YEAR-END REPORT 1 January - 31 December 2009

The Swedish Covered Bond Corporation (SCBC)




 Summary                            December 2009 December 2008

 Net interest income, SEK million             813           797

 Operating profit/loss, SEK million         (295)         1,012

 Net profit/loss for the period,

 SEK million                                (217)           720

 Lending, SEK million                     173,371       157,792

 Capital adequacy ratio, %                   11.1          10.0

 Primary capital ratio, %                    11.1          10.0

 Volume of international

 funding, SEK million                      54,102        66,779

 Rating, long-term funding

 Standard & Poor's                           AAA*           AAA

 Moody's                                      Aaa          Aaa




* On 16 December 2009, Standard & Poor's placed SCBC and 97 other issuers of
covered bonds on CreditWatch.



All comparative figures in parentheses pertain to the year-earlier period.



Organisation

The Swedish Covered Bond Corporation, SCBC, is a wholly owned subsidiary of The
Swedish Housing Finance Corporation, SBAB. SCBC conducts its operations in such
a manner that they comply with the requirements specified in the Covered Bonds
Act (2003:1223) and the Swedish Financial Supervisory Authority's regulations
FFFS 2004:11.

SCBC's operations comprise the issue of covered bonds in Swedish and
international capital markets. For this purpose, the company uses two funding
programmes, the mortgage bond programme in Sweden and the EMTCN programme,
primarily in the international market. The operations are conducted by personnel
employed by the Parent Company SBAB, which performs services on behalf of SCBC
that are governed by an outsourcing agreement.

The loans that are not funded by issuing covered bonds are financed by a
subordinated loan from the Parent Company SBAB. In the event of SCBC's
bankruptcy, liquidation or company restructuring, the subordinated loan and
SBAB's claims on SCBC under the outsourcing agreement are subordinate to
liabilities to all non-subordinated creditors. SCBC has thus minimised the risk
of conflicts between creditors. To hedge currency and interest rate risks that
arise as a natural part of operations, SCBC regularly engages in derivative
transactions with SBAB and external counterparties.



Operating results

SCBC reported an operating loss of SEK 295 million (profit: 1,012) for 2009. The
loss was primarily due to net income/expense from financial instruments measured
at fair value. It resulted mainly from unrealised changes in the market value of
derivative instruments and hedged items and costs connected to the repurchase of
bonds.

SCBC's total operating income declined compared with 2008 to SEK 175 million
(1,428). Net interest income amounted to SEK 813 million (797). The increase in
net interest income was primarily attributable to a larger loan portfolio.
However, declining market interest rates had a dampening impact on the increase
in net interest income.

Expenses for the year totalled SEK 445 million (399), pertaining primarily to
costs resulting from the outsourcing agreement between SCBC and SBAB.

Net loan losses increased compared with 2008 and amounted to SEK 25 million
(loss: 17).



Lending

SCBC does not conduct any new lending activities itself; instead it
continuously, or when needed, acquires loans from SBAB. The intention of the
acquisitions is for these loans to be wholly or partly included in the cover
pool that serves as collateral for SCBC's covered bond investors.

SCBC's portfolio mainly comprises loans for residential mortgages, with the
retail market as the largest segment. The portfolio contains no loans for purely
commercial properties. Information regarding SCBC's cover pool, updated on a
monthly basis, is presented on the company's website, www.scbc.se
<http://www.scbc.se/>.

Lending to the public totalled SEK 173,371 million (157,792). The table below
shows the distribution of the loan portfolio between the retail and corporate
markets.



 Loan portfolio, SEK million Dec 2009 Dec 2008

 Retail market                107,157  105,740

 Corporate market              66,214   52,052

 Total                        173,371 157,792





According to an agreement between SBAB and SCBC, SBAB undertakes to repurchase
loans that are more than 30 days in arrears.


This is a translation of the Swedish year-end report. The auditor has not signed
the translation for approval.



Funding

SCBC's operations focus primarily on the issue of covered bonds in Swedish and
international capital markets. For this purpose, the company uses two funding
programmes: the mortgage bond programme in Sweden for the issue of covered bonds
and SCBC's EUR 10 billion Euro Medium Term Covered Note Programme. Both
programmes received the highest possible long-term ratings of Aaa and AAA from
the rating agencies Moody's and Standard & Poor's. Early during the year,
Standard & Poor's announced its intention to change its rating methodology for
covered bonds. On 16 December 2009, Standard & Poor's placed SCBC and 97 other
issuers of covered bonds on CreditWatch.

