Skandinaviska Enskilda Banken Ab Class A · OMXSTO:SEB_A
Skandinaviska Enskilda Banken Ab Class A — Q1 2024 Earnings Presentation
84 slides from Skandinaviska Enskilda Banken Ab Class A's earnings presentation, Apr 24, 2024
Slide 1: Investor presentation Q1 2024
Investor presentation Q1 2024 24 April 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 Q1 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 Norway Finland Key ratios Q1-24 2023 2022 Sweden Estonia United Latvia Complementing our home markets Return on equity 1 17.2% 17.9% 14.5% Denmark Lithuania with an International Network, Kingdom Cost/income 0.35 0.34 0.39 Netherlan
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 Q1 2024 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 Compound annual growth rate (CAGR) 1990 – Q1 2024 2013 – Q1 2024 2017 – Q1 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 1 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: 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 Q4 2023, excl. unusual items Cost of risk: 2011-LTM Q4 2023 1.5% 70% 50% 0.5% SEB SEB 30% 39% 0.05% 2011 2013 2015 2017 2019 2021 2023 201
Slide 12: Competitive shareholder value guided by our 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 13: Overview
Overview SEB in brief Q1 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 13
Slide 14: Highlights in Q1 2024
Q1 2024 financial update Highlights in Q1 2024 Return on equity 17.2% • The strengthening macroeconomic picture in Sweden was partly reflected in an improved market sentiment Cost income ratio 0.35 • Asset quality remained robust with net expected credit losses of 1 basis point CET1 ratio • Return o
Slide 15: Swedish economy expected to have relatively strong development
Q1 2024 financial update Swedish economy expected to have relatively strong development Higher Swedish rate sensitivity headwind turns to tailwind Swedish government expected to utilise fiscal strength New mortgages with an initial rate fixation period of up to one year, (%) 1 Government debt as sha
Slide 16: A selection of recent events
Q1 2024 financial update A selection of recent events Maintained high customer satisfaction Moody’s outlook on SEB changed to positive Continued anti-fraud developments Prospera, customer surveys Issuer credit rating, senior unsecured debt, deposits Examples of possible upcoming initiatives Addition
Slide 17: Continued expansion leading to a diverse geographical footprint
Q1 2024 financial update Continued expansion leading to a diverse geographical footprint Finland Norway Sweden Estonia Latvia Denmark Lithuania New York United Netherlands “A leading northern European Dublin Kingdom Germany Warsaw New Delhi Beijing Shanghai Kyiv corporate bank with Luxembourg Switze
Slide 18: A profitable, cost-efficient and diversified business
Q1 2024 financial update A profitable, cost-efficient and diversified business LC&FI new client income (from Nordic, German and UK expansion) LC&FI total client income SEK 5.3bn, 2023 SEK 14.0bn, 2010 25% 22% 4% 1% 20% 11% Sweden 13% 12% 5% 66% 9% Norway 7% 6% Finland Germany Denmark Norway Finland
Slide 19: Increasing share of investment grade companies
Q1 2024 financial update Increasing share of investment grade companies Non-retail corporates, Sweden Non-retail corporates, outside Sweden 2011–2023 2011–2023 Probability of External Rating 8% 5% 3% Category Default (PD) range equivalent 1 11% Investment 0.0 - 0.4% AAA - BBB grade Standard 0.4 - 1.
