Swedbank presents the year-end results for 2011.

1. Swedbank’s year-end 2011 results
Michael Wolf, CEO
Göran Bronner, CFO
Håkan Berg, CRO

2. Delivered according to last years prospects
• Net profit of SEK 11.7bn for 2011
• Core Tier 1 capital ratio of 15.7 per cent
• Return on equity of 12.2 per cent for 2011
• Proposed dividend of SEK 5.30 per share
2

3. All stakeholders affected by new environment
• Shareholders
– Two share issues totalling SEK 27bn
– Buy-back programme halted
– Goodwill write-downs
– Harder to reach ROE target
• Staff
– Number of employees down by about 6 000 since end of 2007
– Overhaul of remuneration systems will reduce variable pay
• Customers
– Increased cost of money
3

4. Group results
Continued stable development
SEKm
FY FY
Q3 11 Q4 11 • Goodwill write-down in Latvia
2010 2011
Net interest income 16 329 19 118 4 857 4 994
SEK 1913m
Net commission income 9 525 8 963 2 292 2 126 • SEK 330m restructuring
Net gains and losses 2 400 1 584 259 559 charge
Other income 2 790 3 850 782 839
• Increased capital markets
Total income 31 044 33 515 8 190 8 518 income and positive valuation
Total expenses 17 642 17 869 4 331 4 809 effects
Profit before
impairments
13 402 15 646 3 859 3 709
• Cost reduction 2012: SEK 1bn
CT1 ratio, %* 13.9 15.7
• Continued focus on capital
efficiency
Return on equity, % 8.1 12.2
* Basel 2
4

5. Liquidity and funding
Significantly lower issuance volumes going forward
• SEK 44bn of long-term debt issued in Q4 (incl. SEK 7bn of senior unsecured)
• Over-collateralisation in covered-bond pool increased to 29% (25%)
• Continued strong liquidity reserves
SEKbn
Term funding issuance
80
Average term funding issuance
Maturities 2012
60 Average term funding need
40
20
0
Q3 2010
Q4 2010
Q3 2012
Q2 2013
Q3 2013
Q2 2014
Q3 2014
Q1 2010
Q2 2010
Q1 2012
Q2 2012
Q4 2012
Q1 2013
Q4 2013
Q1 2014
Q4 2014
Q3 2011
Q1 2011
Q2 2011
Q4 2011
5

6. Swedbank regulatory compliant – transition completed
• Transformation of:
– Maturity structure liabilities
– Liquidity reserve
– Capital buffer
• Significantly reduced risk in balance sheet
• Cost for regulatory compliance taken
Ratio Swedbank Expected requirements
CT1-ratio, Basel 3 14.7%  10% (2013) 12% (2015)
Liquidity coverage ratio 139%  100% (2015) EUR/USD
Net stable funding ratio 94%  100% (2018)
6

7. Capital management
• Current capitalisation targets withdrawn
• Dividend policy of 50%
• Other capital repatriation on hold
• Proposal to issue convertible debt instruments
• Return target of 15%
7

8. Risk highlights
Net recoveries of SEK 174m in Q4
Credit impairments, SEKm • Credit impairments in Sweden
still low
– Known problems
– Limited inflow of watch list
and problem loans
-324
-174
• Collective provisions mortgage
loans in Latvia and Ukraine
-441
-483
-972
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Retail LC&I Baltic Banking Russia & Ukraine Other
8

9. Risk highlights
Focus on risk-weighted assets
RWA development • Significant achievements 2011
SEKbn
550
– Full organisational involvement
– Credit volumes
4.4
540 – Customer quality
-22.3 – Market risks
530
• Focus areas 2012
520 – Review of small and mid-sized
corporates Sweden
-21.2
510 541.3 – Retail mortgage risk-weights
500
-7.4
-2.6
490
492.3
Increase Decrease
480
2010 Q4 Volume Migrations Other Market Operational 2011 Q4
(EAD) credit risk risk
9

10. Risk highlights
Many factors impacting outlook
• Challenging economic situation in Europe
• Real estate Sweden: Risk picture is going down
• Positive outlook in Baltic countries
10

11. Priorities going forward
Increased focus on operational efficiency
• Improve customer satisfaction
• Increase decision-making close to our customers
• Improve quality and cost effectiveness
11

