Fact book Q April 2007

Transcription

1 Fact book Q April 27 Contents page General information 2 Mission, vision, values and markets 2 Financial objectives 3 Geographic reach and market shares 4 Macro economic indicators 5-6 Business volumes 7 Lending 7-8 Savings and investments 9 Other products 1 Market shares 11 Income statement and key figures 12 5-year summary 12 9 quarter summary 13 Income analysis 14 Margin analysis 15 Expense analysis 16 Employees and customers 17 Business areas 18 Swedish Banking 18 Baltic Banking 19 Estonia 2 Latvia 2 Lithuania 21 Russia 21 Swedbank Markets 22 Asset Management and Insurance 22 Shared Services and New Operations, Eliminations 23 Balance Sheet and risks 24 Balance sheet and rating 24 Maturity structure 25 Capital adequacy analysis 25 Asset quality Organisation and executive management 28 Shareholders and share data 29 Contacts and financial calendar 3

2 Mission, vision, values and markets Q1 27 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 markets where we are present. 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 presence 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 USA - 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 Denmark Sweden Finland Estonia Russia Latvia Lithuania Ukraine 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 2

3 Financial objectives Financial objectives Q 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 % % Q1-7 Swedbank Nordic peers Cost/income ratio,8,7,6,5,4,3,2, Q1-7 C/I ratio Target C/I ratio Q1-7 Tier 1 ratio Target tier 1 ratio Capital adequacy ratio Earnings per share SEK Dividend Dividend, SEK ** 26*** Dividend per share Dividend ratio target Dividend ratio Dividend ratio, % * New capital adequacy rules (Basel II) as of Q1 27 ** Dividend ratio excluding capital gains *** Board's proposal. To be decided at AGM, April 27. 3

4 Geographic reach Q1 27 1% 8% 6% 4% 2% 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 % Net profit Lending No. of customers, private Branches Baltic Banking Swedish Banking and other Sweden Population 9.m Employees 8,713 Private customers 4.1m Of which Internet customers 2.1m Corporate customers 262, Of wich internet customers 191, Organisations 12, Branches 472 ATMs 86 Cards 3.4m Russia Population 143,2m Employees 264 Branches 3 Estonia Population 1.3m Employees 3,64 Private customers 1.2m Of which Internet customers.8m Corporate customers 84, Branches 96 ATMs 548 Cards 1.1 m Latvia Population 2.3m Employees 2,387 Private customers.7m Of which Internet customers.6m Corporate customers 47, Branches 76 ATMs 248 Cards.8m Lithuania Population 3.4m Employees 3,159 Private customers 2.9m Of which Internet customers.8m Corporate customers 73, Branches 127 ATMs 336 Cards 1.2m Market shares, Sweden Balance % Market shares, Baltics Balance % Mortgages Deposits Fund mgmt Retail bonds Private Corporate Bank lending Total lending Deposits Estonia Latvia Lithuania 4

