Skandinaviska Enskilda Banken Ab Class A · OMXSTO:SEB_A
Skandinaviska Enskilda Banken Ab Class A — Q4 2024 Earnings Presentation
90 slides from Skandinaviska Enskilda Banken Ab Class A's earnings presentation, Jan 29, 2025
Slide 1: Investor presentation Q4 2024
Investor presentation Q4 2024 29 January 2025
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 Q4 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 2024 2023 2022 Finland Return On Equity (ROE) 16.2% 17.9% 14.5% Cost-Income ratio (C/I) 0.38 0.34 0.39 Norway Estonia Sweden Net Expected Credit Losses (ECL) 3bps 3bps 7bps Latvia Lithuania Common Equity Tier 1 ratio (CET1) 17.6% 19
Slide 6: Stable operating leverage growth in the long run
SEB in brief Stable operating leverage growth in the long run SEK bn 90 Operating income Operating expenses Profit before ECL and imposed levies 60 30 0 1990 2024 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 Compound annual growth rate (CAGR) 1990 – 2024 2013 – 2024 2017 – 2024 Operating i
Slide 7: Continuously high customer centricity
SEB in brief Continuously high customer centricity Large Corporates Financial Institutions Fixed income Sustainability advisor 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 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 financial
Slide 9: Strong risk culture and focus on robust asset quality…
SEB in brief Strong risk culture and focus on robust asset quality… Risk distribution for SEB’s non-retail corporate portfolio: growing share of investment grade companies 5% Probability of External Rating 11% Category Default (PD) range equivalent 1 Investment grade 0.0 - 0.4% AAA - BBB Standard mo
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 Stable capital generation Return on risk exposure amount 4.3% 3.9% 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% 2.4% 1.2% 0.9% 0.2% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: net profit as a share of risk e
Slide 12: Robust financials relative peers
SEB in brief SEB Nordic peer average Robust financials relative peers European peer average Cost efficiency Asset quality Cost/income: 2011-LTM Q3 2024, excl. unusual items Cost of risk: 2011-LTM Q3 2024 70% 1.0% 50% SEB SEB 30% 41% 0.02% 0.0% 2011 2013 2015 2017 2019 2021 2023 2011 2013 2015 2017 2
Slide 13: 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 14: Overview
Overview SEB in brief Q4 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 14
Slide 15: Highlights in Q4 2024
Q4 2024 financial update Highlights in Q4 2024 Return on equity 13.2% • Increasing activity in the LC&FI division and healthy customer activity in the Baltics Cost income ratio • 2024 costs and capital buffer were in line with our full-year targets 0.43 • 2025 cost target of SEK 33bn enables further
Slide 16: Recent recognitions
Q4 2024 financial update Recent recognitions 1 1 2 Prospera Large Corporates Prospera Domestic Equity Prospera Institutional Banking Nordics Nordics Nordics 1 2 1 3 2 1 4 2 1 1 1 3 Prospera Private Banking SEB Asset Management awarded S&P credit rating outlook revised Sweden ”Best Fund Company of th
Slide 17: Development of credit and lending portfolio
Q4 2024 financial update Development of credit and lending portfolio Credit portfolio by sector Lending by sector SEK bn QoQ YoY QoQ YoY Corporates 2% 5% 2% 6% fx-adjusted 0% 1% -1% 2% Baltic corporates (EUR) 1% 4% 2% 5% Households 0% 2% 1% 1% Swedish mortgages -1% 1% 0% 0% Baltic mortgages (EUR) 2%
Slide 18: Financial summary FY 2024
Q4 2024 financial update Financial summary FY 2024 SEK m Jan-Dec 2024 Jan-Dec 2023 excl. AirPlus 1 Operating income 81,887 80,193 2% 1% RoE 16.2% Operating expenses 30,949 27,449 13% 6% C/I Operating profit 46,043 47,963 -4% -2% 0.38 Net ECL level Net profit 35,865 38,116 -6% -3% 3 bps Earnings per
Slide 19: Financial summary Q4 2024
Q4 2024 financial update Financial summary Q4 2024 SEK m Q4 2024 Q3 2024 Q4 2023 excl. AirPlus 1 excl. AirPlus 1 Net interest income 10,820 11,055 -2% -2% 12,100 -11% -10% Net fee and commission income 6,508 6,034 8% 5% 5,542 17% 7% RoE 13.2% Net financial income 2,352 3,772 -38% -40% 2,386 -1% -5%
Slide 20: Net interest income development
