Falkengren: “We will not charge the small customers” – Swedish Dagbladet

SEB’s CEO Annika Falkengren delivered a strong report Thursday. Photo: Anders Ahlgren

In the midst of one of the most troubled financial situations for a long time, SEB surprised the market yesterday with an unexpectedly strong report. Both income and expenses came in better than analysts’ expectations. The reward from the stock market came directly: when opening climbed the bank’s shares immediately by 1 percent, and has remained at that level the rest of the day.

But it does not mean that the bank’s CEO Annika Falkengren is calm about the future. Time and again during Thursday’s presentation of the interim report, she says there is an uncertain situation now – and it affects customers in many ways.

– We have been there for our clients and that is the main thing. Since we can not do much about the outside world is challenging, says Annika Falkengren.

Less interest, as in the Riksbank’s latest statement will remain for some time to come, implies a right strange position, she says.

– it is difficult to know how to relate to it. We thought a year ago that it would go into the negative interest rate for a short period. But now we have to adapt to that it is here to stay for several years, she says.

Analysts warned in SvD on Thursday to a new savings package may be in the works SEB. But although the bank because interest rates are not making money on deposit at the moment can not bank cut costs anyway, says Annika Falkengren.

– Just because our income goes down, we can not draw cut costs sharply. We still feel that this is fairly temporary, it would not be right of me to control an entire banking group after the interest rate is right now.

She is like the bank by a large ship is slow-acting.

– We can go a few degrees in different directions. Customers and staff need to be involved and it takes time. You can not pull in different sails and tear too short term.

Riksbank less interest would in theory could mean that the bank will charge customers to take care of their money – something that Riksbank might have hoped for, to get the Swedes’ consumption and reduce saving, says Annika Falkengren. But SEB will not go that route, swears she said.

– We can not charge the small customers, she says – and points out that the bank instead will focus on making money on other things than the deposit right now.

– the Bank’s great. We are located in five countries, has a large customer base and customers do after all transactions. And they pay, of course, when they use our services.

You have to play the ball deep inside the half of the court. We have been careful.

There have been suspicions of mortgage customers to the bank the opportunity to make money on the mortgage, when there is no to retrieve the deposit. But Annika Falkengren rejects decided that the bank would take back the mortgage what it loses on savings accounts. The mortgage costs as they do despite the negative interest rate depends on completely different things.

– We put two and a half times as much capital today for mortgage loans compared to what we did a few years ago, and it costs . It is clear that the customer should pay for it, she says, and continues:

– Mortgage loans and deposits are completely different things. Otherwise, it might well be said that the high deposit rates would be lower mortgage rate. So, it’s not.

But despite Bank delivers a report that is stronger than expectations, see Annika Falkengren storm clouds in the financial skies ahead: brexit, remained less interest and concern for the European banking sector stability. Therefore, the bank must have a high level of preparedness, she says.

– We have to have a lot of liquidity, a lot of capital and be prepared that there may be rapid changes in market conditions. This may include large enterprises who need help. Then you do not get close to different limits, you have to play the ball deep inside the half of the court. We have been careful in the bank.

SEB’s report in figures

SEB’s operating profit 5 536 million for the second quarter of 2016, compared with 5.252 billion kronor a year ago. Analysts had, according to Reuters, on average, expected a profit of 4.862 billion crowns.

Revenue amounted to 11.136 billion kronor, compared with 10,996 last year’s second quarter. Operating expenses fell to 5.332 billion kronor (5.518 billion SEK). Staff costs fell by about $ 250 million and credit losses landed at SEK 221 million (SEK 220 million).

Net interest income was virtually unchanged at 4.647 billion kronor, compared with 4.632 billion kronor last year.