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1
www.sebgroup.com
Facts & FiguresJanuary – June 2008
2
PageSEB Group 3 – 30Asset quality 31 – 40Bond portfolios 41 – 48Divisions 49 – 55Merchant Banking 56 – 66Retail Banking 67 – 92Wealth Management 93 – 104Life 105 – 120Macro update 121 – 128
Contents
3
SEB has…an attractive platformhigh customer satisfactionstable profit growthseveral leading positions
...a strong customer base2,500 customers are large companies and financial institutions400,000 SME customers5 million private customers
3
SEB – the key to North-European markets
4
Business Support/Group StaffJan Erik Back / Ingrid Engström / Hans Larsson
Internal Audit
Agneta Brevenhag
Group Credits & Group Risk Control
Johan Andersson
President & CEO
Annika Falkengren
Merchant Banking
Magnus Carlsson
Retail Banking
Bo Magnusson
Life
Anders Mossberg
WealthManagementFredrik Boheman
SEB's organisation
5
Share of operating profitJan – Jun 2008
14%
8%5%
2%5%
6%
12%48%
GermanySweden
42%
35%
10%13%
Retail Banking
Wealth Management
Life Merchant Banking
Geography - Adjusted for OtherDivisions - Adjusted for Other
Lithuania
Latvia
Estonia
Norway
Finland
Denmark
6
Ratings of Skandinaviska Enskilda Banken ABRating 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
7
Key figuresSEB Group
Q2 Jan-Jun Q1 Q2 Jan-JunSEKm 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 19.8Cost / income ratio 0.62 0.65 0.69 0.55 0.56Credit 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 8.45Risk-weighted assets, SEKbn 871 871 817 783 783
Change
8
Profit and loss accountQ2 2008 vs. Q2 2007SEKm Q2 Q2 Change Excluding
2008 2007 % portfoliosNet interest income 4,421 3,939 12Net fee and commissions 3,909 4,544 -14Net financial income 1,161 1,345 -14Net 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 6Other expenses -2,098 -1,768 19Depreciation of assets -354 -342 4
Total operating expenses -6,445 -5,884 10Gain/loss tangible/intangible assets 1 -1Net credit losses etc -452 -280 61
Operating profit 3,507 4,554 -23 -22%Net profit 2,809 3,522 -20
9
Profit and loss accountQ2 2008 vs. Q1 2008SEKm Q2 Q1 Change Excluding
2008 2008 % portfoliosNet interest income 4,421 4,223 5Net fee and commissions 3,909 3,801 3Net financial income 1,161 -161 -Net life insurance income 642 713 -10Net other income 270 226 19
Total operating income 10,403 8,802 18 9%Staff costs -3,993 -3,899 2Other expenses -2,098 -1,756 19Depreciation of assets -354 -372 -5
Total operating expenses -6,445 -6,027 7Gain/loss tangible/intangible assets 1 3 -67Net credit losses etc -452 -368 23
Operating profit 3,507 2,410 46 12%Net profit 2,809 1,848 52 8%
10
Profit and loss accountJan – Jun 2008 vs. Jan – Jun 2007SEKm Jan – Jun Jan – Jun Change Excluding Jan – Dec
2008 2007 % portfolios 2007Net interest income 8,644 7,706 12 15,998Net fee and commissions 7,710 8,821 -13 17,051Net financial income 1,000 2,656 -62 3,239Net life insurance income 1,355 1,385 -2 2,933Net other income 496 344 44 1,219Total operating income 19,205 20,912 -8 -8 40,440Staff costs -7,892 -7,570 4 -14,921Other expenses -3,854 -3,446 12 -6,919Depreciations/amortisations -726 -670 8 -1,354Total operating expenses -12,472 -11,686 7 -23,194Gain/loss tangible/intangible assets 4 -1 788Net credit losses etc -820 -514 60 -1,016Operating profit 5,917 8,711 -32 -31 17,018Net Profit 4,657 6,784 -31 -30 13,642
11
Operating profit
01,0002,0003,0004,0005,0006,000
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
SEB GroupIncome, Expenses and Operating profit, SEKm
*
* One-off charges of SEK 890m in Q4 2005 ** Including sales of Baltic properties in Q4 2007 of SEK 785m
**
0
2,000
4,000
6,000
8,000
10,000
12,000
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Excluding portfolios Income Expenses
*
12
3,939
4,421
-13
132 4972
242
Q2 2007 Lendingmargin
Lendingvolume
Depositmargin
Depositvolume
Funding &other
Q2 2008
Net interest income analysisSEB Group Q2 2008 vs. Q2 2007SEKm
13
4,2234,421
128
151377
-35
Q1 2008 Lendingmargin
Lendingvolume
Depositmargin
Depositvolume
Funding &other
Q2 2008
Net interest income analysisSEB Group Q2 2008 vs. Q1 2008SEKm
14
7,706
8,644
258
218
127483
-148
Jan – Jun2007
Lendingmargin
Lendingvolume
Depositmargin
Depositvolume
Funding &other
Jan – Jun2008
Net interest income analysisSEB Group Jan – Jun 2008 vs. Jan – Jun 2007SEKm
15
Net interest and Net fee and commission incomeSEB Group, SEKm
0
1,000
2,000
3,000
4,000
5,000
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Net interest income Net fee and commissions
16
Fee and commission incomeGross quarterly development Q1 2004 – Q2 2008 SEB Group, SEKm
0
500
1,000
1,500
2,000
2,500
New issues &advisory
Secondarymarket &
derivatives
Custody &mutual funds
Payment, cards,structuredlending,
deposits,guarantees
Other
Deal driven
Securitiestransaction
driven
Value driven –performance
driven Non-capital market driven
Capital market driven
*
* Q2 2006 adjusted for gross commission on security lending, SEK 200m
17
-400
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
Net financial income Net life insurance income Net other income
Net financial, Life and Other insurance incomeQuarterly development Q1 2004 – Q2 2008 SEB Group, SEKm
18
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Staff costs Other expenses Restructuring costs
Cost development per quarterQuarterly development Q1 2004 – Q2 2008* SEB Group, SEKm
* Include capitalisation of acquisition cost in Life from Q1 2005 – onwards** One-off charges of SEK 890m in Q4 2005
**
19
Cost managementTotal expenses, Jan – Jun 2008 vs. Jan – Jun 2007SEKm
12,63511,686
12,472
493
