First quarter results 2009

23 April 2009
Michael Wolf, CEO and
Erkki Raasuke, CFO
Reduce current risk levels
1. Secure asset quality by pro-active measures

2. Protect earnings capacity throughout the downturn

3. Funding strategy – improve liquidity and extend maturity profile

We have initiated change

2
Secure asset quality
• Prudent provisions due to low visibility
• Intensified Financial Restructuring & Recovery (FR&R) activities
• Proactive measures in Sweden
• Short to medium term aim to decrease risk weighted assets in
absolute terms

Provision ratio expected to

decline during 2009

3
Decentralisation through formalisation
• Shared leadership – joint responsibility
• Implement committee structures at board and management level
to ensure duality, integrity and accountability
• Strong governance and formalisation processes

Empowering the
front-line

4
Determine the post-crisis position
Review of earnings’ capacity and goodwill

Enhanced medium-term earnings

Target improved ratings

Secured funding capacity

5
Unique repositioning opportunity for Swedbank

Unique customer base Dedicated staff

The preferred partner for the many
households, companies and institutions 
in Sweden, Estonia, Latvia and Lithuania

A journey over 3‐5 years

Strong relationship with Long history and 
the Swedish savings banks strong market 
position
6
First quarter results 2009
Deteriorating economic environment affecting results
• Main drivers behind the SEK -3.4bn operating profit
– Prudent provisions due to low visibility and increasing impaired
loans in Baltic Banking and Ukrainian Banking Operation
– Impairment of intangible assets in Ukrainian Banking Investment
– Strong trading result
SEK 5.3bn, 
• Operating profit before excl. Robur
SEKm
Operating profit one‐off 
impairments SEK 5.3bn, 6 000

excl. Swedbank Robur one-off 5 000

4 000
of SEK 480m 3 000
2 000
1 000
0
-1 000 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

-2 000
-3 000
Operating profit before impairments Operating profit
-4 000

7
Results by business area
Result before impairments and provisions
SEKm
Swedish Banking 3 000

2 500 Q4 08
• Stable results, low impairment losses Q1 09
2 000

1 500
Baltic Banking 1 000

• Severe increase of impaired loans, 500

0
declining NII -500

-1 000
International Banking Sw edish
Banking
Baltic Banking International
Banking
Sw edbank
Markets
Asset
Management

• Severe increase of impaired loans, Operating profit

goodwill impairment SEKm
3 000
Q4 08
2 000
Q1 09
Swedbank Markets 1 000

• Best ever quarterly results 0

-1 000

Asset Management -2 000

-3 000
• Results affected by declining AUM, -4 000
one-off pricing error Sw edish
Banking
Baltic Banking International
Banking
Sw edbank
Markets
Asset
Management

8
First quarter results
Income statement
SEKm Q1 2009 Q4 2008 Change
Net interest income 5 803 5 742 61
Net commission income 1 374 2 011 -637
Net gains/losses on financial items, fair value 1 711 1 244 467
Other income 536 1 349 -813
Total income 9 424 10 346 -922
Staff costs 2 335 2 340 -5
Profit-based staff costs 206 262 -56
Other expenses 2 090 2 300 -210
Total expenses 4 631 4 902 -271
Profit before impairments 4 793 5 444 -651
Impairment of intangible assets 1 305 1 403 -98
Impairment losses on loans and other credit risk provisions 6 845 1 633 5 212
Operating profit -3 357 2 408 -5 765
Tax expense -13 500 -513
Profit for the period -3 344 1 908 -5 252
Profit for the period attributable to: Shareholders of Swedbank AB -3 358 1 915 -5 273

9
Asset quality
Impaired loans
• Increased covenant breaches, whilst level of impaired loans in
Swedish Banking remained low
• Sharp increase of impaired loans in Baltic and Ukrainian Banking

Share of impaired loans Impaired loans by business area (gross, SEKm)

10% 9 000
Swedish Banking Baltic Banking
9% 8 000 Q4 08 Q1 09
International Banking Swedbank Markets
8% Swedbank Group 7 000
7% 6 000
6% 5 000
5% 4 000
3 000
4%
2 000
3%
1 000
2% 0