Q4 2024 financial update Net interest income development Net interest income (SEK bn) Net interest income (SEK bn) Jan-Dec 2024 vs. Jan-Dec 2023 Q3 2024 – Q4 2024 Internal pricing effect from Underlying business -5% deposit model change 11.1 0.5 10.8 -0.2 -0.2 0.1 -0.2 -0.2 0.4 47.5 -0.1 45.3 -0.4 -
Slide 21: Net fee & commission income development
Q4 2024 financial update Net fee & commission income development Net fee & commissions (SEK bn) Net fee & commissions by income type (SEK bn) Jan-Dec 2024 vs. Jan-Dec 2023 Q4 2022 – Q4 2024 YoY QoQ Net securities commissions (custody, mutual funds, brokerage) 2.4 2.4 2.8 +11% +17% +2% Q4-22 Q4-23 Q4
Slide 22: Net financial income development
Q4 2024 financial update Net financial income development Net financial income (SEK bn) Net financial income development (SEK bn) Jan-Dec 2024 vs. Jan-Dec 2023 Q4 2022 – Q4 2024. Mean and standard deviation (SD) based on Q1 2021 – Q4 2024 quarterly data NFI Divisions NFI Other 3.5 +21% +1 SD 1.0 2.4
Slide 23: Development of CET1 buffer quarter-on-quarter
Q4 2024 financial update Development of CET1 buffer quarter-on-quarter Bps above regulatory requirement 44 470 -66 20 -107 -18 290 -26 -26 Target buffer 100-300 bps Sep Profit 1 Special dividend Share buyback 2 REA REA REA Other 3 Dec 2024 asset asset FX 2024 size quality 1 Profit net of ordinary di
Slide 24: Cost target for 2025
Q4 2024 financial update Cost target for 2025 Costs 2024 SEK 30.9bn Inflation +0.8 – 0.9bn AirPlus full year effect, +1.0 – 1.3bn consolidation and synergies Investment plan +0.6 – 0.7bn Efficiencies -0.5 – 0.6bn Cost target 2025 SEK 33.0bn +/- 0.3bn Note: Target 2025 assuming 2024 average FX-rates.
Slide 25: Business plan update
Business plan update
Slide 26: Our business planning emphasises a long-term perspective
Q4 2024 financial update Our business planning emphasises a long-term perspective Long-term strategy… WHAT SEB’s 2030 Strategy …complemented by a three-year business plan… Business Plan Business Plan HOW 2022-2024 2025-2027 …being calibrated annually BP BP BP BP BP BP 2022-2024 2023-2025 2024-2026 2
Slide 27: A selection of what we have delivered 2022 - 2024
Q4 2024 financial update A selection of what we have delivered 2022 - 2024 Future-proofing customer relationships and profit generation Future-proofing our platform Acceleration Change Partnerships Efficiency 1 2 3 4 • Expansion of Corporate banking • PWM&FO expansion 4 • Several partnerships within
Slide 28: Group strategic priorities 2025 - 2027
Q4 2024 financial update Group strategic priorities 2025 - 2027 Business growth Technology and efficiency Capture long-term potential in Continued modernisation of the wealth and asset management technology stack Corporate growth Accelerate implementation of new technologies Future-proof and grow re
Slide 29: COO agenda: More “bank for the buck”
Q4 2024 financial update Technology and efficiency Continue modernisation of the COO agenda: More “bank for the buck” technology stack Accelerate implementation of new technologies A changing environment Quality and security Software development is a AI is increasing Regulatory environment is is par
Slide 30: Corporate & Investment Banking
Q4 2024 financial update Business growth Capture long-term potential in Corporate & Investment Banking wealth and asset management Corporate growth Former Large Corporates & Financial Institutions Future-proof and grow retail banking Foundation Focus areas going forward Deepen the house bank relatio
Slide 31: Business & Retail Banking
Q4 2024 financial update Business growth Capture long-term potential in Business & Retail Banking wealth and asset management Corporate growth Former Corporate & Private Customers Future-proof and grow retail banking Foundation Focus areas going forward Customer income split Increase business bankin
Slide 32: Wealth & Asset Management
Q4 2024 financial update Business growth Capture long-term potential in Wealth & Asset Management wealth and asset management Corporate growth Former Private Wealth Management & Family Office, Asset Management and Life Future-proof and grow retail banking Foundation Focus areas going forward PWM&FO
Slide 33: Baltic division
