Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.

1. H d l b k N di L C S iHandelsbanken Nordic Large Cap Seminar
14 September 2010
Michael Wolf, CEO

2. Progress continued throughout Q2g g
• Net profit of SEK 1.6bn
• Improved credit quality
• Term funding YTD higher than full year maturitiesTerm funding YTD higher than full year maturities
• Strengthened capitalisation to 12.7 per cent Core Tier 1
l t b b k Ti 2 b dapproval to buy back Tier 2 bonds
2

3. Business achievements – highlights in Q2g g
• Higher mortgage new sales market shares in Sweden
• Increased corporate activity
• Continued strong deposit trendContinued strong deposit trend
• Retail’s tailored service concept well received
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4. Result by business area
Q2 update SEKm Profit before impairments
Retail
Solid credit quality, higher customer activity 1 000
2 000
SEKm
Q1 10
Q2 10
Large Corporates & Institutions
Good credit quality, repricing continues, slower
trading -1 000
0
Baltic Banking
Improving asset quality, stabilised NII, Estonia
back to profit
-2 000
Retail Large
Corporates &
Institutions
Baltic
Banking
Russia &
Ukraine
Asset
Management
Ektornet
back to profit
Russia & Ukraine
Stabilising credit quality, continued restructuring
i R i
Institutions
2 000
SEKm
Operating result
Q1 10
in Russia
Asset Management
Stable earnings
0
1 000
Q2 10
g
Ektornet
Repossessed properties valued at SEK 1 010m,
intake slower than the plan
-2 000
-1 000
Retail Large Baltic Russia & Asset Ektornet
4
intake slower than the plan Retail Large
Corporates &
Institutions
Baltic
Banking
Russia &
Ukraine
Asset
Management
Ektornet

5. Pressure decreasing
Net interest income
g
5 000
SEKm
4 023
3 799
62 89
4 000
4 500
Retail LCI Baltic Banking Russia
& Ukraine
Group Treasury
and Other
-34 41
62 -89
-204
3 000
3 500
2 500
3 000
1 500
2 000
500
1 000
NII Q1 10
5
0
NII Q1 10 NII Q2 10

6. Commissions back to pre-crisis levels
Net commission income
p
• Positive trend from Q1 2009
• Market leader in cards and payments
• Growth driven by Asset Management
SEK
Net commission income*
2 500
3 000
SEKm
1 500
2 000
0
500
1 000
0
Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
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* Excl non-recurring items

7. Term funding ahead of plan
Liquidity & Capital management
g p
• YTD, SEK 150bn in term funding of
which around SEK 50bn during the
d t 456Total long-
Outstanding wholesale funding
(nom SEKbn )
second quarter
• SEK 60bn in remaining term funding
maturities to roll or replace in 2010
397
459
173
456
Total long-
Total long-
term, non-
guaranteed
maturities to roll or replace in 2010
• YTD around SEK 95bn of central bank
repos and guaranteed funding has been
180
108
174
89
Central bank
term,
guaranteed*
redeemed
• Average maturity of wholesale funding
further extended to 25 months
116
87
108
112Total short-
term, non-
repos
further extended to 25 months
(38 months for covered bonds)
61
97
28
0Total short-
term,
guaranteed***
guaranteed**
Q2 2010
* Issued with more than 12 months maturity, government fee of 83bp
** Including interbank deposits
*** Issued with less than 12 months maturity government fee of 50bp
61guaranteed*** Q1 2010
Q4 2009
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*** Issued with less than 12 months maturity, government fee of 50bp

8. Q2 development
Asset quality
p
• No impact of European sovereign debt crises
• Further stabilisation/improvement in the Baltic countries
• Continued improved risk profiles on both the assetContinued improved risk profiles on both the asset
and liability side
S db k’ ili tl i d• Swedbank’s resilience vastly improved
– ICAAP
I t l t t t– Internal stress tests
– Stress test of the Committee of European Banking Supervisors
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9. Asset quality
Credit impairments significantly reduced
• Sweden very low levels
S ll i i R i d
p g y
8 000
SEKm
• Small recoveries in Russia and
Ukraine
• Baltic countries
6 672
6 121
6 000
7 000
• Baltic countries
– Few new problems
– Property prices stabilising/increasing
5 003
4 000
5 000
– Insolvency and debt restructuring laws
– Positive trend likely to continue 2 210
2 000
3 000
963
0
1 000
2 000
-1 000
0
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
9
Retail LCI Baltic Banking Russia & Ukraine Other

