Facts. Q3, 2006 October 26, 2006

Transcription

1 Facts October 26, 26

2 Contents page 1. Market position 2 2. Strategy 4 3. Financial targets 5 4. Savings and investments 6 5. Lending 7 6. Profit trend and key figures 8 7. Income 1 8. Expenses Profit per business area Balance sheet Interest rates Funding and interest rate risks Asset quality Organization structure Owners and shares 23

3 1. Market position Our customer base Product range and market position, Sweden Households Public sector Group excluding Group excluding Baltic Banking 4.1 million Baltic Banking 219 municipalities Group excluding Baltic Banking 4.7 million Baltic Banking 22 county councils Authorities Companies Group excluding Baltic Banking Baltic Banking 254, 193, Swedbank Nationwide organizations Unions Cooperative Religious 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 Swedbank Swedbank Profit for the period Lending 769 (763) branches 17,111 (16,148) employees 8.8 (8.8) M private customers 447, (436,) corporate customers 1,976 (1,939) ATM's 4.1 (3.7) M Internet banking customers 2.9 (2.7) M Telephone banking customers Baltic Banking 26% Customers Baltic Banking 53% Baltic Banking 14% Group excluding Baltic Banking 74% Baltic Banking 38% Branches Group excluding Baltic Banking 86% (Figures in brackets refer to December 31, 25) Group excluding Baltic Banking 47% Group excluding Baltic Banking 62% Products sold per private customer in Sweden Number of customers, thousand 1,2 1, Products sold per corporate customer in Sweden Average number of Average number of products products Numbers of Q customers, Q Q thousand Q Q Q Q Q Q Q Q Q Q Q Q Q >1 Q4, >1 Q4, 24 2

4 1. Market position Market shares, Swedish retail market Sep 3, 26 Sep 3, 26 Market shares, Baltic retail market % 4 % 6 Estonia Estonia Latvia Lithuania Latvia Lithuania Total lending* Mortgage Deposits Fund management** Retail bonds Total lending Deposits * as of Aug 31, 26 ** as of June 3, 26 Giro accounts, Swedbank Including savings banks and partly owned banks Number of private customers with giro, thousand Bank cards, Swedbank Including savings banks and partly owned banks Number of cards, thousand Quarterly transactions, million 5, 3,5 25 4,5 4, 3,5 3, 2,5 2, 3, 2,5 2, 1, ,5 1, 5 1, 5 5 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Swedbank excl Baltic Banking Purchases, million Baltic Banking Acquiring, million Internet bank, Swedbank Including savings banks and partly owned banks Number of customers, thousand 2,5 Number of payments, million 5 2,25 2, , ,5 3 1,25 1, Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Mar-4 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Giro (paper), Sweden Giro via Internet, Baltic Banking Giro via Internet, Sweden Numbers of Internet customers in Sweden Number of Internet customers in Baltic Banking Payments 3

5 2. Strategy 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 having in each home market: the highest level of customer satisfaction, the best profitability, and be the most attractive employer Values We believe that the Group s healthy profits and increased international recognition are the result of a performanceorientated culture, clear and transparent communication, a willingness to change, and the strong commitment of our employees. Home markets, universal banking Sweden - Swedbank Estonia - Hansabank Latvia - Hansabank Lithuania - Hansabank Other markets, niche banking Denmark - Swedbank branch Finland - Swedbank branch Norway - Swedbank branch, investment banking through First Securities (51% owned) Russia - Corporate banking and leasing in Moscow, Kaliningrad and St Petersburg 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 Collaboration/alliances Finland - 1.1% ownership in Aktia 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 4