840 56
44039
202
Jan-June2007
Inflation Organicgrowth +
Acq
Depreciation Variablesalaries
Cost beforeefficiency
gains
Efficiencygains
Redundancycost
Jan-June2008
*
• Investments for operational excellence of SEK 370m included• Organic growth of SEK 362m• Acquisitions of KAM, Factorial of SEK 108m
*
SEK 748m from the start
of 2007
20
21.1
13.215.514.7
15.8
20.8
15.2
9.6
19.3
2004 2005 2006 2007 Q1 2008 Q2 2008
Excluding portfoliosReturn on Equity
*
* 17.0 excluding one-off charges of SEK 890m in Q4 2005
Return on equitySEB Group, per cent
21
0.65 0.650.58 0.57
0.690.62
0.620.620.55
2004 2005 2006 2007 Q1 2008 Q2 2008
C/I ratio Excluding portfolio losses
Cost/income ratioSEB Group
*
* 0.62 excluding one-off charges of SEK 890m in Q4 2005
22
21.83
3.62 4.17
10.8312.58
18.72
4.102.70
19.97
2004 2005 2006 2007 Q1 2008 Q2 2008
Excluding portfolios
Equity per share
Basic earnings per shareSEB Group, SEK
*
* 13.54 excluding one-off charges of SEK 890m in Q4 2005
23
12 month rolling SEB Group*, SEKm
* Excluding restructuring costs and one-off charges of SEK 890m in Q4 2005
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Income
Expenses
Operatingprofit
24
Assets under managementSEB Group, SEKbn
Assets under management year-end 2007 1,370Inflow 141 (10%)Outflow -121 (-9%)Acquisition/disposal net 17Change in value -112 (-8%)
Assets under management June 2008 1,295 ** Of which:Retail Banking 87Wealth Management 1,217Life 408
25
SEB Group net inflow AuM Jan – June 2008, SEKbn
5.6
-3.1
0.40.620.0
Sweden OtherNordic
Germany Balticcountries& Poland
Other &Elim
Group
16.5
26
Balance sheet Jun 2008 Mar 2008 Jun 2007
Cash and balances with central banks 27,557 17,728 26,063Loans to credit institutions 219,111 308,822 224,899Loans to the public 1,132,374 1,098,597 1,047,546Financial assets at fair value 597,723 694,111 682,881Available-for-sale financial assets 247,245 196,848 134,115Held-to-maturity investments 2,266 1,868 2,051Investment in associates 1,361 1,314 1,122Tangible and intangible assets 26,177 25,452 23,076Other assets 50,335 53,823 45,955
Total assets 2,304,149 2,398,563 2,187,708Deposits by credit institutions 397,601 455,707 413,283Deposits and borrowings from the public 757,904 764,567 715,037Liabilities to policyholders 211,938 213,046 218,958Debt securities 506,564 499,622 454,651Financial liabilities at fair value 229,285 256,961 198,920Other liabilities 83,129 87,273 75,717Provisions 1,265 1,338 1,747Subordinated liabilities 41,664 42,990 39,094Total equity 74,799 77,059 70,301
Total liabilities and equity 2,304,149 2,398,563 2,187,708
27
Relationship Deposits from and Lending to the public 2001 – 2008
30%
40%
50%
60%
70%
80%
90%
100%
2001 2002 2003 2004 2005 2006 2007 Q22008
Deposits to loans ratio
28
Deposits – Interbank20%
Subordinated debt3%
Senior debt4%
Public covered bonds, Germany8%
Mortgage covered bonds, Germany2%
Mortgage covered bonds, Sweden9%CPs/CDs
9%
Schuldscheins and Reg Bonds
3%
Deposits – General Public
42%
Funding structureSEB Group, June 2008SEK 1,605bn
* Over collateral within covered pools SEK 78bn
29
Net liquidity position across maturities30 June, SEKbn
-50,000
0
50,000
100,000
150,000
200,000
250,000
1 week
2 weeks
4 weeks
2 months
3 months
4 months
5 months
6 months
9 months
12 months
SEB is match-funded approx.
one year
30
Capital adequacy SEB Group
7.9 8.0 7.8 7.5 8.2 8.6 8.6
10.5 10.2 10.3 10.8 11.5 11.0 10.8
Dec2002
Dec2003
Dec2004
Dec2005
Dec2006
Dec2007
Jun2008
Core capital ratio, % Total capital ratio, %
SEKbnCapital base 52.7 54.7 58.7 76.2 85.8 93.0 93.8Risk-w. Assets 503 535 570 704 741 842 871
Basel I 9.6%
Basel I 7.7%
Basel I 972
Basel II
31
Asset quality
32
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)
Credit exposure – on and off balanceSEKbn
33
Dec -05 Dec -06 Dec -07 Mar -08 Jun -08Corporates 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 1,403Banks 198 169 248 269 227
Total 1,328 1,315 1,552 1,605 1,631
Credit exposure – on and off balanceSEKbn
34
17 22 21 18 21 2135 41 438 8 8
4 5 5
711 12
1419 20
1014 14
13
22 2456
424134
515041
8376
Dec'06
Dec'07
Jun '08 Dec'06
Dec'07
Jun '08 Dec'06
Dec'07
Jun '08
Total
Banks
PublicAdministrationHouseholds
PropertyManagementCorporate
SEB Estonia SEB Latvia SEB Lithuania
Growth rates in local currency+38% +17% +40% +18% +47% +30%
2006 2007 2006 2007 2006 2007
+2%
2008 1H
+3% +8% 2008 1H 2008 1H
Credit Exposure – Baltic Banks on and off balanceSEKbn
35
240 269 330 35379 105
104 110
Dec 2005 Dec 2006 Dec 2007 Jun 2008
Mortgage Other434
319 374463
Credit exposure – HouseholdsSEKbn
36
101 110 135 147
91 8175 82
Dec 2005 Dec 2006 Dec 2007 Jun 2008
Commercial Multi-family
192 210191229
Credit exposure– Property management SEKbn
37
Impaired loans and reservesSEKm
Dec 2005 Dec 2006 Dec 2007 Jun 2008Impaired loansNon-performing, gross (60 days) 7,957 7,123 7,619 8,247Performing, gross 1,144 1,403 772 846Impaired loans, gross 9,101 8,526 8,391 9,093Specific reserves 4,787 4,234 3,787 3,810Collective reserves 2,283 2,170 2,602 2,696Off-balance sheet reserves 268 215 209 170Total reserves 7,338 6,619 6,598 6,676Reserve ratio 77.7% 75.1% 76.1% 71.5%
38
0.000.100.200.300.400.500.600.700.80
2003 2004 2005 2006 2007 Q12008*
Q22008*
Germany Baltics Nordics SEB Group
* Annualised
Level of Net Credit Losses, %
Estonia 1.68Latvia 0.48Lithuania 0.17Baltics 0.73
39
Credit losses and build up of reserves SEKm
Sum Average/ Jan – Jun Jan – Jun Change8 quarters quarter 2007 2008
