Over the years SEB has capitalised on its long standing strong position as the leading corporate bank in the Nordic region and the bank’s financial strength. Over the last five years, the share price of the SEB Class A share increased by 74 per cent.
SEB has been a corporate bank since its establishment by A. O. Wallenberg in 1856. To this day the Wallenberg family is deeply engaged in the bank’s current and future operations. There is a clear connection between customer development and development of the bank’s earnings. In addition, SEB’s directed initiatives for growth in its areas of strength – corporate business and long-term savings – have had a positive effect.
An investor in SEB believes in positive economic development in the bank’s home markets – the Nordic and Baltic countries and Germany – and in the bank’s ability to capitalise on this development over time and to manage negative developments in an effective manner.
Return on investment
The return on the investment is not only contributable to the share price but also to the dividend. Should the market value fall, there is an opportunity for compensation through the dividend. SEB:s Annual General Meeting decided that SEK 6.00 plus a one-time dividend of SEK0.50, corresponding to 61 per cent of earnings per share be distributed for 2018. The dividend yield, i.e. the dividend in relation to the share price at year-end 2018, is 7.5 per cent based on the proposed dividend. The target is to distribute 40 per cent or more of earnings per share.