SBAB reports a net operating income of SEK 192 million for the first quarter 2003, an improvement of SEK 16 million comp

SBAB reports a net operating income of SEK 192 million for the first quarter 2003, an improvement of SEK 16 million compared to the first quarter of 2002 SBAB increases its net operating income for the first quarter by 9 per cent compared to the first quarter last year. Net operating income for the first quarter is SEK 192 million (176 million). - With the continued upward trend in net operating income, we feel that we have laid a good foundation for an even better result for this year compared to last year, says Christer Malm, SBAB's Managing Director. Result Net operating income for the quarter at SEK 192 million (176 million) represents an improvement of 9 per cent compared to the corresponding period in 2002. The positive development in the result reflects well sustained new lending in the retail customer segment, a maintained increase in margins in the company customer segment, a good result from funding operations and continued low net loan losses. Lending SBAB's lending at the end of the first quarter totalled SEK 134.6 billion, to which should be added the loans securitised by SBAB totalling SEK 17.7 billion (totally 152.3 billion). Loan portfolio and securitised loans, SEK billion March 2003 March 2002 Total of which Total of which securitised securitised loans loans Retail market 55.5 16.7 50.9 17.5 Property 96.8 1.0 104.9 1.0 company market Total 152.3 17.7 155.8 18.5 Market shares SBAB's market share in the retail market is around 7.5 per cent and its market share in the property-company market is 19.5 per cent. The reduced volume in the property-company portfolio follows a reduction in lending to municipal housing companies and a focusing on certain customer groups, in combination with the phasing-out of non-profitable engagements. Improved profitability in the loan portfolio has been given precedence over growth in volume. New lending New lending in the retail market amounted to SEK 3.5 billion and in the property-company market to SEK 1.0 billion. Funding SBAB's long-term objective is to achieve about an even balance between international and domestic funding. Expenses Administration expenses increased by SEK 11 million to SEK 113 million (102 million) compared to the corresponding period 2002. The increase is a result of increased marketing activities and more extensive development work compared to the same period last year. Loan losses and problem loans Loan losses remain at a low level and amounted to SEK 8 million, which is SEK 4 million less than for the corresponding period in 2002. Problem loans amounted to SEK 220 million (373 million). The provision ratio has increased from 49 per cent to 65 per cent (including general reserve). Co-operations SBAB has co-operations with Ikano Bank, Sparbanken Finn, Sparbanken Gripen, Salus Ansvar and ICA Banken. As previously SBAB's co-operation partners are important sales channels. Prospects for 2003 In 2003, SBAB will continue to follow the same aims and strategies as were set for operations in 2002. Summary for the SBAB Group March 2003 March 2002 Net operating income, SEK million 192 176 Loan losses net, SEK million 8 12 Return on equity A, % 1) 10.4 10.2 Return on equity B, % 2) 12.1 12.0 Capital ratio, % 9.9 9.8 Primary capital ratio, % 7.7 7.3 Equity ratio, % 3.4 3.1 Problem loans after provisions, 220 373 SEK million Income/expenditure ratio, 2.8 2.8 excluding loan losses Income/expenditure ratio, 2.6 2.5 including loan losses Rating, long-term debt Standard & Poor's AA- AA- Moody's A1 A1 Rating, short-term debt Standard & Poor's A-1+ A-1+ Moody's P-1 P-1 Lending, SEK million 134 625 137 289 Securitised loans, SEK million 17 692 18 497 Average number of employees 381 378 1) Operating income (after actual tax) for the last twelve months in relation to average equity capital. 2) Operating income for the reporting period ( annualised and after tax estimated at the standard rate), in relation to average equity capital. SBAB's interim report 1 January - 31 March 2003 is attached (4 pages). Questions will be answered by: Christer Malm, Managing Director tel +4 68-614 4301 Annelise Jansson, Head of Information tel +46 8-614 4355 or 46 8 70 637 12 72 Ricard Grundwall, Accounting Manager tel +46 8-614 4326 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/05/08/20030508BIT01400/wkr0001.doc http://www.waymaker.net/bitonline/2003/05/08/20030508BIT01400/wkr0002.pdf The full report