Sweden’s SEB bank posts 2Q loss amid large credit losses in the Baltics

Sweden’s SEB bank posts 2Q loss

STOCKHOLM — Swedish bank SEB AB on Monday posted a second-quarter loss as credit losses for its operations in the Baltic countries increased more than eight-fold.

The bank said net loss for the quarter was 193 million kronor ($24.7 million) compared with a profit of 2.8 billion kronor in the same period a year earlier. The result was well below analysts’ expectations of a profit of 1.4 billion kronor.

SEB, which is the core holding of Sweden’s powerful Wallenberg family, said total credit losses increased to 3.6 billion kronor ($461 million) from 448 million kronor — 74 percent of which was attributable to its operations in the Baltic countries.

It also said the result was weighed down by a 2.4 billion kronor ($307 million) write-down on goodwill in the Baltics and Russia.

Net interest income, the bank’s main source of revenue, rose to 5.4 billion kronor ($691 million) from 4.4 billion kronor in the second quarter 2008.

“The coming quarters are challenging, not just for SEB but also for the markets and economies where we are operating,” Chief Executive Annika Falkengren said in a statement.