Skandinaviska Enskilda Banken Ab Class A · OMXSTO:SEB_A
Skandinaviska Enskilda Banken Ab Class A — Q3 2024 Earnings Presentation
79 slides from Skandinaviska Enskilda Banken Ab Class A's earnings presentation, Oct 24, 2024
Slide 1: Investor presentation Q3 2024
Investor presentation Q3 2024 Last updated: 29 November 2024
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE THE FOLLOWING APPLIES TO THIS PRESENTATION, ANY ORAL PRESENTATIONS OF THE INFORMATION IN THIS PRESENTATION BY SEB OR ANY PERSON ON ITS BEHALF, AND ANY QUESTION AND ANSWER SESSION THAT FOLLOWS ANY SUCH ORAL PRESENTATIONS. THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION O
Slide 3: Overview
Overview SEB in brief Q3 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 3
Slide 4: SEB at a glance
SEB in brief SEB at a glance Solid market Leading northern European corporate bank with international reach, founded in 1856. position Strong retail franchise in Sweden and the Baltics. Strong operating Operating in economically strong markets, with high proportion of international large environment
Slide 5: Leading market position in economically strong markets
SEB in brief Leading market position in economically strong markets Q3 2024 2023 2022 Finland Return On Equity (ROE) 17.0% 17.9% 14.5% Cost-Income ratio (C/I) 0.37 0.34 0.39 Norway Estonia Sweden Net Expected Credit Losses (ECL) 5bps 3bps 7bps Latvia Lithuania Common Equity Tier 1 ratio (CET1) 19.4%
Slide 6: Stable operating leverage growth over time
SEB in brief Stable operating leverage growth over time… SEK bn 90 Operating income Operating expenses Profit before ECL and imposed levies 60 30 0 1990 Q3 2024 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 Compound annual growth rate (CAGR) 1990 – Q3 2024 2013 – Q3 2024 2017 – Q3 2024 Oper
Slide 7: Explained by high customer centricity
SEB in brief … explained by high customer centricity… Large Corporates Financial Institutions Fixed income Sustainability advice Prospera, Nordics and Sweden 1 Prospera, Nordics and Sweden 1 Prospera, Sweden Prospera, Nordics and Sweden Nordics Nordics Nordics 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2
Slide 8: A diversified business compared to our peers
SEB in brief … a diversified business compared to our peers… Well balanced credit portfolio Diversified income stream Credit exposure (EAD) by sector Operating income by type Corporates Institutions Net interest income Net fee & commission income Real estate management Household mortgages Net financ
Slide 9: Strong risk culture and focus on robust asset quality
SEB in brief … and a strong risk culture and focus on robust asset quality… Risk distribution for SEB’s non-retail corporate portfolio: growing share of investment grade companies 4% Probability of External Rating 11% Category Default (PD) range equivalent 1 Investment grade 0.0 - 0.4% AAA - BBB Sta
Slide 10: Driving low credit losses over time
SEB in brief … driving low credit losses over time… Credit loss level • Average annual credit loss level of 0.13% since 0.92% 2007 • Excluding losses in the Baltics in 2009, average annual credit loss level of 0.09% since 2007 0.30% 0.26% 0.15% 0.11% 0.10% 0.08% 0.09% 0.09% 0.06% 0.07% 0.07% Average
Slide 11: Stable capital generation
SEB in brief … and stable capital generation… Return on risk exposure amount 4.3% 4.1% 3.7% 3.4% 3.2% 3.0% 2.7% 2.6% 2.5% 2.7% Average 2.1% 1.9% 1.6% 2.0% 1.8% 1.7% 1.2% 0.9% 0.2% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Sep -24 Note: net profit as a
Slide 12: Strong financials relative to peers
