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SEB — Interim / Quarterly Report 2010
Feb 4, 2011
2966_10-k_2011-02-04_2e956ea3-a95c-4b06-a120-71aba6c3eabf.pdf
Interim / Quarterly Report
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Annual Accounts 2010
STOCKHOLM 4 FEBRUARY 2011
For comparative purposes, the Group's income statement has been restated as continuing and discontinued operations, reflecting the divestment of SEB's German retail operations.
2010 – operating profit SEK 11.1bn (4.4)
Continuing operations: net profit SEK 8.6bn (1.9) – earnings per share SEK 3.88 (0.95), RoE 8.7 per cent (1.9) Including discontinued operations: net profit SEK 6.8bn (1.2) – earnings per share SEK 3.07 (0.58), RoE 6.8 per cent (1.2)
- Operating income decreased by 11 per cent. Net interest income decreased by 11 per cent and Net fee and commission income increased by 7 per cent. Operating expenses decreased by 5 per cent.
- Provisions for credit losses were SEK 1,837m (12,030) and the credit loss level 0.14 per cent (0.92).
- Business volumes recovered towards the end of the year and assets under management were at an all-time high.
- The core Tier 1 capital ratio was 12.2 per cent (11.7) and the Tier 1 capital ratio 14.2 per cent (13.9).
- The Board of Directors proposes a dividend per share of SEK 1.50 (1.00).
The fourth quarter – operating profit SEK 4.3bn (0.8)
Continuing operations: net profit SEK 3.6bn (0.4) Including discontinued operations: net profit SEK 3.5bn (0.3)
- Operating income was up by 9 per cent compared with the corresponding quarter in 2009 and up 13 per cent since the previous quarter. Operating expenses were 15 per cent higher than in the corresponding quarter of 2009 and 1 per cent down from the previous quarter.
- A net release of provisions for credit losses of SEK 419m was made.
- Return on Equity for continuing operations in the fourth quarter was 14.6 per cent (1.6).
"Our result 2010 reflects that corporate activity gained momentum towards the end of the year and that asset quality clearly improved following the Baltic stabilisation. Our position as the Relationship Bank is today stronger than before the turbulence of the last years, a merit to the long-term customer orientation which guided us in a difficult environment."
Annika Falkengren
SEB Annual Accounts 2010 N
President's comment
As we close the books on 2010, we can sum up and conclude on a long period of exceptional market conditions and severe macro-economic challenges. SEB's prioritisations and decisions have throughout this period been to safeguard longterm financial stability in order to support our customers and enhance our position as the Relationship Bank.
The outlook for the global economy ended on a more promising note than the more fragile sentiment that marked the start of the year. All through the year the Nordic countries showed resilience as did the German economy. In Sweden all previous support measures of the funding market came to an end and Riksbanken started to hike its repo rate. In the Baltic region, 2010 was marked by a clear stabilisation.
Higher operating profit
SEB ended the year with an operating profit of SEK 4.3bn and a return of equity of 14.6 per cent in the quarter. Operating income exceeded SEK 10bn as customer activity was high.
The operating profit for the full year amounted to SEK 11.1bn and return on equity reached 8.7 per cent. The main contributors to the profit increase of SEK 6.8bn were a marked improvement in the Baltic countries with a decrease in nonperforming loans and higher corporate activity on the back of a gradual return to more normalised markets.
Unique customer relationships
SEB plays a unique role in supporting businesses and institutions as a financial partner. Over the last years, SEB's customer relationships have deepened further. Since the start of the global financial crisis in the summer of 2007, SEB's corporate credit portfolio has increased by SEK 127bn, or 24 per cent.
Customers have reaffirmed our Nordic top position in several rankings as for example in Prospera's equity research survey as well as in its corporate relationship banking survey. In Sweden, SEB was named the Business Bank of the year. Servicing more than 166,000 corporate customers, SEB strengthened its position in the SME-segment from a market share of 10 to 11 per cent. With a more positive corporate sentiment, M&A activity increased in the fourth quarter and in 2010, SEB was the number one M&A house in Sweden and number 2 in the Nordic region in terms of number of transactions.
economic challenges. Assets under management at all time high
Our savings business has a market leading unit-linked insurance as well as Private banking offering as confirmed by the Global Private Banking Awards (Financial Times Group). During the year net sales increased and amounted to SEK 55bn bringing assets under management to an all time high. Customers continued to reallocate to equity based
portfolios and thus benefited from the positive equity markets.
Baltic operations back in black
With the pronounced stabilisation in the Baltic economies, SEB's reserve ratios supported net releases of SEK 1bn of provisions in the last quarters. Operating profit for all three countries turned positive both before and after credit losses.
Throughout the severe economic downturn, we maintained a proactive and conservative stance in order to safeguard financial stability, asset quality and long-term customer relations. As of mid 2009, all accounting goodwill in the Baltic operations was written off. We have strived for solutions that enabled borrowers to remain in their residential homes. We are proud that despite a difficult period for the region, SEB has been ranked as the most customer-friendly bank in Estonia and as the most respected bank in Latvia by independent observers.
Flexibility and resilience
Summing up 2010, asset quality materially improved, customer activity geared up and we strategically aligned the business mix following the divestment of German Retail. We continue to safeguard long-term stability – a hall mark for SEB and a prerequisite in the new financial landscape. This gives us the flexibility, resilience and capacity to grow our customer businesses as well as cater for the new regulatory framework in an environment that still has to address macro-
Going forward, we are confident that we have the desired platform to grow from. Our strategy remains unchanged. SEB is the Relationship Bank. Thus with full focus on our customers we will continue to build the leading corporate bank in the Nordics, grow our corporate business in Germany and offer full universal banking services in Sweden and the Baltic countries.
The Group
The comparative numbers in this report have been materially affected by the exceptional market circumstances of 2009. Exceptionally high volatility, aggressive policy rate cuts and elevated credit spreads created a situation where temporary income effects, both positive and negative materialised. Large GDP falls, in particular in the Baltic region, also created a large increase of impaired loans and impairment of acquisition goodwill related to Eastern Europe.
In addition, the transaction-related costs for the divestment of SEB's German retail operations impacted profitability. The restatement of SEB's historical accounts in continuing and discontinued operations aims at increased transparency on long-term financial trends.
Fourth quarter isolated
SEB's profit before provisions for credit losses for the fourth quarter amounted to SEK 3,856m (3,844). Adjusted for oneoff items comprising capital gains, goodwill impairment and restructuring costs, profit before credit losses was up by 9 per cent compared with the corresponding quarter of 2009 and by 13 per cent from the previous quarter.
| Operative income statement | Q4 | Q3 | Q4 | ||
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % |
| Total operating income | 10 038 | 8 882 | 13 | 8 950 | 12 |
| Total operating expenses | -6 173 | -5 476 | 13 | -5 395 | 14 |
| Pre-provision operating profit | 3 865 | 3 406 | 13 | 3 555 | 9 |
| Gains less losses from tangible and intangible | |||||
| assets | 21 | - 24 | -188 | ||
| Net credit losses | 419 | 196 | 114 | -3 064 | -114 |
| Operating profit before one-off items | 4 305 | 3 602 | 20 | 467 | |
| One-offs: | |||||
| Capital gains | 270 | ||||
| Impairment of goodwill | 19 | ||||
| Restructuring costs | - 9 | - 755 | |||
| Operating profit | 4 296 | 2 847 | 51 | 756 |
Operating profit amounted to SEK 4,296m (756). Foreign exchange translation effects were negligible.
Net profit (after tax) was SEK 3,509m (284). Net profit from continuing operations rose to SEK 3,592m (423). ==
Income
Total operating income amounted to SEK 10,038m (9,220). Adjusted for capital gains, operating income rose by 12 per cent compared with the corresponding quarter of 2009 and by 13 per cent from the previous quarter.
Net interest income at SEK 4,526m (3,332) was 36 per cent higher than in the corresponding quarter of 2009 and SEK 346m or 8 per cent up from the previous quarter. The Group's positive sensitivity to changes in short-term interest rates supported net interest income. Customer-driven net interest income was flat from the corresponding quarter last year and increased by SEK 111m from the previous quarter. During the fourth quarter, contribution from lending volumes increased while lending margins decreased; deposit volumes and margins contributed positively. Net interest income from other activities, mainly comprising the bond investment
portfolio and other trading and treasury activities, increased SEK 1,184m compared with the corresponding quarter of 2009 and by SEK 234m from the previous quarter. Investments made for the purpose of managing the interest rate risk, which arose as a result of the divestment of the German retail operations, contributed SEK 150m to net interest income; SEK 50m more than the previous quarter. This temporary effect of SEK 150m will disappear in connection with the closing of the transaction.
Net fee and commission income at SEK 3,906m (3,587) rose by 9 per cent compared with the corresponding quarter of 2009 and by 15 per cent compared with the previous quarter, due to higher securities commissions as assets under management grew, as did performance fees.
Net financial income at SEK 512m (939) was affected by low market activity; however, a significant improvement in trading activities occurred towards year-end. Compared with the last quarter of 2009 and the previous quarter, net financial income was down 45 and 30 per cent respectively.
Net life insurance income decreased by 16 per cent, or SEK 152m, to SEK 780m (932), primarily due to a low result for the Danish traditional life business. In comparison with the previous quarter the decrease was 5 per cent.
Net other income at SEK 314m (430) was lower than in the last quarter of 2009. In comparison with the previous quarter, net other income rose by SEK 544m partly reflecting fluctuations from hedge accounting and more limited losses from divestments of bonds classified as Available for sale.
Expenses
Total operating expenses amounted to SEK 6,182m (5,376) including SEK 199m from write-down of systems in connection with the implementation of a new core banking system in Lithuania. Operating expenses were up by 15 per cent compared with the corresponding quarter last year as the cost for short-term incentive remuneration increased. Compared with the previous quarter, excluding costs of SEK 755m relating to the restructuring of the German continuing operations, expenses were up 13 per cent. This was mai ly due to seasonal effects as activity levels pi n cked up.
Credit losses and provisions
A net release of provisions for credit losses of SEK 419m reflected the continued improved asset quality in the Baltic countries. In the previous quarter the net release was SEK 196m and in the fourth quarter of 2009 there was a net provision of SEK 3,064m.
Individually assessed impaired loans decreased by SEK 918m to SEK 17,218m during the quarter, explained by the Baltic countries development, where these loans decreased SEK 1,005m, or 8 per cent. The Group's past due portfolio assessed loans decreased by SEK 446m during the quarter to SEK 6,534m, of which SEK 240m in the Baltic countries.
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 full year 2010
SEB's profit before provisions for credit losses for 2010 amounted to SEK 12,928m (16,377), a decrease of 21 per cent compared with 2009.
| Operative income statement | Jan - Dec | ||
|---|---|---|---|
| SEK m | 2010 | 2009 | % |
| Total operating income | 36 879 | 40 005 | -8 |
| Total operating expenses | -23 187 | -22 229 | 4 |
| Pre-provision operating profit | 13 692 | 17 776 | -23 |
| Gains less losses from tangible and intangible | |||
| assets | 14 | 4 | |
| Net credit losses | -1 837 | -12 030 | -85 |
| Operating profit before one-off items | 11 869 | 5 750 | 106 |
| One-offs: | |||
| Capital gains | 1 570 | ||
| Impairment of goodwill | -2 969 | ||
| Restructuring costs | - 764 | ||
| Operating profit | 11 105 | 4 351 | 155 |
Operating profit increased to SEK 11,105m (4,351), impacted by the material decrease in credit provisioning. The foreign exchange translation effect was negative at SEK 415m.
Net profit increased to SEK 6,798m (1,178), while net profit from continuing operations rose to SEK 8,584m (1,869).
Income
Total operating income decreased by 11 per cent to SEK 36,879m (41,575). Adjusted for capital gains in 2009, operating income was 8 per cent lower. The foreign exchange translation effect lowered income by SEK 1,538m.
Net interest income decreased by SEK 2,036m, or 11 per cent, to SEK 16,010m (18,046). Customer-driven net interest income decreased by SEK 1,609m or 11 per cent due to on average lower volumes and falling deposit margins between the years. The changes in total volume and margin contributions were negative at SEK 622m and SEK 987m, respectively. As Swedish short-term rates started to increase starting mid-2010, deposit margins improved.
The net cost for the funding actions of last year subsided as excess liquidity could be managed at better returns and credit spreads on SEB's issued securities narrowed in 2010. In addition, the higher short-term rates support net interest income. Net interest income also included a cost of SEK 300m for the Swedish stability fund charges.
Net fee and commission income increased by 7 per cent, to SEK 14,160m (13,285). The increase was primarily due to increased securities commission in the asset management and custody business. Total assets under management at SEK 1,399bn have returned to pre-financial crises levels. Commissions from payments and cards and other non-capital market related business were virtually unchanged.
Net financial income decreased by 29 per cent to SEK 3,166m (4,488), partly due to lower income from the foreign exchange business because of the lower market volatility during 2010. The decrease was partially offset by increases in the equity-related financial income. Valuation effects related to the bond investment portfolio were limited.
Net life insurance income (net of internal retrocessions from fund companies) decreased by SEK 342m, or 10 per cent, to SEK 3,255m (3,597). A complete description of Life's operations, including changes in surplus values, is found in the Fact Book.
Net other income decreased to SEK 288m (2,159). Adjusted for capital gains of SEK 1.6bn in 2009 related to buybacks of own subordinated debt, net other income decreased by SEK 301m.
Expenses
Total operating expenses amounted to SEK 23,951m (25,198). Excluding goodwill impairment charges of SEK 2,969m in the Baltic countries and Eastern Europe in 2009 and restructuring costs, total expenses rose by 4 per cent. The foreign exchange translation effect lowered costs by SEK 983m.
Staff costs increased by 2 per cent, to SEK 14,004m (13,786). Investments in the Nordic and German corporate expansion have increased the number of staff in the client organisations. The cost for short-term incentive remuneration increased to 12 (5) per cent of staff costs. Costs for long-term incentive programmes were unchanged.
The average number of employees at year-end 2010 was unchanged at about 17,300 excluding Retail Germany; including Retail Germany 19,220 (19,562) .
Other expenses rose by 8 per cent, to SEK 7,303m (6,740), mainly related to investments in the Nordic and German expansion. Depreciation costs increased by SEK 177m, adjusted for the impairment of goodwill in 2009, due to SEK 199m from write-off of systems in connection with the implementation of a new core banking system in Lithuania.
Credit losses and provisions
The Group's credit losses decreased to SEK 1,837m (12,030), leading to a credit loss level of 0.14 per cent (0.92).
In the Baltic division, total provisions for credit losses decreased to SEK 873m (9,573). The credit loss level in the Baltic countries was 0.63 per cent (5.43). During the year, the Baltic macro-economic stabilisation together with increased precision in identification of individually impaired exposures and potential recovery rates from collateral values, have supported releases of collective provisions.
Outside the Baltic countries, the credit loss level remained low throughout the year in SEB's core markets: in Sweden 0.04 (0.15), in the other Nordic countries 0.27 (0.42) and in Germany 0.13 (0.22).
Individually assessed impaired loans in the Group decreased to SEK 17,218m (21,324). This corresponded to a gross level of impaired loans of 1.26 per cent (1.39). The total reserve ratio for individually assessed impaired loans was virtually flat at 69 per cent. The corresponding level and reserve ratio in the Baltic countries were 9.33 per cent (9.39) and 66 per cent (65), respectively.
The Group's past due portfolio assessed loans (homogeneous groups) amounted to SEK 6,534m (6,937), whereof the Baltic region SEK 4,495m (4,440). In addition, SEK 502m (312) of the Baltic household loans have been
restructured, i.e. part of the interest payments have been capitalised, out of the total Baltic household mortgage lending of SEK 42.1bn, i.e. approximately one per cent.
The total non-performing loans coverage ratio for the Group was 66 per cent (65).
Tax expenses
Total tax amounted to SEK 2,521m (2,482). The total tax rate for 2010 was 23 per cent (57). The main reasons for the decrease are that the credit losses in countries with low tax rates, Estonia, Latvia and Lithuania, are decreasing and the impact of non-tax deductible goodwill impairments in 2009.
Business volumes
Business volumes were materially affected by the appreciation of the Swedish krona in 2010; which was up 12 per cent to the Euro and up 6 per cent to the US dollar. While the Group's total balance sheet of SEK 2,180bn as per 31 December represented a decrease of 6 per cent since year-end 2009, adjusted for foreign exchange translation effects, total assets were up 1 per cent. Lending to and deposits from the public dropped by 10 and 11 per cent, respectively. Adjusted for foreign exchange translation effects, lending volumes were at a trough in early summer 2010 and increased during the second half of the year.
SEB's total credit exposure decreased, to SEK 1,703bn (1,816). The decrease is primarily explained by decreased interbank volumes, partially offset by an increase in Swedish household lending. The Baltic division's lending decreased by 11 per cent during the year excluding currency effects. Corporate credit demand increased towards the end of the year and the Group's committed facilities to corporates increased by 22 per cent in 2010 on a foreign exchange adjusted basis.
SEB's net positions in fixed-income securities for investment, treasury and client trading purposes amounted to SEK 278bn (262) excluding excess liquidity investments in certificates issued by the Swedish Central Bank. Asset quality in the holdings has strengthened in 2010 following a structural shift to higher quality securities. Government bonds, covered bonds and other prime quality securities have substituted corporate bonds, structured credits and unsecured financials. The prime quality securities represented 77 (62) per cent of the holdings at year-end.
As of 31 December 2010, assets under management totalled SEK 1,399bn (1,356). Net inflow during the year was SEK 55bn (47) and change in value SEK -12bn (108). Assets under custody amounted to SEK 5,072bn (4,853).
Bond investment portfolio
As per 31 December 2010 the bond investment portfolio of Merchant Banking had decreased to SEK 48bn from SEK 90bn a year earlier, in line with the plan to reduce the holdings through amortisations and limited sales. The holdings of structured credits in this portfolio amounted to SEK 30bn (47) and the holdings of covered bonds and bonds issued by financial institutions amounted to SEK 18bn (43). 81 per cent
of the holdings are classified as Loans and Receivables.
There are no impaired assets in the portfolio. Under prevailing credit market conditions, SEB views material defaults on the holdings as unlikely and the risk for impairment charges is limited.
Market risk
During 2010 the Group's Value at Risk in the trading operations averaged SEK 305m. This means that the Group, on average, with 99 per cent probability, should not expect to lose more than this amount during a ten-day period.
The increase in Value at Risk compared with 2009 is primarily due to increased holdings of securities held for liquidity management purposes.
More details can be found in the Fact Book.
Liquidity and long-term funding
SEB's loan-to-deposit ratio was 139 per cent, excluding repos and reclassified bond portfolios (139). SEB raised the equivalent of SEK 102bn of long-term funding during 2010. On 31 December, the matched funding of net cash inflows and outflows remained at 18 months, unchanged to year-end 2009. At year-end, SEB held assets for liquidity purposes at an amount of SEK 240bn.
Capital position
SEB has maintained stable and strong capital ratios. As of year end 2010, the core Tier 1 capital ratio was 12.2 per cent (11.7), the Tier 1 capital ratio was 14.2 per cent (13.9) and the total capital ratio was 13.8 per cent (14.7). The Group's Basel II riskweighted assets (RWA) amounted to SEK 716bn (730).
Adjusting for the supervisory transitional rules during the first Basel II years, SEB reports RWA of SEK 800bn (795), a Tier 1 capital ratio of 12.8 per cent (12.8) and a total capital ratio of 12.4 per cent (13.5).
In order to improve quality of the capital base, capital management during 2010 focused on actions to increase the Tier 1 portion of the capital base. The end result, in combination with certain deductions made from total capital, was that Tier 1 capital was larger than the capital base. Capital adequacy details are found on pp 25-28.
Dividend
The Board proposes to the AGM a dividend of SEK 1.50 per Class A and Class C share respectively, which corresponds to 49 per cent pay-out ratio. The total dividend amounts to SEK 3,291m (2,193), calculated on the total number of issued shares as per 31 December 2010, including repurchased shares. The SEB share will be traded ex dividend on 25 March 2011. The proposed record date for the dividend is 29 March 2011 and dividend payments will be made on 1 April 2011.
The proposal shall be seen with reference to the improved outlook for the economic environment, the Group's earnings generation and capital situation.The Board's dividend policy is that the dividend per share shall, over a business cycle, correspond to around 40 per cent of earnings per share.
Mandates for acquisition and sale of SEB shares
The Board will seek authorisation from the shareholders at the AGM on 24 March 2011 for renewed acquisition and sale mandates related to the SEB share. The authorisation is aimed at creating possibilities for SEB's securities business to be a market maker in the SEB share, at creating efficient hedging arrangement for long-term incentive schemes and creating flexibility to manage SEB's capital structure. The authorisation would include the possibility to use acquired own shares as payment in connection with acquisitions of companies or businesses or in order to finance acquisitions of companies or businesses.
In total, some 220 million shares are involved in these mandates corresponding to the maximum 10 per cent of all shares that is allowed under Swedish company law. The authorisations will be valid until the AGM in 2012.
Detailed proposals will be published on 22 February when the notice to the AGM is published.
Rating
In 2010, Moody's changed its outlook for SEB from negative to stable and affirmed the long-term 'A1' rating. Standard & Poor's long-term rating of 'A' on SEB is stable. Fitch equally has a stable outlook for SEB's long-term rating at 'A+'. SEB targets a long-term AA rating.
Risks and uncertainties
The macro-economic environment is the major driver of risk to the Group's earnings and financial stability. In particular, it affects the asset quality and thereby the credit risk of the Group. (The credit portfolio is described in the Fact Book). The medium-term outlook for the global economy is 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 (details on market risks are described in the Fact Book). 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.
Subsequent event: Divestment of German Retail
The divestment of SEB's German retail banking business to Banco Santander, as announced on 12 July, was finalised on 31 January 2011.
As communicated in July, the Group has restated its accounts to reflect the divestment. Restructuring charges of SEK 764m (EUR 80m for adjusting of infrastructure) in the continuing operations and transaction-related costs of SEK 1,240m (EUR 130m for advisory costs, IT adjustments and physical separation including redundancy) in the discontinued operations were recorded at the time of the signing of the agreement in the third quarter.
The actual financial effects at the finalisation of the
The divestment increased the Group's core Tier 1 capital ratio with 60 basis points. This is the net effect of the lower risk weighted assets and the EUR 110m effect on the result. There will also be an interest expense at an estimated EUR 65m impacting the result in 2011.
Stockholm, 4 February 2011
Annika Falkengren
President and Chief Executive Officer
The President declares that these Annual Accounts for 2010 provide a fair overview of the Parent Company's and Group's operations, their financial position and results and describe material risks and uncertainties facing the Parent Company and other companies in the Group.
Press conference and web cast
The press conference at 09.30 (CET) on 4 February 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 (CET) on 4 February 2011 with CEO Annika Falkengren and CFO Jan Erik Back can be accessed by telephone, +44(0)20 7162 0025. Please quote conference id: 885528, 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
| 4 February | Annual Accounts for 2010 |
|---|---|
| 3 March | Annual Report on www.sebgroup.com |
| 24 March | Annual General Meeting |
| 3 May | Interim Report January-March 2011 |
| 14 July | Interim Report January-June 2011 |
| 27 October | Interim Report January-September 2011 |
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 to this 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.
In July 2010 an agreement was signed to sell the retail banking business in Germany. The discontinued operations are reported according to IFRS 5. Assets (or disposal groups) are classified held for sale at the time when a non-current asset or group of assets (disposal group) are available for immediate sale in its present condition and its sale is deemed to be highly probable. At the time of the classification, a valuation of the asset or disposal group is made at the lower of its carrying amount and fair value, less costs to sell. Any subsequent impairment losses or revaluations are recognised directly in profit or loss. No gains are recognised in excess of accumulated impairment losses of the asset recognised previously. From the time of classification, no depreciation is
SEB's Fact Book is available on www.sebgroup.com/ir.
Further information is available from
Jan Erik Back, Chief Financial Officer, Tel: +46 8 22 19 00 Ulf Grunnesjö, Head of Investor Relations Tel. +46 8 763 85 01, +46 70 763 85 01 Annika Halldin, Senior Financial Information Officer Tel. +46 8 763 85 60, +46 70 379 00 60 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
made for property and equipment or intangible assets originating from discontinued operations. Assets and liabilities held for sale are reported separately in the balance sheet until they are sold. Profit and loss from discontinued operations are reported net on a separate line in the income statement. The comparative figures for the previous year in the income statement and related notes for the previous year have been adjusted as if the discontinued operations had never been part of the continuing operations.
As from 2010 two changes have been introduced in the accounting standards which potentially have a material impact on the financial reports. The changes in IFRS 3 Business Combinations (effective for annual periods beginning after July 2009) will change how business combinations are accounted for in respect of transaction costs, possible contingent considerations and business combinations achieved in stages. The changes will not have an impact on previous business combinations but are applied by the Group to business combinations for which acquisition date is on or after 1 January 2010. In addition, there have been amendments made to IAS 27 Consolidated and Separate Financial Statements that principally affect the accounting for transactions or events that result in a change in the Group's interests in its subsidiaries.
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 2009 Annual Report.
The SEB Group
Income statement – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 4 526 | 4 180 | 8 | 3 332 | 36 | 16 010 | 18 046 | -11 |
| Net fee and commission income | 3 906 | 3 387 | 15 | 3 587 | 9 | 14 160 | 13 285 | 7 |
| Net financial income | 512 | 727 | -30 | 939 | -45 | 3 166 | 4 488 | -29 |
| Net life insurance income | 780 | 818 | -5 | 932 | -16 | 3 255 | 3 597 | -10 |
| Net other income | 314 | - 230 | 430 | -27 | 288 | 2 159 | -87 | |
| Total operating income | 10 038 | 8 882 | 13 | 9 220 | 9 | 36 879 | 41 575 | -11 |
| Staff costs | -3 558 | -3 392 | 5 | -2 785 | 28 | -14 004 | -13 786 | 2 |
| Other expenses | -1 965 | -1 679 | 17 | -2 128 | -8 | -7 303 | -6 740 | 8 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 650 | - 405 | 60 | - 463 | 40 | -1 880 | -4 672 | -60 |
| Restructuring costs | - 9 | - 755 | -99 | - 764 | ||||
| Total operating expenses | -6 182 | -6 231 | -1 | -5 376 | 15 | -23 951 | -25 198 | -5 |
| Profit before credit losses | 3 856 | 2 651 | 45 | 3 844 | 0 | 12 928 | 16 377 | -21 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | 21 | - 24 | 14 | 4 | ||||
| Net credit losses | 419 | 196 | 114 | -3 064 | -114 | -1 837 | -12 030 | -85 |
| Operating profit | 4 296 | 2 847 | 51 | 756 | 11 105 | 4 351 | 155 | |
| Income tax expense | - 704 | - 765 | -8 | - 333 | 111 | -2 521 | -2 482 | 2 |
| Net profit from continuing operations | 3 592 | 2 082 | 73 | 423 | 8 584 | 1 869 | ||
| Discontinued operations | - 83 | -1 486 | -94 | - 139 | -40 | -1 786 | - 691 | 158 |
| Net profit | 3 509 | 596 | 284 | 6 798 | 1 178 | |||
| Attributable to minority interests | 6 | 15 | -60 | 27 | -78 | 53 | 64 | -17 |
| Attributable to equity holders | 3 503 | 581 | 257 | 6 745 | 1 114 | |||
| Continuing operations | ||||||||
| Basic earnings per share, SEK | 1.64 | 0.94 | 0.18 | 3.88 | 0.95 | |||
| Diluted earnings per share, SEK | 1.62 | 0.94 | 0.18 | 3.87 | 0.94 | |||
| Total operations | ||||||||
| Basic earnings per share, SEK | 1.60 | 0.26 | 0.12 | 3.07 | 0.58 | |||
| Diluted earnings per share, SEK | 1.58 | 0.26 | 0.12 | 3.06 | 0.58 |
Statement of comprehensive income
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net profit | 3 509 | 596 | 284 | 6 798 | 1 178 | |||
| Available-for-sale financial assets | - 377 | 163 | 214 | - 629 | 1 966 | -132 | ||
| Cash flow hedges | - 731 | - 122 | - 18 | -1 215 | - 974 | 25 | ||
| Translation of foreign operations | 215 | - 571 | -138 | 244 | -12 | - 733 | - 187 | |
| Deferred taxes on translation effects | - 186 | - 496 | -63 | - 70 | 166 | -1 574 | - 807 | 95 |
| Other | - 61 | 92 | -166 | 28 | 100 | 58 | 72 | |
| Other comprehensive income (net of tax) | - 1 140 | - 934 | 22 | 398 | - 4 051 | 56 | ||
| Total comprehensive income | 2 369 | - 338 | 682 | 2 747 | 1 234 | 123 | ||
| Attributable to minority interests | - 3 | 4 | -175 | 16 | -119 | 14 | 60 | -77 |
| Attributable to equity holders | 2 372 | - 342 | 666 | 2 733 | 1 174 | 133 |
Key figures – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||
|---|---|---|---|---|---|---|
| 2010 | 2010 | 2009 | 2010 | 2009 | ||
| Continuing operations | ||||||
| Return on equity, continuing operations, % | 14.62 | 8.48 | 1.60 | 8.65 | 1.89 | |
| Basic earnings per share, continuing operations, SEK | 1.64 | 0.94 | 0.18 | 3.88 | 0.95 | |
| Diluted earnings per share, continuing operations, SEK | 1.62 | 0.94 | 0.18 | 3.87 | 0.94 | |
| Cost/income ratio, continuing operations | 0.62 | 0.70 | 0.58 | 0.65 | 0.61 | |
| Number of full time equivalents, continuing operations* | 17,347 | 17,133 | 17,331 | 17,104 | 17,970 | |
| Loans to deposits ratio, excl repos and reclassified bonds, % | 139 | 138 | 139 | 139 | 139 | |
| Total operations | ||||||
| Return on equity, % | 14.28 | 2.38 | 1.04 | 6.84 | 1.17 | |
| Return on total assets, % | 0.63 | 0.10 | 0.05 | 0.30 | 0.05 | |
| Return on risk-weighted assets, % | 1.73 | 0.28 | 0.13 | 0.83 | 0.13 | |
| Basic earnings per share, SEK | 1.60 | 0.26 | 0.12 | 3.07 | 0.58 | |
| Weighted average number of shares, millions** | 2,194 | 2,194 | 2,194 | 2,194 | 1,906 | |
| Diluted earnings per share, SEK | 1.58 | 0.26 | 0.12 | 3.06 | 0.58 | |
| Weighted average number of diluted shares, millions*** | 2,212 | 2,207 | 2,201 | 2,202 | 1,911 | |
| Net worth per share, SEK | 50.34 | 49.02 | 50.17 | 50.34 | 50.17 | |
| Average equity, SEK, billion | 98.4 | 98.4 | 99.3 | 98.9 | 95.4 | |
| Credit loss level, % | -0.07 | -0.02 | 0.93 | 0.14 | 0.92 | |
| Total reserve ratio individually assessed impaired loans, % | 69.2 | 73.2 | 69.5 | 69.2 | 69.5 | |
| Net level of impaired loans, % | 0.62 | 0.62 | 0.72 | 0.62 | 0.72 | |
| Gross level of impaired loans, % | 1.26 | 1.29 | 1.39 | 1.26 | 1.39 | |
| Basel II (Legal reporting with transitional floor) :**** | ||||||
| Risk-weighted assets, SEK billion | 800 | 797 | 795 | 800 | 795 | |
| Core Tier 1 capital ratio, % | 10.93 | 10.80 | 10.74 | 10.93 | 10.74 | |
| Tier 1 capital ratio, % | 12.75 | 12.65 | 12.78 | 12.75 | 12.78 | |
| Total capital ratio, % | 12.40 | 12.73 | 13.50 | 12.40 | 13.50 | |
| Basel II (without transitional floor): | ||||||
| Risk-weighted assets, SEK billion | 716 | 711 | 730 | 716 | 730 | |
| Core Tier 1 capital ratio, % | 12.20 | 12.11 | 11.69 | 12.20 | 11.69 | |
| Tier 1 capital ratio, % | 14.24 | 14.18 | 13.91 | 14.24 | 13.91 | |
| Total capital ratio, % | 13.85 | 14.27 | 14.69 | 13.85 | 14.69 | |
| Basel I: | ||||||
| Risk-weighted assets, SEK billion | 998 | 984 | 1 003 | 998 | 1 003 | |
| Core Tier 1 capital ratio, % | 8.75 | 8.75 | 8.51 | 8.75 | 8.51 | |
| Tier 1 capital ratio, % | 10.22 | 10.25 | 10.13 | 10.22 | 10.13 | |
| Total capital ratio, % | 9.93 | 10.31 | 10.70 | 9.93 | 10.70 | |
| Number of full time equivalents* | 19,220 | 19,150 | 19,562 | 19,125 | 20,233 | |
| Assets under custody, SEK billion | 5,072 | 4,879 | 4,853 | 5,072 | 4,853 | |
| Assets under management, SEK billion | 1,399 | 1,343 | 1,356 | 1,399 | 1,356 | |
| Discontinued operations | ||||||
| Basic earnings per share, discontinued operations, SEK | -0.04 | -0.68 | -0.06 | -0.81 | -0.36 | |
| Diluted earnings per share, discontinued operations, SEK | -0.04 | -0.67 | -0.06 | -0.81 | -0.36 |
* 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 810,155 Class A shares for the employee stock option programme at year end 2009. During 2010 SEB has repurchased 600,000 shares and 1,142,795 have been sold as employee stock options have been exercised. Thus, as at 31 December 2010 SEB owned 267,360 Class A-shares with a market value of SEK 15m.
