Press information from Swedbank

How can the third quarter results be summarized?
Swedbank’s positive trend from the first two quarters continued during the third
quarter. The bank reported a profit for the period of SEK 2.6 billion, to be compared
with SEK 1.6 billion and SEK 0.5 billion in the two previous quarters. As expected,
credit impairments continued to fall and were the main contributor to the positive
results. The credit impairment ratio during the quarter was a mere 0.03 per cent.
Also, net interest income increased, among other things as a result of higher market
interest rates in Sweden. Business activity with our customers continued to be good,
as seen in the 73 000 new Key customers (Nyckelkund), signing up for specially
designed products and services in Sweden during the quarter, and in our market
share in new mortgage sales rising to 22 percent in Sweden in August.

It looks stable for the bank again?
Absolutely. We have during the year strengthened our position each consecutive
quarter, and the bank’s situation today is very different from the situation at the
beginning of the year. This is visible in several areas. Among other things, Baltic
Banking shows profit again, with significantly lower credit impairments, and credit
quality in the bank overall is good. Business activity was also good, one example
being the large number of customers becoming Key customers of ours. We also
continued to move towards more normal market shares within new mortgage sales in
Sweden. The work to decrease risk levels in the bank also continued, not least
resulting in a continued strong funding position. So, in other words: our situation has
definitely stabilized. Provided that the macro economy continues to develop in line
with expectations, profit is expected to continue to improve.

How is Baltic Banking developing?
Our Baltic Banking operations reported a quarterly profit for the first time since the
fourth quarter of 2008. Credit impairments decreased significantly, but also profit
before impairments increased, for the second consecutive quarter. This is a clear
sign of improvement in the Baltic countries, and Estonia’s coming euro-entry, 1
January 2011, is expected to contribute to further stabilisation. Still, domestic
demand in the Baltic countries remains weak due to high unemployment and weak
income growth, and one must keep in mind that uncertainties remain regarding the
global macro economic development, which could have a large impact on the Baltic
countries. However, things definitely look more on the bright side today.

Looking ahead, what will Swedbank focus on?
Our focus going forward will be to promote a sound and sustainable financial
situation for the many households and businesses. We will sharpen both our work
processes and products with the ambition of being one of tomorrow’s best banks.
We’ll get there through working in accordance with our values – open, simple, caring
– and our vision: We enable people, businesses and societies to grow “beyond
financial growth”.

Press information from Swedbank