5 4

6 Macro economic indicators Q1, GDP growth, % F 27F 28F 2 Sweden Estonia Latvia Lithuania Russia Ukraine EU-25 GDP growth Inflation % 28F 27F 26F % 28F 27F 26F Sweden 3,1 3,3 4,4 2,7 3,6 1,6 Sweden 2,1 1,8 1,4,5,4 2, Estonia 8, 9, 11,2 1,5 7,8 5,7 Estonia 4, 4,5 4,4 4,1 3, 1,3 Latvia 7,5 9, 11,5 1,2 8,5 7,5 Latvia 5,2 6,3 6,6 6,7 6,2 2,9 Lithuania 6,5 6,5 7,4 7,6 7,3 1,3 Lithuania 4,5 4,5 3,8 2,7 1,1 -,5 Russia 6,2 6,5 6,6 6,4 7,2 7,3 Russia 7,5 8, 9,8 12,5 11, 12, Ukraine 6, 6,5 7, 2,6 n.a. n.a. Ukraine 9,5 1, 9,1 1,3 n.a. n.a. Denmark 2, 2,5 3, 3,1 2,4,4 Denmark 1,7 1,8 1,8 1,8,9 2,1 Finland 3, 3,3 5,5 2,9 3,6 2, Finland 1,6 1,9 1,6,9,1 1,3 Norway 2,5 3,1 2,9 2,3 2,9,3 Norway 1,9 1,5 2,2 1,5,4 2,5 EU25* 2,4 2,4 2,8 1,7 2,4 1,3 EU25* 2, 2,3 2,1 2,2 2,1 1,9 Current account balance General Government Financial Balance % 28F 27F 26F % 28F 27F 26F Sweden 6,9 7, 6,4 5,9 7,8 4,7 Sweden 3, 2,8 3, 2,8 1,,5 Estonia -1, -1,5-12,9-1,5-12,7-13,7 Estonia 1,5 1,6 2,5 1,6 1,7 1, Latvia -23, -23, -2, -12,7-12,9-8,1 Latvia -1,3-1,3-1,,2 -,8-1,8 Lithuania -12,8-12,5-11,4-7,2-7,7-6,8 Lithuania -1,1-1,2-1, -,5-1,4-1,7 Russia 5, 7, 9,8 11, 1,3 8,3 Russia 4, 5, 7,3 7,4 4,2 1,7 Ukraine -2,5-2,2-1,5 3,1 n.a. n.a. Ukraine -2,5-3, -3,5-3, n.a. n.a. Denmark 2, 2,3 2,5 3,2 2,5 3, Denmark 3, 3,2 3,5 4, 2,3 1,2 Finland 6, 6, 5,9 2,4 4,1 5,7 Finland 3,2 3,2 3, 2,6 1,9 2,1 Norway 14,5 15, 17, 16,8 13,5 12,9 Norway 17,5 18, 18,5 15,8 11,5 8,2 EU25* n.a. n.a. n.a. -,6 -,1, EU25* n.a. -2,2-2,3-2,3-2,6-3, General government debt* % 28F 27F 26F GDP per capita 25, USD Inhabitants (millions) Sweden n.a. n.a. n.a. 5,4 5,5 51, , Estonia 1,7 1,5 3,2 4,5 5,2 5, ,3 Latvia 1,6 1,3 1,2 12,1 14,5 14, ,3 Lithuania 15,5 16, 16,4 18,7 19,5 21, ,4 Russia n.a. n.a. n.a. n.a. n.a. n.a ,2 Ukraine n.a. n.a. n.a. n.a. n.a. n.a ,1 Denmark n.a. n.a. n.a. 35,9 42,6 44, ,4 Finland n.a. n.a. n.a. 41,3 44,3 44, ,2 Norway n.a. n.a. n.a. n.a. n.a. n.a ,6 GDP** (26, USDbn) 359,5 13,9 19,4 28,4 9, 94,7 263,4 193,3 35, EU25* n.a. n.a. n.a. 63,2 62,4 62, Source: Swedbank Baltic Sea Report, * Eurostat, ** IMF 5

7 Macro economic indicators Q1 27 6, 5,5 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, % Interest rates, Sweden and Eurozone Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 1-year Swap (SWE) Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 9 day Euribor Jun-6 Sep-6 Dec-6 Mar-7 9 days STIBOR (SWE) Reporate (SWE) Interest rates, Estonia, Latvia, Lithuania and Eurozone 9, % 8, 7, 6, 5, 4, 3, 2, 1, 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 Mar-7 9 days Rigibor (Latvia) 9 days Talibor (Estonia) 9 day Euribor 9 days Vilibor (Lithuania) General index and turnover, Nordic Exchange Stockholm Daily turnover, SEKbn All-share index Feb 26 Mar 26 Apr 26 May 26 Jun 26 Jul 26 Aug 26 Sep 26 Oct 26 Nov 26 Dec 26 Jan 27 Feb 27 Mar 27 Turnover, SEKbn OMX Stockholm 6

