Seb Facts And Figures January Juni 2008

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Seb Facts And Figures January Juni 2008

  1. 1. www.sebgroup.com Facts & Figures January – June 2008 1
  2. 2. Contents Page SEB Group 3 – 30 Asset quality 31 – 40 Bond portfolios 41 – 48 Divisions 49 – 55 Merchant Banking 56 – 66 Retail Banking 67 – 92 Wealth Management 93 – 104 Life 105 – 120 Macro update 121 – 128 2
  3. 3. SEB – the key to North-European markets SEB has… an attractive platform high customer satisfaction stable profit growth several leading positions ...a strong customer base 2,500 customers are large companies and financial institutions 400,000 SME customers 5 million private customers 3
  4. 4. SEB's organisation President & CEO Annika Falkengren Group Credits & Internal Audit Group Risk Control Johan Andersson Agneta Brevenhag Merchant Banking Retail Banking Wealth Life Management Magnus Carlsson Bo Magnusson Anders Mossberg Fredrik Boheman Business Support/Group Staff Jan Erik Back / Ingrid Engström / Hans Larsson 4
  5. 5. Share of operating profit Jan – Jun 2008 Wealth Merchant Germany Life Management Sweden Banking 10% 14% 13% Lithuania 12% 42% 48% Latvia 6% 35% 2% 5% Estonia 5% 8% Finland Denmark Retail Banking Norway Geography - Adjusted for Other Divisions - Adjusted for Other 5
  6. 6. Ratings of Skandinaviska Enskilda Banken AB Rating target set by SEB Board at AA Moody’s S&P Fitch DBRS Bank Senior Rating Short Term P-1 A-1 F-1 R-1 (middle) Long Term Aa2 A+ A+ AA (low) Outlook Positive Stable Stable Stable Last Action Outlook change Upgrade Outlook change Initial rating Date Jul-07 Oct-06 Jul-08 Dec-06 6
  7. 7. Key figures SEB Group Change Q2 Jan-Jun Q1 Q2 Jan-Jun SEKm 2008 2008 2008 2007 2007 Operating income 10,403 19,205 18% -3% -8% Operating expenses 6,445 12,472 7% 10% 7% Operating profit 3,507 5,917 46% -23% -32% Net profit 2,809 4,657 52% -20% -31% Return on Equity, % 15.2 12.4 9.6 20.7 19.8 Cost / income ratio 0.62 0.65 0.69 0.55 0.56 Credit loss level, % 0.17 0.15 0.13 0.12 0.11 Basel II Core capital ratio, % 8.64 8.64 8.85 8.45 8.45 Risk-weighted assets, SEKbn 871 871 817 783 783 7
  8. 8. Profit and loss account Q2 2008 vs. Q2 2007 SEKm Q2 Q2 Change Excluding 2008 2007 % portfolios Net interest income 4,421 3,939 12 Net fee and commissions 3,909 4,544 -14 Net financial income 1,161 1,345 -14 Net life insurance income 642 642 - Net other income 270 249 8 Total operating income 10,403 10,719 -3 -2% Staff costs -3,993 -3,774 6 Other expenses -2,098 -1,768 19 Depreciation of assets -354 -342 4 Total operating expenses -6,445 -5,884 10 Gain/loss tangible/intangible assets 1 -1 Net credit losses etc -452 -280 61 Operating profit 3,507 4,554 -23 -22% Net profit 2,809 3,522 -20 8
  9. 9. Profit and loss account Q2 2008 vs. Q1 2008 SEKm Q2 Q1 Change Excluding 2008 2008 % portfolios Net interest income 4,421 4,223 5 Net fee and commissions 3,909 3,801 3 Net financial income 1,161 -161 - Net life insurance income 642 713 -10 Net other income 270 226 19 Total operating income 10,403 8,802 18 9% Staff costs -3,993 -3,899 2 Other expenses -2,098 -1,756 19 Depreciation of assets -354 -372 -5 Total operating expenses -6,445 -6,027 7 Gain/loss tangible/intangible assets 1 3 -67 Net credit losses etc -452 -368 23 Operating profit 3,507 2,410 46 12% Net profit 2,809 1,848 52 8% 9
  10. 10. Profit and loss account Jan – Jun 2008 vs. Jan – Jun 2007 SEKm Jan – Jun Jan – Jun Change Excluding Jan – Dec 2008 2007 % portfolios 2007 Net interest income 8,644 7,706 12 15,998 Net fee and commissions 7,710 8,821 -13 17,051 Net financial income 1,000 2,656 -62 3,239 Net life insurance income 1,355 1,385 -2 2,933 Net other income 496 344 44 1,219 Total operating income 19,205 20,912 -8 -8 40,440 Staff costs -7,892 -7,570 4 -14,921 Other expenses -3,854 -3,446 12 -6,919 Depreciations/amortisations -726 -670 8 -1,354 Total operating expenses -12,472 -11,686 7 -23,194 Gain/loss tangible/intangible assets 4 -1 788 Net credit losses etc -820 -514 60 -1,016 Operating profit 5,917 8,711 -32 -31 17,018 Net Profit 4,657 6,784 -31 -30 13,642 10
  11. 11. SEB Group Income, Expenses and Operating profit, SEKm Excluding portfolios Income Expenses 12,000 10,000 8,000 * 6,000 4,000 2,000 0 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 Operating profit 6,000 ** 5,000 4,000 3,000 * 2,000 1,000 0 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 * One-off charges of SEK 890m in Q4 2005 ** Including sales of Baltic properties in Q4 2007 of SEK 785m 11
  12. 12. Net interest income analysis SEB Group Q2 2008 vs. Q2 2007 SEKm 242 72 49 132 -13 4,421 3,939 Q2 2007 Lending Lending Deposit Deposit Funding & Q2 2008 margin volume margin volume other 12
