Q4, February 2007

Transcription

1 16 February 27 Contents page Mission, vision, values and markets 2 Financial objectives 3 Geographic reach and market shares 4 Macro economic indicators 5 Cross selling, Internet bank and cards 6 Lending 7 Savings and investments 9 Income statement and key figures 1 Expenses and employees 13 Business area report 14 Balance sheet 18 Interest rates 19 Funding, interest rate risk and capital adequacy 2 Asset quality 21 Organisation and credit limit structure 23 Shareholders, share data and share price 24 Contacts, financial calendar and rating 25

2 Mission, vision, values and markets Mission By understanding and acting upon our customers needs, we can offer them the best financial solutions and thereby help them to improve their financial situation. In this way, we can continuously increase our company s value and serve as a positive force in society. Vision We want to be the leading financial institution in the Nordic and Baltic region. By leading we mean: highest customer satisfaction in each geographic market most profitable in each geographic market most attractive employer in each geographic market Values We believe that the Group s strong performance and growing international recognition is the result of a performance orientated culture, transparent communication, a willingness to change, and the high commitment of our employees. Service leadership Swedbank is aiming for a position of leadership in service. The essence of the Swedbank brand is to make our customers everyday lives easier through our mindset, our attitude, our precence and our offer. Home markets, universal banking Sweden - Swedbank Estonia - Hansabank Latvia - Hansabank Lithuania - Hansabank Other markets, niche banking Denmark - 2 Swedbank branches Finland - Swedbank branch Norway - Swedbank branch, investment banking through First Securities (51% owned), EnterCard (5% owned) Russia - Corporate banking and leasing in Moscow, Kaliningrad and St Petersburg Ukraine - Representative office in Kiev US - Merchant/investment banking in New York Luxemburg - Banking for Swedish expatriates China - Representative office in Shanghai Japan - Representative office in Tokyo Spain - Representative office in Marbella Norway First Securities Denmark Sweden Finland Estonia Latvia Lithuania Russia International growth three options 1) Retail banking in Nordic and Baltic regions controlling share any acquisition should give a positive contribution to group RoE long-term 2) Acquisition-led expansion within certain product areas economies of scale cross-border customer value additional distribution channels 3) Greenfield investment in Nordic metropolitan retail operations Ukraine 2

3 Financial objectives Financial objectives -Return on equity shall exceed the average of all other large, publicly listed Nordic banks (Handelsbanken, SEB, Nordea, Danske Bank and DnB NOR) -The C/I ratio before loan losses shall be less than.5 -The tier 1 capital ratio shall be around 6.5 percent -Dividends shall constitute around 4 percent of earnings after tax, excluding one-offs -The Group shall have a sustainable growth in earnings per share that exceeds the average of the peer group Return on equity Capital adequacy % 3 % Nordic peers Swedbank The peer group consists of SEB, Nordea, SHB, DnB NOR and Danske Bank Q4- Q4-1 Q4-2 Q4-3 Q4-4 Q4-5 Q1-6 Q2-6 Capital adequacy ratio Tier 1 capital ratio Target tier 1 capital ratio Q3-6 Q4-6 Cost/income ratio Q3-2 Q4-2 Q1-3 Q2-3 Q3-3 Q4-3 Q1-4 Q2-4 C/I ratio Q3-4 Q4-4 Q1-5 Q2-5 Target C/I ratio Q3-5 Q4-5 Q1-6 Q2-6 Q3-6 Q4-6 Dividend Divdend, SEK * 26** Dividend ratio, % Dividend per share Dividend ratio *Dividend ratio excluding capital gains **Dividend according to board proposal 3

4 Geographic reach and market shares Swedbank Group, distribution % Market position, Sweden 1% 8% 6% 4% 2% % Net profit Lending No. of customers, private Branches Swedish Banking and other Baltic Banking 1 Mortgage loans Household deposits Mutual fund investments Individual pension savings Premium pension savings Card clearance transactions Internet bank Telephone bank Real estate brokerage 2 Strong positions in Equity linked bonds Consumer credits Unit-linked insurance Business deposits Leasing Stock brokerage Corporate lending Sweden Population 9. M Employees 8,957 Private customers 4.1 M Of which Internet customers 2.2 M Corporate customers 262, Branches 477 ATMs 863 Cards 3.3 M Russia Population 143 M Employees 233 Branches* 3 Estonia Population 1.3 M Employees 2,941 Private customers 1.2 M Of which Internet customers.8 M Corporate customers 81, Branches 96 ATMs 578 Cards1.1 M Latvia Population 2.3 M Employees 2,241 Private customers.7 M Of which Internet customers.6 M Corporate customers 44, Branches 76 ATMs 242 Cards.8 M Lithuania Population 3.6 M Employees 3,27 Private customers 2.9 M Of which Internet customers.7 M Corporate customers 72, Branches 123 ATMs 338 Cards1.2 M Market shares, Sweden Balance % 35 3 Market shares, Baltics Balance % Mortgages Deposits Fund mgmt Private Retail bonds Corporate Bank lending Total lending Deposits Estonia Latvia Lithuania 4