8 Lending Q1 27 The Swedish lending market The Estonian lending market SEKbn 4 3% 9 EURbn 8% % 2% 15% 1% 5% % 6% 5% 4% 3% 2% 1% % % Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Sep-6 Mar-7 Mar-3 Sep-3 Mar-4 Sep-4 Mar-5 Sep-5 Mar-6 Sep-6 Mar-7 Banks Mortgage lending Mortgage lending Bank and other lending Bank growth 12m Mortgage growth 12m Mortgage growth 12m Bank growth 12m The Latvian lending market 14 EURbn 12% 12 The Lithuanian lending market EURbn 12% 12 1% 1 1% % 6% 4% % 6% 4% 2 2% 2 2% % % Mar-3 Sep-3 Mar-4 Sep-4 Mortgage lending Mar-5 Sep-5 Mar-6 Sep-6 Mar-7 Bank and other lending Mar-3 Sep-3 Mar-4 Sep-4 Mortgage lending Mar-5 Sep-5 Mar-6 Sep-6 Mar-7 Bank and other lending Mortgage growth 12m Bank growth 12 Mortgage growth 12m Bank growth 12m Lending by sector, Group Mar Ch. % Ch. % Dec Sep Jun Mar Dec Sep Jun Mar SEKbn 27 3 m 12 m Private individuals 497, ,9 462,6 443,8 427,7 417,8 43, 392,1 378,4 of which Swedbank Mortgage AB 389, ,2 368,2 357,4 347, 34,2 329,8 321,9 31,8 Real estate management 195, ,9 178,9 174,9 169,1 164, 159, 157,2 15, Retail, hotels, restaurants 36, ,1 33,1 3,8 3,7 27,1 26,8 26,4 25,3 Construction 13, ,9 12,6 12,1 11,7 11,2 1,7 1, 9,7 Manufacturing 31, ,1 29,2 28, 26,4 23,7 24, 22,2 21,7 Transportation 18, ,5 15,9 14,4 13,6 13,8 13,1 12,3 11,5 Forestry and agriculture 46, ,3 44,9 43,3 42,2 41,6 4,5 38,6 37,5 Other service businesses 38, ,5 34,8 3,4 26,1 25,5 2,2 21,2 18,8 Other corporate lending 68, ,8 64,9 6,2 58, 57, 54,2 58,4 49,1 Municipalities * 15, ,9 13,8 14,4 14, 14, 14,2 14,3 14,4 Total lending to the public 961, ,9 89,7 852,3 819,5 795,7 765,7 752,7 716,4 *not including municipal companies Credit institutions incl. The Swedish National Debt Office 9, ,4 73,1 58,6 7,5 68,5 63,5 63,2 66,6 Repurchase agreements (Repos) 142, ,1 136,6 132,5 137,3 11,6 17,4 1, 12,2 Total lending 1 194, ,4 1 1,4 1 43,4 1 27,3 974,8 936,6 915,9 885,2 7

9 Lending, Swedbank Group Lending Q1, March 27 (31 December 26) SEK 961,5bn (918,9) SEK 522,bn (51.5) Lending, Swedbank Mortgage AB 31 March 27 (31 December 26) SME, corporate excl. Real estate mgmt 26% (25) Real estate mgmt 2% (21) Municipalities 2% (2) Single-family homes 61% (61) Multi-family housing 16% (17) Agriculture 6% (6) Private individuals, other 11% (11) Swedbank Mortgage, private individuals 41% (41) Business properties 1% (1) Individual condominiums 12% (11) Municipal loans and guarantees 4% (4) Lending, by country Mar Ch. % Ch. % Dec Sep Jun Mar Dec Sep Jun Mar SEKbn 27 3 m 12 m Bank loans - private 42, , 41,9 41, 4, 4,5 41,4 42, 42,1 Bank loans - corporate 28, , 191,7 181,3 169,5 162,7 155,3 16,7 142,1 Bank loans - municipality 9, , 7,5 6,3 7,2 6,9 7,1 6,9 7,1 Mortgage loans - private 389, ,2 368,2 357,4 347, 34,2 329,8 321,9 31,8 Mortgage loans - corporate 127, ,6 125,5 125,2 125,2 125,1 124,9 122,1 122,5 Mortgage loans - municipality 5, ,7 6, 6,2 6,5 6,8 6,8 7,1 7, Leasing and Factoring 27, , 26,3 25,5 24,2 24,2 23,2 22,8 21,6 Sweden 89, ,5 767,1 742,9 719,6 76,4 688,5 683,5 653,2 Bank loans - private 2, ,1 2, 1,7 1,5 1,4 1,2 1,1 1, Bank loans - corporate 24, ,1 2,2 18, 16,2 14,3 13,1 12,6 11,1 Mortgage loans - private 22, ,7 18, 15,8 14,2 12,6 1,9 9,7 8,2 Leasing and Factoring 1, ,3 9,3 8,8 8,5 8,1 7,6 7,4 6,5 Other 1, ,1 1, 1,1 1, 1,2 1,,3,2 Estonia 59, ,2 5,4 45,4 41,4 37,5 33,8 31, 27, Bank loans - private 1, ,4 1,2 1,,8,7,6,5,4 Bank loans - corporate 2, ,5 16,1 14,5 12,7 11, 8,9 8, 6,9 Mortgage loans - private 15, ,3 11,1 9,2 7,9 6,8 5,7 4,8 3,7 Leasing and Factoring 7, ,3 5,5 4,7 4,1 3,7 3,2 2,9 2,4 Other,5-21,5,9,7,7,6,4,3,2 Latvia 45, ,1 34,8 3,1 26,2 22,7 18,7 16,4 13,7 Bank loans - private 2, ,9 1,7 1,4 1,2 1,1 1,,9,7 Bank loans - corporate 14, ,7 12, 11,2 1,8 9,5 8,1 7,4 6,7 Mortgage loans - private 11, ,6 8,7 7,5 6,7 5,8 4,9 4,1 3,2 Leasing and Factoring 1, ,2 8,4 7,6 6,9 6,6 6, 5,6 4,8 Other -, ,4 -,4 -,3 -,1,,,, Lithuania 37, , 3,4 27,4 25,6 23,1 2, 18, 15,4 Bank loans - corporate 5, ,7 4,3 3,3 3, 2,1 1,5,8 1, Leasing and Factoring 1, ,7 1,8 1,8 2, 2,2 2, 1,8 1,4 Other, -79,,,,,,,, Russia 7, ,4 6,1 5,1 4,9 4,2 3,5 2,7 2,4 Other 1, ,8 1,9 1,5 1,7 1,8 1,1 1,1 4,7 Total Lending, Group 961, ,9 89,7 852,3 819,4 795,7 765,7 752,7 716,4 8

