Swedbank reported its third quarter 2013 results. Key highlights included: - Stable earnings overall with improved net interest income driven by mortgage loan growth and improved margins. Commission income was flat and net gains were weaker. - Expenses remained stable while impairments decreased, leading to higher profits before tax. - Solid asset quality was maintained across all business segments. - Capital ratios increased further with Swedbank's CET1 ratio reaching 18.0% under Basel 3 rules. 150 100 50 50 0 0 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360

1. Swedbank’s third quarter 2013 results
Michael Wolf, CEO
Göran Bronner, CFO
Anders Karlsson, CRO
© Swedbank

2. Retail
Stable results
SEKm
Q3 12
Q2 13
Q3 13
▲ Q/Q
▲ Y/Y
Net interest income
3 405
3 367
3 473
106
68
Net commissions
1 532
1 536
1 550
14
18
Total income
5 413
5 312
5 491
179
78
Total expenses
2 477
2 398
2 389
-9
-88
Profit before
impairments
2 936
2 914
3 102
188
166
72
37
106
69
34
ROE, %
25.5
28.1
28.1
C/I ratio
0.46
0.45
0.44
• Stable NII
Impairments
–
–
–
–
Loan growth
Stable back book margins
Improved funding cost
Improved deposit margins
• Stronger loan growth in
Stockholm
• Solid asset quality
2

3. Large Corporates & Institutions
Robust customer activity
Q3 12
Q2 13
Q3 13
▲ Q/Q
▲ Y/Y
Net interest income
768
851
864
13
Net commissions
416
523
467
-56
51
1 655
1 926
1755
-171
100
662
730
660
-70
-2
65
104
99
-5
34
Profit before
impairments
928
1 092
996
-96
68
Impairments
-38
150
7
-143
45
ROE, %
14.6
14.5
18.3
C/I ratio
0.44
0.43
• Stable NII
96
0.43
SEKm
Total income
Expenses excl. variable
staff costs
Variable staff costs
• Slightly weaker trading
income
• Stable expenses
• Solid asset quality
3

4. Baltic Banking
Increasing customer activity
Q3 12
Q2 13
Q3 13
▲ Q/Q
▲ Y/Y
Net interest income
753
763
807
44
Net commissions
376
445
446
1
70
1 287
1 378
1453
75
166
Total expenses
556
593
604
11
48
Profit before
impairments
731
785
849
118
64
Impairments
-13
-41
-146
-105
-133
ROE, %
11.2
13.4
16.6
C/I ratio
0.43
0.43
• Improved NII
54
0.42
SEKm
Total income
• Recoveries
4

5. Group results
Stable earnings
SEKm
Q3 12
Q2 13 Q3 13
▲Q/Q
▲Y/Y
Net interest income
5 085
5 409
5 641
232
556
Net commission income
2 375
2 525
2 520
-5
145
687
296
170
-126
-517
Total income
8 971
8 979
9 225
246
3 920
4 126
3 995
-131
75
Profit before impairments
5 051
4 853
5 230
179
377
Credit impairments
36
88
-56
-144
-92
Other impairments
101
372
95
-277
-6
Tax
1 216
913
998
85
-218
Profit from continuing ops.
3 698
3 480
4 193
713
495
– Mortgage loan growth
– Treasury
– Margins in Baltic Banking and LC&I
254
Total expenses
• Improved NII
Net gains and losses
• Stable commission income
• Weaker NGL
• Stable expenses
• Continued solid asset quality
ROE continuing
operations, %
15.2
14.1
16.2
C/I ratio
0.44
0.46
0.43
CET 1 ratio, % (Basel 3)
15.4
17.2
18.0
5

6. Capital
Reduced RWA
• Mix change
Swedbank’s Risk-Weighted Assets development
SEKbn
500
• Rating migration
Basel 3
487.1
480
Basel 3
459.5
Basel 3
446.0
460
- 4.7
440
420
Basel 2
464.3
Basel 2
455.2
- 3.7
- 0.6
- 1.4
- 1.4
• FX
• Market risk
0.0
- 1.9
Basel 2
441.6
400
380
360
6

