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SEB — Interim / Quarterly Report 2011
Feb 7, 2012
2966_10-k_2012-02-07_e69e2dd4-79a7-430e-9a1c-3828e48e0f89.pdf
Interim / Quarterly Report
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Annual Accounts 2011
STOCKHOLM 7 FEBRUARY 2012
2011 – operating profit SEK 15.3bn (11.4)
- Operating profit rose by 35 per cent to SEK 15.3bn (11.4). Net profit from continuing operations amounted to SEK 12.3bn (8.8). Including discontinued operations net profit amounted to SEK 11.1bn (6.8).
- Operating income rose by 3 per cent to SEK 37.7bn (36.7). Net interest income amounted to SEK 16.9bn, an increase of 6 per cent.
- Operating expenses decreased by 3 per cent to SEK 23.1bn.
- SEK 0.8bn of net credit provisions were released, corresponding to a credit loss level of -0.08 per cent (0.15).
- Return on equity in continuing operations was 11.9 per cent (8.9) and earnings per share SEK 5.59 (4.00). Return on equity including discontinued operations was 10.8 per cent (6.8) and earnings per share SEK 5.06 (3.07).
- Deposits from the public increased by SEK 150bn and lending to the public increased by SEK 111bn.
- The core Tier 1 capital ratio was 13.7 per cent (12.2) and the Tier 1 capital ratio was 15.9 per cent (14.2).
- The core liquidity reserve amounted to SEK 377bn and SEB's total liquid resources amounted to SEK 616bn.
- The Board of Directors proposes a dividend to the shareholders of SEK 1.75
The fourth quarter 2011– operating profit SEK 3.2bn (4.4)
- Operating profit decreased by 28 per cent compared with the corresponding quarter 2010 and by 15 per cent compared to the previous quarter. Including discontinued operations net profit amounted to SEK 2.3bn (3.5).
- Operating income amounted to SEK 9.3bn (10.0) and operating expenses to SEK 5.9bn (6.1).
"Our position as the Relationship Bank was further enhanced in 2011. Business volumes grew and we made good progress in our focused Nordic and German expansion. In an environment marked by uncertainty and volatility, the Bank's resilience has been further reinforced through balance sheet measures and even stronger asset quality."
Annika Falkengren
President's comment
2011 was yet another year marked by global imbalances and volatile markets. The year started with more positive economic sentiment, but uncertainty returned when the devastating earthquake hit Japan. In Europe, risks for the real economy grew as political initiatives for a long-term solution to the sovereign debt crisis in Southern Europe were found lacking. Deteriorating sovereign credit quality and elevated economic and market uncertainty increased funding costs for banks in general while bond rates reached the lowest levels in decades. Equity markets suffered as indices plunged by double digits in late summer.
Resilience from an even stronger balance sheet
In this environment, resilience based on a strong balance sheet, stable earnings and a long-term perspective is perhaps more important than ever for a bank. In 2011, SEB proved yet again that it has that resilience and prioritises long-term customer relationships.
Our capital ratios have increased further and now rank among Europe's highest. Throughout this protracted market volatility and uncertainty, we have never hesitated to take the costs of building liquidity buffers and extending our funding in order to maintain the capacity to support and grow our customer relationships. SEB's strong balance sheet was recognised by Standard & Poor's in their credit rating upgrade of SEB in December.
Growing business volumes supports income growth
SEB's operating profit of SEK 15.3bn, up 35 per cent compared to 2010, reflects strong customer demand. Customers in all segments – large corporations, financial institutions, SMEs and private individuals – have increased their business with us. Deposit volumes grew by SEK 150bn, corporate lending volumes by SEK 62bn, household lending increased by SEK 46bn; and customer-driven net interest income increased by 13 per cent. SEB also attracted SEK 43bn in net new assets under management. As a result, operating income increased by 3 per cent to SEK 37.7bn. Operating costs of SEK 23.1bn were in line with the target to keep costs below SEK 24bn in 2011. Our ambition is to keep costs at this lower level until 2014.
Corporate customers remain cautiously optimistic
Our corporate customers are well positioned in terms of markets and the investment cycle and well prepared for a prolongation of the uncertain economic climate. Risk management solutions have been in high demand throughout the year. This supported our foreign exchange and capital market businesses which once again proved the stability of SEB's customer flow-driven trading business. Corporate customers increasingly utilised bank credits for funding as the proportion of corporate bond issuance to total corporate refinancing fell to one third from one half in 2010. We continued to make good progress in our expansion in the Nordic countries and Germany: A net of 114 new large corporate clients have been added in 2011.
Also, Swedish SMEs have increasingly chosen SEB as their financial partner. The market share strengthened from 11 to over 12 per cent and this is in line with the long-term target to reach 15 per cent. We now support some 120,000 SMEs in Sweden.
Private customers remained active
Customer demand and activity levels remained robust in 2011. Market uncertainty increased private customers' demand for financial advice.
Overall, customers were inclined to reallocate from equities to less risky forms of investments. Our term-deposit account attracted more than SEK 26bn while our Private Banking offering attracted 1,300 new customers and SEK 24bn in new assets under management. Mortgage lending increased by 18 per cent or SEK 49bn. We continue to safeguard customers' repayment capacity by requiring amortizations and restrictions on the household debt ratio.
Asset quality improved from very high levels
Asset quality in general remained very high. Non-perfoming loans fell each quarter throughout the year and at year-end were 25 per cent lower than a year ago. Net credit losses in the Nordic countries and Germany were stable at 6 basis points, in line with last year's level. The net release of provisions for credit losses in the Baltic countries was SEK 1.5bn. Further releases are not expected. Nevertheless, Baltic asset quality continued to recover towards the end of the year.
Strategic priorities are unchanged
Our commitment to enhance long-term values for customers and shareholders remains strong. Through persistent customer focus and cost efficiency, we will continue to pursue our long-term goal to be the Relationship bank in our part of the world.
The highly uncertain economic landscape and challenging new banking regulation will further increase the future cost in the banking industry. In this perspective, it is a challenge to, on top of European regulation, adapt to an even stricter Swedish regulatory framework with earlier implementation than for our European peers.
SEB's direction is firm. We prioritise long-term customer relations and disciplined growth in targeted markets while maintaining a high degree of resilience.
The Group
Fourth quarter isolated
Operating profit amounted to SEK 3,165m (4,392). Net profit from continuing operations decreased to SEK 2,634m (3,640).
Net profit (after tax), including the negative effect from the discontinued operations at SEK 300m (-131), was SEK 2,334m (3,509).
Operating income
Total operating income amounted to SEK 9,334m (10,000) and increased 1 per cent from the previous quarter.
Net interest income at SEK 4,318m (4,505) was 4 per cent lower than the fourth quarter 2010 and 5 per cent higher than the previous quarter. Customer loans and deposits combined contributed SEK 614m more to net interest income compared with the corresponding quarter 2010 as the average lending volume was 8 per cent higher and deposit volumes 13 per cent up. Compared to the third quarter, average customer loans and deposits volumes increased by 1 and 4 per cent, respectively, and customer driven net interest income by SEK 193m.
Net interest income from other activities was down SEK 801m compared with the corresponding quarter 2010 and was stable compared with the previous quarter. The decrease compared with a year ago relates primarily to negative postclosing effects from the sale of the German retail operations. In addition, asset quality of the liquidity portfolio was gradually upgraded with higher quality bonds. Compared to the third quarter, these negative effects were more than fully offset by higher contribution from the customer flow-driven Trading & Capital Markets business.
Net fee and commission income at SEK 3,637m (3,895) decreased by 7 per cent compared with the corresponding quarter 2010 and rose by 4 per cent from the previous quarter. Performance and transaction fees were seasonally higher in the fourth quarter and were in line with the corresponding quarter last year.
Net financial income at SEK 589m (506) increased by 16 per cent compared with the corresponding quarter 2010 and decreased 35 per cent compared with the third quarter. Within the customer trading operations, the FX trading result was strong, benefiting from high activity and market volatility. Net financial income was negatively affected by realised and unrealised losses of SEK 214m on securities directly impacted by the European sovereign debt crisis in the quarter.
Net life insurance income at SEK 992m increased by 51 and 27 per cent, compared with the previous quarter and the corresponding quarter last year, respectively. There has been a recovery in the non-unit linked income compared with the sharp drop in the third quarter. Unit linked income continued to increase.
Net other income at SEK -202m (314) reflected effects from hedge accounting and was negatively affected by realised losses of SEK 226m on so called GIIPS-related securities classified as Available-for-Sale.
Operating expenses
Total operating expenses, at SEK 5,928m, decreased by 3 per cent compared with the corresponding quarter last year. Staff costs also decreased by 3 per cent compared with the same period. The 7 per cent higher operating expenses compared with the previous quarter primarily reflected seasonally higher IT-costs.
Credit losses and provisions
Provisions for credit losses amounted to SEK 240m for the quarter (501 were reversed in the corresponding quarter 2010). The asset quality in the Baltic countries continued to improve and the relatively small write-back of provisions reflected SEB's conservative stance with regard to the increasing European macroeconomic woes. Net credit losses outside the Baltic countries were low and stable.
Individually assessed impaired loans decreased by SEK 1,448m to SEK 11,090m during the quarter. Individually assessed impaired loans in the Baltic region decreased by SEK 1bn, or 12 per cent. Successful restructuring and positive risk migration were the main reasons for the change.
The Group's portfolio assessed loans past due >60 days decreased by SEK 321m during the quarter to SEK 6,483m, of which SEK 4,366m relates to the Baltic countries' operations. The outstanding amount of restructured Baltic household loans was down by SEK 29m to SEK 501m.
The total reserve ratio for individually assessed impaired loans and the total non-performing loans coverage ratio increased during the quarter to 71 and 64 per cent, respectively.
Discontinued operations
Discontinued operations, at SEK -300m, included the combined effects during the quarter from the divestment of the Ukrainian and German retail businesses. In line with the announcement in November of the agreement to sell retail banking operations in Ukraine, these operations have been classified as discontinued operations. A loss of SEK 265m which will be realised at the completion of the transaction is recognised in the fourth quarter result. The completion of the sale is conditional upon regulatory approvals and is expected to be finalised by mid-2012.
For comparative purposes, the Group's income statement has been restated reflecting the divestment of SEB's Ukrainian retail business. Both the Ukrainian and the German retail businesses that have been sold are reported as discontinued operations.
The full year 2011
Operating profit for 2011 amounted to SEK 15,345m (11,389), an increase of 35 per cent. The effect of the stronger Swedish krona lowered operating profit by SEK 485m compared with last year. Net profit from continuing operations rose to SEK 12,299m (8,820).
Net profit (after tax) including the negative effect of SEK 1,155m (2,022) from the discontinued German and Ukrainian retail operations was SEK 11,144m (6,798) an increase of 64 per cent year on year.
Operating income
Total operating income amounted to SEK 37,686m (36,735), an increase of 3 per cent compared with 2010.
Net interest income at SEK 16,901m (15,930) was 6 per cent higher than 2010. Customer loans and deposits combined contributed SEK 1,820m more to net interest income compared with 2010 as the average lending volume was 7 per cent higher and deposit volumes 8 per cent up.
Net interest income from other activities was SEK 849m lower compared with 2010 due to several effects. Higher short-term rates had a positive impact. There were negative effects from reduced bond holdings, a shift of the liquidity portfolio towards AAA-rated securities and terming-out of funding. Also, the post-closing effects from the sale of the German retail operations were negative. The fee to the Swedish government's stabilisation fund doubled from 2010, and amounted to SEK 515m, which also reduced net interest income.
Net fee and commission income, at SEK 14,175m, was flat compared with 2010 (14,120). A decrease in securities commissions and payment fees was offset by higher lending fees.
Net financial income increased to SEK 3,548m (3,148), mainly due to high activity in foreign exchange and capital markets businesses during the year. Net financial income was negatively affected by realised and unrealised losses of SEK 612m on securities directly impacted by the European sovereign debt crisis in 2011.
Net life insurance income decreased by 2 per cent to SEK 3,197m (3,255), primarily due to lower asset valuations in financial markets and low interest rates.
Net other income was negative at SEK 135m (282) and included realised losses of SEK 357m in 2011 from the sale of the so-called GIIPS securities. Other income also included normal hedge accounting effects.
Operating expenses
Total operating expenses decreased by 3 per cent to SEK 23,121m (23,751).
Staff costs were unchanged from the prior year at SEK 13,933m (13,920). Higher other expenses include costs for improvements in the IT infrastructure.
Credit losses and provisions
A net release of provisions for credit losses of SEK 778m reflected the continued improved asset quality in the Baltic countries. During the year, the total net releases in the Baltic division were SEK 1,485m.
Individually assessed impaired loans decreased by SEK 6,128m to SEK 11,090m during the year, mainly due to the continued improvement in the Baltic countries, where impaired loans decreased by SEK 3,551m, or 33 per cent. Positive risk migration following the economic stabilisation was the main reason for the change.
The Group's portfolio assessed loans past due >60 days decreased by SEK 51m during the year to SEK 6,483m. In the Baltic countries the portfolio assessed loans decreased by SEK 129m. The outstanding amount of restructured Baltic household loans was SEK 501m, unchanged in 2011.
The total reserve ratio for individually assessed impaired loans increased to 71 per cent (69), while the total nonperforming loans coverage ratio for the Group has decreased to 64 per cent (66).
Income tax expense
Total income tax amounted to SEK 3,046m (2,569) corresponding to an effective tax rate of 20 per cent (23).
Discontinued operations
Discontinued operations, at SEK -1,155m, included the combined result from the divestments of retail operations in both Germany and Ukraine. For both divestments, work and discussions to finalise the closing and operational separation are on-going.
Business volumes
Total assets as at 31 December 2011 amounted to SEK 2,363bn (2,180). Loans to the public increased to SEK 1,186bn (1,075). Corporate lending increased by SEK 62bn and household loans by SEK 46bn. Deposits from the public increased to SEK 862bn (712).
The Ukrainian retail assets and liabilities held for sale amounted to SEK 2bn.
SEB's total credit portfolio increased, to SEK 1,702bn (1,589, excluding the German retail portfolio). There was an increase of SEK 76bn, or 8 per cent, in the combined corporate and property management segments during the year. Both lending and commitments increased.
SEB's net position in fixed-income securities for investment, treasury and client facilitation purposes amounted to SEK 247bn (278), of which the bond investment portfolio was SEK 28bn (48). During the year, the strategic structural shift in the overall net position of fixed income securities from unsecured financials and structured bonds into sovereign and covered bonds continued. The total bond exposure to Greece, Italy, Ireland, Portugal and Spain amounted to SEK 14bn in nominal amounts (19), of which sovereign holdings amounted to SEK 1bn with a recorded value of SEK 417m.
As at year-end, assets under management amounted to SEK 1,261bn (1,399). The net inflow of assets was SEK 43bn. The decrease in value amounted to SEK 198bn and the acquisition of Irish Life International added SEK 17bn. Assets under custody amounted to SEK 4,490bn (5,072).
Market risk
During 2011, Value at Risk in the trading operations averaged SEK 211m. On average, the Group should not expect to lose more than this amount during a ten-day period, with 99 per cent probability.
The trading business is solely customer flow-driven, confirmed by the fact that there were only two loss-making days in 2011 with an average loss of SEK 5m.
Liquidity and long-term funding
SEB's loan-to-deposit ratio was 129 per cent (138), excluding repos and debt instruments. An important factor was the deposit base which increased by SEK 136bn. As per year-end, the matched funding of net cash inflows and outflows remained above two years. SEK 126bn of new long-term funding was raised during the year, while SEK 98bn matured.
In order to increase transparency regarding liquidity management, a common definition of liquidity reserves has been agreed within the Swedish Bankers' Association. The liquidity reserve at 31 December amounted to SEK 377bn. SEB's total liquid resources, including net trading assets and unutilised collateral in the cover pool, amounted to SEK 616bn. The Group's best estimate of the Liquidity Coverage Ratio (LCR), which is proposed to be included in the Swedish Basel III implementation from 2013, amounted to 95 per cent at year-end, while the USD and EUR LCR were above 100 per cent.
Capital position
As per year-end, the Basel II core Tier 1 capital ratio was 13.7 per cent (12.2) and the Tier 1 capital ratio was 15.9 per cent (14.2). The Group's risk-weighted assets (RWA) amounted to SEK 679bn (716). Adjusted for the RWA effect of SEK 37bn from the sale of the German retail operations, RWA was virtually unchanged.
Adjusted for the supervisory transitional rules, SEB reported RWA of SEK 828bn (800), a Core Tier 1 capital ratio of 11.2 per cent (10.9) and a Tier 1 capital ratio of 13.0 per cent (12.8).
Dividend
The Board proposes to the AGM a dividend of SEK 1.75 per Class A and Class C share, which corresponds to a pay-out ratio of 35 per cent. The total dividend amounts to SEK 3,836m (3,291), calculated on the total number of issued shares as per 31 December 2011, including repurchased shares. The SEB share will be traded ex-dividend on 30 March 2012. The proposed record date for the dividend is 3 April 2012 and dividend payments will be disbursed on 10 April 2012.
The proposal shall be seen with reference to the 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.
Rating
In December 2011, Standard & Poor's upgraded SEB's longterm senior unsecured rating to A+. SEB's long-term senior unsecured ratings are now 'A1', 'A+' and 'A+' by Moody's, Standard & Poor's and Fitch, respectively. All ratings have a stable outlook.
Risks and uncertainties
The macroeconomic environment is the major driver of risk to the Group's earnings and financial stability. In particular, it affects the asset quality and thereby the credit risk of the Group. The medium-term outlook for the global economy is characterised by uncertainty – while Nordic economies are still robust, austerity measures in many countries may increase sovereign risk and create subdued economic growth, which could impact SEB's main markets. Such an impact has been evident following the increased uncertainty during 2011. Also, sovereign risk may impact valuations of bond holdings.
SEB also assumes market, liquidity, operational and life insurance risks. The risk composition of the Group, as well as the related risk management, is further described in SEB's annual report.
SEB's competitive situation may be negatively affected by specific Swedish tailoring and earlier implementation of the internationally agreed Basel III regulatory framework in relation to capital, liquidity and funding standards.
Effects from future changes in pension accounting
During 2011, IASB issued an amendment to IAS 19, Employee Benefits, on accounting for defined benefit obligations that may be implemented from 1 January 2013 (pending expected EU endorsement in Q1 2012). The new accounting standard stipulates that any unrecognized deficit between the market value of assets held to meet future pension obligations and the value of these pensions obligations should be deducted from equity at Group level (these differences have been built up due to the currently authorised use of the 'corridor method' of accounting). At the parent company level, Swedish rules according to the Act on Safeguarding of Pension Commitments (Tryggandelagen) remains in force.
If the new standard had been applied at the end of 2011, a deduction against equity of SEK 5.3bn would have been the result. The regulatory treatment which will have an effect on the capital ratios remains to be finalised.
Changes in management accounting 2012
Following the increased clarification of the Basel III regulation for capital, liquidity and funding and to be implemented in Sweden starting 2013, SEB will amend the framework for capital and liquidity management. In 2012, the capital allocation will reflect the new capital requirements and the internal funds transfer pricing will reflect the increased buffers of liquidity required going forward. The impact on divisional reporting will be clarified closer to the release of next interim report.
Stockholm, 7 February 2012
The President declares that the Annual Accounts 2011 provides a fair overview of the Parent Company's and the Group's operations, their financial position and results and describes material risks and uncertainties facing the Parent Company and the Group.
Annika Falkengren
President and Chief Executive Officer
Press conference and webcasts
The press conference at 9.30 (CET) on 7 February 2012 at Kungsträdgårdsgatan 8 with President and CEO Annika Falkengren can be followed live in Swedish on www.sebgroup.se/ir and translated into English on www.sebgroup.com/ir. It will also be available afterwards.
Access to telephone conference
The telephone conference at 15.00 (CET) on 7 February 2012 with President and CEO Annika Falkengren and CFO Jan Erik Back can be accessed by telephone, +44(0)20 7162 0025. Please quote conference id: 910708, not later than 10 minutes in advance. A replay of the conference call will be available on www.sebgroup.com/ir.
Financial information calendar
| 7 March 2012 | Annual Report on www.sebgroup.com |
|---|---|
| 29 March 2012 | Annual General Meeting |
| 24 April 2012 | Interim report Jan-Mar 2012 |
| 16 July 2012 | Interim report Jan-Jun 2012 |
| 25 October 2012 | Interim report Jan-Sep 2012 |
| 31 January 2013 | Annual Accounts 2012 |
Events after the quarter
As of 7 February 2012, the Group Executive Committee includes Annika Falkengren, Johan Andersson, Jan Erik Back, Magnus Carlsson, Viveka Hirdman-Ryrberg, Martin Johansson, Anders Johnsson, Ulf Peterson and Mats Torstendahl.
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 Viveka Hirdman-Ryrberg, Head of Corporate Communications Tel: +46 8 763 85 77, +46 70 550 35 00 Malin Schenkenberg, Financial Information Officer Tel: +46 8 763 95 31, +46 70 763 95 31
Skandinaviska Enskilda Banken AB (publ) SE-106 40 Stockholm, Sweden Telephone: +46 771 62 10 00 www.sebgroup.com Corporate organisation number: 502032-9081
SEB's Fact Book is available on www.sebgroup.com/ir
Accounting policies
This Interim Report is presented in accordance with IAS 34 Interim Financial Reporting.
The Group's consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) and interpretations of these standards as adopted by the European Commission. The accounting follows the Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) and the regulation and general guidelines issued by the Swedish Financial Supervisory Authority: Annual reports in credit institutions and securities companies (FFFS 2008:25). In addition, the Supplementary accounting rules for groups (RFR 1) from the Swedish Financial Reporting Board have been applied. The Parent company has prepared its accounts in accordance with Swedish Annual Act for Credit Institutions and Securities Companies, the Swedish Financial Supervisory Authority's regulations and general guidelines (FFFS 2008:25) on annual
reports in credit institutions and securities companies and the supplementary accounting rules for legal entities (RFR 2) from the Swedish Financial Reporting Board.
As from 2011, the following changes have been introduced in the accounting standards: IAS 24 (revised 2010) Related Party Disclosures, IAS 32 (amendment) Financial Instruments: Classification, IFRS 7 (amendment) Financial instruments: Disclosures, IFRIC 14 (amendment) Prepayments of a Minimum Funding Requirement, and IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments. The changes have not had a material effect on the consolidated financial statements for 2011.
In all other respects, the Group's and the Parent company's accounting policies, basis for calculations and presentations are, in all material aspects, unchanged in comparison with the 2010 Annual Report.
The SEB Group
Income statement – SEB Group
| Q4 Q3 |
Jan - Dec | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 4 318 | 4 122 | 5 | 4 505 | -4 | 16 901 | 15 930 | 6 |
| Net fee and commission income | 3 637 | 3 489 | 4 | 3 895 | -7 | 14 175 | 14 120 | 0 |
| Net financial income | 589 | 903 | -35 | 506 | 16 | 3 548 | 3 148 | 13 |
| Net life insurance income | 992 | 659 | 51 | 780 | 27 | 3 197 | 3 255 | -2 |
| Net other income | - 202 | 34 | 314 | - 135 | 282 | |||
| Total operating income | 9 334 | 9 207 | 1 | 10 000 | -7 | 37 686 | 36 735 | 3 |
| Staff costs | -3 423 | -3 393 | 1 | -3 538 | -3 | -13 933 | -13 920 | 0 |
| Other expenses | -2 030 | -1 705 | 19 | -1 938 | 5 | -7 424 | -7 213 | 3 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 475 | - 435 | 9 | - 644 | -26 | -1 764 | -1 854 | -5 |
| Restructuring costs | - 9 | -100 | - 764 | -100 | ||||
| Total operating expenses | -5 928 | -5 533 | 7 | -6 129 | -3 | -23 121 | -23 751 | -3 |
| Profit before credit losses | 3 406 | 3 674 | -7 | 3 871 | -12 | 14 565 | 12 984 | 12 |
| Gains less losses from disposals of tangible and | ||||||||
| intangible assets | - 1 | 2 | 20 | 2 | 14 | |||
| Net credit losses | - 240 | 33 | 501 | 778 | -1 609 | |||
| Operating profit | 3 165 | 3 709 | -15 | 4 392 | -28 | 15 345 | 11 389 | 35 |
| Income tax expense | - 531 | - 861 | -38 | - 752 | -29 | -3 046 | -2 569 | 19 |
| Net profit from continuing operations | 2 634 | 2 848 | -8 | 3 640 | -28 | 12 299 | 8 820 | 39 |
| Discontinued operations | - 300 | - 24 | - 131 | 129 | -1 155 | -2 022 | -43 | |
| Net profit | 2 334 | 2 824 | - 17 | 3 509 | - 33 | 11 144 | 6 798 | 64 |
| Attributable to minority interests | 10 | 7 | 43 | 6 | 67 | 37 | 53 | -30 |
| Attributable to shareholders | 2 324 | 2 817 | -18 | 3 503 | -34 | 11 107 | 6 745 | 65 |
| Continuing operations | ||||||||
| Basic earnings per share, SEK | 1.20 | 1.29 | 1.66 | 5.59 | 4.00 | |||
| Diluted earnings per share, SEK | 1.20 | 1.29 | 1.64 | 5.56 | 3.98 | |||
| Total operations | ||||||||
| Basic earnings per share, SEK | 1.06 | 1.28 | 1.60 | 5.06 | 3.07 | |||
| Diluted earnings per share, SEK | 1.06 | 1.28 | 1.58 | 5.04 | 3.06 |
Statement of comprehensive income
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net profit | 2 334 | 2 824 | -17 | 3 509 | -33 | 11 144 | 6 798 | 64 |
| Available-for-sale financial assets | 203 | 322 | -37 | - 377 | -154 | 722 | - 629 | |
| Cash flow hedges | 203 | 1 302 | -84 | - 731 | -128 | 1 529 | -1 215 | |
| Translation of foreign operations | - 437 | 44 | 215 | - 140 | - 733 | -81 | ||
| Taxes on translation effects | - 363 | 123 | - 186 | 95 | - 76 | -1 574 | -95 | |
| Other | - 177 | - 216 | -18 | - 61 | 190 | - 454 | 100 | |
| Other comprehensive income (net of tax) | - 571 | 1 575 | - 136 | - 1 140 | -50 | 1 581 | -4 051 | - 139 |
| Total comprehensive income | 1 763 | 4 399 | - 60 | 2 369 | -26 | 12 725 | 2 747 | |
| Attributable to minority interests | 8 | 12 | -33 | - 3 | 36 | 14 | 157 | |
| Attributable to shareholders | 1 755 | 4 387 | -60 | 2 372 | -26 | 12 689 | 2 733 |
Key figures – SEB Group
| Q4 Q3 |
|||||
|---|---|---|---|---|---|
| 2011 | 2011 | Q4 2010 |
Jan - Dec 2011 |
2010 | |
| Continuing operations | |||||
| Return on equity, continuing operations, % | 9.74 | 10.86 | 14.81 | 11.89 | 8.89 |
| Basic earnings per share, continuing operations, SEK | 1.20 | 1.29 | 1.66 | 5.59 | 4.00 |
| Diluted earnings per share, continuing operations, SEK | 1.20 | 1.29 | 1.64 | 5.56 | 3.98 |
| Cost/income ratio, continuing operations | 0.64 | 0.60 | 0.61 | 0.61 | 0.65 |
| Number of full time equivalents, continuing operations* | 16,807 | 16,790 | 16,588 | 16,704 | 16,323 |
| Total operations | |||||
| Return on equity, % | 8.63 | 10.77 | 14.28 | 10.77 | 6.84 |
| Return on total assets, % | 0.40 | 0.50 | 0.63 | 0.50 | 0.30 |
| Return on risk-weighted assets, % | 1.13 | 1.40 | 1.73 | 1.39 | 0.83 |
| Basic earnings per share, SEK | 1.06 | 1.28 | 1.60 | 5.06 | 3.07 |
| Weighted average number of shares, millions** | 2,193 | 2,194 | 2,194 | 2,194 | 2,194 |
| Diluted earnings per share, SEK | 1.06 | 1.28 | 1.58 | 5.04 | 3.06 |
| Weighted average number of diluted shares, millions*** | 2,203 | 2,205 | 2,212 | 2,204 | 2,202 |
| Net worth per share, SEK | 54.92 | 53.81 | 50.34 | 54.92 | 50.34 |
| Average shareholders' equity, SEK, billion | 107.8 | 104.6 | 98.1 | 103.1 | 98.7 |
| Credit loss level, % | 0.08 | -0.01 | -0.07 | -0.08 | 0.15 |
| Total reserve ratio individually assessed impaired loans, % | 71.1 | 68.6 | 69.2 | 71.1 | 69.2 |
| Net level of impaired loans, % | 0.37 | 0.43 | 0.62 | 0.37 | 0.62 |
| Gross level of impaired loans, % | 0.79 | 0.90 | 1.26 | 0.79 | 1.26 |
| Basel II (Legal reporting with transitional floor) :**** | |||||
| Risk-weighted assets, SEK billion | 828 | 827 | 800 | 828 | 800 |
| Core Tier 1 capital ratio, % | 11.25 | 11.25 | 10.93 | 11.25 | 10.93 |
| Tier 1 capital ratio, % | 13.01 | 13.06 | 12.75 | 13.01 | 12.75 |
| Total capital ratio, % | 12.50 | 12.77 | 12.40 | 12.50 | 12.40 |
| Basel II (without transitional floor): | |||||
| Risk-weighted assets, SEK billion | 679 | 667 | 716 | 679 | 716 |
| Core Tier 1 capital ratio, % | 13.71 | 13.94 | 12.20 | 13.71 | 12.20 |
| Tier 1 capital ratio, % | 15.87 | 16.18 | 14.24 | 15.87 | 14.24 |
| Total capital ratio, % | 15.24 | 15.83 | 13.85 | 15.24 | 13.85 |
| Number of full time equivalents* | 17,571 | 17,620 | 19,220 | 17,633 | 19,125 |
| Assets under custody, SEK billion | 4,490 | 4,321 | 5,072 | 4,490 | 5,072 |
| Assets under management, SEK billion | 1,261 | 1,241 | 1,399 | 1,261 | 1,399 |
| Discontinued operations | |||||
| Basic earnings per share, discontinued operations, SEK | -0.14 | -0.01 | -0.06 | -0.53 | -0.93 |
| Diluted earnings per share, discontinued operations, SEK | -0.14 | -0.01 | -0.06 | -0.52 | -0.92 |
* Quarterly numbers are for last month of quarter. Accumulated numbers are average for the period.
** The number of issued shares was 2,194,171,802. SEB owned 267,360 Class A shares for the employee stock option programme at year end 2010. During 2011 SEB has repurchased 3,000,000 shares and 922,994 shares have been sold as employee stock options have been exercised. Thus, as at 31 December 2011 SEB owned 2,344,366 Class A-shares with a market value of SEK 94m.
