SEB's third-quarter 2013 results presentation

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SEB's third-quarter results presentation from October 24, 2013.

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SEB's third-quarter 2013 results presentation

  1. 1. SEB January–September 2013 Results presentation Annika Falkengren President & CEO
  2. 2. Highlights Q3 2013 1 2 3 Improved business sentiment Increased operating leverage Renewed regulatory uncertainty 2
  3. 3. Business conditions Deloitte/SEB Swedish CFO Survey 70 65 60 55 50 45 40 35 30 2006 2007 2008 2009 2010 2011 2012 2013 3
  4. 4. Financial summary Profit and loss (SEK m) Q3-13 Total Operating income Total Operating expenses Profit before credit losses Net credit losses etc. Operating profit Q3-12 % 10,324 -5,453 4,871 -253 4,618 9,681 -5,639 4,042 -185 3,857 7 -3 21 20 Jan-Sep 2013 Jan-Sep 2012 30,523 -16,626 13,897 -779 13,118 29,186 -17,128 12,058 -662 11,396 % 5 -3 15 15 Operating income by type, Q3 2013 vs. Q3 2012 (SEK bn) Q3-13 Q3-12 Net interest income Q3-13 Q3-12 Net fee and commissions Q3-13 Q3-12 Q3-13 Q3-12 Net financial Net life insurance income income 4
  5. 5. Net interest income development Net interest income 2012 YTD vs. 2013 YTD (SEK bn) +5% 13.2 13.9 Net interest income type Q3 2011 – Q3 2013 (SEK bn) Lending Q3-11 3.2 Q3-12 3.7 Q3-13 Deposits 0.8 Q3-11 0.6 Q3-12 Q3-13 0.5 0.5 Q3-12 Q3-13 Funding & other Jan-Sep '12 Jan-Sep '13 Q3-11 5
  6. 6. Net fee and commission income development Net fee and commissions 2012 YTD vs. 2013 YTD (SEK bn) +9% Gross fee and commissions by income type Q3 2011 – Q3 2013 (SEK bn) Advisory, secondary markets and derivatives 0.6 Q3-12 Q3-13 1.6 Q3-11 0.6 1.6 Q3 Q3-13 Custody and mutual funds 9.9 10.8 Q3-11 Payments, cards, lending, deposits & guarantees 2.1 Jan-Sep '12 Jan-Sep '13 Q3-11 Q3-12 2.6 Q3-13 6
  7. 7. Net financial income development Net financial income development Q3 2011 – Q3 2013 (SEK bn) GIIPS NFI Treasury & Other 1.2 1.1 -0.2 NFI Divisions Q3-11 Q4 1.2 0.0 Q1 1.3 1.0 1.1 1.1 1.2 Q3-12 Q4 Q1 Q2 Q3-13 Q4-12 Q1-13 Q2-13 Q3-13 0.9 0.0 Q2 Average daily turnover of Swedish sovereign bonds 4% 3% 2% 1% 0% Q3-11 Q4-11 Q1-12 Q2-12 Q3-13 7
  8. 8. Increased operating leverage Average quarterly expenses (SEK bn) Average quarterly income (SEK bn) 9.2 9.4 9.8 10.2 5.8 Avg 2010 Avg 2011 Avg 2012 Jan-Sep 2013 5.9 5.7 5.5 Avg 2010 Avg 2011 Avg 2012 Jan-Sep 2013 Operating leverage Average quarterly pre-provision profit (SEK bn) 3.4 3.5 Avg 2010 Avg 2011 4.1 Avg 2012 4.7 Jan-Sep 2013 Notes: Excluding one-offs (restructuring in 2010, and bond buy-back and IT impairment in 2012) Estimated IAS 19 costs in 2010 8
  9. 9. Divisional performance Operating profit Jan-Sep 2013 vs. Jan-Sep 2012 (SEK bn) Jan-Sep 2012 Jan-Sep 2013 5.9 4.1 1.2 Merchant Banking RoBE 12.3% Retail Banking 21.0% Wealth Management 14.5% 1.3 1.0 Life Baltic 18.9% 13.1% 9
  10. 10. Large Corporate financing Credit portfolio FX-adjusted, SEK bn Sweden SEK league table – Corporate bonds 12 month rolling (SEK bn) Nordics Germany Other 616 597 SEB 25.1 23.8 Outside Sweden 20.7 +23bn 18.5 11.2 Dec-2012 Sep-2013 Headline transactions Q3 2013 SEK 500m Sole bookrunner EUR 150m Joint Bookrunner EUR 750m Joint bookrunner EUR 685m Joint Bookrunner 10
  11. 11. New customer interfaces Internet bank 2.0 Mobile bank – Private & Corporate Internet bank visits (millions) Mobile bank visits – Private (millions) 6 5 4 3 2 1 0 6 5 4 3 2 1 0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 11
  12. 12. Renewed regulatory uncertainty 1. Regulators 2. Proposed regulation 3. Banks & financial system Others gSIFI Treasury RRP living wills RRP living wills Risk Retail ringfencing Operations Swaps spinoff Swaps spinoff Technology Volcker rule OTC execution OTC execution OTC clearing Real time reporting Real time reporting Position limits Short selling Short selling Business conduct Skin in the game Skin in the game Rating agencies RSP sales RSP sales Compensation G20 Front office gSIFI Rating agencies FSA Collins Amend. Business conduct Fed Collins Amend. Position liimts SEC Banks OTC clearing CFTC Basel 2.5 / III Volcker rule BCBS Basel 2.5 / III Retail ringfencing European Commission Compensation Exchanges Clearinghouses Data providers Buy side Corporates Retail Broader economy Source: Oliver Wyman 12
  13. 13. Key financial figures Total operations Q3 2013 Q3 2012 Jan-Sep 2013 Jan-Sep 2012 Return on Equity, % 13.4 10.8 12.8 10.8 Common Equity Tier 1 ratio (B3), % 15.0 13.3 15.0 13.3 Cost /income ratio 0.53 0.58 0.54 0.59 Earnings per share, SEK 1.71 1.29 4.82 3.83 Credit loss level, % 0.08 0.11 0.08 0.08 13
  14. 14. Going forward Customer satisfaction Continued execution A long-term financial partner 14

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