SEB’s Annual Accounts 2021 and Strategy Update
The operating profit for the fourth quarter of 2021 amounted to SEK 7.5bn, with a return on equity of 12.9 per cent on a capital buffer above the regulatory requirement of 590 basis points. The operating profit for the full year 2021 amounted to SEK 30.9bn, with a return on equity of 13.9 per cent. The Board of Directors proposes an ordinary dividend of SEK 6.00 per share. During 2022, SEB plans to distribute between SEK 5-10bn through share buybacks, subject to market conditions.
“In line with the global economic recovery, rising stock markets and an improved sentiment, SEB’s operating profit improved significantly in 2021 compared with the challenging pandemic year of 2020. We saw high customer activity in the Large Corporate & Financial Institutions division, and assets under management and assets under custody increased significantly. We have during the year reviewed our strategic direction. This has resulted in SEB’s 2030 Strategy, which aims to future-proof our business and which we are also presenting today along with our new three-year business plan,” says Johan Torgeby, SEB’s President and CEO.
2030 Strategy and business plan for 2022-2024
Based on SEB’s 2030 Strategy, we will focus on four main areas going forward: acceleration of efforts, strategic change, strategic partnerships, and efficiency improvement. Our new business plan for 2022-2024 details how we aim to execute in these areas.
“As we look ahead, we aim to build on our position of strength and continue the journey we started three years ago of further investing in our business. By doing so, we strive to continuously develop our capabilities and leverage trends transforming the banking industry and meet our customers’ changing needs and behaviours – not least in the areas of digitalization and sustainability,” says Johan Torgeby.
Investing to accelerate income growth
By accelerating income growth, driving earnings per share growth, increasing our profitability and future-proofing our business, we aim to create shareholder value. This will be achieved by capitalising on our position of strength and by further investing in our business, as outlined in our business plan for 2022-2024.
The target entails growing our business in a capital-efficient manner to reach our long-term financial targets. In the short-term, we have a cost target for 2022 of SEK 24.5bn, assuming 2021 FX-rates. Towards the end of the business plan period, we plan to be within our long-term capital target of 100-300 basis points above the regulatory requirement. During 2022 we plan to distribute between SEK 5-10bn through share buybacks, subject to market conditions. All of this is with the overall ambition to grow earnings per share and reach our long-term aspirational target of 15 per cent return on equity.
Financial information
| Q4 | Q3 | Q4 | Jan-Dec | ||||||||
| SEK m | 2021 | 2021 | % | 2020 | % | 2021 | 2020 | % | |||
| Total operating income | 13 870 | 13 716 | 1 | 13 066 | 6 | 54 614 | 49 717 | 10 | |||
| Total operating expenses | -6 097 | -5 671 | 8 | -5 842 | 4 | -23 245 | -22 747 | 2 | |||
| Net expected credit losses | - 299 | - 49 | - 835 | -64 | - 510 | -6 118 | -92 | ||||
| Operating profit before items affecting comparability |
7 476 | 7 997 | -7 | 6 382 | 17 | 30 864 | 20 846 | 48 | |||
| Items affecting comparability | -1 000 | -100 | |||||||||
| Operating profit | 7 476 | 7 997 | -7 | 6 382 | 17 | 30 864 | 19 846 | 56 | |||
| NET PROFIT | 6 198 | 6 634 | -7 | 5 123 | 21 | 25 423 | 15 746 | 61 | |||
| Return on equity, % | 12.9 | 14.1 | 12.2 | 13.9 | 9.7 | ||||||
| Return on equity excluding items affecting comparability, % | 12.9 | 14.1 | 12.1 | 13.9 | 10.3 | ||||||
| Basic earnings per share, SEK | 2.87 | 3.06 | 2.37 | 11.75 | 7.28 | ||||||
This disclosure contains information that SEB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 27-01-2022 07:00 CET.