Interim report January-June 2002

Interim report January-June 2002



Change programme is yielding results
·Operating result* for the first six months: SEK 3,986 M (4,245
 corresponding period last year)
·Operating result for the second quarter, isolated: SEK 1,970
 M, compared to SEK 2 016 M in the first quarter.
·Total costs down by 10 per cent on a comparable basis
·Stable quarterly income level
·Credit losses at low levels
·Return on equity for the first six months: 12.3 per cent  (13.4).

* Includes pension compensation of SEK 567 M (529). Statutory
operating profit (excluding pension compensation) amounted to SEK
3,419 M (3,716).

President's statement
Compared with the first quarter, market conditions have
deteriorated in several respects. Stock markets plunged during the
second quarter due to rising uncertainty about economic recovery
and weakened confidence after the accounting scandals in the US.

The foreign exchange markets were also affected by a weaker dollar
and an appreciating Swedish krona. In the fixed income market,
however, interest rates remained at a low level.

Considering that the Stockholm stock market dropped 22 per cent
during the second quarter, the level of income held comparably
well. The main decline in volumes took place in the latter part of
the second quarter; hence the negative impact on income level did
not have full effect during this period. The business areas that
have a high dependency on the stock market, Enskilda Securities,
Private Banking and SEB Asset Management in particular, were
affected by lower commission income.

Our change programme "3 C "(Customer satisfaction, Cross-servicing
and Cost efficiency) is yielding results.
Intensive work in order to provide our customers with such
alternate investments as the corporate bond funds, stock index
bonds and new deposit accounts has been successful. These efforts
in combination with increased activity towards our customers have
helped to moderate the downturn in income.

Our cost efficiency programme is progressing according to plan and
all divisions have actively contributed resulting in total costs
decreasing by 10 percent.

Asset quality remains stable. Credit losses stayed at a low level
in spite of the weak economic environment. Non-performing loans
continued to decrease.

The stock markets have deteriorated further since 30 June and
global economic recovery seems even farther away. We will continue
to focus on our cost efficiency programme, adjusting our cost level
to the current economic climate, and support our customers through
this difficult time.
Second quarter isolated
Result in line with previous quarter
Operating result for the second quarter isolated amounted to SEK
1,970 M (1,456 corresponding period last year). On a comparable
basis this was 29 per cent above the level of 2001 and 7 per cent
better than in first quarter 2002.

Total income, SEK 6,994 M, was on the same level as that of the
previous quarter as well as that of the corresponding quarter last
year.

Total costs, SEK 4,815 M, were virtually unchanged compared to the
first quarter, but 11 per cent lower than the second quarter last
year on a comparable basis. Staff costs and particularly other
operating costs have been reduced.

Net credit losses, SEK 180 M, were in line with the previous
quarter. Second quarter last year showed a higher degree of
recoveries.

Half-year results
Operating result: SEK 4 billion
Operating result, including pension compensation, for the period
January-June 2002 amounted to SEK 3,986 M (4,245). The comparison
with the corresponding period 2001 was affected by one-off items,
restructuring costs and currency translation differences. Adjusted
for these items affecting comparability, the operating result
increased by 10 per cent, in spite of the falling stock markets
resulting in lower net commission income.

Net profit (after tax) for January-June amounted to SEK 2,725 M
(2,813).

Stable income level
Total income during January-June amounted to SEK 14,042 M (14,897).
Adjusted for one-off items and currency translation differences,
income decreased by 4 per cent.

Net interest income amounted to SEK 6,771 M (6,213), an increase of
8 per cent on a comparable basis. The improvement was due to
slightly increased volumes and somewhat decreased costs for
funding. Net interest income has been at the same level over the
past four quarters.

Net commission income decreased by 10 per cent to SEK 5,183 M
(5,768), mainly due to the weak stock market development.

Net result of financial transactions amounted to SEK 1,306 M
(1,527).

Other income was SEK 782 M (1,389). Capital gains, consisting of a
number of minor transactions, totalled SEK 322 M (776). Adjusted
for these and other items affecting comparability, other income was
down 25 per cent. There were no one-off income items in the first
half of 2002.

Continuously reduced costs
Total costs during January-June decreased by 8 per cent to SEK
9,626 M (10,480). On a comparable basis, total costs decreased by
10 per cent.

