Facts 23 October 2018
Contents page page General information 2 Asset quality 39 Swedbank in brief 2-3 Asset quality 39-42 Macro economic indicators 4-5 Credit impairments 43 Financial information, Group 6 Loans by collateral type and Assets taken over 44 Income statement, 5-year summary 6 Private Mortgage loans 45-46 Income statement, 9-quarter summary 7 Concentration risk 46 Balance sheet, 5-year summary 8 Capital adequacy 47 Balance sheet, 9 quarters, Equity and Goodwill 9 Credit risks, EAD distribution by business segment and by 47 Statement of changes in equity 10 customer segments Net interest income analysis 11 Capital adequacy parameters for credit risk - business segments 48 Income analysis 12 Capital adequacy parameters for credit risk - customer segment 49-50 Expense analysis 13 Capital adequacy, consolidated situation and leverage ratio 51 Variable pay 14 Estimated capital requirements by entity, Change in REA and 52 Business segments 15 Outstanding subordinated debt Swedish Banking 15-16 ICAAP 2015 - Scenario based stress test 53-54 Baltic Banking 17 Liquidity & Funding 55 Baltic Banking 17-18 Liquidity reserve and additional Liquid Assets 55 Estonia 19 Survival horizon 56 Latvia 20 Liquidity ratios 57 Lithuania 21 Debt securities in issue 58 Other 22 Issued long-term debt, by currency 59 Large Corporates & Institutions 23-24 Maturity distribution, long-term funding 60 Group Functions & Other 25-26 Outstanding benchmark bonds 61 Group Treasury 27 Outstanding short-term funding 62 Other 28 Maturity distribution, total balance sheet 63-64 Eliminations 29 Asset encumbrance 65-66 Product companies 30 Cover pool data 67-68 Swedbank Robur AB 30-31 Swedbank Mortgage AB, loan data 69 Swedbank Insurance 32-33 Rating 70 Baltic Life Insurance 34 Key figures 71-72 Baltic P&C Insurance 35 Equity and assets, monthly 73 Business volumes 36 Market shares 74 Loans 36 Swedbank Group by geography 75 Deposits and amounts owed to credit institutions 37 Employees 76 Interest-bearing Securities and Exposures towards the 38 Currency distribution and exchange rates 77 GIIPS countries and Deferred Tax Assets 38 Sensitivity analysis and market risk 78 Shareholders and share data 79 Definitions 80 Contacts and financial calendar 81
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 Long-term strategy Available full-service bank: We are convinced that simplicity and availability are necessary to build the trust and loyalty of our customers. So that customers can manage all their finances with us, we offer a comprehensive range of loans, payment services and savings products, ranging from basic transactional services such as consumer debit and credit cards to more complex advice for large companies and institutions. Our customers in Sweden and the Baltic countries can easily manage their finances through a distribution network comprising efficient digital solutions for day-to-day banking as well as more extensive personal advice. High cost efficiency: Greater transparency and more options for customers through digitisation also mean more price pressure on a number of banking products and services. To create value for customers, which requires both investments and competitive prices, our goal is to be the market leader in cost efficiency. This affects everything from how much capital we tie up to how effectively and well we work together. Offering what our customers need: Offering customers what they need and expect is critical to building trust and loyalty when digitisation gives customers more choice. By analysing the customer data we have and drawing on our advisors competence, we can more easily identify the financial services and products our customers need and more precisely target our offerings. Low risk: Keeping our risks low is the foundation to building public trust. It allows us to finance our operations through deposits from the public and funding from the capital markets as well as to lend capital to households and businesses at competitive prices and create sustainable growth. We achieve this through stable profitability combined with high-quality lending and solid capitalisation, but also through our ability to quickly adapt to changes in the market. 2
Swedbank in brief General information Sweden Population: 10.1m Private customers: 4.0m Corporate customers: 269 000 Organisations: 65 000 Branches: 191 ATMs 1) Cards: 4.3m Employees: 8 098 Latvia Population: 2.0m Private customers: 0.9m Corporate customers: 83 000 Branches: 33 ATMs: 370 Cards: 1.0m Employees: 1 587 Estonia Population: 1.3m Private customers: 0.9m Corporate customers: 132 000 Branches: 33 ATMs: 394 Cards: 1.1m Employees: 2 438 Lithuania Population: 2.9m Private customers: 1.5m Corporate customers: 68 000 Branches: 59 ATMs: 415 Cards: 1.7m Employees: 2 217 1) ATMs are owned and operated by Bankomat AB. More information is available on www.bankomat.se To support the business in Swedbank's four home markets, Swedbank also has a presence in neighbouring Norway, Finland and Denmark as well as the US, China, South Africa and Luxembourg. Group operational structure The financial reporting is divided into four segments: Swedish banking (formed by the four Swedish regions), Baltic Banking (consisting of the three Baltic banks), Large Corporate & Institutions and Group Functions & Other. Group Functions & Other currently includes Group Treasury, Digital Banking, Group Lending & Payments, Group Savings, Group IT, Group CVM, other group functions. Board of Directors President and CEO Internal audit Swedish Banking Baltic Banking Large Corporates & Institutions Group functions & Other Group Treasury, Digital Banking, Group Lending & Payments, Group Savings, Group IT, Group CVM Group executive committee Birgitte Bonnesen, President and CEO Aet Altroff, Head of Customer Value Management (CVM) Girts Bērziņš, Head of Strategy within Digital Banking Mikael Björknert, Chief Strategy Officer Lars-Erik Danielsson, Chief Credit Officer Anders Ekedahl, Head of Group IT Björn Elfstrand, Head of Group Savings Charlotte Elsnitz, Head of Baltic Banking Ragnar Gustavii, Head of CEO Office Cecilia Hernqvist, Head of Group Compliance Anders Karlsson, Chief Financial Officer Leif Karlsson, Head of Group Lending & Payments Ola Laurin, Head of LC&I Lotta Lovén, Head of Digital Banking Helo Meigas, Chief Risk Officer Carina Strand, Head of HR Christer Trägårdh, Head of Swedish Banking 3