7. Asset quality
Continued strong asset quality
Credit impairments, SEKm
Q3 12
Q2 13
Q3 13
72
37
106
Large Corporates & Institutions
-38
94
7
Baltic Banking
-18
-43
-147
Estonia
2
-36
-38
Latvia
8
18
-70
-28
-25
-39
36
88
• Continued solid asset quality
in Sweden
-56
Retail
Lithuania
Swedbank Group
• Net recoveries in the
Baltic countries
7

8. Swedbank’s third quarter 2013 results
Q&A

9. Appendix

10. Swedish customer satisfaction index (SKI)
Average rating
80
78
76
74
72
Industry average
70
68
Swedbank
66
64
62
60
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: SKI/EPSI
10

11. Swedish housing market
Regulatory initiatives targeting the mortgage market
Swedbank´s equity doubled
• LTV cap of 85%
• Amortisation
Total equity, SEKbn
120
100
• Risk-weight floor of 15% on
mortgage loans
80
60
40
• Capital and liquidity
requirements
20
0
2005
Q3 2013
– High minimum regulatory
requirements (including
SiFi buffer)
– Countercyclical buffer?
– Leverage ratio?
Source: Swedbank
11

12. Swedish housing market
Shortage of housing
Number of apartments
70 000
Housing completions
Apartment buildings
Population and housing growth
Single-family dwellings
1 200
Number of homes / persons, thousands
80 000
60 000
50 000
40 000
30 000
20 000
Acc increase in population
Acc increase in housing completions
1 000
800
600
400
200
10 000
0
0
75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11
90
92
94
96
98
00
02
04
06
08
10
12
Source: Sweden statistics and Swedbank
12

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

14. Provisions – well provided for
SEKm
20 000
Provision ratio, %
15 000
64%
65%
62%
57%
54%
53%
2 040
10 000
10 951
Retail
LC&I
Baltic Banking
Group
Q3-13
63
43
52
53
1 774
9 934
1 545
7 077
1 420
1 398
4 429
5 000
4 047
Q1-13 *
Q2-13 *
1 325
3 570
0
Q2-12
Q3-12
Individual provisions
Q4-12
Portf olio provisions
Q3-13*
Provision ratio
* Russia and Ukraine reported as discontinued operations
14

15. Credit portfolio - Retail
Corporate portfolio drives capital efficiency
Total portfolio SEK 222bn
4.5
92
Construction
4.4
82
8.9
88
2.0
85
Shipping
0.1
95
Hotels and restaurants
3.1
91
Information & communication
Other
74
Transportation
Swedbank Finans AB
8.5
Retail
Swedbank Mortgage AB
81
Public sector and utilities
23
6.1
Manufacturing
94
Secured
(%)
Agriculture
105
Volume
(SEKbn)
0.8
46
Finance and insurance
1.4
66
Property management
52.1
97
Professional service
6.8
65
Other
5.8
72
Total
104.7
87
Segments excl. Swedbank
Mortgage and Swedbank Finance
15

16. Credit portfolio
Agriculture
•
Private:
Residential
20%
Segment definitions
–
–
Corporate agriculture: Businesses that derive
their main income from agricultural activities
Private investments: Private individuals who own
the agricultural properties for living or investment
purposes
Agriculture
45%
•
Private:
Forestry
22%
Lending exposure to the agriculture industry
SEK 64.3bn
–
Forestry
13%
–
Corporate agriculture: (58%)
• Agriculture 45%
• Forestry 13%
Private investments (42%)
• Residential: 20%
• Forestry: 22%
16

17. Credit portfolio – Large Corporates & Institutions
Shipping and offshore
-2.4%
30
•
Shipping and offshore
SEKbn
Lending exposure to Shipping & Offshore sector SEK
24.5bn. Decrease over the quarter mainly due to FX
– Portfolio duration 4-5y
– Average fleet age 7y
– Strong employment profiles
25
-7.2%
26
24
23
25
4
20
5
10
15
0
Q3-12
Q2-13
Tanker
Q3-13
Other
Shipping and offshore portfolio by currency
JPY
Q3-13
Q2-13
NOK
USD
EUR
7.1
Drilling & exploration
Cruise
Q1-13
Offshore
Shipping and offshore portfolio by subsegment
2.0
RORO
1.0
Container
0.7
Dry bulk
2.0
Gas (LNG/LPG)
Q3-13
0.5
Crude oil
2.0
Product
Q2-13
0.7
Chemical
1.7
Floating production
1.2
Accommodation
3.9
Supply
1.2
Oil service
Q4-12
SEK
0.5
0
2
4
6
8
0
5
10
15
20
25
17