  13. 13. Net interest income analysis SEB Group Q2 2008 vs. Q1 2008 SEKm 128 15 13 77 -35 4,421 4,223 Q1 2008 Lending Lending Deposit Deposit Funding & Q2 2008 margin volume margin volume other 13
  14. 14. Net interest income analysis SEB Group Jan – Jun 2008 vs. Jan – Jun 2007 SEKm 258 218 127 483 8,644 -148 7,706 Jan – Jun Lending Lending Deposit Deposit Funding & Jan – Jun 2007 margin volume margin volume other 2008 14
  15. 15. Net interest and Net fee and commission income SEB Group, SEKm 5,000 4,000 3,000 2,000 1,000 0 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 Net interest income Net fee and commissions 15
  16. 16. Fee and commission income Gross quarterly development Q1 2004 – Q2 2008 SEB Group, SEKm Capital market driven Value driven – 2,500 performance Non-capital driven market driven 2,000 Securities transaction driven * 1,500 1,000 Deal driven 500 0 New issues & Secondary Custody & Payment, cards, Other advisory market & mutual funds structured derivatives lending, deposits, * Q2 2006 adjusted for gross commission on security lending, guarantees SEK 200m 16
  17. 17. Net financial, Life and Other insurance income Quarterly development Q1 2004 – Q2 2008 SEB Group, SEKm 1,600 1,400 1,200 1,000 800 600 400 200 0 Net financial income Net life insurance income Net other income -200 -400 17
  18. 18. Cost development per quarter Quarterly development Q1 2004 – Q2 2008* SEB Group, SEKm 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 ** 500 0 Staff costs Other expenses Restructuring costs * Include capitalisation of acquisition cost in Life from Q1 2005 – onwards ** One-off charges of SEK 890m in Q4 2005 18
  19. 19. Cost management Total expenses, Jan – Jun 2008 vs. Jan – Jun 2007 SEK 748m SEKm from the start of 2007 56 840 39 493 440 202 12,635 12,472 11,686 Organic* Depreciation Jan-June Inflation Variable Cost before Efficiency Redundancy Jan-June 2007 growth + salaries efficiency gains cost 2008 Acq gains * • Investments for operational excellence of SEK 370m included • Organic growth of SEK 362m • Acquisitions of KAM, Factorial of SEK 108m 19
  20. 20. Return on equity SEB Group, per cent Excluding portfolios 21.1 Return on Equity 20.8 19.3 15.8 * 15.5 14.7 13.2 15.2 9.6 2004 2005 2006 2007 Q1 2008 Q2 2008 * 17.0 excluding one-off charges of SEK 890m in Q4 2005 20
  21. 21. Cost/income ratio SEB Group C/I ratio Excluding portfolio losses 0.69 0.65 * 0.65 0.62 0.58 0.57 0.62 0.62 0.55 2004 2005 2006 2007 Q1 2008 Q2 2008 * 0.62 excluding one-off charges of SEK 890m in Q4 2005 21
  22. 22. Basic earnings per share SEB Group, SEK 21.83 Excluding portfolios 18.72 Equity per share 19.97 12.58 * 10.83 4.17 3.62 4.10 2.70 2004 2005 2006 2007 Q1 2008 Q2 2008 * 13.54 excluding one-off charges of SEK 890m in Q4 2005 22
  23. 23. 12 month rolling SEB Group*, SEKm 45,000 40,000 Income 35,000 30,000 25,000 Expenses 20,000 15,000 Operating 10,000 profit 5,000 0 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 * Excluding restructuring costs and one-off charges of SEK 890m in Q4 2005 23
  24. 24. Assets under management SEB Group, SEKbn Assets under management year-end 2007 1,370 Inflow 141 (10%) Outflow -121 (-9%) Acquisition/disposal net 17 Change in value -112 (-8%) Assets under management June 2008 1,295 * * Of which: Retail Banking 87 Wealth Management 1,217 Life 408 24
  25. 25. SEB Group net inflow AuM Jan – June 2008, SEKbn 0.4 0.6 5.6 20.0 -3.1 16.5 Sweden Other Germany Baltic Other & Group Nordic countries Elim & Poland 25
  26. 26. Balance sheet Jun 2008 Mar 2008 Jun 2007 Cash and balances with central banks 27,557 17,728 26,063 Loans to credit institutions 219,111 308,822 224,899 Loans to the public 1,132,374 1,098,597 1,047,546 Financial assets at fair value 597,723 694,111 682,881 Available-for-sale financial assets 247,245 196,848 134,115 Held-to-maturity investments 2,266 1,868 2,051 Investment in associates 1,361 1,314 1,122 Tangible and intangible assets 26,177 25,452 23,076 Other assets 50,335 53,823 45,955 Total assets 2,304,149 2,398,563 2,187,708 Deposits by credit institutions 397,601 455,707 413,283 Deposits and borrowings from the public 757,904 764,567 715,037 Liabilities to policyholders 211,938 213,046 218,958 Debt securities 506,564 499,622 454,651 Financial liabilities at fair value 229,285 256,961 198,920 Other liabilities 83,129 87,273 75,717 Provisions 1,265 1,338 1,747 Subordinated liabilities 41,664 42,990 39,094 Total equity 74,799 77,059 70,301 Total liabilities and equity 2,304,149 2,398,563 2,187,708 26
  27. 27. Relationship Deposits from and Lending to the public 2001 – 2008 Deposits to loans ratio 100% 90% 80% 70% 60% 50% 40% 30% 2001 2002 2003 2004 2005 2006 2007 Q2 2008 27