5 Macro indicators GDP growth Sweden Estonia Latvia Lithuania Russia EU GDP growth Inflation 27E 26E E 26E Sweden Sweden Estonia Estonia , 1,3 Latvia Latvia Lithuania Lithuania Russia Russia Ukraine n.a. n.a. Ukraine n.a. n.a. Denmark Denmark Finland Finland Norway Norway EU25* EU25* Current account balance General Government Financial Balance 27E 26E E 26E Sweden Sweden Estonia Estonia ,7 1, Latvia Latvia Lithuania Lithuania Russia Russia Ukraine n.a. n.a. Ukraine n.a. n.a. Denmark Denmark Finland Finland Norway Norway EU25* n.a. n.a EU25* General government debt* GDP per capita Inhabitants 27E 26E , USD (millions) Sweden n.a. n.a ,42 9. GDP** (25, USDbn) 358. Estonia n.a. n.a , Latvia n.a. n.a , Lithuania n.a. n.a , Russia n.a. n.a. n.a. n.a. n.a. 1, Ukraine n.a. n.a. n.a. n.a. n.a. 6, Denmark n.a. n.a , Finland n.a. n.a , Norway n.a. n.a. n.a. n.a. n.a. 4, EU25* n.a. n.a Source: Swedbank Baltic Sea Report, * Eurostat, ** IMF 5

6 Cross selling, internet bank and cards Products per private customer, Products per corporate customer, Sweden Average number of Sweden Average number of Number of customers, thousand 1,2 1, >1 Q4, 24 products/customer Numbers of products/customer Q customers, Q Q thousand Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q >1 Q4, 24 Internet bank Including savings banks and partly owned banks Bank cards Including savings banks and partly owned banks Number of customers, thousand 2,5 2,25 2, 1,75 1,5 1,25 1, Number of payments, million Number of cards, thousand 3,5 3, 2,5 2, 1,5 1, 5 transactions, million Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Dec-6 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Dec-6 Numbers of Internet customers in Sweden Number of Internet customers in Baltic Banking Payments Swedbank excl Baltic Banking Purchases, million Baltic Banking Acquiring, million 6

7 Lending The Swedish lending market The Baltic lending market SEKbn 3,5 3, 2,5 2, 1,5 1, 5 Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Dec EURbn Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Dec-6 Banks Mortgage Institutions Bank and other lending Mortgage lending Source: Statistics Sweden (Statistiska centralbyrån, SCB) Swedbank Group, Lending by sector Dec 31 Ch. % Ch. % Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Jan 1 SEKbn 26 3 m 12 m Private individuals of which Swedbank Mortgage AB Real estate management Retail, hotels, restaurants Construction Manufacturing Transportation Forestry and agriculture Other service businesses Other corporate lending Municipalities * Total lending to the public *not including municipal companies Credit institutions incl. The Swedish National Debt Office Repurchase agreements (Repos) Total lending 1, ,1.4 1,43.4 1,

8 Lending, Swedbank Group Lending 31 December 26 (31 December 25) SEK 918.9bn (795.7) SEK 51.5bn (472.1) Lending, Swedbank Mortgage AB 31 December 26 (31 December 25) SME, corporate excl. Real estate mgmt 25% (25) Real estate mgmt 21% (2) Municipalities 2% (2) Single-family homes 61% (6) Multi-family housing 17% (18) Agriculture 6% (6) Private individuals, other 11% (1) Swedbank Mortgage, private individuals 41% (43) Business properties 1% (1) Individual condominiums 11% (1) Municipal loans and guarantees 4% (5) Lending, by country Dec 31 Ch. % Ch. % Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Jan 1 SEKbn 26 3 m 12 m Sweden Private individuals mortgage Private individuals consumer Total households SME/corporate, mortgage SME/corporate, bank Total SME/corporate Municipalities Estonia Private individuals mortgage Private individuals consumer Latvia Private individuals mortgage Private individuals consumer Lithuania Private individuals mortgage Private individuals consumer Russia Other Total Lending, Group Lending in Estonia, Latvia and Lithuania aggregated Total Private individuals mortgage Private individuals consumer

