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: 18.4 per cent 2016: 18.8 per cent Common Equity Tier 1 Capital Ratio % 2014 16.3 2015 18.8 2016 18.8 Target SEB shall maintain a CET1 capital ratio that is around 15o basis points higher than the regulatory requirement, which currently would mean around 18.4 per cent. Outcome The Common Equity Tier 1 capital ratio was 18.8 per cent at year-end. Return on Equity Target: Competitive with peers 2016: 7.8 per cent Excluding items affecting comparability, 11.3 per cent. Return on Equity % 2014 13.1 2015 12.2 2016 7.8 Target SEB strives to generate a competitive return on equity. This means that the bank over time aspires to achieve a 15 per cent return on equity. Outcome Return on equity was 7.8 per cent in 2016. Excluding items affecting comparability, return on equity was 11.3 per cent. Dividend Payout Ratio Target: 40 per cent or more of earnings per share 2016: 113 per cent Excluding items affecting comparability 75 per cent. Dividend Payout Ratio % 2014 54 2015 66 2016 113 Target SEB strives for long-term dividend growth. 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 2016 corresponds to 113 per cent of earnings per share. Excluding items affecting comparability, the dividend corresponds to 75 per cent of earnings per share.