Slide 20: Development of credit portfolio
Q1 2024 financial update Development of credit portfolio Credit portfolio by sector Lending by sector SEK bn QoQ YoY QoQ YoY 1,800 Corporates 4% 3% 4% 1% fx-adjusted 0% 1% 1% -1% 1,600 1,400 1,200 1,000 Households 1% 1% 0% 1% 800 Swedish mortgages 1% -1% 0% -1% 600 400 Commercial real estate 2% 3% 2
Slide 21: Financial summary Q1 2024
Q1 2024 financial update Financial summary Q1 2024 SEK m Q1 2024 Q4 2023 Q1 2023 Total operating income 20,682 20,136 3% 19,060 +9% Net interest income 11,765 12,100 -3% 11,297 +4% Net ECL level Net fee and commission income 5,625 5,542 +2% 5,170 +9% 1 bps Net financial income 3,249 2,386 +36% 2,403
Slide 22: Operating leverage
Q1 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) 20.7 13.5 9.4 7.2 5.9 3.5 2011 2014 2017 2020 2023 Q1 2011 2014 2017 2020 2023 Q1 2011 2014 2017 2020 2023 Q1 20
Slide 23: Net interest income development
Q1 2024 financial update Net interest income development Net interest income (SEK bn) Net interest income (SEK bn) Jan-Mar 2024 vs. Jan-Mar 2023 Q4 2023–Q1 2024 12.1 11.8 +4% 0.07 0.10 0.14 0.03 11.3 11.8 Q4 2023 FX-effect Day effect Divisions, Funding & Other Q1 2024 underlying Loans to the public
Slide 24: Net fee & commission income development
Q1 2024 financial update Net fee & commission income development Net fee & commissions (SEK bn) Net fee & commissions by income type (SEK bn) YoY QoQ Jan-Mar 2024 vs. Jan-Mar 2023 Q1 2022–Q1 2024 Net securities commissions (custody, mutual funds, brokerage) 9% 2.7 2.3 2.5 +10% +6% Q1-22 Q1-23 Q1-24
Slide 25: Net financial income development
Q1 2024 financial update Net financial income development Net financial income (SEK bn) Net financial income development (SEK bn) Jan-Mar 2024 vs. Jan-Mar 2023 Q1 2022–Q1 2024. Mean and standard deviation (SD) based on Q1 2020–Q1 2024 quarterly data NFI Divisions NFI Other +35% 2.4 3.2 2.3 +1 SD 3.2
Slide 26: Capital buffer development
Q1 2024 financial update Capital buffer development CET1 buffer development CET1 buffer development Quarter-on-quarter (bps) Year-on-year (bps) Target buffer 100–300 bps Target buffer 100–300 bps 1 1 3 2 1 Profit net of ordinary dividend. 2 “Regulatory changes” consists of 2023 SREP decision (IRB ad
Slide 27: Strong asset quality and balance sheet
Q1 2024 financial update Strong asset quality and balance sheet 2023 March 2024 Asset quality Asset quality Net expected credit loss level 3 bps Net expected credit loss level 1 bps Funding & liquidity Funding & liquidity Customer deposits (SEK) 1,612bn Customer deposits (SEK) 1,899bn Liquidity cove
Slide 28: Appendix
Appendix _
Slide 29: Balance sheet components' sensitivity to policy rate changes
Q1 2024 financial update Balance sheet components’ sensitivity to policy rate changes SEB’s balance sheet Riksbank policy rate change effect on pricing, Jan-22 to Mar-24 Q1 2024 Deposit and mortgage rates are SEB averages Other Other 400 bps 375 bps Cash & Wholesale deposits with funding 339 bps cen
Slide 30: We continue to receive positive feedback from our customers
Q1 2024 financial update We continue to receive positive feedback from our customers 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
Slide 31: Overview
Overview SEB in brief Q1 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 31
Slide 32: 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 10
Slide 33: 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 34: Corporate portfolio focused on large corporates, diversified across industries
Credit portfolio and asset quality SEK Corporate portfolio focused on large corporates, diversified across industries 3,133bn 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 35: Conservative approach to real estate lending
Credit portfolio and asset quality SEK Conservative approach to real estate lending 3,133bn 12% Real estate exposure mainly in Sweden and Nordics Closely monitored credit growth Sweden Commercial real estate Residential real estate 8% 3% SEK bn 15% Other Nordic 200 SEK 368bn Baltics 100 73% Germany
