Year-end report 2009

9 February 2010
Michael Wolf, CEO
Erkki Raasuke, CFO
Göran Bronner, CRO
Progress made in 2009
• Reduced CEE exposure

• Restructuring units established (FR&R and Ektornet)

• Capital strengthening through rights issue and managed risk

weighted assets

• Improved funding structure

• Enhanced organisational and governance structure

2
Results by business area
Q4 update
Swedish Banking SEKm
Profit before impairments
3 000
Continued solid performance, strong growth Q3 09
in deposits, low credit impairments 2 000
Q4 09
1 000

Baltic Banking 0

Lower total income due to contracting -1 000

economy, lower growth rate in impaired -2 000
loans
-3 000
Swedish Baltic International Swedbank Asset
Banking Banking Banking Markets Management
International Banking
Slowing credit impairments in Ukraine, SEKm
Operating result
Russia weaker, further capacity 3 000
adjustments Q3 09
2 000
Q4 09
1 000
Swedbank Markets 0
Strong year, weak trading in Q4
-1 000

-2 000
Asset Management
Continued positive trend in new sales -3 000
Swedish Baltic International Swedbank Asset
Banking Banking Banking Markets Management

3
Net interest income
Continued headwinds in net interest income
SEKm
6 000

5 017 10
5 000 4 702
-57
-134 -58 -4 -71

4 000

3 000

2 000

1 000

Q3 Q4
0
Net interest Swedish Baltic Intl Banking Swedbank Asset Other Net interest
income Banking Banking Markets Management income

4
Net gains and losses
Slow quarter in trading
• FX gains in Ukraine SEK 82m

• Slow trading in Swedbank Markets

• Inefficiencies of hedge accounting and repurchase of own debt in Group Treasury

SEKm Q4 09* Q3 09 Q4 08
Swedish Banking 96 -233 834
Baltic Banking 88 196 -3
International Banking 143 -197 228
Swedbank Markets 59 268 335
Asset Management 2 18 -20
Shared Services and Group Staffs -167 35 -156
Ektornet 2
Eliminations 0 0 26
Swedbank Group 223 87 1 244
* Excluding capital gain of SEK 39m (sale of Aktia shares SEK 24m and of Tallinn Stock Exchange shares SEK 15m)
5
Costs
Capacity and expenses development
• FTE reduction ahead of plan

• SEK 389m reserves of variable FTE plan actual

remuneration reversed in Q4 reduction H2 09 H2 09

• Variable remuneration expenses Swedish Banking 0 -102

down from 2008 by SEK 920m Baltic Banking -690 -860

• Risk management and restructuring Intl Banking -660 -821

related expenses increasing in Total -1 350 -1 783
short-term

• Day-to-day operations expenses will

be lowered further

6
Fourth quarter results 2009
Income statement
SEKm Q4 2009 Q3 2009 Change
Net interest income 4 702 5 017 -315
Net commission income 2 273 2 208 65
Net gains/losses on financial items, fair value 223 87 136
Other income 784 830 -46
Total income 7 982 8 142 -160
Staff costs 2 319 2 241 78
Profit-based staff costs -389 207 -596
Other expenses 2 370 2 078 292
Total expenses 4 300 4 526 -226
Profit before impairments 3 682 3 616 66
Impairment of tangible assets 352 77 275
Credit impairments 5 003 6 121 -1 118
Operating profit -1 673 -2 582 909
Tax expense 115 734 -619
Result for the period -1 788 -3 316 1 528
Profit for the period attributable to: Shareholders of Swedbank AB -1 804 -3 337 1 533

7
Liquidity & Funding
High liquidity maintained
• Survival period further increased
thanks to long-term funding
issuance

• Need for short-term funding

continuously reduced as loan-to-
deposit ratios improve Stress test of liquidity as of 31 December 2009
SEKbn
• Liquidity managed from a long- 300

term and cost efficient view 250

200

150

100

50

0
D1 1W 2W 3W 1M 2M 3M 4M 5M 6M 9M 12M

8
Liquidity & Funding
Loans and deposits development
Swedish Banking (SEKbn)
• Good growth of deposits 970 365
Loans (left)
Deposits (right)
• Loan/deposit ratios improved in all 960 355

business areas 950 345

940 335
• Quality of funding improved
930 325

920 315
Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09

Baltic Banking (EURbn)

Loan/deposit ratio 2008 2009 21 11
Loans (left)
Swedish Banking 279 263 20 Deposits (right) 10

Baltic Banking 204 164 19 9

18 8
Estonia 176 150
17 7
Latvia 292 243
16 6
Lithuania 182 135
15 5
Group 262 240 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09