*** 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 | 2011 | 2011 | 2011 | 2011 | 2010 |
| Net interest income | 4 318 | 4 122 | 4 215 | 4 246 | 4 505 |
| Net fee and commission income | 3 637 | 3 489 | 3 554 | 3 495 | 3 895 |
| Net financial income | 589 | 903 | 825 | 1 231 | 506 |
| Net life insurance income | 992 | 659 | 764 | 782 | 780 |
| Net other income | - 202 | 34 | 143 | - 110 | 314 |
| Total operating income | 9 334 | 9 207 | 9 501 | 9 644 | 10 000 |
| Staff costs | -3 423 | -3 393 | -3 525 | -3 592 | -3 538 |
| Other expenses | -2 030 | -1 705 | -1 904 | -1 785 | -1 938 |
| Depreciation, amortisation and impairment of tangible and | |||||
| intangible assets | - 475 | - 435 | - 425 | - 429 | - 644 |
| Restructuring costs | - 9 | ||||
| Total operating expenses | -5 928 | -5 533 | -5 854 | -5 806 | -6 129 |
| Profit before credit losses | 3 406 | 3 674 | 3 647 | 3 838 | 3 871 |
| Gains less losses from disposals of tangible and intangible | |||||
| assets | - 1 | 2 | - 5 | 6 | 20 |
| Net credit losses | - 240 | 33 | 558 | 427 | 501 |
| Operating profit | 3 165 | 3 709 | 4 200 | 4 271 | 4 392 |
| Income tax expense | - 531 | - 861 | - 789 | - 865 | - 752 |
| Net profit from continuing operations | 2 634 | 2 848 | 3 411 | 3 406 | 3 640 |
| Discontinued operations | - 300 | - 24 | - 41 | - 790 | - 131 |
| Net profit | 2 334 | 2 824 | 3 370 | 2 616 | 3 509 |
| Attributable to minority interests Attributable to shareholders |
10 2 324 |
7 2 817 |
6 3 364 |
14 2 602 |
6 3 503 |
| Continuing operations | |||||
| Basic earnings per share, SEK | 1.20 | 1.29 | 1.55 | 1.55 | 1.66 |
| Diluted earnings per share, SEK | 1.20 | 1.29 | 1.54 | 1.54 | 1.64 |
| Total operations | |||||
| Basic earnings per share, SEK | 1.06 | 1.28 | 1.53 | 1.19 | 1.60 |
| Diluted earnings per share, SEK | 1.06 | 1.28 | 1.52 | 1.18 | 1.58 |
Income statement, by Division – SEB Group
| Merchant | Retail | Wealth | Other incl | ||||
|---|---|---|---|---|---|---|---|
| Jan-Dec 2011, SEK m | Banking | Banking | Management | Life* | Baltic | eliminations | SEB Group |
| Net interest income | 7 533 | 5 846 | 636 | - 33 | 1 980 | 939 | 16 901 |
| Net fee and commission income | 5 378 | 3 175 | 3 717 | 894 | 1 011 | 14 175 | |
| Net financial income | 4 000 | 302 | 87 | 365 | -1 206 | 3 548 | |
| Net life insurance income | 4 504 | -1 307 | 3 197 | ||||
| Net other income | 618 | 96 | 7 | - 33 | - 823 | - 135 | |
| Total operating income | 17 529 | 9 419 | 4 447 | 4 471 | 3 206 | -1 386 | 37 686 |
| Staff costs | -3 915 | -2 694 | -1 406 | -1 193 | - 699 | -4 026 | -13 933 |
| Other expenses | -4 841 | -3 568 | -1 502 | - 536 | -1 113 | 4 136 | -7 424 |
| Depreciation, amortisation and impairment of | |||||||
| tangible and intangible assets | - 227 | - 79 | - 49 | - 785 | - 133 | - 491 | -1 764 |
| Total operating expenses | -8 983 | -6 341 | -2 957 | -2 514 | -1 945 | - 381 | -23 121 |
| Profit before credit losses | 8 546 | 3 078 | 1 490 | 1 957 | 1 261 | -1 767 | 14 565 |
| Gains less losses from disposals of tangible and | |||||||
| intangible assets | - 1 | 2 | 1 | 2 | |||
| Net credit losses | - 224 | - 476 | - 9 | 1 485 | 2 | 778 | |
| Operating profit | 8 321 | 2 602 | 1 481 | 1 957 | 2 748 | -1 764 | 15 345 |
* Business result in Life amounted to SEK 3,145m (3,182), of which change in surplus values was net SEK 1,188m (1,045).
Merchant Banking
Merchant Banking has two large business areas - Trading and Capital Markets and Global Transaction Services. 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 | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 2 033 | 1 883 | 8 | 1 966 | 3 | 7 533 | 7 328 | 3 |
| Net fee and commission income | 1 406 | 1 371 | 3 | 1 503 | - 6 | 5 378 | 5 275 | 2 |
| Net financial income | 904 | 1 016 | - 11 | 607 | 49 | 4 000 | 3 366 | 19 |
| Net other income | 237 | 211 | 12 | 155 | 53 | 618 | 322 | 92 |
| Total operating income | 4 580 | 4 481 | 2 | 4 231 | 8 | 17 529 | 16 291 | 8 |
| Staff costs | - 872 | - 983 | - 11 | -1 084 | - 20 | -3 915 | -3 959 | - 1 |
| Other expenses | -1 215 | -1 150 | 6 | -1 230 | - 1 | -4 841 | -4 649 | 4 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 80 | - 46 | 74 | - 63 | 27 | - 227 | - 170 | 34 |
| Total operating expenses | -2 167 | -2 179 | - 1 | -2 377 | - 9 | -8 983 | -8 778 | 2 |
| Profit before credit losses | 2 413 | 2 302 | 5 | 1 854 | 30 | 8 546 | 7 513 | 14 |
| Gains less losses from disposals of tangible and | ||||||||
| intangible assets | - 1 | 23 | - 104 | - 1 | 20 | - 105 | ||
| Net credit losses | - 87 | - 53 | 64 | - 99 | - 12 | - 224 | - 203 | 10 |
| Operating profit | 2 325 | 2 249 | 3 | 1 778 | 31 | 8 321 | 7 330 | 14 |
| Cost/Income ratio | 0,47 | 0,49 | 0,56 | 0,51 | 0,54 | |||
| Business equity, SEK bn | 27,3 | 27,6 | 25,7 | 26,7 | 25,8 | |||
| Return on business equity, % | 24,5 | 23,5 | 19,9 | 22,4 | 20,5 | |||
| Number of full time equivalents | 2 508 | 2 503 | 2 394 | 2 493 | 2 343 |
- Customers adjusted to the market uncertainties which increased business activity
- SEB delivered on its growth plans in the Nordic countries and Germany
- Higher operating profit reflecting increased volumes and maintained strong asset quality
Comments on 2011
The European debt crisis and global growth concerns characterised 2011. Most stock exchanges closed the year with double digit negative indices and M&A activity remained subdued. Times like these reinforce the importance of SEB's strategy to pursue active customer relationships with a longterm perspective. The customers were active and continued to request services across most business areas. This resulted in solid profitability with maintained strong asset quality.
Operating income increased by 8 per cent on a year-onyear basis and compared with the last quarter of 2010. Operating expenses for the full year were up by 2 per cent compared with 2010 and decreased by 9 per cent in the last quarter 2011 compared with the same period 2010. Operating profit amounted to SEK 8,321m, up 14 per cent year-on-year.
SEB's trading business is customer flow-driven and it generated stable operating profits for Trading & Capital Markets. Customer activity levels increased in the foreign exchange and capital markets areas as customers adapted to the uncertain markets. Higher volatility spurred stock market volumes and SEB Enskilda Equities continued as the market
leader on the Nordic and Baltic exchanges. Operating profit grew by 4 per cent in 2011 compared with 2010.
Global Transaction Services benefited from higher interest rates and a continued strong momentum in all geographies and customer segments. Assets under custody reflected the lower stock market values and amounted to SEK 4,490bn (5,072). Operating profit was 41 per cent higher in 2011 compared with 2010.
Corporate Banking continued the strong performance also in the fourth quarter and delivered an all-time-high yearly result due to increased business volumes. During the year, lending to the public increased with SEK 50bn while demand for M&A and Equity Capital Market services decreased. Operating profit was 14 per cent higher than in 2010.
SEB's growth initiatives in the Nordic and German wholesale segments are successful and during the year, 114 new customers have been added. In the fall of 2011, SEB received its local banking license in Hong Kong from where it will offer a wide range of products to corporate clients and global financial institutions.
Retail Banking
The Retail Banking division consists of two business areas - Sweden and Card.
Income statement
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 1 564 | 1 497 | 4 | 1 332 | 17 | 5 846 | 5 008 | 17 |
| Net fee and commission income | 825 | 740 | 11 | 848 | - 3 | 3 175 | 3 240 | - 2 |
| Net financial income | 81 | 74 | 9 | 74 | 9 | 302 | 273 | 11 |
| Net other income | 19 | 23 | - 17 | 14 | 36 | 96 | 48 | 100 |
| Total operating income | 2 489 | 2 334 | 7 | 2 268 | 10 | 9 419 | 8 569 | 10 |
| Staff costs | - 674 | - 658 | 2 | - 647 | 4 | -2 694 | -2 650 | 2 |
| Other expenses | - 878 | - 868 | 1 | - 928 | - 5 | -3 568 | -3 381 | 6 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 21 | - 20 | 5 | - 21 | 0 | - 79 | - 84 | - 6 |
| Total operating expenses | -1 573 | -1 546 | 2 | -1 596 | - 1 | -6 341 | -6 115 | 4 |
| Profit before credit losses | 916 | 788 | 16 | 672 | 36 | 3 078 | 2 454 | 25 |
| Gains less losses from disposals of tangible and | ||||||||
| intangible assets | - 1 | - 100 | ||||||
| Net credit losses | - 183 | - 111 | 65 | - 144 | 27 | - 476 | - 543 | - 12 |
| Operating profit | 733 | 677 | 8 | 528 | 39 | 2 602 | 1 910 | 36 |
| Cost/Income ratio | 0,63 | 0,66 | 0,70 | 0,67 | 0,71 | |||
| Business equity, SEK bn | 10,4 | 10,2 | 9,8 | 10,2 | 9,7 | |||
| Return on business equity, % | 20,8 | 19,6 | 16,0 | 18,9 | 14,5 | |||
| Number of full time equivalents | 3 553 | 3 521 | 3 441 | 3 532 | 3 404 |
- Strong growth in deposit and mortgage volumes due to continued high customer demand
- Corporate customer needs and the SME offering led to above market growth in corporate lending volumes
- Operating profit increased
Comments on 2011
The positive economic outlook and rising interest rates in the early part of 2011 were replaced by increasingly negative consumer and SME confidence indicators following the Euro sovereign debt crisis. Also in this environment, SEB's customers continued to be active and the division's operating profit increased significantly to SEK 2,602m (1,910).
The strategic focus on long-term customer relationships led to improved offers to retail customers, such as the launch of a new bank services to young adults as well as individual advice to 400,000 home bank customers.
During the year customers were advised to lower their risk profile and reallocate holdings from mutual fund and direct equity investments to traditional savings, such as term deposit accounts. Deposits increased by SEK 21bn to SEK 196bn. The mortgage portfolio grew by SEK 49bn (24), whereof SEK 7bn relates to the acquisition of the Swedish mortgage portfolio from DNB.
SEB's customers have high credit scores and are located in the large cities. In general, mortgage customers have a
home banking relationship with SEB. More than 95 per cent of the mortgage loans have loan-to values below 75 per cent. SEB continues to safeguard customers' repayment capacity by requiring amortizations and restrictions on the ratio of total household debt to gross income.
SEB has further strengthened its position with SME customers and is on track to reach the long-term market share target of 15 per cent. During 2011, the market share increased to 12 per cent (11). Corporate credits grew by 25 per cent and the number of SME customers by 11,000 to 117,000. SEB was for the third time in a row named SME bank of the year.
Growth of both deposit and lending volumes increased net interest income. Commission fees were stable. As a result, operating profit for Retail Sweden grew by 66 per cent in 2011 compared with 2010.
The operating profit in the card business amounted to an all time high of SEK 1,023m (957). Credit losses were 27 per cent lower than last year. Card turnover increased by 6 per cent and the average transaction amount continued to fall reflecting increasing card usage for sundry expenses.
Wealth Management
The Wealth Management division has two business areas – Private Banking and Institutional Clients.
Income statement
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 167 | 166 | 1 | 136 | 23 | 636 | 485 | 31 |
| Net fee and commission income | 1 009 | 849 | 19 | 1 115 | - 10 | 3 717 | 3 752 | - 1 |
| Net financial income | 17 | 33 | - 48 | 30 | - 43 | 87 | 89 | - 2 |
| Net other income | - 21 | - 100 | 4 | - 100 | 7 | 58 | - 88 | |
| Total operating income | 1 193 | 1 027 | 16 | 1 285 | - 7 | 4 447 | 4 384 | 1 |
| Staff costs | - 356 | - 317 | 12 | - 344 | 3 | -1 406 | -1 298 | 8 |
| Other expenses | - 390 | - 356 | 10 | - 422 | - 8 | -1 502 | -1 528 | - 2 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 17 | - 10 | 70 | - 23 | - 26 | - 49 | - 84 | - 42 |
| Total operating expenses | - 763 | - 683 | 12 | - 789 | - 3 | -2 957 | -2 910 | 2 |
| Profit before credit losses | 430 | 344 | 25 | 496 | - 13 | 1 490 | 1 474 | 1 |
| Gains less losses from disposals of tangible and | ||||||||
| intangible assets | ||||||||
| Net credit losses | - 2 | - 5 | - 60 | 7 | - 129 | - 9 | 3 | |
| Operating profit | 428 | 339 | 26 | 503 | - 15 | 1 481 | 1 477 | 0 |
| Cost/Income ratio | 0,64 | 0,67 | 0,61 | 0,66 | 0,66 | |||
| Business equity, SEK bn | 5,1 | 5,0 | 5,3 | 5,0 | 5,3 | |||
| Return on business equity, % | 24,3 | 19,5 | 27,4 | 21,3 | 20,2 | |||
| Number of full time equivalents | 995 | 1 002 | 1 005 | 1 006 | 963 |
• 1,300 new customers selected SEB Private Banking as their long-term partner in a turbulent environment
- SEK 34bn of new assets under management from Private Banking and Institutional Clients
- Stable operating profit despite a difficult market environment
Comments on 2011
In the volatile market environment that characterised 2011 SEB focused on providing pro-active and client-focused advice. This contributed to a stable level of net new money with net inflows every quarter.
Operating profit was stable compared to 2010. Operating income increased by 1 per cent primarily from strong development of the net interest income. Base commissions and brokerage fees were in line with 2010. Performance and transaction related revenues for the year amounted to SEK 399m (409). Total expenses increased by 2 per cent compared to previous year.
During the year Institutional Clients created a more integrated customer offer including mutual funds, structured products and exchange traded funds (ETF) leading to higher effectiveness and better customer support. SEB's first three ETFs under the name SpotR and a second hedge fund of fund with Private Equity upside were successfully launched.
Private Banking attracted 1,300 new clients during the year. The strength of the Private Banking offer was again confirmed by SEB attracting SEK 24bn (26) in net new assets under management in 2011, as well as by Global Private Banking which again named SEB best Nordic Private Bank.
Total assets under management amounted to SEK 1,175bn (1,321). The investment performance of two thirds of assets under management were ahead of their respective benchmarks.
Life
Life consists of three business areas - SEB Trygg Liv (Sweden), SEB Pension (Denmark) and SEB Life & Pension International (International).
Income statement
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | - 7 | - 8 | - 13 | - 5 | 40 | - 33 | - 11 | 200 |
| Net life insurance income | 1 253 | 988 | 27 | 1 106 | 13 | 4 504 | 4 550 | - 1 |
| Total operating income | 1 246 | 980 | 27 | 1 101 | 13 | 4 471 | 4 539 | - 1 |
| Staff costs | - 307 | - 289 | 6 | - 278 | 10 | -1 193 | -1 123 | 6 |
| Other expenses | - 153 | - 137 | 12 | - 141 | 9 | - 536 | - 589 | - 9 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 203 | - 198 | 3 | - 176 | 15 | - 785 | - 690 | 14 |
| Total operating expenses | - 663 | - 624 | 6 | - 595 | 11 | -2 514 | -2 402 | 5 |
| Operating profit | 583 | 356 | 64 | 506 | 15 | 1 957 | 2 137 | - 8 |
| Change in surplus values, net | 399 | 217 | 84 | 294 | 36 | 1 188 | 1 045 | 14 |
| Business result | 982 | 573 | 71 | 800 | 23 | 3 145 | 3 182 | - 1 |
| Cost/Income ratio | 0,53 | 0,64 | 0,54 | 0,56 | 0,53 | |||
| Business equity, SEK bn | 6,4 | 6,4 | 6,0 | 6,4 | 6,0 | |||
| Return on business equity, % | ||||||||
| based on operating profit | 32,1 | 19,6 | 29,7 | 26,9 | 31,3 | |||
| based on business result | 54,0 | 31,5 | 46,9 | 43,2 | 46,7 | |||
| Number of full time equivalents | 1 323 | 1 331 | 1 226 | 1 270 | 1 190 |
Surplus values in the Danish traditional business are included from 2011 and historical figures are restated.
- New markets and customers through the acquisition of Irish Life International
- Customers reallocated their assets from equity funds to fixed income and mixed funds
- Continued income growth in core unit-linked business
Comments on 2011
The work to strengthen advisory and client service support activities to assist clients in times of turbulence in the financial markets continued. Long-term customer relationships were further developed by initiatives in the retirement market. The distribution capacity and product offering in the affluent segment across Europe was reinforced by the acquisition of Irish Life International (ILI).
Operating profit for the year decreased by 8 per cent compared with last year. Unit-linked income, which represents 57 per cent of total income and 84 per cent of total sales, increased by 3 per cent due to the acquisition of ILI, while income from traditional and risk insurance and other income fell by 6 per cent. Operating profit for the fourth quarter improved significantly, up 64 per cent compared to the previous quarter, primarily due to good performance in the traditional portfolios. Solvency ratios were stable over the year.
In Sweden, unit-linked income was stable and SEB Trygg Liv continued to be the market leader within unit-linked insurance. The market share of new sales at 30 September 2011 was 21.6 per cent (22.9). Additional guarantee provisions in the Swedish traditional business amounted to SEK 53m (previous year recoveries of SEK 76m), which was the main driver for the 10 per cent lower operating profit.
Operating profit in Denmark increased by 10 per cent. Income from unit-linked, traditional and risk insurance increased whereas return from own account investments decreased.
Operating profit for International almost halved, partly explained by the expenses related to the ILI acquisition, but also due to lower income.
The premium income relating to new and existing policies amounted to SEK 29bn which was 5 per cent lower than 2010. The weighted sales volume of new policies decreased by 13 per cent to SEK 42bn, and reflects lower volumes in Sweden. The share of corporate paid policies was 68 per cent (65).
During the year, unit-linked fund value increased by SEK 7.4bn to 186.8bn. The net inflow was SEK 7.7bn and the depreciation of value was 17.9bn. In addition, the Irish acquisition contributed with SEK 17.5 bn. Total assets under management (net assets) amounted to SEK 420bn which was a decrease of 1 per cent from year-end 2010.
Baltic
The Baltic division encompasses the retail and corporate banking operations in Estonia, Latvia and Lithuania as well as the Baltic real estate holding company. In the Fact Book, the full Baltic geographical segmentation is also reported, including the operations in Corporate Finance, Structured Finance, Wealth Management and Life.
Income statement
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 514 | 524 | - 2 | 492 | 4 | 1 980 | 1 923 | 3 |
| Net fee and commission income | 227 | 218 | 4 | 235 | - 3 | 894 | 964 | - 7 |
| Net financial income | 104 | 92 | 13 | 60 | 73 | 365 | 401 | - 9 |
| Net other income | - 11 | - 5 | 120 | 11 | - 200 | - 33 | 52 | - 163 |
| Total operating income | 834 | 829 | 1 | 798 | 5 | 3 206 | 3 340 | - 4 |
| Staff costs | - 189 | - 177 | 7 | - 163 | 16 | - 699 | - 728 | - 4 |
| Other expenses | - 322 | - 278 | 16 | - 290 | 11 | -1 113 | -1 177 | - 5 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | - 35 | - 33 | 6 | - 235 | - 85 | - 133 | - 296 | - 55 |
| Total operating expenses | - 546 | - 488 | 12 | - 688 | - 21 | -1 945 | -2 201 | - 12 |
| Profit before credit losses | 288 | 341 | - 16 | 110 | 162 | 1 261 | 1 139 | 11 |
| Gains less losses from disposals of tangible and | ||||||||
| intangible assets | 2 | - 100 | - 4 | - 100 | 2 | - 5 | - 140 | |
| Net credit losses | 32 | 202 | - 84 | 736 | - 96 | 1 485 | - 873 | |
| Operating profit | 320 | 545 | - 41 | 842 | - 62 | 2 748 | 261 | |
| Cost/Income ratio | 0,65 | 0,59 | 0,86 | 0,61 | 0,66 | |||
| Business equity, SEK bn | 8,2 | 8,0 | 11,8 | 8,1 | 11,8 | |||
| Return on business equity, % | 14,4 | 24,4 | 25,7 | 30,0 | 2,2 | |||
| Number of full time equivalents | 3 061 | 3 109 | 3 203 | 3 145 | 3 208 |
- 70,000 new customers selected SEB as their home bank and there was a strong increase in deposit volumes
- SEB selected as paying agent for the Lithuanian government's deposit insurance fund following Snoras Bank's default
- Operating profit before credit losses increased and asset quality improvements supported net write backs
Comments on 2011
The Baltic economies all had a strong export led growth during the course of 2011, although there was a marked slowdown during the fourth quarter. Consumer confidence was strong in the first half of the year, but trended downward in the second half.
Operating profit of SEK 2,748m (261) in 2011 included a net release of credit provisions of SEK 1,485m (-873). Nonperforming loans declined by 23 per cent, while the total reserve ratio decreased to 63 per cent (66).
Operating income for the year decreased to SEK 3,206m (3,340). In local currency, operating income increased. Some 70,000 new home bank customers joined SEB during the year. Net financial income was 9 per cent lower than in 2010, with less FX transactions undertaken in Estonia, which joined the Eurozone on 1 January 2011.
Deposit volumes increased throughout the year in Estonia and also increased markedly in the fourth quarter in Lithuania and Latvia. The overall Baltic deposit volume of SEK 66bn increased by 15 per cent in the year. Deposit margins increased throughout 2011, but still remain below pre-crisis
levels. Customer demand for loans was robust through the first three quarters, although somewhat lower in the fourth quarter. Gross loan volumes were SEK 101bn at year-end 2011, roughly unchanged to year-end 2010. Loan margins have strengthened during the year.
Operating expenses of SEK 1,945m were 12 per cent lower than last year, but costs were up in the fourth quarter due in part to the default of Lithuania's fifth-largest bank (Snoras Bank) and its Latvian subsidiary. In Lithuania, SEB was selected as the main paying agent for the government's deposit insurance fund which resulted in a temporary increase of staff expenses and also in an increase in the deposit volumes. By the end of the year 80 per cent of the fund was disbursed.
SEB received several banking awards during the year. Most notably, the Banker named SEB as the Best Bank in both Estonia and in Latvia for 2011.
At year end, SEB's Baltic real estate holding companies held assets with a total book value of SEK 1,455m (399). The operating loss in 2011 was SEK 63m (25).
Operating profit by geography 2011
As the Relationship bank, SEB offers universal financial advice and a wide range of financial services in Sweden and the Baltic countries. In Denmark, Finland, Norway and Germany, the bank's operations have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients.
- The Nordic business generated 78 per cent of operating income
- Nordic corporate banking growth increased the Nordic corporate credit portfolio by 9 per cent
- Operating profit increased in all countries
Comments to 2011
In Sweden focus was on activities building customer relations. Merchant Banking again reaffirmed its No. 1 position with Swedish large corporates and financial institutions with a continued large share of wallet. More than 60 per cent of the largest corporations in Sweden maintain a core banking relationship with SEB (TNS SIFO Prospera 2012). Retail's net interest income increased by 17 per cent reflecting higher loan and deposit volumes. Wealth management increased income with higher volume as well as performance fees despite negative stock exchange development. Deposit volumes for all sectors increased as well as lending volumes, except for banks. Expenses were higher due to new hires and higher IT costs. The Banker named SEB as the Best Bank in Sweden.
In Norway, 2011 ended with a strong quarter driven by high activity within several business areas. Corporate Banking took part in a large number of major transactions during the year with new and existing customers. Operating income increased compared to last year and is combined with a 10 per cent reduction in costs. Operating profit for 2011 increased by 22 per cent compared to 2010.
Following a strong fourth quarter, Denmark increased operating profit in local currency to an all-time high. Continued strong performance within Corporate Banking more than off-set lower income in the trading related activities, and Life had the best result ever. With higher volumes and reduced credit losses, Cards showed stronger performance, whereas Wealth Management was negatively effected by lower overall activity.
Share of total operating income – by geography 2011
* Excluding centralised Treasury operations
In Finland, operating profit in local currency increased during the year. Corporate Banking and Trading & Capital Markets continued the positive trend while Corporate Finance had low activity level. Wealth Management's operating profit also increased compared to last year.
The growth initiatives are on track in all three Nordic countries. During 2011, 62 new large corporate customers were added.
Also in Germany, growth activities have momentum resulting in an inflow of 52 new high quality key customers. Operating profit in 2011 increased (excluding restructuring costs). In parallel, efficiency measures were commenced to reduce staff by 300 FTEs.
In Estonia, Latvia and Lithuania, operating profit improved. (See the information on the Baltic division).
| Distribution by country Jan - Dec | Operating profit | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total operating income | Total operating expenses | Operating profit | in local currency | |||||||||
| SEK m | 2011 | 2010 | % | 2011 | 2010 | % | 2011 | 2010 | % | 2011 | 2010 | % |
| Sweden | 22 262 | 20 373 | 9 | -15 336 | -14 043 | 9 | 6 489 | 6 005 | 8 | 6 489 | 6 005 | 8 |
| Norway | 2 906 | 2 845 | 2 | -1 164 | -1 315 | - 11 | 1 648 | 1 387 | 19 | 1 422 | 1 168 | 22 |
| Denmark | 2 909 | 3 020 | - 4 | -1 495 | -1 606 | - 7 | 1 349 | 1 298 | 4 | 1 113 | 1 012 | 10 |
| Finland | 1 372 | 1 272 | 8 | - 646 | - 592 | 9 | 724 | 664 | 9 | 80 | 70 | 14 |
| Germany* | 3 262 | 2 958 | 10 | -1 865 | -2 697 | - 31 | 1 348 | 145 | 0 | 149 | 15 | 0 |
| Estonia | 1 214 | 1 187 | 2 | - 590 | - 632 | - 7 | 852 | 469 | 82 | 94 | 49 | 92 |
| Latvia | 1 006 | 1 066 | - 6 | - 535 | - 601 | - 11 | 861 | 99 | 0 | 67 | 7 | 0 |
| Lithuania | 1 442 | 1 380 | 4 | - 933 | -1 066 | - 12 | 1 377 | - 112 | 0 | 527 | - 40 | 0 |
| Other countries and eliminations | 1 313 | 2 634 | - 50 | - 557 | -1 199 | - 54 | 697 | 1 434 | - 51 | |||
| Total | 37 686 | 36 735 | 3 | -23 121 | -23 751 | - 3 | 15 345 | 11 389 | 35 |
*Excluding centralised Treasury operations
The SEB Group
Net interest income – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Interest income | 14 866 | 14 406 | 3 | 11 622 | 28 | 56 163 | 45 891 | 22 |
| Interest expense | -10 548 | -10 284 | 3 | -7 117 | 48 | -39 262 | -29 961 | 31 |
| Net interest income | 4 318 | 4 122 | 5 | 4 505 | - 4 | 16 901 | 15 930 | 6 |
Net fee and commission income – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Issue of securities | 92 | 28 | 168 | - 45 | 252 | 357 | - 29 | |
| Secondary market | 525 | 485 | 8 | 544 | - 3 | 1 821 | 1 761 | 3 |
| Custody and mutual funds | 1 795 | 1 711 | 5 | 1 919 | - 6 | 7 218 | 7 066 | 2 |
| Securities commissions | 2 412 | 2 224 | 8 | 2 631 | - 8 | 9 291 | 9 184 | 1 |
| Payments | 399 | 390 | 2 | 362 | 10 | 1 575 | 1 531 | 3 |
| Card fees | 1 060 | 1 022 | 4 | 941 | 13 | 4 034 | 3 982 | 1 |
| Payment commissions | 1 459 | 1 412 | 3 | 1 303 | 12 | 5 609 | 5 513 | 2 |
| Advisory | 97 | 122 | - 20 | 137 | - 29 | 432 | 482 | - 10 |
| Lending | 461 | 474 | - 3 | 462 | 0 | 1 963 | 1 680 | 17 |
| Deposits | 27 | 27 | 26 | 4 | 106 | 103 | 3 | |
| Guarantees | 106 | 98 | 8 | 106 | 398 | 427 | - 7 | |
| Derivatives | 208 | 222 | - 6 | 117 | 78 | 715 | 518 | 38 |
| Other | 128 | 120 | 7 | 180 | - 29 | 509 | 716 | - 29 |
| Other commissions | 1 027 | 1 063 | - 3 | 1 028 | 0 | 4 123 | 3 926 | 5 |
| Fee and commission income | 4 898 | 4 699 | 4 | 4 962 | - 1 | 19 023 | 18 623 | 2 |
| Securities commissions | - 348 | - 326 | 7 | - 341 | 2 | -1 385 | -1 216 | 14 |
| Payment commissions | - 592 | - 593 | 0 | - 449 | 32 | -2 301 | -2 240 | 3 |
| Other commissions | - 321 | - 291 | 10 | - 277 | 16 | -1 162 | -1 047 | 11 |
| Fee and commission expense | -1 261 | -1 210 | 4 | -1 067 | 18 | -4 848 | -4 503 | 8 |
| Securities commissions, net | 2 064 | 1 898 | 9 | 2 290 | - 10 | 7 906 | 7 968 | - 1 |
| Payment commissions, net | 867 | 819 | 6 | 854 | 2 | 3 308 | 3 273 | 1 |
| Other commissions, net | 706 | 772 | - 9 | 751 | - 6 | 2 961 | 2 879 | 3 |
| Net fee and commission income | 3 637 | 3 489 | 4 | 3 895 | - 7 | 14 175 | 14 120 | 0 |
Net financial income – SEB Group
| Q4 | Q3 Q4 |
Jan - Dec | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Equity instruments and related derivatives | - 17 | - 357 | -95 | - 32 | - 47 | - 21 | 629 | |
| Debt instruments and related derivatives | - 64 | 793 | - 70 | - 9 | 1 057 | 478 | 121 | |
| Currency related | 848 | 613 | 38 | 600 | 41 | 2 981 | 2 089 | 43 |
| Other | - 178 | - 146 | 22 | 8 | - 469 | - 48 | ||
| Net financial income | 589 | 903 | -35 | 506 | 16 | 3 548 | 3 148 | 13 |
Net credit losses – SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Provisions: | ||||||||
| Net collective provisions for individually | ||||||||
| assessed loans | - 7 | 87 | 846 | -101 | 707 | 705 | 0 | |
| Net collective provisions for portfolio | ||||||||
| assessed loans | - 11 | - 25 | -56 | - 70 | -84 | 68 | - 831 | |
| Specific provisions | - 195 | 17 | - 675 | -71 | - 800 | -2 093 | -62 | |
| Reversal of specific provisions no longer required | 173 | 157 | 10 | 454 | -62 | 1 421 | 1 447 | -2 |
| Net provisions for off-balance sheet items | 19 | 21 | 15 | 27 | 68 | - 15 | ||
| Net provisions | - 21 | 257 | -108 | 570 | -104 | 1 464 | - 787 | |
| Write-offs: | ||||||||
| Total write-offs | - 749 | - 823 | -9 | - 309 | 142 | -2 705 | -2 160 | 25 |
| Reversal of specific provisions utilized | ||||||||
| for write-offs | 487 | 579 | -16 | 215 | 127 | 1 909 | 1 228 | 55 |
| Write-offs not previously provided for | - 262 | - 244 | - 94 | - 796 | - 932 | -15 | ||
| Recovered from previous write-offs | 43 | 20 | 115 | 25 | 72 | 110 | 110 | |
| Net write-offs | - 219 | - 224 | - 69 | - 686 | - 822 | -17 | ||
| Net credit losses | - 240 | 33 | 501 | 778 | -1 609 | -148 |
Staff costs
| Jan - Dec | ||||
|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | |
| Salaries* | -10 480 | -10 150 | 3 | |
| Short-term incentive* | -1 381 | -1 644 | -16 | |
| Long-term incentive* | - 281 | - 234 | 20 | |
| Pension costs | -1 020 | -1 093 | -7 | |
| Redundancy costs* | - 136 | - 134 | 1 | |
| Other staff costs | - 635 | - 665 | -5 | |
| Staff costs | -13 933 | -13 920 | 0 | |
| * including social charges |
| Jan - Dec | ||||
|---|---|---|---|---|
| SEK m | 2011 | 2010 | % | |
| Short-term incentive (STI) to staff | -1 123 | -1 391 | -19 | |
| Social benefit charges on STI | - 258 | - 253 | 2 | |
| Short-term incentive remuneration | -1 381 | -1 644 | -16 |
| Jan - Dec | |||
|---|---|---|---|
| SEK m | 2011 | 2010 | % |
| Long-term incentive (LTI) to staff | - 286 | - 183 | 56 |
| Social benefit charges on LTI | 5 | - 51 | -110 |
| Long-term incentive remuneration | - 281 | - 234 | 20 |
Balance sheet – SEB Group
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2011 | 2010 |
| Cash and cash balances with central banks | 148 042 | 46 488 |
| Other loans to central banks | 80 548 | 20 664 |
| Loans to other credit institutions1) | 128 763 | 183 524 |
| Loans to the public | 1 186 223 | 1 074 879 |
| Financial assets at fair value * | 670 633 | 617 746 |
| Available-for-sale financial assets * | 57 377 | 66 970 |
| Held-to-maturity investments * | 282 | 1 451 |
| Assets held for sale | 2 005 | 74 951 |
| Investments in associates | 1 289 | 1 022 |
| Tangible and intangible assets | 29 016 | 27 035 |
| Other assets | 58 475 | 65 091 |
| Total assets | 2 362 653 | 2 179 821 |
| Deposits from credit institutions | 201 274 | 212 624 |
| Deposits and borrowing from the public | 861 682 | 711 541 |
| Liabilities to policyholders | 269 683 | 263 970 |
| Debt securities | 589 873 | 530 483 |
| Financial liabilities at fair value | 232 247 | 200 690 |
| Liabilities held for sale | 1 962 | 48 339 |
| Other liabilities | 69 883 | 85 331 |
| Provisions | 1 779 | 1 748 |
| Subordinated liabilities | 25 109 | 25 552 |
| Total equity | 109 161 | 99 543 |
| Total liabilities and equity | 2 362 653 | 2 179 821 |
| * Of which bonds and other interest bearing securities including derivatives. | 456 915 | 416 849 |
1) Loans to credit institutions and liquidity placements with other direct participants in interbank fund transfer systems.
