1) Swedbank reported a net profit of SEK 2.6 billion in Q3 2010, an improvement from Q3 2009, with profits supported by Baltic Banking and improved NII. 2) Key business areas like Retail and Large Corporates saw increased NII and market share while expenses were seasonally lower. 3) Asset quality continued to improve with declining impaired loans and credit impairments, though volumes remained high in countries like Ukraine and Latvia. 4) Liquidity and funding remained solid with continued term funding and a focus on long-term covered bond issuance.

1. Swedbank’s third
S db k’ thi d quarter 2010 results
t lt
21 October 2010
Michael Wolf, CEO
Erkki Raasuke, CFO
Göran B
Gö Bronner, CRO

2. Continued financial improvement
p
• Net profit of SEK 2.6bn in Q3
• Baltic Banking net profit in Q3 of SEK 531m
• Improved NII and stable net commission income
Net p o t performance
et profit pe o a ce
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
2

3. Result by business area
Business highlights
g g SEKm Profit before impairments
2 000
Retail Q2 10
Q3 10
• Increased NII and seasonally lower costs 1 000
• Increased market share in new mortgage
lending 0
• New in-principle framework agreement with
savings banks -1 000
Retail Large Baltic Russia & Asset Ektornet
Corporates & Banking Ukraine Management
Large Corporates & Institutions Institutions
• Slow trading activity SEKm Operating result
2 000
• Stable corporate lending volumes
Q2 10
Q3 10
1 000
Baltic Banking
• NII supported by lower domestic rates 0
• Deleveraging in Baltic Banking continues
• Decreasing credit impairment trend -1 000
Retail Large Baltic Russia & Asset Ektornet
Corporates & Banking Ukraine Management
Institutions
3

4. Net interest income
Improved NII
p
• Retail showed increased volumes and improved margins
• LC&I lower activity levels
• Treasury deficit reduced by funding mismatch effects
5 017 Retail Treasury,
4 702 LC&I Baltic Russia,
Banking Ukraine Other
3 980
4 023 102 24 123 146
3 799 45
-113 918
711
2 432
(SEKm)
-227
227
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
4

5. Net commission income
Stable commission income
• Strong card and payment volumes
• Lower b k
L brokerage and corporate fi
d t finance f
fees
Retail LC&I Baltic Russia, Asset Mgmt,
2 395 Banking Ukraine Other
2 361 2 310
2 208 2 282
-57 -21 -2 4
-9 387
19
386
387
1 131
(SEKm)
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
5

6. Net gains/losses on financial items, fair value
Supported by valuation effects
pp y
• Low trading activities
• FX losses i Uk i
l in Ukraine
• Funding related valuation effects in Group Treasury still high
809 Retail LC&I Baltic
Banking Russia,
,
-5 Ukraine Treasury,
647 -49 Other
-41 574
-48
92
-92
256
48
223
(SEKm)
260
87
35
-25
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
6

7. Expenses
Expenses seasonally lower
p y
SEKm Q3 10 Q2 10 %
Staff costs 2 261 2 282 -1
Variable staff costs 19 141 -87
Other expenses 1 958 2 000 -2
Total expenses 4 238 4 423 -4
C/I ratio
0.56 0.57 0.57 0.55
0.54
Retail LC&I Baltic Russia, Staff and
4 526 4 391 4 423 Banking Ukraine other
4 300 4 238
97
-114 -90
90 530
52
-52 26
-26 202
626
690
(SEKm)
2 190
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
7

8. Liquidity & Funding
Solid wholesale funding activity continues
• YTD term funding of SEK 190bn, of which Outstanding wholesale funding
SEK 40bn during the third quarter (nominal SEKbn)
• Remaining maturities of SEK 42bn in Q4, Long-term, 459
out of SEK 137bn in total maturities for the non- 456
guaranteed 397
full year 2010 (nominal values)
163
• SEK 159bn of central bank repos and Long-term,
173
guaranteed*
guaranteed funding were redeemed during 180
the first nine months of 2010
35
Central bank
• Average maturity of all wholesale funding 89
repos
116
of 28 months, 38 months for covered bonds
(
(nominal value)
) Short term,
Short-term, 112
non- 112
guaranteed** 97
0
Short term,
Short-term
0 Q3 2010
guaranteed***
61 Q2 2010
Q4 2009
* Issued with more than 12 month maturity
** Including interbank deposits
*** Issued with less than 12 month maturity
8

