Interim report January-September 2002

Interim report January-September 2002

Cost reduction offsets income decrease
·Operating result* for the first nine months: SEK 5,537 M
 (5,706 corresponding period last year)
·Operating result for the third quarter, isolated: SEK 1,551 M
 (1,461)
·Total costs down by 9 per cent
·Lower income level due to deteriorating market conditions
·Credit losses at low levels
·Return on equity: 11.6 per cent (12.2)
·Earnings per share for the first nine months: SEK 5.46 (5.44)
·SEB's position in the Nordic area strengthened.

* Includes pension compensation of SEK 759 M (766). Statutory
operating profit (excluding pension compensation) amounted to
SEK 4,778 M (4,940).

President's statement
Market conditions deteriorated further in the third quarter. Stock
markets plunged by 20 to 30 per cent, bond rates kept decreasing
and the Swedish krona weakened.

The economic outlook worsened in most countries. In Sweden, the
economy still held up quite well by strong private consumption. The
German economy is weak and no signs of improvement can be seen. The
Baltic countries, however, continue to show strong growth.

Our internal 3 C change programme proceeds at full speed within all
areas of the bank.
·     Cost efficiency measures are proceeding according to plan.
·    Our efforts to increase Customer Satisfaction have started to
   yield results, and it is gratifying to see how   the Swedish retail
   network has improved its customer satisfaction ratios. The
   launching of new products and services has proved successful.
·     The area of Cross-servicing is becoming more and more
   important to us in order to increase customer  satisfaction and
   revenues as well as to save costs.

Our credit losses remained low, and doubtful claims have been
stable during the year. A further deterioration of the economy
would of course also have an impact on SEB's credit portfolio in
the future, thus demanding continued close attention.

Generally, it is satisfying to note that our net profit remains
unchanged despite the difficult market conditions. However, there
are no signs of a recovery in the world economy. On the contrary
there are increased risks for a prolonged or deepened downturn.
Given that negative outlook, the internal efforts in SEB are
directed towards further cost savings and tight risk control.

However, there are also opportunities for us. With our strong
capital base and a focused, operational management in control of
costs and risks we will be able to gain market shares in the long
term by supporting our customers.
Third quarter isolated
Improved result compared to last year
The operating result for the third quarter isolated amounted to SEK
1,551 M, an increase of 6 per cent compared to July-September 2001.
This was an effect of cost reductions that more than compensated
for the decrease in income. The result was, however, lower than the
previous quarters of 2002.

The deteriorating market conditions had a negative effect on total
income of SEK 6,407 M, which was a decrease both in comparison with
the previous quarter and with the corresponding quarter last year.

Total costs, SEK 4,632 M, were 6 per cent lower than in the third
quarter last year and about 2 per cent lower than in the first and
second quarters of 2002, on a comparable basis. Staff costs and
particularly other operating costs have been reduced.

Net credit losses, SEK 181 M, were in line with the previous
quarters.

January-September
Operating result: SEK 5.5 billion
Operating result, including pension compensation, for the period
January-September 2002 amounted to SEK 5,537 M (5,706). The
comparison with the corresponding period 2001 was affected by
capital gains and other one-off items, restructuring costs and
currency translation differences. Adjusted for these items
affecting comparability, the operating result increased by 6 per
cent, mainly due to reduced costs.

Net profit (after tax) for January-September was unchanged, at SEK
3,827 M (3,830).

Lower income level
Total income during January-September amounted to SEK 20,449 M
(21,781). On a comparable basis income decreased by 4 per cent,
mainly due to the negative impact of the falling markets on net
commission income and net financial transactions.

Net interest income amounted to SEK 10,176 M (9,513), an increase
of 7 per cent on a comparable basis. The improvement was due to
slightly increased volumes and somewhat decreased costs for
funding.

Net commission income decreased by 9 per cent to SEK 7,516 M
(8,285), mainly due to the gloomy stock market development.

Net result of financial transactions amounted to SEK 1,755 M
(2,296). The third quarter showed a decrease in trading related
income compared to the previous quarters, especially in the foreign
exchange area, mainly due to lower customer activity level.

