Facts Q October, 2014

Transcription

1 Facts Q October, 2014

2 44B 4B 44B 4B 44B 4B 44B 4B 44B 4B 44B 4B Contents page page General information 2 Asset quality 48 Swedbank in brief 2-3 Asset quality Macro economic indicators 4-5 Credit impairments 52 Financial information, Group 6 Impaired loans and provisions Income statement, 5-year summary 6 Loans past due 55 Income statement, 9-quarter summary 7 Private Mortgage loans 56 Balance sheet, 5-year summary 8 Concentration risk 57 Balance sheet, 9 quarters, Equity and Goodwill 9 Capital adequacy 58 Statement of changes in equity and Intangible fixed assets 10 Credit risks, EAD distribution by business area and by segment 58 Net interest income analysis 11 Capital adequacy parameters for credit risk - business area 59 Income analysis 12 Capital adequacy parameters for credit risk - segment Expense analysis 13 Capital adequacy, consolidated situation 62 Variable pay 14 Change in REA and Outstanding subordinated debt and leverage ratio 63 Business areas 15 ICAAP Scenario based stress test Swedish Banking Liquidity & Funding 66 Large Corporates & Institutions Liquidity reserve and additional Liquid Assets 66 Baltic Banking 24 Survival horizon 67 Baltic Banking Liquidity ratios 68 Estonia 26 Debt securities in issue 69 Latvia 27 Issued long-term debt, by currency 70 Lithuania 28 Maturity distribution, long-term funding 71 Other 29 Outstanding benchmark bonds 72 Group Functions & Other Outstanding short-term funding 73 Group Products 32 Maturity distribution, total balance sheet Group Treasury 33 Asset encumbrance Ektornet Cover pool data Other 36 Swedbank Mortgage AB, loan data 81 Eliminations 37 Rating 82 Product companies 38 Key figures Swedbank Robur AB Market shares 85 Swedbank Insurance Swedbank Group by geography 86 Baltic Life Insurance 42 Employees 87 Baltic P&C Insurance 43 Currency distribution and exchange rates 88 Business volumes 44 Sensitivity analysis 89 Loans 44 Shareholders and share data 90 Deposits and amounts owed to credit institutions 45 Definitions 91 Derivatives and Deferred Tax Assets 46 Contacts and financial calendar 92 Interest bearing Securities and Exposures towards the GIIPS countries 47

3 Swedbank in brief General information Swedbank has roots firmly entrenched in Sweden's savings bank history, the cooperative agricultural bank tradition and Hansabanks's significant role in the Baltic countries. Swedbank has a leading position in its home markets of Sweden, Estonia, Latvia and Lithuania. Purpose To promote a sustainable financial situation for the many households and businesses. Values Simple, Open, Caring Financial targets Return on equity: Return on equity of at least 15 per cent. Cost efficiency: Market-leading cost efficiency Capitalisation: Solid capitalisation Priorities 2014 Long-term strategy Accessible full-service bank: We provide households and businesses with everything from basic transaction services to the most advanced advisory services. Our goal is to do it in a sustainable way that creates customer value. Therefore, our products and services are based on and adapted to our customers' needs and behaviours. Decision-making close to our customers: Our offering is designed with our customers in mind. All decisions are therefore made as close to customers as possible - without unnecessary lead times and helped by the adviser's knowledge of the local market. That competence is also the basis for what products and services are offered. The advisor takes responsibility for pricing, risk, profit and loss, and balance sheet. Low risk: Swedbank s mortgages and other lending are financed through capital market funding. Stable profitability and low risk are essential in order to win the trust of this market. For earnings to remain stable over time it requires a low risk level. Risk is kept low by the high quality of the bank's lending, where each borrower s solvency, solidity and collateral are always the determining factors. Moreover, the bank maintains a sustainable balance between deposits and lending and tries to match maturities. Swedbank's priority is sustainable growth. Improve customer value Continue to invest in accessibility, service and quality Devote more resources to customer meetings Simplify and clarify our offering Strengthen market position: Grow in existing markets Build long-term relationships Coordinate offerings Increase decision-making close to our customers: Decentralise mandates and improve business support Strengthen leadership and employeeship Utilise and develop talents through increased internal mobility Increase cost efficiency: Simplify internal processes Adapt Group Functions based on customer needs Increase cost consciousness High cost efficiency: External trends increase the importance of being able to manage capital and expenses efficiently. Capital efficiency is attained through our employees being knowledgeable about customers and what affects risk exposure amount and tied-up capital. Cost efficiency is among other things attained by developing our products cooperatively at the Group level. Our broad customer base gives us the economies of scale and opportunities to create cost-effective solutions with the help of new technology. 2

