“Once again we notice the fragility of the world economy and that corporate sentiment is becoming more cautious. In this climate, our customer centric focus creates earnings stability”, says Annika Falkengren, SEB’s President and CEO, commenting on the third quarter results.
“All divisions increased income and showed continued growth in the customer base with good cost control. Operating income and profit were higher than the second quarter, even though the summer months as usual were slower.”
“Our increased cost and capital efficiency led to a return on equity for the quarter of 17.3 per cent; 13.8 per cent excluding a one-time capital gain. The Common Equity Tier 1 capital ratio increased to 16.2 per cent.”
Operating income in the third quarter amounted to SEK 12.7bn. The income included a one-time positive effect from a sale of MasterCard shares in the amount of SEK 1.3bn. Excluding the effect, operating income would have been SEK 11.3bn, an increase of 10 per cent compared to the same quarter 2013. Operating expenses increased by 1 per cent to SEK 5.5bn. Operating profit in the quarter amounted to SEK 5.3bn (SEK 6.7bn including the one-time effect), which was up 16 per cent compared to the third quarter 2013.
Asset quality remained high. Credit losses amounted to SEK 473m, corresponding to a net credit loss level of 13 basis points.
The liquidity coverage ratio was 122 per cent, the core liquidity reserve amounted to SEK 613bn and the total liquid resources were SEK 840bn.