General information Macro economic indicators GDP growth Average inflation rate (consumer price growth) % 2020F 2019F 2018F 2017 2016 2015 2014 % 2020F 2019F 2018F 2017 2016 2015 2014 Sweden 1.5 1.9 2.8 2.5 3.0 3.9 2.4 Sweden 2.7 2.5 2.1 1.8 1.0 0.0-0,2 Estonia 2.7 3.2 3.5 4.9 2.1 1.2 2.9 Estonia 2.5 3.0 3.4 3.4 0.1-0.5-0.1 Latvia 2.5 3.0 4.0 4.5 2.2 2.7 2.4 Latvia 2.3 2.5 2.6 2.9 0.1 0.2 0.6 Lithuania 2.0 2.5 3.6 3.9 2.3 1.6 3.0 Lithuania 2.5 2.5 2.7 3.7 0.9-0.9 0.1 Current account balance, % of GDP General Government Financial Balance, % of GDP 2020F 2019F 2018F 2017 2016 2015 2014 2020F 2019F 2018F 2017 2016 2015 2014 Sweden 4.8 4.7 4.4 4.2 5.2 4.9 4.2 Sweden 0.3 0.4 0.7 1.3 1.2-0.1-1.7 Estonia 1.4 1.6 2.5 3.1 1.9 1.9 1.0 Estonia -0.2-0.3-0.5-0.3-0.3 0.4 0.7 Latvia -2.2-2.0-0.8-0.8 1.4-1.2-2.0 Latvia -0.7-0.8-0.8-0.5 0.0-1.3-1.6 Lithuania -0.3 0.1-0.3 0.8-1.1-1.7 3.6 Lithuania 0.1 0.3 0.6 0.5 0.3-0,2-0.7 General government debt, % of GDP 2020F 2019F 2018F 2017 2016 2015 2014 GDP, 2017 GDP per capita (PPP) 2017, USD Inhabitants 2017 (millions) GDP 2017 (USDbn) Sweden 34.9 35.1 36.9 40.7 42.2 43.4 40.6 Sweden 46 949 10.1 538.0 Estonia 7.6 8.0 8.6 9.0 9.4 9.7 10.4 Estonia 29 481 1.3 25.9 Latvia 37.2 36.4 38.1 40.1 40.5 36.4 40.8 Latvia 25 064 1.9 30.3 Lithuania 36.4 37.8 35.3 39.7 40.1 42.8 40.7 Lithuania 29 524 2.8 47.2 Household debt, % of disposable income 1) Unemployment 2017 2016 2015 2014 2013 % 2020F 2019F 2018F 2017 2016 2015 2014 Sweden 186.1 181.3 176.5 170.6 169.7 Sweden 6.0 6.1 6.2 6.7 6.9 7.4 7.9 Estonia 1) n/a 69.7 68.6 70.2 70.8 Estonia 5.3 5.1 5.5 5.8 6.8 6.2 7.4 Latvia 1) n/a 37.6 39.9 43.8 49.7 Latvia 6.9 7.1 7.6 8.7 9.6 9.9 10.8 Lithuania 1) n/a 35.6 35.3 34.3 35.0 Lithuania 6.6 6.5 6.4 7.1 7.9 9.1 10.7 1) Gross debt-to-income ratio of households (ESA 2010) Source: Swedbank Reasearch - Macro Research, Eurostat, the World Bank & the Riksbank 4
Macro economic indicators General information Interest rates: Sweden & Eurozone, % Real estate price development, Sweden 1) Index, 2005=100 260 240 220 200 180 160 140 120 100 Stockholm Gothenburg Sweden Malmoe 1) House price index, monthly data (2005=100) for a single family home Source: Valueguard Index Sweden AB 2015 (Hox index) EUR 2 500 Real estate price development, Baltics 2) 3) 2 000 1 500 1 000 500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Jul 2018 Tallin Riga Vilnius 2) Average sales price per sqm for apartments Source: Land boards of respective country 3) Q3 2018 data for Baltics will be available in Q4 2018 Factbook. 5
Income statement, 5-year summary Financial information, Group Income statement, Group YTD YTD FY FY FY FY FY SEKm 2018 2017 % 2017 2016 4) 2015 3) 2014 2) 2013 Net interest income 18 893 18 269 3 24 595 22 850 22 476 22 159 21 624 Net commission income 1) 9 653 8 871 9 12 206 11 502 11 199 11 204 10 132 Net gains and losses on financial items, fair value 1 682 1 578 7 1 934 2 231 571 1 986 1 484 Net insurance 881 633 39 937 754 708 581 647 Share of the profit or loss of associates 1 057 624 69 971 2 467 863 980 852 Other income 1) 1 547 1 487 4 1 795 1 017 1 290 1 911 1 794 Total income 33 713 31 462 7 42 438 40 821 37 107 38 821 36 533 Staff costs 7 262 6 818 7 9 485 8 749 8 721 9 452 8 704 Variable staff costs 440 430 2 460 627 674 807 947 Other expenses 4 211 4 175 1 5 870 5 622 5 749 6 142 5 853 Depreciation/amortisation 516 429 20 600 629 672 718 739 Total expenses 12 429 11 852 5 16 415 15 627 15 816 17 119 16 243 Profit before impairments 21 284 19 610 9 26 023 25 194 21 291 21 702 20 290 Impairment of intangible assets 282 96 175 35 254 1 182 Impairment of tangible assets 14 21 31 72 256 693 Credit impairments 109 974-89 1 285 1 367 594 419 60 Operating profit 20 893 18 526 13 24 542 23 761 20 371 21 026 19 355 Tax expense 4 309 3 901 10 5 178 4 209 4 625 4 301 4 099 Profit for the period from continuing operations 16 584 14 625 13 19 364 19 552 15 746 16 725 15 256 Profit for the period from discontinued operations, after tax Profit for the period including non-controlling interest 16 584 14 625 13 19 364 19 552 15 746 16 725 15 256 Profit for the period attributable to: Shareholders of Swedbank AB 16 572 14 613 13 19 350 19 539 15 733 16 709 15 241 Non-controlling interests 12 12 0 14 13 13 16 15 Statement of Comprehensive Income YTD YTD FY FY FY FY FY SEKm 2018 2017 % 2017 2016 4) 2015 3) 2014 2) 2013 Profit for the period reported via Income statement 16 584 14 625 13 19 364 19 552 15 740 16 463 12 916 Items that will not be reclassified to the income statement Remeasurements of defined benefit pension plans -852-1 152-26 -1 928-3 110 3 539 463 2 264 Share related to associates, Remeasurements of defined benefit pension plans -34-41 -17-63 -76 88-9 12 Change in fair value attributable to changes in own credit risk of financial liabilities designated at fair value 13 Income tax 176 262-33 438 701-798 -101-500 Total -697-931 -25-1 553-2 485 2 829 353 1 776 Items that may be reclassified to the income statement Exchange differences on translating foreign operations: Gains/losses arising during the period 2 117 345 1 077 1 644-1 678 2 917 1 258 Reclassification adjustments to Income statement, Net gains and losses on financial items, fair value or profit for the period from discontinued operation 87 508 1 875 Reclassification adjustments to Income statement, net gains and losses on financial items at fair value 4-3 Hedging of net investments in foreign operations: Gains/losses arising during the period -1 733-217 -732-1 337 1 489-2 320-910 Reclassification adjustments to Income statement, net gains and losses on financial items at fair value 81 Reclassification adjustments to Income statement, profit for the period from discontinued operations -91-365 Cash flow hedges: Gains/losses arising during the period 14-110 -76 59 145 26-210 Reclassification adjustments to Income statement, Net interest income 10 13 16 7 17 83 Reclassification adjustments to Income statement, Net gains and losses on financial items, fair value -Reclassification adjustments to initial carrying amount of hedged item Foreign currency basis risk: Gains/losses arising during the period -69 losses on financial items at fair value Share of other comprehensive income of associates 136-31 -80 126-135 -29-115 Tax Income tax 350 72 161 280-358 505 248 Reclassification adjustments to Income statement, tax -2-3 -4-2 -4-18 Reclassification adjustments to Income statement, profit for the period from discontinued operations 28 80 Total 815 67 445 781-508 1 335 2 211 Other comprehensive income for the period, net of tax 118-864 -1 108-1 704 2 321 1 688 3 987 Total comprehensive income for the period 16 702 13 761 21 18 256 17 848 18 061 18 151 16 903 Total comprehensive income attributable to: Shareholders of Swedbank AB 16 690 13 749 21 18 242 17 835 18 047 18 137 16 887 Non-controlling interests 12 12 0 14 13 14 14 16 1) Following a review of the services which are provided to the savings banks, Swedbank has moved a part of the income, which was previously reported under the line item Other Income, to Commission Income. Historic comparative figures have been restated. For the full year 2017, the change means that SEK 176m has moved from Other Income to Commission Income. The change has no impact on Swedbank s Total Income. 