SEB in brief SEB Nordic peer average … has resulted in strong financials relative peers European peer average Cost efficiency Asset quality Cost/income: 2011-LTM Q2 2024, excl. unusual items Cost of risk: 2011-LTM Q2 2024 70% 1.0% 50% SEB SEB 30% 39% 0.04% 0.0% 2014 2016 2018 2020 2022 2024 2014 201
Slide 13: Competitive shareholder value guided by financial targets
SEB in brief Competitive shareholder value guided by our financial targets Return on Equity ~ 50% 100-300bps competitive with peers Dividend payout ratio of EPS 1 CET1 ratio above requirement (Long-term aspiration 15%) Share repurchases will be the main form of capital distribution when SEB’s capita
Slide 14: Overview
Overview SEB in brief Q3 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 14
Slide 15: Highlights in Q3 2024
Q3 2024 financial update Highlights in Q3 2024 Return on equity 17.0% • Our diversified business model enabled a robust result in a falling interest rate environment Cost income ratio 0.37 • 2024 cost target, now including AirPlus, amounts to SEK ≤ 31.0bn. Underlying cost target of ≤ 29.0bn reiterat
Slide 16: Organisation aligned with strategy
Q3 2024 financial update Organisation aligned with strategy to improve customer and growth focus Organisation as of 1 January 2025 President & CEO Chief Operating Officer Other Group functions2 Corporate & Business & Retail Wealth & Asset Baltic Investment Banking Banking Management Chief Financial
Slide 17: Feedback from SME and retail customers
Q3 2024 financial update Feedback from SME and retail customers Swedish Quality Index (SKI) Long-term trend in advisory service provided by branch offices Corporates Net Promoter Score, rolling 3-month average SEB score Peers in Sweden 1 70 70 1 1 Private advisory Corporate advisory 68 68 2 2 2 80 6
Slide 18: A selection of recent events
Q3 2024 financial update A selection of recent events Acquisition to strengthen Strategic investment in insurtech private wealth and family office offering company Lumera Other notable customer satisfaction surveys in the quarter FX Nordics Nordic Equity External Asset Management Nordics 18
Slide 19: Development of credit and lending portfolio
Q3 2024 financial update Development of credit and lending portfolio Credit portfolio by sector Lending by sector SEK bn QoQ YoY QoQ YoY 1,800 Corporates 0% -2% 0% -2% fx-adjusted 1% 0% 1% 1% 1,600 1,400 1,200 1,000 Households 0% 0% 0% 0% 800 Swedish mortgages 0% 0% 0% 0% 600 400 200 Commercial real
Slide 20: Financial summary YTD 2024
Q3 2024 financial update Financial summary YTD 2024 SEK m Jan-Sep 2024 Jan-Sep 2024 Jan-Sep 2023 excl. excl. AirPlus 1 AirPlus 1 Net interest income 34,431 34,470 35,426 -3% -3% RoE 17.2% Net fee and commission income 17,595 17,237 16,127 9% 7% Net financial income 9,769 9,764 7,606 28% 28% C/I 0.36
Slide 21: Financial summary Q3 2024
Q3 2024 financial update Financial summary Q3 2024 SEK m Q3 2024 Q2 2024 Q3 2023 excl. excl. AirPlus 1 AirPlus 1 Net interest income 11,055 11,611 -5% -4% 12,248 -10% -9% RoE 17.0% Net fee and commission income 6,034 5,936 2% -4% 5,320 13% 7% Net financial income 3,772 2,747 37% 37% 2,594 45% 45% C/
Slide 22: Updated cost target for 2024 including AirPlus
Q3 2024 financial update Updated cost target for 2024 including AirPlus Underlying cost target unchanged Costs 2023 SEK 27.4bn Inflation +950m Investment plan +850m – 1,050m Efficiencies - 400m 2024 BP SEK ≤ 29bn AirPlus running costs Aug-Dec +1,250m Implementation and transaction costs +750m Update
Slide 23: Net interest income development
