MIRA
INFORM REPORT
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Report Date : |
13.12.2013 |
IDENTIFICATION DETAILS
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Name : |
SKANDINAVISKA ENSKILDA BAKEN AB |
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Registered Office : |
Kungstradgardsgatan
8, Stockholm, 106 40 |
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Country : |
Sweden |
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Financials (as on) : |
31.12.2012 |
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Year of Establishments: |
1971 |
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Legal Form : |
Public Parent Company |
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Line of Business : |
·
Subject
offers wholesale and investment banking as well as private banking in the
Nordic area and is a universal bank in the Baltic countries. ·
Subject
is also a Nordic unit-linked insurance company |
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No. of Employees : |
16,925 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Sweden |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Sweden ECONOMIC OVERVIEW
Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a highly skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for vast majority of industrial output, of which the engineering sector accounts for about 50% of output and exports. Agriculture accounts for little more than 1% of GDP and of employment. Until 2008, Sweden was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This and robust finances offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. Despite strong finances and underlying fundamentals, the Swedish economy slid into recession in the third quarter of 2008 and the contraction continued in 2009 as deteriorating global conditions reduced export demand and consumption. Strong exports of commodities and a return to profitability by Sweden's banking sector drove the strong rebound in 2010, which continued in 2011, but growth slipped to 1.2% in 2012. The government proposed stimulus measures in 2012 to curb the effects of a global economic slowdown and boost employment and growth.
Source : CIA
Company
name & address
Skandinaviska Enskilda
Banken AB
Kungstradgardsgatan
8
Stockholm, 106 40
Sweden
Tel: 46-8-7635000
Fax: 46-8-6111549
Web: www.sebgroup.com
Branch Office
Östra Hamngatan 24
405 04 Gothenburg, Sweden
synthesis
Employees: 16,925
Company Type: Public
Parent
Corporate Family: 77 Companies
Traded: Stockholm
Stock Exchange: SEB A
Incorporation
Date: 1971
Auditor: PricewaterhouseCoopers
AB
Financials in: USD (Millions)
Fiscal Year End: 31-Dec-2012
Reporting
Currency: Swedish Krona
Annual Sales: 5,739.5 1
Net Income: 1,716.9
Total Assets: 376,730.3 2
Market Value: 25,871.6
(22-Nov-2013)
Business
Description
Skandinaviska
Enskilda Banken AB (SEB) is a Sweden-based bank. The Bank’s operations are
divided into five business divisions. The Merchant Banking division offers
commercial and investment banking services to large corporate and institutional
clients, mainly in the Nordic region and Germany. The Retail Banking division
offers banking and advisory services to private individuals and small and
medium-sized corporate customers in Sweden, and card operations in the Nordic
countries. The Wealth Management division offers asset management, investment
management, mutual funds and private banking services to institutional clients
and high net worth individuals. The Life division offers life insurance
products for private individuals and corporate customers. The Baltic division
offers banking and advisory services to private individuals and small and
medium-sized corporate customers in Estonia, Latvia and Lithuania. The Company
operates more than 40 subsidiaries. For the nine months ended 30 September
2013, Skandinaviska Enskilda Banken AB interest income increased 5% to
SEK13.9B. Net interest income after loan loss provision increased 5% to
SEK13.08B. Net income before extraordinary items increased 19% to SEK10.57B.
Net interest income after loan loss provision reflects Other/Eliminations
segment increase from SEK0K to SEK303M, Retail Banking segment increase of 9%
to SEK1.92B.
Industry
Industry Banking
ANZSIC 2006: 6221 - Banking
ISIC Rev 4: 6419 - Other monetary intermediation
NACE Rev 2: 6419 - Other monetary intermediation
NAICS 2012: 52211 - Commercial Banking
UK SIC 2007: 64191 - Banks
US SIC 1987: 6029 - Commercial Banks, Not Elsewhere
Classified
Key
Executives
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Financial Summary
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Stock Snapshot
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1 - Profit &
Loss Item Exchange Rate: USD 1 = SEK 6.775133
2 - Balance Sheet
Item Exchange Rate: USD 1 = SEK 6.5125
Corporate
Overview
Location
Kungstradgardsgatan
8
Stockholm, 106 40
Sweden
Tel: 46-8-7635000
Fax: 46-8-6111549
Web; www.sebgroup.com
Quote Symbol -
Exchange
SEB A - Stockholm Stock Exchange
Sales SEK(mil): 38,886.0
Assets SEK(mil): 2,453,456.0
Employees: 16,925
Fiscal Year End: 31-Dec-2012
Industry: Commercial Banks
Incorporation
Date: 1971
Company Type: Public
Parent
Quoted Status: Quoted
Chief Executive Officer, President, Director:
Annika Falkengren
Industry Codes
ANZSIC 2006
Codes:
6221 - Banking
6240 - Financial
Asset Investing
6310 - Life
Insurance
6419 - Other
Auxiliary Finance and Investment Services
6411 - Financial
Asset Broking Services
6230 - Non-Depository
Financing
ISIC Rev 4 Codes:
6419 - Other
monetary intermediation
6492 - Other
credit granting
6511 - Life
insurance
6612 - Security
and commodity contracts brokerage
6499 - Other
financial service activities, except insurance and pension funding activities,
n.e.c.
NACE Rev 2 Codes:
6419 - Other
monetary intermediation
6492 - Other
credit granting
6511 - Life
insurance
6612 - Security
and commodity contracts brokerage
6499 - Other
financial service activities, except insurance and pension funding, n.e.c.