4 Swedbank in brief General information Sweden Population: 9.6m Private customers: 4.1m Corporate customers: Organisations: Branches: 318 ATMs 1) Cards: 3.9m Employees: Latvia Population: 2.0m Private customers: 1.0m Corporate customers: Branches: 51 ATMs: 410 Cards: 1.0m Employees: Estonia Population: 1.3m Private customers: 1.0m Corporate customers: Branches: 50 ATMs: 469 Cards: 1.1m Employees: Lithuania Population: 3.0m Private customers: 2.0m Corporate customers: Branches: 69 ATMs: 475 Cards: 1.7m Employees: ) ATMs are owned and operated by Bankomat AB. More information is available on To support the business in Swedbank's four home markets, Swedbank is also established in neighbouring markets such as Norway, Finland and Denmark as well as certain other countries such as the US, China and Luxembourg. Swedbank is discontinuing operations in Russia. Group operational structure 2014 The financial reporting is divided in four segments. The six Swedish regions and Channel & Concepts form Swedish Banking. Group products, and other group functions, constitute Group Functions & Other. Group executive committee Michael Wolf, President and CEO Mikael Björknert, Head of Channels & Concepts Birgitte Bonnesen, Head of Baltic Banking Göran Bronner, Chief Financial Officer Ulf Ejelöv, Head of Northern Region in Sweden Björn Elfstrand, Head of Stockholm Region in Sweden Anders Ekedahl, Head of Group IT Jonas Erikson, Head of Group Products Lars Friberg, Head of Group Human Resources Magnus Gagner-Geeber, Head of Large Corporates & Institutions Lars Ljungälv, Head of Southern Region in Sweden Annika Hellström, Head of Central Region in Sweden Cecilia Hernqvist, Head of Group Communications Anders Karlsson, Group Chief Risk Officer Helo Meigas, Head of Group Treasury Lena Smeby-Udesen, Head of Western Region in Sweden Christer Trägårdh, Head of Eastern Region in Sweden 3

5 44B 4B 2B General information Macro economic indicators GDP growth Average inflation rate (consumer price growth) % 2016F 2015F 2014F % 2016F 2015F 2014F Sweden Sweden Estonia Estonia Latvia Latvia Lithuania Lithuania Current account balance, % of GDP General Government Financial Balance, % of GDP 2016F 2015F 2014F F 2015F 2014F Sweden Sweden Estonia Estonia Latvia Latvia Lithuania Lithuania General government debt, % of GDP 2016F 2015F 2014F Sweden Sweden Estonia Estonia Latvia Latvia Lithuania Lithuania Household debt, % of disposable income 1) Unemployment % % 2016F 2015F 2014F Sweden Sweden Estonia N/A Estonia Latvia N/A Latvia Lithuania N/A Lithuania ) Data for households and non-profit institutions serving households. Source: Swedbank Reasearch - Macro Research, Eurostat, the World Bank & the Riksbank GDP per capita (PPP) 2013, USD Inhabitants (millions) GDP (2013, USDbn) Total market, net change in loans to the public by Country Sweden SEKbn Net change Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Jul-Aug Total loans 1) Mortgage loans Estonia EURm Net change Total loans 1) Mortgage loans Latvia EURm 2) Net change Total loans 1) na na na na Mortgage loans na Lithuania EURm Net change Total loans 1) na Mortgage loans na 1) Excluding repurchase agreements. 2) September 2013 is the latest data for total loans (total market). 4

6 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Macro economic indicators General information Interest rates: Sweden & Eurozone, % Interest rates: Baltics & Eurozone, % 6,0 5,5 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0, Repo rate (SWE) ECB Euro rate 90 days Euribor 90 days Stibor (SWE) 90 days Vilibor (Lithuania) 90 days Rigibor (Latvia) 90 days Euribor Real estate price development, Sweden 1) SEK Q2-14 Sweden Gothenburg Stockholm Malmö Real estate price development, Baltics 2) EUR/m Q3-14 Tallin Riga Vilnius 1) Median price for a single family home 2) Average sales price per sqm for apartments Source: Swedbank's Boindex (real estate price index) Source: Land boards of respective country Turnover General index and turnover, equities, NASDAQ OMX, Stockholm Index Stockholm, SEKm turnover month OMX Stockholm PI (rs) 5