  28. 28. Funding structure SEB Group, June 2008 SEK 1,605bn Mortgage covered Schuldscheins and bonds, Sweden Reg Bonds CPs/CDs 9% 3% 9% Mortgage covered bonds, Germany 2% Deposits – General Public covered Public bonds, Germany 42% 8% Senior debt 4% Subordinated debt 3% Deposits – Interbank 20% * Over collateral within covered pools SEK 78bn 28
  29. 29. Net liquidity position across maturities 30 June, SEKbn 250,000 SEB is match- funded approx. 200,000 one year 150,000 100,000 50,000 0 1 week 2 weeks 4 weeks 2 months 3 months 4 months 5 months 6 months 9 months 12 months -50,000 29
  30. 30. Capital adequacy SEB Group Core capital ratio, % Total capital ratio, % Basel II Basel I 11.5 11.0 10.8 10.8 10.5 9.6% 10.3 10.2 Basel I 8.6 8.6 8.2 8.0 7.9 7.8 7.5 7.7% Dec Dec Dec Dec Dec Dec Jun 2002 2003 2004 2005 2006 2007 2008 SEKbn Capital base 52.7 54.7 58.7 76.2 85.8 93.0 93.8 Basel I Risk-w. Assets 503 535 570 704 741 842 871 972 30
  31. 31. Asset quality 31
  32. 32. Credit exposure – on and off balance SEKbn Jun 2008 (Dec 2007) Nordic German Baltic Total Corporates 447 (416) 84 (72) 85 (85) 616 (572) Property Management 111 (100) 92 (87) 25 (24) 229 (210) Households 314 (292) 91 (87) 58 (55) 463 (434) Public Administration 19 (18) 71 (66) 5 (3) 95 (88) Total non-banks 892 (826) 338 (312) 173 (166) 1,403 (1,304) Banks 175 (187) 50 (58) 3 (3) 227 (248) Total 1,067 (1,013) 388 (369) 176 (169) 1,631 (1,552) 32
  33. 33. Credit exposure – on and off balance SEKbn Dec -05 Dec -06 Dec -07 Mar -08 Jun -08 Corporates 494 485 572 581 616 Property Management 192 191 210 213 229 Households 319 374 434 446 463 Public Administration 125 97 88 96 95 Total non-banks 1,130 1,146 1,304 1,336 1,403 Banks 198 169 248 269 227 Total 1,328 1,315 1,552 1,605 1,631 33
  34. 34. Credit Exposure – Baltic Banks on and off balance SEKbn SEB Estonia SEB Latvia SEB Lithuania Total 83 76 Banks 24 56 22 Public 50 51 Administration 42 41 41 13 12 11 Households 34 20 19 7 14 14 14 10 8 8 Property 5 5 43 8 41 4 35 Management 22 21 21 21 18 17 Corporate Dec Dec Jun '08 Dec Dec Jun '08 Dec Dec Jun '08 '06 '07 '06 '07 '06 '07 2006 2007 2008 1H 2006 2007 2008 1H 2006 2007 2008 1H +40% +18% +3% +47% +30% +8% +38% +17% +2% Growth rates in local currency 34
  35. 35. Credit exposure – Households SEKbn Mortgage Other 463 434 374 110 319 104 105 79 353 330 269 240 Dec 2005 Dec 2006 Dec 2007 Jun 2008 35
  36. 36. Credit exposure – Property management SEKbn Commercial Multi-family 229 210 192 191 82 75 81 91 147 135 110 101 Dec 2005 Dec 2006 Dec 2007 Jun 2008 36
  37. 37. Impaired loans and reserves SEKm Dec 2005 Dec 2006 Dec 2007 Jun 2008 Impaired loans Non-performing, gross (60 days) 7,957 7,123 7,619 8,247 Performing, gross 1,144 1,403 772 846 Impaired loans, gross 9,101 8,526 8,391 9,093 Specific reserves 4,787 4,234 3,787 3,810 Collective reserves 2,283 2,170 2,602 2,696 Off-balance sheet reserves 268 215 209 170 Total reserves 7,338 6,619 6,598 6,676 Reserve ratio 77.7% 75.1% 76.1% 71.5% 37
  38. 38. Level of Net Credit Losses, % Estonia 1.68 Latvia 0.48 Lithuania 0.17 0.80 Baltics 0.73 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2003 2004 2005 2006 2007 Q1 Q2 2008* 2008* Germany Baltics Nordics SEB Group * Annualised 38
  39. 39. Credit losses and build up of reserves SEKm Sum Average/ Jan – Jun Jan – Jun Change 8 quarters quarter 2007 2008 Net credit losses, quarterly 2006 – 2008 Provisions Net collective provisions -368 -46 - 334 -101 233 Specific provisions -1,832 -229 - 322 -599 -278 Reversals of specific provisions no longer required 835 104 162 123 -39 Net provisions for contingent liabilities 22 3 24 3 -21 Net provisions (build-up of reserve) -1,344 -168 - 470 -574 -104 Write-offs Total write-offs -2,835 -354 - 483 -699 -179 Reversal of specific provisions utilized for write-offs 1,509 189 255 418 126 Write-offs not previously provided for -1,326 -166 - 228 -281 -53 Recovered from previous write-offs 479 60 178 43 -135 Net write-offs -847 -106 -50 -238 -188 Total credit losses net -2,191 -274 -520 -812 -292 39
  40. 40. Credit losses and build up of reserves quarterly development SEKm Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net credit losses, quarterly 2006 2006 2007 2007 2007 2007 2008 2008 Provisions Net collective provisions -89 212 -114 -220 -71 15 -112 11 Specific provisions --124 -455 -245 -77 -100 -231 -190 -409 Reversals of specific provisions no longer required 133 173 75 87 80 163 44 79 Net provisions for contingent liabilities 1 10 31 -7 8 -24 1 2 Net provisions (build-up of reserve) -80 -60 -253 -217 -83 -77 -257 -317 Write-offs Total write-offs -334 -444 -243 -240 -350 -562 -332 -367 Reversal of specific provisions utilized for write-offs 196 221 124 131 214 242 201 217 Write-offs not previously provided for -138 -223 -119 -109 -136 -320 -131 -150 Recovered from previous write-offs 81 62 135 43 30 85 24 19 Net write-offs -57 -161 16 -66 -106 -235 -107 -131 Total credit losses net -137 -221 -237 -283 -189 -312 -364 -448 40