NAICS 2012 Codes:
52211 - Commercial
Banking
522292 - Real
Estate Credit
522110 - Commercial
Banking
522120 - Savings
Institutions
522291 - Consumer
Lending
523910 - Miscellaneous
Intermediation
524113 - Direct
Life Insurance Carriers
523110 - Investment
Banking and Securities Dealing
US SIC 1987:
6029 - Commercial
Banks, Not Elsewhere Classified
6036 - Savings
Institutions, Not Federally Chartered
6162 - Mortgage
Bankers and Loan Correspondents
6021 - National
Commercial Banks
6211 - Security
Brokers, Dealers, and Flotation Companies
6799 - Investors,
Not Elsewhere Classified
6311 - Life
Insurance
6141 - Personal
Credit Institutions
UK SIC 2007:
64191 - Banks
64922 - Activities
of mortgage finance companies
6492 - Other
credit granting
6511 - Life
insurance
6612 - Security
and commodity contracts brokerage
6499 - Other
financial service activities, except insurance and pension funding, n.e.c.
Business Description
Skandinaviska
Enskilda Banken AB (SEB) is a Sweden-based bank. The Bank’s operations are
divided into five business divisions. The Merchant Banking division offers
commercial and investment banking services to large corporate and institutional
clients, mainly in the Nordic region and Germany. The Retail Banking division
offers banking and advisory services to private individuals and small and
medium-sized corporate customers in Sweden, and card operations in the Nordic
countries. The Wealth Management division offers asset management, investment
management, mutual funds and private banking services to institutional clients
and high net worth individuals. The Life division offers life insurance
products for private individuals and corporate customers. The Baltic division
offers banking and advisory services to private individuals and small and
medium-sized corporate customers in Estonia, Latvia and Lithuania. The Company
operates more than 40 subsidiaries. For the nine months ended 30 September
2013, Skandinaviska Enskilda Banken AB interest income increased 5% to SEK13.9B.
Net interest income after loan loss provision increased 5% to SEK13.08B. Net
income before extraordinary items increased 19% to SEK10.57B. Net interest
income after loan loss provision reflects Other/Eliminations segment increase
from SEK0K to SEK303M, Retail Banking segment increase of 9% to SEK1.92B.
More Business Descriptions
SEB offers
wholesale and investment banking as well as private banking in the Nordic area
and is a universal bank in the Baltic countries. SEB is also a Nordic
unit-linked insurance company.
Bank Holding
Company; Commercial Banking, Leasing & Related Corporate Financial Services
Skandinaviska
Enskilda Banken AB (SEB) is a northern European financial group serving private
individuals, institutions and corporate customers. SEB operates in the Nordic
and Baltic countries, Germany, Poland, Russia and Ukraine. It offers banking
services through a range of channels. It also provides internet solutions to
its customers including paying bills and stock broking services. The group operates
through five divisions namely, Retail Banking division, Wealth Management
division, Merchant Banking division, Life Insurance division, and Baltic
division. The Retail Banking division of the group offers several banking
services including account services, loans and deposits to private individuals
and small and medium-sized corporate customers. It serves around 1.6 million
private customers and 190,000 small and medium-sized corporate customers
through a network of 165 branch offices in Sweden and Germany. The division
also manages company’s card business. For the fiscal year ended December
2012, the group's Retail Banking division reported total operating income of
SEK11,180m, which accounted for 28.68% of the group's total operating income,
indicating an increase of 9.2% over total operating income in 2011. The Wealth
Management division offers private banking services and asset management
services. The division operates in two business areas namely, Institutional
Clients and Private Banking. It provides a broad spectrum of asset management
and advisory services and wide range of products includes equity and fixed
income, private equity, real estate and hedge fund management. The Wealth
Management division has its presence in the Nordic and Baltic countries, the
UK, Luxembourg, Germany, Singapore, Switzerland and France. The division
distributes its services principally through its institutional client sales
force, the company’s retail network, own private banking units and through
third party distributors. In addition, the division manages mutual fund
business activities. For the fiscal year ended December 2012, the group's
Wealth Management division reported total operating income of SEK4,038m, which
accounted for 10.36% of the group's total operating income, indicating a
decrease of 6.5% over total operating income in 2011. The Merchant Banking
division provides integrated investment and corporate banking solutions,
including the investment banking activities to its clients including large and
medium-sized companies, financial institutions, banks, and commercial real
estate clients under the brand name SEB Enskilda. The division’s principal
activities include, lending and debt capital markets, trading in equities,
futures and exchange traded funds, corporate finance, advisory services,
brokerage, research and trading strategies within equity, acquisition finance,
venture capital, cash management and liquidity management. This division
operates in 18 countries. For the fiscal year ended December 2012, Merchant
Banking division reported total operating income of SEK15,837m, which accounted
for 40.63% of the group's total operating income, indicating a decrease of 5%
over total operating income in 2011. The group's Life Insurance division offers
insurance products for private individuals and corporate customers, principally
in the Finland, Ireland, Sweden, Denmark, Luxembourg, Estonia, Latvia,
Lithuania and Ukraine. The division comprises of three business units such as
SEB Pension in Denmark, SEB Trygg Liv in Sweden, and SEB Life & Pension
International. The company conducts its traditional life insurance operations
in Sweden through Gamla Livforsakringsaktiebolaget SEB Trygg Liv, a mutually
operated insurance company. For the fiscal year ended December 2012, Life
Insurance division reported total operating income of SEK4,621m, which
accounted for 11.86% of the group's total operating income, indicating an
increase of 3.4% over total operating income in 2011. The Baltic division
provides banking and life insurance services to around 1.8 million private
individuals and approximately 130,000 small and medium-sized corporate
customers in Estonia, Latvia and Lithuania. The division offers its services
through a network of 128 branch offices, telephone and e-banking services. For
the fiscal year ended December 2012, Baltic division reported total operating
income of SEK3,301m, which accounted for 8.47% of the group's total operating
income, indicating a decrease of 2.4% over total operating income in 2011. Geographically,
the group operates across nine regions namely, Sweden, Norway, Denmark, Finland
Latvia, Estonia, Lithuania, Germany and other countries. For the fiscal year
ended December 2012, Sweden contributed 61.83% of the group's gross income,
Norway with 6.65%, Denmark with 5.35%, Finland with 3.11%, Estonia with 1.74%,
Latvia with 1.71, Lithuania with 2.83%, Germany with 9.19%, and other countries
with 7.59%.The group's key subsidiaries include Aktiv Placering AB, Stockholm,
Enskilda Kapitalforvaltning SEB AB, Stockholm, Forsakringsaktiebolaget
Skandinaviska Enskilda Captive, Stockholm, SEB Forvaltnings AB, Stockholm, SEB
Internal Supplier AB, Stockholm, SEB Kort AB, Stockholm, SEB Strategic
Investments AB, Stockholm, Skandinaviska Kreditaktiebolaget, Key Asset
Management Norge ASA, SEB Banka, AS, SEB bankas, AB, Skandinaviska Enskilda
Banken A/S, Skandinaviska Enskilda Banken Corporation, and Skandinaviska
Enskilda Ltd. In June 2013, SEB Venture Capital invested in Donya Labs AB, a
global leader in optimisation of 3D graphics for computer games. The infusion
of capital will enable accelerated growth and diversification towards
computer-aided design architecture and film. In January 2013, SEB was ranked
highest in the TNS Sifo Prospera's Corporate Banking 2012 Nordics client
survey.
