Swedbank's Interim Report Q1 2012

First quarter 2012
Compared with fourth quarter 2011
Profit for the quarter

SEKm 5 000 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Q12011 Q22011 Q32011 Q42011 Q12012
The result for the quarter amounted to SEK 3 425m (965) Earnings per share before dilution amounted to SEK 2.21* (0.88) and earnings per share after dilution amounted to SEK 2.20* (0.88) The return on equity was 14.0 per cent (3.9) The cost/income ratio was 0.48 (0.57) Net interest income increased by 5 per cent to SEK 5 208m (4 967) Profit before impairments increased by 29 per cent to SEK 4 768m (3 709) Swedbank reported net credit impairments of SEK 172m (net recoveries of 174) The core Tier 1 capital ratio was 15.9 per cent according to Basel 2 (15.7 per cent on 31 December 2011). The core Tier 1 capital ratio according to Basel 3 was 14.9** per cent (14.7 per cent on 31 December 2011).
Earnings per share before dilution*
SEK
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q12011 Q22011 Q32011 Q42011 Q12012
First quarter 2012

Compared with first quarter 2011
Return on equity % 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0
The result for the period amounted to SEK 3 425m (3 852) Earnings per share before dilution amounted to SEK 2.21* (2.47) and earnings per share after dilution amounted to SEK 2.20* (2.47) The return on equity was 14.0 per cent (16.1) The cost/income ratio was 0.48 (0.53) Net interest income increased by 16 per cent to SEK 5 208m (4 501) Profit before impairments increased by 17 per cent to SEK 4 768m (4 068) Swedbank reported net credit impairments of SEK 172m (net recoveries of 972)
Q12011
Q22011
Q32011
Q42011
Q12012
Core Tier 1 capital ratio, Basel 2