Net credit losses, quarterly 2006 – 2008ProvisionsNet collective provisions -368 -46 - 334 -101 233Specific provisions -1,832 -229 - 322 -599 -278Reversals of specificprovisions no longer required 835 104 162 123 -39Net provisions for contingent liabilities 22 3 24 3 -21Net provisions (build-up of reserve) -1,344 -168 - 470 -574 -104Write-offsTotal write-offs -2,835 -354 - 483 -699 -179Reversal of specific provisionsutilized for write-offs 1,509 189 255 418 126Write-offs not previously provided for -1,326 -166 - 228 -281 -53Recovered from previous write-offs 479 60 178 43 -135Net write-offs -847 -106 -50 -238 -188Total credit losses net -2,191 -274 -520 -812 -292
40
Credit losses and build up of reserves quarterly developmentSEKm
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2Net credit losses, quarterly 2006 2006 2007 2007 2007 2007 2008 2008
ProvisionsNet collective provisions -89 212 -114 -220 -71 15 -112 11Specific provisions --124 -455 -245 -77 -100 -231 -190 -409Reversals of specific provisions no longer required 133 173 75 87 80 163 44 79Net 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-offsTotal write-offs -334 -444 -243 -240 -350 -562 -332 -367Reversal of specific provisionsutilized for write-offs 196 221 124 131 214 242 201 217
Write-offs not previously provided for -138 -223 -119 -109 -136 -320 -131 -150Recovered 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
41
Bond portfolios
42
*Net of short and fully matched positions; excluding holdings in the insurance business
ABS18%
Financials27%
Covered bonds21%
Cover pool24%
Corp, Gov't etc
10%
Merchant Banking 193Group Treasury 135
Other divisions 10
Total 338
SEB Bond Portfolio*30 June, 2008, SEKbn
43
Capital Markets and other14%
24%
1%
61%
Corporate bonds Financial institutions
Gov't Covered bonds
Credit & Portfolio Management
49%42%
9%Structured credits Financial institutions
Covered bonds etc
Trading Investments
Merchant Banking Bond Portfolios30 June, 2008
Volume SEK 67bn Volume SEK 126bn
44
Structured creditsVolume: SEK 61bn (71)AAA-rating: 97.2% (99.3)MTM losses highly dependent on seniority, underlying assets and vintage
Financial institutions Volume: SEK 53bn (55)MTM losses on all financial holdings, not only investment banks
Bond investment portfolio – status30 June, 2008 (31 December, 2007)
Covered bonds etc. SEK 12bn (5)
2007 Q1 08 Q2 08-1,769 -872
-1,630
-2,502
MTM (SEKm)
Equity -698
-66
-56 -2,384
-122-2,467
AccP/L -2,707
-5,091
45
Structured credits Financial institutions2007 Q1 08 Q2 08
P/L -41
-15-66
Equity
Acc-1,056
-626 -990 -1,631-1,682
-794 -1,891
-1,784 -3,522
2007 Q1 08 Q2 08P/L -26
-52-78
Equity
Acc-563-72 -438 -561
-635
-78 -667
-515 -1,228
+ Covered bonds etc accumulated -341
Bond investment portfolio – financial effects30 June, 2008, SEKm
2007 Q1 08 Q2 08-1,769 -872
-1,630
-2,502
MTM (SEKm)
Equity -698
-66
-56 -2,384
-122-2,467
AccP/L -2,707
-5,091
46
Bond investment portfolio – strategyLimit P/L volatility by increasing AFS portfolios and reducing HFT portfolios Reduce subprime holdings, primarily in the HFT portfolioReduce the credit spread risk through partial hedging (ITRAXX)
30 29
05
41
26
Structuredcredits
Financialinstitutions
Coveredbonds etc.
Q4 07 Q2 08
Held for trading (MTM over income)
Available for sale (MTM over equity)
SEK bn
51 49
114
10
1
Structuredcredits
Financialinstitutions
Coveredbonds etc.
43
29
11
2620
3
Structuredcredits
Financialinstitutions
Coveredbonds etc.
Q1 08
47
Distribution of Investment portfolio30 June, 2008
Financial institutionsSEK 53bn
FR 14%
IT 6%NL 7%
Other 9%FI 1%
SE 3%DE 3%
US 25%
UK 13%
ES 19%
Direct and indirect
exposure
Structured creditsSEK 61bn
CMBS 7%
CMO 13%
RMBS 36%
Sub prime 3%
CLO 17%
CDO 7%
ABS 17%
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 collateralTotal 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 assetsCurrent average remaining maturity ~4 years.Current annual amortisation rate is SEK ~10bn
49
Divisions
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.
50
Operating profit per divisionJan – Jun 2008 vs. Jan – Jun 2007SEKm
0 1,000 2,000 3,000 4,000
Life
WealthManagement
Retail Banking
MerchantBanking
Jan-Jun 2008
Jan-Jun 2007
Changevs. Jan-Jun 2007
-31% (-8%)
-17%
-32%
-18%
ROEJan-Jun 2008
15.6% (20.7%)
14.7%
20.2%
15.9%
Excl. portfolio losses
51
Q1 Q2 Q3 Q4 Q1 Q22007 2007 2007 2007 2008 2008
MB 465 492 459 483 526 531Retail Banking 468 483 493 513 518 545RB Sweden 256 264 271 279 286 303RB Estonia 37 39 40 42 42 43RB Latvia 31 35 34 36 35 36RB Lithuania 46 50 54 59 60 64RB Germany 85 81 80 81 81 82RB Cards 13 14 14 14 14 17Wealth Management 30 31 33 32 31 29Life - - - - - -Other/Elim 54 42 36 39 24 27SEB Group 1,017 1,048 1,021 1,067 1,099 1,132
VolumesPublic lendingSEKbn
52
VolumesPublic depositSEKbn
Q1 Q2 Q3 Q4 Q1 Q22007 2007 2007 2007 2008 2008
MB 371 384 364 389 409 392Retail Banking 231 249 249 262 257 264RB Sweden 130 139 139 145 145 149RB Estonia 18 20 20 22 20 22RB Latvia 16 17 17 18 17 18RB Lithuania 25 26 26 30 28 28RB Germany 43 46 46 48 47 47RB Cards - - - - - -Wealth Management 47 54 51 53 54 56Life - - - - - -Other/Elim 20 28 43 46 45 46SEB Group 670 715 707 750 765 758
53
FTEs, end of quarter
Q1 Q2 Q3 Q4 Q1 Q22007 2007 2007 2007 2008 2008
MB 2,540 2,568 2,550 2,672 2,742 2,760Retail Banking 8,655 8,912 8,807 8,925 8,995 9,325RB Sweden 2,742 2,812 2,660 2,736 2,733 2,875RB Estonia 1,011 1,095 1,061 1,061 1,048 1,084RB Latvia 1,052 1,089 1,117 1,118 1,108 1,122RB Lithuania 1,333 1,387 1,428 1,492 1,520 1,579RB Germany 1,668 1,699 1,728 1,733 1,802 1,830RB Cards 849 830 813 785 784 835Wealth Management 1,099 1,050 1,064 1,073 1,160 1,143Life 1,194 1,203 1,199 1,218 1,222 1,235Other/Elim 5,842 5,886 5,820 5,906 7,091 7,182SEB 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.