  41. 41. Bond portfolios 41
  42. 42. SEB Bond Portfolio* 30 June, 2008, SEKbn ABS 18% Cover pool 24% Merchant Banking 193 Group Treasury 135 Other divisions 10 Corp, Financials Gov't etc 27% 10% Total 338 Covered bonds 21% *Net of short and fully matched positions; excluding holdings in the insurance business 42
  43. 43. Merchant Banking Bond Portfolios 30 June, 2008 Trading Investments Capital Markets and other Credit & Portfolio Management 14% 49% 42% 24% 61% 1% 9% Structured credits Financial institutions Corporate bonds Financial institutions Covered bonds etc Gov't Covered bonds Volume SEK 126bn Volume SEK 67bn 43
  44. 44. Bond investment portfolio – status 30 June, 2008 (31 December, 2007) Structured credits Financial institutions Volume: SEK 61bn (71) Volume: SEK 53bn (55) AAA-rating: 97.2% (99.3) MTM losses on all financial holdings, not only investment banks MTM losses highly dependent on seniority, underlying assets and vintage Covered bonds etc. SEK 12bn (5) 2007 Q1 08 Q2 08 Acc MTM (SEKm) P/L -1,769 -872 -66 -2,707 Equity -698 -1,630 -56 -2,384 -2,467 -2,502 -122 -5,091 44
  45. 45. Bond investment portfolio – financial effects 30 June, 2008, SEKm Structured credits Financial institutions 2007 Q1 08 Q2 08 Acc 2007 Q1 08 Q2 08 Acc P/L -563 -78 -26 -667 P/L -1,056 -794 -41 -1,891 Equity -72 -438 -52 -561 Equity -626 -990 -15 -1,631 -635 -515 -78 -1,228 -1,682 -1,784 -66 -3,522 + Covered bonds etc accumulated -341 2007 Q1 08 Q2 08 Acc MTM (SEKm) P/L -1,769 -872 -66 -2,707 Equity -698 -1,630 -56 -2,384 -2,467 -2,502 -122 -5,091 45
  46. 46. Bond investment portfolio – strategy Limit P/L volatility by increasing AFS portfolios and reducing HFT portfolios Reduce subprime holdings, primarily in the HFT portfolio Reduce the credit spread risk through partial hedging (ITRAXX) Held for trading Available for sale SEK bn (MTM over income) (MTM over equity) Q1 08 Q2 08 Q4 07 51 49 43 41 30 29 26 29 26 20 10 11 11 5 4 3 1 0 Structured Financial Covered Structured Financial Covered Structured Financial Covered credits institutions bonds etc. credits institutions bonds etc. credits institutions bonds etc. 46
  47. 47. Distribution of Investment portfolio 30 June, 2008 Structured credits Financial institutions SEK 61bn SEK 53bn Direct and indirect RMBS exposure DE 3% 36% IT 6% SE 3% FI 1% NL 7% Other 9% Sub prime 3% FR 14% ABS 17% CMO US 25% 13% ES 19% CDO 7% CMBS UK 13% 7% CLO 17% 47
  48. 48. Main characteristics of structured credits portfolio (ABS portfolio) 30 June, 2008 (31 December, 2007) A high quality investment portfolio initiated 1998 with fixed income securities eligible as central bank collateral Total volume SEK 61bn (71) - # of positions 695 (740) 97.2% of the portfolio is rated Aaa/AAA – 23 rating actions in our tranches since summer 2007 (H1 08: #20) by Moody’s and Standard & Poor’s – Well diversified across products, asset classes and geographies – Cash-flow based – only one synthetic transaction ($10.5m) Mark-to-market prices applied to all 695 positions – No level 3 assets Current average remaining maturity ~4 years. Current annual amortisation rate is SEK ~10bn 48
  49. 49. Please note: A restatement of the divisional financial reporting has been carried out in conjunction with the Q1 2008 report as previously announced. Please consult www.sebgroup.com for more information. Divisions 49
  50. 50. Operating profit per division Jan – Jun 2008 vs. Jan – Jun 2007 Excl. SEKm portfolio ROE Change losses vs. Jan-Jun 2007 Jan-Jun 2008 Merchant -31% (-8%) 15.6% (20.7%) Banking -17% 14.7% Retail Banking Wealth -32% 20.2% Jan-Jun 2008 Management Jan-Jun 2007 -18% 15.9% Life 0 1,000 2,000 3,000 4,000 50
  51. 51. Volumes Public lending SEKbn Q1 Q2 Q3 Q4 Q1 Q2 2007 2007 2007 2007 2008 2008 MB 465 492 459 483 526 531 Retail Banking 468 483 493 513 518 545 RB Sweden 256 264 271 279 286 303 RB Estonia 37 39 40 42 42 43 RB Latvia 31 35 34 36 35 36 RB Lithuania 46 50 54 59 60 64 RB Germany 85 81 80 81 81 82 RB Cards 13 14 14 14 14 17 Wealth Management 30 31 33 32 31 29 Life - - - - - - Other/Elim 54 42 36 39 24 27 SEB Group 1,017 1,048 1,021 1,067 1,099 1,132 51
