* Operating profit for the first quarter 2007 was SEK 4,157m, an
increase of 13 per cent compared with the corresponding quarter of
2006 and 1 per cent better than the previous quarter. Net profit
was SEK 3,262m.
* Business flows were strong within all areas. Assets under
management as well as lending and deposit volumes reached record
levels.
* Operating income increased by 6 per cent compared with the first
quarter last year and was 2 per cent up on the previous quarter.
* Operating expenses were in line with the corresponding quarter last
year and 2 per cent higher than in the previous quarter.
* Net credit losses remained low.
* Return on equity was 19.0 per cent (19.6) and earnings per share
increased to SEK 4.81 (4.22).
President's comment
2007 has started positively. The favourable economic climate
continued to cater for high business activity and strong volume
growth in all of SEB's markets. Return on equity remained close to 20
per cent at the same time as the capital base was strengthened.
Revenue generation was strong and earnings per share increased by 14
per cent on a 12-months basis.
SEB has put more emphasis on high interaction with its customers.
Increased activity among corporate customers and private individuals
resulted in both improved net interest income and commission income,
even though higher volatility in the equity market hampered
investors' risk appetite. High volumes and relatively stable margins
supported revenue growth.
The contribution from SEB's markets outside Sweden was the highest
ever, 57 per cent of the operating profit. Profit growth was
particularly strong in Lithuania, Norway and Denmark. SEB continues
to monitor closely the economic development in Estonia and Latvia
with a focus on long-term quality and return of the businesses.
SEB last year initiated structural measures to achieve leadership in
customer satisfaction and financial performance. This is a long-term
commitment to excellence and SEB is still at an early phase of
realising the full potential of a more integrated SEB. During the
first three months of the three-year efficiency plan, the new Group
structure became operational. It facilitates a more coordinated
customer offering and increases efficiency. This allows more
integrated support functions, which reduces overlaps and increases
quality. As an example, the HR, procurement and premises functions
are now integrated at Group level.
At the same time the operational excellence programme, SEB Way, has
accelerated to streamline both front- and back-office processes and
enhance customer offerings.
The divestments of the Baltic real estate, Union Inkasso and ÅF Bil
are also examples of more focused and streamlined operations.
The development during the first quarter indicates a positive outlook
for 2007. We will continue to invest in growth areas, partly through
reallocation of resources. SEB's ability to continue to grow
organically is strong.
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