This restatement encompasses parts of the financial reporting structure for 2007. The restatement follows the second step of integration of the Group’s operations and provides a financial reporting structure with a divisional and geographic matrix. The first restatement step was carried out a year ago, when the new Divisional structure announced in the autumn of 2006, in effect from January 1 2007 was restated. To access the information published then please click this link (please note that 2006 is no longer fully comparable).
The Financial statistics pages on the Investor Relations department on this website will be updated along with the rest of the Q1 reporting information on April 30, 2008.
The changes affect only the financial reporting structure since the organisation gradually during 2006 and 2007 has been progressing according to this structure, i.e. product responsibilities in the Baltic countries have been assumed by Merchant Banking, Wealth Management and Life. It involves no further changes of reporting lines.
The revised structure involves the following changes:
- The Merchant Banking and Treasury business have been fully separated from the Retail business in Estonia, Latvia and Lithuania. It means that the business activities in the Baltic countries are reported in accordance with the Group divisional structure: Retail Banking, Merchant Banking, Wealth Management and Life. All treasury activities in SEB are the responsibility of Group Treasury and reported under “Other and Eliminations”.
- The SME focused Leasing & Factoring operations transferred from Merchant Banking to Retail Banking.
- The Wealth Management division includes two business areas: Institutional Clients and Private Banking. The new business areas are based on the split of customer responsibility and they are supported by Investment Management and the division’s operations and staff functions.
- The cross-divisional Group Support functions, i.e. Group Operations, Group IT and Group Staff, have been almost fully separated from the divisions. This lowers the Staff costs and increases Other expenses on the Divisional level.
- Not any significant changes in either volume or risk weighted assets since the profit sharing model in the Baltic countries does not change the customer responsibility.