Slide 1: Financial results Q3 2024
Financial results Q3 2024 24 October 2024 Johan Torgeby, President & CEO Christoffer Malmer, CFO
Slide 2: Highlights in Q3 2024
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 reiterated 1 • With a new quarter
Slide 3: Organisation aligned with strategy to improve customer and growth focus
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 Officer Chief Risk Office
Slide 4: Feedback from SME and retail customers
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 64 3 3 62 64 4 62 3 2 3 70
Slide 5: A selection of recent events
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 5
Slide 6: Development of credit and lending portfolio
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 estate -1% -1% -1% 1% fx
Slide 7: Christoffer Malmer, CFO
Christoffer Malmer, CFO
Slide 8: Financial summary YTD 2024
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 Operating income 61,901
Slide 9: Financial summary Q3 2024
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/I 0.37 Operating income 2
Slide 10: Updated cost target for 2024 including AirPlus
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 Updated cost target 2024 SEK ≤
Slide 11: Net interest income development
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” includes divisions PWM&
Slide 12: Net fee & commission income development
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 Q3-24 Net advisory fees, lend
Slide 13: Net financial income development
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 3.1 2.3 Mean 2.5 0.6 0.8
Slide 14: Capital buffer development
Capital buffer development CET1 buffer development CET1 buffer development Quarter-on-quarter (bps) Year-on-year (bps) 217 54 11 12 12 -67 -3 18 -45 -83 -45 Target buffer 100-300bps 470 430 Target buffer 100-300bps 470 430 Jun Profit 1 REA asset REA asset REA FX 2 AirPlus Other 3 Sep Sep 2023 Profit
Slide 15: Strong asset quality and balance sheet
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 coverage ratio 140% Liqui
Slide 16: SEB Group financial targets
SEB Group 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 capital buffer exceeds, + and is projected to remain
Slide 17: SEB's annual sustainability event: Transition in Numbers
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 17
Slide 18: Appendix
Appendix
Slide 19: Operating leverage
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 2023 Jan-Sep 2024 2024 20
Slide 20: Our efforts have resulted in positive feedback from our customers
Our efforts have resulted in 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 1 1 1 1 1 1 1 1 1 1
Slide 21: Lending portfolio more sector-diverse than competitors'
Lending portfolio more sector-diverse than competitors’ Lending portfolio by industry 1 Q4 2023, total lending excl. banks, reversed repos and collateral margin 100% Public Administration Other 80% Mining and quarrying Hotels and restaurants Electricity, gas and water supply 60% Construction Service
Slide 22: A strong risk culture and focus on robust asset quality
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) equivalent 1 range Investment grade 0.0 - 0.4% AAA - BBB Standard 0.4 - 1.1% BB
Slide 23: Thank you for listening
Thank you for listening