Swedbank reported its first quarter 2013 results. Net interest income was stable at SEK 3.3 billion, while net commissions grew to SEK 1.6 billion. Digital banking usage continued to increase rapidly, with over 1.3 million mobile bank users. Retail banking results were stable, while large corporates saw lower activity levels. The Baltic banking business focused on cost reductions. Overall, the group reported robust earnings of SEK 3.9 billion and maintained a strong capital position with a Basel III common equity tier 1 capital ratio of 16.4%. Asset quality remained high across all business segments.

1. Swedbank’s first quarter 2013 results
Michael Wolf, CEO
Wolf
Göran Bronner, CFO
Håkan Berg, CRO

2. Retail banking
Customer requirements drive new ways of banking
q y g
• Focus on functionality and ease of use
million
Monthly logins Swedbank and Savings Banks
30
25
20
15
10
5
0
Jan 2010 Jan 2011 Jan 2012 Jan 2013
Mobile bank Internet bank
2

3. Swedbank and Savings Banks
Fast increase of digital usage
g g
• Internet Bank, private and corporate (since March 1997)
– Number of users: >3.5 million
• Mobile Bank, private (since Dec 2009)
– Number of users: >1.3 million
• Mobile Bank Youth (since March 2013)
– Number of users: 6 700
• Mobile Bank Corporate (since March 2013)
– Number of users: >8 000
• Ipad (since Oct 2012)
– Number of users: >200 000
• Swish (since Dec 2012)
( )
– Number of users: ~100 000
3

4. Retail
Stable results
SEKm Q1 12 Q4 12 Q1 13 ▲ Q/Q ▲ Y/Y • Stable NII
Net interest income 3 371 3 353 3 332 -21 -39
Net commissions 1 538 1 554 1 589 35 51 • Solid asset quality
Total income 5 346 5 255 5 377 122 31
Total
T t l expenses 2 429 2 474 2 406 -68
68 -23
23 • New organisation
Profit before
2 917 2 781 2 971 190 54
impairments
Credit impairments 21 91 55 -36 34
ROE, % 28.4 28.0 27.9
C/I ratio
ti 0.45
0 45 0.47
0 47 0.45
0 45
4

5. Large Corporates & Institutions
Good return
SEKm Q1 12 Q4 12 Q1 13 ▲ Q/Q ▲ Y/Y • Stable NII
Net interest income 728 795 783 -12 55
Net commissions 485 536 419 -117 -66 • Low activity in Corporate
Total income 2 071 1 857 1 814 -43 -257 Finance
Expenses excl variable
pe ses e c a ab e
661 668 646 -22
22 -15
15
staff costs
Variable staff costs 105 75 88 13 -17 • Structural challenges in
Profit before
impairments
1 305 1 114 1 080 -34 -225 Equities
q
Credit impairments 17 162 74 -88 57
• Solid credit quality
ROE, % 18.9 18.3 16.7
C/I ratio 0.37 0.40 0.40
5

6. Baltic Banking
Focus on costs
SEKm Q1 12 Q4 12 Q1 13 ▲ Q/Q ▲ Y/Y • Stable NII in local currency
Net interest income 910 760 742 -18 -168
Net commissions 386 366 388 22 2 • Increased customer activity
Total income 1 468 1 289 1 281 -8 -187
Total
T t l expenses 629 633 586 -47
47 43
-43 • Recoveries
Profit before
839 656 695 39 -144
impairments
Credit impairments -134 -329 -70 -259 -64 • Increased efficiency in focus
ROE, % 14.6 13.3 12.6
C/I ratio
ti 0.43
0 43 0.49
0 49 0.46
0 46
6

