Download - SEB Facts And Figures January December 2008
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www.sebgroup.com
Facts & FiguresJanuary – December 2008
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PageSEB Group 3 – 30Asset quality 32 – 49Bond portfolios 50 – 59Divisional level 60 – 66Merchant Banking 67 – 76Retail Banking 77 – 102Wealth Management 103 – 114Life 115 – 130Macro update 131 – 140
Contents
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SEB has…an attractive platformhigh customer satisfactionresilient income generationseveral leading positions
...a strong customer base2,500 large companies and financial institutions customers 400,000 SME customers5 million private customers
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SEB – the key to North-European markets
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Organisation President & CEO
Annika Falkengren
Group Credits & Group Risk Control
Johan Andersson
Internal Audit
Agneta Brevenhag*
Compliance
Gent Jansson
Wealth ManagementFredrik Boheman
Life
Anders Mossberg
CFO
Jan Erik Back
Group IT
Ulf Thorstensson
Group Operations
Pia Warnerman
Group Staff
Bo Magnusson
Merchant Banking
Magnus Carlsson
Retail Banking
Mats Torstendahl
Group Strategy & Business Planning
Hans Larsson
HR & Org. Dev.
Ingrid Engström
Business Support &
Group Staff
Bo Magnusson,Deputy CEO
* Reports directly to the Board
5
65%
6%3%
4%3%
4%
9%
6%
Share of operating profitJan – Dec 2008
53%27%
7%13%
Retail Banking
Wealth Management
LifeMerchant BankingGermany
Sweden
LithuaniaLatvia
Estonia
Norway
FinlandDenmark
Geography – Adjusted for OtherDivisions – Adjusted for OtherSweden – adjusted for centralisation of CPM portfolio
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Ratings of Skandinaviska Enskilda Banken ABRating target set by SEB's board of directors at AA
Moody’s S&P Fitch DBRS
Bank Senior Rating
Short Term P-1 A-1 F-1 R-1 (middle)
Long Term A1 A A+ AA (low)
Outlook Negative Negative Stable Stable
Last Action Rating action Outlook change Outlook change Unaffected rating
Date April-09 Mar-09 Jul-08 Jul-08
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Key figuresSEB Group
ChangeQ4 Jan-Dec Q3 Q4 Jan-Dec
SEK m 2008 2008 2008 2007 2007
Operating income 12,714 41,140 38% 27% 2%Operating expenses -6,965 -25,407 17% 17% 10%Operating profit 4,028 12,471 59% -12% -27%Net profit 3,507 10,050 86% -7% -26%
Return on Equity, % 17.6 13.1 7.6 -2.6 -6.2Cost / income ratio 0.55 0.62 -0.10 -0.04 0.05Credit loss level, % 0.63 0.30 0.36 0.50 0.19
Basel II - fully implementedTier I capital ratio, % 10.1 10.1 -0.2 -0.2 -0.2Risk-weighted assets, SEK bn 818 818 48 81 81
8
Profit and loss accountQ4 2008 vs. Q4 2007SEK m Q4 Q4 Change Excluding
2008 2007 % portfoliosNet interest income 5,513 4,375 26Net fee and commissions 3,790 4,129 -8Net financial income 1,723 420Net life insurance income 516 766 -33Net other income 1,172 345
Total operating income 12,714 10,035 27 17%Staff costs -4,597 -3,787 21Other expenses -1,968 -1,782 10Depreciation of assets -400 -359 11
Total operating expenses -6,965 -5,928 17Gain/loss tangible/intangible assets 2 787 -100Net credit losses etc -1,723 -313
Operating profit 4,028 4,581 -12 -24%Net profit 3,507 3,757 -7 -19%
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Profit and loss accountQ4 2008 vs. Q3 2008SEK m Q4 Q3 Change Excluding
2008 2008 % portfoliosNet interest income 5,513 4,553 21Net fee and commissions 3,790 3,754 1Net financial income 1,723 247Net life insurance income 516 504 2Net other income 1,172 163
Total operating income 12,714 9,221 38 41%Staff costs -4,597 -3,752 23Other expenses -1,968 -1,820 8Depreciation of assets -400 -398 1
Total operating expenses -6,965 -5,970 17Gain/loss tangible/intangible assets 2Net credit losses etc -1,723 -725 138
Operating profit 4,028 2,526 59 71%Net profit 3,507 1,886 86 97%
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Profit and loss accountJan – Dec 2008 vs. Jan – Dec 2007SEK m Jan – Dec Jan – Dec Change Excluding
2008 2007 % portfoliosNet interest income 18,710 15,998 17Net fee and commissions 15,254 17,051 -11Net financial income 2,970 3,239 -8Net life insurance income 2,375 2,933 -19Net other income 1,831 1,219 50Total operating income 41,140 40,440 2 0% Staff costs -16,241 - 14,921 9Other expenses -7,642 - 6,919 10Depreciations/amortisations -1,524 - 1,354 13Total operating expenses -25,407 - 23,194 10Gain/loss tangible/intangible assets 6 788 -99Net credit losses etc -3,268 - 1,016Operating profit 12,471 17,018 -27 -28%Net Profit 10,050 13,642 -26 -27%
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SEB GroupIncome, Expenses and Operating profit, SEK m
02,0004,0006,0008,000
10,00012,00014,000
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
Q3-08
Q4-08
Excluding portfolios Income Expenses
Operating profit
-2 000
0
2 000
4 000
6 000
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
Q3-08
Q4-08
*
* One-off charges of SEK 890m in Q4 2005 ** Including sales of Baltic properties in Q4 2007 of SEK 785m
**
*
12
15,998
18,710
796481
823
1,218
-606
Jan-Dec2007
Lendingmargin
Lendingvolume
Depositmargin
Depositvolume
Funding &other
Jan-Dec2008
Net interest income analysisSEB Group Jan – Dec 2008 vs. Jan – Dec 2007SEK m
13
4,375
5,513
15
343143
180
457
Q4 2007 Lendingmargin
Lendingvolume
Depositmargin
Depositvolume
Funding &other
Q4 2008
Net interest income analysisSEB Group Q4 2008 vs. Q4 2007SEK m
14
4,553
5,513
253147
-331
80
811
Q3 2008 Lendingmargin
Lendingvolume
Depositmargin
Depositvolume
Funding &other
Q4 2008
Net interest income analysisSEB Group Q4 2008 vs. Q3 2008SEK m
15
Net interest and Net fee and commission incomeSEB Group, SEK m
0
1,000
2,000
3,000
4,000
5,000
6,000
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
Q3-08
Q4-08
Net interest income Net fee and commissions
16
Fee and commission incomeGross quarterly development Q1 2004 – Q4 2008 SEB Group, SEK m
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
-500
0
500
1,000
1,500
2,000
Net financial income Net life insurance income Net other income
Net financial, Life insurance and Other incomeQuarterly development Q1 2004 – Q4 2008 SEB Group, SEK m
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 – Q4 2008* SEB Group, SEK m