Skandinaviska Enskilda Banken AB (SEB) is a
northern European financial group serving private individuals, institutions and
corporate customers. The group offers a range of financial services, including
retail banking, wealth management, life insurance and merchant banking. It
offers these products and services through a range of channels to retail
clients in the Nordic and Baltic countries, Germany, Poland, Russia and
Ukraine. SEB also provides internet solutions to its customers including paying
bills and stock broking services. SEB is headquartered at Stockholm, Sweden.
The group envisages on consolidating its business and growth through strategic
acquisitions. To this end, it exited from retail business in key markets and
sold its retail banking operation.The bank reported interest income of (Swedish
Krona) SEK 53,794.00 million during the fiscal year ended December 2012, a
decrease of 4.22% from 2011. The net interest income after loan loss provision
of the bank was SEK 52,857.00 million during the fiscal year 2012, a decrease
of 7.17% from 2011. The net profit of the bank was SEK 11,632.00 million during
the fiscal year 2012, an increase of 7.51% over 2011.
Commercial Banking
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Strategic
Initiatives
Key Organizational Changes
Net financial
income increased by 29% to SEK4,579m as compared to SEK3,548. Income from
trading operations which is customer driven was stable. Net life insurance
income increased to SEK3,428m in 2012, as compared to SEK3,197m, mainly due to
higher income from unit-linked insurance which is related to the acquisition of
SEB Life International.Leading Market PositionSEB enjoys strong market position
in domestic as well as other international operational territory. It enjoys
leading position in universal banking in the Baltic countries, and a leading
position in wholesale and investment banking as well as private banking in the
Nordic region. In Sweden it had 15.9% market share in deposits from the general
public and 14.3% in lending to general public; a 20.3%, 9.9% and 27.2% of
market share in deposits from general public was reported in 2012.
Resource Management
The covenants and
other conditions are similar to the company's existing credit facilities.
Emanuele Lauro, CEO and chairman of the board, Scorpio Tankers, said, "We
thank our lenders for their continued support of our company. This loan will
finance a significant number of our vessels on order and will enable us to
continue our growth strategy."Feb 19, 2013Pacific Drilling Announces
Signing Of $1 Billion Senior Secured Credit FacilityPacific Drilling S.A.
announced that it signed a $1 billion senior secured credit facility agreement
to finance construction of Pacific Sharav and Pacific Meltem. The term loan
made pursuant to the credit facility will have a maturity of five years from
the delivery date of Pacific Meltem.
Under the Norwegian tax regime, exploration focused
companies recover 78% of exploration and appraisal related expenditure in
December the following year. The credit facility provides pre-funding of
approximately 75% of the company's exploration, appraisal and supporting
expenditure, thereby quadrupling the capital available for investment in
exploration and appraisal activities. The increased exploration loan facility
together with the equity finance commitment from HitecVision, will enable
Spring Energy to pursue an ambitious exploration and appraisal driven growth
strategy going forward capitalizing on the successes achieved since the
company's start-up in 2008.Jun 07, 2012Lincs Wind Farm Finalizes Financing For
Wind Farm Project In UKLincs Wind Farm Limited, a joint venture between
Centrica plc, Dong Energy and Siemens Project Ventures GmbH, finalized
agreements to provide non-recourse project finance facilities for the 270 MW
Lincs offshore wind farm. The facilities, totaling £425m, will be provided by
a consortium of 10 commercial banks.The consortium of 10 commercial banks
consists of Abbey National Treasury Services Plc (trading as Santander Global
Banking & Markets), BNP Paribas, Nordea Bank, Skandinaviska Enskilda
Banken, Unicredit Bank, DNB Bank, HSBC Bank, KfW IPEX-Bank, Lloyds TSB and The
Bank of Tokyo-Mitsubishi UFJ.