% 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0
* The calculation of earnings per share is specified on page 40. ** Swedbanks estimate based on current knowledge of future regulation.
Q12011
Q22011
Q32011
Q42011
Q12012
Swedbank Interim report January-March 2012
Page 1 of 45
CEO Comment
2012 began positively with a major liquidity boost from the ECB and political agreements between the EMU countries to gradually reduce their debts. This clearly impacted the financial markets early in the quarter, leading to a higher risk appetite. Renewed concerns about the debt situation, especially in Spain during the latter part of the quarter, again increased uncertainty in the financial markets. Focus on customer satisfaction and operational efficiency For Swedbank the year began strongly, with focus on customer relations and operational efficiency. We are currently well ahead regarding compliance with the new regulatory requirements. This puts us in a good position to grow with our current customers and to add new business. To strengthen customer satisfaction within Retail, we have decided to introduce a new tool that will make it easier to systematically track what our customers like and do not like about the bank. We have used the same tool in the Baltic countries with good results. In the process, we have become better at responding to our customers and adapting our services, which in turn has led to higher customer satisfaction in internal and external surveys. We have also received several awards for our service in the Baltic countries. Good business development in Sweden and Norway Because of the focus on risk-adjusted return within Large Corporates in recent years, lending volumes declined during parts of 2010 and 2011. Since mid-year 2011 volumes have risen again, at the same time that the price of risk has become more relevant. Moreover, activity in the corporate bond market has increased, and Swedbank has been one of the most active advisors in Sweden and Norway. Our ability to sell corporate bonds to major investors and through our retail network has been an important reason for our improved position. The investment banks business development was successful in the quarter, especially in Norway. The lending margin on new mortgages stabilised in Sweden during the first quarter. We have seen considerable activity among SMEs in Sweden, with a high number of new business enquiries. A slight adjustment in pricing was made for this segment. As a result of the higher capital requirements announced in autumn 2011, we expect continued price adjustments. Baltic Banking is continuing its stable development. Our strong deposit base and balance between deposits and lending make us sensitive to interest rates, which reduces net interest income when interest rates go down, as they did during the first quarter this year. Stable macroeconomic conditions in the region have not yet caused our lending margins to rise again. With the crisis in mind, many companies and private customers are choosing to amortise their debts and use their savings as finance. Continued work to cut costs Measures to cut costs in the bank are continuing as planned. The goal is to reduce expenses in 2012 by one billion kronor, excluding variable remuneration, compared with the previous year. We have begun to see results from the restructurings announced in the fourth quarter 2011. Large Corporates & Institutions has reduced its staff. Operations in Russia and Ukraine are being further reduced following the previously announced decision to gradually exit the retail segment. Expenses are being slashed within Group Staffs as demand for the resources it built up to manage the crisis has declined. Within Group Business Support, work is under way to cut costs e.g. in IT operations and maintenance. We have also launched a review of our product range with the goal of reducing complexity and the number of products. In addition, we have limited product development costs and are giving priority to regulatory driven projects as well as investments in our digital channels. Good credit quality Credit quality remains high. In Sweden we have low credit impairments and in the Baltic countries we reported recoveries for the sixth consecutive quarter, although they were lower than before. In Ukraine, we have allocated collective provisions of SEK 200m in the quarter, since we see increased risks in our retail portfolio. We are continuing our efforts to improve financial transparency. At the moment we are working on our internal capital assessment together with the Swedish Financial Supervisory Authority and hope to be able to publish the results in connection with the next interim report. The stress test will ensure that the bank can handle highly negative scenarios. To do so, it is important to be sufficiently capitalised and remain profitable. In a stressed 5-year scenario, about three fourths of the bank's protection comes from our earning capacity and one fourth from our capital. Outlook The macroeconomic outlook remains uncertain with a risk of recession in Europe. This makes it difficult to provide accurate earnings guidance. We are planning for a weak scenario and focusing on costs. Our aim is to reduce costs in 2012 by about SEK 1bn, excluding variable staff costs, compared with 2011. Net interest income will be positively affected by maturing state guaranteed funding, at the same time that lower interest rates could affect net interest income negatively. Today Swedbank is acting from a position of strength. We stand ready when our customers want to do more business.
Michael Wolf President and CEO
Page 2 of 45
Table of contents
Page Financial summary Overview Market Important events during the quarter First quarter 2012 compared with fourth quarter 2011 Result First quarter 2012 compared with first quarter 2011 Result Credit and asset quality Funding and liquidity Capital and capital adequacy Market risk Operational risks Other events Rating events during the period Events after 31 March 2012 Business areas Retail Large Corporates & Institutions Baltic Banking Asset Management Group Functions & Other Eliminations Financial information Group Income statement, condensed Other comprehensive income, condensed Balance sheet, condensed Statement of changes in equity, condensed Cash flow statement, condensed Notes Parent company Signatures of the Board of Directors and the President Review report Contact information 22 23 23 24 25 35 41 44 44 45 11 13 15 17 18 20 4 5 5 5 5 5 6 6 6 7 8 9 10 10 10 10
More detailed information can be found in Swedbanks fact book, www.swedbank.com/ir, under Financial information and publications.
Page 3 of 45
Financial summary
Income statement SEKm Net interest income Net commissions Net gains and losses on financial items at fair value Other income Total income Staff costs Other expenses Total expenses Profit before impairments Impairment of intangible assets Impairment of tangible assets Credit impairments Operating profit Tax expense Profit for the period from continuing operations Profit for the period from discontinued operations, after tax Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Q1 2012 5 208 2 405 759 809 9 181 2 440 1 973 4 413 4 768 0 40 172 4 556 1 127 3 429 0 3 429 3 425 Q4 2011 4 967 2 291 559 839 8 656 2 651 2 296 4 947 3 709 1 960 170 -174 1 753 790 963 4 967 965 % 5 5 36 -4 6 -8 -14 -11 29 -76 Q1 2011 4 501 2 456 255 1 369 8 581 2 467 2 046 4 513 4 068 0 2 -972 5 038 1 182 3 856 0 3 856 3 852 -11 -11 % 16 -2 -41 7 -1 -4 -2 17
-10 -5 -11
43
Key ratios and data per share Return on equity, % Earnings per share before dilution, SEK 1) Earnings per share after dilution, SEK 1) Cost/income ratio Equity per share, SEK
1)
Q1 2012 14.0 2.21 2.20 0.48 82.04 2.37 15.9 17.4 18.9 1.54 10.4 11.3 12.3 0.05 1.67 65
Q4 2011 3.9 0.88 0.88 0.57 84.40 2.37 15.7 17.2 18.9 1.54 10.2 11.2 12.3 -0.05 1.87 62
Q1 2011 16.1 2.47 2.47 0.53 82.39 2.34 14.9 16.2 18.7 1.63 10.4 11.2 13.0 -0.29 2.28 61
Capital quotient, Basel 2 Core Tier 1 capital ratio, %, Basel 2 Tier 1 capital ratio, %, Basel 2 Capital adequacy ratio, %, Basel 2 Capital quotient, transition rules Core Tier 1 capital ratio, %, transition rules Tier 1 capital ratio, %, transition rules Capital adequacy ratio, %, transition rules Credit impairment ratio, % Share of impaired loans, gross, % Total provision ratio for impaired loans, %
1)
The number of shares and the calculation of earnings per share are specified on page 40.
The key ratios are based on profit and shareholders equity allocated to shareholders of Swedbank.
Balance sheet data SEKbn Loans to the public Deposits and borrowings from the public Shareholders' equity Total assets Risk weighted assets, Basel 2 Risk weighted assets, transition rules Risk weighted assets, Basel 1
31 Mar 2012 1 213 604 95 1 889 495 759 977
31 Dec 2011 1 211 562 98 1 857 492 757 969
% 0 7 -3 2 0 0 1
31 Mar 2011 1 174 524 96 1 745 519 747 953
% 3 15 0 8 -5 2 3
Page 4 of 45
Overview
Market
The risk of a more severe global slowdown that was hanging over the last quarter of 2011 diminished in the first quarter. Huge liquidity injections from the ECB and political agreements between the EMU countries positively impacted the financial markets. Concerns about Spain's debt situation have increased lately, however, which has led to renewed uncertainty in the financial markets. Leading economic indicators such as the purchasing managers index and corporate orders rose marginally during the first quarter, but show that the Swedish economy has stabilised after weakening significantly during the fourth quarter 2011, when seasonally and calendar adjusted GDP fell by slightly over 1 per cent from the preceding quarter. Previously strong, export-led growth in the Baltic countries has slowed due to the weak global economy. This was particularly true of the last quarter of 2011. Instead, higher domestic demand contributed to GDP growth. Declining unemployment and rising wages are leading to higher consumer spending at the same time that business investment has started to accelerate. The Riksbank cut its repo rate in February by an additional 25bp to 1.5 per cent. This means it has cut the rate by 50bp since December 2011. While the risk picture has changed since then, it is not unlikely we will see another rate cut in 2012, since the underlying inflation rate is still low despite high crude oil prices. The Swedish krona continued to appreciate against the euro during the first quarter, but was largely unchanged against the US dollar. The Stockholm stock exchange (OMXSPI) rose by 10 per cent during the first quarter. The Tallinn stock exchange (OMXT) rose by 13 per cent, the Vilnius stock exchange (OMXV) by 5 per cent and the Riga stock exchange (OMXR) by 5 per cent.
result was charged with goodwill impairment totalling SEK 1 930m. Credit impairments amounted to SEK 172m (net recoveries of 174). The return on equity was 14.0 per cent (3.9). The cost/income ratio was 0.48 (0.57).
Profit before impairments by business area SEKm Retail Large Corporates & Institutions Baltic Banking Asset Management Group Functions & Other Total excl FX effects FX effects Total
Q1 2012 2 781 1 267 832 183 -295 4 768 0 4 768
Q4 2011 2 418 708 801 148 -364 3 711 -2 3 709
Q1 2011 2 198 1 596 800 193 -738 4 049 19 4 068
Income for the first quarter rose by 6 per cent to SEK 9 181m (8 656). Net interest income, net commission income and net gains and losses on financial items at fair value all rose. Changes in exchange rates, primarily the appreciation of the Swedish krona against the euro, Latvian lats and Lithuanian litas, reduced reported income by SEK 14m. Net interest income increased by 5 per cent to SEK 5 208m (4 967). Net interest income in the fourth quarter included SEK 102m in net one-off revenue (SEK 206m from the settlement with Lehman Brothers less SEK 104m for a one-off adjustment and an accrual change). Repricing of lending within Retail and LC&I affected net interest income positively. In addition, the cost of stateguaranteed funding decreased by SEK 112m during the quarter. Within Retail, lower Stibor rates affected net interest income on deposits negatively. Lower Euribor rates and lower lending volumes within Baltic Banking also had a negative effect on net interest income. Net commission income increased by 5 per cent to SEK 2 405m (2 291), mainly due to higher income from corporate finance. Payment commissions decreased by SEK 68m due to seasonally lower commission income during the first quarter. Net gains and losses on financial items at fair value increased by 36 per cent to SEK 759m (559) due to better trading-related results within LC&I. Net gains and losses on financial items at fair value decreased by SEK 121m within Group Treasury (Group Functions & Other). A one-off correction related to an outstanding subordinated loan negatively affected the result by SEK 250m. Expenses decreased by 11 per cent compared with the previous quarter to SEK 4 413m (4 947). The fourth quarter 2011 included expenses of SEK 330m for staff restructurings in 2012 in Sweden and the Baltic countries. The fourth quarter also reflected seasonally higher expenses. Variable staff costs increased to SEK 208m (47).
Important events during the quarter