  52. 52. Volumes Public deposit SEKbn Q1 Q2 Q3 Q4 Q1 Q2 2007 2007 2007 2007 2008 2008 MB 371 384 364 389 409 392 Retail Banking 231 249 249 262 257 264 RB Sweden 130 139 139 145 145 149 RB Estonia 18 20 20 22 20 22 RB Latvia 16 17 17 18 17 18 RB Lithuania 25 26 26 30 28 28 RB Germany 43 46 46 48 47 47 RB Cards - - - - - - Wealth Management 47 54 51 53 54 56 Life - - - - - - Other/Elim 20 28 43 46 45 46 SEB Group 670 715 707 750 765 758 52
  53. 53. FTEs, end of quarter Q1 Q2 Q3 Q4 Q1 Q2 2007 2007 2007 2007 2008 2008 MB 2,540 2,568 2,550 2,672 2,742 2,760 Retail Banking 8,655 8,912 8,807 8,925 8,995 9,325 RB Sweden 2,742 2,812 2,660 2,736 2,733 2,875 RB Estonia 1,011 1,095 1,061 1,061 1,048 1,084 RB Latvia 1,052 1,089 1,117 1,118 1,108 1,122 RB Lithuania 1,333 1,387 1,428 1,492 1,520 1,579 RB Germany 1,668 1,699 1,728 1,733 1,802 1,830 RB Cards 849 830 813 785 784 835 Wealth Management 1,099 1,050 1,064 1,073 1,160 1,143 Life 1,194 1,203 1,199 1,218 1,222 1,235 Other/Elim 5,842 5,886 5,820 5,906 7,091 7,182 SEB Group 19,330 19,619 19,440 19,794 21,210 21,645 * * Whereof 1,039 encompasses the consolidated acquisitions of Factorial bank in Ukraine and Key Asset Management. 53
  54. 54. Summary per division Jan – Jun 2008 Merchant Retail Wealth Banking Banking Management Life Other Group Operating profit, SEKm 2,934 2,432 926 676 -1051 5,917 Business equity, SEKbn 27.0 25.3 ** 6.6 7.5 75.2 * Return on equity, % 15.6 14.7 20.2 15.9 12.4 Cost / income ratio 0.57 0.62 0.59 0.63 0.65 RWA, SEKbn, Basel II 423 372 37 39 871 RWA, SEKbn, Basel I 488 414 23 47 972 Tax Rate 28% 23% 28% 12% * Average shareholders' equity ** Where of Sweden 7.4bn Estonia 3.3bn, Latvia 3.1bn, Lithuania 4.4bn, Germany 4.5bn and Cards 2.6bn. 54
  55. 55. RoE and Cost/Income ratio per division Return on Equity per division, per cent 50 40 30 20 10 0 Merchant Retail Banking Wealth Life* Group Banking Management Jan- Jun 2007 Jan- Jun 2008 Cost/income ratio per division 1.00 0.80 0.60 0.40 0.20 0.00 Merchant Retail Banking Wealth Life Group Banking Management Jan- Jun 2007 Jan- Jun 2008 * Based on operating profit 55
  56. 56. Merchant Banking Highlights Magnus Carlsson Head of Strong customer revenues despite Merchant Banking financial turmoil Second quarter income in excess of Jan – Jun 2008 Δ 2007 SEKm SEK 4bn Total income 6,945 -18% Stable development of underlying costs Interest, net 3,063 13% Commission, net 2,711 -16% Opportunities from demand for Financial, net 1,055 -55% credit and improved risk pricing Total expenses -3,958 -2% Top rankings in equities, M&A advisory, cash management and Credit losses, net -56 -75% custody Operating profit 2,934 -31% RoE, % 15.6 23.0 C/I 0.57 0.48 56
  57. 57. Merchant Banking SEKm Excluding portfolios Income Expenses 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Operating profit Excluding portfolios 2,500 2,000 1,500 1,000 500 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 57
  58. 58. Share of income and result by area Jan – Jun 2008, per cent of total Income Operating profit Global transaction Trading and Global transaction Trading and services Capital Markets services Capital Markets 21% 19% 48% 29% 52% 31% Corporate Corporate Banking Banking 58
  59. 59. Trading and Capital Markets SEKm Excluding portfolios Income Expenses 2,500 2,000 1,500 1,000 500 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Operating profit Excluding portfolios 1,200 900 600 300 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 59
  60. 60. Developing products to meet customer needs Trading and Capital Markets income by main product cluster, excl. investment portfolios ● Focus on customer flows ensures continued strong 5% 11% 8% 7% revenues 11% 3% 8% 15% 4% 22% ● Increased profits in FX 6% 46% ● Strong revenues and 49% 64% 49% 46% increased market share in 44% Equities ● Lower profits in fixed 38% 36% 41% 28% 33% 26% income related units due to ongoing uncertainty in credit markets Q1 - Q2 Q3 Q4 Q1 - Q2 07 08 Equities FX Capital Markets Structured Derivatives and other TCM 60
  61. 61. Corporate banking SEKm Income Expenses 1,600 1,400 1,200 1,000 800 600 400 200 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Operating profit 1,000 800 600 400 200 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 2007 and 2008 including Baltics 61
  62. 62. Global Transaction Services SEKm Income Expenses 900 800 700 600 500 400 300 200 100 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Operating profit 400 300 200 100 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 2007 and 2008 including Baltics 62
  63. 63. Custody volume development Assets under custody, SEKbn No of transactions/day 7,000 160,000 140,000 6,000 120,000 5,000 100,000 4,000 80,000 3,000 60,000 2,000 40,000 1,000 20,000 0 0 2004 2005 2006 2007 2008 63