Other income was SEK 1,002 M (1,687). Capital gains, this year
consisting of a number of minor transactions, totalled SEK 378 M
(929). Last year included capital gains of SEK 512 M from sale of
shares in OM and SEK 248 M from sale of shares in Deutsche Börse.
Adjusted for these and other items affecting comparability, other
income was down 18 per cent.

Continuously reduced costs
Total costs during January-September decreased by SEK 1,443 M or by
9 per cent to SEK 14,258 M (15,701).

Staff costs, gross, decreased by 3 per cent to SEK 8,564 M (8,833).
Lower performance-related compensation accounted for approximately
SEK 100 M of the decrease. The staff cost reduction implies that
the efficiency improvement measures have offset the general salary
increase. Staff costs, gross, do not comprise compensation for
pension costs of SEK 759 M (766). Staff costs, net, were reduced by
3 per cent to SEK 7,805 M (8,067).

The average number of full time equivalents was 19,193 (19,734)
during the first nine months of 2002. The number of full time
equivalents in September was 18,473 (a reduction by 1,515 since
June 2001).

Other operating costs decreased by 16 per cent to SEK 5,145 M
(6,106). External costs for IT amounted to SEK 1,311 M (1,568).
Total IT-costs (defined as a calculated cost for all IT-related
activities including costs for own personnel) were reduced to SEK
2.6 billion (3.4).

In addition to the merger and restructuring costs that incurred
during 2001, another SEK 200 M was charged during the first half of
2002. In the third quarter no such costs incurred.




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Credit losses at low level
The Group's net credit losses, including changes in the value of
assets taken over, amounted to SEK 550 M (341), of which SEK 352 M
(348), was related to SEB Germany. The credit loss level for the
Group amounted to 0.11 per cent.

Insurance operations
In accordance with one-line accounting, the result of the SEB
Group's total insurance operations - non-life and life including
goodwill amortisation of SEK 110 M (110) - amounted to SEK -66 M (-
2).

SEB Trygg Liv's operating result, a gain of SEK 39 M (loss: 100),
is included in the Group's result. The division's result from on-
going business including surplus values (but excluding financial
effects of short-term market fluctuations) was SEK 1,146 M (921).
Including financial effects of short-term market fluctuations total
result net was SEK -992 M (-467). Results including surplus values
are not consolidated with the SEB Group's result.

As communicated in the interim report for January-June 2002, the
capital base of Nya Livförsäkringsaktiebolaget SEB Trygg Liv was
expanded by SEK 330 M in the second quarter. During the third
quarter there was no need for any capital increase. It is
anticipated that additional capital injections of approximately
SEK
200 M will be needed before year-end to support the operation and
its further growth.

The operating result for non-life insurance, mainly run-off, was
SEK 12 M (279). Capital gains of SEK 126 M from bond portfolio
sales were included in the first quarter of 2001.

Excess value in pension funds
As of 30 September 2002, total assets in SEB's pension funds
amounted to SEK 12.8 billion, while commitments were SEK 10.2
billion. Accordingly the excess value amounted to SEK 2.6 billion.

Assets under management
On 30 September 2002, the SEB Group's assets under management
totalled SEK 723 billion (871 by year-end 2001). Net inflow during
the period was SEK 16 billion and the change in value SEK -164
billion. Assets of SEK 476 billion (567) were managed by SEB Asset
Management, SEK 106 billion (111) by SEB Germany and SEK 184 M
(258) by Private Banking, including mutual funds originating from
SEB Asset Management.

Credit portfolio - continued stable development
Total credit exposure, including contingent liabilities and
derivatives contracts, amounted to SEK 983 billion (955 at year-
end), of which loans and leasing, excluding repos, accounted for
SEK 721 billion (718).

The composition and volume development of the credit portfolio
remained stable. The German public administration sector represents
the largest volume change, where credit exposure has increased by
approximately SEK 20 billion during 2002. Credit volumes within the
corporate sector have declined, particularly during the third
quarter, reflecting the lower activity level in the economy. The
Swedish household mortgage lending continued to grow.