Q3 2024 financial update Net interest income development Net interest income (SEK bn) Net interest income (SEK bn) Jan-Sep 2024 vs. Jan-Sep 2023 Q2 2024 – Q3 2024 -3% 11.6 35.4 0.2 11.1 34.4 -0.3 -0.3 -0.1 Q2 2024 LC&FI C&PC Baltic Funding & Other Q3 2024 Jan-Sep 2023 Jan-Sep 2024 1 ”Funding & Other
Slide 24: Net fee & commission income development
Q3 2024 financial update Net fee & commission income development Net fee & commissions (SEK bn) Net fee & commissions by income type (SEK bn) Jan-Sep 2024 vs. Jan-Sep 2023 Q3 2022 – Q3 2024 YoY QoQ Net securities commissions (custody, mutual funds, brokerage) 2.4 2.3 2.7 9% +17% +1% Q3-22 Q3-23 Q3-2
Slide 25: Net financial income development
Q3 2024 financial update Net financial income development Net financial income (SEK bn) Net financial income development (SEK bn) Jan-Sep 2024 vs. Jan-Sep 2023 Q3 2022 – Q3 2024. Mean and standard deviation (SD) based on Q4 2020 – Q3 2024 quarterly data NFI Divisions NFI Other 3.8 +28% +1 SD 2.6 1.3
Slide 26: Strong asset quality and balance sheet
Q3 2024 financial update Strong asset quality and balance sheet 2023 September 2024 Asset quality Asset quality Net expected credit loss level 3 bps Net expected credit loss level 2 bps Funding & liquidity Funding & liquidity Customer deposits (SEK) 1,612bn Customer deposits (SEK) 1,941bn Liquidity
Slide 27: Annual sustainability event: Transition in Numbers
Q3 2024 financial update Save the date: 13 November 2024 09:00-12:15 CET SEB’s annual sustainability event: Transition in Numbers We will share the progress regarding our ambitions and goals – a cornerstone of our 2030 Strategy. Stream live at sebgroup.com/transitioninnumbers 27
Slide 28: Operating leverage
Q3 2024 financial update Operating leverage Average quarterly income (SEK bn) Average quarterly expenses (SEK bn) Average quarterly profit before credit losses and imposed levies (SEK bn) 20.6 13.2 9.4 7.4 5.9 3.5 2011 2014 2017 2020 2023 Jan-Sep 2011 2014 2017 2020 2023 Jan-Sep 2011 2014 2017 2020
Slide 29: Overview
Overview SEB in brief Q3 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 29
Slide 30: Well balanced credit portfolio with strong asset quality
Credit portfolio and asset quality Well balanced credit portfolio with strong asset quality Corporate franchise growth strategy has driven credit Strong risk culture resulting in low credit losses over time portfolio development in past decade Credit loss level SEK bn Corporates Households 2,000 0.4
Slide 31: Lending portfolio more sector-diverse than competitors
Credit portfolio and asset quality Lending portfolio more sector-diverse than competitors’ Lending portfolio by industry 1 2023 Q4, total lending excl. banks, reversed repos and collateral margin 100% Public Administration Other 80% Mining and quarrying Hotels and restaurants Electricity, gas and wa
Slide 32: Corporate portfolio focused on large corporates
Credit portfolio and asset quality SEK Corporate portfolio focused on large corporates, diversified across industries 3,095bn 55% Focus on large corporates Industry diversification and low on-balance sheet exposure Corporate exposure by division (excludes real estate) Share of credit portfolio exclu
Slide 33: Conservative approach to real estate lending
Credit portfolio and asset quality SEK Conservative approach to real estate lending 3,095bn 11% Real estate exposure mainly in Sweden and Nordics Closely monitored credit growth As per Q3 2024 Sweden Commercial real estate Residential real estate 9% 2% SEK bn 14% Other Nordic 200 SEK 356bn Baltics 1
Slide 34: SEB's real estate portfolio remains resilient