Staff costs, gross, decreased by 3 per cent to SEK 5,764 M (5,963).
Lower performance-related compensation accounted for two thirds of
the decrease. The reduction implies that the efficiency improvement
measures have more than offset the general salary increase. Staff
costs, gross, do not comprise compensation for pension costs of SEK
567 M (529). Staff costs, net, were SEK 5,197 M (5,434).

The average number of full time equivalents was 19,358 (19,852)
during the first half of 2002. The average in June was 19,151
(19,988).

Total IT-costs (here defined as a calculated cost for all IT-
related activities including costs for own personnel) were reduced
to SEK 1.9 billion (2.4). Of these calculated costs SEK 872 M
(1,073) represented external costs.

In addition to the restructuring costs incurred during 2001,
another SEK 200 M was charged during the first half of 2002.

Credit losses at low level
The Group's net credit losses, including changes in the value of
assets taken over, amounted to SEK 369 M (200), of which SEK 196 M
(212), in SEB Germany. The credit loss level was about the same as
in the first quarter, 0.11 per cent. Last year the credit loss
level was 0.06. Credit losses, gross, i.e. before recoveries,
decreased to SEK 750 M (857).

Insurance operations
The result of total insurance operations (non-life, life and
goodwill amortisation) is accounted on one line and shows a loss of
SEK 44 M (gain: 52).

SEB Trygg Liv's result from ongoing business (excluding financial
effects of short-term market fluctuations) was SEK 666 M (522).
This result is not consolidated with the SEB Group. The division's
operating result, a gain of SEK 31 M (loss: 76), is included in the
Group's result.

The capital base of Nya Livförsäkringsaktiebolaget SEB Trygg Liv
has been expanded by SEK 330 M, of which SEK 100 M in increased
share capital and SEK 230 M in the form of subordinated debt. The
purpose of this increase is to continue to develop the occupational
pension business, in which traditional insurance forms an important
part of the product offerings. The company has grown strongly as a
result of the increased demand for traditional life insurance due
to the prevailing market situation. The strengthened capital base
will support future growth of the company.

The operating result for non-life insurance, mainly run-off,
amounted to SEK 1 M (243). Capital gains of SEK 126 M from bond
portfolio sales were included in the first quarter 2001.

Excess value in pension funds
As of 30 June 2002, total assets in SEB's pension funds amounted to
SEK 15.4 billion, while commitments were SEK 9.9 billion.
Accordingly the excess value amounted to SEK 5.5 billion.
Approximately 60 per cent of the pension funds are invested in
equities and 40 per cent in interest-related securities and other
investments.

Assets under management
On 30 June, the SEB Group's assets under management totalled SEK
786 billion (892). Assets of SEK 513 billion (579) were managed by
SEB Asset Management, SEK 108 billion (107) by SEB Germany and
SEK 216 M (263) by Private Banking.

Credit portfolio
The overall development of the total credit portfolio has been
stable during the first half of the year. Total credit exposure,
including contingent liabilities and derivative contracts, amounted
to SEK 969 billion (955 at year-end), of which loans and leasing,
excluding repos, accounted for SEK 704 billion (718).

The public administration sector accounts for the largest increase
in credit exposure, primarily in Germany. Exposure on the corporate
sector declined somewhat during first half of the year.

Exposure on the telecom industry (operators and manufacturing
companies) amounted to approximately SEK 13 billion (15),
corresponding to 1.4 per cent (1.5) of the total credit portfolio.
Within the IT-sector, the exposure totalled approximately SEK 3
billion (4).

The geographical distribution of the credit portfolio remained
unchanged during the first half of the year.
Sweden and the other Nordic countries accounted for almost 45 per
cent, followed by Germany with 35 per cent. The three Baltic
subsidiary banks' credit volumes continued to grow and totalled SEK
33 billion (30). Exposure on emerging markets continued to decline
during first half of the year and amounted to SEK 9.0 billion (9.7)
net after deduction for provision for possible credit losses.