A more detailed balance sheet is included in the Fact Book.
Off-balance sheet items – SEB Group
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2011 | 2010 |
| Collateral pledged for own liabilities | 204 265 | 231 334 |
| Other pledged collateral | 221 626 | 214 989 |
| Contingent liabilities | 94 004 | 82 048 |
| Commitments | 390 352 | 388 619 |
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 2011 | |||||||||
| Opening balance | 21 942 | 80 571 | -1 725 | - 422 | -1 145 | 56 | 99 277 | 266 | 99 543 |
| Net profit | 11 107 | 11 107 | 37 | 11 144 | |||||
| Other comprehensive income (net of tax) | 722 | 1 529 | - 140 | - 529 | 1 582 | - 1 | 1 581 | ||
| Total comprehensive income | 11 107 | 722 | 1 529 | - 140 | - 529 | 12 689 | 36 | 12 725 | |
| Dividend to shareholders | -3 242 | -3 242 | -3 242 | ||||||
| Employee share programme* | 189 | 189 | 189 | ||||||
| Minority interests | 15 | 15 | - 41 | - 26 | |||||
| Change in holdings of own shares* | - 28 | - 28 | - 28 | ||||||
| Closing balance | 21 942 | 88 612 | -1 003 | 1 107 | -1 285 | - 473 | 108 900 | 261 | 109 161 |
| 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 recognised income | 6 745 | - 629 | -1 215 | - 733 | -1 435 | 2 733 | 14 | 2 747 | |
| Dividend to shareholders | -2 194 | -2 194 | -2 194 | ||||||
| Employee share programme* | - 713 | - 713 | - 713 | ||||||
| Change in holdings of own shares* | 34 | 34 | 34 | ||||||
| Closing balance | 21 942 | 80 571 | -1 725 | - 422 | -1 145 | 56 | 99 277 | 266 | 99 543 |
* The acquisition cost for the purchase or own shares is deducted from shareholders' equity.
The item includes changes in nominal amounts of equity swaps used for hedging of stock option programmes.
During 2010, SEB repurchased 0.6 million Series A shares for the long-term incentive programmes as decided at the Annual General Meeting. As stock options were exercised, 1,1 million shares were sold in 2010. As of 31 December 2010 SEB owned 0.3 million Class A shares with a market value of SEK 15m. Another 1.0 million shares have been sold as stock options were exercised in 2011. During 2011, SEB also repurchased 3.0 million Series A shares for the long-term incentive programmes as decided at the Annual General Meeting. As of 31 December 2011 SEB owned 2.3 million Class A-shares with a market value of SEK 94m.
Cash flow statement – SEB Group
| Jan - Dec | |||
|---|---|---|---|
| SEK m | 2011 | 2010 | % |
| Cash flow from operating activities | 218 830 | - 3 472 | |
| Cash flow from investment activities | - 1 952 | 935 | |
| Cash flow from financing activities | - 3 671 | - 23 490 | - 84 |
| Net increase in cash and cash equivalents | 213 207 | - 26 027 | |
| Cash and cash equivalents at the beginning of year | 63 646 | 89 673 | - 29 |
| Net increase in cash and cash equivalents | 213 207 | - 26 027 | |
| Cash and cash equivalents at the end of period1) | 276 853 | 63 646 |
1) Cash and cash equivalents at the end of period is defined as Cash and cash balances with central banks and Loans to credit institutions payable on demand.
Reclassified portfolios – SEB Group
| Q4 Q3 Q4 |
Jan - Dec | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Reclassified, SEK m | ||||||||
| Opening balance | 49 190 | 55 317 | -11 | 95 003 | -48 | 78 681 | 125 339 | -37 |
| Reclassified | ||||||||
| Amortisations | - 475 | -1 684 | -72 | -3 004 | -84 | -6 360 | -6 618 | -4 |
| Securities sold | -4 778 | -5 446 | -12 | -11 164 | -57 | -29 058 | -25 325 | 15 |
| Accrued coupon | - 51 | 35 | - 79 | -35 | - 4 | - 44 | -91 | |
| Exchange rate differences | -1 717 | 968 | -2 075 | -17 | -1 090 | -14 671 | -93 | |
| Closing balance* | 42 169 | 49 190 | - 14 | 78 681 | - 46 | 42 169 | 78 681 | -46 |
| * Market value | 39 284 | 48 585 | -19 | 77 138 | -49 | 39 284 | 77 138 | -49 |
| Fair value impact - if not reclassified, SEK m | ||||||||
| In Equity (AFS origin) | - 279 | - 429 | -35 | 458 | -161 | 21 | 2 901 | -99 |
| In Income Statements (HFT origin) | 24 | - 1 | - 511 | -105 | 127 | 49 | 159 | |
| Total | - 255 | - 430 | -41 | - 53 | 148 | 2 950 | -95 | |
| Effect in Income Statements, SEK m* | ||||||||
| Net interest income | 267 | 157 | 70 | 232 | 15 | 1 214 | 1 578 | -23 |
| Net financial income | - 901 | 734 | -1 447 | -38 | -1 147 | -9 060 | -87 | |
| Other income | - 128 | - 73 | 75 | - 180 | -29 | - 473 | - 282 | 68 |
| Total | - 762 | 818 | -193 | -1 395 | -45 | - 406 | -7 764 | -95 |
* 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 | 2011 | 2010 |
| Individually assessed impaired loans | ||
| Impaired loans, past due > 60 days | 9 831 | 14 464 |
| Impaired loans, performing or past due < 60 days | 1 259 | 2 754 |
| Total individually assessed impaired loans | 11 090 | 17 218 |
| Specific reserves | - 5 938 | - 8 883 |
| for impaired loans, past due > 60 days | - 5 311 | - 7 741 |
| for impaired loans, performing or past due < 60 days | - 627 | - 1 142 |
| Collective reserves | - 1 948 | - 3 030 |
| Impaired loans net | 3 204 | 5 305 |
| Specific reserve ratio for individually assessed impaired loans | 53.5% | 51.6% |
| Total reserve ratio for individually assessed impaired loans | 71.1% | 69.2% |
| Net level of impaired loans | 0.39% | 0.62% |
| Gross level of impaired loans | 0.84% | 1.26% |
| Portfolio assessed loans | ||
| Portfolio assessed loans past due > 60 days | 6 483 | 6 534 |
| Restructured loans | 501 | 502 |
| Collective reserves for portfolio assessed loans | - 3 351 | - 3 577 |
| Reserve ratio for portfolio assessed loans | 48.0% | 50.8% |
| Reserves | ||
| Specific reserves | - 5 938 | - 8 883 |
| Collective reserves | - 5 299 | - 6 607 |
| Reserves for off-balance sheet items | - 369 | - 476 |
| Total reserves | - 11 606 | - 15 966 |
| Non-performing loans | ||
| Non-performing loans* | 18 074 | 24 254 |
| NPL coverage ratio | 64.2% | 65.8% |
| NPL % of lending | 1.36% | 1.80% |
* Impaired loans + portfolio assessed loans > 60 days + restructured portfolio assessed loans
Seized assets – SEB Group
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2011 | 2010 |
| Properties, vehicles and equipment | 1 603 | 647 |
| Shares | 53 | 56 |
| Total seized assets | 1 656 | 703 |
Discontinued operations – SEB Group
Income statement
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Total operating income | 84 | 148 | -43 | 570 | -85 | - 535 | 2 482 | -122 |
| Total operating expenses | - 532 | - 99 | - 633 | -16 | -1 093 | -4 093 | -73 | |
| Profit before credit losses | - 448 | 49 | - 63 | -1 628 | -1 611 | 1 | ||
| Net credit losses | - 3 | 1 | - 242 | -99 | 180 | - 590 | ||
| Operating profit | - 451 | 50 | - 305 | 48 | -1 448 | -2 201 | -34 | |
| Income tax expense | 151 | - 74 | 174 | -13 | 293 | 179 | 64 | |
| Net profit from discontinued operations | - 300 | - 24 | - 131 | 129 | -1 155 | -2 022 | -43 |
Assets and liabilities held for sale
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2011 | 2010 |
| Loans to the public | 734 | 73 866 |
| Other assets | 1 271 | 1 085 |
| Total assets held for sale | 2 005 | 74 951 |
| Deposits from credit institutions | 1 275 | 6 303 |
| Deposits and borrowing from the public | 663 | 40 777 |
| Other liabilities | 24 | 1 259 |
| Total liabilities held for sale | 1 962 | 48 339 |
Cash flow statement
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Cash flow from operating activities | - 727 | 1 033 | 1167 | -162 | 27 387 | 904 | ||
| Cash flow from investment activities | 50 | 60 | -17 | -158 | 423 | - 348 | ||
| Cash flow from financing activities | 895 | - 920 | -1013 | - 27 800 | - 726 | |||
| Net increase in cash and cash equivalents | ||||||||
| from discontinued operations | 218 | 173 | 26 | - 4 | 10 | - 170 | - 106 |
Capital base of the SEB financial group of undertakings
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2011 | 2010 |
| Total equity according to balance sheet | 109,161 | 99,543 |
| Dividend (excl repurchased shares) | -3,836 | -3,291 |
| Investments outside the financial group of undertakings | -41 | -40 |
| Other deductions outside the financial group of undertakings | -3,728 | -2,688 |
| = Total equity in the capital adequacy | 101,556 | 93,524 |
| Adjustment for hedge contracts | 229 | 1,755 |
| Net provisioning amount for IRB-reported credit exposures | -108 | 0 |
| Unrealised value changes on available-for-sale financial assets | 717 | 1,724 |
| Exposures where RWA is not calculated | -914 | -1,184 |
| Goodwill | -4,147 | -4,174 |
| Other intangible assets | -2,943 | -2,564 |
| Deferred tax assets | -1,293 | -1,694 |
| = Core Tier 1 capital | 93,097 | 87,387 |
| Tier 1 capital contribution (non-innovative) | 4,455 | 4,492 |
| Tier 1 capital contribution (innovative) | 10,159 | 10,101 |
| = Tier 1 capital | 107,711 | 101,980 |
| Dated subordinated debt | 4,815 | 4,922 |
| Deduction for remaining maturity | -320 | -361 |
| Perpetual subordinated debt | 2,225 | 4,152 |
| Net provisioning amount for IRB-reported credit exposures | -108 | 91 |
| Unrealised gains on available-for-sale financial assets | 799 | 511 |
| Exposures where RWA is not calculated | -914 | -1,184 |
| Investments outside the financial group of undertakings | -41 | -40 |
| = Tier 2 capital | 6,456 | 8,091 |
| Investments in insurance companies | -10,500 | -10,500 |
| Pension assets in excess of related liabilities | -222 | -422 |
| = Capital base | 103,445 | 99,149 |
On 31 December 2011 the parent company's Tier 1 capital was SEK 98,098m (94,050m) and the reported Tier 1 capital ratio was 16.0 percent (16.0).
Risk-weighted assets 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 2010 |
|
|---|---|---|---|
| SEK m | 2011 | ||
| Credit risk IRB approach | |||
| Institutions | 29,552 | 37,405 | |
| Corporates | 394,094 | 403,128 | |
| Securitisation positions | 6,515 | 6,337 | |
| Retail mortgages | 45,241 | 65,704 | |
| Other retail exposures | 9,460 | 9,826 | |
| Other exposure classes | 1,651 | 1,511 | |
| Total credit risk IRB approach | 486,513 | 523,911 | |
| Further risk-weighted assets | |||
| Credit risk, Standardised approach | 77,485 | 91,682 | |
| Operational risk, Advanced Measurement approach | 42,267 | 44,568 | |
| Foreign exchange rate risk | 13,173 | 15,995 | |
| Trading book risks | 59,403 | 39,970 | |
| Total risk-weighted assets | 678,841 | 716,126 | |
| Summary | |||
| Credit risk | 563,998 | 615,593 | |
| Operational risk | 42,267 | 44,568 | |
| Market risk | 72,576 | 55,965 | |
| Total | 678,841 | 716,126 | |
| Adjustment for flooring rules | |||
| Addition according to transitional flooring | 148,774 | 83,672 | |
| Total reported | 827,615 | 799,798 |
Capital adequacy analysis
| Capital adequacy | 31 Dec 2011 |
31 Dec 2010 |
|---|---|---|
| Capital resources | ||
| Core Tier 1 capital | 93,097 | 87,387 |
| Tier 1 capital | 107,711 | 101,980 |
| Capital base | 103,445 | 99,149 |
| Capital adequacy without transitional floor (Basel II) | ||
| Risk-weighted assets | 678,841 | 716,126 |
| Expressed as capital requirement | 54,307 | 57,290 |
| Core Tier 1 capital ratio | 13,7% | 12,2% |
| Tier 1 capital ratio | 15,9% | 14,2% |
| Total capital ratio | 15,2% | 13,8% |
| Capital base in relation to capital requirement | 1,90 | 1,73 |
| Capital adequacy including transitional floor | ||
| Transition floor applied | 80% | 80% |
| Risk-weighted assets | 827,615 | 799,798 |
| Expressed as capital requirement | 66,209 | 63,984 |
| Core Tier 1 capital ratio | 11,2% | 10,9% |
| Tier 1 capital ratio | 13,0% | 12,8% |
| Total capital ratio | 12,5% | 12,4% |
| Capital base in relation to capital requirement | 1,56 | 1,55 |
| Capital adequacy with risk-weighting according to Basel I | ||
| Risk-weighted assets Expressed as capital requirement |
1,037,898 83,032 |
998,326 79,866 |
| Core Tier 1 capital ratio | 9,0% | 8,8% |
| Tier 1 capital ratio | 10,4% | 10,2% |
| Total capital ratio Capital base in relation to capital requirement |
10,0% 1,25 |
9,9% 1,24 |
Overall Basel II risk weighted assets ('RWA'), before the effect of transitional flooring, decreased with 5 per cent or SEK 37bn since year-end. The largest factor behind this decrease is the divestiture of the German retail portfolios (a decrease of SEK 37bn). Underlying credit volumes expressed as RWA increased SEK 38bn, mainly due to increased corporate exposures and the acquisition of DNB's retail mortgages. The Swedish krona weakened during the year resulting in an RWA increase of SEK 2bn. The effect of risk class migration was a decrease of SEK 1bn. RWA process changes resulted in an RWA decrease of SEK 24bn, whereof SEK 14bn was due to the implementation of an Advanced Unsecured loss-given-default model in the parent company. There has been a shift of exposures to better riskgrades, which resulted in declining risk-weights. This contributed to an RWA decrease of SEK 22bn. Market risk RWA has increased with SEK 17bn including the effect from introducing stressed VaR. Operational risk RWA decreased SEK 2bn during the year. Including other changes this resulted in a net decrease of
RWA according to Basel II (without transitional floor) to SEK 679bn (716).
Un-floored Basel II RWA was 35 per cent lower than Basel I RWA. SEB applies 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 a small number of insignificant portfolios.
The forthcoming regulatory directive, CRD IV, establishes explicit minimum levels for Core Tier 1 and Tier 1 capital and requires banks to hold more and higher quality capital. In addition, the Swedish government in November 2011 proposed stricter common equity ratio requirements than Basel III; 10 per cent from 2013 and 12 per cent from 2015 (with capital and RWA defined according to fully implemented CRD IV/Basel III frameworks). SEB actively monitors the regulatory development and takes part in consultations via national and international industry organisations.
The following table summarises average risk weights (Risk-Weighted Assets, 'RWA', divided by Exposure At Default, 'EAD') for exposures where RWA is calculated following the internal ratings based ('IRB') approach. Repo and securities lending 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 | 2011 | 2010 | |
| Institutions | 19,2% | 19,5% | |
| Corporates | 51,6% | 57,0% | |
| Securitisation positions | 34,9% | 20,6% | |
| Retail mortgages | 12,1% | 16,9% | |
| Other retail exposures | 37,5% | 38,2% |
Implementation of an Advanced Unsecured loss-given-default 'LGD' model and risk class migration have contributed to the decline in corporate risk-weight. The increase in risk-weight for securitisation positions is due to relatively higher amortisation in better risk grades and the CRD III requirement of increased risk-weights for resecuritisation positions. The
decrease in risk-weight for retail mortgages relates to the divestiture during the year of the German retail portfolios, typically having higher loan-to-value (and thus risk-weight) than Group averages. Excluding the German portfolios the average risk-weight for retail mortgages was 12.6 per cent at year-end 2010.
| Income statement – Skandinaviska Enskilda Banken AB (publ) | |||
|---|---|---|---|
| ------------------------------------------------------------ | -- | -- | -- |
| In accordance with FSA regulations | Q4 | Q3 | Q4 | Jan - Dec | ||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Interest income | 10 201 | 9 465 | 8 | 7 883 | 29 | 36 819 | 27 830 | 32 |
| Leasing income | 1 470 | 1 456 | 1 | 1 415 | 4 | 5 756 | 5 496 | 5 |
| Interest expense | -7 590 | -7 135 | 6 | -5 493 | 38 | -27 034 | -19 498 | 39 |
| Dividends | 196 | 1 232 | -84 | 670 | -71 | 4 409 | 2 814 | 57 |
| Fee and commission income | 2 451 | 2 130 | 15 | 2 328 | 5 | 9 030 | 8 408 | 7 |
| Fee and commission expense | - 463 | - 390 | 19 | - 361 | 28 | -1 634 | -1 501 | 9 |
| Net financial income | 708 | 872 | -19 | 449 | 58 | 3 133 | 3 239 | -3 |
| Other income | 279 | 494 | -44 | 217 | 29 | 1 183 | 532 | 122 |
| Total operating income | 7 252 | 8 124 | -11 | 7 108 | 2 | 31 662 | 27 320 | 16 |
| Administrative expenses | -3 776 | -3 372 | 12 | -3 859 | -2 | -14 479 | -13 935 | 4 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -1 317 | -1 206 | 9 | -1 165 | 13 | -4 884 | -4 630 | 5 |
| Total operating expenses | -5 093 | -4 578 | 11 | -5 024 | 1 | -19 363 | -18 565 | 4 |
| Profit before credit losses | 2 159 | 3 546 | -39 | 2 084 | 4 | 12 299 | 8 755 | 40 |
| Net credit losses | - 190 | - 114 | 67 | - 185 | 3 | - 458 | - 362 | 27 |
| Impairment of financial assets | - 27 | - 32 | -16 | 7 | - 759 | - 442 | 72 | |
| Operating profit | 1 942 | 3 400 | -43 | 1 906 | 2 | 11 082 | 7 951 | 39 |
| Appropriations | -1 119 | -1 288 | -13 | -1 119 | -1 283 | -13 | ||
| Income tax expense | - 817 | - 494 | 65 | - 155 | -2 122 | -3 020 | -30 | |
| Other taxes | 247 | - 54 | - 451 | 10 | - 75 | -113 | ||
| Net profit | 253 | 2 852 | -91 | 12 | 7 851 | 3 573 | 120 |
Statement of comprehensive income – Skandinaviska Enskilda Banken AB (publ)
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net profit | 253 | 2 852 | - 91 | 12 | 7 851 | 3 573 | 120 | |
| Available-for-sale financial assets | - 88 | - 40 | 120 | -223 | - 61 | 36 | - 337 | - 111 |
| Cash flow hedges | 204 | 1 302 | - 84 | -730 | 1 536 | -1 208 | ||
| Translation of foreign operations | - 11 | 9 | 8 | 44 | - 29 | |||
| Other | - 158 | - 233 | - 32 | 758 | - 121 | - 452 | 603 | - 175 |
| Other comprehensive income (net of tax) | - 53 | 1 038 | - 105 | - 187 | - 72 | 1 164 | - 971 | |
| Total comprehensive income | 200 | 3 890 | - 95 | - 175 | 9 015 | 2 602 |
| Balance sheet - Skandinaviska Enskilda Banken AB (publ) | |||||
|---|---|---|---|---|---|
| -- | --------------------------------------------------------- | -- | -- | -- | -- |
| Condensed | 31 Dec | 31 Dec |
|---|---|---|
| SEK m | 2011 | 2010 |
| Cash and cash balances with central banks | 121 948 | 19 941 |
| Loans to credit institutions | 245 796 | 250 568 |
| Loans to the public | 873 335 | 763 441 |
| Financial assets at fair value | 386 830 | 334 060 |
| Available-for-sale financial assets | 16 739 | 16 583 |
| Held-to-maturity investments | 2 771 | 3 685 |
| Investments in associates | 1092 | 967 |
| Shares in subsidiaries | 53 686 | 55 145 |
| Tangible and intangible assets | 43 363 | 40 907 |
| Other assets | 43 290 | 51 031 |
| Total assets | 1 788 850 | 1 536 328 |
| Deposits from credit institutions | 229 428 | 195 408 |
| Deposits and borrowing from the public | 608 645 | 484 839 |
| Debt securities | 558 747 | 488 533 |
| Financial liabilities at fair value | 226 717 | 190 638 |
| Other liabilities | 44 157 | 62 363 |
| Provisions | 76 | 180 |
| Subordinated liabilities | 24 727 | 25 096 |
| Untaxed reserves | 25 049 | 23 930 |
| Total equity | 71 304 | 65 341 |
| Total liabilities, untaxed reserves and shareholders' equity | 1 788 850 | 1 536 328 |
Off-balance sheet items - Skandinaviska Enskilda Banken AB (publ)
| 31 Dec | 31 Dec | |
|---|---|---|
| SEK m | 2011 | 2010 |
| Collateral pledged for own liabilities | 104 496 | 138 775 |
| Other pledged collateral | 51 077 | 35 663 |
| Contingent liabilities | 74 435 | 64 120 |
| Commitments | 303 315 | 291 046 |
Fact Book Annual Accounts 2011
STOCKHOLM 7 FEBRUARY 2012
| Table of contents 2 | |
|---|---|
| About SEB3 | |
| SEB history3 | |
| Financial targets 3 | |
| Organisation 4 | |
| Corporate Governance 5 | |
| Income statement 7 | |
| Balance sheet structure & funding 23 | |
| Capital adequacy and RWA 29 | |
| Volumes 32 | |
| Credit portfolio and loan portfolio by industry and geography 34 | |
| Asset quality 38 | |
| Bond investment portfolio 44 | |
| SEB's holdings of bonds with exposure to Greece, Italy, Ireland, Portugal and Spain 44 | |
| Divisional structure 45 | |
| Merchant Banking 46 | |
| Retail Banking 49 | |
| Wealth Management 53 | |
| Life 55 | |
| Baltic 64 | |
| Macro 69 | |
| Definitions 74 |
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 | 2,600 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 life insurance and the card business, SEB will grow and invest in its business also outside the Nordic countries. • Support SEB's customers internationally through its network of strategic locations in major global financial centres. |
| 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
- •1972- Merger with Skandinaviska Banken
- •1990- Swedish bank crises. Several acquisitions: Trygg Hansa (1997), Baltic banks (1998), SEB AG (1999), Ukraine (2004)
- •2011- A Nordic relationship bank. Divestment of German retail and Ukrainian retail
Financial targets
| Financial targets and outcome | 2007 | 2008 | 2009 | 2010 | 2011 | Target |
|---|---|---|---|---|---|---|
| Return on equity (per cent) | 19.3 | 13.1 | 1.2 | 6.8 | 10.8 | Competitive stable return |
| Net profit (SEK m) | 13,642 | 10,050 | 1,178 | 6,798 | 11,144 | Sustainable profit growth |
| Core Tier I capital ratio (per cent) 1) | 9.9 | 10.1 | 13.9 | 14.2 | 13.8 | 10 – 12 per cent (Basel III) |
| Dividend (per cent of earnings per share) | 33 | 0 | 172 | 49 | 352) | 40 per cent of net profit per share |
| 1) 2005–2006 Basel I. 2007–2010 Basel II without transitional rules. | over a business cycle |
2) SEK 1.75 per share proposed to the AGM
Rating
| Moody's Outlook Stable |
Standard & Poor's | Outlook Stable | Fitch Outlook Stable |
||
|---|---|---|---|---|---|
| Short | Long | Short | Long | Short | Long |
| P-1 | Aaa | A-1+ | AAA | F1+ | AAA |
| P-2 | Aa1 | A-1 | AA+ | F1 | AA+ |
| P-3 | Aa2 | A-2 | AA | F2 | AA |
| Aa3 | A-3 | AA- | F3 | AA | |
| A1 | A+ | A+ | |||
| A2 | A | A | |||
| A3 | A- | A | |||
| Baa1 | BBB+ | BBB+ | |||
| Baa2 | BBB | BBB | |||
| Baa3 | BBB- | BBB |
Organisation
Full-time equivalents, end of quarter
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | |
| Merchant Banking | 2,320 | 2,326 | 2,365 | 2,394 | 2,481 | 2,485 | 2,503 | 2,508 |
| Retail Banking | 3,326 | 3,482 | 3,430 | 3,441 | 3,498 | 3,596 | 3,521 | 3,553 |
| RB Sweden | 2,541 | 2,686 | 2,620 | 2,667 | 2,725 | 2,822 | 2,739 | 2,774 |
| RB Cards | 785 | 796 | 810 | 774 | 773 | 774 | 782 | 779 |
| Wealth Management | 952 | 945 | 971 | 1,005 | 1,007 | 1,015 | 1,002 | 995 |
| Life | 1,175 | 1,173 | 1,200 | 1,226 | 1,237 | 1,241 | 1,331 | 1,323 |
| Baltic | 3,216 | 3,185 | 3,206 | 3,203 | 3,200 | 3,179 | 3,109 | 3,061 |
| Baltic Estonia | 1,008 | 1,000 | 1,000 | 986 | 984 | 972 | 925 | 894 |
| Baltic Latvia | 852 | 843 | 863 | 871 | 886 | 895 | 894 | 874 |
| Baltic Lithuania | 1,356 | 1,342 | 1,343 | 1,346 | 1,330 | 1,312 | 1,290 | 1,293 |
| Operations & IT | 3,531 | 3,516 | 3,512 | 3,538 | 3,532 | 3,539 | 3,598 | 3,667 |
| Other total | 5,180 | 5,172 | 5,213 | 5,319 | 5,272 | 5,263 | 5,324 | 5,367 |
| SEB Group | ||||||||
| Continuing | ||||||||
| operations | 16,169 | 16,283 | 16,385 | 16,588 | 16,695 | 16,779 | 16,790 | 16,807 |
| Discontinued | ||||||||
| operations | 2,863 | 2,808 | 2,765 | 2,632 | 817 | 797 | 830 | 764 |
| SEB Group | 19,032 | 19,091 | 19,150 | 19,220 | 17,512 | 17,576 | 17,620 | 17,571 |
Corporate Governance
SEB follows the Swedish Code of Corporate Governance (Bolagsstyrningskoden). The structure of responsibility distribution and governance comprises:
- •Annual General Meeting (AGM)
- •Board of Directors
- •President/Chief Executive Officer
- •Divisions, business areas and business units
- •Staff and Support functions
- •Internal Audit, Compliance and Risk Control.
Board
The Board members are appointed by the shareholders at the AGM for a term of office of one year, until the next AGM. The Board of Directors consists of eleven members without any deputies, elected by the AGM, and of two members and two deputies appointed by the employees.
In order for the Board to form a quorum more than half of the
Group Executive Committee
The President has three different committees at her disposal; the Group Executive Committee, the Group Credit Committee and the Asset and Liability Committee. The President also consults with the IT Committee and the New Product Approval Committee. The GEC deals with, among other things, matters of common concern to several divisions, strategic issues, business plans, financial forecasts and reports.
The Board of Directors and the President perform their governing and controlling roles through several policies and instructions, the
members must be present. The President, Annika Falkengren, is the only Board member elected by the AGM who is equally an employee of the Bank. All other Board members elected by the AGM are considered to be independent in relation to the Bank and its Management.
purpose of which is to clearly define the distribution of responsibility.