Credit portfolio and asset quality SEK SEB’s real estate portfolio remains resilient 3,095bn 11% Slight decrease in stage 2 real estate volumes % of real estate loans in Stage 2 and Stage 3 Stage 2 Stage 3 0.1% 20 largest real estate clients resilient 0.1% 0.0% 0.1% 0.1% to higher interest rates 0.1
Slide 35: Household mortgage portfolio of high asset quality
Credit portfolio and asset quality Household mortgage portfolio of high asset quality 22% SEK 3,095bn and based on affordability Solid market fundamentals and underwriting criteria SEB’s Swedish household mortgage lending Low LTVs by global and Growth vs total market , SEK bn regional standards • St
Slide 36: Continued robust credit quality
Credit portfolio and asset quality Continued robust credit quality Stable asset quality ECL allowances by stage and Stage 3 coverage ratio Stage 2 and 3 gross carrying amount, SEK bn SEK bn Stage 1 Stage 2 Stage 2 exposure Stage 3 exposure Stage 3 Coverage ratio, Stage 3 1 60% 12 58% 57% 12.8 48% 10
Slide 37: Macroeconomic scenarios in Q3
Credit portfolio and asset quality Macroeconomic scenarios in Q3 OECD Sweden Three scenarios for ECL modelling GDP growth assumptions Q3 2024 (Q2 2024) Positive scenario: Base scenario: Negative scenario: 20% probability (20%) 60% probability (60%) 20% probability (20%) 3.9% Probability-weighted ECL
Slide 38: Overview
Overview SEB in brief Q3 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 38
Slide 39: Development of CET1 and REA quarter-on-quarter
Capital Development of CET1 and Risk Exposure Amount quarter-on-quarter CET1 buffer development Risk exposure amount development Bps SEK bn 1 15 -5 -2 -6 54 11 12 12 -3 -45 920 924 430 Target buffer 100-300bps 470 Jun Profit 1 REA asset REA asset REA FX 2 AirPlus Other 3 Sep Jun Asset Asset FX AirPl
Slide 40: Development of CET1 and REA year-over-year
Capital Development of CET1 and Risk Exposure Amount year-over-year CET1 buffer development Risk exposure amount development Bps SEK bn 20 217 15 -11 -6 -14 -67 18 -83 -45 919 924 Target buffer 100-300bps 470 430 Sep 2023 Profit 1 Special Share AirPlus Other 2 Sep 2024 Sep 2023 Asset size Asset qual
Slide 41: Strong capital position compared to requirements
Capital Strong capital position compared to requirements CET1 capital ratio Total capital ratio 100-300bps % % CET1 ratio buffer target P2G 470bps 23.6 2.2 T2 Capital conservation buffer 18.9 AT1 2.1 0.5 19.4% 19.4 2.5 Countercyclical buffer CET1 ratio with buffer of 470bps 14.7 1.6 above regulatory
Slide 42: Reasons for management capital buffer
Capital Reasons for management capital buffer Sensitivity to currency fluctuations Sensitivity of Swedish pension surplus As per September 2024 to interest rates SEK EUR USD NOK Pension liabilities DKK GBP Other 60 Surplus Impact of ±5% SEK vs. other 50 currencies is 50bps on CET1 ratio 9% 40 36% Im
Slide 43: Overview
Overview SEB in brief Q3 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 43
Slide 44: Strong credit ratings
Liquidity and funding Strong credit ratings “Stand-alone Rating institute Short term Long term Uplift Oulook rating” Fitch F1+ Aa- AA- 0 Stable Fitch affirmed rating in June 2024. Moody’s changed outlook to positive in March 2024, S&P changed outlook Moody’s P-1 A3 Aa3 3 Positive to positive in Nove
Slide 45: Strong balance sheet structure
Liquidity and funding Strong balance sheet structure Strong balance sheet structure with deposits as primary source of funding Stable structural funding position 30 September 2024 Net Stable Funding Ratio (NSFR) SEK 4,142bn 111% 114% 113% 109% Min. 100% Life Insurance Life Insurance Derivatives and
Slide 46: Strong liquidity position
