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Executive summary
Jan Erik BackCFO
1
2
Annual accounts 2008Higher operating income ● Strong net interest income● Lower commission income ● M-t-M valuation losses of SEK 1bn
Flat underlying costs● Redundancy costs SEK 1bn● Variable salaries -30%● Pension provisions SEK 0.7bn
Increased provisions for credit losses● Mainly driven by the Baltic development
012345
Q104
Q3 Q105
Q3 Q106
Q3 Q107
Q3 Q108
Q3
Operating profitExcluding one-offs and portfolio losses
Operating profit SEK bn
Operating incomeSEK bn
0
4
8
12
Q104
Q3 Q105
Q3 Q106
Q3 Q107
Q3 Q108
Q3
IncomeExcluding one-offs and portfolio losses
Q4
Q4
3
Q4 Q32008 2007 2008 2008
Operating income 41,140 40,440 12,714 9,221Operating expenses -25,407 -23,194 -6,965 -5,970Operating profit 12,471 17,018 4,028 2,526Net profit 10,050 13,642 3,509 1,886
Return on Equity, % 13.1 19.3 17.6 10.0Cost / income ratio 0.62 0.57 0.55 0.65Credit loss level, % 0.30 0.11 0.63 0.27
Tier I capital ratio, % 10.1 9.9 10.1 9.9
Key figures
SEK m
*Without transition floors
4
15,998
18,709
16,281
14,366
Jan-Dec 07 Jan-Dec 08
+17%
+13%
* volumes and margins on lending and deposits
Net interest income development 2008
Corporate lending, SEK bn
796481
8231,218
-6062,711Total NII growth
Lending marginLending volumeDeposit marginDeposit volumeFunding & other
464 458 462 487 532 501 538 564 579642 709
541
Q12006
Q2 Q3 Q4 Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q4
Customer driven*
Total NII
Continued growth of Net interest incomeGroup, SEK m
5
Gross development Jan-Dec 2008 vs. Jan-Dec 2007, SEK m
0
2,000
4,000
6,000
Q1 2004 Q1 2006 Q1 20080
50
100
150
200
Assets under custodyTransactions/day
1,808
4,114
1,0041,290648
7,3097,165 7,5477,022
3,370
New issues &advisory
Secondarymarket &
derivatives
Custody &mutual funds
Payment,cards,
structuredlending,
deposits,guarantees
Other
Jan – Dec 07Jan – Dec 08
-29%
-18%
-2% +3%
3.9%
4.3%
5.2%
5.4%
9.2%
Source: The Nordic stock exchanges
Market shares Nordic stock exchangesTurnover 2008
Assets under custodySEK bn ‘000s
Fee and commission income holding up
6
High activity in long-term savings
Other43%
Nordea9%
Swedbank15%
SEB15%
Skandia10%
Handelsbanken8%
Swedish mutual funds – Net inflows2008 Jan-Dec, SEK bn
Swedish savings marketQ3, market shares
SEB Savings barometer, Q3 2008
Private Banking – Net salesSEK bn
0
4
8
12
16
Q12005
Q2Q3Q4 Q12006
Q2Q3Q4 Q12007
Q2Q3Q4 Q12008
Q2Q3Q4
Life – Total salesSEK bn
0
2
4
6
Q12005
Q2 Q3Q4Q12006
Q2Q3 Q4Q12007
Q2Q3 Q4Q12008
Q2 Q3Q4
2.2
-13.5-18.6
6.5
SwedbankRobur
SHB Nordea SEB
7
-2,000
-1,000
0
1,000
2,000
3,000
4,000
FX Equities Capital Markets Other incl Treasury
Net financial income holding upFull-year breakdown over business areas, 2004 – 2008SEK m
Client-driven FX business●No.1 Nordic and No. 12 globally
●Underpinned by strong corporate relationships
●Highly efficient trading platform
MB investment portfolio ●SEK 133bn (31 Dec 2008)
●M-t-M losses SEK 187m in Q4●Structured credits 93 % AAA-rated
(31 Dec 2008)
8
Increased productivity Example: Group OperationsTransactions, millions
