SEB Group operating profit for the first quarter 2009: SEK 1.8bn

SEB Group in Latvia reports gross profit of 18.1 million Lats for first quarter of 2009 (18.2 mil Ls in 2008 Q1)

• Provisions for credit losses amounted to 27.4 million Lats (2.1)
• Operating result for the first quarter was 9.5 million Lats (profit -16.1)
• Total operating profit for SEB Group, in all countries of operation, SEK 1.8 bn (2.4) 

SEB Group in Latvia – first quarter of 2009

• Income from basic activity was 31.0 million Lats (30.7), retaining equivalent business volume at the level of respective period a year ago. Gross profit or profit before taxes and provisions for credit losses amounted to 18.1 million Lats (18.2).
• Capital adequacy ratio on March 31: 13,3%
• Liquidity ratio on March 31: 47,32%
• Assets in Latvia on March 31 were 3.3 billion Lats (3.4). Capital and reserves for the end of the respective period in Latvia were 269.4 million Lats (267.4).
• The volume of client deposits was 1.2 billion Lats (1.3), maintaining stable deposit portfolio during the economic recession period. Household credit volume at the end of quarter was 730.8 million Lats (706.1), and total credit portfolio reached 2.6 billion Lats (2.6).
• In accordance with its prudent banking practices, SEB Group takes a conservative approach to making provisions for credit losses. 
• On March 31 the total number of clients in Latvia reached 900,000, of which 66,000 were business clients.

SEB Group's president in Latvia Ainārs Ozols:

"The results of the first quarter reaffirm the SEB Group policy – maximum focus on providing professional financial services in the given country, by providing to the clients the best in the area of financial services. Despite the economic circumstances, SEB Group's work in Latvia is being carried out in accord with SEB's plans to operate in Latvia long-term, therefore the issue of forming reserves for uncertain credits (allowances for credit losses) in maximal volume is the question of SEB Group's attitude towards both groups clients and shareholders."

The SEB Group – first quarter of 2009

• Operating profit before provisions for credit losses amounted to SEK 4,186m (2,771). Operating profit was SEK 1,802m (2,410)
• Operating income rose by 30 per cent and operating expenses by 10 per cent compared with the first quarter of 2008.
• Provisions for credit losses increased, to SEK 2,386m (364).
• Return on equity was 4.9 per cent (9.6) and earnings per share SEK 1.03 (1.92).
• SEB's rights issue of SEK 15.1bn was successfully completed. Tier I capital ratio was 12.0 per cent (9.7).

Annika Falkengren, President and CEO:

"SEB's underlying business has started the year on a strong note. Continued high earnings capacity going forward and the increased capital strength after the rights issue will provide a substantial buffer to withstand further expected deterioration of overall business conditions. "