Ukraine
Latvia
1%

Swedbank
Estonia

Russia
Swedish

Lithuania
Banking

Markets
0%
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

10
Asset quality
Provisioning
• Formation of additional collective
20 000 20 000
provisions of SEK 3.7bn
• Total provisions of SEK 6.8bn
15 000 15 000 • Maintained provision ratio in
Baltic Banking
• Increased provision ratio in
10 000 10 000 Ukraine to 101%
• Swedbank Group provision
ratio at 64%
5 000 5 000
• Impaired loans expected to
level off during the year
0 0
Q4 08 Q1 09

Impaired loans (gross)

Collective provisions for impaired loans
Individually identified impaired loan provisions

11
Earnings capacity
Net interest income
SEKm 302
6,000 113
• Highest ever net interest
5,800 5,742
5,803
income
-207 -22 -125
5,600 • Improved lending margins and
5,400 reduced deposit margins in
5,200
Swedish Banking
5,000 • Reduced lending and deposit
4,800 margins in Baltic Banking
4,600 • Strong NII in Swedbank
4,400 Markets
4,200 Q4 Q1
08 09
4,000
Net interest income
Swedish Banking

Swedbank Markets
Net interest income

Asset Management
Baltic Banking

Intl Banking

Other

12
Earnings capacity
Net gains and losses
• Favourable market conditions provided good trading
opportunities for Swedbank Markets
• Net gains and losses related to Swedbank Mortgage
(part of Swedish Banking) will continue to be volatile
SEKm Q1 09 Q4 08 Q1 08
Swedish Banking 100 828 16
Baltic Banking 285 12 78
International Banking 18 229 22
Swedbank Markets 1,221 304 244
Asset Management & Insurance 3 1 -15
Shared Services and Group Staffs 36 -156 -270
Eliminations 48 26 0
Swedbank Group 1,711 1,244 75

13
Liquidity & Funding
Strengthened position in challenging environment
• Improved liquidity position • Active use of state guarantee
• Ongoing efforts to strengthen programme SEK 227bn
liquidity further • Action taken to extend maturity
profile
– Capital market funding over 1Y
maturity, as of 31 December 37%
– As of 31 March 45%

Stress test of liquidity as of 31 March 2009 Q1 09 Non-covered Covered

SEKbn Nominal figures bonds bonds
250 SEKbn (Swedbank AB) Swedbank
Main assumption
Mortgage Total
• No access to capital
200 markets Bonds in issue1 66 25 91
• No refinancing of
150 amounts owed to credit Of which with
institutions, issued
bonds or subordinated state guarantee 65 0 65
100
loans
Expired bonds 18 10 28
50
2009-03-31 2008-12-31 Repurchased 0 60 60
1
0 Excluding issues tied to index-linked bonds
1M

2M

3M

4M

5M
6M

9M

12M
1W

2W

3W

14
Capital management
Actively manage risk weighted assets
• Improved documentation and processes
• Increased focus on risk return
• Declining lending volumes
• Through the cycle methodology

Development risk weighted assets (SEKbn)

720

700

680

660

640

620

600
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

15
Capital management
Solid capitalisation following last year’s rights issue

15.2 15.0

12.6 12.5
11.7

11.1 10.8
8.8 8.7
8.2

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

16
Summary
• Economical challenges of historical dimensions

• Strong measures taken in Q1 to address RWA and credit quality

• Prudence in provisioning levels as impaired loans continue to

increase but we expect it to level off during the year

• Q2 focus will be to take firm control of our destiny in the ongoing

economical downturn

17
Appendix
Balance sheet
Swedbank Group SEKm Mar 09 Dec 08 %
Loans to credit institutions 141 996 128 536 10%
Loans to the public 1 282 258 1 287 424 0%
Interest-bearing securities 169 813 133 694 27%
Shares and participating interests 59 484 60 182 -1%
- for which customers bear the investment risk 52 551 51 638 2%
Derivatives 111 752 128 055 -13%
Other assets 65 493 73 799 -11%
Total assets 1 830 796 1 811 690 1%
Amounts owed to credit institutions 358 812 316 730 13%
Deposits and borrowings from the public 471 833 508 456 -7%
Debt securities in issue 610 256 593 365 3%
"Financial liabilities for which customers bear the investment risk" 53 126 52 074 2%
Derivatives 103 409 116 720 -11%
Other liabilities and provisions 104 471 93 128 12%
Subordinated liabilities 45 874 44 755 3%
Equity 83 015 86 462 -4%
- Non-controlling interest 257 232 11%
- Equity attributable to shareholders 82 758 86 230 -4%
Total liabilities and equity 1 830 796 1 811 690 1%