18. Liquidity and funding
Core balance sheet* structure
Assets
Liabilities
SEKbn
1 400
SEKbn
1 400
1 200
Suppl. cap
CET1
Government guaranteed debt
Senior
1 200
Estonia
CEE lending
1 000
Other corporate
lending, Sweden &
other Nordic countries
800
Other private, Sweden
1 000
Deposits
800
600
600
Swedish
mortgage loans
400
400
Covered
bonds
200
200
0
0
Q3 2013
Q3 2013
Q3 2013
Q3 2013
* Simplified balance sheet
Source: Swedbank Sep 2013
18

19. Liquidity and funding
Senior unsecured debt strategy
•
Limited need given Swedbank’s balance sheet structure
•
Secure OC
•
Fund liquidity reserves
House price sensitivity of the cover pool
Senior unsecured debt maturity profile
50%
Senior unsecured debt
SEKbn
60
Over-collateralisation
40%
40
OC, Q313
30%
20%
10%
20
0%
-10%
0
2013
2014
2015
2016
2017
2018
2019-
0% -5% -10% -15% -20% -25% -30% -35% -40% -45% -50%
House price drop
Source: Swedbank Sep 2013, nominal amounts
19

20. Liquidity and funding
Lower funding needs
•
LCR 147% (Swedish FSA definition FFFS 2012:6)
•
NSFR 91%
•
Issued SEK 89bn of term-funding YTD of which SEK 20bn in Q3
Term funding issuance – completed and planned
SEKbn
120
Covered bonds
Senior unsecured
100
80
60
40
20
0
Source: Swedbank, 30 Sep 2013, nominal amounts
20

21. Liquidity and funding
Long-term funding maturity profile
• Term funding plan for the next 12 months of SEK 120bn to meet maturities of SEK
98bn
Long-term funding maturity profile
SEKbn
200
Government
guaranteed debt
Senior unsecured
debt
Covered bonds
150
100
50
0
2013
2014
2015
2016
2017
2018
2019-
Source: Swedbank 30 Sep 2013
21

22. Liquidity and funding
Liquidity reserve
According to the template defined by the Swedish Bankers' Association
SEKm
Cash and holdings in central banks
Deposits in other banks available overnight
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks
Securities issued or guaranteed by municipalities or public sector entities
Covered bonds
- Issued by other institutions
- Own issued
Securities issued by non-financial corporates
Securities issued by financial corporates (excl. covered bonds)
Other
132 001
443
46 642
Total1
235 570
Additional liquid assets, Group2, 3
1
54 170
54 170
2 314
39 437
96% of the securities in the liquidity reserve per Q3 2013 are rated AAA
81% of the additional liquid assets fulfill the Liquidity Reserve definition by the Swedish Bankers’ Association except
from that they are held outside the Treasury department.
3 78% of the additional assets are rated AAA
2
Source: Swedbank Fact book, Sep 30, 2013
22

23. Liquidity and funding
Prefunded in excess of 12 months
SEKbn
250
200
150
100
50
0
0
20
40
60
80 100 120 140 160 180 200 220 240 260 280 300 320 340 360
Days forward
SEKbn
400
400
350
350
Additional pledgeable
300
and/or liquid assets
300
250
250
Liquidity reserve,1
200
securities
200
1
150
Liquidity reserve,
central bank deposits,
100
SEKm
150
100
50
50
0
Next 12-month term
funding maturities
CP / CDs and net
interbank funding,
SEKm
0
Source: Swedbank Jun 30, 2013
1
As defined by the Swedish Bankers’ Association
23

24. Liquidity and funding
Limited need for USD funding
•
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
250
Assets held for sale
200
Interest-bearing securities
Lending to the public
150
Loans to credit institutions
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, 30 Sep 2013
24