Liquidity and funding Strong liquidity position High Quality Liquid Assets 30 September 2024, SEK 1,128bn • Liquidity portfolio is invested in high quality liquid assets (predominantly 2% SSA’s and covered bonds) that are 18% Cash & holdings in Central Banks central bank eligible for pledging Treasu
Slide 47: Stable and diversified deposit base
Liquidity and funding Stable and diversified deposit base Deposits SEK bn, quarterly development FX-adjusted Treasury deposits QoQ YTD YoY 2,000 • Well diversified deposit base with Financial 10% 8% 19% proven stable corporate deposit base 1,500 1,000 Corporate 0% 6% 5% through long-term relationshi
Slide 48: Well-balanced long-term market funding profile
Liquidity and funding Well-balanced long-term market funding profile Long-term market funding by product Issuance history SEK bn equivalent, total SEK 635bn, per Q3 2024 SEK bn 41 Covered bonds 1 Senior unsecured debt Covered bonds SEK Senior non-preferred debt Subordinated debt 10 85 17 Covered bon
Slide 49: MREL requirements and available funds
Liquidity and funding MREL requirements and available funds MREL requirement Subordination MREL requirement % of REA (SEK 924bn) % of REA (SEK 924bn) Total available Total required Total available Total required SEK 396bn SEK 330bn SEK 304bn SEK 265bn SP>1yr 9.9% CBR 8.1% SNP>1yr 9.3% SNP>1yr 9.3% S
Slide 50: International long-term bond issuance in 2023-2024
Liquidity and funding = green transaction International long-term bond issuance in 2023-2024 Amount (+/- Type Date Settlement date ISIN CCY Market quote Maturity MCCY) Covered 20-Feb-23 27-Feb-23 XS2592234749 EUR 1,500 MS + 15 4-May-28 Covered 10-May-23 17-May-23 XS2623820953 EUR 1,750 MS + 5 4-Nov-
Slide 51: SEB issues green bonds to finance green lending
Liquidity and funding SEB issues green bonds to finance green lending Green loans linked to one of SEB’s sustainability goals Eligible green asset portfolio by category and geography Sustainability Activity Index, SEK bn 31 December 2023 Green Bond Framework updated in Jan 2022, aligning with EU Tax
Slide 52: SEB's covered bonds and cover pool
Liquidity and funding SEB’s covered bonds and cover pool Outstanding covered bonds Cover pool • 100% Swedish residential mortgages, 30 September 2024 30 September 2024 which historically have had very low credit losses Moody’s rating Aaa Total residential mortgage assets SEK 699bn • More concentrate
Slide 53: Cover pool characteristics
Liquidity and funding Cover pool characteristics Mortgages mainly in three largest and fastest growing city areas in Sweden Type of collateral Interest rate type Regional distribution in Sweden Residential apt bldgs, Fixed rate reset <2y, Larger regional 22% Stockholm 21% cities , 35% region , 41% S
Slide 54: Lowest wholesale funding dependence compared to Nordic peers
Liquidity and funding Lowest wholesale funding dependence compared to Nordic peers Benchmarking Swedish banks’ total funding sources incl. equity 31 December 2023 Equity Deposits Long-term funding Short-term funding Wholesale funding SEB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Note: peers include DNB, Sw
Slide 55: Overview
Overview SEB in brief Q3 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 55
Slide 56: Investing to future-proof our business, 2030 Strategy
Strategy and sustainability Investing to future-proof our business, in line with SEB’s 2030 Strategy Future-proofing customer relationships and profit generation Future-proofing our platform Acceleration Change Partnerships Efficiency 1 2 3 4 • Expand Corporate and • Transform Retail Banking to • Re
Slide 57: A catalyst in the transition to a sustainable society
