Skandinaviska - 1st Quarter Results-Part 1

RNS Number:7890J
Skandinaviska Enskilda Banken
28 April 2000

Part 1


Interim Report, January - March 2000

STRONG RESULTS AND HIGH ACTIVITY

Strong results in most areas:

- Group's total result*: SEK 3,659 M (SEK 2,306 M).
- Group's return on equity: 27.2 per cent (18.2 per cent)
- Return on equity, 12 months moving average: 17.1 per cent (13.5 per cent)
- Total result excluding one off items: SEK 2,747 M (SEK 1,766 M)
- Group's operating result: SEK 3,015 M (SEK 1,643 M)
- Commission income increased by 104 per cent to SEK 3,702M (SEK 1,812M)
- Assets under management amounted to SEK 930 billion (SEK 510 billion) and
  Assets under custody rose to SEK 2,559 billion (SEK 1,801 billion)

High activity during the first months of the year:

- Consolidation and restructuring of BfG
- Sales of real estate (SEK 420 M in capital gain before tax) 
- IPO of SelfTrade 
- Enskilda Securities' merger with Orkla Finans Fondsmegling 
 (capital gain SEK 373M before tax) 
- Formation of venture capital unit SEB e-invest, which invested in b-business  
 partners 
- Announcement of closure of 50 branches in Sweden 
- E-banking and e-brokerage in 8 European countries with 570,000 customers  
  including SelfTrade.


GROUP PERFORMANCE

Through the acquisition of BfG Bank and consolidation of two of the three partly
owned Baltic banks, the SEB Group has grown dramatically compared with the first
quarter of 1999. Income has increased by 70 per cent and costs have increased by
56 per cent. After these acquisitions the SEB Group now employs half of its
staff outside Sweden.

The new e-centric SEB Group was at the end of 1999 organised into four main
areas; Nordic Banking, which mainly operates in mature markets, Asset Management
& Life, targeting growing markets in Europe, the newly acquired BfG and Other
activities. The varying market conditions for the different areas create diverse
priorities. This means for example that cost- and capital efficiency measures
have high priority in the Nordic Banking area whereas Asset Management & Life is
aiming to profitable growth within the savings area in Europe, which affects
both income and costs.

*The Group's total result comprises operating result, change in surplus values
in the life insurance operations and compensation from pension fund. As of the
First quarter of 2000, SEB is following the Swedish Financial Supervisory
Authority's guidelines and recommendations valid from 2001 and is presenting a
profit and loss account, in which results from the banking and the insurance
operations are reported separately.  In addition, SEB is presenting an
operational profit and loss account.

CEO:S COMMENT

    "The highly favourable market conditions that prevailed at the end of 1999
    were strengthened further during the first three months of 2000. Stock
    market volumes have been high. It is pleasing to note that our efforts in
    the Asset Management area are paying off so well," says Lars H Thunell,
    President and Chief Executive Officer.

    "Our focus on Asset Management and Life, which have been a centre of
    attention within SEB since 1997, is now, in addition to yielding sharp
    income increases, also providing a significant boost to profitability. The
    changed focus of the Group is now obvious with respect to the composition   
   of income; Commission income has increased by 104 per cent and now           
  constitutes 40 per cent of Group income as compared to 33 per cent last       
 years first quarter. We continue to be optimistic about the private savings    
area against the background of continued strong growth in demand in Europe.

    "We believe that major changes will continue to impact the
    financial-services industry. When it comes to e-banking, we are, therefore,
    enhancing our investments even further. We are investing in Denmark and
    Germany and in our pan-European platform that has been developed and is now
    being tested. Moreover, many new versions and applications will be launched
    in Sweden, for example, in the areas of stock brokerage and corporate
    e-services. However, we are also investing in areas outside our main        
   banking area in the form of venture capital activities, such as SEB e-       
  invest, whose first investment was in b-business partners, as well as the     
 French Internet broker SelfTrade."

    "Concurrently, we are seeing how our efficiency enhancement measures within
    the Nordic Banking operations are beginning to yield results. However, we
    cannot relax our resolve. A number of extensive measures are now being
    taken. This includes the reduction in branch offices and merging of two of
    Retail Distributions three regions, and improving the efficiency of
    Our foreign branch offices through partnerships with other banks. All these
    measures will provide further effects on the cost side without significant
    adverse consequences on revenues. "

    "Restructuring of BfG is proceeding as planned. The efficiency enhancement
    potential is greater than we originally assessed."

