A diversified revenue base and entrenched franchise in core business areas; Sustained profitability in the past few years, underpinned by better efficiency and revenue growth; and Low provisioning requirements and stable asset quality. Low profitability at the German retail and mortgage subsidiary; Despite considerable progress, the group still has a higher cost base than regional peers; and Concentration risk arising from some large exposure to single names. The ratings on Sweden-based Skandinaviska Enskilda Banken AB (SEB) reflect the group's very strong franchise in corporate and merchant banking in Sweden, its adequate capitalization, and the group's sustained profitability in the past three years. The ratings are further underpinned by very good asset quality, growth in business volume in retail banking primarily