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Helpful |
Harmful |
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Internal Origin |
Strengths |
Weaknesses |
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External Origin |
Opportunities |
Threats |
Overview
Skandinaviska
Enskilda Banken AB (SEB) is a Swedish banking group offering a range of retail
and commercial banking, wealth management and life insurance services, amongst
others. Capital adequacy, asset quality, and operating performance are its key
strengths, even though underperformance of two segments remains a major area of
concern. Basel III norms on capital requirements, low interest rate
environment, sovereign debt crisis, and highly competitive environment could
have an adverse effect over SEB’s business, operating results and financial
condition. However, strategic acquisitions, exit from retail business in key
markets, and positive outlook for global wealth market could present ample
growth opportunities to the group.
Strengths
Operating Performance
The group
reported stable operating performance in 2012 as compared to the previous year.
SEB’s total operating income increased by 3% to SEK38.8 billion in 2012. Net
interest income from deposits and customer loans combined increased by SEK703m,
as the average lending and deposit volumes increased by 7% and 10%
respectively. Lending margins were up somewhat, but were offset by lower
deposit margins following lower short-term interest rates. Net interest income
from other activities was SEK 31m higher compared with 2011. Net financial
income increased by 29% to SEK4,579m as compared to SEK3,548. Income from
trading operations which is customer driven was stable. Net life insurance
income increased to SEK3,428m in 2012, as compared to SEK3,197m, mainly due to
higher income from unit-linked insurance which is related to the acquisition of
SEB Life International.
Leading Market Position
SEB enjoys strong
market position in domestic as well as other international operational
territory. It enjoys leading position in universal banking in the Baltic
countries, and a leading position in wholesale and investment banking as well
as private banking in the Nordic region. In Sweden it had 15.9% market share in
deposits from the general public and 14.3% in lending to general public; a 20.3%,
9.9% and 27.2% of market share in deposits from general public was reported in
2012. It had a market share of 23.2% from Estonia, 16.8% from Latvia and 30.6%
from Lithuania. Assets under management reported as of December 31, 2012 was
SEK1,328 billion and assets under custody was SEK5,191 billion.
Capital Adequacy
Good capital base
ensures capital adequacy to support its organic and inorganic growth with the
secured and unsecured nature of its lending. The good capital management
initiatives and moderate risk weighted asset (RWA) growth have enabled the
group to strengthen its capital position. As of December 31, 2012, the group
reported capital base of SEK103.44m as compared to SEK99.14m in 2010. Capital
base in relation to capital requirement under Basel 2 was 2.15 in 2012 as
compared to 1.90 in 2011. It reported tier 1 capital ratio and total capital
ratio of 17.5% and 17.2% in 2012 as compared to 15.9% and 15.2% in 2011. Such
strong capital base acts as a cushion for potential losses protecting depositors
and investors. Hence, a sound capital management initiative of the group
strengthens its business profile, which would in turn enable it to carry out
its growth and expansion plans.
Asset Quality
SEB’s asset
quality has been improving consistently over the past few years. The group’s
non-performing loans (NPLs) decreased by 22% during the year 2012 and the NPL
coverage ratio was 66%. The inflows of new NPLs were small in 2012 as the group
maintained focus on NPLs from the Baltic crisis. The total reserve ratio for
individually assessed impaired loans was 74%. Such improved asset quality as a
result of low and stable credit loss levels and a steady reduction in impaired
loans would improve its profitability and financial position.
Weaknesses
Underperformance of Segments
During the fiscal
year ended December 2012, two segments reported decline in performance which
had a significant effect on the overall performance. The Merchant Banking and
Wealth Management divisions witnessed a decline in the segmental performance.
For the fiscal year ended December 2012, Wealth Management division reported a
decrease of 6.5% over total operating income in 2011. Base commissions
decreased by 6% in 2012, as the average market values on assets under
management were lower compared to 2011. Performance and transaction fees was
reduced to SEK264m in 2012, as compared to SEK399m mainly due to lower
transaction fees from the real estate business in Germany and lower performance
fees from mutual funds and mandates. The Merchant Banking division reported
total operating income of SEK15,837m, indicating a decrease of 5% over total
operating income in 2011. The net interest income of the division declined by
2% and net financial income declined by 8%. This has had a negative impact over
the overall operating profitability of the group.
Opportunities
Strategic Acquisitions
SEB acquired
Irish Life International Ltd (ILI) from Irish Life & Permanent Group
Holdings plc. ILI distributes insurance based investment products across the
European market. This acquisition provides SEB access to large European
distribution network resulting in improved position to offers sophisticated
investment solutions in Sweden and Finland. SEB signed an agreement to acquire
DnB NOR's retail customer mortgage loan portfolio in Sweden. The agreement
covers around 5,000 customers and a mortgage lending volume of about SEK7
billion. As a universal bank, SEB can solve housing finance and other banking
needs of these customers. Such strategic business acquisitions expanding its
business and geographic presence in core markets could boost its customer base
and earnings capabilities.
Positive Outlook for Global Wealth Market
While the
developed countries are struggling with the consequences of the economic downturn,
the emerging economies are reporting a huge inflow of funds. According to the
Credit Suisse Research Institute (CSRI), global household wealth till June 2012
stood at $223 trillion at current exchange rates. According to the industry
estimates, assuming moderate and stable economic growth, total household wealth
is expected to rise by approximately 50% in the next five years from $223
trillion in 2012 to $330 trillion in 2017. The number of high net-worth
individuals across the world is expected to increase by approximately 18
million to 46 million in 2017. China is expected to surpass Japan as the second
wealthiest country in the world. However, the US is forecast to remain the
wealthiest country with total wealth of $89 trillion by 2017. Such encouraging
prospects could provide ample growth opportunities for the company.
