Swedbank corporate presentation, Q3 2016

1. This is Swedbank
October 25, 2016

3. Sweden, Estonia, Latvia and Lithuania
are our home markets
16 million inhabitants
7.2 million private customers
640,000 corporate customers
14,000 employees
400 branches
©Swedbank 3

4. Our global presence
©Swedbank 4
Sweden
Norway
Denmark
Finland
Estonia
Latvia
Lithuania
Luxembourg
USA
South Africa
China
Home markets
Other markets

5. ©Swedbank 5
Lending, SEK billion (Sept 30, 2016)
1439
Operating profit, SEK million (July-Sept 2016)
6 034
Deposits, SEK billion (Sept 30, 2016)
865
Return on equity (July-Sept, 2016)
15,8%
Swedbank in figures

6. We enable
people, businesses
and society to grow.
Vision
Open Simple Caring
Values
Purpose
We encourage a sound and sustainable financial
situation for the many households and businesses.
Who we are

7. We started in1820, as Sweden’s first savings bank. Our
purpose was to combat poverty and to encourage
ordinary people to save for a better future.
Once upon a time…
1820 1915 1991 1992 1995 1997 2005 2006 20071994 2014
Jordbrukskassan
Föreningsbanken
Sparbanken Sverige
IPO Föreningsbanken Föreningssparbanken
IPO Sparbanken Sverige Hansabank
Swedbank
TAZ - Kommerzbank
Sparbanken Öresund

8. With a focus on social, economic and
environmental sustainability.
Our engagement in society continues

9. We get involved where our customers are (examples)
Against bullying
In Sweden, we collaborate with
the Friends Foundation
(Stiftelsen Friends), to prevent
bullying among children.
Introduction to business life
In Lithuania, we have Who Needs It?!, an initiative that
strengthens the collaboration between schools and
businesses. In Sweden, we collaborate with Young
Enterprise (Ung Företagsamhet), which trains high-
school students in entrepreneurship.
.
Football
A partner to the Swedish
Football Association.
Local associations
We have a strong and
extensive involvement in local
community associations.
Internships
Through Young Jobs
(Unga Jobb) we help
arrange internships for
young people. Through A
Job at Last (Äntligen Jobb)
we help arrange
internships for academics
born abroad. Both initiatives
are based in Sweden.
The environment
We were certified according
to ISO 14001 back in 2003
– as the first listed Nordic
bank.Portal for
donations
In Estonia, we contribute
funding and expertise to
I Love to Help, a portal
for donations to around
40 charities.
Support for
future teachers
Through the programme
Mission Possible we help
talented students in Latvia
to become inspiring teachers
and future leaders.
Teach private economy
Through Young Economy (Ung
Ekonomi) we teach private
economy at Swedish schools.

10. Our employees
• We invest in our employees’ development.
• We create opportunities for internal mobility.
• We work for equality and diversity.
• We help our employees to find a balance
between their job and private life.
• Our goal is to have the industry’s best
managers.
©Swedbank 10

11. The world is changing.
And so are we.

12. Customers’
new needs New
competitors
Macro-
economic
developments
New
regulations

13. Customers’ new needs
More and more customers are choosing to do their
daily banking using a computer, smartphone or
tablet. At the same time many customers want
personal help, especially in cases that are a bit more
complex.
Our future: Customers should be able to handle all
their daily banking digitally, but also be able to get
personal, customized help at our branches.
©Swedbank 13

14. Macroeconomic developments
Due to globalisation, both we and our customers are
increasingly affected by what happens in the world.
Demographic changes such as urbanization and
population growth are creating new business
opportunities.
Low inflation has resulted in an expansive monetary
policy and low interest rates. Our customers are taking
greater risks and bigger loans.
Our future: To remain a strong, relevant bank, we need to
constantly adapt to the changes around us.
©Swedbank 14

15. Macroeconomics – current situation (Oct 2016)
We see risks in both the global and the Swedish
economy. Interest rates will remain low, which is a
challenge to our profitability.
Political developments are in the foreground for the
coming year. We have the Brexit process and
important elections in the United States, France and
Germany.
The Swedish economy is booming, but we believe a
slowdown is coming.
©Swedbank 15

16. ©Swedbank 16
New competitors
Our competitors are both global banks and
companies that are operating outside the traditional
banking sector.
Our future: We must make it even easier to manage
daily banking digitally. And we must become even
better at transforming customer data into customer
insights, in order to provide tailor-made services and
products.

17. In the past few years, several new regulations
have been introduced, nationally as well as within
EU and globally. The regulations aim to increase
financial stability and to protect consumers.
Our future: The new regulations will increase our
costs and put pressure on our profits.
Nevertheless, we welcome these regulations as
they contribute to increased stability. As a matter
of fact, Swedbank is one of Europe’s best
capitalized banks.
17
New regulations
©Swedbank

18. MiFID II
EU directive that regulates trading with securities and
aims to improve investor protection.
Basel III
International regulation that has tightened the
requirements for banks’ capital adequacy ratio and
reporting. Aims to prevent future financial bubbles and
crashes.
PSD2
EU directive that aims to create clear rules for third-party
services in the banking market. It also establishes rules
for common security standards.
18©Swedbank
Examples of new regulations

19. We are a part of our customer’s
day – throughout their life.

20. Our private customers
Has her
own
savings
account
Planning
to buy a
new car
Saving for
his
retirement
Recently
bought a
summer
cottage
Saving for
a trip
around
the world
Stock
trader

21. Our private customers
Almost half of the population in our home
markets are Swedbank customers! Here
are a few of the things we help them with:
• Loans & mortgages
• Savings & investments
• Payment services
• Pension and insurance
• Private banking
©Swedbank 21

22. ©Swedbank 22
Our corporate customers
Wants to
start a
company
Needs to
hire staff
On her
way to the
stock
exchange
Wants to
sell his
company
Dreams
about
retirement
Needs
more
capital

23. Our corporate customers
In a company anything can happen. To be able
to help our customers in every possible
scenario, we offer expertise in the following
areas:
• Pensions & insurance • Financing
• Risk management • E-services
• Cash management • Asset management
• International business • Taxes & legal services
• Transfer of ownership • Business management
• Investment • Property management
©Swedbank 23

24. There are many ways to Swedbank
Digital services
Via smartphone, tablet or computer
E-mail
Phone
Social media
400 branches
Customer