SEB’s first quarter 2023 results
SEB’s operating profit for the first quarter 2023 amounted to SEK 11.6bn, with a return on equity of 17.9 per cent, a CET1 capital ratio of 19.2 per cent, and a capital management buffer of 480 basis points.
“SEB had a good start to the year. During the first quarter, customer sentiment, activity and our results were to a large degree affected by external factors such as higher interest rates and the increased volatility in financial markets,” says Johan Torgeby, SEB’s President and CEO.
SEB’s large corporate customers remained cautious during the quarter, which was reflected in stable lending and increased deposit volumes while the demand for risk management services remained high. Financial institutions continued to focus on risk management while remaining active in the new interest rate environment. SEB’s retail customers continued to be cautious on taking on more debt, and the bank can now see an accelerating shift of deposits into its higher-yielding savings accounts.
“We believe some of the positive effects on net interest income from higher interest rates to be transitory as both corporate and household customers keep adapting to the new interest rate environment,” says Johan Torgeby.
Income statement
| Q1 | Q4 | Jan-Mar | Full year | |||||||
| SEK m | 2023 | 2022 | % | 2023 | 2022 | % | 2022 | |||
| Total operating income | 19 060 | 18 798 | 1 | 19 060 | 14 739 | 29 | 64 478 | |||
| Total operating expenses | -6 465 | -6 757 | -4 | -6 465 | -5 793 | 12 | -25 044 | |||
| Net expected credit losses | - 272 | - 506 | -46 | - 272 | - 535 | -49 | -2 007 | |||
| Imposed levies: Risk tax and resolution fees | - 702 | - 578 | 21 | - 702 | - 582 | 21 | -2 288 | |||
| Operating profit before items affecting comparability |
11 620 | 10 957 | 6 | 11 620 | 7 828 | 48 | 35 138 | |||
| Items affecting comparability | -1 399 | -100 | -1 399 | |||||||
| Operating profit | 11 620 | 9 558 | 22 | 11 620 | 7 828 | 48 | 33 739 | |||
| NET PROFIT | 9 393 | 7 402 | 27 | 9 393 | 6 374 | 47 | 26 877 | |||
| Return on equity, % | 17.9 | 14.7 | 17.9 | 13.3 | 13.8 | |||||
| Return on equity excluding items affecting comparability, % | 17.9 | 17.4 | 17.9 | 13.3 | 14.5 | |||||
| Basic earnings per share, SEK | 4.45 | 3.49 | 4.45 | 2.96 | 12.58 | |||||
| Comparative figures for 2022 have been restated for the transition to IFRS 17 Insurance contracts. See section on restated comparative figures for further information. |
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This disclosure contains information that SEB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 26-04-2023 07:00 CET.
For further information, contact:
Masih Yazdi, CFO
+46 771 62 10 00
Pawel Wyszynski, Head of Investor Relations
+46 70 462 2111
pawel.wyszynski@seb.se
Niklas Magnusson, Head of Media Relations & External Communication
+46 70 763 8243
niklas.x.magnusson@seb.se
SEB is a leading northern European financial services group with international reach. We exist to positively shape the future with responsible advice and capital, today and for generations to come. By partnering with our customers, we want to be a leading catalyst in the transition to a more sustainable world. In Sweden and the Baltic countries, SEB offers financial advice and a wide range of financial services. In Denmark, Finland, Norway, Germany and the United Kingdom, we have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients. The international nature of SEB's business is reflected in our presence in more than 20 countries worldwide, with around 16,500 employees. At 31 March 2023, the Group's total assets amounted to SEK 3,802bn while assets under management totalled SEK 2,221bn. Read more about SEB at sebgroup.com.