10 Savings Q1 27 Market shares, fund assets, Sweden 31 December, 26 (31 December 25) Savings and investments, Swedbank Group 31 March, 27 Others 26.9% (25.3) Swedbank Robur 25.6% (26.5) SEKbn Länsförsäkringar 4.% (4.1) SHB 14.% (13.7) Nordea 12.9% (14.4) SEB 16.6% (16.) Asset mgmt Deposits 25 Retail bonds Savings and investments Mar Ch. % Ch. % Dec Sep Jun Mar Dec Sep Jun Mar Balance, SEKbn 27 3 m 12 m Deposits from the public Households 234, ,4 222,4 29,8 196, 186,8 184,1 177,8 168,1 Corporate/other deposits from the public 163, ,3 143,9 136,6 134,5 138,5 134,8 139,9 136,4 Total deposits from the public 398, ,7 366,3 346,4 33,5 325,3 318,9 317,7 34,5 of which Sweden, households 182, , 177, 166,5 155, 147,7 15,9 143,7 138,6 of which Sweden, corporate and other 121, ,8 19, 11,5 1,9 16, 17,3 112,8 114,1 of which Estonia 39, , 34,7 33,3 31,7 29,5 25,7 25,8 21,3 of which Latvia 2, , 18,4 17,2 16,5 16,1 13,8 13,1 1,7 of which Lithuania 28, ,6 23,8 23,4 22,8 21,6 18,9 18,2 16, of which Russia,9 2 2,8 1,2 1,2,9,8,6,8 1,1 Discretionary asset management 22, ,8 24,9 24,3 25,7 24, 23, 21, 2, Fund assets under management 432, ,2 388, 369,1 394,5 362,9 35, 329, 32, Retail bonds and other bonds 26, ,4 21,7 21,5 2,9 19,6 13, 13, 13, Unit-linked insurance 67, ,5 6,2 57,4 6,3 54, 52, 48, 44, Eliminations -67, ,5-6,2-57,4-6,3-54, -52, -48, -44, Total savings and investments 88, ,1 8,9 761,3 771,6 731,8 74,9 68,7 639,5 Savings and investments Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 New savings, SEKbn Deposits from the public Households 11, 1, 12,6 13,8 9,2 2,7 6,3 9,7 7,4 Other deposits from the public 1,4 9,4 7,3 2,1-4, 3,7-5,1 3,5 2, Total deposits from the public 21,4 1,4 19,9 15,9 5,2 6,4 1,2 13,2 27,4 of which Sweden 15, -1,9 1,4 11,5 7,3-3,1 7,2 5,1 22,8 of which Estonia,8 2,3 1,4 1,6 2,2 3,8 -,1 4,5,1 of which Latvia,9 1,6 1,2,7,4 2,3,7 2,4, of which Lithuania,5 2,8,4,6 1,2 2,7,7 2,3, of which Russia, -,4,,3,1,2 -,2 -,3, Fund management, net savings 1,4 4,1 1,5-4,7 6,4,4 3,2 3,7 5,4 Unit-linked insurance, new policies,7 1,4,4,8,8 1,5,5,7,5 Retail bonds 2,1 2,7,2,6 1,3 1,7 -,5,3 1,7 Total new savings 25,5 18,6 22, 12,6 13,8 1, 4,4 17,9 35, 9