Slide 36: SEB's real estate portfolio remains resilient
Credit portfolio and asset quality SEB’s real estate portfolio remains resilient Stage 2 QoQ-development flat with limited credit losses % of real estate loans in Stage 2 and Stage 3 Stage 2 Stage 3 0.1% 0.1% 20 largest real estate clients resilient 0.0% 0.1% to higher interest rates 0.1% 0.1% 0.1%
Slide 37: Real estate clients working on deleveraging activities
Credit portfolio and asset quality Real estate clients working on deleveraging activities Average capital structure for large real estate companies as per Q4 2023 Large real estate clients “BBB-rated” or lower (~20% of total real estate exposure) Based on SEB’s average client (listed real estate com
Slide 38: Household mortgage portfolio of high asset quality
Credit portfolio and asset quality Household mortgage portfolio of high asset quality 22% SEK 3,133bn 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 39: 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 loans, SEK bn SEK bn Stage 3 loans, gross Stage 2 loans, gross Stage 1 Stage 2 Stage 3 Coverage ratio, Stage 3 12 58% 57% 10 50% 8 45% 48% 40
Slide 40: Macroeconomic scenarios in Q1
Credit portfolio and asset quality Macroeconomic scenarios in Q1 OECD Sweden Three scenarios for ECL modelling GDP growth assumptions Q1 2024 (Q4 2023) Positive scenario: Base scenario: Negative scenario: 20% probability (15%) 60% probability (65%) 20% probability (20%) 2.1%1.1% 2.6%3.4% 2.5% 3.0% 1
Slide 41: Overview
Overview SEB in brief Q1 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 41
Slide 42: Development of CET1 and Risk Exposure Amount quarter-on-quarter
Capital Development of CET1 and Risk Exposure Amount quarter-on-quarter CET1 buffer development Risk exposure amount development Bps SEK bn 3 1 1 18 14 -3 57 -29 -38 -11 926 892 440 Target buffer 100-300bps 420 Dec 2023 Profit 1 REA Asset size REA FX REA market Mar 2024 Dec Asset Asset FX Market Ope
Slide 43: Development of CET1 and Risk Exposure Amount year-over-year
Capital Development of CET1 and Risk Exposure Amount year-over-year CET1 buffer development Risk exposure amount development Bps SEK bn 239 2 44 4 10 -71 29 -58 -6 -23 -126 -43 926 480 Target buffer 100-300bps 420 867 Mar 2023 Profit 1 Special Share Regulatory REA items 3 Mar 2024 Mar 2023 Asset siz
Slide 44: 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 420bps 22.8 T2 2.3 Capital conservation buffer 18.9 AT1 1.6 0.5 18.9% 18.9 2.5 Countercyclical buffer CET1 ratio with buffer of 420bps 14.7 1.5 above regulatory
Slide 45: Reasons for management capital buffer
Capital Reasons for management capital buffer Sensitivity of Swedish pension surplus to Sensitivity to currency fluctuations interest rates SEK EUR USD NOK Pension liabilities DKK GBP Other 60 Impact of ±5% SEK vs. other 50 currencies is 50bps on CET1 ratio 9% 40 Impact of -50 bps discount rate 37%
Slide 46: Overview
Overview SEB in brief Q1 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 46
Slide 47: 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 S&P and Fitch confirmed ratings in June/July 2023. Moody’s changed its Moody’s P-1 A3 Aa3 3 Positive outlook to positive in March 2024. S&P A-1 a A+ 1 Stabl
Slide 48: 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 31 March 2024 Net Stable Funding Ratio (NSFR) SEK 4,130bn 111% 111% 108% 110% Min. 100% Life Insurance Life Insurance Derivatives and othe
Slide 49: Strong liquidity position
Liquidity and funding Strong liquidity position High Quality Liquid Assets 31 March 2024, SEK 1,099bn • Liquidity portfolio is invested in high quality liquid assets (predominantly 2% SSA’s and covered bonds) that are 19% Cash & holdings in Central Banks central bank eligible for pledging Treasuries
Slide 50: 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 -6% -6% -4% proven stable corporate deposit base 1,500 1,000 Corporate 4% 4% 2% through long-term relationsh