2) Q2 2014 includes 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. 3) Q2 2015 includes increased tax expense with 447 SEKm related to Estonian dividend and US tax. 4) Includes income in Q2 2016 from Visa Inc s acquisition of Visa Europe, total effect SEK 2 115m of which Net gains and losses on financial items of SEK 457m, and Share of the profit or loss of associates of SEK 1 658m. In 2013 Swedbank decided to discontinue its operations in Russia and Ukraine. In Q2 2013 the divestment of the Ukrainan subsidiary was finalised. From 1 January 2018, the results reflect that IFRS 9 Financial instruments has been adopted. Prior periods have not been restated. 6
Income statement, 9-quarter summary Financial information, Group Income statement, Group Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 SEKm 2018 2018 2017 2017 2017 2017 2016 2016 Net interest income 6 326 53 6 273 6 294 6 326 6 208 6 090 5 971 6 000 5 837 Net commission income 1) 3 336 100 3 236 3 081 3 335 2 962 3 050 2 859 3 097 2 880 Net gains/losses on financial items, fair value 488-147 635 559 356 525 567 486 285 669 Net insurance 326 26 300 255 304 230 207 196 220 174 Share of profit or loss of associates 440 58 382 235 347 245 204 175 109 238 Other income 1) 260-711 971 316 308 248 275 964 236 242 Total income 11 176-621 11 797 10 740 10 976 10 418 10 393 10 651 9 947 10 040 Staff costs 2 282-220 2 502 2 478 2 667 2 273 2 269 2 276 2 283 2 138 Variable staff costs 175 64 111 154 30 141 117 172 157 177 Other expenses 1 365-112 1 477 1 369 1 695 1 316 1 439 1 420 1 564 1 322 Depreciation/amortisation 176 4 172 168 171 153 141 135 153 167 Total expenses 3 998-264 4 262 4 169 4 563 3 883 3 966 4 003 4 157 3 804 Profit before impairments 7 178-357 7 535 6 571 6 413 6 535 6 427 6 648 5 790 6 236 Impairment of intangible assets 282 79 96 35 Impairment of tangible assets 7 11 1 2 21 1 Credit Impairments 117 252-135 127 311 235 400 339 593 201 Operating profit 7 061-327 7 388 6 444 6 016 6 193 6 026 6 307 5 141 6 034 Tax expense 1 530 161 1 369 1 410 1 277 1 444 1 276 1 181 996 1 215 Profit for the period from continuing operations 5 531-488 6 019 5 034 4 739 4 749 4 750 5 126 4 145 4 819 Profit for the period from discontinued operations, after tax Profit for the period including non-controlling interest 5 531-488 6 019 5 034 4 739 4 749 4 750 5 126 4 145 4 819 Profit for the period attributable to: Shareholders of Swedbank AB 5 525-489 6 014 5 033 4 737 4 743 4 746 5 124 4 142 4 816 Non-controlling interests 6 5 5 1 2 6 4 2 3 3 Statement of comprehensive income Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 SEKm 2018 2018 2017 2017 2017 2017 2016 2016 Profit for the period reported via Income statement 5 531-488 6 019 5 034 4 739 4 749 4 750 5 126 4 145 4 819 Items that will not be reclassified to the income statement Remeasurements of defined benefit pension plans 261 1 226-965 -148-776 -37-511 -604 1 782-775 Share related to associates, Remeasurements of defined benefit pension plans 5 38-33 -6-22 -5-16 -20 65-23 Change in fair value attributable to changes in own credit risk of financial liabilities designated at fair value 4 1 3 6 Income tax -55-254 199 32 176 9 116 137-407 176 Total 215 1 011-796 -116-622 -33-411 -487 1 440-622 Items that may be reclassified to the income statement Exchange differences on translating foreign operations: Gains/losses arising during the period -559-2 522 713 1 963 732 134 298-87 -256 772 Reclassification adjustments to income statement, Net gains/losses on financial items at fair value or profit for the period from discontinued operation Reclassification adjustments to Income statement, net gains and losses on financial items at fair value 4-3 Hedging of net investments in foreign operations: Gains/losses arising during the period 421 1 986-589 -1 565-515 -122-176 81 221-650 Reclassification adjustments to Income statement, net gains and losses on financial items at fair value 81 Reclassification adjustments to Income statement, profit for the period from discontinued operations Cash flow hedges: Gains/losses arising during the period -5-19 5 14 34 3-113 -72 72 Reclassification adjustments to Income statement, Net interest income 3 3 4 3 3 4 Foreign currency basis risk: Gains/losses arising during the period 10 56-33 -46 Reclassification adjustments to income statement, Net gains and losses on financial items at fair value Reclassification adjustments to Income statement, Net gains/losses on financial items, fair value -Reclassification adjustments to initial carrying amount of hedged item Share of other comprehensive income of associates -8-100 52 92-49 25-42 -14-20 72 Tax Income tax relating to components of other comprehensive income -88-439 87 351 89 26 40 7-35 127 Reclassification adjustments to Income statement, tax -1-1 -1-1 -1-1 Reclassification adjustments to Income statement, profit for the period from discontinued operations Total -229-464 235 809 378 68 123-124 -160 393 Other comprehensive income for the period, net of tax -14 547-561 693-244 35-288 -611 1 280-229 Total comprehensive income for the period 5 517 59 5 458 5 727 4 495 4 784 4 462 4 515 5 425 4 590 Shareholders of Swedbank AB 5 511 58 5 453 5 726 4 493 4 778 4 459 4 512 5 422 4 587 1) Following a review of the services which are provided to the savings banks, Swedbank has moved a part of the income, which was previously reported under the line item Other Income, to Commission Income. Historic comparative figures have been restated. For the full year 2017, the change means that SEK 176m has moved from Other Income to Commission Income. The change has no impact on Swedbank s Total Income. From 1 January 2018, the results reflect that IFRS 9 Financial instruments has been adopted. Prior periods have not been restated. 7
