SEB's profits exceed €31 million profit in Q1 2024

Estonia's second-largest commercial bank SEB Bank ended the first quarter (Q1) of 2024 with a profit of €31.4 million, compared to €50.9 million during the same period last year.
The group's operating income for Q1 2024 amounted to €93.9 million, compared to €78.7 million in the first quarter of 2023. Its operating expenses were €21.2 million, while a year earlier they were €18.3 million.
In the first quarter of 2024, the group paid a total of €50 million in various taxes to the Estonian state. SEB Bank accounted for €41.5 million in income tax in the first quarter, compared with €9.2 million in Q1 2023.
SEB Bank Board Chair Allan Parik said that the first quarter of this year was characterized by a certain amount of stabilization. In his view, the first signs are that the worst of the recession has passed are visible and a gradual economic recovery can be expected.
While the expected fall in the Euribor has been postponed, this has kept deposit rates high. In the first three months of 2024, SEB's customers earned €26.3 million on fixed-term deposits, compared to €5.8 million in the first quarter of 2023.
Corporate deposits continued to declining slowly and were down 2.2 percent from the first quarter of 2023. Meanwhile, private deposits gradually increased, rising 3.4 percent from Q1 2023.
"So, it is fair to say that companies are still using their buffers to cope with the effects of the downturn," said Parik.
According to Parik, demand for credit has increased. SEB issued 15 percent more home loans in the first quarter than in the same period last year. SEB's loan portfolio of corporate customers also grew.
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Editor: Michael Cole