* Include capitalisation of acquisition cost in Life from Q1 2005 – onwards** One-off charges of SEK 890m in Q4 2005 and 600m in Q4 2008
**
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25,12223,194
25,407
1,004
1,691 170
-937
768
-483
Jan-Dec2007
Inflation Organicgrowth +
Acq
Depreciation Variablesalaries
Cost beforeefficiency
gains
Efficiencygains
Redundancycost
Jan-Dec2008
19
SEK 1,029m from the start
of 2007
Cost managementTotal expenses, Jan-Dec 2008 vs. Jan-Dec 2007
20
Return on equitySEB Group, per cent
21.1
14.214.715.8
20.8
13.1
19.3
2004 2005 2006 2007 2008
Excluding portfolios Return on Equity
21
0.65 0.650.58 0.57
0.62
0.550.60
2004 2005 2006 2007 2008
C/I ratio Excluding portfolio losses
Cost/income ratioSEB Group
22
Basic earnings per shareSEB Group, SEK
21,83
15,78
10,8312,58
18,72
14,66
19,97
2004 2005 2006 2007 2008
Excluding portfolios Earnings per share
23
Operating profit, 12 months rolling SEB Group*, SEK m
* Excluding one-off charges
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
Q3-08
Q4-08
Income
Expenses
Operatingprofit
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Impact from exchange rate fluctuationsSEB Group
SEK m F-y 2008 H2/H1-08 Q4/Q3-08Income 509 380 305Expenses -293 -250 -210Operating profit 150 45 10SEK bnLoans to the public 78 59Deposits to the public 64 48RWA- Basel I 80 60Balance sheet 209 156
EUR period end
8.00
8.50
9.00
9.50
10.00
10.50
11.00
11.50
12.00
Jan2008
Feb2008
Mar2008
Apr2008
May2008
Jun2008
Jul2008
Aug2008
Sep2008
Oct2008
Nov2008
Dec2008
5.50
6.00
6.50
7.00
7.50
8.00
8.50
Jan2008
Feb2008
Mar2008
Apr2008
May2008
Jun2008
Jul2008
Aug2008
Sep2008
Oct2008
Nov2008
Dec2008
USD period end
25
Assets under managementSEB Group, SEK bn
Assets under management year-end 2007 1,370Inflow 295 (14%)Outflow -261 (29%)Acquisition/disposal net 17 Change in value -220 (-523%)
Assets under management year-end 2008 1,201 ** Of which:Retail Banking 74Wealth Management 1,142Life 346
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SEB Group net inflow AuM Jan – Dec 2008, SEK bn
43.0
34.3
2.31.3
-11.6
-0.7
Sweden Other Nordic Germany Baltic countries& Poland
Other & Elim Group
27
Balance sheet Dec 2008 Sep 2008 Dec 2007
Cash and balances with central banks 44,852 18,733 96,871Loans to credit institutions 266,363 300,591 263,012Loans to the public 1,296,777 1,226,633 1,067,341Financial assets at fair value 635,454 620,099 661,223Available-for-sale financial assets 163,115 171,464 170,137Held-to-maturity investments 1,997 2,067 1,798Investment in associates 1,129 1,387 1,257Tangible and intangible assets 29,511 27,163 24,697Other assets 71,504 50,154 58,126
Total assets 2,510,702 2,418,291 2,344,462Deposits by credit institutions 429,425 399,940 421,348Deposits and borrowings from the public 841,034 794,266 750,481Liabilities to policyholders 211,070 206,473 225,916Debt securities 525,219 554,257 510,564Financial liabilities at fair value 295,533 248,142 216,390Other liabilities 71,565 90,500 97,519 Provisions 1,897 1,378 1,536Subordinated liabilities 51,230 45,736 43,989Total equity 83,729 77,599 76,719
Total liabilities and equity 2,510,702 2,418,291 2,344,462
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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 2008
Deposits to loans ratio
29
Subordinated debt 3%
Mortgage covered bonds Germany
3%
Senior debt 2%
Deposits – General public 42%
Schuldscheins and Registered bonds
3%
Public covered bonds Germany
7%
Deposits – Central banks 7%
Commercial paper/ Certificates of deposit 8%
Mortgage covered bonds Sweden 10%
Deposits – Financial institutions 15%
Funding structureSEB Group, Dec 2008SEK 1,787bn
* Over collateral within cover pools SEK 48bn, which may be used for further covered bond issuance or pledged for central bank borrowing.
30
Net liquidity position across maturities31 Dec, SEK bn
6-8 months matched funding, i.e. based on no access to capital markets, no refinancing of debt to credit institutions, issued bonds or subordinated capital; and moderate reduction of business activities.
-40
-20
0
20
40
60
80
100
120
140
1 week
2 weeks
4 weeks
2 months
3 months
4 months
5 months
6 months
6-7m
7-8m
9 months
9-10m
10-11m
12 months
Year-end 2008 SEB is match-funded approx.
6-8 months
SEK bn
31
7.9 8.0 7.8 7.5 8.29.9 10.1
12.1
10.5 10.2 10.3 10.8 11.512.6
14.6
12.8
Dec2002
Dec2003
Dec2004
Dec2005
Dec2006
Dec2007
Dec2008
Dec2008
Total capital ratio, %
Tier I capital ratio, %
Capital adequacy SEB Group
SEK bnCapital base 52.7 54.7 58.7 76.2 85.8 93.0 100.3 121.0Risk-w. Assets 503 535 570 704 741 737 818 818
Basel I 9,3%
Basel I 7,3%
Basel I 1,127
Basel II(without transition rules)
*
* Proforma after capital measures
32
Asset quality
33
Credit exposure On and off balance, SEK 1,934bn
15%
40%
14%
6%
25%
Property Management
Public Administration
BanksCorporates
Households
By sector
34
Credit exposure On and off balance, SEK bn
Dec 2008 (Dec 2007) Swedish Other German Baltic Total Nordic*
Corporates 391 (293) 175 (123) 120 (72) 95 (83) 782 (571)
Property Management 105 (82) 22 (18) 104 (87) 32 (26) 262 (212)
Households 269 (248) 45 (45) 104 (87) 68 (55) 486 (434)
Public Administration 32 (16) 2 (3) 79 (66) 6 (3) 119 (88)
Total non-banks 797 (637) 244 (189) 407 (312) 200 (166) 1,649 (1,304)
Banks 175 (152) 41 (35) 68 (58) 2 (3) 286 (248)
Total 972 (790) 285 (223) 475 (369) 202 (169) 1,934 (1,552)
* Incl. other
Currency effect, SEK bn +41 +61 +27 +129
35
Dec -05 Dec -06 Dec -07 Sep -08 Dec -08Corporates 494 484 571 720 782
Property Management 192 192 212 245 262
Households 319 374 434 469 486
Public Administration 125 97 88 113 119
Total non-banks 1,130 1,146 1,304 1,547 1,649Banks 198 169 248 258 286
Total 1,328 1,315 1,552 1,805 1,934
Credit exposure On and off balance, SEK bn
36
Credit exposure – householdsSEK bn
240 269 330 37179 105
104 115
Dec 2005 Dec 2006 Dec 2007 Dec 2008
Mortgage Other434
319 374
486
37
186219 227 235 235 236
55 67 68 70 72 79
28 44 45 47 50 55
68
73 7679 78 78
27 20 20 21 22 25
1010 11 11 11 12
Dec'06
Dec'07
Mar'08
Jun'08
Sep'08
Dec'08
Dec'06
Dec'07
Mar'08
Jun'08
Sep'08
Dec'08
Dec'06
Dec'07
Mar'08
Jun'08
Sep'08
Dec'08
Mortgage Other
Households credit portfolioSEK bn
Nordic Germany Baltics
3838
Corporate credit exposure – by industrySEB Group, SEK bn
494 484
571
782
Dec2005
Dec2006
Dec2007
