UBS Debt Investor reverse roadshow

Stockholm
20 February 2008
Mikael Inglander, CFO
Jan Lilja, Head of Group Treasury
 The leading bank in four small countries

Sweden
Total population: 9.2m
Employees: 8,750
Private customers: 4.1m
Corp. customers: 275,000
Organisations: 120,000
Branches: 459
Typical market share: 25%
Estonia
Total population: 1.3m
Employees: 3,227
Share of group lending
Private customers: 1.2m
Corp. customers: 88,000
Branches: 94
Typical market share: 50%
80%

Latvia Lithuania
Total population: 2.3m Total population: 3.5m
Employees: 2,501 Employees: 3,384 6% 5% 5%
Private customers: 0.8m Private customers: 3.0m 4%
Corp. customers: 53,000 Corp. customers: 78,000

Lithuania
Estonia

Latvia
Sweden

Others
Branches: 77 Branches: 128
Typical market share: 30% Typical market share: 30%

• Potential home markets: Russia and Ukraine

• Supporting markets: Denmark, Finland, Norway, Russia,
(2)
Ukraine, USA, Luxemburg, China, Japan and Spain
Strong position for profitability and growth

Sweden Baltics Ukraine and Russia

Swedbank is the leading bank in
Sweden. Profitability is high and
stable and the bank is
consolidating its market shares in
important segments in both the
private and corporate sectors.
The Baltic economies are
experiencing strong economic
growth that is expected to remain
for many years. As the largest
bank in the region, growing with
the market ensures Swedbank an
attractive earnings growth.
Swedbank has a small but
growing presence in Ukraine and
Russia . Long-term, a significant
share of Swedbank’s growth will
be generated in these markets.

Growth and Future growth and

Stable base
experience profitability

Share of profit Share of profit Share of profit

2007: 66% 2007: 32% 2007: 2%

Share of lending Share of lending Share of lending

2007: 80% 2007: 16% 2007: 2%

(3)
Swedbank, group overview

Shared
Asset
Swedish Baltic Swedbank International Services
Management
Banking Banking Markets Banking & Group
& Insurance
Staffs

60%
52% Share of Group net profit, Q1-3 2007
50%

40%
32%
30%

20%
8% 8%
10%
2%
0%

-10% -2%

(4)
2007 – A successful and eventful year
• Profit attributable to shareholders increased 10% to SEK 12bn
– Net interest income increase by 20%
– Net commission income increased by 11%
• Swedish Banking show a stable result, low risks and high return on
equity
• Record result in Baltic Banking with balanced risks
• Swedbank Markets’ results on same level as last year’s all time high

A successful year despite global credit turmoil

and Baltic slowdown

(5)
Q4 2007 – Good development and strong results
• Good volume development in Sweden
– Stable margins on new lending
• Continued strong results in Baltic banking
– Economic slowdown align with expectations
• Strong finish of the year for Swedbank Markets
– Success in fixed income trading and structured investment products in
Sweden and corporate finance in Norway
• Swedbank Ukraine continues to develop well

Profit increased 7% compared with Q4 2006

(6)
Solid profit development
SEKm SEKm
17,000 17,000
15,000 15,000
13,000 13,000
11,000 11,000
9,000 9,000
7,000 7,000
5,000 5,000
3,000 3,000
1,000 1,000
-1,000 -1,000
2000 2001 2002 2003 2004 2005 2006 2007

Profit before loan losses Capital gains EnterCard and KIAB

Loan losses, net* Operating profit (excl. capital gains)
(7)

*Loan losses, net = write-offs + provisions – recoveries + change in property taken over
Minor direct effects from the credit turmoil

Q4 Q3
Valuation- and accounting effects, SEK M 2007 2007

Swedbank Markets – 40 – 60

Group Treasury, liquidity portfolio –5 – 68

Group Treasury, intra-group lending 20 – 90

Swedbank Mortgage 66 – 129

(8)
 Business volumes
Savings Lending
SEKbn SEKbn
500 1,200
1,103
398 401
1,000 919
400
334
289 800
300
600
475
200 425 390
400 333
102
100 84
200
24 31 53 77 74 100
13 19 34 61
0 0
Deposits, Deposits, AM funds, AM funds, Structured Lending, Private, Corporate, Private, Corporate, Other
Sweden Baltics Sweden Baltics products, Group Sweden Sweden Baltics Baltics
bonds
Dec, 2006 Dec, 2007 Dec, 2006 Dec, 2007