Exposure on the telecom industry (operators and manufacturing
companies) was approximately SEK 13 billion (15), corresponding to
1.3 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. 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 35 billion (30). Exposure on emerging markets amounted
to SEK 9.0 billion (9.7) net after deduction for provision for
possible credit losses.

As per 30 September, doubtful claims, gross, amounted to SEK 14,731
M (15,822 at year-end 2001), of which SEK 7,251 M (8,161) in non-
performing loans (loans where interest and amortisation are not
paid) and SEK 7,480 M (7,661) in performing loans. The level of non-
performing loans in relation to lending was 0.57 per cent (0.58)
and the total level of doubtful claims, net, in relation to
lending, was 1.30 per cent (1.37). The volume of assets taken over
amounted to SEK 238 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 53.5 billion as
of 30 September 2002 (54.4 by the end of 2001). Core capital was
SEK 39.1 billion (38.7), of which SEK 1.8 billion constituted so-
called core capital contribution. Risk-weighted assets amounted to
SEK 493 billion (501). The decline in risk-weighted assets was
mainly due to effects from the capital rationalisation programme
within Merchant Banking.

As of 30 September 2002, the core capital ratio was 7.9 per cent
(7.7) and the total capital ratio was 10.9 per cent (10.8) - not
including profit for the third quarter of 2002. 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.

During the third quarter SEB entered into two new agreements that
could have a potential effect upon the capital base. The increase
in risk-weighted assets through the investment in Amagerbanken will
however be offset through its contribution to the core and total
capital. Goodwill from the investment in Europay Norge AS will
decrease the capital slightly. The net effect of the two
acquisitions upon the core capital and total capital ratios will be
a decrease of approximately 0.3 percentage points.

In accordance with the decision made by the Board of Directors on 6
May 2002, 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 10 April 2002. In compliance with 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.

SEB's position in Norway and Denmark strengthened
At the end of September, SEB Kort made an offer to acquire the
Eurocard brand in Norway through a purchase of Europay Norge AS at
a price of NOK 1 billion. SEB expects to take full operational
responsibility of the company in late 2002 or early 2003 upon
approval by regulators, and to fully integrate Europay Norge's
operations with SEB Kort Norway. The transaction is expected to
have a neutral or positive impact on SEB's earnings per share after
goodwill charges and adjusted for restructuring costs from the
first full year and will thereafter be increasingly positive.

Through this acquisition SEB Kort will become a leading card issuer
in Norway, encompassing Diners Club, MasterCard and Eurocard.

In September, SEB also purchased 239,434 shares (12 per cent) in
the Danish bank Amagerbanken, at market price. SEB has been a
shareholder in Amagerbanken since 1999 and, after the acquisition,
its total shareholding is 30.4 per cent.

SEB has been operating in Denmark since 1994, and has now
approximately 400 employees within areas such as bond trading, cash
management, Internet/telephone banking, cards, asset management and
investment banking.

Stockholm, 6 November 2002

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     SEB AG Group (SEB's operations in Germany)
Appendix 3     Credit exposure
Appendix 4     Capital base for the SEB Financial Group of
Undertakings
Appendix 5     Market risk

Operational Profit & Loss Account quarterly performance seven
quarters
- The SEB Group
- The Divisions and business areas
- Bridge between present and previous accounting principles
- Revenue split
- One-off items
Statutory Profit & Loss Account
   - 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]
60

This Interim Report has not been reviewed by the Auditors of the
Bank.

Financial information during 2002-2003
5 December 2002          Capital Market's Day
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 (N.B. new date)
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.
SEB Group

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SEB Group

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Nordic Retail & Private Banking
The division has 1.5 million private customers - of which 690,000 e-
banking customers - and 120,000 small and medium-sized corporate
customers. The majority of the customers are Swedish. In the Nordic
area, SEB also has approximately 600,000 card customers.
The main business areas are Retail Banking, Private Banking and SEB
Kort (cards). In Sweden, SEB has 200 branch offices, a top-ranked
Internet service and a 24h telephone bank.

