21 Oct 2009 07:30

Third quarter 2009: Pre-provision income up by 15 per cent compared with 2008 - balance sheet strengthened

"SEB's result for the third quarter is solid evidence of our position as a relationship bank and our diversified business mix. During the year, we have established a strong financial position. In combination with emerging signs of economic stability and better functioning financial markets, we have decided not to apply for prolongation of the Swedish Funding Guarantee Programme. SEB has not utilized the Programme", says Annika Falkengren, SEB's President and CEO, commenting on today's interim report.
SEB's profit before provisions for credit losses in the third quarter 2009 amounted to SEK 3,720m , an increase of 15 per cent compared with the corresponding quarter of 2008 (3,242). In comparison with the previous quarter (4,162), profit before provisions was down by 11 per cent, partly due to seasonal results and one-off effects in the second quarter. Operating profit for the quarter was SEK 388m (2,526).
Operating income amounted to SEK 9,735m, an increase of 6 per cent compared with the third quarter last year. In relation to the previous quarter, which contained a capital gain of SEK 1.3bn, operating income decreased by 26 per cent. The decline was also due to the lower Net interest, negatively affected by additional costs for the extended funding duration, falling deposit margins and lower return on the bond investment portfolio.
Operating expenses amounted to SEK 6,015m, virtually flat compared with the third quarter of 2008 and down by 9 per cent from the second quarter, adjusted for goodwill impairments during that period.
Provisions for credit losses amounted to SEK 3,335m, of which the Baltic countries accounted for SEK 2,642m or 79 per cent. The credit loss level was 0.98 per cent (0.27). The Group's total reserve ratio was 72 per cent.
Core Tier I capital ratio was 11.8 per cent and Tier I capital ratio13.5 per cent.
SEB is a North European financial group serving some 400,000 corporate customers and institutions and five million private individuals. SEB offers universal banking services in Sweden, Germany and the Baltic countries - Estonia, Latvia and Lithuania. It also has local presence in the other Nordic countries, Ukraine and Russia and a global presence through its international network in major financial centres. On 30 September 2009, the Group's total assets amounted to SEK 2,233bn (~EUR 219bn) while its assets under management totalled SEK 1,295bn (~EUR 127bn).The Group has about 20,000 employees. Read more about SEB at www.sebgroup.com.
For further information, please contact:
Jan Erik Back, CFO, +46 8 22 19 00
Ulf Grunnesjö, Head of Investor Relations, +46 8 763 85 01; +46 70 763 85 01
Viveka Hirdman-Ryrberg, Head of Corporate Communication, +46 6 763 85 77, +46 70 550 35 00
Annika Halldin, Senior Financial Information Officer, +46 763 85 60; +46 70 379 00 60