54
Summary per division Jan – Jun 2008
Merchant Banking
RetailBanking
WealthManagement 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.
55
01020304050
MerchantBanking
Retail Banking WealthManagement
Life* Group
Jan- Jun 2007 Jan- Jun 2008Cost/income ratio per division
Return on Equity per division, per cent
* Based on operating profit
0.000.200.400.600.801.00
MerchantBanking
Retail Banking WealthManagement
Life Group
Jan- Jun 2007 Jan- Jun 2008
RoE and Cost/Income ratio per division
56
Magnus CarlssonHead of Merchant Banking
Merchant Banking
SEKm Jan – Jun 2008 Δ 2007
Total income 6,945 -18%Interest, net 3,063 13%Commission, net 2,711 -16%Financial, net 1,055 -55%
Total expenses -3,958 -2%Credit losses, net -56 -75%Operating profit 2,934 -31%
RoE, % 15.6 23.0C/I 0.57 0.48
Highlights
Strong customer revenues despite financial turmoil
Second quarter income in excess of SEK 4bn
Stable development of underlying costs
Opportunities from demand for credit and improved risk pricing
Top rankings in equities, M&A advisory, cash management and custody
57
Merchant Banking SEKm
0
500
1,000
1,500
2,000
2,500
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Operating profit Excluding portfolios
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Excluding portfolios Income Expenses
58
48%
31%
21%
Share of income and result by areaJan – Jun 2008, per cent of total
Income Operating profit
52%29%
19%
Trading and Capital Markets
Global transaction services
CorporateBanking
Trading and Capital Markets
Global transaction services
CorporateBanking
59
Trading and Capital MarketsSEKm
0
300
600
900
1,200
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Operating profit Excluding portfolios
0
500
1,000
1,500
2,000
2,500
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Excluding portfolios Income Expenses
60
Developing products to meet customer needs
36%26% 28% 33% 38% 41%
49%44% 46% 64% 46%
49%
8%22% 15% 11%3%6%
7%11%8% 5%
4%
Q1 -07
Q2 Q3 Q4 Q1 -08
Q2
Trading and Capital Markets income by main product cluster, excl. investment portfolios
FX
Structured Derivatives and other TCM
Equities
Capital Markets
●Focus on customer flows ensures continued strong revenues
● Increased profits in FX ●Strong revenues and
increased market share in Equities
● Lower profits in fixed income related units due to ongoing uncertainty in credit markets
61
Operating profit
0200400
600800
1,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
0200400600800
1,0001,2001,4001,600
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Income Expenses
Corporate banking SEKm
2007 and 2008 including Baltics
62
Operating profit
0
100
200
300
400
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
0100200300400500600700800900
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Income Expenses
Global Transaction Services SEKm
2007 and 2008 including Baltics
63
Custody volume development
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2004 2005 2006 2007 20080
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000Assets under custody, SEKbn No of transactions/day
64
Market Shares Nordic Stock Exchanges *H1 2008
*Source: The Nordic Stock exchanges**Rank based on completed deals. All Nordic involvement. Source: Thomson Financial
4.7%
5.2%
5.4%
5.6%
8,9%
SHB
Glitnir
Carnegie
MorganStanley
SEB
Nordic M&A**
H1 2008 (EURm)
Merchant BankingInvestment banking rankings
6,418
6,663
8 462
6 197Lenner Corp.Fin.
MorganStanley
UBS
SEB
Credit Suisse
20 Deals
9 Deals
7 Deals
4 Deals
5 Deals
10,008
65
Source: Dealogic Analytics
Swedish syndicated loans league (and bookrunner %) Jul 2007 – Jun 2008
17.9%
6,3%
6,0%
4,7%
3.8%
0 4 8 12 16
Nordea
DnB NOR
Citi
SEB
RBS
EURbn
Nordic syndicated loans league (and bookrunner %) Jul 2007 – Jun 2008
Merchant BankingSyndicated loans, 12-months rolling
17.6%
12.4%
5.6%
3.5%
3.0%
0 2 4
SEB
SHB
Calyon
RBS
ABN AMRO
EUR bn
66
Merchant Banking– Recent rankingsEuromoney July 2008
Best for Cash Management in Nordic & Baltic regionBest Equities House in Nordic & Baltic regionBest M&A House in the Nordic & Baltic region
Risk Magazine July 2008 Best derivatives dealer in Sweden
Thomson Rueters Extel June 2008 Best research house in the Nordic countries
Global Finance July 2008April 2008
Best sub-custodian inWorld’s Best DevelopedMarket Banks 2008
the Nordic region Market Banks 2008 (No. 1 in Sweden); World’s Best Emerging
(no. 1 in Latvia and Lithuania)Söderberg & Partners February 2008 Best Arranger Structured Products, Sweden
Euroweek February 2008 Best Arranger Nordic Loans, Syndicated Loans and Leveraged Finance Awards 2007
Prospera January 2008 No.1 stockbroker in the Nordic region
FX Week January 2008 Best bank for international currency forecasts in 2007
Global Custodian November 2007October 2007
Top rated in Central and Eastern Europe (2007 Emerging Markets Agent Bank Review)Top rated in all four Nordic markets (2007 Major Market Agent Bank Review )
Global FinanceJanuary 2008
Best Bank for Cash, Liquidity and Risk Management, Nordic RegionBest Trade Finance bank, Nordic Region, Sweden and LithuaniaBest Foreign Exchange Bank and Provider in the Nordic countries and Lithuania
TMI January 2008 Best bank for Cash Management, Nordic RegionBest Bank for supply Chain Finance, Nordic Region
EuromoneyOctober 2007
No. 1 for Overall Customer Satisfaction in Europe (No.2 globally)No. 1 Globally in level of commitment to Cash Management BusinessNo. 9 Globally in market share for International Cash Management
Euromoney September 2007 Best at commercial real estate banking, Nordic and Baltic regionBest at commercial real estate investment banking, Nordic and Baltic region
Prospera September 2007 No.1 for corporate finance in the Nordic region
67
Retail Banking
SEKm Jan – Jun 2008 Δ 2007
Total income 8,310 3%Interest, net 5,144 9%Commission, net 2,861 -7%
Total expenses -5,127 6%Credit losses, net -751 165%Operating profit 2,432 -17%
RoE, % 14.7 18.3C/I 0.62 0.60
HighlightsBo MagnussonHead of Retail Banking Continued strong income, in particular