(9)
Credit quality, group
%

0.64
0.56
0.48
0.40
0.32
0.24
0.16
0.08
0.00
-0.08
2000

2001

2002

2003

2004

2005

2006

2007
Loan loss ratio, net Share of impaired loans
Share of provisions
(10)
Margins

% Lending Deposits
%
6.0 6.0

5.0 5.0

4.0 4.0

3.0 3.0

2.0 2.0

1.0 1.0

0.0 0.0
Q3- Q4- Q1- Q2- Q3- Q4- Q3- Q4- Q1- Q2- Q3- Q4-
06 06 07 07 07 07 06 06 07 07 07 07
Estonia Latvia Estonia Latvia
Lithuania Sweden Lithuania Sweden

(11)
 Swedish Banking
• Continued stable earnings and high profitability
SEKm % • Strong corporate lending during Q4
5,000 0.7
– Total lending increased by 4% vs. Q3 and 14%
4,500 during the full year
0.6
4,000 • Continued good deposit trend
3,500 0.5
– Deposits increased by 3% vs. Q3 and 15% during
3,000 0.4 the full year
2,500 • Share of new savings from households
0.3
2,000 increased to 18% (17% in Dec 06)
1,500 0.2 • Rise in funding costs are gradually, but with
1,000 certain delay, passed on through higher lending
0.1
500 rates
0 0.0 • Minor valuation effects as a consequence of the
Q2 Q3 Q4 Q1 Q2 Q3 Q4 turmoil on the credit market
06 06 06 07 07 07 07
• Covered bonds as from Q2 2008
• In agreement to sell 8 branches to savings
Income Costs C/I-ratio banks
• Swedish economy still relatively strong.
(12)
 Baltic Banking Operations
• Continued high profitability
SEKm %
• Net interest income increased 7% vs. Q3
2,400 0.5
2,200 • Lending growth in 2007 was 33%, the gradual
2,000
0.4 slowdown is expected to continue
1,800
1,600 • Weak trading income due to market turmoil
1,400 0.3
• Costs affected by
1,200
1,000 0.2
– Annual wage increases in Latvia and Lithuania,
800 hits P&L as of October every year
600 – Investments in operational excellence project
0.1
400
for increased productivity
200
0 0.0 – High marketing costs.
Q2 Q3 Q4 Q1 Q2 Q3 Q4
06 06 06 07 07 07 07

Income Costs C/I-ratio

(13)
Credit quality, Baltic Banking
2.0% Share of impaired loans (12 month old portfolio)

1.5%

1.0%

0.5%

0.0%
2002 2003 2004 2005 2006 2007
Estonia Latvia Lithuania Baltics Group

2.0% Loan loss ratio, net (average portfolio)

1.2%

0.4%

-0.4% 2002 2003 2004 2005 2006 2007

-1.2%

-2.0%
(14)
Estonia Latvia Lithuania Group
Decreasing Baltic lending growth
8,000 Hansabank, Estonia 60% 7,000 Hansabank, Latvia 100%
90%
7,000 6,000
50% 80%
6,000 5,000 70%
40%
5,000 60%
4,000
4,000 30% 50%
3,000 40%
3,000
20% 30%
2,000
2,000
20%
10% 1,000
1,000 10%
0 0% 0 0%
05/Jun

06/Jun

07/Jun

05/Jun

06/Jun

07/Jun
05/Mar

06/Mar

07/Mar

05/Mar

06/Mar

07/Mar
05/Sep

06/Sep

07/Sep

05/Sep

06/Sep

07/Sep
05/Dec

06/Dec

07/Dec

05/Dec

06/Dec

07/Dec
6,000 Hansabank, Lithuania 70% 20,000 Baltic Banking 70%
18,000
5,000 60% 60%
16,000
50% 14,000 50%
4,000
40% 12,000 40%
3,000 10,000
30% 8,000 30%
2,000 6,000
20% 20%
1,000 4,000
10% 10%
2,000
0 0% 0 0%
05/Jun