    "On the corporate side, we are focusing within several business areas on
    growth companies, which constitute an increasingly important client group.
    Special growth centres are being established within Retail Distribution to
    offer these customers advisory service with specific expertise. Enskilda
    Securities is opening up an office in Silicon Valley. We are continuing to
    reduce risk-taking within Merchant Banking, and one of the measures have
    been to discontinue Proprietary Trading. However, with regard to the
    Emerging Markets segment, we are increasing activity somewhat, but fully in
    line with our goal to serve our Nordic corporate clients and we experience
    that there are attractive business possibilities with limited risks. It is
    also positive to note how Trading and Capital Markets are posting steadily
    increasing revenues."

    RESULT BY MAIN GROUP

    Nordic Banking
    The total result for the Nordic Banking operations (Retail Distribution and
    Merchant Banking business areas as well as SEB Securities Services) rose 10
    per cent to SEK 1,456 M. Income was up 4 per cent as a result of sharply
    increased income in Retail Distribution and SEB Securities Services. The
    cost increase, net after compensation from the pension funds, was 4 per
    cent. The income/cost ratio was, in principle, unchanged at 1.83 (1.82).
    The goal in 2000 is that the cost level in Nordic Banking shall be
    unchanged compared with 1999.

    Capital rationalisation, particularly within Merchant Banking, continued to
    be a prioritised area for Nordic Banking. During the first quarter,
    allocated capital was reduced by SEK 566 M to SEK 17.921 M. Return on
    allocated capital improved somewhat.

Profit and loss account - Nordic Banking

SEK M                  Jan-March 2000    Jan- March 1999   Change    Full year
                                                           per cent       1999

Net interest earnings          1,771           1,782         -1         7,061
Net commission income          1,031             712         45         2,958
Net result of financial          405             588        -31         1,049
transactions
Other operating income           106              89         19           336
Total operating income         3,313           3,171          4        11,414
Staff costs                   -1,028            -952          8        -3,956
Compensation from Pension           
Foundations                      107              65         65           459
Other costs                     -862            -824          5        -3,383
Depreciation and write-downs     -29             -33        -12          -135
Total costs                   -1,812          -1,744          4        -7,015
Lending losses and                  
provisions, net                  -45            -107        -58           255
Total result                   1,456           1,320         10         4,644
Allocated capital             17,921          18,487                   17,587
Return, 12 MMA*,%               19.2            10.5                     19.0

*12 MMA = 12 months moving average

Retail Distribution - strong revenue trend
The business area achieved a result improvement of 78 per cent. This was
attributable to a strong income trend, particularly from interest, net from
deposits and commission income from primarily securities, insurance and
payments. The cost increase of 6 per cent is due mainly to Internet expansion
and higher business-related computer costs.

As of the first quarter of 2000, SEB Finans is included in Retail Distribution.
Compared with the first quarter of 1999, the result for SEB Finans nearly
doubled.

Retail Distribution incl. SEB Finans

SEK M         Jan-March   Jan-March       Full
                   2000        1999       year 1999

Income            1,729       1,376        5,831
Costs            -1,020        -958       -3,944
Lending losses      -57         -51         -186
Total result        652         367        1,701

Merchant Banking - reduced risk and enhancement of efficiency 
Customer-related income showed a continued positive trend, SEK 1,199, compared
with an average per quarter of SEK 1,021 M in 1999. The decline in income
compared with the first quarter of 1999 is explained by the fact that the bank
then had larger income from own position-taking in conjunction with the
introduction of the Euro and declining interest rates.

In March, Merchant Banking closed the Proprietary Trading unit as a step in the
ambition to further reduce income swings and concentrate capital utilisation to
prioritised growth areas. The latter includes the emerging common European debt
capital market for companies and the growing sector for financial institutions
within asset management. The continued focus on Internet-based services has been
successful: for example, during March clients carried out one fourth of their
Foreign Exchange transactions via Trading Station compared with a 15 per cent
monthly average in 1999.  The market leader position that SEB Merchant Banking
claims within the foreign exchange area has also in recent years been confirmed
by foreign exchange surveys by the independent research institute Greenwich
Associates.

Merchant Banking's exposure to emerging markets remains at a low level.    
However, a cautious increased exposure has occurred since year-end as a    
result of the clearly improved economic climate in many of these markets,     
which resulted in increased financial activity among Merchant Banking's       
customers (See page 10). In order to enhance efficiency while maintaining     
and increasing our global reach, an agreement has been signed with Bank of    
New York to cooperate in serving our Nordic corporates in the US.

