Q4 2023 Financial Update
Credit portfolio and asset quality
Household mortgage portfolio of high asset quality and based on affordability
SEB's Swedish household mortgage lending
Growth vs total market, SEK bn
Low LTVs by global and
regional standards
SEB lending (RHS)
SEB growth YoY
Weighted avg
>85 0%
Market growth YoY
max LTV 56.7%
20%
600
70-85
3%
400
50-70
12%
200
0-50
10%
0%
-10%
0
2018 2019 2020 2021 2022 2023
Housing prices in Sweden
Average housing prices, indexed December 2018 = 100
140
120
100
2018
Source: SEB, Macrobond.
84%
Distribution in LTV buckets based on exact order of priority for
the individual mortgage deeds according to the Association of
Swedish Covered Bond issuers, e.g., a loan with LTV 60% is
sliced in equal parts in 6 intervals of 10%-units, up to 60%.
2019
2020
2021
2022
2023
22% SEK
3,040bn
Solid market fundamentals and underwriting criteria
•
•
•
Strong customer base: According to Swedish credit
data agency (UC AB), SEB's customers have higher
credit quality than market average and are over-
proportionally represented in higher income
segments. Customers are also concentrated to larger
cities
High asset quality: low past dues and losses
Affordability assessment includes stressed interest
rate scenario of 6.5% on personal debt and, in case
of apartments, an additional stress of 4.25% on a
housing co-op's debt which indirectly affects the
private individual ("double leverage"). Recently
adjusted for inflation.
SFSA's amortisation requirements: LTV 70-85%
loans amortise min. 2%/year, between 50-70% at
least 1%/year. As of 2018, loans with DTI>4.5x
amortise an additional 1%. Max loan amount: 85%
LTV cap since 2011. In general, 5x total gross
household income irrespective of LTV and no more
than one payment remark on any kind of debt.
SEB
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