Year-end report 20099 February 2010Michael Wolf, CEOErkki Raasuke, CFOGöran Bronner, CRO

2

Progress made in 2009

• Reduced CEE exposure

• Restructuring units established (FR&R and Ektornet)

• Capital strengthening through rights issue and managed risk weighted assets

• Improved funding structure

• Enhanced organisational and governance structure

3

Results by business areaQ4 updateSwedish BankingContinued solid performance, strong growth in deposits, low credit impairments

Baltic BankingLower total income due to contracting economy, lower growth rate in impaired loans

International BankingSlowing credit impairments in Ukraine,Russia weaker, further capacity adjustments

Swedbank MarketsStrong year, weak trading in Q4

Asset ManagementContinued positive trend in new sales

Profit before impairments

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

SwedishBanking

BalticBanking

InternationalBanking

SwedbankMarkets

AssetManagement

SEKm

Q3 09Q4 09

Operating result

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

SwedishBanking

BalticBanking

InternationalBanking

SwedbankMarkets

AssetManagement

SEKm

Q3 09Q4 09

4

Continued headwinds in net interest incomeNet interest income

Q3 Q4

5 017

4 702

-71-4-58-134-57

10

0

1 000

2 000

3 000

4 000

5 000

6 000

Net interestincome

SwedishBanking

BalticBanking

Intl Banking SwedbankMarkets

AssetManagement

Other Net interestincome

SEKm

5

• FX gains in Ukraine SEK 82m

• Slow trading in Swedbank Markets

• Inefficiencies of hedge accounting and repurchase of own debt in Group Treasury

SEKm Q4 09* Q3 09 Q4 08

Swedish Banking 96 -233 834

Baltic Banking 88 196 -3

International Banking 143 -197 228

Swedbank Markets 59 268 335

Asset Management 2 18 -20

Shared Services and Group Staffs -167 35 -156

Ektornet 2

Eliminations 0 0 26

Swedbank Group 223 87 1 244

Net gains and lossesSlow quarter in trading

* Excluding capital gain of SEK 39m (sale of Aktia shares SEK 24m and of Tallinn Stock Exchange shares SEK 15m)

6

CostsCapacity and expenses development• FTE reduction ahead of plan

• SEK 389m reserves of variable remuneration reversed in Q4

• Variable remuneration expenses down from 2008 by SEK 920m

• Risk management and restructuring related expenses increasing in short-term

• Day-to-day operations expenses will be lowered further

FTE plan actualreduction H2 09 H2 09Swedish Banking 0 -102

Baltic Banking -690 -860

Intl Banking -660 -821

Total -1 350 -1 783

7

Fourth quarter results 2009Income statement

SEKm Q4 2009 Q3 2009 Change

Net interest income 4 702 5 017 -315

Net commission income 2 273 2 208 65

Net gains/losses on financial items, fair value 223 87 136

Other income 784 830 -46

Total income 7 982 8 142 -160

Staff costs 2 319 2 241 78

Profit-based staff costs -389 207 -596

Other expenses 2 370 2 078 292

Total expenses 4 300 4 526 -226

Profit before impairments 3 682 3 616 66

Impairment of tangible assets 352 77 275

Credit impairments 5 003 6 121 -1 118

Operating profit -1 673 -2 582 909

Tax expense 115 734 -619

Result for the period -1 788 -3 316 1 528

Profit for the period attributable to: Shareholders of Swedbank AB -1 804 -3 337 1 533

8

High liquidity maintained

8

Liquidity & Funding

Stress test of liquidity as of 31 December 2009

• Survival period further increased thanks to long-term funding issuance

• Need for short-term funding continuously reduced as loan-to-deposit ratios improve

• Liquidity managed from a long-term and cost efficient view

0

50

100

150

200

250

300

D1 1W 2W 3W 1M 2M 3M 4M 5M 6M 9M 12M

SEKbn

9

Liquidity & FundingLoans and deposits development• Good growth of deposits

• Loan/deposit ratios improved in all business areas

• Quality of funding improved

Loan/deposit ratio 2008 2009

Swedish Banking 279 263

Baltic Banking 204 164

Estonia 176 150

Latvia 292 243

Lithuania 182 135

Group 262 240

Swedish Banking (SEKbn)

920

930

940

950

960

970

Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09315

325

335

345

355

365Loans (left)Deposits (right)

Baltic Banking (EURbn)

15

16

17

18

19

20

21

Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 095

6

7

8

9

10

11Loans (left)Deposits (right)