Exit Strategy: Retail Business
In line with its
strategy, SEB announced its plans to exit the retail segment in certain of its
markets. In June 2012, SEB sold its retail banking business in Ukraine. SEB
will continue to operate in Ukraine as a corporate bank, serving its German,
Nordic and Baltic corporate and institutional customers. In January 2011, the
group sold its retail banking business to Santander Consumer Bank AG, a German
affiliate of Banco Santander. This sale is intended to change SEB’s focus to
operate as a corporate bank, continuing to serve its Nordic, Baltic and German
corporate and institutional customers. Such business divestments are expected
to improve cost efficiency related to operations in non-home markets and
strengthen its financial position. In May 2012, SEB ImmoInvest, a German real
estate fund managed by SEB’s asset management company in Germany, SEB
Investment GmbH will be dissolved as of 30th April 2017. Following the negative
performance in the markets during the financial crisis, the liquidity in the
fund was hampered. Hence, in order to safeguard the interest of fund holders,
SEB ImmoInvest was closed for redemptions in May 2010 and will be dissolved
subsequently.
Threats
Highly Competitive Environment
The financial
services markets are highly competitive. SEB competes with domestic as well as
foreign companies, which are licensed or unlicensed in its operating regions.
The group competes on a number of factors such as transaction execution,
products and services, innovation, reputation and price. In addition, it also
faces competition from other financial institutions such as banks, securities
firms and asset management firms that have started cross selling products that
directly or indirectly compete with various insurance products. Key competitors
of the group are Swedbank AB, Svenska Handelsbanken AB and Nordea Bank AB.
Rising competition in the market could negatively affect SEB’s results from
operations and financial position.
Sovereign Debt Crisis
Inability of certain European Union (EU) member
states to service their sovereign debt obligations affected global markets and
caused economic conditions to deteriorate. Uncertainty over the outcome of
various EU and international financial support programs and the possibility
that other EU member states may be subject to similar financial pressures could
further disrupt global markets. This crisis disrupted equity and fixed income
markets, resulting in volatile bond yields on EU members' sovereign debt.
European insurers are major investors in government securities and the current
crisis poses a direct threat to them. According to European Insurance and
Occupational Pensions Authority, a 50% cut on Greek bonds would represent a
2.4% hit to European insurers' capital, translating into aggregate asset
impairments of about $18 billion. In case a EU member state were to default on
its debt obligations or seek to leave the Eurozone, it would have a detrimental
effect on the financial and currency markets and impact all financial
institutions including SEB adversely. Eventually, this could hamper the
group’s business, operating results and financial condition.
Basel III Norms on Capital Requirements
The looming threat on bank solvency as a result of
highly leveraged balance sheets prompted a regulatory response, which
recommended an increase in capital. Basel III norms by Basel Committee on
Banking Supervision (BCBS) are intended to protect the global banking industry
from financial meltdowns. The new norms require banks’ to hold more and
better quality capital, carry more liquid assets, and limit leverage. These
will not only restrict banks to hold more capital on hand which will limit the
amount of money they can lend out, but also reduce the risk of insolvency given
many loan defaults. BCBS recommends implementation of Basel III by January 1,
2013. According to the new rules, Basel III increases the minimum Tier 1
capital ratio to 6%. The ratio will be set at 4.5% from January 1, 2013, 5.5%
from January 1, 2014, and 6% from January 1, 2015. Predominance of common
equity would reach 82.3% of Tier 1 capital, inclusive of capital conservation
buffer. The minimum total capital ratio remains at 8%. Such regulations would
engage companies to incur high costs putting extra pressure on banks, which are
already in the process of improving their own governance processes.
|
Corporate Family |
Corporate
Structure News: |
|
|
Skandinaviska
Enskilda Banken AB |
|
Skandinaviska Enskilda Banken AB |
|
|
Company
Name |
Company
Type |
Location |
Country |
Industry |
Sales |
Employees |
|
Parent |
Stockholm |
Sweden |
Banking |
5,739.5 |
16,925 |
|
|
Subsidiary |
London |
United Kingdom |
Banking |
|
17,000 |
|
|
Subsidiary |
Stockholm |
Sweden |
Banking |
1.4 |
9,000 |
|
|
Subsidiary |
Vilnius |
Lithuania |
Banking |
|
2,023 |
|
|
Subsidiary |
Stockholm |
Sweden |
Investment Services |
|
2,000 |
|
|
Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Banking |
|
1,347 |
|
|
Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Securities |
22.3 |
70 |
|
|
Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Insurance Agents |
|
187 |
|
|
Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Real Estate Agents and Brokers |
