SBAB's net operating income January - March amounted to SEK 97 million

SBAB's net operating income January - March amounted to SEK 97 million

SBAB's net operating income for the first three months 2008 amounted to SEK 97
million (SEK 215 million). The decrease in net operating income is attributable
to the change in value in SBAB's liquidity portfolio. Net operating income
adjusted for changes in market value in the liquidity portfolio amounts to SEK
255 million (SEK 202 million).

- Very low impairment charges and continuously reduced expenses combined with
stable net interest income have contributed to SBAB's good result in its core
activity. Adjusted for changes in market value in the liquidity portfolio we
make a better result compared to the same period last year, says Eva Cederbalk,
CEO.

Result
SBAB's net operating income for the first three months 2008 amounted to SEK 97
million (SEK 215 million). The decrease in net operating income compared with
the corresponding period last year is attributable to the change in value of
SBAB's liquidity portfolio. Net interest income totalled SEK 305 million (SEK
304 million). Net operating income adjusted for the change in market value in
the liquidity portfolio amounts to SEK 255 million (SEK 202 million). 

During the first three months the expenses amounted to SEK 135 million (SEK 139
million), a reduction of 3%. This is attributable to SBAB having lower
consultancy costs compared with previous years.

The Liquidity Portfolio
SBAB's liquidity portfolio is a liquidity reserve, which is intended to manage
liquidity and funding risks. As at 31 March 2008, the portfolio amounted to SEK
29.3 billion. The portfolio holding is long-term and solely consists of
AAA/Aaa-rated bonds except for one covered bond rated AAA/Aa2. This bond
corresponds to approximately 0.7% of the portfolio value. The portfolio has no
exposure to the U.S. residential mortgage market. 

SBAB assesses the market value of each security individually. The portfolio
consists of  assets classified as “Available-for-sale financial assets”, SEK
21.7 billion, and “Financial assets valued at fair value through profit or
loss”, SEK 7.6 billion. No negative changes of the credit rating have occurred
since the start of the credit crisis in mid-2007. SBAB is not expecting any
impairment in the portfolio. 
Lending
New lending to the consumer market totalled SEK 4,509 million (SEK 4,512
million). The consumer market portfolio totalled SEK 104,550 million (SEK
104,125 million). SBAB's market share of consumer market lending amounted to
7.9% (8.1%). SBAB's business partners continue to be important distribution
channels. New lending to the corporate market decreased to SEK 1,682 million
(SEK 3,369 million). The corporate market portfolio amounted to SEK 61,349
million (SEK 63,856 million). This reduction is explained by lower lending to
the municipal sector, private multi-family dwellings and tenant-owner
associations. SBAB's market share of the corporate market lending amounted to
12.0% (13.4%).

Saving
SBAB currently offers two savings products: A savings account (Sparkonto) for
both new and existing customers with an interest rate of 4.25% as at 31 March
2008 and the SBAB account (SBAB-konto) for customers with residential mortgages
of at least SEK 1 million with an interest rate of 5.00% as at 31 March 2008.
Interest is calculated from the first krona deposited and withdrawals are free
of charge. SBAB's savings accounts has attracted new customers and the deposited
amount has increased by 68% since the turn of the year and totalled SEK 1,272
million (SEK 759 million) as at 31 March 2008.

Funding
SBAB considers it very important to have a well-diversified funding portfolio.
This requires an active presence in the market and a flexible range of products.
The total value of outstanding securities issued was SEK 189.8 billion (SEK
191.8 billion) as at 31 March 2008. Funding through issuance of covered bonds is
carried out in the wholly-owned subsidiary The Swedish Covered Bond Corporation.
The credit rating institutes Moody's and Standard & Poor's have assigned a
credit rating of Aaa/AAA for the covered bonds issued.


For more information:
Eva Cederbalk, Chief Executive Officer, SBAB
Telephone: + 46 8 614 43 01
Mobile: + 46 705 23 23 02
E-mail: eva.cederbalk@sbab.se

Per Balazsi, Head of Accounting, Risk and Control Department, SBAB
Telephone: +46 8 614 43 24
Mobile: +46 733 68 43 24
E-mail: per.balazsi@sbab.se

Lena Hedlund, Chief Communication Officer
Telephone: +46 8 614 38 49
Mobile: +46 708 58 07 25
E-mail: lena.hedlund@sbab.se

SBAB offers residential mortgages and savings products via Internet and
telephone and provides corporate loans. SBAB's mandate is to act to ensure
diversity and competition in the Swedish residential mortgage market. More
information is available at www.sbab.se.