SEB 2006 - operating profit SEK 15.6bn
Operating profit for the full year 2006 increased by 39 per cent, to SEK 15,562m. Net profit improved by 50 per cent, to SEK 12,623m.
Operating income rose by 13 per cent, to SEK 38.7bn and costs by 2 per cent, to SEK 22.5bn. Cost/income ratio improved to 0.58 (0.65). Incremental cost/income ratio for 2006 was 0.28.
Return on equity was 20.8 per cent (15.8) and earnings per share SEK 18.72 (12.58).
Operating profit for the fourth quarter amounted to SEK 4,124m, an increase of 21 per cent compared with the corresponding quarter of 2005 - adjusted for one-off charges - and 7 per cent up compared with the previous quarter. Net profit rose to SEK 3,790m.
Increased sales efforts and high activity throughout the year strengthened income generation. Quarterly operating income exceeded SEK 10bn.
Operating expenses increased slightly compared with the previous quarter due to performance-related costs. Cost/income ratio improved to 0.57. The Board of Directors proposes a dividend of SEK 6.00 (4.75).
Building on the strong economic climate with high financial market activities and business volumes, SEB achieved its best result so far. The efforts to improve productivity and establish a more competitive long-term cost-base are gradually yielding result. In last year's buoyant business climate, revenues were up by SEK 4.5bn, or 13 per cent, whilst costs increased by 2 per cent. Return on equity reached 20.8 per cent.
Improved pro-activity towards customers strengthened SEB's position as a financial advisor where commissions, including net life insurance income, generated nearly 50 per cent of total revenues. Strong markets and intensified customer activities led to higher operating profit in all divisions. Profit growth was particularly strong within Merchant Banking, Eastern European Banking and Life, with operating results increasing in the region of 40 to 65 per cent.
Several steps were taken during the past year to realise the full potential of SEB's attractive platform with a diversified business-mix around the Baltic rim. SEB has narrowed its strategy to a full universal banking offering in Sweden, the Baltic countries and Germany and a more focused offering in other markets.
SEB has laid out a roadmap to integrated businesses and common support functions. A Group-wide programme to improve operational excellence, the SEB Way, has been launched. It includes installing streamlined processes, sharing knowledge and encouraging a culture of continuous improvement.
Strengthened customer offerings and increased efficiency are key priorities in order to facilitate further profit growth. This work will continue in 2007.
The long-term commitment to excellence remains unchanged. SEB strives to become the number one North- European bank in terms of customer satisfaction in its chosen segments, with the aim to achieve leadership in financial performance.
The report including tables and additional information can be downloaded from the links below.