Swedbank Q1 2006 Jan Lidén, President and CEO
2 Group results Q1 SEK M Q1 2006 Q1 Change, % Net interest income 3,777 3,939 4 Net commissions 2,098 1,530 37 Net gains and losses on financial items at fair value 260 377 31 Other income 408 428 5 Total income 6,543 6,274 4 Staff costs 1,812 1,697 7 Profit-based staff costs 292 183 60 Other expenses 1,546 1,453 6 Total expenses 3,650 3,333 10 Profit before loan losses 2,893 2,941 2 Loan losses 50 99 49 Operating profit 2,843 2,842 0 Tax & minorities 573 754 24 Profit for the period (attributable) 2,270 2,088 9
3 Net Interest Income items affecting comparability SEK M Changes Q1 2006, IFRS accrual of Baltic loan commissions -75 Accrual of Baltic loan book revaluation -96 Q1 (if restated) KIAB -39 EnterCard -71
4 Business area results Q1 Asset Swedish Baltic Swedbank Mgmt. & SEK M Banking Banking Markets Insurance Net interest income 2,752 822 185 8 Net commissions 1,040 352 326 382 Other income 332 185 287 30 Total income 4,124 5% 1,359 32% 798 51% 420 23% Staff costs 998 352 290 73 Other expenses 1,154 299 160 80 Total expenses 2,152 8% 651 39% 450 61% 153 2% Profit before loan losses 1,972 708 348 267 Loan losses 6 57 4 Operating profit 1,978 2% 651 25% 352 41% 267 39% Allocated equity 26,621 7,654 3,619 1,670 Return on equity % 21.4 31.2 24.4 46.0 Changes refer to comparison with Q1
5 Swedish Banking results Q1 SEK M Q1 2006 Q1 Change, % Net interest income 2,752 3,163 13 Net commissions 1,040 881 18 Other income 332 284 17 Total income 4,124 4,328 5 Staff costs 998 1,041 4 Other expenses 1,154 1,297 11 Total expenses 2,152 2,338 8 Profit before loan losses 1,972 1,990 1 Loan losses 6 60 Operating profit 1,978 1,930 2 Allocated equity 26,621 24,501 Return on equity % 21.4 22.7 Total assets SEK bn 775 729
6 Swedish market shares Change in percentage points New selling, March, 2006 Q1 06 Market share Q1 05 Market share Change yoy Retail deposits 31% 23% +8% Asset Management 10% 18% -8% Individual Pension Savings* 54% 53% +1% Equity linked bonds 23% 25% -2% Corporate loans 19% 12% +7% Private mortgages 28% 23% +5% *As of December 31,
7 Swedish mortgage margin pressure 1.20 1.10 1.00 0.90 0.80 0.70 * 7 bps ** 7 bps 0.60 Q1 Q2 Q3 Q4 Q1 2006 * Spintab investment margins (See Spintab Q1 2006) ** Spintab new contractual margins (total front book)
8 Swedish volume growth (SEK billion) Growth yoy Lending to private individuals +10% Fund management +31% 400 350 300 250 Deposits 5% 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 2006
9 Baltic Banking (Operations) results Q1 SEK M Q1 2006 Q1 Change, % Net interest income 822 652 26 Net commissions 352 234 50 Other income 185 142 30 Total income 1,359 1,028 32 Staff costs 352 255 38 Other expenses 299 213 40 Total expenses 651 468 39 Profit before loan losses 708 560 26 Loan losses 57 41 39 Operating profit 651 519 25 Allocated equity 7,654 6,268 Return on equity % 31.2 30.8 Total assets SEK bn 143 94
10 Baltic Banking growth Q1 Deposits Lending -22% -26 121 Russia 38% 669 1,749 Lithuania 1,170 2,329 5,368 31.03.05 42% 2,244 Baltic 49% 578 Latvia 44% 1,027 Estonia yoy % yoy change EUR in millions 264 1,683 1,507 2,973 6,418 31.03.05 63% 4,046 Baltic 62% 1,037 Lithuania 99% 263 Russia 85% 1,286 Latvia 49% 1,450 Estonia yoy% yoy change EUR in millions 95 2,418 1,748 3,356 7,612 31.03.06 527 2,721 2,793 4,424 10,464 31.03.06
