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: 270 000 Organisations: 66 000 Branches: 186 ATMs 1) Cards: 4.0m Employees: 8 149 Latvia Population: 1.9m Private customers: 0.9m Corporate customers: 83 000 Branches: 33 ATMs: 367 Cards: 1.0m Employees: 1 631 Estonia Population: 1.3m Private customers: 0.9m Corporate customers: 132 000 Branches: 33 ATMs: 392 Cards: 1.1m Employees: 2 405 Lithuania Population: 2.8m Private customers: 1.5m Corporate customers: 69 000 Branches: 59 ATMs: 407 Cards: 1.7m Employees: 2 268 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 1.8 2.5 2.4 3.0 3.9 2.4 Sweden 2.5 2.3 2.0 1.8 1.0 0.0-0,2 Estonia 2.7 3.2 3.5 4.9 2.1 1.2 2.9 Estonia 2.2 2.8 3.4 3.4 0.1-0.5-0.1 Latvia 2.5 3.0 4.5 4.6 2.2 2.7 2.4 Latvia 2.3 2.7 2.6 2.9 0.1 0.2 0.6 Lithuania 2.0 2.5 3.6 4.1 2.3 1.6 3.0 Lithuania 2.5 2.7 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 4.0 3.9 3.7 3.7 5.2 4.9 4.2 Sweden 0.3 0.5 1.0 1.6 1.2-0.1-1.7 Estonia 0.6 1.1 1.9 3.2 1.9 1.9 1.0 Estonia 0.2 0.4 0.5-0.4-0.3 0.4 0.7 Latvia -0.5-0.4 0.6 0.7 1.4-1.2-2.0 Latvia -0.7-0.8-0.8-0.6 0.0-1.3-1.6 Lithuania 1.1 1.4 0.6 0.9-1.1-1.7 3.6 Lithuania 0.1 0.2 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 35.0 35.2 36.9 40.8 42.2 43.4 40.6 Sweden 46 949 10.1 538.0 Estonia 6.6 7.3 8.1 8.7 9.4 9.7 10.4 Estonia 29 481 1.3 25.9 Latvia 37.0 36.4 38.1 40.0 40.5 36.4 40.8 Latvia 25 064 1.9 30.3 Lithuania 36.8 37.5 34.6 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 186.39 181.20 176.46 170.54 168.29 Sweden 6.4 6.5 6.4 6.7 6.9 7.4 7.9 Estonia 1) 69.50 69.97 69.07 68.72 70.74 Estonia 5.3 5.1 5.5 5.8 6.8 6.2 7.4 Latvia 1) 35.94 37.26 39.88 44.15 49.9 Latvia 6.9 7.1 7.6 8.7 9.6 9.9 10.8 Lithuania 1) 36.18 35.60 35.35 34.42 34.93 Lithuania 6.2 6.3 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) Real estate price development, Baltics EUR 2 500 2) 3) 2 000 1 500 1 000 500 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sep 2018 Tallinn Riga Vilnius 2) Average sales price per sqm for apartments Source: Land boards of respective country 3) Q4 2018 data for Baltics will be available in Q1 2019 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 5) 2015 4) 2014 3) 2013 Net interest income 25 228 24 595 3 24 595 22 850 22 476 22 159 21 624 Net commission income 1) 12 836 12 206 5 12 206 11 502 11 199 11 204 10 132 Net gains and losses on financial items 2 112 1 934 9 1 934 2 231 571 1 986 1 484 Net insurance 1 192 937 27 937 754 708 581 647 Share of the profit or loss of associates 2) 1 028 736 40 736 2 263 863 980 852 Other income 1) 1 826 1 795 2 1 795 1 017 1 290 1 911 1 794 Total income 44 222 42 203 5 42 203 40 617 37 107 38 821 36 533 Staff costs 9 756 9 485 3 9 485 8 749 8 721 9 452 8 704 Variable staff costs 528 460 15 460 627 674 807 947 Other expenses 5 865 5 870 0 5 870 5 622 5 749 6 142 5 853 Depreciation/amortisation 686 600 14 600 629 672 718 739 Total expenses 16 835 16 415 3 16 415 15 627 15 816 17 119 16 243 Profit before impairments 27 387 25 788 6 25 788 24 990 21 291 21 702 20 290 Impairment of intangible assets 306 175 75 175 35 254 1 182 Impairment of tangible assets 8 21-62 21 31 72 256 693 Credit impairments 521 1 285-59 1 285 1 367 594 419 60 Operating profit 26 552 24 307 9 24 307 23 557 20 371 21 026 19 355 Tax expense 2) 5 374 4 943 9 4 943 4 005 4 625 4 301 4 099 Profit for the period from continuing operations 21 178 19 364 9 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 21 178 19 364 9 19 364 19 552 15 746 16 725 15 256 Profit for the period attributable to: Shareholders of Swedbank AB 21 162 19 350 9 19 350 19 539 15 733 16 709 15 241 Non-controlling interests 16 14 14 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 21 178 19 364 9 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 -1 806-1 928-6 -1 928-3 110 3 539 463 2 264 Share related to associates, Remeasurements of defined benefit pension plans -63-49 28-49 -59 88-9 12 Change in fair value attributable to changes in own credit risk of financial liabilities designated at fair value 22 Income tax 361 424-15 424 684-798 -101-500 Total -1 486-1 553-4 -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 1 870 1 077 74 1 077 1 644-1 678 2 917 1 258 Reclassification adjustments to Income statement, Net gains and losses on financial items or profit for the period from discontinued operation 87 508 1 875 Reclassification adjustments to Income statement, net