SEB posts a 42% drop in Q1 operating results

Swedish financial company SEB, parent of Germany's SEB Immobilien-Investment Gesellschaft, on Wednesday reported a 42% drop in operating result in its first interim report for 2008 . The company said operating results for the first quarter of 2008 amounted to SEK 2.410bn (EUR 258mln), a decrease of 42% compared with the corresponding quarter of 2007 and 47% down from the previous quarter. The company reported that return on equity was 9.6% and net profit was SEK 1.848bn, corresponding to SEK 2.70 per share.

Operating income for the first quarter of 2008 was down by 14% compared with the year-earlier period and by 12% from the previous quarter. Valuation losses on fixed-income securities portfolios amounted to SEK 872mln and SEK 1.630bn in equity.

Operating expenses increased by 4% compared with the corresponding quarter last year and were 2% higher than in the previous quarter. On a comparable basis, costs were flat. The company report noted that net credit losses increased, mostly due to collective provisions for loans in Estonia.

Commenting on the interim results, SEB's president and group chief executive officer Annika Falkengren said: 'After nine months with the most severe dislocations of the financial markets for decades, signs have become more evident that also the real economy is affected. With SEB's activity-based business mix, customers' more cautious investment sentiment lowered earnings. Our strong balance sheet provides multiple business opportunities going forward.'