SEB: Second quarter of 2012: Operating profit SEK 3,951m (4,200)
"SEB's relationship banking model has supported a high and stable level of earnings in a quarter marked by a challenging environment. Putting the customer's perspective front and centre yields real results," says Annika Falkengren, SEB's President and CEO, commenting on the second quarter 2012 result.
"In Sweden more customers choose SEB as their home bank. The number of SME home bank customers has increased by 20 per cent over the last two years and it is encouraging that one in four of new companies in Sweden choose SEB as their bank. At the same time the number of private home bank customers has increased by almost 30,000."
"Our expansion in the Nordic countries and Germany to support large corporates and institutions has provided a strong platform for future growth. Our existing customers do more business with us while we have attracted many new customers."
"Together with our deleveraging and risk mitigating actions over the last years, earnings volatility has been substantially reduced. We have divested non-core businesses such as the retail operations in Germany and Ukraine and increased cost efficiency. We have built a strong balance sheet in terms of capital, liquidity reserves, funding structure and asset quality."
Profit before credit losses amounted to SEK 4.2bn (SEK 3.6bn the second quarter 2011).
Operating income amounted to SEK 9.9bn, up 4 per cent compared to the second quarter 2011. Operating expenses, at SEK 5.7bn, were 3 per cent lower than the second quarter 2011.
Provisions for credit losses amounted to SEK 269m.
Net profit amounted to SEK 3.0bn (3.4 second quarter 2011).
The liquidity coverage ratio was 108 per cent, the core liquidity reserve amounted to SEK 339bn and the total liquid resources were SEK 537bn. The core Tier 1 capital ratio was 15.3 per cent (13.7 at year-end) and the Tier 1 capital ratio was 17.5 per cent (15.9 at year-end).