7 Income statement, 5-year summary Financial information, Group Income statement, Group YTD YTD FY FY FY FY FY SEKm ) 2013 % ) Net interest income Net commission income Net gains and losses on financial items, fair value Net insurance Share of the profit or loss of associates Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Impairment of tangible assets Credit impairments Operating profit Tax expense Profit for the period from continuing operations Profit for the period from discontinued operations, after tax Profit for the period including non-controlling interest Profit for the period attributable to: Shareholders of Swedbank AB Non-controlling interests Statement of Comprehensive Income YTD YTD FY FY FY FY FY SEKm % Profit for the period reported via Income statement Items that will not be reclassified to the income statement Remeasurements of defined benefit pension plans Share related to associates Income tax Total Items that may be reclassified to the income statement Exchange differences on translating foreign operations: Gains/losses arising during the period Net gains and losses on financial items, fair value or profit for the period from discontinued operation Hedging of net investments in foreign operations: Gains/losses arising during the period Reclassification adjustments to Income statement, profit for the period from discontinued operations -365 Cash flow hedges: Gains/losses arising during the period Reclassification adjustments to Income statement, Net interest income Net gains and losses on financial items, fair value 37 Share of other comprehensive income of associates Tax Income tax Reclassification adjustments to Income statement, profit for the period from discontinued operations 80 Total Other comprehensive income for the period, net of tax Total comprehensive income for the period Total comprehensive income attributable to: Shareholders of Swedbank AB Non-controlling interests ) From 2012, trading related net interest income is reported as net gains and losses on financial items at fair value. 2) Q one-off effects from the acquisition of Sparbanken Öresund, other income of SEK 461m, staff costs of SEK 393m, other costs of SEK 222m and a positive effect on tax expenses of SEK 135m. In 2013 Swedbank decided to discontinue its operations in Russia and Ukraine. In Q the divestment of the Ukrainan subsidiary was finalised. Income statements have been restated for 2012 but for balances and full time employees no restatements have been done. 6

8 22B 2B Income statement, 9-quarter summary Financial information, Group Income statement, Group Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2014 SEKm ) Net interest income Net commission income Net gains/losses on financial items, fair value Net insurance Share of profit or loss of associates Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Impairment of tangible assets Credit Impairments Operating profit Tax expense Profit for the period from continuing operations Profit for the period from discontinued operations, after tax Profit for the period including non-controlling interest Profit for the period attributable to: Shareholders of Swedbank AB Non-controlling interests Statement of comprehensive income Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2014 SEKm Profit for the period reported via Income statement Items that will not be reclassified to the income statement Remeasurements of defined benefit pension plans Share related to associates Income tax Total Items that may be reclassified to the income statement Exchange differences on translating foreign operations: Gains/losses arising during the period Reclassification adjustments to income statement, Net gains/losses on financial items at fair value or profit for the period from discontinued operation Hedging of net investments in foreign operations: Gains/losses arising during the period Reclassification adjustments to Income statement, profit for the period from discontinued operations Cash flow hedges: Gains/losses arising during the period Reclassification adjustments to Income statement, Net interest income Share of other comprehensive income of associates Tax Income tax relating to components of other comprehensive income Reclassification adjustments to Income statement, profit for the period from discontinued operations Total Other comprehensive income for the period, net of tax Total comprehensive income for the period Total comprehensive income attributable to: Shareholders of Swedbank AB Non-controlling interests ) Q one-off effects from the acquisition of Sparbanken Öresund, other income of SEK 461m, staff costs of SEK 393m, other costs of SEK 222m and a positive effect on tax expenses of SEK 135m. 7

9 Balance sheet, 5-year summary Financial information, Group Balance sheet 30 Sep 30 Sep 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec SEKm % Assets Cash and balances with central banks Loans to credit institutions Loans to the public Bonds and other interest-bearing securities Financial assets for which customers bear the investment risk Derivatives Other assets Total assets Liabilities and equity Amounts owed to credit institutions Deposits and borrowings from the public Debt securites in issue Financial liabilities for which customers bear the investment risk Derivatives Other liabilites Subordinated liabilities Equity Total liabilities and equity In 2013 Swedbank decided to discontinue its operations in Russia and Ukraine. In Q the divestment of the Ukrainan subsidiary was finalised. Income statements have been restated for 2012 but for balances and full time employees no restatements have been done. 8