As of the first quarter of 2000, the venture-capital unit SEB Foretaginvest    
is included in Merchant Banking.


Merchant Banking incl. SEB Foretagsinvest

SEK M          Jan-March 2O00  Jan-March 1999    Full year 1999
Income             1,376           1,645             4,924
Costs               -755            -735            -2,895
Lending losses        13             -56               441
Total result         634             854             2,470

SEB Securities Services - strongly increased volumes
SEB Securities Services provides securities management and custodial services in
Stockholm, Copenhagen, Helsinki and Oslo under its own name and have
sub-suppliers in about another 55 countries.

The sharp growth in business volume continued during the first quarter of 2000.
The daily institutional transaction volume rose 64 per cent to slightly more
than 13,200 transactions and the value of assets under custody increased 42 per
cent to SEK 2,559 billion.

SEB Securities Services

SEK M         Jan-March 2000  Jan-March 1999   Full year 1999

Income               253          190          822
Costs                -79          -86         -336
Total result         174          104          486

Asset Management and Life - strong and profitable growth
The total result for this main group - which includes Asset Management and SEB
Trygg Liv, that is the main portion of the saving activities within the SEB
Group - more than doubled. Income, including changes in the surplus value in the
life insurance operations, rose 66 per cent, due to the rise in the stock market
values and favourable new sales of life insurance, among other factors.

Costs rose 27 per cent, due partly to increased bonus-related remuneration and
new ventures in the Nordic region and Great Britain. The average number of
employees was 1,960, an increase of 16 per cent compared with the first quarter
a year earlier.

The income/cost ratio improved dramatically to 2.15 (1.65).

As of 31 March 1999, the SEB Group had assets under management amounting to SEK
930 billion, of which Asset Management and Life managed SEK 815 billion (SEK 510
billion). Portfolio management accounted for SEK 353 billion (SEK 212 billion)
of this amount, traditional life insurance for SEK 246 billion (SEK 154
billion), Mutual funds for SEK 152 billion (SEK 104 billion) and unit-linked
insurance for SEK 64 billion (SEK 40 billion). Since year-end, assets under
management rose 16 per cent.

- Profit and loss account - Asset Management and Life

SEK M                   Jan-March 2000   Jan-March 1999    Change   Whole year
                                                           per cent       1999

Net interest earnings            104                68        53        315
Net commission income          1,073               614        75      3,054
Net result of financial           25                28       -11         81
transactions
Other operating income           210               157        34        710
Change in surplus values in life 473               268        76      1,502
insurance operations
Total operating income         1,885             1,135        66      5,662
Staff costs                     -408              -331        23     -1,547
Compensation from Pension         20                13        54         88
Foundations
Other costs                     -467              -348        34     -1,506
Depreciation and write-downs     -23               -23         0        -92
Total costs                     -878              -689        27     -3,057
Lending losses and provisions,     0                 0                   -1
net
Result, associated company        -2                 0                   -7
Total result                   1,005               446       125      2,597
Allocated capital              8,000             7,000                7,000
Return, 12 MMA, %               28.4              16.4                 26.7

* Including attributable goodwill

Asset Management - profitable growth
Income  rose  69  per cent mainly as a result of the increase  in  stock  market
value,  higher income from equity trading, which contributed to results for  the
Private Bank; SEB Enskilda Banken more than doubled, and new ventures in
Denmark. Costs rose 27 per cent as  a  result  of increased bonus-related
remuneration, rising transaction costs and the  ventures in Denmark and Great
Britain.

Asset Management

SEK M        Jan-March 2000  Jan-March 1999 Whole year 1999

Income            1,050        623             3,035
Costs              -499       -394            -1,823
Lending losses        0          0                -1
Total result        331        229             1,211

SEB Trygg Liv - enhanced growth
SEB Trygg Liv reports a strong sales growth for the first quarter. The high
demand for primarily single-premium endowment assurance in the form of
unit-linked rose further. Sales were up 70 per cent to SEK 4,290 M (SEK 2,527 M
and premium income (premium paid) increased 50 per cent to SEK 5,747 M (3,825 M)
compared with the year-earlier period. Sales outside Sweden succeeded well.

The change in surplus values was 76 per cent greater than in the corresponding
period in 1999. Of the change for the first quarter, SE 473, SEK 386 M is from
new contracts (See appendix 1).