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Result increased further - in spite of difficult market situation
The long and deep downturn of the stock market was the main reason
for the decrease in total income by 8 per cent. This decrease,
especially in net commission income, was however offset by a
significantly lower cost level, -16 per cent, resulting in improved
operating result by 15 per cent. This has had a major positive
effect on both cost/income-ratio and profitability.

Net interest income remained stable with a small increase in
volumes and slightly reduced margins. The new savings account,
"Specialkonto", was launched in April offering one of the Swedish
market's highest interest rates and accounted for more than 20 per
cent of deposits from private individuals as per 30 September.

Total deposit volumes in September amounted to SEK 105.3 billion on
a monthly average (104.9 in December 2001). In the total savings
market in Sweden, SEB keeps its leading position. As of June, SEB
had a 16.0 (15.6) per cent share of the total savings market.

Lending volumes in September amounted to SEK 148.3 billion on a
monthly average (140.2 in December 2001), of which SEK 99.9 billion
(93.3) in mortgages. The strong development in the mortgage market
continued. As of September, SEB BoLån's total market share of the
private market was 13.2 percent (13.0). This was due to increased
branch office activities and improved mortgage products, such as
lowered list prices on fixed mortgages.

Net  credit losses were low and included an extraordinary  recovery
of approximately SEK 50 M.


Strengthened position in Norway and Denmark
During the third quarter, SEB has made two acquisitions in the
Nordic area:

In September, SEB Kort made an agreement to acquire Europay Norge
AS in Norway for a total price of NOK 1 billion. Thereby SEB Kort
acquires the Eurocard brand in Norway and becomes a leading card
issuer in Norway, encompassing Diners Club, MasterCard and
Eurocard.

SEB's share of Danish Amagerbanken has been increased and is now
30.4 per cent. Amagerbanken's customer base consists of 100,000
private customers and small and medium-sized companies. The bank
has 26 branch offices and is located in the attractive growth area
around Copenhagen.

Retail banking - continues to cut costs
Retail Banking's result was SEK 1,264 M (999), an increase of 27
per cent, mainly explained by continued cost reductions (-19 per
cent).

This autumn, SEB's top ranked website www.seb.se was improved in
order to facilitate navigation and to make the information more
specific.

The decision earlier this year to offer all university students
SEB's "Student package" free of charge, resulted in 6,000 new
customers when the autumn term started - an increase of
approximately 25 per cent.

Customer satisfaction is an area of top priority. In the external
annual quality survey, "Swedish Quality Index", SEB showed the best
improvement of all banks this year. The private customer
satisfaction index has improved from 60 to 65 and the corporate
customers index from 60 to 66. This positive trend was confirmed by
the Bank's own survey concerning customers' satisfaction with
service in branches, by telephone and on the Internet.

Private Banking - hit by the declining stock market
The Private Banking area is the part of the division that is worst
affected by the stock market decline. Even though the decrease in
net commission income was balanced by a positive development of net
interest income and by a decrease of costs, the period showed a
result, SEK 351 M (405), that was 13 per cent lower than for the
corresponding period last year.

The decrease in costs was partly explained by restructuring of
Enskilda Banken Norway. The total number of employees within
Private Banking has decreased from 927 at year-end 2001 to 825 in
September 2002.

The decline in the stock market had a negative impact on the
development of brokerage fees in Enskilda Banken. Compared to the
corresponding period last year fees were down by 24 per cent, which
is less than the decrease on the Stock Exchange in Stockholm.

The net inflow of new volumes in Enskilda Banken in Sweden amounted
to SEK 7.5 billion, of which SEK 4.4 billion came from new
customers. Assets under management have declined by 30 per cent to
SEK 154 billion from the opening balance.

Private Banking International showed a 9 per cent result increase
as per 30 September.

SEB Kort - strengthening its Nordic leadership
SEB's card business, SEB Kort, showed a result of SEK 384 M (329),
mainly due to a decrease in total costs from SEK 646 M to SEK 577
M. Total income amounted to SEK 1,027 M (1,050). Total turnover for
SEB Kort including Euroline increased to SEK 98.4 billion (95.4).

