Today, SEB Grupp published the economic results for Q1 2015

Today, SEB Grupp published the economic results for Q1 2015. Information about the results is available here: www.sebgroup.com/ir.

Riho Unt, Chairman of the Management Board of SEB Pank, commented on the results of SEB units in Estonia, as follows:

It is internal consumption that is helping to sustain the growth trend of the Estonian economy, and if no setbacks are encountered in the recovery of the European economy, then there is good potential for the continued strengthening of the Estonian economy as well.

Consumer purchasing power has increased

Consumer purchasing power has improved, acting as a driver for economic development. When compared to the first quarter of last year, private clients’ deposits at SEB grew by 7.2 per cent. SEB issued 41 per cent more home loans than the year before.

In view of the rapid growth of deposits, it is evident that more money is also moving to securities and alternative forms of investment. This trend is largely the result of the desire to find a higher rate of return on deposits with extremely low interest rates. It would be wise to consult the specialists at the bank before making investment decisions, to make sure that the investments match your level of risk tolerance. In addition to the stock market, allocating money into real estate with the aim of renting it out is also gaining in popularity. Both the growth of the stock market as well as the emergence of a more speculative real estate market are related to the bond purchasing plans of the central bank, forcing investors to search for more profitable, but also riskier, options for allocating money on the market.

Companies establishing themselves in new markets

A year has passed since the escalation of the Russian-Ukrainian crisis and the sanctions that followed, and one has to admit that Estonian companies have successfully survived the difficult period. Several companies have managed to enter Central European markets, and there has been a new wave of expansion into the Baltic States. It is, however, evident that the full impact of the Russian crisis has not reached the Estonian economy yet, although our companies’ capacity for survival has been better than initially expected. Difficulties are mainly experienced by companies who were in a more challenging situation already before the crisis. The situation is difficult, and is going to be difficult for a while for farmers; and the smaller the producer, the harder it can be for them. SEB is putting special emphasis on supporting farmers, by granting them grace periods, providing financial counselling to companies, and looking for solutions together.

Currently it is important for the companies to employ the competences of financial management, so that the volatility of the financial markets would not damage the actual business activity of the company. So, this is the time for strong chief financial officers and financial management, and SEB is also assisting their clients in this area by proactively offering financial counselling to its clients. SEB measures satisfaction with their services on a regular basis, and the mark of the current era is that satisfaction with business consultations is at a record high – sound financial advice is vital in the current market situation.

The three keywords for the current year are geopolitics, digitalisation and optimism. Geopolitical uncertainty will continue to accompany us for a long time and in such an environment success is only achieved by those who are able to retain a positive outlook, but also take decisive steps in response to the need for changes arising from the geopolitical situation. The digital breakthrough has reached a new level in relation to the generational change – the disappearance of cash and soaring online sales are important topics. It is difficult to find an entrepreneur who is not thinking about which changes need to be made in their current business activities to match the desire of consumers to consume services in a simple and convenient manner through electronic channels.

SEB paid dividends to its parent company for the first time

In Q1 2015, SEB Estonia paid dividends to its parent company for the first time in the sum of EUR 10 million, from which corporation tax was paid into state revenues in the sum of EUR 2.18 million.

The units of SEB Estonia finished Q1 2015 with a profit of EUR 20.2 million. SEB finished Q1 2014 with a profit of EUR 21.1 million. In the first quarter, the operating profit of SEB amounted to EUR 35 million (EUR 33.8 million in Q1 2014) and its operating costs to EUR 15.4 million (EUR 14.4 million in Q1 2014). In Q1 2015, the bank decreased loan loss provisions by EUR 2.9 million (in the same period of 2014, the bank decreased the provisions by EUR 1.6 million).
 

For more information:

Evelin Allas
Communications Manager
Marketing and Communications Division
SEB
Phone +372 665 5649
Mobile +372 511 1718
Address Tornimäe 2, 15010 Tallinn
E-mail evelin.allas@seb.ee
www.seb.ee