During the quarter Swedbank changed how transactions with the savings banks are reported. The change has no effect on the result, but raised both revenue and expenses for 2011 by SEK 530m. Comparative figures have been restated. For more information, see page 25. A number of reorganisations and transfers between business areas were implemented during the quarter. Comparative figures have been restated. For more information, see below under each business area.
First quarter 2012

Compared with fourth quarter 2011 Result
Profit before impairments increased by 29 per cent to SEK 4 768m (3 709). The increase was due to higher earnings, at the same time that costs decreased. The largest part of the profit improvement was in Large Corporates & Institutions (LC&I) and Retail. The quarterly result attributable to the shareholders amounted to SEK 3 425m (965). The fourth-quarter
Swedbank Interim report January-March 2012 Page 5 of 45
Expense analysis Group SEKm Retail Large Corporates & Institutions Baltic Banking Asset Management Group Functions & Other and Eliminations Total excl FX effects FX effects Total of which variable pay of which expenses for compensation to Savings Banks of which non-recurring expenses
Q1 2012 2 342 713 620 200 538 4 413 4 413 208
Q4 2011 2 486 837 720 233 683 4 959 -12 4 947 47
Q1 2011 2 415 738 638 203 503 4 497 16 4 513 146
the state-guaranteed funding decreased by SEK 212m due to maturing state-guaranteed funding. Smaller lending portfolios in Baltic Banking as well as in Russia and Ukraine affected net interest income negatively. Net commission income was down 2 per cent to SEK 2 405m (2 456). The decrease was mainly the result of lower commission income from asset management, securities trading and lending, while income from corporate finance rose. Net gains and losses on financial items at fair value increased by 198 per cent to SEK 759m (255). LC&I reported higher net gains and losses on financial items at fair value due to stronger trading related income. Group Treasury reported a higher result, mainly due to negative funding-related valuation effects in the first quarter 2011. Expenses decreased to SEK 4 413m (4 513). Staff costs decreased by SEK 89m and consulting costs decreased by SEK 76m. Variable staff costs rose to SEK 208m (146). Since 1 July 2010 Sweden pays parts of its variable remuneration in the form of shares. This remuneration is accrued as an expense until the shares are settled. As a result, variable remuneration allocated to employees during the period differs from the recognised amount. During the quarter recognised variable remuneration was SEK 208m. A more detailed analysis of variable 1 remuneration is provided on page 13 of the fact book . The number of full-time positions has decreased in one year by 1 096, including 615 in Ukraine, 273 in Retail and 287 in Baltic Banking. Credit impairments of SEK 172m were reported for the first quarter (net recoveries of 972). The credit impairments are primarily attributable to Ukraine, while the Baltic countries reported net recoveries. In the first quarter 2011 net recoveries were reported in Baltic Banking, Russia and Ukraine. The tax expense amounted to SEK 1 127m (1 182), corresponding to an effective tax rate of 24.7 per cent (23.5). In the medium term the effective tax rate is estimated at 21-22 per cent.
152 0
138 330
129 0
The number of full-time employees decreased during the quarter by 237, to 16 050. The reductions were mainly in Baltic Banking and in Ukraine. Credit impairments of SEK 172m were posted during the first quarter, compared with net recoveries of SEK 174m in the previous quarter. The credit impairments are primarily attributable to Ukraine, while Baltic Banking reported net recoveries. The tax expense amounted to SEK 1 127m (790), corresponding to an effective tax rate of 24.7 per cent (45.1). The higher effective tax rate during the fourth quarter 2011 was due to non-deductible goodwill writedowns in the Latvian operations.
First quarter 2012

Compared with first quarter 2011 Result
Profit before impairments increased by 17 per cent to SEK 4 768m (4 068). During the first quarter 2011 Swedbank received one-off revenue of SEK 716m from a settlement with the Lehman Brothers bankruptcy estate. Stronger net interest income and net gains and losses on financial items at fair value affected the result positively. Profit for the period attributable to the shareholders decreased by 11 per cent to SEK 3 425m (3 852). Credit impairments amounted to SEK 172m (net recoveries of 972). The return on equity was 14.0 per cent (16.1). The cost/income ratio was 0.48 (0.53). Income increased by 7 per cent to SEK 9 181m (8 581). Net interest income increased primarily in Retail and Group Treasury (Group Functions & Other). Net gains and losses on financial items at fair value increased in LC&I and Group Treasury, while commission income decreased by 1 per cent during the year. Changes in exchange rates, especially the Swedish kronas decline against the euro and the Baltic currencies, increased reported income by SEK 35m. Net interest income increased by 16 per cent to SEK 5 208m (4 501). The factors that positively affected net interest income were somewhat higher interest rates in Sweden and repricing of lending. Moreover, the fee for
Credit and asset quality