13.8 |
4 |
|
|
Subsidiary |
Singapore |
Singapore |
Real Estate Agents and Brokers |
|
3 |
|
|
Subsidiary |
Berlin, Berlin |
Germany |
Real Estate Agents and Brokers |
|
1 |
|
|
Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Residential and Commercial Building Construction |
0.2 |
2 |
|
|
Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Banking |
|
2 |
|
|
Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Insurance Agents |
|
2 |
|
|
Subsidiary |
Valdlauci |
Latvia |
Banking |
|
1,280 |
|
|
Subsidiary |
Tallinn |
Estonia |
Banking |
|
1,210 |
|
|
Subsidiary |
Copenhagen |
Denmark |
Banking |
|
600 |
|
|
Subsidiary |
Stockholm |
Sweden |
Banking |
166.4 |
500 |
|
|
Subsidiary |
Helsinki |
Finland |
Securities |
|
400 |
|
|
Subsidiary |
Bromma |
Sweden |
Banking |
|
300 |
|
|
Subsidiary |
Helsinki |
Finland |
Investment Services |
|
300 |
|
|
Subsidiary |
Stockholm |
Sweden |
Investment Services |
|
300 |
|
|
Subsidiary |
Stockholm |
Sweden |
Investment Services |
|
250 |
|
|
Subsidiary |
Luxembourg |
Luxembourg |
Banking |
|
220 |
|
|
Branch |
Geneva |
Switzerland |
Banking |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Holding Companies |
|
200 |
|
|
Subsidiary |
London |
United Kingdom |
Banking |
7.7 |
|
|
|
Subsidiary |
London |
United Kingdom |
Investment Services |
1.5 |
|
|
|
Subsidiary |
London |
United Kingdom |
Miscellaneous Professional Services |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Miscellaneous Professional Services |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Miscellaneous Professional Services |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Miscellaneous Professional Services |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Miscellaneous Professional Services |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Miscellaneous Professional Services |
|
|
|
|
Subsidiary |
Brøndby, 1 |
Denmark |
Banking |
|
175 |
|
|
Subsidiary |
Oslo, Oslo |
Norway |
Securities |
653.7 |
165 |
|
|
Subsidiary |
Stockholm |
Sweden |
Banking |
|
150 |
|
|
Seb Kort
Bank Ab Oslofilialen Norsk Avdeling Av Utenlandsk Foretak |
Subsidiary |
Oslo, Oslo |
Norway |
|
49.3 |
136 |
|
Subsidiary |
Stockholm |
Sweden |
Investment Services |
322.5 |
100 |
|
|
Subsidiary |
Singapore |
Singapore |
Banking |
|
100 |
|
|
Subsidiary |
New York, NY |
United States |
Banking |
|
70 |
|
|
Subsidiary |
København K |
Denmark |
Banking |
|
60 |
|
|
Subsidiary |
New York, NY |
United States |
Securities |
3.7 |
50 |
|
|
Subsidiary |
Stockholm |
Sweden |
Banking |
|
30 |
|
|
Subsidiary |
Hong Kong |
Hong Kong |
Banking |
|
30 |
|
|
Subsidiary |
Dublin |
Ireland |
Life and Health Insurance |
264.3 |
29 |
|
|
Subsidiary |
Dublin |
Ireland |
Life and Health Insurance |
147.1 |
77 |
|
|
Subsidiary |
Dublin |
Ireland |
Investment Services |
1.7 |
|
|
|
Subsidiary |
Norwich |
United Kingdom |
Miscellaneous Professional Services |
|
|
|
|
Subsidiary |
Oslo, Oslo |
Norway |
Banking |
38.6 |
28 |
|
|
Subsidiary |
Paris |
France |
Securities |
|
20 |
|
|
Subsidiary |
Howald |
Luxembourg |
Investment Services |
|
20 |
|
|
Subsidiary |
London |
United Kingdom |
Pensions and Funds |
4.1 |
13 |
|
|
Subsidiary |
Cogoleto |
Italy |
Residential and Commercial Building Construction |
10.8 |
12 |
|
|
Subsidiary |
Cogoleto |
Italy |
Residential and Commercial Building Construction |
8.1 |
1 |
|
|
Subsidiary |
Cogoleto |
Italy |
Residential and Commercial Building Construction |
0.0 |
1 |
|
|
Subsidiary |
Frankfurt am Main |
Germany |
Banking |
|
12 |
|
|
Subsidiary |
Helsinki |
Finland |
Banking |
|
10 |
|
|
Subsidiary |
Stockholm, Stockholm |
Sweden |
Banking |
342.8 |
|
|
|
Subsidiary |
Stockholm |
Sweden |
Mortgage and Credit |
328.6 |
|
|
|
Subsidiary |
Stockholm |
Sweden |
Banking |
14.1 |
2 |
|
|
Subsidiary |
Vilnius |
Lithuania |
Banking |
212.9 |
|
|
|
Subsidiary |
Kyiv |
Ukraine |
Banking |
22.6 |
|
|
|
Subsidiary |
St. Petersburg |
Russian Federation |
Banking |
20.8 |
|
|
|
Subsidiary |
Kiev |
Ukraine |
Banking |
|
|
|
|
Subsidiary |
Stockholm |
Sweden |
Life and Health Insurance |
|
|
|
|
Seb Life
Ukraine Insurance Company Private Joint Stock Company |
Subsidiary |
Kyiv |
Ukraine |
Life and Health Insurance |
0.5 |
|
|
Subsidiary |
Oslo |
Norway |
Investment Services |
|
|
|
|
Subsidiary |
Howald |
Luxembourg |
Investment Services |
|
|
|
|
Subsidiary |
Saint Petersburg |
Russian Federation |
Banking |
|
|
|
|
Subsidiary |
Stockholm |
Sweden |
Investment Services |
|
|
|
|
Subsidiary |
Stockholm |
Sweden |
Insurance Agents |
|
|
|
|
Subsidiary |
Tallinn |
Estonia |
Life and Health Insurance |
|
|
|
|
Subsidiary |
Tallinn |
Estonia |
Investment Services |
|
|
|
|
Subsidiary |
Howald |
Luxembourg |
Banking |
|
|
|
|
Subsidiary |
Stockholm, Stockholm |
Sweden |
Nonclassifiable Establishments |
|
|
|
|
Subsidiary |
Warszawa |
Poland |
Miscellaneous Professional Services |
4.3 |
10 |
Competitors
Report
|
Company Name |
Location |
Employees |
Ownership |
|
Citigroup Global Markets Holdings, Inc. |
New York, New York, United States |
|
Private |
|
Citigroup Inc |
New York, New York, United States |
252,000 |
Public |
|
Danske Bank A/S |
Koebenhavn K, Denmark |
19,981 |
Public |
|
Försäkringsaktiebolaget Skandia |