SEB Trygg Liv

SEK M               Jan-March 2000   Jan-March 1999   Whole year 1999

Income                      857         527             2,686
Costs                      -401        -310            -1,293
Result, associated company    0           0                -7
Total result                454         217             1,386 


BfG - developing according to plan

German BfG Bank, which was consolidated in the SEB Group on 3 January 2000,
reported a total result of SEK 312 M, whereof 119 was a one off item. Income was
sustained due to improved net commission income, mainly in mutual fund sales.
Costs declined due mainly to a reduction in the number of employees.  Lending
losses increased compared to 1999.

Since the purchase price and thereby the acquisition cost for BfG was lower than
the real value of the identified net assets, a negative difference occurred,
called negative goodwill. This negative difference has in connection to the
acquisition been calculated to SEK 3,400 M and will be accounted for as a
provision. The main part of this provision corresponds to costs for measures
which now have started and are planned for the coming years with the aim to
reach an acceptable profitability in BfG and where costs for these measures do
not correspond to reservations made at the time of the takeover. The provision
will be resolved in the pace with costs for these identified measures being
incurred. In the case that the provision can not be referred to specific
measures the remaining negative goodwill will be resolved according to Swedish
accounting recommendations. In total, the negative goodwill is expected to be
resolved during the coming 4-5 years.

The restructuring efforts announced for BfG are proceeding as planned. During
the first quarter co-operation was established between BfG and SEB Investment
Management and SEB Fonder and the first joint mutual fund - BfG Concept Teletech
- was launched successfully on the German market.    Co-ordination with SEB
Private Bank in Luxembourg was started. The decided closing of the subsidiary
bank Deutsche Handelsbank in Berlin with 75 employees was started. A smaller
subsidiary in real estate brokerage was divested.

The decided reduction in the number of employees, previously announced as     at
least 500 positions was increased during the spring to about 700 during     the
next two years.

In the end of March BfG had assets under management amounting to approximately
SEK 116 billion.  BfG, which during the spring will present a new version of its
own Internet bank, has initiated close collaboration with SEB e-banking prior to
the launch of a pan-European model during the third quarter. At the end of March
2000, BfG had 85,000 e-banking customers.

Profit and loss account - BfG

SEK M                          Jan-March 2O00
Net interest earnings                1,086
Net commission income                  564
Net result of financial transactions   172
Other operating income                 109
Total operating income               1,931
Staff costs                           -717
Other costs                           -501
Depreciation and write-downs           -91
Total costs                         -1,309
Lending losses and provisions, net    -312
Result, associated company               2
Total result                           312
Allocated capital                   14,000
Return, 12 MMA, %                      6,4

Other activities
This group includes the Enskilda Securities, SEB Kort and the Baltic banks. The
last-mentioned business area comprises two majority owned banks, Eesti Uhispank
and Latvijas Unibanka, and the partly owned Vilniaus Bankas.
   
Profit and loss account - Other activities

SEK M                            Jan-March    Jan-March   Change    Whole year 
                                 2000         1999        per cent    1999

Net interest earnings             127           21          505          284
Net commission income           1,163          564          106        2,853
Net result of financial           336          155          117          571
transactions
Other operating income             41           12          242          296
Total operating income          1,667          752          122        4,004
Staff costs                      -739         -325          127       -1,695
Compensation from Pension           8            5           60           34
Foundations
Other costs                      -300         -200           50       -1,006
Depreciation and write-downs      -72          -18          300         -139
Total costs                    -1,103         -538          105       -2,866
Lending losses and provisions,     -3          -11          -73         -101
net
Result, associated company         18           41          -56          110
Total result                      579          244          137        1,147
Allocated capital               3,179        1,943
Return, 12 MMA, %                33.6         23.6                      42.5

During the first quarter of 2000, Eesti Uhispank and Latvijas Unibanka were
consolidated within SEB. In the corresponding period of 1999 these banks were
only include as result from associated companies.

Enskilda Securities - continued strong result improvement
The favourable market conditions from the beginning of 1999 were reinforced
further during the first three months of 2000. The volume of trading on the OM
Stockholm Exchange rose 115 per cent and activity within IP0s was high - due
largely to the strong interest in IT, telecom and technology shares.

Enskilda Securities income in the secondary market during the first quarter was
the highest ever, rising 122 per cent compared with the same period in 1999.
Income was affected positively by a number of IP0s. Both the equities and
derivative markets and Corporate Finance posted highly favourable earnings. In
particular, share commission, results from derivative trading and income from
placements and IP0s improved compared with the first quarter of 1999. IT,
telecom and technology share transactions accounted for nearly half of fee
revenues. In order to come close to this market, Enskilda Securities have
decided to open an office in Silicon Valley.