As per 30 June, doubtful claims, gross, amounted to SEK 14,808 M
(15,822 at year-end 2001), of which SEK 7,585 M (8,161) in non-
performing loans (loans where interest and amortisation are not
paid) and SEK 7,223 M (7,661) in performing loans. The level of non-
performing loans in relation to lending was 0.55 per cent (0.58)
and the total level of doubtful claims, net, in relation to
lending, was 1.32 per cent (1.37). The volume of pledges taken over
amounted to SEK 240 M (265).

Capital base and capital adequacy
The capital base for the financial group of undertakings (i.e.
excluding the insurance companies) amounted to SEK 55.2 billion as
of 30 June 2002, (54.4 by the end of 2001). Core capital was SEK
39.3 billion (38.7), of which SEK 1.8 billion constituted so-called
core capital contribution. Risk-weighted assets amounted to SEK 479
billion (501). The decline was due to the strengthening of the
Swedish krona and to effects from the capital rationalisation
programme within Merchant Banking.

As of 30 June 2002, the core capital ratio was 8.2 per cent (7.7)
and the total capital ratio was 11.5 per cent (10.8). The Group's
long-term goals to maintain a core capital ratio of at least 7 per
cent and a total capital ratio of not less than 10.5 per cent have
thus been met.

In accordance with the decision made by the Board of Directors on
May 6, SEB has acquired 7 million of its own shares for hedging of
the employee stock options programme as decided by the Annual
General Meeting on April 10, 2002. Accordingly, as required by
regulations, the value of the acquired shares has been eliminated
against shareholders' equity.

In August, the rating institute Moody's changed its outlook on
SEB's rating from Stable to Positive.

Stockholm, 22 August 2002

Lars H. Thunell
President and Group Chief Executive

More detailed information is presented on the Internet
(www.seb.net):
Appendi SEB Trygg Liv
x 1
Appendi SEB AG in the SEB Group
x 2
Appendi Credit exposure by industry
x 3     sector and geographical area
Appendi Capital base for the SEB
x 4     Financial Group of Undertakings
Appendi Risk and capital management
x 5

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

Additional 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]
60


This Interim Report has been reviewed by the Auditors of the Bank.


Financial information during 2002-2003
6 November 2002     Interim Report January-September
13 February 2003    Annual Accounts 2002
8 May 2003          Interim Report January-March
21 August 2003      Interim Report January-June
6 November 2003     Interim Report January-September

Changes in accounting principles as of January 2002
Please note that SEB is following the Swedish Financial Supervisory
Authority's recommendations regarding reporting of insurance
operations for the statutory accounts and also for the operational
accounts. This implies that the result from insurance operations is
reported according to the same principles as associated companies -
one-line accounting. This change has no impact on the Group's or
the divisions' operating results.

In order to provide a complete overview of the Group's operations,
SEB Trygg Liv is reported separately - including changes in surplus
values.


Nordic Retail & Private Banking
Retail Banking, Private Banking and SEB Kort (cards) are the main
business areas of the division, which has 1.5 million private
customers and 120,000 small and medium-sized corporate customers -
of which 680,000 are e-banking customers. The division also serves
approximately 600,000 card customers in the Nordic area. In Sweden,
SEB has 200 branch offices and 20 private banking centres as well
as a full range Internet service and a 24h-telephone bank.



Increased competition
The first six months of 2002 were above all characterised by
declining stock markets. In Sweden, competition continued to
increase on both the retail and the private banking markets with
intensified activity from existing as well as new competitors.
Internally, the division's focus remained on customer satisfaction
and cost efficiency.

SEB's new savings account, "Specialkonto", with one of the most
attractive interest rates in the Swedish market, was received
positively by customers.

The process of increasing the responsibilities and mandates of the
local branch offices in order to strengthen the decision power
closer to the customers continued.

Since May 2002, all SEB-customers can use their banking cards free
of charge in the Group's ATMs in Estonia, Latvia and Lithuania, as
already earlier in Germany. Since July, all ATM-withdrawals within
the EMU-area are free of charge.

Increased result in spite of tough market
The division's result for the period increased by 17 per cent,
mainly due to significant cost reductions, which have more than
offset the fall in income. This has resulted in a significant
improvement of the cost/income ratio and a considerable increase in
return on capital.

Due to the declining stock markets, net commission income decreased
by 14 per cent, which reduced the underlying values of assets under
management as well as customers' activity levels.