Slide 51: 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 615bn SEK bn 36 Covered bonds Senior unsecured debt 10 Covered bonds SEK Senior non-preferred debt Subordinated debt 17 84 9 5 59 Covered bonds non-S
Slide 52: MREL requirements and available funds
Liquidity and funding MREL requirements and available funds MREL requirement Subordination MREL requirement % of REA (SEK 926bn) % of REA (SEK 926bn) Total available Total required Total available Total required SEK 417bn SEK 331bn SEK 298bn SEK 266bn SP>1yr 12.8% CBR 8.1% SNP>1yr 9.4% SNP>1yr 9.4%
Slide 53: International long-term bond issuance in 2023-2024
Liquidity and funding = green transaction International long-term bond issuance in 2023-2024 Type Date Settlement date ISIN CCY Amount (+/- MCCY) Market quote Maturity 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 54: 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 55: SEB's covered bonds and cover pool
Liquidity and funding SEB’s covered bonds and cover pool • 100% Swedish residential mortgages, which historically have had very low Outstanding covered bonds, 31 March 2024 Cover pool, 31 March 2024 credit losses Moody’s rating Aaa Total residential mortgage assets SEK 712bn • More concentrated towa
Slide 56: 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 22% cities , 36% region , 41% S
Slide 57: 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 58: Overview
Overview SEB in brief Q1 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 58
Slide 59: Investing to future-proof our business, in line with SEB's 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 60: In 2024, we will continue to invest to future-proof our business
Strategy and sustainability In 2024, we will continue to invest to future-proof our business A selection of continued investments Costs • PWM&FO expansion SEK 27.4bn The front • Austria, Switzerland, Netherlands 2023 SEK ~350m • • Sustainability Savings • Embedded Inflation +950m of which Salary +60
Slide 61: 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 62: A selection of recent sustainability-related activities
Strategy and sustainability A selection of recent sustainability-related activities Top-ranked sustainability advisor Reduction target for shipping sector established Among large corporates and financial Net-zero aligned 2030 target set in line with commitment to institutions in the Nordic region, N
Slide 63: Climate ambitions and goals to ensure our progress
Strategy and sustainability Climate ambitions and goals to ensure our progress The brown The green Reduce our fossil fuel credit exposure in the energy Increase activity 6–8 times by 2030, compared to a portfolio by half by 2030, compared to a 2019 baseline. 2021 baseline. 100 800 6x to 8x by 2030 I
Slide 64: 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 >30% decrease Net Zero – World – without CCUS 1 EUR 11.6bn Change >70%
Slide 65: 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 1,000 300 SEK 272bn SEK 111bn 6x to 8x Q1 2024 Q1 2024
Slide 66: Net-Zero Banking Alliance sector targets
Strategy and sustainability Net-Zero Banking Alliance sector targets • Overall progressing according to plan • Targets in line or exceeding relevant 1.5°C scenarios • Included a new sector; Shipping • The 7 sectors cover 77% of the 2022 financed emissions → Reduced by 42% since 2020 Financed emissio
Slide 67: Net-Zero Banking Alliance sector target benchmarks
Strategy and sustainability Net-Zero Banking Alliance sector target benchmarks Oil & Gas: E&P and refining Power generation Steel 17 peers – Index, 2020=100 (mtCO2e) 23 peers – g CO2e / kWh 12 peers – tCO2e / t steel Peers’ target range Peers’ target range Peers’ target range IEA Net Zero 2050 - Wor
Slide 68: 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 24.2 (medium risk) medium, 30-40 high, 40+ severe C A+ – D- B A–D 68
Slide 69: Overview
