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Lower profit for SEB in its first quarter report but better than expectedTuesday, 24 April 2012
SEB, with CEO Annika Falkengren, makes a profit of 3.7 billion in the first quarter. It was far worse than a year ago but better than experts had anticipated, as SEB managed to keep costs in check.
SEB is after Nordea, the second major bank on the stock exchange to report on progress during the first three months. It's an operating profit of 3.7 billion as CEO Annika Falkgengren presents.
Profit is more than one billion less than a year ago. But it is far better than most analysts had predicted - according to analysts average forecast Skr3.4 billion.
But there were analysts who had hoped for more from the bank. The highest analyst forecast in the market was Skr3.9 billion.
In the interim report Annika Falkengren describes bank's performance as robust.
"SEB has an operating profit of 3.7 billion, reflecting continued growth in our customer business. We have more customers in all segments and existing customers has done more business with us, "writes SEB-chief.
The Bank's total revenues amounted to Skr 9.6 billion. It was in line with last year's performance and slightly better than analysts had hoped for. But on the two main income items, interest income and net commission the bank did not deliver quite up to expectations.
The Bank's net interest income, SEB's single largest revenue item and where the bank's earnings from mortgages accounted for, was just under Skr4.2 billion during the quarter. This was slightly lower when compared with a year ago and also what the market had anticipated.
The large positive surprise in the case of SEB's income is instead the net of financial transactions. These amounted to nearly Skr1.4 billion.
There it was about 200 more than a year ago. Analysts had expected about Skr900 million in revenue from the net of financial transactions.
Another performance point will fall on fertile ground in the market is that Annika Falkengren cost eagerness produces results.
See the bank’s presentation here with more details
By Scancomark.se Team
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