Stockholm, Sweden |
1,473 |
Private |
|
Goldman Sachs Group Inc |
New York, New York, United States |
31,700 |
Public |
|
Investment Kinnevik AB |
Stockholm, Sweden |
2,909 |
Public |
|
Luxonen SA |
Luxembourg, Luxembourg |
1 |
Public |
|
Merrill Lynch & Co., Inc. |
New York, New York, United States |
39,100 |
Private |
|
Morgan Stanley |
New York, New York, United States |
57,061 |
Public |
|
Nordea Bank AB |
Stockholm, Sweden |
29,501 |
Public |
|
Novestra AB |
Stockholm, Sweden |
3 |
Public |
|
RBS Holdings NV |
Amsterdam, Netherlands |
11,300 |
Public |
|
Svenska Handelsbanken AB |
Stockholm, Sweden |
11,301 |
Public |
|
Swedbank AB |
Stockholm, Sweden |
14,351 |
Public |
Executive report
|
Board of
Directors |
|
|
|
|
|||||||||
|
Deputy Chairman |
Chairman |
|
|||||||||
|
Chairman of the Board |
Chairman |
|
|||||||||
|
||||||||||||
|
Deputy Chairman of the Board |
Deputy Chairman |
|
|
||||||||
|
||||||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||
|
||||||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||
|
||||||||||||
|
Director |
Director/Board Member |
|
|
||||||||
|
Director |
Director/Board Member |
|
|
||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||
|
||||||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||
|
||||||||||||
|
Board Member |
Director/Board Member |
|
|
||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||
|
||||||||||||
|
Director |
Director/Board Member |
|
|
||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||
|
||||||||||||
|
Head of SEB Norway, Member of the Group Executive Committee |
Director/Board Member |
|
|
||||||||
|
Director |
Director/Board Member |
|
|
||||||||
|
Head of the Baltic Division, Member of Group Executive Committee |
Director/Board Member |
|
|
||||||||
|
Board Member |
Director/Board Member |
|
|
||||||||
|
Executives |
|
|
|
|
|||||||||
|
Chief Executive Officer, President, Director |
Chief Executive Officer |
|
|||||||||
|
||||||||||||
|
Head of Group Communications |
Division Head Executive |
|
|
||||||||
|
||||||||||||
|
Country Manager SEB Denmark and Head of Merchant Banking Denmark |
Division Head Executive |
|
|
||||||||
|
Head of Business Support And Executive Vice President |
Division Head Executive |
|
|
||||||||
|
||||||||||||
|
Head of SEB Norway, Member of the Group Executive Committee |
Division Head Executive |
|
|
||||||||
|
Head of Group Human Resources |
Division Head Executive |
|
|
||||||||
|
||||||||||||
|
Head of the Baltic Division, Member of Group Executive Committee |
Division Head Executive |
|
|
||||||||
|
Chief Financial Officer, Executive Vice President |
Finance Executive |
|
|
||||||||
|
||||||||||||
|
Senior Finance Information Officer |
Finance Executive |
|
|
||||||||
|
Head of Wealth Management |
Finance Executive |
|
|
||||||||
|
||||||||||||
|
Head of Large Corporates, Client Relationship Management |
Customer Service Executive |
|
|
||||||||
|
Press Officer |
Public Relations Executive |
|
|
||||||||
|
Investor Relations Officer |
Investor Relations Executive |
|
|
||||||||
|
Head of Investor Relations |
Investor Relations Executive |
|
|
||||||||
|
Investor Relations Officer |
Investor Relations Executive |
|
|
||||||||
|
Chief Risk Officer |
Insurance Executive |
|
|
||||||||
|
||||||||||||
|
Executive Vice President, Head of Merchant Banking |
Key Banking Contact |
|
|
||||||||
|
||||||||||||
|
Executive Vice President, Head of Retail Banking |
Key Banking Contact |
|
|
||||||||
|
||||||||||||
|
Director, Employee Representative |
Other |
|
|
||||||||
|
||||||||||||
|
Director, Employee Representative |
Other |
|
|
||||||||
|
||||||||||||
Significant
Developments
Fitch Ratings
Affirms Ratings on Skandinaviska Enskilda Banken AB at A+ Nov 20, 2013
Fitch Ratings
announced that it has affirmed Skandinaviska Enskilda Banken AB's (SEB)
Long-term Issuer Default Rating (IDR) at 'A+', Viability Rating (VR) at 'a+'
and Short-term IDR at 'F1'. The ratings are driven by SEB's domestic franchise,
particularly in corporate and merchant banking, its solid capitalisation, its
sound asset quality and revenue generation. They also reflect its structural
reliance on wholesale funding, although the group has retained good access to
debt capital markets.
Skandinaviska
Enskilda Banken AB (publ) Sells Shares in Blom ASA Aug 19, 2013
Blom ASA
announced that Skandinaviska Enskilda Banken AB (publ) has on August 19, 2013
sold in total 2,472,863 shares in the Company. Following that, Skandinaviska
Enskilda Banken AB (publ) holds no shares in Blom ASA.
Skandinaviska
Enskilda Banken AB Invests in Donya Labs AB through SEB Venture Capital-DJ Jun
25, 2013
Dow Jones
reported that a company within Skandinaviska Enskilda Banken AB, SEB Venture
Capital, has invested in Donya Labs AB, a company focused on optimisation of 3D
graphics for computer games. The new capital will enable accelerated growth and
diversification towards computer-aided design (CAD), architecture and film.
Skandinaviska
Enskilda Banken AB to Cut Staff in Foreign Exchange Apr 22, 2013 reported that
Skandinaviska Enskilda Banken AB plans to cut staff in foreign exchange by 5%
to 10% in the next three years as pressure from competition and regulation
dampens profits and offsets higher trading volumes.