The Rules of Procedure for the Board of Directors, the Instruction for the President and Chief Executive Officer, the Instruction for the Activities, the Group's Credit Instruction, Instruction for handling of Conflicts of Interest, Ethics Policy, Risk Policy, Instruction for procedures against Money Laundering and Financing of Terrorism, Remuneration Policy, Code of Business Conduct and the Corporate Sustainability Policy are of special importance.
SEB's activities are managed, controlled and followed up in accordance with policies and instructions established by the Board and the President (CEO).
Share and shareholders
The SEB share
Index
SEB's major shareholders Dividend development
| Share of capital, | |
|---|---|
| December 2011 | per cent |
| Investor AB | 20.8 |
| Trygg Foundation | 8.1 |
| Alecta | 7.2 |
| Swedbank/Robur Funds | 3.3 |
| Goverment of Norway | 2.9 |
| Nordea Funds | 1.7 |
| SEB Funds | 1.6 |
| Wallenberg Foundations | 1.5 |
| First Swedish National Pension Fund | 1.4 |
| SHB Funds | 1.3 |
| Foreign owners | 25.3 |
Source: Euroclear Sweden/SIS Ägarservice
1) No. shares adjusted for rights issue 2) Proposed to the Annual General Meeting
Income statement
SEB Group
| Q4 | Q3 | Q4 | Jan - Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 4,318 | 4,122 | 5 | 4,505 | -4 | 16,901 | 15,930 | 6 |
| Net fee and commission income | 3,637 | 3,489 | 4 | 3,895 | -7 | 14,175 | 14,120 | 0 |
| Net financial income | 589 | 903 | -35 | 506 | 16 | 3,548 | 3,148 | 13 |
| Net life insurance income | 992 | 659 | 51 | 780 | 27 | 3,197 | 3,255 | -2 |
| Net other income | -202 | 34 | 314 | -135 | 282 | -148 | ||
| Total operating income | 9,334 | 9,207 | 1 | 10,000 | -7 | 37,686 | 36,735 | 3 |
| Staff costs | -3,423 | -3,393 | 1 | -3,538 | -3 | -13,933 | -13,920 | 0 |
| Other expenses | -2,030 | -1,705 | 19 | -1,938 | 5 | -7,424 | -7,213 | 3 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -475 | -435 | 9 | -644 | -26 | -1,764 | -1,854 | -5 |
| Restructuring costs | -9 | -100 | -764 | -100 | ||||
| Total operating expenses | -5,928 | -5,533 | 7 | -6,129 | -3 | -23,121 | -23,751 | -3 |
| Profit before credit losses | 3,406 | 3,674 | -7 | 3,871 | -12 | 14,565 | 12,984 | 12 |
| Gains less losses from disposals of tangible and | ||||||||
| intangible assets | -1 | 2 | 20 | 2 | 14 | |||
| Net credit losses | -240 | 33 | 501 | 778 | -1,609 | |||
| Operating profit | 3,165 | 3,709 | -15 | 4,392 | -28 | 15,345 | 11,389 | 35 |
| Income tax expense | -531 | -861 | -38 | -752 | -29 | -3,046 | -2,569 | 19 |
| Net profit from continuing operations | 2,634 | 2,848 | -8 | 3,640 | -28 | 12,299 | 8,820 | 39 |
| Discontinued operations | -300 | -24 | -131 | 129 | -1,155 | -2,022 | -43 | |
| Net profit | 2,334 | 2,824 | -17 | 3,509 | -33 | 11,144 | 6,798 | 64 |
| Attributable to minority interests | 10 | 7 | 43 | 6 | 67 | 37 | 53 | -30 |
| Attributable to shareholders | 2,324 | 2,817 | -18 | 3,503 | -34 | 11,107 | 6,745 | 65 |
| Continuing operations | ||||||||
| Basic earnings per share, SEK | 1.20 | 1.29 | 1.66 | 5.59 | 4.00 | |||
| Diluted earnings per share, SEK | 1.20 | 1.29 | 1.64 | 5.56 | 3.98 | |||
| Total operations | ||||||||
| Basic earnings per share, SEK | 1.06 | 1.28 | 1.60 | 5.06 | 3.07 | |||
| Diluted earnings per share, SEK | 1.06 | 1.28 | 1.58 | 5.04 | 3.06 |
Including:
SEK 600m redundancies and SEK 780m VPC divest in Q4 2008
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 | ||
|---|---|---|---|---|---|
| 2011 | 2011 | 2010 | 2011 | 2010 | |
| Continuing operations | |||||
| Return on equity, continuing operations, % | 9.74 | 10.86 | 14.81 | 11.89 | 8.89 |
| Basic earnings per share, continuing operations, SEK | 1.20 | 1.29 | 1.66 | 5.59 | 4.00 |
| Diluted earnings per share, continuing operations, SEK | 1.20 | 1.29 | 1.64 | 5.56 | 3.98 |
| Cost/income ratio, continuing operations | 0.64 | 0.60 | 0.61 | 0.61 | 0.65 |
| Number of full time equivalents, continuing operations* | 16.807 | 16.790 | 16.588 | 16.704 | 16.323 |
| Total operations | |||||
| Return on equity, % | 8.63 | 10.77 | 14.28 | 10.77 | 6.84 |
| Return on total assets, % | 0.40 | 0.50 | 0.63 | 0.50 | 0.30 |
| Return on risk-weighted assets, % | 1.13 | 1.40 | 1.73 | 1.39 | 0.83 |
| Basic earnings per share, SEK | 1.06 | 1.28 | 1.60 | 5.06 | 3.07 |
| Weighted average number of shares, millions** | 2.193 | 2.194 | 2.194 | 2.194 | 2.194 |
| Diluted earnings per share, SEK | 1.06 | 1.28 | 1.58 | 5.04 | 3.06 |
| Weighted average number of diluted shares, millions*** | 2.203 | 2.205 | 2.212 | 2.204 | 2.202 |
| Net worth per share, SEK | 54.92 | 53.81 | 50.34 | 54.92 | 50.34 |
| Average shareholders' equity, SEK, billion | 107.8 | 104.6 | 98.1 | 103.1 | 98.7 |
| Credit loss level, % | 0.08 | -0.01 | -0.07 | -0.08 | 0.15 |
| Total reserve ratio individually assessed impaired loans, % | 71.1 | 68.6 | 69.2 | 71.1 | 69.2 |
| Net level of impaired loans, % | 0.37 | 0.43 | 0.62 | 0.37 | 0.62 |
| Gross level of impaired loans, % | 0.79 | 0.90 | 1.26 | 0.79 | 1.26 |
| Basel II (Legal reporting with transitional floor) :**** | |||||
| Risk-weighted assets, SEK billion | 828 | 827 | 800 | 828 | 800 |
| Core Tier 1 capital ratio, % | 11.25 | 11.25 | 10.93 | 11.25 | 10.93 |
| Tier 1 capital ratio, % | 13.01 | 13.06 | 12.75 | 13.01 | 12.75 |
| Total capital ratio, % | 12.50 | 12.77 | 12.40 | 12.50 | 12.40 |
| Basel II (without transitional floor): | |||||
| Risk-weighted assets, SEK billion | 679 | 667 | 716 | 679 | 716 |
| Core Tier 1 capital ratio, % | 13.71 | 13.94 | 12.20 | 13.71 | 12.20 |
| Tier 1 capital ratio, % | 15.87 | 16.18 | 14.24 | 15.87 | 14.24 |
| Total capital ratio, % | 15.24 | 15.83 | 13.85 | 15.24 | 13.85 |
| Number of full time equivalents* | 17.571 | 17.620 | 19.220 | 17.633 | 19.125 |
| Assets under custody, SEK billion | 4.490 | 4.321 | 5.072 | 4.490 | 5.072 |
| Assets under management, SEK billion | 1.261 | 1.241 | 1.399 | 1.261 | 1.399 |
| Discontinued operations | |||||
| Basic earnings per share, discontinued operations, SEK | -0.14 | -0.01 | -0.06 | -0.53 | -0.93 |
| Diluted earnings per share, discontinued operations, SEK | -0.14 | -0.01 | -0.06 | -0.52 | -0.92 |
* Quarterly numbers are for last month of quarter. Accumulated numbers are average for the period.
** The number of issued shares was 2,194,171,802. SEB owned 267,360 Class A shares for the employee stock option programme at year end 2010. During 2011 SEB has repurchased 3,000,000 shares and 922,994 shares have been sold as employee stock options have been exercised. Thus, as at 31 December 2011 SEB owned 2,344,366 Class A-shares with a market value of SEK 94m.
*** Calculated dilution based on the estimated economic value of the long-term incentive programmes.
**** 80 per cent of RWA in Basel I
Income statement SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 3,528 | 3,732 | 4,165 | 4,505 | 4,246 | 4,215 | 4,122 | 4,318 |
| Net fee and commission income | 3,186 | 3,663 | 3,376 | 3,895 | 3,495 | 3,554 | 3,489 | 3,637 |
| Net financial income | 945 | 973 | 724 | 506 | 1,231 | 825 | 903 | 589 |
| Net life insurance income | 879 | 778 | 818 | 780 | 782 | 764 | 659 | 992 |
| Net other income | 167 | 33 | -232 | 314 | -110 | 143 | 34 | -202 |
| Total operating income | 8,705 | 9,179 | 8,851 | 10,000 | 9,644 | 9,501 | 9,207 | 9,334 |
| Staff costs | -3,416 | -3,594 | -3,372 | -3,538 | -3,592 | -3,525 | -3,393 | -3,423 |
| Other expenses | -1,748 | -1,860 | -1,667 | -1,938 | -1,785 | -1,904 | -1,705 | -2,030 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -401 | -409 | -400 | -644 | -429 | -425 | -435 | -475 |
| Restructuring costs | -755 | -9 | ||||||
| Total operating expenses | -5,565 | -5,863 | -6,194 | -6,129 | -5,806 | -5,854 | -5,533 | -5,928 |
| Profit before credit losses | 3,140 | 3,316 | 2,657 | 3,871 | 3,838 | 3,647 | 3,674 | 3,406 |
| Gains less losses from disposals of tangible and | ||||||||
| intangible assets | -3 | -3 | 20 | 6 | -5 | 2 | -1 | |
| Net credit losses | -1,736 | -571 | 197 | 501 | 427 | 558 | 33 | -240 |
| Operating profit | 1,401 | 2,742 | 2,854 | 4,392 | 4,271 | 4,200 | 3,709 | 3,165 |
| Income tax expense | -452 | -600 | -765 | -752 | -865 | -789 | -861 | -531 |
| Net profit from continuing operations | 949 | 2,142 | 2,089 | 3,640 | 3,406 | 3,411 | 2,848 | 2,634 |
| Discontinued operations | -260 | -138 | -1,493 | -131 | -790 | -41 | -24 | -300 |
| Net profit | 689 | 2,004 | 596 | 3,509 | 2,616 | 3,370 | 2,824 | 2,334 |
| Attributable to minority interests | 15 | 17 | 15 | 6 | 14 | 6 | 7 | 10 |
| Attributable to shareholders | 674 | 1,987 | 581 | 3,503 | 2,602 | 3,364 | 2,817 | 2,324 |
Share of profit before credit losses
Jan – Dec 2011
Geography – Adjusted for Other Divisions – Adjusted for Other
Divisions
Merchant Banking
Total
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 1,782 | 1,728 | 1,852 | 1,966 | 1,732 | 1,885 | 1,883 | 2,033 |
| Net fee and commission income | 1,079 | 1,412 | 1,281 | 1,503 | 1,259 | 1,342 | 1,371 | 1,406 |
| Net financial income | 832 | 1,242 | 685 | 607 | 1,085 | 995 | 1,016 | 904 |
| Net other income | 84 | 39 | 44 | 155 | 35 | 135 | 211 | 237 |
| Total operating income | 3,777 | 4,421 | 3,862 | 4,231 | 4,111 | 4,357 | 4,481 | 4,580 |
| Staff costs | -956 | -1,076 | -843 | -1,084 | -1,062 | -998 | -983 | -872 |
| Other expenses | -1,150 | -1,203 | -1,066 | -1,230 | -1,207 | -1,269 | -1,150 | -1,215 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -28 | -39 | -40 | -63 | -51 | -50 | -46 | -80 |
| Total operating expenses | -2,134 | -2,318 | -1,949 | -2,377 | -2,320 | -2,317 | -2,179 | -2,167 |
| Profit before credit losses | 1,643 | 2,103 | 1,913 | 1,854 | 1,791 | 2,040 | 2,302 | 2,413 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | -3 | -1 | 1 | 23 | 3 | -3 | -1 | |
| Net credit losses | -104 | 26 | -26 | -99 | -48 | -36 | -53 | -87 |
| Operating profit | 1,536 | 2,128 | 1,888 | 1,778 | 1,746 | 2,001 | 2,249 | 2,325 |
Merchant Banking
Trading and Capital Markets
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 368 | 315 | 382 | 459 | 293 | 369 | 276 | 412 |
| Net fee and commission income | 312 | 437 | 356 | 487 | 396 | 285 | 449 | 439 |
| Net financial income | 854 | 1,274 | 696 | 645 | 1,085 | 1,041 | 971 | 945 |
| Net other income | 34 | -15 | -4 | -3 | 2 | 3 | 12 | 4 |
| Total operating income | 1,568 | 2,011 | 1,430 | 1,588 | 1,776 | 1,698 | 1,708 | 1,800 |
| Staff costs | -418 | -480 | -365 | -482 | -465 | -440 | -424 | -371 |
| Other expenses | -505 | -531 | -465 | -552 | -562 | -605 | -539 | -555 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -8 | -9 | -9 | -9 | -27 | -30 | -26 | -52 |
| Total operating expenses | -931 | -1,020 | -839 | -1,043 | -1,054 | -1,075 | -989 | -978 |
| Profit before credit losses | 637 | 991 | 591 | 545 | 722 | 623 | 719 | 822 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | 1 | 1 | -1 | |||||
| Net credit losses | 1 | 1 | -1 | -3 | ||||
| Operating profit | 638 | 991 | 591 | 546 | 723 | 623 | 719 | 818 |
Merchant Banking
| Corporate Banking | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 1,072 | 1,091 | 1,148 | 1,140 | 1,093 | 1,121 | 1,204 | 1,224 |
| Net fee and commission income | 381 | 560 | 571 | 681 | 489 | 663 | 568 | 602 |
| Net financial income | -36 | -57 | -27 | -66 | -35 | -53 | 17 | -61 |
| Net other income | 39 | 41 | 38 | 143 | 24 | 121 | 189 | 217 |
| Total operating income | 1,456 | 1,635 | 1,730 | 1,898 | 1,571 | 1,852 | 1,978 | 1,982 |
| Staff costs | -402 | -456 | -349 | -467 | -459 | -423 | -423 | -370 |
| Other expenses | -303 | -307 | -261 | -251 | -312 | -311 | -290 | -338 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -17 | -18 | -16 | -51 | -22 | -16 | -18 | -24 |
| Total operating expenses | -722 | -781 | -626 | -769 | -793 | -750 | -731 | -732 |
| Profit before credit losses | 734 | 854 | 1,104 | 1,129 | 778 | 1,102 | 1,247 | 1,250 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | -1 | 29 | 2 | -1 | -1 | |||
| Net credit losses | -98 | 29 | -37 | -97 | -51 | -31 | -52 | -95 |
| Operating profit | 636 | 883 | 1,066 | 1,061 | 729 | 1,070 | 1,195 | 1,154 |
Merchant Banking
Global Transaction Services
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 341 | 321 | 321 | 367 | 345 | 396 | 404 | 397 |
| Net fee and commission income | 386 | 416 | 355 | 334 | 374 | 394 | 353 | 366 |
| Net financial income | 15 | 25 | 16 | 27 | 35 | 7 | 28 | 20 |
| Net other income | 11 | 12 | 10 | 16 | 9 | 10 | 11 | 15 |
| Total operating income | 753 | 774 | 702 | 744 | 763 | 807 | 796 | 798 |
| Staff costs | -137 | -139 | -128 | -135 | -137 | -137 | -137 | -129 |
| Other expenses | -342 | -365 | -340 | -427 | -332 | -353 | -321 | -323 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -2 | -12 | -16 | -2 | -3 | -3 | -2 | -4 |
| Total operating expenses | -481 | -516 | -484 | -564 | -472 | -493 | -460 | -456 |
| Profit before credit losses | 272 | 258 | 218 | 180 | 291 | 314 | 336 | 342 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | -3 | -1 | 2 | -6 | -1 | -2 | -1 | 2 |
| Net credit losses | -7 | -3 | 11 | -3 | 4 | -4 | 9 | |
| Operating profit | 262 | 254 | 231 | 171 | 294 | 308 | 335 | 353 |
Retail Banking
Total
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 1,201 | 1,212 | 1,263 | 1,332 | 1,349 | 1,436 | 1,497 | 1,564 |
| Net fee and commission income | 789 | 829 | 774 | 848 | 788 | 822 | 740 | 825 |
| Net financial income | 65 | 76 | 58 | 74 | 64 | 83 | 74 | 81 |
| Net other income | 9 | 11 | 14 | 14 | 14 | 40 | 23 | 19 |
| Total operating income | 2,064 | 2,128 | 2,109 | 2,268 | 2,215 | 2,381 | 2,334 | 2,489 |
| Staff costs | -658 | -659 | -686 | -647 | -673 | -689 | -658 | -674 |
| Other expenses | -778 | -875 | -800 | -928 | -882 | -940 | -868 | -878 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -21 | -21 | -21 | -21 | -19 | -19 | -20 | -21 |
| Total operating expenses | -1,457 | -1,555 | -1,507 | -1,596 | -1,574 | -1,648 | -1,546 | -1,573 |
| Profit before credit losses | 607 | 573 | 602 | 672 | 641 | 733 | 788 | 916 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | -1 | 1 | -1 | |||||
| Net credit losses | -196 | -147 | -56 | -144 | -98 | -84 | -111 | -183 |
| Operating profit | 411 | 426 | 545 | 528 | 544 | 648 | 677 | 733 |
Retail Banking
Retail Sweden
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 949 | 962 | 1,019 | 1,095 | 1,123 | 1,214 | 1,262 | 1,329 |
| Net fee and commission income | 384 | 378 | 363 | 396 | 393 | 386 | 344 | 351 |
| Net financial income | 65 | 76 | 58 | 74 | 64 | 83 | 74 | 81 |
| Net other income | 4 | 5 | 4 | 5 | 15 | 26 | 6 | 4 |
| Total operating income | 1,402 | 1,421 | 1,444 | 1,570 | 1,595 | 1,709 | 1,686 | 1,765 |
| Staff costs | -461 | -468 | -491 | -472 | -498 | -509 | -490 | -502 |
| Other expenses | -624 | -681 | -640 | -756 | -706 | -759 | -701 | -701 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -11 | -12 | -12 | -14 | -13 | -13 | -14 | -14 |
| Total operating expenses | -1,096 | -1,161 | -1,143 | -1,242 | -1,217 | -1,281 | -1,205 | -1,217 |
| Profit before credit losses | 306 | 260 | 301 | 328 | 378 | 428 | 481 | 548 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | 1 | -1 | ||||||
| Net credit losses | -105 | -63 | -5 | -70 | -43 | -40 | -63 | -110 |
| Operating profit | 201 | 197 | 296 | 258 | 336 | 387 | 418 | 438 |
Retail Banking
| Cards | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 253 | 249 | 244 | 236 | 226 | 222 | 235 | 234 |
| Net fee and commission income | 397 | 438 | 403 | 444 | 392 | 416 | 403 | 474 |
| Net other income | 15 | 16 | 18 | 22 | 3 | 30 | 12 | 24 |
| Total operating income | 665 | 703 | 665 | 702 | 621 | 668 | 650 | 732 |
| Staff costs | -196 | -192 | -195 | -175 | -175 | -179 | -168 | -173 |
| Other expenses | -158 | -189 | -160 | -178 | -176 | -178 | -169 | -185 |
| Net Deferred Acquisition Costs | ||||||||
| Impairment of goodwill | ||||||||
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -10 | -9 | -8 | -8 | -7 | -6 | -6 | -6 |
| Restructuring costs | ||||||||
| Total operating expenses | -364 | -390 | -363 | -361 | -358 | -363 | -343 | -364 |
| Profit before credit losses | 301 | 313 | 302 | 341 | 263 | 305 | 307 | 368 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | -1 | |||||||
| Net credit losses | -91 | -84 | -51 | -73 | -55 | -44 | -48 | -73 |
| Operating profit | 210 | 229 | 250 | 268 | 208 | 261 | 259 | 295 |
Wealth Management
Total
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 111 | 120 | 118 | 136 | 143 | 160 | 166 | 167 |
| Net fee and commission income | 868 | 939 | 830 | 1,115 | 994 | 865 | 849 | 1,009 |
| Net financial income | 18 | 24 | 17 | 30 | 15 | 22 | 33 | 17 |
| Net other income | 47 | 7 | 4 | 2 | 26 | -21 | ||
| Total operating income | 997 | 1,130 | 972 | 1,285 | 1,154 | 1,073 | 1,027 | 1,193 |
| Staff costs | -309 | -339 | -306 | -344 | -368 | -365 | -317 | -356 |
| Other expenses | -350 | -388 | -368 | -422 | -368 | -388 | -356 | -390 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -20 | -21 | -20 | -23 | -12 | -10 | -10 | -17 |
| Total operating expenses | -679 | -748 | -694 | -789 | -748 | -763 | -683 | -763 |
| Profit before credit losses | 318 | 382 | 278 | 496 | 406 | 310 | 344 | 430 |
| Gains less losses from disposals of tangible and intangible assets |
||||||||
| Net credit losses | -1 | -2 | -1 | 7 | -1 | -1 | -5 | -2 |
| Operating profit | 317 | 380 | 277 | 503 | 405 | 309 | 339 | 428 |
Life
| Total | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | Q1 2010 |
Q2 2010 |
Q3 2010 |
Q4 2010 |
Q1 2011 |
Q2 2011 |
Q3 2011 |
Q4 2011 |
| Net interest income | -2 | -2 | -2 | -5 | -8 | -10 | -8 | -7 |
| Net life insurance income | 1,186 | 1,115 | 1,143 | 1,106 | 1,138 | 1,125 | 988 | 1,253 |
| Total operating income | 1,184 | 1,113 | 1,141 | 1,101 | 1,130 | 1,115 | 980 | 1,246 |
| Staff costs | -282 | -287 | -276 | -278 | -292 | -305 | -289 | -307 |
| Other expenses | -147 | -151 | -150 | -141 | -135 | -111 | -137 | -153 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -173 | -172 | -169 | -176 | -192 | -192 | -198 | -203 |
| Total operating expenses | -602 | -610 | -595 | -595 | -619 | -608 | -624 | -663 |
| Profit before credit losses | 582 | 503 | 546 | 506 | 511 | 507 | 356 | 583 |
| Operating profit * | 582 | 503 | 546 | 506 | 511 | 507 | 356 | 583 |
| Change in surplus values | 195 | 180 | 376 | 294 | 27 | 545 | 217 | 399 |
| Business result | 777 | 683 | 922 | 800 | 538 | 1,052 | 573 | 982 |
* Consolidated in the Group accounts
Baltic
Total
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 506 | 471 | 454 | 492 | 456 | 486 | 524 | 514 |
| Net fee and commission income | 228 | 250 | 251 | 235 | 209 | 240 | 218 | 227 |
| Net financial income | 131 | 141 | 69 | 60 | 80 | 89 | 92 | 104 |
| Net other income | 4 | 9 | 28 | 11 | -5 | -12 | -5 | -11 |
| Total operating income | 869 | 871 | 802 | 798 | 740 | 803 | 829 | 834 |
| Staff costs | -206 | -182 | -177 | -163 | -146 | -187 | -177 | -189 |
| Other expenses Depreciation, amortisation and impairment of |
-306 | -289 | -292 | -290 | -250 | -263 | -278 | -322 |
| tangible and intangible assets | -21 | -20 | -20 | -235 | -32 | -33 | -33 | -35 |
| Total operating expenses | -533 | -491 | -489 | -688 | -428 | -483 | -488 | -546 |
| Profit before credit losses | 336 | 380 | 313 | 110 | 312 | 320 | 341 | 288 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | -1 | -4 | 2 | -2 | 2 | |||
| Net credit losses | -1,431 | -451 | 273 | 736 | 572 | 679 | 202 | 32 |
| Operating profit | -1,095 | -72 | 586 | 842 | 886 | 997 | 545 | 320 |
Baltic
Baltic Estonia
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 156 | 141 | 139 | 153 | 150 | 156 | 174 | 161 |
| Net fee and commission income | 77 | 80 | 76 | 74 | 66 | 83 | 68 | 66 |
| Net financial income | 24 | 25 | 9 | -6 | 12 | 14 | 17 | 21 |
| Net other income | 3 | 4 | 2 | 10 | 1 | 1 | 1 | |
| Total operating income | 260 | 250 | 226 | 231 | 229 | 254 | 260 | 248 |
| Staff costs | -83 | -59 | -59 | -42 | -52 | -60 | -57 | -45 |
| Other expenses | -107 | -88 | -85 | -70 | -78 | -81 | -81 | -79 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -4 | -4 | -4 | -5 | -3 | -4 | -4 | -3 |
| Total operating expenses | -194 | -151 | -148 | -117 | -133 | -145 | -142 | -127 |
| Profit before credit losses | 66 | 99 | 78 | 114 | 96 | 109 | 118 | 121 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | 1 | 2 | 1 | 1 | ||||
| Net credit losses | -151 | -108 | 10 | 162 | 17 | 122 | 63 | 22 |
| Operating profit | -85 | -9 | 88 | 277 | 115 | 232 | 181 | 144 |
Baltic
Baltic Latvia
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 155 | 154 | 144 | 148 | 133 | 133 | 145 | 147 |
| Net fee and commission income | 53 | 55 | 54 | 52 | 49 | 60 | 48 | 52 |
| Net financial income | 23 | 26 | 28 | 33 | 30 | 30 | 26 | 35 |
| Net other income | 3 | 1 | 1 | 1 | -2 | -3 | -3 | -15 |
| Total operating income | 234 | 236 | 227 | 234 | 210 | 220 | 216 | 219 |
| Staff costs | -49 | -50 | -49 | -63 | -35 | -55 | -53 | -65 |
| Other expenses | -81 | -69 | -72 | -99 | -54 | -66 | -71 | -74 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -8 | -7 | -8 | -11 | -6 | -6 | -6 | -8 |
| Total operating expenses | -138 | -126 | -129 | -173 | -95 | -127 | -130 | -147 |
| Profit before credit losses | 96 | 110 | 98 | 61 | 115 | 93 | 86 | 72 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | -1 | -5 | -4 | 1 | ||||
| Net credit losses | -574 | -170 | 109 | 275 | 182 | 157 | 52 | 2 |
| Operating profit | -478 | -61 | 207 | 331 | 297 | 246 | 138 | 75 |
Baltic
Baltic Lithuania
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | 195 | 175 | 171 | 191 | 173 | 197 | 206 | 205 |
| Net fee and commission income | 98 | 115 | 121 | 110 | 94 | 98 | 102 | 109 |
| Net financial income | 83 | 91 | 31 | 32 | 38 | 45 | 50 | 48 |
| Net other income | -1 | 4 | 25 | -1 | -3 | -11 | -3 | 3 |
| Total operating income | 375 | 385 | 348 | 332 | 302 | 329 | 355 | 365 |
| Staff costs | -74 | -73 | -69 | -57 | -59 | -72 | -67 | -79 |
| Other expenses | -119 | -133 | -135 | -121 | -118 | -117 | -126 | -168 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -9 | -8 | -8 | -219 | -22 | -23 | -23 | -25 |
| Total operating expenses | -202 | -214 | -212 | -397 | -199 | -212 | -216 | -272 |
| Profit before credit losses | 173 | 171 | 136 | -65 | 103 | 117 | 139 | 93 |
| Gains less losses from disposals of tangible | 1 | |||||||
| and intangible assets | 1 | -1 | ||||||
| Net credit losses | -705 | -173 | 154 | 299 | 372 | 401 | 86 | 8 |
| Operating profit | -532 | -2 | 290 | 234 | 475 | 519 | 226 | 100 |
Other and eliminations
| Total | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net interest income | -70 | 203 | 480 | 584 | 574 | 258 | 60 | 47 |
| Net fee and commission income | 222 | 233 | 240 | 194 | 245 | 285 | 311 | 170 |
| Net financial income | -101 | -510 | -105 | -265 | -13 | -364 | -312 | -517 |
| Net life insurance income | -307 | -337 | -325 | -326 | -356 | -361 | -329 | -261 |
| Net other income | 70 | -73 | -325 | 130 | -156 | -46 | -174 | -447 |
| Total operating income | -186 | -484 | -35 | 317 | 294 | -228 | -444 | -1,008 |
| Staff costs | -1,005 | -1,051 | -1,084 | -1,022 | -1,051 | -981 | -969 | -1,025 |
| Other expenses | 983 | 1,046 | 1,009 | 1,073 | 1,057 | 1,067 | 1,084 | 928 |
| Depreciation, amortisation and impairment of | ||||||||
| tangible and intangible assets | -138 | -136 | -130 | -126 | -123 | -121 | -128 | -119 |
| Restructuring costs | -755 | -9 | ||||||
| Total operating expenses | -160 | -141 | -960 | -84 | -117 | -35 | -13 | -216 |
| Profit before credit losses | -346 | -625 | -995 | 233 | 177 | -263 | -457 | -1,224 |
| Gains less losses from disposals of tangible | ||||||||
| and intangible assets | -1 | 1 | 1 | |||||
| Net credit losses | -4 | 3 | 7 | 1 | 2 | |||
| Operating profit | -350 | -623 | -988 | 235 | 179 | -262 | -457 | -1,224 |
By geography
Sweden
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 4,766 | 5,124 | 4,870 | 5,613 | 5,400 | 6,096 | 5,352 | 5,414 |
| Total operating expenses | -3,421 | -3,666 | -3,346 | -3,610 | -3,893 | -4,104 | -3,503 | -3,836 |
| Profit before credit losses | 1,345 | 1,458 | 1,524 | 2,003 | 1,507 | 1,992 | 1,849 | 1,578 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | 1 | -2 | 1 | |||||
| Net credit losses | -192 | -12 | 4 | -125 | -125 | -94 | -218 | |
| Operating profit | 1,153 | 1,446 | 1,528 | 1,878 | 1,383 | 1,990 | 1,755 | 1,361 |
| Norway | ||||||||
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 726 | 721 | 649 | 749 | 701 | 753 | 640 | 812 |
| Total operating expenses | -335 | -305 | -301 | -374 | -266 | -299 | -281 | -318 |
| Profit before credit losses | 391 | 416 | 348 | 375 | 435 | 454 | 359 | 494 |
| Gains less losses on disposals of tangible and intangible assets |
||||||||
| Net credit losses | -51 | -37 | -24 | -31 | -35 | -20 | -13 | -26 |
| Operating profit | 340 | 379 | 324 | 344 | 400 | 434 | 346 | 468 |
| Denmark | ||||||||
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 724 | 842 | 731 | 723 | 708 | 706 | 723 | 772 |
| Total operating expenses | -380 | -422 | -364 | -440 | -384 | -387 | -357 | -367 |
| Profit before credit losses | 344 | 420 | 367 | 283 | 324 | 319 | 366 | 405 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | 1 | |||||||
| Net credit losses | -26 | -22 | -31 | -37 | -15 | -13 | -26 | -12 |
| Operating profit | 318 | 398 | 336 | 246 | 309 | 306 | 340 | 394 |
| Finland | ||||||||
| SEK m | Q1 2010 |
Q 2 2010 |
Q 3 2010 |
Q4 2010 |
Q1 2011 |
Q2 2011 |
Q3 2011 |
Q4 2011 |
| Total operating income | 254 | 350 | 319 | 349 | 338 | 338 | 330 | 366 |
| Total operating expenses | -101 | -158 | -150 | -183 | -160 | -174 | -144 | -168 |
| Profit before credit losses | 153 | 192 | 169 | 166 | 178 | 164 | 186 | 198 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | -1 | |||||||
| Net credit losses | -3 | -10 | -2 | -2 | -2 | 2 | ||
| Operating profit | 150 | 182 | 168 | 164 | 178 | 162 | 184 | 200 |
| Germany* | ||||||||
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 669 | 787 | 742 | 760 | 742 | 874 | 786 | 860 |
| Total operating expenses | -475 | -486 | -1,236 | -500 | -471 | -455 | -513 | -426 |
| Profit before credit losses | 194 | 301 | -494 | 260 | 271 | 419 | 273 | 434 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | -2 | 29 | 3 | -2 | ||||
| Net credit losses | -41 | -35 | -24 | -43 | 21 | -41 | -18 | -12 |
| Operating profit | 153 | 266 | -520 | 246 | 295 | 378 | 255 | 420 |
*Excluding centralised Treasury operations
Restructuring costs amounted to EUR 80m in Q3 2010.