Swedbanks credit and asset quality further improved during the first quarter 2012. The Swedish operations continued to post low credit impairments. The credit portfolio in the Baltic countries is well provisioned for and continued to report recoveries during the quarter, though slower than before. In Ukraine a collective provision of SEK 200m was allocated due to the elevated risks in the retail portfolio. As a whole, Swedbank feels that turbulent global conditions to date have not had a major impact on its balance sheet. Swedbanks total lending increased by SEK 3bn to SEK 1 169bn during the first quarter 2012. Lending to private customers in Sweden continued to grow, but significantly below the average annual rate in the last ten years. Lending in the Baltic countries, Russia and
More detailed information can be found in Swedbanks fact book, www.swedbank.com/ir, under Financial information and publications.
Ukraine continued to decline, but corporate lending in Estonia has begun to stabilise. The stable or positive trend in housing prices in major Baltic cities continued during the first quarter 2012. The average loan-to-value ratio was 74 per cent in Estonia on 31 March (75 on 31 December 2011), 145 per cent in Latvia (149) and 92 per cent in Lithuania (96). Within Baltic Banking the share of the mortgage portfolio exceeding current market value was SEK 6.1bn (6.3). The average loan-to-value ratio in Swedbank Mortgage was 62 per cent (60) on 31 March, calculated by property level (46 per cent by loan level). Impaired loans decreased by a total of SEK 2.7bn during the first quarter to SEK 22.1bn and included every business area. The decrease was partly due to a slower inflow of new impaired loans during the period and partly to certain large corporate commitments that are no longer impaired. Write-offs also contributed to the decrease in impaired loans. The stabilisation of loans past due by more than 60 days continued during the first quarter 2012. Private mortgage loans within Baltic Banking past due by more than 60 days continued to decrease. Within the Retail business area, private mortgage loans past due by more than 60 days rose during the first quarter but remain at very low levels.
Assets taken over and cancelled leases by business area SEKm Retail Baltic Banking Estonia Latvia Lithuania Group Functions & Other Russia Ukraine Ektornet Sweden Norway Finland Estonia Latvia Lithuania USA Ukraine Total
31 Mar 2012 6 199 8 121 70 6 043 10 282 5 751 312 89 374 592 1 903 675 1 409 397 6 248
31 Dec 2011 44 216 9 117 90 6 115 10 286 5 819 305 102 709 569 1 721 448 1 522 443 6 375
31 Mar 2011 11 392 32 166 194 3 711 5 290 3 416 268 116 751 498 1 083 223 276 201 4 114
Credit impairments, net by business area SEKm Retail Large Corporates & Institutions Baltic Banking Estonia Latvia Lithuania Other Group Functions & Other Russia Ukraine Other Total
Q1 2012 24 14 -134 -78 -21 -35 0 268 -65 333 0 172
Q4 2011 216 4 -117 -55 158 -232 12 -277 -269 9 -17 -174
Q1 2011 5 -105 -382 -9 -135 -238 0 -490 -171 -319 0 -972
Swedbanks exposure to counterparties in Greece, Ireland, Italy, Portugal and Spain continued to decrease during the first quarter, largely due to a reduction in derivative exposures related to Italy. The exposures totalled SEK 556m as of 31 March 2012 (SEK 763m as of 31 December 2011), of which SEK 4m related to Greece. Participation in the Greek debt swap during the first quarter had minimal impact on earnings, since Swedbank had already written down 70 per cent of its holding of Greek government bonds.
GIIPS exposure 31 Mar 2012 SEKm Bonds of which soveriegn of which held to maturity1 Loans (money market and certificates) Loans (committed credit facilities) Derivatives net2 Other3 Total
1 2
Greece Ireland 4 4 4 3
Italy Portugal 122 122 100 14 26 26 26
Spain 10 10 5 86
Total 165 162 135 100 0 154 137 556
30 0 4 33
20 22 178
26
104 115 315
Current market values are below the carrying amounts by approximately SEK 22m.
Credit impairments totalled SEK 172m (net recoveries of SEK 174m) during the first quarter. Credit impairments within Retail and LC&I remain very low and are related to a few corporate commitments. Recoveries in the Baltic countries and Russia were largely related to a limited number of corporate commitments. After further reviews of the portfolios and a continued elevated risk level in Ukraine, additional provisions of SEK 200m were deemed necessary for lending to private persons as well as for a few large corporate commitments. Repossessed assets in the Group decreased by 2 per cent to SEK 6 248m during the first quarter. Ektornet repossessed properties valued at SEK 524m, the majority of which were in Latvia and Lithuania. During the first quarter Ektornet sold assets with a book value of SEK 436m, the majority of which were in Finland. For more information on Ektornet, see page 20.
Derivatives at market value taking into account netting and collateral agreements. Considering the bank's internal risk add-ons for counterparty risk at potential future change in prices, the derivative exposures amount to: Ireland SEK 63m, Italy SEK 434m and Spain SEK 294m. Total SEK 791m. 3 Includes trade finance and mortgage loans.
Funding and liquidity

Swedbank continued to see strong demand from domestic and international debt investors during the first quarter. There has been a clear trend among investors to seek out financially strong geographical areas, which benefits Sweden. The bank has capitalised on opportunities in the capital markets to issue three public benchmark bonds, of which two in EUR and one in USD. This is in addition to issues in, among other, the Swedish covered bond market. Swedbank has issued a large volume of long-term funding in the last two years in order to build up its liquidity reserves, pre-finance impending maturities and extend the average maturity of all its capital market funding. As a result, the bank did not need to participate in the extraordinary liquidity support provided by the
Page 7 of 45
European Central Bank in December and February (LTRO). Swedbank has now entered a phase where its maturing long-term funding is significantly lower than in recent years. Total maturing long-term funding in 2012 amounts to a nominal SEK 86bn. The bank estimates the volume of long-term debt it will issue in 2012 at SEK 100-120bn, compared with SEK 254bn issued in 2011. During the first quarter 2012 Swedbank issued a total of SEK 56bn in long-term debt instruments, of which SEK 30bn was covered bonds and SEK 24bn was senior unsecured debt. The percentage of senior unsecured funding is determined by the banks liquidity needs, but is also affected by changes in housing prices and their impact on overcollateralisation in the cover pool. Swedbank intends to increase its presence in the senior financing market in Europe and the US. Covered funding in the form of covered bonds will remain the core of Swedbanks funding strategy, since the Swedish mortgage business is the source of the large part of the bank's financing needs. At this point Swedish banks have no restrictions on how much of their balance sheets may comprise funding in the form of covered bonds (in Swedbanks case, its cover pool accounts for just over one third of the balance sheet). Consequently, Swedbank will decide on the right level of funding in the form of covered bonds based on what is most cost-effective for the bank, taking into account the liquidity risk mentioned above. However, Swedbank is confident that it is well-prepared if the applicable rules should change, largely thanks to its low structural demand for senior funding. Swedbank manages its liquidity so that it can handle long periods of stress in the capital markets when access to new financing would be limited. At present the bank would be able to manage if the capital markets completely shut down for well over 12 months. This applies to the Groups total liquidity as well as liquidity in specific currencies such as USD and EUR. Short-term liquidity is being adjusted to reach a Liquidity Coverage Ratio (LCR) of over 100 per cent.
Issued long-term debt SEKbn Covered bonds of which SEK of which EUR of which USD Senior unsecured bonds Structured retail bonds (SPAX) Total Q1 2012 30 17 3 10 24 2 56
March 2012 had covered its USD needs for more than 12 months in advance. Short-term funding continued to rise during the first quarter 2012, to SEK 133bn, mainly due to increased demand from foreign investors. Swedbanks short-term funding needs are limited, however, because of which reserves with central banks were about as large as of 31 March 2012 as the total volume of short-term funding within the programmes and in the interbank market. Swedbanks liquidity reserve within Group Treasury, which is reported in accordance with the Swedish Bankers Associations guidelines, amounted to SEK 254bn on 31 March 2012. In addition to the liquidity reserve, liquid securities in other parts of the Group amounted to SEK 68bn. The liquidity reserve and liquidity coverage ratio (LCR) will fluctuate over time depending on the maturity structure of the banks outstanding securities. On 15 February 2012 the ratings agency Moody's placed Swedbank and 114 other financial institutions in Europe on review for downgrade. According to Moodys preliminary indication, Swedbanks long-term and shortterm credit ratings could be downgraded by one notch, to A3 and P-2 respectively. Many large investors with short investment horizons have strict rules on how much they can place with counterparties with credit ratings below P-1. For that reason, a downgrade of Swedbanks short-term credit rating would probably trigger the loss of a large part of the bank's short-term funding. The biggest impact is expected to be on its US short-term programmes. Since Swedbank has little structural demand for short-term funding, such a loss would not have a material effect on the banks liquidity position or ability to meet its short- and long-term payment obligations. The short-term funding is used primarily as a tool for the bank's cash management. The bank is currently holding discussions with Moodys and expects to receive a clarification on this issue in May 2012. For further information on Swedbanks funding and liquidity, see the fact book.
Capital and capital adequacy