Dec2008
12%
11%
10%
19%3%
29%
16%
Finance and insurance Wholesale and retailTransportation Other service sectorsConstruction ManufacturingOther
39
40.3%
34.5%
3.4%
2.8%
6.4%
8.1%3.3% 1.2%
Sweden Germany EstoniaLatvia Lithuania Other NordicOther European Other
Property management – by geography*SEB Group, SEK bn
101 111 137169
90 8175
93
Dec 2005 Dec 2006 Dec 2007 Dec 2008
Commercial Multi-family
192 192212
262
* By obligor’s domicile
40
0.8%
1.4%
0.3%
2.8%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Dec'03
Mar'04
Jun'04
Sep'04
Dec'04
Mar'05
Jun'05
Sep'05
Dec'05
Mar'06
Jun'06
Sep'06
Dec'06
Mar'07
Jun'07
Sep'07
Dec'07
Mar'08
Jun'08
Sep'08
Dec'08
SEB Group Germany Nordic Baltic
* Impaired loans gross* *Excluding Banks
Impaired loan volumes* % of Credit Exposure**
41
Impaired loans and reservesSEB Group, SEK m
Dec 2005 Dec 2006 Dec 2007 Dec 2008Impaired loansNon-performing, gross (60 days) 7,957 7,123 7,619 12,963Performing, gross 1,144 1,403 772 948Impaired loans, gross 9,101 8,526 8,391 13,911Specific reserves 4,787 4,234 3,787 5,022Collective reserves 2,283 2,170 2,602 4,197Off-balance sheet reserves 268 215 209 251Total reserves 7,338 6,619 6,598 9,470Reserve ratio 77.7% 75.1% 76.1% 66,3%
42
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2003 2004 2005 2006 2007 2008Germany Baltics Nordics SEB Group
Level of net credit losses, %Estonia 1.17Latvia 1.43Lithuania 1.26.Baltics 1.28
43
Credit losses and build up of reserves SEB Group, SEK m
Sum Average/ Jan – Dec Jan – Dec Change8 quarters quarter 2007 2008
Net credit losses, quarterly 2007 – 2008ProvisionsNet collective provisions -1,693 -212 -390 -1,303 -913Specific provisions 2,371 -296 - 653 -1,718 -1,065Reversals of specificprovisions no longer required 741 93 405 336 -69Net provisions for contingent liabilities -48 -6 8 -56 -64Net provisions (build-up of reserve) -3,371 -421 - 630 -2,741 -2,111Write-offsTotal write-offs -2,823 -353 - 1,395 -1,428 -33Reversal of specific provisionsutilized for write-offs 1,410 176 711 699 -12Write-offs not previously provided for -1,413 -177 - 684 -729 -45Recovered from previous write-offs 532 67 293 239 -54Net write-offs -881 -110 - 391 -490 -99
Net credit losses -4,252 -532 - 1,021 -3,231 -2,210Change in value of seized assets -32 -4 5 -37 -42Net credit losses incl change in value -4,284 -536 -1,016 -3,268 -2,252
44
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Net credit losses, quarterly 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008
ProvisionsNet collective provisions -89 212 -114 -220 -71 15 -112 11 -318 -884Specific provisions -124 -455 -245 -77 -100 -231 -190 -409 -331 -787Reversals of specific provisions no longer required 133 173 75 87 80 163 44 79 71 142Net provisions for contingent liabilities 1 10 31 -7 8 -24 1 2 -23 -36
Net provisions (build-up of reserve) -80 -60 -253 -217 -83 -77 -257 -317 -601 -1,566
Write-offsTotal write-offs -334 -444 -243 -240 -350 -562 -332 -367 -265 -464Reversal of specific provisionsutilized for write-offs 196 221 124 131 214 242 201 217 71 210Write-offs not previously provided for -138 -223 -119 -109 -136 -320 -131 -150 -194 -254Recovered from previous write-offs 81 62 135 43 30 85 24 19 79 117
Net write-offs -57 -161 16 -66 -106 -235 -107 -131 -115 -137
Net credit losses -137 -221 -237 -283 -189 -312 -364 -448 -716 -1,703
Change in value of seized assets 1 -1 3 3 - -1 -4 -4 -9 -20
Net credit losses incl change in value -136 -222 -234 -280 -189 -313 -368 -452 -725 -1,723
Credit losses and build up of reserves quarterly developmentSEB Group, SEK m
45
17 22 23 18 21 25 34 39 468 8 94 5
78
1316
1419 23
1014
1613
22
29
95.2
76.4
56.349.8
41.433.6
56.650.0
40.7
Dec'06
Dec'07
Dec'08
Dec'06
Dec'07
Dec'08
Dec'06
Dec'07
Dec'08
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 YTD
+5% +8% 2008 YTD 2008 YTD
Baltic countries – credit exposure On and off balance, SEK bn
46
22 21 21 22 23 21 20 21 22 2539 40 42 45 468 7 8 8 9 5 5 5 6 7
13 13 13 15 16
19 19 20 20 2314 14 14 14 16
22 23 24 26 29
Dec'07
Mar'08
Jun'08
Sep'08
Dec'08
Dec'07
Mar'08
Jun'08
Sep'08
Dec'08
Dec'07
Mar'08
Jun'08
Sep'08
Dec'08
Banks
PublicAdministrationHouseholds
PropertyManagementCorporates
50.0 51.041.4 42.3
76.4 82.9
49.541.1
78.6
52.344.0
89.3 95.2
49.856.6
SEB Estonia SEB Latvia SEB Lithuania
Baltic countries – credit exposure On and off balance, SEK bn
Growth rates in local currency
+17% +18% +30%
2007 2007 2007
+2%
Q2
+3%
Q2 Q1Q1 Q1 Q2
+4%0% 0% +4%
Q3
-1% +1%
Q3 Q3
+4%
Q4
-3% +1%
Q4 Q4
-5%
47
Baltic countries - asset quality
0
100
200
300
400
500
600
Estonia Latvia Lithuania
Net credit losses Q1 2007 – Q4 2008, SEK m
Impaired Q4 Q1 Q2 Q3 Q4loans, % 2007 2008 2008 2008 2008
Estonia 0.4 0.7 1.6 2.0 2.3Corporate 0.2 0.5 2.0 2.2 2.5Private 0.7 1.1 1.3 1.8 2.1
Latvia 0.5 0.8 1.1 1.6 2.8Corporate 0.3 0.3 0.6 1.0 2.2Private 1.0 1.5 2.0 2.8 3.9
Lithuania 0.8 0.9 1.0 1.2 3.0Corporate 0.8 0.8 0.9 1.1 3.8Private 0.8 1.2 1.4 1.6 1.7
Corporate including Property Management
Impaired loans gross
48
SEB Estonia
SEB Latvia
SEB Lithuania
Total Baltic
Impaired loans, gross
1,287 1,346 2,867 5,499
Specific reserves 380 173 791 1,344Collective 546 603 612 1,761Off balance reserves
0 0 0 0
Total reserves 926 776 1,404 3,105
Reserve ratio 71.9% 57.7% 49.0% 56.5%
Baltic countries Impaired loans and reservesDecember 2008, SEK m
Impaired loans Q4 Q1 Q2 Q3 Q4SEK m 07 08 08 08 08
Estonia 186 334 819 1,019 1,287Corporate 47 132 570 657 799Private 138 202 249 362 488
Latvia 218 301 444 694 1,346Corporate 84 86 152 285 722Private 134 216 292 410 624
Lithuania 573 682 819 1,037 2,867Corporate 398 416 492 633 2,377Private 176 266 327 404 490
49
Estonia Latvia Lithuania Total %
Net write-offs & actual losses 0 -13 -1 -15 0.8
Net new specific provisions -323 -142 -357 -822 46.3
Net new collective provisions -184 -352 -376 -912 51.4
Change in value of seized assets -4 -4 -18 -26 1.5
Net credit losses -512 -512 -752 -1,775
Baltic countries – net credit losses Jan – Dec 2008, SEK m
50
Bond portfolios
51
SEB bond portfolio*31 December 2008
Trading and Treasury etc
Held for trading (MTM over income) Available for sale (MTM over equity)
Investments (MB Credit & PortfolioManagement)
Fixed-income securities portfolio SEK 355bn
133
24
8
222 101
Loans & Receivables (MTM not recorded)
