January - September 2008

January - September 2008

Profit for the period increased by 1 percent compared with the first three
quarters of 2007
Profit for the period amounted to SEK 8 972m (8 888)
Earnings per share amounted to SEK 17.41 (17.25)
The return on equity was 17.0 percent (19.0)
The cost/income ratio was 0.50 (0.51)
Net interest income increased by 15 percent to SEK 15 960m (13 898)
Net loan losses amounted to SEK 1 523m (381), corresponding to a loan loss ratio
of 0.18 percent (0.06)
The tier 1 capital ratio was 8.7 percent according to the new rules (8.5 percent
on 31 December 2007) and 6.8 percent (6.2) according to the transition rules.

Lower profit in the third quarter compared with the second quarter 2008
Profit for the period decreased by SEK 1 136m to SEK 2 468m (3 604), where of
net gains and losses on financial items at fair value decreased by SEK 1 250m to
SEK -109m (1 141)
Earnings per share amounted to SEK 4.79 (6.99)
The return on equity decreased to 13.8 percent (20.6)
The cost/income ratio was 0.52 (0.47)
Net interest income increased by 2 percent to SEK 5 424m (5 295)
Net loan losses amounted to SEK 812m (423), corresponding to a loan loss ratio
of 0.27 percent (0.14).

Effect of financial crisis on third quarter results
The global financial markets turmoil adversely affected Swedbank's third quarter
results, mainly due to lower net gains and
losses on financial items at fair value. Examples include:
• Negative valuation effects in Swedbank Markets' credit bond portfolio of SEK
217m.
• Loan loss provisions of SEK 169m in unsecured trading exposure to Lehman
Brothers.
• Drop of SEK 356m in Swedbank Mortgage's income due to prolonged liquidity and
turbulence in the funding markets, among other things (net interest income and
net gains and losses on financial items at fair value).
• Negative valuation effects of around SEK 100m in the Baltic trading, liquidity
and insurance portfolios.
• Lower income of SEK 98m in Swedbank Robur.

President and CEO comments
The global economy and financial system is being affected by unprecedented
turbulence. The financial crisis has spread rapidly and is
impacting the development of the real economy worldwide and Swedbank's domestic
markets are no exception to this.
Swedbank is committed to working with and supporting its customers in this
extremely testing environment. The bank has solid
profitability. Results for the period show stable profits in line with the same
period in 2007. The bank's financial risks are limited.
Swedbank is taking measures to balance development for example by raising credit
quality requirements and by stricter relation
between deposits and lending. Cost-cutting and efficiency measures remain high
priority issues.

Swedbank's vision is to be the leading financial institution in the markets
where we are present. Swedbank has 9 million retail customers and 600,000
corporate customers with more than 459 branches in Sweden, 300 branches in the
Baltic countries and another 190 branches in Ukraine. The group is also present
in Copenhagen, Helsinki, Kaliningrad, Luxembourg, Marbella, Moscow, New York,
Oslo, Shanghai, St. Petersburg and Tokyo. As of December 2007 the group had
total assets of SEK 1,600 billion and approximately 22,000 employees. For more
information about Swedbank, please visit www.swedbank.com.