19
Provisioning (P&L effect)
Q1 2009 Q4 2008 Change Change
Specific provisions for individually
assessed loan 2 423 832 1 591 191%
Provisions for contingent liabilities, net 10 -6 16 -267%
Provisions for collectively valued
homogenous groups of loans with
limited value and similar credit risk 126 34 92 271%
Collective provisions for individually
assessed loans 491 574 -83 -14%
Additional collective provisions 3 680 3 680
Total provisions, gross 6 730 1 434 5 296 369%
Reversal of individual provisions no
longer required -178 -25 -153 612%
Total provisions, net 6 552 1 409 5 143 365%

20
Lehman Brothers
• Collateralised exposure related to Lehman Brothers is
USD 1,350m
– Collateral consists of 69 commercial real estate loans, secured
by 55 properties
– 9 loans were non-performing at March 31
– Aggregate notional value of assets well above book value of Lehman
exposure
• Additional stress tests performed due to the further
deteriorating CRE market in the US
– Appr. 2/3 of the notional portfolio consists of loans to high quality*
commercial real estate. No need for provisions
– Appr. 1/3 of the notional portfolio consists of development projects in
different stages of completion. These have been valued mark to market

*strong DSCR, stable contract situation and/or very low LTV

21
Exposures FAQ
• Private Equity related exposures is
EUR 1,425m in total
– Nordic related LBO’s
– 99% Senior lending
– Largest sector is health care with 45%
– Average size of single exposure is
EUR 60m
• Lending exposure to shipping sector is
EUR 2,081m plus unutilised commitments
of EUR 693m Tanker
Offshore 33%
– Portfolio duration is 4y 42%
– Average fleet age is 6y
– 9% is dry bulk
Ro-Ro,
– 2.7% is car carriers Container
&Bulk
– Strong employment profiles 25%

22
Exposure FAQ

• Hedge Fund Exposure is EUR 94m

– All collateralised
• Total exposure to SIV’s and Conduits is EUR 8m
• Total Exposure to CDO’s is EUR 2m

23
Low risk in interest-bearing securities (SEK 170bn)
Holding distributed by sector Geographic distribution of issuers

Mortgage bonds, Other

Baltics
Other financial not covered 6%
6% US 2%
corporations
4%
9% Central banks UK
Other 29% 5%
As of 31 March 2009,
corporations
Norway
around 15% of the
8%
7% Group’s interest-bearing
Banks
securities were valued
11% using valuation models
Sweden against 19% as of 31
76% December 2008.
States & Mortgage bonds,
municipalities covered
14% 23%

Holding distributed by currency Accounting classification

EUR Held-to-maturity
12% Held for trading* investments** reclassified
NOK USD 94% as of 2008-06-30
7% 4% Held-to-maturity
LTL investments**
1%
EEK
LVL 0% Held-to-maturity
0% investments** initial
GBP classification
SEK 0% 1%
76%
* Recognised at fair value with changes in value through P&L.
** Measured at amortised cost

24
Maturity profile – long-term funding

Swedbank AB, long-term maturity profile Swedbank Mortgage, long-term maturity profile
SEK bn, nom (excl. Swedbank Mortgage) SEK bn, nom
120 120

100 100

80 80

60 60

40 40

20 20

0 0
2009 2010 2011 2012 2013 2014- 2009 2010 2011 2012 2013 2014-

25
Swedbank Mortgage, Q1 2009, total loan portfolio
SEK 642bn (Euro 59bn)

Loan to value (LTV)

Lending
SEKm
250 000
Commercial; 0.2%

200 000 Forest- & Agricult.; 6.2%

Municipalities etc; 3.0%

150 000 Condominiums; 14.2%

100 000
Tenant Owners Assoc.;
11.4%

50 000
Multi-family houses; 4.9%
SEK 6.5bn
0 Single-family homes;
60.2%
<30% 30-50% 50-60% 60-75% 75-85% >85%

Single-family homes Condominiums Multi-family houses (incl Condo Ass)

26
Other lending to the public, Sweden, SEK 306bn
(excl. Swedbank Mortgage)

SEKm
350 000
Real estate management
Municipalities
300 000 Other real
Other corporate lending estate mgmt
9% Residential
Industry properties
250 000 Forestry and agriculture properties 26%
8%
Transportation
200 000
Manufacturing

150 000
Construction
Tenant-owned
Commercial housing-
Retail, hotels and properties associations
100 000 restaurants 40% 17%
Real estate management