06/Jun

07/Jun

05/Jun

06/Jun

07/Jun
05/Mar

06/Mar

07/Mar

05/Mar

06/Mar

07/Mar
05/Sep

06/Sep

07/Sep

05/Sep

06/Sep

07/Sep
05/Dec

06/Dec

07/Dec

05/Dec

06/Dec

07/Dec
1 1
0 0 (15)
0Total lending, EURm YoY growth
0
, 0
%
0
0
 Baltic macro development
• Economic slowdown in Estonia continues: GDP growth slows from ~7% in 2007 to ~5% in
2008; the bottom of the cycle is expected to be in Q2 2008
• In Latvia growth slows from ~10.5% to 6% in 2008, the bottom of the cycle is expected to be
in H2 of 2008
• Slowdown in Lithuania started in Q4 2007: GDP growth will slow from 2007’s 8.7% to ~7.5%
in 2008
• Weak domestic demand reduces imports and exports growth continues. Trade and current
account deficits are falling. CPI will peak in Q1 2008. Long term GDP growth (6-7%) will be
above EU average.
Real GDP growth CPI growth
12%
12%
10%
10%
8%
8%
6% 6%
4% 4%
2% 2%
0% 0%
2005 2006 2007F 2008F 2009F 2005 2006 2007 2008F 2009F
Est Lat Lit Est Lat Lit
(16)

Source: Hansabank Market

 Swedbank Markets
SEKm
• Good end to the year despite the capital
500
market turmoil
450
400 • Strong results in, above all, fixed income and
350 FX trading, structured investment products
300 and corporate finance fees First Securities
250
• Minor valuation effects due to market turmoil,
200
SEK - 40m
150
100 • Continued market leader in corporate bonds,
50 new issues in SEK
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Sustained growth and market leading
06 06 06 06 07 07 07 07 position in structured products, sales grew by
Profit for the period attributable to shareholders 39% in 2007.
of Swedbank

(17)
 International Banking
SEKm
• Continued strong lending growth in Ukrainian
100
Banking, + 112% to SEK 11bn in 2007
75
• Loan loss ratio, net in Ukrainian Banking
50
decreased after adjusting calculation method
25
to Swedbank Group’s principles
0
• Annual lending growth in Russian Banking
-25
was 50% to SEK 10bn
-50
• Following positive court rulings regarding VAT
-75 dispute in leasing operations, a reversal of
-100 SEK 60m was made in Russian Banking
Q2 Q3 Q4 Q1 Q2 Q3 Q4
06 06 06 07 07 07 07 • Lending in Nordic branches more than
doubled in 2007, reaching SEK 13bn.
International Banking, profit for the period
of which Russian Banking
of which Ukrainian Banking Operations

(18)
Business areas
Swedish Baltic Internat. Swedbank Asset
Banking Banking Banking Markets Mgmt
2007 vs 2006, SEKm 2007 % 2007 % 2007 % 2007 % 2007 %
Net interest income 11,701 5,667 986 1,343 83
Net commission income 4,504 1,854 196 1,441 1,868
Other income 1,473 1,252 97 773 232
Total income 17,678 4 8,773 42 1,279 3,557 1 2,183 19
Staff costs 4,296 2,044 405 1,239 425
Other expenses 4,704 1,502 366 753 463
Total expenses 9,000 3 3,546 32 771 1,992 3 888 31
Profit before loan losses 8,678 5 5,227 50 508 1,565 0 1,295 13
Loan losses 71 450 170 0 0
Operating profit 8,607 -2 4,777 49 338 1,565 -1 1,295 13
Tax 2,413 455 70 427 320
Profit for the period 6,194 4,322 268 1,138 975
To Swedbank's
shareholders 6,182 –2 4,322 46 268 1,010 3 975 11
Return on allocated equity % 23.2 31.2 6.9 24.2 57.0
(19)
Key figures
Jan - Dec, Jan - Dec,
2007 2006
Return on equity, % 18.9 19.3
Earnings per share, SEK 23.28 21.11
Equity per share, SEK 131.96 116.37
C/I ratio before loan losses 0.51 0.52
Loan loss ratio, net, % 0.07 – 0.02
Share of impaired loans, % 0.13 0.07
Dividend, SEK* 9.00 8.25
Tier 1 capital ratio, new principles, % 8.5 -
Tier 1 capital ratio, transition principles, % 6.2 6.5 **
Capital adequacy ratio, new principles, % 12.7 9.8 **