The core Tier 1 capital ratio according to Basel 2 strengthened during the first quarter 2012 to 15.9 per cent on 31 March (15.7 per cent on 31 December 2011). Core Tier 1 capital increased by SEK 1.5bn from the beginning of the year to SEK 78.8bn. Profit for the year (after the anticipated dividend) explains the increase. The risk weighted amount increased by SEK 2.3bn or nearly 0.5 per cent from the beginning of the year to SEK 494.6bn. Credit risks were largely unchanged. The increase in risk weighted assets within household exposures was offset by reductions in institutional exposures. The risk weighted amount for market risks rose by SEK 2.9bn during the quarter, mainly due to increased interest rate risk. Operational risks were practically unchanged.
The average maturity of all capital market funding arranged through the banks short- and long-term programmes was 35 months as of 31 March 2012. The average maturity of covered bonds was 42 months. The average maturity of long-term funding issued during the first quarter was 46 months. During the quarter Swedbank issued a five-year, USD 1.5bn covered bond by tapping its funding programme, which primarily targets US investors. The bank has a limited demand for USD, since its lending in USD is low. To reduce liquidity risk in USD, Swedbank as of 31
Page 8 of 45
Risk-weighted assets by business area SEKbn Retail Large Corporates & Institutions Baltic Banking Estonia Latvia Lithuania Asset Management Group Functions & Other Group Business Support Treasury Russia Ukraine Ektornet Other Total risk-weighted assets
31 Mar 2012 212 135 99 39 33 27 3 46 4 20 6 8 7 1 495
31 Dec 2011 219 129 102 41 33 28 3 39 1 15 6 9 7 1 492
31 Mar 2011 227 146 120 45 45 30 3 23 1 2 7 9 4 0 519
future capital strategy. The 2012 Annual General Meeting granted the Board of Directors a mandate to issue debt instruments which can be converted to shares in times of stress. Swedbank is monitoring the market for these instruments and awaiting clarification of the rules before finally deciding whether to utilise this mandate.
Market risk
Swedbank measures market risks those of a structural nature and those that arise in trading operations with a Value-at-Risk (VaR) model. The table below shows Swedbanks VaR*) performance during the year.
VaR by risk category SEKm Interest risk Currency rate risk Stock price risk Diversification Total Jan-Mar 2012 (2011) Max Min Average 114 (158) 10 (29) 11 (9) 0 114 (151) 76 (103) 3 (3) 6 (5) 0 69 (108) 94 (125) 6 (8) 8 (6) -21 (-12) 87 (124) 31 Mar 31 Dec 2012 2011 101 3 9 -21 92 91 7 5 -19 84
The core Tier 1 capital ratio according to Basel 3 was 14.9 per cent (14.7) according to Swedbanks estimate based on prevailing knowledge of future regulations. Swedbank continuously monitors updates of draft regulations and makes regular assessments of their possible impact on the banks capital requirements and capital structure.
The effect of new regulations on the Core Tier 1 capital ratio
16% 15% 14% 13% 15.9 -1.0 - 0.4 14.5
*) VaR here excludes market risks within Swedbank Ukraine as well as strategic currency rate risks. For Swedbank Ukraine, VaR is misleading because of the illiquid and undeveloped financial markets in Ukraine. Regarding strategic currency rate risks, a VaR measurement based on a time horizon of one day is not relevant.
Market risks in Swedbank in VaR, allocated to risk-taking units SEKm 0 -20 -40 -60
12%
11% 10% Q1 2012 Basel 3 IAS 19 Q1 2012 Retail Internal including mortgage measures Basel 3 and risk-weights (IRB IAS 19 Advanced and other)
-80 -100 -120
12-01-02
12-02-02
Swedbank estimates that the Basel 3 regulations will negatively affect its core Tier 1 capital ratio by 1.0 percentage point when introduced in 2013. Amendments to the accounting standard related with pensions (IAS 19), which are scheduled to go into effect in 2013, could have a negative effect of about 0.4 percentage points, estimated as of 31 March 2012. Swedish supervisory authorities are conducting a review of risk weights for mortgage lending. The outcome of the review is uncertain, but an increase in Swedbanks average risk weight for mortgage lending to a level of 10-15 per cent would reduce the core Tier 1 capital ratio by 1.0 1.9 percentage points. In addition, Swedbank believes that the introduction of an advanced internal rating-based approach (AIRB) and certain model updates for SMEs will partly offset the negative effect of the higher risk weights on mortgage lending. Approval from the Swedish Financial Supervisory Authority to use AIRB is expected in 2013 at the earliest. As part of its preparations for future capital requirements, Swedbank has built up a capital base, which in terms of size and quality ensures that the bank is well-prepared and gives it flexibility in designing its
Group Treasury Large Corporates & Institutions Swedbank Group