gains and losses on financial items 4 4-3 Hedging of net investments in foreign operations: Gains/losses arising during the period -1 474-732 -732-1 337 1 489-2 320-910 Reclassification adjustments to Income statement, net gains and losses on financial items 81 81 Reclassification adjustments to Income statement, profit for the period from discontinued operations -91-365 Cash flow hedges: Gains/losses arising during the period 421-76 -76 59 145 26-210 Reclassification adjustments to Income statement, Net interest income 13 13 16 7 17 83 Reclassification adjustments to Income statement, Net gains and losses on financial items -403 Reclassification adjustments to initial carrying amount of hedged item Foreign currency basis risk: Gains/losses arising during the period -72 Reclassification adjustments to income statement, Net gains and losses on financial items Share of other comprehensive income of associates 36-80 -80 126-135 -29-115 Tax Income tax 297 161 84 161 280-358 505 248 Reclassification adjustments to Income statement, tax -3-3 -4-2 -4-18 Reclassification adjustments to Income statement, profit for the period from discontinued operations 28 80 Total 675 445 52 445 781-508 1 335 2 211 Other comprehensive income for the period, net of tax -811-1 108-27 -1 108-1 704 2 321 1 688 3 987 Total comprehensive income for the period 20 367 18 256 12 18 256 17 848 18 061 18 151 16 903 Total comprehensive income attributable to: Shareholders of Swedbank AB 20 351 18 242 12 18 242 17 835 18 047 18 137 16 887 Non-controlling interests 16 14 14 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) 2018 (Q1 to Q3) and 2017 results have been restated for changed presentation of tax related to associates. Refer to Note 1 in the Year-end report for further information. 3) 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. 4) Q2 2015 includes increased tax expense with 447 SEKm related to Estonian dividend and US tax. 5) 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 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 SEKm 2018 2018 2018 2017 2017 2017 2017 2016 Net interest income 6 335 9 6 326 6 273 6 294 6 326 6 208 6 090 5 971 6 000 Net commission income 1) 3 183-153 3 336 3 236 3 081 3 335 2 962 3 050 2 859 3 097 Net gains/losses on financial items 430-58 488 635 559 356 525 567 486 285 Net insurance 311-15 326 300 255 304 230 207 196 220 Share of profit or loss of associates 2) 194-147 341 313 180 262 194 150 130 62 Other income 1) 279 19 260 971 316 308 248 275 964 236 Total income 10 732-345 11 077 11 728 10 685 10 891 10 367 10 339 10 606 9 900 Staff costs 2 494 212 2 282 2 502 2 478 2 667 2 273 2 269 2 276 2 283 Variable staff costs 88-87 175 111 154 30 141 117 172 157 Other expenses 1 654 289 1 365 1 477 1 369 1 695 1 316 1 439 1 420 1 564 Depreciation/amortisation 170-6 176 172 168 171 153 141 135 153 Total expenses 4 406 408 3 998 4 262 4 169 4 563 3 883 3 966 4 003 4 157 Profit before impairments 6 326-753 7 079 7 466 6 516 6 328 6 484 6 373 6 603 5 743 Impairment of intangible assets 24-258 282 79 96 35 Impairment of tangible assets 8 8 7 11 1 2 21 Credit Impairments 412 295 117-135 127 311 235 400 339 593 Operating profit 5 882-1 080 6 962 7 319 6 389 5 931 6 142 5 972 6 262 5 094 Tax expense 2) 1 288-143 1 431 1 300 1 355 1 192 1 393 1 222 1 136 949 Profit for the period from continuing operations 4 594-937 5 531 6 019 5 034 4 739 4 749 4 750 5 126 4 145 Profit for the period from discontinued operations, after tax Profit for the period including non-controlling interest 4 594-937 5 531 6 019 5 034 4 739 4 749 4 750 5 126 4 145 Profit for the period attributable to: Shareholders of Swedbank AB 4 590-935 5 525 6 014 5 033 4 737 4 743 4 746 5 124 4 142 Non-controlling interests 4-1 6 5 1 2 6 4 2 3 Statement of comprehensive income Q4 Q3 Q2 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 4 594-937 5 531 6 019 5 034 4 739 4 749 4 750 5 126 4 145 Items that will not be reclassified to the income statement Remeasurements of defined benefit pension plans -954-1 215 261-965 -148-776 -37-511 -604 1 782 Share related to associates, Remeasurements of defined benefit pension plans -36-40 4-26 -5-17 -4-12 -16 51 Change in fair value attributable to changes in own credit risk of financial liabilities designated at fair value 9 5 4 3 6 Income tax 192 246-54 192 31 171 8 112 133-393 Total -789-1 004 215-796 -116-622 -33-411 -487 1 440 Items that may be reclassified to the income statement Exchange differences on translating foreign operations: Gains/losses arising during the period -247-960 -559 713 1 963 732 134 298-87 -256 Reclassification adjustments to income statement, Net gains/losses on financial items or profit for the period from discontinued operation Reclassification adjustments to Income statement, net gains and losses on financial items 4 Hedging of net investments in foreign operations: Gains/losses arising during the period 259 848 421-589 -1 565-515 -122-176 81 221 Reclassification adjustments to Income statement, net gains and losses on financial items 81 Reclassification adjustments to Income statement, profit for the period from discontinued operations Cash flow hedges: Gains/losses arising during the period -45-205 -122 160 428 34 3-113 -72 Reclassification adjustments to Income statement, Net gains and losses on financial items 49 204 117-155 -414 Net interest income 3 3 4 3 3 Foreign currency basis risk: Gains/losses arising during the period -3 30 10-33 -46 Reclassification adjustments to income statement, Net gains and losses on financial items Reclassification adjustments to Income statement, Net gains/losses on financial items Reclassification adjustments to initial carrying amount of hedged item Share of other comprehensive income of associates -100-152 -8 52 92-49 25-42 -14-20 Tax Income tax relating to components of other comprehensive income -53-140 -88 87 351 89 26 40 7-35 Reclassification adjustments to Income statement, tax -1-1 -1-1 -1 Reclassification adjustments to Income statement, profit for the period from discontinued operations Total -140 89-229 235 809 378 68 123-124 -160 Other comprehensive income for the period, net of tax -929-915 -14-561 693-244 35-288 -611 1 280 Total comprehensive income for the period 3 665-1 852 5 517 5 458 5 727 4 495 4 784 4 462 4 515 5 425 Shareholders of Swedbank AB 3 661-1 850 5 511 5 453 5 726 4 493 4 778 4 459 4 512 5 422 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) 2018 (Q1 to Q3) and 2017 results have been restated for changed presentation of tax related to associates. Refer to Note 1 in the Year-end report for further information. 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 31 Dec 31 Dec 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 163 161 200 371-19 200 364 200 371 121 347 186 312 113 768 59 382 Loans to credit institutions 36 268 30 746 18 31 020 30 746 32 197 86 418 113 820 82 278 Loans to the public 1 627 368 1 535 198 6 1 534 893 1 535 198 1 507 247 1 413 955 1 404 507 1 264 910 Bonds and other interest-bearing securities 152 891 145 034 5 145 409 145 034 182 072 165 162 170 680 182 399 Financial assets for which customers bear the investment risk 177 868 180 320-1 180 320 180 320 160 114 153 442 143 319 122 743 Derivatives 39 665 55 680-29 55 680 55 680 87 811 86 107 123 202 64 352 Other assets 48 871 65 287-25 62 766 65 287 63 415 57 459 52 001 48 038 Total assets 2 246 092 2 212 636 2 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 57 218 68 055-16 68 244 68 055 71 831 150 493 171 453 121 621 Deposits and borrowings from the public 920 750 855 609 8 855 713 855 609 792 924 748 271 676 679 620 608 Debt securites in issue 804 360 844 204-5 850 209 844 204 841 673 826 535 835 012 726 275 Financial liabilities for which customers bear the investment risk 178 662 181 124-1 181 124 181 124 161 051 157 836 146 177 125 548 Derivatives 31 316 46 200-32 46 200 46 200 85 589 68 681 85 694 55 011 Other liabilites 81 993 58 364 40 51 665 58 364 44 176 49 084 69 952 55 175 Subordinated liabilities 34 184 25 508 34 25 864 25 508 27 254 24 613 18 957 10 159 Equity 137 609 133 572 3 131 433 133 572 129 705 123 342 117 373 109 705 Total liabilities and equity 2 246 092 2 212 636 2 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 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec SEKm 2018 SEKm 2018 2018 2018 2017 2017 2017 2017 2016 Assets Cash and balances with central banks 163 161-133 723 296 884 435 440 398 889 200 371 336 283 432 540 407 299 121 347 Loans to credit institutions 36 268-2 979 39 247 39 565 36 021 30 746 37 988 38 624 39 128 32 197 Loans to the public 1 627 368-19 389 1 646 757 1 618 972 1 574 433 1 535 198 1 541 548 1 521 973 1 525 393 1 507 247 Interest-bearing securities 152 891-11 999 164 890 213 647 147 858 145 034 