Balance sheet, 5-year summary Financial information, Group Balance sheet 30 Sep 30 Sep 1 Jan 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec SEKm 2018 2017 % 2018 2017 2016 2015 2014 2013 Assets Cash and balances with central banks 296 884 336 283-12 200 364 200 371 121 347 186 312 113 768 59 382 Loans to credit institutions 39 247 37 988 3 31 020 30 746 32 197 86 418 113 820 82 278 Loans to the public 1 646 757 1 541 548 7 1 534 893 1 535 198 1 507 247 1 413 955 1 404 507 1 264 910 Bonds and other interest-bearing securities 164 890 210 205-22 145 409 145 034 182 072 165 162 170 680 182 399 Financial assets for which customers bear the investment risk 200 274 176 196 14 180 320 180 320 160 114 153 442 143 319 122 743 Derivatives 61 329 66 127-7 55 680 55 680 87 811 86 107 123 202 64 352 Other assets 52 283 91 528-43 62 766 65 287 63 415 57 459 52 001 48 038 Total assets 2 461 664 2 459 875 0 2 210 452 2 212 636 2 154 203 2 148 855 2 121 297 1 824 102 Liabilities and equity Amounts owed to credit institutions 83 984 136 687-39 68 244 68 055 71 831 150 493 171 453 121 621 Deposits and borrowings from the public 958 209 935 754 2 855 713 855 609 792 924 748 271 676 679 620 608 Debt securites in issue 921 698 911 833 1 850 209 844 204 841 673 826 535 835 012 726 275 Financial liabilities for which customers bear the investment risk 201 154 176 900 14 181 124 181 124 161 051 157 836 146 177 125 548 Derivatives 51 138 53 331-4 46 200 46 200 85 589 68 681 85 694 55 011 Other liabilites 77 316 85 860-10 51 665 58 364 44 176 49 084 69 952 55 175 Subordinated liabilities 34 275 30 448 13 25 864 25 508 27 254 24 613 18 957 10 159 Equity 133 890 129 062 4 131 433 133 572 129 705 123 342 117 373 109 705 Total liabilities and equity 2 461 664 2 459 875 0 2 210 452 2 212 636 2 154 203 2 148 855 2 121 297 1 824 102 From 1 January 2018, the results reflect that IFRS 9 Financial instruments has been adopted. Prior periods have not been restated. 8
Financial information, Group Balance sheet 9 quarters, Equity and Goodwill Balance sheet 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep SEKm 2018 SEKm 2018 2018 2017 2017 2017 2017 2016 2016 Assets Cash and balances with central banks 296 884-138 556 435 440 398 889 200 371 336 283 432 540 407 299 121 347 262 773 Loans to credit institutions 39 247-318 39 565 36 021 30 746 37 988 38 624 39 128 32 197 94 354 Loans to the public 1 646 757 27 785 1 618 972 1 574 433 1 535 198 1 541 548 1 521 973 1 525 393 1 507 247 1 526 635 Interest-bearing securities 164 890-48 757 213 647 147 858 145 034 210 205 127 112 174 754 182 072 182 525 Value change of interest hedged item in portfolio hedge 579-839 1 418 1 032 789 918 1 007 1 228 1 482 2 413 Financial assets for which customers bear the investment risk 200 274 6 768 193 506 182 487 180 320 176 196 173 051 168 293 160 114 155 859 Shares and participating interests 5 981 2 125 3 856 8 201 19 850 25 532 12 501 46 014 23 897 24 200 Investments in associates 6 728 335 6 393 6 376 6 357 7 423 7 211 7 265 7 319 7 228 Derivatives 61 329-24 266 85 595 62 594 55 680 66 127 76 372 76 642 87 811 93 294 Intangible fixed assets 16 945-8 16 953 16 931 16 329 15 961 14 795 14 367 14 279 14 293 of which goodwill 13 605-132 13 737 13 737 13 100 12 923 12 463 12 385 12 408 12 468 Tangible assets 1 904-74 1 978 1 981 1 955 1 970 1 867 1 845 1 864 1 928 Current tax assets 1 575 88 1 487 1 550 1 375 1 019 1 326 1 200 1 796 3 858 Deferred tax assets 171-3 174 181 173 161 155 187 160 183 Other assets 16 217-7 943 24 160 29 189 14 499 33 260 12 408 20 331 8 067 18 948 Prepaid expenses and accrued income 2 183-706 2 889 1 404 3 960 5 284 5 179 4 739 4 551 5 252 Total assets 2 461 664-184 369 2 646 033 2 469 127 2 212 636 2 459 875 2 426 121 2 488 685 2 154 203 2 393 743 Liabilities and equity Liabilities Amounts owed to credit institutions 83 984-22 465 106 449 142 493 68 055 136 687 154 974 128 015 71 831 158 128 Deposits and borrowings from the public 958 209-41 996 1 000 205 953 763 855 609 935 754 909 223 917 647 792 924 879 181 Debt securities in issue 921 698-104 954 1 026 652 902 370 844 204 911 833 891 296 975 920 841 673 905 496 Financial liabilities for which customers bear the investment risk 201 154 6 975 194 179 184 272 181 124 176 900 173 859 170 535 161 051 156 741 Derivatives 51 138-14 308 65 446 42 303 46 200 53 331 70 813 62 657 85 589 81 014 Current tax liabilities 1 195 73 1 122 1 543 1 980 1 579 1 303 2 233 992 1 329 Deferred tax liabilities 1 626 297 1 329 1 686 2 182 2 371 2 045 2 168 2 438 1 987 Short positions securities 27 545-6 087 33 632 32 671 14 459 30 789 21 269 20 507 11 614 19 424 Other liabilities 37 170-10 106 47 276 49 008 24 580 37 945 30 744 45 467 14 755 26 289 Accrued expenses and prepaid income 3 307-466 3 773 3 387 9 650 8 607 9 459 12 954 10 917 11 629 Provisions 6 473-552 7 025 6 204 5 513 4 569 4 436 3 975 3 460 5 443 Subordinated liabilities 34 275 3 602 30 673 26 679 25 508 30 448 32 522 26 980 27 254 22 899 Total liabilities 2 327 774-189 987 2 517 761 2 346 379 2 079 064 2 330 813 2 301 943 2 369 058 2 024 498 2 269 560 Equity Non-controlling interests 209 6 203 203 200 198 192 193 190 184 Equity attributable to shareholders of Swedbank AB 133 681 5 612 128 069 122 545 133 372 128 864 123 986 119 434 129 515 123 999 Total equity 133 890 5 618 128 272 122 748 133 572 129 062 124 178 119 627 129 705 124 183 Total liabilities and equity 2 461 664-184 369 2 646 033 2 469 127 2 212 636 2 459 875 2 426 121 2 488 685 2 154 203 2 393 743 Equity attributable to shareholders of Swedbank AB, 30 Sep 2018 Goodwill, 30 Sep 2018 SEKm Swedbank AB (Sweden) 85 883 Swedbank Robur 328 Swedbank Mortgage (Sweden) 46 046 Swedbank Försäkring 651 Swedbank Robur (Sweden) 2 083 Ölands Bank AB 9 Swedbank Försäkring (Sweden) 2 504 Swedbank (Estonia) 4 381 Sparia Försäkring Group (Sweden) 150 Swedbank (Latvia) 2 256 Swedbank (Estonia) 17 552 Swedbank (Lithuania) 3 831 Swedbank (Latvia) 8 101 PayEx AB 430 Swedbank (Lithuania) 8 092 Group total 11 886 PayEx AB 293 Ektornet (Sweden) 152 Goodwill within parent company: Other subsidiaries 1 998 Swedbank AB (Sweden) 1 719 Total legal equity 172 854 Total goodwill 13 605 Group adjustments and eliminations -39 173 Total equity attributable to shareholders of Swedbank AB 133 681 SEKm From 1 January 2018, the results reflect that IFRS 9 Financial instruments has been adopted. Prior periods have not been restated. 9
