SEB Group published the financial results of the first quarter of 2019 today

Allan Parik, Chairman of the Management Board of SEB Pank, commented on the result of the Estonian unit of SEB in the first quarter of the year.

SEB Group published the financial results of the first quarter of 2019 today. The information regarding the results can be found here: www.sebgroup.com/ir.

Allan Parik, Chairman of the Management Board of SEB Pank, commented on the result of the Estonian unit of SEB in the first quarter of the year as follows:

5,000 new clients and 9,000 new pension collectors

The beginning of the year has been active with 5,000 new private and business clients joining SEB. In addition, 9,000 new pension collectors joined SEB, which is seven per cent more than in the first quarter of last year. As a result of the new subscribers and the growth of the stock markets, the volume of second-pillar pension funds increased by more than nine per cent.

Loan growth is fast, deposit growth is even faster

SEB’s loan portfolio grew by 10.6 per cent in the first quarter compared to the same period last year. In the first quarter, the loan volume of enterprises increased by 11.3 per cent and that of private individuals by 8.5 per cent compared to the same period last year. At the same time, deposit volumes increased by 15.8 per cent year-on-year, i.e. a similar trend is continuing – the growth of deposits exceeds loan growth.

Every fourth consultation is done via video

For many years, SEB has been developing the opportunity to offer high-quality financial advice through a video call so that clients do not have to visit a bank branch. In the first quarter, we provided financial advice to nearly 4,000 private clients, and every fourth consultation was done via video. With a video call, we can help our clients in every home in Estonia, as well as those clients who are living temporarily abroad. In addition to financial advice, clients use video consultations to open accounts for their company or child.

The financial results are strong

As a result of the increase in the number of clients, general activeness, and the digitalisation of services, the revenues of the Estonian units of SEB increased by 16.6 per cent in the first quarter compared to the same period last year. The expenditure growth of 8.8 per cent was influenced by labour cost growth and investments in new products and the development of service channels. In the first quarter of the previous year, the income statement included the income tax on all dividends paid for 2017, but the profit for the first quarter of this year includes only the advance tax expense of the profits for the first three months of this year.

The Estonian units of SEB ended the first quarter of 2019 with a profit of 24.1 million euros (4.2 million in the first quarter of 2018). SEB’s operating income for the first quarter amounted to 42.0 million euros (36.0 million euros in the first quarter of 2018) and operating expenses to 15.2 million euros (13.9 million euros in the first quarter of 2018). In the first quarter of 2019, the bank reduced the provisions for loan losses by 0.4 million euros (in the same period of 2018, the bank increased provisions by 0.3 million euros). In the first quarter of 2019, the bank paid income tax of 3.2 million euros (17.5 million euros in the same period of 2018).

Additional information:

Silver Vohu
Head of the Communication Department
SEB Pank

phone 665 5393
mobile phone 521 1170
address Tornimäe 2, 15010, Tallinn
e-mail silver.vohu@seb.ee