13 Jul 2010 10:35

Second quarter of 2010: Operating profit SEK 2.6bn (0.6)

"The cautiously growing optimism in the Nordic countries translates into higher income levels during the quarter. Lower non-performing loans leads to credit loss provisions at par with early 2008, even as SEB adds slightly to the Baltic total NPL coverage ratio. It means that SEB has turned the page in the Baltic countries", says Annika Falkengren, SEB's President and CEO, commenting on today's interim report.

Operating profit for the second quarter isolated amounted to SEK 2,580m (618), an increase of 140 per cent compared to the previous quarter.

SEB's profit before provisions for credit losses amounted to SEK 3,202m (4,162), 7 per cent higher compared to the previous quarter.

Operating income at SEK 9,821m, (13,174) grew by 5 per cent in the quarter. Net interest income rose by 6 per cent whereas net fee and commission income was up by 13 per cent. 

Operating expenses amounted to SEK 6,619m (9,012). Adjusted for goodwill impairments for the Baltic countries and Russia in the second quarter last year, expenses were flat, while they were up by 4 per cent from previous quarter reflecting investments and higher activity levels.

Provisions for credit losses decreased by 68 per cent in the quarter to SEK 619m (3,567), leading to a credit loss level of 0.16 per cent (1.07). Provisions for credit losses in the Baltic region amounted to SEK 451m (2,641). The Group's total reserve ratio was unchanged in the quarter, at 77 per cent.

The core Tier I capital ratio was further strengthened to 12.1 per cent and the Tier I capital ratio to 14.3 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 and the Baltic countries - Estonia, Latvia and Lithuania. It also has local presence in the other Nordic countries and in Germany and a global presence through its international network in major financial centres. On 30 June 2010, the Group's total assets amounted to SEK 2,318bn while its assets under management totalled SEK 1,328bn. 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