*according to Board of Directors’ proposal

**according to old principles

(20)
 Tier-1 ratio, Group
% %
10 10 • Tier 1 ratio amounted to 8.5%
9 9
• Tier 1 ratio, according to transition
8 8
principles, was 6.2%
7 7
6 6 • As of January 1, 2008, tier 1 ratio
5 5 according to transition principles,
4 4 increased by 31 bps due to the gradual
3 3
implementation of Basel 2 regulations.
2 2
1 1
0 0
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Q1-07
Q2-07
Q3-07
Q4-07

Tier 1 ratio, Basel 2

Tier 1 ratio, transition rules
Target Tier 1 ratio
(21)
Swedbank Funding Structure
Lending to the public, SEK 1103bn

Swedbank Group,
excl. Swedbank Swedbank
49% 51%
Mortgage Mortgage
SEK 542bn SEK 561bn

Distribution of Net Funding Need

Swedbank Treasury (excluding Mortgage) Swedbank Mortgage
Funding Equity
8% 5%
Equity •Large deposits Swedbank Mortgage
8%
•Liquidity reserves constitutes a larger part of
Swedbank Group’s balance
•Net lender in the sheet compared to other
interbank market
financial institutions
•Liquidity limits –
Deposits conservative view
85% Funding
95%

(22)
Swedbank Mortgage – Credit Risk
31-dec

700
Municipalities
Commercial 3% (4) Agriculture
6% (6) 600
buildings
1% (1)
500

400
Multi-family housing

SEKm
incl. Condominium
associations 300
16% (17)
200

100
Single-family homes
Individual 61% (61) 0
condominiums
13% (11)
-100
2000 2001 2002 2003 2004 2005 2006 2007

Credit losses
= 90% Residential loans -Net recoveries during 2007

Net
70,00

3000
60,00

2500
50,00
%
40,00 2000

SEKm
30,00 1500

20,00 1000

10,00
500

0,00
0
<30% 30-60% 60-75% 75-85% >85%
2000 2001 2002 2003 2004 2005 2006 2007
Distribution of loan to value

Average LTV of 44% Impaired, restructured and past due loans

“80% percent of the portfolio has an LTV of 50% or lower” – At historically low levels (23)
Converting to Covered Bonds, Q2 2008

• Possibility to meet a broader investor base

• Larger investor base ensures for even more stable liquidity
• AAA-rating - funding at lower cost
• Increased liquidity reserve through Swedbank’s possibility to pledge
subsidiary covered bonds in Riksbanken
• Funding strategy to prolong maturity structure with covered bonds

(24)
Swedbank Mortgage – Long Term Funding
Swedbank Mortgage - Long Term Funding

250 000

200 000

150 000

100 000

50 000

0
<1y 1-2y 2-3y 3-4y 4-5y >5y

Action plan:
• Conversion to covered bonds during Q2, 2008 and covered bond issues, approx. EUR 6.0bn
• Continuous activities in the market for private placements, approx. EUR 1.5bn
• Continuous issues on tap in the Swedish mortgage bond market under existing mortgage
bond programme, approx. EUR 7.5bn
• The issue of a new 5-year Swedish benchmark bond Swedbank Mortgage 177
• The maturity of SPI173 in June, 2008 is smaller than the average yearly maturing domestic
benchmark bond
(25)
Additional questions?
Johannes Rudbeck
Investor relations
johannes.rudbeck@swedbank.se
+46858593322