SE Banken (SEB) is a classic commercial bank with strong ties to the Swedish industry. In the last ten years, SEB has broadened its business geographically to Germany and the Baltic region. Apart from Swedbank, SEB has the largest credit exposure in the troubled Baltic economies, which has lead to SEK 9.6bn in credit losses during 2009, although smaller in 2010 (SEK 873m). SEB’s robust Nordic banking operations lead by a solid merchant banking division and Equity operations, have developed positively during 2009 and 2010. SEB performed an equity rights issue of SEK 15.1bn in April 2009 to strengthen its capital position, solvency was 12.4% and core tier 1 ratio 12.8% at end of 2010. There are still large challenges ahead for SEB in its non-Nordic operation, the German retail operations were sold to Banco Santander on the 12th of July 2010. The bank has decreased lending to corporate clients by 17% y-o-y in 2009 (+1.5% in 2010), which can hurt future profits. SEB's high commercial exposure, expects to perform well if corporate lending, transaction and equity markets volumes pick up.