10. Significant progress made – still work to be done
5Y CDS spreads
g p g
400
300
350
200
250
150
50
100
0
30/12/2005 30/06/2006 31/12/2006 30/06/2007 31/12/2007 30/06/2008 31/12/2008 30/06/2009 31/12/2009 30/06/2010
Swedbank SEB Handelsbanken Nordea Danske Bank DnB NOR
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Source: Datastream
Swedbank SEB Handelsbanken Nordea Danske Bank DnB NOR

11. Will lending margin pressure decrease?g g p
• Swedbank has re-priced a larger part of liabilities compared to
peerspeers
Source: SEB Enskilda Equity Research
Nordic banks long term funding broken down by time of issuance (based on ~3,000 bonds)
Portion of pre-, post and mid-crisis funding matters
 The two extremes:
 Swedbank has only 30%
pre-crisis funding and
50% mid crisis funding
80%
100%
120%
 Handelsbanken has 60%
pre-crisis funding and ony
around 20% mid-crisis
funding
0%
20%
40%
60%
0%
Sw edbank DnB NOR Nordea SEB Danske BankHandelsbanken
Pre-crisis Mid-crisis Post-crisis
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EQUITY RESEARCH 10

12. Basel 3 impact on Swedbank post July amendments*p p y
• NSFR is more or less in-line with proposed future minimum requirements,
and LCR is well ahead of minimum requirementsand LCR is well ahead of minimum requirements
• Core Tier 1 capital expected to decrease less than 4%, and RWA expected
to increase less than 2% compared with Basel 2to increase less than 2% compared with Basel 2
• Swedbank has a leverage ratio with a substantial margin to the proposed
minimum level of 3%minimum level of 3%
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*Preliminary calculations

13. Summaryy
• NII pressure decreasing
• Improved risk profiles on both the asset and liability side
• Term funding ahead of planTerm funding ahead of plan
• Resilience vastly improved
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15. New insolvency law in Latviay
Legal protection proceedings Insolvency proceedings
of legal entities
Insolvency proceedings
of private persons
NOVELTIESNOVELTIES
• LPP plan = business plan
• Diminished possibility to use LPP in bad
faith, to delay time
• Debtor should be able to make factually
all payments under agreements
• Debtor’s property should be
enforced in 6 months
• Simplified procedure to cancel
appointment of administrator, also
with participation of secured
• Debtor’s property should be enforced in 6 months
• Simplified procedure to cancel appointment of administrator,
also with participation of secured creditors
• Possibility to restructure obligations of our clients by reaching
an agreement that the client will make concrete payments to theall payments under agreements
concluded with bank
• Additional requirement to quality of the
LPP plan – money flow, substantiation of
incomes etc.
• ‘Easier’ to initiate LPP
with participation of secured
creditors
• Administrator by agreement with
bank is entitled to sell property
without auction, also the company
as a whole
an agreement that the client will make concrete payments to the
bank. Other creditors will not be entitled to ask enforcement of
this pledge
• Possibility to check agreements concluded by debtors 3 years
before proclamation of insolvency
• Easier to initiate LPP as a whole
SWEDBANK’S VIEWSWEDBANK’S VIEW
Positive
Improvement of speed and efficiency of
proceedings
Positive
Improvement of speed and
efficiency of proceedings
Negative
Efficiency of proceedings depends on the court practice.
Amendments which are crucial for Swedbank:proceedings efficiency of proceedings Amendments, which are crucial for Swedbank:
– If total liabilities exceed LVL 100th (EUR 142th), insolvency
procedure lasts 3.5 years
– If total liabilities do not exceed LVL 100th (EUR 142th),
insolvency procedure lasts 2 years. Client has to repay the
d t f th l th t h i d ft th l funsecured part of the loan that has remained after the sale of
collateral covering 30% of his/her official income, but not less
than LVL 60 (EUR 85) per month (i.e. 1/3 of min salary)
Neutral (in total)
Th l id iti lti t th i ti l ti f i l di b t it ffi i ill d d h i fThe new law provides many positive novelties to the existing regulation of insolvency proceedings, but its efficiency will depend on mechanism of
implementation. In total the law changes are not expected to change the trend in credit impairments.
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