Annika Falkengren CEO 2007
Highlights Q1 2007 Operating profit SEK 4.2bn Revenues exceeded SEK 10bn Continued high customer activity but more volatile capital markets Organic growth RWA: + 7% Stable costs Total income Total cost Operating profit +6% +1% +13% Note: Q1 2007 vs. Q1 2006
Continued profitable growth Operating profit SEKbn Return on equity SEB Group, per cent If normalised tax rate applied, ROE 19.5% 3.7 4.2 4.1 19.6 19.0 23.2 2.7 15.5 Q1-05 Q1-06 Q1-07 Q4-06 Q1-05 Q1-06 Q1-07 Q4-06
Key figures Q1 Change SEKm 2007 Q1 06 Q4 06 Operating Income 10,193 6% 2% Operating Expenses 5,802 1% 2% Operating Profit 4,157 13% 1% Net Profit 3,262 15% -14% Cost / income ratio 0.57 0.60 0.57 Return on Equity, % 19.0 19.6 23.2 Credit loss level, % 0.10 0.09 0.10 Core capital ratio, Basel II, % 8.33* Core capital ratio, Basel I, % 7.87 7.31 8.19 RWA, Basel I, SEKbn 796 741 741 * Basel II including transitional rules
Net Interest Income, customer driven SEB Group, SEKm 3,596 2,921 3,767 800 +5% +11% +15% 3,369 Lending to the public SEKbn 1,200 1,000 600 400 Q1 2004 Q3 2004 Q1 2005 Q3 2005 Deposits from the public SEKbn 700 Q1 2006 Q3 2006 Q1 2007 600 500 +7% Q1 2006 Q1 2007 400 Q1 2004 Q3 2004 Q1 2005 Q3 2005 Q1 2006 Q3 2006 Q1 2007
Fee and commission income, +7 % Gross development Q1 2006 Q1 2007, SEKm +14% +6% Q1-06 Q1-07 +3% 1,487 1,692 1,647 1,742 1,134 1,164 +19% 445 531 New issues & advisory Secondary market & derivatives Custody & mutual funds Payment, cards, structured lending, deposits, guarantees
Cost management Total expenses 100 46 16 28 34 136 5,770 5,802 5,904 Q1 2006 Cost inflation Organic growth Depreciation Variable salaries Cost before efficiency gains Cost efficiency gains Redundancy costs Q1 2007
Retail Banking Highlights High customer activity across all areas Income growth largely driven by strong net interest development Higher costs in Estonia, Latvia and Lithuania; lower in Sweden and Card All business areas increased profit >10% vs Q1 2006 Operating profit SEK 1.5bn Q1 2007; per cent of total Cards Sweden Lithuania 12% 20% 12% 13% 39% 4% Latvia Estonia Germany
Activity level Retail Germany: insurance Sales; EUR mn 2004 2005 97 2006 57 +70% Sweden: equity linked bonds Sales; SEK bn 2.6 +46% 3.8 18% Q1 06 Q1 07 Sweden: SME customers Cash management customers (thousands) 90 80 70 60 50 2004 2005 2006 2007 Q1 06 Q1 07 Revenue growth Q1 2007 vs. Q1 2006 + 14%
Latvian development Per cent; Dec 2004 Mar 2007 Approach Focus on quality and riskadjusted returns ahead of market share and volume since mid 2006 Ensure controlled slowdown of credit growth during 2007 Closely monitor general economic development Increased capitalisation 50% 40% 30% 20% 10% 0% SEB Hansabank DnB Nord Parex Banka Sampo Lending market shares
SEB in Germany SEKm SEB AG 2006: 200 150 Increased credit losses SEK 80m Operating profit SEK 1,488m RoE 9.5 % 100 50 0 Q1 2006 Q1 2007-50 MB CRE Retail Treasury AM Old GRMB
Merchant Banking Highlights Income stable at a high level Strong organic growth Record turnover on Nordic stock exchanges Custody transactions increased by 60% y-o-y Stable underlying costs Sony Ericsson outsourced cash management to SEB Operating profit SEK 1.9bn Q1 2007; per cent of total Global Transaction Services 17% 49% Corporate Banking 34% Trading and Capital Markets
Activity level Merchant Nordic Mergers and Acquisitions USDbn, Jan Mar 2007 (No. of made deals) Market Shares Nordic Stock Exchanges Jan Mar 2007 Deutsche Bank AG Goldman Sachs & Co Morgan Stanley SEB Enskilda Credit Suisse Lehman Brothers CIBC World Markets Inc SHB (10) (1) (1) (2) (2) (6) (3) (7) 0 1 2 3 4 5 6 7 SEB Enskilda Carnegie Morgan Stanley SHB Glitnir 7.5% 6.3% 6.0% 4.7% 4.6% Custody transactions per day Thousands 100 80 60 40 20 0 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr 2004 2005 2006 2007 Revenue growth Q1 2007 vs. Q1 2006 + 5%
Wealth Highlights High business volumes Lower net sales in the market but SEB captured volumes and market shares Customer activities included several new products SEB capturing shift to alternatives AuM SEK 1,266bn (+6% YTD) Operating profit SEK 0.6bn Q1 2007; per cent of total Asset Management 70% Private Banking 30%
Activity level Wealth Mutual Funds Net Sales Sweden Cumulative Jan 2005 Mar 2007, including PPM 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Jan- 05 Mar Maj Jul Sep Nov Jan- 06 Mar May Jul Sep Nov Jan- 07 SEB SHB Robur Nordea Mar Distribution per type of fund Jan-Mar 2007 100% 80% 60% 40% 20% 0% -20% -40% -60% SEB Equity funds Short bond funds Fund in fund Total Mixed funds Long bond funds Alternative funds Revenue growth Q1 2007 vs. Q1 2006 + 11%
Life Highlights Operating profit up 56 per cent Strong unit-linked income supported by strong stock markets Sales down in Sweden due to legislative actions AuM SEK 408bn (+3% YTD) Operating profit SEK 0.7bn Q1 2007; per cent of total International 14% Denmark 30% 56% Sweden
Direction Operational excellence Customer satisfaction Profitable growth
Per-Arne Blomquist CFO Financial performance
Net interest income, analysis SEB Group Q1 2006 Q1 2007, SEKm 184 53 121 90 277 3,767 3,596 Q1 2006 Lending margin Lending volume Deposit margin Deposit volume Funding & other Q1 2007
Net interest income analysis SEB Group Q4 2006 Q1 2007 46 201 3,767 84 21 3,604 14 203 Q4 2006 Lending margin Lending volume Deposit margin Deposit volume Funding & other Effect from structured products Q1 2007
Cost management Total expenses 100 46 16 28 34 136 5,770 5,802 5,904 Q1 2006 Cost inflation Organic growth Depreciation Variable salaries Cost before efficiency gains Cost efficiency gains Redundancy costs Q1 2007
Capital position Core capital ratio (%) Total capital ratio (%) 8.2 * 7.9 8.3 11.5 11.0 11.6 Basel I Basel I Basel II Basel I Basel I Basel II Q4 2006 Q1 2007 Q4 2006 Q1 2007 Q1 organic growth +7 per cent (RWA) Transitional rules (95 per cent floor)