Strategy and sustainability A catalyst in the transition to a sustainable society Our sustainability objectives A selection of our commitments Net-zero emissions in our lending and investment • The UN Global Compact 2050 portfolios, at the latest 1 • The Principles for Responsible Banking • The Net
Slide 58: Recent sustainability-related activities in Q3
Strategy and sustainability A selection of recent sustainability-related activities in Q3 SEB Greentech VC investing in forestry harvesting company AirForestry’s drone aimed to save up to 0.8 tons of CO2 emissions per hectare and year compared to traditional diesel-based technologies, while also pre
Slide 59: Climate ambitions and goals to ensure our progress
Strategy and sustainability Climate ambitions and goals to ensure our progress Ambitions and goals The Brown, The Green and NZBA sector targets SEB has the power, opportunity and responsibility to impact the world we operate in. Carbon Exposure Sustainability Net-Zero interim As part of our sustaina
Slide 60: The Brown: Carbon Exposure Index
Strategy and sustainability The Brown: Carbon Exposure Index to reduce our fossil fuel credit exposure Goal to reduce our fossil fuel credit exposure in energy portfolio by 45-60% by 2030 SEB fossil fuel credit exposure 2019=100 EUR 11.6bn Net Zero – World – without CCUS 1 >30% decrease Change >70%
Slide 61: The Green: Sustainability Activity Index
Strategy and sustainability The Green: Sustainability Activity Index to accelerate our efforts Ambition to increase average activity 6x-8x by 2030 Sustainability-related financing Sustainable finance advisory Volume, indexed Volume, indexed 800 300 1,000 SEK 299bn SEK 123bn 6x to 8x Q3 2024 Q3 2024
Slide 62: Net-Zero Banking Alliance sector targets
Strategy and sustainability Net-Zero Banking Alliance sector targets • Targets in line or exceeding relevant 1.5°C scenarios • New sector included: shipping • The 7 sectors cover 78% of SEB 2023 financed emissions 1 → Reduced by 48% since 2020 Financed emissions target Status update SEB sector targe
Slide 63: Net-Zero Banking Alliance sector target benchmarks
Strategy and sustainability Net-Zero Banking Alliance sector target benchmarks Oil & Gas: E&P and refining Shipping Power generation 17 peers – Index, 2020=100 (mtCO2e) 7 peers – Index, 2022=100 (g CO2e / tonne nautical mile) 20 peers – g CO2e / kWh Peers’ target range IEA Net Zero 2050 SEB Peers’ t
Slide 64: External ESG ratings
Strategy and sustainability External ESG ratings Rating institute Rating Rating scale AA AAA – CCC 0-10 negligible, 10-20 low, 20-30 22.6 (medium risk) medium, 30-40 high, 40+ severe C A+ – D- B A–D 64
Slide 65: Overview
Overview SEB in brief Q3 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 65
Slide 66: Our home markets: Sweden
Macro environment Our home markets: Sweden GDP development Key ratios Sweden 2023 2024F 2025F 2026F Indexed Q4 2019 = 100 GDP growth (%) -0.3 0.5 2.2 3.1 Sweden Euro area 115 CPIF (%) 6.0 1.8 1.7 2.0 105 Public debt/GDP 31.7 33.0 33.5 34.1 95 Unemployment 1 7.7 8.5 8.8 8.5 85 Q4-2019 Q4-2020 Q4-2021
Slide 67: Deep dive: strong Swedish economy in comparison
Macro environment Deep dive: strong Swedish economy in comparison High level of employment Households’ have a strong asset base National employment level (20-64 years), Q2 2024 Swedish households’ assets and debt (SEK tn), Q2 2024 82% 81% 30 Insurance 77% Funds 75% 75% Bank deposits 20 Equities 71%
Slide 68: Our home markets: Nordics
Macro environment Our home markets: Nordics GDP development Indexed Q4 2019 = 100 Norway Finland Denmark GDP growth (%) 2023 2024F 2025F 2026F 110 Norway 0.5 1.6 1.9 1.2 100 Finland -1.2 -0.5 1.5 1.8 90 Denmark 2.5 2.4 3.0 3.0 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unemployment Annual gro