9
Liquidity & Funding
Improved funding situation

• SEK 66bn of long-term debt issued Outstanding wholesale funding Q2-Q4

during Q4 (and another SEK 30bn SEKbn, notional value

during January 2010) Total long- 391

term, non- 338
• Central bank repos down to guaranteed 318

SEK 116bn Total 166

guaranteed 175
• Average maturity of full wholesale funding > 12M 184

funding further extended to 22

116
Central bank
months (>36 months for covered repos
165
206
bonds)
Total short- 97
term, non- 99
guaranteed* 46

Q4
Total 75
guaranteed 99 Q3
funding < 12M 122 Q2

10
Capital management
Well capitalised
Core Tier 1 capital ratio*
%

12
Core Tier 1 capital ratio* YE 08 9.68%
10 Result loss: SEK10.5bn -1.51%
RWA reduction +1.50%
8
Rights issue +2.10%
Other +0.24%
6 12.0
9.9 Core Tier 1 capital ratio* YE 09 12.01%
9.7 9.4 9.8
4

0
Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
* According to Basel 2

11
Asset quality
Continued risk reduction
• CEE lending as % of equity down from 290% to 209%

Development – lending to the public

SEKbn
1 200
Private
948 959 Corporate
1 000

800

520 555
600

400 251
188
200 428 404 97
84
154 104
0
Sweden 2008 Sweden 2009 Baltic countries & Baltic countries &
Eastern Europe 2008 Eastern Europe 2009

12
Asset quality
Quarterly change of 60-day past due loans
– stabilisation continues

EURm
400

350

300

250

200

150

100

50

-50
Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4
08 09 09 09 09 08 09 09 09 09 08 09 09 09 09 08 09 09 09 09 08 09 09 09 09

Estonia Latvia Lithuania Ukraine Russia

13
Asset quality
Development of impaired loans
• Impaired loans increased by SEK 4.4bn (SEK 6.5bn excl definition change)
• The rate of increase in impaired loans is decreasing
• As expected weak performance in Latvia, Lithuania and Ukraine
SEKm
45 000 Share of impaired
40 132 loans, gross
40 000 947
35 770 4 362
35 000 8 180 Ukraine 53.5%
6 113
29 657
30 000 2 238 Russia 18.2%

25 000 9 736 7 705 Lithuania 14.2%

19 921
20 000

15 000 9 343
13 401 Latvia 21.1%
10 578
10 000

5 000 5 465 Estonia 6.8%

2 196 Sweden 0.2%

0
FY 08 Q1 09 Q2 09 Q3 09 Q4 09 FY 09

14
Asset quality
Credit impairments in Q4
• Credit impairment SEK 5 003m SEKm

+ Sweden and Estonia continued 8 000

good development 6 845

7 000 6 672
+ Ukraine: reduced provisioning 6 121
6 000
ratio as portfolio knowledge
increases 5 000
5 003

4 000
– Russia high losses due to
thorough review of portfolio 3 000

– Lithuania: collateral value 2 000

adjustment
1 000

0
Q1 09 Q2 09 Q3 09 Q4 09

Sweden Baltic Banking Russia & Ukraine Other

15
Asset quality
Provisioning
• All portfolios thoroughly reviewed in 2009
• Portfolio provisions - individual
• Provision ratio for Group increased during Q4 from 63% to 65%

SEKm
30 000
64.8% Provision ratios:
64.1%
25 000 62.9%
63.3% 5 135 Swedish Banking 96%
20 000 Baltic Banking Op 57%
6 922

15 000 8 914
Ukraine 78%
60.1%
10 000 20 882 Russia 66%
6 835
15 582
5 000 3 193 9 864
5 932
3 161
0
Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009
Individual provisions Portfolio provisions Provision ratio

16
Asset quality
Repossessed assets
• Increased to SEK 1.7bn, of which SEK 0.5bn is managed
by Ektornet
SEKm
2 000

1 800

1 600

1 400

1 200

1 000

800

600

400

200

0
Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009

Real Estate Residential Real Estate Commercial Passenger Transport

Commercial Transport Shares Other

17
Asset quality
Ektornet – recouping value over time
• Independent business area as of the fourth quarter
• Management team in place – real estate experience background
• External market appraisal
• Seized collateral at year-end of SEK 517m, mainly real estate
– Nordic region, SEK 173m
– Estonia, SEK 150m
– Latvia, SEK 64m
– US, SEK 130m