  64. 64. Merchant Banking Investment banking rankings Market Shares Nordic Stock Exchanges * Nordic M&A** H1 2008 H1 2008 (EURm) SEB 8,9% 9 Deals Credit Suisse 10,008 Morgan 5.6% 20 Deals SEB 8 462 Stanley Carnegie 5.4% 7 Deals UBS 6,663 Morgan Glitnir 5.2% 4 Deals 6,418 Stanley Lenner Corp. SHB 4.7% 5 Deals 6 197 Fin. *Source: The Nordic Stock exchanges **Rank based on completed deals. All Nordic involvement. Source: Thomson Financial 64
  65. 65. Merchant Banking Syndicated loans, 12-months rolling Swedish syndicated loans league Nordic syndicated loans league (and bookrunner %) (and bookrunner %) Jul 2007 – Jun 2008 Jul 2007 – Jun 2008 EUR EUR 0 4 8 12 16 0 2 4 bn bn 17.9% Nordea 17.6% SEB 6,3% DnB NOR 12.4% SHB 6,0% Citi 5.6% Calyon 4,7% SEB 3.5% RBS 3.8% 3.0% RBS ABN AMRO Source: Dealogic Analytics 65
  66. 66. Merchant Banking– Recent rankings Best for Cash Management in Nordic & Baltic region July 2008 Euromoney Best Equities House in Nordic & Baltic region Best M&A House in the Nordic & Baltic region Risk Magazine July 2008 Best derivatives dealer in Sweden Thomson Rueters June 2008 Best research house in the Nordic countries Extel Global Finance July 2008 Best sub-custodian in the Nordic region April 2008 World’s Best Developed Market Banks 2008 (No. 1 in Sweden); World’s Best Emerging Market Banks 2008 (no. 1 in Latvia and Lithuania) Söderberg & February 2008 Best Arranger Structured Products, Sweden Partners Euroweek February 2008 Best Arranger Nordic Loans, Syndicated Loans and Leveraged Finance Awards 2007 Prospera January 2008 No.1 stockbroker in the Nordic region Global Finance Best Bank for Cash, Liquidity and Risk Management, Nordic Region January 2008 Best Trade Finance bank, Nordic Region, Sweden and Lithuania Best Foreign Exchange Bank and Provider in the Nordic countries and Lithuania TMI Best bank for Cash Management, Nordic Region January 2008 Best Bank for supply Chain Finance, Nordic Region FX Week January 2008 Best bank for international currency forecasts in 2007 Global Custodian November 2007 Top rated in Central and Eastern Europe (2007 Emerging Markets Agent Bank Review) October 2007 Top rated in all four Nordic markets (2007 Major Market Agent Bank Review ) Euromoney No. 1 for Overall Customer Satisfaction in Europe (No.2 globally) October 2007 No. 1 Globally in level of commitment to Cash Management Business No. 9 Globally in market share for International Cash Management Euromoney Best at commercial real estate banking, Nordic and Baltic region September 2007 Best at commercial real estate investment banking, Nordic and Baltic region Prospera September 2007 No.1 for corporate finance in the Nordic region 66
  67. 67. Retail Banking Highlights Bo Magnusson Head of Continued strong income, in particular Retail Banking net interest income (NII) – NII +9% vs. 2007 offsets lower security related fees - income +3% Jan – Jun 2008 Δ 2007 SEKm – Q2 strongest quarter in terms of NII, 2nd strongest in terms of total income Total income 8,310 3% Interest, net 5,144 9% Baltic cost growth affected by sale of real estate, inflation and 2007 sales Commission, net 2,861 -7% expansion; higher pension cost in Sweden Total expenses -5,127 6% Credit losses, net -751 165% Profit before credit losses stable Operating profit 2,432 -17% Decrease in operating profit due to higher credit losses, mainly driven by RoE, % 14.7 18.3 increased provisions in Estonia C/I 0.62 0.60 67
  68. 68. Retail Banking SEKm Income Expenses 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Operating profit 2,000 1,500 1,000 500 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 68
  69. 69. Share of income and result by area Jan – Jun 2008, per cent of total Income Operating profit Cards Cards Sweden Sweden 16% 15% Lithuania 38% 12% Lithuania 47% Latvia 23% 8% 8% 9% 2% 19% 3% Estonia Latvia Germany Estonia Germany 69
  70. 70. Business volume development by area SEKbn Q2 2008 change vs. Q2 2007 (local currency) Other lending Deposits Mortgages 60 149 7% Sweden 235 12% 14% 22 46 Germany 10% 61 0% 5% 22 29 Estonia 4% 15 12% 7% 18 26 1% Latvia 10 7% 2% 28 51 5% Lithuania 14 49% 21% Note: Figures for Estonia, Latvia and Lithuania include SEB:s large corporate business volumes 70
  71. 71. Deposit breakdown Transaction account private Percent of total deposits Transaction account corporate & public 13% 25% 41%21% Savings account private Savings account corporate & public Retail Total Sweden Germany 2% 9% 9% 17% 26% 38% 56% 22% 43% 52% 22% 4% Estonia Latvia Lithuania 6% 17% 20% 20% 22% 26% 33% 20% 27% 34% 40% 35% 71
  72. 72. Development of lending market SEB Swedbank shares – Baltics DnB Nord Parex Banka Per cent, Dec 2004 – May 2008 Sampo Nordea Estonia* Latvia Lithuania 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% * Swedbank & Sampo as per Q1 2008 72