210 205 127 112 174 754 182 072 Value change of interest hedged item in portfolio hedge 766 187 579 1 418 1 032 789 918 1 007 1 228 1 482 Financial assets for which customers bear the investment risk 177 868-22 406 200 274 193 506 182 487 180 320 176 196 173 051 168 293 160 114 Shares and participating interests 4 921-1 060 5 981 3 856 8 201 19 850 25 532 12 501 46 014 23 897 Investments in associates 6 088-640 6 728 6 393 6 376 6 357 7 423 7 211 7 265 7 319 Derivatives 39 665-21 664 61 329 85 595 62 594 55 680 66 127 76 372 76 642 87 811 Intangible fixed assets 17 118 173 16 945 16 953 16 931 16 329 15 961 14 795 14 367 14 279 of which goodwill 13 549-188 13 737 13 737 13 737 13 100 12 923 12 463 12 385 12 408 Tangible assets 1 966 62 1 904 1 978 1 981 1 955 1 970 1 867 1 845 1 864 Current tax assets 2 065 490 1 575 1 487 1 550 1 375 1 019 1 326 1 200 1 796 Deferred tax assets 164-7 171 174 181 173 161 155 187 160 Other assets 13 970-2 247 16 217 24 160 29 189 14 499 33 260 12 408 20 331 8 067 Prepaid expenses and accrued income 1 813-370 2 183 2 889 1 404 3 960 5 284 5 179 4 739 4 551 Total assets 2 246 092-215 572 2 461 664 2 646 033 2 469 127 2 212 636 2 459 875 2 426 121 2 488 685 2 154 203 Liabilities and equity Liabilities Amounts owed to credit institutions 57 218-26 766 83 984 106 449 142 493 68 055 136 687 154 974 128 015 71 831 Deposits and borrowings from the public 920 750-37 459 958 209 1 000 205 953 763 855 609 935 754 909 223 917 647 792 924 Debt securities in issue 804 360-117 338 921 698 1 026 652 902 370 844 204 911 833 891 296 975 920 841 673 Financial liabilities for which customers bear the investment risk 178 662-22 492 201 154 194 179 184 272 181 124 176 900 173 859 170 535 161 051 Derivatives 31 316-19 822 51 138 65 446 42 303 46 200 53 331 70 813 62 657 85 589 Current tax liabilities 1 788 593 1 195 1 122 1 543 1 980 1 579 1 303 2 233 992 Deferred tax liabilities 1 576-50 1 626 1 329 1 686 2 182 2 371 2 045 2 168 2 438 Short positions securities 38 333 10 788 27 545 33 632 32 671 14 459 30 789 21 269 20 507 11 614 Other liabilities 29 593-7 577 37 170 47 276 49 008 24 580 37 945 30 744 45 467 14 755 Accrued expenses and prepaid income 3 385 78 3 307 3 773 3 387 9 650 8 607 9 459 12 954 10 917 Provisions 7 318 845 6 473 7 025 6 204 5 513 4 569 4 436 3 975 3 460 Subordinated liabilities 34 184-91 34 275 30 673 26 679 25 508 30 448 32 522 26 980 27 254 Total liabilities 2 108 483-219 291 2 327 774 2 517 761 2 346 379 2 079 064 2 330 813 2 301 943 2 369 058 2 024 498 Equity Non-controlling interests 213 4 209 203 203 200 198 192 193 190 Equity attributable to shareholders of Swedbank AB 137 396 3 715 133 681 128 069 122 545 133 372 128 864 123 986 119 434 129 515 Total equity 137 609 3 719 133 890 128 272 122 748 133 572 129 062 124 178 119 627 129 705 Total liabilities and equity 2 246 092-215 572 2 461 664 2 646 033 2 469 127 2 212 636 2 459 875 2 426 121 2 488 685 2 154 203 Equity attributable to shareholders of Swedbank AB, 31 Dec 2018 Goodwill, 31 Dec 2018 SEKm Swedbank AB (Sweden) 91 052 Swedbank Robur 328 Swedbank Mortgage (Sweden) 46 169 Swedbank Försäkring 651 Swedbank Robur (Sweden) 1 100 Ölands Bank AB 9 Swedbank Försäkring (Sweden) 2 497 Swedbank (Estonia) 4 358 Sparia Försäkring Group (Sweden) 146 Swedbank (Latvia) 2 244 Swedbank (Estonia) 18 088 Swedbank (Lithuania) 3 811 Swedbank (Latvia) 8 349 PayEx AB 429 Swedbank (Lithuania) 8 344 Group total 11 830 PayEx AB 302 Ektornet (Sweden) 346 Goodwill within parent company: Other subsidiaries 1 988 Swedbank AB (Sweden) 1 719 Total legal equity 178 381 Total goodwill 13 550 Group adjustments and eliminations -40 985 Total equity attributable to shareholders of Swedbank AB 137 396 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 331 331 331 Contribution 0 Total comprehensive income for the period 1 906-1 189 14-57 18 19 659 20 351 16 20 367 Closing balance 31 December 2018 24 904 17 275 5 508-3 444 4-19 -18 93 186 137 396 213 137 609 Retained earnings Total Specification of Exchange differences, subsidiaries and associates 31 Dec 31 Dec Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 2017 2018 2018 2018 2018 2017 2017 2017 2017 2016 Estonian Operations 2 921 2 009-120 -274 346 960 369 67 153-46 -129 Latvian Operations 1 355 922-56 -127 162 454 167 30 69-21 -58 Lithuanian Operations 1 452 955-65 -149 187 524 193 36 79-23 -67 Norwegian Operations -244-280 -102-8 52 94-50 26-43 -15-21 Robur, Ektornet and other 24-4 -4-9 18 23 8 0-1 3-2 Total 5 508 3 602-347 -567 765 2 055 687 159 257-102 -277 Specification of Hedging of net investment in foreign operations 31 Dec 31 Dec Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 2017 2018 2018 2018 2018 2017 2017 2017 2017 2016 Estonian Operations -1 940-1 356 74 170-237 -591-227 -40-92 27 81 Latvian Operations -762-491 34 77-109 -273-99 -18-40 12 34 Lithuanian Operations -809-536 34 77-111 -273-99 -18-39 12 36 Norwegian Operations 126 167 61 6-41 -67 28-20 33 12 21 Robur, Ektornet and other -59-39 3 3-9 -17 59 1 1 0-2 Total -3 444-2 255 206 333-507 -1 221-338 -95-137 63 170 Specification of Cash flow hedges 31 Dec 31 Dec Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 2017 2018 2018 2018 2018 2017 2017 2017 2017 2016 Amendments due to the adoption of IFRS 9-38 Group Treasury 3 27 3-4 4 11 29 4 3-86 -53 Other 1 1 0-0 -0-0 -0 0 0 1 Total 4-10 3-4 4 11 29 4 3-85 -53 10
Net interest income analysis, Group Financial information, Group Net interest income analysis, Group YTD YTD % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 2017 Y/Y 2018 2018 2018 2018 2017 2017 2017 2017 2016 Interest income Loans to credit institutions 147 60 64 43 23 17 70-19 8 1-44 Loans to the public 31 069 30 022 3 7 844 7 882 7 795 7 548 7 502 7 534 7 523 7 463 7 555 Interest-bearing securities 216 182 19 57 99 39 21 24 38 50 70 116 Derivatives, income 2 157 1 026 651 666 417 423 302 226 209 289 179 Other 809 1 241-35 196 205 222 186 242 358 367 274 9 Total interest income including negative yield on financial assets 34 398 32 531 6 8 812 8 895 8 496 8 195 8 140 8 137 8 157 8 097 7 815 of which interest income reported in net gains/ losses on financial items 340 343-1 117 131 31 61 79 16 61 187 264 Interest income, including negative yield on financial assets, according to income statement 34 058 32 188 6 8 695 8 764 8 465 8 134 8 061 8 121 8 096 7 910 7 551 Interest expense Amounts owed to credit institutions -971-821 18-168 -307-207 -289-255 -243-175 -148 98 Deposits and borrowings from the public -1 234-1 281-4 -275-321 -343-295 -305-371 -339-266 -166 of which deposits guarantee fees -414-442 -6-107 -96-107 -104-106 -99-119 -118-110 Debt securities in issue -12 726-10 984 16-3 085-3 664-3 246-2 731-2 784-2 696-2 700-2 804-2 379 of which state guarantee fees Subordinated liabilities -1 016-1 193-15 -267-260 -248-241 -268-310 -311-304 -251 Derivatives, expenses 1) 8 945 8 223 9 1 898 2 564 2 342 2 141 2 278 2 076 1 854 2 015 1 407 Other -1 702-1 225 39-424 -429-459 -390-308 -304-263 -350-163 of which resolution fee -1 656-1 205 37-414 -414-446 -382-301 -300-261 -343-160 Total interest expense including negative yield on financial liabilities -8 704-7 281 20-2 321-2 417-2 161-1 805-1 642-1 848-1 934-1 857-1 454 of which interest expense reported in net gains/ losses on financial items 126 312-60 39 21 31 35 93 65 72 82 97 Interest expense, including negative yield on financial liabilities, according to income statement -8 830-7 593 16-2 360-2 438-2 192-1 840-1 735-1 913-2 006-1 939-1 551 Net interest income 25 228 24 595 3 6 335 6 326 6 273 6 294 6 326 6 208 6 090 5 971 6 000 Average balances Loans to credit institutions 39 373 38 206 3 40 516 41 271 39 572 35 311 41 988 37 346 37 497 36 274 74 299 Loans to the public 1 602 128 1 532 472 5 1 640 330 1 631 652 1 593 910 1 551 065 1 545 913 1 527 893 1 528 059 1 525 898 1 525 959 Interest-bearing securities 195 495 192 806 1 169 475 230 843 197 466 169 174 203 551 175 492 167 309 208 285 183 145 Interest-bearing assets 1 836 996 1 763 484 4 1 850 321 1 903 766 1 830 948 1 755 549 1 791 452 1 740 731 1 732 865 1 770 457 1 783 403 Derivatives 66 752 75 474-12 56 426 75 578 78 128 59 193 66 074 75 938 75 959 82 106 98 528 Other assets 603 020 603 728 0 507 299 652 563 665 980 605 452 598 191 621 077 678 812 548 737 463 497 Total assets 2 506 768 2 442 686 3 2 414 046 2 631 907 2 575 056 2 420 194 2 455 717 2 437 746 2 487 636 2 401 300 2 345 428 Amounts owed to credit institutions 112 165 138 757-19 82 941 109 320 125 983 129 525 130 952 153 017 151 998 119 915 155 611 Deposits and borrowings from the public 951 561 907 184 5 955 098 977 355 963 855 924 308 925 144 911 538 927 254 875 069 860 757 Debt securities in issue 941 181 910 780 3 888 214 1 007 962 972 440 902 903 911 368 896 625 935 240 911 563 869 