11 Other products Q1 27 Products per private customer, Products per corporate customer, Sweden Average number of Sweden Average number of products/customer Numbers of products/customer Number of Q customers, Q customers, Q thousand thousand Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q1, 26 Q1, > >1 Q1, 26 Q1, 27 Internet bank Including savings banks and partly owned banks Bank cards Including savings banks and partly owned banks Number of customers, thousand Number of payments, million Number of cards, thousand transactions, million Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Dec-6 Mar-7 Jun-4 Sep-4 Dec-4 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Dec-6 Mar-7 Numbers of Internet customers in Sweden Number of Internet customers in Baltic Banking Payments Swedbank excl Baltic Banking Purchases, million Baltic Banking Acquiring, million 1

12 Market shares Q1 27 Market shares, Sweden 28 February, 27 % Market shares; Estonia, Latvia, Lithuania 28 February, % Mortgages Deposits Lending (bank) Households Corporate Mortgages, household Deposits, household Estonia Latvia Lithuania Lending, corporate Market shares, % Balance Net growth Feb Dec Dec Dec Feb FY FY FY Sweden Mortgages, households Bank/consumer lending, households neg. 9 neg. neg. Deposits, households Pensions, households n.a Mutual funds (households+other) n.a neg Mortgages, sme/corporate neg. >1 >1 Bank lending, sme/corporate neg. Deposits, sme/corporate neg Pensions, sme/corporate n.a Index linked bonds * Stock trading (turnover) Estonia Mortgages, households Bank/consumer lending, households Deposits, households Pensions, households Lending, sme/corporate Deposits, sme/corporate Latvia Mortgages, households Bank/consumer lending, households Deposits, households Pensions, households Lending, sme/corporate Deposits, sme/corporate neg Lithuania Mortgages, households Bank/consumer lending, households Deposits, households Pensions, households Lending, sme/corporate Deposits, sme/corporate neg * Low share of net growth due to post-subscription volumes on SOX from SEB. 11

13 Income statement and key figures, 5 year summary Q1 27 Income statement, Group FY FY FY FY FY SEKm * 23** 22** Net interest income Dividens received 15 9 Net commission income Net gains and losses on financial items at fair value Net profit on financial operations Net insurance Share of the profit or loss of associates Capital gains and losses on financial fixed assets Other income Total income Staff costs Other general administrative expenses Depreciation/amortization and impairment of tangible and intangible fixed assets Amortization of goodwill Total expenses Profit before loan losses Loan losses, net Impairment of financial fiexed assets -264 Reversal of impairment of financial fixed assets 55 Operating profit Appropriations Tax expense Profit from continuing operations Profit from discontinued operations after tax 1 77 Profit for the year Attributable to: Shareholders of Swedbank AB Minority interest Key figures, Group FY FY FY FY FY * 23** 22** Return on equity, % *** 19,3 24,6 21,8 15,9 11, Return on total assets,% 1,1 1,33 1,,94,69 Return on RWA, % 1,6 2,1 1,6 1,1,8 Loan loss ratio, net, % -,2,4,7,14,23 Total provision ratio for impaired loans, % Capital adequacy ratio, % 9,8 9,7 11,6 1,8 1,8 Tier 1 capital ratio, % 6,5 6,5 8,2 7,2 7,1 C/I ratio before loan losses,52,48,55,57,63 Interest margin, % 1,12 1,29 1,41 1,47 1,43 Investment margin,% 1,23 1,38 1,5 1,59 1,58 Risk weighted assets/total assets, % Earnings per share, SEK 21,11 23,14 17,5 12,2 7,87 Cash dividend per share, SEK**** 8,25 7,5 6,5 5,75 5,5 Balance sheet data Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 SEKm * 23** 22** Total lending Deposits and borrowings from the public Equity Minority interest Shareholders' equity Total assets Risk weighted assets * Not restated according to IAS 39. ** Not restated according to IFRS. *** Based on equity attributable to Swedbank's shareholders **** Dividend according to board proposal 12