Estonia
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 315 | 299 | 283 | 290 | 272 | 312 | 301 | 329 |
| Total operating expenses | -197 | -157 | -153 | -125 | -145 | -151 | -147 | -147 |
| Profit before credit losses | 118 | 142 | 130 | 165 | 127 | 161 | 154 | 182 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | 1 | 2 | 1 | 1 | ||||
| Net credit losses | -151 | -108 | 10 | 162 | 17 | 122 | 63 | 22 |
| Operating profit | -33 | 34 | 140 | 328 | 146 | 284 | 218 | 204 |
Latvia
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 297 | 236 | 260 | 273 | 241 | 255 | 245 | 265 |
| Total operating expenses | -141 | -137 | -140 | -183 | -103 | -131 | -132 | -169 |
| Profit before credit losses | 156 | 99 | 120 | 90 | 138 | 124 | 113 | 96 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | -1 | -5 | -4 | 1 | ||||
| Net credit losses | -574 | -170 | 109 | 275 | 182 | 157 | 52 | 2 |
| Operating profit | -418 | -72 | 229 | 360 | 320 | 277 | 166 | 98 |
Lithuania
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 322 | 357 | 351 | 350 | 335 | 347 | 372 | 388 |
| Total operating expenses | -211 | -224 | -223 | -408 | -204 | -217 | -224 | -288 |
| Profit before credit losses | 111 | 133 | 128 | -58 | 131 | 130 | 148 | 100 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | 1 | 1 | -1 | |||||
| Net credit losses | -706 | -173 | 154 | 299 | 372 | 401 | 86 | 8 |
| Operating profit | -595 | -40 | 282 | 241 | 503 | 532 | 235 | 107 |
Other countries and eliminations
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 632 | 463 | 646 | 893 | 907 | -180 | 458 | 128 |
| Total operating expenses | -304 | -308 | -281 | -306 | -180 | 64 | -232 | -209 |
| Profit before credit losses | 328 | 155 | 365 | 587 | 727 | -116 | 226 | -81 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | -3 | -2 | 3 | -5 | -1 | -1 | ||
| Net credit losses | 8 | -4 | -1 | 3 | 10 | -46 | -15 | -6 |
| Operating profit | 333 | 149 | 367 | 585 | 737 | -163 | 210 | -87 |
SEB Group Total
| Q1 | Q 2 | Q 3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 8,705 | 9,179 | 8,851 | 10,000 | 9,644 | 9,501 | 9,207 | 9,334 |
| Total operating expenses | -5,565 | -5,863 | -6,194 | -6,129 | -5,806 | -5,854 | -5,533 | -5,928 |
| Profit before credit losses | 3,140 | 3,316 | 2,657 | 3,871 | 3,838 | 3,647 | 3,674 | 3,406 |
| Gains less losses on disposals of tangible and | ||||||||
| intangible assets | -3 | -3 | 20 | 6 | -5 | 2 | -1 | |
| Net credit losses | -1,736 | -571 | 197 | 501 | 427 | 558 | 33 | -240 |
| Operating profit | 1,401 | 2,742 | 2,854 | 4,392 | 4,271 | 4,200 | 3,709 | 3,165 |
Net interest income
SEB Group, SEK m
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Interest income | 11,269 | 11,287 | 11,714 | 11,621 | 12,913 | 13,978 | 14,406 | 14,866 |
| Interest expense | -7,741 | -7,555 | -7,549 | -7,116 | -8,667 | -9,763 | -10,284 | -10,548 |
| Net interest income | 3,528 | 3,732 | 4,165 | 4,505 | 4,246 | 4,215 | 4,122 | 4,318 |
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 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Issue of securities | 45 | 124 | 20 | 168 | 62 | 70 | 28 | 92 |
| Secondary market | 426 | 418 | 373 | 544 | 440 | 371 | 485 | 525 |
| Custody and mutual funds | 1,667 | 1,805 | 1,675 | 1,919 | 1,903 | 1,809 | 1,711 | 1,795 |
| Securities commissions | 2,138 | 2,347 | 2,068 | 2,631 | 2,405 | 2,250 | 2,224 | 2,412 |
| Payments | 388 | 402 | 379 | 362 | 386 | 400 | 390 | 399 |
| Card fees | 987 | 1,036 | 1,018 | 941 | 944 | 1,008 | 1,022 | 1,060 |
| Payment commissions | 1,375 | 1,438 | 1,397 | 1,303 | 1,330 | 1,408 | 1,412 | 1,459 |
| Advisory | 64 | 96 | 185 | 137 | 66 | 147 | 122 | 97 |
| Lending | 334 | 446 | 438 | 462 | 445 | 583 | 474 | 461 |
| Deposits | 26 | 26 | 25 | 26 | 26 | 26 | 27 | 27 |
| Guarantees | 111 | 107 | 103 | 106 | 95 | 99 | 98 | 106 |
| Derivatives | 134 | 157 | 110 | 117 | 151 | 134 | 222 | 208 |
| Other | 149 | 207 | 180 | 180 | 125 | 136 | 120 | 128 |
| Other commissions | 818 | 1,039 | 1,041 | 1,028 | 908 | 1,125 | 1,063 | 1,027 |
| Fee and commission income | 4,331 | 4,824 | 4,506 | 4,962 | 4,643 | 4,783 | 4,699 | 4,898 |
| Securities commissions | -289 | -298 | -288 | -341 | -352 | -359 | -326 | -348 |
| Payment commissions | -586 | -607 | -598 | -449 | -541 | -575 | -593 | -592 |
| Other commissions | -270 | -256 | -244 | -277 | -255 | -295 | -291 | -321 |
| Fee and commission expense | -1,145 | -1,161 | -1,130 | -1,067 | -1,148 | -1,229 | -1,210 | -1,261 |
| Securities commissions | 1,849 | 2,049 | 1,780 | 2,290 | 2,053 | 1,891 | 1,898 | 2,064 |
| Payment commissions | 789 | 831 | 799 | 854 | 789 | 833 | 819 | 867 |
| Other commissions | 548 | 783 | 797 | 751 | 653 | 830 | 772 | 706 |
| Net fee and commission income | 3,186 | 3,663 | 3,376 | 3,895 | 3,495 | 3,554 | 3,489 | 3,637 |
Net financial income
SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Equity instruments and related derivatives | 138 | 333 | 190 | -32 | 146 | 207 | -357 | -17 |
| Debt instruments and related derivatives | 327 | 205 | 16 | -70 | 218 | 110 | 793 | -64 |
| Currency related | 490 | 503 | 496 | 600 | 861 | 659 | 613 | 848 |
| Other | -10 | -68 | 22 | 8 | 6 | -151 | -146 | -178 |
| Net financial income | 945 | 973 | 724 | 506 | 1,231 | 825 | 903 | 589 |
Note that Net financial income does not reflect the full income from the Trading operations which distribution can be found on page 48.
Fee and commission income SEB Group
Gross quarterly development Q1 2006 – Q4 2011, SEK m
Impact from exchange rate fluctuations
Dec -08 Mar -09 Jun -09 Sep -09 Dec -09 Mar -10 Jun -10 Sep -10 Dec -10 Mar -11 Jun -11 Sep -11 Dec -11
| SEK m | Q4-11/Q4-10 | Q4-11/Q3-11 | YTD-11/YTD-10 |
|---|---|---|---|
| Total income | -34 | -7 | -916 |
| Total expenses | 23 | 6 | 511 |
| Net credit losses | 0 | 0 | -80 |
| Operating profit | -11 | -1 | -485 |
| SEK bn | Dec-11/Dec-10 | ||
| Loans to the public | -2 | ||
| Deposits from the public | -1 | ||
| RWA - Basel II | 2 | ||
| Total assets | -5 |
SEB Fact Book Annual Accounts 2011 21
Expenses
Staff costs - SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Salaries etc | -2,924 | -3,098 | -2,903 | -3,103 | -3,126 | -3,082 | -2,949 | -2,985 |
| Redundancies | -32 | -53 | -22 | -27 | -17 | -33 | -30 | -56 |
| Pensions | -297 | -271 | -293 | -232 | -297 | -263 | -266 | -194 |
| Other staff costs | -163 | -172 | -154 | -176 | -152 | -147 | -148 | -188 |
| Staff costs* | -3,416 | -3,594 | -3,372 | -3,538 | -3,592 | -3,525 | -3,393 | -3,423 |
*all items include social charges
Other expenses - SEB Group
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Costs for premises | -391 | -397 | -410 | -403 | -408 | -418 | -404 | -450 |
| Data costs | -699 | -862 | -739 | -1,038 | -861 | -1,004 | -877 | -1,165 |
| Travel and entertainment | -91 | -127 | -98 | -181 | -102 | -129 | -103 | -159 |
| Consultants | -202 | -308 | -272 | -345 | -227 | -288 | -207 | -224 |
| Marketing | -94 | -139 | -118 | -192 | -102 | -142 | -100 | -167 |
| Information services | -106 | -106 | -109 | -108 | -110 | -107 | -101 | -127 |
| Other operating costs | -165 | 79 | 79 | 329 | 25 | 184 | 87 | 262 |
| Other expenses | -1,748 | -1,860 | -1,667 | -1,938 | -1,785 | -1,904 | -1,705 | -2,030 |
Balance sheet structure & funding
Balance sheet structure
| Assets | Dec | Mar | June | Sep | Dec |
|---|---|---|---|---|---|
| SEK m | 2010 | 2011 | 2011 | 2011 | 2011 |
| Cash and balances with central banks | 46,488 | 15,914 | 106,558 | 100,405 | 148,042 |
| Other lending to central banks | 20,664 | 14,567 | 0 | 39,143 | 80,548 |
| Lending | 104,839 | 126,400 | 85,069 | 93,512 | 70,756 |
| Repos | 30,885 | 17,464 | 26,983 | 25,661 | 30,201 |
| Debt instruments | 47,800 | 40,629 | 36,164 | 32,092 | 27,806 |
| Other loans to credit institutions | 183,524 | 84,493 | 148,216 | 151,265 | 128,763 |
| Public | 76,109 | 76,006 | 63,515 | 61,995 | 62,188 |
| Private Individuals | 388,263 | 397,925 | 411,327 | 423,658 | 433,547 |
| Corporate | 503,526 | 527,155 | 572,732 | 590,524 | 585,723 |
| Repos | 63,449 | 76,214 | 52,915 | 79,239 | 72,244 |
| Debt instruments | 43,533 | 36,507 | 37,769 | 35,801 | 32,520 |
| Loans to the public | 1,074,879 | 1,113,807 | 1,138,257 | 1,191,217 | 1,186,223 |
| Debt instruments | 165,516 | 177,477 | 187,032 | 191,995 | 176,001 |
| Equity instruments | 56,275 | 78,676 | 89,788 | 83,724 | 55,931 |
| Derivatives | 131,058 | 124,369 | 112,585 | 179,686 | 168,776 |
| Insurance assets | 264,897 | 263,900 | 266,050 | 270,100 | 269,925 |
| Financial assets at fair value | 617,746 | 644,421 | 655,454 | 725,504 | 670,633 |
| Debt instruments | 64,135 | 65,534 | 63,485 | 58,817 | 54,573 |
| Other | 2,835 | 3,101 | 3,220 | 3,026 | 2,804 |
| Available-for-sale financial assets | 66,970 | 68,635 | 66,705 | 61,843 | 57,377 |
| Assets held for sale | 74,951 | 0 | 0 | 0 | 2,005 |
| Tangible and intangible assets | 27,035 | 27,212 | 27,952 | 29,053 | 29,016 |
| Other assets | 67,563 | 49,372 | 57,966 | 60,906 | 60,047 |
| TOTAL ASSETS | 2,179,821 | 2,118,421 | 2,201,108 | 2,359,336 | 2,362,653 |
| Liabilities | Dec | Mar | June | Sep | Dec |
| SEK m | 2010 | 2011 | 2011 | 2011 | 2011 |
| Central banks | 31,714 | 36,326 | 26,803 | 37,487 | 35,957 |
| Credit institutions | 165,105 | 137,811 | 144,526 | 164,647 | 139,000 |
| Repos | 15,805 | 27,365 | 37,710 | 38,475 | 26,317 |
| Deposits from credit institutions | 212,624 | 201,503 | 209,039 | 240,610 | 201,274 |
| Public | 54,866 | 62,139 | 73,804 | 77,895 | 73,409 |
| Private Individuals | 175,933 | 173,068 | 184,109 | 189,534 | 198,244 |
| Corporate | 470,557 | 456,319 | 492,296 | 534,520 | 565,522 |
| Repos | 10,185 | 15,569 | 13,869 | 12,465 | 24,508 |
| Deposits and borrowings from the public | 711,541 | 707,095 | 764,078 | 814,415 | 861,682 |
| Liabilities to policyholders | 263,970 | 263,075 | 264,834 | 268,030 | 269,683 |
| CP/CD | 180,521 | 206,449 | 189,346 | 203,922 | 217,778 |
| Long term debt | 349,962 | 343,400 | 355,905 | 343,374 | 372,095 |
| Debt securities | 530,483 | 549,849 | 545,250 | 547,296 | 589,873 |
| Debt instruments | 44,798 | 31,239 | 44,460 | 59,877 | 44,584 |
| Equity instruments | 33,669 | 41,129 | 60,913 | 60,469 | 35,233 |
| Derivatives | 122,223 | 122,979 | 107,714 | 159,909 | 152,430 |
| Financial liabilities at fair value | 200,690 | 195,347 | 213,087 | 280,255 | 232,246 |
| Liabilities held for sale | 48,339 | 0 | 0 | 0 | 1,962 |
| Other liabilities | 87,080 | 79,704 | 77,162 | 73,797 | 71,663 |
| Subordinated liabilities | 25,552 | 23,992 | 24,836 | 27,705 | 25,109 |
| Total liabilities | 2,080,278 | 2,020,566 | 2,098,287 | 2,252,107 | 2,253,492 |
| Total equity | 99,543 | 97,856 | 102,821 | 107,230 | 109,161 |
The definitions of the specified categories under Loans to credit institutions and Loans to the public above deviates slightly from the definitions of industries in the table on p 35 Loans portfolio by industry and geography that is also more detailed.
A strong balance sheet structure, Dec 2011 Deposits and wholesale
funding structure by product SEB Group, SEK 1,588bn*, Dec 2011
SEB AG which are in a run-off mode and repos
Loan to deposit ratio excl repos and debt instruments
Total loans and deposits
| 31 March | 30 Jun | 30 Sep | 31 Dec | 31 March | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | |
| Loans to the public | 1,204 | 1,227 | 1,089 | 1,075 | 1,114 | 1,138 | 1,191 | 1,186 |
| Repos | 103 | 133 | 90 | 63 | 77 | 53 | 79 | 72 |
| Debt instruments | 49 | 48 | 47 | 44 | 36 | 37 | 36 | 33 |
| Loans adjusted for repos and debt instruments | 1,052 | 1,046 | 952 | 968 | 1,001 | 1,048 | 1,076 | 1,081 |
| Deposits and borrowing from the public | 740 | 759 | 717 | 712 | 707 | 764 | 814 | 862 |
| Repos | 21 | 22 | 24 | 11 | 15 | 14 | 12 | 25 |
| Deposits adjusted for repos | 719 | 737 | 693 | 701 | 692 | 750 | 802 | 837 |
| Loan to deposit ratio excl repos and | ||||||||
| debt instruments | 146% | 142% | 137% | 138% | 145% | 140% | 134% | 129% |
Long-term funding Maturity profile, Dec 2011
By product, SEK bn
* Excluding public covered bonds.
Long-term funding Maturity profile, Dec 2011
By currency, SEK bn
* Excluding public covered bonds.
Funding raised with original maturity > 1 year, SEK bn
| Full year | Full year | Full year | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|---|---|
| Instrument | 2008 | 2009 | 2010 | 2011 | 2011 | 2011 | 2011 | 2011 |
| Yankee CD | 6 | 3 | 3 | 0 | 0 | 0 | 0 | 0 |
| Senior unsecured SEB AG | 2 | 5 | 0 | 0 | 0 | 0 | 0 | 1 |
| Senior unsecured SEB AB | 37 | 60 | 14 | 4 | 11 | 0 | 7 | 23 |
| Index Linked Bonds | 13 | 8 | 3 | 1 | 2 | 1 | 4 | 8 |
| Covered bonds SEB AG | 30 | 24 | 11 | 0 | 0 | 0 | 0 | 0 |
| Covered bonds SEB AB | 73 | 26 | 71 | 29 | 30 | 12 | 24 | 95 |
| Hybrid tier 1 | 5 | 3 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 166 | 130 | 102 | 35 | 43 | 13 | 35 | 126 |
Balance Sheet Maturity Profile SEB Group
Remaining Contractual Maturities 31 Dec 2011
| SEK millions | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Payable on demand | <1m | 1-3m | 3-12m | 1-2y | 2-5y | 5-10y | >10y | Not distributed | Total | |
| Cash and balances with central banks | 148,042 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 148,042 |
| Other Lending to Central Banks | 80,184 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 80,184 |
| Loans to credit institutions | 48,619 | 25,786 | 5,699 | 8,359 | 23,422 | 9,054 | 4,740 | 2,681 | 767 | 129,127 |
| of which Lending | 10,132 | 7,611 | 4,661 | 7,589 | 681 | 8,168 | 751 | 2,648 | 767 | 43,008 |
| of which Repos and Cash Collateral | 38,487 | 18,131 | 1,037 | 0 | 0 | 886 | 0 | 0 | 0 | 58,540 |
| of which Debt instruments | 0 | 45 | 0 | 770 | 22,741 | 0 | 3,989 | 33 | 0 | 27,578 |
| Loans to the public | 99,007 | 103,631 | 114,124 | 211,616 | 197,274 | 242,472 | 106,285 | 76,372 | 35,440 | 1,186,223 |
| of which Repos and Cash Collateral | 16,927 | 47,336 | 3,148 | 0 | 0 | 771 | 0 | 16,405 | 0 | 84,588 |
| of which Debt Instruments | 447 | 29 | 309 | 2,924 | 4,072 | 4,182 | 8,887 | 11,380 | 0 | 32,231 |
| of which Lending | 81,633 | 56,266 | 110,667 | 208,692 | 193,201 | 237,519 | 97,398 | 48,587 | 35,440 | 1,069,403 |
| Public Sector | 35,967 | 3,198 | 1,918 | 4,670 | 9,038 | 5,463 | 4,519 | 891 | 6,069 | 71,732 |
| Private individuals | 9,387 | 16,382 | 73,473 | 100,834 | 47,909 | 137,773 | 28,294 | 19,168 | 361 | 433,583 |
| Corporate | 53,653 | 84,051 | 38,733 | 106,112 | 140,327 | 99,236 | 73,472 | 56,313 | 29,010 | 680,907 |
| Financial assets at fair value | 120 | 2,001 | 3,321 | 29,803 | 76,072 | 36,396 | 21,686 | 6,603 | 494,632 | 670,633 |
| Debt instruments | 120 | 2,001 | 3,321 | 29,803 | 76,072 | 36,396 | 21,686 | 6,603 | 0 | 176,001 |
| Equity instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 55,931 | 55,931 |
| Derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 168,776 | 168,776 |
| Insurance assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 269,925 | 269,925 |
| Other | 28,439 | 9,090 | 8,886 | 8,860 | 3,454 | 19,071 | 21,215 | 11,035 | 38,396 | 148,445 |
| Debt instruments | 0 | 5,303 | 275 | 2,957 | 3,379 | 19,071 | 21,215 | 1,975 | 0 | 54,175 |
| Other Assets | 28,439 | 3,787 | 8,611 | 5,903 | 75 | 0 | 0 | 9,060 | 38,396 | 94,270 |
| Total Assets | 404,411 | 140,508 | 132,029 | 258,639 | 300,221 | 306,993 | 153,926 | 96,692 | 569,235 | 2,362,653 |
| Payable on demand | <1m | 1-3m | 3-12m | 1-2y | 2-5y | 5-10y | >10y | Not distributed | Total | |
| Deposits by credit institutions | 74,494 | 62,244 | 40,442 | 4,588 | 1,162 | 3,301 | 3,691 | 9,835 | 1,517 | 201,274 |
| of which Credit institutions and Central Banks | 44,554 | 53,629 | 38,685 | 4,588 | 1,162 | 3,301 | 3,691 | 3,124 | 0 | 152,734 |
| of which Repos and Cash Collateral | 29,940 | 8,615 | 1,757 | 0 | 0 | 0 | 0 | 6,711 | 1,517 | 48,540 |
| Deposits and borrowings from the public | 419,006 | 193,443 | 121,068 | 41,702 | 7,517 | 21,181 | 30,359 | 24,643 | 2,763 | 861,682 |
| of which Repos and Cash Collateral | 12,309 | 15,502 | 8,475 | 0 | 0 | 0 | 0 | 214 | 0 | 36,500 |
| of which Deposits and Borrowings | 406,697 | 177,940 | 112,593 | 41,702 | 7,517 | 21,181 | 30,359 | 24,429 | 2,763 | 825,182 |
| Public Sector | 18,181 | 22,057 | 21,224 | 8,636 | 151 | 2,061 | 1,980 | 184 | 0 | 74,475 |
| Private individuals | 123,162 | 16,052 | 32,584 | 15,206 | 1,746 | 8,503 | 292 | 699 | 0 | 198,244 |
| Corporate | 277,663 | 155,334 | 67,260 | 17,860 | 5,620 | 10,617 | 28,086 | 23,759 | 2,763 | 588,963 |
| Liabilities to policyholders (Insurance liabilities) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 269,683 | 269,683 |
| Debt securities | 461 | 90,039 | 120,343 | 74,846 | 55,361 | 195,216 | 36,446 | 9,675 | 7,486 | 589,873 |
| CP/CD | 461 | 89,371 | 109,765 | 18,181 | 0 | 0 | 0 | 0 | 0 | 217,778 |
| Long Term Debt | 0 | 668 | 10,578 | 56,665 | 55,361 | 195,216 | 36,446 | 9,675 | 7,486 | 372,095 |
| Financial liabilities at fair value | 42,451 | 3 | 0 | 866 | 827 | 0 | 0 | 0 | 188,099 | 232,246 |
| 0 | 0 | 437 | 44,584 | |||||||
| Debt instruments | 42,451 | 3 | 0 | 866 | 827 | 0 | ||||
| Equity instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35,233 | 35,233 |
| Derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 152,430 | 152,430 |
| Other Liabilities | 5,522 | 2,619 | 1,329 | 1 | 0 | 7 | 0 | 10,073 | 54,073 | 73,624 |
| Subordinated liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 25,109 | 25,109 |
| Equity | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 109,161 | 109,161 |
Notes:
Maturities above are based on remaining contractual maturities. No behavioral assumptions have been made.
Other Assets include Assets Held for Sale, Tangible and Intangible assets and Other assets
Other Liabilities include Liabilities Held for Sale and Other Liabilities
Payable on Demand includes items available O/N
Not Distributed includes items with no contractual maturity and undistributed items
SEB's Liquidity Reserve
| SEK m | 30 Jun | 30 Sep | 31 Dec | ||||
|---|---|---|---|---|---|---|---|
| Liquidity Reserve*, Group | 2011 | 2011 | 2011 | Currency distribution | |||
| TOTAL | TOTAL | TOTAL | SEK | EUR | USD | Other | |
| 1 Cash and holdings in central banks | 103,770 | 136,876 | 225,187 | 318 | 93,040 | 114,624 | 17,205 |
| 2 Deposits in other banks available overnight | 20,419 | 19,279 | 9,949 | 1,253 | 2,134 | 1,124 | 5,438 |
| 3 Securities issued or guaranteed by sovereigns, central banks or multilateral development banks |
41,409 | 40,545 | 32,646 | 6,337 | 24,463 | 1,771 | 75 |
| 4 Securities issued or guaranteed by municipalities or other public sector entities |
36,279 | 37,496 | 32,505 | 401 | 32,103 | 0 | 0 |
| 5 Covered bonds issued by other institutions | 42,544 | 47,076 | 55,544 | 29,224 | 25,641 | 680 | 0 |
| 6 Covered bonds issued by SEB | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7 Securities issued by non-financial corporates | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8 Securities issued by financial corporates (excl. covered bon | 11,820 | 12,898 | 2,668 | 0 | 2,668 | 0 | 0 |
| 9 Other | 26,690 | 13,773 | 18,087 | 205 | 11,373 | 6,365 | 144 |
| Total | 282,931 | 307,943 | 376,585 | 37,737 | 191,422 | 124,564 | 22,862 |
* The liquidity reserve is presented in accordance with the template defined by the Swedish Bankers' Association. Assets included in the liquidity reserve should comply with the following: Assets shall be held by the Treasury function in the bank, not be encumbered and be pledgable with central banks. Furthermore, bonds shall have a maximum risk weight of 20% under the standardised approach to credit risk of the Basel II framework and a lowest rating of Aa2/AA-. Assets are disclosed using market values.
SEB Extended Liquidity Reserve and SEB Liquid Resources, Group
| SEK m | 30 Jun | 30 Sep | 31 Dec | ||||
|---|---|---|---|---|---|---|---|
| Total Liquid Resources, Group | 2011 | 2011 | 2011 | Currency distribution | |||
| TOTAL | TOTAL | TOTAL | SEK | EUR | USD | Other | |
| Liquidity Reserve | 282,931 | 307,943 | 376,585 | 37,737 | 191,422 | 124,564 | 22,862 |
| Available OC | 84,314 | 102,894 | 123,269 | 123,269 | 0 | 0 | 0 |
| SEB Extended Liquidity Reserve* | 367,245 | 410,837 | 499,854 | 161,006 | 191,422 | 124,564 | 22,862 |
| Other liquid resources | 100,194 | 123,996 | 115,798 | 55,141 | 10,796 | 2,165 | 47,696 |
| SEB Total Liquid Resources** | 467,439 | 534,834 | 615,652 | 216,147 | 202,218 | 126,729 | 70,558 |
* SEB Extended Liquidity Reserve includes available overcollateralisation in cover pools after deducting rating agency haircut. Amounts have been placed in SEK although issuance can also be made in other currencies.
** Other liquid resources include bond holdings in the Trading organisation and bond holdings not eligible for inclusion in the Liquidity Reserve but pledgeable with Central banks.