*** 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
| Q4 | Q3 | Q2 | Q1 | Q4 | |
|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2009 |
| Net interest income | 4 526 | 4 180 | 3 762 | 3 542 | 3 332 |
| Net fee and commission income | 3 906 | 3 387 | 3 673 | 3 194 | 3 587 |
| Net financial income | 512 | 727 | 977 | 950 | 939 |
| Net life insurance income | 780 | 818 | 778 | 879 | 932 |
| Net other income | 314 | - 230 | 34 | 170 | 430 |
| Total operating income | 10 038 | 8 882 | 9 224 | 8 735 | 9 220 |
| Staff costs | -3 558 | -3 392 | -3 616 | -3 438 | -2 785 |
| Other expenses | -1 965 | -1 679 | -1 875 | -1 784 | -2 128 |
| Depreciation, amortisation and impairment of tangible and | |||||
| intangible assets | - 650 | - 405 | - 416 | - 409 | - 463 |
| Restructuring costs | - 9 | - 755 | |||
| Total operating expenses | -6 182 | -6 231 | -5 907 | -5 631 | -5 376 |
| Profit before credit losses | 3 856 | 2 651 | 3 317 | 3 104 | 3 844 |
| Gains less losses on disposals of tangible and intangible | |||||
| assets | 21 | - 3 | - 4 | - 24 | |
| Net credit losses | 419 | 196 | - 639 | -1 813 | -3 064 |
| Operating profit | 4 296 | 2 847 | 2 675 | 1 287 | 756 |
| Income tax expense | - 704 | - 765 | - 600 | - 452 | - 333 |
| Net profit from continuing operations | 3 592 | 2 082 | 2 075 | 835 | 423 |
| Discontinued operations | - 83 | -1 486 | - 71 | - 146 | - 139 |
| Net profit | 3 509 | 596 | 2 004 | 689 | 284 |
| Attributable to minority interests | 6 | 15 | 17 | 15 | 27 |
| Attributable to equity holders | 3 503 | 581 | 1 987 | 674 | 257 |
| Continuing operations | |||||
| Basic earnings per share, SEK | 1.64 | 0.94 | 0.94 | 0.37 | 0.18 |
| Diluted earnings per share, SEK | 1.62 | 0.94 | 0.94 | 0.37 | 0.18 |
| Total operations | |||||
| Basic earnings per share, SEK | 1.60 | 0.26 | 0.91 | 0.31 | 0.12 |
| Diluted earnings per share, SEK | 1.58 | 0.26 | 0.90 | 0.31 | 0.12 |
Income statement, by Division – SEB Group
| Merchant | Retail | Wealth | Other incl | ||||
|---|---|---|---|---|---|---|---|
| Jan-Dec 2010, SEK m | Banking | Banking | Management | Life* | Baltic | eliminations | SEB Group |
| Net interest income | 8 123 | 5 008 | 485 | - 11 | 1 869 | 536 | 16 010 |
| Net fee and commission income | 5 308 | 3 241 | 3 752 | 877 | 982 | 14 160 | |
| Net financial income | 3 745 | 273 | 89 | 63 | -1 004 | 3 166 | |
| Net life insurance income | 4 550 | -1 295 | 3 255 | ||||
| Net other income | - 46 | 47 | 58 | 37 | 192 | 288 | |
| Total operating income | 17 130 | 8 569 | 4 384 | 4 539 | 2 846 | - 589 | 36 879 |
| Staff costs | -4 091 | -2 636 | -1 319 | -1 123 | - 640 | -4 195 | -14 004 |
| Other expenses | -4 205 | -2 821 | -1 333 | - 524 | -1 158 | 2 738 | -7 303 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 169 | - 84 | - 84 | - 690 | - 291 | - 562 | -1 880 |
| Restructuring costs | - 764 | - 764 | |||||
| Total operating expenses | -8 465 | -5 541 | -2 736 | -2 337 | -2 089 | -2 783 | -23 951 |
| Profit before credit losses | 8 665 | 3 028 | 1 648 | 2 202 | 757 | -3 372 | 12 928 |
| Gains less losses on disposals of tangible and | |||||||
| intangible assets | 28 | - 1 | - 5 | - 8 | 14 | ||
| Net credit losses | - 195 | - 543 | 3 | - 873 | - 229 | -1 837 | |
| Operating profit | 8 498 | 2 484 | 1 651 | 2 202 | - 121 | -3 609 | 11 105 |
* Business result in Life amounted to SEK 3,367m (3,015), of which change in surplus values was net SEK 1,165m (900).
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
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 2 133 | 2 012 | 6 | 1 978 | 8 | 8 123 | 9 982 | - 19 |
| Net fee and commission income | 1 515 | 1 290 | 17 | 1 531 | - 1 | 5 308 | 5 647 | - 6 |
| Net financial income | 655 | 753 | - 13 | 712 | - 8 | 3 745 | 4 377 | - 14 |
| Net other income | 66 | - 159 | - 142 | - 101 | - 165 | - 46 | 46 | |
| Total operating income | 4 369 | 3 896 | 12 | 4 120 | 6 | 17 130 | 20 052 | - 15 |
| Staff costs | -1 114 | - 875 | 27 | - 556 | 100 | -4 091 | -3 529 | 16 |
| Other expenses | -1 120 | - 954 | 17 | -1 025 | 9 | -4 205 | -4 134 | 2 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 62 | - 41 | 51 | - 61 | 2 | - 169 | - 155 | 9 |
| Total operating expenses | -2 296 | -1 870 | 23 | -1 642 | 40 | -8 465 | -7 818 | 8 |
| Profit before credit losses | 2 073 | 2 026 | 2 | 2 478 | - 16 | 8 665 | 12 234 | - 29 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | 29 | - 1 | - 1 | 28 | - 1 | |||
| Net credit losses | - 99 | - 23 | - 52 | 90 | - 195 | - 805 | - 76 | |
| Operating profit | 2 003 | 2 002 | 2 425 | - 17 | 8 498 | 11 428 | - 26 | |
| Cost/Income ratio | 0,53 | 0,48 | 0,40 | 0,49 | 0,39 | |||
| Business equity, SEK bn | 27,5 | 27,7 | 35,1 | 28,2 | 35,1 | |||
| Return on equity, % | 21,0 | 20,8 | 19,9 | 21,7 | 23,4 | |||
| Number of full time equivalents | 2 591 | 2 571 | 2 539 | 2 548 | 2 630 |
- Gradual improvement of income and profit during the year
- Strong asset quality and lower credit losses
- Leadership in investment banking and other core business segments confirmed
Comments on 2010
A gradual improvement in market sentiment and customer activity, further supported by higher interest rates, fuelled income in the fourth quarter of 2010. SEB continued as an active partner, supporting clients financially and with advice in periods of market uncertainty. As confirmed by the latest customer surveys, the enhanced relationships formed during this period have provided a strong platform for growth across the Nordic region and Germany.
Operating income for the full year decreased compared with 2009 reflecting the return of a more normal market environment. Operating expenses for 2010 were up 8 per cent compared with 2009 and were mainly related to the growth outside Sweden. Operating profit amounted to SEK 8,498m, a decrease year-on-year. Asset quality remained strong.
M&A activity increased in 2010 and accelerated towards year-end. SEB Enskilda confirmed the strong franchise throughout the Nordic region by advising e.g. Assa Abloy, Aalborg Industries, Hexagon, Intrum Justitia and TDC, in their successful transactions during the year. Corporate Banking finished 2010 with a solid fourth quarter, especially within Structured Finance. The higher M&A activity had a positive
effect on the demand for corporate borrowing combined with an increasing need for refinancing of existing facilities, and further supported by inflow of new customers. Net interest income grew in the second half of the year following higher activity levels and was particularly visible in Corporate Banking and Global Transaction Services. At year-end, assets under custody were SEK 5,072bn (4,853 at year-end 2009).
Corporate bond issuance almost came back to pre-crisis levels towards the end of 2010, and SEB was the leading arranger of Scandinavian domestic bonds in 2010. Income generation in Trading and Capital Markets, notably within foreign exchange and capital markets proved resilient during the year. Despite improved sentiment, stock market volumes were cyclically low throughout 2010 and equities income was relatively weak. Continued leadership in this area was confirmed by the recent Prospera survey in which Nordic institutions again ranked SEB Enskilda as the number one Equity house in the region.
Growth investments in the other Nordic countries and in Germany started in 2010 and will accelerate further.
Retail Banking
The Retail Banking division consists of two business areas - Sweden and Card.
Income statement
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 1 332 | 1 263 | 5 | 1 278 | 4 | 5 008 | 5 424 | - 8 |
| Net fee and commission income | 849 | 774 | 10 | 862 | - 2 | 3 241 | 3 254 | 0 |
| Net financial income | 74 | 58 | 28 | 84 | - 12 | 273 | 292 | - 7 |
| Net other income | 12 | 14 | - 14 | 18 | - 33 | 47 | 64 | - 27 |
| Total operating income | 2 267 | 2 109 | 7 | 2 242 | 1 | 8 569 | 9 034 | - 5 |
| Staff costs | - 643 | - 683 | - 6 | - 571 | 13 | -2 636 | -2 542 | 4 |
| Other expenses | - 789 | - 660 | 20 | - 665 | 19 | -2 821 | -2 668 | 6 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 21 | - 21 | 0 | - 22 | - 5 | - 84 | - 93 | - 10 |
| Total operating expenses | -1 453 | -1 364 | 7 | -1 258 | 16 | -5 541 | -5 303 | 4 |
| Profit before credit losses | 814 | 745 | 9 | 984 | - 17 | 3 028 | 3 731 | - 19 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | - 1 | - 100 | - 1 | |||||
| Net credit losses | - 144 | - 56 | 157 | - 223 | - 35 | - 543 | - 840 | - 35 |
| Operating profit | 670 | 688 | - 3 | 761 | - 12 | 2 484 | 2 891 | - 14 |
| Cost/Income ratio | 0,64 | 0,65 | 0,56 | 0,65 | 0,59 | |||
| Business equity, SEK bn | 9,8 | 9,8 | 10,8 | 9,7 | 10,8 | |||
| Return on equity, % | 20,3 | 20,9 | 20,9 | 18,9 | 19,8 | |||
| Number of full time equivalents | 3 437 | 3 420 | 3 313 | 3 395 | 3 385 |
- Recovery of deposit margins support net interest income
- Increased corporate lending and deposit volumes
- Continued Nordic corporate card leadership
Comments on 2010
2010 represented a year of stabilisation. Business activity was high and the underlying development was positive. Operating profit for 2010 decreased to SEK 2,484m (2,891), mostly related to the decrease in net interest income.
Net interest income in 2010 decreased to SEK 5,008m (5,424) as short-term interest rates remained low during the major part of the year and put pressure on deposit margins. Lending margins as well as loans and deposit volumes increased during the year. Provisions for credit losses decreased to SEK 543m (840). Annual operating expenses grew by 4 per cent, following recruitment of corporate advisors in the branch-office network. Investments were also made in mobile- and internetbanking aiming at improving core banking services to enhance customer service levels.
Retail Sweden's operating profit for 2010 reached SEK 1,501m (1,878). Household mortgage volumes grew in line with the market and reached SEK 265bn (241), but growth subsided towards year-end and credit policy has been tightened in 2010. Household mortgage margins, measured towards the funding cost including a liquidity premium which SEB is the only Swedish bank to publish, were stable. 2010
Retail Germany is not included in the Retail Banking division in this report since it has been divested. The divisional figures have been restated in order to make comparisons possible.
saw strong inflow of deposits which increased by SEK 17bn to a total of SEK 175bn.
In order to develop long and close relationships with customers and becoming their preferred business partner, the client interface has been strengthened and packaged solutions including insurance, banking and advisory services created.
SEB strengthened its position in the corporate market as reflected in SEB's ranking as the Swedish business bank of the year 2010 by Finansbarometern and by increased corporate lending by 18 per cent. In the small and medium-sized enterprise market, the market share rose from 10 to 11 per cent. Average corporate lending margins increased during the year.
The Card business operating profit amounted to SEK 983m (1,012), even though the travel and co-branding business were negatively affected by the volcanic ash clouds during the spring. The trend of decreasing average purchase amounts continued which put further pressure on process and resource efficiency.
Wealth Management
The Wealth Management division has two business areas – Private Banking and Institutional Clients.
Income statement
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 136 | 118 | 15 | 116 | 17 | 485 | 598 | - 19 |
| Net fee and commission income | 1 115 | 830 | 34 | 853 | 31 | 3 752 | 2 955 | 27 |
| Net financial income | 30 | 17 | 76 | 23 | 30 | 89 | 76 | 17 |
| Net other income | 4 | 7 | - 43 | 3 | 33 | 58 | 17 | |
| Total operating income | 1 285 | 972 | 32 | 995 | 29 | 4 384 | 3 646 | 20 |
| Staff costs | - 350 | - 311 | 13 | - 250 | 40 | -1 319 | -1 229 | 7 |
| Other expenses | - 372 | - 320 | 16 | - 310 | 20 | -1 333 | -1 160 | 15 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 23 | - 20 | 15 | - 24 | - 4 | - 84 | - 116 | - 28 |
| Total operating expenses | - 745 | - 651 | 14 | - 584 | 28 | -2 736 | -2 505 | 9 |
| Profit before credit losses | 540 | 321 | 68 | 411 | 31 | 1 648 | 1 141 | 44 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | - 1 | - 100 | 29 | - 100 | ||||
| Net credit losses | 7 | - 1 | - 8 | - 188 | 3 | - 28 | - 111 | |
| Operating profit | 547 | 320 | 71 | 402 | 36 | 1 651 | 1 142 | 45 |
| Cost/Income ratio | 0,58 | 0,67 | 0,59 | 0,62 | 0,69 | |||
| Business equity, SEK bn | 5,3 | 5,2 | 5,5 | 5,3 | 5,5 | |||
| Return on equity, % | 29,8 | 17,6 | 21,1 | 22,5 | 14,9 | |||
| Number of full time equivalents | 1 030 | 996 | 1 000 | 986 | 1 016 |
- Continued growth of assets under management
- High net sales with many new customers and mandates
- Strong demand for broader investment solutions and a holistic client offering
Comments on 2010
With a strong focus on enhancing the client experience, customer activity within both Private Banking and Institutional Clients has been high during 2010. Net sales have increased during 2010 for Private Banking, to SEK 26bn (17), and remained on a high level for Institutional Clients at SEK 31bn (31)
SEB's holistic client offering to private individuals and entrepreneurs has been developed further. SEB's Family Office has broken new ground with an improved adapted investment and accounting process. A new application for iPhone and iPad containing stock price, equity research and news has been launched. Customers were given the opportunity to invest in a number of SEB index products as well as other third-party products as complement to SEB's own offering. The international offering has been further strengthened by the possibility to open an account in the Chinese currency Yuan. SEB won the prestigious Global Private Banking Awards (Financial Times Group) as the best private bank in the Nordic region.
SEB's broad offering and approach towards the institutional clients continued to gain momentum. During the year an increasing number of new mandates were included in assets under management. The expansion outside SEB's home markets continued to yield results with a volume of close to SEK 20bn. Inflows derived from a number of mutual fund product areas.
Operating income increased by 20 per cent compared with last year. Performance and transactions fees reached SEK 409m (383), mainly in the fourth quarter. Base commissions increased due to SEB's asset mix and net sales. Operating expenses were up 9 per cent from last year, mainly as a result of higher activity and investment level.
Average assets under management improved by 7 per cent compared with last year. The improvement was due to the strong net sales of SEK 54bn (41) and the market development. Brokerage income remained strong during the year at SEK 307m (310).
Life
Life consists of three business areas - SEB Trygg Liv (Sweden), SEB Pension (Denmark) and SEB Life & Pension International.
Income statement
| Q4 | Q3 | Q4 | Jan- Dec | ||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % | |
| Net interest income | - 5 | - 2 | 150 | - 1 | - 11 | - 18 | - 39 | ||
| Net life insurance income | 1 106 | 1 143 | - 3 | 1 145 | - 3 | 4 550 | 4 443 | 2 | |
| Total operating income | 1 101 | 1 141 | - 4 | 1 144 | - 4 | 4 539 | 4 425 | 3 | |
| Staff costs | - 278 | - 276 | 1 | - 263 | 6 | -1 123 | -1 107 | 1 | |
| Other expenses | - 125 | - 133 | - 6 | - 144 | - 13 | - 524 | - 536 | - 2 | |
| Depreciation, amortisation and impairment of | |||||||||
| tangible and intangible assets | - 176 | - 169 | 4 | - 167 | 5 | - 690 | - 667 | 3 | |
| Total operating expenses | - 579 | - 578 | 0 | - 574 | 1 | -2 337 | -2 310 | 1 | |
| Operating profit | 522 | 563 | - 7 | 570 | - 8 | 2 202 | 2 115 | 4 | |
| Change in surplus values, net | 345 | 400 | - 14 | 170 | 103 | 1 165 | 900 | 29 | |
| Business result | 867 | 963 | - 10 | 740 | 17 | 3 367 | 3 015 | 12 | |
| Cost/Income ratio | 0,53 | 0,51 | 0,50 | 0,51 | 0,52 | ||||
| Business equity, SEK bn | 6,0 | 6,0 | 6,8 | 6,0 | 6,8 | ||||
| Return on equity, % | |||||||||
| based on operating profit | 30,6 | 33,0 | 29,5 | 32,3 | 27,4 | ||||
| based on business result | 50,9 | 56,5 | 38,3 | 49,4 | 39,0 | ||||
| Number of full time equivalents | 1 226 | 1 200 | 1 173 | 1 190 | 1 191 |
Operating profit increased by 4 per cent, a further improvement on a strong 2009
- Total fund value increased by 15 per cent during the year
- High premium inflow confirms customer confidence
Comments on 2010
Several customer activities were launched in 2010. Improved availability at customer service centres, increased advisory service and enhanced product offerings have been in focus all in order to strengthen long-term relationships with customers.
In Sweden, increased focus on guiding and advising clients from the age of 55 and up has been well received. Furthermore, the ongoing efforts to ensure a high quality fund offering include a launch of additional Strategy funds. In Denmark, SEB Pension was ranked number one in the customer survey conducted by Aalunds.
The continued high premium inflow confirmed that the initiatives were well received by the customers. Total premium income in 2010 increased by 4 per cent in local currencies and amounted to SEK 30.5bn. Continued focus on unit-linked has led to moderate risk exposure, high capital efficiency and increased return on business equity.
Operating profit increased by 4 per cent compared with 2009. Excluding the effect of recovered guarantee provisions in traditional portfolios, income rose by 8 per cent and operating profit by 16 per cent, mainly related to higher income from unit-linked products. Recovered guarantee provisions amounted to SEK 76m compared with SEK 286m last year. The remaining guarantee provisions amounted to
SEK 29m in total. Unit-linked income continued to improve as a result of positive market trends and higher risk appetite among policyholders, selecting more advanced and equity related alternatives. The total fund value increased by 15 per cent to SEK 179bn compared with SEK 156bn in 2009. The result for other product areas also developed favourably, but the higher claims in sick and disability portfolios negatively impacted the Danish traditional life business towards yearend.
Operating expenses, excluding depreciation, were stable compared with last year. Continued improvement of the administrative efficiency supports a stable cost trend per policy. Depreciation of deferred acquisition costs increased but should be seen in the light of increased unit-linked income.
Unit-linked insurance remains the major product group, representing 85 per cent (80) of total sales. The share of corporate paid policies increased to 65 per cent (61). Sales in the Baltic countries have increased by 9 per cent compared with 2009.
Total assets under management (net assets) amounted to SEK 424bn, which was an increase of 6 per cent from a year ago.
Baltic
The Baltic division encompasses the retail and all lending operations in Estonia, Latvia and Lithuania. In the Fact Book the full Baltic geographical segmentation is reported including the operations in Merchant Banking, Wealth Management and Life.
Income statement
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 481 | 442 | 9 | 522 | - 8 | 1 869 | 2 679 | - 30 |
| Net fee and commission income | 213 | 229 | - 7 | 221 | - 4 | 877 | 934 | - 6 |
| Net financial income | - 7 | 8 | - 188 | 31 | - 123 | 63 | 126 | - 50 |
| Net other income | 10 | 21 | - 52 | 57 | - 82 | 37 | 55 | - 33 |
| Total operating income | 697 | 700 | 0 | 831 | - 16 | 2 846 | 3 794 | - 25 |
| Staff costs | - 145 | - 155 | - 6 | - 137 | 6 | - 640 | - 730 | - 12 |
| Other expenses | - 283 | - 286 | - 1 | - 464 | - 39 | -1 158 | -1 452 | - 20 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 234 | - 18 | - 21 | - 291 | -2 389 | - 88 | ||
| Total operating expenses | - 662 | - 459 | 44 | - 622 | 6 | -2 089 | -4 571 | - 54 |
| Profit before credit losses | 35 | 241 | - 85 | 209 | - 83 | 757 | - 777 | - 197 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | - 4 | - 16 | - 75 | - 5 | - 17 | - 71 | ||
| Net credit losses | 736 | 273 | 170 | -2 584 | - 128 | - 873 | -9 569 | - 91 |
| Operating profit | 767 | 514 | 49 | -2 391 | - 132 | - 121 | -10 363 | - 99 |
| Cost/Income ratio | 0,95 | 0,66 | 0,75 | 0,73 | 1,20 | |||
| Business equity, SEK bn | 11,8 | 11,8 | 11,8 | 11,8 | 11,8 | |||
| Return on equity, % | 23,4 | 15,2 | negative | negative | negative | |||
| Number of full time equivalents | 2 966 | 2 959 | 3 093 | 2 958 | 3 275 |
Baltic business back in black as of the third quarter
- Significant asset quality improvements
- Unchanged reserve ratio
Comments on 2010
The economic recovery in the Baltic region that commenced in early 2010 continued throughout the year. Although unemployment remains high throughout the region, it has started to decrease in Estonia. Estonia and Lithuania are now displaying positive GDP growth on a year-on-year basis, while the GDP in Latvia is unchanged.
As of 1 January 2011, Estonia changed its currency from the Estonian kroon to the Euro.
The focus on strengthening long-term relationships in the region continued and SEB won a host of customer awards across the Baltic countries in 2010. In Latvia and Lithuania, SEB was ranked as the best foreign exchange provider. In Estonia, SEB was voted best bank for customer satisfaction and ranked as number one for customer service in a survey of service companies across all sectors.
Operating income for the year decreased to SEK 2,846m (3,794), in part due to the strengthening of the Swedish krona during the year which decreased operating income with SEK 323m. Deposit margins also remained at low levels due to the ongoing low interest rate environment. Throughout 2010, the levels of deposit volumes and loan volumes stabilised in the three Baltic countries, and loan margins have started to increase in recent months.
Operating expenses for the year of SEK 2,089m (4,571) reflects the goodwill write-off of SEK 2.3bn in the second quarter 2009. The fourth quarter temporary increase included SEK 199m from write-off of systems in connection with the implementation of a new core banking system in Lithuania.
Operating profit for the year was SEK -121m (-10,363). The improvement was due to significantly lower provisions for credit losses, including write-backs of SEK 273m in the third quarter and SEK 736m in the fourth quarter. Non-performing loans stabilised during the year in all three countries. The total reserve ratio was stable at 66 per cent.
At the end of December, SEB's leasing portfolio amounted to SEK 11.1bn. The average recovery rate on repossessed vehicles was approximately 60 per cent.
As at 31 December 2010, SEB's real estate holding companies in the three Baltic countries had acquired assets with a total volume of SEK 399m. SEB's Baltic real estate lending amounted to SEK 22bn, of which 39 per cent was impaired as of 31 December 2010.
Result by geography 2010
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. The international nature of SEB's business is reflected in its presence in some 20 countries worldwide.
- Nordic business generated 75 per cent of operating income in 2010
- Progress of Nordic and German expansion according to plan
- Improved asset quality, especially in the Baltic countries on the back of a fast macro-economic recovery
Comments on 2010
In Sweden, which accounts for 56 per cent of SEB's operating Jan – Dec 2010 income, corporate activity in general remained subdued but started to show signs of improvement towards year-end. Even though the wealth management and life insurance activities were strong during the year the operating profit overall decreased by 11 per cent.
SEB in Denmark has combined the strong performance within investment banking with investments in corporate relationships which has resulted in new corporate clients and higher business volumes. Both Life and Wealth Management had a strong year with high client activity and the best operating profit ever in local currency.
In Finland, SEB's growth focus has been successful and the 2010 operating profit in local currency increased by 25 per cent. Merchant Banking has continued the transformation from an advanced product provider to a comprehensive, longterm core relationship bank in the Finnish market. Wealth Management increased sales, operating profit and client activity compared to last year.
In Norway, the financial markets quickly improved and risk appetite and capital resources returned. In general, business activity was lower than in 2009, but activity levels increased during the last quarter and SEB participated in a majority of the local corporate transactions.
In Estonia, Latvia and Lithuania, the operating profit has improved significantly following economic stabilisation (see Baltic division, page 16).
In Germany the last quarter of the year was very strong both within Merchant Banking - increased inflow of new clients and Wealth Management - significant transactions resulting in transaction fees and inflows. The growth strategy is paying off and the intensified corporate focus has been well received among customers. The sale of Retail Banking resulted in a decrease of the share of total operating income from 13 to 8 per cent over the year. The operating profit for the continuing operations increased by 20 per cent excluding the one time charge of SEK 764m for restructuring costs.
| Distribution by country Jan - Dec | Total operating income | Total operating expenses | Operating profit | ||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2009 | % | 2010 | 2009 | % | 2010 | 2009 | % |
| Sweden | 20 618 | 23 096 | -11 | -14 297 | -15 201 | -6 | 5 993 | 6 760 | -11 |
| Norway | 2 845 | 3 649 | -22 | -1 315 | -1 307 | 1 | 1 387 | 2 125 | -35 |
| Denmark | 3 020 | 3 136 | -4 | -1 606 | -1 543 | 4 | 1 298 | 1 412 | -8 |
| Finland | 1 272 | 1 193 | 7 | - 592 | - 574 | 3 | 664 | 592 | 12 |
| Germany* | 2 958 | 3 119 | -5 | -2 697 | -2 062 | 31 | 145 | 747 | -81 |
| Estonia | 1 187 | 1 420 | -16 | - 632 | -1 075 | -41 | 469 | - 850 | -155 |
| Latvia | 1 066 | 1 669 | -36 | - 601 | - 765 | -21 | 99 | -2 225 | -104 |
| Lithuania | 1 380 | 1 681 | -18 | -1 066 | -1 621 | -34 | - 112 | -5 207 | -98 |
| Other countries and eliminations | 2 533 | 2 612 | -3 | -1 145 | -1 050 | 9 | 1 162 | 997 | 17 |
| Total | 36 879 | 41 575 | -11 | -23 951 | -25 198 | -5 | 11 105 | 4 351 | 155 |
*Excluding centralised Treasury operations
Write-off of systems related to core banking implementation in Lithuania affected 2010 by SEK 199m. Restructuring costs in Germany amounted to SEK 764m in 2010. Goodwill impairments for holdings in Baltic countries, Russia and Ukraine affected operating expenses and profit in Sweden, Estonia and Lithuania with SEK 2.1bn, 0.3bn and 0.6bn, respectively in 2009.
