"Operating income in the quarter exceeded SEK 10bn which reflected a strong fee generation capacity. For the full year, profit before credit losses increased by 7 per cent, excluding one-off items by 15 per cent." says Annika Falkengren, SEB’s President and CEO, commenting on the Annual Accounts 2012.
"As we close the former 3-year plan, SEB’s platform is considerably stronger. We have attracted close to 300 large corporate clients in Merchant Banking and for the first time been recognised as the leading corporate bank in the Nordic region. We have clearly strengthened our position in the Swedish SME business with strong improvements of customer satisfaction."
"Going forward, the long-term financial targets reflect our higher ambition of having the most satisfied customers and closing the financial performance gap to peers. On the cost side, we lower the cost-cap to SEK 22.5bn for 2013 and 2014."
Excluding communicated items of a one-time character (22 January), profit before credit losses amounted to SEK 4.3bn (SEK 3.3 bn in the fourth quarter of 2011). Operating income amounted to SEK 10.0bn, up 8 per cent compared to the fourth quarter 2011. Operating expenses, at SEK 5.8bn, were 4 per cent higher than the fourth quarter 2011. Operating profit amounted to SEK 4.0bn.
Including one-off items, operating income amounted to SEK 9.6bn and operating expenses SEK 6.5bn. Operating profit was SEK 2.8bn. Net profit amounted to SEK 3.2bn corresponding to a return on equity of 11.9 per cent.
Provisions for credit losses amounted to SEK 0.3bn, corresponding to a net credit loss level of 8 bps.
The liquidity coverage ratio was 113 per cent, the core liquidity reserve amounted to SEK 373bn and the total liquid resources were SEK 632bn.
The Core Tier 1 capital ratio was 15.1 per cent (13.7 at year-end) according to current regulation. According to Basel III, the Common Equity Tier 1 ratio was 13.1 per cent.
The Board proposes a dividend per share of SEK 2.75 corresponding to a pay-out ratio of 52 per cent of earnings per share at SEK 5.31 for the full year.