9 Savings and investments Market shares, fund assets, Sweden 3 September 26 (31 December 25) Savings and investments, Swedbank Group 31 December, 26 Others 26.3% (25.3) Robur 25.8% (26.5) SEKbn Länsförsäkringar 4.1% (4.1) SHB 13.8% (13.7) Nordea 13.3% (14.4) SEB 16.7% (16.) 2 1 Fund mgmt, Group Deposits, Group excl Baltics 84 Deposits, Baltics 24 Retail bonds, Group Savings and investments Dec 31 Ch. % Ch. % Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Balance, SEKbn 26 3 m 12 m Deposits from the public Households, Group excl Baltic Banking SME/corporate, other, Group excl Baltic Banking Total, Group excl Baltic Banking Households, Baltic Banking SME/corporate, other, Baltic Banking Total, Baltic Banking Total deposits from the public Discretionary asset management Fund assets under management Retail bonds and other bonds Unit-linked insurance Deduction Total savings and investments Savings and investments Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 New savings, SEKbn Household deposits, Group excl Baltic Banking SME, corporate deposits, Group excl Baltic Banking Household deposits, Baltic Banking SME/corporate deposits, Baltic Banking Fund management, net savings Unit-linked insurance, new policies Retail bonds Total new savings Deposits from the public Dec 31 Ch. % Ch. % Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Group, SEKbn 26 3 m 12 m Transaction accounts, Sweden Savings accounts, Sweden Overnight deposits, Sweden Other Currency deposits Total deposits from the public

10 Change in net interest income Income statement and key figures Change in net commission income FY 26 vs. FY 25 SEKm Swedish Banking -556 FY 26 vs. FY 25 SEKm Payment processing 279 Baltic Banking Operations 93 Brokerage 65 Baltic Banking Investments -76 Lending 151 Swedbank Markets -87 Asset management 569 Asset Management and Insurance -3 Corporate Finance 19 Shared Services and new operations 374 Insurance 94 Eliminations -32 First Securities 478 Kundinkasso KIAB AB and EnterCard -27 Other 22 Kundinkasso KIAB AB and EnterCard -158 Total -35 Total 1,699 Profit trend FY FY Change Q4 Q3 Change SEKm % % Net interest income 15,54 15,539 4,49 3,895 4 Net commission income 8,869 7, ,39 2,19 9 Net gains and losses on financial items at fair value 3,211 2, , Net insurance Share of the profit or loss of associates Other income 1,127 3, Total income 29,197 29,46-1 7,912 7,164 1 Staff costs -8,56-8, ,18-2,73 5 Other general administrative expenses -5,92-5, ,724-1, Depreciation/amortization and impairment of tangible and intangible fixed assets Total expenses -15,139-14, ,97-3,49 17 Profit before loan losses 14,58 15,34-8 3,815 3,674 4 Loan losses, net Operating profit 14,263 15,1-5 3,887 3,741 4 Tax expense -3,211-2, Profit for the period 11,52 12, ,959 2,935 1 Attributable to: Shareholders of Swedbank AB 1,88 11, ,913 2,911 Minority interest FY FY Q4 Q3 Key figures Return on equity, % * Return on total assets,% Return on RWA, % Loan loss ratio, net, % Total provision ratio for impaired loans, % Capital adequacy ratio, % Tier 1 capital ratio, % C/I ratio before loan losses Interest margin, % Investment margin,% Risk weighted assets/total assets, % Earnings per share, SEK Cash dividend per share, SEK** * based on equity attributable to Swedbank's shareholders ** Dividend according to board proposal Balance sheet data Dec 31 Dec 31 Change Q4 Q3 Change SEKm % % Total lending 1,17, , ,17,416 1,1,397 1 Deposits and borrowings from the public 4,35 338, ,35 39,269 3 Equity 6,277 53, ,277 58,31 4 Minority interest Shareholders' equity 59,974 53, ,974 57,649 4 Total assets 1,352,989 1,197, ,352,989 1,341,415 1 Risk weighted assets 726, , ,712 7,38 4 1

11 Income statement and key figures Quarterly income statement Q4 Ch. % Ch. % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 26 3 m 12 m Net interest income 4, ,895 3,783 3,777 3,712 3,86 4,28 3,939 4,39 Net commission income 2, ,19 2,353 2,98 1,896 1,91 1,834 1,53 1,554 Net gains and losses on financial items at fair value 1, , , Net insurance Share of the profit or loss of associates * Capital gains and losses , Other income Total income 7, ,164 7,578 6,543 6,997 8,398 7,791 6,274 6,397 Staff costs -1, ,769-1,772-1,86-1,652-1,651-1,63-1,639-1,531 Profit-based staff costs Costs for personnel changes Other expenses -1, ,262-1,543-1,391-1,447-1,182-1,416-1,317-1,458 Depreciation/amortization and impairments of tangible and intangible fixed assets Total expenses -4, ,49-3,92-3,65-3,717-3,364-3,742-3,333-3,376 Profit before loan losses 3, ,674 3,676 2,893 3,28 5,34 4,49 2,941 3,21 Loan losses, net Operating profit 3, ,741 3,792 2,843 3,279 4,937 3,952 2,842 2,922 Tax expenses Profit from discontinued operations 14 Profit for the period 2, ,935 2,854 2,34 2,64 4,12 3,216 2,289 2,249 Attributable to: Shareholders of Swedbank AB 2, ,911 2,786 2,27 2,57 4,37 3,184 2,88 2,63 Minority interest Net interest income Swedbank Mortgage AB 1, , ,21 1,178 1,269 1,22 1,344 1,319 * Share of the profit or loss of associates before tax Q4 Ch. % Ch. % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 26 3 m 12 m Färs & Frosta Sparbank FöreningsSparbanken Sjuhärad Other jointly owned banks in Sweden BGC-Holding EnterCard Holding VPC Other companies First Securities Aktia 12 Total