The SEB Group
Net interest income – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Interest income | 11 653 | 11 744 | - 1 | 11 529 | 1 | 46 041 | 58 104 | - 21 |
| Interest expense | -7 127 | -7 564 | - 6 | -8 197 | - 13 | -30 031 | -40 058 | - 25 |
| Net interest income | 4 526 | 4 180 | 8 | 3 332 | 36 | 16 010 | 18 046 | - 11 |
Net fee and commission income – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Issue of securities | 168 | 20 | 199 | - 16 | 357 | 501 | - 29 | |
| Secondary market | 546 | 374 | 46 | 519 | 5 | 1 765 | 2 174 | - 19 |
| Custody and mutual funds | 1 920 | 1 675 | 15 | 1 560 | 23 | 7 067 | 5 656 | 25 |
| Securities commissions | 2 634 | 2 069 | 27 | 2 278 | 16 | 9 189 | 8 331 | 10 |
| Payments | 372 | 387 | - 4 | 415 | - 10 | 1 561 | 1 633 | - 4 |
| Card fees | 944 | 1 021 | - 8 | 1 068 | - 12 | 3 992 | 4 203 | - 5 |
| Payment commissions | 1 316 | 1 408 | - 7 | 1 483 | - 11 | 5 553 | 5 836 | - 5 |
| Advisory | 137 | 185 | - 26 | 215 | - 36 | 482 | 650 | - 26 |
| Lending | 462 | 440 | 5 | 351 | 32 | 1 686 | 1 393 | 21 |
| Deposits | 26 | 25 | 4 | 26 | 103 | 108 | - 5 | |
| Guarantees | 105 | 103 | 2 | 105 | 428 | 413 | 4 | |
| Derivatives | 117 | 110 | 6 | 114 | 3 | 518 | 556 | - 7 |
| Other | 178 | 179 | - 1 | 201 | - 11 | 712 | 708 | 1 |
| Other commissions | 1 025 | 1 042 | - 2 | 1 012 | 1 | 3 929 | 3 828 | 3 |
| Fee and commission income | 4 975 | 4 519 | 10 | 4 773 | 4 | 18 671 | 17 995 | 4 |
| Securities commissions | - 341 | - 288 | 18 | - 194 | 76 | -1 216 | - 844 | 44 |
| Payment commissions | - 450 | - 599 | - 25 | - 601 | - 25 | -2 245 | -2 413 | - 7 |
| Other commissions | - 278 | - 245 | 13 | - 391 | - 29 | -1 050 | -1 453 | - 28 |
| Fee and commission expense | -1 069 | -1 132 | - 6 | -1 186 | - 10 | -4 511 | -4 710 | - 4 |
| Securities commissions, net | 2 293 | 1 781 | 29 | 2 084 | 10 | 7 973 | 7 487 | 6 |
| Payment commissions, net | 866 | 809 | 7 | 882 | - 2 | 3 308 | 3 423 | - 3 |
| Other commissions, net | 747 | 797 | - 6 | 621 | 20 | 2 879 | 2 375 | 21 |
| Net fee and commission income | 3 906 | 3 387 | 15 | 3 587 | 9 | 14 160 | 13 285 | 7 |
Net financial income – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | ||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % | |
| Equity instruments and related derivatives | - 31 | 188 | -116 | 47 | - 166 | 629 | - 64 | ||
| Debt instruments and related derivatives | - 70 | 17 | 210 | 479 | 803 | -40 | |||
| Currency related | 605 | 500 | 21 | 684 | - 12 | 2 106 | 3 911 | -46 | |
| Other financial instruments | 4 | 20 | -80 | 7 | 12 | - 4 | |||
| Impairments | 4 | 2 | 100 | - 9 | - 60 | - 158 | -62 | ||
| Net financial income | 512 | 727 | -30 | 939 | - 45 | 3 166 | 4 488 | -29 |
Net credit losses – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Provisions: | ||||||||
| Net collective provisions for individually assessed | ||||||||
| loans | 782 | 407 | 92 | 580 | 665 | -1 836 | -136 | |
| Net collective provisions for portfolio assessed loans | - 13 | - 89 | -85 | - 451 | -97 | - 701 | -1 962 | -64 |
| Specific provisions | - 431 | - 338 | 28 | -2 416 | -82 | -2 405 | -6 685 | -64 |
| Reversal of specific provisions no longer required | 479 | 350 | 37 | 84 | 1 503 | 491 | ||
| Net provisions for off-balance sheet items | 16 | - 2 | - 123 | -113 | - 14 | - 224 | -94 | |
| Net provisions | 833 | 328 | 154 | -2 326 | -136 | - 952 | -10 216 | -91 |
| Write-offs: | ||||||||
| Total write-offs | - 833 | - 679 | 23 | -1 100 | -24 | -2 310 | -2 616 | -12 |
| Reversal of specific provisions utilized for write-offs | 394 | 518 | -24 | 328 | 20 | 1 315 | 688 | 91 |
| Write-offs not previously provided for | - 439 | - 161 | - 772 | - 995 | -1 928 | -48 | ||
| Recovered from previous write-offs | 25 | 29 | -14 | 34 | -26 | 110 | 114 | -4 |
| Net write-offs | - 414 | - 132 | - 738 | - 885 | -1 814 | -51 | ||
| Net credit losses | 419 | 196 | -3 064 | -1 837 | -12 030 | -85 |
Staff costs – SEB Group
| Jan - Dec | ||||
|---|---|---|---|---|
| SEK m | 2010 | 2009 | % | |
| Salaries* | -10 233 | -10 327 | -1 | |
| Short-term incentive* | -1 645 | - 795 | 107 | |
| Long-term incentive* | - 233 | - 230 | 1 | |
| Pension costs | -1 093 | -1 442 | -24 | |
| Redundancy costs* | - 135 | - 308 | -56 | |
| Other staff costs | - 665 | - 684 | -3 | |
| Staff costs | -14 004 | -13 786 | 2 | |
| Jan - Dec | |||
|---|---|---|---|
| SEK m | 2010 | 2009 | % |
| Short-term incentive (STI) to staff | -1 392 | - 624 | 123 |
| Social benefit charges on STI | - 253 | - 171 | 48 |
| Short-term incentive remuneration | -1 645 | - 795 | 107 |
| Jan - Dec | ||||
|---|---|---|---|---|
| SEK m | 2010 | 2009 | % | |
| Long-term incentive (LTI) to staff | - 182 | - 166 | 10 | |
| Social benefit charges on LTI | - 51 | - 64 | -20 | |
| Long-term incentive remuneration | - 233 | - 230 | 1 |
Balance sheet – SEB Group
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2010 | 2009 |
| Cash and cash balances with central banks | 46 488 | 36 589 |
| Loans to credit institutions | 204 188 | 331 460 |
| Loans to the public | 1 074 879 | 1 187 837 |
| Financial assets at fair value * | 617 746 | 581 641 |
| Available-for-sale financial assets * | 66 970 | 87 948 |
| Held-to-maturity investments * | 1 451 | 1 332 |
| Assets held for sale | 74 951 | 596 |
| Investments in associates | 1 022 | 995 |
| Tangible and intangible assets | 27 035 | 27 770 |
| Other assets | 65 091 | 52 059 |
| Total assets | 2 179 821 | 2 308 227 |
| Deposits from credit institutions | 212 624 | 397 433 |
| Deposits and borrowing from the public | 711 541 | 801 088 |
| Liabilities to policyholders | 263 970 | 249 009 |
| Debt securities | 530 483 | 456 043 |
| Financial liabilities at fair value | 200 690 | 191 440 |
| Liabilities held for sale | 48 339 | 165 |
| Other liabilities | 85 665 | 74 984 |
| Provisions | 1 414 | 2 033 |
| Subordinated liabilities | 25 552 | 36 363 |
| Total equity | 99 543 | 99 669 |
| Total liabilities and equity | 2 179 821 | 2 308 227 |
| * Of which bonds and other interest bearing securities including derivatives. | 416 864 | 457 209 |
A more detailed balance sheet is included in the Fact Book.
Off-balance sheet items – SEB Group
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2010 | 2009 |
| Collateral pledged for own liabilities | 231 334 | 420 302 |
| Other pledged collateral | 214 989 | 202 168 |
| Contingent liabilities | 82 048 | 84 058 |
| Commitments | 388 619 | 378 442 |
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-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-Dec 2009 | |||||||||
| Opening balance | 6 872 | 75 949 | -3 062 | 1 767 | -225 | 2 236 | 83 537 | 192 | 83 729 |
| Net profit | 1 114 | 1 114 | 64 | 1 178 | |||||
| Other comprehensive income (net of tax) | 1 966 | - 974 | -187 | -745 | 60 | - 4 | 56 | ||
| Total recognised income | 1 114 | 1 966 | - 974 | - 187 | - 745 | 1 174 | 60 | 1 234 | |
| Rights issue | 15 070 | - 397 | 14 673 | 14 673 | |||||
| Swap hedging of employee stock option programme* | 2 | 2 | 2 | ||||||
| Eliminations of repurchased shares for employee stock | |||||||||
| option programme** | 31 | 31 | 31 | ||||||
| Closing balance | 21 942 | 76 699 | -1 096 | 793 | - 412 | 1 491 | 99 417 | 252 | 99 669 |
* 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 2005–2009 16.5 million shares have been sold and another 1.1 million shares have been sold in 2010. During 2010, SEB has also repurchased 0.6 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 December 2010 SEB owned 0.3 million Class A-shares with a market value of SEK 15m.
Cash flow statement – SEB Group
| Jan - Dec | |||||
|---|---|---|---|---|---|
| SEK m | 2010 | 2009 | % | ||
| Cash flow from operating activities | - 3 472 | - 74 312 | - 95 | ||
| Cash flow from investment activities | 935 | - 5 | |||
| Cash flow from financing activities | - 23 490 | - 11 013 | 113 | ||
| Net increase in cash and cash equivalents | - 26 027 | - 85 330 | |||
| Cash and cash equivalents at the beginning of year Net increase in cash and cash equivalents |
89 673 - 26 027 |
175 147 - 85 330 |
- 49 | ||
| 1) Cash and cash equivalents at the end of period |
63 646 | 89 817 | - 29 |
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
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Reclassified, SEK m | ||||||||
| Opening balance | 95 003 | 107 004 | -11 | 131 438 | -28 | 125 339 | 107 899 | 16 |
| Reclassified | 51 770 | |||||||
| Amortisations | -3 004 | - 604 | -1 212 | 148 | -6 618 | -6 683 | -1 | |
| Securities sold | -11 164 | -3 905 | 186 | -5 768 | 94 | -25 325 | -18 180 | 39 |
| Accrued coupon | - 79 | 2 | - 59 | 34 | - 44 | 465 | -109 | |
| Exchange rate differences | -2 075 | -7 494 | -72 | 940 | -14 671 | -9 932 | 48 | |
| Closing balance* | 78 681 | 95 003 | - 17 | 125 339 | - 37 | 78 681 | 125 339 | -37 |
| * Market value | 77 138 | 93 302 | -17 | 120 635 | -36 | 77 138 | 120 635 | -36 |
| Fair value impact - if not reclassified, SEK m | ||||||||
| In Equity (AFS origin) | 112 | 588 | -81 | 1 852 | -94 | 2 901 | 2 555 | 14 |
| In Income Statements (HFT origin) | 46 | 212 | -78 | 805 | -94 | 49 | 606 | -92 |
| Total | 158 | 800 | -80 | 2 657 | -94 | 2 950 | 3 161 | -7 |
| Effect in Income Statements, SEK m* | ||||||||
| Net interest income | 232 | 524 | -56 | 400 | -42 | 1 578 | 2 974 | -47 |
| Net financial income | -1 447 | -8 834 | -84 | 2 027 | -171 | -9 060 | -5 141 | 76 |
| Other income | - 180 | - 98 | 84 | - 23 | - 282 | 50 | ||
| Total | -1 395 | -8 408 | -83 | 2 404 | -158 | -7 764 | -2 117 |
* 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 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2010 | 2009 |
| Individually assessed impaired loans | ||
| Impaired loans, past due > 60 days | 14 464 | 18 157 |
| Impaired loans, performing or past due < 60 days | 2 754 | 3 167 |
| Total individually assessed impaired loans | 17 218 | 21 324 |
| Specific reserves | - 8 883 | - 10 456 |
| for impaired loans, past due > 60 days | - 7 741 | - 9 489 |
| for impaired loans, performing or past due < 60 days | - 1 142 | - 967 |
| Collective reserves | - 3 030 | - 4 371 |
| Impaired loans net | 5 305 | 6 497 |
| Specific reserve ratio for individually assessed impaired loans | 51.6% | 49.0% |
| Total reserve ratio for individually assessed impaired loans | 69.2% | 69.5% |
| Net level of impaired loans | 0.62% | 0.72% |
| Gross level of impaired loans | 1.26% | 1.39% |
| Portfolio assessed loans | ||
| Portfolio assessed loans past due > 60 days | 6 534 | 6 937 |
| Restructured loans | 502 | 312 |
| Collective reserves for portfolio assessed loans | - 3 577 | - 3 250 |
| Reserve ratio for portfolio assessed loans | 50.8% | 44.8% |
| Reserves | ||
| Specific reserves | - 8 883 | - 10 456 |
| Collective reserves | - 6 607 | - 7 621 |
| Reserves for off-balance sheet items | - 476 | - 478 |
| Total reserves | - 15 966 | - 18 555 |
| Non-performing loans | ||
| Non-performing loans* | 24 254 | 28 573 |
| NPL coverage ratio | 65.8% | 64.9% |
| NPL % of lending | 1.77% | 1.86% |
* Impaired loans + portfolio assessed loans > 60 days + restructured portfolio assessed loans
Seized assets – SEB Group
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2010 | 2009 |
| Properties, vehicles and equipment | 647 | 217 |
| Shares | 56 | 62 |
| Total seized assets | 703 | 279 |
Discontinued operations – SEB Group
Income statement
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Total operating income | 599 | 642 | -7 | 756 | -21 | 2 648 | 3 042 | -13 |
| Total operating expenses* | - 647 | -1 936 | -67 | - 852 | -24 | -4 204 | -3 603 | 17 |
| Profit before credit losses | - 48 | -1 294 | -96 | - 96 | -50 | -1 556 | - 561 | 177 |
| Net credit losses | - 160 | - 108 | 48 | - 96 | 67 | - 361 | - 418 | -14 |
| Operating profit | - 208 | -1 402 | -85 | - 192 | 8 | -1 917 | - 979 | 96 |
| Income tax expense | 125 | - 84 | 53 | 136 | 131 | 288 | -55 | |
| Net profit from discontinued operations | - 83 | -1 486 | -94 | - 139 | -40 | -1 786 | - 691 | 158 |
*Transaction related costs of SEK 1,240m (EUR 130m) recorded in discontinued operations in the third quarter consists of advisory costs and execution of IT and physical separation including redundancy.
Assets and liabilities held for sale
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2010 | 2009 |
| Loans to the public | 73 866 | |
| Other assets | 1 085 | 596 |
| Total assets held for sale | 74 951 | 596 |
| Deposits from credit institutions | 6 303 | |
| Deposits and borrowing from the public | 40 777 | |
| Other liabilities | 2 029 | 165 |
| Total liabilities held for sale | 49 109 | 165 |
Cash flow statement
| Jan - Dec | ||||
|---|---|---|---|---|
| SEK m | 2010 | 2009 | % | |
| Cash flow from operating activities | 774 | - 6 745 | - 111 | |
| Cash flow from investment activities | - 115 | 308 | - 137 | |
| Cash flow from financing activities | - 726 | 6 320 | - 111 | |
| Net increase in cash and cash equivalents from discontinued operations | - 67 | - 117 | - 43 |
Capital base of the SEB financial group of undertakings
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2010 | 2009 |
| Total equity according to balance sheet (1) | 99 543 | 99 669 |
| ./. Dividend (excl repurchased shares) | -3 291 | -2 193 |
| ./. Investments outside the financial group of undertakings (2) | -40 | -47 |
| ./. Other deductions outside the financial group of undertakings (3) | -2 688 | -2 570 |
| = Total equity in the capital adequacy | 93 524 | 94 859 |
| Adjustment for hedge contracts (4) | 1 755 | -419 |
| Net provisioning amount for IRB-reported credit exposures (5) | 0 | -297 |
| Unrealised value changes on available-for-sale financial assets (6) | 1 724 | 1 096 |
| ./. Exposures where RWA is not calculated (7) | -1 184 | -1 169 |
| ./. Goodwill (8) | -4 174 | -4 464 |
| ./. Other intangible assets | -2 564 | -2 616 |
| ./. Deferred tax assets | -1 694 | -1 609 |
| = Core Tier 1 capital | 87 387 | 85 381 |
| Tier 1 capital contribution (non-innovative) | 4 492 | 5 130 |
| Tier 1 capital contribution (innovative) | 10 101 | 11 093 |
| = Tier 1 capital | 101 980 | 101 604 |
| Dated subordinated debt | 4 922 | 11 028 |
| ./. Deduction for remaining maturity | -361 | -658 |
| Perpetual subordinated debt | 4 152 | 7 386 |
| Net provisioning amount for IRB-reported credit exposures (5) | 91 | -297 |
| Unrealised gains on available-for-sale financial assets (6) | 511 | 642 |
| ./. Exposures where RWA is not calculated (7) | -1 184 | -1 169 |
| ./. Investments outside the financial group of undertakings (2) | -40 | -47 |
| = Tier 2 capital | 8 091 | 16 885 |
| ./. Investments in insurance companies (9) | -10 500 | -10 601 |
| ./. Pension assets in excess of related liabilities (10) | -422 | -543 |
| = Capital base | 99 149 | 107 345 |
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 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 Rating 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 may be included in Tier 2 capital.
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 December 2010 the parent company's Tier 1 capital was SEK 94,049 (93,674) and the reported Tier 1 capital ratio was 16.0 per cent (14.8)
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 Dec | 31 Dec |
|---|---|---|
| SEK m | 2010 | 2009 |
| Credit risk IRB approach | ||
| Institutions | 37 405 | 50 200 |
| Corporates (1) | 403 128 | 405 072 |
| Securitisation positions | 6 337 | 10 590 |
| Retail mortgages | 65 704 | 65 021 |
| Other retail exposures | 9 826 | 10 792 |
| Other exposure classes | 1 511 | 1 638 |
| Total credit risk IRB approach | 523 911 | 543 313 |
| Further risk-weighted assets | ||
| Credit risk, Standardised approach (2) | 91 682 | 97 563 |
| Operational risk, Advanced Measurement approach | 44 568 | 39 459 |
| Foreign exchange rate risk | 15 995 | 7 957 |
| Trading book risks | 39 970 | 42 200 |
| Total risk-weighted assets | 716 126 | 730 492 |
| Summary | ||
| Credit risk | 615 593 | 640 876 |
| Operational risk | 44 568 | 39 459 |
| Market risk | 55 965 | 50 157 |
| Total | 716 126 | 730 492 |
| Adjustment for flooring rules | ||
| Addition according to transitional flooring (3) | 83 672 | 64 685 |
| Total reported | 799 798 | 795 177 |
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.
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 arrangements.
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,
covering risks that are not included in the capital adequacy regulation, and representing a buffer for the less benign phases of the business cycle. The Group's internal capital assessment process is based on the long term business plans and utilises SEB's economic capital model, supplemented e.g. with macro economic analysis and stress testing.
| 31 Dec | 31 Dec | |
|---|---|---|
| Capital adequacy | 2010 | 2009 |
| Capital resources | ||
| Core Tier 1 capital | 87 387 | 85 381 |
| Tier 1 capital | 101 980 | 101 604 |
| Capital base | 99 149 | 107 345 |
| Capital adequacy without transitional floor (Basel II) | ||
| Risk-weighted assets | 716 126 | 730 492 |
| Expressed as capital requirement | 57 290 | 58 439 |
| Core Tier 1 capital ratio | 12,2% | 11,7% |
| Tier 1 capital ratio | 14,2% | 13,9% |
| Total capital ratio | 13,8% | 14,7% |
| Capital base in relation to capital requirement | 1,73 | 1,84 |
| Capital adequacy including transitional floor | ||
| Transition floor applied | 80% | 80% |
| Risk-weighted assets | 799 798 | 795 177 |
| Expressed as capital requirement | 63 984 | 63 614 |
| Core Tier 1 capital ratio | 10,9% | 10,7% |
| Tier 1 capital ratio | 12,8% | 12,8% |
| Total capital ratio | 12,4% | 13,5% |
| Capital base in relation to capital requirement | 1,55 | 1,69 |
| Capital adequacy with risk weighting according to Basel I | ||
| Risk-weighted assets | 998 326 | 1 003 250 |
| Expressed as capital requirement | 79 866 | 80 260 |
| Core Tier 1 capital ratio | 8,8% | 8,5% |
| Tier 1 capital ratio | 10,2% | 10,1% |
| Total capital ratio | 9,9% | 10,7% |
| Capital base in relation to capital requirement | 1,24 | 1,34 |
Overall Basel II RWA (before the effect of transitional flooring) decreased with 2 per cent or SEK 14bn over the year. The biggest factor behind this change was the currency translation effect from the stronger Swedish krona which decreased RWA with SEK 45bn. RWA increased SEK 4bn from risk class migration; this and other risk weight changes are discussed below. Underlying credit volumes showed a mixed pattern where increased corporate lending added some SEK 23bn to RWA while mainly inter-bank volumes decreased. Operational and market RWA taken together increased SEK 11bn over the year. Including other changes this resulted in a net decrease of RWA according to Basel II (without transitional floor) to SEK 716bn.
The above means that un-floored Basel II RWA was 28 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 Dec | 31 Dec |
|---|---|---|
| Average risk weight | 2010 | 2009 |
| Institutions | 19,5% | 17,5% |
| Corporates | 57,0% | 57,8% |
| Securitisation positions | 20,6% | 22,6% |
| Retail mortgages | 16,9% | 17,2% |
| Other retail exposures | 38,2% | 38,5% |
Corporate exposures showed a limited risk class migration which increased RWA with SEK 4bn over the year. The effect was countered by volume expansion mainly in the stronger risk classes resulting in almost stable risk weight in that
portfolio over the year. No migration effect was recorded for inter-bank exposures but the average risk weight increased slightly since the overall volume decrease was not proportional over risk classes.
Income statement – Skandinaviska Enskilda Banken AB (publ)
| In accordance with FSA regulations | Q4 | Q3 | Q4 | Jan - Dec | ||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Interest income | 7 883 | 7 168 | 10 | 6 276 | 26 | 27 830 | 33 420 | -17 |
| Leasing income | 1 415 | 1 367 | 4 | 1 379 | 3 | 5 496 | 5 800 | -5 |
| Interest expense | -5 493 | -4 974 | 10 | -4 653 | 18 | -19 498 | -24 151 | -19 |
| Dividends | 42 | 754 | -94 | 2 461 | -98 | 1 182 | 2 757 | -57 |
| Fee and commission income | 2 328 | 1 988 | 17 | 2 133 | 9 | 8 408 | 7 851 | 7 |
| Fee and commission expense | - 361 | - 360 | 0 | - 430 | -16 | -1 501 | -1 636 | -8 |
| Net financial income | 449 | 705 | -36 | 857 | -48 | 3 239 | 4 065 | -20 |
| Other income | 217 | 3 | 551 | -61 | 532 | 2 811 | -81 | |
| Total operating income | 6 480 | 6 651 | -3 | 8 574 | -24 | 25 688 | 30 917 | -17 |
| Administrative expenses | -3 859 | -3 215 | 20 | -2 830 | 36 | -13 935 | -12 117 | 15 |
| Other expenses | ||||||||
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -1 165 | -1 159 | 1 | -1 524 | -24 | -4 630 | -5 125 | -10 |
| Total operating expenses | -5 024 | -4 374 | 15 | -4 354 | 15 | -18 565 | -17 242 | 8 |
| Profit before credit losses | 1 456 | 2 277 | -36 | 4 220 | -65 | 7 123 | 13 675 | -48 |
| Net credit losses | - 185 | - 6 | - 237 | -22 | - 362 | - 984 | -63 | |
| Impairment of financial assets | 7 | 3 | 133 | - 475 | - 442 | -1 222 | -64 | |
| Operating profit | 1 278 | 2 274 | -44 | 3 508 | -64 | 6 319 | 11 469 | -45 |
| Appropriations | -1 288 | 4 | -1 507 | -15 | -1 283 | -1 510 | -15 | |
| Income tax expense | - 155 | - 889 | -83 | - 129 | 20 | -2 591 | -1 451 | 79 |
| Other taxes | - 22 | - 4 | - 75 | -1 544 | -95 | |||
| Net profit | - 187 | 1 389 | -113 | 1 868 | -110 | 2 370 | 6 964 | -66 |
Statement of comprehensive income – Skandinaviska Enskilda Banken AB (publ)
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net profit | - 187 | 1 389 | -113 | 1 868 | -110 | 2 370 | 6 964 | -66 |
| Available-for-sale financial assets | -223 | 213 | 104 | -337 | 1 053 | |||
| Cash flow hedges | -730 | -119 | 8 | -1 208 | - 965 | 25 | ||
| Translation of foreign operations | 8 | -19 | -142 | 83 | -90 | -29 | - 96 | -70 |
| Group contributions | 199 | 503 | -60 | 210 | -5 | 1 203 | 662 | 82 |
| Other | 758 | -92 | 18 | 603 | 146 | |||
| Other comprehensive income (net of tax) | 12 | 486 | - 98 | 423 | -97 | 232 | 800 | - 71 |
| Total comprehensive income | - 175 | 1 875 | - 109 | 2 291 | -108 | 2 602 | 7 764 | - 66 |
| Balance sheet - Skandinaviska Enskilda Banken AB (publ) | |
|---|---|
| --------------------------------------------------------- | -- |
| Condensed | 31 Dec | 31 Dec |
|---|---|---|
| SEK m | 2010 | 2009 |
| Cash and cash balances with central banks | 19 941 | 21 815 |
| Loans to credit institutions | 250 568 | 376 223 |
| Loans to the public | 763 441 | 732 475 |
| Financial assets at fair value | 334 060 | 304 675 |
| Available-for-sale financial assets | 16 583 | 16 331 |
| Held-to-maturity investments | 3 685 | 3 789 |
| Investments in associates | 967 | 907 |
| Shares in subsidiaries | 55 145 | 59 325 |
| Tangible and intangible assets | 40 907 | 41 354 |
| Other assets | 51 031 | 39 022 |
| Total assets | 1 536 328 | 1 595 916 |
| Deposits from credit institutions | 195 408 | 386 530 |
| Deposits and borrowing from the public | 484 839 | 490 850 |
| Debt securities | 488 533 | 368 784 |
| Financial liabilities at fair value | 190 638 | 176 604 |
| Other liabilities | 62 363 | 48 886 |
| Provisions | 180 | 496 |
| Subordinated liabilities | 25 096 | 35 498 |
| Untaxed reserves | 23 930 | 22 645 |
| Total equity | 65 341 | 65 623 |
| Total liabilities, untaxed reserves and shareholders' equity | 1 536 328 | 1 595 916 |
Off-balance sheet items - Skandinaviska Enskilda Banken AB (publ)
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2010 | 2009 |
| Collateral pledged for own liabilities | 138 775 | 268 284 |
| Other pledged collateral | 35 663 | 47 031 |
| Contingent liabilities | 64 120 | 64 045 |
| Commitments | 291 046 | 275 203 |
Fact Book Annual Accounts 2010
STOCKHOLM 4 FEBRUARY 2011
= =
| Table of contents 2 | |
|---|---|
| About SEB3 | |
| SEB history 3 | |
| Financial targets3 | |
| Organisation 4 | |
| Corporate Governance6 | |
| Share and shareholders 7 | |
| Income statement8 | |
| Balance sheet structure & funding25 | |
| Capital adequacy and RWA 30 | |
| Volumes33 | |
| Credit portfolio, loan portfolio impaired loans by industry and geography 35 | |
| Asset quality39 | |
| Bond investment portfolio45 | |
| Divisional structure 46 | |
| Merchant Banking47 | |
| Retail Banking50 | |
| Wealth Management 54 | |
| Life56 | |
| Baltic 65 | |
| Macro 69 | |
| Definitions73 |
About SEB
| Mission | We help people and businesses thrive by providing quality advice and financial resources. |
|---|---|
| Vision | To be the trusted partner for customers with aspirations. |
| Customers & Markets | 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. |
| Brand promise | Rewarding relationships. |
| Goal | 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 addition, selectively expand leading life insurance and card services in the Nordic area. Support SEB's customers internationally through its network of strategic locations in major global financial centres. |
| People | 17,000 highly skilled people serving customers from locations in some 20 countries; covering different time zones, securing reach and local market knowledge. |
| Values | Guided by our Code of Business Conduct and our core values: professionalism, commitment, mutual respect and continuity. |
| History | 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
- 1938- Kreditbolaget renamed to Skandinaviska Banken
- 1972- Merger with Skandinaviska Banken
- 1990- Bank crises and e-banking revolution. Several acquisitions: Trygg Hansa, Baltic banks and asset managers
- 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.
* Proposed to the AGM
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
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
Marcus Wallenberg Chairman
Jacob Wallenberg Deputy Chairman
Tuve Johannesson Deputy Chairman
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.
Signhild Arnegård Hansen
Urban Jansson Chairman of the Risk and Capital
Birgitta Kantola
Tomas Nicolin Chairman of the Remuneration and HR Committee
Christine Novakovic Jesper Ovesen Carl Wilhelm Ros Chairman of the Audit and Compliance Committee
Pernilla Påhlman Appointed by the
Annika Falkengren President & CEO
Göran Arrius Appointed by the employees
Göran Lilja Appointed by the employees
Cecilia Mårtensson Appointed by the employees
employees
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 members are presented below.