Q4 2024 financial update Business growth Capture long-term potential in Baltic division wealth and asset management Corporate growth Future-proof and grow retail banking Foundation Focus areas going forward Lending market share 1 (%) Expand the corporate franchise 23 22 24 27 27 19 Grow the retail b
Slide 34: Stable operating leverage growth in the long run
Q4 2024 financial update Stable operating leverage growth in the long run SEK bn Income Profit before credit losses and imposed levies Cost 80 60 40 20 0 2000 2003 2005 2008 2010 2013 2015 2018 2020 2023 2024 Compound annual growth rate (CAGR) 2000-2010 2010 – 2016 2016-2021 2021 – 2024 Operating in
Slide 35: Appendix
Appendix
Slide 36: Updated financial aspirations for divisions, evaluated annually
Q4 2024 financial update Updated financial aspirations for divisions, evaluated annually Return on Business Equity Cost/Income Aspiration 1 Actual 2024 Aspiration 1 Actual 2024 Large Corporates & Financial Institutions 2 >13% 17.6% <0.45 0.35 Corporate & Private Customers 2 >16% 22.5% <0.40 0.40 Bal
Slide 37: Strong asset quality and balance sheet
Q4 2024 financial update Strong asset quality and balance sheet 2023 December 2024 Asset quality Asset quality Net expected credit loss level 3 bps Net expected credit loss level 3 bps Funding & liquidity Funding & liquidity Customer deposits (SEK) 1,612bn Customer deposits (SEK) 1,681bn Liquidity c
Slide 38: Perspectives on our broader financial contribution
Q4 2024 financial update Perspectives on our broader financial contribution Value to owners (equity capital providers) Resources to public finances Net profit Taxes and imposed levies Example of owners Beneficiaries Foundations & ∼560,000 investors SEK 36bn ∼4,000,000 individuals SEK 15bn ∼2,800,000
Slide 39: Overview
Overview SEB in brief Q4 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 39
Slide 40: 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 41: 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 42: Corporate portfolio focused on large corporates, diversified across industries
Credit portfolio and asset quality SEK Corporate portfolio focused on large corporates, diversified across industries 3,160bn 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 43: Conservative approach to real estate lending
Credit portfolio and asset quality SEK Conservative approach to real estate lending 3,160bn 11% Real estate exposure mainly in Sweden and Nordics Closely monitored credit growth As per Q4 2024 Sweden Commercial real estate Residential real estate 9% 2% SEK bn 14% Other Nordic 200 SEK 361bn Baltics 1
Slide 44: SEB’s real estate portfolio remains resilient
Credit portfolio and asset quality SEK SEB’s real estate portfolio remains resilient 3,160bn 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% 0.2% 0.0% 0.1% to higher interest rates 0.1
Slide 45: Household mortgage portfolio of high asset quality and based on affordability
Credit portfolio and asset quality Household mortgage portfolio of high asset quality 22% SEK 3,160bn 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 46: 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 47: Macroeconomic scenarios in Q4
Credit portfolio and asset quality Macroeconomic scenarios in Q4 OECD Sweden Three scenarios for ECL modelling GDP growth assumptions Q4 2024 (Q3 2024) Positive scenario: Base scenario: Negative scenario: 20% probability (20%) 60% probability (60%) 20% probability (20%) 2.9%3.5% 2.1% 3.5% 2.1% 2.7%
Slide 48: Overview
Overview SEB in brief Q4 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 48
Slide 49: Development of CET1 buffer since end of 2021
Capital Development of CET1 buffer since end of 2021 Bps -560 1,180 -140 -320 -210 -190 -40 -20 590 Target buffer 100-300bps 290 Dec Net profit Ordinary dividend Special dividend Share buyback 1 REA items 2 Regulatory AirPlus Other Dec 2021 changes 3 2024 1 ‘Share buyback’ includes the supervisory a
Slide 50: 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 9 13 12 -9 44 -66 20 -107 924 -18 -26 948 -26 470 Target buffer 100-300bps 290 Sep Profit 1 Special Share REA REA REA Other 3 Dec Sep Asset Asset FX Other 4 Dec