Net interest income remained stable.

The mortgage business developed steadily and SEB has increased its
market share on the private market by 2 percentage units over the
last three years (from 11.5 per cent to 13.6), in spite of new
niche competitors in the market.

Cost reduction accelerated during the second quarter and the
division's cost-cutting process runs according to plan. The target
is to decrease the cost level by SEK 1 billion and the number of
employees by 490 between mid-2001 and March 2003.

The programme covers two areas: One-off items, like the closing of
the planned e-bank in the UK and restructuring of the operations in
Norway and Denmark, represent almost 50 per cent of the reduction.
The remaining part consists of a large number of activities within
the ongoing business, e.g. increased co-operation within the
division and with other parts of the Group, centralisation and co-
ordination of staff and support functions and increased operational
efficiency.

Credit losses decreased to SEK 57 M (82).

·       Retail Banking - costs down by 19 per cent
The Retail area reported a result of SEK 773 M (575), an increase
of 34 per cent. The cost efficiency programme together with lower
transaction volumes reduced Retail Banking's costs by 19 per cent,
to SEK 1,545 M (1,901).

Even though net commission income was down by 21 per cent due to
the stock market development, the level of sales and customer
activities is rising. Total income was SEK 2,317 M (2,511).

In May, SEB's Swedish Internet service was ranked number one by
CyberCom, and later also by the magazine "Sparöversikt". The bank
has decided to co-operate with the mobile telephone network
operator Hi3G.

·       Private Banking - positive net new money in spite of weak
  market
Total result for the period was SEK 283 M (313), a decrease of 10
per cent, mainly due to continued pressure on commission income,
SEK 596 M (712). The business area's total income was SEK 929 M
(1,002). Total costs were SEK 603 M (665), a decrease of 9 per
cent.

The continued fall of the stock market affects both SEB's retail
customers and the private banking area. Assets under management
amounted to SEK 216 billion (263) at the end of June, a decrease of
16 per cent since January. However, intensified business activities
led to an increase in new assets, especially in Sweden.

In April, SEB Private Bank SA opened a new branch in Zurich. In
addition to Sweden, SEB also runs private banking operations in
Norway, Denmark, Luxembourg, London and Geneva.

·       SEB Kort - improving a strong result
SEB's card business unit, SEB Kort, showed a result of SEK 237 M
(216). Total income was SEK 682 M (715), while total costs amounted
to SEK 393 M (455).

The international travel market has not fully recovered since the
end of last year, which had a negative impact upon the important
segment of travel and entertainment cards.

The credit losses, SEK 52 M (44), were mainly due to forgeries and
frauds, but this loss level is significantly lower than that
reported by the international card business in general.

During spring 2002, SEB Kort was declared "preferred partner" in
central acquiring by the international airline organisation, IATA.
For example KLM is a new user of SEB Kort's central acquiring
programme.

In  Norway, the new product Purchase Account was introduced  during
the  spring.  A  number of large companies have a demand  for  this
product, which will also be introduced within the rest of  the  SEB
Group.

SEB Card Denmark and Norway were both top ranked for customer
satisfaction within the financial service-sector at the annual Tele-
performance Grand Prix.
Corporate & Institutions
The division is responsible for 3,500 medium- sized companies, 800
large corporations and 1,100 financial institutions. It comprises
Merchant Banking (including the merchant banking part of SEB AG,
Securities Services and parts of Mid Corporate) and Enskilda
Securities (SEB's institutional equity and corporate finance unit)
and operates in eleven countries.



Weak financial markets
The first six months of 2002 were characterised by a dramatic
change in market sentiment. Despite encouraging economic data
uncertainty about the global economic recovery increased during
late spring and early summer.

The view of the US dollar has undergone a marked change since
March. The currency has depreciated by 12 per cent against the Euro
and by 8 per cent against a trade-weighted index. The Swedish krona
appreciated by 14 per cent against the dollar, encouraged by
speculations about an upcoming EMU-decision. Uncertainty about
corporate earnings has increased significantly, not only due to
questions about the economic outlook but also due to accounting
irregularities. This has also put the dollar under pressure.

These factors of uncertainty have together created a negative
sentiment in the stock market and stock prices have come under
substantial pressure, severely affecting the Swedish stock market
and the division's equity-related business.