net interest income (NII)– NII +9% vs. 2007 offsets lower
security related fees - income +3% – Q2 strongest quarter in terms of NII,
2nd strongest in terms of total income
Baltic cost growth affected by sale of real estate, inflation and 2007 sales expansion; higher pension cost in Sweden
Profit before credit losses stable
Decrease in operating profit due to higher credit losses, mainly driven by increased provisions in Estonia
68
Retail BankingSEKm
Operating profit
0
500
1,000
1,500
2,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Income Expenses
69
Share of income and result by areaJan – Jun 2008, per cent of total
38%
19%8%8%
12%
15%
Germany
Latvia
Estonia
SwedenLithuania
Cards
Income
16%
23%
9% 2%3%
47%
Germany
Latvia
Sweden
Lithuania
Cards
Estonia
Operating profit
70
Business volume development by areaSEKbn Q2 2008 change vs. Q2 2007 (local currency)
51
26
29
22
60
14
10
15
61
235
Lithuania
Latvia
Estonia
Germany
Sweden 12%
0%
12%
7%
49%
14%
5%
7%
2%
21%
Mortgages Other lending
28
18
22
46
149
Deposits
7%
10%
4%
1%
5%
Note: Figures for Estonia, Latvia and Lithuania include SEB:s large corporate business volumes
71
41%13%25%21%
Transaction account privateTransaction account corporate & publicSavings account privateSavings account corporate & public
Deposit breakdownPercent of total deposits
43%
26%
22%
9%
Retail Total
Estonia
Sweden Germany
Latvia Lithuania
52%
9%
22%
17%
38%
2%
4%
56%
20%
20%
40%
20%
27%
17%
34%
22%
33%
6%
35%
26%
72
Development of lending market shares – Baltics Per cent, Dec 2004 – May 2008
SEBSwedbankDnB NordParex BankaSampoNordea
Estonia* Latvia Lithuania
* Swedbank & Sampo as per Q1 2008
0%
10%
20%
30%
40%
50%
0%
10%
20%
30%
40%
50%
0%
10%
20%
30%
40%
50%
73
Retail SwedenHighlightsSEKm Jan – Jun 2008 Δ 2007
Total income 3,112 2%Interest, net 2,220 10%Commission, net 757 -14%
Total expenses -1,950 5%Credit losses, net -33 -26%Operating profit 1,129 -2%
RoE, % 22.0 23.0 C/I 0.63 0.61
Total lending 302,800 +15%Total deposits 149,100 +7%
Solid net interest income growth, Q2 strongest quarter to date (+5% vs. Q1)– Mortgages: volume growth,
stable margins– Deposits: volume growth,
increased margins
Decreased commission income due to brokerage and structured products
Insurance sales +30% vs. first half 2007
Strong SME growth: 5,200 new SME customers (3,500 first half 2007)
Cost affected by higher pension cost
74
Business volume developmentRetail Sweden, SEKbn
Mortgages
0
50
100
150
200
250
Q205
Q4 Q206
Q4 Q207
Q4 Q208
CorporatePrivate
Other lending
0
50
100
150
200
250
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Deposits
0
50
100
150
200
250
Q205
Q4 Q206
Q4 Q207
Q4 Q208
75
Market share development Sweden, per cent
Note: Other lending and deposits=SEB Parent Bank Sweden, i.e. not only Retail Sweden
CorporatePrivate
Mortgages*
0
5
10
15
20
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Other lending
0
5
10
15
20
Q205
Q4 Q206
Q4 Q207
Q4 May08
Deposits
0
5
10
15
20
25
30
Q205
Q4 Q206
Q4 Q207
Q4 May08
* New measurement method from Q4 2007. Lowers the volume market share with approximately 0.2 percentage points
76
Mortgages private marketRetail SwedenMarket share, per cent
02468
101214161820
Q105
Q2 Q3 Q4 Q106
Q2 Q3 Q4 Q107
Q2 Q3 Q4 Q108
Q2
Sales Volume
* New measurement method from Q4 2007. Lowers the volume market share with approximately 0.2 percentage points
*
77
Mortgages private marketTotal SwedenVolumes and margins
0
50
100
150
200
250
Q12005
Q2 Q3 Q4 Q12006
Q2 Q3 Q4 Q12007
Q2 Q3 Q4 Q12008
Q20.00%
0.25%
0.50%
0.75%
1.00%
1.25%Outstanding volume, SEKbn Average margin
78
Mortgages private marketSwedenCustomers’ choice of fixed / floating interest rates
0%
20%
40%
60%
80%
100%
Q12005
Q2 Q3 Q4 Q12006
Q2 Q3 Q4 Q12007
Q2 Q3 Q4 Q12008
Q2
FixedFloating
79
Retail GermanySEKm Jan – Jun 2008 Δ 2007
Total income 1,613 -4%Interest, net 949 1%Commission, net 647 -11%
Total expenses -1,489 -1%Credit losses, net -50 6%Operating profit 74 -46%
RoE, % 2.6 5.1C/I 0.92 0.89
Total lending 82,300 +1%Total deposits 47,300 +3%
Highlights
Reduced profitability due to lower customer activity within securities-related-areas
Higher sales of insurance (+8%), mortgages (+40%) and consumer lending (+11%) vs. 2007
Successful campaign for custody account attracting 8,800 new accounts
Stable cost level
80
Business volume developmentRetail Germany, EURbn
Mortgages*
0
1
2
3
4
5
6
7
8
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Other lending
0
1
2
3
4
5
6
7
8
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Deposits
0
1
2
3
4
5
6
7
8
Q205
Q4 Q206
Q4 Q207
Q4 Q208
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
81
New mortgage*
0
50
100
150
200
250
300
350
400
450
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Customer appointments*
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Insurance
0
20
40
60
80
100
120
140
Q205
Q4 Q206
Q4 Q207
Q4 Q208
* by Callcenter
EURm EURm
* incl prolongation
Sales developmentRetail Germany
82
Retail Estonia
HighlightsLower business activity than precedent quartersHigher loan losses due to credit provisionsStrong focus on credit quality, including increase of loans overdueIncreased savings focus - new mutual funds launched Cost increase affected by real estate sale Q4 2007, investments in sales capacity during 2007, and high salary inflationNon recurring income from sale of PKK – card processing company
SEKm Jan – Jun 2008 Δ 2007
Total income 692 10%Interest, net 435 3%Commission, net 176 2%
Total expenses -284 26%Credit losses, net -368 -Operating profit 40 -89%
RoE, % 2.0 24.0 C/I 0.41 0.36
Total lending 43,100 +11%Total deposits 21,600 +6%
83
Business volume developmentRetail Estonia, EURbn Corporate
Private
Mortgages
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Other lending
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Deposits
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Mortgages defined as home loans to private individualsNote: Figures include SEB:s large corporate business volumes
