Skandinaviska Enskilda Banken Ab Class A · OMXSTO:SEB_A
Skandinaviska Enskilda Banken Ab Class A — Q2 2024 Earnings Presentation
82 slides from Skandinaviska Enskilda Banken Ab Class A's earnings presentation, Jul 16, 2024
Slide 1: Investor presentation Q2 2024
Investor presentation Q2 2024 16 July 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 Q2 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 Q2 2024 2023 2022 Finland Return On Equity (ROE) 17.6% 17.9% 14.5% Cost-Income ratio (C/I) 0.36 0.34 0.39 Norway Estonia Sweden Net Expected Credit Losses (ECL) 1bp 3bps 7bps Latvia Lithuania Common Equity Tier 1 ratio (CET1) 19.0%
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 Q2 2024 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 Compound annual growth rate (CAGR) 1990 – Q2 2024 2013 – Q2 2024 2017 – Q2 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: 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 H1 2024 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 Q1 2024, excl. unusual items Cost of risk: 2011-LTM Q1 2024 1.5% 70% 50% 0.5% SEB SEB 30% 39% 0.04% 2011 2013 2015 2017 2019 2021 2023 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 Q2 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 14
Slide 15: Highlights in Q2 2024
Q2 2024 financial update Highlights in Q2 2024 Return on equity 17.6% • Improved business momentum, including positive net flows in asset management across divisions, an increase in investment banking activity, and Cost income ratio signs of improving credit demand. 0.36 • Return on equity remained
Slide 16: Improving business momentum
Q2 2024 financial update Improving business momentum Strong net flows in asset management Investment banking bouncing back Assets under management, SEK bn Operating income Investment Banking, SEK bn Net flows 4Q rolling average SEK +63bn +44% YoY Q2 2022 Q2 2023 Q2 2024 Q2 2022 Q2 2023 Q2 2024 Posit
Slide 17: Development of credit portfolio
Q2 2024 financial update Development of credit portfolio Credit portfolio by sector Lending by sector QoQ YoY QoQ YoY SEK bn 1,800 Corporates -2% -3% -0% -4% fx-adjusted -0% -0% +0% -2% 1,600 1,400 1,200 1,000 Households +1% -0% +0% -0% 800 Swedish mortgages +1% 0% +0% -0% 600 400 Commercial real es
Slide 18: Financial summary YTD 2024
Q2 2024 financial update Financial summary YTD 2024 SEK m H1 2024 H1 2023 Total operating income 40,994 39,078 5% Net interest income 23,376 23,177 1% RoE Net fee and commission income 11,561 10,807 7% 17.3% Net financial income 5,996 5,012 20% C/I Total operating expenses 14,542 13,414 8% 0.35 Prof
Slide 19: Financial summary Q2 2024
Q2 2024 financial update Financial summary Q2 2024 SEK m Q2 2024 Q1 2024 Q2 2023 Total operating income 20,312 20,682 -2% 20,019 +1% Net interest income 11,611 11,765 -1% 11,881 -2% RoE Net fee and commission income 5,936 5,625 +6% 5,637 +5% 17.6% Net financial income 2,747 3,249 -15% 2,609 +5% C/I
Slide 20: Operating leverage
Q2 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) 20.5 13.2 9.4 7.3 5.9 3.5 2011 2014 2017 2020 2023 H1 2011 2014 2017 2020 2023 H1 2011 2014 2017 2020 2023 H1 20
Slide 21: Net interest income development
Q2 2024 financial update Net interest income development Net interest income (SEK bn) Net interest income (SEK bn) Jan-Jun 2024 vs. Jan-Jun 2023 Q1 2024 – Q2 2024 11.8 0.1 0.1 11.6 +1% 0.3 23.2 23.4 Q1 2024 FX-effect Divisions, Funding & Other Q2 2024 underlying LC&FI C&PC Baltic Other 1 4.8 4.7 5.1
Slide 22: Net fee & commission income development
Q2 2024 financial update Net fee & commission income development Net fee & commissions (SEK bn) Net fee & commissions by income type (SEK bn) Jan-Jun 2024 vs. Jan-Jun 2023 Q2 2022 – Q2 2024 YoY QoQ Net securities commissions (custody, mutual funds, brokerage) 2.4 2.6 2.7 7% +3% +7% Q2-22 Q2-23 Q2-24
Slide 23: Net financial income development
Q2 2024 financial update Net financial income development Net financial income (SEK bn) Net financial income development (SEK bn) Jan-Jun 2024 vs. Jan-Jun 2023 Q2 2022 – Q2 2024. Mean and standard deviation (SD) based on Q2 2020 – Q2 2024 quarterly data NFI Divisions NFI Other +20% +1 SD 2.6 2.7 3.1
Slide 24: Capital buffer development
Q2 2024 financial update Capital buffer development CET1 buffer development CET1 buffer development Quarter-on-quarter (bps) Year-on-year (bps) 231 -70 51 -114 20 -54 11 -88 430 450 430 Target buffer 100-300bps Target buffer 100-300bps 420 1 Mar 2024 Profit Share REA FX Jun 2024 Jun 2023 Profit 1 Sp
Slide 25: Pension scheme surplus has increased equity and lowered ROE