SEB AB Covered bonds
| Characteristics of the Cover Pool | ||
|---|---|---|
| December 2011 | ||
| Loans originated by | Skandinaviska Enskilda Banken AB (publ) | |
| Pool type / Pool notional | Dynamic / SEK 360bn | |
| Type of loans | 100% residential Swedish mortgages | |
| Single family | 60% | |
| Tenant owned apartments | 25% | |
| Multi family | 15% | |
| Geographic loan distribution | A concentration to urban areas | |
| 68% in the three largest cities | ||
| Substitute assets | No substitute assets are included | |
| Number of loans / Number of borrowers | 561 K/ 357 K | |
| WA loan balance | SEK 610 K | |
| WA LTV* | 44% | |
| LTV distribution* | <=40% | 48% |
| >40<=50% | 14% | |
| >50<=60% | 12% | |
| >60<=70% | 11% | |
| >70<=75% | 16% | |
| Interest rate type | Floating rate | 49% |
| Fixed reset <2yrs | 39% | |
| Fixed rate reset 2yrs <5yrs | 11% | |
| Fixed rate reset => 5yrs | 1% | |
| Payment frequency | Monthly | 83% |
| Quarterly | 17% | |
| Prior ranks | No prior ranks | 93% |
| Prior ranks of value | ||
| <25% of value | 6% | |
| >25%<50% of value | 1% | |
| Loans past due 60 days | 13 pbs | |
| Net credit losses ( = aggregated net of write-backs, write-offs and gross provisions) | 16 p | |
| Characteristics of the Covered Bonds | ||
| Rating | Aaa by Moody's | |
| Notional amount outstanding | SEK 237bn | |
| Overcollateralization | 52% | |
| Currencies | 74% SEK | |
| 26% non-SEK |
* Calculated on a loan by loan basis
Capital adequacy and RWA
Capital adequacy, SEB Group
Basel II (without transitional rules)
SEB Group - Basel II without transitional rules
RWA development
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | |
| Start | 730 | 723 | 714 | 711 | 716 | 678 | 678 | 667 |
| Migration | 3 | 1 | 1 | -1 | 0 | -2 | 0 | 1 |
| FX effects (credit risk) | -16 | 0 | -24 | -5 | -6 | 8 | 8 | -8 |
| German Retail divestment | -37 | 0 | 0 | 0 | ||||
| Market risk and operational risk | 13 | -11 | 8 | 1 | 2 | -1 | -3 | 17 |
| Other | -7 | 1 | 12 | 10 | 3 | -5 | -16 | 2 |
| End | 723 | 714 | 711 | 716 | 678 | 678 | 667 | 679 |
Capital base of the SEB financial group of undertakings
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total equity according to balance sheet | 99,522 | 98,214 | 97,105 | 99,543 | 97,856 | 102,821 | 107,230 | 109,161 |
| Dividend (excl repurchased shares) | -2,743 | -1,097 | -1,646 | -3,291 | -823 | -1,646 | -2,468 | -3,836 |
| Investments outside the financial group of undertakings | -39 | -36 | -34 | -40 | -41 | -41 | -42 | -41 |
| Other deductions outside the financial group of undertakings | -2,747 | -2,037 | -2,261 | -2,688 | -2,966 | -2,533 | -3,375 | -3,728 |
| = Total equity in the capital adequacy | 93,993 | 95,044 | 93,164 | 93,524 | 94,026 | 98,601 | 101,345 | 101,556 |
| Adjustment for hedge contracts | -275 | -57 | 1,085 | 1,755 | 2,233 | 1,734 | 433 | 229 |
| Net provisioning amount for IRB-reported credit exposures | 0 | 0 | 0 | 0 | 0 | -279 | -120 | -108 |
| Unrealised value changes on available-for-sale financial assets | 870 | 1,511 | 1,348 | 1,724 | 1,714 | 1,263 | 852 | 717 |
| Exposures where RWA is not calculated | -1,324 | -1,457 | -1,175 | -1,184 | -1,034 | -1,067 | -1,010 | -914 |
| Goodwill | -4,374 | -4,374 | -4,184 | -4,174 | -4,110 | -4,180 | -4,215 | -4,147 |
| Other intangible assets | -2,570 | -2,683 | -2,633 | -2,564 | -2,608 | -2,790 | -2,896 | -2,943 |
| Deferred tax assets | -1,636 | -1,768 | -1,441 | -1,694 | -2,031 | -1,721 | -1,359 | -1,293 |
| = Core Tier 1 capital | 84,684 | 86,216 | 86,164 | 87,387 | 88,190 | 91,561 | 93,030 | 93,097 |
| Tier 1 capital contribution (non-innovative) | 4,869 | 4,762 | 4,577 | 4,492 | 4,468 | 4,572 | 4,618 | 4,455 |
| Tier 1 capital contribution (innovative) | 10,858 | 11,217 | 10,155 | 10,101 | 9,704 | 9,823 | 10,319 | 10,159 |
| = Tier 1 capital | 100,411 | 102,195 | 100,896 | 101,980 | 102,362 | 105,956 | 107,967 | 107,711 |
| Dated subordinated debt | 10,366 | 5,217 | 5,014 | 4,922 | 4,896 | 4,946 | 4,990 | 4,815 |
| Deduction for remaining maturity | -554 | -383 | -368 | -361 | -360 | -305 | -331 | -320 |
| Perpetual subordinated debt | 7,137 | 7,738 | 7,050 | 4,152 | 3,923 | 3,978 | 4,372 | 2,225 |
| Net provisioning amount for IRB-reported credit exposures | 1,349 | 1,449 | 808 | 91 | 3 | -279 | -120 | -108 |
| Unrealised gains on available-for-sale financial assets | 615 | 504 | 484 | 511 | 490 | 602 | 728 | 799 |
| Exposures where RWA is not calculated | -1,324 | -1,457 | -1,175 | -1,184 | -1,034 | -1,067 | -1,010 | -914 |
| Investments outside the financial group of undertakings | -39 | -36 | -34 | -40 | -41 | -41 | -42 | -41 |
| = Tier 2 capital | 17,550 | 13,032 | 11,779 | 8,091 | 7,877 | 7,834 | 8,587 | 6,456 |
| Investments in insurance companies | -10,500 | -10,500 | -10,500 | -10,500 | -10,500 | -10,501 | -10,500 | -10,500 |
| Pension assets in excess of related liabilities | -1,119 | -869 | -652 | -422 | -933 | -681 | -437 | -222 |
| = Capital base | 106,342 | 103,858 | 101,523 | 99,149 | 98,806 | 102,608 | 105,617 | 103,445 |
Risk-weighted assets for the SEB financial group of undertakings
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Credit risk, IRB reported risk-weighted assets | ||||||||
| Institutions | 41,796 | 41,764 | 42,642 | 37,405 | 36,161 | 33,098 | 35,824 | 29,552 |
| Corporates | 402,200 | 407,121 | 403,427 | 403,128 | 401,680 | 403,631 | 399,545 | 394,094 |
| Securitisation positions | 9,489 | 8,563 | 7,900 | 6,337 | 5,660 | 5,381 | 6,396 | 6,515 |
| Retail mortgages | 64,892 | 67,596 | 66,386 | 65,704 | 44,033 | 45,253 | 45,572 | 45,241 |
| Other retail exposures | 10,839 | 10,299 | 10,014 | 9,826 | 9,769 | 9,954 | 10,204 | 9,460 |
| Other exposure classes | 1,557 | 1,548 | 1,514 | 1,511 | 1,449 | 1,534 | 1,589 | 1,651 |
| Total for credit risk, IRB approach | 530,773 | 536,891 | 531,883 | 523,911 | 498,752 | 498,851 | 499,130 | 486,513 |
| Further risk-weighted assets | ||||||||
| Credit risk, Standardised approach | 90,373 | 86,156 | 80,377 | 91,682 | 77,699 | 78,540 | 70,007 | 77,485 |
| Operational risk, Advanced Measurement approach | 39,793 | 39,814 | 45,440 | 44,568 | 43,477 | 43,811 | 43,371 | 42,267 |
| Foreign exchange rate risk | 11,981 | 11,577 | 16,754 | 15,995 | 12,243 | 12,479 | 13,253 | 13,173 |
| Trading book risks | 50,351 | 39,748 | 36,927 | 39,970 | 46,013 | 44,720 | 41,403 | 59,403 |
| Total | 723,271 | 714,186 | 711,381 | 716,126 | 678,184 | 678,401 | 667,164 | 678,841 |
| Summary | ||||||||
| Credit risk | 621,146 | 623,047 | 612,260 | 615,593 | 576,451 | 577,391 | 569,137 | 563,998 |
| Operational risk | 39,793 | 39,814 | 45,440 | 44,568 | 43,477 | 43,811 | 43,371 | 42,267 |
| Market risk | 62,332 | 51,325 | 53,681 | 55,965 | 58,256 | 57,199 | 54,656 | 72,576 |
| Total | 723,271 | 714,186 | 711,381 | 716,126 | 678,184 | 678,401 | 667,164 | 678,841 |
| Adjustment for flooring rules | ||||||||
| Addition according to transitional flooring | 88,537 | 110,276 | 86,102 | 83,672 | 98,582 | 119,784 | 159,698 | 148,774 |
| Total reported | 811,808 | 824,462 | 797,483 | 799,798 | 776,766 | 798,185 | 826,862 | 827,615 |
Specified information on the Capital base and risk-weighted assets can be found in the Annual Accounts.
Capital adequacy
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Capital resources | ||||||||
| Core Tier 1 capital | 84,684 | 86,216 | 86,164 | 87,387 | 88,190 | 91,561 | 93,030 | 93,097 |
| Tier 1 capital | 100,411 | 102,195 | 100,896 | 101,980 | 102,362 | 105,956 | 107,967 | 107,711 |
| Capital base | 106,342 | 103,858 | 101,523 | 99,149 | 98,805 | 102,608 | 105,617 | 103,445 |
| Capital adequacy without transitional floor (Basel II) | ||||||||
| Risk-weighted assets | 723,271 | 714,186 | 711,381 | 716,126 | 678,184 | 678,401 | 667,164 | 678,841 |
| Expressed as capital requirement | 57,862 | 57,135 | 56,911 | 57,290 | 54,255 | 54,272 | 53,373 | 54,307 |
| Core Tier 1 capital ratio | 11.7% | 12.1% | 12.1% | 12.2% | 13.0% | 13.5% | 13.9% | 13.7% |
| Tier 1 capital ratio | 13.9% | 14.3% | 14.2% | 14.2% | 15.1% | 15.6% | 16.2% | 15.9% |
| Total capital ratio | 14.7% | 14.5% | 14.3% | 13.8% | 14.6% | 15.1% | 15.8% | 15.2% |
| Capital base in relation to capital requirement | 1.84 | 1.82 | 1.78 | 1.73 | 1.82 | 1.89 | 1.98 | 1.90 |
| Capital adequacy including transitional floor | ||||||||
| Transition floor applied | 80% | 80% | 80% | 80% | 80% | 80% | 80% | 80% |
| Risk-weighted assets | 811,808 | 824,462 | 797,483 | 799,798 | 776,766 | 798,185 | 826,862 | 827,615 |
| Expressed as capital requirement | 64,945 | 65,957 | 63,799 | 63,984 | 62,141 | 63,855 | 66,149 | 66,209 |
| Core Tier 1 capital ratio | 10.4% | 10.5% | 10.8% | 10.9% | 11.4% | 11.5% | 11.3% | 11.2% |
| Tier 1 capital ratio | 12.4% | 12.4% | 12.7% | 12.8% | 13.2% | 13.3% | 13.1% | 13.0% |
| Total capital ratio | 13.1% | 12.6% | 12.7% | 12.4% | 12.7% | 12.9% | 12.8% | 12.5% |
| Capital base in relation to capital requirement | 1.64 | 1.57 | 1.59 | 1.55 | 1.59 | 1.61 | 1.60 | 1.56 |
| Capital adequacy with risk weighting according to Basel I | ||||||||
| Risk-weighted assets | 993,680 | 1,007,939 | 984,225 | 998,326 | 970,912 | 1,006,459 | 1,037,313 | 1,037,898 |
| Expressed as capital requirement | 79,494 | 80,635 | 78,738 | 79,866 | 77,673 | 80,517 | 82,985 | 83,032 |
| Core Tier 1 capital ratio | 8.5% | 8.6% | 8.8% | 8.8% | 9.1% | 9.1% | 9.0% | 9.0% |
| Tier 1 capital ratio | 10.1% | 10.1% | 10.3% | 10.2% | 10.5% | 10.5% | 10.4% | 10.4% |
| Total capital ratio | 10.7% | 10.3% | 10.3% | 9.9% | 10.2% | 10.2% | 10.2% | 10.0% |
| Capital base in relation to capital requirement | 1.34 | 1.29 | 1.29 | 1.24 | 1.27 | 1.27 | 1.27 | 1.25 |
IRB reported credit exposures (less repos and securities lending)
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| Average risk weight | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Institutions | 17.0% | 18.1% | 17.8% | 19.5% | 20.2% | 19.8% | 21.5% | 19.2% |
| Corporates | 58.5% | 57.7% | 59.1% | 57.0% | 56.6% | 53.9% | 52.2% | 51.6% |
| Securitisation positions | 22.6% | 22.5% | 22.4% | 20.6% | 20.0% | 22.7% | 28.7% | 34.9% |
| Retail mortgages | 16.8% | 17.1% | 17.2% | 16.9% | 13.0% | 12.8% | 12.6% | 12.1% |
| Other retail exposures | 39.1% | 38.6% | 38.7% | 38.2% | 37.6% | 37.4% | 37.7% | 37.5% |
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 | |||||||||
| 28-Sep-05 | A2/A-/A | 12NC7 | mth € + 25 bps | 28-Sep-17 | 28-Sep-12 | 3-mth €+ 175bps | EUR | 500 | |
| Upper Tier II Issues | |||||||||
| 25-Dec-97 | A2/BB+/A | PerpNC30 | 5.0000% | Perpetual | 28-Jan-28 | 6-mth ¥L+ 150bps | JPY | 15,000 | |
| 26-Jun-95 | A2/BB+/A | PerpNC20 | 4.4000% | Perpetual | 24-Nov-15 | 6-mth ¥L+ 200bps | JPY | 10,000 | |
| Tier I Issues | |||||||||
| 19-Mar-04 | A3/BB+/A | PerpNC10 | 4.9580% | Perpetual | 25-Mar-14 | 3-mth \$L+ 182bps | USD | 407 | |
| 23-Mar-05 | A3/BB+/A | PerpNC10 | 5.4710% | Perpetual | 23-Mar-15 | 3-mth \$L+ 154bps | USD | 423 | |
| 1-Oct-09 | A3/BB+/A | PerpNC5 | 9.2500% | Perpetual | 31-Mar-15 | EUR | 500 | ||
| 17-Dec-07 | A3/BB+/A | PerpNC10 | 7.0922% | Perpetual | 21-Dec-17 | 3-mth € + 340 bps | EUR | 500 |
Volumes
Balance sheet
| 31 March | 30 Jun | 30 Sep | 31 Dec | 31 March | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Cash and cash balances with central banks | 19,634 | 17,372 | 34,384 | 46,488 | 15,914 | 106,558 | 100,405 | 148,042 |
| Other loans to central banks | 41,884 | 23,739 | 2,833 | 20,664 | 14,567 | 39,143 | 80,548 | |
| Loans to credit institutions1) | 230,358 | 223,152 | 222,403 | 183,524 | 184,493 | 148,216 | 151,265 | 128,763 |
| Loans to the public | 1,203,833 | 1,226,476 | 1,088,736 | 1,074,879 | 1,113,807 | 1,138,257 | 1,191,217 | 1,186,223 |
| Financial assets at fair value * | 623,302 | 670,990 | 666,731 | 617,746 | 644,421 | 655,454 | 725,504 | 670,633 |
| Available-for-sale financial assets * | 70,954 | 65,988 | 66,937 | 66,970 | 68,635 | 66,705 | 61,843 | 57,377 |
| Held-to-maturity investments * | 1,303 | 1,500 | 1,461 | 1,451 | 1,181 | 293 | 297 | 282 |
| Assets held for sale | 523 | 565 | 79,280 | 74,951 | 2,005 | |||
| Investments in associates | 1,018 | 1,018 | 1,020 | 1,022 | 1,079 | 1,208 | 1,292 | 1,289 |
| Tangible and intangible assets | 27,206 | 27,565 | 26,998 | 27,035 | 27,212 | 27,952 | 29,053 | 29,016 |
| Other assets | 65,275 | 60,242 | 62,996 | 65,091 | 47,112 | 56,465 | 59,317 | 58,697 |
| Total assets | 2,285,290 | 2,318,607 | 2,253,779 | 2,179,821 | 2,118,421 | 2,201,108 | 2,359,336 | 2,362,875 |
| Deposits from credit institutions | 393,379 | 358,448 | 238,293 | 212,624 | 201,503 | 209,039 | 240,610 | 201,495 |
| Deposits and borrowing from the public | 739,907 | 759,347 | 717,005 | 711,541 | 707,095 | 764,078 | 814,414 | 861,682 |
| Liabilities to policyholders | 255,289 | 253,024 | 256,953 | 263,970 | 263,075 | 264,834 | 268,030 | 269,683 |
| Debt securities | 469,312 | 486,330 | 536,882 | 530,483 | 549,849 | 545,250 | 547,296 | 589,873 |
| Financial liabilities at fair value | 209,524 | 258,415 | 238,741 | 200,690 | 195,347 | 213,087 | 280,255 | 232,247 |
| Liabilities held for sale | 141 | 191 | 50,680 | 48,339 | 1,962 | |||
| Other liabilities | 80,606 | 70,676 | 86,732 | 85,331 | 78,092 | 75,437 | 72,072 | 70,009 |
| Provisions | 1,724 | 1,753 | 1,478 | 1,748 | 1,612 | 1,726 | 1,724 | 1,654 |
| Subordinated liabilities | 35,886 | 32,209 | 29,910 | 25,552 | 23,992 | 24,836 | 27,705 | 25,109 |
| Total equity | 99,522 | 98,214 | 97,105 | 99,543 | 97,856 | 102,821 | 107,230 | 109,161 |
| Total liabilities and equity | 2,285,290 | 2,318,607 | 2,253,779 | 2,179,821 | 2,118,421 | 2,201,108 | 2,359,336 | 2,362,875 |
| * Of which bonds and other interest bearing | ||||||||
| securities including derivatives. | 463,267 | 469,235 | 485,206 | 416,864 | 423,328 | 420,258 | 491,682 | 456,915 |
| 1) Loans to credit institutions and liquidity | ||||||||
placements with other direct participants in
interbank fund transfer systems.
Intangible assets
| 31 March | 30 Jun | 30 Sep | 31 Dec | 31 March | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Goodwill | 10,723 | 10,717 | 10,515 | 10,491 | 10,434 | 10,511 | 10,549 | 10,487 |
| Other intangibles | 2,841 | 2,945 | 2,879 | 2,801 | 2,836 | 3,014 | 3,225 | 3,254 |
| Deferred acquisition costs | 3,556 | 3,583 | 3,580 | 3,631 | 3,660 | 3,688 | 4,138 | 4,131 |
| Intangible assets | 17,121 | 17,245 | 16,974 | 16,923 | 16,930 | 17,213 | 17,912 | 17,872 |
Assets under management
SEK bn
| 2008 | 2009 | 2010 | 2011 | |
|---|---|---|---|---|
| Assets under management, start of period | 1,370 | 1,201 | 1,356 | 1,399 |
| Inflow | 295 | 256 | 287 | 273 |
| Outflow | -261 | -209 | -232 | -230 |
| Net inflow of which: | 34 | 47 | 55 | 43 |
| Sweden | 25 | 30 | 32 | |
| Other Nordic | 6 | 2 | 8 | |
| Germany | 5 | 12 | -1 | |
| Baltic countries and Poland | 3 | 1 | 1 | |
| Other and Eliminations | 8 | 11 | 3 | |
| Acquisition/disposal net | 17 | -2 | -1 | 17 |
| Change in value | -220 | 109 | -11 | -198 |
| Assets under management, end of period* | 1,201 | 1,356 | 1,399 | 1,261 |
| *Of which, not eliminated: | ||||
| Retail Banking | 74 | 86 | 91 | 69 |
| Wealth Management | 1,142 | 1,275 | 1,321 | 1,175 |
| Life | 354 | 402 | 424 | 420 |
Loans to the public excl repos & debt instruments
SEK bn
| 31 March 2010 |
30 Jun 2010 |
30 Sep 2010 |
31 Dec 2010 |
31 March 2011 |
30 Jun 2011 |
30 Sep 2011 |
31 Dec 2011 |
|
|---|---|---|---|---|---|---|---|---|
| Merchant Banking | 431 | 430 | 412 | 418 | 455 | 462 | 465 | 468 |
| Retail Banking | 451 | 458 | 386 | 397 | 413 | 434 | 451 | 468 |
| RB Sweden | 352 | 360 | 369 | 380 | 397 | 417 | 434 | 451 |
| RB Germany | 82 | 81 | - | - | - | - | - | - |
| RB Cards | 17 | 17 | 17 | 17 | 16 | 17 | 17 | 17 |
| Wealth Management | 29 | 29 | 29 | 32 | 32 | 33 | 34 | 33 |
| Life | - | - | - | - | - | - | - | - |
| Baltic | 119 | 112 | 106 | 101 | 101 | 103 | 105 | 101 |
| Baltic Estonia | 37 | 35 | 33 | 32 | 32 | 33 | 33 | 31 |
| Baltic Latvia | 29 | 27 | 26 | 24 | 24 | 25 | 25 | 25 |
| Baltic Lithuania | 53 | 50 | 47 | 45 | 45 | 45 | 47 | 45 |
| Other/elim | 22 | 17 | 19 | 20 | 0 | 16 | 21 | 11 |
| SEB Group excl repos & debt instruments | 1,052 | 1,046 | 952 | 968 | 1,001 | 1,048 | 1,076 | 1,081 |
| Repos | 103 | 133 | 90 | 63 | 77 | 53 | 79 | 72 |
| Debt instruments | 49 | 48 | 47 | 44 | 36 | 37 | 36 | 33 |
| SEB Group | 1,204 | 1,227 | 1,089 | 1,075 | 1,114 | 1,138 | 1,191 | 1,186 |
Deposits from the public excl repos
SEK bn
| 31 March 2010 |
30 Jun 2010 |
30 Sep 2010 |
31 Dec 2010 |
31 March 2011 |
30 Jun 2011 |
30 Sep 2011 |
31 Dec 2011 |
|
|---|---|---|---|---|---|---|---|---|
| Merchant Banking | 342 | 344 | 358 | 357 | 353 | 395 | 433 | 450 |
| Retail Banking | 198 | 205 | 166 | 175 | 175 | 182 | 188 | 196 |
| RB Sweden | 154 | 161 | 166 | 175 | 175 | 182 | 188 | 196 |
| RB Germany | 44 | 44 | - | - | - | - | - | - |
| RB Cards | - | - | - | - | - | - | - | - |
| Wealth Management | 50 | 55 | 50 | 47 | 45 | 50 | 52 | 51 |
| Life | - | - | - | - | - | - | - | 1 |
| Baltic | 60 | 60 | 56 | 57 | 56 | 58 | 60 | 66 |
| Baltic Estonia | 20 | 20 | 19 | 20 | 20 | 21 | 23 | 22 |
| Baltic Latvia | 14 | 14 | 13 | 12 | 12 | 12 | 12 | 13 |
| Baltic Lithuania | 26 | 26 | 24 | 25 | 24 | 25 | 25 | 31 |
| Other/elim | 69 | 73 | 63 | 65 | 63 | 65 | 69 | 73 |
| SEB Group excl repos | 719 | 737 | 693 | 701 | 692 | 750 | 802 | 837 |
| Repos | 21 | 22 | 24 | 11 | 15 | 14 | 12 | 25 |
| SEB Group | 740 | 759 | 717 | 712 | 707 | 764 | 814 | 862 |
Credit portfolio and loan portfolio by industry and geography
Credit portfolio by industry and geography*
| SEB Group, 31 December 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Banks | 75,407 | 14,537 | 11,243 | 1,262 | 119 | 529 | 574 | 37,854 | 13,123 | 154,648 |
| Finance and insurance | 57,651 | 799 | 4,613 | 478 | 174 | 520 | 446 | 17,302 | 2,909 | 84,892 |
| Wholesale and retail | 36,339 | 1,549 | 840 | 520 | 2,563 | 3,384 | 7,476 | 11,353 | 5,152 | 69,176 |
| Transportation | 27,941 | 304 | 1,475 | 118 | 1,114 | 1,897 | 2,216 | 6,703 | 298 | 42,066 |
| Shipping | 33,573 | 149 | 447 | 193 | 591 | 149 | 260 | 14 | 5,975 | 41,351 |
| Business and household services | 95,486 | 954 | 6,698 | 543 | 2,155 | 2,094 | 2,167 | 19,671 | 1,598 | 131,366 |
| Construction | 11,663 | 174 | 482 | 252 | 938 | 1,254 | 1,047 | 2,844 | 786 | 19,440 |
| Manufacturing | 135,083 | 2,203 | 4,212 | 4,469 | 3,693 | 1,868 | 6,762 | 30,965 | 9,261 | 198,516 |
| Agriculture, forestry and fishing | 4,720 | 358 | 10 | 31 | 1,098 | 1,932 | 568 | 35 | 312 | 9,064 |
| Mining and quarrying | 20,255 | 105 | 10,346 | 267 | 25 | 128 | 95 | 64 | 31,285 | |
| Electricity, gas and water supply | 29,492 | 242 | 585 | 3,455 | 2,468 | 1,627 | 1,884 | 11,810 | 735 | 52,298 |
| Other | 18,813 | 746 | 2,433 | 182 | 262 | 297 | 228 | 1,055 | 4,466 | 28,482 |
| Corporates | 471,016 | 7,583 | 32,141 | 10,508 | 15,081 | 15,150 | 23,149 | 101,752 | 31,556 | 707,936 |
| Commercial | 85,057 | 304 | 1,718 | 546 | 5,449 | 2,905 | 10,508 | 43,982 | 1 | 150,470 |
| Multi-family | 103,153 | 81 | 1,845 | 14 | 24,741 | 129,834 | ||||
| Property Management | 188,210 | 304 | 1,799 | 546 | 5,449 | 4,750 | 10,522 | 68,723 | 1 | 280,304 |
| Public Administration | 19,107 | 17 | 219 | 1,210 | 1,806 | 158 | 2,622 | 57,589 | 1,576 | 84,304 |
| Household mortgage | 346,117 | 3,037 | 14,122 | 8,289 | 18,431 | 2,782 | 392,778 | |||
| Other | 41,639 | 4,488 | 21,974 | 1,192 | 2,676 | 2,932 | 1,553 | 7 | 5,767 | 82,228 |
| Households | 387,756 | 4,488 | 25,011 | 1,192 | 16,798 | 11,221 | 19,984 | 7 | 8,549 | 475,006 |
| Credit portfolio | 1,141,496 | 26,929 | 70,413 | 14,718 | 39,253 | 31,808 | 56,851 | 265,925 | 54,805 | 1,702,198 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Banks | 94,803 | 14,979 | 9,244 | 1,610 | 78 | 192 | 315 | 51,581 | 12,030 | 184,832 |
| 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 | 366,497 | 43,795 | 1,682,035 |
* 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, 31 December 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Banks | 28,206 | 3,981 | 3,044 | 193 | 112 | 493 | 344 | 25,581 | 10,160 | 72,114 |
| Finance and insurance | 26,160 | 105 | 1,593 | 2 | 38 | 349 | 8 | 9,674 | 2,609 | 40,538 |
| Wholesale and retail | 19,616 | 1,046 | 419 | 407 | 1,769 | 2,247 | 5,524 | 3,970 | 3,625 | 38,623 |
| Transportation | 21,676 | 152 | 1,118 | 5 | 677 | 1,524 | 1,989 | 2,196 | 254 | 29,591 |
| Shipping | 23,307 | 50 | 45 | 193 | 289 | 147 | 259 | 14 | 5,123 | 29,427 |
| Business and household services | 55,067 | 462 | 2,699 | 356 | 1,889 | 1,445 | 1,574 | 7,915 | 1,044 | 72,451 |
| Construction | 5,234 | 163 | 247 | 52 | 376 | 784 | 534 | 330 | 46 | 7,766 |
| Manufacturing | 54,145 | 981 | 624 | 4,186 | 2,313 | 1,582 | 4,548 | 8,275 | 5,027 | 81,681 |
| Agriculture, forestry and fishing | 3,716 | 104 | 7 | 31 | 983 | 1,691 | 507 | 303 | 7,342 | |
| Mining and quarrying | 12,483 | 13 | 267 | 23 | 114 | 95 | 5 | 13,000 | ||
| Electricity, gas and water supply | 11,335 | 35 | 95 | 3,434 | 1,154 | 1,027 | 1,523 | 3,663 | 382 | 22,648 |
| Other | 16,828 | 744 | 2,110 | 156 | 245 | 278 | 212 | 965 | 3,881 | 25,419 |
| Corporates | 249,567 | 3,842 | 8,970 | 9,089 | 9,756 | 11,188 | 16,773 | 37,002 | 22,299 | 368,486 |
| Commercial | 72,147 | 89 | 856 | 525 | 5,252 | 2,828 | 10,094 | 39,866 | 1 | 131,658 |
| Multi-family | 90,537 | 79 | 1,798 | 14 | 23,113 | 115,541 | ||||
| Property Management | 162,684 | 89 | 935 | 525 | 5,252 | 4,626 | 10,108 | 62,979 | 1 | 247,199 |
| Public Administration | 4,909 | 18 | 127 | 1,210 | 1,493 | 89 | 2,067 | 52,959 | 1,576 | 64,448 |
| Household mortgage | 321,932 | 3,037 | 14,088 | 8,260 | 18,247 | 2,782 | 368,346 | |||
| Other | 24,496 | 2,533 | 8,940 | 744 | 2,120 | 2,174 | 1,031 | 6 | 2,523 | 44,567 |
| Households | 346,428 | 2,533 | 11,977 | 744 | 16,208 | 10,434 | 19,278 | 6 | 5,305 | 412,913 |
| Loan portfolio | 791,794 | 10,463 | 25,053 | 11,761 | 32,821 | 26,830 | 48,570 | 178,527 | 39,341 | 1,165,160 |
| Repos, credit institutions | 30,201 | |||||||||
| Repos, general public | 72,244 | |||||||||
| Debt instruments | 60,327 | |||||||||
| Reserves | -10,801 | |||||||||
| Retail, SEB Ukraine gross | -2,145 | |||||||||
| Total lending | 1,314,986 |
* The geographical distribution is based on where the loan is booked.
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Banks | 45,262 | 8,372 | 2,198 | 581 | 75 | 155 | 214 | 37,304 | 8,466 | 102,627 |
| 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 | 268,049 | 31,208 | 1,162,093 |
| 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 | 1,258,403 |
* The geographical distribution is based on where the loan is booked.
