Swedbank presents the Second Quarter Results 2014

1. © Swedbank
Swedbank’s second quarter 2014 results
Michael Wolf, CEO
Göran Bronner, CFO
Anders Karlsson, CRO

2. Stable result
2
Swedish Banking - excluding Sparbanken Öresund
SEKm Q2 14 Q1 14 ▲ Q/Q ▲ Y/Y
Net interest income 3 314 3 314 -71
Net commission income 1 771 1 649 121 283
Other income 604 459 146 206
Total income 5 689 5 422 267 418
Total expenses 2 491 2 443 48 144
Profit before
impairments
3 198 2 979 219 275
Credit impairments 21 31 -10 -39
ROE, % 30.5 28.3
C/I ratio 0.44 0.45
• Lower deposit margins
• Mortgage margins
– Improved towards end of quarter
• Volume growth both in private and
SME segments
• Higher market activity supports
commission income
• One-off income from Entercard
Volumes, SEKbn Q2 14 Q1 14 ▲ Q/Q ▲ Y/Y
Loans 970 949 21 51
Deposits 389 379 10 10

3. Sparbanken Öresund impact in Q2
3
Sparbanken Öresund
SEKm
Ordinary
business
One-offs Total
Net interest income 48 48
Net commission income 18 18
Other income 13 461 474
Total income 79 461 540
Staff costs 47 393 440
Other expenses 39 222 261
Total expenses 86 615 701
Credit impairments 4 4
Tax expense -2 -135 -137
Profit for the period -9 -19 -28
Volumes, SEKbn
Loans 16
Deposits 12

4. Stable result
4
Swedish Banking – including Sparbanken Öresund
SEKm Q2 14 Q1 14 ▲ Q/Q ▲ Y/Y
Net interest income 3 362 3 314 48 -23
Net commission income 1 790 1 649 141 301
Other income 1 077 459 618 679
Total income 6 229 5 422 807 957
Total expenses 3 192 2 443 749 844
Profit before
impairments
3 037 2 979 58 113
Credit impairments 25 31 -6 -35
ROE, % 29.7 28.3
C/I ratio 0.51 0.45
Sparbanken Öresund impact:
• Total income SEK 540m
– Of which SEK 461m in one-off
bargain purchase (badwill)
• Total expenses SEK 701m
– Of which SEK 615m in one-off
restructuring costs
Volumes, SEKbn Q2 14 Q1 14 ▲ Q/Q ▲ Y/Y
Loans 987 949 38 68
Deposits 401 379 20 23

5. Good customer activity
• NII
– Loan volume growth
– Lower accrued fees
• Continued high customer activity
– Corporate finance
– DCM
• Good cost control
• Risk awareness going forward
5
Large Corporates & Institutions
SEKm Q2 14 Q1 14 ▲ Q/Q ▲ Y/Y
Net interest income 846 867 -21 79
Net commission income 496 630 -134 184
Net gains and losses 575 565 10 58
Total income 1 945 2 099 -154 306
Total expenses 804 834 -30 69
Profit before
impairments
1 141 1265 -124 237
Credit impairments 21 -30 51 -177
ROE, % 23.1 26.9
C/I ratio 0.41 0.40
Volumes, SEKbn Q2 14 Q1 14 ▲ Q/Q ▲ Y/Y
Loans 157 152 5 6
Deposits 98 99 -1 29

6. Strong revenues
• No financial impact from the crisis in
Ukraine
• Increased market activity
• Good cost efficiency
6
Baltic Banking
SEKm Q2 14 Q1 14 ▲ Q/Q ▲ Y/Y
Net interest income 894 874 20 263
Net commission income 522 429 93 118
Total income 1 596 1 465 131 401
Total expenses 621 607 14 45
Profit before
impairments
975 858 117 356
Credit impairments -16 -101 85 -4
ROE, % 15.6 15.2
C/I ratio 0.39 0.41
Volumes, SEKbn Q2 14 Q1 14 ▲ Q/Q ▲ Y/Y
Loans 122 118 4 3
Deposits 122 117 5 12