The third quarter's most important event was the offer to acquire
100 per cent of the shares in Europay Norge AS. By this SEB Kort
acquires the exclusive right to the Eurocard brand in Norway, and
Europay Norge's business within card issuing, acquiring and bank
service - pending approval by the authorities in Norway and Sweden.


Corporate & Institutions
The division is responsible for medium-sized companies, large
corporations and 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.

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Continued weak financial markets
The stock market remained under pressure during the third quarter,
due to growing concern about the recovery of the global economy.
Equity prices fell by 26 per cent on the stock exchange in
Stockholm and by 20 per cent on the stock exchange in New York. The
flight to quality papers drove U.S. bond yields down to levels not
seen for the last four decades; the Swedish 10-year bond yield fell
by 55 basis points to 4.90 per cent. The markets started to
discount rate cuts from central banks.

Strong return despite weak financial market
The division has on an aggregated level achieved a satisfactory
result considering present market conditions. Most of the business
units performed well, although the bearish development in the
equity market was negative for Enskilda Securities and Securities
Services.

Net interest income remained stable while both net commission
income and net result of financial transactions fell compared to
the corresponding period 2001. The decrease was primarily due to
lower customer activities, particularly within equities, but also
within other areas. The cost/income ratio was unchanged compared to
last year.
                                                                   
Merchant Banking
The operating result of Merchant Banking amounted to SEK 2,985 M
(3,251). Compared with 2001, the result before credit losses was
slightly lower, at SEK 3,046 M (3,116).

During the period January to September, most areas within Merchant
Banking reported strong results considering current market
conditions.

Year to year Trading & Capital Markets shows an income on the same
level as in 2001 through the combination of stable customer flows
and acquisition of new clients. However, the third quarter showed a
decrease in trading related income compared to previous quarters,
especially in the foreign exchange area, mainly due to lower
customer activity.

Merchant Banking Germany showed a positive development compared to
last year. The result is ahead of plan, mainly due to good results
within trading and capital market products.

Cash Management performed well in a competitive market. However,
margin pressure causes restraints on profitability and calls for
continued efficiency measures.

Securities Services' result was lower this year compared with the
first three quarters of 2001. This was mainly due to decreasing
values in assets under custody and price pressure, which to some
extent was offset by the highest level of transactions ever for
Securities Services.

The long-term objective of changing Merchant Banking's business mix
from more volatile areas to more stable and growth business has
been successful and continues with undiminished focus. However, the
weak markets during 2002 have led to an unchanged income level for
the growth areas compared to last year. The more mature business
areas continue delivering but are under constant efficiency
pressure in order to keep profitability levels.

Results are seen within all three areas of the "3 C programme". The
customer satisfaction has been confirmed by successful acquisitions
of new clients within priority areas and recent awards and
rankings, for example Best Trade Finance Bank in Sweden (July 2002,
Global Finance Magazine) and Leading Bank in Swedish kronor and
Norwegian kroner derivatives (September 2002, Risk Magazine). The
increased focus on cross servicing, both between SEB divisions and
internally within Merchant Banking, has led to new business. Cost
efficiency measures are implemented and costs are in line with the
commitments made in the cost cutting programme. Costs excluding
performance-related compensation and restructuring costs decreased
by 2 per cent.

Asset quality remained high and credit losses were SEK 61 M. Under
current market conditions risk management has become even more
important and a cautious view on risks combined with conservative
structuring of new transactions will continue to permeate all
business decisions.

Enskilda Securities
In continuously weak equity markets Enskilda Securities retained
its strong market position.

Enskilda Securities result for the first nine months was SEK 175 M
(288). The weaker markets had a negative impact on revenues in both
Equities and Corporate Finance. Enskilda Securities has implemented
a cost cutting programme which has led to substantially lower costs
compared with the corresponding period last year. Staff costs were
down by 22 per cent and other operating costs by 20 per cent. By
the end of September, the number of personnel had decreased by 14
per cent compared with last year.

The business unit Equities' income for the first nine months fell
by 28 per cent. Secondary commission, which is the single most
important revenue source, fell by 17 per cent.