50 000
Private individuals

27
Appendix – Baltic Banking
Asset quality

Impairment losses Loan loss ratio

% Q1 09 Q4 08
450 8%
Estonia 3.31 1.32 400 7%
350 6%
Latvia 14.13 3.70 300 5%
Lithuania 6.00 0.77 250
4%
200
Baltic Banking 7.50 1.91 150 3%
100 2%
50 1%
0 0%

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09
Risk indicators EURm Loan loss ratio, %
Q109 2008YE 2007YE
Overdues >60 days, EURm 1,113 536 101
Overdues >60 days, % 5.9 2.7 0.5

29
Asset quality by country
Impairment loss dynamics
pa
Loan eloss
t osses
ratio
16%
Estonia
14% EURm
250
12% 200
10% 150
8% 100 68
50 14 29
7 11
6%
0
4% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09
2%
0%
Latvia
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 EURm
250 229
Est Lat Lit Baltic Banking 200
150
100 60
50 8 11 16
0
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

EURm
Lithuania
250
200
150
86
100
50 3 4 12 11
0
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

30
 Overdue developments
10% Overdues, EE Corporate 10% Overdues, LV Corporate 9,4% 10% Overdues, LT Corporate

8% 8% 8% 7,5%

6% 6% 6%
4,5% 4,0%
4% 4% 4% 5,2%
2,5%
2% 2% 2,9% 2%
0,9% 0,3%
0% 0% 0%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09
31-60 days 61-90 days over 90 days 31-60 days 61-90 days over 90 days 31-60 days 61-90 days over 90 days

Overdues, EE Private Overdues, LV Private 5% Overdues, LT Private

5% 5%
4,1%
4% 4% 4%

3% 3% 2,7% 3%

2% 1,5% 2% 2%
1,1%
1% 1,4% 1% 1% 1,0%
1,2%
0,6% 0,5%
0% 0% 0%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09
31-60 days 61-90 days over 90 days 31-60 days 61-90 days over 90 days 31-60 days 61-90 days over 90 days

* Overdues / current portfolio

31
Overdue loans – Swedbank Estonia and
Swedbank Latvia vs market
Estonia - overdues over 30 days / current Estonia - overdues over 60 days / current
6% portfolio portfolio
6%
5%
5%
4% 4%
3% 3%
2% 2%
1% 1%
0% 0%
dec-05

jun-06

dec-06

jun-07

dec-07

apr-08

jun-08

dec-08

feb-09
mar-06

sep-06

mar-07

sep-07

mar-08

maj-08

sep-08

dec-05

dec-06

dec-07

apr-08

dec-08

feb-09
jun-06

jun-07

jun-08
mar-06

sep-06

mar-07

sep-07

mar-08

maj-08

sep-08
Rest of the market Swedbank Estonia (bank) Rest of the market Swedbank Estonia (bank)

Latvia - overdues over 30 days / current Latvia - overdues over 90 days / current
9% portfolio portfolio
6%
8%
7% 5%
6% 4%
5%
4% 3%
3% 2%
2% 1%
1%
0% 0%

dec-04

jun-05

dec-05

jun-06

dec-06

jun-07

dec-07

jun-08

dec-08
mar-05

sep-05

mar-06

sep-06

mar-07

sep-07

mar-08

sep-08
dec-04

jun-05

dec-05

jun-06

dec-06

jun-07

dec-07

jun-08

dec-08
mar-05

sep-05

mar-06

sep-06

mar-07

sep-07

mar-08

sep-08

Rest of the market Swedbank Latvia (bank)

Rest of the market Swedbank Latvia (bank)

Source: Bank of Estonia. FKTK of Latvia. Baltic Banking data

32
Baltic lending by sectors*
Portfolio (EURm), March 2009 Portfolio growth (EURm), Q1 09
Individuals Mortgage Other 45%
-177
Real-estate
3 193 16%
mgmt** 100

Retail &
1 576 8%
Wholesale -145
EURm

Industry 1 590 8%
-89

Transport 983 5%
-35

Construction 451 2% -86

Other*** 3 051 16% -191

0 2 000 4 000 6 000 8 000 10 000 -300 -150 0 150

% share of portfolio
* Lending portfolio split is based on NACE classification as presented to Central Bank
** In Q109 certain loans were reclassified to Real estate management. As a result real estate portfolio grew by EUR 107m while
Construction decreased by EUR 62m. Other business services EUR -37m and Energy EUR -1m
*** Other portfolio includes Other business services, Energy, Agriculture, State & Municipality and Other loans