CRO
Jan Erik Back CFO
Magnus Carlsson Merchant Banking
Bo Magnusson Staff
Viveka Hirdman-Ryrberg Communications
Ulf Peterson Human Resources
Martin Johansson Baltic
Anders Johnsson Wealth Management
Jan Stjernström Life
Hans Larsson Strategy
Mats Torstendahl Retail Banking
Pia Warnerman Operations & IT
Full-time equivalents, end of quarter
| Q1 2008 |
Q2 2008 |
Q3 2008 |
Q4 2008 |
Q1 2009 |
Q2 2009 |
Q3 2009 |
Q4 2009 |
Q1 2010 |
Q2 2010 |
Q3 2010 |
Q4 2010 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Merchant Banking | 2,742 | 2,760 | 2,719 | 2,698 | 2,697 | 2,650 | 2,582 | 2,539 | 2,529 | 2,530 | 2,571 | 2,591 |
| Retail Banking | 3,507 | 3,700 | 3,544 | 3,529 | 3,425 | 3,454 | 3,320 | 3,313 | 3,316 | 3,470 | 3,420 | 3,437 |
| RB Sweden | 2,723 | 2,865 | 2,728 | 2,710 | 2,621 | 2,642 | 2,515 | 2,512 | 2,531 | 2,674 | 2,610 | 2,663 |
| RB Cards | 784 | 835 | 816 | 819 | 804 | 812 | 805 | 801 | 785 | 796 | 810 | 774 |
| Wealth Management | 1,160 | 1,143 | 1,123 | 1,088 | 1,064 | 1,013 | 981 | 1,000 | 972 | 969 | 996 | 1,030 |
| Life | 1,222 | 1,235 | 1,250 | 1,226 | 1,206 | 1,196 | 1,184 | 1,173 | 1,175 | 1,173 | 1,200 | 1,226 |
| Baltic | 3,366 | 3,469 | 3,420 | 3,353 | 3,353 | 3,285 | 3,252 | 3,093 | 2,957 | 2,937 | 2,959 | 2,966 |
| Baltic Estonia | 986 | 1,022 | 983 | 973 | 950 | 958 | 974 | 933 | 915 | 909 | 905 | 893 |
| Baltic Latvia | 1,012 | 1,024 | 997 | 916 | 911 | 896 | 878 | 854 | 803 | 802 | 824 | 829 |
| Baltic Lithuania | 1,368 | 1,423 | 1,439 | 1,464 | 1,492 | 1,432 | 1,400 | 1,306 | 1,239 | 1,226 | 1,229 | 1,244 |
| Operations & IT | 3,725 | 3,845 | 3,864 | 3,860 | 3,777 | 3,762 | 3,688 | 3,655 | 3,626 | 3,613 | 3,612 | 3,640 |
| Other | 3,117 | 3,092 | 3,144 | 3,061 | 2,862 | 2,784 | 2,648 | 2,558 | 2,411 | 2,367 | 2,375 | 2,457 |
| SEB Group | ||||||||||||
| Continuing operations | 18,839 | 19,244 | 19,064 | 18,815 | 18,385 | 18,143 | 17,655 | 17,331 | 16,986 | 17,059 | 17,133 | 17,347 |
| Discontinued operations | 2,371 | 2,401 | 2,364 | 2,316 | 2,272 | 2,286 | 2,257 | 2,231 | 2,046 | 2,032 | 2,017 | 1,873 |
| SEB Group | 21,210 | 21,645 | 21,428 | 21,131 | 20,656 | 20,430 | 19,912 | 19,562 | 19,032 | 19,091 | 19,150 | 19,220 |
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.
The Board of Directors and the President perform their governing and controlling roles through several policies and instructions, the 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.
Corporate Governance Structure
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, | |
|---|---|
| December 2010 | per cent |
| Investor AB | 20.8 |
| Trygg Foundation | 8.1 |
| Alecta | 7.0 |
| Swedbank/Robur Funds | 3.6 |
| SHB | 1.7 |
| AMF Insurance & Funds | 1.6 |
| SHB Funds | 1.6 |
| Wallenberg Foundations | 1.5 |
| SEB Funds | 1.4 |
| AFA Insurance | 1.4 |
| Foreign owners | 21.3 |
| Source: Euroclear Sweden/SIS Ägarservice |
Income statement
SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2,009 | % | 2010 | 2009 | % |
| Net interest income | 4,526 | 4,180 | 8 | 3,332 | 36 | 16,010 | 18,046 | -11 |
| Net fee and commission income | 3,906 | 3,387 | 15 | 3,587 | 9 | 14,160 | 13,285 | 7 |
| Net financial income | 512 | 727 | -30 | 939 | -45 | 3,166 | 4,488 | -29 |
| Net life insurance income | 780 | 818 | -5 | 932 | -16 | 3,255 | 3,597 | -10 |
| Net other income | 314 | -230 | 430 | -27 | 288 | 2,159 | -87 | |
| Total operating income | 10,038 | 8,882 | 13 | 9,220 | 9 | 36,879 | 41,575 | -11 |
| Staff costs | -3,558 | -3,392 | 5 | -2,785 | 28 | -14,004 | -13,786 | 2 |
| Other expenses | -1,965 | -1,679 | 17 | -2,128 | -8 | -7,303 | -6,740 | 8 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -650 | -405 | 60 | -463 | 40 | -1,880 | -4,672 | -60 |
| Restructuring costs | -9 | -755 | -99 | -764 | ||||
| Total operating expenses | -6,182 | -6,231 | -1 | -5,376 | 15 | -23,951 | -25,198 | -5 |
| Profit before credit losses | 3,856 | 2,651 | 45 | 3,844 | 0 | 12,928 | 16,377 | -21 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | 21 | -24 | 14 | 4 | ||||
| Net credit losses | 419 | 196 | 114 | -3,064 | -114 | -1,837 | -12,030 | -85 |
| Operating profit | 4,296 | 2,847 | 51 | 756 | 11,105 | 4,351 | 155 | |
| Income tax expense | -704 | -765 | -8 | -333 | 111 | -2,521 | -2,482 | 2 |
| Net profit from continuing operations | 3,592 | 2,082 | 73 | 423 | 8,584 | 1,869 | ||
| Discontinued operations | -83 | -1,486 | -94 | -139 | -40 | -1,786 | -691 | 158 |
| Net profit | 3,509 | 596 | 284 | 6,798 | 1,178 | |||
| Attributable to minority interests | 6 | 15 | -60 | 27 | -78 | 53 | 64 | -17 |
| Attributable to equity holders | 3,503 | 581 | 257 | 6,745 | 1,114 | |||
| Continuing operations | ||||||||
| Basic earnings per share, SEK | 1.64 | 0.94 | 0.18 | 3.88 | 0.95 | |||
| Diluted earnings per share, SEK | 1.62 | 0.94 | 0.18 | 3.87 | 0.94 | |||
| Total operations | ||||||||
| Basic earnings per share, SEK | 1.60 | 0.26 | 0.12 | 3.07 | 0.58 | |||
| Diluted earnings per share, SEK | 1.58 | 0.26 | 0.12 | 3.06 | 0.58 |
Including:
One-off charges of SEK 890m in Q4 2005 for premises Sales of Baltic properties in Q4 2007 of SEK 785m
- 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
| Q4 | Q3 | Q4 | Jan - Dec | ||
|---|---|---|---|---|---|
| 2010 | 2010 | 2009 | 2010 | 2009 | |
| Continuing operations | |||||
| Return on equity, continuing operations, % | 14.62 | 8.48 | 1.60 | 8.65 | 1.89 |
| Basic earnings per share, continuing operations, SEK | 1.64 | 0.94 | 0.18 | 3.88 | 0.95 |
| Diluted earnings per share, continuing operations, SEK | 1.62 | 0.94 | 0.18 | 3.87 | 0.94 |
| Cost/income ratio, continuing operations | 0.62 | 0.70 | 0.58 | 0.65 | 0.61 |
| Number of full time equivalents, continuing operations* | 17.347 | 17.133 | 17.331 | 17.104 | 17.970 |
| Loans to deposits ratio, excl repos and reclassified bonds, % | 139 | 138 | 139 | 139 | 139 |
| Total operations | |||||
| Return on equity, % | 14.28 | 2.38 | 1.04 | 6.84 | 1.17 |
| Return on total assets, % | 0.63 | 0.10 | 0.05 | 0.30 | 0.05 |
| Return on risk-weighted assets, % | 1.73 | 0.28 | 0.13 | 0.83 | 0.13 |
| Basic earnings per share, SEK | 1.60 | 0.26 | 0.12 | 3.07 | 0.58 |
| Weighted average number of shares, millions** | 2.194 | 2.194 | 2.194 | 2.194 | 1.906 |
| Diluted earnings per share, SEK | 1.58 | 0.26 | 0.12 | 3.06 | 0.58 |
| Weighted average number of diluted shares, millions*** | 2.212 | 2.207 | 2.201 | 2.202 | 1.911 |
| Net worth per share, SEK | 50.34 | 49.02 | 50.17 | 50.34 | 50.17 |
| Average equity, SEK, billion | 98.4 | 98.4 | 99.3 | 98.9 | 95.4 |
| Credit loss level, % | -0.07 | -0.02 | 0.93 | 0.14 | 0.92 |
| Total reserve ratio individually assessed impaired loans, % | 69.2 | 73.2 | 69.5 | 69.2 | 69.5 |
| Net level of impaired loans, % | 0.62 | 0.62 | 0.72 | 0.62 | 0.72 |
| Gross level of impaired loans, % | 1.26 | 1.29 | 1.39 | 1.26 | 1.39 |
| Basel II (Legal reporting with transitional floor) :**** | |||||
| Risk-weighted assets, SEK billion | 800 | 797 | 795 | 800 | 795 |
| Core Tier 1 capital ratio, % | 11.06 | 10.80 | 10.74 | 11.06 | 10.74 |
| Tier 1 capital ratio, % | 12.89 | 12.65 | 12.78 | 12.89 | 12.78 |
| Total capital ratio, % | 12.53 | 12.73 | 13.50 | 12.53 | 13.50 |
| Basel II (without transitional floor): | |||||
| Risk-weighted assets, SEK billion | 716 | 711 | 730 | 716 | 730 |
| Core Tier 1 capital ratio, % | 12.36 | 12.11 | 11.69 | 12.36 | 11.69 |
| Tier 1 capital ratio, % | 14.39 | 14.18 | 13.91 | 14.39 | 13.91 |
| Total capital ratio, % | 14.00 | 14.27 | 14.69 | 14.00 | 14.69 |
| Basel I: | |||||
| Risk-weighted assets, SEK billion | 998 | 984 | 1 003 | 998 | 1 003 |
| Core Tier 1 capital ratio, % | 8.86 | 8.75 | 8.51 | 8.86 | 8.51 |
| Tier 1 capital ratio, % | 10.32 | 10.25 | 10.13 | 10.32 | 10.13 |
| Total capital ratio, % | 10.04 | 10.31 | 10.70 | 10.04 | 10.70 |
| Number of full time equivalents* | 19.220 | 19.150 | 19.562 | 19.125 | 20.233 |
| Assets under custody, SEK billion | 5.072 | 4.879 | 4.853 | 5.072 | 4.853 |
| Assets under management, SEK billion | 1.399 | 1.343 | 1.356 | 1.399 | 1.356 |
| Discontinued operations | |||||
| Basic earnings per share, discontinued operations, SEK | -0.04 | -0.68 | -0.06 | -0.81 | -0.36 |
| Diluted earnings per share, discontinued operations, SEK | -0.04 | -0.67 | -0.06 | -0.81 | -0.36 |
* 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 810,155 Class A shares for the employee stock option programme at year end 2009. During 2010 SEB has repurchased 600,000 shares and 1,142,795 have been sold as employee stock options have been exercised. Thus, as at 31 December 2010 SEB owned 267,360 Class A-shares with a market value of SEK 15m.
*** 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
Total
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 5,488 | 5,029 | 4,197 | 3,332 | 3,542 | 3,762 | 4,180 | 4,526 | 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 | 13,285 | 14,160 |
| Net financial income | 1,133 | 1,471 | 945 | 939 | 950 | 977 | 727 | 512 | 4,488 | 3,166 |
| Net life insurance income | 862 | 946 | 857 | 932 | 879 | 778 | 818 | 780 | 3,597 | 3,255 |
| Net other income | 315 | 1,579 | -165 | 430 | 170 | 34 | -230 | 314 | 2,159 | 288 |
| Total operating income | 10,742 | 12,516 | 9,097 | 9,220 | 8,735 | 9,224 | 8,882 | 10,038 | 41,575 | 36,879 |
| Staff costs | -3,920 | -3,799 | -3,282 | -2,785 | -3,438 | -3,616 | -3,392 | -3,558 | -13,786 | -14,004 |
| Other expenses | -1,465 | -1,612 | -1,535 | -2,128 | -1,784 | -1,875 | -1,679 | -1,965 | -6,740 | -7,303 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -1,008 | -2,826 | -375 | -463 | -409 | -416 | -405 | -650 | -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 | -25,198 | -23,951 |
| Profit before credit losses | 4,349 | 4,279 | 3,905 | 3,844 | 3,104 | 3,317 | 2,651 | 3,856 | 16,377 | 12,928 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | 2 | 23 | 3 | -24 | -4 | -3 | 21 | 4 | 14 | |
| Net credit losses | -2,321 | -3,439 | -3,206 | -3,064 | -1,813 | -639 | 196 | 419 | -12,030 | -1,837 |
| Operating profit | 2,030 | 863 | 702 | 756 | 1,287 | 2,675 | 2,847 | 4,296 | 4,351 | 11,105 |
| Income tax expense | -838 | -865 | -446 | -333 | -452 | -600 | -765 | -704 | -2,482 | -2,521 |
| Net profit from continuing operations | 1,192 | -2 | 256 | 423 | 835 | 2,075 | 2,082 | 3,592 | 1,869 | 8,584 |
| Discontinued operations | -165 | -168 | -219 | -139 | -146 | -71 | -1,486 | -83 | -691 | -1,786 |
| Net profit | 1,027 | -170 | 37 | 284 | 689 | 2,004 | 596 | 3,509 | 1,178 | 6,798 |
| Attributable to minority interests | 2 | 23 | 12 | 27 | 15 | 17 | 15 | 6 | 64 | 53 |
| Attributable to equity holders | 1,025 | -193 | 25 | 257 | 674 | 1,987 | 581 | 3,503 | 1,114 | 6,745 |
Share of profit before credit losses
Jan – Dec 2010
Divisions – Adjusted for Other
(1 Restructuring costs of SEK 755 m excluded
(2 Write-down of IT systems of SEK 199m
Divisions
Merchant Banking
| Total | |
|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 2,919 | 2,683 | 2,402 | 1,978 | 2,014 | 1,964 | 2,012 | 2,133 | 9,982 | 8,123 |
| Net fee and commission income | 1,172 | 1,618 | 1,326 | 1,531 | 1,083 | 1,420 | 1,290 | 1,515 | 5,647 | 5,308 |
| Net financial income | 1,186 | 1,498 | 981 | 712 | 1,017 | 1,320 | 753 | 655 | 4,377 | 3,745 |
| Net other income | 115 | -8 | 40 | -101 | 50 | -3 | -159 | 66 | 46 | -46 |
| Total operating income | 5,392 | 5,791 | 4,749 | 4,120 | 4,164 | 4,701 | 3,896 | 4,369 | 20,052 | 17,130 |
| Staff costs | -1,092 | -1,106 | -775 | -556 | -993 | -1,109 | -875 | -1,114 | -3,529 | -4,091 |
| Other expenses | -1,019 | -1,083 | -1,007 | -1,025 | -1,038 | -1,093 | -954 | -1,120 | -4,134 | -4,205 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -25 | -34 | -35 | -61 | -27 | -39 | -41 | -62 | -155 | -169 |
| Total operating expenses | -2,136 | -2,223 | -1,817 | -1,642 | -2,058 | -2,241 | -1,870 | -2,296 | -7,818 | -8,465 |
| Profit before credit losses | 3,256 | 3,568 | 2,932 | 2,478 | 2,106 | 2,460 | 2,026 | 2,073 | 12,234 | 8,665 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -1 | 29 | -1 | 28 | |||||
| Net credit losses | -279 | -367 | -107 | -52 | -104 | 31 | -23 | -99 | -805 | -195 |
| Operating profit | 2,977 | 3,201 | 2,825 | 2,425 | 2,002 | 2,491 | 2,002 | 2,003 | 11,428 | 8,498 |
Merchant Banking
Trading and Capital Markets
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 1,452 | 1,251 | 977 | 583 | 611 | 561 | 550 | 635 | 4,263 | 2,357 |
| Net fee and commission income | 354 | 552 | 416 | 451 | 316 | 441 | 360 | 492 | 1,773 | 1,609 |
| Net financial income | 1,319 | 1,552 | 1,055 | 760 | 1,041 | 1,358 | 769 | 697 | 4,686 | 3,865 |
| Net other income | 73 | -70 | 2 | -87 | 3 | -54 | -204 | -90 | -82 | -345 |
| Total operating income | 3,198 | 3,285 | 2,450 | 1,707 | 1,971 | 2,306 | 1,475 | 1,734 | 10,640 | 7,486 |
| Staff costs | -473 | -478 | -322 | -312 | -430 | -490 | -377 | -490 | -1,585 | -1,787 |
| Other expenses | -445 | -469 | -446 | -451 | -470 | -497 | -431 | -518 | -1,811 | -1,916 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -8 | -8 | -8 | -9 | -7 | -10 | -8 | -9 | -33 | -34 |
| Total operating expenses | -926 | -955 | -776 | -772 | -907 | -997 | -816 | -1,017 | -3,429 | -3,737 |
| Profit before credit losses | 2,272 | 2,330 | 1,674 | 935 | 1,064 | 1,309 | 659 | 717 | 7,211 | 3,749 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -1 | ||||||||
| Net credit losses | -62 | -1 | 5 | 196 | 1 | 1 | 138 | 2 | ||
| Operating profit | 2,210 | 2,329 | 1,679 | 1,130 | 1,065 | 1,309 | 659 | 718 | 7,348 | 3,751 |
Merchant Banking
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 1,094 | 1,082 | 1,146 | 1,117 | 1,053 | 1,069 | 1,130 | 1,120 | 4,439 | 4,372 |
| Net fee and commission income | 397 | 624 | 456 | 647 | 371 | 550 | 561 | 676 | 2,124 | 2,158 |
| Net financial income | -140 | -64 | -86 | -59 | -35 | -57 | -27 | -65 | -349 | -184 |
| Net other income | 24 | 49 | 30 | -24 | 33 | 39 | 37 | 141 | 79 | 250 |
| Total operating income | 1,375 | 1,691 | 1,546 | 1,681 | 1,422 | 1,601 | 1,701 | 1,872 | 6,293 | 6,596 |
| Staff costs | -436 | -447 | -299 | -134 | -401 | -455 | -348 | -463 | -1,316 | -1,667 |
| Other expenses | -221 | -239 | -218 | -250 | -249 | -252 | -205 | -198 | -928 | -904 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -12 | -12 | -12 | -19 | -17 | -16 | -16 | -50 | -55 | -99 |
| Total operating expenses | -669 | -698 | -529 | -403 | -667 | -723 | -569 | -711 | -2,299 | -2,670 |
| Profit before credit losses | 706 | 993 | 1,017 | 1,278 | 755 | 878 | 1,132 | 1,161 | 3,994 | 3,926 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | 29 | 28 | |||||||
| Net credit losses | -167 | -336 | -109 | -178 | -98 | 44 | -41 | -97 | -790 | -192 |
| Operating profit | 539 | 657 | 908 | 1,100 | 657 | 922 | 1,090 | 1,093 | 3,204 | 3,762 |
Merchant Banking
| Global Transaction Services | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 373 | 350 | 279 | 278 | 350 | 334 | 331 | 378 | 1,280 | 1,393 |
| Net fee and commission income | 421 | 441 | 455 | 433 | 396 | 429 | 369 | 347 | 1,750 | 1,541 |
| Net financial income | 7 | 11 | 12 | 10 | 11 | 19 | 12 | 23 | 40 | 65 |
| Net other income | 19 | 12 | 7 | 10 | 14 | 12 | 8 | 15 | 48 | 49 |
| Total operating income | 820 | 814 | 753 | 731 | 771 | 794 | 720 | 763 | 3,118 | 3,048 |
| Staff costs | -183 | -180 | -155 | -110 | -162 | -164 | -150 | -161 | -628 | -637 |
| Other expenses | -354 | -374 | -343 | -324 | -319 | -344 | -319 | -404 | -1,395 | -1,386 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -5 | -15 | -15 | -31 | -3 | -13 | -16 | -3 | -66 | -35 |
| Total operating expenses | -542 | -569 | -513 | -465 | -484 | -521 | -485 | -568 | -2,089 | -2,058 |
| Profit before credit losses | 278 | 245 | 240 | 266 | 287 | 273 | 235 | 195 | 1,029 | 990 |
| Gains less losses on disposals of tangible and intangible assets |
||||||||||
| Net credit losses | -50 | -30 | -3 | -70 | -7 | -13 | 18 | -3 | -153 | -5 |
| Operating profit | 228 | 215 | 237 | 196 | 280 | 260 | 253 | 192 | 876 | 985 |
Retail Banking
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 1,456 | 1,359 | 1,331 | 1,278 | 1,201 | 1,212 | 1,263 | 1,332 | 5,424 | 5,008 |
| Net fee and commission income | 790 | 812 | 790 | 862 | 789 | 829 | 774 | 849 | 3,254 | 3,241 |
| Net financial income | 72 | 79 | 57 | 84 | 65 | 76 | 58 | 74 | 292 | 273 |
| Net other income | 19 | 10 | 17 | 18 | 9 | 12 | 14 | 12 | 64 | 47 |
| Total operating income | 2,337 | 2,260 | 2,195 | 2,242 | 2,064 | 2,129 | 2,109 | 2,267 | 9,034 | 8,569 |
| Staff costs | -675 | -673 | -623 | -571 | -654 | -656 | -683 | -643 | -2,542 | -2,636 |
| Other expenses | -643 | -714 | -646 | -665 | -638 | -734 | -660 | -789 | -2,668 | -2,821 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -20 | -28 | -23 | -22 | -21 | -21 | -21 | -21 | -93 | -84 |
| Total operating expenses | -1,338 | -1,415 | -1,292 | -1,258 | -1,313 | -1,411 | -1,364 | -1,453 | -5,303 | -5,541 |
| Profit before credit losses | 999 | 845 | 903 | 984 | 751 | 718 | 745 | 814 | 3,731 | 3,028 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -1 | ||||||||
| Net credit losses | -205 | -214 | -198 | -223 | -196 | -147 | -56 | -144 | -840 | -543 |
| Operating profit | 794 | 631 | 705 | 761 | 555 | 571 | 688 | 670 | 2,891 | 2,484 |
Retail Banking
Retail Sweden
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 1,235 | 1,109 | 1,068 | 1,017 | 948 | 963 | 1,019 | 1,095 | 4,429 | 4,025 |
| Net fee and commission income | 369 | 357 | 352 | 393 | 385 | 378 | 363 | 397 | 1,471 | 1,523 |
| Net financial income | 72 | 80 | 57 | 84 | 65 | 76 | 58 | 74 | 293 | 273 |
| Net other income | 5 | 4 | 5 | 5 | 4 | 5 | 3 | 5 | 19 | 17 |
| Total operating income | 1,681 | 1,550 | 1,482 | 1,499 | 1,402 | 1,422 | 1,443 | 1,571 | 6,212 | 5,838 |
| Staff costs | -488 | -486 | -442 | -424 | -458 | -464 | -488 | -468 | -1,840 | -1,878 |
| Other expenses | -487 | -548 | -490 | -526 | -490 | -546 | -506 | -624 | -2,051 | -2,166 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -9 | -16 | -12 | -11 | -11 | -13 | -11 | -14 | -48 | -49 |
| Total operating expenses | -984 | -1,050 | -944 | -961 | -959 | -1,023 | -1,005 | -1,106 | -3,939 | -4,093 |
| Profit before credit losses | 697 | 500 | 538 | 538 | 443 | 399 | 438 | 465 | 2,273 | 1,745 |
| Gains less losses on disposals of tangible and intangible assets |
||||||||||
| Net credit losses | -95 | -90 | -92 | -118 | -105 | -63 | -5 | -71 | -395 | -244 |
| Operating profit | 602 | 410 | 446 | 420 | 338 | 336 | 433 | 394 | 1,878 | 1,501 |
Retail Banking
| Cards | |
|---|---|
| ------- | -- |
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 220 | 250 | 263 | 261 | 253 | 249 | 244 | 236 | 994 | 982 |
| Net fee and commission income | 415 | 451 | 429 | 468 | 397 | 438 | 403 | 444 | 1,763 | 1,682 |
| Net other income | 21 | 11 | 18 | 20 | 15 | 16 | 18 | 22 | 70 | 71 |
| Total operating income | 656 | 712 | 710 | 749 | 665 | 703 | 665 | 702 | 2,827 | 2,735 |
| Staff costs | -187 | -187 | -181 | -148 | -196 | -192 | -195 | -175 | -703 | -758 |
| Other expenses | -157 | -168 | -151 | -146 | -152 | -182 | -154 | -171 | -622 | -659 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -11 | -12 | -11 | -11 | -10 | -9 | -8 | -8 | -45 | -35 |
| Total operating expenses | -355 | -367 | -343 | -305 | -358 | -383 | -357 | -354 | -1,370 | -1,452 |
| Profit before credit losses | 301 | 345 | 367 | 444 | 307 | 320 | 308 | 348 | 1,457 | 1,283 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -1 | ||||||||
| Net credit losses | -110 | -124 | -107 | -104 | -91 | -84 | -51 | -73 | -445 | -299 |
| Operating profit | 191 | 221 | 260 | 340 | 216 | 236 | 256 | 275 | 1,012 | 983 |
Wealth Management
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 190 | 159 | 133 | 116 | 111 | 120 | 118 | 136 | 598 | 485 |
| Net fee and commission income | 659 | 713 | 730 | 853 | 868 | 939 | 830 | 1,115 | 2,955 | 3,752 |
| Net financial income | 20 | 16 | 17 | 23 | 18 | 24 | 17 | 30 | 76 | 89 |
| Net other income | 1 | 12 | 1 | 3 | 47 | 7 | 4 | 17 | 58 | |
| Total operating income | 870 | 900 | 881 | 995 | 997 | 1,130 | 972 | 1,285 | 3,646 | 4,384 |
| Staff costs | -340 | -337 | -302 | -250 | -314 | -344 | -311 | -350 | -1,229 | -1,319 |
| Other expenses | -286 | -292 | -272 | -310 | -302 | -339 | -320 | -372 | -1,160 | -1,333 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -30 | -33 | -29 | -24 | -20 | -21 | -20 | -23 | -116 | -84 |
| Total operating expenses | -656 | -662 | -603 | -584 | -636 | -704 | -651 | -745 | -2,505 | -2,736 |
| Profit before credit losses | 214 | 238 | 278 | 411 | 361 | 426 | 321 | 540 | 1,141 | 1,648 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | 29 | 1 | -1 | 29 | ||||||
| Net credit losses | -8 | -12 | -8 | -1 | -2 | -1 | 7 | -28 | 3 | |
| Operating profit | 206 | 255 | 279 | 402 | 360 | 424 | 320 | 547 | 1,142 | 1,651 |
Wealth Management
| Institutional Clients | |
|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 23 | 11 | 13 | 13 | 8 | 13 | 12 | 14 | 60 | 47 |
| Net fee and commission income | 507 | 529 | 542 | 621 | 641 | 704 | 624 | 865 | 2,199 | 2,834 |
| Net financial income | 1 | 2 | 4 | 8 | 3 | 6 | 8 | 10 | 15 | 27 |
| Net other income | 4 | 2 | 3 | -1 | 1 | 8 | 4 | 9 | 12 | |
| Total operating income | 531 | 546 | 561 | 645 | 651 | 724 | 652 | 893 | 2,283 | 2,920 |
| Staff costs | -228 | -217 | -178 | -153 | -225 | -229 | -199 | -229 | -776 | -882 |
| Other expenses | -173 | -186 | -184 | -201 | -207 | -227 | -217 | -265 | -744 | -916 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -23 | -26 | -23 | -20 | -14 | -15 | -15 | -17 | -92 | -61 |
| Total operating expenses | -424 | -429 | -385 | -374 | -446 | -471 | -431 | -511 | -1,612 | -1,859 |
| Profit before credit losses | 107 | 117 | 176 | 271 | 205 | 253 | 221 | 382 | 671 | 1,061 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | 34 | -1 | 33 | |||||||
| Net credit losses | ||||||||||
| Operating profit | 107 | 151 | 176 | 270 | 205 | 253 | 221 | 382 | 704 | 1,061 |
Wealth Management
| Private Banking | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 167 | 148 | 121 | 103 | 102 | 108 | 106 | 122 | 539 | 438 |
| Net fee and commission income | 151 | 184 | 193 | 228 | 228 | 232 | 203 | 250 | 756 | 913 |
| Net financial income | 19 | 15 | 12 | 15 | 15 | 18 | 9 | 20 | 61 | 62 |
| Net other income | 1 | 7 | 2 | 2 | 46 | 10 | 48 | |||
| Total operating income | 338 | 354 | 326 | 348 | 347 | 404 | 318 | 392 | 1,366 | 1,461 |
| Staff costs | -111 | -121 | -124 | -96 | -89 | -115 | -112 | -121 | -452 | -437 |
| Other expenses | -113 | -106 | -93 | -106 | -96 | -110 | -100 | -108 | -418 | -414 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -7 | -6 | -6 | -6 | -6 | -6 | -6 | -5 | -25 | -23 |
| Total operating expenses | -231 | -233 | -223 | -208 | -191 | -231 | -218 | -234 | -895 | -874 |
| Profit before credit losses | 107 | 121 | 103 | 140 | 156 | 173 | 100 | 158 | 471 | 587 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -5 | -5 | ||||||||
| Net credit losses | -8 | -12 | -8 | -1 | -2 | -1 | 7 | -28 | 3 | |
| Operating profit | 99 | 104 | 103 | 132 | 155 | 171 | 99 | 165 | 438 | 590 |