6 3. Financial targets Financial targets The Group's return on equity shall exceed the average of all other large, publicly listed Nordic banks (Handelsbanken, SEB, Nordea, Danske Bank and DnB NOR) and be at least 2 percent higher than the longterm risk-free interest rate plus a normal risk premium. The Group's C/I ratio shall not exceed.5. The primary capital ratio (tier 1) shall be 7 percent over the long term. At least 4 percent of net profit shall be distributed to the shareholders as dividend. % Return on equity Capital adequacy Jan - Sep 26 Nordic peers The peer group consists of SEB, Nordea, SHB, DnB NOR and Danske Bank Cost/Income ratio Swedbank % Q2-4 Q3-4 Q4-4 Q1-5 Q2-5 Q3-5 Actual capital adequacy ratio Target primary capital ratio Q4-5 Q1-6 Q2-6 Q3-6 Primary capital ratio Target. Adjusted Q4- according Q1- to IFRS Q2- from Q3- Q1, 24 Q Q1-3 Q2-3 Q3-3 Q4-3 Q1-4 Q2-4 Q3-4 Q4-4 Q1-5 Q2-5 Q3-5 Q4-5 Q1-6 Q2-6 Q3-6 Adjusted according to IFRS as of Q1, 24 Dividend SEK/Share Dividend ratio % Dividend per share Dividend ratio 5

7 4. Savings and investments Market shares, total fund assets in Sweden Baltic Banking - deposits June 3, 26 (December 31, 25) September 3, 26 (December 31, 25) Others 26.4% (25.3) Länsförsäkringar 4.% (4.1) SHB 13.8% (13.7) Nordea 13.6% (14.4) Robur 25.7% (26.5) SEB 16.5% (16.) Lithuania 3% (32) Latvia 24% (24) Russia 1% (1) Estonia 45% (43) New savings, net Q3 Q2 Q1 Q4 Q3 SEK bn Bank deposits, households Net fund and insurance investments Retail bonds Subtotal households Bank deposits, corporate and other Other sales of Robur funds Total Savings banks and jointly owned banks Baltic Banking -deposits* Baltic Banking -fund and insurance Total new savings, net * excluding exchange rate fluctuation Deposits from the public Sep 3 Change Change Jun 3 Dec 31 Sep 3 Volumes, SEK bn 26 3 mon % 12 mon % Households, SEK Households, foreign currency Other, SEK Other, foreign currency Total Discretionary asset management Fund assets under management of which unit-linked insurance in own companies Retail bonds and other bonds Total Deposits from the public Jan-Sep Jan-Sep Full year Full year Full year Net flow, SEK bn Household deposits Other deposits, SEK Other deposits, foreign currency Fund management, net savings Fund-allocated insurance, new policies Retail bonds

8 5. Lending SEK bn 3,5 Bank lending, Sweden 3, 2,5 2, 1,5 Banks Mortgage Institutions 1, 5 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 Lending, excl. repurchase agreements Source: Statistics Sweden (Statistiska centralbyrån, SCB) Aug 31, 26 Swedbank Mortgage's loan portfolio Sep 3, 26 (December 31, 25) Sep 3, 26 (December 31, 25) SEK 89.7 bn (795.7) SEK bn (472.1) Real estate mgmt 2% (2) Municipalities 2% (2) Swedbank Mortgage, private individuals 41% (43) Multi-family housing 17% (18) Agriculture 6% (6) Businesses excl. real estate mgmt 26% (25) Bank lending, private individuals 5% (5) Private individuals, other 1% (1) Hansabank, private individuals 5% (4) Single-family homes 61% (6) Business properties 1% (1) Municipal loans and guarantees 4% (5) Individual condominiums 11% (1) Lending Sep 3 Change Change Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Jan 1 SEK bn 26 3 mon % 12 mon % Private individuals of which Swedbank Mortgage Real estate management Corporate Municipalities * Total lending to the public Credit institutions, incl. The Swedish National Debt Office Repurchase agreements Total lending 1, ,43.4 1, * not including municipal companies Lending Sep 3 Change Change Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Jan 1 SEK bn 26 3 mon % 12 mon % Sweden Estonia Latvia Lithuania Other Total