Improved funding situation

• SEK 66bn of long-term debt issued during Q4 (and another SEK 30bn during January 2010)

• Central bank repos down to SEK 116bn

• Average maturity of full wholesale funding further extended to 22 months (>36 months for covered bonds)

Liquidity & Funding

Outstanding wholesale funding Q2-Q4 SEKbn, notional value

122

46

206

184

318

99

99

165

175

338

75

97

116

166

391

Totalguaranteed

funding < 12M

Total short-term, non-

guaranteed*

Central bankrepos

Totalguaranteed

funding > 12M

Total long-term, non-

guaranteed

Q4

Q3

Q2

10

11

Capital managementWell capitalised

%

Core Tier 1 capital ratio* YE 08 9.68%

Result loss: SEK10.5bn -1.51%

RWA reduction +1.50%

Rights issue +2.10%

Other +0.24%

Core Tier 1 capital ratio* YE 09 12.01%

* According to Basel 2

Core Tier 1 capital ratio*

9.7 9.4 9.8 9.912.0

0

2

4

6

8

10

12

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09

12

Asset qualityContinued risk reduction• CEE lending as % of equity down from 290% to 209%

948 959

251188

Development – lending to the public

428 404

154 104

520 555

9784

0

200

400

600

800

1 000

1 200

Sweden 2008 Sweden 2009 Baltic countries &Eastern Europe 2008

Baltic countries &Eastern Europe 2009

SEKbn

PrivateCorporate

13

Quarterly change of 60-day past due loans – stabilisation continues

-50

0

50

100

150

200

250

300

350

400

Q408

Q109

Q209

Q309

Q409

Q408

Q109

Q209

Q309

Q409

Q408

Q109

Q209

Q309

Q409

EURm

Asset quality

Estonia Latvia Lithuania Ukraine Russia

Q408

Q109

Q209

Q309

Q409

Q408

Q109

Q209

Q309

Q409

14

Asset qualityDevelopment of impaired loans• Impaired loans increased by SEK 4.4bn (SEK 6.5bn excl definition change)

• The rate of increase in impaired loans is decreasing

• As expected weak performance in Latvia, Lithuania and Ukraine

10 5789 343

9 736

6 113

4 362

19 921

29 657

35 770

40 132

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

FY 08 Q1 09 Q2 09 Q3 09 Q4 09

SEKm

FY 09

Share of impaired loans, gross

Ukraine 53.5%

Russia 18.2%

Lithuania 14.2%

Latvia 21.1%

Estonia 6.8%

Sweden 0.2%2 196

5 465

13 401

7 705

2 238

8 180

947

15

Asset qualityCredit impairments in Q4

• Credit impairment SEK 5 003m

+ Sweden and Estonia continued good development

+ Ukraine: reduced provisioning ratio as portfolio knowledge increases

– Russia high losses due to thorough review of portfolio

– Lithuania: collateral value adjustment

6 845 6 672

6 121

5 003

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

Q1 09 Q2 09 Q3 09 Q4 09

SEKm

Sweden Baltic Banking Russia & Ukraine Other

3 1615 932

9 864

15 58220 882

3 193

6 835

8 914

6 922

5 135

64.8%

62.9%63.3%

64.1%

60.1%

0

5 000

10 000

15 000

20 000

25 000

30 000

Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009

SEKm

Individual provisions Portfolio provisions Provision ratio

16

Asset qualityProvisioning• All portfolios thoroughly reviewed in 2009

• Portfolio provisions - individual

• Provision ratio for Group increased during Q4 from 63% to 65%

Provision ratios:

Swedish Banking 96%

Baltic Banking Op 57%

Ukraine 78%

Russia 66%

17

Asset qualityRepossessed assets

• Increased to SEK 1.7bn, of which SEK 0.5bn is managed by Ektornet

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009

SEKm

Real Estate Residential Real Estate Commercial Passenger Transport

Commercial Transport Shares Other

18

Ektornet – recouping value over time• Independent business area as of the fourth quarter

• Management team in place – real estate experience background

• External market appraisal

• Seized collateral at year-end of SEK 517m, mainly real estate– Nordic region, SEK 173m– Estonia, SEK 150m– Latvia, SEK 64m– US, SEK 130m

• Intake forecast for 2010 is SEK 5bn

• Slow intake process continues into 2012

Asset quality

1919

Asset qualityMain risks 2010

• Global macro situation– Deleveraging– Sovereign risks with high fiscal debt levels

• Sweden– Interest rate stimulus withdrawn– Late impairment losses in certain segments

