“We operate in exceptional times, where negative interest rates have turned economic relationships upside down, impacting customer behaviour. Also in these times our well diversified business mix led to increased operating profit”, says Annika Falkengren, SEB’s President and CEO, commenting on the first quarter results.
“This market environment with high volatility and rising stock markets calls for caution. We have seen that customers demand for hedging, risk management and long-term savings increased.”
Operating income in the first quarter amounted to SEK 11.6bn, an increase of 11 per cent compared to the same quarter 2014. Operating expenses increased by 4 per cent to SEK 5.6bn as previously communicated due to headwinds from higher pension costs and currency effects. Operating profit in the quarter amounted to SEK 5.8bn, which was up 19 per cent compared to the first quarter 2014.
Asset quality remained high. Credit losses amounted to SEK 188m, corresponding to a net credit loss level of 5 basis points.
Return on equity for the quarter amounted to 13.8 per cent and the Common Equity Tier 1 capital ratio increased to 16.6 per cent.
The liquidity coverage ratio was 124 per cent, the core liquidity reserve amounted to SEK 569bn and the total liquid resources were SEK 773bn.