Life
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Q1 2009 |
Q2 2009 |
Q3 2009 |
Q4 2009 |
Q1 2010 |
Q2 2010 |
Q3 2010 |
Q4 2010 |
Full Year 2009 |
Full Year 2010 |
| Net interest income | -10 | -5 | -2 | -1 | -2 | -2 | -2 | -5 | -18 | -11 |
| Net life insurance income | 1,043 | 1,148 | 1,107 | 1,145 | 1,186 | 1,115 | 1,143 | 1,106 | 4,443 | 4,550 |
| Total operating income | 1,033 | 1,143 | 1,105 | 1,144 | 1,184 | 1,113 | 1,141 | 1,101 | 4,425 | 4,539 |
| Staff costs | -274 | -299 | -271 | -263 | -282 | -287 | -276 | -278 | -1,107 | -1,123 |
| Other expenses | -126 | -146 | -120 | -144 | -131 | -135 | -133 | -125 | -536 | -524 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -165 | -177 | -158 | -167 | -173 | -172 | -169 | -176 | -667 | -690 |
| Total operating expenses | -565 | -622 | -549 | -574 | -586 | -594 | -578 | -579 | -2,310 | -2,337 |
| Profit before credit losses | 468 | 521 | 556 | 570 | 598 | 519 | 563 | 522 | 2,115 | 2,202 |
| Operating profit * | 468 | 521 | 556 | 570 | 598 | 519 | 563 | 522 | 2,115 | 2,202 |
| Change in surplus values | 111 | 395 | 224 | 170 | 229 | 191 | 400 | 345 | 900 | 1,165 |
| Business result | 579 | 916 | 780 | 740 | 827 | 710 | 963 | 867 | 3,015 | 3,367 |
* Consolidated in the Group accounts
Baltic
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 778 | 751 | 628 | 522 | 490 | 456 | 442 | 481 | 2,679 | 1,869 |
| Net fee and commission income | 238 | 248 | 227 | 221 | 209 | 226 | 229 | 213 | 934 | 877 |
| Net financial income | 37 | 23 | 35 | 31 | 26 | 36 | 8 | -7 | 126 | 63 |
| Net other income | 12 | -8 | -6 | 57 | 4 | 2 | 21 | 10 | 55 | 37 |
| Total operating income | 1,065 | 1,014 | 884 | 831 | 729 | 720 | 700 | 697 | 3,794 | 2,846 |
| Staff costs | -220 | -197 | -176 | -137 | -179 | -161 | -155 | -145 | -730 | -640 |
| Other expenses | -336 | -345 | -307 | -464 | -304 | -285 | -286 | -283 | -1,452 | -1,158 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -25 | -2,328 | -15 | -21 | -20 | -19 | -18 | -234 | -2,389 | -291 |
| Total operating expenses | -581 | -2,870 | -498 | -622 | -503 | -465 | -459 | -662 | -4,571 | -2,089 |
| Profit before credit losses | 484 | -1,856 | 386 | 209 | 226 | 255 | 241 | 35 | -777 | 757 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | 2 | -6 | 3 | -16 | -1 | -4 | -17 | -5 | ||
| Net credit losses | -1,702 | -2,641 | -2,642 | -2,584 | -1,431 | -451 | 273 | 736 | -9,569 | -873 |
| Operating profit | -1,216 | -4,503 | -2,253 | -2,391 | -1,205 | -197 | 514 | 767 | -10,363 | -121 |
Baltic
Baltic Estonia
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 252 | 238 | 226 | 200 | 154 | 140 | 136 | 150 | 916 | 580 |
| Net fee and commission income | 78 | 83 | 79 | 75 | 72 | 73 | 70 | 66 | 315 | 281 |
| Net financial income | 9 | -4 | 7 | 18 | 9 | 10 | -4 | -22 | 30 | -7 |
| Net other income | 6 | -12 | -6 | 45 | 3 | 3 | 2 | 10 | 33 | 18 |
| Total operating income | 345 | 305 | 306 | 338 | 238 | 226 | 204 | 204 | 1,294 | 872 |
| Staff costs | -61 | -57 | -56 | -35 | -64 | -51 | -50 | -36 | -209 | -201 |
| Other expenses | -100 | -90 | -92 | -210 | -108 | -87 | -86 | -67 | -492 | -348 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -5 | -679 | -2 | -7 | -4 | -4 | -3 | -6 | -693 | -17 |
| Total operating expenses | -166 | -826 | -150 | -252 | -176 | -142 | -139 | -109 | -1,394 | -566 |
| Profit before credit losses | 179 | -521 | 156 | 86 | 62 | 84 | 65 | 95 | -100 | 306 |
| Gains less losses on disposals of tangible and intangible assets |
1 | 1 | ||||||||
| Net credit losses | -232 | -454 | -212 | -297 | -151 | -108 | 10 | 162 | -1,195 | -87 |
| Operating profit | -53 | -975 | -56 | -211 | -89 | -24 | 75 | 258 | -1,295 | 220 |
Baltic
| Baltic Latvia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 242 | 256 | 212 | 140 | 151 | 148 | 138 | 144 | 850 | 581 |
| Net fee and commission income | 56 | 53 | 55 | 48 | 46 | 47 | 48 | 47 | 212 | 188 |
| Net financial income | 11 | 11 | 8 | 2 | 6 | 6 | 8 | 11 | 32 | 31 |
| Net other income | -1 | -2 | -5 | 6 | 2 | 1 | 1 | -2 | 4 | |
| Total operating income | 308 | 318 | 270 | 196 | 205 | 202 | 195 | 202 | 1,092 | 804 |
| Staff costs | -62 | -56 | -49 | -44 | -48 | -47 | -46 | -60 | -211 | -201 |
| Other expenses | -109 | -102 | -93 | -101 | -80 | -68 | -69 | -99 | -405 | -316 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -10 | -415 | -8 | -9 | -8 | -7 | -8 | -9 | -442 | -32 |
| Total operating expenses | -181 | -573 | -150 | -154 | -136 | -122 | -123 | -168 | -1,058 | -549 |
| Profit before credit losses | 127 | -255 | 120 | 42 | 69 | 80 | 72 | 34 | 34 | 255 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -1 | -5 | -1 | -6 | |||||
| Net credit losses | -684 | -917 | -941 | -586 | -574 | -170 | 109 | 275 | -3,128 | -360 |
| Operating profit | -557 | -1,172 | -821 | -545 | -505 | -91 | 181 | 304 | -3,095 | -111 |
Baltic
Baltic Lithuania
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 283 | 257 | 190 | 184 | 185 | 169 | 167 | 188 | 914 | 709 |
| Net fee and commission income | 104 | 112 | 93 | 97 | 91 | 105 | 112 | 100 | 406 | 408 |
| Net financial income | 17 | 16 | 19 | 12 | 11 | 20 | 4 | 4 | 64 | 39 |
| Net other income | 7 | 6 | 6 | 5 | -1 | -3 | 19 | -1 | 24 | 14 |
| Total operating income | 411 | 391 | 308 | 298 | 286 | 291 | 302 | 291 | 1,408 | 1,170 |
| Staff costs | -97 | -84 | -70 | -60 | -67 | -63 | -59 | -49 | -311 | -238 |
| Other expenses | -126 | -153 | -123 | -152 | -116 | -129 | -132 | -117 | -554 | -494 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -10 | -1,234 | -4 | -6 | -8 | -8 | -7 | -219 | -1,254 | -242 |
| Total operating expenses | -233 | -1,471 | -197 | -218 | -191 | -200 | -198 | -385 | -2,119 | -974 |
| Profit before credit losses | 178 | -1,080 | 111 | 80 | 95 | 91 | 104 | -94 | -711 | 196 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | 2 | -5 | 3 | -16 | -16 | |||||
| Net credit losses | -786 | -1,270 | -1,489 | -1,701 | -706 | -173 | 154 | 299 | -5,246 | -426 |
| Operating profit | -606 | -2,355 | -1,375 | -1,637 | -611 | -82 | 258 | 205 | -5,973 | -230 |
Other and eliminations
| Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net interest income | 155 | 82 | -295 | -561 | -272 | 12 | 347 | 449 | -619 | 536 |
| Net fee and commission income | 85 | 100 | 190 | 120 | 245 | 259 | 264 | 214 | 495 | 982 |
| Net financial income | -182 | -145 | -145 | 89 | -176 | -479 | -109 | -240 | -383 | -1,004 |
| Net life insurance income | -181 | -202 | -250 | -213 | -307 | -337 | -325 | -326 | -846 | -1,295 |
| Net other income | 168 | 1,573 | -217 | 453 | 107 | -24 | -113 | 222 | 1,977 | 192 |
| Total operating income | 45 | 1,408 | -717 | -112 | -403 | -569 | 64 | 319 | 624 | -589 |
| Staff costs | -1,319 | -1,187 | -1,135 | -1,008 | -1,016 | -1,059 | -1,092 | -1,028 | -4,649 | -4,195 |
| Other expenses | 945 | 968 | 817 | 480 | 629 | 711 | 674 | 724 | 3,210 | 2,738 |
| Depreciation, amortisation and impairment of | ||||||||||
| tangible and intangible assets | -743 | -226 | -115 | -168 | -148 | -144 | -136 | -134 | -1,252 | -562 |
| Restructuring costs | -755 | -9 | -764 | |||||||
| Total operating expenses | -1,117 | -445 | -433 | -696 | -535 | -492 | -1,309 | -447 | -2,691 | -2,783 |
| Profit before credit losses | -1,072 | 963 | -1,150 | -808 | -938 | -1,061 | -1,245 | -128 | -2,067 | -3,372 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -6 | -4 | -2 | 2 | -4 | -7 | -8 | ||
| Net credit losses | -127 | -205 | -259 | -197 | -81 | -70 | 3 | -81 | -788 | -229 |
| Operating profit | -1,199 | 758 | -1,410 | -1,011 | -1,023 | -1,133 | -1,240 | -213 | -2,862 | -3,609 |
By geography
Sweden SEK m Q 1 2009 Q 2 2009 Q 3 2009 Q4 2009 Q1 2010 Q 2 2010 Q 3 2010 Q4 2010 Full year 2009 Full year 2010 Total operating income 5,674 7,539 4,992 4,891 4,823 5,191 4,933 5,671 23,096 20,618 Total operating expenses -4,412 -4,839 -3,015 -2,935 -3,484 -3,734 -3,409 -3,670 -15,201 -14,297 Profit before credit losses 1,262 2,700 1,977 1,956 1,339 1,457 1,524 2,001 7,895 6,321 Gains less losses on disposals of tangible and intangible assets Net credit losses -285 -451 -139 -260 -192 -13 3 -126 -1,135 -328 Operating profit 977 2,249 1,838 1,696 1,147 1,444 1,527 1,875 6,760 5,993
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 | Full year | Full year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 937 | 966 | 896 | 850 | 726 | 721 | 649 | 749 | 3,649 | 2,845 |
| Total operating expenses | -306 | -372 | -393 | -236 | -335 | -305 | -301 | -374 | -1,307 | -1,315 |
| Profit before credit losses | 631 | 594 | 503 | 614 | 391 | 416 | 348 | 375 | 2,342 | 1,530 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | ||||||||||
| Net credit losses | -72 | -73 | -44 | -28 | -51 | -37 | -24 | -31 | -217 | -143 |
| Operating profit | 559 | 521 | 459 | 586 | 340 | 379 | 324 | 344 | 2,125 | 1,387 |
| Denmark | ||||||||||
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Full year | Full year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 801 | 798 | 752 | 785 | 724 | 842 | 731 | 723 | 3,136 | 3,020 |
| Total operating expenses | -399 | -453 | -368 | -323 | -380 | -422 | -364 | -440 | -1,543 | -1,606 |
| Profit before credit losses | 402 | 345 | 384 | 462 | 344 | 420 | 367 | 283 | 1,593 | 1,414 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | ||||||||||
| Net credit losses | -45 | -36 | -30 | -70 | -26 | -22 | -31 | -37 | -181 | -116 |
| Operating profit | 357 | 309 | 354 | 392 | 318 | 398 | 336 | 246 | 1,412 | 1,298 |
| Finland | ||||||||||
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Full year | Full year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 372 | 201 | 246 | 374 | 254 | 350 | 319 | 349 | 1,193 | 1,272 |
| Total operating expenses | -99 | -159 | -120 | -196 | -101 | -158 | -150 | -183 | -574 | -592 |
| Profit before credit losses | 273 | 42 | 126 | 178 | 153 | 192 | 169 | 166 | 619 | 680 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -1 | ||||||||
| Net credit losses | -12 | -5 | -8 | -2 | -3 | -10 | -2 | -27 | -15 | |
| Operating profit | 261 | 37 | 118 | 176 | 150 | 182 | 168 | 164 | 592 | 664 |
| Germany* | ||||||||||
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Full year | Full year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 793 | 899 | 692 | 735 | 669 | 787 | 742 | 760 | 3,119 | 2,958 |
| Total operating expenses | -520 | -486 | -493 | -563 | -475 | -486 | -1,236 | -500 | -2,062 | -2,697 |
| Profit before credit losses | 273 | 413 | 199 | 172 | 194 | 301 | -494 | 260 | 1,057 | 261 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -3 | -2 | 29 | -4 | 27 | ||||
| Net credit losses | -36 | -87 | -93 | -90 | -41 | -35 | -24 | -43 | -306 | -143 |
| Operating profit | 237 | 326 | 105 | 79 | 153 | 266 | -520 | 246 | 747 | 145 |
*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 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 370 | 319 | 343 | 388 | 315 | 299 | 283 | 290 | 1,420 | 1,187 |
| Total operating expenses | -202 | -439 | -167 | -267 | -197 | -157 | -153 | -125 | -1,075 | -632 |
| Profit before credit losses | 168 | -120 | 176 | 121 | 118 | 142 | 130 | 165 | 345 | 555 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | 1 | 1 | 1 | ||||||
| Net credit losses | -232 | -454 | -212 | -297 | -151 | -108 | 10 | 162 | -1,195 | -87 |
| Operating profit | -64 | -575 | -35 | -176 | -33 | 34 | 140 | 328 | -850 | 469 |
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 | Full year | Full year | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 467 | 453 | 436 | 313 | 297 | 236 | 260 | 273 | 1,669 | 1,066 |
| Total operating expenses | -209 | -208 | -168 | -180 | -141 | -137 | -140 | -183 | -765 | -601 |
| Profit before credit losses | 258 | 245 | 268 | 133 | 156 | 99 | 120 | 90 | 904 | 465 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | -1 | -1 | -5 | -1 | -6 | |||||
| Net credit losses | -684 | -917 | -941 | -586 | -574 | -170 | 109 | 275 | -3,128 | -360 |
| Operating profit | -426 | -673 | -673 | -453 | -418 | -72 | 229 | 360 | -2,225 | 99 |
| Lithuania | Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Full year | Full year |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 545 | 430 | 393 | 313 | 322 | 357 | 351 | 350 | 1,681 | 1,380 |
| Total operating expenses | -265 | -839 | -225 | -292 | -211 | -224 | -223 | -408 | -1,621 | -1,066 |
| Profit before credit losses | 280 | -409 | 168 | 21 | 111 | 133 | 128 | -58 | 60 | 314 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | 2 | -5 | 2 | -16 | -17 | |||||
| Net credit losses | -786 | -1,270 | -1,489 | -1,705 | -706 | -173 | 154 | 299 | -5,250 | -426 |
| Operating profit | -504 | -1,684 | -1,319 | -1,700 | -595 | -40 | 282 | 241 | -5,207 | -112 |
| Goodwill impairment affected operating expenses and profit by SEK 0.6bn in Q2 2009. |
Other countries and eliminations
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 783 | 911 | 347 | 571 | 605 | 441 | 614 | 873 | 2,612 | 2,533 |
| Total operating expenses | 19 | -442 | -243 | -384 | -307 | -284 | -255 | -299 | -1,050 | -1,145 |
| Profit before credit losses | 802 | 469 | 104 | 187 | 298 | 157 | 359 | 574 | 1,562 | 1,388 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | 30 | 1 | -5 | -4 | -2 | 3 | -4 | 26 | -7 | |
| Net credit losses | -169 | -146 | -250 | -26 | -69 | -71 | -1 | -78 | -591 | -219 |
| Operating profit | 633 | 353 | -145 | 156 | 225 | 84 | 361 | 492 | 997 | 1,162 |
SEB Group Total
| Q 1 | Q 2 | Q 3 | Q4 | Q1 | Q 2 | Q 3 | Q4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total operating income | 10,742 | 12,516 | 9,097 | 9,220 | 8,735 | 9,224 | 8,882 | 10,038 | 41,575 | 36,879 |
| Total operating expenses | -6,393 | -8,237 | -5,192 | -5,376 | -5,631 | -5,907 | -6,231 | -6,182 | -25,198 | -23,951 |
| Profit before credit losses | 4,349 | 4,279 | 3,905 | 3,844 | 3,104 | 3,317 | 2,651 | 3,856 | 16,377 | 12,928 |
| Gains less losses on disposals of tangible and | ||||||||||
| intangible assets | 2 | 23 | 3 | -24 | -4 | -3 | 21 | 4 | 14 | |
| Net credit losses | -2,321 | -3,439 | -3,206 | -3,064 | -1,813 | -639 | 196 | 419 | -12,030 | -1,837 |
| Operating profit | 2,030 | 863 | 702 | 756 | 1,287 | 2,675 | 2,847 | 4,296 | 4,351 | 11,105 |
Net interest income
SEB Group, SEK m
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Interest income | 18,584 | 15,090 | 12,901 | 11,529 | 11,307 | 11,337 | 11,744 | 11,653 | 58,104 | 46,041 |
| Interest expense | -13,096 | -10,061 | -8,704 | -8,197 | -7,765 | -7,575 | -7,564 | -7,127 | -40,058 | -30,031 |
| Net interest income | 5,488 | 5,029 | 4,197 | 3,332 | 3,542 | 3,762 | 4,180 | 4,526 | 18,046 | 16,010 |
NII specification and development
SEB Group, SEK m
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | |
| Start | 5,070 | 5,488 | 5,029 | 4,197 | 3,332 | 3,542 | 3,762 | 4,180 |
| Lending volume | 77 | 5 | -139 | -74 | -6 | 11 | -41 | 73 |
| Lending margin | 186 | 155 | 109 | 27 | -44 | 5 | 71 | -71 |
| Deposit volume | 44 | -23 | -48 | -10 | -16 | 11 | 8 | 15 |
| Deposit margin | -269 | -102 | -233 | -136 | -102 | -46 | 46 | 95 |
| Funding & other | 380 | -495 | -520 | -673 | 377 | 238 | 333 | 234 |
| Sum | 5,488 | 5,029 | 4,197 | 3,332 | 3,542 | 3,762 | 4,180 | 4,526 |
Restated for Retail Germany divestment.
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 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Issue of securities | 35 | 168 | 99 | 199 | 45 | 124 | 20 | 168 | 501 | 357 |
| Secondary market | 491 | 639 | 525 | 519 | 426 | 419 | 374 | 546 | 2,174 | 1,765 |
| Custody and mutual funds | 1,289 | 1,380 | 1,427 | 1,560 | 1,667 | 1,805 | 1,675 | 1,920 | 5,656 | 7,067 |
| Securities commissions | 1,815 | 2,187 | 2,051 | 2,278 | 2,138 | 2,348 | 2,069 | 2,634 | 8,331 | 9,189 |
| Payments | 403 | 407 | 408 | 415 | 394 | 408 | 387 | 372 | 1,633 | 1,561 |
| Card fees | 1,027 | 1,074 | 1,034 | 1,068 | 989 | 1,038 | 1,021 | 944 | 4,203 | 3,992 |
| Payment commissions | 1,430 | 1,481 | 1,442 | 1,483 | 1,383 | 1,446 | 1,408 | 1,316 | 5,836 | 5,553 |
| Advisory | 118 | 160 | 157 | 215 | 64 | 96 | 185 | 137 | 650 | 482 |
| Lending | 335 | 351 | 356 | 351 | 336 | 448 | 440 | 462 | 1,393 | 1,686 |
| Deposits | 28 | 27 | 27 | 26 | 26 | 26 | 25 | 26 | 108 | 103 |
| Guarantees | 95 | 99 | 114 | 105 | 112 | 108 | 103 | 105 | 413 | 428 |
| Derivatives | 159 | 153 | 130 | 114 | 134 | 157 | 110 | 117 | 556 | 518 |
| Other | 170 | 176 | 161 | 201 | 148 | 207 | 179 | 178 | 708 | 712 |
| Other commissions | 905 | 966 | 945 | 1,012 | 820 | 1,042 | 1,042 | 1,025 | 3,828 | 3,929 |
| Total commission income | 4,150 | 4,634 | 4,438 | 4,773 | 4,341 | 4,836 | 4,519 | 4,975 | 17,995 | 18,671 |
| Securities commissions | -226 | -183 | -241 | -194 | -290 | -297 | -288 | -341 | -844 | -1,216 |
| Payment commissions | -630 | -594 | -588 | -601 | -587 | -609 | -599 | -450 | -2,413 | -2,245 |
| Other commissions | -350 | -366 | -346 | -391 | -270 | -257 | -245 | -278 | -1,453 | -1,050 |
| Commission expense | -1,206 | -1,143 | -1,175 | -1,186 | -1,147 | -1,163 | -1,132 | -1,069 | -4,710 | -4,511 |
| Securities commissions | 1,589 | 2,004 | 1,810 | 2,084 | 1,848 | 2,051 | 1,781 | 2,293 | 7,487 | 7,973 |
| Payment commissions | 800 | 887 | 854 | 882 | 796 | 837 | 809 | 866 | 3,423 | 3,308 |
| Other commissions | 555 | 600 | 599 | 621 | 550 | 785 | 797 | 747 | 2,375 | 2,879 |
| Net fee and commission income | 2,944 | 3,491 | 3,263 | 3,587 | 3,194 | 3,673 | 3,387 | 3,906 | 13,285 | 14,160 |
Net financial income
SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Equity instruments and related derivatives | 95 | -166 | -40 | 47 | 138 | 334 | 188 | -31 | -64 | 629 |
| Debt instruments and related derivatives | 58 | 568 | -33 | 210 | 327 | 205 | 17 | -70 | 803 | 479 |
| Currency related | 1,041 | 1,127 | 1,059 | 684 | 495 | 506 | 500 | 605 | 3,911 | 2,106 |
| Other financial instruments | 3 | -2 | -12 | 7 | 2 | -14 | 20 | 4 | -4 | 12 |
| Impairments | -64 | -56 | -29 | -9 | -12 | -54 | 2 | 4 | -158 | -60 |
| Net financial income | 1,133 | 1,471 | 945 | 939 | 950 | 977 | 727 | 512 | 4,488 | 3,166 |
Note that Net financial income does not reflect the full income from the Trading operations which distribution can be found on page 49.
Fee and commission income
SEB Group
Gross quarterly development Q1 2006 – Q4 2010, SEK m
Impact from exchange rate fluctuations
| SEK m | Q4-10/Q4-09 | Q4-10/Q3-10 | YTD-10/YTD-09 |
|---|---|---|---|
| Total income | -483 | -99 | -1,538 |
| Total expenses | 291 | 59 | 983 |
| Net credit losses | -78 | -8 | 142 |
| Operating profit | -272 | -49 | -415 |
| SEK bn | Dec-10/Dec-09 | ||
| Loans to the public | -75 | ||
| Deposits from the public | -53 | ||
| RWA - Basel II | -45 | ||
| Total assets | -154 | ||
Expenses
Staff costs - SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Salaries etc | -3,243 | -3,220 | -2,790 | -2,152 | -2,946 | -3,120 | -2,923 | -3,131 | -11,405 | -12,120 |
| Redundancies | -124 | -42 | -10 | -132 | -32 | -53 | -22 | -28 | -308 | -135 |
| Pensions | -390 | -383 | -341 | -328 | -297 | -271 | -293 | -232 | -1,442 | -1,093 |
| Other staff costs | -163 | -154 | -141 | -173 | -163 | -172 | -154 | -167 | -631 | -656 |
| Staff costs* | -3,920 | -3,799 | -3,282 | -2,785 | -3,438 | -3,616 | -3,392 | -3,558 | -13,786 | -14,004 |
*all items include social charges
Other expenses - SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Costs for premises | -414 | -420 | -408 | -442 | -419 | -403 | -414 | -423 | -1,684 | -1,659 |
| Data costs | -680 | -674 | -640 | -777 | -701 | -865 | -741 | -1,042 | -2,771 | -3,349 |
| Travel and entertainment | -92 | -106 | -83 | -148 | -92 | -128 | -98 | -182 | -429 | -500 |
| Consultants | -188 | -193 | -195 | -363 | -206 | -310 | -274 | -345 | -939 | -1,135 |
| Marketing | -118 | -119 | -127 | -153 | -94 | -139 | -118 | -192 | -517 | -543 |
| Information services | -109 | -100 | -100 | -104 | -106 | -106 | -109 | -109 | -413 | -430 |
| Other operating costs | 136 | 18 | -141 | -166 | 76 | 75 | 327 | 13 | 312 | |
| Other expenses | -1,465 | -1,612 | -1,535 | -2,128 | -1,784 | -1,875 | -1,679 | -1,966 | -6,740 | -7,303 |
Balance sheet structure & funding
Activity based balance sheet
| Assets | Dec | Dec |
|---|---|---|
| SEK m Cash and cash balances with central banks |
2009 36,589 |
2010 46,488 |
| Lending Repos |
218,700 42,324 |
132,846 30,885 |
| Reclassified bonds | 70,436 | 40,457 |
| Loans to credit institutions | 331,460 | 204,188 |
| Public | 100,661 | 76,109 |
| Private Individuals | 460,204 | 388,263 |
| Corporate | 510,431 | 508,835 |
| Repos | 61,638 | 63,449 |
| Reclassifed bonds | 54,903 | 38,223 |
| Loans to the public | 1,187,837 | 1,074,879 |
| Debt instruments | 148,521 | 165,516 |
| Equity instruments | 39,403 | 56,275 |
| Derivatives | 147,462 | 131,058 |
| Insurance assets | 246,255 | 264,897 |
| Financial assets at fair value | 581,641 | 617,746 |
| Debt instruments | 85,538 | 64,135 |
| Other | 2,410 | 2,835 |
| Available-for-sale financial assets | 87,948 | 66,970 |
| Assets held for sale* | 596 | 74,951 |
| Tangible and intangible assets | 27,770 | 27,035 |
| Other assets | 54,386 | 67,564 |
| Total assets | 2,308,227 | 2,179,821 |
| Liabilities SEK m |
Dec 2009 |
Dec 2010 |
| Central banks | 122,413 | 31,714 |
| Credit institutions | 244,572 | 165,105 |
| Repos | 30,448 | 15,805 |
| Deposits from credit institutions | 397,433 | 212,624 |
| Public | 46,802 | 54,866 |
| Private Individuals | 214,819 | 175,933 |
| Corporate | 509,313 | 470,557 |
| Repos | 30,154 | 10,185 |
| Deposits and borrowing from the public | 801,088 | 711,541 |
| Liabilities to policyholders | 249,009 | 263,970 |
| CP/CD | 93,381 | 180,521 |
| Long term debt | 362,662 | 349,962 |
| Debt securities | 456,043 | 530,483 |
| Debt instruments | 47,002 | 44,798 |
| Equity instruments | 14,527 | 33,670 |
| Derivatives | 129,911 | 122,222 |
| Financial liabilities at fair value | 191,440 | 200,690 |
| Liabilities held for sale* | 165 | 48,339 |
| Other liabilities | 77,017 | 87,079 |
| Subordinated liabilities | 36,363 | 25,552 |
| Total liabilities | 2,208,558 | 2,080,278 |
| Total equity Total liabilities and equity |
99,669 2,308,227 |
99,543 2,179,821 |
* German Retail Operations
A strong balance sheet structure, December 2010 Funding structure by product
SEB Group, SEK 1,402bn, Dec 2010
Funding raised with original maturity > 1 year, SEK bn
| Full year | Full year | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|---|
| Instrument | 2008 | 2009 | 2010 | 2010 | 2010 | 2010 | 2010 |
| Yankee CD | 5.9 | 3.1 | 0.0 | 1.2 | 1.4 | 0.3 | 2.9 |
| Senior unsecured SEB AG | 2.0 | 5.2 | 0.1 | 0.0 | 0.0 | 0.3 | 0.4 |
| Senior unsecured SEB AB | 37.4 | 60.4 | 3.7 | 0.0 | 6.9 | 3.4 | 13.9 |
| Structured bonds | 13.4 | 8.3 | 1.1 | 1.8 | 0.3 | 0.0 | 3.2 |
| Covered bonds SEB AG | 29.7 | 24.4 | 3.7 | 0.2 | 6.8 | 0.0 | 10.7 |
| Covered bonds SEB AB | 72.9 | 25.7 | 0.0 | 22.9 | 16.6 | 31.5 | 71.0 |
| Hybrid tier 1 | 4.7 | 3.3 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total | 166.0 | 130.4 | 8.6 | 26.1 | 31.8 | 35.5 | 102.1 |
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.
