Commentary on the financial results of SEB Estonia in the first six months of 2025

Today, SEB Group published its financial results for the first six months of 2025, information on which can be found here: www.sebgroup.com/ir

Allan Parik, Chairman of the Board of SEB Pank, commented on the results of SEB’s units in Estonia as follows:

Despite turbulent times in the global economy and tax increases, the economic environment is slowly improving. After a long period of decline, both retail sales and industrial production in Estonia recovered in the first half of the year. The low business and consumer sentiment towards the future remains the main concern. On the other hand, the fall in interest rates has had an encouraging effect and private and corporate borrowing grew significantly faster than expected in the first half of 2025. SEB granted 38 per cent more new home loans in six months than during the same period last year. A clear recovery could be observed in the sale of new developments before 1 July. In view of the ongoing trade negotiations with the United States and tax increases, the further recovery of the economy is projected to be rather slow, keeping the GDP growth rate moderate for some time.

In the second quarter, the business customers of SEB had the largest number of projects at hand in recent years, indicating an improvement in business sentiment and investment appetite. SEB’s corporate loan portfolio grew by 8.7 per cent year on year in the first half of the year. The second quarter was active and the portfolio quality remains at a good level.

There are also positive developments in the financial behaviour of private individuals. Deposit growth remains strong at 6.5 per cent year on year for both demand and term deposits. The 22.7 per cent annual growth in savings deposits shows how important it is for the people in Estonia to have financial security while maintaining the flexibility to use their savings when needed. On a positive note, there has been a clear increase in the investment interest of Estonian people – the investment portfolio of private individuals grew by approximately 10.6 per cent in half a year. We have invested in our products, creating new opportunities for novice investors and making investing more accessible and affordable for customers of SEB.

This half-year has been special for us, as we started preparations for moving the Baltic headquarters of SEB to Talsinki, a developing business and residential quarter in Tallinn. We had been looking for the new headquarters of SEB for some time, and the Talsinki development stood out with its well-thought-out solutions that looked just right for us. Although the move to the new building will not take place until 2028, construction will start soon.

In summer, there are nearly half a hundred interns working at SEB whose task is to contribute to the creation of new solutions through the Youth LAB programme. We consider it important that internship is remunerated, providing young people with valuable experience and development opportunities.

SEB Pank Grupp (‘the Group’) ended the first half of 2025 with a profit of 86.2 million euros (compared to 93.9 million euros in the first half of 2024). The operating income of the Group amounted to 148.4 million euros in the first half of the year (183.1 million euros in the first half of 2024) and operating expenses to 44.4 million euros (42.9 million euros in the first half of 2024). The Group’s net expected credit losses increased by 0.7 million euros (decreased by 4.4 million euros in the first half of 2024). Income tax was calculated at 17.1 million euros (50.7 million euros in the first half of 2024). In the first half of 2025, SEB Group paid a total of 33.5 million euros in various taxes to the state revenue of Estonia.

Additional information:

Kristi Jänes
Communications Manager
Marketing and Communications Division
SEB

Tornimäe 2, 15010, Tallinn
Phone +372 665 5399
Mobile +372 5569 0616
Email kristi.janes@seb.ee