11 Baltic market shares Stock March 2006 Estonia Market Change share yoy Latvia Market Change share yoy Lithuania Market Change share yoy Retail deposits 63%* -1% 29%* +4% 39% -1% Corporate deposits 51%* +1% 13%* +2% 22% +2% Lending 51% 0% 25% +1% 23% 0% Pension II 54%* +2% 36%* +5% 44% -1% * As of February, 2006
12 Baltic Banking margins 4.0% Lending 2.5% Deposits 3.5% 3.0% 2.5% 2.0% 1.5% 3.22% 3.15% 2.06% 2.81% 2.58% 1.96% 2.0% 1.5% 1.0% 1.53% 0.93% 1.74% 1.15% 1.11% 1.0% 0.5% 0.5% 0.84% 0.0% Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 0.0% Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Estonia Latvia Lithuania Estonia Latvia Lithuania
13 Baltic Banking profit growth Operating profit (SEK M) + 25% yoy 700 600 500 400 300 200 100 0 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 Q2 Q3 Q4 Q1 2006
14 Profit growth in the four Baltic business units and in Swedish Banking Q1, 2006 vs. Q1,, SEK M Operating profit and profit growth yoy 28% 85% 35% -73% 12% 2,245 319 195 115 9 Estonia Latvia Lithuania Russia Swedish Banking incl Asset Management
15 Group net commissions SEK M Q1 2006 Q1 Change, % Payment processing 602 587 3 Lending commissions 129 89 45 Brokerage 301 111 Asset management 914 702 30 Insurance commissions 118 96 23 Other commissions 34 55 Total commissions, net 2,098 1,530
16 Group net profit on financial items at fair value SEK M Q1 2006 Q1 Change Financial instruments classified as trading and derivatives 238 246 8 Prepayment fees, loans and receivables 22 27 5 Exchange rates effects 0 104 104 Total 260 377 117
17 Group expenses Change SEK M Q1 2006 Q1 SEK M % Group 3,650 3,333 317 10 Staff costs 2,104 1,880 224 12 Adminstrative expenses 1,391 1,317 74 5 Depreciation/amortization 155 136 19 14 Staff costs 2,104 1,880 224 12 Of which Baltic Banking 351 255 96 38 First Securities 125 125
18 Baltic Banking expenses Expenses +39% yoy and staff costs +38% 180 Employees + 19% yoy (Cost/employee +16%) 170 160 8000 150 7500 140 7000 130 120 6500 110 6000 100 90 5500 Q3 2004 Q4 2004 Q1 Q2 Q3 Q4 Q1 2006 80 Q3 2004 Q4 2004 Q1 Q2 Q3 Q4 Q1 2006 5000
Tier 1 ratio 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% - 0.2% points yoy 6.7% 6.5% target 19 Q1- Q2- Q3- Q4- Q1-2006 2004 2003 2000 2001 2002
20 Key figures Q1 2006 Q1 Return on equity, % 16.6 18.5 Earnings per share, SEK 4.41 4.07 Equity per share, SEK 108.66 90.31 C/I ratio before loan losses 0.56 0.53 Loan loss ratio, net % 0.02 0.05 Share of doubtful claims, % 0.09 0.18 Provision ratio for doubtful claims, % 188 151 Capital adequacy ratio, % 9.7 10.5 Primary capital ratio, % 6.5 6.7
21 Recent developments AGM decided change of name Mikael Inglander appointed CFO and Bengt- Erik Lindgren appointed Head of Stockholm Region, as of May 1, 2006 Office in Shanghai being upgraded to branch St Petersburg opened on March 24, 2006
22 Calendar of events 2006 Q2 August 10th Capital Markets Day September 6th (in Stockholm) Q3 October 26th
Thank you! 23