7. Group results
Robust earnings
g
SEKm Q1 12 Q4 12 Q1 13 ▲Q/Q ▲Y/Y • Stable NII
Net interest income 4 895 5 346 5 353 7 458
– Repricing
Net commission income 2 398 2 502 2 388 -114 -10
– Funding costs
Net gains and losses 979 830 557 -273 -422
Total income 9 072 9 437 9 082 -355 10
– Lower deposit margins
Total expenses 4 327 4 142 4 043 -99 -284
Profit before impairments 4 745 5 295 5 039 -256 294
• Net gains and losses
Impairment of tangible assets 40 141 85 -56 45 one-off gain in Q4 12
g
Credit impairments -96 -76 60 136 -156
Tax 1 108 786 976 190 -132 • Lower costs
Profit from continued ops. 3 693 4 427 3 918 -509 225
Profit from discontinued ops. -279 -174 -390 -216 -111
• Continued good asset quality
Profit for the period 3 410 4 252 3 525 -727 115
Return on equity, % 14.1 16.9 13.8 • Ukraine and Russia
ROE continuing operations, % 15.3 17.5 15.3 discontinued operations
Cost/income ratio 0.48 0.44 0.45
7

8. Capital situation
Continued strengthening capital position
g g p p
Common Tier 1 capital ratio
• 13-15% CET1
Basel 2* Basel 3 16.7 17.3
16.4
15.4
15 4
* As of 2012 incl. IAS 19
• CRD/CRR IV – less impact
• IRB Advanced
• Waiting for regulatory clarity
2007 2008 2009 2010 2011 2012 Q1 13
Changes in B3 CET1 ratio Q4-Q1
0.55% 16.38%
0.24% -0.13
0.14% 0.14%
15.45%
Q4 2012 Profit Q1 IAS 19 RWA SME & Other Q1 2013
change Q1 CVA Basel 3
(Basel 3) changes
Increase Decrease
8

9. Strong credit quality
g q y
Credit impairments, SEKm Q1 12 Q4 12 Q1 13 • Continued high credit quality
Retail 21 91 55
in Sweden
Large Corporates & Institutions 17 162 74
Baltic Banking -134 -329 -70 • Slower net recoveries in
Estonia
E t i -78
78 -242
242 -54
54
Baltic Banking
B lti B ki
Latvia -21 86 4
Lithuania -35 -173 -20
• Exiting Russia and Ukraine
g
Swedbank Group -96 -76 60
SEKbn Impaired loans
35 31.7
30
25
20
15
10.3
10
5
0
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13*
* Russia and Ukraine reported as discontinued operations.
9

10. Swedbank’s first quarter 2013 results
Q&A

11. Appendix

12. Loans past due 60 days – performance Q/Q
p y p
EURm
Estonia Latvia Lithuania
50
0
-50
-100
-150
-200
-250
Q1 12
2
Q2 12
2
Q3 12
2
Q4 12
2
Q1 13
3
Q1 12
2
Q2 12
2
Q3 12
2
Q4 12
2
Q1 13
3
Q1 12
2
Q2 12
2
Q3 12
2
Q4 12
2
Q1 13
3
12

13. Provisions – well provided for
p
SEKm
25 000 Provision ratios, % Q1 13
Retail 70
20 000 LC&I 76
65.0% 63.7% 65.2% Baltic Banking 52
61.9%
57.0% Group 57
15 000
2 478
2 040
11 915 1 774
10 000 10 951
9 934
1 545
7 077
5 000 1 420
4 429
0
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13*
Individual provisions Portf olio provisions Provision ratio
* Russia and Ukraine reported as discontinued operations.
13

14. Credit portfolio - Retail
Corporate portfolio drives capital efficiency
p p p y
Total portfolio SEK 222bn Segments excl. Swedbank Volume Secured
Mortgage and Swedbank Finance (SEKbn) (%)
Agriculture
A i lt 5.9
59 81
Manufacturing 9.7 74
Public sector and utilities 5.1 92
94 Construction 4.7 82
104
Retail 9.0 88
Transportation 1.9 85
Shipping 0.1 95
Hotels and restaurants 3.1 91
24
Information & communication 0.9 46
Swedbank Mortgage AB Finance and insurance 2.0 66
Swedbank Finans AB
Property management 49.4 97
Other
Professional service 6.7 65
Other 6.0 72
Total 104.4 87
14