84
Market share developmentRetail Estonia May, per cent Corporate
Private
Mortgages
0
5
10
15
20
25
30
35
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Deposits
0
5
10
15
20
25
30
35
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Mortgage market share for home loans to private individuals
85
Retail Latvia
HighlightsHighlightsSEKm Jan – Jun 2008 Δ 2007
Total income 626 -1%Interest, net 514 10%Commission, net 92 -44%
Total expenses -314 23%Credit losses, net -85 118%Operating profit 228 -32%
RoE, % 12.5 17.8C/I 0.50 0.41
Total lending 36,100 +4%Total deposits 17,600 +2%
Lower business activity than precedent quartersStrong focus on credit quality, including increase of loans overdueIncreased savings focus - new mutual funds launched Cost increase affected by real estate sale Q4 2007, investments in sales capacity during 2007, and high salary inflationSEB awarded Best Bank in Latvia by Global Finance
86
CorporatePrivate
Business volume developmentRetail Latvia, EURbn
Mortgages
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Other lending
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Deposits
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Mortgages defined as home loans to private individuals
Note: Figures include SEB:s large corporate business volumes
87
Market share developmentRetail Latvia May, per cent
Mortgage market share for home loans to private individuals
CorporatePrivate
Mortgages
0
5
10
15
20
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Deposits
0
5
10
15
20
Q205
Q4 Q206
Q4 Q207
Q4 Q208
88
Retail LithuaniaSEKm Jan – Jun 2008 Δ 2007
Total income 1,038 11%Interest, net 793 14%Commission, net 201 3%
Total expenses -418 20%Credit losses, net -51 -14%Operating profit 569 7%
RoE, % 22.0 20.0C/I 0.40 0.37
Total lending 64,000 +27%Total deposits 28,100 +8%
Highlights
Controlled credit growth continued
Continued expansion of distribution capacity
Cost increase affected by real estate sale Q4 2007, continued investments in sales capacity, and high salary inflation
SEB awarded Best Bank in Lithuania by Global Finance; 10th consecutive year
89
Business volume developmentRetail Lithuania, EURbn Corporate
Private
Mortgages
0
1
2
3
4
5
6
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Other lending
0
1
2
3
4
5
6
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Deposits
0
1
2
3
4
5
6
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Mortgages defined as home loans to private individualsNote: Figures include SEB:s large corporate business volumes
90
Market share developmentRetail Lithuania May, per cent
Mortgage market share for home loans to private individuals
CorporatePrivate
Mortgages
0
5
10
15
20
25
30
35
40
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Deposits
0
5
10
15
20
25
30
35
40
Q205
Q4 Q206
Q4 Q207
Q4 Q208
91
CardsSEKm Jan – Jun 2008 Δ 2007
Total income 1,230 11%Interest, net 232 40%Commission, net 977 6%
Total expenses -674 2%Credit losses, net -163 147%Operating profit 393 1%
RoE, % 21.8 26.6C/I 0.55 0.59
Highlights
Continued underlying business growth, turnover +7%Several new large customers gained across countries, e.g. H&M SEB's consumer finance business in Norway transferred to Cards as of Q2 Continued strong cost discipline, cost for comparable units unchanged Increased losses due to consumer finance transfer and higher fraudEurocard launched in FinlandSeveral new customer offerings launched, e.g. Eurocard Platinum
92
Cards
Turnover cards
203040506070
Q12003
Q2 Q3 Q4 Q12004
Q2 Q3 Q4 Q12005
Q2 Q3 Q4 Q12006
Q2 Q3 Q4 Q12007
Q2 Q3 Q4 Q12008
Q2
SEKbn
Number of cards
2.62.83.03.23.4
Q12005
Q2 Q3 Q4 Q12006
Q2 Q3 Q4 Q12007
Q2 Q3 Q4 Q12008
Q2
Millions
93
Fredrik BohemanHead of Wealth Management
Wealth ManagementHighlights
Stable base revenues given the marketStrong net sales in Institutional Clients in May (approx SEK 8bn) and Private Banking continued showing good salesAssets under management SEK 1,217bn, -5% since year endSEB kept capturing volumes, incl. shift to alternative products, on a continued weak net sales market for Swedish mutual funds, SEK +3,8bn vs. total market of SEK -28bn.Cost increased due to consolidation of Key Asset Management and sales initiativesSEB's consumer finance business in Norway transferred to Cards as of Q2
SEKm Jan – Jun 2008 Δ 2007
Total income 2,282 -11%Interest, net 441 15%Commission, net 1,778 -16%
Total expenses -1,354 14%
Operating profit 926 -32%
RoE, % 20.2 35.5C/I 0.59 0.47
94
Share of income and result by areaJan – Jun 2008; percent of total
67%
33%
Private Banking
Institutional Clients
Income
24%
76%
Private Banking
Institutional Clients
Operating result
95
Operating profit
0
200
400
600
800
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
0200400600800
1,0001,2001,400
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Income Costs
Wealth ManagementSEKm
96
Institutional ClientsSEKm
Operating profit
0
200
400
600
800
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
0100200300400500600700800900
1,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Income Expenses
9797
Private BankingSEKm
Operating profit
050
100150200250
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
0
100
200
300
400
500
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Income Expenses
98
1,285
1,217
-82 -6
20
Dec 2007 Value Fx Net sales Q2 2008
Assets under managementWealth Management, SEKbn
99
Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Institutional portf incl Stiftelser & Ftg (excl MF) Mutual Funds Private Clients
48%
1,107 1,0791,147 1,192 1,266
1,320 1,300 1,285 1,256
48% 47% 47% 46% 46% 45% 45% 45% 44%
13% 14%15% 15%
15% 15% 15% 15% 15% 15%
39% 38% 38% 39% 39% 40% 40% 40% 41%40%
1,217
Assets under managementper product typeWealth Management, SEKbn
99
100
Total net sales per quarterSEKbn
19.7
9.413.6
7.6
16.4 15.5
6.32.0
8.2
3.0
2.31.0
0.8
4.1
2.92.6
3.5
5.8
4.9
10.9
0
5
10
15
20
25
Q12006
Q2 Q3 Q4 Q12007
Q2 Q3 Q4 Q12008
Q2
IC PB
The figures are not eliminated.