10 Balance sheet 9 quarters, Equity and Goodwill Financial information, Group Balance sheet 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep SEKm 2014 SEKm Assets Cash and balances with central banks Loans to credit institutions Loans to the public Interest-bearing securities Value change of interest hedged item in portfolio hedge Financial assets for which customers bear the investment risk Shares and participating interests Investments in associates Derivatives Intangible fixed assets of which goodwill Tangible assets Current tax assets Deferred tax assets Other assets Prepaid expenses and accrued income Group of assets classified as held for sale Total assets Liabilities and equity Liabilities Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Financial liabilities for which customers bear the investment risk Derivatives Current tax liabilities Deferred tax liabilities Short positions securities Other liabilities Accrued expenses and prepaid income Provisions Subordinated liabilities Liabilities directly associated with group of assets classified as held for sale Total liabilities Equity Non-controlling interests Equity attributable to shareholders of Swedbank AB Total equity Total liabilities and equity Equity attributable to shareholders of Swedbank AB, 30 Sep 2014 Goodwill, 30 Sep 2014 SEKm SEKm Swedbank AB (Sweden) Swedbank Robur 328 Swedbank Mortgage (Sweden) Swedbank Försäkring 651 Swedbank Finans (Sweden) Ölands Bank AB 9 Swedbank Robur (Sweden) Swedbank (Estonia) Swedbank Försäkring (Sweden) Swedbank (Latvia) Sparbanken Öresund AB (Sweden) Swedbank (Lithuania) Sparia Försäkring (Sweden) 621 Swedbank Franchise (Sweden) 19 Sparia Försäkring Group(Sweden) 70 Group total Swedbank (Estonia) Goodwill within parent company: Swedbank (Latvia) Swedbank AB (Sweden) Swedbank (Lithuania) Swedbank Asset Management SA (Luxemburg) 41 Total goodwill OOO Leasing (Russia) 33 First Securities (Norway) 17 Ektornet (Sweden) 230 Swedbank Babs Holding (Sweden 658 Other subsidiaries Total legal equity Group adjustments and eliminations Total equity attributable to shareholders of Swedbank AB In 2013 Swedbank decided to discontinue its operations in Russia and Ukraine. In Q the divestment of the Ukrainan subsidiary was finalised. Income statements have been restated for 2012 but for balances and full time employees no restatements have been done. 9

11 00B 0B Statement of changes in equity and Intangible fixed assets Statement of changes in equity SEKm Share capital Other contributed equity Exchange differences, subsidiaries and associates Shareholders' equity Hedging of net investments in foreign operations Cash flow hedges Financial information, Group Retained earnings Total Noncontrolling interest Total equity Opening balance 1 January Dividends Share based payments to employees Associates' disposal of shares in Swedbank AB Total comprehensive income for the period Closing balance 30 September Specification of Exchange differences, subsidiaries and associates 30 Sep 31 Dec Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm Russian Operations Ukrainian Operations Estonian Operations Latvian Operations Lithuanian Operations Norwegian Operations Robur, Ektornet and other Total Specification of Hedging of net investment in foreign operations 30 Sep 31 Dec Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm Russian Operations Estonian Operations Latvian Operations Lithuanian Operations Norwegian Operations Robur, Ektornet and other Total Specification of Cash flow hedges 30 Sep 31 Dec Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm Group Treasury Other Total Intangible fixed assets, 30 September 2014 SEKm Indefinite useful life Goodwill Customer base Definite useful life Internally developed software Other Total Cost, opening balance, 1 January Additions through internal development Additions through separate acquisitions Sales and disposals Exchange rate differences Cost,closing balance, 30 September Amortisation, opening balance 1 January Amortisation for the year Sales and disposals Exchange rate differences Amortisation, closing balance, 30 September Impairments, opening balance, 1 January Impairments for the year Sales and disposals Exchange rate differences Impairments, closing balance, 30 September Carrying amount, 30 September