15. Credit portfolio – Large Corporates & Institutions
Shipping and Offshore
pp g SEKbn
Shipping and Offshore
g
-3.0%
-3.0%
30
• Exposure to Shipping & Offshore 24 26 25
24 23
sector was SEK 23.5bn plus 4
20
unutilised commitments of SEK 7.7bn 5
– Portfolio duration 4-5y
10
– Average fleet age 7y
g g y 15
– Strong employment profiles
0
Q1-12 Q2-12 Q3-12 Q4-12 Q1-13
Offshore Tanker Other
Shipping and Offshore Portfolio by subsegment
Shipping and Offshore portfolio by currency
RORO 1.6 bn
Container 0.9
JPY
Dry bulk 0.7 Q1-13
Gas (LNG/LPG) 1.4 Q4-12
Q1-13
Crude oil 0.7 NOK
Product 2.3 Q4-12
Chemical 0.2 USD
Floating p
g production 1.9
Accommodation 1.2
EUR
Supply 3.5
Oil service 1.6
Drilling & exploration 6.8 SEK
Cruise 0.5
05
0 5 10 15 20
0 2 4 6 8
SEKbn
15

16. Credit portfolio
Agriculture
g
• Segmentation definitions
– Corporate Agriculture: Businesses
that derive their main income from
Private:
Residential agricultural activities
20% – Private Investments: Private individuals who
own agricultural p p
g properties for residential or
investment purposes
Agriculture
45%
• Lending to the agricultural sector
Private:
Forestry
SEK 63.3bn
22% – Corporate Agriculture: (58%)
• Agriculture 45%
• Forestry 13%
Forestry
13% – Private Investments (42%)
• Residential: 20%
• Forestry: 22%
16

17. Liquidity and funding
Core balance sheet* structure
Assets Liabilities
SEKbn SEKbn
1 400 1 400
Suppl. cap
S
CET1
Government guaranteed debt
1 200 1 200 Senior
Estonia
CEE lending
1 000 Other corporate 1 000
lending, Sweden &
Deposits
other Nordics
800 800
Other i t S d
Oth private, Sweden
600 600
Swedish
mortgage loans 400
400
Covered
bonds
200 200
0 0
Q1 2013 Q1 2013
* Simplified balance sheet
Source: Swedbank, 31 March, 2013
17

18. Liquidity and funding
Senior unsecured debt strategy
gy
• Limited need given Swedbank’s balance sheet structure
• Secure OC
• Fund liquidity reserves
Senior unsecured debt maturity profile House price sensitivity of the cover pool
SEKbn Senior unsecured debt 40%
60
30%
OC, Q113
tion
20%
ver-collateralisat
40
10%
0%
Ov
20
-10%
0 -20%
20%
2013 2014 2015 2016 2017 2018 2019- 0% -5% -10% -15% -20% -25% -30% -35% -40% -45% -50%
Source: Swedbank, 31 March, 2013, nominal amounts House price drop
18

19. Liquidity and funding
Lower funding needs
g
• LCR 139% (Swedish FSA definition FFFS 2012:6)
• NSFR 93%
• Expanded investor base
Term funding issuance – completed and planned
SEKbn
SEKb Covered bonds Senior unsecured
120
100
80
60
40
20
0
Source: Swedbank, 31 March, 2013, nominal amounts
19

20. Liquidity and funding
Conservative funding plan
gp
• Issued SEK 40bn of term-funding in Q1
• Term funding plan in 2013 of SEK 120bn full year
120bn, full-year
maturities of SEK 86bn
SEKm Issued long-term debt SEKm Outstanding short-term debt
70 000 60 000
60 000 50 000
50 000
40 000
40 000 FY 2012
Q1 13 30 000 Q4 12
30 000
20 000 Q1 13
20 000
10 000 10 000
0 0
Domestic Euro CB USD CB Other CB Senior Domestic CP ECP/CD USCP Yankee CD French CD
CB (144A) unsecured
Source: Swedbank, 31 March, 2013, nominal amounts
20