• Latvia– Political uncertainty: Election in September

• Ukraine– Political uncertainty

• Positives: Potential Estonian euro entry 2011

20

Strategic priorities 2010

Customer satisfaction • Increased customer segment focus • Local empowerment

• Reducing parts of exposure in CEE countries• Protecting value through FR&R and Ektornet

• New business initiatives in Sweden • Strong focus on cost and efficiency

• Increased covered bonds issuance• Balancing loan/deposit in all business areas

Risk reduction

Earnings capacity

Liquidity & Capital management

21

Customer-centric organisational model

CEO

Russia & Ukraine

Asset Management EktornetRetail

Large Corporates &

Institutions

Baltic Banking

22

Outlook

Given that the global macro economy continues to develop positively without substantial divergence, particularly in Latvia and Ukraine, a profit for the full-year 2010 is feasible.

23

Appendix

24

Results 2009Income statement

SEKm FY 2009 FY 2008 Change

Net interest income 20 765 21 702 -937

Net commission income 7 825 8 830 -1 005

Net gains/losses on financial items, fair value 2 731 2 351 380

Other income 3 461 3 580 -119

Total income 34 782 36 463 -1 681

Staff costs 9 184 9 142 42

Profit-based staff costs 17 950 -933

Other expenses 8 647 7 966 681

Total expenses 17 848 18 058 -210

Profit before impairments 16 934 18 405 -1 471

Impairment of intangible assets 1 305 1 403

Impairment of tangible assets 449 27 422

Credit impairments 24 641 3 156 21 485

Operating profit -9 461 13 819 -23 280

Tax expense 981 2 880 -1 899

Result for the period -10 442 10 939 -21 381

Result for the period attributable to: Shareholders of Swedbank AB -10 511 10 887 -21 398

25

Balance sheetSwedbank Group SEKm Dec 09 Dec 08 %

Loans to credit institutions 92 131 128 536 -28%

Loans to the public 1 290 667 1 287 424 0%

Interest-bearing securities 170 615 133 694 28%

Fund shares for which customers bear the investment risk 78 194 51 638 51%

Shares and participating interests 9 505 6 557 45%

Derivatives 72 969 128 055 -43%

Other assets 80 606 75 786 6%

Total assets 1 794 687 1 811 690 -1%

Amounts owed to credit institutions 231 687 316 730 -27%

Deposits and borrowings from the public 504 424 508 456 -1%

Debt securities in issue 703 258 593 365 19%

Financial liabilities for which customers bear the investment risk 80 132 52 074 54%

Derivatives 72 172 116 720 -38%

Other liabilities and provisions 75 057 93 128 -19%

Subordinated liabilities 37 983 44 755 -15%

Equity 89 974 86 462 4%

- Non-controlling interest 304 232 31%

- Equity attributable to shareholders 89 670 86 230 4%

Total liabilities and equity 1 794 687 1 811 690 -1%

26

Liquidity & FundingLong-term funding• In Q4 Swedbank issued

SEK 66bn of covered bonds and senior unsecured bonds compared to maturities of SEK 14bn

• No Government guaranteed bonds issued since announcement of rights issue (Aug)

• Average maturity of wholesale funding further extended to 22 months

• Maturities of SEK 141bn over next 12 months

26

0

20

40

60

80

100

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

2015

-

SEKbn, nom

Swedbank, long-term maturity profile(including Swedbank Mortgage)

27

Liquidity & FundingFunding under the Swedish guarantee programme

• Total outstanding guaranteed funding with maturity >12 months decreased by SEK 9bn to ca SEK 166bn

• No issuance under the government guarantee during Q4

• Total outstanding guaranteed funding with maturity <12 months decreased by SEK 24bn to ca SEK 75bn

• Small FX effects during the quarter

27

(total outstanding as per 31 December, notional SEK 241bn)

Currency distribution

Maturity distribution

100%

100%

< 12 M 32%

1-2Y 34%

2-3Y 17%

3-4Y 17%

JPY 2%

CHF 4%

SEK 22%

USD 29%

EUR 43%

28

Cover pool and new issuance of cover bonds

• Since Q3, two euro covered bonds have been issued– Euro Mid Term Note CB 7Y,

EUR 1.25bn, Sep/Oct 2009– Euro Mid Term Note CB 3Y,

EUR 1bn, Jan 2010

• Also continued good demand for domestic covered bonds issuance through tap system

28

Cover pool dataTotal pool size SEK 608bn

Average loan size SEK 398 818

Number of loans outstanding 1 524 546

Types of loans Residential Mortgages (90.3%), Public (2.9%), Commercial (0.1%),Forest and Agriculture (6.7%)

