Financial Targets

Through the resilience and flexibility that come from a strong capital base, good access to funding, high credit ratings and cost efficiency, SEB can create shareholder value in varying market conditions.
The Board of Directors sets three targets which together contribute to financial strength.

Common Equity Tier 1 Capital Ratio

Target: ~16.4 per cent

2018: 17.61) per cent

1) Calculation changed in 2018. Without the change the outcome would have been 20.1 per cent

Common Equity Tier 1 Capital Ratio
%
2016 18.8
2017 19.4
2018 17.6
Target

SEB shall maintain a Common Equity Tier 1 (CET1) capital ratio that is around 1.5 percentage points above the regulatory requirement. Per 31 December 2018 SEB’s buffer was 2.7 percentage points. SEB’s estimate of the current CET1 requirement from the Swedish Financial Supervisory Authority was 14.9 per cent at yearend 2018.

Outcome

The Common Equity Tier 1 capital ratio was 17.6 per cent at year-end.

Return on Equity

Target: Competitive with peers

2018: 16.3 per cent

Excluding items affecting comparability, 13.4 per cent.

Return on Equity
%
2016 7.8
2017 11.5
2018 16.3
Target

SEB shall generate a competitive return on equity. This means that the bank in the long term aspires to achieve a 15 per cent return on equity.

Outcome

Return on equity was 16.3 per cent in 2018. Excluding items affecting comparability, return on equity was 13.4 per cent.

Dividend Payout Ratio

Target: 40 per cent or more of earnings per share

20181): 70 per cent

Excluding items affecting comparability 76 per cent.

1) Based on the proposed dividend of SEK 6.50 for 2018 which consists of SEK 6.00 as ordinary dividend and SEK 0.50 as extraordinary dividend.

Dividend Payout Ratio
%
2016 66
2017 113
2018 61
Target

40 per cent or more of earnings per share. SEB strives for long-term growth in dividend per share. The size of the dividend takes into account SEB’s financial position, the prevailing economic situation, earnings, regulatory requirements and opportunities for growth.

Outcome

The dividend for 2018 corresponds to 61 per cent of earnings per share. Excluding items affecting comparability, the dividend corresponds to 76 per cent of earnings per share.