21. Liquidity and funding
Long-term funding maturity p
g g y profile
• FY 2013 maturities amount to nominal SEK 86bn, of which
SEK 46bn for the remainder of 2013
Long-term funding maturity profile
SEKbn
200 Government
guaranteed debt
Senior unsecured
150
debt
Covered bonds
100
50
0
2013 2014 2015 2016 2017 2018 2019
2019-
Source: Swedbank Mar 31, 2013
21

22. Liquidity and funding
Limited need for USD-funding
g
• USD-funding need covered for more than 12 months
• Issued USD 1bn of covered bonds (144a) and USD 1bn of senior (144a) YTD 2013
( ) ( )
SEKbn
300
Interest-bearing securities
250
Lending to the public
200
Loans to credit institutions
150 Cash and balances with
central banks
100 Deposits and borrowings
from the public
50 Amounts owed to credit
institutions
Debt securities in issue
0
Assets Liabilities
Source: Swedbank Fact book, Mar 31, 2013
22

23. Liquidity and funding
Liquidity reserve
q y
According to the template defined by the Swedish Bankers' Association
SEKm
Cash and holdings in central banks 210 251
Deposits in other banks available overnight 1 290
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks 27 751
Securities issued or guaranteed by municipalities or Public sector entities 378
Covered bonds 58 284
- Issued by other institutions 58 284
- Own issued
Securities issued by non-financial corporates
Securities issued by financial corporates (excl. covered bonds)
y ( ) 2 532
Other
1
Total 300 486
2,
2 3
Additional li id assets, G
Additi l liquid t Group 56 472
1 95% of the securities in the liquidity reserve per Q1 2013 are rated AAA
2 84% of the additional liquid assets fulfill the Liquidity Reserve definition by the Swedish Bankers’ Association except for
the fact that they are held outside the Treasury department.
3 82% of the additional assets are rated AAA
Source: Swedbank Fact book, 31 March, 2013
23

24. Liquidity and funding
Prolonged survival horizon
g
SEKbn
SEKbn
300
250
200
150
100
50
0
0 20 40 60 365
80 100 120 140 160 180 200 220 240 260 280 300 320 340 360
Days forw ard Days forward
Source: Swedbank 31 March, 2013
24

25. Liquidity and funding
Conservative liquidity levels
q y
• Short-term funding mainly a tool for cash management
• More than 12 months pre funded
pre-funded
SEKbn
400 400
350 350
Additional pledgeable
300 300
and/or liquid assets
Next 12-month term
250 250
1 funding maturities
f
Liquidity reserve,
200 securities 200
CP / CDs and net
150 1
150 interbank funding,
Liquidity reserve,
central bank deposits
deposits, SEKm
100 SEKm 100
50 50
0 0
1As defined by the Swedish Bankers’ Association
Source: Swedbank 31 March, 2013
25

26. Liquidity and funding
Asset encumbrance
Encum bered assets - distribution by type of liability (row ) and asset (colum n)
Central banks Debt
and instruments Securities
Government supranational issued by issued by
debt debt Covered credit corporate and Mortgage
SEKm s u e s
instruments s u e s
instruments bo ds
bonds institutions other issuers
s u o s o e ssue s ABS
S oa s
loans Cas
Cash Total
Central bank funding 0
Intraday settlement 1 028 10 772 11 800
Repurchase agreements 1) 18 448 12 765 31 213
Derivative 2) 74 1 949 13 125 15 148
Covered bonds 3) 514 795 514 795
Other 4) 0 736 284 1 020
Total 19 550 0 25 486 736 0 0 514 795 13 409 573 976
Financial assets pledged for insurance policy holders 109 813
Unencum bered assets - additional assets available for secured funding
Central banks Debt
and instruments Securities
Government supranational issued by issued by
debt debt Covered credit corporate and Mortgage
SEKm instruments instruments bonds institutions other issuers ABS loans Cash Total
Securities 5, 6)
, ) 30 948 11 213 73 812 12 671 8 238 984 137 866
Cover pool over
collateralisation 7) 192 782 192 782
Cover pool eligible assets 8) 12 031 12 031
Total 30 948 11 213 73 812 12 671 8 238 984 204 813 0 342 679
Total assets 1 917 227
1) Repoed securities on balance sheet. 6) All type of securities, including securities non pledgeable at central
2) Collateral posted under CSA agreements, gross (3-year, SEKm, banks, of w hich 80% are rated AAA, 2% are rated below A-
High: 21 572, Low : 10 945, Average: 13 975). and 8% are not rated.
3) Of w hich accrued interest of assets in the cover pool, SEK 2 389m 7) Of w hich accrued interest of assets in the cover pool
as of Q1 2013 overcollateralisation, SEK 831m as of Q1 2013
4) Collateral pledged in securities lending activities and w ith 8) Type of loans; Residential 84.3%, Forestry & Agriculture 15.4%,
exchanges Commercial 0.3%.
5) Reversed repos are included.
Source: Swedbank Fact book Q1 2013
26

