Well-diversified revenue base by geography and business areas Entrenched franchise in core business areas; particularly merchant banking Sustained profitability, underpinned by better efficiency and revenue growth Low provisioning requirements and stable asset quality Adequate capitalization High component of capital markets-related revenues Uncertainty caused by exposure to the troubled economies of the Baltic countries Concentration risk arising from some large exposure to single names The ratings on Sweden-based Skandinaviska Enskilda Banken AB (SEB) reflect the group's well-diversified revenue base, underpinned by its very strong franchise in corporate and merchant banking in Sweden; its adequate capitalization; and the group's solid and sustained profitability and tight cost discipline. The ratings are further supported by SEB's very good asset quality, although this could be