9 6. Profit trend and key figures Change in net interest income Jan-Sep, 26 vs. Jan-Sep, 25 Change in net commission income Jan-Sep, 26 vs. Jan-Sep, 25 Swedish Banking -159 Payment processing 249 Baltic Banking Operations 247 Brokerage 263 Baltic Banking Investments -3 Lending 251 Swedbank Markets -1 Asset management 496 Asset Management and Insurance 4 First Securities 42 Shared Services and new operations 144 Other -368 Eliminations -17 Kundinkasso KIAB AB and EnterCard -25 Total 35 Total 1,286 Profit trend Jan-Sep Jan-Sep Change Full year SEK M % 25 Net interest income 11,455 11, ,539 Net commission income 6,56 5, ,17 Net gains and losses on financial items at fair value 2,49 1, ,957 Net insurance Share of the profit or loss of associates Other income 789 3, ,339 Total income 21,285 22, ,46 Staff costs -6,38-6,82 5-8,191 Other general administrative expenses -4,196-3, ,362 Depreciation/amortization and impairment of tangible and intangible fixed assets Total expenses -11,42-1, ,156 Profit before loan losses 1,243 12, ,34 Loan losses Operating profit 1,376 11, ,1 Tax expense -2,283-2,16 8-2,781 Profit for the period 8,93 9, ,229 Attributable to: Shareholders of Swedbank AB 7,967 9, ,879 Minority interest Sep 3 Sep 3 Dec 31 Key figures Return on equity, % * Return on total assets,% Loan loss ratio, net, % Total provision ratio for impaired loans, % Capital adequacy ratio, % Primary capital ratio, % C/I ratio before loan losses Interest margin, % Investment margin,% Risk weighted amount/total assets, % Earnings per share, SEK Cash dividend per share, SEK 7.5 * based on equity attributable to Swedbank's shareholders Balance sheet data Sep 3 Sep 3 Change Dec 31 SEK M % 25 Total lending 1,1, , ,773 of which mortgage lending 499, , ,58 Deposits and borrowings from the public 39, , ,894 Equity 58,31 51, ,869 Minority interest Shareholders' equity 57,649 5, ,637 Total assets 1,341,415 1,163,7 15 1,197,283 Total risk weighted amount for credit risks and market risks 7,38 593, ,52 8

10 6. Profit trend and key figures Quarterly profit trend SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Q4 4 Net interest income 3,895 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 757 1, , Net insurance Share of the profit or loss of associates Other income ,677 1, 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 -3,49-3,92-3,65-3,717-3,364-3,742-3,333-3,376 Profit before loan losses 3,674 3,676 2,893 3,28 5,34 4,49 2,941 3,21 Loan losses Operating profit 3,741 3,792 2,843 3,279 4,937 3,952 2,842 2,922 Tax expense Profit from continuing operations 2,935 2,854 2,34 2,64 4,12 3,216 2,289 2,235 Profit from discontinued operations after tax 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 1, ,21 1,178 1,269 1,22 1,344 1,319 Quarterly development excluding non-recurring income/expenses SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Q4 4 Capital gains/losses 1-1, Change in fair value, SpareBank 1 Gruppen -342 Profit-based staff costs Costs for personnel changes Profit effect from IAS Total , Operating profit 3,741 3,792 2,843 3,279 4,937 3,952 2,842 2,922 Operating profit excluding items affecting comparability 3,91 3,523 3,319 3,486 3,625 3,123 3,28 3,174 Share of the profit or loss of associates before tax SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Q4 4 Färs & Frosta Sparbank FöreningsSparbanken Sjuhärad Other jointly owned banks in Sweden BGC-Holding EnterCard Holding VPC Other companies First Securities Aktia 12 Total

11 7. Income Income, quarterly trends SEK M 9, 8, 7, 6, 5, 4, 3, 2, 1, Q4 4 Q1 5 Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Q3 6 Net interest income Net commission income Financial items Other Group income SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Q4 4 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 3,895 3,783 3,777 3,712 3,86 4,28 3,939 4,39 Commission income Payment processing commissions Lending commissions Brokerage Asset management Other securities commissions 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 commissions Securities commissions 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 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 757 1, , Other income Net insurance Real estate income IT services Share of the profit or loss of associates Other , Total ,839 1, Total income 7,164 7,578 6,543 6,997 8,398 7,791 6,274 6,397 1

12 8. Expenses Cost development Quarterly expenses SEK M 4, SEK M 4,5 3,5 4, 3, 2,5 2, 1,5 1, 3,5 3, 2,5 2, 1,5 1, 5 5 Q2 4 Q3 4 Q4 4 Q1 5 Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Q3 6 Q2 4 Q3 4 Q4 4 Q1 5 Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Q3 6 Total expenses Group excl. Baltic Banking Operations Baltic Banking Operations Staff costs Other expenses Group expenses SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Q4 4 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 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, 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 -3,49-3,92-3,65-3,717-3,364-3,742-3,333-3,376 of which Baltic Banking Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Number of full-time positions Group excluding Baltic Banking 8,921 8,83 8,836 8,922 8,95 8,911 8,932 9,87 of which First Securities 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 11

