"This quarter, business sentiment subsided a bit from the peak levels seen during last year and equity markets were marked by high volatility. We saw little large event-driven activity and at the start of the year, financial markets were impacted by the implementation of MiFID II. Swedish medium-sized companies were however more active and mortgage lending in Sweden continued to grow. Business sentiment continued to be positive in the Baltic countries. All in all, the prevailing market sentiment and a seasonal slow-down resulted in a operating profit of SEK 5.3bn, 5 per cent lower than the first quarter last year. We continue to work hard to execute on the final year of our present business plan and remain committed to our cost cap of SEK 22bn for 2018", says Johan Torgeby, SEB's President and CEO, commenting on the first quarter result.
Operating profit before items affecting comparability for the first quarter 2018 was SEK 5.3bn (6.1). Operating profit for the first quarter 2018 was SEK 5.3bn (4.2). Return on equity was 11.6 per cent (9.0) while return on equity before items affecting comparability was 11.6 per cent (13.7).
Operating income for the first quarter amounted to SEK 10.8bn (11.8). Compared to the first quarter 2017, operating income decreased by 4 per cent. Operating expenses amounted to SEK 5.4bn (5.6). Compared to the first quarter 2017, operating expenses were unchanged.
Asset quality remained strong. The net expected credit loss level was 2 basis points for the quarter. The liquidity coverage ratio was 138 per cent. The Common Equity Tier 1 capital ratio was 19.0 per cent (19.4 at year-end). SEB's own assessment of the CET1 requirement was 16.7 per cent (17.2). The capital buffer above the requirement was 230 basis points.
You can download the Interim Report, Press Conference Presentation and Fact Book from https://sebgroup.com/investor-relations/reports-and-presentations/financial-reports.
For further information, please contact
Jan Erik Back, CFO, +46 8 22 19 00
Christoffer Geijer, Head of Investor Relations, +46 8 763 83 19; +46 70 762 10 06
Viveka Hirdman-Ryrberg, Head of Corporate Communications, +46 70 550 35 00
SEB is a leading Nordic financial services group with a strong belief that entrepreneurial minds and innovative companies are key in creating a better world. SEB takes a long term perspective and supports its customers in good times and bad. In Sweden and the Baltic countries, SEB offers financial advice and a wide range of financial services. In Denmark, Finland, Norway, Germany and the United Kingdom, the bank's operations have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients. The international nature of SEB's business is reflected in its presence in some 20 countries worldwide. At 31 March 2018, the Group's total assets amounted to SEK 2,903bn while its assets under management totalled SEK 1,854bn. The Group has around 15,000 employees. Read more about SEB at sebgroup.com