SEB Sees Fall in Shareholders' Equity on Accounting Changes, Impairments
January 19 2018 - 05:38AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Shares in Skandinaviska Enskilda Banken AB (SEB-A.SK)
fell Friday after the Swedish bank said its shareholders' equity
will decline by 8.2 billion Swedish kronor ($1.02 billion) due to
new accounting rules and impairments at its German business.
Shareholders' equity is a commonly-used measure of financial
health, calculated by taking a company's total assets and
subtracting its total liabilities. It shows the amount that would
be returned to shareholders if all of a company's assets were
liquidated and all its debt repaid.
Accounting changes that came into effect this month will see
group shareholders' equity fall by SEK6 billion, while the costs of
reorganizing its German business and writing down intangible assets
will amount to SEK1.7 billion after tax in the fourth quarter, SEB
said.
"In total, the above-mentioned effects will lower equity with
SEK8.2 billion, the capital base with SEK4.3 billion and decrease
the capital buffer by around 50 basis points," the company said in
a statement.
"The business outlook remains unchanged and SEB remains
committed to the financial targets including a capital buffer of
around 150 basis points, and the cost cap of SEK22 billion for
2018," it said.
At 0955 GMT shares traded 1.9% lower at SEK99.20.
Write to Dominic Chopping at dominic.chopping@wsj.com;
@domchopping, @WSJNordics
(END) Dow Jones Newswires
January 19, 2018 05:23 ET (10:23 GMT)
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