FöreningsSparbanken. Lars-Erik Kvist Group EVP and Chief Credit Officer

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1 FöreningsSparbanken Lars-Erik Kvist Group EVP and Chief Credit Officer

2 Lending and credit quality 2

3 3 Lending A sound profitability Annual growth rate in total lending 3.8 percent (9M-2002 growth annualized) Continued strong position in the household sector Increased market share in the agricultural sector (Jordbrukskredit) FSPA Finans (finance services lending) has a strong growth and is growing its market share

4 4 Group lending 12/00 09/02 Net excl. repurchase agreements SEK M /00 3/01 6/01 9/01 12/01 03/02 06/02 09/02 FI-Holding and Hansabank

5 5 Lending Sep. 30, Jun. 30, Mar. 31, Dec. 31, SEK bn Private individuals of which Spintab Group Real estate management Retail, hotels, restaurants Construction Manufacturing Transportation Forestry and agriculture Other service businesses Other business lending incl credit institutions Municipalities Other Total Repurchase agreements Total lending

6 Group lending excluding repurchase agreements 6 FSPA excl. Hansabank and FI-Holding Hansabank FI-Holding SEK bn 9/30 12/31 9/30 12/31 9/30 12/31 Private individuals of which Spintab Group Real estate management Retail, hotels, restaurants Construction Manufacturing Transportation Forestry and agriculture Other service businesses Other business lending incl. credit institutions Municipalities Other Total

7 Group lending excluding repurchase agreements 7 SEK bn Sep. 30, 2002 Dec. 31, 2001 Change FöreningsSparbanken AB % Spintab % FöreningsSparbanken Finans AB % FI-Holding 71 * 73 2 % Hansabank 28 ** % Other units 3 3 Total % * From which exchange rate fluctuation SEK 2 bn ** From which exchange rate fluctuation SEK 1 bn

8 Lending by collateral 8 September 30, 2002 Floating charges, 3% Other properties, 16% Personal guarantee, 2% Unsecured, 12% Other collateral, 6% Municipalities and county councils, 7% Residential properties incl. condominiums, 54% Lending SEK 658 billion

9 Lending by sector 9 September 30, 2002 Other 2% Corporates 30% Private individuals 45% Municipalities 2% Real estate management 21% Lending SEK 658 billion

10 10 Doubtful claims SEK M dec-97 dec-98 dec-99 dec dec 02-mar 02-jun 02-sep Doubtful claims gross Doubtful claims net

11 11 Doubtful claims gross by Group unit SEK M Sep. 30, 2002 Dec. 31, 2001 Sep. 30, 2001 FöreningsSparbanken AB 2,273 2,164 1,862 Spintab FöreningsSparbanken Finans FI-Holding Hansabank Others Total 3,977 4,253 3,982

12 12 Doubtful claims net by Group unit SEK M Sep. 30, 2002 Dec. 31, 2001 Sep. 30, 2001 FöreningsSparbanken AB Spintab FöreningsSparbanken Finans FI-Holding Hansabank Others Total 1,

13 13 Loan losses SEK M Jan-Sep 2002 Jan-Sep 2001 Established Provisions 1,452 1,124 Recoveries Change in value of property taken over 0 15 Total 1, of which general provisions Provision ratio for doubtful claims 126% 103%

14 14 Loan losses by Group unit SEK M Jan-Sep 2002 Jan-Sep 2001 FöreningsSparbanken AB 1, Spintab FI-Holding Hansabank 12 3 Others Total 1, of which general provisions in FöreningsSparbanken AB

15 15 Loan losses, private individuals SEK M Loan losses net, SEK M

16 16 Doubtful claims, private individuals SEK M Doubtful claims gross Doubtful claims net

17 Credit exposure book value SEK M 17 Country Sep. 30, 2002 Dec. 31, 2001 Change Sweden 620, ,031 12,189 Denmark 77,710 80,786 3,076 USA 16,486 29,611 13,125 Rest of OECD 60,385 53,087 7,298 Latin America 1,242 1, of which Argentina of which Brazil Baltic region 36,485 32,104 4,381 Russia Japan Rest of East Asia 1, Other countries 3,506 3, Total 817, ,307 7,328

18 18 Improved efficiency Blanco Spintab Rörelsekredit Spintab multifamily housing minutes /2000 Despite added customers and increased lending volumes, resource consumption within Retail Sweden for lending activities has decreased from 27 to 25 percent

19 Credit risk control 19 Cental credit unit risk control Monthly/quarterly follow-up of the Group s loan portfolio in accordance with established report structure - industry and collateral distribution - loan losses and doubtful claims - 20 largest problem loans/unit - assets taken over to protect claims - all risk exposures SEK 1 M with estimated risk of loss within 24 months - risk-classified loan portfolio Supervision by local credit organization - credit organization - education/competence - need for support - routines for customer follow-ups Local credit risk control Review all new loans Monitor quality of local credit portfolios - decision quality - risk classification - register quality - incomplete files - handling of problems Report to local president and board - risk development - deviations from instructions Support local officers Develop routines and instructions

20 Credit limit structure 20 Board of directors Unlimited Central headquarters Board credit- and capital committee Unlimited Central credit committee SEK 150/350 M Local bank Local board SEK 10/20/30/40 M Depending on size Local delegation SEK 7.5/15/20/30 M Two officers jointly SEK 0.25/3/5 M

21 21 Outlook 2003 Spintab - continued growth Jordbrukskredit - continued growth Finansbolaget - continued growth Improved credit scoring percent of housing loan applications are handled manually. With the new scorecard up-and-running the figure will come down to 10 percent.

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