Swedbank's third quarter 2015 results

1. © Swedbank
Swedbank’s third quarter 2015 results
Michael Wolf (CEO), Göran Bronner (CFO), Anders Karlsson (CRO)

2. Successful customer migration – southern region
2
Swedish Banking
Ratios Q3 15 Q2 15
ROE, % 19.0 18.9
C/I ratio 0.43 0.44
• Customer migration completed
– 100 000 new customers
• Lower deposit margins
• Higher mortgage margins
• Mortgage loan volume growth
• Weaker income from asset
management
• Solid asset quality
Volumes, SEKbn Q3 15 Q2 15 ▲ QoQ
Loans 1 059 1 050 9
Deposits 431 428 3
SEKm Q3 15 Q2 15 ▲ QoQ
Net interest income 3 404 3 281 123
Net commission income 1 717 1 916 -199
Other income 452 471 -19
Total income 5 573 5 668 -95
Total expenses 2 412 2 496 -84
Profit before impairments 3 161 3 172 -11
Credit impairments 35 48 -13

3. Market leader
• Loan volume growth
• Solid asset quality
• Acquisition of retail portfolios -
around 127 000 new customers
3
Baltic Banking
Ratios Q3 15 Q2 15
ROE, % (excl. one-off tax in Q2) 16.2 16.6
C/I ratio 0.39 0.40
Volumes, SEKbn Q3 15 Q2 15 ▲ QoQ
Loans 129 126 3
Deposits 144 138 6
SEKm Q3 15 Q2 15 ▲ QoQ
Net interest income 900 865 35
Net commission income 511 524 -13
Other income 155 147 8
Total income 1 566 1 536 30
Total expenses 605 611 -6
Profit before impairments 961 925 36
Credit impairments -2 -49 47
Tax 132 1 064 -932
Net profit 825 -91 916

4. Weaker result
• Lower NGL
– Lower activity
– Widening credit spreads
• Stable NII
– Lower deposit margins
– Loan volume growth from Q2
• Solid asset quality
4
Large Corporates & Institutions
Ratios Q3 15 Q2 15
ROE, % (excl. one-off tax in Q2) 13.3 15.6
C/I ratio 0.44 0.43
Volumes, SEKbn Q3 15 Q2 15 ▲ QoQ
Loans 182 182 0
Deposits 103 106 -3
SEKm Q3 15 Q2 15 ▲ QoQ
Net interest income 865 862 3
Net commission income 509 491 18
Net gains and losses 315 576 -261
Other income 33 39 -6
Total income 1 722 1 968 -246
Total expenses 766 842 -76
Profit before impairments 956 1 126 -170
Credit impairments 97 7 90

5. Good cost control – increased investment needs
5
Group results
SEKm Q3 15 Q2 15 ▲QoQ
Net interest income 5 811 5 704 107
Net commission income 2 736 2 842 -106
Net gains and losses 4 82 -78
Other income 683 687 -4
Total income 9 234 9 315 -81
Total expenses 3 879 4 047 -168
Profit before impairments 5 355 5 268 87
Credit impairments 130 6 124
Other impairments 270 22 248
Tax 1 012 1 538 -526
Net profit 3 928 3 666 262
• Stable NII
− Mortgage volume growth
− Mixed margins
• Lower assets under management
• Lower NGL
− Lower activity
− Widening credit spreads
• Good cost development
• Strong asset quality
Ratios Q3 15 Q2 15
ROE, % 13.5 13.4
Cost/income ratio 0.42 0.43
CET1 capital ratio, % 23.0 22.4

6. Strong capitalisation – no excess capital
Capital
6
• CET1 capital ratio improved
− CET1 capital increase
− REA decrease
• SREP result in line with
expectations
• Continued regulatory uncertainty
CET1 capital ratio, %
* Swedbank’s estimate based on SFSA’s announced capital
requirements, including fully implemented buffers and Pillar 2
requirements