Statement of changes in equity Financial information, Group Noncontrolling Statement of changes in equity SEKm Shareholders' equity interest Total equity Share capital Other contributed equity Exchange Hedging of differences, net subsidiaries investments in and foreign associates operations Cash flow hedges Foreign Currency Basis Risk Reserve Own credit risk reserve Closing balance 31 December 2017 24 904 17 275 3 602-2 255 28 89 818 133 372 200 133 572 Impact from transition to IFRS 9-38 38-36 -2 105-2 141 2-2 139 Opening balance 1 January 2018 24 904 17 275 3 602-2 255-10 38-36 87 713 131 231 202 131 433 Dividends -14 517-14 517-5 -14 522 Share based payments to employees 277 277 277 Contribution 0 Total comprehensive income for the period 2 253-1 395 11-54 10 15 865 16 690 12 16 702 Closing balance 30 September 2018 24 904 17 275 5 855-3 650 1-16 -26 89 338 133 681 209 133 890 Retained earnings Total Specification of Exchange differences, subsidiaries and associates 30 Sep 31 Dec Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 2017 2018 2018 2018 2017 2017 2017 2017 2016 2016 Estonian Operations 3 041 2 009-274 346 960 369 67 153-46 -129 388 Latvian Operations 1 411 922-127 162 454 167 30 69-21 -58 175 Lithuanian Operations 1 517 955-149 187 524 193 36 79-23 -67 199 Norwegian Operations -142-280 -8 52 94-50 26-43 -15-21 74 Robur, Ektornet and other 28-4 -9 18 23 8 0-1 3-2 5 Total 5 855 3 602-567 765 2 055 687 159 257-102 -277 841 Specification of Hedging of net investment in foreign operations 30 Sep 31 Dec Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 2017 2018 2018 2018 2017 2017 2017 2017 2016 2016 Estonian Operations -2 014-1 356 170-237 -591-227 -40-92 27 81-234 Latvian Operations -796-491 77-109 -273-99 -18-40 12 34-102 Lithuanian Operations -843-536 77-111 -273-99 -18-39 12 36-99 Norwegian Operations 65 167 6-41 -67 28-20 33 12 21-58 Robur, Ektornet and other -62-39 3-9 -17 59 1 1 0-2 -14 Total -3 650-2 255 333-507 -1 221-338 -95-137 63 170-507 Specification of Cash flow hedges 30 Sep 31 Dec Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 2017 2018 2018 2018 2017 2017 2017 2017 2016 2016 Amendments due to the adoption of IFRS 9-38 Group Treasury 0 27-4 4 11 29 4 3-86 -53 59 Other 1 1-0 -0-0 -0 0 0 1 Total 1-10 -4 4 11 29 4 3-85 -53 59 10
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 2018 2017 Y/Y 2018 2018 2018 2017 2017 2017 2017 2016 2016 Interest income Loans to credit institutions 83-10 43 23 17 70-19 8 1-44 15 Loans to the public 23 225 22 520 3 7 882 7 795 7 548 7 502 7 534 7 523 7 463 7 555 7 507 Interest-bearing securities 159 158 1 99 39 21 24 38 50 70 116 137 Derivatives, income 1 506 724 666 417 423 302 226 209 289 179 256 Other 613 999-39 205 222 186 242 358 367 274 9 231 Total interest income including negative yield on financial assets 25 586 24 391 5 8 895 8 496 8 195 8 140 8 137 8 157 8 097 7 815 8 146 of which interest income reported in net gains/ losses on financial items at fair value 223 264-16 131 31 61 79 16 61 187 264 309 Interest income, including negative yield on financial assets, according to income statement 25 363 24 127 5 8 764 8 465 8 134 8 061 8 121 8 096 7 910 7 551 7 837 Interest expense Amounts owed to credit institutions -803-566 42-307 -207-289 -255-243 -175-148 98-134 Deposits and borrowings from the public -959-976 -2-321 -343-295 -305-371 -339-266 -166-293 of which deposits guarantee fees -307-336 -9-96 -107-104 -106-99 -119-118 -110-101 Debt securities in issue -9 641-8 200 18-3 664-3 246-2 731-2 784-2 696-2 700-2 804-2 379-3 649 of which state guarantee fees Subordinated liabilities -749-925 -19-260 -248-241 -268-310 -311-304 -251-235 Derivatives, expenses 1) 7 047 5 945 19 2 564 2 342 2 141 2 278 2 076 1 854 2 015 1 407 2 507 Other -1 278-917 39-429 -459-390 -308-304 -263-350 -163-176 of which resolution fee -1 242-904 37-414 -446-382 -301-300 -261-343 -160-164 Total interest expense including negative yield on financial liabilities -6 383-5 639 13-2 417-2 161-1 805-1 642-1 848-1 934-1 857-1 454-1 980 of which interest expense reported in net gains/ losses on financial items at fair value 87 219-60 21 31 35 93 65 72 82 97 20 Interest expense, including negative yield on financial liabilities, according to income statement -6 470-5 858 10-2 438-2 192-1 840-1 735-1 913-2 006-1 939-1 551-2 000 Net interest income 18 893 18 269 3 6 326 6 273 6 294 6 326 6 208 6 090 5 971 6 000 5 837 Average balances Loans to credit institutions 38 903 36 672 6 41 271 39 572 35 311 41 988 37 346 37 497 36 274 74 299 96 463 Loans to the public 1 591 310 1 528 003 4 1 631 652 1 593 910 1 551 065 1 545 913 1 527 893 1 528 059 1 525 898 1 525 959 1 523 849 Interest-bearing securities 202 843 190 248 7 230 843 197 466 169 174 203 551 175 492 167 309 208 285 183 145 175 117 Interest-bearing assets 1 833 056 1 754 923 4 1 903 766 1 830 948 1 755 549 1 791 452 1 740 731 1 732 865 1 770 457 1 783 403 1 795 429 Derivatives 70 341 78 300-10 75 578 78 128 59 193 66 074 75 938 75 959 82 106 98 528 97 751 Other assets 635 950 605 968 5 652 563 665 980 605 452 598 191 621 077 678 812 548 737 463 497 573 923 Total assets 2 539 347 2 439 191 4 2 631 907 2 575 056 2 420 194 2 455 717 2 437 746 2 487 636 2 401 300 2 345 428 2 467 103 Amounts owed to credit institutions 121 037 141 673-15 109 320 125 983 129 525 130 952 153 017 151 998 119 915 155 611 167 379 Deposits and borrowings from the public 950 810 902 857 5 977 355 963 855 924 308 925 144 911 538 927 254 875 069 860 757 959 840 Debt securities in issue 960 420 910 650 5 1 007 962 972 440 902 903 911 368 896 625 935 240 911 563 869 786 894 044 Subordinated liabilities 28 855 29 512-2 31 586 28 965 25 924 28 168 31 722 29 897 27 036 24 257 22 807 Interest-bearing liabilities 2 061 121 1 984 692 4 2 126 223 2 091 243 1 982 659 1 995 632 1 992 902 2 044 389 1 933 583 1 910 411 2 044 070 Derivatives 54 761 71 081-23 60 322 56 823 46 694 51 503 69 040 65 250 76 780 85 826 82 278 Other liabilities 293 584 257 009 14 314 479 301 618 259 539 277 180 249 384 256 075 262 401 222 283 218 853 Total liabilities 2 409 466 2 312 782 4 2 501 024 2 449 684 2 288 892 2 324 315 2 311 326 2 365 714 2 272 