Lower result but strong return
The lower result was mainly due to the weak stock market trend,
which had a negative effect on Enskilda Securities' income. Another
reason was a net recovery of SEK 126 M that Merchant Banking
reported last year compared to a net credit loss of SEK 40 M this
year. Return on allocated capital was 20.9 per cent (21.7 full year
2001).

·       Merchant Banking
The result of Merchant Banking amounted to SEK 2,033 M (2,158).
Compared with 2001, the result before credit losses was slightly
higher at SEK 2,073 M (2,032).

Despite adverse market conditions income was good and up by 5 per
cent during the second quarter compared with the first quarter of
2002. For the first six months income was 1 per cent higher than in
the corresponding period last year. Costs were down, both compared
with the first quarter 2002 and with the corresponding period last
year, excluding restructuring costs.

Trading & Capital Market's income continued to grow, for the sixth
consecutive year. The corporate banking business continued to
mature in terms of volumes and margins, with negative effects on
income. The weak stock market still has a negative impact on
Securities Services' result. The number of structured finance
transactions remained low. The change of business mix continues
according to plan, with growing business from financial
institutions and stable underlying volumes from corporate
customers.

Merchant Banking continued its active work in order to reduce costs
in the long term within the mature areas. As a result of increased
cost efficiency, investments in selected growth areas will be
possible. In spite of these investments the underlying cost level
(costs excluding performance-related remuneration, restructuring
costs and exchange rate effects) was 3 per cent lower than in 2001.

Asset quality remained high and credit losses were SEK 40 M.

During the first half of 2002, Merchant Banking received awards
within several areas. The business area was ranked number nine in
global foreign exchange trading in terms of market share by
Euromoney in July 2002. It also regained its top position within
Fixed Income in the Swedish Prospera Client Survey 2002, with
number one positions within client relationship and research. SEB
Företagsinvest was ranked as the fourth venture capital firm in the
annual Swedish Entrepreneurs' Survey.

Merchant Banking's Internet application for financial trading and
information, Trading Station, has been further developed and
customers are now offered straight-through processing
possibilities, ensuring that the deal automatically goes into the
client's financial system. Merchant Banking's German operation
launched the Trading Station in Germany during the second quarter
of 2002.

·       Enskilda Securities
The low activity on the Nordic equity markets continued during the
second quarter 2002. Compared with last year, total equity turnover
on the Nordic stock exchanges dropped by 25 per cent. On the same
markets, merger & acquisition volumes in monetary terms fell by 27
per cent and Initial Public Offerings (IPO) by 74 per cent during
the period.

Despite this negative trend, Enskilda Securities managed to retain
a strong position on the Nordic Exchanges. In the difficult and
weak corporate finance markets, Enskilda Securities remained a
strong competitor during the first half of 2002. Enskilda
Securities' role as financial advisor in the Ericsson rights issue,
as joint lead manager of the IPO of Intrum Justitia and as joint
global co-ordinator of the IPO of Alfa-Laval are examples of the
largest transactions so far in 2002.

Enskilda Securities' result was SEK 142 M (305).

Total revenues fell by 28 per cent during the period. All product
areas posted lower revenues. In particular, trading revenues
declined due to the unfavourable stock markets. Secondary
commission income, which is the single most important revenue
source, dropped by 10 per cent compared with the corresponding
period last year.

Total pre-bonus costs decreased by 9 per cent and post-bonus by 20
per cent. The ambition is to reduce pre-bonus costs by 15 per cent
during 2002 compared with 2001. The number of personnel decreased
by 9 per cent compared with the corresponding period last year.
SEB Germany
The  division serves one million private customers as well as small
and   medium-sized  corporations,  institutions  and  real   estate
companies  throughout Germany. Customers are  able  to  access  its
services  via  177  branches,  30 advisory  centres,  Internet  and
telephone banking.
The division does not comprise those parts (large corporate
customers, trading operations and former "Skandinaviska Enskilda
Banken AG) which are included within the Corporate & Institutions
division. Information regarding the legal unit SEB AG Group
accounted in euro can be found on www.seb.net.
.