Acc 2007- Mark-to-market losses over– income of SEK 2,838m– equity of SEK 3,605m– Loans & Receivables (MTM not
recorded) of SEK 6,875mThe losses are expected to be recovered over timeFurther volatility from the mark-to-market is expected; however with limited impact on income since investment portfolio classification is:– 76 per cent Loans & Receivables,– 18 per cent Available-for-sale and– 6 per cent Held-for Trading
*Net of short and fully matched positions; excluding holdings in the insurance business
52
*Net of short and fully matched positions; excluding holdings in the insurance business
ABS19%
Financials20%
Covered bonds19%
Cover pool27%
Corp, Gov't etc
15%
Merchant Banking 190Group Treasury 156
Other divisions 9
Total 355
SEB bond portfolio*31 December, 2008, SEK bn
53
Merchant Banking bond portfolios31 December, 2008
Capital Markets and other
21%60%
15%
4%
Corporate bonds Financial institutionsGov't Covered bonds
Volume SEK 59bn
Trading
Volume SEK 133bn
InvestmentsCredit & Portfolio Management
51%
39%
10%Structured credits Financial institutionsCovered bonds
54
Bond investment portfolio – status31 December, 2008 (31 December, 2007)
Structured creditsVolume: SEK 68bn (71)AAA-rating: 93.0% (99.3)No level 3 assetsStill amortising, no impaired assets
Financial institutions Volume: SEK 52bn (55)No level 3 assetsNo impaired assets
Covered bonds etc. SEK 13bn (5)
The unrealised valuation loss on the fixed-income securities reclassified during 2008 amounted to SEK 6,875m at year-end 2008.
2007 2008 Acc Q3 08P/L -1,769 -1,069 -2,838 56 -187
-635-579
-2,907-3,976
-3,605-6,443
-698-2,467
Q4 08
Equity -585MTM (SEK m) -772
55
Bond investment portfolio – financial effects31 December, 2008, SEK m
Structured credits Financial institutions
+ Covered bonds etc accumulated -920
2007 2008 Acc Q3 08-2,126
-2,086
-4,212
27
-187
-160
P/L
Equity
-1,056
-626 -1,460 -271
-1,682
Q4 08-1,070 -262
-2,530 -533
2007 2008 Acc Q3 08-572
-739
-1,311
84
-113
-29
P/L
Equity
-563
-72 -667 -64
-635
Q4 08-9 11
-676 -53
2007 2008 Acc Q3 08P/L -1,769 -1,069 -2,838 56 -187
-635-579
-2,907-3,976
-3,605-6,443
-698-2,467
Q4 08
Equity -585MTM (SEKm) -772
56
Bond investment portfolio – strategy
1. Limit P/L volatility by increasing AFS portfolios and reducing HFT portfolios.2. Use IAS 39 possibility to reclassify holdings to further limit volatility.
30 29
0
26
41
5
ABS Financialinstitutions
Coveredbonds etc.
Q4 07 Q4 08
Held for trading (MTM over income)
Available for sale (MTM over equity)
SEKbn
7 413
45
0350
56
ABS Financialinstitutions
Coveredbonds etc.
Loans and Receivables(MTM not recorded)
57
Distribution of bond investment portfolio31 December, 2008
Financial institutionsSEK 52bn
Structured creditsSEK 68bn
US35%
ES7%
UK16%
DK6% IT
5%NL7%
Other2%
Pan Europé22%
FR 8%
IT 6%
NL 7%
Other 15%
FI 2%SE 4%DE 2%
US 26%
UK 13%
ES 17%
58
Main characteristics of structured credits portfolio 31 December, 2008
A high quality investment portfolio initiated 1998 with fixed-income securities eligible as central bank collateral
655 positions, well diversified across products, asset classes and geographies
93.0% of the portfolio is rated Aaa/AAA, only 1.8% below investment grade– Since the summer 2007, 60 of 655
positions have been downgraded
Mark-to-market prices applied to allpositions - no level 3 assets
Current average expected maturity ~3,5 years
Current annual amortisation rate is SEK ~10bn
CMBS 7%
CMO 13%
RMBS prime 33% RMBS
Non prime 5%
CLO 19%
CDO 7%
ABS 16%
Structured creditsSEK 68bn
59
Bond investment portfolioStructured credits – rating composition (S&P, Moody’s and Fitch)Outstanding volumes, 31 December, 2008
1.8% 1.3% 0.5%3.5%
93.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AAA AA/A BBB BB/B CCC/CC
Q1-08 Q2-08 Q3-08 Q4-08
60
Divisional level
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.
61
0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000
Life
WealthManagement
Retail Banking
MerchantBanking
Jan-Dec 2008
Jan-Dec 2007
Operating profit per divisionJan – Dec 2008 vs. Jan – Dec 2007SEK m
Changevs. Jan-Dec 2007
22% (9%)
-29%
-24%
-41%
ROEJan-Dec 2008
22.3% (25.0%)
12.7%
21.9%
12.5%
Excl. portfolio losses
Income Op.profitSweden: +5% -1%Germany: -3% -50%Estonia: +7% -49%Latvia: -5% -77%Lithuania: +5% -53%Kort: +8% -15%
62
VolumesPublic lendingSEK bn
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42007 2007 2007 2007 2008 2008 2008 2008
MB 465 492 459 483 526 531 606 645Retail Banking 468 483 493 513 518 545 561 586RB Sweden 256 264 271 279 286 303 307 309RB Estonia 37 39 40 42 42 43 44 48RB Latvia 31 35 34 36 35 36 37 41RB Lithuania 46 50 54 59 60 64 69 76RB Germany 85 81 80 81 81 82 87 95RB Cards 13 14 14 14 14 17 17 17Wealth Management 30 31 33 32 31 29 28 28Life - - - - - - - -Other/Elim 54 42 36 39 24 27 31 38SEB Group 1,017 1,048 1,021 1,067 1,099 1,132 1,226 1,297
Affected by restated volumes
63
VolumesPublic depositSEK bn
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42007 2007 2007 2007 2008 2008 2008 2008
MB 371 384 364 389 409 392 426 433Retail Banking 231 249 249 262 257 264 269 287RB Sweden 130 139 139 145 145 149 151 153RB Estonia 18 20 20 22 20 22 22 25RB Latvia 16 17 17 18 17 18 17 19RB Lithuania 25 26 26 30 28 28 30 32RB Germany 43 46 46 48 47 47 49 58RB Cards - - - - - - - -Wealth Management 47 54 51 53 54 56 52 48Life - - - - - - - -Other/Elim 20 28 43 46 45 46 47 73SEB Group 670 715 707 750 765 758 794 841
64
FTEs, end of quarter
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42007 2007 2007 2007 2008 2008 2008 2008
MB 2,540 2,568 2,550 2,672 2,742 2,760 2,719 2,698 Retail Banking 8,655 8,912 8,807 8,925 8,995 9,325 9,139 8,951RB Sweden 2,742 2,812 2,660 2,736 2,733 2,875 2,738 2,720RB Estonia 1,011 1,095 1,061 1,061 1,048 1,084 1,046 1,036RB Latvia 1,052 1,089 1,117 1,118 1,108 1,122 1,093 1,006RB Lithuania 1,333 1,387 1,428 1,492 1,520 1,579 1,652 1,624RB Germany 1,668 1,699 1,728 1,733 1,802 1,830 1,794 1,746RB Cards 849 830 813 785 784 835 816 819Wealth Management 1,099 1,050 1,064 1,073 1,160 1,143 1,123 1,088Life 1,194 1,203 1,199 1,218 1,222 1,235 1,250 1,226Other/Elim 5,842 5,886 5,820 5,906 7,091 7,182 7,197 7,170SEB Group 19,330 19,619 19,440 19,794 21,210* 21,645 21,428 21,131
* Whereof 1,039 encompasses the consolidated acquisitions of Factorial bank in Ukraine and Key Asset Management.
