Swedbank Q2 2006

2

Strategic Developments

Jan Lidén,President and CEO

3

Q2 business highlights

• Swedish Banking - Continued high business activity and less margin pressure

– Steady growth in corporate and household lending– Stabilizing mortgage margins– Improving deposit margins

• Baltic Banking - Continued rapid growth with stable margins– Stable growth in lending volumes – Deposit margins up in Estonia and Lithuania, down in Latvia– Lending margins down in Estonia and Lithuania and up in Latvia

• Swedbank Markets - Solid performance across all business areas in both Sweden and Norway, in particular …

– Equity and FX/Fixed Income trading performed well – Strong earnings in Project & Corporate Finance in both Sweden and

Norway– Strong growth of stock market volumes in Norway

• One-off items during Q2– Russian VAT provisions SEK -114 M – SpareBank 1 Gruppen shares increased value SEK 342 M

4

June 30 Dec 31 June 30 Change, Change,Lending 2006 2005 2005 YTD, % Y/Y, %

Swedbank Group 852 796 753 7 13Of whichSpintab household lending 357 340 322 5 11Corporate lending 353 331 322 7 10Baltic Banking 109 89 69 24 60

SavingsSwedbank Group 763 729 681 5 12Of which:Household deposits 204 182 173 12 18Funds under management 371 365 329 2 13Equity linked retail bonds 20 13 11 61 77

Volume GrowthSEK bn

*** **

*Excluding Baltic Banking

**Growth rate calculated in local currency, EEK

5Margins of loans and deposits

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

Estonia Latvia Lithuania Sweden

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Q2 05 Q3-05 Q4-05 Q1-06 Q2-06

Estonia Latvia Lithuania Sweden

Lending Deposits

6Swedish Banking

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

Income Expenses

SEK M

***

*Excluding EnterCard SEK 810 M **Excluding KIAB SEK 1,421 M

C/I 0.51

7Swedish Banking Net interest income

2,000

2,200

2,400

2,600

2,800

3,000

3,200

3,400

Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

SEK M

4%

8Baltic Banking

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

Income Expenses

SEK M

C/I 0.46*

* Excluding provision for Russian VAT SEK 114 M in Q2 2006

9Swedbank Markets

0

100

200

300

400

500

600

Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

Operating profit Profit for the period attributable to the shareholders

SEK M

Change in profit for the period attributableto the shareholders:Q1-Q2 51%Y05-Y06 73%

10

Net interest income

Net commissions

Net gains and losses on financial

items at fair value

0%

20%

40%

60%

80%

100%

Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

Income increasingly diversified

Swedish Banking

Baltic Banking

Swedbank Markets

Asset Management

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

* Excluding larger capital gains: EnterCard SEK 810 M; KIAB SEK 1,421 M

Income by Strategic Business Area* Income by category

11Group profit trend

SEK M

Profit for the period attributable to shareholders, excluding larger capital gains:* Excluding FIH SEK 1,200 M** Excluding EnterCard SEK 810 M*** Excluding KIAB SEK 1,421 M

*

*****

0

500

1,000

1,500

2,000

2,500

3,000

Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

12

6.5

8.2

7.27.17.16.9 6.5 6.5

0

1

2

3

4

5

6

7

8

9

2000 2001 2002 2003 2004 2005 Q1-06 Q2-06

Group financial targets

21.320.1

17.915.8

13.4

11.0

20,2

16.6

24.6

20.5

15.9

11.2

0

5

10

15

20

25

30

2002 2003 2004 2005 Q1-06 Q2-06**Nordic peers* Swedbank

Average ROE of SEB, Nordea and SHB, as DnB NOR and Danske Bank have not reported their second quarter results yet

Return on equity compared to Nordic peers Primary capital ratio

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Q3-01

Q4-01

Q1-02

Q2-02

Q3-02

Q4-02

Q1-03

Q2-03

Q3-03

Q4-03

Q1-04

Q2-04

Q3-04

Q4-04

Q1-05

Q2-05

Q3-05

Q4-05

Q1-06

Q2-06

C/I Ratio

• Return on equity

• Cost / Income ratio

• Primary capital ratio

Group Financial Objectives

*

**

Peer group consists of SEB, Nordea, SHB, DnB NOR and Danske Bank

% %

13

Group Financial Overview

Mikael Inglander,CFO and Head of Group Staffs

14

SEK M Q2 2006 Q1 2006 Change, %Net interest income 3,783 3,777 0Net commissions 2,353 2,098 12Net gains and losses on financialitems at fair value 1,032 260 Total income 7,578 6,543 16Expenses – 3,902 – 3,650 7*Loan losses 116 – 50 Operating profit 3,792 2,843 33Profit for the period attributable to shareholders 2,854 2,304 24Return on equity % 20.2 16.6Earnings per share SEK 5.40 4.41 Cost/Income ratio 0.51 0.56