Swedbank trading, daily result and VaR SEKm 40 30 20 10 0 -10 -20 -30 -40
12-01-02
12-02-02
Daily results
Swedbank Trading VaR
For individual risk types, VaR is supplemented with risk measurements and limits based on sensitivity to changes in various market prices. Risk-taking is also monitored with stress tests. An increase in all market interest rates of one percentage point as of 31 March 2012 would have reduced the value of the Groups assets and liabilities, including derivatives, by SEK 565m, compared with a
Page 9 of 45
12-03-02
12-03-02
decrease of SEK 987m as of 31 December 2011. This calculation includes the portion of the banks deposits assigned a duration of between two and three years. The decrease in the value of positions in Swedish kronor would have been SEK 382m (-656), while positions in foreign currency would have decreased in value by SEK 183m (-332). With an interest rate increase of one percentage point, the Groups net gains and losses on financial items at fair value would have decreased by SEK 77m as of 31 March 2012, compared with a decrease of SEK 434m as of 31 December 2011.
The AGM resolved to pay a dividend to the shareholders for the financial year 2011 of SEK 5.30 per preference share and SEK 5.30 per common share. The AGM authorised the Board of Directors to resolve to acquire the bank's own shares. Decisions to repurchase shares are permitted only if the Board determines that the banks long-term core Tier 1 capital ratio exceeds the desired level and after the new capital requirements have been clarified. The AGM granted the Board of Directors a mandate to issue convertible debt instruments, which can be converted to shares in times of stress. Not more than 100 000 000 new common shares can be issued through the conversions, or a corresponding number through bonus issues, new share issues, conversions of convertibles, share splits, reverse splits or similar corporate events. The AGM also resolved to reduce the share capital and implement a bonus issue in order to cancel the banks holding of repurchased own shares.
Operational risks
The operational risk level remains elevated. Swedbank is facing structural changes and the need to modernise its IT infrastructure. This is an area where the bank is working actively to consolidate and improve efficiencies. An important part of this work is to move the secondary computer centre, which will be completed during the second quarter of this year. Swedbank is more dependent on manual processes than desirable in the long term. Work is under way to simplify the processes and increase the degree of automation in critical areas. External factors such as new regulations and regulatory changes, the macroeconomic uncertainty and technological developments are also contributing to the elevated risk level. As a major financial institution, Swedbank, as well as its customers, is exposed to white collar crime, where we are seeing an increase in Internet-related attacks. Swedbank is carefully monitoring developments and has systems and routines in place to identify and manage threats against the bank and our customers. At the end of the quarter Swedbank detected an error in the system for reporting customers mutual fund transactions to the Swedish Tax Agency. The error, which was quickly corrected, affected slightly over 100 000 customers. For the customers, the error means that they cannot submit their 2012 tax information by text message.
Ratings events during the period

On 15 February 2012 Moodys placed 114 European financial institutions on review for downgrade, in connection with which Swedbank AB and Swedbank Mortgages long-term A2 ratings and short-term P-1 ratings were also put on review for downgrade. The reason for the possible downgrade is the potentially negative impact on the Swedish economy of slower growth in the EU and that Swedish banks are not immune to the difficulties facing the global financial markets. Moodys stated that it may therefore downgrade on a number of rating factors such as economic stability, business model and risk positioning, as well as liquidity, profitability and capital. The observation period for the Swedish banks is expected to conclude in May.
Events after 31 March 2012

Swedbank Robur is taking over management rights to the Folksam LO funds, whose assets under management amount to about SEK 40bn. The capital had already been managed by Swedbank Robur. The difference now is that all fund administration will be handled by Swedbank Robur. The transfer is conditional on the approval of the Swedish Financial Supervisory Authority and possibly other authorities.
Other events
Swedbanks Annual General Meeting (AGM) on 27 March elected Charlotte Strmberg as a new member of the Board of Directors. Current Board members Olav Fjell, Ulrika Francke, Gran Hedman, Lars Idermark, Anders Igel, Pia Rudengren, Anders Sundstrm, Karl Henrik Sundstrm and Siv Svensson were re-elected. Lars Idermark was re-elected as Chair of the Board of Directors.
Page 10 of 45
Retail