Group Operations 2008 vs. 2007
Increased # transactions +1.5m
Transactions/FTE +11%
Cost/transaction -10%
SEB Way freed up time 2006-2008 (FTEs)
0
200
400
600
800
1,000
1,200
1,400
1,600
Q106
Q2 Q3 Q4 Q107
Q2 Q3 Q4 Q108
Q2 Q3 Q40%
1%
2%
3%
4%
5%
6%
7%
Cumulative free-up FTEs (LHS)Freed-up FTEs (annualised run-rate) in % of total (RHS)
0
2
4
6
8
10
12
Q107
Q2 Q3 Q4 Q108
Q2 Q3 Q4
9
Cost management program
*
*
SEK -1,029m SEK 1.5 – 2.0bn
2007 2009
Achieved Target
2008 2010
769
374 318246
Redundancies Pensions One ITRoadmap
Acquisitions
Costs on comparable basis +2%
SEK 23.3bn
Operating expenses
2007
Cost dynamics
SEK 25.4bn
Operating expenses
2008
Change vs. 2007SEK m
Cost management program 2007 – 2009
10
Diversified credit portfolioCredit portfolio, SEK 1,934bn, 31 December 2008
Sweden50%
Lithuania 5%Latvia 3%
Estonia 3%
Germany25%
Property mgmt14%
Banks15%
Households25%Corporates
40%
Public administration
6%
Norway 6%
Other 5%
Denmark 2%Finland 2%
11
Corporate portfolioCorporate credit exposure 2008Total exposure = SEK 782bn
Credit exposure 2006 – 2008SEK bn
Baltic companies
12%
Large companies
76 %
Other companies
6% Swedish SMEs
6%
5470
40 435883
40 38
497
103 95
44 44
278
352
"Nordic"Larger
Companies
GermanLarger
Companies
BalticCompanies
SwedishRetailClients
Othercompanies
Dec '06 Dec '07 Dec '08
12
Private equity
Outstanding volumes – Private Equity
18.1 17.423.7
2006 2007 2008
Equity &mezzanine
Senior debt
20.218.6
25.2Currency effect SEK 2.5bn
SEK bn
13
Asset quality Baltics
0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%
Dec-07 Mar-08 Jun-08 Sep-08 Dec-08
Estonia Latvia Lithuania
Impaired loans gross% of credit exposure excl. banks
0
200
400
600
800
1000
2007 2008
Specific Collective
Provisioning to build up reservesSEK m
Provisions for Net Credit Losses% of lending
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2006 2007 2008
Germany BalticsNordics SEB Group
Estonia 1.17Latvia 1.43Lithuania 1.26Baltics 1.28
14
SEBLending totalSEB Lending
SEB’s Baltic lending relative the market Per cent, Q2 2005 – Q4 2008
EURbn EURbnEstonia Latvia
Excluding Leasing portfolioSource: Central Banks and SEB
EURbnLithuania
0
10
20
30
40
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q40%
10%
20%
30%
40%
0
10
20
30
40
Q205
Q4 Q206
Q4 Q207
Q4 Q208
Q40%
10%
20%
30%
40%
0
10
20
30
40
Q2 -05
Q4 Q206
Q4 Q207
Q4 Q208
Q40%
10%
20%
30%
40%
15
A diversified platformOperating profit before credit losses, Jan – Dec 2008
Geography – Adjusted for OtherDivisions – Adjusted for OtherSweden – adjusted for centralisation of CPM portfolio
4%
5%
9%
6%
6%
5%
56%
9%
35%
6%11%
48%
Retail Banking
Wealth Management
Life Merchant Banking
Germany Sweden
Lithuania
Latvia
Estonia
Norway
Finland
Denmark
16
SEB – A relationship bank
Cash management globallyScandinavian currencies globallyNordic stock brokerNordic and Baltic investment bankCustody Nordics and BalticsNordic asset managementSMEs Sweden
Strong customer base Product excellence
700
400,000
5 million
1,800
Large companies
Financial institutions
SMEs
Private individuals
1717
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