27. Swedish housing and mortgage market
Swedish mortgage market
g g
• No securitisation (on balance sheet), no sub-prime market, no 3rd party origination, insignificant
buy-to-let market
• 70% home ownership1
• Rental market is regulated
• Transparent credit information (credit information agency, www.uc.se)
– Publicly available information regarding income, debt, payment track record etc
• Consumer credit legislation requires affordability calculations including stress test of higher interest
rate
• Very limited debt forgiveness possibilities (full recourse)
• Strong social security and generous unemployment benefit system
1 Source: Boverket, 2011
27

28. Swedish housing and mortgage market
Real estate prices – Sweden 12 months development
p p
Single-family homes1 Tenant-owner rights2 Combined3
12M Δ 12M Δ 12M Δ
Apr/12 -2% 2% -1%
May/12 -2% 3% -1%
Jun/12 -1%
1% 4% 0%
Jul/12 0% 4% 1%
Aug/12 2% 4% 3%
Sep/12 2% 5% 3%
Oct/12 1% 6% 3%
Nov/12 3% 7% 4%
Dec/12 4% 7% 6%
Jan/13 3% 7% 5%
Feb/13 4% 7% 5%
Mar/13 3% 7% 5%
Source: Valuegard www.valuegard.se (Based on data from Mäklarstatistik), 1 HOXHOUSESWE, 2 HOXFLATSWE, 3 HOXSWE
28

29. 0
200
400
600
800
1000
1200
1400
1600
1800
1 000
1 200
1 400
1 600
1 800
0
200
400
600
800
Ja
an-05 J an-05
J ul-05 J
Jul-05
Ja
an-06 J an-06
J ul-06 J
Jul-06
an-07
Ja J an-07
J ul-07
J
Jul-07
Real estate prices
Ja
an-08
Source: Swedbank, Estonian Land Board
J an-08
J ul-08
Nr.of deals
Nr.of deals
J
Jul-08
an-09
Ja
J an-09
Baltic countries
Tallinn
Vilnius
J ul-09
Source: Swedbank, State Enterprise Centre of Registers
J
Jul-09
Ja
an-10
J an-10
J ul-10
EUR/m2
EUR/m2 J
Jul-10
Ja
an-11
J an-11
J ul-11
J
Jul-11
Ja
an-12
J an-12
J ul-12
an-13
Ja J
Jul-12
J an-13
1 000
1 200
1 400
1 600
1 800
0
200
400
600
800
J
Jan-05
Jul-05
J
Jan-06
Jul-06
Source: Land book database
J
Jan-07
Jul-07
J
Jan-08
Nr.of deals
Jul-08
J
Jan-09
Riga
Jul-09
J
Jan-10
EUR/m2
Jul-10
J
Jan-11
Jul-11
J
Jan-12
Jul-12
J
Jan-13
29

30. Mortgage loans, gross margin (3 months)
g g g g ( )
%
6
5
4
Net margin
3
The gross margin covers:
Cost of liquidity ~0.2%
2
Administrative costs ~0.3%
Credit i
C dit impairments ~ 0.03%
i t 0 03%
Tax (22 % on profit before tax)
1
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Gross margin Swedbank's f unding cost Stibor 3 months Swedish Riksbank's repo rate
30