Thanks to this astute decision, profits rose 47% for 2007, to just over EsK2bn, with return on equity rising to 28.6%, from 25.6% the previous year. In addition to the move out of real estate, strong corporate banking activity also reaped rewards. “Last year, SEB performed exceptionally in the corporate banking sector as more than 50% of the new companies launched had SEB as their first bank,” says Ahti Asmann, CEO of SEB Estonia.
As economic activity declined sharply in 2008, SEB has also concentrated on offering a broader range of services to the retail segment, to maintain profitability.
“This year, SEB introduced something new to the Estonian banking market – package-based accounts for private individuals, depending on their banking needs and habits. This step has proven to be very successful in attracting new clients,” says Mr Asmann. About 60% of those who took up the package accounts were new customers for the bank.
SEB is expecting macroeconomic conditions in Estonia to remain less favourable in 2009 and 2010, but Mr Asmann is confident that the bank’s unique offerings will help it to continue growing. “Despite the somewhat cooler economic climate, we have maintained our operational results at a satisfactory level and will continue to do so in the future,” he says.
