Annual Accounts 2002

Annual Accounts 2002

Stronger result, despite weaker markets
*Operating result* SEK 7,412 M, an increase of 6 per cent on a
 comparable basis

*Income decrease of 4 per cent on a comparable basis

*Total costs down by 9 per cent on a comparable basis - cost target
 reached
*Credit losses remained at low level

*Increased customer satisfaction and strengthened market positions

*Return on equity: 12.0 per cent (11.9)

*Earnings per share: SEK 7.60 (7.17)

*Proposed dividend: SEK 4.00 (4.00)

* Includes pension compensation of SEK 948 M (1,002). Statutory
operating profit (excluding pension compensation) amounted to SEK 6,464
M (6,151).


President's Statement
SEB's profit for 2002 was better than in 2001 as a result of our current
change programme. The world economy weakened and for the third
consecutive year the value of stock exchanges worldwide declined.
Stockholm fell by 37 per cent for the full year (compared with a decline
of 16 per cent in 2001). It has been a difficult year for many of our
customers.

In recent years, SEB has undergone a strategic transformation and a
strong expansion, particularly internationally. During the past year, we
have focused our efforts on an internal change programme, with the aim
of realising our potential and creating a sustainable profitability
level. This programme, launched in the autumn of 2001, has more than
offset the impact of the weak economic trend in the world. It is
gratifying to see all the achievements made by all divisions, business
areas, companies and staff units throughout the Group. The programme is
called "3C", which stands for Customer satisfaction, Cross-servicing and
Cost-efficiency.

Customer satisfaction has been strong among Nordic corporations and
customers in Germany, while the rating from retail customers in Sweden
needed to be improved. Following our increased focus on the branch
offices, the degree of satisfaction among our Swedish retail customers
increased according to an external survey made last autumn. That is a
good basis for our continued efforts.

Cross-servicing stands for increased co-operation and cross selling
within the Group. This is possibly the most important instrument over
the long term to improve customer satisfaction, increase revenues and
reduce costs. Therefore a process, under the heading of "one SEB", was
initiated during 2002 in order to strengthen the internal co-operation.
We have chosen to focus on four common core values: commitment,
continuity, mutual respect and professionalism.

Our Cost-efficiency programme started during the autumn 2001 and aimed
at reducing cost levels from SEK 22.5 billion on an annual basis to SEK
20 billion in the first quarter of 2003 (including Trygg Liv and
excluding restructuring costs). That level has already been reached - a
quarter earlier than planned. In total, the Group's number of employees
declined by approximately 1,600, or 8 per cent, in 18 months.

It is clear that our 3 C programme has yielded results all through the
Group. It is also rewarding to see how all business areas have
strengthened their market positions!

Nordic Retail & Private Banking succeeded in reducing costs that more
than offset declining revenues. The improved efficiency increased return
on capital to almost 26 per cent.

Within the Corporate & Institutions division, Merchant Banking posted a
result of more than SEK 4 billion, which was in line with the preceding
year and a very strong performance. It is especially gratifying to see
the stability in the Merchant banking earnings. Naturally, the decline
in earnings was substantial for Enskilda Securities, but it was
nevertheless positive to yield a result of nearly SEK 200 M during such
a year.

SEB Germany suffered from the weak business climate. Increased sales and
cost savings could not entirely offset the impact of the difficult
market conditions. Our strategy is to work with a long-term focus to
strengthen our position in the German market. SEB Asset Management has
succeeded well in cost-efficiency terms, improving its cost/income ratio
in spite of falling income. The SEB Baltic & Poland division showed very
strong growth in volumes and income resulting in an earnings increase by
30 per cent.

SEB Trygg Liv was hit by the value decline on the stock markets. During
the year, the Group supported Nya Livförsäkringsaktiebolaget SEB Trygg
Liv with capital infusions totalling SEK 530 M in order to support the
operation and its continued growth.

The level of credit losses remained low. The increase in 2002 was mainly
due to the fact that reversals were higher than normal in 2001. Today,
we cannot see any significant deterioration of our credit portfolios.
However, the continued weak economic outlook makes us humble and demands
high attention to the credit area.

In 2002, we managed to increase the result despite a weak economic
climate. It is natural that uncertainty is great at the beginning of the
year. This year is even more difficult then ever. At the time of
writing, we do not know whether there will be war in Iraq or how it
would affect oil prices, currencies, share prices and interest rates. We
also face a referendum in Sweden during 2003 on the EMU. Preparations
are already under way within SEB - in the event that the voting results
in a yes - so that we can handle a transition to the euro in January
2006. In addition, there are referendums on the EU in the Baltic States
and Poland.

Our business climate scenario for 2003 is fairly pessimistic and we are
not counting on any boost from an improved economy. Even though our cost
reduction target set in 2001 has been reached, we will continue to
improve cost efficiency within our operations. We now know that we can
do it, and it is important to capitalise on that experience. Our goal
for cost efficiency is a cost/income ratio of 0.60 long-term and 0.65 in
2004 under condition that the market situation shows some improvement.

SEB's vision is to be a leading North-European bank, based on long-term
customer relations, competence and e-technology. Our business concept is
to create more value for our customers in a changing world. We will
continue to work hard to further improve relations with our customers
and to deliver financial and advisory services of the highest quality.
With our competent staff, effective and united organisation and strong
capital base, it is our conviction that this will also create a good
profitability and, as a result, more value for our shareholders.

Finally, I want to take the opportunity, also here, to thank all
employees as well as customers for their strong commitment to our bank!
Stockholm, 13 February 2003

Lars H. Thunell
President and Group Chief Executive

More detailed information is presented on the Internet (www.seb.net).
The "Additional information" includes:
Appendix 1  SEB Trygg Liv
Appendix 2  Credit exposure
Appendix 3  Risk and capital management
Appendix 4  Capital base for the SEB financial group of undertakings

Operational Profit & Loss Account quarterly performance eight quarters
- The SEB Group
- Bridge between present and previous accounting principles
- The Divisions and business areas
- Revenue split
- One-off items
Statutory Profit & Loss Account etc
   - The SEB Group
   - Skandinaviska Enskilda Banken


Further information is available from:
Gunilla Wikman, Head of Group Communications, [phone]
Per Anders Fasth, Head of Group Investor Relations, [phone]
Annika Halldin, Responsible for Financial Information, [phone]


Financial information during 2003:
13 February 2003  Annual Accounts 2002
9 April 2003      Annual General Meeting
8 May 2003        Interim Report January-March
14 August 2003    Interim Report January-June
22 October 2003   Interim Report January-September