14 Income statement and key figures Q1, 27 7% 6% 5% 4% 3% 2% 1% % Source of income Split of commission income Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Net interest income Net commission income Net financial items Other 5% 45% 4% 35% 3% 25% 2% 15% 1% 5% % Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Asset management Payments Brokerage Lending Other Income statement, Group Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 3 m 12 m Net interest income Net commission income Net gains/losses on financial items, fair value Net insurance Share of profit of associates Capital gains on financial fixed assets Other income Total income Staff costs Profit-based staff costs Costs for personnel changes Other expenses Depreciation, amortization, impairments Total expenses Profit before loan losses Loan losses, net Operating profit Tax expenses Profit for the period Attributable to: Shareholders of Swedbank AB Minority interest Key figures, Group Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm Return on equity, % * 18,9 19,8 2,8 2,2 16,6 19,7 33,1 27,4 18,5 Return on total assets,% 1,7 1,15 1,14 1,19,92 1,11 1,69 1,4 1,7 Return on RWA, % 1,6 1,6 1,7 1,7 1,5 1,7 2,7 2,2 1,6 Loan loss ratio, net, %,2 -,2 -,3 -,5,2,,5,5,5 Total provision ratio for impaired loans, % Capital adequacy ratio, % 1, 9,8 1,1 1, 9,7 9,7 9,9 9,3 1,5 Tier 1 capital ratio, % 6,8 6,5 6,5 6,5 6,5 6,5 6,5 5,8 6,7 C/I ratio before loan losses,51,52,49,51,56,53,4,48,53 Interest margin, % 1,14 1,15 1,16 1,17 1,3 1,25 1,25 1,25 1,42 Investment margin,% 1,27 1,28 1,27 1,27 1,14 1,34 1,33 1,35 1,52 Risk weighted assets/total assets, % Earnings per share, SEK 5,65 5,65 5,65 5,4 4,41 4,99 7,87 6,21 4,7 * Based on equity attributable to Swedbank's shareholders 13

15 Income statement and key figures Q1 27 Income analysis, Group Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 3 m 12 m Net interest income; Net interst income, lending Net interest income, deposits Net interest income, other Net interest income, total Commission income; Payment processing Asset management Brokerage Lending Coporate Finance Insurance Other securities Other commissions receivable Commission income, total Commission expenses; Payment processing Securities Insurance Other commissions payable Commission expenses, total Net commission income, total 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 Other financial instruments of which change in value Trading, derivatives and FVO, total Interest income compensation, claims valued at cost Change in exchange rates Net gains and losses on financial items at fair value, total Net insurance Share of profit/loss of associates; Färs & Frosta Sparbank FöreningsSparbanken Sjuhärad Other jointly owned banks in Sweden BGC-Holding EnterCard Holding VPC Other companies Profit/loss of associates, total Capital gains on financial fixed assets Other income; Real estate income IT services to savings banks Other Other income, total Total income of which Baltic Banking Operations

16 Margins Q1 27 Deposit margins Lending margins 3, % 4, % 2,5 2, 3,5 3, 2,5 1,5 2, 1,,5, Q1-5 Q2-5 Q3-5 Q4-5 Q1-6 Q2-6 Q3-6 Q4-6 Q1-7 1,5 1,,5, Q1-5 Q2-5 Q3-5 Q4-5 Q1-6 Q2-6 Q3-6 Q4-6 Q1-7 Sweden Latvia Estonia Lithuania Estonia Lithuania Latvia Sweden Net interest margins Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 % Deposit margins Sweden 1,25 1,2 1,8 1,1,93,87,88 1,4 1,6 Estonia 1,55 1,12,97,77,73,63,54,54,75 Latvia 2,54 1,4 1,66 1,34 1,46 1,24 1,26 1,18 1,19 Lithuania 2,12 1,93 1,55 1,23 1,8,92,86,9,94 Lending margins Sweden,92,95,97 1,3 1,5 1,11 1,18 1,22 1,26 Estonia 2,66 2,67 2,61 2,62 2,77 3,1 2,89 2,97 3,16 Latvia 2,9 2,22 2,3 2,35 2,36 2,38 2,39 2,93 2,93 Lithuania 1,87 1,84 1,87 1,91 1,94 2,13 2,1 2,12 2,6 Russia 5,72 5,7 5,92 5,69 6,1 5,98 5,9 6,16 7,29 15

