Allan Parik on the financial results of SEB: the activity of the economy and the demand for loans are recovering

Today, the SEB Group published its financial results for the first quarter of 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:

The first quarter of 2024 was characterised by a certain stabilisation – we can see the first signs indicating that we have reached the bottom of the economic decline and may expect a gradual enlivening of the economy. The anticipated drop of the EURIBOR has been postponed, but thanks to this, the customers of SEB continue to earn high interest rates on their deposits. In the first three months of the year, the customers of SEB earned a total of 26.3 million euros on their term deposits, compared to just 5.8 million in the first quarter of 2023.

The current trend of the deposits of businesses gradually reducing (–2.2% compared to the first quarter last year) and the deposits of private individuals slowly increasing (+3.4% compared to the first quarter last year) continued in the beginning of the year. Therefore, it can be stated that businesses are still using their buffers for coping with the impacts of the economic decline. The deposits of private individuals are also supported by the fact that we remain the only bank in Estonia which also pays a reasonable interest revenue to all its private customers on the amount on their current accounts.

The increase in the demand for loans is the best sign of the recovering activity of the customers of SEB. In the first quarter, SEB granted 15% more home loans than in the same period last year. The loan portfolio of business customers grew as well. In the first quarter, SEB financed new business projects of nearly 1,600 companies, in a total amount of more than 280 million euros.

As it is now more difficult for growing companies to involve funds from investors, we launched the SEB Baltic Venture Debt programme in the beginning of the year with a total volume of 20 million euros. This measure helps companies with great growth ambitions to fund the expansion of their proven business models before achieving a stable profit. Therefore, it is an alternative for companies which would not qualify for traditional loans granted to businesses. Another advantage is that using this measure does not come with the usual obligation of a growing company to offer shareholding in the company or positions in the management board.

SEB Pank Grupp (‘the Group’) ended the first quarter of 2024 with a profit of 31.4 million euros (compared to 50.9 million euros in the first quarter of 2023). The operating income of the Group reached 93.9 million euros (78.7 million euros in the first quarter of 2023) and operating expenses 21.2 million euros (18.3 million euros in the first quarter of 2023). The Group reduced its net expected credit losses by 0.2 million euros (the respective amount was 0.2 million euros in the first quarter of 2023). Income tax was calculated at 41.5 million euros (9.2 million euros in the first quarter of 2023). In the first quarter of 2024, the Group paid about 50.0 million euros in total in various state taxes to the government of Estonia.

Additional information:

Katre Kärner
Communications Manager
55609962
SEB Pank