SEB’s second quarter 2022 results
SEB’s operating profit for the second quarter of 2022 amounted to SEK 7.3bn, with a return on equity of 12.3 per cent on a capital management buffer that exceeds the regulatory requirement by 480 basis points.
“The heightened level of global uncertainty prevailed in the second quarter, driven by Russia’s war in Ukraine, the energy crisis, and continued supply-chain disruptions – with continuously increasing global inflationary pressure and higher interest rates also contributing,” says Johan Torgeby, SEB’s President and CEO. “Despite a worsening macroeconomic backdrop, SEB is reporting a solid operating result for the second quarter, enabled by our diversified business model.”
Total operating income amounted to SEK 14.4bn, a decrease of only 2 per cent compared with the previous quarter. The operating profit amounted to SEK 7.3bn and return on equity was 12.3 per cent. SEB’s capital and liquidity position remains strong, with a capital buffer of 480 basis points. The underlying asset quality remained robust, and net expected credit losses amounted to 6 basis points, due to less favourable macroeconomic scenarios. SEB continues to believe that the bank is well reserved and therefore net expected credit losses are likely to remain at a low level for the full year.
“As the environment in which we are operating changes, many of our customers are facing a more challenging situation,” says Johan Torgeby. ”We strive to take a long-term perspective and to support them in both good times and bad.”
Income statement
| Q2 | Q1 | Q2 | Jan-Jun | Full year | |||||||||
| SEK m | 2022 | 2022 | % | 2021 | % | 2022 | 2021 | % | 2021 | ||||
| Total operating income | 14 441 | 14 768 | -2 | 13 924 | 4 | 29 209 | 27 539 | 6 | 55 638 | ||||
| Total operating expenses | -6 201 | -5 793 | 7 | -5 759 | 8 | -11 995 | -11 477 | 5 | -23 245 | ||||
| Net expected credit losses | - 399 | - 535 | -26 | - 7 | - 933 | - 163 | - 510 | ||||||
| Imposed levies: Risk tax and resolution fees | - 556 | - 582 | -5 | - 242 | 130 | -1 138 | - 509 | 124 | -1 019 | ||||
| Operating profit | 7 285 | 7 857 | -7 | 7 916 | -8 | 15 142 | 15 391 | -2 | 30 864 | ||||
| NET PROFIT | 5 842 | 6 403 | -9 | 6 574 | -11 | 12 244 | 12 591 | -3 | 25 423 | ||||
| Return on equity, % | 12.3 | 13.4 | 14.7 | 12.8 | 14.2 | 13.9 | |||||||
| Basic earnings per share, SEK | 2.73 | 2.98 | 3.04 | 5.70 | 5.82 | 11.75 | |||||||
| Comparative figures for 2021 have been restated. See section on restated comparative figures for further information. | |||||||||||||
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 14-07-2022 07:00 CET.
For further information, contact:
Masih Yazdi, CFO
+46 771 62 10 00
Per Andersson, Acting Head of Investor Relations
+46 70 667 74 81
per.andersson@seb.se
Frank Hojem, Head of Corporate Communication
+46 70 763 9947
frank.hojem@seb.se
SEB is a leading northern European financial services group with a strong belief that entrepreneurial minds and innovative companies are key in creating a better world. We take a long-term perspective and support our customers in good times and bad. 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, the bank's operations 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 16,000 employees. At 30 June 2022, the Group's total assets amounted to SEK 4,113bn while its assets under management totalled SEK 2,100bn. Read more about SEB at sebgroup.com.