7. Strong result
7
Group results – including Sparbanken Öresund
SEKm Q2 14 Q1 14 ▲Q/Q ▲Y/Y
Net interest income 5 521 5 483 38 242
Net commission
income
2 813 2 693 120 593
Net gains and losses 773 345 428 265
Other income 1 348 799 549 614
Total income 10 455 9 320 1 135 1 714
Total expenses 4 919 4 226 693 976
Profit before
impairments
5 536 5 094 442 738
Credit impairments 30 -100 130 -218
Other impairments 70 135 -65 -252
Tax 1 063 1 074 -11 248
Profit from continuing
operations
4 369 3 980 389 955
• Growth
• Mixed margins
• Strong commission income
• One-offs
• Meeting cost target
• Integrating Sparbanken Öresund
ROE continuing
operations, %
16.6 14.6
Cost/income ratio 0.47 0.45
CET1 Capital ratio, % 20.9 18.3

8. Reduced REA following A-IRB approval
Capital
8
• REA decreased by SEK 42bn to SEK 406.7bn during the quarter
• A-IRB approval, Sparbanken Öresund acquisition and higher lending volumes
impacted the most
• No regulatory excess capital
*
* Including equity investment in Sparbanken Skåne, SEK 1.7bn
Swedbank REA development
18.3%
20.9%
10%
12%
14%
16%
18%
20%
22%
24%
Q1 2014 Q2 2014
CET1 capital ratio
448.8
16.3
12.3 0.7
4.7
0.1 0.2
- 72.9
- 1.6 - 1.4
- 0.3
406.7
340
360
380
400
420
440
460
Mar 2014 Advanced
IRB
Sparbanken
Öresund and
Sparbanken
Skåne
Exposure
change
Rating
migrations
LGD FX credit
risk
Other credit
risk
CVA risk Market risk Operational
risk
Jun 2014
SEKbn
Increase Decrease

9. Strong asset quality
• Low risk position confirmed by
Fitch and S&P
9
Asset quality
Credit impairments,
SEKm
Q2 14 Q1 14
Swedish Banking 25 31
Large Corporates &
Institutions
21 -30
Baltic Banking -16 -101
Group Functions & Other 0 0
Swedbank Group 30 -100

10. Swedbank’s second quarter 2014 results
Q & A

11. Appendix

12. Long-term financial impact from Sparbanken Öresund
• P&L impact 2016-2017
– Estimated net profit contribution of SEK 350-450m
– Incremental RoE to reach group target 2016
• Long term
– Estimated net profit contribution of at least SEK 500m
– Incremental RoE >25 per cent
12
Sparbanken Öresund

13. Sparbanken Öresund – ownership structure
13
Sparbanken Öresund
Sparbanken Skåne
+ 8 Spb Öresund
branches
Sparbanken 1826
Swedbank
Sparbanken
Öresund
Sparbanksstiftelsen
Öresund
Sparbanksstiftelsen
Gripen
Today
22% 78%
Before transaction
Sparbanksstiftelsen
Färs & Frosta
Sparbanksstiftelsen
1826
100%
Färs & Frosta
Sparbanken
Öresund
Swedbank
70%30%
Sparbanksstiftelsen
1826
Sparbanksstiftelsen
Färs & Frosta
Sparbanksstiftelsen
Öresund
26%
22% 100%26%
26%

14. Sparbanken Öresund - Facts
14
Sparbanken Öresund
Split up of Sparbanken Öresund Swedbank Skåne (1
Sparbanken
Öresund
Swedbank Sparbanken
Skåne
Current Proforma Increase
%
Employees 559 447(2 112 410 857(2 109
Branches 24 16 8 27 43 59
Customers 204 700 108 300 96 400 482 000 590 300 22
o/w Corporate (3 15 700 8 300 7 400 38 000 46 300 22
o/w Private 189 000 100 000 89 000 444 000 544 000 23
Lending, SEKbn 25 16 9 14 30 114
Mortgages, SEKbn (4 33 17 16 56 73 30
Deposits, SEKbn 24 12 12 34 46 35
Other (AUM, etc), SEKbn 20 10 10 34 44 29
1) In addition, one branch in Lomma will be sold to Swedbank by Sparbanken Skåne
2) Of which 61 relate to Cerdo Bankpartner
3) Includes micro corporates
4) Sparbanken Öresund is a distributor of SBAB mortgage loans. Volumes will gradually move to Swedbank’s balance sheet.