Weak financial markets
Today's market situation in Germany is characterised by a weak
economy, the highest number of insolvencies among small and medium-
sized companies for years, a weak local stock market driven by the
development in the U.S. and low market interest rates. Customer
behaviour is in general conservative. The most successful product
offerings at present are those limiting risk and promising long-
term growth, such as real estate funds.

New sales and underlying earning capacity improved
Although the market interest rate is still below our expectations,
net interest income was almost in line with 2001. New sales of
mortgage loans, SEK 3,544 M, improved by 36 per cent compared to
the first half of last year. Prolongation of mortgage loans, SEK
2,336 M, improved by 43 per cent.

In June, SEB Germany entered a deal with Volkswagen Bank Direkt to
provide the carmaker's customers with  full access to on-line
securities transactions including SEB's mutual funds. Volkswagen
Bank Direkt is a telephone- and Internet bank with half a million
customers and EUR 5 billion in deposits.
Net commission income developed comparably well during the first
half of 2002, showing a 6 per cent improvement compared with 2001
as a result of a strong sales focus.
SEB Invest Money Market ranks number one among money market funds
in Germany. For the seventh time, the SEB ImmoInvest mutual real
estate fund was ranked number one. Net sales of funds, SEK 6
billion, more than doubled compared to the first half of 2001.
However, a difficult third quarter regarding commission income is
expected, particularly since the stock market is under heavy
pressure again since the end of June.
Net result of financial transactions was down by 38 per cent
compared with 2001 due to the development of interest-bearing
securities and lower price gains. Compared with the first quarter
the trend was a little more positive during the second quarter of
this year.
Assets under management amounted to SEK 108 billion, a decrease of
4 per cent compared to the previous quarter but slightly higher
than during the corresponding period in 2001.
The number of e-banking customers remained stable at 241,000, while
the activity level continued to increase.
The underlying earning capacity improved compared with last year
when one-off effects are taken into consideration.

Cost efficiency continuously improved
The cost efficiency programme led to a lower cost level of SEK
2,297 M (2,412) during the first half of 2002. Compared with the
first half of 2001, staff costs decreased by 3 per cent while other
costs were down by 6 per cent.

During the first half of 2002 major cost reductions were achieved
by moving the headquarters to new premises at considerably lower
rents and through cost cuts within staff units. Future cost
reduction activities include IT synergies within the SEB Group, now
under implementation.

Net credit losses were 8 per cent lower compared with the
corresponding period last year.

Benchmark for customer satisfaction
The continuous improvement of the customer satisfaction in SEB
Germany is part of the change programme. The Retail Banking and
Institutional Clients business areas were best practice within
their respective client segments during 2001. It is our ambition to
defend this position also in 2002 through further improvement
measures.
SEB Asset Management
SEB Asset Management offers a full spectrum of investment products
for institutions, life insurance companies and retail clients -
from low-risk portfolios to private equity and hedge funds. In
addition to Stockholm, where the majority of staff is employed, SEB
Asset Management has offices in Copenhagen, Helsinki, New York and
Stamford. Within the division more than 100 persons are engaged in
portfolio management.



Significant cost reductions
During the first half of 2002 the Swedish stock market fell by 22
per cent (SIX Portfolio Index) and the global markets by 21 per
cent. The division's total assets under management were SEK 513
billion (579), 9 per cent less than at year-end 2001. Due to the
downturn of the market, the equity part of total assets under
management decreased to 41 per cent (52).

Despite the bear market, leading to reduced assets under management
and consequently declining revenues, SEB Asset Management improved
its cost/income ratio and the result per employee increased from
SEK 1.3 million to SEK 1.4 million on a yearly basis.

SEB Asset Management showed an operating result of SEK 299 M (337),
a decrease of 11 per cent.
Income declined by 16 per cent, mainly explained by a decrease in
value in the equity portfolios. The main decline in volumes took
place in the latter part of the second quarter; hence the negative
impact on income level did not have full effect during this period.
Costs were reduced by 19 per cent primarily due to staff
reductions.

Positive net inflow in spite of tough market conditions
Weak stock markets had a negative impact on sales, which is a trend
that can be seen in the entire industry. Total accumulated net
sales were considerably lower than in previous years. However, the
business in Denmark, Finland and the U.S. has successfully gained a
number of new mandates while institutional sales in Sweden were
generally weak.

