"SEB has recorded a solid result given the slowly recovering macro-economic climate. With the fortress balance sheet created last year we can continue to further deepen our customer relationships and invest in our strong corporate franchise", says Annika Falkengren, SEB's President and CEO, commenting on today's interim report.
Operating profit amounted to SEK 1,075m (1,802), a decrease of 40 per cent compared with the corresponding quarter of 2009. In comparison with previous quarter, operating profit improved by 91 per cent due to lower credit loss provisioning.
SEB's profit before provisions for credit losses amounted to SEK 3,005m (4,186), reflecting a continued low activity level among SEB's corporate customers.
Operating income amounted to SEK 9,372m, (11,430), a decrease of 18 per cent compared with the corresponding quarter of 2009. In comparison with previous quarter, operating income decreased by 5 per cent. Net interest income rose by 5 per cent in the quarter, whereas net fee and commission income was down 10 per cent.
Operating expenses amounted to SEK 6,367m (7,244). Adjusted for goodwill impairments for Ukraine in the first quarter last year, expenses decreased by 4 per cent, while they were up by 4 per cent from previous quarter.
Provisions for credit losses decreased by 19 per cent to SEK 1,926m (2,386), leading to a credit loss level of 0.50 per cent (0.70). In comparison with the previous quarter, SEB's net credit losses were almost halved. Provisions for credit losses in the Baltic region amounted to SEK 1,431m (1,702), 74 per cent of the Group's total provisions. The Group's total reserve ratio was increased to 77 per cent.
Core Tier I capital ratio was 11.7 per cent and Tier I capital ratio13.9 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 31 March 2010, the Group's total assets amounted to SEK 2,285n while its assets under management totalled SEK 1,382bn. The Group has about 19,000 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