Overview SEB in brief Q1 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 69
Slide 70: Our home markets: Sweden
Macro environment Our home markets: Sweden GDP development Key ratios Sweden 2022 2023 2024F 2025F Indexed Q4 2019 = 100 GDP growth (%) 2.7 -0.2 0.5 2.8 Sweden Euro area 115 CPIF (%) 7.7 6.0 2.0 2.0 105 Public debt/GDP 32.9 30.8 32.5 33.3 95 Unemployment 1 7.5 7.7 8.5 8.5 85 Q4-2019 Q4-2020 Q4-2021
Slide 71: 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 (15-64 years), Q4 2023 Swedish households’ assets and debt (SEK tn), Q4 2023 77% 77% 30 Insurance 73% Funds 70% Bank deposits 68% 20 Equities 66%
Slide 72: Our home markets: Nordics
Macro environment Our home markets: Nordics GDP development Indexed Q4 2019 = 100 Norway Finland Denmark GDP growth (%) 2022 2023 2024F 2025F 110 Norway 3.0 0.5 1.7 2.1 100 Finland 1.3 -1.0 -0.2 2.0 90 Denmark 3.0 0.5 1.7 2.1 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unemployment Annual grow
Slide 73: Our home markets (LC&FI): 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 (%) 2022 2023 2024F 2025F 100 90 United Kingdom 4.3 0.1 0.2 1.2 80 70 Germany 1.8 -0.3 0.2 1.2 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unemploy
Slide 74: Our home markets: Baltics
Macro environment Our home markets: Baltics GDP development Indexed Q4 2019 = 100 Estonia Latvia Lithuania GDP growth (%) 2022 2023 2024F 2025F 110 Estonia -0.5 -3.0 -0.5 3.5 100 Latvia 3.0 -0.3 1.9 2.7 90 Lithuania 2.4 -0.3 1.5 2.8 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unemployment Annu
Slide 75: Overview
Overview SEB in brief Q1 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 75
Slide 76: Stable capital generation
Appendix Stable capital generation Return on risk exposure amount 4.3% 4.2% 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 Q1 2024 Note: net profit as a share of ri
Slide 77: Our balance sheet provides a solid base
Appendix Our balance sheet provides a solid base 2016 31 March 2024 Capital Capital CET1 capital SEK 114bn CET1 capital SEK 175bn (+54%) Annual capital generation 250bps Annual capital generation 410bps (+64%) Capital buffer 190bps Capital buffer 420bps (+121%) Total buffer 440bps Total buffer 1 830
Slide 78: SEB's acquisition of AirPlus
Appendix SEB’s acquisition of AirPlus SEB Kort AirPlus • A leader in commercial cards in the Nordics • A leader in company accounts with a particularly strong footprint in the DACH region and Europe • Fundamentally strong business on course for full recovery post Covid-19 • Fundamentally strong busi
Slide 79: Financial performance by division in Q1 2024
Appendix C/I ratio (LHS) Return on business equity (RHS) Financial performance by division in Q1 2024 LC&FI Aspiration: C&PC Aspiration: Baltic Aspiration: ROBE >13% 30% ROBE >16% 26.2%26.7% 30% ROBE >20% 60% 80% 80% C/I <45% 22.3%21.9%21.4% C/I <40% C/I <35% 45.8% 41.5% 19.1% 18.2% 17.8% 20% 20% 40
Slide 80: 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 31 March 2024 Share of capital, per cent Investor 21.3 30,000 AMF Pension & Funds 5.0 20,000 Alecta Tjänstepension 5.0 Swedbank Robur Fu
Slide 81: Summary key financials
Appendix Summary key financials Q1 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) 35 34 39 42 45 46 48 48 50 49 50 54 61 62 Net ECL level / Credit loss level,
Slide 82: 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 83: IR contacts and calendar
IR contacts and calendar Investor Relations Financial calendar Pawel Wyszynski Philippa Allard Per Andersson 2024 Head of IR Head of Debt IR Senior IR 1 July Silent period starts Mobile: +46 70 462 21 11 Mobile: +46 70 618 83 35 Mobile: +46 70 667 74 81 16 July Quarterly report Jan - Jun E-mail: paw
Slide 84: Positively shaping the future, with responsible advice and capital
Positively shaping the future, with responsible advice and capital. Today and for generations to come.
Skandinaviska Enskilda Banken — Q1 2024 Earnings Presentation on 6ix