During the first half year 2002, the net inflow to SEB's mutual
funds in Sweden totalled SEK 5.8 billion (4.0). The successful
launch of the new product line corporate bond funds, the first of
its kind on the Swedish market, has attracted a considerable amount
of capital. In addition, net sales of mutual funds in Denmark and
Finland amounted to SEK 3.8 billion. SEB's market share of mutual
funds in Sweden was 17.7 per cent (18.5).

Mutual funds totalled SEK 159 billion (189), representing 31 per
cent of total assets under management.

Improved performance
All life portfolios reported improved performance relative to
benchmark during the second quarter and, in general, SEB's mutual
funds performed above average in comparison with the Bank's peers
in the Nordic market. Nevertheless, the ambition is to further
improve performance as regards mutual funds.

SEB Asset Management in Denmark has received its first Morningstar-
rating of four funds, of which one received five stars and the
others four stars each. This has placed the entity at the top, with
the highest average Morningstar-rating of equity funds in Denmark.

Present and planned activities
Total costs were substantially lower than last year, in line with
the "3 C" Change Programme, primarily as a result of structural
changes and staff reductions. To further decrease costs, Asset
Management is streamlining and simplifying the supply of mutual
funds in Sweden. Approximately 30 funds will be merged or closed
during the second half of this year.

Since June 2001, the staff has been reduced by approximately 120
full-time equivalents, or 23 per cent, which is above the target
set in the Change Programme.

SEB Asset Management has decided to outsource the administrative
and technical property management of its real estate operations in
Stockholm. An agreement to this effect has been signed with NewSec,
and became effective on August 1, 2002. These changes will involve
around 80 employees, of whom 60 will be transferred to NewSec.
Outsourcing of property management is not included in the above
mentioned staff reduction figures.

A new order management system has been implemented at the trading
desk in Stockholm for electronic trading via FIX (Financial
Information Exchange protocol). This will enable us to further
streamline processes, and to achieve increased efficiency and
reduced costs.
SEB Baltic & Poland
The division comprises the three wholly-owned Baltic banks Eesti
Ühispank (Estonia), Latvijas Unibanka (Latvia) and Vilniaus Bankas
(Lithuania). The three banks serve 1.2 million individual customers
and 120,000 corporations via a branch network that comprises some
200 branch offices, and via Internet banks. The listed Polish bank
Bank Ochrony Srodowiska, BOS, of which SEB owns 47 per cent, also
forms part of the division.



Continued economic growth
Economic growth is expected to continue in the Baltic region. A
weakening export sector is offset by continued strong domestic
demand. In total, an increase of GDP of slightly above 4 per cent
is forecast for all three countries for 2002.

The strong economy is reflected in SEB's subsidiary banks. The
number of customers has increased by 12 per cent compared to June
2001. During the same period, the number of Internet customers
increased by 83 per cent to 291,000. During the first half of this
year the loan portfolio increased by 4 per cent (11 per cent after
adjustments for currency fluctuations), of which Unibanka in Latvia
experienced the strongest increase. Demand for mortgage loans and
strong domestic demand in general are the main reasons behind this
expansion. Deposits increased by 5 per cent (8 per cent after
adjustments for currency fluctuations). The market for savings
products is relatively immature but rising demand can be foreseen.
Both Estonia and Latvia are launching pension reforms, which are
expected to lead to an increase in mutual funds savings.

Poland's GDP growth is expected to be about 2 per cent this year.
The reason for this comparably low growth rate is found in poor
domestic demand. Weak exports contribute to the lower growth rate,
with Germany being the biggest export market.

Result increases further
After adjustments for extraordinary revenues last year the increase
in operating result amounted to 65 per cent. After these
adjustments, the increase in income was 14 per cent, mainly due to
higher lending and deposit volumes. Costs increased by 7 per cent
to SEK 704 M, primarily as a result of expansion in volumes and
products.

Contribution from BOS Bank is included in the division's result by
SEK 7 M.

