SBAB's net operating income has increased to SEK 345 million for January-September

SBAB's net operating income has increased to SEK 345 million for
January-September

SBAB's net operating income for the first nine months amounted to SEK 345
million (SEK 285 million). Net interest income has improved compared with the
corresponding period last year and expenses are continuing to decrease. The net
operating income adjusted for changes in market value in the liquidity portfolio
amounted to SEK 755 million (SEK 661 million).

“It is satisfying that SBAB's net operating profit has increased and that
impairment charges continues to be low despite the turbulence in the financial
markets. Saving has increased during the period and we are pleased that so many
savings customers have chosen SBAB. This confirms that we have competitive
savings products with attractive conditions”, says SBAB's CEO, 
Eva Cederbalk.

Result
SBAB's net operating income for the first nine months of 2008 amounted to SEK
345 mil-lion (SEK 285 million). Net interest income has improved compared with
the correspond-ing period last year and expenses have continued to decrease. The
net operating income has been negatively affected by net income from financial
instruments designated at fair value. Impairment charges amounts to positive SEK
1 million (positive SEK 35 million). 
Net interest income is higher than in the corresponding period last year, SEK
931 million (SEK 908 million). Expenses decreased to SEK 373 million (SEK 382
million).

Lending
Lending to the consumer market amounted to SEK 179,596 million compared with SEK
167,981 million at the beginning of the year. This increase is mainly
attributable to the acquisition of loans from the jointly-owned company FriSpar
Bolån AB by SBAB with the intention of enabling borrowing by covered bonds. New
lending to the consumer market totalled SEK 14,322 million (SEK 14,025 million).
The consumer market portfolio amounted to SEK 114,679 million (SEK 104,125
million). SBAB's market share of con-sumer market lending amounted to 7.6%
(8.1%). New lending to the corporate market totalled SEK 8,552 million (SEK
7,117 million). The corporate market portfolio totalled SEK 64,917 million (SEK
63,856 million). SBAB's market share of corporate market lend-ing amounted to
12.5% (13.4%).

Saving
SBAB introduced two savings products in the spring of 2007: A savings account
(Sparkonto) for both new and existing customers and the SBAB account
(SBAB-konto) for existing customers with residential mortgages of at least SEK 1
million. SBAB's sav-ings products have a very competitive deposit rate. Interest
is calculated from the first krona regardless of the amount deposited and
withdrawals are free of charge. There has been a very high level of demand for
SBAB's savings products and the amount deposited totalled SEK 1,876 million (SEK
759 million) at the end of the period.


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. SBAB
decided early on in the initial phase of the credit crisis in 2007 to maintain a
very high level of liquidity preparedness and has continued to follow this path.
Despite the increased anxi-ety and reduced market liquidity, SBAB has at every
stage of the crisis, including the most recent turbulence, had very good access
to funding. SBAB has been able to meet its goal of an increased share of
long-term funding. The total value of the outstanding secu-rities was SEK
202,158 million (SEK 191,807 million). Funding through issuance of cov-ered
bonds is carried out in SBAB's wholly-owned subsidiary, The Swedish Covered Bond
Corporation (SCBC). The credit rating institutes Moody's and Standard & Poor's
have es-tablished a credit rating of Aaa/AAA for the covered bonds issued. 

Liquidity portfolio
SBAB's liquidity portfolio is a liquidity reserve, which is intended to manage
liquidity and funding risks. The portfolio totalled SEK 30.1 billion (SEK 31.0
billion) and consists of assets classified as ”Loan receivables and accounts
receivable” (RMBS), SEK 22.6 billion (SEK 0 billion), and ”Securities valued at
fair value through profit or loss”, SEK 7.5 billion (SEK 31.0 billion). SBAB
has, in accordance with the decision of the EU Commission and the as-sessment of
the Swedish Financial Supervisory Authority, Finansinspektionen, decided to
reclassify assets in the RMBS portfolio from the category ”Available-for-sale
financial as-sets” to the category ”Loan receivables and accounts receivable”. 
This reclassification has been made as at 1 July 2008 at a fair value of SEK
21.7 billion and the carrying value of the assets at the end of the period
totalled SEK 22.6 billion.


For more information:
Eva Cederbalk, CEO SBAB
Telephone: +46 8 614 43 01
Mobile: +46 70 523 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 SBAB
Telephone: +46 8 614 38 49
Mobile: +46 708 58 07 25
E-mail: lena.hedlund@sbab.se

SBAB offers residential mortgages and savings 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 can be
obtained at www.sbab.se