The business unit Corporate Finance's revenues fell by 34 per cent
and lower income was reported both for Initial Public Offerings and
Merger & Acquisitions.
SEB Germany division
The division serves one million private customers as well as small
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 can be
found in "Additional information" on www.seb.net.


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Continuously weak economy
The market situation in Germany continues to be characterised by a
weakening economy, the highest number of insolvencies among small
and medium-sized companies for years, a weak local stock market,
and low market interest rates. In addition, several different tax
increases for both corporations and private individuals are now
being discussed by the new Government coalition. Customer behaviour
is still conservative and the activity level low.

The performance of German banks is generally poor due to large
credit losses and some banks show large deficits. As a result most
of the banks are now initiating cost reduction programmes similar
to the restructuring programme started by SEB AG already in the
year 2000. The German banking industry is facing a staff reduction
by more than 50,000 employees.

SEB AG Group
SEB's total German operations (SEB AG Group) are performing well as
compared to other German banks. Total result for SEB's German
operations amounted to SEK 618 M (769). The decrease was due to
lower one-off items in 2002. Operating income was stable. See
further in the "Additional information" on www.seb.net.


New sales and underlying earning capacity improved
The division's new sales of mortgage loans, SEK 5,077 M, improved
by 40 per cent compared to last year. Prolongation of mortgage
loans, SEK 3,231 M, rose by 29 per cent.
Net sales of funds, SEK 8.6 billion, more than doubled compared to
the corresponding period 2001. Net sales of SEB Immoinvest's N:o 1
ranked real estate funds, SEK 6.1 billion, continued to be
successful. The market share of Immoinvest is now 4.6 per cent. Net
sales of SEB Invest's mutual funds, SEK 1.5 billion (2.4),
deteriorated due to the market conditions.
Assets under management amounted to SEK 106 billion, a decrease of
2 per cent compared to the previous quarter. Compared to the
corresponding period 2001, measured in euro, there was an increase
of assets under management despite the negative market conditions.
Income decreased. However, the relatively stable level of net
interest income and particularly commission income should be
considered satisfactory given the market conditions. Net commission
income developed comparably well during the first half of 2002,
showing a slight improvement compared with 2001 as a result of a
strong sales focus. During the third quarter net commission income
was stable.
Continuous cost efficiency improvement
The cost efficiency programme led to a 5 per cent lower cost level
during the first three quarters of 2002. Compared with 2001, staff
costs decreased by 1 per cent while other costs were down by 10 per
cent. The number of full time equivalents was down by 156 to 3,742.

During 2002 major cost reductions have been achieved by moving the
headquarters to new premises at considerably lower rents and
through cost cuts within staff units. In the third quarter the
whole mainframe operations was moved from Frankfurt to Stockholm.
This will lead to cost reductions in the future, mainly due to
lower license and consultant costs. The successful move was a
complicated and unique operation, which now attracts the attention
of a number of other banks considering similar consolidation
measures. Further cost reduction activities within the IT area
through organisational co-ordinations within the SEB Group are
under implementation.

Overall  the cost reduction programme is running according to  plan
and  additional  efforts  are  now made  to  achieve  further  cost
reductions to compensate for the lower income side.

Credit loss situation
Credit losses increased during the third quarter compared to the
previous quarters this year due to the weak economic climate.
Further deterioration of the economy demands continued attention to
the development of the credit portfolio. However, the portfolio mix
of SEB's German operations in combination with specific and general
reserves attributable to SEB AG provides a balance of the risk
exposure.
SEB Asset Management
SEB Asset Management offers a full spectrum of investment
management expertise and services to institutions, life insurance
companies and retail clients - from low-risk portfolios to private
equity and hedge funds. SEB Asset Management has offices in
Copenhagen, Helsinki, New York, Stamford and Stockholm. The
division has more than 100 persons engaged in portfolio management.

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Improved cost/income ratio
In spite of lower income due to weak stock markets, SEB Asset
Management improved its cost/income-ratio from 0.64 to 0.59. This
improvement was due to substantial reductions of costs by 25 per
cent, primarily through staff cuts. Since June 2001, total staff
has been reduced by approximately 135 full time equivalents, or by
26 per cent. During the third quarter, SEB Asset Management
outsourced the administrative and technical property management of
the real estate operations in Stockholm, which will have a positive
effect on costs.

