SEB Estonia reports 7.3 percent profit growth on year
After nine months of 2022, SEB Estonia reported profits of €80.8 million, an increase of over €5 million against the bank's €75.6 million revenues at the same point last year.
SEB Estonia's nine-month revenues were up 7.3 percent on year, while expenses also were eight percent higher.
Allan Parik, chair of SEB Bank's management board, said that the bank's loan and leasing portfolio had increased by 7.8 percent when compared to the same period last year. "As a result of high-quality loan portfolio and customer activity, SEB's nine-month profit level was 6.8 percent higher than at the same time last year," Parik said.
The group's operating income for the nine-month period amounted to €140.6 million (€131 million for the same period in 2021), with operating expenses amounting to €48.1 million (€44.5 million in 2021).
Lan loss provisions decreased by €0.7 million in the first nine months of 2022, in comparison to €0.5 million for the same period last year. Income tax came to €10.8 million for the first nine months of the year, as opposed to €9.7 million in 2021.
Household savings decreased
In the third quarter, the household savings portfolio decreased by 0.7 percent compared to Q2. According to the bank, the drop is due not only to rising living costs, but also increased consumption.
According to SEB's statistics, the amount spent on travel in 2022 will be the same as pre-pandemic levels, while this summer, spending on eating out was up to a third higher than in 2019.
The bank also said, that rising cost of living in combination with families' desires to maintain current standards of living have already started to reduce savings levels. However, the coming fall and winter seasons, with their higher living costs are also expected to have an impact.
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Editor: Michael Cole