Slide 69: Our home markets: United Kingdom and Germany
Macro environment Our home markets (LC&FI): United Kingdom and Germany GDP development Indexed Q4 2019 = 100 United Kingdom Germany 110 GDP growth (%) 2023 2024F 2025F 2026F 100 90 United Kingdom 0.3 1.0 1.4 1.5 80 70 Germany -0.3 -0.1 0.8 1.2 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unempl
Slide 70: Our home markets: Baltics
Macro environment Our home markets: Baltics GDP development Indexed Q4 2019 = 100 Estonia Latvia Lithuania GDP growth (%) 2023 2024F 2025F 2026F 110 Estonia -3.0 -0.9 2.2 2.8 100 Latvia 1.7 -0.4 1.8 2.2 90 Lithuania 0.3 2.4 2.8 2.9 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unemployment Annua
Slide 71: Overview
Overview SEB in brief Q3 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 71
Slide 72: Staying true to our capital and cost guidance over time
Appendix Meeting guidance Missing guidance 2007 2013 2019 Costs: increase SEK 1.5-2.0bn Costs: SEK 22.5bn Costs: SEK 2.0-2.5bn 2019-2021 Dividend: n/a Dividend: 40% of net profit over a business cycle * Dividend: 40% of net profit over a business cycle (Covid dividend ban) 2008 2014 2020 Costs: incr
Slide 73: Our balance sheet provides a solid base
Appendix Our balance sheet provides a solid base 2016 30 September 2024 Capital Capital CET1 capital SEK 114bn CET1 capital SEK 179bn (+57%) Annual capital generation 250bps Annual capital generation 400bps (+60%) Capital buffer 190bps Capital buffer 470bps (+147%) Total buffer 440bps Total buffer 1
Slide 74: Financial performance by division in Jan-Sep 2024
Appendix C/I ratio (LHS) Return on business equity (RHS) Financial performance by division in Jan-Sep 2024 LC&FI Aspiration: C&PC Aspiration: Baltic Aspiration: ROBE >13% 30% ROBE >16% 26.2% 30% ROBE >20% 60% 80% 24.6% 80% 45.8% 22.3%21.9%21.4% C/I <45% C/I <40% 18.2% C/I <35% 41.3% 17.8%18.2% 40% 2
Slide 75: Shareholders and dividends
Appendix Shareholders and dividends Dividends paid: payout policy ~50% of net profit SEK m SEB’s largest shareholders SEK m Net profit Total dividend Share buyback 30 September 2024 Share of capital, per cent Investor 21.7 40,000 AMF Pension & Funds 4.9 30,000 Alecta Tjänstepension 4.7 20,000 Swedba
Slide 76: Summary key financials
Appendix Summary key financials Sep 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 20111) 2024 Return on equity, % 2) 17.2 17.9 14.5 13.9 10.3 13.8 13.4 12.9 11.3 12.9 13.1 13.1 11.5 12.3 Cost/income ratio, % 3) 36 34 39 42 45 46 48 48 50 49 50 54 61 62 Net ECL level / Credit loss level
Slide 77: Summary key financials: notes
Appendix Summary key financials: notes Notes: 1) Restated for introduction of IAS 19 (pension accounting). 2) Excl. Items affecting comparability incl. technical impairment (write-down) of goodwill a. 2014: Excluding capital gains of SEK 2,982m (sale of non-core business and shares) b. 2015: Excludi
Slide 78: IR contacts and calendar
IR contacts and calendar Investor Relations Financial calendar Pawel Wyszynski Philippa Allard 2025 Head of IR Head of Debt IR 29 January Annual Accounts 2024 Mobile: +46 70 462 21 11 Mobile: +46 70 618 83 35 E-mail: pawel.wyszynski@seb.se E-mail: philippa.allard@seb.se 11 March Annual and Sustainab
Slide 79: Create value. Act long-term. Build positive relationships.
Create value. Act long-term. Build positive relationships. Positively shaping the future, with responsible advice and capital. Today and for generations to come.
Skandinaviska Enskilda Banken — Q3 2024 Earnings Presentation on 6ix