SEB January-June 2012   Annika FalkengrenResults presentation    President & CEO                                          ...
Highlights Q2 2012 Franchise and income growth Continued cost efficiency Balance sheet strengthened further               ...
Profit and loss trendProfit and loss development Q2 2010 – Q2 2012 (SEK bn)                                  9.9          ...
SEB has actively reduced its earnings volatility Income volatility, Q2 2008 – Q1 2012 (per cent)     15     10       5    ...
Income statementProfit and loss (SEK bn)                                                     Q2-12              Q1-12   % ...
Net interest income developmentNet interest income Q2 2010 – Q2 2012 (SEK bn) 5 4 3 2 1 0        Q2-10             Q3    Q...
Net fee and commission income developmentNet fee and commissions Q2 2010 – Q2 2012 (SEK bn) 5 4 3 2 1 0        Q2-10      ...
Net financial income developmentNet financial income Q2 2010 – Q2 2012 (SEK bn) 4 3 2                                     ...
Operating leverage through cost efficiencyAverage quarterly income (SEK bn)                           Average quarterly ex...
Lending and deposit volumesCorporates and households Jun 2012 (SEK bn)                                        Customer cen...
Continued high asset qualityDistribution of loan portfolio and credit losses Q2 2010 – Q2 2012 (SEK bn) Nordics  73%      ...
Divisional performanceOperating profit Q2 2012 vs. previous quarters (SEK m) 2,5002,000 1,500 1,000   500       0         ...
Large corporate Nordic and German expansionPlatform now in placeOperating profit growth (SEK bn)                   +20%   ...
Focus on Retail BankingQuarterly operating profit (SEK m)1,200                                                            ...
Higher Core Tier 1 ratio through generated capital andefficient risk managementBasel II Core Tier 1 ratio (per cent)      ...
Balance sheet strengthened furtherCredit rating confirmed        Strong capital and liquidity position                    ...
Outlook Slow pace of recovery to continue Flight to quality to benefit strong banks Need for continued resilience and flex...
The leadingrelationship bankin our part of theworld                     18
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SEB's second-quarter 2012 results presentation

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SEB's CEO Annika Falkengren presented the bank's results for the second quarter of 2012 on 16 July.

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SEB's second-quarter 2012 results presentation