12. Q&A

13. Appendix
13

14. Mortgage loans gross margin (3-months)
Swedbanks price towards
6.0
customer (3 months)
Swedbank's funding cost
5.0 Stibor 3 months
Swedish Riksbanks reporate
4.0
Should cover:
Liquidy costs
Percent
3.0 Cost of adminis-
tration
Credit Impairments
2.0 Profit
1.0
0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11

15. Development of ROE and net interest margin
ROE % NIM %
30 1.6
25 1.4
20
1.2
15
1.0
10
0.8
5
0.6
0
2 004 2 005 2 006 2 007 2 008 2 009 2 010 2 011
0.4
-5
-10 0.2
-15 ROE (left hand scale) NIM (right hand scale) 0.0
15

16. Liquidity and funding
Funding development Q4
• SEK 44bn of long-term debt issued in Q4 (mainly domestic covered bonds
and senior unsecured private placements)
• Demand for Swedbank short-term paper continued
• USD funding need covered for more than 12 months
SEKm Long-term debt issued in Q4 SEKm Outstanding short-term debt
35 000 60 000
30 000 50 000
25 000
40 000
20 000
Q4 11 Q3 11
30 000
Q4 11
15 000
20 000
10 000
10 000
5 000
0 0
Domestic CB Euro CB Other CB Senior Domestic ECP/CD USCP Yankee Finnish French
unsecured CP CD CD CD
16

17. Liquidity and funding
Funding development FY 2011
• SEK 254bn of long-term debt issued and SEK 180bn of maturities
at beginning of 2011
• Good demand for Swedbank short-term paper
SEKm Issued long-term debt SEKm Outstanding short-term debt
160 000 50 000
140 000
40 000
120 000
100 000 30 000
2010
80 000 2011
2011
20 000
60 000
40 000
10 000
20 000
0 0
Domestic Euro CB USD CB Other CB Senior Domestic ECP/CD USCP Yankee Finnish French
CB (144A) unsecured CP CD CD CD
17

18. Liquidity and funding
Long-term funding maturity profile
• Maturities for 2012 amount to nominal SEK 86bn
Long-term funding maturity profile
SEKbn
200 Government
guaranteed debt
Senior unsecured
150 debt
Covered bonds
100
50
0
2012 2013 2014 2015 2016 2017-
18

19. Liquidity and funding
Remaining government guaranteed debt
• Exited the programme on 30 April 2010
• No issuance under the programme since summer 2009
• SEK 37bn of government guaranteed debt matures in April 2012
SEKbn Maturity profile as of Q4 2011
40
USD
SEK
20 EUR
CHF
HKD
JPY
0
2012 2013 2014
19

20. Swedbank’s cover pool
House price sensitivity of the cover pool
House price sensitivity of the cover pool
Over-
collateralisation
35%
30%
25% OC
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
House price drop
20

21. Liquidity and funding
Liquidity reserve SEKm
According to the template defined by the Swedish Bankers' Association1
Cash and holdings in central banks 163 215
Deposits in other banks available overnight
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks 27 880
Securities issued or guaranteed by municipalities or Public sector entities
Covered bonds 54 132
- Issued by other institutions 54 132
- Own issued
Securities issued by non-financial corporates
Securities issued by financial corporates (excl. covered bonds) 1 715
Other
Total 246 942
Additional liquid assets, Group 2 62 082
Other, over-collateralisation in the cover pool 149 500
Total 458 524
1 96% of the securities in the liquidity reserve as of Q4 2011 are rated AAA
2 80% of the additional liquid assets fulfill the Liquidity Reserve definition by the Swedish Bankers’ Association except
from that they are held outside Group Treasury.
21

22. Asset quality
Impaired loans decreasing
• Excluding FX effect down SEK 3.4bn in Q4
• Corporate portfolio quality improvements
SEKm
45 000 42 719 38 631
40 132 40 328 2 391
40 000 -4 088 34 778
35 770 4 362 196
-3 853 31 747
35 000 Share of
6 113 -3 031 30 669
29 657 28 743 impaired
-1 078 24 805
30 000 -1 926 loans, gross
-3 938
25 000
5 366 Ukraine 61%
20 000
1 281 Russia 20%
15 000 4 792 Lithuania 13%
29 657
10 000 7 696 Latvia 21%
5 000 Estonia 6.6%
3 620
319 LCI 0.13%
1 731 Retail 0.19%
0
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 11
22

