Another strong quarter: SEK 2.7bn
Operating profit amounted to SEK 2,689m, virtually unchanged compared with both the first quarter of 2004 and the previous quarter. More than 50 per cent was generated outside Sweden.
Net profit amounted to SEK 2,004m, an increase of 2 per cent compared with the corresponding period of 2004 and 3 per cent better than the previous quarter.
Total operating income improved by 4 per cent compared with the corresponding period of 2004 and was unchanged compared with the previous quarter. Loan and leasing volumes increased by 7 per cent during the quarter.
Total operating expenses rose by 6 per cent compared with the first quarter of 2004 due to acquisitions and increased investments in future growth mainly outside Sweden, but showed a decrease of 1 per cent compared with the previous quarter.
Net credit losses remained stable at a low level.
Return on equity amounted to 15.5 per cent (15.5) and earnings per share were SEK 2.99 (2.83).
All figures for 2004 have been restated in accordance with the new International Financing Reporting Standards, IFRS
Once again SEB delivers a strong quarterly result. Our investments in growth and our 3 C-programme continue to bear fruit. 2005 has started out positively with revenues increasing by 4 per cent compared to last year. Even in this environment of persistently low interest rates and fierce competition, our cross-servicing efforts to deliver SEB's full product range, i.e. "One SEB", to our customers are yielding results. Volumes and market shares have increased in many areas. Costs are in focus but have increased as a result of increased investments in home-markets outside Sweden and add-on acquisitions.
Corporate & Institutions continues to yield a stable result with increasing volumes in the Nordic countries and Germany. Activity in Nordic Retail & Private Banking picked up towards the end of the quarter. The positive trend in volumes for mortgages, consumer loans and cards continues. Margin pressure is noticeable for both divisions.
In Germany costs are further down but low economic activity is holding back revenue growth.
SEB Asset Management increased its total assets under management to an all-time-high and strengthened its North-European position; home markets outside Sweden accounted for more than 50 percent of total net sales.
SEB Trygg Liv continues to deliver good results and is well positioned for further profit growth, since Codan Pension in Denmark is developing more favourably than anticipated.
Our early investments in Eastern Europe continue to develop favourably. Once again Eastern European Banking delivered a record result and increased its share of the Group's overall operating profit. This shows the strength of SEB's diversified platform. We will continue to build on our North-European base through the unique combination of local market knowledge and international first class competence.
The full report including tables can be downloaded from the following link.