22 Oct 2020 07:03

SEB's third quarter 2020 result

The operating profit for the third quarter 2020 amounted to SEK 5.9bn with a return on equity of 11.7 per cent and a Common Equity Tier 1 capital ratio of 19.4 per cent. The Board of Directors confirms its previous decision to not propose a dividend during 2020.

"Despite the challenging economic environment, SEB delivered a robust financial performance. Higher net interest income, lower expenses and lower credit losses were offset by valuation effects that came down from the elevated level in the second quarter. We continue to see limited effects from the pandemic on the asset quality and the guidance on net expected credit losses of around SEK 6bn for 2020 remains. We have a strong capital and liquidity position and the capital buffer above the common equity tier 1 regulatory requirement amounted to 580 basis points. Despite some light at the end of the tunnel, uncertainty still remains. It continues to be our highest priority to support our customers,”, says Johan Torgeby, President and CEO.

Financial information

 

Q3

 

Q2

 

Q3

 

Jan–Sep

 

Full year

SEK m

2020

 

2020

%

 

2019

%

 

2020

2019

%

 

2019

Total operating income

12 563

 

13 999

-10

 

11 942

5

 

36 651

36 045

2

 

50 134

Total operating expenses

-5 547

 

-5 712

-3

 

-5 589

-1

 

-16 905

-16 918

0

 

-22 945

Net expected credit losses

-1 098

 

-2 691

-59

 

- 489

124

 

-5 282

-1 297

   

-2 294

Operating profit before
items affecting comparability

5 916

 

5 598

6

 

5 864

1

 

14 463

17 831

-19

 

24 894

Items affecting comparability1)

   

-1 000

-100

       

-1 000

       

Operating profit

5 916

 

4 598

29

 

5 864

1

 

13 463

17 831

-24

 

24 894

NET PROFIT

4 766

 

3 501

36

 

4 772

0

 

10 623

14 346

-26

 

20 177

                           

Return on equity, %

11.7

 

8.7

   

13.2

   

8.8

13.1

   

13.7

Return on equity excluding items affecting comparability, %

11.6

 

11.2

   

13.2

   

9.7

13.2

   

13.8

Basic earnings per share, SEK

2.21

 

1.62

   

2.21

   

4.91

6.64

   

9.33

                           

1) Administrative fine issued by the Swedish FSA. See note 6.

You can download the Quarterly Report, Results Presentation and Fact Book from https://sebgroup.com/investor-relations/reports-and-presentations/financial-reports.

For further information, please contact
Masih Yazdi, CFO, +46 771 621 000
Pawel Wyszynski, Head of Investor Relations, +46 70 462 21 11
Frank Hojem, Head of Corporate Communication, +46 70 763 99 47

This is information that Skandinaviska Enskilda Banken AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at around 7.00 am CET, on 22 October 2020.

SEB is a leading Nordic financial services group with a strong belief that entrepreneurial minds and innovative companies are key in creating a better world. SEB takes a long-term perspective and supports its customers in good times and bad. In Sweden and the Baltic countries, SEB offers financial advice and a wide range of financial services. In Denmark, Finland, Norway, Germany and the United Kingdom, the bank's operations have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients. The international nature of SEB's business is reflected in its presence in some 20 countries worldwide. At 30 September 2020, the Group's total assets amounted to SEK 3,201bn while its assets under management totalled SEK 2,054bn. The Group has around 15,000 employees. Read more about SEB at sebgroup.com.