12 7% 6% 5% 4% 3% 2% 1% % Source of income Q4 4 Q1 5 Q2 5 Q3 5 Net interest income Net financial items Q4 5 Q1 6 Income, split by category Q2 6 Q3 6 Q4 6 Net commission income Other Split of commission income Group income Q4 Ch. % Ch. % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 26 3 m 12 m Interest income 1, ,94 9,429 8,91 8,477 8,377 8,725 8,625 8,897 Interest expenses -6, ,199-5,646-5,133-4,765-4,517-4,697-4,686-4,858 Net interest income 4, ,895 3,783 3,777 3,712 3,86 4,28 3,939 4,39 Commission income Payment processing 1, , Asset management Brokerage Lending Coporate Finance Insurance Other securities Other commissions receivable Commission income, total 2, ,758 3,47 2,683 2,53 2,57 2,427 2,88 2,157 Commission expenses Payment processing Securities Other commissions payable Commission expenses, total Net commission income 2, ,19 2,353 2,98 1,896 1,91 1,834 1,53 1,554 Trading, derivatives and fair value option Shares/participating interests of which change in value of Norwegian PCCs, shares etc of which change in value other of which dividend Interest-bearing instruments of which change in value of which interests Other financial instruments of which change in value Total Interest income compensation, claims valued at cost Change in exchange rate Net gains and losses on financial items at fair value, total 1, , , Other income Net insurance Real estate income IT services to savings banks Share of the profit/loss of associates Other , Total other income ,839 1, Total income 7, ,164 7,578 6,543 6,997 8,398 7,791 6,274 6,397 of which Baltic Banking Operations 1, ,714 1,533 1,359 1,341 1,27 1,187 1, % 45% 4% 35% 3% 25% 2% 15% 1% 5% % Q4 5 Q1 6 Q2 6 Q3 6 Q4 6 Asset management Brokerage Other Payments Lending

13 Expenses and employees Cost development Quarterly expenses SEKm 4, 3,5 3, 2,5 2, 1,5 1, 5 SEKm 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Q2 4 Q3 4 Q4 4 Q1 5 Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Q3 6 Q4 6 Q2 4 Q3 4 Q4 4 Q1 5 Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Q3 6 Q4 6 Total expenses Group excl. Baltic Banking Operations Baltic Banking Operations Staff costs Other expenses Group expenses Q4 Ch. % Ch. % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 26 3 m 12 m Staff costs Salaries and other remunerations, including social insurance charges -1, ,712-1,713-1,744-1,646-1,652-1,638-1,638-1,52 Profit based staff costs of which: Kopparmyntet (Sweden) Other profit-based staff costs Other staff costs Staff costs, total -2, ,73-2,23-2,14-2,19-2,49-2,153-1,88-1,783 Other expenses Expenses for premises IT expenses Telecommunications and postage Depreciation/amortization and impairments of tangible and intangible assets Other Total other expenses -1, ,417-1,699-1,546-1,68-1,315-1,589-1,453-1,593 Total expenses -4, ,49-3,92-3,65-3,717-3,364-3,742-3,333-3,376 of which Baltic Banking Operations Number of full-time positions Dec 31 Ch. % Ch. % Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec m 12 m Group excluding Baltic Banking 8,957 8,921 8,83 8,836 8,922 8,95 8,911 8,932 9,87 of which First Securities ASA of which EnterCard AS Baltic Banking 8, ,19 7,861 7,459 7,226 6,847 6,497 6,255 6,69 Total 17, ,111 16,664 16,295 16,148 15,752 15,48 15,187 15,156 13