17 Income statement and key figures Q1 27 Cost development Quarterly expenses SEKm SEKm Q3 4 Q4 4 Q1 5 Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Total expenses Group excl. Baltic Banking Operations Baltic Banking Operations Q3 4 Q4 4 Q1 5 Q2 5 Q3 5 Staff costs Q4 5 Q1 6 Q2 6 Q3 6 Other expenses Q4 6 Q1 7 Expense analysis, Group Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 3 m 12 m Staff costs Salaries and remunerations Profit based staff costs of which: Swedish Banking Baltic Banking Operations Swedbank Markets of which First Securities Asset Management & Insurance Other profit based staff costs Costs for personnel changes Other staff costs Staff costs, total Other expenses Expenses for premises IT expenses Consulting and outside services Telecommunications and postage Marketing Security transports, alarm systems Depreciation/amortization and impairments of tangible and intangible assets Other Total other expenses Total expenses of which Baltic Banking Operations

18 Employees and customers Q1 27 Change in number of employees, Q-on-Q Customer satisfaction index, private Estonia Latvia Lithuania Russia Sweden Estonia Latvia Lithuania Q1 26 Q2 26 Q3 26 Q4 26 Q Number of employees Mar Ch. % Ch. % Dec Sep Jun Mar Dec Sep Jun Mar 27 3 m 12 m Swedish Banking Swedbank Markets Asset management and Insurance Shared services and New operations Subtotal Baltic Banking: Estonia Latvia Lithuania Russia Subtotal Baltic Banking Total number of employees, group Customer satisfaction index Sweden Share of satisfied private customers Share of satisfied corporate customers Estonia Index private customers 8,5 8,5 8,3 8,4 7,8 Index corporate customers 8,1 8,1 8,2 8,2 7,8 Latvia Index private customers 6,6 6,6 6,6 6,7 6,7 Index corporate customers 6,5 6,3 6,3 6 6,5 Lithuania Index private customers na Index corporate customers na na Sweden and Lithuania has a customer satisfaction scale of 1 to 1. Estonia and Latvia have a scale of 1 to 1. 17

19 Swedish Banking Q1 27 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 Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y Net interest income of which Swedbank Mortgage 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 Staff costs Profit based staff costs IT expenses Other expenses Depreciation/amortization Total expenses 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 Return on allocated equity,% 25,5 21,8 22,1 23,9 21,5 2,3 47,7 36,5 22, Income items Income from external customers Income from transactions with other business areas 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,5,53,5,51,52,56,36,46,53 Loan loss ratio, % -,4 -,8 -,8 -,11, -,3,2 -,2,4 Provision ratio for impaired loans, %

20 Baltic Banking, operations and investment Q1 27 Baltic Banking Operations Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y 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 Staff costs Profit based staff costs IT expenses Other expenses Depreciation/amortization Total expenses 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 Return on allocated equity,% 31,1 32,1 33,1 23,8 28,7 27,7 33,9 32,9 33,2 Income items Income from external customers Business volumes, SEK billion Lending Deposits Mutual funds & insurance Investments in associates Risk-weighted assets Total assets Total liabilities Full-time employees C/I-ratio,4,44,41,53,48,52,43,45,46 Loan loss ratio, %,35,27,29,31,26,29,37,55,3 Provision ratio for impaired loans, % Baltic Banking Investment Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y 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 Operating profit Tax expenses Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Minority interest Allocated equity Return on allocated equity,% neg. neg. neg. neg. neg. neg. neg. neg. 67,7 Income items Income from external customers Business volumes, SEK billion Lending Risk-weighted assets Total assets Total liabilities of which amortized revalued lending of which amortized revalued deposits