An agreement was signed covering a merger of Enskilda Securities AB and Orkla
Finans (Fondsmegling) ASA for the purpose, among others, of strengthening the
company's position in the Norwegian market. The agreement is made through an
exchange of assets in kind. Enskilda Securities assumes ownership of Orkla
Finans (Fondsmegling) in return for Orkla Finans ASA owning 22.5 per cent of the
capital in Enskilda Securities AB, while SEB retains 77.5 per cent. Through this
transaction a capital gain is incurred in SEB, which is accounted for on group
level (SEK 373 M) which is simultaneously reflected in an increase in goodwill.

In total, Enskilda Securities increased revenues during the first quarter of
2000 by 141 per cent, including Orkla Finans (Fondsmegling), and 105 per cent
excluding.

Costs rose 119 per cent including - 88 percent excluding - Orkla Finans
(Fondsmegling) as an effect of result-related bonuses, recruitment of a number
of key personnel and costs related to the merger. In addition to these factors,
the strong volume trend and the related new recruitment contributed to the
underlying cost increase of 19 per cent.
                                                                 
    Results tripled when Orkla Finans (Fondsmegling) is included. Excluding
    Orkla, results improved 160 per cent.

    Enskilda Securities

SEK M              Jan-March 2000    Jan-March 1999    Whole year 1999

Income             1108                459               2,279
Costs              -724               -330              -1,694
Lending losses       -8                  0                   7
Total result        392                129                 592

SEB Kort - increased efficiency
Sales of SEB Kort, which includes Diners Club Nordic and Eurocard, rose 14 per
cent compared with the year-earlier period. At the same time, operating result
improved 37 per cent. Costs increased marginally, which indicated that SEB Kort
has increased its earnings capacity and its efficiency.

SEB Kort

SEK M            Jan March 2000     Jan March 1999   Whole year 1999
Income           335                302              1329
Costs           -210               -207              -868
Lending losses   -10                -11               -56
Total result     115                 84               385

Baltic Region
The result for the business area amounted to SEK 72 M for the first quarter of
2000. During the comparable period last year, the three partly owned banks in
the Baltic, which then were not a separate business area, contributed SEK 31 M.
During the second half of 1999 Eesti Uhispank, Estonia, and Latvijas Unibanka,
Latvia, were consolidated in the SEB Group. Vilniaus Bankas, Lithuania, in which
SEB owns 42 per cent, is still reported as a result from associated companies.

After Vilniaus Bankas' acquisition of Bankas Hermis at the end of 1999, the
number of employees in the merged bank was reduced from slightly more than 2,000
to 1,750. Efficiency enhancement measures continue.

Baltic Region

SEK M                 Jan-March 2000   Jan-March 1999    Whole year 1999
Income                      231                            396
Costs                      -169                           -284
Lending losses               -1                            -52
Result, associated company   11                            110
Total result                 72            31              170

e-BANKING

SEB Internet, which was renamed in the spring to SEB e-banking, is an
independent unit in the Group since the summer of 1999. However, income from and
costs of the Swedish and German e-banking operations are reported in the
business areas, where the customers use the services, that is, mainly in Retail
Distribution and BfG.

Costs for investments in e-banking during the first quarter of 2000 amounted to
SEK 94M. The investments are now accelerating. In mid-April, the new model was
launched in Denmark. Germany is next during the third quarter.

During the first quarter of 2000 the number of e-banking customers rose to     
570,000, of which slightly more than 410,000 in Sweden.  Activity among       
these customers continued to grow at a high rate.  The number of share
transactions was, for example, 50.000 in March 2000 compared with 10,000 in the
same period of 1999. The number of payments on Internet has increased to 1.3
million per month (820.000)

The e-activities within the Group now comprise a wider span. The newly    formed
SEB e-invest has already made its first investment. SEK 415 M has been invested
in b-business partners, a venture capital company to invest in B2B Internet
trading.

During the first quarter of 2000 the French e-stockbroker SelfTrade, where
SEB holds 34 per cent of the votes and 20,4 per cent of the shares, was
listed on Nouveau Marche in Paris. In conjunction with the listing a new
issue was made in which SEB participated with its share. On the first day of
trading the market value of SEB's shares in SelfTrade amounted to SEK 1.2
billion, while the book value on SEB's share was about SEK 300 M. As of
April 27th the value to SEB amounted to approximately SEK 700 M. This
implies an unrealised capital gain which is not accounted for.