14 Business area report Business area accounting policies The business area report is based on Swedbank s accounting principles, organization and internal accounts. Comparative figures have been restated accordingly to smaller organizational changes. The business operations of Baltic Banking are separated in the business area report from the effects of Swedbank s acquisition and ownership of Hansabank in the consolidated group accounting. This facilitates a clearer analysis of how the business operations of Baltic Banking are developing. Comments on Baltic Banking in this report refer to business operations, unless otherwise indicated. Market-based compensation is applied between business areas, while all expenses for IT, other shared service and group staff are transferred at full cost-based internal prices to the business areas. Executive management expenses are not distributed. The group s equity allocated to shareholders is distributed to each business area based on capital adequacy rules and estimated capital requirements. Return on equity for the business areas is based on operating profit less estimated tax and minority interests in relation to allocated equity. Swedish Banking FY FY Ch. Q4 Ch. Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm % 26 % Net interest income 11,489 12, ,95 2,937 2,85 2,752 2,924 3,17 3,115 3,169 Net commission income 4,147 3,86 7 1, ,23 1, ,6 882 Net gains and losses on financial items at fair value Share of the profit or loss of associates Other income 666 2, , Total income 16,946 19, , ,173 4,271 4,111 4,192 6,35 5,385 4,221 Staff costs -4,41-4, ,2-1,1-1,38-1, -1,125-1,55-1,188-1,45 IT expenses Other expenses -3,724-3, , , , Depreciation/amortization Total expenses -8,732-9, , ,65-2,189-2,143-2,348-2,148-2,454-2,231 Profit before loan losses 8,214 1, ,56-2 2,18 2,82 1,968 1,844 3,887 2,931 1,99 Loan losses, net Operating profit 8,713 1, , ,252 2,273 1,974 1,887 3,852 2,956 1,93 Tax expenses -2,419-2, Profit for the period 6,294 8, ,615 1,621 1,635 1,423 1,351 3,187 2,384 1,39 Profit for the period attributable to: Shareholders of Swedbank AB 6,296 8, ,621 1,62 1,633 1,422 1,35 3,185 2,384 1,388 Minority interest Allocated equity 28,391 26, , ,428 27,519 26,723 26,71 26,739 26,177 25,316 Return on allocated equity,% Income items Income from external customers 15,143 18, , ,817 3,816 3,627 3,866 5,74 5,13 3,942 Income from transactions with other business segments 1,83 1, Business volumes, SEK billion Lending Deposits Mutual funds & insurance Other investment volume Investments in associates Risk-weighted assets Total assets Total liabilities Full-time employees 6,251 6,268 6,251 6,236 6,167 6,213 6,268 6,295 6,322 6,457 C/I ratio Loan loss ratio, %

15 Business area report Baltic Banking Operations FY FY Ch. Q4 Ch. Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm % 26 % Net interest income 3,938 3,35 3 1, , Net commission income 1,536 1, Net gains and losses on financial items at fair value Share of the profit or loss of associates Other income Total income 6,561 4, , ,714 1,533 1,359 1,341 1,27 1,187 1,28 Staff costs -1,583-1, IT expenses Other expenses -1, Depreciation/amortization Total expenses -3,31-2, Profit before loan losses 3,53 2, ,89 7 1, Loan losses, net Operating profit 3,229 2, , Tax expenses Profit for the period 2,939 2, Profit for the period attributable to: Shareholders of Swedbank AB 2,939 2, Minority interest Allocated equity 9,98 6, , ,355 9,411 8,331 7,95 7,419 6,453 5,799 Return on allocated equity,% Income items Income from external customers 6,561 4, , ,714 1,533 1,359 1,341 1,27 1,187 1,28 Business volumes, SEK billion Lending Deposits Mutual funds & insurance Investments in associates Risk-weighted assets Total assets Total liabilities Full-time employees 8,442 7, , ,19 7,861 7,459 7,226 6,847 6,497 6,255 C/I-ratio Loan loss ratio, % Baltic Banking Investment FY FY Ch. Q4 Ch. Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm % 26 % Net interest income Net gains and losses on financial items at fair value Total income Other expenses Depreciation/amortization Total expenses Profit before loan losses Loan losses, net 1 1 Operating profit Tax expenses Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Minority interest Allocated equity 7,296 4, ,29 7,32 7,287 7,35 7,294 7,295 4,29-1,371 Return on allocated equity,% neg. neg. neg. neg. neg. neg. neg. neg. neg Income items Commissions paid to other business segments Business volumes, SEK billion Lending Risk-weighted assets Total assets Total liabilities of which amortized revalued lending of which amortized revalued deposits