7. 92
94
96
98
100
102
104
106
2013 2014 Q3 2015
NSFR
0
10
20
30
40
50
60
70
80
Average
2014
Q115 Q215 Q315
Other
Senior unsecured debt
Covered bonds
Increased long-term funding activity
• Funding per Q3 2015, SEK 188bn
• NSFR at 104 per cent
7
Liquidity and funding
Net Stable Funding Ratio
Quarterly long-term funding issuance
SEKbnPercent

8. Strong asset quality
8
Asset quality
Credit impairments, SEKm Q3 15 Q2 15 ▲QoQ
Swedish Banking 35 48 -13
Baltic Banking -2 -49 47
Large Corporates &
Institutions
97 7 90
Swedbank Group 130 6 124
Ratios Q3 15 Q2 15
Credit impairment ratio, % 0.04 0.00
Share of impaired loans, gross
%
0.35 0.36
Total provision ratio for impaired
loans, %
58 55
Credit impairment ratio%
-0.40
-0.30
-0.20
-0.10
0.00
0.10
0.20
Q310 Q111 Q311 Q112 Q312 Q113 Q313 Q114 Q313 Q115 Q315

9. Q&A
Michael Wolf (CEO), Göran Bronner (CFO), Anders Karlsson (CRO)

10. Appendix
10

11. -0.40
-0.30
-0.20
-0.10
0.00
0.10
0.20
Q310 Q111 Q311 Q112 Q312 Q113 Q313 Q114 Q313 Q115 Q315
0
5
10
15
20
25
0
20
40
60
80
100
120
140
160
2011 2012 2013 2014 Q3 2015
NSFR LCR CET1 capital ratio, Basel 3 (RHS)
Swedbank – a low-risk bank with strong capital base
11
• Low risk – a Board of Directors’ strategic priority – ensures access to funding markets and low funding costs
• Retail profile and four home markets a key feature
– 86% of total loans originated in Sweden - Swedish mortgages account for 62% of total loans
– 90% of total loans are collateralised (76% real estate and 14% other collateral)
• Strong capital position – Board of Directors’ decision to maintain a buffer above prevailing SFSA capital
requirements to have operational flexibility – current buffer 340bp
• Conservative funding and liquidity position – survival horizon longer than 12 months assuming closed
funding markets, NSFR 104% and LCR 135%
• Baltic operations self-funded – Loan-to-Deposit ratio < 100%
%
This is Swedbank
Liquidity & capital %
Source: Swedbank 30 Sep 2015
Credit impairment ratio%

12. 0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Q3 10 Q3 11 Q3 12 Q3 13 Q3 13 Q3 15
Swedbank – strong and stable earnings capacity
12
• Four home markets – Sweden, Estonia, Latvia and Lithuania
– Strong and stable economies
– Market leading position in all home markets
– Largest customer base in all home markets
• Retail profile ensures stable earnings with low volatility
• High cost efficiency – a strategic priority – ensures good profitability
• Stable earnings is first line of defence supporting low risk profile and strong capital position
SEKm
This is Swedbank
Source: Swedbank 30 Sep 2015
Profit before impairment

13. 0.30
0.35
0.40
0.45
0.50
0.55
0.60
2010 2011 2012 2013 2014 YTD 2015
12 000
14 000
16 000
18 000
20 000
2010 2011 2012 2013 2014 Ambition
2016
Acquistion of Sparbanken Öresund
Swedbank – market leading cost efficiency
13
• Best in-class cost efficiency – an executive management strategic priority
• Strong dedication from executive management on cost and change management
− Integrated in corporate culture
− Focus on straight-through-processing
− Evolving household banking model – digitalisation trend
• Retail profile a key feature
− Four home markets – Sweden, Estonia, Latvia and Lithuania – reducing complexity
− Largest private and SME customer base
− High degree of digitalisation in home markets
SEKm Total expenses
This is Swedbank
Source: Swedbank 30 Sep 2015
C/I ratio