15. Conservative provision ratio
15
Asset quality
* Russia and Ukraine reported as discontinued operations
SEKm
10 951
9 934
7 077
4 429 4 047 3 570 2 818 2 514 2 343
2 040
1 774
1 545
1 420 1 398
1 325
1 256 1 238 1 211
64% 65%
62%
57%
54% 53% 54%
60%
56%
0
5 000
10 000
15 000
20 000
Q212 Q312 Q412 Q113* Q213* Q313* Q413* Q114* Q214*
Individual provisions Portfolio provisions Provision ratio
Provision ratio, % Q2 14
Swedish Banking 62
LC&I 119
Baltic Banking 50
Group 56

16. 0.5
7.4
1.5
3.4
1.3
1.5
0.6
2.4
0.7
3.0
0.2
0.7
1.8
0 2 4 6 8 10
Cruise
Drilling & exploration
Oil service
Supply
Accommodation
Floating production
Chemical
Product
Crude oil
Gas (LNG/LPG)
Dry bulk
Container
RORO
Q2-14
Q1-14
Shipping and offshore
16
Credit portfolio – Large Corporates & Institutions
• Lending exposure to Shipping & Offshore sector of
SEK 26.0bn
- Portfolio duration 3.77 years (weighted on
commitments)
- Average fleet age 7 years
- Strong employment profiles
Shipping and Offshore Portfolio by currency,
SEKbn
Shipping and Offshore Portfolio by subsegment,
SEKbn
0 5 10 15 20 25
SEK
EUR
USD
NOK
JPY
Q2-14
Q1-14
16
5
4
23
26
25
26 25 26
0
10
20
30
Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
SEKbn
Offshore Tanker Other
Shipping and Offshore

17. 0
10
20
30
40
50
60
70
80
90
100
Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215
Covered bonds Senior unsecured
Lower funding needs
• LCR 123% (Swedish FSA definition FFFS 2012:6)
• NSFR 102% (Basel committee)
• Issued SEK 69bn of term-funding in H1 2014, of which SEK 32bn in Q2.
• FY 2014 funding plan of SEK 120bn
17
Liquidity and funding
Term funding issuance – completed and planned
SEKbn

18. 18
Long-term funding maturity profile
• Funding plan of SEK 120bn to meet next 12 months’ nominal SEK 101bn maturities
• All remaining government guaranteed debt (issued in 2009) matured in May 2014
Long-term funding maturity profile, by funding source
Liquidity and funding
SEKbn
0
50
100
150
200
2014 2015 2016 2017 2018 2019 2020-
Senior unsecured
debt
Covered bonds

19. Prefunded in excess of 12 months
19
Liquidity and funding
SEKbn
Days forward
1 As defined by the Swedish Bankers’ Association
0
50
100
150
200
250
300
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 365

20. Real estate prices – Sweden 12 months development
20
Swedish housing and mortgage market
Single-family homes1 Tenant-owner rights2 Combined3
12M Δ 12M Δ 12M Δ
Jul/13 4% 9% 6%
Aug/13 5% 11% 7%
Sep/13 5% 11% 7%
Oct/13 6% 11% 8%
Nov/13 4% 13% 7%
Dec/13 4% 13% 7%
Jan/14 7% 13% 9%
Feb/14 7% 13% 9%
Mar/14 7% 13% 9%
Apr/14 8% 12% 9%
May/14 8% 12% 9%
Jun/14 8% 11% 9%
Source: Valuegard www.valuegard.se (Based on data from Mäklarstatistik), 1 HOXHOUSESWE, 2 HOXFLATSWE, 3 HOXSWE

21. 0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Vilnius
Nr.of deals EUR/m2
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Tallinn
Nr.of deals EUR/m2
Baltic countries
Real estate prices
21
EUR/m2 /Nr of deals
EUR/m2 /Nr of deals
EUR/m2 /Nr of deals
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Riga
Nr.of deals EUR/m2