SEB presentation Masih Yazdi, Finance Director

24 September 2019

A leading Nordic financial services group operating in strong macroeconomic economies

2,300 Large

corporations

700 Financial

institutions

400k Small & medium-sized companies

4m Private

individuals

39%

37%

12%

7% 5%

Large Corporates & FinancialInstitutionsCorporates & PrivateCustomersBaltic Banking

Life

Investment Management

Divisional breakdown Operating profit H1 20191

60% 22%

13% 5% Sweden

Nordics ex Sweden

Baltics

Germany & UK

Geographical breakdown Operating profit FY 20181

Return on Equity Cost / Income

CET1 ratio Net ECL level

13.2%

16.6% 7bps

Key numbers in brief H1 2019

0.47

1 Operating profit before items affecting comparability. Excl. International network and eliminations

2

Financial summary

2019 January-June

2018 January-June

% SEK m

Net interest income 11,037 10,488

Net fee & commission income 9,026 9,005

Net financial income 3,600 3,062

Other income 440 136

Total operating income 24,103 22,690 6

Total operating expenses -11,329 -10,957 3

Profit before credit losses 12,774 11,733 9

Expected credit losses etc. -807 -309

Operating profit before IAC 11,967 11,424 5

IAC 4,506

Operating profit 11,967 15,930 -25 3

NII driven by volume development offset by rates, margin pressure and resolution fund fees

2019 January-June

2018 January-June

% SEK m

Net interest income 11,037 10,488

Net fee & commission income 9,026 9,005

Net financial income 3,600 3,062

Other income 440 136

Total operating income 24,103 22,690 6

Total operating expenses -11,329 -10,957 3

Profit before credit losses 12,774 11,733 9

Expected credit losses etc. -807 -309

Operating profit before IAC 11,967 11,424 5

IAC 4,506

Operating profit 11,967 15,930 -25

Net interest income development (SEK bn)

Credit portfolio development (SEK bn)

0.6 0.9

1.1 1.1

1.1 1.2 1.4

1.8 2.5

2.1

2010 2011 2012 2013 2014 2015 2016 2017 2018 1H'19x2

Resolution fund fee to decline by SEK 600-800m in 2020

Regulatory fees

0

200

400

600

800

1 000

1 200

Dec

10

Dec

11

Dec

12

Dec

13

Dec

14

Dec

15

Mar

16

Jun

16

Oct

16

Dec

16

Mar

17

Jun

17

Oct

17

Dec

17

Mar

18

Jun

18

Oct

18

Dec

18

Mar

19

Jun

19

Corporates HouseholdsCommercial real estate Residential real estateHousing co-ops

CAGR ’10-19

7%

3%

4% 4%

11%

4

Financial summary

2019 January-June

2018 January-June

% SEK m

Net interest income 11,037 10,488

Net fee & commission income 9,026 9,005

Net financial income 3,600 3,062

Other income 440 136

Total operating income 24,103 22,690 6

Total operating expenses -11,329 -10,957 3

Profit before credit losses 12,774 11,733 9

Expected credit losses etc. -807 -309

Operating profit before IAC 11,967 11,424 5

IAC 4,506

Operating profit 11,967 15,930 -25 5

NFCI consists mainly of stable and recurrent income

% SEK m

1 000

2 000

3 000

4 000

5 000

6 000

Payments, card, lending Asset value based Activity based

Life insurance income Life insurance income

47%

32%

13%

7%

15%

Net fee & commission income components (SEK m)

1 261 1 328

1 475

1 708 1 668 1 749

1 830 1 699

1 932

Dec2011

Dec2012

Dec2013

Dec2014

Dec2015

Dec2016

Dec2017

Dec2018

Jun2019

Assets under management (SEK bn)

48.8 51.6 53.5 58.6 61.1 62.2 64.7 69.2 70.1

Dec2011

Dec2012

Dec2013

Dec2014

Dec2015

Dec2016

Dec2017

Dec2018

Jun2019

Turnover Cards (SEK bn) 47%

32%

CAGR ’11-19: 6%*

CAGR ’11-19: 5%

* Definition of AUM changed from 2015. Divestment of SEB Pension in 2018

6

Financial summary

2019 January-June

2018 January-June

% SEK m

Net interest income 11,037 10,488

Net fee & commission income 9,026 9,005

Net financial income 3,600 3,062

Other income 440 136

Total operating income 24,103 22,690 6

Total operating expenses -11,329 -10,957 3

Profit before credit losses 12,774 11,733 9

Expected credit losses etc. -807 -309

Operating profit before IAC 11,967 11,424 5

IAC 4,506

Operating profit 11,967 15,930 -25 7

Net financial income stable over time

%

Net interest income

Net fee & commission income

Net financial income

Other income

Total operating income 24,103 22,690 6

Total operating expenses -11,329 -10,957 3

Profit before credit losses 12,774 11,733 9

Expected credit losses etc. -807 -309

Operating profit before IAC 11,967 11,424 5

IAC 4,506

Operating profit 11,967 15,930 -25

Median LCFI

Median Group

0

500

1 000

1 500

2 000

2 500

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

LC&FI Other divisions and Treasury

Net financial income development SEK m

8

Financial summary

2019 January-June

2018 January-June

% SEK m

Net interest income 11,037 10,488

Net fee & commission income 9,026 9,005

Net financial income 3,600 3,062

Other income 440 136

Total operating income 24,103 22,690 6

Total operating expenses -11,329 -10,957 3

Profit before credit losses 12,774 11,733 9

Expected credit losses etc. -807 -309

Operating profit before IAC 11,967 11,424 5

IAC 4,506

Operating profit 11,967 15,930 -25 9

Expenses to large extent driven by cost of staff

% SEK m Total staff cost/FTE 1H 2019, SEK ‘000

738

974 997 1 028 1 098 1 124

1 230 1 314 1 338

1 466

1 863

2 119 2 279

SEB

Nordic peers International peers

Nordic peers: SHB, Swedbank, Nordea, Danske, DNB International peers: Barclays, ING, Deutsche B ank, ABN Amro, UBS, Credit Suisse, JP Morgan

0.57

0.48

0.65

0.48

0.56 0.52

0.41 0.42 0.47 0.49

0.59 0.60

SEB

C/I ratio 2010 vs 1H 2019, Nordic peers

2010 1H 2019

10

0.2

0.4

0.6

0.8

Continued improvement of operating leverage through diligent efficiency savings Average quarterly income1

(SEK bn)

9.2 9.4 9.8 10.4 10.9 11.2 10.8 11.4 11.5 12.1

Avg2010

Avg2011

Avg2012

Avg2013

Avg2014

Avg2015

Avg2016

Avg2017

Avg2018

Jan-Jun2019

Average quarterly expenses1

(SEK bn)

5.8 5.9 5.7 5.6 5.4 5.5 5.5 5.5 5.5 5.7

Avg2010

Avg2011

Avg2012

Avg2013

Avg2014

Avg2015

Avg2016

Avg2017

Avg2018

Jan-Jun2019

Average quarterly profit before credit losses (SEK bn)

3.4 3.5 4.1 4.8 5.5 5.7 5.4 5.9 6.0 6.4

Avg 2010 Avg 2011 Avg 2012 Avg 2013 Avg 2014 Avg 2015 Avg 2016 Avg 2017 Avg 2018 Jan-Jun20191 Excluding items affecting comparability.

C/I r

atio

C/I ratio 0.47

11

Negative interest rates

Macro outlook – corporate activity

AML

12

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