Result highlights

*Adjusted for Russian VAT in both quarters, the increase was 5 percent or SEK 167 M

15

SEK M Swedish Baltic Other GroupBanking Banking

Lending volumes 142 152 2 296

Deposit volumes 18 8 3 29

Lending margins – 57 – 70 – 5 –132

Deposit margins 55 7 0 62

Other – 60 0 – 188 –248

Total 98 97 – 188 7

of which SEK – 181 M is change in elimination

Change in net interest incomeQ2 compared with Q1

16

Change in Eliminations

0

-27

41

0 -2

-250

-200

-150

-100

-50

0

50

100

150

200

250

Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

Net interest incomeNet gains and losses on financial items at fair valueNet effect

SEK MSEK – 181 M change in

elimination Q2 /Q1

17

Change ChangeSEK M Q2 2006 Q1 2006 QoQ % Q2 2005 YoY %Payment 639 602 6 677 – 6Lending 189 129 47 83Brokerage 294 301 – 2 133Asset management 937 914 3 748 25Insurance 122 118 3 102 20Other 172 34 91

Total 2,353 2,098 12 1,834 28

Primarily corporate advisory fees in First Securities

Net commissions

18

-200

0

200

400

600

800

1,000

1,200

Q1 -05 Q2 -05 Q3-05 Q4-05 Q1-06 Q2-06

Net gains and losses on financial itemsat fair value

Swedbank Markets

Baltic Banking

Strategic shareholdingEliminationOther

SEK M

19Value of strategic shareholdings

Second quarter including:

Primary Capital Certificates (Grunnfondbevis)

• SpareBank1 Midt-Norge SEK - 27.7 M• SpareBank 1 SR-bank SEK - 71.0 M• SpareBank 1 Nord-Norge SEK - 6.8 M

SpareBank 1 Gruppen• Agreement to sell remaining shares • Increased valuation in Q2 SEK 342 M• To be effectuated in Q3

Dividends

-150

-100

-50

0

50

100

150

200

250

300

350

400

Q2 05 Q3 05 Q4 05 Q2 06

Q1 06

M SEK

20Expenses

120

68

84

3,902

3,650

1

-21

3 500

3 550

3 600

3 650

3 700

3 750

3 800

3 850

3 900

3 950

4 000

Q1 totalexpenses

Decreasedstaff cost

Increased prof itbased staff

costs

Increased othergeneral and

administrativeexpenses

IncreasedRussian VAT

provision

Increaseddepreciation

andamortization

Q2 totalexpenses

SEK 167 M5 % QoQ

SEK M

21Loan losses, Group

-150-100

-500

50100150200250300350400450500

Q1-02

Q2-02

Q3-02

Q4-02

Q1-03

Q2-03

Q3-03

Q4-03

Q1-04

Q2-04

Q3-04

Q4-04

Q1-05

Q2-05

Q3-05

Q4-05

Q1-06

Q2-06

Loan losses,SEK M

-0.10

-0.05

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Loan loss level, Percent

Loan losses Loan loss level

22

Total income 4,277 1,532 1,113 466Total expenses – 2,189 – 816 – 558 – 175Profit before loan losses 2,088 716 555 291 Loan losses 191 – 79 0Operating profit 2,279 637 555 291

Profit for the periodattributable to shareholders 1,637 560 334 210C/I ratio 0.51 0.53* 0.50 0.38Return on equity, % 23.2 24.2* 35.4 50.2

Profit per business areaQ2, 2006

AssetSwedish Baltic Swedbank Mgmt. &

SEK M Banking Banking Markets Insurance

*Adjusted for provisions for Russian VAT, Return on equity for Baltic Banking was 28.5% and cost/income ratio was 0.46

23

Q2 Highlights

• Profit for the period attributable to the shareholders increased by SEK 516 M or 23 percent to SEK 2,786 (2,270)

• Earnings per share, SEK increased by 22 percent to 5.40 (4.41)

• Return on equity increased to 20.2 percent (16.6)

• Cost / income ratio decreased to 0.51 (0.56)

• Primary capital ratio remained at 6.5

• Swedish Banking net interest income increased for the first time in 7 quarters

• Baltic Banking continued to grow (revenues increased by 13 percent) with maintained operating cost / income ratio at 0.46 (adjusted for provisions for Russian VAT)

• Swedbank Markets delivered its best quarterly result ever with profit for the period of SEK 334 M (221)

Figures in brackets refer to Q1 2006