786 Subordinated liabilities 30 114 29 026 4 34 302 31 586 28 965 25 924 28 168 31 722 29 897 27 036 24 257 Interest-bearing liabilities 2 035 021 1 985 747 2 1 960 555 2 126 223 2 091 243 1 982 659 1 995 632 1 992 902 2 044 389 1 933 583 1 910 411 Derivatives 52 001 66 422-22 44 886 60 322 56 823 46 694 51 503 69 040 65 250 76 780 85 826 Other liabilities 288 301 262 760 10 272 691 314 479 301 618 259 539 277 180 249 384 256 075 262 401 222 283 Total liabilities 2 375 323 2 314 929 3 2 278 132 2 501 024 2 449 684 2 288 892 2 324 315 2 311 326 2 365 714 2 272 764 2 218 520 Equity 131 445 127 757 3 135 914 130 883 125 372 131 303 131 402 126 420 121 922 128 536 126 908 Total liabilities and equity 2 506 768 2 442 686 3 2 414 046 2 631 907 2 575 056 2 420 195 2 455 717 2 437 746 2 487 636 2 401 300 2 345 428 Average interest rates YTD YTD Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 % 2018 2017 Y/Y 2018 2018 2018 2018 2017 2017 2017 2017 2016 Loans to credit institutions 0.50 0.21 0.29 0.63 0.42 0.23 0.19 0.67-0.20 0.09 0.01-0.24 Loans to the public 2.59 2.61-0.03 1.91 1.93 1.96 1.95 1.94 1.97 1.97 1.96 1.98 Interest-bearing securities 0.15 0.13 0.02 0.13 0.17 0.08 0.05 0.05 0.09 0.12 0.13 0.25 Interest-bearing assets 2.28 2.29-0.01 1.72 1.69 1.72 1.73 1.70 1.74 1.75 1.70 1.71 Amounts owed to credit institutions 1.15 0.79 0.37 0.81 1.12 0.66 0.89 0.78 0.64 0.46 0.49-0.25 Deposits and borrowings from the public 0.17 0.19-0.02 0.12 0.13 0.14 0.13 0.13 0.16 0.15 0.12 0.08 Debt securities in issue 1.80 1.61 0.19 1.39 1.45 1.34 1.21 1.22 1.20 1.15 1.23 1.09 Subordinated liabilities 4.50 5.48-0.98 3.11 3.29 3.42 3.72 3.81 3.91 4.16 4.50 4.14 Interest-bearing liabilities 1.04 0.96 0.09 0.77 0.86 0.77 0.72 0.72 0.73 0.69 0.73 0.56 Net interest margin total assets 1.02 1.03-0.01 1.08 0.98 0.98 1.06 1.06 1.03 1.00 1.04 1.08 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. 11
Income analysis Financial information, Group Income analysis, Group FY FY % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 2017 Y/Y 2018 2018 2018 2018 2017 2017 2017 2017 2016 Net interest income 25 228 24 595 3 6 335 6 326 6 273 6 294 6 326 6 208 6 090 5 971 6 000 Payment processing 897 838 7 200 245 217 235 215 205 209 209 244 Card commissions 3 176 2 983 6 806 838 821 711 764 797 750 672 749 Service concepts 1 008 737 37 258 241 258 251 252 186 154 145 127 Asset management & Custody 5 113 4 872 5 1 274 1 337 1 283 1 219 1 396 1 174 1 172 1 130 1 205 Life insurance 386 471-18 84 103 90 109 110 118 120 123 115 Securities 170 278-39 59 31 43 37 89 13 84 92 134 Corporate Finance 123 137-10 35 34 25 29 26 17 49 45 57 Lending and Guarantees 1 183 1 109 7 286 308 310 279 279 273 292 265 286 Deposits 173 200-14 41 41 42 49 49 51 51 49 32 Real estate brokerage 181 198-9 44 48 50 39 45 53 57 43 53 Non-Life insurance 54 57-5 15 15 14 10 19 14 15 9 17 Other commission income 372 326 14 81 95 83 113 91 61 97 77 78 Net commission income 1) 12 836 12 206 5 3 183 3 336 3 236 3 081 3 335 2 962 3 050 2 859 3 097 Financial instruments for trading-related business 2 359 2 710-13 422 693 685 559 516 516 853 825 343 Financial instruments intended to hold until maturity -247-776 -68 8-205 -50-160 9-286 -339-58 Net gains and losses on financial items 2 112 1 934 9 430 488 635 559 356 525 567 486 285 Net insurance 1 192 937 27 311 326 300 255 304 230 207 196 220 Sparbanken Skåne/Färs & Frosta Sparbank 39 45-13 8 15 10 6 13 15 9 8 9 Swedbank Sjuhärad 106 111-5 26 26 28 26 26 30 30 25 24 Other jointly owned banks in Sweden 64 56 14 11 20 18 15 14 15 15 12 8 EnterCard 480 423 13 191 76 105 108 156 94 107 66 56 VISA 2) 328 77-35 191 146 26 38 20-6 25-38 Other companies 11 24-54 -7 13 6-1 15 20-5 -6 3 Share of the profit or loss of associates 1 028 736 40 194 341 313 180 262 194 150 130 62 IT/administrative services to savings banks 820 753 9 182 206 213 219 197 169 199 188 160 Assets taken over 15 69-78 6 2 4 3 27 25 7 10 5 Other 3) 991 973 2 91 52 754 94 84 54 69 766 71 Other income 1) 1 826 1 795 2 279 260 971 316 308 248 275 964 236 Total income 44 222 42 203 5 10 732 11 077 11 728 10 685 10 891 10 367 10 339 10 606 9 900 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 % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 2017 Y/Y 2018 2018 2018 2018 2017 2017 2017 2017 2016 Staff costs Salaries and other remunerations 6 245 6 176 1 1 604 1 427 1 633 1 581 1 770 1 468 