101
Mutual funds per product type Wealth Management, Jun 2008 (Mar 2008)
35.5%
27.5%
12.0%
25.0%
Equity funds 35.5% (35.8 %)
Fixed income funds 25.0% (24.8 %)
Balanced funds 12.0% (11.8 %)
Alternative funds 27.5% (27.6 %)
Total amount SEK 496bn (SEK 497bn)
Note: Key Asset Mgmt is included from Q1-08
102
Swedish Mutual Funds MarketNet sales and SEB market share
-25
-5
15
35
55
75
95
115
2001 2002 2003 2004 2005 2006 2007 Q22008 0
10
20
30
40
50
60
70
Total Net Sales, SEKbn SEB share, %
%N/A
Source: Svensk Fondstatistik
SEK -28bn
SEBSEK +3,8bn
103
Mutual Funds Net Sales SwedenCumulative Jan 2005 – June 2008, including PPMSEKm
-20,000
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
Jan-05
Maj Sep Jan-06
May Sep Jan-07
May Sep Jan-08
May
SEBSHBRoburNordea
-100%-80%-60%-40%-20%
0%20%40%60%80%
SEB TotalEquity funds Mixed fundsShort bond funds Long bond fundsFund in fund Alternative funds
Distribution per type of fundJan – June 2008
Activity level – Wealth
Source: Svensk Fondstatistik
104
Performance vs. benchmark 2008
6149 49
79
5445
0
20
40
60
80
100
2006 2007 Q2 20080
20
40
60
80
100
AuMexceeding benchmark
No. of portfoliosexceeding benchmark
105
LifeAnders MossbergHead of Life
SEKm Jan – Jun 2008 Δ 2007
Total income 1,808 -3%Total expenses -1,132 8%
Operating profit 676 -18%Change in surplusvalues, net 477 -16%
Business result 1,153 -17%
ROE, %* 27.1 32.7C/I ratio 0.63 0.56
* Based on business result
HighlightsIncome was negatively affected by weak stock markets and higher interest rates
Strong sales volume – up 11%
Unit-linked fund values down 7% from start of year to SEK 126bn.Total assets under management down 8% to SEK 376bn.
Costs up due to:– investments in new markets– higher amortisation of deferred
acquisition costs
Provision of SEK 74m to cover potential future guarantees regarding Nya Liv
A negative one-off SEK 30m relating to penalty fee to Swedish FSA
106
LifeSEKm
Operating profit
0100200300400500
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
0
200
400
600
800
1,000
1,200
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08
Income Expenses
107
Share of income and profit by areaLife, Jan – Jun 2008 – percent of total
62%29%
9%
Sweden
Denmark
International
Income Operating profit
62%
32%
6%
Sweden
Denmark
International
Sweden including central functions etc
108
Results – LifeSEKm
Jan – Jun Jan – Jun Change2008 2007 %
Income unit-linked 975 1,051 -7Income other insurance 612 570 7Other income 221 252 -12Total income 1,808 1,873 -3
Operating expenses -1,191 -1,155 3Other expenses -22 -8 -Change in deferred acquisition costs 81 116 -30Total expenses -1,132 -1,047 8
Operating profit 676 826 -18Change in surplus values, net 477 567 -16Business result 1,153 1,393 -17 Financial effects due to market fluctuations -2,015 696 -Change in assumptions 13 - -Total result -849 2,089 -
109
676
-263 -177 -121 -47
1817316
570
968
1,520
1,802
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Jan-Jun
2008
Operating profit developmentLife, SEKm
110
1
2
2
1
2
SEBRank
Skandia (13)
Hansa (46)
Sampo (27)
Hansa (48)
Main competitor
Strong market position in all marketsMarket shares, gross premium income, unit-linked insurance (%, 2007)
Danica (32)
* unit-linked (Sweden new sales)
37
43
28
17
22
0% 20% 40% 60% 80% 100%
Lithuania
Latvia
Estonia
Denmark
Sweden*
SEB Market share Competitors
111
SEB Trygg Liv, 22
Skandia, 33LF, 8
Swedbank, 10
Folksam, 4
Nordea, 2
SHB, 16
Danica, 4Other, 2
* SPE = Single Premium Equivalent = single + regular x 10
2002 2008
Market shares, Sweden Unit-linked new business*Full year 2002 vs. 12 months to June 2008
Other, 1SPP, 4
SHB, 5
Nordea, 7
Folksam, 9
LF, 10
Swedbank, 11Moderna, 11
Skandia, 14
SEB Trygg Liv, 23
AMF, 3Danica, 4
112
Jan – Jun 2008 Jan – Jun 2007 Change
Unit linked 19,332 18,569 4%
Traditional andSickness/health 5,866 4,085 44%
25,198 22,654 11%
Note: SPE = Single premiums plus regular premiums times ten
Sales (SPE) Life, SEKm
113
0%
20%
40%
60%
80%
100%
2000 2001 2002 2003 2004 2005 2006 2007 Jan-Jun
2008
Traditional andsickness/health
Unit Linked
Note: SPE = Single premiums plus regular premiums times ten
Sales SPE – traditional vs. unit-linkedLife including SEB Pension from 2005 and the Baltics from 2006
114
0%
20%
40%
60%
80%
100%
2000 2001 2002 2003 2004 2005 2006 2007 Jan-Jun
2008
Individual
Corporate
Note: SPE = Single premiums plus regular premiums times ten
Sales SPE – individual vs. corporateLife including SEB Pension from 2005 and the Baltics from 2006
115
27.1
34.931.6
26.7
16.0
2004 2005 2006 2007 Jan-Jun2008
Market ShareSweden, % 34.6 32.4 29.1 22.1 23.1**
Unit-linked insurance sales growthSwedish* sales volumes weighted, SEKbn
*Including Swedish customers of the Irish subsidiary.
