SEB posts bumper profits

Swedish bank SEB exceeded market expectations on Wednesday as it posted a first quarter operating profit of 1.075 billion kronor ($147 million), more than double the figure forecast by analysts.

SEB’s interim report showed operating profits down from 1.802 billion kronor for the same period last year, but the first quarter total far outstripped the 462 million kronor forecast in analyses collated by news agency Reuters.

“SEB has recorded a solid result given the slowly recovering macro-economic climate. With the fortress balance sheet created last year we can continue to further deepen our customer relationships and invest in our strong corporate franchise”, said CEO Annika Falkengren in a statement.

SEB’s operating income came to 9.372 billion kronor, down 18 percent on the first quarter 2009.

Operating expenses for the bank totalled 6.367 billion kronor, while provision for credit losses amounted to 1.926 billion kronor

Falkengren said the report showed the bank was returning to normal after the financial crisis.

“It was a quarter without any one-off effects. It feels good. We’re clearly showing that we can see a glimmer of light in the Baltics,” she told news agency TT.

SEB halved its credit losses in the region, which was hit hard by the global financial meltdown.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Deutsche Bank to pay $130m to settle US bribery probes

Deutsche Bank will pay $130 million to settle a foreign bribery probe and fraud charges in precious metals trading, US officials announced on Friday.

Deutsche Bank to pay $130m to settle US bribery probes
A woman walks past the offices of Deutsche Bank in London. Photo: Tolga Akmen / AFP
The bribery case relates to illegal payments and to false reporting of those sums on the bank's books and records between 2009 and 2016, the Department of Justice said in a press release.
The bank “knowingly and wilfully” kept false records after employees conspired with a Saudi consultant to facilitate bribe payments of over $1 million to a decision maker, the DOJ said.
In another case, the bank paid more than $3 million “without invoices” to an Abu Dhabi consultant “who lacked qualifications… other than his family relationship with the client decision maker,” the DOJ said.
In addition to criminal fines and payments of ill-gotten gains, Deutsche Bank agreed to cooperate with government investigators under a three-year deferred prosecution agreement.
In the commodities fraud case, Deutsche Bank metals traders in New York, Singapore and London between 2008 and 2013 placed fake trade orders to profit by deceiving other market participants, the DOJ said.
The agreement took into account Deutsche Bank's cooperation with the probes, DOJ said.
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” said Acting US Attorney Seth D. DuCharme of the Eastern District of New York.
“This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
“We take responsibility for these past actions, which took place between 2008 and 2017,” said Deutsche Bank spokesperson Dan Hunter, adding that the company has taken “significant remedial actions” including hiring staff and upgrading technology to address the shortcomings.