Slide 51: 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 14 14 27 19 211 -19 -68 -169 948 -42 892 440 -83 Target buffer 100-300bps 290 Dec 2023 Profit 1 Special Share AirPlus Other 3 Dec 2024 Dec 2023 Asset size Asset qua
Slide 52: 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 290bps 22.5 T2 2.2 Capital conservation buffer 18.9 AT1 2.7 0.5 17.6% 17.6 2.5 Countercyclical buffer CET1 ratio with buffer of 290bps 14.7 1.6 above regulatory
Slide 53: Reasons for management capital buffer
Capital Reasons for management capital buffer Sensitivity to currency fluctuations Sensitivity of Swedish pension surplus As per December 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 Impact
Slide 54: Overview
Overview SEB in brief Q4 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 54
Slide 55: Strong credit ratings
Liquidity and funding Strong credit ratings “Stand-alone Rating institute Short term Long term Uplift Oulook rating” • Fitch affirmed rating in December 2024 Fitch F1+ Aa- AA- 0 Stable • S&P changed outlook to positive in November 2024 Moody’s P-1 A3 Aa3 3 Positive • Moody’s changed outlook to posit
Slide 56: 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 December 2024 Net Stable Funding Ratio (NSFR) SEK 3,759bn 111% 112% 111% 109% Min. 100% Life Insurance Life Insurance Derivatives and o
Slide 57: Strong liquidity position
Liquidity and funding Strong liquidity position High Quality Liquid Assets 31 December 2024, SEK 673bn • Liquidity portfolio is invested in high quality liquid assets (predominantly 2% SSA’s and covered bonds) that are Cash & holdings in Central Banks central bank eligible for pledging 32% Treasurie
Slide 58: 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 -19% -13% 0% proven stable corporate deposit base 1,500 1,000 Corporate 1% 7% 6% through long-term relations
Slide 59: 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 598bn, per Q4 2024 SEK bn 47 Covered bonds 1 Senior unsecured debt Covered bonds SEK Senior non-preferred debt Subordinated debt 10 17 92 Covered bon
Slide 60: MREL requirements and available funds
Liquidity and funding MREL requirements and available funds MREL requirement Subordination MREL requirement % of REA (SEK 948bn) % of REA (SEK 948bn) Total available Total required Total available Total required SEK 382bn SEK 339bn SEK 306bn SEK 272bn 8.0% SP>1yr CBR 8.1% 9.8% SNP>1yr 9.8% SNP>1yr 8
Slide 61: International long-term bond issuance in 2024
Liquidity and funding = green transaction International long-term bond issuance in 2024 Type Issue date ISIN CCY Amount (+/- MCCY) Market quote Maturity First call date SP 27-Feb-24 US830505AZ66 USD 650 UST + 73 5-Mar-27 N/A SP 27-Feb-24 US830505BA07 USD 350 UST + 73 (float) 5-Mar-27 N/A SP 25-Apr-2
Slide 62: 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 T
Slide 63: 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, 31 December 2024 31 December 2024 which historically have had very low credit losses Moody’s rating Aaa Total residential mortgage assets SEK 700bn • More concentrated
Slide 64: 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 20% cities , 35% region , 42% S
Slide 65: 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 66: Overview
Overview SEB in brief Q4 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 66
Slide 67: 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 68: 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 69: A selection of recent sustainability-related activities in Q4
Strategy and sustainability A selection of recent sustainability-related activities in Q4 International Finance Corporation (IFC) issuance of green bond Transition in Numbers – SEB’s annual sustainability event SEB acted as sole manager when IFC issued a SEK 2bn green bond to Live event during which
Slide 70: Climate ambitions and goals to ensure our progress
Strategy and sustainability Climate ambitions and goals to ensure our progress Ambitions and goals Carbon Exposure Index, Sustainability Activity Index and NZBA sector targets SEB has the power, opportunity and responsibility to impact the world we operate in. Net-Zero interim Carbon Exposure Sustai
Slide 71: Carbon Exposure Index to reduce our fossil credit exposure