Continued positive income trend Efficiency improvements produce lower costs
Income statement
SEKm Net interest income Net commissions Net gains and losses on financial items at fair value Share of profit or loss of associates Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Credit impairments Operating profit Tax expense Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Non-controlling interests Return on allocated equity, % Credit impairment ratio, % Total provision ratio for impaired loans, % Share of impaired loans, gross, % Cost/income ratio Full-time employees Q1 2012 3 407 1 261 50 202 203 5 123 892 42 1 385 23 2 342 2 781 24 2 757 708 2 049 2 045 4 26.5 0.01 90 0.18 0.46 4 920 Q4 2011 3 244 1 259 59 159 183 4 904 937 14 1 509 26 2 486 2 418 216 2 202 532 1 670 1 668 2 25.7 0.09 90 0.19 0.51 4 946 % 5 0 -15 27 11 4 -5 -8 -12 -6 15 -89 25 33 23 23 100 Q1 2011 2 918 1 314 43 170 168 4 613 942 22 1 429 22 2 415 2 198 5 2 193 576 1 617 1 613 4 28.5 0.00 98 0.18 0.52 5 193 % 17 -4 16 19 21 11 -5 91 -3 5 -3 27 26 23 27 27 0
-1
-5
During the quarter Swedbank changed how transactions with the savings banks are reported. The change has no effect on the result; but effects net interest income, net commissions as well as other expenses. The retail operations of the Nordic branches have been transferred from Large Corporates & Institutions to Retail. In addition, a number of product and staff functions were transferred to Group Functions & Other, including coordination responsibility for the Swedish insurance operations. Comparative figures have been restated. Development January-March The Swedish economy seems to have stabilised slightly after weakening in late 2011. This was mainly true of domestic demand, and specifically of household finances. There is still considerable uncertainty, however, and developments could quickly take a turn for the worse. Profit for the quarter increased by 27 per cent year-onyear to SEK 2 045m, mainly due to improved net interest income and lower expenses. Net interest income rose by 17 per cent compared with the same period in the previous year, primarily as a result of the repricing of mortgages and corporate credit. The lending margin on new mortgages stabilised during the first quarter. Deposit margins were under pressure from lower interest rates. Interest rate sensitivity is highest with respect to current accounts, which represent nearly one fifth of the total deposit volume. Household deposits decreased by 1 per cent during the first quarter, while the corporate volume decreased by 3 per cent, with small businesses and the public sector
accounting for the biggest decreases. Swedbanks share of household deposits was 23 per cent (23 per cent as of 31 December 2011), while its share of corporate deposits was 16 per cent (16). The slowdown in the mortgage lending market continued at the start of 2012. Volume growth fell on an annual basis to 5 per cent, against 8 per cent a year earlier, and housing prices declined by 1 per cent for tenant owned apartments and 4 per cent for singlefamily homes in the last 12-month period. In recent months prices have again begun to climb. Swedbanks mortgage lending volume increased by 1 per cent. Its share of mortgage growth in January-February was 11 per cent and its share of the total mortgage market was 26 per cent (26 per cent as of 31 December 2011). Corporate credit demand improved during the quarter and lending volume rose by 2 per cent. A slight adjustment in pricing was made for this segment. As a result of the higher capital requirements announced in autumn 2011, we expect continued price adjustments. The bank's market share was 17 per cent (17 per cent as of 31 December 2011).
The loan-to-deposit ratio was 251 (244). Net commission income decreased by 4 per cent against the same period in 2011. The weak stockmarket last autumn adversely affected net commission income due to lower assets under management. The relationship with customers continues to improve thanks to our distinctive offerings, which are closely linked to ongoing advisory services. In total, 15 per cent of the bank's private customers now take advantage of a service concept, as do 23 per cent of customers in the small business, non-profit, and forestry and agriculture segments. Customers who have selected a service concept use more of the bank's products and services and report higher satisfaction. Expenses decreased by 3 per cent from the previous year. Continuing efforts to improve cash handling and internal processes have helped to reduce costs. The volume of cash decreased by 10 per cent during the quarter and has fallen by more than one third in the last three years. One third of branches no longer handle
cash. Staff and consulting costs decreased as a result of continued work with generation and competence change. Expenses fell by 6 per cent from the previous quarter, mainly because SEK 62m was expensed for employee restructuring during the fourth quarter 2011. The number of employees was reduced by just over 30 during the quarter. The cost/income ratio was 0.46 (0.52). The result for the Swedish insurance unit amounted to SEK 120m (57), an increase of 110 per cent year-onyear. Assets under management amounted to SEK 103bn (100). The levels of credit impairments and impaired loans remain low. The share of credit impairments was 0.18 per cent (0.19). During the quarter two branches were merged into larger units as part of the ongoing review of the retail network.
Retail, Swedbanks dominant business area, is responsible for all Swedish customers except for large corporates and financial institutions. Banking services are sold through Swedbanks own branch network, the Telephone Bank, the Internet Bank and the savings banks distribution network. The business area also includes a number of subsidiaries as well as the retail operations in Denmark, Norway and Finland.
Large Corporates & Institutions

Good business activity and earnings Strong performance and increased market shares for bond issues Positive results from cost overhaul
Income statement
SEKm Net interest income Net commissions Net gains and losses on financial items at fair value Share of profit or loss of associates Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Credit impairments Operating profit Tax expense Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Non-controlling interests Return on allocated equity, % Credit impairment ratio, % Total provision ratio for impaired loans, % Share of impaired loans, gross, % Cost/income ratio Full-time employees Q1 2012 887 434 648 6 5 1 980 294 106 303 10 713 1 267 0 14 1 253 430 823 823 0 19.1 0.02 135 0.12 0.36 1 038 Q4 2011 1 051 269 224 -5 -5 1 534 422 13 379 17 831 703 17 4 682 252 430 430 0 12.3 0.00 134 0.13 0.54 1 076 84 71 91 91 % -16 61 Q1 2011 823 420 366 1 727 2 337 313 83 334 9 739 1 598 0 -105 1 703 446 1 257 1 257 0 31.2 -0.14 115 0.22 0.32 1 114 -26 -4 -35 -35 % 8 3 77 -99 -15 -6 28 -9 11 -4 -21
29 -30 -20 -41 -14 80
-4
-7
During the quarter the retail operations of the Nordic branches were transferred from Large Corporates & Institutions to Retail. In addition, a number of product and staff functions were transferred to Group Functions & Other. Comparative figures have been restated. Development January-March The first quarter saw an increased risk appetite and optimism in the financial markets. Interest rate concerns eased in the eurozone and a settlement was reached among lenders on a restructuring of Greek government bonds. Another round of loans from the ECB as part of its Long-Term Refinancing Operation (LTRO) gave European banks access to financing at 1 per cent interest for three years. The yields on long-term Swedish government bonds remained on a continued low level, despite a slight increase at the end of the quarter. Profit for the quarter amounted to SEK 823m (1 257), a decrease of 35 per cent compared with the same period in 2011. The first quarter 2011 included one-off revenue of SEK 716m from the settlement with the Lehman Brothers bankruptcy estate. Net interest income increased by 8 per cent against the same period 2011. Repricing of lending contributed positively, and net interest income for large corporates amounted to approximately SEK 650m, up 51 per cent year-on-year. Net interest income decreased by 16 per cent compared with the previous quarter. The fourth quarter 2011 included one-off interest income of SEK 206m related to loans assumed from Lehman Brothers. Net interest income for large corporates rose by 16 per cent from the previous quarter. Lending decreased by SEK 1bn from the beginning of the year to SEK 133bn. Deposits rose by SEK 12bn to SEK 74bn. The performance in the large corporate sector was positive during the first quarter and business activity was good in most sectors. A high level of corporate bond issues led to several major transactions at the same time that the customer-oriented business model resulted in good business growth together with other parts of the bank. Tighter requirements from authorities, including on capital adequacy and liquidity, contributed to rising loan margins for the market in general. Net commission income rose by 3 per cent year-onyear. Compared with the previous quarter, net commission income rose by 61 per cent. The Norwegian corporate finance operations in particular reported higher activity and earnings during the quarter, with contributions from advisory services for new issues and M&A activity.
Page 13 of 45
Net gains and losses on financial items at fair value increased by 77 per cent compared with the same period of 2011 and by 189 per cent compared with the previous quarter, mainly due to better earnings in fixed income and currency trading. Advice on interest rate derivatives also contributed to solid earnings, as low interest rates led to a high level of business activity and continued demand in the area. The result for equity trading also increased during the first quarter. An increased risk appetite and more optimistic sentiment in the equity market led to higher liquidity. The leading OMXS30 index rose. The bank was able to capitalise on market fluctuations during the quarter, which contributed to solid earnings in the area. During the quarter business activity and the volume of bond issues was high. Swedbanks total share of the SEK bond market (excluding government bonds) reached around 26 per cent during the period, making it the market leader. In the corporate segment the bank raised its share to 21 per cent and was the second largest player in SEK. In Norway its share of the corporate segment grew to15 per cent, making Swedbank the fourth largest player in NOK. The bank
also improved its market shares in currencies, mainly for customer-oriented solutions, where it maintained a high level of activity during the quarter, at the same time that total turnover in the market declined. Total expenses decreased by 4 per cent year-on-year. The cost analysis and operational changes launched during the second half of 2011 have paved the way for increased cost efficiencies and improved results. Expenses decreased by 14 per cent compared with the previous quarter. Non-recurring costs of SEK 166m were booked in the fourth quarter for employee restructuring among other things. The provision for variable staff costs increased by SEK 93m from the previous quarter due to a higher risk-adjusted result. In late 2011 Swedbank was given a mandate to arrange Intrum Justitias MTN programme and was one of two issuing institutions for the first bond issue in March 2012. The bank also served as a financial advisor and responsible bank in the bond issue by the real estate company Klvern. In Norway Swedbank was one of two issuers to arrange a bond issue by Tele2
Large Corporates & Institutions is responsible for large corporates, financial institutions and banks as well as for trading and capital market products. Operations are carried out by the parent bank in Sweden, branches in Norway, Denmark, Finland, the US and China, and through the trading and capital market operations in subsidiary banks in Estonia, Latvia and Lithuania.
Baltic Banking