65
Summary per division Jan – Dec 2008
Merchant Banking
RetailBanking
WealthManagement Life Other Group
Operating profit, SEK m 8,350 4,262 2,011 1,063 -3,215 12,471
Business equity, SEK bn 27 25.3 ** 6.6 7.5 76.4 *
Return on equity, % 22.3 12.7 21.9 12.5 13.1
Cost / income ratio 0.45 0.61 0.57 0.67 0.62
RWA, SEK bn, Basel II 538 390 44 14 986
RWA, SEK bn, Basel I 613 439 24 51 1,127
Tax Rate 28% 24% 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.
*** As from Jan 2009, the tax rate is 26.3%.
*** ***
66
Summary per division Jan – Dec 2008Without floor
Merchant Banking
RetailBanking
WealthManagement Life Other Group
Operating profit, SEK m 8,350 4,262 2,011 1,063 -3,215 12,471
Business equity, SEK bn 27 25.3 ** 6.6 7.5 76.4 *
Return on equity, % 22.3 12.7 21.9 12.5 13.1
Cost / income ratio 0.45 0.61 0.57 0.67 0.62
RWA, SEK bn, Basel II 463 268 44 43 818
RWA, SEK bn, Basel I 613 439 24 51 1,127
Tax Rate 28% 24% 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.
*** As from Jan 2009, the tax rate is 26.3%.
*** ***
67
RoE and cost/income ratio per division
01020304050
MerchantBanking
Retail Banking WealthManagement
Life* Group
Jan - Dec 2007 Jan - Dec 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 - Dec 2007 Jan - Dec 2008
68
Magnus CarlssonHead of Merchant Banking
Merchant BankingHighlights
Income and operating profit the highest to date
Strong business volumes and customer demand
Lower investment banking revenues offset by increases in commercial banking
Credit loss provisions increase from a low level
– in general asset quality remains stable
– continued conservative approach to provisioning
SEK m Jan – Dec 2008 Δ 2007
Total income 16,828 12%Interest, net 7,414 32%Commission, net 5,248 -12%Financial, net 3,625 39%
Total expenses -7,579 -3%Credit losses, net -904 177%Operating profit 8,350 22%
RoE, % 22.3 18.7C/I 0.45 0.52
69
Merchant Banking SEK m
0500
1,0001,5002,0002,5003,0003,5004,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Operating profit Excluding portfolios
01,000
2,0003,0004,0005,000
6,0007,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Excluding portfolios Income Expenses
70
47%
34%
19%
Share of income and result by areaJan – Dec 2008, per cent of total
Income Operating profit
51%32%
17%
Trading and Capital Markets
Global Transaction Services
CorporateBanking
Trading and Capital Markets
Global Transaction Services
CorporateBanking
71
Trading and Capital MarketsSEK m
0300600900
1,2001,5001,8002,1002,4002,700
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Operating profit Excluding portfolios
0500
1,0001,5002,0002,500
3,0003,500
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Excluding portfolios Income Expenses
72
Trading and Capital Markets– focus on client driven activities
44%36%26% 28% 33% 38% 41%
63%46%50%
44% 46% 59%44%
45%
19%
12%8%22% 15% 11%3%
6%
21%
6%11%8% 7%
5% 8%
Q1 -07
Q2 Q3 Q4 Q1 -08
Q2 Q3 Q4
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
Continued strong results in FX
Lower volumes but increased market shares in Equities
Normalisation of results in fixed income units
-2%
-3%
73
Operating profit
0200400600800
1,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
0200400600800
1,0001,2001,4001,6001,8002,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Income Expenses
Corporate Banking SEK m
74
Operating profit
0
100
200
300
400
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
0100200300400500600700800900
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Income Expenses
Global Transaction Services SEK m
75
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
160,000
180,000Assets under custody, SEK bn No of transactions/day
76
Market Shares Nordic Stock Exchanges *Jan – Dec 2008
*Source: The Nordic Stock exchanges**Rank based on announced deals. All Nordic involvement. Source: Thomson Reuters
3.9%
4.3%
5.2%
5.4%
9.2%
Danske Bank
Carnegie
MorganStanley
SHB
SEB
Nordic M&A**
Jan – Dec 2008 (EUR m)
Merchant BankingInvestment banking rankings
9,762
12,978
13,327
16,574
18,987
SEB
UBS
MorganStanley
DeutscheBank
JP Morgan
14 Deals
16 Deals
15 Deals
19 Deals
37 Deals
77
Merchant Banking – Recent rankingsJanuary 2009
Best Trade Finance bank, Nordic Region, Sweden, Latvia and LithuaniaBest Overall Bank for Cash Management, Nordic RegionBest Bank for Liquidity Management, Nordic RegionBest Bank for Risk Management, Nordic Region
February 2009 Best Arranger Nordic Loans 2008
October 2008 No. 1 Globally for Overall Customer Satisfaction regarding Cash ManagementBest for Real Estate Commercial Banking in the Nordic and Baltic region
January 2009 Top rated in Central and Eastern Europe
January 2009 Best Equity House in the Nordic region
January 2009 Best Cash ManagemenBest Financial Supp
t Bank, Nordic Regionly Chain Bank, Nordic Region and Eastern Europe
Thomson Rueters Extel September 2008 Best Trade Bank in Northern Europe & Scandinavia
July 2008 Best M&A House in the Nordic & Baltic region
July 2008 Best derivatives dealer in Sweden
June 2008 Best research house in the Nordic countries
April 2008World’s Best Developed Market Banks 2008, no. 1 in SwedenWorld’s Best Emerging Market Banks 2008 Central and Eastern Europe, no. 1 in Latvia and Lithuania
February 2008 Best Arranger Structured Products, Sweden
January 2008 Best Corporate Finance House in the Nordic Region* * Survey executed every 2nd year
78
Retail BankingHighlightsMats Torstendahl
Head of Retail Banking
SEK m Jan – Dec 2008 Δ 2007
Total income 17,032 3%Interest, net 10,750 11%Commission, net 5,641 -9%
Total expenses -10,392 6%Credit losses, net -2,380 233%Operating profit 4,262 -29%
RoE, % 12.7 18.8C/I 0.61 0.59
Stable income, despite turbulent year– NII +11% vs. 2007 offsets low
security related feesCost growth affected by currency effects, Baltic real estate sale and higher pension costProfit before credit losses stable (-1% vs 2007)
Decrease in operating profit driven by increased provisions, mainly in the Baltic countries and Cards
Risk management and cost key focus areas across all business areas
79
Retail BankingSEK m
Operating profit
0
500
1,000
1,500
2,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Income Expenses
80
Share of income and result by areaJan – Dec 2008, per cent of total
38%
19%8%
7%
13%
15%
Germany
Latvia
Estonia
SwedenLithuania
Cards
Income
17%
13%
4%7%
3%
56%
Germany
Latvia
Sweden
Lithuania
Cards
Estonia
Operating profit
81
Business volume development by areaSEK bn Q4 2008 change vs. Q4 2007 (local currency)
58
29
31
23
68
18
12
17
71
241
Lithuania
Latvia
Estonia
Germany
Sweden 8%
0%
4%
5%
28%
8%
0%
-3%
2%
5%
Mortgages Other lending
32
19
25
58
152
Deposits
5%
4%
-2%
-10%
-6%
Note: Figures for Estonia, Latvia and Lithuania include SEB:s large corporate business volumesSwedish Other lending growth adjusted for transfered leasing volumes
82
41%13%25%21%
Transaction account privateTransaction account corporate & publicSavings account privateSavings account corporate & public
Deposit breakdownPercent of total deposits, Dec 2008
45%
24%
21%
10%
Retail Total
Estonia
Sweden Germany
Latvia Lithuania
52%
9%
23%
16%
47%
2%
3%
48%
22%
17%
35%
26%
24%
18%
37%
21%
38%
11%
27%
24%
83
Development of lending market shares – Baltics Per cent, Jan 2005 – Dec 2008
* Sampo as per Q1 2008Swedbank as per Q2 2008