Q2 2024 financial update Pension scheme surplus has increased equity and lowered ROE Could over time improve SEB’s capitalisation or support return on equity Shareholders’ equity and net retirement benefit assets, 2018 – H1 2024, SEK bn 222 218 204 193 24 30 172 24 23 149 156 Surplus pension scheme
Slide 26: CET1 ratio significantly higher under European standards
Q2 2024 financial update SEB’s CET1 ratio significantly higher when applying European standards CET1 ratio adjusted to average “EU standard” for IRB models Margin of conservatism for large corporates in 2023 December 2023 Probability of default (PD) / 5-year observed default rate 1 16 SEB 14 Sweden
Slide 27: Future regulatory effects on capital buffer
Q2 2024 financial update Assessment of future regulatory effects on SEB’s capital buffer ”Basel IV” ”Basel IV” risk based Day 1 effect (2025) 2026-2029 1 Neutral to marginally ~ -50 bps negative Removal of Pillar 2 Updated IRB models 2 add-on 3 ~ 0 bps ~ +100 bps In total, largely neutral regulatory
Slide 28: Strong asset quality and balance sheet
Q2 2024 financial update Strong asset quality and balance sheet 2023 June 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) 1,957bn Liquidity cover
Slide 29: Overview
Overview SEB in brief Q2 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 10
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 3,088bn 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 3,088bn 12% Real estate exposure mainly in Sweden and Nordics Closely monitored credit growth As per Q2 2024 Sweden Commercial real estate Residential real estate 8% 3% SEK bn 15% Other Nordic 200 SEK 361bn Baltics 1
Slide 34: Real estate portfolio remains resilient
Credit portfolio and asset quality SEK SEB’s real estate portfolio remains resilient 3,088bn 12% 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 0.1% 0.0% 0.1% to higher interest
Slide 35: Real estate clients working on deleveraging
Credit portfolio and asset quality Real estate clients working on deleveraging activities Average capital structure for large real estate companies as per Q1 2024 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 36: Household mortgage portfolio of high asset quality
Credit portfolio and asset quality Household mortgage portfolio of high asset quality 22% SEK 3,088bn 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 37: 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 3 exposure Stage 2 exposure Stage 3 Coverage ratio, Stage 3 60% 12 58% 57% 48% 10 45% 40
Slide 38: Macroeconomic scenarios in Q2
Credit portfolio and asset quality Macroeconomic scenarios in Q2 OECD Sweden Three scenarios for ECL modelling GDP growth assumptions Q2 2024 (Q1 2024) Positive scenario: Base scenario: Negative scenario: 20% probability (20%) 60% probability (60%) 20% probability (20%) 3.8% 2.6% 3.1% 2.8% Probabili
Slide 39: Overview
Overview SEB in brief Q2 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 39
Slide 40: 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 -5 -1 51 11 -54 926 920 420 Target buffer 100-300bps 430 Mar 2024 Profit 1 Share REA FX Jun 2024 Mar REA FX REA other Jun buy back 2 2024 2024 1 Profit net of o
Slide 41: 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 231 48 3 24 -2 -70 -12 -15 -11 -114 20 -88 920 885 450 Target buffer 100-300bps 430 Jun 2023 Profit 1 Special Share Regulatory REA items 4 Jun 2024 Jun 2023 Asset s
Slide 42: 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 430bps 22.8 T2 2.2 Capital conservation buffer 18.9 AT1 1.6 0.5 19.0% 19.0 2.5 Countercyclical buffer CET1 ratio with buffer of 430bps 14.7 1.6 above regulatory
Slide 43: Reasons for management capital buffer
Capital Reasons for management capital buffer Sensitivity to currency fluctuations Sensitivity of Swedish pension surplus As per Q2 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% Impact of
Slide 44: Overview
Overview SEB in brief Q2 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 44
Slide 45: 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 and S&P in June 2023. Moody’s changed Moody’s P-1 A3 Aa3 3 Positive outlook to positive in March 2024. S&P A-1 a A+ 1 Sta
Slide 46: 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 June 2024 Net Stable Funding Ratio (NSFR) SEK 4,152bn 112% 112% 110% 110% Min. 100% Life Insurance Life Insurance Derivatives and other
Slide 47: Strong liquidity position
Liquidity and funding Strong liquidity position High Quality Liquid Assets 30 June 2024, SEK 1,175bn • 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 Treasuries
Slide 48: 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 5% -1% 11% proven stable corporate deposit base 1,500 1,000 Corporate 2% 6% 5% through long-term relationshi