13 9. Profit per business area 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 equtiy 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 Swedish Banking comprises the Telephone bank and the Internet bank as well as the subsidiaries Swedbank Mortage and FöreningsSparbanken Finans, whose products are sold through Swedbank and the cooperating savings banks distribution network. The subsidiaries FöreningsSparbanken Fastighetsbyrå (real estate brokerage), FöreningsSparbanken Juristbyrå (legal services) and Swedbank Företagsförmedling (company sales) operate according to a franchise concept. Swedish Banking SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Net interest income 2,948 2,85 2,752 2,924 3,17 3,115 3,169 Net commission income 991 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 , Total income 4,187 4,277 4,114 4,224 6,54 5,425 4,246 Staff costs -1,1-1,38-1, -1,125-1,55-1,188-1,45 IT expenses Other expenses , ,91-1,1 Depreciation/amortization Total expenses -2,68-2,195-2,146-2,38-2,167-2,494-2,256 Profit before loan losses 2,119 2,82 1,968 1,844 3,887 2,931 1,99 Loan losses Operating profit 2,263 2,273 1,974 1,887 3,852 2,956 1,93 Tax expense Profit for the period 1,629 1,635 1,423 1,351 3,187 2,384 1,39 Profit for the period attributable to: Shareholders of Swedbank AB 1,628 1,633 1,422 1,35 3,185 2,384 1,388 Minority Allocated equity 29,428 27,519 26,723 26,71 26,739 26,177 25,316 Return on allocated equity,% Income items Income from external customers 3,817 3,816 3,627 3,866 5,74 5,13 3,942 Income from transactions with other business segments Business volumes, SEK billion Lending Deposits Mutual funds & insurance Other investment volume Investments in associates Risk-weighted volume Total assets Total liabilities Full-time employees 6,236 6,167 6,213 6,268 6,295 6,322 6,457 C/I ratio Loan loss ratio, % neg. neg.. neg..2 neg..4 12

14 9. Profit per business area Baltic Banking Operations Baltic Banking Operations is defined as the subsidiary Hansabank, including an adjustment for lower allocated equity compared with Hansabank s statutory equity. The adjustment is made in accordance with estimated equity needs. From this follows an adjustment compared with reports Hansabank publishes. Hansabank has business operations in Estonia, Latvia, Lithuania and Russia. Baltic Banking Operations SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Net interest income 1, Net commission income Net gains and losses on financial items at fair value Share of the profit or loss of associates Other income Total income 1,714 1,533 1,359 1,341 1,27 1,187 1,28 Staff costs IT expenses Other expenses Depreciation/amortization Total expenses Profit before loan losses 1, Loan losses Operating profit Tax expense Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Minority 1 1 Allocated equity 1,355 9,411 8,331 7,95 7,419 6,453 5,799 Return on allocated equity,% Income items Income from external customers 1,714 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 volume Total assets Total liabilities Full-time employees 8,19 7,861 7,459 7,226 6,847 6,497 6,255 C/I-ratio Loan loss ratio, % Baltic Banking Investment The effect of Swedbank s acquisition and ownership of Hansabank is reported in Baltic Banking Investments. These effects include goodwill, deduction of minority interest, the equity during the period the subsidary was not whollyowned and the amortization of the revalued loan portfolio identified during the acquisition in 25. Baltic Banking Investment SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 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 1 Operating profit Tax expense Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Minority Allocated equity 7,32 7,287 7,35 7,294 7,295 4,29-1,371 Return on allocated equity,% neg. neg. neg. neg. neg. neg Income items Commissions paid to other business segments Business volumes, SEK billion Lending Risk-weighted volume Total assets Total liabilities

