SEB's year-end report
The operating profit for the fourth quarter 2020 amounted to SEK 6.4bn with a return on equity of 12.2 per cent and a Common Equity Tier 1 capital ratio of 21 per cent. The operating profit for 2020 amounted to SEK 19.8bn with a return on equity of 9.7 per cent. The Board of Directors proposes a dividend of SEK 4.10 per share.
"Throughout the year, our financial strength has enabled us to support our customers. Despite the challenging economic environment, SEB’s business model proved resilient during the year, delivering operating income in local currencies that was broadly unchanged compared to 2019. However, the pandemic affected the income composition, weighing negatively on SEB’s debit and credit card business, while at the same time the increase in volatility supported the Fixed Income, Currencies and Commodities business. The net interest income increased by 10 per cent during the year while the net expected credit losses amounted to 26 basis points.
With the objective to create further financial flexibility to better support our customers over time, we have revised our financial targets for the Group and share repurchases will be the main form of capital distribution when the capital buffer exceeds and is projected to remain above the target range,” says Johan Torgeby, President and CEO.
Financial information
| Q4 | Q3 | Q4 | Jan–Dec | ||||||||||||||||||||||
| SEK m | 2020 | 2020 | % | 2019 | % | 2020 | 2019 | % | |||||||||||||||||
| Total operating income | 13 066 | 12 563 | 4 | 14 089 | -7 | 49 717 | 50 134 | -1 | |||||||||||||||||
| Total operating expenses | -5 842 | -5 547 | 5 | -6 026 | -3 | -22 747 | -22 945 | -1 | |||||||||||||||||
| Net expected credit losses | - 835 | -1 098 | -24 | - 997 | -16 | -6 118 | -2 294 | 167 | |||||||||||||||||
| Operating profit before items affecting comparability |
6 382 | 5 916 | 8 | 7 063 | -10 | 20 846 | 24 894 | -16 | |||||||||||||||||
| Items affecting comparability1) | -1 000 | ||||||||||||||||||||||||
| Operating profit | 6 382 | 5 916 | 8 | 7 063 | -10 | 19 846 | 24 894 | -20 | |||||||||||||||||
| NET PROFIT | 5 123 | 4 766 | 7 | 5 831 | -12 | 15 746 | 20 177 | -22 | |||||||||||||||||
| Return on equity, % | 12.2 | 11.7 | 15.5 | 9.7 | 13.7 | ||||||||||||||||||||
| Return on equity excluding items affecting comparability, % | 12.1 | 11.6 | 15.5 | 10.3 | 13.8 | ||||||||||||||||||||
| Basic earnings per share, SEK | 2.37 | 2.21 | 2.70 | 7.28 | 9.33 | ||||||||||||||||||||
| 1) Administrative fine issued by the Swedish FSA. See note 8. | |||||||||||||||||||||||||
You can download the Quarterly Report, Results Presentation and Fact Book from https://sebgroup.com/investor-relations/reports-and-presentations/financial-reports.
This is information that Skandinaviska Enskilda Banken AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at around 7.00 am CET, on 27 January 2021.
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
Karin Lepasoon, Head of Group Marketing and Communication
+46 771 62 10 00
karin.lepasoon@seb.se
Frank Hojem, Head of Corporate Communication
+46 70 763 9947
frank.hojem@seb.se
SEB is a leading Nordic financial services group with a strong belief that entrepreneurial minds and innovative companies are key in creating a better world. SEB takes a long-term perspective and supports its 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 its presence in some 20 countries worldwide. At 31 December 2020, the Group's total assets amounted to SEK 3,040bn while its assets under management totalled SEK 2,106bn. The Group has around 15,500 employees Read more about SEB at https://www.sebgroup.com