Increased co-operation
Intensive efforts have been made to improve cross-servicing and
customer satisfaction. The three Baltic banks can for example now
offer one-point-of-entry solutions to the Pan-Baltic customers.
Credit as well as treasury functions continue to become more
integrated with the parent company and its standards. In Latvijas
Unibanka cash collection and security services have been outsourced
for increased efficiency. Similar activities are under way in
Vilniaus Bankas.

As regards BOS, a new President has been appointed together with
other management changes. BOS has an explicit strategy to increase
its focus on small- and medium sized companies as well as private
individuals in order to gain market shares within these segments.
SEB Trygg Liv
SEB Trygg Liv is one of the Nordic region's leading life insurance
companies. Operations comprise insurance products within the
investment and social security area for individuals and
corporations. SEB Trygg Liv provides both unit-linked and
traditional insurance and has slightly more than 1 million
customers, mainly in Sweden.

Traditional life insurance operations are conducted in the mutual
insurance companies Nya and Gamla Livsförsäkringsaktiebolaget SEB
Trygg Liv, which are not consolidated with the SEB Trygg Liv
Group's results.


* In the SEB Group reporting, SEB Trygg Liv is accounted for
according to the same principles as associated companies  - one
line accounting. Thus only the Operating result is consolidated
with the SEB Group's accounts. More detailed information on SEB
Trygg Liv can be found on www.seb.net.

Improved result
The result from ongoing business, i.e. including change in surplus
values, improved to SEK 666 M (522), based on continued shifting from
single-premium to regular premium policies combined with lower costs.

Revenues (remuneration for management agreements, insurance fees and
net interest) were at the same level as a year earlier. Lower asset
values for unit-linked insurance and an increased proportion of
interest-bearing investments with lower fees were offset by a better
result for traditional insurance and increased net interest.

Continued savings measures and lower distribution fees resulted in a
lower cost level of SEK 703 M (809), a reduction of 13 per cent.
Costs during the second quarter 2002 were 11 per cent lower than
during the first quarter 2002. The average number of full-time
equivalents was reduced by 63, which reduced staff costs by 9 per
cent.

As a result of the retained level of revenues and reduced costs,
operating result, i.e. result before change in surplus value, rose by
SEK 107 M to SEK 31 M. Short term market fluctuations, i.e. the
declining stock markets, naturally had a negative impact on total
result net.

Sales affected by stock market decline
The decline in the world's stock markets continued to affect sales of
savings products, including insurance savings. SEB Trygg Liv's sales
measured as weighted volume amounted to SEK 13,647 M (15,811), a
decline of 14 per cent. Non-insurance-related sales related to
pension products (IPS and premium pensions) totalled SEK 1,101 M
(1,038), weighted volume.

The trend is the same as in 2001. Single-premium endowment
insurance continues to decline while regular occupational pension
increases, but at a slower rate than previously. This means a
continued increase in company-paid insurance, from 65 to 74 per
cent. A large portion of corporate pensions is sold via insurance
brokers. Accordingly, it is encouraging that in April SEB Trygg Liv
was named "Life Insurance Broker of the Year" by the Swedish
Association of Insurance Brokers.

The share of unit-linked insurance was predominant, with 75 per cent
(77). Consequently, the trend towards an increasing proportion of
traditional insurance noted during the stock market fall continued,
although the pace has slowed down.

To  a  limited extent, customers made additional premium payments  on
their  insurance, probably due to the market situation,  and  premium
income declined by 15 per cent to SEK 7,296 M (8,560).

Assets  under management amounted to SEK 208 billion (236), a decline
of 12 per cent, or 8 per cent measured from year-end 2001.

In June, SEB Trygg Liv signed a three-year agreement with
Stadsmissionen (Stockholm City Mission) to support Bostället in
Stockholm, a kind of halfway house for the homeless. Through becoming
a project partner in Bostället, SEB Trygg Liv is making a
contribution to society and supporting efforts to help a group of
people in need.

SEB share
SEK



SEB's rating has remained unchanged during 2002. In August, the
rating institute
Moody's changed its outlook for SEB's rating from Stable to
Positive.


SEB's  major shareholders
By the end of June 2002
Percent of capital
Investor       19,8
Trygg          
Foundation     9,3
Alecta         
(former SPP)   2,9
               
SEB Funds      
               2,8
Skandia        
               2,2
AFA            
               1,9
Foreign        23,3
shareholders