14 Jul 2015 05:20

SEB second quarter 2015 – Operating profit SEK 5.3bn (5.3)

Reported operating profit in the second quarter amounted to SEK 5.3bn (SEK 5.3bn in the second quarter of 2014). 

As indicated in SEB’s press release dated 5 May 2015, the second quarter result includes a negative one-off item of SEK 902m relating to the Swiss Supreme Court‘s decision to deny SEB’s application for a refund of withholding tax dating back to the years 2006-2008.

Reported operating profit in the second quarter amounted to SEK 5.3bn (SEK 5.3bn in the second quarter of 2014). Excluding the one-off item, the operating income for the second quarter would have been SEK 12.0bn, up 8 per cent compared to the second quarter 2014. Operating profit would have reached SEK 6.2bn, up 17 per cent compared to the second quarter 2014, and return on equity 14.8 per cent.

“Over the past years we have built a broader platform strengthening our Nordic and German corporate franchise. With our diversified business-mix and strong balance sheet, we can continue to support and grow with our customers”, says Annika Falkengren, SEB’s President and CEO, commenting on the second quarter results.

“Customer activity was high in this exceptional market environment as evidenced by corporate and institutional customers’ increased demand for risk management products.”

“We continued to generate capital and our Common Equity Tier 1 capital ratio amounted to 17.2 per cent.”

Reported operating income in the second quarter amounted to SEK 11.1bn. Operating expenses increased by 2 per cent to SEK 5.6bn as previously communicated due to headwinds from higher pension costs and currency effects.

Asset quality remained high. Credit losses amounted to SEK 220m, corresponding to a net credit loss level of 6 basis points.

Return on equity for the quarter amounted to 12.0 per cent and the Common Equity Tier 1 capital ratio increased to 17.2 per cent.

The liquidity coverage ratio was 123 per cent, and the core liquidity reserve amounted to SEK 462bn.