Commentary on the financial results of SEB in the first six months of 2022

Today, the SEB Group published its financial results for the first six months of 2022, which can be found here: www.sebgroup.com/ir

Allan Parik, Chairman of the Board of SEB Pank, commented on the results of the Estonian unit of SEB for the six months as follows:

The customers and the bank are focusing on energy-saving projects

The sharp increase in energy prices has dramatically increased the interest of customers in more efficient energy solutions. To assist people in preparing for autumn and winter, SEB helps households and companies finance the purchase of solar panels or the renovation of heating systems. The bank also tries to help them find other ways to reduce dependence on expensive fossil fuels. SEB is one of the few Estonian banks that has been awarded the Gold Label of Responsible Business Index, which means that we operate in an environmentally friendly way and fully support similar projects by our customers. The loan portfolio of SEB grew by 5 per cent year on year and exceeded the 6-billion-euro mark in half a year for the first time. SEB is not worried about more difficult times ahead in the economy because our strength lies in supporting our customers in difficult times. We are strong and our customers and partners can count on us.

The volume of deposits in SEB exceeded the 6 billion mark

The volume of deposits in SEB grew by 12.8 per cent year on year and also exceeded the 6 billion mark for the first time in the first half of the year. Customers are financially healthy and liquidity is being increased at the moment, which is reasonable considering the environment. The fall in the stock markets has made some customers take advantage of the situation, but there are also those whose appetite for investment has decreased. In the second quarter, SEB lowered investment-related fees, meaning we are now the best partner in Estonia for the average investor. We also expanded the capabilities of our Robo-Advisor so that customers can regularly invest their money in ETFs in addition to funds.

The number of employees increases by 4 per cent in the summer

In summer, our workforce increases by 4 per cent, as we provide nearly forty young people their first practical work experience. The competition for internship positions is tight, but worth it, because many interns will become our full-time employees in autumn. SEB has always been popular in the youth segment and not only as an employer – we have more than 75,000 young customers, which means that every third young person in Estonia starts managing their finances with our help. Therefore, it is important for us to teach financial literacy in schools, provide an internship programme, as well as update the product range with modern payment solutions such as Apple, Garmin, or Fitbit Pay.

The profit of SEB of the first half of the year was 49.2 million euros

The Estonian units of SEB ended the first six months of 2022 with a profit of 49.2 million euros, compared to 50.7 million euros at the same time last year. The operating income of SEB reached 88.8 million euros (86.8 million euros in the first half of 2021) and operating expenses 31.7 million euros (28.9 million euros in the first half of 2021). The bank increased the reserves for loan losses by 0.4 million euros (by 0.5 million euros in the first half of 2021). Income tax was calculated at 6.5 million euros (6.6 million euros in the first half of 2021). In total, SEB paid various taxes to the Estonian treasury in the first half of the year in the total amount of 18.2 million euros.

Additional information:

Silver Vohu
Head of Communications
SEB
Telephone +372 665 5393
Mobile + 372 521 1170
Email: silver.vohu@seb.ee