The division's operating result decreased by 8 per cent compared to
the corresponding period last year. For the third quarter isolated,
however, operating result improved slightly to SEK 105 M (104).

Positive net inflow in spite of tough market conditions
During the third quarter of 2002 the global stock markets fell by
19 per cent and the Swedish portfolio index (SIX) by 26 per cent,
adding up to a fall during 2002 of 29 per cent for the global
markets and 43 per cent for the Swedish market. Weak stock markets
had a continuous negative impact upon sales within the whole
industry. Total accumulated net sales were lower than in last year.
In the third quarter SEB Asset Management gained a number of new
mandates, primarily in Denmark. The business in Finland and the
U.S. was also successful in attracting new capital, while
institutional sales in Sweden were generally weak.

During the first nine months of 2002, the net inflow to SEB's
mutual funds, excluding SEB Germany, totalled SEK 9.5 billion
(5.0), of which SEK 6.1 billion (2.9) in Sweden. The successful
launch of the new product line corporate bond funds, the first of
its kind in the Swedish market, has attracted a considerable amount
of capital. SEB Mutual Funds in Sweden has a net sales market share
of 11.5 per cent (6.5) and 26.7 per cent (21.7) of the fixed income
segment. In addition, net sales of mutual funds in Denmark and
Finland amounted to SEK 3.4 billion. SEB's market share of mutual
funds in Sweden was 17.3 per cent (18.4 by year-end), totalling SEK
137 billion (181 by year-end). This represented 29 per cent of the
division's assets under management.

On 30 September 2002, the division's total assets under management,
amounted to SEK 476 billion (567).

Improved performance
During 2002, one of the most important ambitions has been to
improve the performance for all portfolios. This has mainly been
made through concentration of the investment management activities
and new recruitment within the division's key competence areas.

Performance relative to benchmarks has improved during the second
and third quarter. In October, SEB Mutual Funds was top-ten-ranked
by Wall Street Journal within fixed income fund management for the
regions of Europe, the euro and the U.S.

To further improve efficiency, SEB Asset Management is streamlining
and simplifying the range of mutual funds in Sweden. Approximately
30 funds will be merged or closed during the fourth quarter of this
year.


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  140,000 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.

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Continued economic growth
The GDP growth for year 2002 in the Baltic countries is expected to
be almost 5 per cent. For 2003-2004 the growth is expected to be
slightly higher for all the three countries, the reason being a
strong domestic demand situation that offsets the weak
international economic situation.

The strong economy is reflected in SEB's Baltic subsidiary banks.
The number of customers has increased by 13 per cent compared to
September 2001. During the same period, the number of Internet
customers increased by 73 per cent to 336,000. During 2002 the loan
portfolio has increased by 9 per cent (13 per cent after
adjustments for currency fluctuations), resulting in a market share
of 33.3 per cent (34.3). The growth is relatively evenly spread
between the banks. A sharp increase in demand for mortgage loans
and leasing and strong domestic consumer demand in general are the
main reasons behind this expansion.

Deposits increased by 11 per cent (13 per cent after adjustments
for currency fluctuations) during 2002, corresponding to a market
share of 25.6 per cent (25.0). The market for savings products
other than deposits 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 funds savings. Assets
under management in the banks amounted to approximately SEK 1
billion by the end of September, an increase of 28 per cent since
year-end.

For Poland the economic situation is somewhat different. GDP is
expected to grow by 0.9 per cent this year, but will increase
during 2003 and 2004 to 2.3 and 3.2 per cent respectively. The main
reason for the low growth rate is a low domestic demand and a
downturn in capital spending.

Result increases further
The growth in the Baltic banks has been well balanced. Income
increased by 10 per cent (10 per cent after adjustments for
currency fluctuations) while costs increased by 4 per cent (3 per
cent after adjustments for currency fluctuations). The cost
increase is primarily a result of expansion in volumes and
products. Accordingly, the cost/income ratio improved from 0.66 to
0.62. The increase in operating result amounted to 37 per cent.
Also, return on allocated capital increased from 13.8 per cent up
to 18.9 per cent.

