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SEB to book 5.3B kronor goodwill impairment charge in Q1

SkandinaviskaEnskilda Banken AB said March 29 that its first-quarter resultswill include a 5.9 billion Swedish kronor charge, mainly stemming from agoodwill impairment.

SEB noted that it reorganized into customer segments as ofJan. 1 and that following the reorganization, impairment of goodwill ofapproximately 5.3 billion kronor will be booked in the first quarter inaccordance with IFRS accounting principles. "The impairment is of atechnical nature as it is a function of it being performed at business unit andgeographical level, and not the divisional level," the bank said.

The lender will also book 600 million kronor in otherone-off financial effects from restructuring activities in the Baltic andGerman business and write-down of intangible IT assets no longer in use.

SEB said that it has also aligned its cost cap to 22 billionkronor for 2016 and 2017. The impact on the common equity Tier 1 ratio ismarginal. SEB said its three-year business plan remains unchanged.

The bank added that restatement of the segment informationfor the new organization has now been made for 2014 and 2015.

As of March 29, US$1 was equivalent to 8.28 Swedishkronor.