14. 4.5
0.2
-3.1
0.0
-3.3
-1.9
1.0
406.8
404.2
395
397
399
401
403
405
407
409
411
413
415
Q2 2015 Exposure
change
Rating
migration
(PD)
LGD
changes
Other credit
risk
CVA risk Market risk Operational
risk
Q3 2015
Increase Decrease
Reduced REA
Capital
14
• REA net decrease of SEK 2.6bn
− Lower market risk
− FX fluctuations impact negatively
Risk exposure amount
SEKbn

15. 0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
Loans net, SEKm
Shipping and Offshore
• Lending totalled SEK 28.3bn
– Market activity slowed down compared
to Q1 15 and Q4 14
– Decreased origination
• Individual client action plans in place
• Clients now adapting to the lower oil
price by cutting costs, postponing
orders and setting up new financial
structures
15
Asset quality
Shipping and Offshore
Negatively impacted by
lower oil prices
Source: Swedbank 30 Sep 2015
SEKm

16. 0
50
100
150
200
250
300
350
400
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 365
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 Q315 Q415 Q116
Covered bonds Senior unsecured debt
Conservative funding position
• LCR 135% (Swedish FSA definition FFFS 2012:6)
• NSFR 104% (Basel committee)
• Issued SEK 188bn of term funding YTD 2015
• Increased funding need to support loan growth
16
Liquidity and funding
Term funding issuance – completed and planned
SEKbn
Source: Swedbank 30 Sep 2015
SEKbn
Days forward
Prefunded for more than 12 months
Survival horizon
nominal amounts

17. 0
50
100
150
200
2015 2016 2017 2018 2019 2020 2021-
Other
CHF
USD
EUR
SEK
0
50
100
150
200
2015 2016 2017 2018 2019 2020 2021-
Senior unsecured
debt
Covered bonds
17
Long-term funding maturity profile
Long-term funding maturity profile, by funding source
Source: Swedbank 30 Sep 2015
Liquidity and funding
SEKbn SEKbn
Long-term funding maturity profile, by currency
Benchmark transactions YTD 2015
● USD 750m, Perp. NC5 (2020), AT1, 5.50% - equity conversion
● USD 1bn 144a Senior, 5Y (2020), T+77bp (+ USD 400m 3Y (2018) T+65bp)
● EUR 1bn CB, 7Y (2022), Fixed MS-5bp
● GBP 500m CB, 3Y (2018 FRN, 3m £L+20bp
● GBP 300m Senior, 4Y (2019), Fixed G+80bp
● SEK 3bn, Senior 5Y (2020), Fixed/FRN, 3m Stibor + 50bp
● USD 1bn, RegS. CB 5Y (2020), Fixed, 3m $L + 37bp
● EUR 750m Senior 7Y (2022), Fixed, MS+45bp

18. 100
120
140
160
180
200
220
05 06 07 08 09 10 11 12 13 14 15
Single-family homes
Real estate prices – Sweden 12 months development
18
Swedish housing and mortgage market
Single-family homes1 Tenant-owner rights2 Combined3
12M Δ 12M Δ 12M Δ
Oct 14 8% 15% 11%
Nov 14 13% 15% 14%
Dec 14 15% 15% 15%
Jan 15 11% 15% 12%
Feb 15 12% 17% 14%
Mar 15 13% 19% 15%
Apr 15 13% 20% 16%
May 15 13% 18% 15%
Jun 15 12% 19% 14%
Jul 15 14% 18% 15%
Aug 15 13% 19% 15%
Sep 15 14% 20% 16%
Source: Valuegard www.valuegard.se (Based on data from Mäklarstatistik), 1 HOXHOUSESWE, 2 HOXFLATSWE, 3 HOXSWE
House price index, Sweden3
2005=100

19. 0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Vilnius
No. of transactions EUR/m2
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Riga
No. of transactions EUR/m2
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Tallinn
No. of transactions EUR/m2
Baltic countries
Real estate prices
19
EUR/m2 /No. of transactions EUR/m2 /No. of transactions
EUR/m2 /No. of transactions
Source: Swedbank 30 Jun 2015