9. Third quarter 2010 results
Income statement
SEKm Q3 10 Q2 10 QoQ % YTD 10 YTD 09 YoY%
Income 7 647 7 772 -2
2 23 086 26 800 -14
14
Expenses 4 238 4 423 -4 13 052 13 548 -4
Profit before impairments 3 409 3 349 2 10 034 13 252 -24
Total impairments 173 1 091 3 524 21 040
Operating profit 3 236 2 258 43 6 510 -7 788
Tax expense 638 672 -5 1 779 866 105
Profit attributable to shareholders 2 591 1 567 65 4 694 -8 707
Return on equity, % 11.3 7.0 6.9 -14.1
Cost-income ratio 0.55 0.57 0.57 0.51
Loan-deposit ratio,
Loan deposit ratio % 233 229 233 257
Core Tier 1 capital ratio, %* 13.4 12.7 13.4 9.9
Risk-weighted assets * 559.7 579.4 559.7 607.5
* Basel 2
9

10. Asset quality
Continues to improve
p
• Asset quality indicators in the right direction
– Impaired loans
– 60 days overdue
All declining
– Restructured loans
– Watch list
• W ll provided f within existing problem areas
Well id d for ithi i ti bl
• Positive rating migration in Sweden, stable in the Baltic countries
g g ,
• Significant RWA reduction
• Business activity increasing
10

11. Asset quality
Volumes
• CEE lending decreased partly due to SEK 7.5bn FX effect
• Continued relative shift from corporate to private in Sweden
SEKbn
1 000 948 955 961
Private
900
Corporate
C t
800
700 521 573
566
600
500
400
300 251
200 427 389 388 97 163 150
90
100 77 71
154 43
86 79 47
0
Q4 08 Q2 10 Q3 10 Q4 08 Q2 10 Q3 10 Q3 10
Sweden CEE Excl Estonia
11

12. Asset quality
Credit impairments significantly reduced
p g y
• Sweden small reversals SEKm
7 000
• Baltic
B lti countries
ti 6 121
6 000
– Credit impairments in Latvia
5 003
5 000
• Recoveries i R
R i in Russia and Uk i
i d Ukraine
4 000
3 000
2 210
2 000
963
1 000 120
0
-1 000
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
Retail LC&I Baltic Banking Russia & Ukraine Other
12

13. Swedbank core balance sheet – low risk
• Low risk Swedish mortgage portfolio funded with covered bonds
• Other Swedish and Nordic lending funded by deposits
• CEE lending decreased significantly and Loan/Deposit ratio restriction
• Strong stress test results
1 400
SEKbn
1 200 Subordinated debt
Equity
CEE Senior unsecured
1 000 CEE d deposits
it
Other Swedish and
800 Nordic corporate lending
Swedish and Nordic deposits
Other Sw private
Sw.
600
Government guaranteed
400
Swedish mortgage lending
200 Covered bonds
0
Assets Liabilities
13

15. Appendix
15

16. Asset quality
Impaired loans decreased by SEK 4bn
p y
• Without FX effect down SEK 1.5bn
• Underlying decreases mainly relate to the Baltic countries
SEKm Impaired loans as
% of gross lending
45 000 42 719 38 631
40 132 40 328
40 000 -4 088
196 2 391
35 770 4 362 8 531 Ukraine 67%
35 000
6 113
29 657
30 000 2 152 Russia 24%
6 971
25 000 Lithuania 17%
20 000 12 907 Latvia 27%
15 000 29 657
10 000
5 134 Estonia 8.1%
5 000
1 123 LC&I 0.3%
0 1 813 Retail 0 2%
0.2%
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 10
16

17. 50
-50
0
100
00
150
200
250
-150
-100
50
EURm
Q3 09
0
Q4 09
0
Q1 10
p
Estonia
Q2 10
Q3 10
0
Q3 09
Q4 09
0
Q1 10
Latvia
Q2 10
Q3 10
y p
0
Q3 09
Q4 09
0
Q1 10
Lithuania
Q2 10
Q3 10
0
Q3 09
Q4 09
0
Q1 10
Russia
Loans past due 60 days – performance Q/Q
Q2 10
Q3 10
0
Q3 09
Q4 09
0
Q1 10
Ukraine
Q2 10
Q3 10
17

18. Asset quality
Repossessed assets
p
SEKm
2 500
2 000
1 500
1 000
500
0
Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 10
Real Estate Residential Real Estate Commercial Passenger & Commercial Transport Shares Other
18

