Swedish retail and private bank SEB has increased its operating profit in the thirds quarter to SEK3.9 billion, which represents an impressive 28% growth on the same quarter of 2005.
SEB’s quarterly net profit exceeded SEK3 billion for the first time as revenues were significantly higher than last year, the bank said. A strong business climate in combination with SEB’s diversified platform in terms of business-mix and geography underpinned the results.
Operating profit for the nine-month period January to September 2006 increased by 32% to SEK11.4 billion. Net profit rose by 36% to SEK8.8 billion. Return on equity was 19.9% and earnings per share increased to SEK13.1.
The positive results came shortly after the Nordic bank revealed plans to improve profitability through restructuring from January. At the start of next year, the firm’s retail banking operations in Sweden, Germany, Latvia, Lithuania and Estonia will be incorporated into a single retail banking division. Meanwhile SEB’s asset management and private banking operations with be incorporated into a wealth management division.