SEBSwedbankDnB NordParex BankaSampo/Danske bankNordea
Estonia*
0%
10%
20%
30%
40%
50%
Q206
Q4 Q207
Q4 Q208
Q4
Latvia
0%
10%
20%
30%
40%
50%
Q206
Q4 Q207
Q4 Q208
Q4
Lithuania
0%
10%
20%
30%
40%
50%
Q206
Q4 Q207
Q4 Q208
Q4
84
Retail SwedenHighlightsSEK m Jan – Dec 2008 Δ 2007
Total income 6.484 5%Interest, net 4.726 15%Commission, net 1.490 -15%
Total expenses -3.916 5%Credit losses, net -191 197%Operating profit 2.377 -1%
RoE, % 23.1 24.1C/I 0.60 0.60
Total lending* 308.700 7%Total deposits 152.400 5%
* Adjusted for moved leasing volumes, lending increased with 10%
SEB #1 market position for Swedish household savings (SEB Sparbarometer)
Best SME bank 2008 according to Privata Affärer
Continued growth in mortgages and deposits, +8% and +5% respectively
Stable mortgage margin development during 2008
Growth in attractive client segments, e.g. more than 10 000 new SME clients
85
Business volume developmentRetail Sweden, SEK bn
Mortgages
0
50
100
150
200
250
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
CorporatePrivate
Other lending*
0
50
100
150
200
250
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Deposits
0
50
100
150
200
250
Q205
Q4 Q206
Q4 Q207
Q4 Q2 Q4
* Excluding leasing
86
Market share development Sweden, per cent Corporate
Private
Note: Other lending and deposits=SEB Parent Bank Sweden, i.e. not only Retail Sweden
Mortgages*
0
5
10
15
20
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Other lending
0
5
10
15
20
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Deposits
0
5
10
15
20
25
30
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
* New measurement method from Q4 2007. Lowers the volume market share with approximately 0.2 percentage points
87
Mortgages private marketRetail Sweden, market share, per cent
02468
101214161820
Q105
Q2 Q3 Q4 Q106
Q2 Q3 Q4 Q107
Q2 Q3 Q4 Q108
Q2 Q3 Q4
Sales Volume
* New measurement method from Q4 2007. Lowers the volume market share with approximately 0.2 percentage points
*
88
Mortgages private marketTotal Sweden, volumes and margins
0
50
100
150
200
250
Q12005
Q2 Q3 Q4 Q12006
Q2 Q3 Q4 Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q40.00%
0.25%
0.50%
0.75%
1.00%
1.25%Outstanding volume, SEK bn Average margin
89
Mortgages private marketSweden, customers’ 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 Q3 Q4
FixedFloating
90
Retail GermanyHighlightsSEK m Jan – Dec 2008 Δ 2007
Total income 3,250 -3%Interest, net 1,963 3%Commission, net 1,230 -12%
Total expenses -3,060 1%Credit losses, net -58 -13%Operating profit 134 -50%
RoE, % 2.4 5.0C/I 0.94 0.90
Total lending 94,300 16%Total deposits 58,100 22%
Increased deposit volumes (+4% local currency) combined with stable lending volumes
Increased net interest income did not fully compensate for market effect on securities-related commissions
Costs and credit losses, measured in local currency, lower than in 2007
Profitability remained at an unsatisfactory level
91
Business volume developmentRetail Germany, EUR bn
Mortgages*
0
1
2
3
4
5
6
7
8
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Other lending
0
1
2
3
4
5
6
7
8
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Deposits
0
1
2
3
4
5
6
7
8
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
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
92
New mortgage*
0
50
100
150
200
250
300
350
400
450
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
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
Q4
Insurance
0
20
40
60
80
100
120
140
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
* by Call centre
EUR m EUR m
* incl. prolongation
Sales developmentRetail Germany
93
Retail Estonia
Highlights
Best bank in Estonia 2008 according to The Banker
Lending market shares continued to decrease during 2008, in particular for corporate lending
Mortgage volumes remained stable, while “other lending” decreased slightly during second half of 2008
Strong market shares for long term savings: life insurance 29%, asset management 40%
Stable deposit volumes during 2008
Increased credit provisions
SEK m Jan – Dec 2008 Δ 2007
Total income 1,399 7%Interest, net 939 8%Commission, net 331 -6%
Total expenses -577 21%Credit losses, net -509 138%Operating profit 313 -49%
RoE, % 8.1 15.0C/I 0.41 0.36
Total lending 48,200 +14%Total deposits 25,000 +13%
94
Business volume developmentRetail Estonia, EUR bn Corporate
Private
Mortgages
0
0.5
1
1.5
2
2.5
3
3.5
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Other lending
0
0.5
1
1.5
2
2.5
3
3.5
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Deposits
0
0.5
1
1.5
2
2.5
3
3.5
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Mortgages defined as home loans to private individualsNote: Figures include SEB:s large corporate business volumes
95
Market share developmentRetail Estonia, per cent Corporate
PrivateMortgages
0
5
10
15
20
25
30
35
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Deposits
0
5
10
15
20
25
30
35
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Mortgage market share for home loans to private individuals
96
Retail Latvia
HighlightsHighlightsSEK m Jan – Dec 2008 Δ 2007
Total income 1,274 -5%Interest, net 1,023 3%Commission, net 201 -41%
Total expenses -624 15%Credit losses, net -496 345%Operating profit 155 -77%
RoE, % 4.2 18.2C/I 0.49 0.41
Total lending 41.300 16%Total deposits 18,900 4%
Decreased lending market shares during 2008, stable lending volume development
Strong market shares for long term savings, life insurance 41%, investment funds 49%
Campaign activity focused on investments and savings
Reduction in commission income affected by accounting changes
Increased credit provisions
97
CorporatePrivate
Business volume developmentRetail Latvia, EUR bn
Mortgages
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Other lending
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Deposits
0
1
2
3
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Mortgages defined as home loans to private individuals
Note: Figures include SEB:s large corporate business volumes
98
Market share developmentRetail Latvia, 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
Q4
Deposits
0
5
10
15
20
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
99
Retail LithuaniaSEK m Jan – Dec 2008 Δ 2007
Total income 2,132 5%Interest, net 1,592 5%Commission, net 418 0%
Total expenses -857 15%Credit losses, net -725 479%Operating profit 549 -53%
RoE, % 10.6 21.9C/I 0.40 0.37
Total lending 76,200 28%Total deposits 32,300 9%
Highlights
Best bank in Lithuania 2008 according to The Banker
Decreased lending market shares during 2008, mainly driven by reduced corporate lending share
Strong market positions for long-term savings, e.g. asset management 46%, life insurance 25%
Stable deposit volume development during 2008
C/I remained at a low level, but credit provisions increased
100
Business volume developmentRetail Lithuania, EUR bn Corporate
Private
Mortgages
0
1
2
3
4
5
6
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Other lending
0
1
2
3
4
5
6
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Deposits
0
1
2
3
4
5
6
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
Mortgages defined as home loans to private individualsNote: Figures include SEB:s large corporate business volumes
101