Long-term funding Maturity profile, Dec 2010
By product, SEK bn
| Product | <1Y | 1-2Y | 2-3Y | 3-4Y | 4-5Y | 5-7Y | 7-10Y | >10Y | Total |
|---|---|---|---|---|---|---|---|---|---|
| Subordinated debt | 2.4 | 4.5 | 0.0 | 2.7 | 8.1 | 4.5 | 0.0 | 1.2 | 23 |
| Senior unsecured | 39.5 | 25.5 | 7.9 | 22.8 | 8.8 | 7.3 | 5.1 | 2.1 | 119 |
| Covered bonds non SEK, SEB AB | 22.4 | 0.0 | 10.1 | 8.9 | 9.7 | 8.9 | 0.2 | 0.2 | 61 |
| Covered bonds SEK, SEB AB | 32.6 | 34.7 | 27.5 | 16.1 | 18.8 | 0.0 | 0.0 | 8.4 | 138 |
| Mortgage pfandbriefe, SEB AG | 1.4 | 4.4 | 3.3 | 1.1 | 1.9 | 3.9 | 9.8 | 5.8 | 32 |
| Total | 98 | 69 | 49 | 52 | 47 | 25 | 15 | 18 | 373 |
Long-term funding Maturity profile, Dec 2010
By currency, SEK bn
Loan to deposit ratio excl repos and reclassified bonds
Total loans and deposits
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK bn | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| Loans to the public | 1,317 | 1,305 | 1,207 | 1,188 | 1,204 | 1,226 | 1,089 | 1,075 |
| Less repos | 74 | 96 | 68 | 62 | 103 | 133 | 89 | 63 |
| Less reclassified bonds | 70 | 67 | 58 | 55 | 48 | 46 | 41 | 38 |
| Loans adjusted for repos and reclassified bonds | 1,174 | 1,142 | 1,081 | 1,072 | 1,053 | 1,047 | 958 | 973 |
| Deposits and borrow from the public | 836 | 823 | 753 | 801 | 740 | 759 | 717 | 712 |
| Less repos | 13 | 26 | 22 | 30 | 21 | 22 | 24 | 10 |
| Deposits adjusted for repos | 822 | 798 | 731 | 771 | 719 | 737 | 693 | 701 |
| Loan to deposit ratio excl reclassified bonds and repos |
143% | 143% | 148% | 139% | 146% | 142% | 138% | 139% |
SEB AB Covered bonds
| Characteristics of the Cover Pool December 2010 |
||
|---|---|---|
| Loans originated by | Skandinaviska Enskilda Banken AB (publ) | |
| Pool type / Pool notional | Dynamic / SEK 297bn | |
| Type of loans | 100% residential Swedish mortgages Single family Tenant owned apartments Multi family |
62% 24% 14% |
| Geographic loan distribution | A concentration to urban areas 67% in the three largest cities |
|
| Substitute assets | No substitute assets are included | |
| Number of loans / Number of borrowers | 511 K / 333 K | |
| WA loan balance | SEK 582 K | |
| WA LTV | 45% | |
| LTV distribution | 0 <=40% >40<=50% >50<=60% >60<=70% >70<=75% |
47% 14% 12% 11% 17% |
| Interest rate type | Floating rate Fixed reset <2yrs Fixed rate reset 2yrs <5yrs Fixed rate reset => 5yrs |
71% 17% 10% 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 | 0.0882% | |
| Net credit losses ( = aggregated net of write-backs, write-offs and gross provisions) | 0.0082% | |
| Foreclosure | 0.0151% | |
| Characteristics of the Covered Bonds |
| Rating | Aaa by Moody's |
|---|---|
| Notional amount outstanding | SEK 207bn |
| Overcollateralization | 43% |
| Currencies | 71% SEK 29% non-SEK |
Capital adequacy and RWA
Capital adequacy, SEB Group
SEK bn
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 | |
|---|---|---|---|---|---|---|---|---|
| Start | 818 | 831 | 790 | 747 | 730 | 723 | 714 | 711 |
| Migration | 18 | 8 | 5 | 4 | 3 | 1 | 1 | -1 |
| FX effects (credit risk) | 10 | -10 | -29 | 5 | -16 | 0 | -24 | -5 |
| Market risk and operational risk | -1 | 5 | 3 | 1 | 13 | -11 | 8 | 1 |
| Other | -14 | -44 | -22 | -27 | -7 | 1 | 12 | 10 |
| End | 831 | 790 | 747 | 730 | 723 | 714 | 711 | 716 |
SEB Fact Book Annual Accounts 2010 30
Capital base of the SEB financial group of undertakings
| 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| Total equity according to balance sheet | 83,729 | 98,744 | 98,801 | 98,978 | 99,669 | 99,522 | 98,214 | 97,105 | 99,543 |
| ./. Dividend (excl repurchased shares) | 0 | 0 | 0 | 0 | -2,193 | -2,743 | -1,097 | -1,646 | -3,291 |
| ./. Investments outside the financial group of undertakings | -76 | -76 | -74 | -70 | -47 | -39 | -36 | -34 | -40 |
| ./. Other deductions outside the financial group of undertakings | -2,878 | -3,600 | -2,006 | -2,198 | -2,570 | -2,747 | -2,037 | -2,261 | -2,688 |
| = Total equity in the capital adequacy | 80,775 | 95,068 | 96,721 | 96,710 | 94,859 | 93,993 | 95,044 | 93,164 | 93,524 |
| Adjustment for hedge contracts | -1,395 | -1,326 | -913 | -437 | -419 | -275 | -57 | 1,085 | 1,755 |
| Net provisioning amount for IRB-reported credit exposures | -1,133 | -527 | -604 | -374 | -297 | 0 | 0 | 0 | 0 |
| Unrealised value changes on available-for-sale financial assets | 3,062 | 3,215 | 2,798 | 1,310 | 1,096 | 870 | 1,511 | 1,348 | 1,724 |
| ./. Exposures where RWA is not calculated | 0 | -630 | -939 | -1,037 | -1,169 | -1,324 | -1,457 | -1,175 | -1,184 |
| ./. Goodwill (8) | -7,305 | -6,949 | -4,497 | -4,364 | -4,464 | -4,374 | -4,374 | -4,184 | -4,174 |
| ./. Other intangible assets | -2,090 | -2,308 | -2,459 | -2,465 | -2,616 | -2,570 | -2,683 | -2,633 | -2,564 |
| ./. Deferred tax assets | -1,822 | -1,509 | -784 | -1,152 | -1,609 | -1,636 | -1,768 | -1,441 | -1,694 |
| = Core Tier 1 capital | 70,092 | 85,034 | 89,323 | 88,191 | 85,381 | 84,684 | 86,216 | 86,164 | 87,387 |
| Tier 1 capital contribution (non-innovative) | 5,130 | 4,869 | 4,762 | 4,577 | 4,492 | ||||
| Tier 1 capital contribution (innovative) | 12,371 | 14,530 | 13,883 | 12,803 | 11,093 | 10,858 | 11,217 | 10,155 | 10,101 |
| = Tier 1 capital | 82,463 | 99,564 | 103,206 | 100,994 | 101,604 | 100,411 | 102,195 | 100,896 | 101,980 |
| Dated subordinated debt | 21,552 | 20,017 | 19,755 | 18,626 | 11,028 | 10,366 | 5,217 | 5,014 | 4,922 |
| ./. Deduction for remaining maturity | -2,242 | -735 | -679 | -641 | -658 | -554 | -383 | -368 | -361 |
| Perpetual subordinated debt | 14,421 | 12,408 | 8,057 | 7,275 | 7,386 | 7,137 | 7,738 | 7,050 | 4,152 |
| Net provisioning amount for IRB-reported credit exposures | -1,133 | -527 | -604 | -374 | -297 | 1,349 | 1,449 | 808 | 91 |
| Unrealised gains on available-for-sale financial assets | 1,221 | 354 | 300 | 494 | 642 | 615 | 504 | 484 | 511 |
| ./. Exposures where RWA is not calculated | 0 | -630 | -939 | -1,037 | -1,169 | -1,324 | -1,457 | -1,175 | -1,184 |
| ./. Investments outside the financial group of undertakings | -76 | -76 | -74 | -70 | -47 | -39 | -36 | -34 | -40 |
| = Tier 2 capital | 33,743 | 30,811 | 25,816 | 24,273 | 16,885 | 17,550 | 13,032 | 11,779 | 8,091 |
| ./. Investments in insurance companies | -10,620 | -10,620 | -10,621 | -10,600 | -10,601 | -10,500 | -10,500 | -10,500 | -10,500 |
| ./. Pension assets in excess of related liabilities | -863 | -1,396 | -1,113 | -864 | -543 | -1,119 | -869 | -652 | -422 |
| = Capital base | 104,723 | 118,359 | 117,288 | 113,803 | 107,345 | 106,342 | 103,858 | 101,523 | 99,149 |
Risk-weighted assets for the SEB financial group of undertakings
| 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| Credit risk, IRB reported capital requirements | |||||||||
| Institutions | 55,900 | 60,424 | 53,453 | 48,846 | 50,200 | 41,796 | 41,764 | 42,642 | 37,405 |
| Corporates | 464,481 | 485,107 | 455,126 | 424,469 | 405,072 | 402,200 | 407,121 | 403,427 | 403,128 |
| Securitisation positions | 7,144 | 7,503 | 10,766 | 9,531 | 10,590 | 9,489 | 8,563 | 7,900 | 6,337 |
| Retail mortgages | 57,835 | 58,432 | 59,150 | 60,981 | 65,021 | 64,892 | 67,596 | 66,386 | 65,704 |
| Other retail exposures | 2,175 | 12,045 | 11,420 | 10,753 | 10,792 | 10,839 | 10,299 | 10,014 | 9,826 |
| Other exposure classes | 4,811 | 2,038 | 2,116 | 2,025 | 1,638 | 1,557 | 1,548 | 1,514 | 1,511 |
| Total for credit risk, IRB approach | 592,346 | 625,549 | 592,031 | 556,605 | 543,313 | 530,773 | 536,891 | 531,883 | 523,911 |
| Further capital requirements | |||||||||
| Credit risk, Standardised approach | 145,130 | 124,966 | 112,558 | 102,252 | 97,563 | 90,373 | 86,156 | 80,377 | 91,682 |
| Operational risk, Advanced Measurement approach | 38,499 | 38,733 | 43,583 | 43,440 | 39,459 | 39,793 | 39,814 | 45,440 | 44,568 |
| Foreign exchange rate risk | 7,678 | 7,670 | 9,016 | 6,610 | 7,957 | 11,981 | 11,577 | 16,754 | 15,995 |
| Trading book risks | 34,135 | 33,241 | 32,395 | 38,480 | 42,200 | 50,351 | 39,748 | 36,927 | 39,970 |
| Total | 817,788 | 830,159 | 789,583 | 747,387 | 730,492 | 723,271 | 714,186 | 711,381 | 716,126 |
| Summary | |||||||||
| Credit risk | 737,476 | 750,515 | 704,589 | 658,857 | 640,876 | 621,146 | 623,047 | 612,260 | 615,593 |
| Operational risk | 38,499 | 38,733 | 43,583 | 43,440 | 39,459 | 39,793 | 39,814 | 45,440 | 44,568 |
| Market risk | 41,813 | 40,911 | 41,411 | 45,090 | 50,157 | 62,332 | 51,325 | 53,681 | 55,965 |
| Total | 817,788 | 830,159 | 789,583 | 747,387 | 730,492 | 723,271 | 714,186 | 711,381 | 716,126 |
| Adjustment for flooring rules | |||||||||
| Addition according to transitional flooring | 168,246 | 66,495 | 59,591 | 58,732 | 64,685 | 88,537 | 110,276 | 86,102 | 83,672 |
| Total reported | 986,034 | 896,654 | 849,174 | 806,119 | 795,177 | 811,808 | 824,462 | 797,483 | 799,798 |
Specified information on the Capital base and requirements can be found in the report
Capital adequacy
| 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| Capital resources | |||||||||
| Core Tier 1 capital | 70,092 | 85,034 | 89,323 | 88,191 | 85,381 | 84,684 | 86,216 | 86,164 | 87,387 |
| Tier 1 capital | 82,463 | 99,564 | 103,206 | 100,994 | 101,604 | 100,411 | 102,195 | 100,896 | 101,980 |
| Capital base | 104,723 | 118,359 | 117,288 | 113,803 | 107,345 | 106,342 | 103,858 | 101,523 | 99,149 |
| Capital adequacy without transitional floor (Basel II) | |||||||||
| Capital requirement | 65,423 | 66,413 | 63,167 | 59,791 | 58,439 | 57,862 | 57,135 | 56,911 | 716,126 |
| Expressed as Risk-weighted assets | 817,789 | 830,159 | 789,583 | 747,387 | 730,492 | 723,271 | 714,186 | 711,381 | 57,290 |
| Core Tier 1 capital ratio | 8.6% | 10.2% | 11.3% | 11.8% | 11.7% | 11.7% | 12.1% | 12.1% | 12.2% |
| Tier 1 capital ratio | 10.1% | 12.0% | 13.1% | 13.5% | 13.9% | 13.9% | 14.3% | 14.2% | 14.2% |
| Total capital ratio | 12.8% | 14.3% | 14.9% | 15.2% | 14.7% | 14.7% | 14.5% | 14.3% | 13.8% |
| Capital base in relation to capital requirement | 1.60 | 1.78 | 1.86 | 1.90 | 1.84 | 1.84 | 1.82 | 1.78 | 1.73 |
| Capital adequacy including transitional floor | |||||||||
| Transition floor applied | 90% | 80% | 80% | 80% | 80% | 80% | 80% | 80% | 80% |
| Capital requirement | 78,883 | 71,732 | 67,934 | 64,490 | 63,614 | 64,945 | 65,957 | 63,799 | 799,798 |
| Expressed as Risk-weighted assets | 986,034 | 896,654 | 849,174 | 806,131 | 795,177 | 811,808 | 824,462 | 797,483 | 63,984 |
| Core Tier 1 capital ratio | 7.1% | 9.5% | 10.5% | 10.9% | 10.7% | 10.4% | 10.5% | 10.8% | 10.9% |
| Tier 1 capital ratio | 8.4% | 11.1% | 12.2% | 12.5% | 12.8% | 12.4% | 12.4% | 12.7% | 12.8% |
| Total capital ratio | 10.6% | 13.2% | 13.8% | 14.1% | 13.5% | 13.1% | 12.6% | 12.7% | 12.4% |
| Capital base in relation to capital requirement | 1.33 | 1.65 | 1.73 | 1.76 | 1.69 | 1.64 | 1.57 | 1.59 | 1.55 |
| Capital adequacy with risk weighting according to Basel I | |||||||||
| Capital requirement | 90,164 | 90,984 | 86,428 | 81,546 | 80,260 | 79,494 | 80,635 | 78,738 | 998,326 |
| Expressed as Risk-weighted assets | 1,127,054 | 1,137,300 | 1,080,347 | 1,019,329 | 1,003,250 | 993,680 | 1,007,939 | 984,225 | 79,866 |
| Core Tier 1 capital ratio | 6.2% | 7.5% | 8.3% | 8.7% | 8.5% | 8.5% | 8.6% | 8.8% | 8.8% |
| Tier 1 capital ratio | 7.3% | 8.8% | 9.6% | 9.9% | 10.1% | 10.1% | 10.1% | 10.3% | 10.2% |
| Total capital ratio | 9.3% | 10.4% | 10.9% | 11.2% | 10.7% | 10.7% | 10.3% | 10.3% | 9.9% |
| Capital base in relation to capital requirement | 1.16 | 1.30 | 1.36 | 1.40 | 1.34 | 1.34 | 1.29 | 1.29 | 1.24 |
IRB reported credit exposures (less repos and securities lending)
| 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|---|
| Average risk weight | 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| Institutions | 17.0% | 17.3% | 17.7% | 17.6% | 17.5% | 17.0% | 18.1% | 17.8% | 19.5% |
| Corporates | 57.3% | 59.3% | 59.1% | 59.1% | 57.8% | 58.5% | 57.7% | 59.1% | 57.0% |
| Securitisation positions | 10.6% | 12.2% | 19.3% | 18.6% | 22.6% | 22.6% | 22.5% | 22.4% | 20.6% |
| Retail mortgages | 16.5% | 16.3% | 16.2% | 16.7% | 17.2% | 16.8% | 17.1% | 17.2% | 16.9% |
| Other retail exposures | n/a | 39.9% | 38.7% | 37.9% | 38.5% | 39.1% | 38.6% | 38.7% | 38.2% |
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 Baa3/BBB-/A- | PerpNC5 | 5.5000% | Perpetual | 28-Nov-11 | 3-mth £L+ 184bps | GBP | 200 | ||
| 25-Dec-97 Baa3/BBB-/A- | PerpNC30 | 5.0000% | Perpetual | 28-Jan-28 | 6-mth ¥L+ 150bps | JPY | 15,000 | ||
| 26-Jun-95 Baa3/BBB-/A- | PerpNC20 | 4.4000% | Perpetual | 14-Nov-15 | 6-mth ¥L+ 200bps | JPY | 10,000 | ||
| Tier I Issues | |||||||||
| 19-Mar-04 | Ba2/BBB-/A- | PerpNC10 | 4.9580% | Perpetual | 25-Mar-14 | 3-mth \$L+ 182bps | USD | 407 | |
| 23-Mar-05 | Ba2/BBB-/A- | PerpNC10 | 5.4710% | Perpetual | 23-Mar-15 | 3-mth \$L+ 154bps | USD | 423 | |
| 1-Oct-09 | Ba2/BBB-/A- | PerpNC5 | 9.2500% | Perpetual | 31-Mar-15 | EUR | 500 | ||
| 17-Dec-07 | Ba2/BBB-/A- | PerpNC10 | 7.0922% | Perpetual | 21-Dec-17 | 3-mth € + 340 bps | EUR | 500 |
Volumes
Balance sheet
| 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| Cash and cash balances with central banks | 44,852 | 18,929 | 97,886 | 25,158 | 36,589 | 19,634 | 17,372 | 34,384 | 46,488 |
| Loans to credit institutions | 266,363 | 284,096 | 213,245 | 231,697 | 331,460 | 272,242 | 246,891 | 225,236 | 204,188 |
| Loans to the public | 1,296,777 | 1,317,189 | 1,304,683 | 1,206,833 | 1,187,837 | 1,203,833 | 1,226,476 | 1,088,736 | 1,074,879 |
| Financial assets at fair value * | 635,454 | 639,483 | 568,035 | 604,624 | 581,641 | 623,302 | 670,990 | 666,731 | 617,746 |
| Available-for-sale financial assets * | 163,115 | 105,011 | 98,014 | 88,138 | 87,948 | 70,954 | 65,988 | 66,937 | 66,970 |
| Held-to-maturity investments * | 1,997 | 1,236 | 1,845 | 1,793 | 1,332 | 1,303 | 1,500 | 1,461 | 1,451 |
| Assets held for sale | 79,280 | 74,951 | |||||||
| Investments in associates | 1,129 | 1,152 | 1,174 | 1,122 | 995 | 1,018 | 1,018 | 1,020 | 1,022 |
| Tangible and intangible assets | 29,511 | 29,965 | 27,900 | 27,432 | 27,770 | 27,206 | 27,565 | 26,998 | 27,035 |
| Other assets | 71,504 | 63,167 | 60,736 | 46,602 | 52,655 | 65,798 | 60,807 | 62,996 | 65,091 |
| Total assets | 2,510,702 | 2,460,228 | 2,373,518 | 2,233,399 | 2,308,227 | 2,285,290 | 2,318,607 | 2,253,779 | 2,179,821 |
| Deposits from credit institutions | 429,425 | 401,471 | 405,699 | 342,518 | 397,433 | 393,379 | 358,448 | 238,293 | 212,624 |
| Deposits and borrowing from the public | 841,034 | 835,603 | 823,359 | 752,966 | 801,088 | 739,907 | 759,347 | 717,005 | 711,541 |
| Liabilities to policyholders | 211,070 | 210,939 | 227,401 | 237,665 | 249,009 | 255,289 | 253,024 | 256,953 | 263,970 |
| Debt securities | 525,219 | 495,782 | 488,951 | 480,564 | 456,043 | 469,312 | 486,330 | 536,882 | 530,483 |
| Financial liabilities at fair value | 295,533 | 276,325 | 211,978 | 201,069 | 191,440 | 209,524 | 258,415 | 238,741 | 200,690 |
| Liabilities held for sale | 50,680 | 48,339 | |||||||
| Other liabilities | 71,565 | 89,051 | 72,220 | 76,855 | 75,149 | 80,747 | 70,867 | 86,732 | 85,665 |
| Provisions | 1,897 | 2,020 | 1,822 | 1,791 | 2,033 | 1,724 | 1,753 | 1,478 | 1,414 |
| Subordinated liabilities | 51,230 | 50,081 | 43,287 | 40,993 | 36,363 | 35,886 | 32,209 | 29,910 | 25,552 |
| Total equity | 83,729 | 98,956 | 98,801 | 98,978 | 99,669 | 99,522 | 98,214 | 97,105 | 99,543 |
| Total liabilities and equity | 2,510,702 | 2,460,228 | 2,373,518 | 2,233,399 | 2,308,227 | 2,285,290 | 2,318,607 | 2,253,779 | 2,179,821 |
| * Of which bonds and other interest bearing securities including derivatives. |
628,675 | 567,980 | 474,129 | 496,467 | 457,209 | 463,267 | 469,235 | 485,206 | 416,864 |
Intangible assets
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| Goodwill | 13,333 | 10,882 | 10,729 | 10,829 | 10,723 | 10,717 | 10,515 | 10,491 |
| Other intangibles | 2,565 | 2,712 | 2,702 | 2,847 | 2,841 | 2,945 | 2,879 | 2,801 |
| Deferred acquisition costs | 3,415 | 3,434 | 3,422 | 3,501 | 3,556 | 3,583 | 3,580 | 3,631 |
| Intangible assets | 19,313 | 17,027 | 16,854 | 17,177 | 17,121 | 17,245 | 16,974 | 16,923 |
Assets under management
SEK bn
| 2008 | 2009 | 2010 | |
|---|---|---|---|
| Assets under management, start of period | 1,370 | 1,201 | 1,356 |
| Inflow | 295 | 256 | 287 |
| Outflow | -261 | -209 | -232 |
| Net inflow of which: | 34 | 47 | 55 |
| Sweden | 25 | 30 | |
| Other Nordic | 6 | 2 | |
| Germany | 5 | 12 | |
| Baltic countries and Poland | 3 | 1 | |
| Other and Eliminations | 8 | 11 | |
| Acquisition/disposal net | 17 | -2 | -1 |
| Change in value | -220 | 109 | -11 |
| Assets under management, end of period | 1,201 | 1,356 | 1,399 |
| Of which, not eliminated: | |||
| Retail Banking | 74 | 86 | 91 |
| Wealth Management | 1,142 | 1,275 | 1,321 |
| Life | 346 | 449 | 461 |
Lending to the public*
| Q1 2008 |
Q2 2008 |
Q3** 2008 |
Q4** 2008 |
Q1** 2009 |
Q2** 2009 |
Q3** 2009 |
Q4** 2009 |
Q1** 2010 |
Q2** 2010 |
Q3** 2010 |
Q4** 2010 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Merchant Banking | 526 | 531 | 606 | 645 | 662 | 627 | 565 | 547 | 557 | 543 | 530 | 519 |
| Retail Banking | 381 | 402 | 411 | 421 | 421 | 433 | 436 | 446 | 450 | 458 | 385 | 397 |
| RB Sweden | 286 | 303 | 307 | 309 | 313 | 323 | 331 | 342 | 352 | 360 | 369 | 380 |
| RB Germany | 81 | 82 | 87 | 95 | 91 | 93 | 88 | 87 | 82 | 81 | - | - |
| RB Cards | 14 | 17 | 17 | 17 | 17 | 17 | 17 | 17 | 16 | 17 | 16 | 17 |
| Wealth Management | 31 | 29 | 28 | 28 | 29 | 30 | 28 | 27 | 29 | 29 | 29 | 31 |
| Life | - | - | - | - | - | - | - | - | - | - | - | - |
| Baltic | 137 | 143 | 150 | 165 | 161 | 152 | 137 | 131 | 119 | 113 | 106 | 102 |
| Baltic Estonia | 42 | 43 | 44 | 48 | 47 | 45 | 42 | 41 | 37 | 36 | 33 | 33 |
| Baltic Latvia | 35 | 36 | 37 | 41 | 40 | 38 | 33 | 32 | 29 | 27 | 26 | 24 |
| Baltic Lithuania | 60 | 64 | 69 | 76 | 74 | 69 | 62 | 58 | 53 | 50 | 47 | 45 |
| Other/Elim | 24 | 27 | 31 | 38 | 44 | 63 | 41 | 37 | 49 | 83 | 39 | 26 |
| SEB Group | 1,099 | 1,132 | 1,226 | 1,297 | 1,317 | 1,305 | 1,207 | 1,188 | 1,204 | 1,226 | 1,089 | 1,075 |
* After credit loss reserves
** Including re-classified bonds
Deposits from the public
| Q1 2008 |
Q2 2008 |
Q3 2008 |
Q4 2008 |
Q1 2009 |
Q2 2009 |
Q3 2009 |
Q4 2009 |
Q1 2010 |
Q2 2010 |
Q3 2010 |
Q4 2010 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Merchant Banking | 409 | 392 | 426 | 433 | 411 | 407 | 342 | 377 | 360 | 355 | 372 | 365 |
| Retail Banking | 192 | 196 | 200 | 211 | 207 | 210 | 203 | 206 | 199 | 205 | 166 | 175 |
| RB Sweden | 145 | 149 | 151 | 153 | 151 | 155 | 154 | 158 | 154 | 161 | 166 | 175 |
| RB Germany | 47 | 47 | 49 | 58 | 56 | 55 | 49 | 48 | 45 | 44 | - | - |
| RB Cards | - | - | - | - | - | - | - | - | - | - | - | - |
| Wealth Management | 54 | 56 | 52 | 48 | 53 | 54 | 51 | 47 | 50 | 55 | 50 | 47 |
| Life | - | - | - | - | - | - | - | - | - | - | - | - |
| Baltic | 65 | 68 | 69 | 76 | 73 | 68 | 65 | 64 | 60 | 59 | 56 | 57 |
| Baltic Estonia | 20 | 22 | 22 | 25 | 24 | 23 | 21 | 21 | 20 | 20 | 19 | 20 |
| Baltic Latvia | 17 | 18 | 17 | 19 | 18 | 16 | 14 | 14 | 14 | 14 | 13 | 12 |
| Baltic Lithuania | 28 | 28 | 30 | 32 | 31 | 29 | 30 | 29 | 26 | 25 | 24 | 25 |
| Other/Elim | 45 | 46 | 47 | 73 | 92 | 84 | 92 | 107 | 71 | 85 | 73 | 68 |
| SEB Group | 765 | 758 | 794 | 841 | 836 | 823 | 753 | 801 | 740 | 759 | 717 | 712 |
Credit portfolio, loan portfolio impaired loans by industry and geography
Credit portfolio by industry and geography*
| SEB Group, Dec 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 94,803 | 14,979 | 9,244 | 1,610 | 78 | 192 | 315 | 72,245 | 12,030 | 205,496 |
| Finance and insurance | 54,396 | 1,428 | 4,844 | 516 | 195 | 894 | 414 | 19,018 | 2,641 | 84,346 |
| Wholesale and retail | 31,983 | 796 | 897 | 194 | 2,155 | 3,168 | 7,338 | 12,288 | 2,678 | 61,497 |
| Transportation | 27,366 | 295 | 1,578 | 153 | 876 | 1,707 | 2,712 | 5,603 | 605 | 40,895 |
| Shipping | 31,209 | 200 | 778 | 121 | 545 | 194 | 255 | 14 | 4,383 | 37,699 |
| Business and household services | 80,894 | 853 | 5,569 | 489 | 2,123 | 1,554 | 2,190 | 26,396 | 1,392 | 121,460 |
| Construction | 11,326 | 108 | 590 | 255 | 945 | 1,377 | 1,228 | 3,291 | 478 | 19,598 |
| Manufacturing | 135,044 | 1,715 | 3,680 | 4,804 | 3,542 | 1,858 | 6,412 | 26,519 | 8,021 | 191,595 |
| Agriculture, forestry and fishing | 5,064 | 198 | 11 | 34 | 884 | 1,610 | 583 | 138 | 14 | 8,536 |
| Mining and quarrying | 12,662 | 2,295 | 287 | 27 | 116 | 112 | 454 | 472 | 16,425 | |
| Electricity, gas and water supply | 26,948 | 190 | 1,456 | 3,548 | 1,756 | 1,142 | 2,021 | 9,393 | 143 | 46,597 |
| Other | 24,818 | 739 | 2,808 | 871 | 311 | 291 | 339 | 3,151 | 3,969 | 37,297 |
| Corporates | 441,710 | 6,522 | 24,506 | 11,272 | 13,359 | 13,911 | 23,604 | 106,265 | 24,796 | 665,945 |
| Commercial | 67,318 | 171 | 1,296 | 523 | 5,833 | 3,481 | 11,040 | 45,984 | 682 | 136,328 |
| Multi-family | 82,234 | 1 | 162 | 2,168 | 18 | 26,080 | 110,663 | |||
| Property Management | 149,552 | 172 | 1,458 | 523 | 5,833 | 5,649 | 11,058 | 72,064 | 682 | 246,991 |
| Public Administration | 17,107 | 58 | 178 | 926 | 1,864 | 133 | 2,265 | 52,827 | 99 | 75,457 |
| Household mortgage | 291,812 | 3,034 | 14,521 | 8,713 | 19,161 | 62,172 | 2,634 | 402,047 | ||
| Other | 40,035 | 5,462 | 27,212 | 1,300 | 2,872 | 2,868 | 1,872 | 21,588 | 3,554 | 106,763 |
| Households | 331,847 | 5,462 | 30,246 | 1,300 | 17,393 | 11,581 | 21,033 | 83,760 | 6,188 | 508,810 |
| Credit portfolio | 1,035,019 | 27,193 | 65,632 | 15,631 | 38,527 | 31,466 | 58,275 | 387,161 | 43,795 | 1,702,699 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
SEB Group, Dec 2009
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Banks | 178,418 | 24,663 | 8,873 | 1,596 | 169 | 685 | 411 | 78,964 | 15,931 | 309,710 |
| Finance and insurance | 44,884 | 554 | 2,381 | 616 | 258 | 633 | 334 | 19,396 | 4,581 | 73,637 |
| Wholesale and retail | 31,563 | 1,668 | 1,741 | 215 | 3,135 | 4,975 | 9,482 | 13,962 | 4,532 | 71,273 |
| Transportation | 28,478 | 406 | 1,046 | 167 | 1,319 | 2,118 | 4,384 | 7,716 | 432 | 46,066 |
| Shipping | 29,178 | 302 | 1,515 | 135 | 923 | 236 | 292 | 37 | 4,515 | 37,133 |
| Business and household services | 82,473 | 650 | 3,407 | 196 | 2,498 | 1,820 | 2,973 | 17,560 | 1,044 | 112,621 |
| Construction | 9,473 | 79 | 411 | 427 | 1,392 | 1,814 | 1,970 | 4,381 | 238 | 20,185 |
| Manufacturing | 129,165 | 1,764 | 3,730 | 5,151 | 4,126 | 2,624 | 8,583 | 26,572 | 6,593 | 188,308 |
| Agriculture, forestry and fishing | 3,496 | 206 | 48 | 1,102 | 2,042 | 655 | 143 | 18 | 7,710 | |
| Mining and quarrying | 12,696 | 2,323 | 346 | 93 | 123 | 112 | 387 | 12 | 16,092 | |
| Electricity, gas and water supply | 28,878 | 207 | 1,112 | 4,950 | 2,947 | 1,064 | 2,467 | 7,722 | 119 | 49,466 |
| Other | 16,252 | 3,135 | 4,096 | 126 | 367 | 367 | 584 | 3,787 | 4,595 | 33,309 |
| Corporates | 416,536 | 8,971 | 21,810 | 12,329 | 18,160 | 17,816 | 31,836 | 101,663 | 26,679 | 655,800 |
| Commercial | 63,189 | 142 | 5,480 | 545 | 7,213 | 4,460 | 13,634 | 54,132 | 682 | 149,477 |
| Multi-family | 65,020 | 1 | 8 | 2,570 | 30 | 29,636 | 9 | 97,274 | ||
| Property Management | 128,209 | 143 | 5,488 | 545 | 7,213 | 7,030 | 13,664 | 83,768 | 691 | 246,751 |
| Public Administration | 23,254 | 105 | 272 | 660 | 2,238 | 287 | 2,445 | 65,378 | 64 | 94,703 |
| Household mortgage | 266,060 | 3,528 | 16,821 | 10,448 | 22,784 | 72,472 | 2,189 | 394,302 | ||
| Other | 40,198 | 5,951 | 29,771 | 1,541 | 3,652 | 3,586 | 2,517 | 24,973 | 2,974 | 115,163 |
| Households | 306,258 | 5,951 | 33,299 | 1,541 | 20,473 | 14,034 | 25,301 | 97,445 | 5,163 | 509,465 |
| Credit portfolio | 1,052,675 | 39,833 | 69,742 | 16,671 | 48,253 | 39,852 | 73,657 | 427,218 | 48,528 | 1,816,429 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
Loan portfolio by industry and geography*
| SEB Group, Dec 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 | 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.
| SEB Group, Dec 2009 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 118,428 | 20,797 | 1,464 | 422 | 163 | 655 | 241 | 60,762 | 11,409 | 214,341 |
| Finance and insurance | 20,303 | 249 | 622 | 109 | 53 | 628 | 42 | 12,973 | 4,043 | 39,022 |
| Wholesale and retail | 17,211 | 779 | 483 | 136 | 2,556 | 3,787 | 7,377 | 5,508 | 1,168 | 39,005 |
| Transportation | 22,153 | 153 | 621 | 2 | 1,171 | 1,867 | 3,929 | 1,393 | 379 | 31,668 |
| Shipping | 21,545 | 302 | 948 | 135 | 807 | 229 | 287 | 32 | 3,338 | 27,623 |
| Business and household services | 47,725 | 372 | 1,747 | 15 | 2,283 | 1,651 | 2,245 | 13,269 | 687 | 69,994 |
| Construction | 4,309 | 73 | 159 | 40 | 718 | 1,382 | 1,220 | 1,999 | 56 | 9,956 |
| Manufacturing | 52,461 | 946 | 1,096 | 3,819 | 3,070 | 2,204 | 6,931 | 9,250 | 2,273 | 82,050 |
| Agriculture, forestry and fishing | 2,613 | 36 | 38 | 1,053 | 1,924 | 619 | 98 | 9 | 6,390 | |
| Mining and quarrying | 7,870 | 38 | 346 | 89 | 106 | 102 | 8 | 1 | 8,560 | |
| Electricity, gas and water supply | 12,099 | 22 | 75 | 4,901 | 1,758 | 901 | 1,236 | 3,723 | 44 | 24,759 |
| Other | 12,785 | 760 | 3,984 | 79 | 355 | 362 | 565 | 3,866 | 3,713 | 26,469 |
| Corporates | 221,074 | 3,692 | 9,811 | 9,582 | 13,913 | 15,041 | 24,553 | 52,119 | 15,711 | 365,496 |
| Commercial | 55,130 | 142 | 3,142 | 535 | 7,033 | 4,388 | 13,131 | 47,530 | 681 | 131,712 |
| Multi-family | 57,756 | 1 | 2,421 | 25 | 26,755 | 9 | 86,967 | |||
| Property Management | 112,886 | 143 | 3,142 | 535 | 7,033 | 6,809 | 13,156 | 74,285 | 690 | 218,679 |
| Public Administration | 12,184 | 105 | 241 | 660 | 1,873 | 258 | 1,936 | 63,632 | 64 | 80,953 |
| Household mortgage | 247,378 | 3,528 | 16,803 | 10,443 | 22,383 | 67,264 | 2,189 | 369,988 | ||
| Other | 23,809 | 2,685 | 11,779 | 836 | 2,938 | 2,901 | 2,014 | 8,741 | 2,957 | 58,660 |
| Households | 271,187 | 2,685 | 15,307 | 836 | 19,741 | 13,344 | 24,397 | 76,005 | 5,146 | 428,648 |
| Loan portfolio | 735,759 | 27,422 | 29,965 | 12,035 | 42,723 | 36,107 | 64,283 | 326,803 | 33,020 | 1,308,117 |
| Repos, credit institutions | 42,324 | |||||||||
| Repos, general public | 61,594 | |||||||||
| Debt instruments | 125,339 | |||||||||
| Reserves | -18,077 | |||||||||
| Total lending | 1,519,297 |
* The geographical distribution is based on where the loan is booked.