33
Mortgage portfolio
• All vintages are converging to the 7% EE Mortgage overdues > 30 days

same level of overdues. Complicated 6%

Overdues / Balance, %
5%
to separate the effects of origination 4%

quality from the downturn impact 3%

2%
1%
0%
0m 6m 12m 18m 24m 30m 36m

2005 2006 2007 2008

7% LV Mortgage overdues > 30 days 7% LT Mortgage overdues* > 30 days

Overdues / Balance, %

6%

Overdues / Balance, %
6%
5% 5%
4% 4%
3% 3%
2% 2%
1% 1%
0% 0%
0m 6m 12m 18m 24m 30m 36m 0m 6m 12m 18m 24m 30m 36m

2005 2006 2007 2008 2005 2006 2007 2008

* Part of loans issued backed by guarantee of the State insurance company

34
Mortgage portfolio quality indicators
• High risk concentration in mortgage Est Lat Lit*
portfolios stays ~12% in Estonia LTV, total portfolio: Q1 09 69% 78% 79%
and ~20% in Latvia, Lithuania. High LTV, total portfolio: Q4 08 67% 71% 70%
risk is defined as all loans with loan LTV>80% 33% 46% 46%
to value ratio (LTV) over 75% and LTV>100% 14% 23% 24%
loan servicing ratio over 50%

• Due to the residential price drop,

Baltic Banking has a higher share
of under-collateralised loans. More
than 1/5th of loans issued in Latvia
and Lithuania already have
LTV>100%. A further drop by 20%
will mean that close to 50% of the
portfolio will be under-collateralised

* Part of loans issued backed by guarantee of the State insurance company

35
Corporate client portfolio
• The effect of the downturn has shown a deterioration of Baltic
Banking real estate, in particular residential development
portfolio
• Downgrades have led to provisions increase by EUR 116.6m
in Q1 2009 (not including the additional collective provision)

BB Rating 6 & 7 exposures BB Total provisions, YTD

Q1 2009 Q1 2009

Commercial real estate Commercial real estate

Q4 2008 Production Q4 2008 Production

Retailing Retailing
Transportation
Transportation
Q4 2007 Q4 2007
Other EURm Other EURm

0 200 400 600 800 1 000 1 200

0 50 100 150 200 250 300 350 400 450
Baltic lending by sectors – real estate

Estonia Latvia
5% 3%
12% 16%
15% 24%

13%
22%
6%

28%

34%
22%
Lithuania
5%
6% 13%

6%
Office
Production&Warehouse
Residential
Retail
40%
30% Land plots
Other

37
Collateral breakdown
• Baltic Banking loan portfolio is adequately Baltic Collateral (EURm)
secured Mar Dec
• Private mortgage portfolio is fully covered 2009 % 2008 %
with family houses and apartments (as a rule State 396 2 370 2
owner occupied) Private real-estate 7 481 37 7 321 36
• Commercial real estate collaterals are Corporate real-estate 6 898 35 7 715 38
revaluated at least once per year. Valuation Guarantees 361 2 317 2
is performed by independent experts Other collateral* 3 547 18 3 742 18
• Full asset pledge, including tangible assets Unsecured 1 299 7 1 104 5
and current assets, is most common case for
Unsecured corporate 505 3 776 4
Corporate portfolio. Collateral position
Unsecured private 794 4 328 2
enhancement with owner guarantees and
additional collateral is used for more risky Total** 19 980 100 20 569 100

customers and SME segments

• The share of unsecured loans is low: 7%
(used for top ratings in corporate segment
and consumer products in private)

*Other collateral is deposits. customer payments. vehicles. etc

** Total loans including repos

38
Volumes development
Loan portfolio portfolio
YoY % growth
Estonia Latvia Lithuania Baltic Banking
90%
20 000

70%
15 000
50%
EUR m

10 000
30%

5 000
10%

0 -10%
´06 ´07 ´08 Mar´09 ´06 ´07 ´08 Mar´09 ´06 ´07 ´08 Mar´09 ´06 ´07 ´08 Mar´09

Loan/Deposit ratio
300%

250%

200%

150%

100%
2006 2007 2008 Q109
Estonia Latvia Lithuania Baltic Banking

39