SelfTrade is one of the leading e-brokers in the French market and its goal
is to be the leader on a European basis when it comes to financial services
on Internet. SelfTrade have about 26,000 customers in France and has also
opened operations in Milan.

GROUP ACCOUNTS

At 31 March 2000, a change of one percentage point in the Group's combined
positions in SEK and other currencies means that the market value of the
Group's interest-sensitive positions would increase/decrease by SEK 1.2
billion (SEK 1.9 billion in the first quarter of 1999).

The nonrecurring items amount to SEK 912 M (SEK 270 M). The sale of the
bank's property on Kungstradgardsgatan resulted in a capital gain of about
SEK 420 M before taxes. A capital gain arose on the settlement with Orkla
Finans of SEK 373 M. This amount is offset by higher goodwill. SEK 119 M of
the result in BfG is attributable to nonrecurring items.

Of the total restructuring reserve in the 1997 year-end accounts of SEK
2,255 M, SEK 1,724 M, of which SEK 1,222 M in 1999, was utilised as of 31
March 2000.

The Group's lending losses, including value changes in assets taken over,
amounted to SEK 281 M, of which BfG accounts for SEK 312 M. Accordingly, the
lending loss level was 0.16 per cent (0.14 per cent).

SEB's exposure on emerging markets at 31 March 2000 was SEK 16.758 M, net,
of which SEK 5,209 M was added through the acquisition of BfG. Accordingly,
compared with year-end exposure, excluding BfG, increased by SEK 1.144 M.
This is due, among other factors, to increases in exposures to Hong Kong,
Argentina and South Korea.


Exposure, geographical distribution, SEK M
                                 Total      From which
    Asia(1)                       7,251        1,555
     Hong Kong                    2,476          469
     China                          981          163
     Other specified countries(2) 2,243          152
    Latin America(3)              4,435          805
     Brazil                       1,481           59
    Eastern and Central Europe(4) 5,563        4,138
     Russia                       3,695        2,683
    Africa and Middle East(5)     3,914        1,388
     Israel                       1,186        1,029
     Turkey                         937           81
     Total                       21,163        7,886
     Provision                    4,405        2,677
    Total net                    16,758        5,209

    1. Includes Hong Kong, China, India, Pakistan, Taiwan, Macao
    2. Includes the Philippines, Malaysia, Thailand, Korea and Indonesia
    3. Includes Brazil, Argentina, Mexico and Peru
    4. Includes Russia, Israel, Estonia, Latvia Lithuania, Poland, the Czech
       Republic, Slovakia, Rumania, Hungary, Slovenia, Croatia, Kazakhstan and  
       the Ukraine
    5. Includes Turkey, Iran, Saudi Arabia, Egypt, South Africa, Ethiopia and
       Algeria

    Doubtful claims, net, increased because of BfG to SEK 7,434 M (SEK 2,703M), 
   while the volume of assets taken over decreased by SEK 875 M to SEK 610 M.

    Capital adequacy
    The capital base for the financial company group (which does not include    
   the insurance company) amounted at 31 March 2000 to SEK 50.6 billion (SEK    
  46.5 billion at year-end 1999), of which SEK 34.3 billion (SEK 34.4           
 billion) was core capital. At the same time, the risk-weighted assets rose     
to SEK 510 billion (SEK 318 billion at year-end 1999).

    If the result in the quarter was included in the capital base and capital
    adequacy, the total capital ratio would be 10.23 per cent (14.6 per cent at
    year-end 1999) and the core capital ratio 7.06 per cent (10.8 per cent).
    Excluding the results in the quarter, the total capital ratio was 9.9 per
    cent and the core capital ratio 6.73 per cent.

    Decisions at the Annual General Meeting 
    At this year's Annual General Meeting on 11 April, two new members were 
    elected to the Board: Penny Hughes, a member of the Board of Trinity Mirror 
   and Vodafone Airtouch, Great Britain, and Hans-Joachim Korber, President of  
  Metro AG, Germany. The dividend was set at SEK 3.50 per share.

    Stockholm, 28 April
    Lars H Thunell
    CEO

    The interim report for January-June 2000 will be published on 22 August
    2000. SEB's interim reports are available on the Internet (www.seb.se;
    www.seb.net).

    Additional information is available from

    Gunilla Wikman, head of Group Communications, [phone]
    Lotta Treschow, head of Investor Relations,   [phone]

This report is unaudited.

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