764 2 218 520 2 345 201 Equity 129 881 126 409 3 130 883 125 372 131 303 131 402 126 420 121 922 128 536 126 908 121 902 Total liabilities and equity 2 539 347 2 439 191 4 2 631 907 2 575 056 2 420 195 2 455 717 2 437 746 2 487 636 2 401 300 2 345 428 2 467 103 Average interest rates YTD YTD Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 % 2018 2017 Y/Y 2018 2018 2018 2017 2017 2017 2017 2016 2016 Loans to credit institutions 0.28-0.04 0.32 0.42 0.23 0.19 0.67-0.20 0.09 0.01-0.24 0.06 Loans to the public 1.95 1.97-0.02 1.93 1.96 1.95 1.94 1.97 1.97 1.96 1.98 1.97 Interest-bearing securities 0.10 0.11-0.01 0.17 0.08 0.05 0.05 0.09 0.12 0.13 0.25 0.31 Interest-bearing assets 1.71 1.72-0.02 1.69 1.72 1.73 1.70 1.74 1.75 1.70 1.71 1.71 Amounts owed to credit institutions 0.88 0.53 0.35 1.12 0.66 0.89 0.78 0.64 0.46 0.49-0.25 0.32 Deposits and borrowings from the public 0.13 0.14-0.01 0.13 0.14 0.13 0.13 0.16 0.15 0.12 0.08 0.12 Debt securities in issue 1.34 1.20 0.14 1.45 1.34 1.21 1.22 1.20 1.15 1.23 1.09 1.63 Subordinated liabilities 3.46 4.18-0.72 3.29 3.42 3.72 3.81 3.91 4.16 4.50 4.14 4.12 Interest-bearing liabilities 0.79 0.72 0.07 0.86 0.77 0.72 0.72 0.73 0.69 0.73 0.56 0.84 Net interest margin total assets 1.01 1.03-0.02 0.98 0.98 1.06 1.06 1.03 1.00 1.04 1.08 1.00 Interest-bearing securities are reported net less sold, not held, securities. Interest income on impaired loans is not accrued. 1) Derivatives are mainly used to hedge FX and interest rate risk. Interest rate risks arises within the banking operations when there is a mismatch between the interest fixing periods of assets and liabilities. The positive interest expense on derivatives is primarily a function of entered swap agreements, in which Swedbank receives fixed rates to match payments on long-term debt issuance and pays floating rates to match payments received on floating rate loans to the public. Interest income and interest expense on derivatives which are held for trading financial instruments and related interests within LC&I are excluded from net interest income and reported as net gains and losses on financial items at fair value. 11
Income analysis Financial information, Group Income analysis, Group YTD YTD % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 2017 Y/Y 2018 2018 2018 2017 2017 2017 2017 2016 2016 Net interest income 18 893 18 269 3 6 326 6 273 6 294 6 326 6 208 6 090 5 971 6 000 5 837 Payment processing 697 623 12 245 217 235 215 205 209 209 244 208 Card commissions 2 370 2 219 7 838 821 711 764 797 750 672 749 791 Service concepts 750 485 55 241 258 251 252 186 154 145 127 129 Asset management & Custody 3 839 3 476 10 1 337 1 283 1 219 1 396 1 174 1 172 1 130 1 205 1 063 Life insurance 302 361-16 103 90 109 110 118 120 123 115 120 Securities 111 189-41 31 43 37 89 13 84 92 134 42 Corporate Finance 88 111-21 34 25 29 26 17 49 45 57 55 Lending and Guarantees 897 830 8 308 310 279 279 273 292 265 286 291 Deposits 132 151-13 41 42 49 49 51 51 49 32 33 Real estate brokerage 137 153-10 48 50 39 45 53 57 43 53 57 Non-Life insurance 39 38 3 15 14 10 19 14 15 9 17 14 Other commission income 291 235 24 95 83 113 91 61 97 77 78 77 Net commission income 1) 9 653 8 871 9 3 336 3 236 3 081 3 335 2 962 3 050 2 859 3 097 2 880 Financial instruments for trading-related business 1 937 2 194-12 693 685 559 516 516 853 825 343 692 Financial instruments intended to hold until maturity -255-616 -59-205 -50-160 9-286 -339-58 -23 Net gains and losses on financial items at fair value 1 682 1 578 7 488 635 559 356 525 567 486 285 669 Net insurance 881 633 39 326 300 255 304 230 207 196 220 174 Sparbanken Skåne/Färs & Frosta Sparbank 43 44-2 19 15 9 17 17 16 11 12 9 Swedbank Sjuhärad 103 109-6 34 36 33 33 38 39 32 31 38 Other jointly owned banks in Sweden 66 54 22 23 24 19 18 19 19 16 10 18 EnterCard 378 351 8 100 136 142 212 124 139 88 82 120 VISA 2) 442 50 245 166 31 48 25-7 32-31 31 Other companies 25 16 56 19 5 1 19 22-2 -4 5 23 Share of the profit or loss of associates 1 057 624 69 440 382 235 347 245 204 175 109 238 IT/administrative services to savings banks 639 556 15 206 213 219 197 169 199 188 160 167 Assets taken over 9 42-79 2 4 3 27 25 7 10 5-4 Other 3) 899 889 1 52 754 94 84 54 69 766 71 79 Other income 1) 1 547 1 487 4 260 971 316 308 248 275 964 236 242 Total income 33 713 31 462 7 11 176 11 797 10 740 10 976 10 418 10 393 10 651 9 947 10 040 1) Following a review of the services which are provided to the savings banks, Swedbank has moved a part of the income, which was previously reported under the line item Other Income, to Commission Income. Historic comparative figures have been restated. For the full year 2017, the change means that SEK 176m has moved from Other Income to Commission Income, the majority of which will move to Payments Processing. The change has no impact on Swedbank s Total Income. 2) Q2 2018 includes one-off of SEK 85m and Q3 2018 includes one-off of SEK 180m. 3) Q1 2017 includes effect from sale of Hemnet, Other income of SEK 680m 12
Expense analysis Financial information, Group Expense analysis, Group YTD YTD % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 2017 Y/Y 2018 2018 2018 2017 2017 2017 2017 2016 2016 Staff costs Salaries and other remunerations 4 641 4 406 5 1 427 1 633 1 581 1 770 1 468 1 465 1 473 1 477 1 417 Variable staff costs 1) 440 430 2 175 111 154 30 141 117 172 157 177 Pension costs 1) 846 711 19 297 252 297 217 238 236 237 234 184 Social insurance charges 1) 1 456 1 396 4 447 509 500 542 466 465 465 451 451 Training costs 80 79 1 23 28 29 42 23 29 27 39 16 Other staff costs 239 226 6 88 80 71 96 78 74 74 82 70 Total staff costs 7 702 7 248 6 2 457 2 613 2 632 2 697 2 414 2 386 2 448 2 440 2 315 Other expenses Premises and rents 853 843 1 282 287 284 309 277 279 287 315 282 IT expenses 1 422 1410 1 429 529 464 553 444 475 491 524 437 Telecommunications and postage 104 97 7 35 34 35 36 27 30 40 27 21 Advertising, PR and marketing 185 195-5 57 60 68 111 51 74 70 89 62 Consultants 203 227-11 77 75 51 99 67 90 70 76 76 Compensation to Savings Banks 168 167 1 56 56 56 56 55 56 56 60 58 Other purchased services 609 540 13 219 206 184 237 194 169 177 192 177 Security transport and alarm systems 43 50-14 15 15 13 21 17 19 14 21 18 Supplies 69 59 17 19 31 19 36 20 21 18 37 17 Travel 158 171-8 37 65 56 67 45 67 59 74 39 Entertainment 33 32 3 10 13 10 21 10 11 11 18 10 Repair/maintenance of