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.