Slide 49: 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 631bn, per Q2 2024 SEK bn 36 Covered bonds 1 Senior unsecured debt Covered bonds SEK Senior non-preferred debt Subordinated debt 10 83 17 Covered bon
Slide 50: MREL requirements and available funds
Liquidity and funding MREL requirements and available funds MREL requirement Subordination MREL requirement % of REA (SEK 920bn) % of REA (SEK 920bn) Total available Total required Total available Total required SEK 396bn SEK 329bn SEK 296bn SEK 264bn SP>1yr 10.8% CBR 8.1% SNP>1yr 9.4% SNP>1yr 9.4%
Slide 51: 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 52: 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 53: 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 June 2024 30 June 2024 which historically have had very low credit losses Moody’s rating Aaa Total residential mortgage assets SEK 699bn • More concentrated towards
Slide 54: Cover pool characteristics – Q2 2024
Liquidity and funding Cover pool characteristics – Q2 2024 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% regi
Slide 55: 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 56: Overview
Overview SEB in brief Q2 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 56
Slide 57: 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 58: In 2024, we will continue to invest to future-proof
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 59: 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 60: Recent sustainability-related activities in Q2
Strategy and sustainability A selection of recent sustainability-related activities in Q2 Enabling companies’ to neutralise climate footprint SEB mandated by Hafslund Celsio to sell carbon removal certificates Expanding the palette of sustainable financing Green and sustainability-linked bank guaran
Slide 61: 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 62: 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 63: 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 293bn SEK 120bn 6x to 8x Q2 2024 Q2 2024
Slide 64: 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 65: 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 66: 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 23.8 (medium risk) medium, 30-40 high, 40+ severe C A+ – D- B A–D 66
Slide 67: Overview
Overview SEB in brief Q2 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 67
Slide 68: 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 69: 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), Q1 2024 Swedish households’ assets and debt (SEK tn), Q1 2024 82% 30 81% Insurance 78% Funds 76% 75% Bank deposits 20 Equities 71%
Slide 70: 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 2.8 1.9 2.5 3.0 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unemployment Annual grow
Slide 71: 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 72: 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 73: Overview
Overview SEB in brief Q2 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 73
Slide 74: 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 75: Our balance sheet provides a solid base
Appendix Our balance sheet provides a solid base 2016 30 June 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 430bps (+126%) Total buffer 440bps Total buffer 1 840b
Slide 76: 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 77: Financial performance by division in H1 2024
Appendix C/I ratio (LHS) Return on business equity (RHS) Financial performance by division in H1 2024 LC&FI Aspiration: C&PC Aspiration: Baltic Aspiration: ROBE >13% 30% ROBE >16% 26.2%25.9% 30% ROBE >20% 60% 80% 80% C/I <45% 22.3%21.9%21.4% C/I <40% C/I <35% 45.8% 42.7% 18.9% 18.2% 17.8% 20% 20% 40
Slide 78: 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 June 2024 Share of capital, per cent Investor 21.7 30,000 AMF Pension & Funds 5.2 20,000 Alecta Tjänstepension 4.8 Swedbank Robur Fun
Slide 79: Summary key financials
Appendix Summary key financials H1 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 20111) 2024 Return on equity, % 2) 17.3 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 80: 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 81: IR contacts and calendar
IR contacts and calendar Investor Relations Financial calendar Pawel Wyszynski Philippa Allard 2024 Head of IR Head of Debt IR 1 October Silent period starts Mobile: +46 70 462 21 11 Mobile: +46 70 618 83 35 E-mail: pawel.wyszynski@seb.se E-mail: philippa.allard@seb.se 24 October Quarterly report Ja
Slide 82: 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 — Q2 2024 Earnings Presentation on 6ix