• Intake forecast for 2010 is SEK 5bn

• Slow intake process continues into 2012

18
Asset quality
Main risks 2010
• Global macro situation
– Deleveraging
– Sovereign risks with high fiscal debt levels
• Sweden
– Interest rate stimulus withdrawn
– Late impairment losses in certain segments
• Latvia
– Political uncertainty: Election in September
• Ukraine
– Political uncertainty

• Positives: Potential Estonian euro entry 2011

19
Strategic priorities 2010

Customer satisfaction
• Increased customer segment focus
• Local empowerment

• Reducing parts of exposure in CEE countries

Risk reduction
• Protecting value through FR&R and Ektornet

• New business initiatives in Sweden

Earnings capacity
• Strong focus on cost and efficiency

Liquidity & • Increased covered bonds issuance

Capital management • Balancing loan/deposit in all business areas

20
Customer-centric organisational model

CEO

Large
Baltic Russia Asset
Retail Corporates & Ektornet
Banking & Ukraine Management
Institutions

21
Outlook

Given that the global macro economy continues to develop

positively without substantial divergence, particularly in Latvia
and Ukraine, a profit for the full-year 2010 is feasible.

22
Appendix

23
Results 2009
Income statement
SEKm FY 2009 FY 2008 Change
Net interest income 20 765 21 702 -937
Net commission income 7 825 8 830 -1 005
Net gains/losses on financial items, fair value 2 731 2 351 380
Other income 3 461 3 580 -119
Total income 34 782 36 463 -1 681
Staff costs 9 184 9 142 42
Profit-based staff costs 17 950 -933
Other expenses 8 647 7 966 681
Total expenses 17 848 18 058 -210
Profit before impairments 16 934 18 405 -1 471
Impairment of intangible assets 1 305 1 403
Impairment of tangible assets 449 27 422
Credit impairments 24 641 3 156 21 485
Operating profit -9 461 13 819 -23 280
Tax expense 981 2 880 -1 899
Result for the period -10 442 10 939 -21 381
Result for the period attributable to: Shareholders of Swedbank AB -10 511 10 887 -21 398

24
Balance sheet
Swedbank Group SEKm Dec 09 Dec 08 %
Loans to credit institutions 92 131 128 536 -28%
Loans to the public 1 290 667 1 287 424 0%
Interest-bearing securities 170 615 133 694 28%
Fund shares for which customers bear the investment risk 78 194 51 638 51%
Shares and participating interests 9 505 6 557 45%
Derivatives 72 969 128 055 -43%
Other assets 80 606 75 786 6%
Total assets 1 794 687 1 811 690 -1%
Amounts owed to credit institutions 231 687 316 730 -27%
Deposits and borrowings from the public 504 424 508 456 -1%
Debt securities in issue 703 258 593 365 19%
Financial liabilities for which customers bear the investment risk 80 132 52 074 54%
Derivatives 72 172 116 720 -38%
Other liabilities and provisions 75 057 93 128 -19%
Subordinated liabilities 37 983 44 755 -15%
Equity 89 974 86 462 4%
- Non-controlling interest 304 232 31%
- Equity attributable to shareholders 89 670 86 230 4%
Total liabilities and equity 1 794 687 1 811 690 -1%

25
Liquidity & Funding
Long-term funding
• In Q4 Swedbank issued
SEK 66bn of covered bonds and
senior unsecured bonds
compared to maturities of
SEK 14bn

• No Government guaranteed
Swedbank, long-term maturity profile
bonds issued since (including Swedbank Mortgage)
SEKbn, nom
announcement of rights issue 100
(Aug)
80

• Average maturity of wholesale 60

funding further extended to 22
40
months
20
• Maturities of SEK 141bn over
0
next 12 months

2015-
Q1 10
Q2 10
Q3 10
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 11
Q2 11
Q3 11
Q4 11 26
Liquidity & Funding
Funding under the Swedish guarantee programme
(total outstanding as per 31 December, notional SEK 241bn)
Currency distribution
• Total outstanding guaranteed funding EUR 43%
with maturity >12 months decreased USD 29%
by SEK 9bn to ca SEK 166bn SEK 22%

CHF 4%
• No issuance under the government
guarantee during Q4 JPY 2%
100%
• Total outstanding guaranteed funding
with maturity <12 months decreased Maturity distribution
by SEK 24bn to ca SEK 75bn 3-4Y 17%

