Deposit interest has brought customers 35 million euros

Deposit rates have generated 35 million euros for customers

The price of money has increased, highlighted by the return on deposit rates. Whilst SEB paid 1.1 million euros as interest on deposits to its customers in the first nine months of the previous year, the bank has paid approximately 35 million euros on deposits to its customers in the first nine months of this year.

Money on current accounts has also increased in value

30 per cent of the funds of private customers is kept in term deposits. The remaining 70 per cent of deposits could also be earning interest because money has increased in price. SEB is the first bank in Estonia to reintroduce interest on funds kept on the current accounts of customers. Even amounts that cannot be deposited for a longer period would earn a small but stable return for our customers. According to our forecast, the customers of SEB will earn about 2.5 million euros in additional return per year.

A billion euros for new business plans

This year, SEB has supported the implementation of over 5,300 business plans with more than one billion euros in total. The deposits of companies, which were still increasing in the first half of the year, started to decrease during the second half of the year – year on year, the deposit portfolio of companies has shrunk by 2.9 per cent. Deposits are declining due to new investments; however, companies also rely on savings to continue business operations in a challenging economic environment.

2,900 new homes

SEB has financed the purchase of about 2,900 homes this year. In a year, the loan portfolio of SEB has grown by three per cent, primarily supported by the activities of private individuals. Private deposits have increased slightly – year on year, the portfolio has expanded by 0.8 per cent. Generally, the financial situation of households is strong, as evidenced by nearly non-existent loan debts. This means that borrowers and banks have assessed their risks responsibly.

SEB has paid over 40 million euros into government revenues

SEB Pank Grupp (‘the Group’) ended the first nine months of 2023 with a profit of 178.3 million euros (compared to 80.8 million euros in the first nine months of 2022). The operating income of the Group reached 263.2 million euros (140.6 million euros in the first nine months of 2022) and operating expenses 57.0 million euros (48.1 million euros in the first nine months of 2022). The Group reduced its net expected credit losses by 1.2 million euros (the respective amount was 0.7 million euros in the first half of 2022). The established contributions into the resolution fund amounted to 1.4 million euros (1.7 million euros in the first nine months of 2022). Income tax was calculated in the amount of 27.7 million euros (in the first nine months of 2022, 10.8 million euros). In the first nine months of 2023, the Group paid about 40.6 million euros in total in various state taxes to the government of Estonia.

Allan Parik
Chairman of the Board of SEB Pank