15 9. Profit per business area Swedbank Markets Swedbank Markets comprises capital market products and various types of project and corporate finance. It also has customer responsibility for financial institutions. In addition to operations in Sweden, the business area includes the international branch in New York, First Securities in Norway and the representative office in Shanghai. During the first quarter of 25 First Securities was consolidated using the equity method, which means that the net of income and expenses was accounted for in the share of profit/loss of associates. As of June 25 First Securities was consolidated as a subsidiary, resulting in a change to gross accounting of income and expenses in the profit and loss account. Swedbank Markets SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 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 Total income 72 1, Staff costs IT expenses Other expenses Depreciation/amortization Total expenses Profit before loan losses Loan losses Operating profit Tax expense Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Minority Allocated equity 3,57 3,773 3,619 3,659 3,659 3,145 2,769 Return on allocated equity,% Income items Income from external customers 646 1, Income from transactions with other business segments Business volumes, SEK billion Lending Deposits Mutual funds & insurance Other investment volume Investments in associates Risk-weighted volume Total assets Total liabilities Full-time employees C/I ratio Loan loss ratio, % neg.. neg. neg. neg Asset Management and Insurance Asset Management and Insurance comprises the Robur Group and its operations in fund management, institutional and discretionary asset management, insurance and individual pension savings. Asset Management and Insurance SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Net interest income Net commission income Net gains and losses on financial items at fair value Other income Total income Staff costs IT expenses Other expenses Depreciation/amortization Total expenses Profit before loan losses Loan losses Operating profit Tax expense Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Allocated equity 1,671 1,672 1,67 1,669 1,669 1,668 1,67 Return on allocated equity,% Income items Income from external customers Commissions paid to other business segments Business volumes, SEK billion Mutual funds & insurance Other investment volume Risk-weighted volume Total assets Total liabilities Full-time employees C/I ratio

16 9. Profit per business area Shared Services and new operations The business area includes IT and other service functions, Treasury, Group Staffs, the Group s own insurance company, Sparia, the international branches in Norway, Finland and Denmark, the representative office in Tokyo, the primary capital certificates in the Norwegian savings banks and the shareholding in SpareBank 1 Gruppen (up to Q2 26). Eliminations Shared Services and new operations SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 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 Total income 867 1, , , Staff costs IT expenses Other expenses Depreciation/amortization Total expenses Profit before loan losses Loan losses Operating profit Tax expense Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Minority Allocated equity 4,648 4,958 7,17 5,8 2,85 4,429 11,63 Return on allocated equity,% neg Income items Income from external customers Income from transactions with other business segments Business volumes, SEK billion Lending Investments in associates 1 1 Risk-weighted volume Total assets Total liabilities Full-time employees 1,688 1,671 1,671 1,685 1,673 1,656 1,66 C/I ratio Loan loss ratio, % neg. neg neg. 3.2 neg. Eliminations SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Net interest income Net commission income Net gains and losses on financial items at fair value Other income Total income Staff costs IT expenses Other expenses Total expenses Business volumes, SEK bn Mutual funds & insurance Other investment volume Total assets Total liabilities

17 1. Balance sheet Balance sheet Sep 3, 26 Balance sheet Sep 3 Dec 31 Sep 3 SEK M Loans to credit institutions 158, ,348 13,64 Loans to the public 941, ,425 85,977 Bonds/interest-bearing securities 97,716 87,56 85,711 Shares and participating interests 66,819 63,338 59,254 for which customers bear the investment risk 61,386 55,8 52,777 Derivatives 24,319 32,17 37,793 Other assets 52,164 39,496 43,632 Total assets 1,341,415 1,197,283 1,163,7 Amounts owed to credit institutions 123,638 11,66 125,495 Deposits and borrowings from the public 39, , ,178 Debt securities in issue 582,5 517, ,54 Financial iabilities for which the customers bear the investment risk 61,582 55,249 52,826 Derivatives 24,26 3,144 35,744 Other liabilities and provisions 65,399 59,258 51,632 Subordinated liabilities 36,24 32,221 31,94 Equity 58,31 53,869 51,138 Minority interest Shareholders' equity 57,649 53,637 5,939 Total liabilities, provisions and shareholders' equity 1,341,415 1,197,283 1,163,7 SEK bn Loans, Private individuals, 94 Other loans to the public, 347 Mortgage loans, 5 Credit institutions, 159 Bonds/interest-bearing securities, 98 Derivatives, 24 Other assets, 119 Household deposits, 215 Other deposits from the public, 175 Debt securities in issue, 582 Credit institutions, 124 Derivatives, 24 Other liabilities, 163 Shareholders' equity, 58 Lending Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Jan 1 SEK bn Private individuals of which Swedbank Mortgage Real estate management Retail, hotels, restaurants Construction Manufacturing Transportation Forestry and agriculture Other service businesses Other corporate lending Municipalities * Total lending to the public Credit institutions incl. The Swedish National Debt Office Repurchase agreements Total lending 1,1.4 1,43.4 1, * Not including municipal companies Deposits * Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 SEK bn Transaction accounts Savings accounts Overnight deposits Other Currency deposits Total deposits from the public * the definition of savings and transaction accounts has been changed since last quarter 16

