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. In 2011-2016, the market value of the SEB Class A share has increased by 119 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 5.50, 113 per cent, of earnings per share be distributed for 2016. The dividend yield, i.e. the dividend in relation to the share price at year-end 2015, is 6 per cent based on the proposed dividend. The target is to distribute 40 per cent or more of earnings per share.