Market share developmentRetail Lithuania, 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
Q4
Deposits
0
5
10
15
20
25
30
35
40
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q4
102
CardsSEK m Jan – Dec 2008 Δ 2007
Total income 2.498 8%Interest, net 505 60%Commission, net 1,955 1%
Total expenses -1,363 3%Credit losses, net -401 201%Operating profit 734 -15%
RoE, % 20.3 29.7C/I 0.55 0.57
Highlights
Strong growth in underlying business
– result before losses +14% despite higher funding costs / interest rates 2008
Several new customer offers launched, e.g. Eurocard Platinum
Eurocard launched in Finland
Increased provisions for credit losses and fraud*
* Credit loss comparison significantly affected by accounting changes (DEL now included in Retail)
103
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 Q3 Q4
SEK bn
Number of cards
2.62.83.03.23.4
Q12005
Q2 Q3 Q4 Q12006
Q2 Q3 Q4 Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q4
Millions
104
Fredrik BohemanHead of Wealth Management
Wealth ManagementHighlights
Revenues stable despite stock market depreciation, down -8% since 2007
Strong net sales 33bn, especially compared to peers driven by Private Banking, Large Institutions and Alternatives
Assets under management. SEK 1,142bn, -11% since year end
The number of FTE:s fell to 1,088 compared to 1,123 in Q3 and 1,073 in 2007
SEK m Jan – Dec 2008 Δ 2007
Total income 4,687 -8%Interest, net 891 6%Commission, net 3,681 -10%
Total expenses -2,659* 9%
Operating profit 2,011 -24%
RoE, % 21,9 34,5C/I 0.57 0.48
*6% of the 9% are disturbing items in a comparison and consists of KAM. Adjusted for this the costs increased with 3%.
105
69%
31%
Private Banking
Institutional Clients
Income
79%
21%
Private Banking
Institutional Clients
2007: 76% vs. 24%
Operating result
2007: 69% vs. 31%
Share of income and result by areaJan – Dec 2008; percent of total
106
Operating profit
0
200
400
600
800
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
0200400600800
1,0001,2001,400
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Income Expenses
Wealth ManagementSEK m
107
Institutional ClientsSEK m
Operating profit
0
200
400
600
800
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
0100200300400500600700800900
1,0001,100
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Income Expenses
108108
Private BankingSEK m
Operating profit
050
100150200250
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
0
100
200
300
400
500
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Income Expenses
109109
39% 38% 38% 39% 39% 39% 40% 40% 40% 41%40%
Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
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
46%
40%
14%
1,181
48%
39%
13%
1,142
Assets under managementper product typeWealth Management, SEK bn
110
1,285
1,142
33
73
-250
Dec 2007 Value Fx Net sales Dec 2008
Assets under managementSEK bnWealth down -11,1% since Y-E. Up 4,2% since November
111
Total net sales per quarterSEK bn
7.6
15.5
6.32.0
8.2 9.0
-2.9
4.1
2.9 2.6
3.55.8
4.9 5.3
3.0
16.4
-5
0
5
10
15
20
25
Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q4
IC PB
2007 2008IC 45,8 17,2PB 13,1 19,0
Note: The figures are not eliminated. Restated transfer of Foundations & Companies from PB to IC.
112
Total amount SEK 444 bn (SEK 514 bn)
27%
31%
14%
28%
Equity funds 27% (43%)
Fixed income funds 28% (24%)
Balanced funds 14% (12%)
Alternative funds 31% (21%)
Note: Key Asset Mgmt is included from Q1-08 but not restated 2007
Mutual funds per product type Wealth Management, Dec 2008 (Dec 2007)
113
Swedish mutual funds marketNet sales and SEB market share
-30
-10
10
30
50
70
90
110
2001 2002 2003 2004 2005 2006 2007 20080
10
20
30
40
50
60
70
Total Net Sales, SEK bn SEB share, %
%N/A
Source: Svensk Fondstatistik
SEK -17,5bn
SEBSEK +6,5bn
114
Activity level – Wealth
Source: Svensk Fondstatistik
-30,000
-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 Sep
SEBSHBRoburNordea
Mutual Funds Net Sales SwedenCumulative Jan 2005 – Dec 2008, including PPMSEK m
Distribution per type of fundJan – Dec 2008
-80%-60%-40%-20%
0%20%40%60%80%
SEB Total
Equity funds Mixed fundsShort bond funds Long bond fundsFund in fund Alternative funds
115
6149
34
79
54
33
0
20
40
60
80
100
2006 2007 20080
20
40
60
80
100
AuMexceeding benchmark
No. of portfoliosexceeding benchmark
Performance vs. benchmark 2008
116
LifeAnders MossbergHead of Life
* Based on business result
SEK m Jan – Dec 2008 Δ 2007
Total income 3,260 -17%Total expenses -2,197 3%
Operating profit 1,063 -41%Change in surplusvalues, net 989 -22%
Business result 2,052 33%
ROE, %* 24.1 36.1C/I ratio 0.67 0.54
Highlights
Positive sales development – up 10%, despite increasingly competitive markets and financial unrest
Lower operating profit mainly due to adverse equity and interest rate development and lower income from the unit-linked business
117
LifeSEK m
Operating profit
0100200300400500
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
0
200
400
600
800
1,000
1,200
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Income Expenses
118
Share of income and profit by areaLife, Jan – Dec 2008, per cent of total
9%
33% 58%
Sweden
Denmark
International
Income Operating profit
48%46%
6%
Sweden
Denmark
International
Sweden including central functions etc
119
Results – LifeSEK m
Jan – Dec Jan – Dec Change2008 2007 %
Income unit-linked 1,903 2,142 -11Income other insurance 788 1,208 -35Other income 569 580 -2Total income 3,260 3,930 -17
Operating expenses -2,461 -2,306 7Other expenses -24 -12 100Change in deferred acquisition costs 288 190 -52Total expenses -2,197 -2,128 3
Operating profit 1,063 1,802 -41Change in surplus values, net 989 1,273 -22Business result 2,052 3,075 -33 Financial effects due to market fluctuations -3,826 -62 -Change in assumptions -139 53 -Total result -1,913 3,066 -162
120
1,063
-263-177 -121 -47
1817316
570
968
1,520
1,802
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Operating profit developmentLife, SEK m
121
Strong market position in all marketsMarket shares, gross premium income, unit-linked insurance (%, 2008)
1
2
2
3
2
SEBRank
Skandia (15)
Hansa (37)
Sampo (35)
Hansa (30)
Main competitor
Danica (41)
* Sweden new sales** Denmark full year 2007
27
18
33
10
24
0% 20% 40% 60% 80% 100%
Lithuania
Latvia
Estonia
Denmark**
Sweden*
SEB Market share Competitors
122
Market shares, Sweden Unit-linked new business,12 months to September 2008 (2007)
Other 0,2% (0,2)
Moderna9,9% (13,5%)
AMF 3,0% (3,1%)
Folksam 8,0% (8,0%)
Danica 3,3% (4,1%)
SHB 4,5% (4,7%)
Swedbank 10,7% (10,5%)
LF 10,4% (10,1%)
Skandia13,9% (13,6%)
SEB Trygg Liv 23,8% (23,6%)
Nordea 7,7% (4,8%)
SPP 4,5% (3,7%)
123
Note: SPE = Single premiums plus regular premiums times ten
Sales (SPE) Life, SEK m
Jan – Dec 2008 Jan – Dec 2007 Change
Unit linked 36,638 35,416 3%
Traditional andSickness/health 12,185 8,923 37%
48,823 44,339 10%
124
0%
20%
40%
60%
80%
100%
2000 2001 2002 2003 2004 2005 2006 2007 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
125
0%
20%
40%
60%
80%
100%
2000 2001 2002 2003 2004 2005 2006 2007 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
126
27.1
34.931.6
26.730.4
2004 2005 2006 2007 2008Market ShareSweden, % 34.6 32.4 29.1 22.1 23.8**
*Including Swedish customers of the Irish subsidiary.