16 Business area report Swedbank Markets FY FY Ch. Q4 Ch. Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm % 26 % Net interest income Net commission income 1, Net gains and losses on financial items at fair value 1, Share of the profit or loss of associates Other income Total income 3,615 2, , Staff costs -1, IT expenses Other expenses Depreciation/amortization Total expenses -1,994-1, Profit before loan losses 1,621 1, Loan losses, net Operating profit 1,632 1, Tax expenses Profit for the period 1, Profit for the period attributable to: Shareholders of Swedbank AB 1, Minority interest Allocated equity 3,598 3,38 9 3,493 3,57 3,773 3,619 3,659 3,659 3,145 2,769 Return on allocated equity,% Income items Income from external customers 3,319 2, , Income from transactions with other business segments Business volumes, SEK billion Lending Deposits Mutual funds & insurance Other investment volume Investments in associates Risk-weighted assets Total assets Total liabilities Full-time employees C/I ratio Loan loss ratio, % Asset Management and Insurance FY FY Ch. Q4 Ch. Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm % 26 % Net interest income Net commission income 1,61 1, Net gains and losses on financial items at fair value Other income Total income 1,828 1, Staff costs IT expenses Other expenses Depreciation/amortization Total expenses Profit before loan losses 1, Loan losses, net Operating profit 1, Tax expenses Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Allocated equity 1,671 1,669 1,671 1,671 1,672 1,67 1,669 1,669 1,668 1,67 Return on allocated equity,% Income items Income from external customers 3,831 3, Commissions paid to other business segments -2,3-1, Business volumes, SEK billion Mutual funds & insurance Other investment volume Risk-weighted assets 1 1 Total assets Total liabilities Full-time employees C/I ratio

17 Business area report Shared Services and new operations FY FY Ch. Q4 Ch. Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm % 26 % Net interest income Net commission income Net gains and losses on financial items at fair value Share of the profit or loss of associates Other income 3,1 3, Total income 3,583 4, , , , Staff costs -1,368-1, IT expenses Other expenses -1,89-1, Depreciation/amortization Total expenses -3,495-3, Profit before loan losses Loan losses, net Operating profit Tax expenses Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Minority interest Allocated equity 5,491 5, , ,648 4,958 7,17 5,8 2,85 4,429 11,63 Return on allocated equity,% neg neg Income items Income from external customers 896 1, Income from transactions with other business segments 2,687 3, Business volumes, SEK billion Lending Investments in associates 1 1 Risk-weighted assets Total assets Total liabilities Full-time employees 1,697 1, , ,688 1,671 1,671 1,685 1,673 1,656 1,66 C/I ratio Loan loss ratio, % Eliminations FY FY Ch. Q4 Ch. Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm % 26 % Net interest income Net commission income Net gains and losses on financial items at fair value Other income -2,879-2, Total income -2,891-2, Staff costs IT expenses Other expenses 1,99 2, Total expenses 2,891 2, Business volumes, SEKbn Mutual funds & insurance Other investment volume Total assets Total liabilities

18 Balance sheet Balance sheet, Group Dec 31 Dec 31 Dec 31 SEK m Assets Cash and balances with central banks 17,31 12,11 8,16 Treasury bills and other bills eligible for refinancing with central banks etc. 23,24 26,523 16,276 Loans to credit institutions 161,97 152,348 19,674 Loans to the public 946, , ,675 Bonds and other interest-bearing securities 76,576 6,983 64,94 Fund shares for which customers bear the investment risk 65,8 55,8 41,576 Shares and participating interests 5,61 6,462 5,453 Investments in associates 1,971 1,868 1,685 Investments in group entities Derivatives 23,864 32,17 33,15 Intangible fixed assets 15,66 15,574 4,242 of which goodwill 13,793 14,229 3,796 Tangible assets 1,853 1,859 1,84 Current tax assets 14 Deferred tax assets 6 5 Other assets 8,217 3,695 3,226 Prepaid expenses and accrued income 7,68 6,338 6,329 Total assets 1,352,989 1,197,283 1,22,281 Liabilities and equity Liabilities Amounts owed to credit institutions 13,642 11,66 11,924 Deposits and borrowings from the public 4,35 338, ,54 Debt securities in issue etc 561,28 517, ,29 Financial liabilities for which customers bear the investment risk 65,289 55,249 41,58 Derivatives 31,67 3,144 37,663 Current tax liabilities ,383 Deferred tax liabilities 1,424 1,479 1,47 Other liabilities 49,86 41,487 27,63 Accrued expenses and prepaid income 12,813 11,439 1,939 Provisions 4,653 4,5 3,786 Subordinated liabilities 34,425 32,221 26,43 Total liabilities 1,292,712 1,143, ,924 Equity Minority interest ,169 Equity attributable to shareholders of the parent 59,974 53,637 44,188 Total equity 6,277 53,869 47,357 SEKbn Loans, Private individuals, 11 Other loans to the public, 293 Mortgage loans, 552 Credit institutions, 161 Bonds/interest-bearing securities, 1 Derivatives, 24 Other assets, 122 Household deposits, 223 Other deposits from the public, 177 Debt securities in issue, 561 Credit institutions, 131 Derivatives, 32 Other liabilities, 169 Shareholders' equity, 6 Total liabilities and equity 1,352,989 1,197,283 1,22,281 18