25. 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
SEKm
instruments
instruments
bonds institutions other issuers
Central bank funding
Intraday settlement
Repurchase agreements 1)
Derivative 2)
Covered bonds 3)
Other 4)
Total
2 444
24 092
647
ABS
Mortgage
loans
8 971
11 986
1 322
Cash
10 136
509 350
27 183
22 279
700
700
288
509 350 10 424
Financial assets pledged for insurance policy holders
33 444
21 254
70 426
12 668
8 447
ABS
Mortgage
loans
Cash
926
7 856
12 183
85
20 124
21 254
1) Repoed securities.
2) Collateral posted under CSA agreements, gross (3-year, SEKm,
High: 21 572, Low : 10 086, Average: 13 453).
3) Of w hich accrued interest of encumbered assets in the cover
pool, SEK 2 173m as of 30 September 2013.
4) Collateral pledged in securities lending activities and w ith
exchanges.
5) Reversed repos are included.
70 426
12 668
8 447
926
221 992
Total
of w hich
received
collateral
(offbalance)
147 165
221 992
221 992
33 444
11 415
36 078
12 105
509 350
988
569 936
114 256
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
SEKm
instruments
instruments
bonds institutions other issuers
Securities 5, 6)
Cover pool over collateralisation 7)
Cover pool eligible assets 8)
Total
Total
of w hich
received
collateral
(offbalance)
0
23 997
369 157
23 997
6) All type of securities, including securities non pledgeable at
central banks, of w hich 82% are rated AAA, 2% are rated below
A- and 7% are not rated.
7) Of w hich accrued interest of assets in the cover pool
overcollateralisation, SEK 960m as of 30 September 2013.
8) Securities received as collateral in for example reversed repo
transactions that; either have (encumbered) or have not
(unencumbered), been used as collateral by Sw edbank.
Source: Swedbank Facts Q3 2013
25

26. Swedish housing and mortgage market
Swedish mortgage market
•
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
26

27. Swedish housing and mortgage market
Real estate price performance – Sweden 12 months
Single-family homes1
12M Δ
Tenant-owner rights2
12M Δ
Combined3
12M Δ
Oct-12
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%
Apr-13
2%
8%
4%
May-13
4%
8%
5%
Jun-13
4%
10%
6%
Jul-13
4%
9%
6%
Aug-13
5%
11%
7%
Sep-13
1
1%
5%
11%
7%
HOXHOUSESWE, 2 HOXFLATSWE, 3 HOXSWE
Source: Valuegard www.valuegard.se (Based on data from Mäklarstatistik),
27

28. Real estate prices
Baltic countries
EURm
Riga
EURm
Tallinn
Nr.of deals
EUR/m2
Source: Swedbank, Estonian Land Board
Jul-13
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-11
Jan-10
Jan-09
Jan-08
Jan-05
Nr.of deals
Jan-08
0
Jul-07
0
Jan-07
200
Jul-06
200
Jan-06
400
Jul-05
400
Jan-05
600
Jul-13
600
Jan-13
800
Jul-12
800
Jan-12
1 000
Jul-11
1000
Jul-10
1 200
Jul-09
1200
Jul-08
1 400
Jul-07
1400
Jan-07
1 600
Jul-06
1600
Jan-06
1 800
Jul-05
1800
EUR/m2
Source: Land book database
Vilnius
EURm
1 800
1 600
1 400
1 200
1 000
800
600
400
200
Nr.of deals
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-08
Jul-07
Jan-07
Jul-06
Jan-06
Jul-05
Jan-05
0
EUR/m2
Source: Swedbank. State Enterprise Centre of Registers
28

29. Mortgage loans, gross margin (3 months)
%
6
5
4
Net margin
3
The gross margin covers:
Cost of liquidity ~0.2%
Administrative costs ~0.3%
Credit impairments ~ 0.03%
Tax (22 % on profit before tax)
2
1
0
2003
2004
Gross margin
2005
2006
2007
Swedbank's funding cost
2008
2009
Stibor 3 months
2010
2011
2012
2013
Swedish Riksbank's repo rate
29