inventories 70 86-19 17 21 32 29 14 41 31 32 25 Other expenses 294 298-1 112 85 97 120 95 107 96 99 100 Total other expenses 4 211 4 175 1 1 365 1 477 1 369 1 695 1 316 1 439 1 420 1 564 1 322 Depreciation/amortisation 516 429 20 176 172 168 171 153 141 135 153 167 Total expenses 12 429 11 852 5 3 998 4 262 4 169 4 563 3 883 3 966 4 003 4 157 3 804 1) Social insurance charges and pension costs related to variable pay are presented as variable staff costs. IT-related expenses YTD YTD % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 2017 Y/Y 2018 2018 2018 2017 2017 2017 2017 2016 2016 IT expenses Software incl. licenses 186 222-16 29 76 81 132 77 71 75 166 143 IT-consultants 34 40-14 8 13 13 15 12 13 14 15 12 IT expenses externally bought by business areas 996 906 10 334 358 304 330 273 302 331 261 215 Other externally bought IT-services 206 242-15 58 82 66 76 82 89 71 82 67 Total IT expenses 1 422 1 410 1 429 529 464 553 444 475 491 524 437 Other IT-related expenses Staff costs (Swedbank's internal IT-organisation) 2) 239 187 28 74 81 84 71 61 63 63 75 80 Leasing and depreciation of IT-equipment 108 100 8 32 40 36 39 37 33 30 30 36 Other IT-related expenses 199 92 116 88 54 57 46 32 42 18-18 17 Total other IT-related expenses 546 379 44 194 175 177 156 130 138 111 87 133 Total IT- and IT-related expenses 1 968 1 789 10 623 704 641 709 574 613 602 611 570 Capitalised IT-related expenses 433 537-19 166 139 129 226 198 231 108 138 86 2) IT-related staff costs outside the internal IT organisation are not included. 13
Variable pay Financial information, Group Income Statement Impact Actual Forecast Year Program FY 2014 FY 2015 FY 2016 FY 2017 YTD 2018 2018-2022 programs 2010 Eken 2010 4 382 382 2011 Eken 2011 75 10 603 846 IP 2011 24 2 243 2012 Eken 2012 183 150-8 690 1 015 IP 2012 32 27 1 325 2013 Eken 2013 104 95 111 14 435 811 IP 2013 33 32 39 5 376 2014 Eken 2014 146 123 141 93 21 18 521 777 IP 2014 205 10 26 6 5 9 256 2015 Eken 2015 62 63 49 47 77 251 489 IP 2015 159 32 13 15 34 238 2016 Eken 2016 79 65 56 158 302 513 IP 2016 143 20 14 48 211 2017 Eken 2017 75 52 217 292 451 IP/IPAM 2017 120 4 39 159 2018 Eken 2018 70 392 392 678 IP/IPAM 2018 150 286 286 Other variable pay 2 4 6 2 286 Total 808 674 627 460 440 1 280 6 248 1) Variable Pay in Swedbank includes two programs, Eken and Individual Program ("IP"). Eken comprises essentially all employees in the Group and consists of deferred compensation in the form of shares. IP comprises around 700 employees and consists of cash and deferred compensation in the form of shares. 2) Duration period for each program 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. 3) The share part is recognized in the P/L over the duration period, 50 months, while cash part is recognized over 12 months (performance year). IP 2017 and IP 2018 programme excepted. 4) For IP 2017 and IP 2018 both the share part and the cash part have a split of duration periods. The recognition in the P/L follows the duration periods. 5) Positive Economic Profit is a prerequisite for Eken and IP. Size of Eken has direct connection to Group ROE. 6) Recognized expenses for shares 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). 14
Swedish Banking Business segments YTD YTD Δ % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 2017 Y/Y 2018 2018 2018 2017 2017 2017 2017 2016 2016 Income statement Net interest income 11 564 11 242 3 3 847 3 840 3 877 3 861 3 812 3 792 3 638 3 657 3 578 Payment processing 42 76-45 11-10 41 32 15 22 39 27 27 Card commission 1 234 1 219 1 418 421 395 395 434 415 370 415 462 Service concepts 544 453 20 178 185 181 200 172 141 140 127 129 Asset management and custody 3 114 2 772 12 1 089 1 044 981 997 949 940 883 868 824 Life Insurance 262 313-16 85 87 90 90 101 105 107 94 106 Securities 138 211-35 41 44 53 90 51 82 78 91 67 Lending and guarantees 187 219-15 62 64 61 49 83 75 61 71 90 Deposits 20 28-29 6 5 9 9 9 8 11 10 11 Corporate finance 2 2 1 3 Real estate brokerage 137 153-10 48 50 39 45 53 57 43 53 57 Non-Life insurance 47 45 4 16 15 16 16 15 16 14 15 14 Other commissions 53 30 77 13 22 18 37-15 28 17 23 23 Net commission income 5 778 5 521 5 1 967 1 927 1 884 1 960 1 867 1 889 1 765 1 795 1 813 Net gains and losses on financial items at fair value 308 290 6 93 119 96 108 88 105 97 58 74 Net insurance 430 297 45 154 156 120 176 109 89 99 106 79 Share of the profit or loss of associates 607 569 7 192 213 202 300 217 208 144 143 211 Other income 1) 2) 875 797 10 51 759 65 41 29 38 730 61 48 Total income 19 562 18 716 5 6 304 7 014 6 244 6 446 6 122 6 121 6 473 5 820 5 803 Staff costs 2 341 2 365-1 772 775 794 772 781 779 805 730 798 Variable staff costs 59 100-41 29-2 32 3 38 31 31 34 45 Expenses for premises 345 377-8 116 113 116 141 119 135 123 160 138 IT expenses 61 53 15 20 22 19 21 18 16 19 13 18 Consultants 17 22-23 6 5 6 9 7 11 4 16 13 Other expenses 3 838 3 650 5 1 262 1 285 1 291 1 348 1 223 1 224 1 203 1 237 1 198 of which internally sold and bought services 3 351 3 115 8 1 116 1 122 1 113 1 161 1 062 1 035 1 018 1 034 1 017 Depreciation/amortisation 42 50-16 14 14 14 17 17 17 16 22 26 Total expenses 6 703 6 617 1 2 219 2 212 2 272 2 311 2 203 2 213 2 201 2 212 2 236 Profit before impairments 12 859 12 099 6 4 085 4 802 3 972 4 135 3 919 3 908 4 272 3 608 3 567 Credit impairments 408 149 71 84 253 264 66 86-3 -44 41 Operating profit 12 451 11 950 4 4 014 4 718 3 719 3 791 3 853 3 822 4 275 3 652 3 526 Tax expense 2 511 2 404 4 849 862 800 757 823 820 761 753 751 Profit for the period from continuing operations 9 940 9 546 4 3 165 3 856 2 919 3 034 3 030 3 002 3 514 2 899 2 775 Profit for the period including non-controlling interest 9 940 9 546 4 3 165 3 856 2 919 3 034 3 030 3 002 3 514 2 899 2 775 Profit for the period attributable to: Shareholders of Swedbank AB 9 928 9 534 4 3 159 3 851 2 918 3 032 3 024 2 998 3 512 2 896 2 772 Non-controlling interests 12 12 6 5 1 2 6 4 2 3 3 A number of larger corporate clients have been moved from Swedish Banking to Large Corporates & Institutions during Q1-2017. The income relating to these clients (FY NII of SEK 363m and FY NCI of SEK 12m) have been moved between the business segments. No restatement of historical comparative figures have been made. From 1 January 2018, the results reflect that IFRS 9 Financial instruments has been adopted. Prior periods have not been restated. 1) Q2 2018 includes effect from sale of UC, Other income of SEK 677m 2) Q1 2017 includes effect from sale of Hemnet, Other income of SEK 680m 15
