2. Highlights Q3 2008
Resilient underlying business; collective provisions in the Baltics
Negative financial effects due to financial crisis
Accelerated cost management due to economic downturn
Financial crisis impacts profit… …but underlying income generation is stable
5,000
10,000
4,000
8,000
3,000
6,000
2,000
4,000
1,000 2,000
0
0
Q4 * Q1
Q1 Q2 Q3 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007 2008 2007 2008
Lehman Brothers-related losses Other income**
Portfolio losses Net fee and commission income
Reported operating profit* Net interest income
* Excluding sales of Baltic properties in Q4 2007 of SEK 785m ** Net financial income, Net insurance income and Other income
and reclassification of portfolios
2
3. Key areas in focus
3. Capitalisation
1. Underlying business 2. Asset quality
Risk-weighted assets Net Credit Losses Tier 1 capital ratio end of Q3
SEK bn % of lending
15%
Basel I Basel II Germany Baltics
1 200 Without transition rules
Nordics SEB Group
Tier 1
With transition rules
1.00 Estonia 1.31
10.0%
900 Latvia 0.96
10%
Lithuania 0.43
0.80
Baltics 0.85
Tier 1
0.60
8,2 %
600
6% Stability
0.40 5% package
300 4% Swedish
0.20
FSA's
minimum rules
0.00
2006 2007 Q1 Q1- Q1-
0 0%
2008* Q2 Q3
Q1 Q3 Q1 Q3
2007 2008 *Annualised figures
3
4. … maybe 4 - Guarantee pricing in
the Swedish stability package
Maximum scope: for each bank: its outstanding debt maturing until
April 30th, 2009; for the system: SEK 1,500bn
Participating banks to pay a risk-based fee for the guarantee; Fee
level: somewhere between today's funding costs in the market and the
notional funding costs under normal market circumstances
Allowed instruments: senior term debt with maturities between 3
months and 5 years, including covered bonds!
Unsecured <1 year: 50bps
Unsecured >1 year: 50bps+28bps (CDS) = 78bps (+25bps)
Covered bonds: 25bps+ ~10bps (AAA-CDS) = ~35bps
4
5. Resilient underlying business
Corporate credit exposure Swedish mutual funds – Net inflows
Jan-Sep, SEK bn
SEK m , Q4-06, Q2-07, Q4-07, Q2-Q3-08
5.9
500
450
-1.1
400
-7.3
350 -11.6
-17.0
300
Robur SHB Nordea SEB Others
250
200
Life – Total sales
150
SEK bn
100
13.3
12.0
12.0 11.9
50 10.7
10.7 9.7
0
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5
6. Asset quality
Group credit exposure Impaired Loans Volumes
Total exposure = SEK 1,805bn % of Credit Portfolio
3% SEB Group Germany
Nordic Baltic
2%
Nordics 1.5%
1.4%
66% 1%
0.6%
0.2%
0%
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
Germany '06 '06 '06 '06 '07 '07 '07 '07 '08 '08 '08
24%
Baltics - Provisioning to build up reserves
SEK m
Specific Collective
Lithuania 350
5% Estonia 250
Latvia
3%
2% 150
50
-50
Q4-07 Q1-08 Q2-08 Q3-08
6
10. Nordic capital ratios
Tier 1 capital ratio reported Q3 2008 (%)
Tier 1 ratio - Full Basel II
Tier 1 ratio - Basel II transition rules
10.5
10.1 10.0 10.0
9.4
7.9
8.2 8.2
7.3 7.0
6.7
Swedbank Danske Bank SEB SHB DnB NOR Nordea
Notes:
1 Swedbank: Including SEK 12.5bn capital rasing announced 27 October 2008
2 Danske: only reports tier 1 ratio under full Basel II
3 DnB NOR: RWA adjusted for life insurance impact (life insurance assets risk weighted under statutory disclosure) to allow comparison
10
11. Reclassification of fixed income
portfolios in Q3 2008
After reclassification
Financial effects in Q3 2008
Net financial income SEK +516m
Q3 08
Operating profit SEK +516m
50
Net profit SEK +372m
Total equity SEK +1,797m 39
RWA
– Basel I: SEK +5.3bn
14
– Basel II: SEK -1.1bn 11
68
3
Core capital ratio and Total capital 1
ratio marginally affected
ABS Financial Covered
institutions bonds etc.
Loans & Receivables
Held for trading Available for sale
(No MTM, impairment tests)
(MTM over income) (MTM over equity)
11
12. Business update
Corporate lending growth continues – core clients, better structures and
higher margins
Household mortgage lending decelerates
Stable long-term savings
SEB Equities continues to gain market shares and FX trading still strong
Transaction numbers still on very high level
Private individuals remain cautious and seek advise – creates
opportunities
Investment portfolio remains healthy – reclassification limits volatility
impact
12
13. Nordic Outlook
Key themes
•Global recession - worst situation in 60 years
•Sweden and the Nordic region import international recession
•Baltic economies in for hard landing – but different degrees of recession
•Central banks enter zero-rate territory
•Global - partly synchronised, partly competing - stimuli from politicians
Annual GDP growth
Per cent 2007 2008 (f) 2009 (f) 2010 (f)
12
9
6
3
0
-3
-6
Sweden Nordics Estonia Latvia Lithuania
13
14. Going forward
● Holistic balance sheet management
● Robust capital and good liquidity
● Resilient customer business
● Cost management
14
