OREANDA-NEWS. October 27, 2009. SEB Group operating profit for January-September 2009:

SEK 388m. SEB Latvia operating result for 3rd quarter 2009:

LVL 66, 3m loss.

SEB Latvian operating results January-September 2009

Operating income reached LVL 92.9m – 4 per cent higher compared to 2008 year result, when 9-month income was LVL 89.4 million

Costs during the period was LVL 38.1m – 2 per cent lower than 9 month costs year before

Operating profit or earnings before taxes and provisions for non performing loans amounted to LVL 54.8m, an increase of 9 per cent compared with 9 month result of 2008

Provisions of LVL 174.6m were done during this period, in the 3rd quarter SEB Group rebooked all the group provisions for Latvia in amount of LVL 42.9m to local level. During the 3rd quarter provision of LVL 52.9m were done.

Operating loss during 3rd quarter was LVL 66.3m; SEB Latvia operating result for January-September was LVL 104, 3m losses

Customer deposits on the 30th September was LVL 981.8m

Total loan portfolio amounted to LVL 2.5bn

Capital and reserves for the period was LVL 206.8m

Assets reached LVL 3bn on the 30th September – decrease of 11 per cent compared to last years amount

SEB Latvian capital adequacy ratio on the 30th of September was 13.23 per cent

SEB Latvian liquidity ratio on the 30th of September was 49.53 per cent

At the end of September, SEB Latvian served more than 900 thousand customers, of which 66 thousand legal entities

Group's business activities

SEB life insurance market share rose from 41 to 45 per cent during reported period. Premiums increased by 18% compared with the previous year, reaching LVL 9.9m.

SEB Wealth Management continued implementation of prudent and cautious business strategy. The total capital managed by SEB Wealth Management increased by 22.6 per cent reaching LVL 379.3m. SEB Wealth Management 9-month operating results or earnings before taxes reached LVL 1m increased by 74.3 per cent. The state-funded pension scheme funding within SEB Wealth Management during reported period increased by LVL 44.3m or 40.1 per cent, reaching LVL 154.7m. SEB Wealth Management investment fund Lat reserve fund assets reached LVL 72.7m, the volume of assets grew by LVL 6.9m or 10.5 per cent.

SEB open pension fund had accumulated more than LVL 35m that is 11 per cent increase this year. Although slightly diminished amount of contributions, it still remained at high levels - LVL 5.96m. SEB open pension fund has paid out LVL 4.55m for those who are 55 years old and feel necessity to use this capital. SEB pension fund is the largest open pension fund in Latvia, with 56 per cent market share. At the end of the reporting period, SEB pension fund was securing long-term savings for 70 700 participants or 40 per cent of all participants in the open pension funds.

SEB leasing has provided new funding for the leasing for more than LVL 20m during reported period: 49 per cent for auto leasing, 23 per cent - financing of commercial transportation, 28 per cent - industrial equipment financing. Factoring business has been financed for LVL 107.8m.

The usage of electronic services
 
During 3rd quarter international financial magazine Global Finance Magazine has nominated SEB banka Ibanka the best online banking in Latvia to individuals. Ibanka activity was evaluated by world-class experts, taking into account online banking functionality, safety, design, product range, bank strategy and other relevant factors. SEB banka internet bank Ibanka was also recognized as the safest online banking to individuals in Central and Eastern European region. The increase of SEB internet bank users reached 14 per cent during 9 month period, reaching 551 195. The same increase has been reached within payments. On the 30th of September SEB banka had issued more than 535 000 the payment card. During 9 months period there have been more than 20 millions transactions done with the cards.

Head of SEB Latvia Ainars Ozols:

"These 9 months logical outlines a number of trends. First, the long-term relationships with our customers and providing necessary support to both new business, as well as mutual understanding of credit support, we have provided a moderate level of income increases. Second, all three quarters are based on reduced operational costs, realizing in the extent to maintain a professional financial services, while moving to optimal cost/income level. Compared to 2nd quarter expenses were reduced by 14%. Third, the lending portfolio reduction goes together with overall economic development. SEB Group has expressed its long-term business strategy of the Baltic countries, proving their commitment to support customers with new funding for sound business and reasonable customer participation. Following the economic development, as well as the SEB Group's financial performance framework, SEB banka increased its equity capital for 30 millions lats during the 3rd quarter. "

SEB's first three quarters – operating profit SEK 2.8 bn (8.4) 
Profit before provisions for credit losses amounted to SEK 12,068m (9,967), an increase of 21 per cent. Adjusted for goodwill impairment and capital gains, profit before losses rose by 38 per cent
Operating profit amounted to SEK 2,808m (8,443) and net profit to SEK 894m (6,543).
Operating income increased by 21 per cent. Net interest income rose by 20 per cent and Net fee and commission income dropped by 8 per cent. Net other income included a capital gain of SEK 1.3bn
Operating expenses, excluding goodwill impairment charges of SEK 3.0bn, were up by 5 per cent
Provisions for credit losses were SEK 9,288m (1,528); the net credit provision level 0.91 per cent (0.19)
Return on equity was 1.2 per cent (11.6) and earnings per share SEK 0.57 (6.75)
The core Tier 1 capital ratio was 11.8 per cent and the Tier 1 capital ratio 13.5 per cent

SEB's President and and Group Chief Executive Annika Falkengren:

"SEB's result for the third quarter is solid evidence of our position as a relationship bank and our diversified business mix. During the year, we have established a strong financial position. In combination with emerging signs of economic stability and better functioning financial markets, we have decided not to apply for prolongation of the Swedish Funding Guarantee Programme. SEB has not utilized the Programme."

SEB group is a Northern European financial institution that provides banking services to 400 thousand companies and institutional customers and five million private persons in Scandinavia, the Baltic States, Germany, Poland, Ukraine and Russia and is internationally represented in 10 other countries. SEB group employs more than 20 000 employees. For more about the SEB group: www.sebgroup.com.