18 11. Interest rates Interest rates 6 % 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 1-year Swap 9 days STIBOR (Sweden) 9 days Talibor (Estonia) 9 days Rigibor (Latvia) 9 days Valibor (Lithuania) 9 day Euribor Published rates, 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, Fixed rate deposits 3-months year year year * as of February 2nd, 26 Published rates Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 Swedbank Mortgage months year year

19 12. Funding and interest rate risk Maturity distribution, Swedbank Mortgage's lending, Sep 3, 26 Fair value SEK M <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 148,926 17,28 12,685 14,775 58,17 36,673 34,553 22,81 15, ,785 Other 48,623 8,67 5,4 6,376 21,669 17,59 13,461 9,155 9, ,874 Total 197,549 25,95 17,689 21,151 79,839 53,732 48,14 31,956 24, ,659 Maturity distribution, Swedbank Mortgage's funding, Sep 3, 26, nominal amount SEK M <3 mos. 3-6 mos. 6-9 mos mos. 1-2 yrs. 2-3 yrs. 3-4 yrs. 4-5 yrs. > 5 yrs. Total Private Other 118,527 26,64 71,957 34,33 13,229 61,17 46,57 16,924 13, ,94 Total 118,527 26,64 71,957 34,33 13,229 61,17 46,57 16,924 13, ,94 Funding and capital structure, Sep 3, 26 Primary Capital Undated Supple- Risk- capital adequacy Debt of which Subordinated subordinated Primary mentary weighted ratio ratio SEK M securities bonds loans loans capital capital assets % % Swedbank AB 157, ,875 22,577 11,298 37,673 24, , Swedbank Mortgage 428,39 314,953 2,367 24,25 2, , The Group 582,5 428,476 24,942 11,298 45,31 27,486 7, Effect on value of assets and liabilities in SEK and foreign currency, including derivatives if interest rates increase by 1 b.p., Sep 3, 26 SEK M <3 mos. 3-6 mos mos. 1-2 yrs. 2-3 yrs. 3-4 yrs. 4-5 yrs. 5-1 yrs. >1 yrs. Total Total the Group ,534 of which foreign currency of which financial current assets at fair value, the Group of which foreign currency

