Annika Falkengren President and CEO Result presentation January September 2010
Highlights Income Seasonally slow quarter supported by diversified earnings Further improved asset quality Baltics back in black Profit SEB Baltic Underlying operating profit Underlying operating profit up 35 per cent SEK 3.6bn 2
Profit and loss trend Profit and loss development -08-10 (SEK bn) 8.9 6.2 5.5-10 -10-10 Operating income Operating expenses Netcreditlosses -0.2 Operating profit (SEK bn) 3.6 2.8-08 Q4-08 Q1-09 Q2-09 -09 Q4-09 Q1-10 Q2-10 -10 Note: Shaded areas refer to gain on buy-back of subordinated debt, acquisition goodwill write-offs and restructuring costs, respectively 3
Income statement 2010 Profit and loss (SEK m) -10 Q2-10 % Total operating income 8,882 9,224-4 Total operating expenses -5,476-5,907-7 Profit bef credit losses & restr. 3,406 3,317 3 Restructuring costs -755 Profit before credit losses 2,651 3,317-20 Net credit losses etc 196-642 Operating profit 2,847 2,675 6 Operating income by type, vs. Q2 (SEK bn) 3.8 4.2 3.7 3.4 47% 9% 9% 8% 10% 1.0 0.7 0.8 0.8 38% Q2-10 -10 Q2-10 -10 Q2-10 -10 Q2-10 -10 Net interest Net fee and Net financial Net life insurance income commissions income income 4
Net interest income development NII 2008 2010 (SEK bn) 6 5 4 3 2 1 0 Q1-08 Q2 Q4 Q1-09 Q2 Q4 Q1-10 Q2-10 -10 NII by income type 2008 2010 (SEK bn) 2.8 0.5 0.9 Q1-08 Q2 Q4 Q1-09 Q2 Q4 Q1-10 Q2 Q1-08 Q2 Q4 Q1-09 Q2 Q4 Q1-10 Q2 Q1-08 Q2 Q4 Q1-09 Q2 Q4 Q1-10 Q2 Lending Deposits Funding & other 5
Increased funding cost reflected in mortgage pricing SEB s monthly average new Swedish 3m mortgage rates vs. monthly average reference rates (%) 2.5 2.0 1.5 SPREAD 0.52% 1.0 0.5 SPREAD 0.58% Term financing cost 3m STIBOR Riksbank policy rate 0.0 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 SEB s funding cost 3m rate on new mortgages 6
Commission income development Fees & commissions 2008 2010 (SEK bn) 5 4 3 2 1 0 Q1-08 Q2 Q4 Q1-09 Q2 Q4 Q1-10 Q2-10 -10 Fees & commissions by income type 2008 2010 (SEK bn, gross) 1.7 2.2 0.5 0.2 Q1-08 Q1-09 Q1-10 Q1-08 New issues & advisory Q1-09 Q1-10 Q1-08 Secondary markets & derivatives Q1-09 Q1-10 Custody & mutual funds Q1-08 Q1-09 Q1-10 Payments, cards, lending, deposits & guarantees 7
Divisional performance Operating profit -10 vs. Q2-10 (SEK m) 2,491 GTS 2,002 Corp TCM Cards Retail 571 688 424 519 320 563-197 514 Merchant Banking Retail Banking Wealth Management Life Baltic Q2-10 -10 RoBE YTD 22% 18% 20% 33% Neg. 8
Nordic corporate activity picking up Nordic Syndicated Corporate Loans Bookrunner (YTD) SEB Nordea 14.2% 22.2% Adviser and sole financing arranger on NOK 1bn merger Sole lender on ~SEK 1.6bn acq. facilities HL Display and Stofa Credit Agricole 12.9% DnB NOR Danske Markets Source: Dealogic 9.5% 11.9% Bookrunner and adviser on USD 2.1bn acq. of Intergraph Lead arranger and adviser on SEK 4.4bn acq. of Aleris 9
SEB well positioned in the Nordics Best bank in the Nordic & Baltic region for real estate products Best Danish equity research firm Refinancing of Nordic corporate loans 2010-2013 (SEK bn) 350 340 245 165 No.1 in securities lending Business bank of the year 2010 2011 2012 2013 Sweden Norway Denmark Finland Source: Dealogic Swedish corporate lending growth vs. economic sentiment 20 10 0-10 2003 2004 2005 2006 2007 2008 2009 2010 Corporate lending growth, y-o-y % - lagged by 12 months (LHS) Economic sentiment (RHS) 115 105 95 85 75 10
Meeting private and SME customers wherever they are 11
Focus on savings New savings account 1.76% from 1 November Leading in unit-linked Market shares (%) Lithuania Latvia Estonia Denmark Sweden 17 12 15 25 24 0% 50% 100% SEB rank #1 #2 #3 #3 #2 Rising net sales in WM Total net sales per quarter (SEK bn) 13.5 8.7 1.1-09 Q2-10 -10 SEB market share Competitors Institutional Clients Private Banking Notes: Unit-linked market shares as of Q2 2010; Sweden based on premium income unit-linked 12 months to June 2010; Denmark unit-linked insurance in competitive markets; Latvia latest information from Q1 2010 12
Net credit loss development continues to improve Credit losses Baltic region (SEK bn) 2.6 2.6 2.6 Credit losses* outside Baltic region (SEK bn) 154 bps YTD 7 bps YTD 1.7 1.4 0.2 0.3 0.4 0.9 0.5 0.1 0.1 0.3 0.8 0.6 0.8 0.6 0.5 0.4 0.2 0.1 Q1-08 Q2 Q4 Q1-09 Q2 Q4 Q1-10 Q2-0.3 Q1-08 Q2 Q4 Q1-09 Q2 Q4 Q1-10 Q2 * Continuing operations 13
Baltic recovery gains momentum 20 16 12 Baltics SEK bn 8 4 0 NPL Reserves Total Writeoffs, acc. Q4-09 Q1-10 Q2-10 -10 Export-led economic recovery Consumer confidence returning 10-point plan running according to plan Increased focus on new business activities Strong franchise - customers, employees, solutions & brand 14
Resilience and flexibility Continued Nordic expansion Positioned for increased market activity Tier 1 ratio Tier 1 14.2% Matched >18m Leverage 5.6% Total 73% Tier 1 Tier 1 Tier 1 funding ratio* reserve ratio * FDIC 15
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