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SEB slashes bonuses as profits fall

TT/Peter Vinthagen Simpson · 10 Feb 2010, 15:46

Published: 10 Feb 2010 11:34 GMT+01:00
Updated: 10 Feb 2010 15:46 GMT+01:00

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Analysts had expected an operating profit of 330 million kronor, according to a Reuters poll.

The bank announced that it was cutting staff bonuses in a move seen to be a response to stiff criticism from the government in the autumn when the bank announced that 1.5 billion kronor had been set aside for staff bonus in the first three financial quarters.

"While the bank has to consider the actions of Scandinavian and global competitors, the support of holders, colleagues and the society in general must be retained," SEB CEO Annika Falkengren said in a company statement.

Bonuses will be cut by two-thirds and will amount to a total of 795 million kronor including social security contributions.

At the same time the bank's board has recommended a dividend of one kronor per share. Last year, when the bank raised 15.1 billion kronor in a rights issue, the dividend was cut entirely.

Dividend payments equate to a total of 2.19 billion kronor and have been undertaken as a result of improved economic prospects and the concern's capital situation.

SEB's credit losses increased to 3.16 billion, up from 5.51 in the corresponding period of last year.

Revenues declined to 9.87 billion kronor, in comparison with 12.70 in the fourth quarter 2008.

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The bank's costs declined from 6.97 billion kronor to 6.13 billion.

"As we at the same time sustain costs from our investments, the bank's financial development will be dampened somewhat in the short term," Annika Falkengren explained.

SEB expects provisions for credit losses to decline somewhat during 2010 dependent on macroeconomic factors.

TT/Peter Vinthagen Simpson (news@thelocal.se)

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Your comments about this article

12:33 February 10, 2010 by Rick Methven
SEB has reported an operating profit of 564 million kronor ($77 million) for the fourth quarter 2010

That is really crystal ball stuff nearly a year in advance they know what the results will be!!!!

Or perhaps it should read 2009?
12:48 February 10, 2010 by peropaco
@Rick Methven. LOL.. They are visionaries.
13:23 February 10, 2010 by Nemesis
There is a simple solution to this.

Identify all those responsible, including in receipt of payments, organisaing payments, agreeing payments and approving payments.

Then tax there bonus's, pay and assets at 110 %.

This is a disgrace. The action of these people in the banks is definately going to lead to a backlash against them and hopefully there friends the poiticians at some point.
13:54 February 10, 2010 by calebian22

Absolutely correct. However, the air is so thin for these politicians and bankers in their high ivory towers, that cognitive reasoning has been eliminated.
18:23 February 10, 2010 by hugedingleberry

What a bunch of jealous little socialist pinkos. Nemesis and Calebian are upset because they have to get a job at MAX to support your delusions that your street art will eventually sell. Brotha please...

Grow up and learn how the world goes round. It isn't through your whining.
20:24 February 10, 2010 by calebian22
So wanting accountability is synonymous with socialst pinko? That's funny gigantic dingleberry.
20:59 February 13, 2010 by CardinalRuler
Strong results in a dismal market space. Slashing bonuses is a must given economic reality and falling public sentiment. In the land of 24-36 month severance packages and a tax-to-the-hilt "consumption-ist" society where savings rates are probably quite low, SEB's results are admirable (granted commercial banking is probably a miniscule part of their portfolio). Hats off to Falkengren.
11:53 February 17, 2010 by rumcajs
@ hugedingleberry

I agree with Nemesis and Calebian and I'm not jealous or socialist. In fact I don't give a f**k if you make more money than me or anybody else as long as it doesn't bother me and you PRODUCE OR CREATE SOMETHING GOOD.

I just don't get in my head that these guys get more money playing "casino" with OUR MONEY, than p/e a cop or a fire man who are actualy risking their lives to PROTECT US.

If I borrow money from the bank, I have to pay interest. But if I just have MY money there with no depts... I don't get any interest, but these guys do get huge bonuses for playing with MY money while they tell us that there is a crisis and live is cruel. It's like leaving your car in a garage where the mechanics are allowed to work as taxi drivers with it till you go to pick it up.
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