19 Interest rates % Interest rates, Sweden and Eurozone Jun/3 Sep/3 Dec/3 Mar/4 Jun/4 Sep/4 Dec/4 Mar/5 Jun/5 Sep/5 Dec/5 Mar/6 1-year Swap (SWE) 9 day Euribor 9 days STIBOR (SWE) Reporate (SWE) Jun/6 Sep/6 Dec/6 % Interest rates, Estonia, Latvia, Lithuania and Eurozone Jun/3 Sep/3 Dec/3 Mar/4 Jun/4 Sep/4 Dec/4 Mar/5 Jun/5 Sep/5 Dec/5 Mar/6 Jun/6 Sep/6 9 days Rigibor (Latvia) 9 days Talibor (Estonia) 9 day Euribor 9 days Vilibor (Lithuania) Dec/6 Official deposit rates, Sweden Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Household deposits Private accounts SEK - 15, SEK 15, e-savings account Savings capital accounts SEK - 5, SEK 5, SEK - 1, SEK 1, Official mortgage rates, Sweden Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Swedbank Mortgage months year year

20 Funding, interest rate risk and capital adequacy Maturity distribution, Swedbank Mortgage's lending, 31 December 26 Fair value SEKm <3 mos. 3-6 mos. 6-9 mos mos. 1-2 yrs. 2-3 yrs. 3-4 yrs. 4-5 yrs. > 5 yrs. addition Total Retail 159,832 12,339 14,315 12,436 57,77 39,918 37,159 22,531 16, ,963 Other 49,578 4,916 6,498 5,147 21,65 18,141 14,113 8,75 9, ,516 Total 29,41 17,255 2,813 17,583 79,42 58,59 51,272 31,281 26,553-1,167 51,479 Maturity distribution, Swedbank Mortgage's funding, 31 December 26, nominal amount SEKm <3 mos. 3-6 mos. 6-9 mos mos. 1-2 yrs. 2-3 yrs. 3-4 yrs. 4-5 yrs. > 5 yrs. Total Other 18,518 74,43 34,141 22, ,657 56,855 45,24 33,75 14, ,797 Total 18,518 74,43 34,141 22, ,657 56,855 45,24 33,75 14, ,797 Effect on value of assets and liabilities in SEK and foreign currency, including derivatives if interest rates increase by 1 b.p., 31 December 26 SEKm <3 mos. 3-6 mos.6-12 mos. 1-2 yrs. 2-3 yrs. 3-4 yrs. 4-5 yrs. 5-1 yrs. >1 yrs. Total The Group ,623 of which foreign currency of which financial current assets at fair value, the Group of which foreign currency Capital adequacy, Swedbank Group SEKm Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec Tier 1 capital 41,931 39,424 37,346 35,12 33,947 32,885 29,227 31,868 38,469 Hybrid tier 1 capital 5,566 5,877 5,611 6,179 5,992 5,84 5,159 4,78 4,526 Total tier 1 capital 47,497 45,31 42,957 41,191 39,939 38,689 34,386 36,648 42,995 Tier 1 capital ratio, % Subordinated loans 21,82 22,13 19,26 16,849 15,272 15,213 15,774 16,681 13,869 Undated subordinated loans 4,265 5,473 7,27 7,475 8,12 8,132 8,239 7,74 6,165 Total tier 2 capital 26,67 27,486 26,233 24,324 23,374 23,345 24,13 23,755 2,34 Settlements, equities, etc -2,634-2,276-3,81-3,965-3,945-3,762-4,4-3,79-3,19 Expanded portion of capital base Total capital base (tier 3) 7,93 7,511 66,19 61,55 59,729 58,955 55,239 57,557 6,74 Total capital ratio, % RWA credit risks 78, , , ,81 59,261 57, ,45 526,434 53,172 RWA market risks 18,497 18,675 2,513 2,235 25,791 22,848 28,5 21,24 21,378 Total RWA 726,712 7,38 663, ,45 616,52 593,79 591, , ,55 2