23. Asset quality
Loans past due 60 days – performance Q/Q
EURm
30
10
-10
-30
-50
-70
-90
-110
-130
-150
Q1 11
Q2 11
Q3 11
Q4 11
Q1 11
Q2 11
Q3 11
Q4 11
Q1 11
Q2 11
Q3 11
Q4 11
Q1 11
Q2 11
Q3 11
Q4 11
Q1 11
Q2 11
Q3 11
Q4 11
Q4 10
Q4 10
Q4 10
Q4 10
Q4 10
Estonia Latvia Lithuania Ukraine Russia
23

24. Asset quality
Provisions – well provided for
• Individual provisioning rates maintained
• Additional portfolio provisions in Latvian and Ukrainian mortgages
• Positive rating migrations
SEKm
30 000 Provision ratios, % Q4 11
Retail 90
62.7%
25 000 LC&I 135
61.0%
Baltic Banking 55
3 297 60.0% 59.8% 61.5%
20 000 Russia 46
2 769
18 494 2 436 Ukraine 72
2 409
15 000 16 598 15 952
14 782 2 435 Group 62
12 821
10 000 8 206 9 255
6 306
5 204
5 000 4 373
0
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Individual provisions Portf olio provisions Write-of f s, gross, cum f rom 2010 Provision ratio
24

25. Asset quality
Repossessed assets
SEKm
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Real Estate Residential Real Estate Commercial Passenger & Commercial Transport Shares Other
25

26. Asset quality
Credit impairments by category
SEKm
1 000
500
0
- 500
- 324
- 441
-1 000
- 174
- 972
- 483
-1 500
Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Portfolio provisions Individual provisions Recoveries Write-offs net
26

27. Credit portfolio – Large Corporates & Institutions
Shipping and offshore
• Lending exposure to the shipping and Shipping and offshore portfolio
offshore sector is SEK 22.7bn plus Tanker
26%
unutilised commitments of SEK 6.1bn
– Portfolio duration 4-5y
– Average fleet age 7y Offshore
58%
– Other represents dry bulk (4%), Other
16%
ro/ro/car (7%), container (5%)
– Strong employment profiles
Note: Portfolio breakdown based on total exposure (lending + unutilised commitments).
27

28. Swedish housing and mortgage market
Real estate prices – Sweden 2011
Single-family homes1 Tenant owner rights2 Combined3
12M Δ 12M Δ 12M Δ
Jan 0% 8% 2%
Feb 2% 7% 3%
Mar 2% 6% 3%
Apr 1% 6% 3%
May 0% 6% 2%
Jun 0% 5% 2%
Jul 0% 6% 2%
Aug -2% 3% -1%
Sep -3% 1% -2%
Oct -4% -1% -3%
Nov -5% -4% -5%
Dec -7% -4% -6%
Source: Valuegard www.valuegard.se (Based on data from Mäklarstatistik), 1 HOXHOUSESWE, 2 HOXFLATSWE, 3 HOXSWE
28

29. Real estate prices – Baltic countries
Tallinn Riga
1 800 2 000
1 616 1 762
1 600 1 800
1 400 1 600
1 200 1 400
976 1 200
1 000
1 000
800
800 590
600 600
400 400
200 200
0 0
Jan-05
Jun-11
Dec-07
Jul-08
Nov-10
Aug-05
Sep-09
Jan-05
Jan-06
Jan-08
Jan-09
Jan-10
Jan-07
Jan-11
Sep-05
Sep-06
Sep-07
Sep-09
Sep-10
Sep-11
Sep-08
Mar-06
Oct-06
May-07
Feb-09
Apr-10
May-06
May-07
May-08
May-11
May-05
May-09
May-10
Nr.of deals EUR/m2 Nr.of deals EUR/m2
Source: Swedbank, Estonian Land Board Source: Swedbank
Vilnius
2 000
1 800 1 731
1 600
1 400 1 103
1 200
1 000
800
600
400
200
0
Jan-05
Jun-11
Dec-07
Jul-08
Nov-10
Aug-05
Sep-09
Mar-06
Oct-06
May-07
Feb-09
Apr-10
Nr.of deals EUR/m2
Source: Swedbank, State Enterprise Centre of Registers
29

30. Swedish housing market
New private lending in Sweden
• Internal LTV limit of 75% having a clear impact on average LTV levels
of new origination
Weighted average LTV on new lending
78
76
74
72
70
68
66
64
62
2009 2010 2011
1
Tenant owner rights Single-family houses Total
1 Total of Tenant owner rights and Single-family houses
30