1 465 1 473 1 477 Variable staff costs 1) 528 460 15 88 175 111 154 30 141 117 172 157 Pension costs 1) 1 112 928 20 266 297 252 297 217 238 236 237 234 Social insurance charges 1) 1 943 1 938 0 487 447 509 500 542 466 465 465 451 Training costs 123 121 2 43 23 28 29 42 23 29 27 39 Other staff costs 333 322 3 94 88 80 71 96 78 74 74 82 Total staff costs 10 284 9 945 3 2 582 2 457 2 613 2 632 2 697 2 414 2 386 2 448 2 440 Other expenses Premises and rents 1 192 1 152 3 339 282 287 284 309 277 279 287 315 IT expenses 1 955 1 963 0 533 429 529 464 553 444 475 491 524 Telecommunications and postage 137 133 3 33 35 34 35 36 27 30 40 27 Advertising, PR and marketing 297 306-3 112 57 60 68 111 51 74 70 89 Consultants 333 326 2 130 77 75 51 99 67 90 70 76 Compensation to Savings Banks 224 223 0 56 56 56 56 56 55 56 56 60 Other purchased services 793 777 2 184 219 206 184 237 194 169 177 192 Security transport and alarm systems 60 71-15 17 15 15 13 21 17 19 14 21 Supplies 104 95 9 35 19 31 19 36 20 21 18 37 Travel 223 238-6 65 37 65 56 67 45 67 59 74 Entertainment 52 53-2 19 10 13 10 21 10 11 11 18 Repair/maintenance of inventories 90 115-22 20 17 21 32 29 14 41 31 32 Other expenses 405 418-3 111 112 85 97 120 95 107 96 99 Total other expenses 5 865 5 870 0 1 654 1 365 1 477 1 369 1 695 1 316 1 439 1 420 1 564 Depreciation/amortisation 686 600 14 170 176 172 168 171 153 141 135 153 Total expenses 16 835 16 415 3 4 406 3 998 4 262 4 169 4 563 3 883 3 966 4 003 4 157 1) Social insurance charges and pension costs related to variable pay are presented as variable staff costs. IT-related expenses YTD YTD % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 2017 Y/Y 2018 2018 2018 2018 2017 2017 2017 2017 2016 IT expenses Software incl. licenses 244 354-31 58 29 76 81 132 77 71 75 166 IT-consultants 52 55-5 18 8 13 13 15 12 13 14 15 IT expenses externally bought by business areas 1 380 1 236 12 384 334 358 304 330 273 302 331 261 Other externally bought IT-services 279 318-12 73 58 82 66 76 82 89 71 82 Total IT expenses 1 955 1 963-0 533 429 529 464 553 444 475 491 524 Other IT-related expenses Staff costs (Swedbank's internal IT-organisation) 2) 312 258 21 73 74 81 84 71 61 63 63 75 Leasing and depreciation of IT-equipment 148 139 6 40 32 40 36 39 37 33 30 30 Other IT-related expenses 246 138 78 47 88 54 57 46 32 42 18-18 Total other IT-related expenses 706 535 32 160 194 175 177 156 130 138 111 87 Total IT- and IT-related expenses 2 661 2 498 7 693 623 704 641 709 574 613 602 611 Capitalised IT-related expenses 736 763-4 303 166 139 129 226 198 231 108 138 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 2019-2022 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 21 521 777 IP 2014 205 10 26 6 5 256 2015 Eken 2015 62 63 49 48 14 236 468 IP 2015 159 32 13 19 9 232 2016 Eken 2016 79 65 64 80 288 492 IP 2016 143 20 15 26 204 2017 Eken 2017 75 63 140 278 435 IP/IPAM 2017 120 7 30 157 2018 Eken 2018 94 298 392 657 IP/IPAM 2018 182 83 265 Other variable pay 2 4 10 288 Total 808 674 627 460 528 680 6 171 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 % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKm 2018 2017 Y/Y 2018 2018 2018 2018 2017 2017 2017 2017 2016 Income statement Net interest income 15 403 15 103 2 3 839 3 847 3 840 3 877 3 861 3 812 3 792 3 638 3 657 Payment processing 57 108-47 15 11-10 41 32 15 22 39 27 Card commission 1 624 1 614 1 390 418 421 395 395 434 415 370 415 Service concepts 725 653 11 181 178 185 181 200 172 141 140 127 Asset management and custody 4 088 3 769 8 974 1 089 1 044 981 997 949 940 883 868 Life Insurance 326 403-19 64 85 87 90 90 101 105 107 94 Securities 192 301-36 54 41 44 53 90 51 82 78 91 Lending and guarantees 252 268-6 65 62 64 61 49 83 75 61 71 Deposits 26 37-30 6 6 5 9 9 9 8 11 10 Corporate finance 2 2 1 Real estate brokerage 181 198-9 44 48 50 39 45 53 57 43 53 Non-Life insurance 62 61 2 15 16 15 16 16 15 16 14 15 Other commissions 62 67-7 9 13 22 18 37-15 28 17 23 Net commission income 7 595 7 481 2 1 817 1 967 1 927 1 884 1 960 1 867 1 889 1 765 1 795 Net gains and losses on financial items 400 398 1 92 93 119 96 108 88 105 97 58 Net insurance 542 473 15 112 154 156 120 176 109 89 99 106 Share of the profit or loss of associates 693 654 6 228 149 163 153 224 171 152 107 104 Other income 1) 2) 942 838 12 67 51 759 65 41 29 38 730 61 Total income 25 575 24 947 3 6 155 6 261 6 964 6 