SCBC's funding takes place predominantly by issuing covered bonds, and, to a
certain extent, through repo transactions. In addition, SCBC receives funding in
the form of a subordinated loan from SBAB. The value of outstanding covered debt
securities in issue totalled SEK 139,963 million* (126,578). Programme
utilisation on 31 December 2009 was as follows: Swedish covered bonds SEK 83.9
billion (61.9) and Euro Medium Term Covered Note Programme EUR 5,175 million
(5,818).

The turmoil that marked financial markets in 2008 continued during the initial
part of 2009, when the market for covered bonds encountered fierce competition
from substantial issuance volumes of government-guaranteed bank debt. From
having been practically closed during most of the first half of 2009, the
international market for covered bonds started to function again during the
summer. The Swedish covered bond market functioned as a reliable source of
funding throughout the year. During the year, the average maturity of the debt
portfolio was extended through continuous issuances and repurchases, primarily
in the Swedish covered bond market. SCBC joined the Swedish Government's
guarantee scheme for medium-term borrowing on 29 June 2009. The company did not
utilise this programme, and decided not to extend its participation after 31
October 2009.



*Carrying amount including changes in market value.



Capital adequacy and risk

SCBC reports credit risk mainly in accordance with the Internal Risk-Based (IRB)
approach, and reports operational risk and market risk in accordance with the
standardised approach. SCBC's capital ratio, taking the transitional regulations
into account, amounted to 1.39 (1.25) on 31 December 2009 and both the capital
adequacy ratio and the primary capital ratio amounted to 11.1% (10.0). After
full implementation of Basel II, without taking into account the transitional
regulations, the capital adequacy ratio and primary capital ratio under Pillar
1 amounted to 33.1% (21.8). The figures include earnings for the financial year.

There are no ongoing or anticipated material obstacles or legal barriers to a
rapid transfer of funds from the capital base other than those that ensue from
the terms applying for the subordinated debentures (see Note 6) or from what
generally applies pursuant to the Companies Act (2005:551).

Since an increase in lending volume naturally entails a greater overall exposure
to credit risk, the anticipated loss in the credit risk model has been
increased.



Interest-rate risk

Interest-rate risk arises as a natural feature of SCBC's activities, primarily
when the interest-rate structure between the company's deposits and lending (ALM
risk) is not fully matched.

The main rule is that SCBC's interest-rate risk is hedged directly. Accordingly,
SCBC is subject to only a limited interest-rate risk. SCBC does not conduct
trading operations.



Current events

No events of material importance to the assessment of the company's financial
position have occurred after the end of the reporting period.



Accounting policies

SCBC applies statutory IFRS, which means that the year-end report has been
prepared in compliance with IFRS subject to the additions and exceptions that
ensue from the Swedish Financial Reporting Board's recommendation RFR 2.2,
Accounting for Legal Entities, Finansinspektionen's (The Swedish Financial
Supervisory Authority's) regulations and general guidelines on annual reports in
credit institutions and securities companies undertakings (FFFS 2008:25) and the
Annual Accounts (Credit Institutions and Securities Compa­nies) Act.

This year-end report has been prepared in accordance with IAS 34 Interim
Financial Reporting and the new amendment to IAS 1 Presentation of Financial
Statements. In compliance with the amendment to IAS 1, income and expenses are
recognised in two statements, an income statement and a statement of
comprehensive income. The statement of comprehensive income includes "Other
comprehensive income" which comprises income and expenses from transactions
recognised directly under shareholders' equity until the closing of the 2008
accounts. SCBC's transactions are solely with the company's shareholders, which
are reported in the statement of changes in equity. The accounting policies and
calculation methods remain unchanged compared with the 2008 Annual Report, with
the exception that SCBC now applies the new standard IFRS 8 Operating Segments,
instead of IAS 14 Segment Reporting.

According to IFRS 8, a segment is a component of a company that can earn
revenues and incur expenses. Discrete financial information must be available
and operating profit/loss must be regularly reviewed and monitored by the
company's chief operating executive. SCBC's operations are monitored at the
comprehensive level, since the company primarily comprises loan receivables
subject to a risk level that enables the issuance of covered bonds. As a result,
only one operating segment is recognised, comprehensive SCBC, which complies
with the previous application of IAS 14.



All amounts are stated in millions of Swedish kronor (SEK million).






 Financial information                           2010

 SCBC's interim report, annual reports and

 other financial information is available at scbc.se



 Annual Report                               31 March

 Annual General Meeting                      20 April

 Interim report January-June                 23 July





Stockholm den 3 February 2010





Per Tunestam

Managing Director




[HUG#1380994]