20 13. Asset quality Impaired loans of total lending:.9 percent (.16) Impaired loans gross decreased by 26 percent to SEK 1,836 M (2,495) Provision ratio for doubtful claims increased to 187 percent (159) Loan losses decreased to SEK -133 M (293) Loan loss level decreased to net -.2 percent (.5) Group lending by collateral Sep 3, 26 (December 31, 25) Unsecured 9% (8) Chattel mortgages 2% (2) Personal guarantee 2% (2) Municipalities and county councils 5% (6) (Figures in brackets refer to Sep 3, 25) Other properties 15% (14) Other collateral 8% (7) Residential properties incl. Condominiums 59% (61) Book Specific Collective Provisions for Book value of Book value Book value value before provisions provisions collectively claims after for impaired of unsettled Credit risks provisions for individually for individually valued provisions loans claims for Group assessed assessed homogenous (past due which interest Sector/Industry claims claims groups loans) has been Sep 3, 26 SEK M recognized as income Private individuals 462, , Real estate management 179, , Retail, hotels, restaurants 33, , Construction 12, , Manufacturing 29, , Transportation 16, , Forestry and agriculture 45, , Other service businesses 34, , Other corporate lending 65, , Municipalities* 13,85 13,85 Lending 894, , , Credit institutions incl. National Debt Office Repurchase agreements - Credit 73, ,121 institutions incl. National Debt Office 95,272 95,272 Repurchase agreements - public 41,296 41,296 Total lending to credit institutions and the public 1,13, , ,1, * not including municipal companies Credit exposure Sep 3 Dec 31 Change Change SEK M, book value % Sweden 923, ,16 97, OECD countries* 173, , of which Denmark 17,877 22,34-4,463-2 of which Norway 22,71 14,16 8,64 61 Baltic region 128,634 95,372 33, of which Estonia 56,568 42,757 13, of which Latvia 37,96 25,84 12,12 47 of which Lithuania 34,16 26,811 7, Russia 6,563 4,648 1, Latin America of which Brazil Japan 4,459 2,212 2,247 Rest of East Asia 1,574 1, of which South Korea of which China Other countries 4,96 3,578 1, Total 1,243,622 1,16, , * excluding Sweden, Japan, Hungary, Mexico, Poland, Turkey, Slovakia, South Korea and the Czech Republic 19

21 13. Asset quality Loan losses, quarterly trends SEK M Q3 6 Q2 6 Q1 6 Q4 5 Q3 5 Q2 5 Q1 5 Q4 4 Loan losses, Group Write-off Provisions Recoveries Change in value of property taken over 4 17 Total Loan losses by business area Swedish Banking Baltic Banking Swedbank Markets Shared Services and new operations Total 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 Sep 3 Jun 3 Mar 31 Dec 31 Sep 3 Jun 3 Mar 31 Dec 31 SEK M Impaired loans gross Swedish Banking 1,295 1,311 1,428 1,645 1,682 1,68 2,87 2,138 Baltic Banking Swedbank Markets Shared Services and new operations Total 1,836 1,95 1,97 2,219 2,495 2,261 2,619 2,579 Impaired loan provisions Swedish Banking 2,81 2,36 2,54 2,652 2,911 2,882 3,99 3,11 Baltic Banking 1,215 1,123 1, Swedbank Markets Shared Services and new operations Total 3,431 3,565 3,694 3,784 3,966 3,879 3,946 3,96 Impaired loans, net Swedish Banking ,76-1,9-1,17-1, Baltic Banking Swedbank Markets Shared Services and new operations Total -1,595-1,66-1,724-1,565-1,471-1,618-1,327-1,327 2

22 14. Organization structure Group operational structure Board of Directors President and CEO Internal Audit Staffs Swedish Banking Retail and corporate banking including asset management: North Region Mälardalen Region East Region West Region Öresund Region Customer Offerings and Products Baltic Banking Retail and corporate banking including asset management: Estonia Latvia Lithuania Corporate banking: Russia Swedbank Markets Investment and merchant banking, customer responsibility for financial Institutions: Swedbank Markets, Sweden First Securities, Norway Swedbank New York Swedbank Shanghai Shared Services IT development, Sweden IT operations, Sweden Common support functions Strategic and International Banking Swedbank Luxembourg (banking for Swedish expatriates) Swedbank Copenhagen Swedbank Helsinki Swedbank Oslo Swedbank Tokyo Savings banks business Group legal structure FöreningsSparbanken Swedbank AB AB AS Hansapank Swedbank Mortgage AB Robur AB Swedbank Luxemburg S.A. Sparia Försäkrings AB banken Finans FöreningsSpar- AB FöreningsSparbanken Juristbyrå AB FöreningsSparbanken Fastighetsbyrå AB Swedbank Företags- förmedling AB AS Hansabanka (Latvia) AB Bankas Hansabankas (Lihuania) Hansabank OAO (Russia) Swedbank Jordbrukskredit AB Robur Försäkring AB FöreningsSparbanken Öland AB (6%) Robur Kapitalförvaltning AB Robur Fonder AB Allround AB First Securities ASA (51%) EnterCard Holding AB (6%) Eskilstuna Rekarne Sparbank AB (5%) Babs Paylink AB (49%) Bergslagens Sparbank AB (48%) FöreningsSparbanken Sjuhärad AB (48%) FöreningsSparbanken Söderhamn AB (4%) Vimmerby Sparbank AB (4%) DocHotel i Stockholm AB (33%) Färs och Frosta Sparbank AB (3%) - BGC-Holding AB (29%) Finansiell ID-Teknik AB (28%) Privatgirot AB (22%) CEKAB (21%) VPC AB (2%) 21

