SEB’s third quarter 2022 results
SEB’s operating profit for the third quarter of 2022 amounted to SEK 9.1bn, with a return on equity of 14.9 per cent on a capital management buffer of 410 basis points.
“The higher inflation, rising interest rates and volatile financial markets clearly impacted customer sentiment, activity and our results in the quarter,” says Johan Torgeby, SEB’s President and CEO. “With our solid earnings capacity, capital and liquidity buffers, we believe we are in a favourable position to continue to support our customers and invest in our business in line with our 2030 Strategy. As conditions now become increasingly challenging for many of our customers, we aim to remain a stable and trustworthy partner.”
Operating profit in the third quarter rose to SEK 9.1bn from SEK 7.3bn in the previous quarter, driven by higher operating income while operating expenses were stable. Return on equity increased to 14.9 per cent from 12.3 per cent in the previous quarter, and the capital management buffer amounted to 410 basis points. Asset quality continues to be robust, while further downward revisions of the macroeconomic outlook resulted in net expected credit losses increasing to 8 basis points.
Income statement
| Q3 | Q2 | Q3 | Jan-Sep | Full year | |||||||||
| SEK m | 2022 | 2022 | % | 2021 | % | 2022 | 2021 | % | 2021 | ||||
| Total operating income | 16 551 | 14 441 | 15 | 13 971 | 18 | 45 759 | 41 511 | 10 | 55 638 | ||||
| Total operating expenses | -6 293 | -6 201 | 1 | -5 671 | 11 | -18 288 | -17 148 | 7 | -23 245 | ||||
| Net expected credit losses | - 567 | - 399 | 42 | - 49 | -1 501 | - 211 | - 510 | ||||||
| Imposed levies: Risk tax and resolution fees | - 572 | - 556 | 3 | - 255 | 125 | -1 711 | - 764 | 124 | -1 019 | ||||
| Operating profit | 9 118 | 7 285 | 25 | 7 997 | 14 | 24 260 | 23 388 | 4 | 30 864 | ||||
| NET PROFIT | 7 311 | 5 842 | 25 | 6 634 | 10 | 19 555 | 19 225 | 2 | 25 423 | ||||
| Return on equity, % | 14.9 | 12.3 | 14.1 | 13.5 | 14.2 | 13.9 | |||||||
| Basic earnings per share, SEK | 3.43 | 2.73 | 3.06 | 9.13 | 8.88 | 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 26-10-2022 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
Frank Hojem, Head of Corporate Communication
+46 70 763 9947
frank.hojem@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 30 September 2022, the Group's total assets amounted to SEK 4,277bn while assets under management totalled SEK 2,018bn. Read more about SEB at sebgroup.com.