Operating profit for the first quarter 2009: SEK 1.8bn
"SEB's underlying business has started the year on a strong note. Continued high earnings capacity going forward and the increased capital strength after the rights issue will provide a substantial buffer to withstand further expected deterioration of overall business conditions, ", says Annika Falkengren, SEB's President and CEO, commenting on today's interim report.
SEB's profit before provisions for credit losses quarter amounted to SEK 4,186m, an increase of 51 per cent compared with the first quarter of 2008 and 27 per cent down from the previous quarter. Operating profit amounted to SEK 1,802m (2,410).
Operating income increased by 30 per cent to SEK 11,430m compared with the first quarter of 2008. Net interest income improved, by 40 per cent.
Operating expenses amounted to SEK 7,244m, an increase of 10 per cent compared with the corresponding quarter of 2008, excluding goodwill impairment charges.
In the quarter, an impairment charge of SEK 594m was made for all goodwill for SEB's business in Ukraine due to the deepened crisis in the country.
Provisions for credit losses increased to SEK 2,386m (364), of which 60 per cent were collective. The Baltic countries accounted for SEK 1,702m of the provisions. The credit loss level was 0.70 per cent (0.13). The Group's total reserve ratio was 72 per cent.
Return on equity was 4.9 per cent (9.6) and earnings per share SEK 1.03 (1.92).
Tier I capital ratio was 12.0 per cent (9.7).
The Board has decided to apply for SEB's participation in the Swedish Funding Guarantee Programme. The application will be filed within the next few days.
The whole interim report is available under the attached link, and at www.sebgroup.com.
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, Poland, Ukraine and Russia and a global presence through its international network in major financial centers. On 31 December 2008, the Group's total assets amounted to SEK 2,511bn (~EUR 230bn) while its assets under management totalled SEK 1,201bn (~EUR 110bn).The Group has about 22,000 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
Odd Eiken, Head of Group Marketing & Communication, +46 6 763 87 30, +46 70-763 87 30
Annika Halldin, Senior Financial Information Officer, +46 763 85 60; +46 70 379 00 60