2011 affected by German Retail divestment
Geography based on SEB's operations
Credit portfolio by industry and geography*
| SEB Group, 31 December 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Banks | 72,417 | 14,778 | 11,742 | 3,021 | 119 | 529 | 574 | 37,854 | 13,614 | 154,648 |
| Corporates | 343,777 | 25,580 | 84,648 | 50,204 | 15,081 | 15,150 | 23,149 | 101,752 | 48,595 | 707,936 |
| Property Management | 169,947 | 2,697 | 9,531 | 7,551 | 5,449 | 4,750 | 10,522 | 68,723 | 1,134 | 280,304 |
| Public Administration | 18,274 | 18 | 1,048 | 1,210 | 1,806 | 158 | 2,622 | 57,589 | 1,579 | 84,304 |
| Households | 387,756 | 4,488 | 25,011 | 1,001 | 16,798 | 11,221 | 19,984 | 7 | 8,740 | 475,006 |
| Credit portfolio | 992,171 | 47,561 | 131,980 | 62,987 | 39,253 | 31,808 | 56,851 | 265,925 | 73,662 | 1,702,198 |
* Geography distribution is based on SEB's operations. Amounts before provisions for credit losses
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Banks | 92,222 | 15,222 | 10,239 | 2,592 | 78 | 192 | 315 | 51,581 | 12,391 | 184,832 |
| 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 | 366,497 | 62,882 | 1,682,035 |
* Geography distribution is based on SEB's operations. Amounts before provisions for credit losses
Credit portfolio*
On & off balance, SEK bn
| 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Mar | 30 Jun | 31 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| SEB Group | 2007 | 2008 | 2009 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Banks | 248 | 286 | 229 | 185 | 193 | 170 | 184 | 154 |
| Corporates | 571 | 782 | 656 | 666 | 650 | 667 | 704 | 708 |
| Property Management | 212 | 262 | 247 | 247 | 256 | 272 | 280 | 281 |
| Households | 434 | 486 | 509 | 509 | 434 | 454 | 462 | 475 |
| Public Administration | 88 | 119 | 94 | 75 | 91 | 78 | 82 | 84 |
| Total non-banks | 1,305 | 1,649 | 1,506 | 1,497 | 1,431 | 1,471 | 1,528 | 1,548 |
| Total | 1,553 | 1,934 | 1,735 | 1,682 | 1,624 | 1,641 | 1,712 | 1,702 |
| SEB Group | 31 Dec 2007 |
31 Dec 2008 |
31 Dec 2009 |
31 Dec 2010 |
31 Mar 2011 |
30 Jun 2011 |
31 Sep 2011 |
31 Dec 2011 |
| Lending | 1,112 | 1,362 | 1,227 | 1,162 | 1,141 | 1,145 | 1,182 | 1,165 |
| Contingent Liabilities | 365 | 442 | 406 | 430 | 396 | 407 | 417 | 429 |
| Derivative Instruments | 75 | 130 | 102 | 90 | 87 | 89 | 113 | 108 |
| Credit Portfolio | 1,553 | 1,934 | 1,735 | 1,682 | 1,624 | 1,641 | 1,712 | 1,702 |
* Before loan loss reserves, excluding repos & debt instruments. Including German Retail until Dec 2010
Baltic geographies
Credit portfolio
Asset quality
Rating of credit portfolio, Dec 2011
* Including repos
Credit loss level, % *
* Total operations ** Incl. other
Net credit losses quarterly, SEB Group – SEK m
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| Net credit losses, quarterly | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Net write-offs | -275 | -64 | -132 | -414 | -78 | -176 | -225 | -219 |
| Net specific provisions | -402 | -588 | 10 | 64 | 265 | 249 | 212 | -3 |
| Net collective provisions of which: |
-1,136 | 13 | 318 | 769 | 350 | 570 | 46 | -18 |
| Individually assessed loans | -738 | 214 | 407 | 782 | 385 | 438 | 86 | -7 |
| Portfolio assessed loans | -398 | -201 | -89 | -13 | -35 | 132 | -40 | -11 |
| Net credit losses continuing operations | -1,813 | -639 | 196 | 419 | 537 | 643 | 33 | -240 |
| Credit loss level, total operations | 0.53 | 0.17 | -0.02 | -0.07 | -0.17 | -0.20 | -0.01 | 0.08 |
Development of Non-performing loans
Non-performing loans & reserves
SEB Group, SEK m
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | |
| Individually assessed loans | ||||||||
| Impaired loans, gross | 19,621 | 19,238 | 18,136 | 17,218 | 14,870 | 14,455 | 12,538 | 11,090 |
| Specific reserves | 10,222 | 10,407 | 9,455 | 8,883 | 7,801 | 7,234 | 6,575 | 5,938 |
| Collective reserves | 4,893 | 4,386 | 3,822 | 3,030 | 2,459 | 2,132 | 2,026 | 1,948 |
| Off Balance sheet reserves | 516 | 503 | 491 | 476 | 400 | 398 | 378 | 369 |
| Specific reserve ratio | 52% | 54% | 52% | 52% | 52% | 50% | 52% | 54% |
| Total reserve ratio | 77% | 77% | 73% | 69% | 69% | 65% | 69% | 71% |
| Portfolio assessed loans | ||||||||
| Loans past due > 60 days | 7,148 | 7,107 | 6,980 | 6,534 | 6,696 | 6,796 | 6,804 | 6,483 |
| Restructured loans | 450 | 555 | 505 | 502 | 503 | 523 | 530 | 501 |
| Collective reserves | 3,509 | 3,668 | 3,594 | 3,576 | 3,544 | 3,418 | 3,499 | 3,351 |
| Reserve ratio | 46% | 48% | 48% | 51% | 49% | 47% | 48% | 48% |
| Non-performing loans | 27,219 | 26,900 | 25,621 | 24,254 | 22,069 | 21,773 | 19,873 | 18,074 |
| Total reserves | 19,141 | 18,965 | 17,363 | 15,965 | 14,204 | 13,182 | 12,478 | 11,606 |
| NPL coverage ratio | 70% | 71% | 68% | 66% | 64% | 61% | 63% | 64% |
| Non-performing loans / Lending | 1.9% | 1.8% | 1.8% | 1.8% | 1.7% | 1.7% | 1.5% | 1.4% |
Seized assets - SEB Group
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Properties, vehicles and equipment | 239 | 241 | 582 | 647 | 758 | 1,004 | 1,199 | 1,603 |
| Shares | 59 | 54 | 55 | 56 | 57 | 57 | 57 | 53 |
| Total seized assets | 298 | 295 | 637 | 703 | 815 | 1,061 | 1,256 | 1,656 |
Impaired loans by industry and geography*
(Individually assessed loans)
| SEB Group, 31 December 2011 | |
|---|---|
| ----------------------------- | -- |
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Banks | 345 | 4 | 1 | 1 | 351 | |||||
| Finance and insurance | 22 | 3 | 4 | 1 | 30 | |||||
| Wholesale and retail | 67 | 72 | 246 | 334 | 112 | 831 | ||||
| Transportation | 15 | 3 | 3 | 50 | 170 | 4 | 245 | |||
| Shipping | 4 | 87 | 91 | |||||||
| Business and household services | 105 | 107 | 43 | 57 | 270 | 11 | 5 | 598 | ||
| Construction | 41 | 5 | 1 | 94 | 199 | 118 | 51 | 19 | 528 | |
| Manufacturing | 84 | 5 | 8 | 221 | 68 | 313 | 199 | 33 | 931 | |
| Agriculture, forestry and fishing | 3 | 3 | 54 | 12 | 14 | 86 | ||||
| Mining and quarrying | 22 | 12 | 34 | |||||||
| Electricity, gas and water supply | 3 | 1 | 4 | |||||||
| Other | 127 | 9 | 15 | 16 | 4 | 240 | 411 | |||
| Corporates | 468 | 117 | 24 | 4 | 455 | 713 | 1,304 | 381 | 323 | 3,789 |
| Commercial | 48 | 340 | 839 | 3,209 | 1,471 | 5,907 | ||||
| Multi-family | 37 | 177 | 216 | 430 | ||||||
| Property Management | 85 | 340 | 1,016 | 3,209 | 1,687 | 6,337 | ||||
| Public Administration | ||||||||||
| Household mortgage | 10 | 94 | 104 | |||||||
| Other | 3 | 43 | 194 | 2 | 267 | 509 | ||||
| Households | 3 | 53 | 194 | 94 | 2 | 267 | 613 | |||
| Impaired loans | 898 | 124 | 77 | 4 | 795 | 1,923 | 4,608 | 2,071 | 590 | 11,090 |
| whereof Retail, SEB Ukraine | -445 | |||||||||
| Impaired loans excl. Retail, SEB Ukraine | 10,645 | |||||||||
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden Denmark | Norway | Finland | Estonia | Latvia Lithuania | Germany | Other | Total | ||
| Banks | 339 | 4 | 1 | 344 | ||||||
| Finance and insurance | 1 | 3 | 4 | 2 | 21 | 31 | ||||
| Wholesale and retail | 81 | 77 | 362 | 459 | 333 | 1 | 1,312 | |||
| Transportation | 20 | 3 | 16 | 128 | 507 | 7 | 35 | 716 | ||
| Shipping | 2 | 6 | 8 | |||||||
| Business and household services | 46 | 107 | 57 | 68 | 511 | 108 | 5 | 902 | ||
| Construction | 21 | 18 | 1 | 98 | 481 | 285 | 88 | 27 | 1,018 | |
| Manufacturing | 86 | 7 | 12 | 243 | 361 | 154 | 631 | 255 | 209 | 1,957 |
| Agriculture, forestry and fishing | 26 | 6 | 75 | 20 | 21 | 147 | ||||
| Mining and quarrying | 33 | 24 | 57 | |||||||
| Electricity, gas and water supply | 0 | 4 | 0 | 0 | 4 | |||||
| Other | 153 | 24 | 24 | 15 | 30 | 0 | 55 | 716 | 1,017 | |
| Corporates | 435 | 156 | 42 | 247 | 635 | 1,330 | 2,420 | 866 | 1,039 | 7,170 |
| Commercial | 128 | 586 | 1,369 | 3,836 | 1,864 | 7,784 | ||||
| Multi-family | 70 | 305 | 0 | 325 | 700 | |||||
| Property Management | 198 | 586 | 1,674 | 3,836 | 2,189 | 8,484 | ||||
| Public Administration | ||||||||||
| Household mortgage | ||||||||||
| Other | 9 | 4 | 105 | 5 | 275 | 113 | 497 | 213 | 1,220 | |
| Households | 9 | 4 | 105 | 5 | 275 | 113 | 497 | 213 | 1,220 | |
| Impaired loans | 981 | 163 | 146 | 247 | 1,227 | 3,279 | 6,370 | 3,554 | 1,252 | 17,218 |
| whereof Retail, SEB AG | -743 | |||||||||
| Impaired loans excl. Retail, SEB AG | 16,475 |
* The geographical distribution is based on where the loan is booked. Amounts before provisions for credit losses.
Portfolio assessed loans*
Loans past due > 60 days
| SEB Group, 31 December 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Corporates | 20 | 11 | 47 | 7 | 192 | 207 | 135 | 2 | 621 | |
| Household mortgage | 481 | 537 | 1,480 | 1,231 | 94 | 3,823 | ||||
| Other | 672 | 269 | 330 | 59 | 99 | 336 | 149 | 125 | 2,039 | |
| Households | 1,153 | 269 | 330 | 59 | 636 | 1,816 | 1,380 | 219 | 5,862 | |
| Past due > 60 days | 1,173 | 280 | 377 | 66 | 828 | 2,023 | 1,515 | 221 | 6,483 | |
| whereof Retail, SEB Ukraine | -219 | |||||||||
| Past due > 60 days excl Retail, SEB Ukraine | 6,264 | |||||||||
| SEB Group, 31 December 2010 | ||||||||||
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Corporates | 24 | 13 | 68 | 5 | 245 | 255 | 191 | 5 | 806 | |
| Household mortgage | 266 | 564 | 1,487 | 1,110 | 75 | 104 | 3,606 | |||
| Other | 590 | 299 | 383 | 65 | 112 | 355 | 177 | 141 | 2,122 | |
| Households | 856 | 299 | 383 | 65 | 676 | 1,842 | 1,287 | 75 | 245 | 5,728 |
| Past due > 60 days | 880 | 312 | 451 | 70 | 921 | 2,097 | 1,478 | 75 | 250 | 6,534 |
| whereof Retail, SEB AG | -75 | |||||||||
| Past due > 60 days excl Retail, SEB AG | 6,459 |
* The geographical distribution is based on where the loan is booked.
Portfolio assessed loans*
Restructured loans
| SEB Group, 31 December 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Corporates | ||||||||||
| Household mortgage | 47 | 128 | 326 | 501 | ||||||
| Other | ||||||||||
| Households | 47 | 128 | 326 | 501 | ||||||
| Restructured loans | 47 | 128 | 326 | 501 | ||||||
| * The geographical distribution is based on where the loan is booked. |
| SEB Group, 31 December 2010 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Sweden | Denmark | Norway | Finland | Estonia | Latvia | Lithuania | Germany | Other | Total |
| Corporates | ||||||||||
| Household mortgage | 49 | 159 | 294 | 502 | ||||||
| Other | ||||||||||
| Households | 49 | 159 | 294 | 502 | ||||||
| Restructured loans | 49 | 159 | 294 | 502 |
* The geographical distribution is based on where the loan is booked.
Baltic geographies – asset quality
| SEB Baltic – net credit losses | % of | ||||
|---|---|---|---|---|---|
| SEK m | Estonia | Latvia Lithuania | 2011 | Total | |
| Net Write-offs | -34 | -181 | 14 | -201 | -14% |
| Net Specific Provisions | 77 | 286 | 545 | 908 | 61% |
| Net Collective Provisions | 181 | 289 | 308 | 778 | 52% |
| of which: | |||||
| Individually assessed loans | 124 | 274 | 322 | 720 | 48% |
| Portfolio assessed loans | 57 | 15 | -14 | 58 | 4% |
| Net Credit Losses | 224 | 394 | 867 | 1,485 | 100% |
Non-Performing Loans & reserves
Baltic geographies, Dec 2011, SEK m
By quarter
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | |
| Individually assessed loans | ||||||||
| Impaired loans, gross | 13,050 | 12,743 | 11,880 | 10,875 | 9,855 | 8,793 | 8,332 | 7,324 |
| Specific reserves | 6,634 | 6,759 | 6,060 | 5,502 | 4,922 | 4,385 | 4,178 | 3,683 |
| Collective reserves | 2,913 | 2,741 | 2,254 | 1,670 | 1,350 | 1,178 | 1,036 | 956 |
| Off balance sheet reserves | 82 | 87 | 86 | 73 | 69 | 69 | 48 | 31 |
| Specific reserve ratio | 51% | 53% | 51% | 51% | 50% | 50% | 50% | 50% |
| Total reserve ratio | 73% | 74% | 70% | 66% | 64% | 63% | 63% | 63% |
| Portfolio assessed loans | ||||||||
| Loans past due > 60 days | 4,649 | 4,705 | 4,735 | 4,495 | 4,635 | 4,667 | 4,644 | 4,366 |
| Restructured loans | 450 | 555 | 505 | 502 | 503 | 523 | 530 | 501 |
| Collective reserves | 2,507 | 2,640 | 2,690 | 2,727 | 2,757 | 2,616 | 2,677 | 2,544 |
| Reserve ratio | 49% | 50% | 51% | 55% | 54% | 50% | 52% | 52% |
| Non-performing loans | 18,149 | 18,003 | 17,119 | 15,872 | 14,994 | 13,983 | 13,506 | 12,192 |
| Total reserves | 12,136 | 12,227 | 11,090 | 9,972 | 9,097 | 8,248 | 7,939 | 7,215 |
| NPL coverage ratio | 67% | 68% | 65% | 63% | 61% | 59% | 59% | 59% |
By country, Dec 2011, SEK m
| Estonia | Latvia | Lithuania | SEB Baltic | |
|---|---|---|---|---|
| Individually assessed loans | ||||
| Impaired loans, gross | 795 | 1,922 | 4,607 | 7,324 |
| Specific reserves | 551 | 973 | 2,159 | 3,683 |
| Collective reserves | 122 | 247 | 587 | 956 |
| Off balance sheet reserves | 25 | 4 | 2 | 31 |
| Specific reserve ratio | 69% | 51% | 47% | 50% |
| Total reserve ratio | 85% | 64% | 60% | 63% |
| Portfolio assessed loans | ||||
| Loans past due > 60 days, gross | 828 | 2,023 | 1,515 | 4,366 |
| Restructured loans | 47 | 128 | 326 | 501 |
| Collective reserves | 494 | 1,215 | 835 | 2,544 |
| Reserve ratio | 57% | 57% | 45% | 52% |
| Non-performing loans | 1,669 | 4,074 | 6,449 | 12,192 |
| Total reserves | 1,193 | 2,439 | 3,583 | 7,215 |
| NPL coverage ratio | 72% | 60% | 56% | 59% |
Baltic loans to the public
EUR bn
Market risk
The Group's risk taking in trading operations is primarily measured by value at risk, VaR. The Group has chosen a level of 99 per cent probability and a ten-day time-horizon for reporting. In the day-today risk management of trading positions, SEB follows up limits with a one-day time horizon. All risk exposures are well within the Board's decided limits. The table below shows the VaR exposure by risk type. Market conditions during the 4th quarter have been dominated by the euro-zone debt crises with high volatility across all asset classes. In spite of this, risk levels in the trading book have decreased, both as a result of decreased positions and increased diversification.
| Value at Risk (99 per cent, ten days) | |||||
|---|---|---|---|---|---|
| SEK m | Min | Max | 30 December 2011 | Average 2011 | Average 2010 |
| Commodities | 0 | 14 | 11 | 2 | 0 |
| Credit spread | 144 | 286 | 155 | 189 | 251 |
| Equity | 15 | 71 | 48 | 32 | 40 |
| FX | 16 | 93 | 42 | 44 | 44 |
| Interest rate | 46 | 160 | 120 | 80 | 100 |
| Volatilities | 16 | 46 | 43 | 28 | 24 |
| Diversification | - | - | -275 | -163 | -155 |
| Total | 136 | 336 | 144 | 211 | 305 |
Bond investment portfolio Total holdings amount to SEK 28bn
- •74% were Loans & Receivables (MTM not recorded)
- •1% were held for Trading (MTM over income)
- •25% were available for sale (MTM over equity)
Structured Credits
- • 227 positions, well diversified across products, asset classes and geographical areas
- • 17.2 % of the portfolio volume is rated Aaa/AAA, 18.9 % below investment grade
Financials
- •Senior FRNs
- • Maturity is 6M - 4Y, weighted average life is 1.8Y
Portfolio breakdown, Financial effects
Portfolio breakdown by geography, 30 Dec, 2011
| Product | UK | Spain | Europe Other |
US | Australia /NZ |
Total Volume, SEK Bn |
|---|---|---|---|---|---|---|
| Financials | 0.0% | 0.0% | 10.1% | 89.9% | 0.0% | 2.0 |
| Covered Bonds |
0% | 98.7% | 1.3% | 0% | 0% | 7.2 |
| Structured Credits |
9.4% | 8.9% | 51.5% | 29.9% | 0.30% | 18.8 |
| ABS | 0.0% | 1.9% | 3.2% | 0.6% | 0.0% | 1.1 |
| CDO | 0.6% | 0.0% | 5.5% | 3.0% | 0.0% | 1.7 |
| CLO | 0.3% | 0.0% | 21.8% | 20.5% | 0.0% | 8.0 |
| CMBS | 2.0% | 0.0% | 9.8% | 0.5% | 0.0% | 2.3 |
| CMO | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0 |
| RMBS prime | 6.4% | 7.0% | 11.2% | 1.3% | 0.3% | 4.9 |
| RMBS non- prime |
0.1% | 0.0% | 0.0% | 4.0% | 0.0% | 0.8 |
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Structured credits | 94 | 19 | 9 | -6 | 5 | -2 | -3 | 0 |
| Financial institutions | -11 | -41 | ||||||
| Covered bonds etc. | 0 | 0 | 3 | -7 | 4 | -4 | -21 | -12 |
| Income effect | 83 | -22 | 12 | -13 | 9 | -6 | -24 | -12 |
| Structured credits | 237 | 61 | 255 | 68 | 77 | 44 | 49 | 46 |
| Financial institutions | 51 | 26 | 74 | 49 | 56 | 23 | 0 | 4 |
| Covered bonds etc. | -83 | -639 | -136 | -239 | 288 | -232 | -514 | -189 |
| Equity effect | 205 | -552 | 193 | -122 | 421 | -165 | -465 | -139 |
| Total recognised | 288 | -574 | 205 | -135 | 430 | -171 | -489 | -151 |
| Structured credits | 799 | 1,317 | 655 | 240 | 649 | 178 | -485 | -93 |
| Financial institutions | 253 | -572 | 171 | -72 | -33 | -37 | -50 | -18 |
| Covered bonds etc. | 6 | -15 | 3 | 0 | 3 | -1 | 0 | 0 |
| Fair value of reclassified securities | 1,058 | 730 | 829 | 168 | 619 | 140 | -535 | -111 |
| Total fair value | 1,346 | 156 | 1,034 | 33 | 1,049 | -31 | -1,024 | -262 |
SEB's holdings of bonds with exposure to Greece, Italy, Ireland, Portugal and Spain
As of December 31, 2011
| Central & local | |||||
|---|---|---|---|---|---|
| Total Nominal amount SEK 14bn | governments | Covered bonds | Structured credits | Financials | Total |
| Greece | 5% | 0% | 2% | 0% | 7% |
| Italy | 3% | 0% | 5% | 0% | 8% |
| Ireland | 0% | 3% | 6% | 0% | 9% |
| Portugal | 0% | 0% | 3% | 0% | 3% |
| Spain | 0% | 60% | 12% | 0% | 73% |
| Total | 8% | 63% | 29% | 0% | 100% |
Divisional structure
Operating profit before credit loss provisions per division
* Where of Sweden 7.5bn and Cards 2.7bn
** Where of Estonia 2.0bn, Latvia 3.1bn and Lithuania 3.0bn
Continuing operations
| RoBE isolated per quarter, % | |||
|---|---|---|---|
| ------------------------------ | -- | -- | -- |
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | |
| SEB Group (RoE) | 3.8 | 8.6 | 8.5 | 14.8 | 13.7 | 13.6 | 10.9 | 9.7 |
| Merchant Banking | 17.1 | 23.8 | 21.1 | 19.9 | 19.7 | 21.7 | 23.5 | 24.5 |
| Retail | 12.8 | 12.7 | 16.5 | 16.0 | 16.2 | 18.9 | 19.6 | 20.8 |
| Wealth Management | 17.7 | 21.0 | 15.2 | 27.4 | 23.1 | 18.0 | 19.5 | 24.3 |
| Life based on op profit | 34.1 | 29.5 | 32.0 | 29.7 | 28.1 | 27.9 | 19.6 | 32.1 |
| Life based on business result | 45.6 | 40.1 | 54.1 | 46.9 | 29.6 | 57.9 | 31.5 | 54.0 |
| Baltic | negative | negative | 17.3 | 25.7 | 37.3 | 44.1 | 24.4 | 14.4 |
| RoBE accumulated in the period, % | ||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | |
| SEB Group (RoE) | 3.8 | 6.2 | 7.0 | 8.9 | 13.7 | 13.6 | 12.7 | 11.9 |
| Merchant Banking | 17.1 | 20.5 | 20.7 | 20.5 | 19.7 | 20.7 | 21.7 | 22.4 |
| Retail | 12.8 | 12.7 | 14.0 | 14.5 | 16.2 | 17.6 | 18.3 | 18.9 |
| Wealth Management | 17.7 | 19.1 | 17.8 | 20.2 | 23.1 | 20.6 | 20.2 | 21.3 |
| Life based on op profit | 34.1 | 31.8 | 31.9 | 31.3 | 28.1 | 28.0 | 25.2 | 26.9 |
| Life based on business result | 45.6 | 42.8 | 46.6 | 46.7 | 29.6 | 43.7 | 39.7 | 43.2 |
| Baltic | negative | negative | negative | 2.2 | 37.3 | 40.7 | 35.3 | 30.0 |
| RWA per division, Basel I | ||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| SEB Group | 994 | 1,008 | 984 | 998 | 971 | 1,006 | 1,037 | 1,038 |
| Merchant Banking | 508 | 520 | 497 | 504 | 510 | 522 | 541 | 535 |
| Retail | 316 | 319 | 322 | 332 | 291 | 304 | 316 | 329 |
| Wealth Management | 24 | 25 | 25 | 27 | 27 | 27 | 28 | 28 |
RWA per division, Basel II without transitional rules
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| SEB Group | 723 | 714 | 711 | 716 | 678 | 678 | 667 | 679 |
| Merchant Banking | 394 | 388 | 388 | 387 | 387 | 375 | 369 | 387 |
| Retail | 160 | 163 | 162 | 168 | 131 | 133 | 135 | 136 |
| Wealth Management | 31 | 32 | 31 | 33 | 32 | 30 | 31 | 32 |
| Baltic | 92 | 89 | 84 | 79 | 77 | 81 | 82 | 78 |
| Other | 46 | 43 | 46 | 49 | 51 | 59 | 50 | 46 |
Baltic 104 99 95 91 90 92 96 92 Other 41 46 45 44 53 61 56 54
Merchant Banking
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 2,033 | 1,883 | 8 | 1,966 | 3 | 7,533 | 7,328 | 3 |
| Net fee and commission income | 1,406 | 1,371 | 3 | 1,503 | -6 | 5,378 | 5,275 | 2 |
| Net financial income | 904 | 1,016 | -11 | 607 | 49 | 4,000 | 3,366 | 19 |
| Total operating income | 4,580 | 4,481 | 2 | 4,231 | 8 | 17,529 | 16,291 | 8 |
| Total operating expenses | -2,167 | -2,179 | -1 | -2,377 | -9 | -8,983 | -8,778 | 2 |
| Profit before credit losses | 2,413 | 2,302 | 5 | 1,854 | 30 | 8,546 | 7,513 | 14 |
| Net credit losses | -87 | -53 | 64 | -99 | -12 | -224 | -203 | 10 |
| Operating profit | 2,325 | 2,249 | 3 | 1,778 | 31 | 8,321 | 7,330 | 14 |
| Cost/Income ratio | 0.47 | 0.49 | 0.56 | 0.51 | 0.54 | |||
| Return on business equity, % | 24.5 | 23.5 | 19.9 | 22.4 | 20.5 |
Share of income and result by area
Jan – Dec 2011, per cent of total
Income, Expenses and Operating profit, SEK m
Nordic leader in investment banking
Market shares Nordic and Baltic stock exchanges
Source: The Nordic Stock exchanges
Nordic ECM transactions, by Bookrunner * Jan – Dec 2011 (EUR m)
* Rank based on IPOs or follow-ons, Nordic stock exchanges Source: Dealogic
Source: Bloomberg Source: Bloomberg
Source: Bloomberg
Trading and Capital Markets Corporate Banking
Income by main product cluster Total operating income
Low risk trading orientation
Merchant Banking – recent rankings
| December 2011 | SEB Enskilda ranked as No.1 Nordic Equity provider for All institutions |
|---|---|
| December 2011 | SEB ranked as No.1 Corporate Finance advisor in the Nordic Region. |
| December 2011 | SEB ranked as No.1 Client Relationship bank in Sweden. |
| December 2011 | SEB ranked as No.1 Foreign Exchange provider in the Nordic region |
| December 2011 | SEB awarded best Regional Cash Manager in the Nordic and Baltic region |
| November 2011 | SEB awarded best Trade Finance bank in the Nordic region |
| November 2011 | SEB awarded best bank for Scandinavian currencies |
| September 2011 | SEB Enskilda ranked as No.1 Nordic Equity provider for all institutions |
| July 2011 | SEB ranked as No.1 Foreign Exchange provider in the Nordic region for Large organisations |
| June 2011 | SEB Best Regional Bank in the Nordic/Baltic region |
| June 2011 | SEB Best M&A House in the Nordic/Baltic region |
| June 2011 | SEB Best Cash Management House in the Nordic/Baltic region |
| May 2011 | SEB Trade Finance ranked as No.1 in the Nordic region on willingness to recommend and No.2 in the Nordic region on overall performance |
| May 2011 | SEB Best Supply Chain Finance Provider, Nordic Region |
| May 2011 | SEB Best Sub-custody provider, Nordic Region |
Retail Banking
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 1,564 | 1,497 | 4 | 1,332 | 17 | 5,846 | 5,008 | 17 |
| Net fee and commission income | 825 | 740 | 11 | 848 | -3 | 3,175 | 3,240 | -2 |
| Net financial income | 81 | 74 | 9 | 74 | 9 | 302 | 273 | 11 |
| Total operating income | 2,489 | 2,334 | 7 | 2,268 | 10 | 9,419 | 8,569 | 10 |
| Total operating expenses | -1,573 | -1,546 | 2 | -1,596 | -1 | -6,341 | -6,115 | 4 |
| Profit before credit losses | 916 | 788 | 16 | 672 | 36 | 3,078 | 2,454 | 25 |
| Net credit losses | -183 | -111 | 65 | -144 | 27 | -476 | -543 | -12 |
| Operating profit | 733 | 677 | 8 | 528 | 39 | 2,602 | 1,910 | 36 |
| Cost/Income ratio | 0.63 | 0.66 | 0.70 | 0.67 | 0.71 | |||
| Return on business equity, % | 20.8 | 19.6 | 16.0 | 18.9 | 14.5 |
Share of income and result by area
Jan – Dec 2011, per cent of total
Income Operating profit
Income, Expenses and Operating profit, SEK m
Business volume development by area
SEK bn Q4 2011 change vs. Q4 2010
Retail Sweden
Volumes
Retail Sweden
Swedish mortgages private market
Fixed / floating interest rates, market share, per cent
Market share development
Sweden, per cent
Note: Other lending and deposits=SEB Parent Bank Sweden, i.e. not only Retail Sweden
Cards
Note: Adjustment of inactive cards in Q4 2010 and Q1 2011
SEB Fact Book Annual accounts 2011 RO
Wealth Management
| Q4 | Q3 | Q4 | Jan- Dec | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 167 | 166 | 1 | 136 | 23 | 636 | 485 | 31 |
| Net fee and commission income | 1,009 | 849 | 19 | 1,115 | -10 | 3,717 | 3,752 | -1 |
| Net financial income | 17 | 33 | -48 | 30 | -43 | 87 | 89 | -2 |
| Total operating income | 1,193 | 1,027 | 16 | 1,285 | -7 | 4,447 | 4,384 | 1 |
| Total operating expenses | -763 | -683 | 12 | -789 | -3 | -2,957 | -2,910 | 2 |
| Profit before credit losses | 430 | 344 | 25 | 496 | -13 | 1,490 | 1,474 | 1 |
| Net credit losses | -2 | -5 | -60 | 7 | -129 | -9 | 3 | |
| Operating profit | 428 | 339 | 26 | 503 | -15 | 1,481 | 1,477 | 0 |
| Cost/Income ratio | 0.64 | 0.67 | 0.61 | 0.66 | 0.66 | |||
| Return on business equity, % | 24.3 | 19.5 | 27.4 | 21.3 | 20.2 |
Income, Expenses and Operating profit, SEK m
AuM per customer type, SEK bn
*IC, excluding Private Banking's share of Mutual Funds
Total net new money per quarter, SEK bn
Mutual funds per product type
| Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | |
|---|---|---|---|---|---|---|---|---|
| Equity funds | 38% | 36% | 37% | 40% | 38% | 38% | 33% | 34% |
| Fixed income funds | 25% | 27% | 27% | 23% | 25% | 25% | 27% | 27% |
| Balanced funds | 14% | 15% | 15% | 16% | 16% | 16% | 17% | 16% |
| Alternative funds | 23% | 22% | 22% | 21% | 21% | 21% | 23% | 23% |
Life
| Q4 | Q3 | Q4 | Jan - Dec | Full year | |||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % | 2010 |
| Total operating income | 1,246 | 980 | 27 | 1,101 | 13 | 4,471 | 4,539 | -1 | 4,539 |
| Total operating expenses | -663 | -624 | 6 | -595 | 11 | -2,514 | -2,402 | 5 | -2,402 |
| Operating profit | 583 | 356 | 64 | 506 | 15 | 1,957 | 2,137 | -8 | 2,137 |
| Change in surplus values, net | 399 | 217 | 84 | 294 | 36 | 1,188 | 1,045 | 14 | 1,045 |
| Business result | 982 | 573 | 71 | 800 | 23 | 3,145 | 3,182 | -1 | 3,182 |
| Cost/Income ratio | 0.53 | 0.64 | 0.54 | 0.56 | 0.53 | 0.53 | |||
| Return on equity, % | |||||||||
| based on operating profit | 32.1 | 19.6 | 29.7 | 26.9 | 31.3 | 31.3 | |||
| based on business result | 54.0 | 31.5 | 46.9 | 43.2 | 46.7 | 46.7 | |||
| Number of full time equivalents | 1,323 | 1,331 | 1,226 | 1,270 | 1,190 | 1,190 |
Market shares premium income by country, per cent Market shares premium income Sweden, per cent Unit-linked new and existing policies Unit-linked new and existing policies
12 months to Sep 2011 (12 months to Sep 2010)
Source: Svensk Försäkring (Swedish insurance federation)
| Jan–Dec | Jan–Dec | |
|---|---|---|
| 2011 | 2010 | Change |
| 35,394 | 41,376 | -14% |
| 6,743 | 7,111 | -5% |
| 42,137 | 48,487 | -13% |
Total sales (weighted new sales), Division Life Unit-linked sales (weighted), Sweden, SEK m *
Market share Sweden, based on new and existing premiums % * Including Swedish customers in the Irish subsidiary
** 12 months to Sep 2011
New business profit
One way of measuring profitability of sales is to calculate the new business profit. The net present value of new sales and sales expenses are related to the weighted sales volume. During the past years there has been pressure on prices. Together with a change in the product mix this has affected the margin negatively.
| SEK m | 2006* | 2007 | 2008 | 2009 | 2010 | 2011 |
|---|---|---|---|---|---|---|
| Volume new sales (single/10+regular) | 3,345 | 3,689 | 3,858 | 4,026 | 3,964 | 2,744 |
| Present value new sales | 1,788 | 1,775 | 1,598 | 1,492 | 1,536 | 1,236 |
| Acquisition costs | -970 | -901 | -879 | -916 | -929 | -850 |
| New business profit | 818 | 874 | 719 | 576 | 607 | 386 |
| Total sales margin, % | 24.5 | 23.7 | 18.6 | 14.3 | 15.3 | 14.1 |
| Margin Swedish market, % | 24.5 | 22.9 | 20.8 | 16.2 | 17.1 | 16.9 |
* 2006 only Swedish market
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. During the year Irish Life International (ILI) has been acquired and is consolidated from August 31, 2011. This strengthens the distribution capacity across Europe and especially in the Private Banking segment. The company has assets under management of SEK 17bn and premium income of SEK 2bn on a yearly basis. The subsidiary SEB Trygg Liv Pensionstjänst was sold on September 1. The company works with administration of pension foundations and is included with a result of SEK 5m during the year and an additional capital gain from the divestment of 19m. The Life division has 1.8 million customers in total and is active in Sweden and through subsidiaries in Denmark, Ireland, Estonia, Latvia, Lithuania, Ukraine and branch offices in Finland, UK, and Luxembourg. Through insurance mediators the business area is also present on several markets in continental Europe. The main part of the traditional life insurance operations in Sweden is conducted through Gamla Livförsäkringsaktiebolaget SEB Trygg Liv. This company is a mutually operated insurance company and therefore not consolidated in the division's result. Gamla Liv is closed for new business. Traditional insurance business is also conducted in Fondförsäkringsaktiebolaget SEB Trygg Liv. The result of this business – with respect to investment income and insurance risk – is allocated to the policyholders. However, SEB Trygg Liv guarantees the contractual benefits to the policyholders in this business.
