trending Market Intelligence /marketintelligence/en/news-insights/trending/DcAM5umcbDx8BD9_8Vm5jQ2 content esgSubNav
In This List

Goodwill impairment on reorganization pushes SEB to Q1 loss


Banking Essentials Newsletter: 7th February Edition

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)


Banks’ Response to Rising Rates & Liquidity Concerns

Goodwill impairment on reorganization pushes SEB to Q1 loss

SkandinaviskaEnskilda Banken AB booked a first-quarter group net lossattributable to shareholders of 2.29 billion Swedish kronor, compared to netattributable profit of 4.65 billion kronor earned in the same period in 2015.

The loss per share for the period was 1.04 kronor, comparedto EPS of 2.11 kronor a year earlier.

The group's net interest income was 4.64 billion kronor,down from the year-ago 4.95 billion kronor. Net fee and commission incomedeclined to 3.90 billion kronor from 4.67 billion kronor.

The bank booked net credit losses of 291 million kronor inthe period, up from 188 million kronor a year earlier.

Depreciation, amortization and impairment of tangible andintangible assets amounted to 5.91 billion kronor in the first quarter,compared to 245 million kronor in the same period in 2015.

Total operating expenses rose on a yearly basis to 11.37billion kronor from 5.48 billion kronor. The figure includes a technical impairment of goodwill of5.33 billion kronor booked due to the reorganization into customer segments anda 615 million kronor charge on the restructuring of the company's Baltic andGerman businesses and a write-down of intangible IT assets that are no longerin use.

ROE for the quarter was negative 6.58%, compared to theyear-ago 13.81%.

The group's Basel III common equity Tier 1 capital ratio was19.1% at the end of March, compared to 18.8% at 2015-end and 16.6% at the endof March 2015.

The liquidity coverage ratio, according to Swedish FSAregulations, was 132% at March 31, compared to 128% at the end of 2015 and 124%a year earlier.

As of April 26, US$1was equivalent to 8.11 Swedish kronor.