Credit portfolio – corporates Credit portfolio – households
Geography based on SEB's operations
Credit portfolio by industry and geography*
* Incl. other
| SEB Group, Dec 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
| SEB Group, Dec 2009 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 174,521 | 25,286 | 10,424 | 3,319 | 169 | 685 | 411 | 78,964 | 15,931 | 309,710 |
| Corporates | 312,740 | 19,389 | 58,473 | 44,646 | 18,159 | 17,817 | 31,836 | 103,411 | 49,329 | 655,800 |
| Property Management | 113,670 | 143 | 12,567 | 7,898 | 7,213 | 7,030 | 13,664 | 83,768 | 798 | 246,751 |
| Public Administration | 23,254 | 105 | 272 | 660 | 2,238 | 287 | 2,445 | 65,378 | 64 | 94,703 |
| Households | 306,258 | 5,951 | 33,299 | 1,541 | 20,472 | 14,034 | 25,301 | 97,445 | 5,164 | 509,465 |
| Credit portfolio | 930,443 | 50,874 | 115,035 | 58,064 | 48,251 | 39,853 | 73,657 | 428,966 | 71,286 | 1,816,429 |
* Geography distribution is based on SEB's operations. Amounts before provisions for credit losses
Credit portfolio*
On & off balance, SEK bn
| Dec | Dec | Dec | Dec | Dec | |
|---|---|---|---|---|---|
| SEB Group | 2006 | 2007 | 2008 | 2009 | 2010 |
| Banks | 169 | 248 | 286 | 310 | 206 |
| Corporates | 484 | 571 | 782 | 656 | 666 |
| Property Management | 192 | 212 | 262 | 247 | 247 |
| Households | 374 | 434 | 486 | 509 | 509 |
| Public Administration | 97 | 88 | 119 | 94 | 75 |
| Total non-banks | 1,147 | 1,305 | 1,649 | 1,506 | 1,422 |
| Total | 1,316 | 1,553 | 1,935 | 1,816 | 1,628 |
| Dec | Dec | Dec | Dec | Dec | |
| SEB Group | 2006 | 2007 | 2008 | 2009 | 2010 |
| Lending ** | 937 | 1,112 | 1,362 | 1,308 | 1,183 |
| Contingent Liabilities | 324 | 365 | 442 | 406 | 430 |
| Derivative Instruments | 55 | 75 | 130 | 102 | 90 |
| Credit Portfolio | 1,316 | 1,552 | 1,934 | 1,816 | 1,703 |
* Before loan loss reserves, excluding repos & debt instruments
Baltic geographies
Credit portfolio
Asset quality
Rating of credit portfolio, Dec 2010
Credit loss level, % *
* Total operations
SEB Group – net credit losses, SEK m
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|---|---|---|---|---|---|
| Net credit losses, quarterly | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Net write-offs | -178 | -328 | -570 | -738 | -275 | -64 | -132 | -414 | -1,814 | -885 |
| Net specific provisions | -787 | -1,269 | -1,907 | -2,455 | -402 | -588 | 10 | 64 | -6,418 | -916 |
| Net collective provisions of which: |
-1,356 | -1,842 | -729 | 129 | -1,136 | 13 | 318 | 769 | -3,798 | -36 |
| Individually assessed loans | -924 | -1,293 | -199 | 580 | -738 | 214 | 407 | 782 | -1,836 | 665 |
| Portfolio assessed loans | -432 | -549 | -530 | -451 | -398 | -201 | -89 | -13 | -1,962 | -701 |
| Net credit losses, continuing operations | -2,321 | -3,439 | -3,206 | -3,064 | -1,813 | -639 | 196 | 419 | -12,030 | -1,837 |
Development of non-performing loans
SEK bn
Non-performing loans & reserves
SEB Group, SEK bn
| Dec | Mar | Jun | Sep | Dec | Mar | Jun | Sep | Dec | |
|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | |
| Individually assessed loans | |||||||||
| Impaired loans, gross | 11.4 | 13.0 | 16.7 | 18.4 | 21.3 | 19.6 | 19.2 | 18.1 | 17.2 |
| Specific reserves | 5.0 | 5.6 | 7.0 | 8.3 | 10.5 | 10.2 | 10.4 | 9.5 | 8.9 |
| Collective reserves | 2.8 | 3.7 | 5.0 | 4.9 | 4.4 | 4.9 | 4.4 | 3.8 | 3.0 |
| Off Balance sheet reserves | 0.3 | 0.4 | 0.3 | 0.3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Specific reserve ratio | 44% | 43% | 42% | 45% | 49% | 52% | 54% | 52% | 52% |
| Total reserve ratio | 69% | 72% | 72% | 72% | 70% | 77% | 77% | 73% | 69% |
| Portfolio assessed loans | |||||||||
| Loans past due > 60 days | 3.2 | 4.6 | 6.4 | 6.9 | 6.9 | 7.1 | 7.1 | 7.0 | 6.5 |
| Restructured loans | 0.3 | 0.5 | 0.6 | 0.5 | 0.5 | ||||
| Collective reserves | 1.4 | 1.8 | 2.4 | 2.8 | 3.3 | 3.5 | 3.7 | 3.6 | 3.6 |
| Reserve ratio | 44% | 41% | 37% | 40% | 45% | 46% | 48% | 48% | 51% |
| Non-performing loans | 14.6 | 17.5 | 23.1 | 25.3 | 28.6 | 27.2 | 26.9 | 25.6 | 24.3 |
| Total reserves | 9.5 | 11.5 | 14.6 | 16.4 | 18.6 | 19.1 | 19.0 | 17.4 | 16.0 |
| NPL coverage ratio | 65% | 66% | 63% | 65% | 65% | 70% | 71% | 68% | 66% |
| Non-performing loans / Lending | 0.9% | 1.1% | 1.5% | 1.7% | 1.9% | 1.8% | 1.8% | 1.8% | 1.8% |
Seized assets - SEB Group
| 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| Properties, vehicles and equipment | 106 | 311 | 621 | 428 | 217 | 239 | 241 | 582 | 647 |
| Shares | 50 | 50 | 63 | 62 | 62 | 59 | 54 | 55 | 56 |
| Total seized assets | 156 | 361 | 684 | 490 | 279 | 298 | 295 | 637 | 703 |
Impaired loans by industry and geography*
(Individually assessed loans)
| SEB Group, Dec 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 | 1,313 | |||
| 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 | 1,019 | |
| Manufacturing | 86 | 7 | 12 | 242 | 361 | 154 | 631 | 255 | 209 | 1,957 |
| Agriculture, forestry and fishing | 26 | 6 | 75 | 20 | 21 | 148 | ||||
| Mining and quarrying | 33 | 24 | 57 | |||||||
| Electricity, gas and water supply | 4 | 4 | ||||||||
| Other | 152 | 23 | 23 | 15 | 30 | 55 | 717 | 1,015 | ||
| Corporates | 435 | 155 | 42 | 246 | 636 | 1,331 | 2,419 | 867 | 1,039 | 7,170 |
| Commercial | 128 | 586 | 1,369 | 3,836 | 1,864 | 7,783 | ||||
| Multi-family | 70 | 305 | 325 | 700 | ||||||
| Property Management | 198 | 586 | 1,674 | 3,836 | 2,189 | 8,483 | ||||
| Public Administration | ||||||||||
| Household mortgage | 9 | 10 | 113 | 431 | 563 | |||||
| Other | 4 | 95 | 5 | 275 | 66 | 213 | 658 | |||
| Households | 9 | 4 | 105 | 5 | 275 | 113 | 497 | 213 | 1,221 | |
| Impaired loans | 981 | 163 | 147 | 246 | 1,227 | 3,280 | 6,368 | 3,554 | 1,252 | 17,218 |
| whereof Retail, SEB AG | -578 | |||||||||
| Impaired loans excl Retail, SEB AG | 16,640 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
| SEB Group, Dec 2009 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 339 | 2 | 1 | 342 | ||||||
| Finance and insurance | 2 | 3 | 5 | 1 | 28 | 39 | ||||
| Wholesale and retail | 100 | 150 | 212 | 757 | 367 | 1,586 | ||||
| Transportation | 43 | 54 | 123 | 1,074 | 3 | 1,297 | ||||
| Shipping | 8 | 8 | ||||||||
| Business and household services | 165 | 124 | 92 | 97 | 699 | 132 | 1,309 | |||
| Construction | 31 | 16 | 87 | 390 | 247 | 121 | 892 | |||
| Manufacturing | 176 | 369 | 322 | 808 | 415 | 431 | 2,521 | |||
| Agriculture, forestry and fishing | 30 | 29 | 95 | 42 | 1 | 197 | ||||
| Mining and quarrying | 1 | 1 | 26 | 4 | 32 | |||||
| Electricity, gas and water supply | 13 | 43 | 10 | 66 | ||||||
| Other | 189 | 22 | 163 | 1 | 96 | 420 | 891 | |||
| Corporates | 737 | 162 | 166 | 5 | 796 | 1,308 | 3,640 | 1,173 | 851 | 8,838 |
| Commercial | 113 | 1,119 | 1,743 | 4,746 | 2,530 | 9 | 10,260 | |||
| Multi-family | 48 | 369 | 450 | 867 | ||||||
| Property Management | 161 | 1,119 | 2,112 | 4,746 | 2,980 | 9 | 11,127 | |||
| Public Administration | ||||||||||
| Household mortgage | 12 | 41 | 649 | 702 | ||||||
| Other | 11 | 92 | 9 | 132 | 70 | 314 | ||||
| Households | 12 | 11 | 133 | 9 | 132 | 70 | 649 | 1,016 | ||
| Impaired loans | 1,249 | 175 | 299 | 5 | 1,924 | 3,552 | 8,456 | 4,803 | 860 | 21,323 |
* 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, Dec 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.
SEB Group, Dec 2009
| SEK m | Sweden Denmark Norway Finland Estonia | Latvia | Lithuania | Germany | Other | Total | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Corporates | 30 | 12 | 91 | 4 | 210 | 268 | 268 | 177 | 1,060 | |
| Household mortgage | 320 | 701 | 1,527 | 776 | 135 | 363 | 3,822 | |||
| Other | 528 | 343 | 398 | 96 | 129 | 387 | 174 | 2,055 | ||
| Households | 848 | 343 | 398 | 96 | 830 | 1,914 | 950 | 135 | 363 | 5,877 |
| Past due > 60 days | 878 | 355 | 489 | 100 | 1,040 | 2,182 | 1,218 | 135 | 540 | 6,937 |
* The geographical distribution is based on where the loan is booked.
Portfolio assessed loans*
Restructured loans
| SEB Group, Dec 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.
| SEB Group, Dec 2009 | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark Norway Finland Estonia | Latvia | Lithuania | Germany | Other | Total | ||
| Corporates | ||||||||
| Household mortgage | 19 | 122 | 170 | 311 | ||||
| Other | 1 | 1 | ||||||
| Households | 19 | 123 | 170 | 312 | ||||
| Restructured loans | 19 | 123 | 170 | 312 |
* The geographical distribution is based on where the loan is booked.
Baltic geographies – asset quality
| SEB Baltic – Net Credit Losses | Jan -Dec | % of | |||
|---|---|---|---|---|---|
| SEK m | Estonia | Latvia Lithuania | 2010 | Total | |
| Net Write-offs | -14 | -10 | -89 | -113 | 13% |
| Net Specific Provisions | -106 | -182 | -77 | -365 | 42% |
| Net Collective Provisions | 33 | -168 | -260 | -395 | 45% |
| of which: | |||||
| Individually assessed loans | 190 | 124 | 80 | 394 | -45% |
| Portfolio assessed loans | -157 | -292 | -340 | -789 | 90% |
| Net Credit Losses | -87 | -360 | -426 | -873 | 100% |
NPLs & reserves
Baltic geographies, Dec 2010, SEK m
By quarter
| Dec | Mar | Jun | Sep | Dec | Mar | Jun | Sep | Dec | |
|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | |
| Impaired loans, gross | 3,603 | 5,152 | 8,056 | 10,671 | 13,932 | 13,050 | 12,743 | 11,880 | 10,875 |
| Specific reserves | 1,344 | 1,852 | 2,668 | 4,305 | 6,632 | 6,634 | 6,759 | 6,060 | 5,502 |
| Collective reserves | 805 | 1,560 | 2,799 | 3,060 | 2,467 | 2,913 | 2,741 | 2,254 | 1,670 |
| Off balance sheet reserves | 0 | 4 | 48 | 50 | 82 | 87 | 86 | 73 | |
| Specific reserve ratio | 37% | 36% | 33% | 40% | 48% | 51% | 53% | 51% | 51% |
| Total reserve ratio | 60% | 66% | 68% | 69% | 65% | 73% | 74% | 70% | 66% |
| Portfolio assessed loans | |||||||||
| Loans past due > 60 days | 1,896 | 2,939 | 4,351 | 4,366 | 4,440 | 4,649 | 4,705 | 4,735 | 4,495 |
| Restructured loans | 0 | 0 | 0 | 0 | 312 | 450 | 555 | 505 | 502 |
| Collective reserves | 955 | 1,343 | 1,793 | 1,857 | 2,267 | 2,507 | 2,640 | 2,690 | 2,727 |
| Reserve ratio | 50% | 46% | 41% | 43% | 48% | 49% | 50% | 51% | 55% |
| Non-performing loans | 5,499 | 8,091 | 12,407 | 15,037 | 18,684 | 18,149 | 18,003 | 17,119 | 15,872 |
| Total reserves | 3,105 | 4,755 | 7,264 | 9,270 | 11,416 | 12,136 | 12,227 | 11,090 | 9,972 |
| NPL coverage ratio | 56% | 59% | 59% | 62% | 61% | 67% | 68% | 65% | 63% |
By country
| Estonia | Latvia | Lithuania | SEB Baltic | Dec 2009 | |
|---|---|---|---|---|---|
| Individually assessed loans | |||||
| Impaired loans, gross | 1,227 | 3,279 | 6,369 | 10,875 | 13,932 |
| Specific reserves | 811 | 1,612 | 3,079 | 5,502 | 6,632 |
| Collective reserves | 247 | 510 | 913 | 1,670 | 2,467 |
| Off balance sheet reserves | 2 | 40 | 31 | 73 | 50 |
| Specific reserve ratio | 66% | 49% | 48% | 51% | 48% |
| Total reserve ratio | 86% | 65% | 63% | 66% | 65% |
| Portfolio assessed loans | |||||
| Loans past due > 60 days, gross | 921 | 2,097 | 1,477 | 4,495 | 4,440 |
| Restructured loans | 49 | 159 | 294 | 502 | 312 |
| Collective reserves | 555 | 1,344 | 828 | 2,727 | 2,267 |
| Reserve ratio | 57% | 60% | 47% | 55% | 48% |
| Non-performing loans | 2,196 | 5,535 | 8,141 | 15,872 | 18,684 |
| Total reserves | 1,615 | 3,506 | 4,851 | 9,972 | 11,416 |
| NPL coverage ratio | 74% | 63% | 60% | 63% | 61% |
Baltic lending to the public*
EUR bn
* Excluding reclassified bonds
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 2010, the Group's Value at Risk in the trading operations averaged SEK 305m. The increase compared to 2009 is due to larger positions, primarily in the liquidity portfolio that has been built up during 2010. The average numbers are not fully comparable due to the change of risk model during later half of 2009.
| Value at Risk (99 per cent, ten days) | |||||
|---|---|---|---|---|---|
| SEKm | Min | Max | 30 Dec 2010 | Average 2010 | Average 2009 |
| Commodities | 0 | 4 | 0 | 0 | 1 |
| Credit spread | 52 | 360 | 294 | 251 | 111 |
| Equity | 20 | 112 | 50 | 40 | 50 |
| FX | 12 | 136 | 36 | 44 | 60 |
| Interest rate | 53 | 257 | 67 | 100 | 152 |
| Volatilities | 14 | 35 | 21 | 24 | - |
| Diversification | - | - | -155 | -155 | -212 |
| Total | 133 | 483 | 313 | 305 | 162 |
Bond investment portfolio
Structured Credits
- 421 positions, well diversified across products, asset classes and geographical areas
- 42.0% of the portfolio volume is rated Aaa/AAA, 11.6% below investment grade
- During Q4, 10 positions have been downgraded whereof 5 positions from AAA
- 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 1.7Y
* Net of short and fully matched positions; excluding holdings in the insurance business
| Product | UK | Spain | Europe | US | Australia | Total | Q1 | Q2 | Q3 | Q4 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Other | /NZ | Volume | SEK m | 2010 | 2010 | 2010 | 2010 | 2008 | 2009 | 2010 | ||||
| Financials | 9.8% | 0.0% | 31.9% | 56.6 | 1.7% | 10.9 | Structured credits | 94 | 19 | 9 | -6 | -1,070 | -433 | 116 |
| % | Financial institutions | -11 | -41 | 0 | -9 | -29 | -52 | |||||||
| Covered | 0% | 96.1% | 3.9% | 0% | 0% | 7.8 | Covered bonds etc. | 0 | 0 | 3 | -7 | 10 | 15 | -4 |
| Bonds | Income effect | 83 | -22 | 12 | -13 | -1,069 | -447 | 60 | ||||||
| Structured Credits |
15.1 % |
7.2% | 46.4% | 30.4 % |
0.9% | 29.6 | Structured credits | 237 | 61 | 255 | 68 | -1,460 | 642 | 621 |
| ABS | 0.0% | 2.1% | 3.5% | 1.6% | 0.0% | 2.1 | Financial institutions | 51 | 26 | 75 | 49 | -667 | 501 | 201 |
| Covered bonds etc. | -83 | -639 | -136 | -239 | -780 | 230 | -1,097 | |||||||
| CDO | 0.4% | 0.0% | 3.9% | 3.8% | 0.0% | 2.4 | Equity effect | 205 | -552 | 193 | -122 | -2,907 | 1 373 | -276 |
| CLO | 0.5% | 0.0% | 15.5% | 13.6 % |
0.0% | 8.8 | Total recognised | 288 | -574 | 205 | -135 | -3,976 | 926 | -216 |
| Structured credits | 799 | 1,317 | 655 | 240 | -6,086 | 528 | 3,011 | |||||||
| CMBS | 1.8% | 0.0% | 7.7% | 0.6% | 0.0% | 3.0 | Financial institutions | 253 | -572 | 171 | -72 | -789 | 843 | -220 |
| CMO | 0.0% | 0.0% | 0.0% | 3.2% | 0.0% | 1.0 | Covered bonds etc. | 6 | -15 | 3 | 0 | 2 | -6 | |
| RMBS | 12.2 | 5.1% | 15.9% | 2.7% | 0.0% | 10.7 | Fair value of | |||||||
| prime | % | reclassified securities | 1,058 | 730 | 829 | 168 | -6,875 | 1,373 | 2,785 | |||||
| RMBS non-prime |
0.1% | 0.0% | 0.0% | 4.9% | 0.9% | 1.7 | Total fair value | 1,346 | 156 | 1,034 | 33 -10,851 | 2,299 | 2,569 |
Portfolio breakdown by geography, 31 Dec, 2010 and financial effects
Divisional structure
Operating profit before credit loss provisions per division
* Retail ex. Germany
** Where of Sweden 7.1bn and Cards 2.6bn
*** Where of Estonia 3.5bn, Latvia 4.3bn and Lithuania 4.0bn
Average shareholder's equity SEK 98.9bn
Continuing operations
RoE isolated per quarter, %
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | |
| SEB Group | 5.6 | -0.1 | 1.0 | 1.6 | 3.3 | 8.4 | 8.5 | 14.6 |
| Merchant Banking | 24.4 | 26.3 | 23.2 | 19.9 | 19.9 | 24.9 | 20.8 | 21.0 |
| Retail | 21.8 | 17.3 | 19.3 | 20.9 | 17.2 | 17.1 | 20.9 | 20.3 |
| Wealth Management | 10.8 | 13.4 | 14.6 | 21.1 | 20.1 | 23.5 | 17.6 | 29.8 |
| Life based on op profit | 24.2 | 27.0 | 28.8 | 29.5 | 35.1 | 30.4 | 33.0 | 30.6 |
| Life based on business result | 30.0 | 47.4 | 40.4 | 38.3 | 48.5 | 41.7 | 56.5 | 50.9 |
| Baltic | neg | neg | neg | neg | neg | neg | 15.2 | 23.4 |
RoE accumulated in the period, %
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | |
| SEB Group | 5.6 | 2.5 | 2.0 | 1.9 | 3.3 | 5.8 | 6.7 | 8.7 |
| Merchant Banking | 24.4 | 25.3 | 24.6 | 23.4 | 19.9 | 22.4 | 21.9 | 21.7 |
| Retail | 21.8 | 19.5 | 19.5 | 19.8 | 17.2 | 17.1 | 18.4 | 18.9 |
| Wealth Management | 10.8 | 12.1 | 12.9 | 14.9 | 20.1 | 21.5 | 20.2 | 22.5 |
| Life based on op profit | 24.2 | 25.6 | 26.7 | 27.4 | 35.1 | 32.8 | 32.9 | 32.3 |
| Life based on business result | 30.0 | 38.7 | 39.3 | 39.0 | 48.5 | 45.1 | 48.9 | 49.4 |
| Baltic | neg | neg | neg | neg | neg | neg | neg | neg |
| RWA per division, basel I | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| SEB Group | 1137.3 | 1080.3 | 1019.3 | 1003.3 | 993.7 | 1007.9 | 984.2 | 998.3 |
| Merchant Banking | 620.5 | 578.1 | 534.7 | 517.6 | 508.3 | 519.5 | 496.9 | 504.2 |
| Retail | 298.9 | 303.8 | 304.4 | 311.4 | 316.0 | 319.1 | 322.0 | 332.3 |
| Wealth Management | 25.2 | 26.0 | 23.4 | 22.4 | 24.4 | 24.7 | 24.9 | 26.8 |
| Baltic | 141.9 | 132.6 | 121.3 | 115.0 | 104.2 | 99.0 | 95.2 | 90.9 |
| Other | 50.8 | 39.9 | 35.6 | 36.8 | 40.9 | 45.6 | 45.3 | 44.1 |
RWA per division, Basel II
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 |
| SEB Group | 830.2 | 789.6 | 747.4 | 730.5 | 723.3 | 714.2 | 711.4 | 716.1 |
| Merchant Banking | 470.6 | 445.9 | 425.4 | 404.0 | 393.6 | 387.9 | 388.2 | 386.9 |
| Retail | 156.8 | 152.7 | 148.5 | 149.6 | 160.1 | 162.5 | 162.1 | 168.1 |
| Wealth Management | 42.2 | 34.5 | 30.4 | 31.4 | 31.3 | 31.8 | 31.4 | 32.7 |
| Baltic | 114.1 | 108.9 | 98.6 | 100.8 | 92.0 | 88.8 | 83.6 | 79.3 |
| Other | 46.5 | 47.7 | 44.5 | 44.7 | 46.3 | 43.1 | 46.1 | 49.1 |
| SEB Fact Book Annual Accounts 2010 | 46 |
Merchant Banking
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 2,133 | 2,012 | 6 | 1,978 | 8 | 8,123 | 9,982 | - 19 |
| Net fee and commission income | 1,515 | 1,290 | 17 | 1,531 | -1 | 5,308 | 5,647 | - 6 |
| Net financial income | 655 | 753 | -13 | 712 | -8 | 3,745 | 4,377 | - 14 |
| Total operating income | 4,369 | 3,896 | 12 | 4,120 | 6 | 17,130 | 20,052 | - 15 |
| Total operating expenses | -2,296 | -1,870 | 23 | -1,642 | 40 | -8,465 | -7,818 | 8 |
| Profit before credit losses | 2,073 | 2,026 | 2 | 2,478 | -16 | 8,665 | 12,234 | - 29 |
| Net credit losses | -99 | -23 | -52 | 90 | -195 | -805 | - 76 | |
| Operating profit | 2,003 | 2,002 | 0 | 2,425 | -17 | 8,498 | 11,428 | - 26 |
| Cost/Income ratio | 0.53 | 0.48 | 0.40 | 0.49 | 0.39 | |||
| Return on equity, % | 21.0 | 20.8 | 19.9 | 21.7 | 23.4 |
Income, Expenses and Operating profit, SEK m
Market leader in bonds and syndicated corporate loans
Nordic leader in investment banking
Nordic Syndicated Corporate Loans Bookrunner* Jan – Dec 2010
* Exclusion of shipping, fishing, aerospace and connected businesses Source: Bloomberg
Nordic ECM transactions, by Bookrunner*
* Rank based on IPOs or follow-ons, Nordic stock exchanges Source: Dealogic
Source: The Nordic Stock exchanges
* Rank based on completed deals. All Swedish involvement. Source: Thomson Reuters
Trading and Capital Markets income by main Corporate Banking product cluster, excl. investment portfolios Total operating income
Custody volume development
Merchant Banking – rankings
| 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 | |
| November 2010 | Best Bank for Scandinavian Currencies | |
| Finansbarometern | September 2010 | Best bank in the Nordic and Baltic region for Real Estate products and services |
| Finansbarometern | September 2010 | The corporate bank of the year |
| September 2010 | SEB Enskilda voted best Danish equity research firm in Denmark | |
| August 2010 | No.1 in Securities Lending - European Prime Brokerage | |
| July 2010 | Best Investment Bank in Finland | |
| June 2010 | Best Brokerage Firm Nordic Countries by Extel Surveys | |
| June 2010 | Best Research House in Sweden |
Retail Banking
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 1,332 | 1,263 | 5 | 1,278 | 4 | 5,008 | 5,424 | -8 |
| Net fee and commission income | 849 | 774 | 10 | 862 | -2 | 3,241 | 3,254 | 0 |
| Net financial income | 74 | 58 | 28 | 84 | -12 | 273 | 292 | -7 |
| Total operating income | 2,267 | 2,109 | 7 | 2,242 | 1 | 8,569 | 9,034 | -5 |
| Total operating expenses | -1,453 | -1,364 | 7 | -1,258 | 16 | -5,541 | -5,303 | 4 |
| Profit before credit losses | 814 | 745 | 9 | 984 | -17 | 3,028 | 3,731 | -19 |
| Net credit losses | -144 | -56 | 157 | -223 | -35 | -543 | -840 | -35 |
| Operating profit | 670 | 688 | -3 | 761 | -12 | 2,484 | 2,891 | -14 |
| Cost/Income ratio | 0.64 | 0.65 | 0.56 | 0.65 | 0.59 | |||
| Return on equity, % | 20.3 | 20.9 | 20.9 | 18.9 | 19.8 |
Cards Sweden
32%
68%
Income, Expenses and Operating profit, SEK m
Business volume development by area
SEK bn Q4 2010 change vs. Q4 2009 (local currency)
Retail Sweden
Net interest income and volumes
Retail Sweden
Mortgages 0 100 200 300 400 Q2 07 Q4 Q2 08 Q4 Q2 09 Q4 Q2 10 Q4 0.0 0.5 1.0 1.5 2.0 Q1 2007 – Q4 2010 Private Margins % Corporate SEK bn
* Excluding leasing
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
Sweden, per cent
Note: Other lending and deposits=SEB Parent Bank Sweden, i.e. not only Retail Sweden
* New measurement method from Q4 2007. Lowers the volume market share with approximately 0.2 percentage points
Note: Adjustment of inactive cards in Q4 2010
Wealth Management
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 136 | 118 | 15 | 116 | 17 | 485 | 598 | -19 |
| Net fee and commission income | 1,115 | 830 | 34 | 853 | 31 | 3,752 | 2,955 | 27 |
| Net financial income | 30 | 17 | 76 | 23 | 30 | 89 | 76 | 17 |
| Total operating income | 1,285 | 972 | 32 | 995 | 29 | 4,384 | 3,646 | 20 |
| Total operating expenses | -745 | -651 | 14 | -584 | 28 | -2,736 | -2,505 | 9 |
| Profit before credit losses | 540 | 321 | 68 | 411 | 31 | 1,648 | 1,141 | 44 |
| Net credit losses | 7 | -1 | -8 | -188 | 3 | -28 | -111 | |
| Operating profit | 547 | 320 | 71 | 402 | 36 | 1,651 | 1,142 | 45 |
| Cost/Income ratio | 0.58 | 0.67 | 0.59 | 0.62 | 0.69 | |||
| Return on equity, % | 29.8 | 17.6 | 21.1 | 22.5 | 14.9 |
Income
Income, Expenses and Operating profit, SEK m
Operating profit
Total = SEK 4,384m Total = SEK 1,651m
AuM per customer type, SEK bn
Total Net Sales per quarter, SEK bn
The figures are not eliminated. Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10
Mutual funds per product type
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | |
| Equity funds | 46% | 48% | 45% | 42% | 36% | 36% | 32% | 27% | 28% | 32% | 34% | 37% | 38% | 36% | 37% | 40% |
| Fixed income funds | 23% | 21% | 23% | 24% | 25% | 25% | 26% | 28% | 29% | 27% | 26% | 25% | 25% | 27% | 27% | 23% |
| Balanced funds | 12% | 13% | 12% | 12% | 12% | 12% | 13% | 14% | 13% | 14% | 14% | 14% | 14% | 15% | 15% | 16% |
| Alternative funds | 19% | 18% | 20% | 21% | 28% | 28% | 29% | 31% | 30% | 27% | 26% | 24% | 23% | 22% | 22% | 21% |
Activity level – Wealth
Life
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Total operating income | 1,101 | 1,141 | -4 | 1,144 | -4 | 4,539 | 4,425 | 3 |
| Total operating expenses | -579 | -578 | 0 | -574 | 1 | -2,337 | -2,310 | 1 |
| Operating profit | 522 | 563 | -7 | 570 | -8 | 2,202 | 2,115 | 4 |
| Change in surplus values, net | 345 | 400 | -14 | 170 | 103 | 1,165 | 900 | 29 |
| Business result | 867 | 963 | -10 | 740 | 17 | 3,367 | 3,015 | 12 |
| Cost/Income ratio | 0.53 | 0.51 | 0.50 | 0.51 | 0.52 | |||
| Return on equity, % | ||||||||
| based on operating profit | 30.6 | 33.0 | 29.5 | 32.3 | 27.4 | |||
| based on business result | 50.9 | 56.5 | 38.3 | 49.4 | 39.0 |
Income, Expenses and Operating profit, SEK m
Market position by profit area
Market shares, gross premium income, Unit-linked insurances, (%, Q3 2010)
** Denmark unit-linked insurance in competitive markets from June 2010
*** Latvia latest information from March 2010
Sales volume weighted
Life Division total sales, SEK m
| Jan – Dec | Jan – Dec | ||
|---|---|---|---|
| 2010 | 2009 | Change | |
| Unit linked | 41,376 | 40,399 | 2% |
| Traditional and Sickness/health |
7,111 | 10,267 | -31% |
| Total | 48,487 | 50,666 | -4% |
Market shares Sweden, per cent
Premium income unit-linked, 12 months to September 2010 (September 2009)
* Markets share statistics published with 2-month lag
* Including Swedish customers of the Irish subsidiary
** September 2010 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 |
|
|---|---|---|---|---|---|
| New sales (single/10+regular) | 3,345 | 3,689 | 3,858 | 4,026 | 3,964 |
| Net present value | 1,788 | 1,775 | 1,598 | 1,492 | 1,536 |
| Acquisition cost | -970 | -901 | -879 | -916 | -929 |
| New business profit | 818 | 874 | 719 | 576 | 607 |
| Margin, % | - | 23.7 | 18.6 | 14.3 | 15,3 |
| Swedish market | 24.5 | 22.9 | 20.8 | 16.2 | 17,1 |
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. The traditional insurance business conducted in Nya Livförsäkringsaktiebolaget SEB Trygg Liv (Nya Liv) was merged with the unit-linked company
Fondförsäkringsaktiebolaget SEB Trygg Liv in October 2007. After the merger, the result of this business – with respect to investment income and insurance risk – is still allocated to the policyholders. However, SEB Trygg Liv guarantees the contractual benefits to the policyholders in this business.