21 Impaired loans of total lending:.7 percent (.12) Impaired loans gross decreased by 26 percent to SEK 1,634m (2,219) Provision ratio for impaired loans increased to 195 percent (171) Loan losses decreased to SEK -25m (294) Loan loss ratio decreased to net -.2 percent (.4) (Figures in brackets refer to 31 December 25) Asset quality Group lending by collateral 31 December 26 (31 December 25) Unsecured 9% (8) Chattel mortgages 1% (2) Other properties 15% (14) Other collateral 8% (7) Personal guarantee 2% (2) Municipalities and county councils 5% (6) Residential properties incl. Condominiums 6% (61) Credit risks, Group Book Specific Collective Provisions Book value Book value Sector/Industry value before provisions provisions for of for impaired 31 December 26 provisions for for collectively claims loans SEKm individually individually valued after (past due assessed assessed homogenous provisions loans) claims claims groups Private individuals 48, , Real estate management 191, , Retail, hotels, restaurants 34, , Construction 13, , Manufacturing 3, ,54 15 Transportation 16, ,52 43 Forestry and agriculture 45, , Other service businesses 36, , Other corporate lending 59, , Municipalities 13,949 13,949 Lending 922, , , Credit institutions* 78, ,47 Repos, Credit institutions* 91,227 91,227 Repos, public 18,865 18,865 Total lending to credit institutions and the public 1,11, , ,17, * incl. National Debt Office Credit exposure, book value Dec 31 Dec 31 Change Change SEKm SEKm % Sweden 921, ,16 95, OECD countries* 173, ,347 1,45 1 of which Denmark 19,478 21,442-1,964-9 of which Norway 22,38 14,16 8, of which Finland 4,37 4, Baltic region 134,855 95,372 39, of which Estonia 57,56 42,757 14,83 35 of which Latvia 42,38 25,84 16, of which Lithuania 35,257 26,811 8, Russia 8,17 4,648 3, Latin America of which Brazil Japan 4,197 2,212 1,985 9 Rest of East Asia 1,439 1, of which South Korea of which China Other countries 4,43 3, Total 1,248,68 1,16, , * excluding Sweden, Japan, Hungary, Mexico, Poland, Turkey, Slovakia, South Korea and the Czech Republic 21

22 Asset quality Loan losses, quarterly trends Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm Loan losses, Group Write-offs Provisions Recoveries Change in value of property taken over 4 17 Total Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Loan losses by business area Swedish Banking Baltic Banking Operations Swedbank Markets Shared Services and new operations Total Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Loan losses by sector Private individuals Real estate management Retail, hotels, restaurants Construction Manufacturing Transportation Forestry and agriculture Other service businesses Other corporate lending Other Total Impaired loans by business area Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 SEKm Impaired loans gross Swedish Banking 1,143 1,295 1,311 1,428 1,645 1,682 1,68 2,87 2,138 Baltic Banking Operations Swedbank Markets Shared Services and new operations Total 1,634 1,836 1,95 1,97 2,219 2,495 2,261 2,619 2,579 Impaired loan provisions Swedish Banking 1,87 2,81 2,36 2,54 2,652 2,911 2,882 3,99 3,11 Baltic Banking Operations 1,239 1,215 1,123 1, Swedbank Markets Shared Services and new operations Total 3,183 3,431 3,565 3,694 3,784 3,966 3,879 3,946 3,96 Impaired loans, net Swedish Banking ,76-1,7-1,229-1,22-1, Baltic Banking Operations Swedbank Markets -1 Shared Services and new operations Total -1,549-1,595-1,66-1,724-1,565-1,471-1,618-1,327-1,327 22

23 Organisation and credit limit structure Group operational structure * Board of Directors President and CEO Internal Audit Staffs Swedish Banking Baltic Banking Swedbank Markets Shared Services Strategic and International Banking Retail and corporate banking including asset management: Northern Region Mälardalen Region Easter Region Western Region Öresund Region Customer Offerings and Products Swedbank Robur Savings Banks Business Retail and corporate banking including asset management: Estonia Latvia Lithuania Corporate banking: Russia Investment and merchant banking, customer responsibility for financial Institutions: Swedbank Markets, Sweden First Securities, Oslo Swedbank First Securities, New York Swedbank Shanghai IT development, Sweden IT operations, Sweden Common support functions Swedbank Luxembourg (banking for Swedish expatriates) Swedbank Copenhagen Swedbank Helsinki Swedbank Oslo Swedbank Tokyo Swedbank Kiev Swedbank Marbella * In the reportes business areas on page 14-17, Swedbank Robur and its subsidiaries are reported as the separate business area Asset Management and Insurance". Also, Shared Services and Strategic and International Banking are reported together as the business area "Shared Services and New Operations". Group Executive Management Jan Lidén, President and CEO. Gith Bengtsson, Employee representative. Giedrius Dusevicius CEO of AB Bankas Hansabankas Anders Ek, EVP, Head of Strategic and International Banking. Kjell Hedman, EVP, Head of Customer Offerings and Products. Mikael Inglander, CFO and Head of Group Staffs. Catrin Fransson, EVP, Deputy Head of Swedish Banking and Manager of the Northern Region. Erkki Raasuke CEO Hansabank and Head of Baltic Banking. Annika Wijkström, EVP, Head of Swedbank Markets. Credit limit structure Board of directors Board credit committee Unlimited SEK 6.5bn Central/SBU level Swedish group SEK 6bn Baltic Banking - central level SEK 9m Baltic Banking - country level SEK 9m Russia SEK 1m Local level Swedish Banking SEK 3/4m Baltic Banking - Estonia SEK 5m Baltic Banking - Latvia SEK 7m Baltic Banking - Lithuania SEK 5m 23