23 14. Organization structure Group Executive management Jan Lidén, President and CEO. Gith Bengtsson, Union representative. Ingrida Bluma, Head of Hansabank in Latvia. 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 6.5 bn Central/SBU level Swedish group SEK 6 bn Baltic Banking - central level SEK 9 M Baltic Banking - country level SEK 2 M Russia SEK 1 M Local level Swedish Banking SEK 3/4 M Baltic Banking - Estonia SEK 5 M Baltic Banking - Latvia SEK 7 M Baltic Banking - Lithuania SEK 5 M 22

24 15. Owners and shares Shareholders, Sep 3, 26 % Ownership structure Sept 3, 26 (December 31, 25) Savings bank foundations 21.3 Savings banks 8.5 Fourth National Pension Fund 3.2 Franklin-Templeton Funds 3. Robur funds 2.6 SHB/SPP Funds 2.5 Swedbank profit-sharing funds 2.4 AMF Pension 1.9 SEB Funds AFA Insurance Swedish institutions, 31.6% (34.1) Savings banks, 8.5% (8.2) Swedish general public, 11.3% (11.2) Other International investors 24.3 Other Swedish institutions 15.4 Swedish general public 11.3 Total 1. Savings banks foundations, 21.3% (21.1) International investors, 27.3% (25.4) Number of shareholders: Number of shares: Number of shares outstanding: Repurchased shares Source: DN Ägarservice and FöreningsSparbanken 325, ,373, ,373,412 Data per share Sep 3 Jun 3 Dec 31 Sep 3 Dec 31 Dec 31 SEK Earnings Equity Dividend Price, end of period Yield, % Price/Equity, % Changes in subscribed capital Year Transaction Par value/ Price, % Added/repurchased Accumulated no. of Share capital share no. of shares shares outstanding 4,88, SEK M 2, New issue 5 1 1,, 5,88, 2, New issue , 6,84, 3,42 New issue 5 1 1,2, 8,4, 4, Split 5:1 1 32,16, 4,2, 4,2 New issue 1 1 1,, 5,2, 5, Split 1: ,8, 52,, 5, New issue ,, 54,, 5, New issue/ reduction 1 65/63-261,819, ,18,72 2,782 Bonus issue 2 278,18,72 5, New issue ,717,269 35,897,971 7,18 New issue , ,872,562 7, Bonus issue 2 175,936, ,88,843 1, Share repurchase 2-14,937, ,871,312 1, New issue 2 1 2,52,1 515,373,412 1,66 26 Cancellation of repurchased shares 2 515,373,412 1,37 26 New issue ,373,412 1,823 23

25 For further information, please contact: Mikael Inglander, CFO and Head of Group Staffs Henrik Kolga, Head of Communications Johannes Rudbeck, Head of Investor Relations Tobias Norrby, Investor Relations Robert Matulin, Investor Relations Investor Relations, fax address: Investor Relations on the Internet: This presentation can be downloaded/accessed from Swedbank s web-site. Investor Relations section is found on: Postal address: Visitors address: Swedbank Brunkebergstorg 8 S Stockholm, Sweden Stockholm, Sweden Financial Calendar - release dates: Capital Market Day, Stockholm November 16, 26 Interim report fourth quarter 26 February 15, 27 Interim report first quarter 27 April 25, 27 Annual General Meeting 27 April 27, 27 Interim report second quarter 27 August 7, 27 Interim report third quarter 27 October 24, 27 Rating October 26 Standard & Poor's Moody s Fitch Short Long Short Long BFSR* Short Long Swedbank AB A-1 A+ P-1 Aa3 B F1 A+ Swedbank Mortgage A-1 P-1 Aa3 F1+ AA- Hansabank P-1 A1 C+ F1 A * Bank Financial Strength Ratings 24