SBAB's net operating income for the first quarter totalled SEK 215 million

SBAB's net operating income for the first quarter totalled SEK 215 million

SBAB's net operating income for the first three months totalled SEK 215
million. (SEK 256 million). Net interest income amounted to SEK 304
million (SEK 340 million). Expenses have decreased to SEK 139 million
(SEK 153 million).SBAB has applied new accounting principles, IFRS, from
1 January 2007.

- SBAB's savings products were successfully launched in April. During
the first quarter we have carried out intensive development work with
SBAB's savings products at the same time as we have continued to reduce
the administration expenses, says SBAB's CEO, Eva Cederbalk.
Results
SBAB's net operating income for the period totalled SEK 215 million (SEK
256 million). The decrease in the result is mainly explained by lower
net interest income. Net interest income totalled SEK 304 million (SEK
340 million). Net interest income for 2006 has been positively affected
by SEK 44 million in connection with the maturity of benchmark bond
loan. Other operating income amounted to SEK 34 million (SEK 64
million).

In all, operating income decreased by SEK 66 million to SEK 338 million.
In addition to lower net interest income, net operating income has also
been affected by lower interest compensation compared with the
corresponding period in 2006. SBAB is continuing to experience very
stiff competition and pressure on margins.

Expenses during the first quarter totalled SEK 139 million (SEK 153
million). Compared with the corresponding quarter last year, expenses
have particularly decreased for administrative expenses. The new savings
products have required a lot of development costs in IT in the first
quarter of this year.

Lending
During the first quarter, new lending to the corporate market was SEK
3,368 million (SEK 1,849 million). The corporate market portfolio
amounts to SEK 66,677 million (SEK 66,208 million) excluding adjustment
for value with reference to hedge accounting.
New lending to the retail market totalled SEK 5,008 million (SEK 7,694
million) during the first three months of the year. The portfolio now
totals SEK 104,156 million (SEK 103,801 million) excluding adjustment
for value with reference to hedge accounting.
The accumulated adjustment for value with reference to hedge accounting
for the whole portfolio amounts to a negative SEK -514 million (SEK -405
million).


Loan portfolio and securitised loans, SEK billion

                        March 2007 March 2007   Dec 2006 Dec 2006
                        Total      Of which sd* Total    Of which sd*
Retail market           104.1                   103.8    0.0
Corporate market        66.7       7.5          66.2     7.4
Market value adjustment -0.5                    -0.4      
Total                   170.3      7.5          169.6    7.4

* Securitised loans.
Funding
SBAB considers it very important to have a well-diversified funding
portfolio. This requires an active presence in the capital market and a
flexible range of products. On 31 March, the portfolio consisted of the
following: Swedish Commercial Paper Programme, SEK 18.3 billion (SEK
18.2 billion), Swedish covered bonds SEK 45.9 billion (SEK 47.0
billion), European Commercial Paper Programme USD 959 million (USD 1,440
million), US Commercial Paper Programme USD 1,626 million (USD 1,813
million), Euro Medium Term Note Programme USD 8,673 million (USD 9,292
million), Euro Medium Term Covered Note Programme EUR 3,620 million (EUR
2,486 million). Total programme utilisation converted into Swedish
kronor was SEK 177.1 billion (SEK 173.5 billion).
Borrowing through issue of covered bonds is taken care of by SBAB's
wholly-owned subsidiary the Swedish Covered Bonds Corporation. The
credit rating institutes Moody's and Standard & Poor's have set a credit
rating of Aaa/AAA for the covered bonds issued.
Loan losses and doubtful claims
Loan losses have continued to be low and have posted a positive net
result of SEK 16 million (positive SEK 5 million). The positive net loan
losses amount includes dissolution of group reserves of SEK 19 million.
During the first quarter, the doubtful claims have decreased marginally
compared with the turn of the year from SEK 159 million to SEK 158
million. The provision ratio for specific provisions for loan claims
assessed individually was unchanged at 72 %.
Business partners
SBAB works together with Ikanobanken, Sparbanken Finn, Sparbanken
Gripen, Salusansvar, Bank2 and Ica Banken, which are important sales 
channels for SBAB.
SBAB has started collaboration with GE Money Bank for residential
mortgages.

Further information:

Eva Cederbalk, CEO, SBAB
Telephone: +46 8 614 43 01
Mobile: +46 70 523 23 02
E-mail: eva.cederbalk@sbab.se

Lena Hedlund, Chief Communication Officer, SBAB
Telephone: +46 8 614 38 49
Mobile: +46 708 58 07 25
E-mail: lena.hedlund@sbab.se
Per Balazsi, Chief Financial Controller, SBAB
Telephone +46 8 614 43 24
Mobile: +46 733 68 43 24
E-mail: per.balazsi@sbab.se