | 2.5 | 1.8 | 0.2 | 1.2 | 1.8 | 1.4 |
| Eurozone* | -4.0 | 1.6 | 1.7 | 1.5 | 0.3 | 1.6 | 2.0 | 1.4 |
| Estonia* | -13.9 | 3.1 | 5.0 | 4.5 | 0.2 | 2.7 | 4.0 | 5.0 |
| Latvia* | -18.0 | -0.3 | 4.0 | 4.5 | 3.3 | -1.2 | 3.3 | 2.4 |
| Lithuania* | -14.7 | 1.3 | 4.0 | 4.5 | 4.2 | 1.2 | 3.5 | 4.0 |
| Russia | -7.9 | 4.0 | 5.6 | 5.2 | 11.7 | 6.9 | 9.4 | 7.7 |
| Ukraine | -14.8 | 4.2 | 4.7 | 4.5 | 15.8 | 9.4 | 9.2 | 9.0 |
Sources: National statistical agencies, SEB Economic Research
* Harmonised consumer price index
Ulf Grunnesjö
Head of Investor Relations Phone: +46 8 763 8501 Mobile: +46 70 763 8501 Email: [email protected]
Thomas Bengtson
Debt Investor Relations and Treasury Officer Phone: +46 8-763 8150 Mobile: +46 70-763 8150 Email: [email protected]
Per Andersson
Investor Relations Officer Meeting requests and road shows Phone: +46 8 763 8171 Mobile: +46 70 667 7481 Email: [email protected]
Viveka Hirdman–Ryrberg
Head of Communications Phone: +46 8 22 19 00 Mobile: +46 70 550 35 00 Email: [email protected]
Ola Kallemur
Head of Media Relations Phone: +46 8 763 9947 Mobile: +46 763 975466 Email: [email protected]
Financial calendar
Date Event 17 May Nordic Outlook 4 July – 13 July Silent period 30 August Nordic Outlook 10 October – 26 October Silent period 22 November Nordic Outlook
14 July Interim Report January-June 2011 5 October Eastern European Outlook 27 October Interim Report January-September 2011
Definitions
Return on Equity
Net profit attributable to equity holders for the year as a percentage of average shareholders equity.
Return on business equity
Operating profit reduced by a standard tax rate per division, as a percentage of business equity.
Return on total assets
Net profit as a percentage of average assets.
Return on risk-weighted assets
Net profit as a percentage of average risk-weighted assets.
Cost/Income-ratio
Total operating expenses as a percentage of total operating income.
Basic earnings per share
Net profit attributable to equity holders for the year as a percentage of the average number of shares.
Diluted earnings per share
Net profit attributable to equity holders for the year divided by the average diluted number of shares.
Adjusted shareholders' equity per share
Shareholders' equity plus the equity portion of any surplus values in the holdings of interest-bearing securities and surplus value in life insurance operations as a percentage of the number of shares at year-end.
Net worth per share
Shareholders' equity plus the equity portion of any surplus values in the holdings of interest-bearing securities and surplus value in life insurance operations as a percentage of the number of shares.
Risk-weighted assets
Total assets and off balance sheet items, weighted in accordance with capital adequacy regulation for credit risk. It is customary to also express regulatory capital requirements for market and operational risk as risk-weighted assets, yielding a total RWA number for these three risk categories. Defined only for the Financial Group of Undertakings which excludes insurance entities.
Tier 1 capital
Shareholders' equity excluding proposed dividend, deferred tax assets, intangible assets (e.g. bank-related goodwill) and certain other adjustments. Tier 1 capital can also include qualifying forms of subordinated loans (Tier 1 capital contribution)
Tier 2 capital
Mainly subordinated loans not qualifying as Tier 1 capital contribution. Dated loans give a maturity-dependent reduction, and some further adjustments are made.
Capital base
The sum of Tier 1 and Tier 2 capital. Deductions should be made for investments in insurance companies and pension surplus values.
Tier 1 capital ratio
Tier 1 capital as a percentage of risk-weighted assets.
Total capital ratio
The capital base as a percentage of risk-weighted assets.
Credit loss level
Net credit losses as a percentage of the opening balance of loans to the public, loans to credit institutions and loan guarantees less specific, collective and off balance sheet reserves.
Gross level of impaired loans
Individually assessed impaired loans, gross, as a percentage of loans to the public and loans to credit institutions before reduction of reserves.
Net level of impaired loans
Individually assessed impaired loans, net (less specific reserves) as a percentage of net loans to the public and loans to credit institutions less specific reserves and collective reserves.
Specific reserve ratio for individually assessed impaired loans
Specific reserves as a percentage of individually assessed impaired loans.
Total reserve ratio for individually assessed impaired loans
Total reserves (specific reserves and collective reserves for individually assessed loans) as a percentage of individually assessed impaired loans.
Reserve ratio for portfolio assessed loans
Collective reserves for portfolio assessed loans as a percentage of portfolio assessed loans past due more than 60 days or restructured.
Non-Performing-Loans
Loans deemed to cause probable credit losses including individually assessed impaired loans, portfolio assessed loans past due more than 60 days and restructured portfolio assessed loans.
NPL coverage ratio
Total reserves (specific, collective and off balance sheet reserves) as a percentage of Non-performing loans.
NPL % of lending
Non-performing loans as a percentage of loans to the public and loans to credit institutions before reduction of reserves.
Credit portfolio
Total credit exposure comprises the Group's credit portfolio (loans, leasing agreements, contingent liabilities and counterparty risks arising from derivatives contracts), repos and debt instruments. Exposures are presented before reserves. Derivatives and repos are reported after netting agreements but before collateral arrangements and includes add-ons for potential future exposure. Debt instruments comprise all interest-bearing instruments held for investment, treasury and client trading purposes, and includes instruments reclassified as Loans & Receivables. Debt instruments in the insurance division are excluded.