The Estonian units of the Scandinavian financial group SEB ended the year 2010 with a profit of 49.1 million euros compared to a loss of 80 million euros a year earlier. The operating income of SEB Eesti decreased to 124.2 million euros from 133.8 million euros in the previous year. Operating costs shrank from 101.2 million euros in 2009 to 66.2 million euros, the bank said.
Loan loss provisions totalled 9.1 million euros. A year earlier the figure was 112.5 million euros.
“The year 2010 was for SEB the breakthrough year in Estonia. Many decisions made in hard times paid off and SEB was well prepared for the economic revival. SEB’s support for customers experiencing payment difficulties yielded results as witnessed by the substantially below the market average proportion of loan losses which in 2010 made up only 0.22% of the loan portfolio,” SEB Pank CEO Riho Unt said in a comment on the results.
The strong performance of SEB’s Estonian units can in Unt’s words be attributed to efficient cost control on the one hand, and a significant rise in customer activity on the other. “Starting from the second half of the year, loan projects worth more than 200 million euros have been constantly under work in corporate banking,” he observed.
The volume of new housing loans issued by SEB surged 24.7% in 2010. Corporate and private deposits increased as well, by respectively 12 and 8% compared to 2009, Unt said.
Source: Estonian Review