21 Baltic Banking, Estonia and Latvia Q1 27 Baltic Banking Estonia Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y 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 Staff costs Profit based staff costs IT expenses Other expenses Depreciation/amortization Total expenses Profit before loan losses Loan losses, net Operating profit Tax expenses -16 Profit for the period Profit for the period attributable to: Shareholders of Swedbank AB Minority interest -3 Allocated equity Return on allocated equity,% 39,8 43, 42,2 36,2 41,8 45,9 43,4 44,9 4,8 Income items Income from external customers Business volumes, SEK billion Lending Deposits Mutual funds & insurance Full-time employees C/I-ratio,36,38,36,41,39,49,38,42,4 Loan loss ratio, %,21%,22%,13%,26%,34% -,18%,35%,12% Baltic Banking Latvia Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y Net interest income Net commission income Net gains and losses on financial items at fair value Other income Total income Staff costs Profit based staff costs IT expenses Other expenses Depreciation/amortization Total expenses 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 Allocated equity Return on allocated equity,% 27,9 32,9 36,8 31,6 36,6 42,7 36,8 3,7 32,2 Income items Income from external customers Business volumes, SEK billion Lending Deposits Mutual funds & insurance Full-time employees C/I-ratio,41,44,39,46,43,52,45,5,52 Loan loss ratio, %,63%,38%,29%,5%,19%,13%,1%,58% 2

22 Baltic Banking, Lithuania and Russia Q1 27 Baltic Banking Lithuania Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y Net interest income Net commission income Net gains and losses on financial items at fair value Other income Total income Staff costs Profit based staff costs IT expenses Other expenses Depreciation/amortization Total expenses 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 1 Allocated equity Return on allocated equity,% 3,7 27,2 27,9 26,3 24,3 16,7 25,8 17, 25,5 Income items Income from external customers Business volumes, SEK billion Lending Deposits Mutual funds & insurance Full-time employees C/I-ratio,47,53,48,5,6,6,56,58,62 Loan loss ratio, %,19%,22%,45%,33%,5% 1,12%,33% 1,35% Baltic Banking Russia Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y Net interest income Net commission income Net gains and losses on financial items at fair value Other income Total income Staff costs Profit based staff costs IT expenses Other expenses Depreciation/amortization Total expenses 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 Return on allocated equity,% 28,1 3,7 21,2-61,9-5,6 26,1 1,8 32,2 68,8 Income items Income from external customers Business volumes, SEK billion Lending Deposits Full-time employees C/I-ratio,42,48,52 1,84,77,53,46,33,16 Loan loss ratio, %,81%,72%,93% -,8%,86%,91% 2,84%,33% 21

23 Swedbank Markets, Asset Management & Insurance Q1 27 Swedbank Markets Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y 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 Staff costs Profit based staff costs IT expenses Other expenses Depreciation/amortization Total expenses Profit before loan losses Loan losses, net Operating profit Tax expenses Profit for the period Profit for the period attributable to: Shareholders of Swedbank Minority interest Allocated equity Return on allocated equity,% 31,8 31, 2,6 34,6 22,8 22, 14, 22,8 22,8 Income items Income from external customers Income from transactions with other business areas 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,51,56,6,5,57,6,65,55,53 Loan loss ratio, %, -,7 -,11, -,8 -,44 -,3,84,3 Asset Management and Insurance Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y Net interest income Net commission income Net gains and losses on financial items at fair value Other income Total income Staff costs Profit based staff costs IT expenses Other expenses Depreciation/amortization Total expenses Operating profit Tax expenses Profit for the period Profit for the period attributable to: Shareholders of Swedbank Allocated equity Return on allocated equity,% 51,2 5,7 56,7 53,1 49,3 41,2 42,4 36,2 35,7 Income items Income from external customers Commissions paid to other business areas 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,39,39,35,38,36,45,4,45,44 22

24 Shared Services and New operations, Eliminations Q1 27 Shared Services and New Operations Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y 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 Staff costs Profit based staff costs Other expenses IT expenses Depreciation/amortization Total expenses Profit before loan losses Loan losses, net Operating profit Tax expenses Profit for the period Profit for the period attributable to: Shareholders of Swedbank Allocated equity Return on allocated equity,% neg. neg. 11,4 13,2 neg. 33,9 7,4 12, 5, Income items Income from external customers Income from other business areas Business volumes, SEK billion Lending Investments in associates 1 1 Risk-weighted assets Total assets Total liabilities Full-time employees C/I ratio 1, ,91,9,84 1,35,66,93,86 1,1 Loan loss ratio, % -,27,42, -,42 4,82 7,2-1,97 28,1-6,96 Eliminations Q1 Ch. % Ch. % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 SEKm 27 Q/Q Y/Y 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 Business volumes, SEKbn Mutual funds & insurance Other investment volume Total assets Total liabilities