Annika Falkengren - SEB€¦ · Wealth Management Life Merchant Banking Germany Sweden Lithuania...

Annika FalkengrenPresident & CEO

Market turbulence and striking economic deterioration

Market turbulence and striking economic deterioration

Dark year for global banking sectorStock market developmentMarket capitalisation

12 largest global banks

December 2007 compared to February 2008, billion USD

1,300

440 0

20

40

60

80

100

120

140

160

Jan-06 Jan-07 Jan-08 Jan-09

Nordicbank indexSEB

The past year

Operating result SEK 12.5bn

Relation between costs and income C/I 0.62

Credit loss level 0.30%

Return on equity 13.1%

Profit per share SEK 14.66

Stable client business

0,40

0,45

0,50

0,55

0,60

0,65

0,70

0,75

0,80

1998 2000 2002 2004 2006 2008

0

400

800

1,200

1,600

Q12006

Q3 Q12007

Q3 Q12008

Q30%

2%

4%

6%

8%

SEB Way freed up time

Increased productivityC/I-ratio

Cumulative freed-up FTEs Freed-up FTEs (annualised run-rate) in % of total

Leading in:Scandinavian currencies worldwide

Cash management worldwide

Nordic asset management

Nordic stock broking

Nordic and Baltic investment banking

SME’s in Sweden

Custody in Nordics and Baltics

4%

3%

6%

3%

6%

4%

65%9%

27%

7%13%

53%

Geography and Divisions – Adjusted for OtherSweden – Adjusted for centralisation of investment portfolio

Retail Banking

Wealth Management Life

Merchant Banking

Germany SwedenLithuania

LatviaEstonia

Norway

FinlandDenmark

A diversified platformDistribution of 2008 operating profit

487538

709

2006 2007 2008

Corporate lendingBillion SEK

Increased lending

+10 %

+45 %

Life

Private Banking

Strong sales in several distribution channels

Swedish funds – net flows2008 Jan – Dec, billion SEK

Increased long term savings

-18

7

Other SEB

1 Economic situation: How serious is the downturn?

77

97

61

1 Economic situation

SEB equipped for further economic deterioration

Tier I capitalSEK bn

Dec 2008 before capital

measures

Pro forma after capital measures

Dec 2006

2 The Baltic countries: How is SEB handling the situation?

The Baltic countries2

Measures taken

●Continuous analysis of portfolios

●Special risk committee

●Set up work-out teams for problem credits

●Special purpose vehicles for problem credits

0%

1%

2%

3%

4%

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Estonia Latvia Lithuania

Impaired loans gross% of credit exposure excl. banks

3 What is the asset quality of SEB’s credit portfolio?

Well diversified Stable quality

The credit portfolio3

Sweden 50%

Lithuania 5%Latvia 3%

Estonia 3%

Germany 25%

Other 5%

Denmark 2 %Finland 2 %

Credit exposureTotal exposure = 1,934 billion SEK

Norway 6 %

4 Is it difficult for SEB to retain funding?

020406080

100120140

jan-08

mar-08

maj-08

jul-08

sep-08

nov-08

jan-09

mar-09

Financing4

Covered mortgage bonds, 5 yrSpread against interest rate swap rates

Good availability of short term funding

SEK 166bn on maturities over one year

Strengthen existing client relationships

Continued focus on cost efficiency

Maintain sound risk management as well as strong capitalisation and liquidity levels