  73. 73. Retail Sweden Δ 2007 SEKm Jan – Jun 2008 Highlights Total income 3,112 2% Solid net interest income growth, Q2 strongest quarter to date (+5% vs. Q1) Interest, net 2,220 10% – Mortgages: volume growth, Commission, net 757 -14% stable margins – Deposits: volume growth, Total expenses -1,950 5% increased margins Credit losses, net -33 -26% Decreased commission income due to Operating profit 1,129 -2% brokerage and structured products RoE, % 22.0 23.0 Insurance sales +30% vs. first half 2007 C/I 0.63 0.61 Strong SME growth: 5,200 new SME customers (3,500 first half 2007) Total lending 302,800 +15% Total deposits 149,100 +7% Cost affected by higher pension cost 73
  74. 74. Business volume development Retail Sweden, SEKbn Corporate Private Other lending Deposits Mortgages 250 250 250 200 200 200 150 150 150 100 100 100 50 50 50 0 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 05 06 07 08 74
  75. 75. Market share development Sweden, per cent Corporate Private Other lending Mortgages* Deposits 20 30 20 25 15 15 20 10 15 10 10 5 5 5 0 0 0 Q2 Q4 Q2 Q4 Q2 Q4 May Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 May 05 06 07 08 05 06 07 08 05 06 07 08 Note: Other lending and deposits=SEB Parent Bank Sweden, i.e. not only Retail Sweden * New measurement method from Q4 2007. Lowers the volume market share with approximately 0.2 percentage points 75
  76. 76. Mortgages private market Retail Sweden Market share, per cent Sales Volume 20 18 16 14 12 10 8 6 4 2 0 Q4* Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2 05 06 07 08 * New measurement method from Q4 2007. Lowers the volume market share with approximately 0.2 percentage points 76
  77. 77. Mortgages private market Total Sweden Volumes and margins Outstanding volume, SEKbn Average margin 250 1.25% 200 1.00% 150 0.75% 100 0.50% 50 0.25% 0 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008 77
  78. 78. Mortgages private market Sweden Customers’ choice of fixed / floating interest rates 100% 80% 60% Fixed Floating 40% 20% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008 78
  79. 79. Retail Germany Δ 2007 Highlights SEKm Jan – Jun 2008 Total income 1,613 -4% Reduced profitability due to lower customer activity within securities- Interest, net 949 1% related-areas Commission, net 647 -11% Higher sales of insurance (+8%), Total expenses -1,489 -1% mortgages (+40%) and consumer lending (+11%) vs. 2007 Credit losses, net -50 6% Operating profit 74 -46% Successful campaign for custody account attracting 8,800 new accounts RoE, % 2.6 5.1 Stable cost level C/I 0.92 0.89 Total lending 82,300 +1% Total deposits 47,300 +3% 79
  80. 80. Business volume development Retail Germany, EURbn Other lending Mortgages* Deposits 8 8 8 7 7 7 6 6 6 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 0 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 05 06 07 08 Figures above present Mortgage, lending and deposits from private individuals and SME * Effected by amortizations on large historical sales volumes, partly sold through external sales organizations 80
  81. 81. Sales development Retail Germany Customer Insurance EURm New mortgage* EURm appointments* 140 50,000 450 45,000 400 120 40,000 350 100 35,000 300 30,000 80 250 25,000 200 60 20,000 150 15,000 40 100 10,000 20 5,000 50 0 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 05 06 07 08 * by Callcenter * incl prolongation 81
  82. 82. Retail Estonia Δ 2007 SEKm Jan – Jun 2008 Highlights Lower business activity than Total income 692 10% precedent quarters Interest, net 435 3% Higher loan losses due to credit Commission, net 176 2% provisions Strong focus on credit quality, Total expenses -284 26% including increase of loans overdue Credit losses, net -368 - Increased savings focus - new mutual Operating profit 40 -89% funds launched Cost increase affected by real estate RoE, % 2.0 24.0 sale Q4 2007, investments in sales C/I 0.41 0.36 capacity during 2007, and high salary inflation Total lending 43,100 +11% Non recurring income from sale of Total deposits 21,600 +6% PKK – card processing company 82
  83. 83. Business volume development Retail Estonia, EURbn Corporate Private Other lending Mortgages Deposits 3 3 3 2 2 2 1 1 1 0 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 05 06 07 08 Mortgages defined as home loans to private individuals Note: Figures include SEB:s large corporate business volumes 83
  84. 84. Market share development Retail Estonia May, per cent Corporate Private Mortgages Deposits 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 Mortgage market share for home loans to private individuals 84