** 12 months to Q1 2008.
116
Jul 2007- Full year Full year Full yearJun 2008 2007 2006 2005
New sales (single/10+regular) 3,805 3,689 3,345 3,678
Net present value 1,664 1,775 1,788 1,924Acquisition cost -875 -901 -970 -1,116
New business profit 789 874 818 808
Margin*, % 20.7 23.7 24.5 22.0Swedish market 20.7 22.9
New business profitLife (2005-2006 only Swedish market), SEKm
* Rolling 12-months comparison
117
Jun Dec Dec Dec2008 2007 2006 2005
Equity * 8,244 8,836 8,450 7,696
Surplus value ** 12,902 14,496 12,872 10,765
* Dividend paid; 2008 SEK -1,275 2007: SEK -1,150 2006: SEK -400m.
** Value of in-force business; Net of DAC, including SEB Link (Denmark) from 2005
Embedded valueLife Holding group, SEKm
118
Life, assets under management(net assets)SEKbn
215
311
368395 408
376
0
100
200
300
400
500
2003 2004 2005 2006 2007 2008 Q2
Traditional and Risk Unit-linked
119
Life, premium income grossSEKbn
13
17
31 31
26
15
0
5
10
15
20
25
30
35
2003 2004 2005 2006 2007 2008 Q2
Traditional and Risk Unit-linked
120
-16,000
-12,000
-8,000
-4,000
0
4,000
8,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Year
Income/Costs& CF, SEK
Cost Income Accum cash flow
Net present value after sales costs is 11,000 SEK
Acc op result -592 -540 977* SEK 35,000
Profits generated over timeExample: Occupational pension – regular premium*Total duration of 20 years and premium duration of 15 years
121
Macro Update
122
Sweden: Broader-based weakening
Exports continuing to lose momentum
Falling asset prices will squeeze consumption
Inflation will peak in late 2008
Key interest rate cuts next year
Lower government budget surplus
GDP and Economic tendency indicator
0
1
2
3
4
5
6
7
97 98 99 00 01 02 03 04 05 06 07 080
20
40
60
80
100
120
140
GDP (LHS) Economic tendency indicator (RHS)
Sources: Statistics Sweden, SEB
Index
Year-on-year percentage change
123
Norway: Deceleration from a high level
Weaker global demand slows export growth
Household buying spree fading
Continued tight labour market
Key interest rate has peaked − cuts in 2009
Year-on-year percentage change
Source: Statistics Norway
Mainland GDP and Employment
-4
-2
0
2
4
6
8
90 92 94 96 98 00 02 04 06 08
GDP Employment
124
Finland: Weak growth next year
Decline in confidence in construction and manufacturing
Capital spending and exports will decelerate
Private consumption will gradually slow down
Falling jobless rate, accelerating pay hikes
High inflation this year, lower next year
Index
Source: Reuters EcoWin
Leading indicators
-60
-40
-20
0
20
40
60
80
99 00 01 02 03 04 05 06 07 08
Manufacturing Service Construction
125
Denmark: Sharp slowdown
Surprisingly weak GDP in Q1 – a technical recession
Unemployment turns upwards in the second half of 2008
Continued weak private consumption
Exports being squeezed from several directions
Expansive fiscal policy despite inflation upturn
GDP and Economic sentiment indicator
-2
-1
0
1
2
3
4
5
95 96 97 98 99 00 01 02 03 04 05 06 07 080
20
40
60
80
100
120
140
GDP (LHS) Economic sentiment indicator (RHS)Sources: DG ECFIN, Statistics Denmark
Year-on-year percentage change Index
126
Euro zone: Below trend for two years
Strong GDP in Q1, but exports will loose momentum
No private consumption upturn in sight
Labour market conditions are beginning to soften
Inflation will peak in late 2008
ECB will cut refi rate to 3.50 per cent next year
Year-on-year percentage change
Sources: Eurostat, SEB
GDP and Economic sentiment indicator
0
1
2
3
4
5
96 97 98 99 00 01 02 03 04 05 06 07 080
30
60
90
120
150
GDP (LHS) Economic sentiment indicator (RHS)
Index
127
Baltics: Stagnation in Estonia and LatviaSharp deceleration in Estonia and Latvia; growth in 2008 close to zeroMilder downturn in less overheated Lithuanian economyAnemic domestic demand in Estonia and LatviaExports generally perform rather well, but weakened competitiveness a threatLarge imbalances diminish only slightly:– High inflationary pressure, mainly
oil and food driven, will ease slowly
– Large current account deficits will shrink due to weaker imports
Year-on-year percentage change
Source: Reuters EcoWin
Retail sales
-10
-5
0
5
10
15
20
25
30
35
01 02 03 04 05 06 07 08
Estonia Latvia Lithuania
128
SEB Forecasts GDP (%) Inflation (%)2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Denmark* 3.6 1.9 0.5 0.3 1.4 1.9 1.7 3.6 2.5 2.2Finland* 4.9 4.4 2.2 1.6 1.7 1.3 1.6 3.9 2.8 2.2Norway 4.8 6.2 2.9 1.7 2.2 2.3 0.8 3.8 3.1 2.1Sweden 4.4 2.9 1.4 0.9 1.8 1.4 2.2 3.9 3.2 1.7Germany* 2.9 2.5 1.5 0.9 1.8 1.8 2.3 3.0 2.2 2.0Euro zone* 2.9 2.7 1.2 0.8 1.3 2.2 2.1 3.6 2.3 1.8Estonia* 11.2 7.1 -2.0 1.5 4.0 4.4 6.6 10.5 4.0 3.5Latvia* 12.2 10.3 0.3 1.5 4.0 6.7 10.1 16.1 8.6 5.9Lithuania* 7.7 8.8 5.5 4.0 3.0 3.8 5.8 11.5 8.0 11.0Russia 7.4 8.1 7.5 6.5 6.0 9.7 9.0 13.5 10.0 8.0Ukraine 7.0 7.3 6.0 4.2 4.0 9.1 12.8 22.0 15.0 10.0
Economic forecasts
Sources: National statistical agencies, SEB Nordic Outlook August 2008* Harmonised consumer price index
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