OREANDA-NEWS. July 19, 2012. SEB Grupp published the economic results for the 2nd quarter of 2012. The units of SEB Eesti completed the second quarter of 2012 with a MEUR 18.5 profit, the operating profit of SEB Eesti amounted to MEUR 33.9 and operating costs to MEUR 15.6, reported the press-centre of SEB Grupp. 

Riho Unt, Chairman of the Management Board of SEB Pank, commented on the result of the units of SEB in Estonia as follows:

Private client activity has increased
“The second quarter was characterised by a noticeable increase in activity of the private clients of SEB Pank. Just like sales increase in retailing, the volumes of the housing loan portfolios that have been issued are on the rise once again. SEB has issued almost 30% more of new housing loans compared to the second quarter of last year. Deposition by private persons is also showing a good upwards trend as the balance of deposits increased by 8% compared to the previous year. Hence, in case of private persons, the appearance of a more balanced trend can be noticed, with a reasonable consumption and investment trend added to saving, thus definitely having a positive effect on the economy.

Another significant change is a truly rapid shift in the consumption habits of clients. Use of the SEB Mobile Bank doubles every three months and should it continue like this, Mobile Banking will turn into an even more important service channel for banking than the Internet Bank. In only a year, the Mobile Bank has evolved into a more important channel than the branch network. This is the fastest change in consumption habits in the Estonian banking ever. While at the beginning of last year, the Mobile Bank was visited 2,000 times a month, then at the end of the first quarter of this year, already 100,000 times and in June, already 210,000 times a month. Thus, the scales are ever more tipping towards the use of e-channels. In addition, the decrease in the proportion of cash helps increase the efficiency and transparency of economy, which is why we contribute to the fast spread of electronic means of payment in every way.

Reliability of Estonian exporters in the Nordic countries increasing
Somewhat surprisingly, the troubles of Europe are not significantly reflected in the activities of Estonian companies. Similarly to private persons, entrepreneurs are still optimistic towards the future. The feared recession in economic activity has been more modest than expected. Local companies keep getting better and better in realising their price and quality advantages on foreign markets. After the crisis, the reputation of and trust towards Estonian manufacturers has significantly improved, thus allowing exporters to realise their goods on main export markets with better margins than before the crisis. In addition to other factors, the improvement in the reputation is contributed to by the more mature corporate culture of Estonia – our entrepreneurs are becoming reliable partners as companies with dubious business culture are given less and less opportunities for business in Estonia. The improvement in the reputation of our business culture supports in particular small and medium-sized enterprises, for whom it is easier to find clients for their products or services in the Nordic countries.

In the European context, Estonian entrepreneurs are currently facing a rather extraordinary situation: the Baltic states and Nordic countries are one of the few regions that due to strong banks do not manifest a lack of capital. In a situation where European companies are suffering a credit crisis and we, vice versa, have good access to loan money, entrepreneurs should think about increasing their competitiveness, and updating of technology could be one of the means. The bold introduction of new technology was the key to Estonia’s success after the restoration of independence and at the current break-through moment, it could also be the step to help us sustain and increase our success during these hectic times.“

The units of SEB Eesti completed the second quarter of 2012 with a MEUR 18.5 profit; SEB Eesti completed the second quarter of last year with a MEUR 31.6 profit. In the second quarter, the operating profit of SEB Eesti amounted to MEUR 33.9 (MEUR 34.6 in the second quarter of 2011) and operating costs to MEUR 15.6 (MEUR 16.7 in the second quarter of 2011). In the second quarter of 2012, the bank decreased loan loss provisions by MEUR 0.2 (in the same period of 2011, the bank decreased the provisions by MEUR 13.6). The total profit for the half-year amounted to MEUR 41.5 (MEUR 48 in the first half of last year).