Swedish Banking Business segments 30 Sep 30 Sep Δ % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKbn 2018 2017 Y/Y 2018 2018 2018 2017 2017 2017 2017 2016 2016 Balance sheet (Incl intra-group transactions) Assets Cash and balances with central banks Loans to credit institutions 6 5 20 6 5 6 5 5 5 6 5 40 Loans to the public 1 183 1 138 4 1 183 1 176 1 164 1 150 1 138 1 125 1 116 1 135 1 111 Bonds and other interest-bearing securities Financial assets for which customers bear inv. risk 196 172 14 196 189 178 176 172 169 164 156 153 Derivatives Other assets 9 13-31 9 9 9 15 13 13 12 10 9 Total assets 1 394 1 328 5 1 394 1 379 1 357 1 346 1 328 1 312 1 298 1 306 1 313 Liabilities and equity Amounts owed to credit institutions 28 25 12 28 30 25 26 25 27 21 24 60 Deposits and borrowings from the public 555 525 6 555 550 529 530 525 515 495 500 492 Debt securities in issue Financial liabilities for which customers bear inv. risk 196 173 13 196 189 179 177 173 170 167 157 153 Derivatives Other liabilities 552 549 1 552 548 562 556 549 544 559 572 554 Subordinated liabilities Allocated equity 63 56 13 63 62 62 57 56 56 56 53 54 Total liabilities and equity 1 394 1 328 5 1 394 1 379 1 357 1 346 1 328 1 312 1 298 1 306 1 313 Key figures Key performance indicators Return on allocated equity, % 21.7 22.9 20.2 25.0 19.7 21.3 21.6 21.5 25.5 21.7 20.5 Cost/Income ratio 0.34 0.35 0.35 0.32 0.36 0.36 0.36 0.36 0.34 0.38 0.39 Credit impairment ratio, % 0.05 0.02 0.02 0.03 0.09 0.09 0.02 0.03-0.02 0.01 Loan/Deposit ratio, % 215 219 215 216 222 219 219 221 228 229 228 Volumes, SEKbn Loans to the public excluding repos & SNDO 1) 1 183 1 138 4 1 183 1 176 1 164 1 150 1 138 1 125 1 116 1 135 1 111 Deposits from the public excluding repos & SNDO 1) 550 519 6 550 544 523 525 519 510 490 496 488 Mutual funds & insurance 747 659 13 747 726 689 683 659 649 637 640 614 Allocated equity, average, SEKm 60 996 55 581 10 62 416 61 631 59 386 56 948 56 063 55 884 55 019 53 343 54 093 Risk exposure amount 2) 173 173 0 173 172 171 171 173 167 173 182 182 Commitments 138 139-1 138 136 128 132 139 139 131 132 135 Full-time employees 3 854 3 997-4 3 854 3 865 3 901 3 980 3 997 4 044 4 075 4 090 4 084 Other information (millions) Number of digitally active customers (incl. Savings banks) 3) 2.9 2.8 5.6 2.9 2.9 2.9 2.9 2.8 2.8 2.7 2.7 n/a of which Savings banks 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 Share of sales in digital channels (Swedbank), % 51.1 49.1 2.0 52.5 48.8 52.0 48.1 47.9 49.2 50.1 46.3 48.3 Number of cards (debit cards) 4.3 4.2 1.6 4.3 4.3 4.2 4.2 4.2 4.2 4.2 4.2 4.1 Number of card purchases 983 925 6 343 344 296 323 323 317 284 302 308 POS/total card turnover, % 4) 85 83 3 85 85 85 84 83 83 83 83 82 Number of card acquiring, Nordic Countries 2 033 1 801 13 715 708 611 655 631 618 551 589 582 Total acquired amount, Nordic Countries, SEKm 521 637 456 748 14 184 761 183 256 153 620 170 475 160 405 159 806 136 537 153 366 145 781 1) Excluding intra-group transactions. 2) Risk exposure amount is reported according to Basel 3. 3) Number of customers that have made at least 3 logins including shake balance in digital channel during last month. 4) Point of Sale (POS). Large corporate clients have been moved from Swedish Banking to Large Corporates & Institutions during Q3-2018. Business volumes (Loans to the public of SEK 2bn) have been moved between the business segments. No restatement of historical comparative figures have been made. A number of larger corporate clients have been moved from Swedish Banking to Large Corporates & Institutions during Q1-2017. Business volumes (Loans to the public of SEK 30bn and deposits from the public of SEK 3bn) have been moved between the business segments. No restatement of historical comparative figures have been made. From 1 January 2018, the results reflect that IFRS 9 Financial instruments has been adopted. Prior periods have not been restated. 16
Baltic Banking Business segments YTD YTD Δ % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 SEKm 2018 2017 Y/Y 2018 2018 2018 2017 2017 2017 2017 2016 2016 Income statement Net interest income 3 520 3 105 13 1 236 1 181 1 103 1 116 1 060 1 044 1 001 1 061 1 045 Payment processing 386 353 9 128 131 127 126 117 116 120 134 119 Card commission 838 690 21 301 292 245 284 241 234 215 217 218 Service concepts 72 34 25 25 22 20 16 13 5 Asset management and custody 272 257 6 93 89 90 179 83 88 86 143 84 Life Insurance 36 45-20 17 1 18 16 16 14 15 15 14 Lending and guarantees 177 154 15 60 61 56 48 51 54 49 52 56 Deposits 106 119-11 34 36 36 39 41 42 36 21 21 Non-life insurance 1 Other commissions -3 3-3 1 2-1 Net commission income 1 881 1 653 14 654 634 593 711 565 561 527 582 511 Net gains and losses on financial items at fair value 184 161 14 64 65 55 59 56 52 53 62 59 Net insurance 463 345 34 175 149 139 132 123 122 100 117 97 Other income 46 109-58 13 18 15 35 39 34 36 33 28 Total income 6 094 5 373 13 2 142 2 047 1 905 2 053 1 843 1 813 1 717 1 855 1 740 Staff costs 696 628 11 246 240 210 230 213 212 203 220 216 Variable staff costs 40 38 5 13 13 14 12 12 10 16 14 17 Expenses for premises 119 113 5 41 41 37 36 37 38 38 47 38 Consultants 4 4 1 2 1 1 1 1 2 1 Other expenses 1 203 1 079 11 417 411 375 433 359 370 350 392 344 of which internally sold and bought services 964 842 14 350 317 297 307 279 283 280 276 266 Depreciation/amortisation 69 77-10 22 23 24 25 25 25 27 27 28 Total expenses 2 131 1 939 10 740 730 661 737 647 656 636 700 644 Profit before impairments 3 963 3 434 15 1 402 1 317 1 244 1 316 1 196 1 157 1 081 1 155 1 096 Impairment of tangible assets 14 7 11 1 2 20 1 Credit impairments -105-85 24 8-87 -26-12 -26 7-66 -15-28 Operating profit 4 068 3 505 16 1 394 1 404 1 270 1 321 1 211 1 149 1 145 1 150 1 123 Tax expense 593 593 201 212 180 229 282 154 157 166 152 Profit for the period from continuing operations 3 475 2 912 19 1 193 1 192 1 090 1 092 929 995 988 984 971 Profit for the period including non-controlling interest 3 475 2 912 19 1 193 1 192 1 090 1 092 929 995 988 984 971 Profit for the period attributable to: Shareholders of Swedbank AB 3 475 2 912 19 1 193 1 192 1 090 1 092 929 995 988 984 971 From 1 January 2018, the results reflect that IFRS 9 Financial instruments has been adopted. Prior periods have not been restated. 17