Allan Parik: the recovery in the credit market last year reflects expectations of economic growth

Today, the SEB Group published its financial results for 2024, which can be found at www.sebgroup.com/ir.

Allan Parik, Chairman of the Board of SEB Pank, commented on the results of SEB units in Estonia as follows:

SEB Pank Grupp earned a profit of 175 million euros in 2024. SEB’s contribution to the Estonian treasury nearly doubled in a year to 121.3 million euros. The income of customers depositing with SEB also doubled over the year. The increase in demand for credit shows an improving economic environment.

The most positive trend in 2024 was a recovery in lending activity. The loan portfolio of corporate customers grew by 9.3% over the year and loans to private customers by 5.5%. During the year, SEB financed more than 4,500 home purchases and more than 7,700 business ideas. In total, SEB’s loan portfolio grew by 7.1% in 2024. The quality of the loan portfolio has remained strong during the economic downturn, enabling a 5.6 million euros reduction in provisions for potential loan losses last year.

Deposit rates remained favourable for customers. Thus, the customers of SEB earned 103.7 million euros from deposits last year, while the same figure was 57.3 million euros in 2023 and only 3.24 million euros in 2022. This means that our customers earned 100 million euros more on their deposits last year than two years ago. Deposits of private individuals in SEB grew by 10% over the year. Business deposits fell by 2% over the year, a sign that the economic environment remains fragile and that some companies are having to rely on savings for day-to-day operations.

In December, we announced that we have decided to merge SEB Estonia, Latvia, and Lithuania into a single entity to support our customers’ growth plans as a larger, stronger, and more efficient bank. The merger of the three banks will create the bank with the largest capital base and funding capacity in the Baltics. This will allow us to further support the growth ambitions of SEB customers. It will also greatly simplify monitoring and reporting processes. The change is expected to enter into force at the beginning of 2027 and the regional headquarters of SEB will be located in Tallinn.

SEB Pank Grupp (the group) ended the year 2024 with a profit of 175.0 million euros (compared to 231.7 million euros in 2023). The operating income of the group reached 352.7 million euros (356.0 million euros in 2023) and operating expenses 85.0 million euros (78.4 million euros in 2023). The group reduced its net expected credit losses by 5.6 million euros (the respective amount was 3.1 million euros in 2023). Income tax was calculated at 98.3 million euros (47.1 million euros in the same period in 2023). The group paid a total of 121.3 million euros (64.5 million euros in 2023) in various taxes to the Estonian state in 2024.

Additional information:

Kristi Jänes
Communications Manager
Marketing and Communications Division
SEB

Tornimäe 2, 15010, Tallinn
Phone +372 665 5399
Mobile +372 5569 0616
Email kristi.janes@seb.ee