195 6 370 6 076 6 065 6 436 5 781 Staff costs 3 116 3 137-1 775 772 775 794 772 781 779 805 730 Variable staff costs 71 103-31 12 29-2 32 3 38 31 31 34 Expenses for premises 472 518-9 127 116 113 116 141 119 135 123 160 IT expenses 86 74 16 25 20 22 19 21 18 16 19 13 Consultants 31 31 14 6 5 6 9 7 11 4 16 Other expenses 5 187 4 998 4 1 349 1 262 1 285 1 291 1 348 1 223 1 224 1 203 1 237 of which internally sold and bought services 4 504 4 276 5 1 153 1 116 1 122 1 113 1 161 1 062 1 035 1 018 1 034 Depreciation/amortisation 57 67-15 15 14 14 14 17 17 17 16 22 Total expenses 9 020 8 928 1 2 317 2 219 2 212 2 272 2 311 2 203 2 213 2 201 2 212 Profit before impairments 16 555 16 019 3 3 838 4 042 4 752 3 923 4 059 3 873 3 852 4 235 3 569 Credit impairments 727 413 76 319 71 84 253 264 66 86-3 -44 Operating profit 15 828 15 526 2 3 519 3 971 4 668 3 670 3 715 3 807 3 766 4 238 3 613 Tax expense 3 047 2 946 3 678 806 812 751 681 777 764 724 714 Profit for the period from continuing operations 12 781 12 580 2 2 841 3 165 3 856 2 919 3 034 3 030 3 002 3 514 2 899 Profit for the period including non-controlling interest 12 781 12 580 2 2 841 3 165 3 856 2 919 3 034 3 030 3 002 3 514 2 899 Profit for the period attributable to: Shareholders of Swedbank AB 12 765 12 566 2 2 837 3 159 3 851 2 918 3 032 3 024 2 998 3 512 2 896 Non-controlling interests 16 14 14 4 6 5 1 2 6 4 2 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 31 Dec 31 Dec Δ % Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 SEKbn 2018 2017 Y/Y 2018 2018 2018 2018 2017 2017 2017 2017 2016 Balance sheet (Incl intra-group transactions) Assets Cash and balances with central banks Loans to credit institutions 6 5 20 6 6 5 6 5 5 5 6 5 Loans to the public 1 188 1 150 3 1 188 1 183 1 176 1 164 1 150 1 138 1 125 1 116 1 135 Bonds and other interest-bearing securities Financial assets for which customers bear inv. risk 174 176-1 174 196 189 178 176 172 169 164 156 Derivatives Other assets 9 15-40 9 9 9 9 15 13 13 12 10 Total assets 1 377 1 346 2 1 377 1 394 1 379 1 357 1 346 1 328 1 312 1 298 1 306 Liabilities and equity Amounts owed to credit institutions 28 26 8 28 28 30 25 26 25 27 21 24 Deposits and borrowings from the public 564 530 6 564 555 550 529 530 525 515 495 500 Debt securities in issue Financial liabilities for which customers bear inv. risk 174 177-2 174 196 189 179 177 173 170 167 157 Derivatives Other liabilities 548 556-1 548 552 548 562 556 549 544 559 572 Subordinated liabilities Allocated equity 63 57 11 63 63 62 62 57 56 56 56 53 Total liabilities and equity 1 377 1 346 2 1 377 1 394 1 379 1 357 1 346 1 328 1 312 1 298 1 306 Key figures Key performance indicators Return on allocated equity, % 20.8 22.5 18.0 20.2 25.0 19.7 21.3 21.6 21.5 25.5 21.7 Cost/Income ratio 0.35 0.36 0.38 0.35 0.32 0.37 0.36 0.36 0.36 0.34 0.38 Credit impairment ratio, % 0.06 0.04 0.11 0.02 0.03 0.09 0.09 0.02 0.03-0.02 Loan/Deposit ratio, % 213 219 213 215 216 222 219 219 221 228 229 Volumes, SEKbn Loans to the public excluding repos & SNDO 1) 1 188 1 150 3 1 188 1 183 1 176 1 164 1 150 1 138 1 125 1 116 1 135 Deposits from the public excluding repos & SNDO 1) 559 525 6 559 550 544 523 525 519 510 490 496 Mutual funds & insurance 660 683-3 660 747 726 689 683 659 649 637 640 Allocated equity, average, SEKm 61 497 55 941 10 63 064 62 416 61 631 59 386 56 948 56 063 55 884 55 019 53 343 Risk exposure amount 2) 382 171 382 173 172 171 171 173 167 173 182 Commitments 134 132 2 134 138 136 128 132 139 139 131 132 Full-time employees 3 846 3 980-3 3 846 3 854 3 865 3 901 3 980 3 997 4 044 4 075 4 090 Other information (millions) Number of digitally active customers (incl. Savings banks) 3) 3.0 2.9 4.0 3.0 2.9 2.9 2.9 2.9 2.8 2.8 2.7 2.7 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 0.9 Share of sales in digital channels (Swedbank), % 50.3 48.9 1.5 47.8 52.5 48.8 52.0 48.1 47.9 49.2 50.1 46.3 Number of cards (debit cards) 4.3 4.2 1.5 4.3 4.3 4.3 4.2 4.2 4.2 4.2 4.2 4.2 Number of card purchases 1 320 1 248 6 337 343 344 296 323 323 317 284 302 POS/total card turnover, % 4) 85 84 1 85 85 85 85 84 83 83 83 83 Number of card acquiring, Nordic Countries 2 727 2 456 11 694 715 708 611 655 631 618 551 589 Total acquired amount, Nordic Countries, SEKm 705 393 627 223 12 183 755 184 761 183 256 153 620 170 475 160 405 159 806 136 537 153 366 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