12 Net interest income analysis, Group Financial information, Group Net interest income analysis, Group YTD YTD % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm Y/Y Interest income Loans to credit institutions Loans to the public Interest-bearing securities Derivatives, income Other Total interest income of which interest income reported in net gains/ losses on financial items at fair value Interest income according to income statement Interest expense Amounts owed to credit institutions Deposits and borrowings from the public of which deposits guarantee fees Debt securities in issue of which state guarantee fees Subordinated liabilities Derivatives, expenses Other of which stability fee Total interest expense of which interest expense reported in net gains/ losses on financial items at fair value Interest expense according to income statement Net interest income Average balances Loans to credit institutions Loans to the public Interest-bearing securities Interest-bearing assets Derivatives Other assets Total assets Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Subordinated liabilities Interest-bearing liabilities Derivatives Other liabilities Total liabilities Equity Total liabilities and equity Net interest income analysis, Group YTD YTD Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 % Average interest rates Loans to credit institutions Loans to the public Interest-bearing securities Interest-bearing assets Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Subordinated liabilities Interest-bearing liabilities Net interest margin before trading interest are deducted Net interest margin after trading interest are deducted Interest-bearing securities are reported net less sold, not held, securities. Interest income on impaired loans is not accrued. In 2013 Swedbank decided to discontinue its operations in Russia and Ukraine. In Q the divestment of the Ukrainan subsidiary was finalised. Income statements have been restated for 2012 but for balances and full time employees no restatements have been done. 11

13 Income analysis Financial information, Group Income analysis, Group YTD YTD % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm Y/Y Net interest income Payment processing Card commissions Service concepts Asset management & Custody Life insurance Brokerage & Other securities Corporate Finance Lending and Guarantees Deposits Real estate brokerage Non-Life insurance Other commission income Net commission income Financial instruments held for trading Financial instruments intended to hold until maturity Net gains and losses on financial items at fair value Net insurance Sparbanken Skåne/Färs & Frosta Sparbank Swedbank Sjuhärad Other jointly owned banks in Sweden EnterCard Holding 1) Other companies Share of the profit or loss of associates IT/administrative services to savings banks Assets taken over Other 2) Other income Total income ) Q One-off effect of SEK 230m due to terminated partnership Norway. 2) Q one-off effect from the acquisition of Sparbanken Öresund, of SEK 461m. 12

14 99B 9B 99B 9B Expense analysis Financial information, Group Expense analysis, Group YTD YTD % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm Y/Y Staff costs Salaries and other remunerations Variable staff costs 1) Pension costs 1) Social insurance charges 1) Training costs Other staff costs Total staff costs 2) 3) Other expenses Premises and rents 2) IT expenses Telecommunications and postage Advertising, PR and marketing Consultants 2) Compensation to Savings Banks Other purchased services Security transport and alarm systems Supplies Travel Entertainment Repair/maintenance of inventories Other expenses 2) Total other expenses Depreciation/amortisation Total expenses IT-related expenses IT-related expenses 4) YTD YTD % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm Y/Y Expenses within internal IT-organisation (Group IT) Staff costs IT expenses of which software incl. licenses of which IT-consultants of which other bought IT-services Leasing and depreciation of IT-equipment Other expenses Total expenses Expenses outside internal IT-organisation (Group IT) IT expenses bought by business areas Activated IT-related expenses Total IT-related expenses of which development cost ) Social insurance charges and pension costs related to variable pay are presented as variable staff costs. 2) Q one-off effects from the acquisition of Sparbanken Öresund, staff costs of SEK 393m, premises and rents of SEK 80m, consultancy of SEK 127m and other costs of SEK 15m. 3) During Q SEK 100m was expensed for staff restructurings in Sweden and the Baltic countries. 4) IT-related staff costs outside the internal IT organisation are not included. 13