** 12 months to Q3 2008.
Unit-linked insurance salesSweden* sales volumes weighted, SEK bn
127
New business profitLife (2005-2006 only Swedish market), SEK m
Full year Full year Full year Full year2008 2007 2006 2005
New sales (single/10+regular) 3,858 3,689 3,345 3,678
Net present value 1,598 1,775 1,788 1,924Acquisition cost -879 -901 -970 -1,116
New business profit 719 874 818 808
Margin, % 18.6 23.7 24.5 22.0Swedish market 20.8 22.9
128
Dec Dec Dec Dec2008 2007 2006 2005
Equity * 8,827 8,836 8,450 7,696
Surplus value ** 11,549 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, SEK m
129
Life, assets under management(net assets)SEK bn
215
311
368395 408
354
0
100
200
300
400
500
2003 2004 2005 2006 2007 2008
Traditional and Risk Unit-linked
130
Life, premium income grossSEK bn
13
17
31 31
2629
0
5
10
15
20
25
30
35
2003 2004 2005 2006 2007 2008
Traditional and Risk Unit-linked
131
-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
132
Macro Update
133
Overall assessment
Financial stress remains – global recession in both 2009 and 2010
Deflation threats – possibly even in the form of substantial wage moderation – will force new key rate cuts
Fiscal policy must become more proactive to support growth
Major budget deficits on the way
134
Sweden: Deepest slump since the 1990s crisis
Exports continuing to lose momentum
Falling asset prices will squeeze consumption
Falling GDP in 2009 –and weak in 2010 too
Unemployment headed towards 10%
Inflation will decline rapidly – repo rate cuts to 0.50% in April 2009
Expansive fiscal policy and budget deficits
GDP and Economic tendency indicator
-10
12
34
56
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
135
Broad-based slowdown
Rapid upturn in unemployment
Inflation pressure will gradually ease
Sight deposit rate cut to 2.00% in March 2009
Year-on-year percentage change
Source: Statistics Norway
Norway: Rapid deceleration
Mainland GDP and employment
-4
-2
0
2
4
6
8
90 92 94 96 98 00 02 04 06 08
Employment GDP
136
Finland: Gathering clouds
Continued slide in leading indicators –export sector especially hard hit
Private consumption will slow down
Unemployment will rise as inflation decelerates
Budget surplus will shift to deficit in 2010
Index
Source: Reuters EcoWin
Leading indicators
-60
-40
-20
0
20
40
60
80
99 00 01 02 03 04 05 06 07 08Manufacturing sector Service sectorConstruction industry
137
Denmark: The recession is back
Broad decline in confidence indicators
Continued weak private consumption – exports squeezed from several directions
Credit crisis and higher unemployment will push home prices down further
A decline in the repo rate spread
Sources: DG ECFIN, Statistics Denmark
Year-on-year percentage change Index
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)
138
Euro zone: Crisis hitting with full impact
Sources: Eurostat, SEB
IndexEuro zone GDP will fall by at least 2.2% in 2009No private consumption upturn in sightRising unemployment, no inflation threatPublic finances deteriorating on broad frontECB will slash refi rate to 0.50% in May 2009
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)
139
Baltics: Hard landingRecessions in 2009, deep in Latvia and EstoniaUnemployment will climb substantiallySharp decline in wage growth and much lower inflationBudgets will weaken in spite of fiscal austerity measuresAnemic domestic demand will improve current accounts furtherExchange rate risks have decreased after the IMF led Latvian package
Year-on-year percentage change
Source: Reuters EcoWin
Baltic Retail sales
-20-15-10
-505
101520253035
01 02 03 04 05 06 07 08
Estonia Latvia Lithuania
140
Regional GDP forecasts
2007 2008 2009 2010
United States 2.0 1.1 -2.1 1.3
Euro zone 2.6 1.0 -2.2 0.3
United Kingdom 3.0 0.8 -2.0 0.5
Nordic countries 3.1 1.3 -1.3 0.7
OECD 2.6 1.0 -1.2 0.6
World 5.0 3.4 0.9 2.3
141
SEB Forecasts GDP (%) Inflation (%)2007 2008 2009 2010 2007 2008 2009 2010
Denmark* 1.8 0.2 -1.5 0.0 1.7 3.6 1.8 1.8Finland* 4.4 1.8 -1.8 0.3 1.6 3.9 1.2 1.4Norway 3.7 1.9 0.1 1.8 0.8 3.8 1.7 2.1Sweden 2.9 0.8 -1.3 0.6 2.2 3.4 -0.2 0.6Germany* 2.5 1.3 -2.6 0.3 2.3 2.8 0.4 0.8Euro zone* 2.6 0.9 -2.2 0.3 2.1 3.3 0.6 1.0Estonia* 7.1 -2.0 -4.0 -1.0 6.6 10.6 3.9 1.9Latvia* 10.3 -1.8 -7.0 -1.0 10.1 15.3 5.0 3.0Lithuania* 8.8 3.2 -2.0 -2.0 5.8 11.1 8.0 7.0Russia 8.1 6.5 -1.0 3.0 9.0 14.0 9.8 8.5Ukraine 7.3 5.0 -5.0 2.0 12.8 24.5 15.0 10.0
Macro forecasts per country
Sources: National statistical agencies, SEB Economic Research* Harmonised consumer price index