Result from BOS Bank is included in the division's result by SEK 5
M as net result from associated companies.

Increased co-operation
Intensive efforts have been made to improve cross-servicing and
customer satisfaction. SEB's Baltic banks can now offer Pan-Baltic
customers one-point-of-entry solutions, i.e. possibilities to get
service in all three countries via any one of the banks. Vilniaus
Bankas as well as Latvijas Unibanka received the best bank reward
for the respective country in 2002 from Global Finance.

Credit as well as treasury and risk functions continue to become
more integrated with the parent company.

Outsourcing of non core business is an on-going process. In
Latvijas Unibanka cash collection and security services have been
outsourced for increased efficiency. Similar activities are under
way in Vilniaus Bankas.

BOS in Poland 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. BOS is also
working on finding ways to increase efficiency as well as
competence in order to improve net result and reduce risks.




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 Livförsäkringsaktiebolaget SEB
Trygg Liv, which are not consolidated with the SEB Trygg Liv
Group's results.

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* In the SEB Group reporting, SEB Trygg Liv is accounted for
according to the same principles as associated companies - one-line
accounting. Accordingly, only the operating result is consolidated
in the SEB Group's accounts. More detailed information about SEB
Trygg Liv can be found in "Additional information", available at
www.seb.net.


Improved results
The result from on-going business, SEK 1,146 M, which includes the
change in surplus values, improved as a consequence of the
continued shift from single-premium to the regular-premium
insurance, combined with lower costs.

The operating result also improved due to the limited decline in
revenues (administration agreements, insurance fees and net
interest) and sharply reduced costs as a result of continued
savings measures and lower distribution payments due to lower
sales. The number of full time equivalents was reduced by 78
compared with last year. In addition, 65 temporary employees left
during October 2001. Naturally, the continued negative trend of the
stock market affected the total result, net.

Sales affected by continued stock market decline
The life insurance market remained affected by market uncertainty.
Sales, measured as weighted volume, amounted to SEK 18,164 M
(21,843), a decline of 17 per cent. Compared with the preceding
quarter, the decline in unit-linked insurance has slowed somewhat,
while it increased for traditional insurance. Sales of single-
premium endowment insurance declined by about 40 per cent. The
sales trend for occupational pension with regular premiums is
relatively stable, although a certain weakening was noted also
within this segment. Combined, this means a continued increase in
the portion of company-paid insurance, from 68 to 76 per cent. At
mid-year 2002 the portion was 74 per cent. The development is
viewed positively, since the objective has been to increase company
business to create a more long-term and cyclically less sensitive
combination of the total business.

During the third quarter, SEB Trygg Liv's sales offices in
Stockholm and Gothenburg were closed and personnel was transferred
to the branches of the bank to combine banking and insurance
expertise. Competence development of the branch office and
telephone bank personnel has been carried out regarding pensions,
with an emphasis on early retirement pensions. This work will
continue during the fourth quarter. Within the corporate segment,
customers are offered a combined review of bank and insurance
products to an increasing extent.

Premium income, i.e. paid-in savings and insurance premiums,
amounted to SEK 9,916 M (11,359). However, this decline of 13 per
cent was an improvement compared with mid-year 2002. Unit-linked
insurance accounted for two thirds and traditional insurance for
one third of premium income.

Total assets under management declined by 8 per cent or SEK 16
billion, from SEK 213 billion to 197 billion. From the beginning of
the year the change was minus 13 per cent. Assets managed within
traditional insurance declined during the period by 4 per cent or
SEK 7 billion and within unit-linked insurance by 18 per cent, or
SEK 9 billion.

During September, the first SEB customers moved into the BoViva
flats in Halmstad. BoViva is a secure living environment comprising
tenant-rights flats with access to service and care that may be
required by elderly people. The project is a co-operative venture
involving SEB Trygg Liv, Peab and Actica. More BoViva facilities
are planned, initially in major metropolitan areas. Customers with
private pension savings, occupational pension or endowment
insurance with SEB are offered such tenant-rights flats.
SEB share
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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