Comments on 2010
Operating profit increased by 4 per cent to SEK 2,202m (2,115). Excluding the effect of recovered guarantee provisions in Swedish traditional insurance, profit rose by 16 per cent. Operating income amounted to SEK 4,539m which was SEK 114m higher than last year. Adjusted for guarantee recoveries, income increased by SEK 324m or 8 per cent. The unit-linked income rose by SEK 425m or 21 per cent. The fund values as well as the relative share of equity related funds, continued to increase. Income from other insurance, mainly traditional insurance and risk products such as sickness and health insurance, decreased by SEK 172m. Guarantee recoveries amounted to SEK 76m (286). The remaining guarantee provisions amount to SEK 29m in total. The provisions are related to previous depreciations of investment assets in Swedish traditional insurance and recoverable when future investment returns are adequate to meet guaranteed bonus levels. Apart from guarantee recoveries income from other insurance increased by SEK 38m and was mainly related to risk insurance in the Swedish business. Other income decreased by SEK 139m or 19 per cent 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 1 per cent to SEK 2,337m (2,310).
The effect of depreciated currencies in foreign subsidiaries, affected income negatively by 4 per cent. Expenses were positively affected by 4 per cent.
Operating profit in SEB Trygg Liv Sweden, including central functions, increased by SEK 112m to SEK 1,505m. Recoveries in guarantee commitments were SEK 210m lower than last year. Excluding the recoveries operating profit was up by SEK 322m or 29 per cent due to higher unit-linked income and improvement within sickness and health insurance. Expenses increased by 8 per cent. Operating profit in SEB Pension Denmark decreased by SEK 53m to SEK 521m. Currency translation effects contributed negatively by
SEK 59m. In local currency total income was unchanged and expenses decreased by 1 per cent. Operating profit in SEB Life & Pension International increased by SEK 28m to SEK 176m.
Total assets under management amounted to SEK 424bn (402). The value of the unit-linked funds increased by 15 per cent to SEK 179bn. 8 per cent was related to net inflow and 7 per cent to appreciation of fund investments. Gamla Liv's part of total assets under management was SEK 159bn, other traditional insurance accounted for 81bn and risk products for 5bn. In addition to this, SEK 6bn was managed for the division's own account.
Total sales weighted volume decreased by SEK 0.6bn or 1 per cent in local currencies to 48.5bn. In Sweden sales decreased with 2 per cent to SEK 34.1bn, the corporate sales improved with SEK 1.4bn or 8 per cent. The unit-linked product Portfolio Bond (depot endowment insurance) increased by SEK 0.3bn. This product is accounted for in the business area International, but is primarily sold to Swedish customers. In Denmark, unit-linked sales increased by SEK 1.6bn whereas sales of other products decreased by SEK 3.0bn. Sales in the Baltic region and in Ukraine increased with 9 per cent to SEK 1.3bn.
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. According to the SEB "Sparbarometer", the share was 49 per cent at 30 September 2010.
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 market share for the twelve month period to September 2010 was 23.4 per cent (26.1). The drop is due to the reelection 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 2010 the corporate share was 60 per cent (54). For the twelve month period to September 2010, SEB Trygg Liv's market share in new sales unit-linked occupational pension was 17.9 per cent (18.2). 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 for the twelve month period to September 2010 was 35.2 per cent (37.2). 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".
At 31 December 2009, DKK 252m were placed in a "shadow account", according to Danish legislation regarding shareholder fee available for distribution in profit-sharing traditional life insurance. The amount is considered as restricted equity and not available for dividend to the owners of the company. The company receive interest income during the period when the amount is restricted in the shadow account. The whole amount has been dissolved during the current year.
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 17 per cent. Danica is the dominating company with a market share of 27 and 46 per cent, respectively. All market share figures are in the peer group / competitive market segment for the first six months of 2010.
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 Baltic subsidiaries concentrate primarily on unit-linked insurance, but offer traditional insurance and sickness/disability insurance as well. More than 80 per cent of the sales volume is to private individuals.
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 December 2010. The companies are therefore in a green light.
Income statement
| SEKm | Q 1 2009 |
Q 2 2009 |
Q 3 2009 |
Q 4 2009 |
Q 1 2010 |
Q 2 2010 |
Q 3 2010 |
Q 4 2010 |
Full year 2009 |
Full year 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income unit-linked | 437 | 491 | 536 | 584 | 585 | 609 | 611 | 668 | 2,048 | 2,473 |
| Income other insurance 1) | 448 | 448 | 373 | 395 | 427 | 363 | 392 | 310 | 1,664 | 1,492 |
| Other income 2) | 148 | 204 | 196 | 165 | 172 | 141 | 138 | 123 | 713 | 574 |
| Total operating income | 1,033 | 1,143 | 1,105 | 1,144 | 1,184 | 1,113 | 1,141 | 1,101 | 4,425 | 4,539 |
| Operating expenses | -627 | -620 | -550 | -651 | -652 | -625 | -577 | -630 | -2,448 | -2,484 |
| Other expenses | -1 | -23 | -3 | 0 | -1 | -1 | -6 | -5 | -27 | -13 |
| Change in deferred acquisition costs | 63 | 21 | 4 | 77 | 67 | 32 | 5 | 56 | 165 | 160 |
| Total expenses | -565 | -622 | -549 | -574 | -586 | -594 | -578 | -579 | -2,310 | -2,337 |
| Operating profit | 468 | 521 | 556 | 570 | 598 | 519 | 563 | 522 | 2,115 | 2,202 |
| Change in surplus value, net | 111 | 395 | 224 | 170 | 229 | 191 | 400 | 345 | 900 | 1,165 |
| Business result | 579 | 916 | 780 | 740 | 827 | 710 | 963 | 867 | 3,015 | 3,367 |
| Financial effects due to market fluctuations 3) | -282 | 1,132 | 652 | 517 | 292 | -538 | 138 | 662 | 2,019 | 554 |
| Change in assumptions 3) | -32 | -253 | 35 | -459 | 12 | 1 | 14 | -379 | -709 | -352 |
| Total result | 265 | 1,795 | 1,467 | 798 | 1,131 | 173 | 1,115 | 1,150 | 4,325 | 3,569 |
| Business equity | 6,800 | 6,800 | 6,800 | 6,800 | 6,000 | 6,000 | 6,000 | 6,000 | 6,800 | 6,000 |
| Return on business equity 4) | ||||||||||
| based on operating profit, % | 24.2 | 27.0 | 28.8 | 29.5 | 35.1 | 30.4 | 33.0 | 30.6 | 27.4 | 32.3 |
| based on business result, % | 30.0 | 47.4 | 40.4 | 38.3 | 48.5 | 41.7 | 56.5 | 50.9 | 39.0 | 49.4 |
| Premium income, gross | 7,919 | 7,347 | 6,588 | 8,751 | 8,527 | 7,491 | 6,698 | 7,752 | 30,605 | 30,468 |
| Expense ratio, % 5) | 7.9 | 8.4 | 8.3 | 7.4 | 7.6 | 8.3 | 8.6 | 8.1 | 8.0 | 8.2 |
| Operating profit by business area | ||||||||||
| SEB Trygg Liv, Sweden | 277 | 403 | 387 | 412 | 391 | 349 | 376 | 424 | 1,479 | 1,540 |
| SEB Pension, Denmark | 180 | 147 | 120 | 127 | 151 | 158 | 151 | 61 | 574 | 521 |
| SEB Life & Pension, International | 25 | 3 | 68 | 52 | 59 | 29 | 50 | 38 | 148 | 176 |
| Other including central functions etc | -14 | -32 | -19 | -21 | -3 | -17 | -14 | -1 | -86 | -35 |
| 468 | 521 | 556 | 570 | 598 | 519 | 563 | 522 | 2,115 | 2,202 | |
| 1) Effect of guarantee commitments in | ||||||||||
| traditional insurance in Sweden | 106 | 103 | 34 | 43 | 24 | -10 | 12 | 50 | 286 | 76 |
| Reclassification compared to previous reporting | 8 | -59 | -44 | -12 | -107 | |||||
| 2) Reclassification compared to previous reporting | -8 | 59 | 44 | 12 | 107 |
3) Effect on surplus values
4) Annual basis after 12 per cent tax which reflects the divisions effective tax rate
5) Operating expenses as percentage of premium income
Sales volume insurance (weighted)
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Total | 12,912 | 13,268 | 11,042 | 13,444 | 13,507 | 11,967 | 10,699 | 12,314 | 50,666 | 48,487 |
| Traditional life and sickness/health insurance | 2,663 | 2,771 | 2,507 | 2,326 | 1,871 | 1,754 | 1,548 | 1,938 | 10,267 | 7,111 |
| Unit-linked insurance | 10,249 | 10,497 | 8,535 | 11,118 | 11,636 | 10,213 | 9,151 | 10,376 | 40,399 | 41,376 |
| Corporate paid | 8,260 | 8,047 | 7,154 | 7,393 | 8,045 | 7,437 | 7,709 | 8,091 | 30,854 | 31,282 |
| Corporate as per cent of total | 64% | 61% | 65% | 55% | 60% | 62% | 72% | 66% | 61% | 65% |
| SEB Trygg Liv Sweden | 8,086 | 7,987 | 6,452 | 8,697 | 8,067 | 7,470 | 7,032 | 7,804 | 31,222 | 30,373 |
| Traditional life and sickness/health insurance | 401 | 280 | 252 | 407 | 341 | 356 | 322 | 403 | 1,340 | 1,422 |
| Unit-linked insurance | 7,685 | 7,707 | 6,200 | 8,290 | 7,726 | 7,114 | 6,710 | 7,401 | 29,882 | 28,951 |
| Corporate paid | 5,103 | 4,266 | 3,859 | 4,612 | 4,644 | 4,404 | 5,100 | 5,133 | 17,840 | 19,281 |
| Corporate as per cent of total | 63% | 53% | 60% | 53% | 58% | 59% | 73% | 66% | 57% | 63% |
| SEB Pension Denmark | 3,459 | 3,771 | 3,586 | 3,289 | 3,882 | 3,137 | 2,579 | 3,146 | 14,105 | 12,744 |
| Traditional life and sickness insurance | 2,080 | 2,245 | 2,087 | 1,677 | 1,399 | 1,228 | 1,126 | 1,338 | 8,089 | 5,091 |
| Unit-linked insurance | 1,379 | 1,526 | 1,499 | 1,612 | 2,483 | 1,909 | 1,453 | 1,808 | 6,016 | 7,653 |
| Corporate paid | 2,873 | 3,327 | 3,157 | 2,558 | 3,056 | 2,658 | 2,266 | 2,529 | 11,915 | 10,509 |
| Corporate as per cent of total | 83% | 88% | 88% | 78% | 79% | 85% | 88% | 80% | 84% | 82% |
| SEB Life & Pension International | 1,367 | 1,510 | 1,004 | 1,458 | 1,558 | 1,360 | 1,088 | 1,364 | 5,339 | 5,370 |
| Traditional life and sickness insurance | 182 | 246 | 168 | 242 | 131 | 170 | 100 | 197 | 838 | 598 |
| Unit-linked insurance | 1,185 | 1,264 | 836 | 1,216 | 1,427 | 1,190 | 988 | 1,167 | 4,501 | 4,772 |
| Corporate paid | 284 | 454 | 138 | 223 | 345 | 375 | 343 | 429 | 1,099 | 1,492 |
| Corporate as per cent of total | 21% | 30% | 14% | 15% | 22% | 28% | 32% | 31% | 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
| Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Full year | Full year | |
|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 |
| Premium income: Total | 7,919 | 7,347 | 6,588 | 8,751 | 8,527 | 7,491 | 6,698 | 7,752 | 30,605 | 30,468 |
| Traditional life and sickness/health insurance | 2,309 | 1,975 | 1,905 | 2,913 | 1,993 | 1,662 | 1,332 | 1,959 | 9,102 | 6,946 |
| Unit-linked insurance | 5,610 | 5,372 | 4,683 | 5,838 | 6,534 | 5,829 | 5,366 | 5,793 | 21,503 | 23,522 |
| SEB Trygg Liv Sweden | 4,508 | 4,179 | 3,938 | 4,670 | 4,808 | 4,137 | 3,882 | 4,290 | 17,295 | 17,117 |
| Traditional life and sickness/health insurance | 777 | 655 | 643 | 943 | 672 | 560 | 517 | 651 | 3,018 | 2,400 |
| Unit-linked insurance | 3,731 | 3,524 | 3,295 | 3,727 | 4,136 | 3,577 | 3,365 | 3,639 | 14,277 | 14,717 |
| SEB Pension Denmark | 2,071 | 1,804 | 1,778 | 2,807 | 2,152 | 2,184 | 1,943 | 2,326 | 8,460 | 8,605 |
| Traditional life and sickness/health insurance | 1,436 | 1,220 | 1,167 | 1,859 | 1,235 | 1,004 | 738 | 1,199 | 5,682 | 4,176 |
| Unit-linked insurance | 635 | 584 | 611 | 948 | 917 | 1,180 | 1,205 | 1,127 | 2,778 | 4,429 |
| SEB Life & Pension International | 1,340 | 1,364 | 872 | 1,274 | 1,567 | 1,170 | 873 | 1,136 | 4,850 | 4,746 |
| Traditional life and sickness/health insurance | 96 | 100 | 95 | 111 | 86 | 98 | 77 | 109 | 402 | 370 |
| Unit-linked insurance | 1,244 | 1,264 | 777 | 1,163 | 1,481 | 1,072 | 796 | 1,027 | 4,448 | 4,376 |
| Assets under management:* Total | 347,000 | 371,800 | 392,100 | 401,700 | 410,700 | 405,300 | 413,600 | 424,100 | 401,700 | 424,100 |
| Traditional life and sickness/health insurance | 230,600 | 237,900 | 247,000 | 245,300 | 246,200 | 241,600 | 244,600 | 244,600 | 245,300 | 244,600 |
| Unit-linked insurance | 116,400 | 133,900 | 145,100 | 156,400 | 164,500 | 163,700 | 169,000 | 179,500 | 156,400 | 179,500 |
| SEB Trygg Liv Sweden | 235,800 255,200 | 273,700 282,400 | 290,100 | 284,300 292,600 | 303,900 | 282,400 | 303,900 | |||
| Traditional life and sickness/health insurance | 145,000 | 151,300 | 161,500 | 162,100 | 164,300 | 160,300 | 164,800 | 168,100 | 162,100 | 168,100 |
| Unit-linked insurance | 90,800 | 103,900 | 112,200 | 120,300 | 125,800 | 124,000 | 127,800 | 135,800 | 120,300 | 135,800 |
| SEB Pension Denmark | 94,000 | 96,300 | 96,100 | 95,000 | 94,500 | 94,300 | 93,700 | 91,400 | 95,000 | 91,400 |
| Traditional life and sickness/health insurance | 84,500 | 85,500 | 84,400 | 82,100 | 80,800 | 80,200 | 78,700 | 75,400 | 82,100 | 75,400 |
| Unit-linked insurance | 9,500 | 10,800 | 11,700 | 12,900 | 13,700 | 14,100 | 15,000 | 16,000 | 12,900 | 16,000 |
| SEB Life & Pension International | 17,200 | 20,300 | 22,300 | 24,300 | 26,100 | 26,700 | 27,300 | 28,800 | 24,300 | 28,800 |
| Traditional life and sickness/health insurance | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 |
| Unit-linked insurance | 16,100 | 19,200 | 21,200 | 23,200 | 25,000 | 25,600 | 26,200 | 27,700 | 23,200 | 27,700 |
* rounded to whole 100 millions. From Q4 2009 investments for own account are excluded. Previously this was included in traditional insurance. By year-end 2009 this amount was 5,200 (Sweden 1,800, Denmark 2,800 and International 600).
SEK bn
Assets under management, (net assets)
| Surplus value accounting | Excluding traditional insurance in Denmark | Traditional insurance Denmark* |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEKm | Q 4 2009 |
Q 1 2010 |
Q 2 2010 |
Q 3 2010 |
2010 | Q 4 Full year 2009 |
Full year 2010 |
Q 4 2009 |
Q 1 2010 |
Q 2 2010 |
Q 3 2010 |
Q 4 2010 |
Full year 2009 |
Full year 2010 |
| Surplus values, opening balance | 13,423 | 13,656 | 14,363 | 14,006 | 14,540 | 11,549 | 13,656 | 1,335 | 1,272 | 1,190 | 1,178 | 1,158 | 1,111 | 1,272 |
| Adjustment opening balance 1) | 1 | 203 | 5 | -65 | 208 | -6 | -6 | |||||||
| Present value of new sales 2) | 433 | 412 | 362 | 352 | 410 | 1,556 | 1,536 | 29 | 17 | 20 | 17 | 12 | 112 | 66 |
| Return/realised value on policies from previous | ||||||||||||||
| periods | -86 | -103 | -115 | -122 | -130 | -287 | -470 | -40 | -34 | -35 | -37 | -33 | -150 | -139 |
| Actual outcome compared to assumptions 3) | -100 | -13 | -24 | 175 | 121 | -204 | 259 | 7 | -16 | 4 | -4 | -30 | 205 | -46 |
| Change in surplus values ongoing business, gross | 247 | 296 | 223 | 405 | 401 | 1,065 | 1,325 | -4 | -33 | -11 | -24 | -51 | 167 | -119 |
| Capitalisation of acquisition costs for the period | -233 | -231 | -195 | -165 | -221 | -776 | -812 | |||||||
| Amortisation of capitalised acquisition costs | 156 | 164 | 163 | 160 | 166 | 611 | 653 | |||||||
| Change in surplus values ongoing business, net 4) | 170 | 229 | 191 | 400 | 346 | 900 | 1,166 | -4 | -33 | -11 | -24 | -51 | 167 | -119 |
| Financial effects due to short term market fluctuations | ||||||||||||||
| 5) | 517 | 292 | -538 | 138 | 662 | 2,019 | 554 | -5 | 4 | 2 | 42 | 56 | 64 | 104 |
| Change in assumptions 6) | -459 | 12 | 1 | 14 | -380 | -709 | -353 | -65 | 12 | 31 | 10 | 24 | 5 | 77 |
| Total change in surplus values | 228 | 533 | -346 | 552 | 628 | 2,210 | 1,367 | -74 | -17 | 22 | 28 | 29 | 236 | 62 |
| Exchange rate differences etc | 4 | -29 | -11 | -23 | -14 | -38 | -77 | 11 | -65 | -28 | -48 | -23 | -75 | -164 |
| Surplus values, closing balance 7) | 13,656 | 14,363 | 14,006 | 14,540 | 15,154 | 13,656 | 15,154 | 1,272 | 1,190 | 1,178 | 1,158 | 1,164 | 1,272 | 1,164 |
| Most important assumptions (Swedish customer base - which represent 96 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 / 8 / | 1 / 7 / | ||||||||||||
| / 5 years / 6 years / thereafter | 15 / 9 / 9 | 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 Mortality |
2 | 2 The Group's experience |
||||||||||||
| Sensitivity to changes in assumptions (total division). | ||||||||||||||
| Change in discount rate +1 per cent | -1,493 | -1,585 | ||||||||||||
| " -1 per cent |
1,716 | 1,829 | ||||||||||||
| Change in value growth +1 per cent | 1,492 | 1,615 | ||||||||||||
| of investment assets -1 per cent |
-1,329 | -1,430 |
* Not included in the total figures for the division.
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 i 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) The negative effect during Q4 2009 was mainly due to assumed higher frequency of transfer of policies. Assumed lower administration costs per policy had a positive effect.
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 3,631m at December 31, 2010).
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 not included in the total surplus values for the division. 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 | Jan-Dec 2007 | Jan-Dec 2008 | Jan-Dec 2009 | Jan-Dec 2010 |
|---|---|---|---|---|
| Sales volume weighted (regular + single/10) | 3,689 | 3,858 | 4,026 | 3,964 |
| Present value of new sales | 1,775 | 1,598 | 1,492 | 1,536 |
| Sales expenses | -901 | -879 | -916 | -929 |
| Profit from new business | 874 | 719 | 576 | 607 |
| Sales margin new business | 23.7% | 18.6% | 14.3% | 15.3% |
The traditional insurance in Denmark is not included.
During the year there has been continued pressure on prices and increasing sales expenses. Together with a change in the product mix this has adversely affected the new business profit.
Embedded value
| SEKm | 31 Dec 2007 | 31 Dec 2008 | 31 Dec 2009 | 31 Dec 2010 |
|---|---|---|---|---|
| Equity 1) | 8,836 | 8,827 | 8,594 | 8,780 |
| Surplus values | 14,496 | 11,549 | 13,656 | 15,154 |
| 1) Dividend paid to the parent company during the period | -1,150 | -1,275 | -1,850 | -1,000 |
The traditional insurance in Denmark is not included in the surplus values.
Gamla Livförsäkringsaktiebolaget
Traditional insurance business is operated in Gamla Livförsäkringsaktiebolaget SEB Trygg Liv (Gamla Liv). The entity is operated according to mutual principles and is not consolidated in SEB Trygg Liv's result. Gamla Liv is closed for new business. The policyholder organisation, Trygg Stiftelsen (the Trygg Foundation), has the purpose to secure 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
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | % | 2009 | % | 2010 | 2009 | % |
| Net interest income | 481 | 442 | 9 | 522 | -8 | 1,869 | 2,679 | -30 |
| Net fee and commission income | 213 | 229 | -7 | 221 | -4 | 877 | 934 | -6 |
| Net financial income | -7 | 8 | -188 | 31 | -123 | 63 | 126 | -50 |
| Total operating income | 697 | 700 | 0 | 831 | -16 | 2,846 | 3,794 | -25 |
| Total operating expenses | -662 * | -459 | 44 | -622 | 6 | -2,089 | -4,571 | -54 |
| Profit before credit losses | 35 | 241 | -85 | 209 | -83 | 757 | -777 | -197 |
| Net credit losses | 736 | 273 | 170 | -2,584 | -128 | -873 | -9,569 | -91 |
| Operating profit | 767 | 514 | 49 | -2,391 | -132 | -121 | -10,363 | -99 |
| Cost/Income ratio | 0.95 | 0.66 | 0.75 | 0.73 | 1.20 | |||
| Return on equity, % | 23.4 | 15.2 | negative | negative | negative |
* Including SEK 199m Core banking system impairment in Lithuania Q4 2010 Goodwill writedown SEK 2,299m in 2009
* Adjusted for goodwill write-down in Q2 2009
Business volume development by area
SEK bn
Q4 2010 change vs. Q4 2009 (local currency)
Baltic Lending market shares
Per cent, Q1 2006 – Q4 2010
Source: Bank of Estonia, Association of Latvian Banks, Association of Lithuanian Banks, SEB Group
Net interest income and volumes
Baltic Estonia, EEK
Baltic Latvia, LVL
Baltic Lithuania, LTL
Real Estate holding companies
Baltic countries
| 2008 | 2009 | 2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK m | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Seized assets | 0 | 0 | 0 | 0 | 50 | 50 | 158 | 293 | 399 |
Baltic division vs. geography*
The division encompasses the retail and all lending operations in Estonia, Latvia and Lithuania. In the Fact Book on page 20, the full Baltic geographical segmentation is reported including the operations in Merchant Banking, Wealth Management and Life.
| C/I ratio | ||
|---|---|---|
| Division | 0.66 | 0.66 |
| Country | 0.58 | 0.57 |
* Excluding SEK 199m Core banking system impairment in Lithuania Q4 2010
Macro
Nordic countries export, year-on-year % change Nordic countries key interest rates
Baltic countries Retail sales, year-on year % change Baltic countries export, year-on-year % change
Nordic Countries GDP, year-on-year % change Nordic Countries unemployment, % of labour force
Baltic countries GDP, year-on-year % change Baltic countries unemployment, % of labour force
Swedish housing market
Household debt as share of GDP
House prices Residential investments
Number of housing starts Interest rate payments share of income
Labour market situation== Household savings ratio
Macro forecasts per country
| GDP (%) | Inflation (%) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2010F | 2011F | 2012F | 2009 | 2010F | 2011F | 2012F | ||
| Denmark* | -4.7 | 2.2 | 2.2 | 2.1 | 1.1 | 2.2 | 2.1 | 2.1 | |
| Finland* | -8.1 | 2.7 | 3.0 | 2.8 | 1.6 | 1.5 | 2.1 | 2.0 | |
| Norway | -1.4 | 0.5 | 2.3 | 2.2 | 2.1 | 2.4 | 1.4 | 2.2 | |
| Sweden | -5.1 | 5.0 | 3.5 | 2.5 | -0.3 | 1.2 | 2.0 | 2.1 | |
| Germany* | -4.7 | 3.6 | 2.5 | 1.8 | 0.2 | 1.1 | 1.4 | 1.5 | |
| Eurozone* | -4.1 | 1.6 | 1.7 | 1.5 | 0.3 | 1.5 | 1.3 | 1.4 | |
| Estonia* | -13.9 | 2.5 | 4.0 | 4.0 | 0.2 | 2.7 | 3.0 | 4.0 | |
| Latvia* | -18.0 | -0.3 | 4.0 | 5.0 | 3.3 | -1.2 | 1.3 | 1.5 | |
| Lithuania* | -14.7 | 1.0 | 4.0 | 4.5 | 4.2 | 1.0 | 2.0 | 3.0 | |
| Russia | -7.9 | 3.7 | 4.3 | 5.0 | 11.7 | 6.8 | 7.5 | 7.4 | |
| Ukraine | -15.1 | 5.2 | 4.4 | 4.2 | 15.9 | 9.5 | 10.9 | 10.1 |
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 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 January – 3 February | Silent period |
| 4 February | Annual Accounts for 2010 |
| 8 February | Nordic Outlook |
| 3 March | Annual Report on www.sebgroup.com |
| 23 March | Eastern European Outlook |
| 24 March | Annual General Meeting |
| 25 March | The share is traded ex dividend |
| 29 March | Proposed record date for dividend |
| 11 April – 2 May | Silent period |
| 3 May | Interim Report January-March 2011 |
| 17 May | Nordic Outlook |
| 4 July – 13 July | Silent period |
| 14 July | Interim Report January-June 2011 |
| 30 August | Nordic Outlook |
| 10 October – 26 October | Silent period |
| 27 October | Interim Report January-September 2011 |
22 November Nordic Outlook
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 as a percentage of 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.