• Small FX effects during the quarter 2-3Y 17%

1-2Y 34%

< 12 M 32%
100%

27
Cover pool and new issuance of cover bonds

Cover pool data

• Since Q3, two euro covered
Total pool size SEK 608bn
bonds have been issued
Average loan size SEK 398 818
– Euro Mid Term Note CB 7Y,
Number of loans outstanding 1 524 546
EUR 1.25bn, Sep/Oct 2009
Residential Mortgages (90.3%), Public (2.9%), Commercial (0.1%),
Types of loans
Forest and Agriculture (6.7%) – Euro Mid Term Note CB 3Y,
Fixed / Floating interest loans
1
Fixed 49%, Floating 51% EUR 1bn, Jan 2010
2
Average LTV WA LTV on loan level 44%, on property level 58%
• Also continued good demand
3
Maximum LTV Underwriting maximum LTV limits 75%
for domestic covered bonds
Average maturity 54 months issuance through tap system
4
Non performing loans None

Geographic distribution
West 20%, South 24%, East 17%, Middle 32% and North 7%
(Sweden only)

Dynamic pool Yes

1
Distribution by origination, floating interest loans < 365 days
2
LTV: by volume (loan level), index-valuation as of 31 Dec 2008
3
Commercial properties 60%, Forest and Agricultural 70%
4
Past due loans > 60 days are not eligible for the cover pool

28
Swedbank Mortgage, 31 Dec 2009, total loan portfolio
SEK 672bn
• 100% lending – Swedish properties
• 90% residential lending
• Average LTV* of 45% (loan level) 60% (property level). Cover pool 44% / 58%
• 79% of the total lending book within a loan-to-value* ratio below 50%

SEKm Loan-to-value* (LTV)

Loan to value (LTV)
Lending distributed by collateral
250 000

Cooparative
200 000 apartments Commercial
15% properties 0.5%
Municipalities
150 000 3%
Multi-family
houses 16%
100 000

Single-family
Forest &
50 000 homes
Agriculture
60%
6%
SEK 0.5bn
0
<30% 30-50% 50-60% 60-75% 75-85% >85%

Single-family homes Cooperative apartment Multi-family houses (incl housing coop. ass.)
*LTV calculated on a loan-by-loan level

29
Swedish Banking lending to the public, excluding
Swedbank Mortgage, SEK 276bn

SEKm
Real estate management (SEK 91bn)
300 000

Other
10%
250 000 Residential
Industry 27%
Municipalities 10%

200 000 Other corporate lending

Forestry and agriculture
Transportation
Housing
Manufacturing cooperative
150 000
Construction associations
Hotels and restaurants 10%
Retail Commercial
100 000
Real estate management properties
Private individuals 43%

50 000

30
Earnings capacity
Foreign exchange positions as of 31 December 2009

SEKm EEK LVL LTL UAH RUB

Structural position -36 577 64 -14 234 410 -5

Net assets 20 301 7 642 5 651 1 080 1 042

Equity hedge 0 - 7 607 -5 645 0 0

Goodwill 11 541 0 0 0 13

Total position - 4 735 99 -14 228 1 490 1 050

31
Appendix – Baltic Banking

32
Baltic Banking gross lending by sectors*
Portfolio, December 2009, EURm Portfolio growth, Q4 09, EURm

Individuals Mortgage Other 46% -230

Real estate
3,162 18% 21
mgmt***

Retail &
1,244 7% -110
Wholesale

Industry 1,361 8% -43

Transport 853 5% -52

Construction 358 2% -40

Other** 2,645 14% -238

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
** Other portfolio includes Other business services, Energy, Agriculture, State & Municipality and Other loans. Largest decline in Other business services and State loans
*** There is a customer Standard Industry Classification (SIC) code data update process ongoing and as a result, real estate management sector exposure increased. No major new
loans have been granted.

33
Real estate prices stabilised in the second half of 2009

Vilnius
1800 Tallinn 1800 1 800 1 731 1800
1 611
1500 1500 1 500 1500

No of transactions

No of transactions
1 014

EUR/m2
1200 1200 1 200 1200
EUR/m2

900 758 900 900 900

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 Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09
No of deals Average price No of deals Average price

1800 1 762 Riga 1800

1500 1500
No of transactions
1200 1200
EUR/m2

900 900
564
600 600

300 300

0 0
Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09
No of deals Average price

34
LTV risk dimensions
Mortgage portfolio LTV

• Due to the price drop in all three Baltic countries, average

LTVs have increased significantly

• Latvia was hurt most, due to higher share of portfolio issued

at peak prices and a steeper price drop

EE LV LT
Average LTV*: 2009-12-31 90% 166% 92%

Share of portfolio with LTV >100%** 39% 80% 42%

*Average LTV: exposure weighted average of client LTVs within the portfolio
**Share of portfolio with LTV>100%: sum of exposures where client LTV surpasses 100% in the total portfolio

35