  1. 1. SEB January-June 2012 Annika FalkengrenResults presentation President & CEO 1
  2. 2. Highlights Q2 2012 Franchise and income growth Continued cost efficiency Balance sheet strengthened further 2
  3. 3. Profit and loss trendProfit and loss development Q2 2010 – Q2 2012 (SEK bn) 9.9 5.7 -0.3 Q2-10 Q2-11 Q2-12 Q2-10 Q2-11 Q2-12 Q2-10 Q2-11 Q2-12 Operating income Operating expenses Net credit lossesPre-provision profit and operating profit (SEK bn) Operating profit 4.2 Pre-provision profit Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 3
  4. 4. SEB has actively reduced its earnings volatility Income volatility, Q2 2008 – Q1 2012 (per cent) 15 10 5 0 Last 16 quarters Last 12 quarters Last 8 quarters Last 4 quartersSource: Nordea Equity Research, June 2012 SEB Peer averageStrategic actions to reduce income volatility Divestment of non- Reduced size of Secured funding and Maintained high Growth in areas core businesses investment portfolios liquidity reserves asset quality of strength 4
  5. 5. Income statementProfit and loss (SEK bn) Q2-12 Q1-12 % H1-12 H1-11 % Total Operating income 9,916 9,589 3 19,505 19,145 2 Total Operating expenses -5,692 -5,676 0 -11,368 -11,660 -3 Profit before credit losses 4,224 3,913 8 8,137 7,485 9 Net credit losses etc. -273 -204 34 -477 986 Operating profit 3,951 3,709 7 7,660 8,471 -10Operating income by type, Q2 2012 vs. Q1 2012 (SEK bn) 4.5 3.4 9% 13%Customer- 4.0 3.9 44% driven NII 1.1 0.8 34% Q2-12 Q1-12 Q2-12 Q1-12 Q2-12Q1-12 Q2-12 Q1-12 Net interest Net fee and Net financial Net life insurance income commissions income income 5
  6. 6. Net interest income developmentNet interest income Q2 2010 – Q2 2012 (SEK bn) 5 4 3 2 1 0 Q2-10 Q3 Q4 Q1-11 Q2 Q3 Q4 Q1-12 Q2Net interest income by income type Q2 2010 – Q2 2012 (SEK bn, gross) 3.1 0.8 0.6Q2-10 Q2-11 Q2-12 Q2-10 Q2-11 Q2-12 Q2-10 Q2-11 Q2-12 Lending Deposits Funding & other 6
  7. 7. Net fee and commission income developmentNet fee and commissions Q2 2010 – Q2 2012 (SEK bn) 5 4 3 2 1 0 Q2-10 Q3 Q4 Q1-11 Q2 Q3 Q4 Q1-12 Q2Gross fee and commissions by income type Q2 2010 – Q2 2012 (SEK bn) 2.4 1.7 0.6 Q2-10 Q2-11 Q2 Q2-10 Q2-11 Q2 Q2-10 Q2-11 Q2 Advisory, secondary markets and derivatives Custody and mutual funds Payments, cards, lending, deposits and guarantees 7
  8. 8. Net financial income developmentNet financial income Q2 2010 – Q2 2012 (SEK bn) 4 3 2 Excl. GIIPS de-risking 1 0 Q2-10 Q3 Q4 Q1-11 Q2 Q3 Q4 Q1-12 Q2Net financial income development (SEK bn) Drivers of net financial income NFI Divisions NFI Treasury & Other GIIPS  Stability from customer-driven flows in divisions 1.2 1.2 1.2 1.2 1.3  Limited impact from volatility on 1.1 MTM liquidity portfolio 0.0 -0.2 0.0  Highest quality sovereign and -0.2 0.0 -0.2 covered bonds with full central Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 bank eligibility 8
  9. 9. Operating leverage through cost efficiencyAverage quarterly income (SEK bn) Average quarterly expenses (SEK bn) 9.2 9.4 9.8 5.9 5.8 5.7 Avg 2010 Avg 2011 Avg 2012 Avg 2010 Avg 2011 Avg 2012 Operating leverage Average quarterly profit before credit losses (SEK bn) 4.1 3.2 3.6 Avg 2010 Avg 2011 Avg 2012 9
  10. 10. Lending and deposit volumesCorporates and households Jun 2012 (SEK bn) Customer centric strategy “Financial crisis” “Sov debt crisis” 1,500  Supporting core customers in times of need  Deposit patterns show flight 1,200 +150 +80 +19 to quality in turbulent times 900 +95 +145 +85 Lending (6.5% CAGR) 600 300 Deposits (6.3% CAGR) 0 Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- 00 01 02 03 04 05 06 07 08 09 10 11Excluding divested businesses 10
  11. 11. Continued high asset qualityDistribution of loan portfolio and credit losses Q2 2010 – Q2 2012 (SEK bn) Nordics 73% Group credit loss level 0.07% Baltics 9% -0.3 Other Germany 3% 15% Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12NPLs by region Q2 2010 – Q2 2012 (SEK bn) Nordics Germany Baltics 11.2 3.3 1.8 Q2-10 Q2-11 Q2-12 Q2-10 Q2-11 Q2-12 Q2-10 Q2-11 Q2-12 11
  12. 12. Divisional performanceOperating profit Q2 2012 vs. previous quarters (SEK m) 2,5002,000 1,500 1,000 500 0 Merchant Banking Retail Banking Wealth Management Life Baltic Q2-11 Q1-12 Q2-12Note: Shaded area of Baltic division shows net release of credit provisions 12
  13. 13. Large corporate Nordic and German expansionPlatform now in placeOperating profit growth (SEK bn) +20% +29% 1.0 0.8 H1 2011 H1 2012 H1 2011 H1 2012 +22% -1% 0.6 0.4 H1 2011 H1 2012 H1 2011 H1 2012Note: Germany excludes centralised Treasury operations and wind-down portfolio of realestate assetsExpansion KPIs +52 +SEK 18bn new large cap new loans and clients in H1-12 commitments in H1-12 13
  14. 14. Focus on Retail BankingQuarterly operating profit (SEK m)1,200 +135% in two years 800 400 0 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12SME expansion – Sweden Household growth – Sweden Active SME clients (thousands) Homebank customers (thousands) 140 +20,600 +28,000 500 120 100 400 80 300 60 40 200 2008 2009 2010 2011 H1 2012 2008 2009 2010 2011 H1 2012Note: Redefinition by SCB/UC on active client led to +4,500 clients in 2012 14
  15. 15. Higher Core Tier 1 ratio through generated capital andefficient risk managementBasel II Core Tier 1 ratio (per cent) 15.3 13.7 8.6 Q2-08 Q4-08 Q2-09 Q4-09 Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 15
  16. 16. Balance sheet strengthened furtherCredit rating confirmed Strong capital and liquidity position A1 Core Tier 1 ratio 15.3% Liquidity reserve SEK 537bn Loan to deposit ratio 131% SEK 61bn of 70bn re-financed NPL coverage ratio 64% 16
  17. 17. Outlook Slow pace of recovery to continue Flight to quality to benefit strong banks Need for continued resilience and flexibility 17
  18. 18. The leadingrelationship bankin our part of theworld 18

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