15 Variable pay Financial information, Group Allocations 1) SEKm Fullyear 2014 Q Number of performance rights, million 2) % Cash vs. shares Duration period for shares 3) Delivery date for shares Programmes ) General programme Eken share part 478 social security charges 102 Individual programme of which cash of which shares share part 94 social security charges 22 Other Total allocations, Programmes 2013 General programme Eken share part 349 social security charges 81 Individual programme of which cash 224 of which shares 131 share part 105 social security charges 26 Other Total allocations, Programmes ) General programme Eken share part 559 social security charges 179 Individual programme of which cash 199 of which shares 123 share part 91 social security charges 32 Other Total allocations, expected 0.5 expected 2.2 current 0.7 current 4.7 current 0.8 current 100% shares ~60% cash & 40% shares 100% cash 100% shares ~60% cash & 40% shares 100% cash 100% shares ~60% cash & 40% shares 100% cash 50 months 50 months 50 months 50 months 50 months 50 months Programmes ) General programme Eken share part 389 social security charges 211 Individual programme of which cash 147 of which shares 101 share part 63 social security charges 38 Other Total allocations, current 0.7 current % shares ~60% cash & 40% shares 100% cash 38 months for 50% of shares; 50 months for 50% of shares 50 months 2014 for 50% of shares & 2015 for 50% shares 2015 Income statement impact SEKm Jan-Sep Jan-Sep General programme Eken Individual programme of which cash 144 of which shares 21 General programme Eken Individual programme of which cash 167 of which shares General programme Eken Individual programme of which cash of which shares General programme Eken Individual programme Individual programme Other 1 51 Total Equity-settled share based programmes Notes: 1) Full-year allocation is a total expense for a certain programme incl. social charges. Any change in FY allocations impacts quarterly allocations for the current year programmes. Historical allocations are shown during the entire duration period. Balance sheet currency rates are used for conversion of allocations while average YTD currency rates are used for conversion of variable pay expenses in the P/L 2) Performance rights give full impact on dilution on delivery date and slightly differs from number of rights establishing the recognised share based expense. Current dilutive rights/future shares amount to 8.5 million 3) Duration period is comprised of i) an initial performance year followed by ii) a deferral period prior to iii) the delivery date year after the deferral period. The share part is recognised in the P/L over the duration period 4) Positive Economic Profit is a prerequisite for Eken and IP allocations. Size of Eken has direct connection to Group ROE 5) Allocations for shares year after the performance year take into account forfeited rights and include social charges based on the expected share price on the delivery date (assumed being equal to the current share price). Social charges include dividend compensation Recognised share based expense, including social insurance charges 6) FY 2011 FY 2012 FY FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 SEKm Jan-Sep expected expected expected expected expected TOTAL General programme Eken Individual programme General programme Eken Individual programme General programme Eken Individual programme General programme Eken Individual programme Total ) Adjustments for actual outcome are usually included in share based expenses year after the performance year (same applies for the cash part) 14

16 Swedish Banking Business areas YTD YTD Δ % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm ) 2013 Y/Y ) Income statement Net interest income Payment processing Card commission Service concepts Asset management Life Insurance Brokerage & Other securities Lending and guarantees Deposits Corporate finance Real estate brokerage Non-Life insurance Other commissions Net commission income Net gains and losses on financial items at fair value Net insurance Share of the profit or loss of associates Other income Total income Staff costs Variable staff costs Expenses for premises IT expenses Consultants Other expenses of which internally sold and bought services Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Impairment of tangible assets Credit impairments Operating profit Tax expense Profit for the period from continuing operations Profit for the period from discontinued operations, after tax Profit for the period including non-controlling interest Profit for the period attributable to: Shareholders of Swedbank AB Non-controlling interests ) Q one-off effects from the acquisition of Sparbanken Öresund, other income of SEK 461m, staff costs of SEK 393m, premises and rents of SEK 80m, consultancy of SEK 127m, other costs of SEK 15m and a positive effect on tax expenses of SEK 135m. 15

17 Swedish Banking Business areas YTD YTD Δ % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKbn Y/Y Balance sheet (Incl intra-group transactions) Assets Cash and balances with central banks 1 1 Loans to credit institutions Loans to the public Bonds and other interest-bearing securities 2 Financial assets for which customers bear inv. risk Derivatives Other assets Total assets Liabilities and equity Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Financial liabilities for which customers bear inv. risk Derivatives Other liabilities Subordinated liabilities Allocated equity Total liabilities and equity Key figures Key performance indicators Return on allocated equity, % Cost/Income ratio Common Equity Tier 1 capital ratio, % 3) Credit impairment ratio, % Loan/Deposit ratio, % Volumes, SEKbn Loans to the public excluding repos & SNDO 1) 2) Deposits from the public excluding repos & SNDO 1) 2) Mutual funds & insurance Index linked bonds Allocated equity, average, SEKm Common Equity Tier 1 capital, period end Risk exposure amount 3) 4) Commitments Full-time employees 2) Other information (millions) Number of Internet bank customers (incl. savings banks) Number of internet bank payments (incl. savings banks) Number of Mobile bank customers (incl. savings banks) Number of logins in Internetbank Number of logins in Mobile Bank Number of cards (debit cards) Number of card purchases POS/total card turnover, % 5) Number of card acquiring, Nordic Countries Total acquired amount, Nordic Countries, SEKm ) Excluding intra-group transactions. 2) Q effects from the acquisition of Sparbanken Öresund, Loans SEK 16.5bn, Deposits SEK 12bn, Full-time employees ) During Q2 2014, implementation of IRB-A decreased REA with SEK 34bn and aquisition of Öresund and investment in Sparbanken Skåne increased REA with SEK 16bn. 4) Risk exposure amount is reported according to Basel and 2013, Risk exposure amount is reported according to Basel 2. 5) Point of Sale (POS). 16