  85. 85. Retail Latvia Δ 2007 SEKm Jan – Jun 2008 Highlights Total income 626 -1% Lower business activity than precedent quarters Interest, net 514 10% Commission, net 92 -44% Strong focus on credit quality, including increase of loans overdue Total expenses -314 23% Increased savings focus - new mutual funds launched Credit losses, net -85 118% Operating profit 228 -32% Cost increase affected by real estate sale Q4 2007, investments in sales capacity during 2007, and high salary RoE, % 12.5 17.8 inflation C/I 0.50 0.41 SEB awarded Best Bank in Latvia by Global Finance Total lending 36,100 +4% Total deposits 17,600 +2% 85
  86. 86. Business volume development Corporate Retail Latvia, EURbn Private Other lending Mortgages Deposits 3 3 3 2 2 2 1 1 1 0 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 05 06 07 08 Mortgages defined as home loans to private individuals Note: Figures include SEB:s large corporate business volumes 86
  87. 87. Market share development Retail Latvia May, per cent Corporate Private Mortgages Deposits 20 20 15 15 10 10 5 5 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 Mortgage market share for home loans to private individuals 87
  88. 88. Retail Lithuania Δ 2007 Highlights SEKm Jan – Jun 2008 Total income 1,038 11% Controlled credit growth continued Interest, net 793 14% Continued expansion of distribution Commission, net 201 3% capacity Cost increase affected by real estate Total expenses -418 20% sale Q4 2007, continued investments Credit losses, net -51 -14% in sales capacity, and high salary inflation Operating profit 569 7% SEB awarded Best Bank in Lithuania RoE, % 22.0 20.0 by Global Finance; 10th consecutive year C/I 0.40 0.37 Total lending 64,000 +27% Total deposits 28,100 +8% 88
  89. 89. Business volume development Retail Lithuania, EURbn Corporate Private Mortgages Other lending Deposits 6 6 6 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 0 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 05 06 07 08 Mortgages defined as home loans to private individuals Note: Figures include SEB:s large corporate business volumes 89
  90. 90. Market share development Retail Lithuania May, per cent Corporate Private Mortgages Deposits 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2 Q4 Q2 05 06 07 08 05 06 07 08 Mortgage market share for home loans to private individuals 90
  91. 91. Cards Highlights Δ 2007 SEKm Jan – Jun 2008 Total income 1,230 11% Continued underlying business growth, turnover +7% Interest, net 232 40% Several new large customers gained Commission, net 977 6% across countries, e.g. H&M SEB's consumer finance business in Total expenses -674 2% Norway transferred to Cards as of Q2 Credit losses, net -163 147% Continued strong cost discipline, cost Operating profit 393 1% for comparable units unchanged Increased losses due to consumer RoE, % 21.8 26.6 finance transfer and higher fraud C/I 0.55 0.59 Eurocard launched in Finland Several new customer offerings launched, e.g. Eurocard Platinum 91
  92. 92. Cards SEKbn Turnover cards 70 60 50 40 30 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2003 2004 2005 2006 2007 2008 Millions Number of cards 3.4 3.2 3.0 2.8 2.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008 92
  93. 93. Wealth Management Fredrik Boheman Highlights Head of Stable base revenues given the market Wealth Management Strong net sales in Institutional Clients in May (approx SEK 8bn) and Private Banking continued showing good sales Jan – Jun 2008 Δ 2007 SEKm Assets under management SEK 1,217bn, -5% since year end Total income 2,282 -11% SEB kept capturing volumes, incl. shift Interest, net 441 15% to alternative products, on a continued Commission, net 1,778 -16% weak net sales market for Swedish mutual funds, SEK +3,8bn vs. total Total expenses -1,354 14% market of SEK -28bn. Cost increased due to consolidation of Operating profit 926 -32% Key Asset Management and sales initiatives RoE, % 20.2 35.5 SEB's consumer finance business in Norway transferred to Cards as of Q2 C/I 0.59 0.47 93
  94. 94. Share of income and result by area Jan – Jun 2008; percent of total Income Operating result Institutional Private Institutional Private Clients Banking Clients Banking 24% 33% 67% 76% 94
  95. 95. Wealth Management SEKm Income Costs 1,400 1,200 1,000 800 600 400 200 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Operating profit 800 600 400 200 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 95
  96. 96. Institutional Clients SEKm Income Expenses 1,000 900 800 700 600 500 400 300 200 100 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Operating profit 800 600 400 200 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 96

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