Comments on 2011
Operating profit for the division decreased by 8 per cent during 2011 to SEK 1,957m (2,137 the previous year). Currency translation effects due to the appreciated Swedish SEK had a negative effect on profit of SEK 39m – lowering income by 90m and expenses by 51m. Total income decreased by SEK 68m or 1 per cent to SEK 4,471m.
The unit-linked income increased by SEK 63m of which the newly acquired ILI contributed with 74m. The fund value increased in the beginning of the year and then stabilised until August when the European financial turmoil escalated with negative effects on the fund value. By year-end the total fund value amounted to SEK 187bn of which 17bn in ILI, compared to 179bn a year ago.
Income from other insurance, mainly traditional insurance and risk products such as sickness and health insurance, decreased by SEK 160m. The traditional insurance business was squeezed by falling stock markets and the lowest long-term interest rates in history. Additional guarantee provisions in the Swedish traditional business amounting to SEK 53m (previous year recoveries of 76m) were made. The remaining guarantee provisions amount to SEK 83m in total. The provisions are related to previous depreciations of investment assets and recoverable if future investment returns are adequate to meet guaranteed bonus levels.
Other income increased slightly or by SEK 29m. Sweden was helped by some one-off effects, including gain on the divestment of Pensionstjänst, whereas Denmark reported lower return in the own account investment portfolio. Income from IPS - Individual Pension Savings and other administrative fees were stable.
Currency translation effects had a positive impact on expenses of SEK 51m but the ILI acquisition had a negative impact of 85m. Adjusted for these effects total expenses increased by SEK 78m or 3 per cent. Higher amortisation of deferred acquisition costs, excluding ILI, had a cost increasing effect of 3 per cent. This reflects increased sales and acquisition costs in past years which rise amortisation. In order to strengthen the distribution capacity in Sweden additional sales personnel has been employed.
Operating profit in SEB Trygg Liv Sweden, including central functions, decreased to SEK 1,291m (1,440). A relatively stable unitinked income and one-off effects in other income neutralized a large part of the increase in expenses. Guarantee provisions in traditional insurance had a negative effect of SEK 129m compared to previous year.
Operating profit in SEB Pension Denmark increased by SEK 54m to 575m. Currency translation effects contributed negatively by SEK 33m. In local currency income increased by 6 per cent and expenses decreased by 2 per cent. Income from unit-linked, traditional and risk insurance increased whereas return from own account investments decreased.
Operating profit in SEB Life & Pension International decreased by SEK 85m to 91m due to considerably lower income from traditional insurance and expenses relating to the ILI acquisition.
Total assets under management amounted to SEK 420bn (424). Gamla Liv's part of total assets under management was SEK 151bn (159), other traditional insurance accounted for 77bn (81), risk products 5bn (5) and unit-linked funds 187bn (179). During the year the net inflow amounted to minus SEK 8bn of which Gamla Liv -8bn, other traditional and risk insurance -8bn and unit-linked +8 bn. The depreciation of value amounted to SEK 13bn of which unit-linked -18bn. In addition to this SEK 17bn came from the acquisition of ILI.
The total weighted sales volume amounted to SEK 42.1bn. The decrease compared to previous year was SEK 5.5bn or 11 per cent in local currencies and an additional 0.9bn or 2 per cent due to currency translation effects. In Sweden sales decreased by 22 per cent or SEK 6.6bn. The acquired ILI contributed with SEK 0.8bn. In Denmark, at fixed currency rates, sales increased by 5 per cent. Baltics and Ukraine decreased to SEK 1.1bn during the year.
SEB Trygg Liv, Sweden
The Swedish operation is partly conducted according to a bank assurance concept and partly through distribution via insurance mediators and other external partners. The bank assurance concept involves an integrated banking and insurance operation with distribution through SEB's branch offices and own sales personnel. The purpose of the concept is to offer SEB's customers a complete range of products and services within the financial area. Pension savings represent almost half of the Swedish households' financial assets. With a total asset volume of SEK 2,723bn, the share was 49 per cent at September 30, 2011 according to the SEB "Sparbarometer".
Market position
Sales focus is on unit-linked, which represents some 95 per cent of total sales. SEB Trygg Liv is the market leader in Sweden within unitlinked insurance. The new sales market share for the twelve month period to September 2011 was 21.6 per cent (22.8). Last year was affected by re-elections of occupational pension in the labour market organisation segment.
Occupational pension business
The corporate share was 69 per cent (63). For the twelve month period to September 2011, SEB Trygg Liv was the largest company with a market share in new sales unit-linked occupational pension of 16.3 per cent (17.7). The figures are distorted by the ITP2 and LO-Svenskt Näringsliv re-election in 2010. Folksam was the largest company in 2010 due to the re-election.
Private market
In the private market, SEB Trygg Liv has a strong position within new business unit-linked endowment insurance. Endowment insurance has shown a strong growth during the past years but the turmoil on the financial markets combined with the introduction of new competing savings products had a negative effect during the second half of 2011. The new sales market share for the twelve month period to September 2011 was 32.3 per cent (35.2). 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 in SEB Pension Denmark is carried out in a profit-sharing company. The market and investment risks are managed in relation to guaranteed commitments to policyholders. Variations in investment returns are largely absorbed by accumulated buffer funds, called "collective bonus potential". The result for the year includes an accrued income of DKK 130m which is placed in a "shadow account" according to Danish legislation. The amount is restricted and not distributable to the owners as per December 31 and until future investment returns are adequate to meet guaranteed returns.
Products and distribution
SEB Pension sells savings, life, sickness and disability insurance to private individuals and corporate clients through own sales personnel and insurance mediators.
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.
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.
Market position
Measured in terms of premium income, SEB Pension has a total market share of 9 per cent. The market share in the unit-linked segment is 10 per cent. Danica Pension was number one with a total market share of 27 per cent and also dominated the unit-linked segment with a 37 per cent share. The market shares are for the first half of 2011 in the peer group / competitive market segment.
SEB Life & Pension International
SEB Life & Pension International includes subsidiaries in Ireland, Estonia, Latvia, Lithuania, Ukraine and branch offices in Finland, UK, and Luxembourg. Through insurance mediators the business area is also present on several markets in continental Europe.
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. The Finnish branch office focuses on sales to the Finnish market. The portfolio bond offering has been strengthened through the acquisition of Irish Life International with assets under management of SEK 17bn and premium income of SEK 2bn on a yearly basis. This strengthens the distribution capacity across Europe and especially in the Private Banking segment. Mainly Spain, Italy and the UK will be new markets.
The Baltic subsidiaries concentrate primarily on unit-linked insurance, but offer traditional insurance and sickness/disability insurance as well. During the year, 89 (80) per cent of the sales volume was 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 reassuring capital buffers.
Income statement
| Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Jan - Dec | ||
|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 |
| Income unit-linked | 668 | 632 | 639 | 620 | 645 | 2,473 | 2,536 |
| Income other insurance 1) | 310 | 370 | 332 | 196 | 434 | 1,492 | 1,332 |
| Other income | 123 | 128 | 144 | 164 | 167 | 574 | 603 |
| Total operating income | 1,101 | 1,130 | 1,115 | 980 | 1,246 | 4,539 | 4,471 |
| Operating expenses 2) | -646 | -649 | -623 | -586 | -673 | -2,549 | -2,531 |
| Other expenses | -5 | 0 | -9 | -10 | -8 | -13 | -27 |
| Change in deferred acquisition costs | 56 | 30 | 24 | -28 | 18 | 160 | 44 |
| Total expenses | -595 | -619 | -608 | -624 | -663 | -2,402 | -2,514 |
| Operating profit | 506 | 511 | 507 | 356 | 583 | 2,137 | 1,957 |
| Change in surplus value, net 3) | 294 | 27 | 545 | 217 | 399 | 1,045 | 1,188 |
| Business result | 800 | 538 | 1,052 | 573 | 982 | 3,182 | 3,145 |
| Financial effects due to market fluctuations 3) | 686 | -455 | -224 | -1,588 | 370 | 626 | -1,897 |
| Change in assumptions 3) | -323 | -24 | 36 | 0 | -191 | -243 | -179 |
| Total result | 1,163 | 59 | 864 | -1,015 | 1,161 | 3,565 | 1,069 |
| Business equity | 6,000 | 6,400 | 6,400 | 6,400 | 6,400 | 6,000 | 6,400 |
| Return on business equity 4) | 29.7 | 28.1 | 27.9 | 19.6 | 32.1 | 31.3 | 26.9 |
| Premium income, gross | 7,752 | 8,549 | 6,850 | 6,212 | 7,323 | 30,468 | 28,934 |
| Expense ratio, % 5) | 8.3 | 7.6 | 9.1 | 9.4 | 9.2 | 8.4 | 8.7 |
| Operating profit by business area | |||||||
| SEB Trygg Liv, Sweden | 408 | 388 | 329 | 268 | 329 | 1,475 | 1,314 |
| SEB Pension, Denmark | 61 | 114 | 160 | 110 | 191 | 521 | 575 |
| SEB Life & Pension, International | 38 | 20 | 17 | -10 | 64 | 176 | 91 |
| Other including central functions etc | -1 | -11 | 1 | -12 | -1 | -35 | -23 |
| 506 | 511 | 507 | 356 | 583 | 2,137 | 1,957 | |
| 1) Effect of guarantee commitments in | |||||||
| traditional insurance in Sweden | 50 | 15 | -21 | -73 | 26 | 76 | -53 |
| 2) Change compared to previous reporting due to | |||||||
| reallocation within the Group | -16 | -65 | |||||
| 3) Effect on surplus values | |||||||
| Changes compared to previously because | |||||||
| Danish traditional insurance is now included: | |||||||
| Change in surplus value, net | -51 | -120 | |||||
| Financial effects due to market fluctuations | 24 | 72 | |||||
| Change in assumptions | 56 | 109 |
4) Operating profit after 12 per cent tax which reflects the divisions effective tax rate, annual basis
5) Operating expenses as percentage of premium income
Sales volume insurance (weighted*)
| Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Jan - Dec | ||
|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 |
| Total | 12,314 | 11,933 | 11,601 | 8,562 | 10,041 | 48,487 | 42,137 |
| Traditional life and sickness/health insurance | 1,938 | 1,408 | 1,928 | 1,690 | 1,717 | 7,111 | 6,743 |
| Unit-linked insurance | 10,376 | 10,525 | 9,673 | 6,872 | 8,324 | 41,376 | 35,394 |
| Corporate as per cent of total | 66% | 58% | 70% | 74% | 71% | 65% | 68% |
| SEB Trygg Liv Sweden | 7,804 | 7,026 | 6,649 | 4,854 | 5,252 | 30,373 | 23,781 |
| Traditional life and sickness/health insurance | 403 | 322 | 366 | 405 | 303 | 1,422 | 1,396 |
| Unit-linked insurance | 7,401 | 6,704 | 6,283 | 4,449 | 4,949 | 28,951 | 22,385 |
| Corporate as per cent of total | 66% | 61% | 69% | 75% | 75% | 63% | 69% |
| SEB Pension Denmark | 3,146 | 2,845 | 3,678 | 2,942 | 3,165 | 12,744 | 12,630 |
| Traditional life and sickness insurance | 1,338 | 955 | 1,375 | 1,201 | 1,231 | 5,091 | 4,762 |
| Unit-linked insurance | 1,808 | 1,890 | 2,303 | 1,741 | 1,934 | 7,653 | 7,868 |
| Corporate as per cent of total | 80% | 76% | 87% | 87% | 86% | 82% | 84% |
| SEB Life & Pension International | 1,364 | 2,062 | 1,274 | 766 | 1,624 | 5,370 | 5,726 |
| Traditional life and sickness insurance | 197 | 131 | 187 | 84 | 183 | 598 | 585 |
| Unit-linked insurance | 1,167 | 1,931 | 1,087 | 682 | 1,441 | 4,772 | 5,141 |
| Corporate as per cent of total | 31% | 26% | 23% | 19% | 29% | 28% | 25% |
* Single premiums + regular premiums times ten
Premium income and Assets under management
| Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Jan - Dec | ||
|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 |
| Premium income: Total | 7,752 | 8,549 | 6,850 | 6,212 | 7,323 | 30,468 | 28,934 |
| Traditional life and sickness/health insurance | 1,959 | 1,301 | 1,886 | 1,486 | 2,023 | 6,946 | 6,696 |
| Unit-linked insurance | 5,793 | 7,248 | 4,964 | 4,726 | 5,300 | 23,522 | 22,238 |
| SEB Trygg Liv Sweden | 4,290 | 4,743 | 3,823 | 3,316 | 3,470 | 17,117 | 15,352 |
| Traditional life and sickness/health insurance | 651 | 607 | 505 | 451 | 654 | 2,400 | 2,217 |
| Unit-linked insurance | 3,639 | 4,136 | 3,318 | 2,865 | 2,816 | 14,717 | 13,135 |
| SEB Pension Denmark | 2,326 | 1,795 | 1,904 | 2,005 | 2,267 | 8,605 | 7,971 |
| Traditional life and sickness/health insurance | 1,199 | 616 | 1,297 | 959 | 1,260 | 4,176 | 4,132 |
| Unit-linked insurance | 1,127 | 1,179 | 607 | 1,046 | 1,007 | 4,429 | 3,839 |
| SEB Life & Pension International | 1,136 | 2,011 | 1,123 | 891 | 1,586 | 4,746 | 5,611 |
| Traditional life and sickness/health insurance | 109 | 78 | 84 | 76 | 109 | 370 | 347 |
| Unit-linked insurance | 1,027 | 1,933 | 1,039 | 815 | 1,477 | 4,376 | 5,264 |
| Assets under management:* Total | 424,100 | 425,100 | 427,100 | 416,200 | 420,000 | 424,100 | 420,000 |
| Traditional life and sickness/health insurance** | 244,600 | 245,600 | 247,000 | 233,300 | 233,200 | 244,600 | 233,200 |
| Unit-linked insurance | 179,500 | 179,500 | 180,100 | 182,900 | 186,800 | 179,500 | 186,800 |
| SEB Trygg Liv Sweden | 303,900 | 302,900 | 302,400 | 281,300 | 287,900 | 303,900 | 287,900 |
| Traditional life and sickness/health insurance | 168,100 | 168,700 | 167,800 | 158,500 | 160,800 | 168,100 | 160,800 |
| Unit-linked insurance | 135,800 | 134,200 | 134,600 | 122,800 | 127,100 | 135,800 | 127,100 |
| SEB Pension Denmark | 91,400 | 92,400 | 95,200 | 90,400 | 88,600 | 91,400 | 88,600 |
| Traditional life and sickness/health insurance | 75,400 | 75,800 | 78,000 | 73,600 | 71,200 | 75,400 | 71,200 |
| Unit-linked insurance | 16,000 | 16,600 | 17,200 | 16,800 | 17,400 | 16,000 | 17,400 |
| SEB Life & Pension International | 28,800 | 29,800 | 29,500 | 44,500 | 43,500 | 28,800 | 43,500 |
| Traditional life and sickness/health insurance | 1,100 | 1,100 | 1,200 | 1,200 | 1,200 | 1,100 | 1,200 |
| Unit-linked insurance | 27,700 | 28,700 | 28,300 | 43,300 | 42,300 | 27,700 | 42,300 |
* rounded to whole 100 millions.
** including AuM from Gamla Livförsäkringsbolaget
SEK bn
Assets under management, (net assets)
Surplus value accounting
| Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Jan - Dec | ||
|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 |
| Surplus values, opening balance | 15,698 | 16,318 | 15,799 | 16,563 | 15,087 | 14,928 | 16,318 |
| Adjustment opening balance 1) | -56 | 341 | -126 | 22 | 203 | 181 | |
| Present value of new sales 2) | 422 | 342 | 408 | 229 | 339 | 1,602 | 1,318 |
| Return/realised value on policies from previous periods | -163 | -142 | -275 | -41 | -338 | -610 | -796 |
| Actual outcome compared to assumptions 3) | 91 | -143 | 436 | 1 | 416 | 213 | 710 |
| Change in surplus values ongoing business, gross | 350 | 57 | 569 | 189 | 417 | 1,205 | 1,232 |
| Capitalisation of acquisition costs for the period | -222 | -214 | -207 | -160 | -208 | -813 | -789 |
| Amortisation of capitalised acquisition costs | 166 | 184 | 183 | 188 | 190 | 653 | 745 |
| Change in surplus values ongoing business, net 4) | 294 | 27 | 545 | 217 | 399 | 1,045 | 1,188 |
| Financial effects due to short term market fluctuations 5) | 686 | -455 | -224 | -1,588 | 370 | 626 | -1,897 |
| Change in assumptions 6) | -323 | -24 | 36 | -191 | -243 | -179 | |
| Total change in surplus values | 657 | -452 | 357 | -1,371 | 578 | 1,428 | -888 |
| Exchange rate differences etc | -37 | -11 | 66 | 21 | -104 | -241 | -28 |
| Surplus values, closing balance 7) | 16,318 | 15,799 | 16,563 | 15,087 | 15,583 | 16,318 | 15,583 |
| Most important assumptions (Swedish customer base - which represent some 80 per cent of the surplus value), per cent. | |||||||
| Discount rate | 7.5 | 7.0 |
| Surrender of endowment insurance contracts: | ||
|---|---|---|
| contracts signed within 1 year / 1-4 years | 1 / 7 / | 1 / 7 / |
| / 5 years / 6 years / thereafter | 15 / 12 / 8 | 15 / 12 / 8 |
| Lapse rate of regular premiums, unit-linked | 11 | 11 |
| Growth in fund units, gross before fees and taxes | 5.5 | 5.0 |
| Inflation CPI / Inflation expenses | 2 / 3 | 2 / 3 |
| Expected return on solvency margin | 4 | 4 |
| Right to transfer policy, unit-linked | 2 | 2 |
| Mortality | The Group's experience | |
| Sensitivity to changes in assumptions (total division). | ||
| Change in discount rate +1 per cent | -1,536 | |
| " -1 per cent |
1,895 | |
| Change in value growth +1 per cent |
2,689 | |
| of investment assets -1 per cent |
-2,747 |
The newly acquired subsidiary Irish Life International is not yet included in the surplus value accounting.
1) Effects from adjustments of the calculation method. Q2-3 2011 is related to previously not included products in Denmark.
2) Sales defined as new contracts and extra premiums in existing contracts.
3) The reported actual outcome of contracts signed can be placed in relation to the operative assumptions that were made. Thus, the value of the deviations can be estimated. The most important components consist of extensions of contracts as well as cancellations. However, the actual income and administrative expenses are included in full in the operating result.
4) Deferred acquisition costs are capitalised in the accounts and amortised according to plan. The reported change in surplus values is therefore adjusted by the net result of the capitalisation and amortisation during the period.
5) Assumed unit growth is 5.0 per cent gross (before fees and taxes). Actual growth results in positive or negative financial effects.
6) A lowering of the discount rate had a positive effect in Q4 2011 of some SEK 800m but lower expected growth in fund values had a negative effect of some SEK 300m and higher frequency of surrenders, lapse and transfers had a negative effect of some SEK 700m. 2010 was negatively affected by assumed higher frequency of transfer of policies.
7) The calculated surplus value is not included in the SEB Group's consolidated accounts. The closing balance is shown after deduction of capitalised acquisition costs in business included in the surplus value calculation (SEK 3,659m at December 31, 2011).
Surplus values
Surplus values are the present values of future profits from written insurance policies. They are calculated to better evaluate the profitability of a life insurance business since an insurance policy often has a long duration. Income accrues regularly throughout the duration of the policy. Costs, on the other hand, mainly arise at the point of sale, which leads to an imbalance between income and costs at the time when a policy is signed.
The reporting is according to international practice and is reviewed
by an external party annually. Surplus values are not consolidated in the SEB Group accounts. From 2011 surplus values relating to the traditional business in Denmark are included in the total surplus values for the division. Historical figures are restated accordingly. Profit distribution between shareholders and policyholders in this business is defined by the so-called contribution principle. Surplus values are therefore the net present value of future profits allocated to the shareholders. As for unit-linked, the calculations are based on different assumptions, which are adjusted as required to correspond to the long-term actual development.
Embedded value
| SEK m | 31 Dec 2008 | 31 Dec 2009 | 31 Dec 2010 | 31 Dec 2011 |
|---|---|---|---|---|
| Equity 1) Surplus values |
8,827 12,660 |
8,594 14,928 |
8,780 16,318 |
9,322 15,583 |
| 1) Dividend paid to the parent company during the period | -1,275 | -1,850 | -1,000 | -850 |
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 since 1997. 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 | 2011 | 2011 | % | 2010 | % | 2011 | 2010 | % |
| Net interest income | 514 | 524 | -2 | 492 | 4 | 1,980 | 1,923 | 3 |
| Net fee and commission income | 227 | 218 | 4 | 235 | -3 | 894 | 964 | -7 |
| Net financial income | 104 | 92 | 13 | 60 | 73 | 365 | 401 | -9 |
| Total operating income | 834 | 829 | 1 | 798 | 5 | 3,206 | 3,340 | -4 |
| Total operating expenses | -546 | -488 | 12 | -688 | -21 | -1,945 | -2,201 | -12 |
| Profit before credit losses | 288 | 341 | -16 | 110 | 162 | 1,261 | 1,139 | 11 |
| Net credit losses | 32 | 202 | -84 | 736 | -96 | 1,485 | -873 | |
| Operating profit | 320 | 545 | -41 | 842 | -62 | 2,748 | 261 | |
| Cost/Income ratio | 0.65 | 0.59 | 0.86 | 0.61 | 0.66 | |||
| Return on business equity, % | 14.4 | 24.4 | 25.7 | 30.0 | 2.2 |
Share of income and result by area
Jan – Dec 2011, per cent of total
Income, Expenses and Operating profit, SEK m
Income Profit before credit losses
Business volume development by area SEK bn
Baltic Lending market shares
Volumes
Baltic Estonia, EUR
Baltic Latvia, LVL
Q1 08
Q2 Q3 Q4 Q1
09
Q2 Q3 Q4 Q1
10
Q2 Q3 Q4 Q1
11
Q2 Q3 Q4
Q2 Q3 Q4
0.0 0.5 1.0 1.5 2.0
Real estate holding companies
Country split
Income Statement (part of the Baltic Division) Real estate holding companies
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| SEK m | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 |
| Total operating income | 0 | - 1 | - 1 | - 5 | - 5 | - 7 | - 8 | - 13 |
| Total operating expenses | - 3 | - 7 | - 7 | - 4 | - 7 | - 9 | - 9 | - 12 |
| Profit before credit losses | - 3 | - 7 | - 8 | - 9 | - 12 | - 16 | - 17 | - 24 |
| Operating profit | - 3 | - 7 | - 8 | - 7 | - 10 | - 14 | - 16 | - 23 |
Baltic Lithuania, LTL
Baltic division vs. geography
The Baltic division encompasses the Retail and Corporate Banking operations in Estonia, Latvia and Lithuania as well as the Baltic real estate holding company. In the Fact Book, the full Baltic geographical segmentation is also reported, including the operations in Corporate Finance, Structured Finance, Wealth Management and Life.
C/I ratio
| Division | 0.65 | 0.61 |
|---|---|---|
| Country | 0.58 | 0.56 |
Macro
Nordic countries
Source: Reuters EcoWin Source: Reuters EcoWin
GDP, year-on-year % change Unemployment, % of labour force
Export, current prices, year-on-year % change Key interest rates, %
Source: Reuters EcoWin Source: Reuters EcoWin
General government public debt, % of GDP General government balance, % of GDP
Source: OECD and DG-ECFIN Source: OECD
Baltic countries
Baltic GDP, year-on-year % change
EUs sentiment indicator, Index (100 = historical average)
Unemployment, % of labour force
Export, year-on-year % change, current prices
Inflation, year-on-year % change
General government public debt, per cent of GDP
Swedish housing market
Source: Reuters EcoWin Source: Reuters EcoWin
Number of housing starts compared to population, % Mortgage lending rates, %
Household debt, % of disposable income
Source: Reuters EcoWin Source: OECD
Household asset to debt ratio Labour market situation
House prices Residential investments
Household savings ratio
Macro forecasts per country
| GDP (%) | Inflation (%) | |||||||
|---|---|---|---|---|---|---|---|---|
| 2010 | 2011F | 2012F | 2013F | 2010 | 2011F | 2012F | 2013F | |
| Denmark* | 1.8 | 1.0 | 0.5 | 1.4 | 2.2 | 2.6 | 1.5 | 1.6 |
| Finland* | 3.6 | 2.7 | 0.5 | 1.7 | 1.7 | 3.3 | 1.8 | 1.9 |
| Norway | 0.7 | 1.4 | 2.1 | 2.4 | 2.5 | 1.2 | 1.4 | 2.1 |
| Sweden | 5.6 | 4.3 | 0.5 | 2.0 | 1.2 | 3.0 | 1.2 | 1.2 |
| Germany* | 3.7 | 3.1 | 0.4 | 1.3 | 1.2 | 2.4 | 1.7 | 1.9 |
| Eurozone* | 1.8 | 1.5 | -0.6 | 0.7 | 1.6 | 2.7 | 1.9 | 1.4 |
| Estonia* | 2.3 | 7.0 | 2.0 | 3.0 | 2.7 | 5.3 | 4.0 | 5.0 |
| Latvia* | -0.3 | 4.4 | 3.0 | 4.0 | -1.2 | 3.4 | 2.4 | 2.0 |
| Lithuania* | 1.4 | 6.5 | 2.0 | 3.5 | 1.2 | 4.0 | 2.5 | 3.0 |
| Russia | 4.0 | 4.0 | 3.6 | 4.1 | 6.9 | 8.6 | 7.3 | 6.8 |
| Ukraine | 4.2 | 4.3 | 3.8 | 4.2 | 9.4 | 10.0 | 9.0 | 8.5 |
Sources: National statistical agencies, SEB Economic Research
* Harmonised consumer price index
Ulf Grunnesjö Head of Investor Relations Phone: +46 8 763 8501 Mobile: +46 70 763 8501 Email: [email protected]
Thomas Bengtson Debt Investor Relations and Treasury Officer Phone: +46 8-763 8150 Mobile: +46 70-763 8150 Email: [email protected]
Per Andersson Investor Relations Officer Meeting requests and road shows Phone: +46 8 763 8171 Mobile: +46 70 667 7481 Email: [email protected]
Viveka Hirdman– Ryrberg
Head of Communications Phone: +46 8 763 8577 Mobile: +46 70 550 35 00 Email: [email protected]
Anna Helsén Group Press Officer Phone: +46 8 763 9947 +46 70 698 48 58 Email: anna.helsé[email protected]
Financial calendar
| Date | Event |
|---|---|
| 2012 | |
| 12 Jan - 6 Feb | Silent period |
| 7 Feb | Annual Accounts for 2011 |
| 7 Mar | Annual Report on www.sebgroup.com |
| 29 Mar | Annual General Meeting in Stockholm |
| 10 Apr - 23 Apr | Silent period |
| 24 Apr | Interim Report Jan – Mar |
| 2 Jul - 15 Jul | Silent period |
| 16 Jul | Interim Report Jan – Jun |
| 8 Oct - 24 Oct | Silent period |
| 25 Oct | Interim Report Jan – Sep |
| 2013 | |
| 31 Jan 2013 | Annual Accounts for 2012 |
Definitions
Return on Equity
Net profit attributable to equity holders for the year as a percentage of average shareholders equity.
Return on business equity
Operating profit reduced by a standard tax rate per division, as a percentage of business equity.
Return on total assets Net profit as a percentage of average assets.
Return on risk-weighted assets Net profit as a percentage of average risk-weighted assets.
Cost/Income-ratio
Total operating expenses as a percentage of total operating income.
Basic earnings per share
Net profit attributable to equity holders for the year as a percentage of the average number of shares.
Diluted earnings per share
Net profit attributable to equity holders for the year divided by the average diluted number of shares.
Adjusted shareholders' equity per share
Shareholders' equity plus the equity portion of any surplus values in the holdings of interest-bearing securities and surplus value in life insurance operations as a percentage of the number of shares at year-end.
Net worth per share
Shareholders' equity plus the equity portion of any surplus values in the holdings of interest-bearing securities and surplus value in life insurance operations as a percentage of the number of shares.
Risk-weighted assets
Total assets and off balance sheet items, weighted in accordance with capital adequacy regulation for credit risk. It is customary to also express regulatory capital requirements for market and operational risk as risk-weighted assets, yielding a total RWA number for these three risk categories. Defined only for the Financial Group of Undertakings which excludes insurance entities.
Tier 1 capital
Shareholders' equity excluding proposed dividend, deferred tax assets, intangible assets (e.g. bank-related goodwill) and certain other adjustments. Tier 1 capital can also include qualifying forms of subordinated loans (Tier 1 capital contribution)
Tier 2 capital
Mainly subordinated loans not qualifying as Tier 1 capital contribution. Dated loans give a maturity-dependent reduction, and some further adjustments are made.
Capital base
The sum of Tier 1 and Tier 2 capital. Deductions should be made for investments in insurance companies and pension surplus values.
Tier 1 capital ratio
Tier 1 capital as a percentage of risk-weighted assets.
Total capital ratio
The capital base as a percentage of risk-weighted assets.
Credit loss level
Net credit losses as a percentage of the opening balance of loans to the public, loans to credit institutions and loan guarantees less specific, collective and off balance sheet reserves.
Gross level of impaired loans
Individually assessed impaired loans, gross, as a percentage of loans to the public and loans to credit institutions before reduction of reserves.
Net level of impaired loans
Individually assessed impaired loans, net (less specific reserves) as a percentage of net loans to the public and loans to credit institutions less specific reserves and collective reserves.
Specific reserve ratio for individually assessed impaired loans Specific reserves as a percentage of individually assessed impaired loans.
Total reserve ratio for individually assessed impaired loans Total reserves (specific reserves and collective reserves for individually assessed loans) as a percentage of individually assessed impaired loans.
Reserve ratio for portfolio assessed loans
Collective reserves for portfolio assessed loans as a percentage of portfolio assessed loans past due more than 60 days or restructured.
Non-Performing-Loans
Loans deemed to cause probable credit losses including individually assessed impaired loans, portfolio assessed loans past due more than 60 days and restructured portfolio assessed loans.
NPL coverage ratio
Total reserves (specific, collective and off balance sheet reserves) as a percentage of Non-performing loans.
NPL % of lending
Non-performing loans as a percentage of loans to the public and loans to credit institutions before reduction of reserves.
Credit portfolio
Total credit exposure comprises the Group's credit portfolio (loans, leasing agreements, contingent liabilities and counterparty risks arising from derivatives contracts), repos and debt instruments. Exposures are presented before reserves. Derivatives and repos are reported after netting agreements but before collateral arrangements and includes add-ons for potential future exposure. Debt instruments comprise all interest-bearing instruments held for investment, treasury and client trading purposes, and includes instruments reclassified as Loans & Receivables. Debt instruments in the insurance division are excluded.