Fixed / Floating interest loans 1 Fixed 49%, Floating 51%

Average LTV 2 WA LTV on loan level 44%, on property level 58%

Maximum LTV 3 Underwriting maximum LTV limits 75%

Average maturity 54 months

Non performing loans 4 None

Geographic distribution (Sweden only) West 20%, South 24%, East 17%, Middle 32% and North 7%

Dynamic pool Yes

1 Distribution by origination, floating interest loans < 365 days2 LTV: by volume (loan level), index-valuation as of 31 Dec 20083 Commercial properties 60%, Forest and Agricultural 70%4 Past due loans > 60 days are not eligible for the cover pool

Loan to value (LTV)

0

50 000

100 000

150 000

200 000

250 000

<30% 30-50% 50-60% 60-75% 75-85% >85%

SEKm

Single-family homes Cooperative apartment Multi-family houses (incl housing coop. ass.)

SEK 0.5bn

Swedbank Mortgage, 31 Dec 2009, total loan portfolioSEK 672bn• 100% lending – Swedish properties

• 90% residential lending

• Average LTV* of 45% (loan level) 60% (property level). Cover pool 44% / 58%

• 79% of the total lending book within a loan-to-value* ratio below 50%

29

*LTV calculated on a loan-by-loan level

Loan-to-value* (LTV) Lending distributed by collateral

Forest & Agriculture

6%

Cooparative apartments

15%Municipalities

3%

Commercial properties 0.5%

Multi-family houses 16%

Single-family homes60%

30

Swedish Banking lending to the public, excluding Swedbank Mortgage, SEK 276bn

0

50 000

100 000

150 000

200 000

250 000

300 000SEKm

MunicipalitiesOther corporate lendingForestry and agricultureTransportationManufacturingConstructionHotels and restaurantsRetailReal estate managementPrivate individuals

Real estate management (SEK 91bn)

Residential27%

Housing cooperative associations

10%

Industry10%

Commercial properties

43%

Other10%

31

Foreign exchange positions as of 31 December 2009

SEKm EEK LVL LTL UAH RUB

Structural position -36 577 64 -14 234 410 -5

Net assets 20 301 7 642 5 651 1 080 1 042

Equity hedge 0 - 7 607 -5 645 0 0

Goodwill 11 541 0 0 0 13

Total position - 4 735 99 -14 228 1 490 1 050

Earnings capacity

32

Appendix – Baltic Banking

33

Baltic Banking gross lending by sectors*

3,162

1,244

1,361

853

358

2,645

0 2,000 4,000 6,000 8,000 10,000

Other**

Construction

Transport

Industry

Retail &Wholesale

Real estatemgmt***

Individuals

-40

-52

-43

-110

21

-230

-238

-300 -150 0 150

Portfolio, December 2009, EURm Portfolio growth, Q4 09, EURm

% share of portfolio* Lending portfolio split is based on NACE classification as presented to central bank ** Other portfolio includes Other business services, Energy, Agriculture, State & Municipality and Other loans. Largest decline in Other business services and State loans*** There is a customer Standard Industry Classification (SIC) code data update process ongoing and as a result, real estate management sector exposure increased. No major new

loans have been granted.

2%

5%

8%

7%

18%

14%

46%Mortgage Other

34

1 731

1 014

0

300

600

900

1 200

1 500

1 800

Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09

EUR

/m2

0

300

600

900

1200

1500

1800

No

of tr

ansa

ctio

ns

No of deals Average price

564

1 762

0

300

600

900

1200

1500

1800

Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09

EU

R/m

2

0

300

600

900

1200

1500

1800

No

of tr

ansa

ctio

ns

No of deals Average price

TallinnVilnius

Riga

1 611

758

0

300

600

900

1200

1500

1800

Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09

EUR

/m2

0

300

600

900

1200

1500

1800

No

of tr

ansa

ctio

ns

No of deals Average price

Real estate prices stabilised in the second half of 2009

35

LTV risk dimensions

Mortgage portfolio LTV

EE LV LT

Average LTV*: 2009-12-31 90% 166% 92%

Share of portfolio with LTV >100%** 39% 80% 42%

• Due to the price drop in all three Baltic countries, average LTVs have increased significantly

• Latvia was hurt most, due to higher share of portfolio issued at peak prices and a steeper price drop

*Average LTV: exposure weighted average of client LTVs within the portfolio**Share of portfolio with LTV>100%: sum of exposures where client LTV surpasses 100% in the total portfolio