Skandinaviska
Enskilda Banken AB Issues Equity-Indexed Bonds Apr 19, 2013
Skandinaviska Enskilda Banken AB announced that the
Company is issuing a new equity-indexed bond loan SEB Globalt Forbrug II 2017
where yield depends on the performance of a basket of 15 shares. The bond have
a maturity of four and a half years and will be issued at a price of 110 and
redeemed at maturity at a price of at least 100. Subscription period runs from
and including May 13, 2013 to and including May 31, 2013. The volume of the
issue will be fixed at the end of subscription period, but, in order to conduct
the issue, will be no less then DKK 100 million.
Skandinaviska
Enskilda Banken AB Decreases Stake in NGS Group AB Apr 11, 2013
NGS Group AB
announced that Skandinaviska Enskilda Banken AB (publ) has on April 10, 2013
decreased its stake in NGS Group from 578,976 shares and votes to 1,000 shares
and votes, equivalent to 0.05% of the shares and votes in NGS Group.
Skandinaviska
Enskilda Banken AB Announces Details of FY 2-12 Dividend Mar 21, 2013
Skandinaviska Enskilda Banken AB announced that its
Annual General Meeting (AGM) approved a dividend for the fiscal year 2012 of
SEK 2.75 per share and March 26, 2013, as record date for the dividend. For the
fiscal year 2011, the Company paid a dividend of SEK 1.75 per share.
Renewable Energy Corp ASA Announces Completion of
Sale of Company's Shares by Skandinaviska Enskilda Banken AB Mar 20, 2013
Renewable Energy Corp ASA announced, with reference
to the announcement from March 19, 2013 regarding a contemplated private
placement of 200,000,000 existing shares in Renewable Energy Corporation ASA
(REC) by Skandinaviska Enskilda Banken AB (publ) (SEB), that the book-building
in the private placement has been successfully completed, and SEB has on March
20, 2013 sold 200,000,000 shares in REC at NOK 1.25 per share. Following the
sale, SEB and close associates holds 26,343,998 shares in REC, equaling 1.25%
of the share capital and votes in REC. SEB has acted as sole manager and
book-runner for the private placement.
Renewable Energy Corp ASA Announces Contemplated
Secondary Sale of Company's Shares by Skandinaviska Enskilda Banken AB (publ) Mar
19, 2013
Renewable Energy
Corp ASA (REC) announced that Skandinaviska Enskilda Banken AB (publ) (SEB)
contemplates a private placement of 200,000,000 existing shares in REC held by
SEB (the private placement). The price per share in the private placement will
be determined through an accelerated book-building process. The minimum order
and allocation has been set to the number of shares that equals an aggregate
purchase price of at least the NOK equivalent of EUR 100,000. The book-building
period commences on March 19, 2013, at 16:35 CET and may close at any time on
short notice. SEB may complete or terminate the private placement at its own
discretion. SEB is acting as sole manager and book-runner for the private placement.
The background for the private placement is that on September 26, 2012, SEB
acquired and entered into a six month total return swap agreement with exposure
to 200,000,000 shares in REC. Orkla ASA, primary insider in REC and
counterparty to the total return swap agreement, has on March 19, 2013 sent a
notice of early termination of the total return swap agreement conditional upon
the successful completion of the private placement. The contemplated private
placement relates to an unwinding of SEB's hedge position in relation to the
total return swap.
Skandinaviska
Enskilda Banken AB Decreases Stake Held in Nordecon AS Mar 18, 2013
Nordecon AS
announced that Skandinaviska Enskilda Banken AB has decreased its stake held in
Nordecon AS from 8.28% stake to under 5% stake. Financial details were not
disclosed.
Skandinaviska
Enskilda Banken AB Prices 2020 Bond Feb 18, 2013 reported that Skandinaviska
Enskilda Banken AB has priced a EUR 1 billion bond to mature on February 25,
2020. The coupon is 1.5%, spread is 15 basis points. The payment date for the
loan is February 25, 2013. Barclays, BayerLB, Credit Agricole CIB, Royal Bank
of Scotland & SEB act as lead managers for the loan.
Skandinaviska
Enskilda Banken AB Proposes FY 2012 Dividend at SEK 2.75 Per Share-DJ Jan 31,
2013
Dow Jones
reported that Skandinaviska Enskilda Banken AB has decided to propose a
dividend payment of SEK 2.75 per share for the fiscal year 2012, corresponding
to a pay-out ratio of 52% of earnings per share at SEK 5.31 for the full year.
Skandinaviska
Enskilda Banken AB Issues Equity Indexed Bonds Jan 03, 2013
Skandinaviska
Enskilda Banken AB announced that it is issuing new equity indexed bonds, with
yields related to the share price performance of a basket composed of twelve
equities. The bonds have a term of four and a half years and redeem at maturity
at a price of at least 100. The Company issues a new equity indexed bonds,
"SEB Chinese Stocks 2017" (ISIN DK0030314976). The bonds receive no
coupon, but will be redeemed at a price related to the possible positive
development in an equally weighted underlying basket of shares. The underlying
basket of shares is composed of twelve Chinese companies. The twelve underlying
shares are each subject to a price ceiling in the calculation of the evolution
of the underlying basket of shares. The bonds have a term of four and a half
years, issued at a price of 110. The bond loan is organized by Garanti Invest
A/S and offered for sale through selected Garanti Invest banks. Drawing of bonds
takes place in the period from January 21, 2013 to February 8, 2013, both days
inclusive. The size of the initial issue will be determined by the subscription
period, but will, if the issue is completed, have at least a nominal value of
DKK 10 million with a market cap of at least 35%. The bonds have been approved
for trading and official listing on NASDAQ OMX Copenhagen A/S with the first
day of trading on March 11, 2013 and will be registered with VP SECURITIES A/S.
Annual income statement
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.62 |
|
UK Pound |
1 |
Rs.100.84 |
|
Euro |
1 |
Rs.84.98 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.