SEB's first half year - operating profit SEK 8.7bn (7.6)
* Operating profit for January-June 2007 increased by 15 per cent, to
SEK 8,711m. Net profit rose by 17 per cent, to SEK 6,784m.
* Customer business was strong within all areas. Assets under
management as well as lending and deposit volumes reached record
levels.
* Operating income increased by 8 per cent as a result of improved
revenues within all areas.
* Operating expenses rose by 2 per cent, mainly due to
performance-related costs. Underlying costs were unchanged.
* Net credit losses remained low.
* Return on equity was 19.8 per cent (19.8) and earnings per share
increased to SEK 10.02 (8.59).
SEB's second quarter - operating profit SEK 4.6bn (3.9)
* Operating profit for the second quarter of 2007 was SEK 4,554m, an
increase of 17 per cent compared with the corresponding quarter of
2006 and 10 per cent better than the previous quarter. Net profit
increased to SEK 3,522m. Return on equity was 20.7 per cent.
President's comment
During the first half of 2007 business volumes remained strong with
high activity levels in all of SEB's markets. Return on equity
reached 20 per cent despite the Group's increased capitalisation.
Earnings per share increased by 17 per cent compared with the first
half of 2006.
SEB has a strong customer franchise. Over the last year SEB has
actively strengthened customer relations further through increased
pro-activity and more co-ordinated product offerings.
The higher operating profit resulted from a combination of continued
solid income generation and stable costs. Income grew by 8 per cent,
confirming the growth potential of SEB's business mix. Further proofs
of quality are the many top rankings awarded to SEB, especially
within corporate banking. With our dedicated and highly competent
staff we can match much larger competitors in fields such as cash
management, foreign exchange, custody and prime brokerage.
Underlying costs, i.e. excluding performance-related remuneration and
redundancy costs, were stable - a result of a more integrated bank
and of investments in enhanced productivity.
Cost-management will not hinder further investments in SEB's core
areas of strength, which will generate continued organic growth. The
Baltic markets remain attractive despite the macroeconomic situation
which necessitates stringent credit risk management. The strengthened
capital base and enhanced operating model offer opportunities for
complementary add-on acquisitions in SEB's markets across the Baltic
rim.
Top-line growth and cost-management remain the hallmark of SEB. Our
ambition is to be top-ranked in terms of customer satisfaction within
our selected segments in order to reach leadership in financial
performance.
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