Strategy and sustainability Carbon Exposure Index to reduce our fossil credit exposure Goal to reduce our fossil credit exposure in energy portfolio by 45-60% by 2030 SEB fossil credit exposure 2019=100 EUR 11.5bn 1 Net Zero – World – without CCUS 2 >30% decrease Change >70% decrease 2030 vs 2019 Di
Slide 72: Sustainability Activity Index to accelerate our efforts
Strategy and sustainability 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 323bn SEK 118bn 6x to 8x Q4 2024 Q4 2024 177 by 2030
Slide 73: Net-Zero Banking Alliance sector targets
Strategy and sustainability Net-Zero Banking Alliance sector targets • Targets in line or exceeding relevant net-zero scenarios • New sector included in 2024: shipping • The 7 sectors cover 77% of SEB 2023 financed emissions → Financed emissions reduced by 49% since 2020 Financed emissions target St
Slide 74: 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 75: 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 19.4 (low risk) medium, 30-40 high, 40+ severe C A+ – D- B A–D 75
Slide 76: Overview
Overview SEB in brief Q4 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 76
Slide 77: 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 (%) -0.2 0.5 2.2 3.1 Sweden Euro area 115 CPIF (%) 6.0 1.9 2.0 2.0 105 Public debt/GDP 31.5 33.6 34.3 34.4 95 Unemployment 1 7.7 8.4 8.7 8.3 85 Q4-2019 Q4-2020 Q4-2021
Slide 78: 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), Q3 2024 Swedish households’ assets and debt (SEK tn), Q3 2024 82% 81% 30 Insurance Funds 77% Bank deposits 76% 75% Equities 20 71%
Slide 79: 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 0.0 2.3 2.2 1.2 100 Finland -1.2 -0.3 1.5 1.8 90 Denmark 2.5 2.8 2.6 3.0 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unemployment Annual gro
Slide 80: 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 (%) 2023 2024F 2025F 2026F 100 90 United Kingdom 0.3 0.9 1.6 1.4 80 70 Germany -0.3 -0.2 0.4 1.1 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unempl
Slide 81: 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 115 105 Estonia -3.0 -0.9 1.8 2.8 95 Latvia 1.7 -0.4 1.8 2.2 85 Lithuania 0.3 2.5 2.8 2.9 Q4-2019 Q4-2020 Q4-2021 Q4-2022 Q4-2023 Inflation Unemployment An
Slide 82: Overview
Overview SEB in brief Q4 2024 financial update Credit portfolio and asset quality Capital Liquidity and funding Strategy and sustainability Macro environment Appendix 82
Slide 83: 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 84: Our balance sheet provides a solid base
Appendix Our balance sheet provides a solid base 2016 30 December 2024 Capital Capital CET1 capital SEK 114bn CET1 capital SEK 167bn (+46%) Annual capital generation 250bps Annual capital generation 380bps (+52%) Capital buffer 190bps Capital buffer 290bps (+53%) Total buffer 440bps Total buffer 1 6
Slide 85: Financial performance by division in 2024
Appendix C/I ratio (LHS) Return on business equity (RHS) Financial performance by division in 2024 LC&FI Aspiration: C&PC Aspiration: Baltic Aspiration: ROBE >13% 30% ROBE >16% 30% ROBE >20% 60% 80% 26.2% 80% C/I <45% C/I <40% 22.5% C/I <35% 45.8% 22.3%21.9% 21.4% 41.5% 17.8%17.6% 20% 18.2% 20% 40%
Slide 86: 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 December 2024 Share of capital, per cent Investor 21.7 40,000 AMF Pension & Funds 4.9 30,000 Alecta Tjänstepension 4.6 20,000 Swedban
Slide 87: Summary key financials
Appendix Summary key financials 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 20111) Return on equity, % 2) 16.2 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) 38 34 39 42 45 46 48 48 50 49 50 54 61 62 Net ECL level / Credit loss level, %
Slide 88: 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 89: 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.
Slide 90: IR contacts and calendar
IR contacts and calendar Investor Relations Financial calendar Pawel Wyszynski Per Andersson Paula Dennholt 2025 Head of IR Senior Equity IRO Senior ESG Specialist IRO 11 March Annual and Sustainability Report 2024 Mobile: +46 70 462 21 11 Mobile: +46 70 667 74 81 Mobile: +46 70 763 94 68 E-mail: pa
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