19. Real estate prices
p
Tallinn Riga*
1 800 1 800
1 762
1 800 1 800
1 611
1 500 1 500 1 500 1 500
ns
s
No of transactions
No of transaction
1 200 1 200 1 200 1 200
EUR/m2
EUR/m2
900 822 900 900 900
616
600 600 600 600
300 300 300 300
0 0 0 0
Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09 Q2'10 Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09 Q2'10
No of deals Average price No of deals Average price
Source: S db k E t i L d B d
S Swedbank, Estonian Land Board Source: S db k
S Swedbank
Vilnius*
1 731
1 800 1 800
1 500 1 500
No of transactions
1 200 1 016 1 200
EUR/m2
900 900
E
t
600 600
300 300
0 0
Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09 Q2'10
No of deals Average p
g price
Source: Swedbank, State Enterprise Centre of Registers
* Data as of August 2010
19

20. Liquidity & Funding
Long-term funding
g g
• SEK 42bn (nominal value) of remaining term funding maturities in Q4
• Continued focus on covered bonds with YTD issuance of SEK 164bn
• YTD issued SEK 26bn in senior unsecured and structured funding
• Average maturity of wholesale funding of 28 months, covered bonds of 38 months
(nominal value)
( i l l )
• SEK 180bn (nominal value) in maturities during 2011
Swedbank, long term maturity profile
long-term
(including Swedbank Mortgage)
SEKbn, nom
100
80
60
40
20
0
-
2016-
Q4 10
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
Q2 15
Q3 15
Q4 15
Q1 11
Q2 11
Q3 11
Q4 11
20

21. Liquidity & Funding
Remaining funding under the Swedish guarantee programme
g g g p g
• Swedbank exited the guarantee Currency distribution
programme on 30 April 2010
EUR 41%
• No issuance under the programme as of USD 27%
August 2009
g
SEK 25%
• Outstanding guaranteed funding
CHF 5%
decreased during the third quarter by
SEK 10bn to SEK 163bn (nominal value)
value), JPY 2%
mainly due to FX effects
Maturity distribution
3-4Y 18%
2-3Y 6%
1-2Y 51%
< 12 M 25%
21

22. Liquidity & Funding
Cover pool and covered bond funding sources
p g
As per Q3 2010
Total pool size SEK 626bn
• AAA/Aaa Rating from S&P and
Geographic distribution Sweden 100% Moody’s
Average seasoning 56 months
Average LTV 1, 2 • Unlimited domestic covered bond
– WA LTV on property level 58% programme, through tap system
Non-performing loans 3
p g None
Types of loans • EUR 25bn EMTN covered bond
– Residential mortgages 90.8% programme
– Public 2.3%
– Commercial 0.1%
0 1% • SEK150bn domestic MTN covered
SEK150b d ti d
– Forest and Agriculture 6.8%
bond programme
Fixed /Floating interest loans 4
– Fixed 51% • Unlimited Norwegian covered
– Floating 5 49%
Average loan size SEK 413 441
bond programme
Number of loans outstanding 1 514 910
Dynamic pool
y Yes • Registered covered bonds
1 Index valuation as of 31 May 2010
• In addition to public deals, private
2 Maximum LTV: Residential 75%, Commercial 60%, Forest and Agriculture 70%
3 Past due loans > 60 days are not eligible for the cover pool
placements are executed through
4 Distribution by origination
y g
5 Floating interest loans < 365 days
all programmes mentioned above
Source: Swedbank
22

23. Swedbank Mortgage total loan portfolio of SEK 687bn
• 100% of l di i S d
f lending in Sweden
• 90% in residential lending
• Average LTV of 46% (loan level) 61% (property level*) Cover pool 43% and 58%
level*).
respectively.
SEKbn Loan-to-value* Lending distributed by collateral
110
100
90
Cooperative Commercial
80 apartments properties
15% 0.2%
0 2%
70 Municipalities
2%
60 Multi-family
housing
50 15%
40
Forest &
30 Agriculture
7%
20
10
0
<30% >30-40% >40-50% >50-60% >60-70 >70-80% >80-90% >90% Single-family
housing
Single-family housing Cooperative apartments Multi-family housing (incl housing coop. ass.) Forest & Agriculture 61%
*From Q3 2010 the LTV distribution in the graph is changed from ”loan level” to ”property level”
23