Lower Euribor puts net interest income under pressure Growing number of active customers Increased deposit volumes
Income statement
SEKm Net interest income Net commissions Net gains and losses on financial items at fair value Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Impairment of tangible assets Credit impairments Operating profit Tax expense Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Return on allocated equity, % Credit impairment ratio, % Total provision ratio for impaired loans, % Share of impaired loans, gross, % Cost/income ratio Full-time employees Q1 2012 912 371 63 106 1 452 188 20 379 33 620 832 0 -2 -134 968 77 891 891 14.5 -0.45 56 11.64 0.43 4 109 Q4 2011 901 380 84 156 1 521 221 5 461 32 719 802 1 913 21 -117 -1 015 71 -1 086 -1 086 -18.9 -0.37 55 12.57 0.47 4 257 % 1 -2 -25 -32 -5 -15 -18 3 -14 4 Q1 2011 997 317 55 102 1 471 199 5 414 33 651 820 0 5 -382 1 197 126 1 071 1 071 13.9 -1.17 56 15.38 0.44 4 396 % -9 17 15 4 -1 -6 -8 0 -5 1
15 8
-65 -19 -39 -17 -17
-3
-7
During the quarter a number of product and staff functions were transferred to Group Functions & Other, including coordination responsibility for the Baltic insurance operations. Comparative figures have been restated. Development January-March As expected, GDP growth slowed in the Baltic countries in late 2011 in line with a weaker global outlook. During the fourth quarter 2011 GDP grew by 4.5 per cent in Estonia, 5.7 per cent in Latvia and 4.4 per cent in Lithuania compared with the same period in 2010. The Baltic economies have become more resilient to external shocks, and although a further slowdown is anticipated in 2012 the three countries are expected to maintain positive growth as exports and domestic demand continue to increase. Unemployment has fallen and incomes have gradually begun to rise at the same time that inflation is retreating. In addition, corporate productivity and competitiveness have risen. Profit amounted to SEK 891m for the first quarter of 2012, compared with SEK 1 071m a year earlier. The decrease was mainly due to lower net recoveries, which amounted to SEK 134m (382) in the first quarter. Income decreased by 1 per cent in local currency compared with the previous year, mainly due to lower net interest income. Net interest income fell by 9 per cent in local currency. Lower market rates and continued lending portfolio amortisation had a negative impact on net interest income, while increased deposit volumes had a positive impact. Compared with the previous quarter, net interest income increased by 3 per cent in local currency. The fourth quarter 2011 net
interest income was charged with SEK 47m due to a one-off accounting adjustment. A change in the internal capital allocation affected net interest income positively by approximately SEK 50m compared with the fourth quarter 2011. Despite improvements in the Baltic economies, lending volumes continued to decrease during the first quarter. This was mainly due to continued uncertainty in the global markets and persistent deleveraging in many sectors. Lending volumes in local currency decreased by 7 per cent compared with 31 March 2011 and by 2 per cent compared with the previous quarter. The largest year-on-year decrease in the lending portfolio was in Latvia (-12 per cent), followed by Estonia (-6 per cent) and Lithuania (-5 per cent). The largest volume decrease came from the corporate segment, despite that new sales activity was strongest in this segment. The loan portfolio is expected to continue to shrink in the near future in all three countries as new lending is not yet able to cover the effect of amortisations and the ongoing work-out process. Although there is a strong pipeline for new corporate lending, it has not materialised in terms of actual demand due to global economic uncertainty. Swedbanks market share in lending was 27 per cent as of 29 February (27 per cent as of 31 December 2011).
Deposits increased by 9 per cent year-on-year and remained almost flat from the previous quarter in local currency. Compared to last year, the positive trend is evident in all three Baltic countries, in both private and corporate segments. Swedbanks deposit market share was 29 per cent as of 29 February (29 per cent as of 31 December 2011). The loan-to-deposit ratio was 120 per cent (121 per cent as of 31 December 2011). Net commission income increased by 17 per cent in local currency compared with the same period a year earlier. Last years first quarter result was negatively affected by a fine of EUR 4m (SEK 35m) related to card fees in Latvia. Excluding the fine, net commission income increased by 5 per cent in local currency. The increase was mainly driven by higher commission income from payment services. This reflects a larger number of active customers and more customer transactions. The number of active customers increased by 175 000 since the first quarter 2011 to slightly over 2.4 million. Expenses decreased by 5 per cent in local currency from the previous year, primarily due to lower IT and other expenses. Fixed staff costs decreased by 6 per cent during the period as the number of full-time employees was reduced by 287 from the previous year. The cost/income ratio was 0.43 (0.44). Cost efficiency
remains a high priority in an environment of slower growth. Net recoveries amounted to SEK 134m, compared with SEK 382m for the first quarter 2011. Credit recoveries were generated in the corporate portfolios in all three countries, while the private portfolios in Latvia and Lithuania posted additional impairments. Impaired loans, gross, continued to decline in the first quarter and amounted to SEK 15bn (SEK 21bn on 31 March 2011). The improvement in portfolio quality was mainly due to ratings upgrades and increased collateral values; in addition write-offs have contributed to lower impaired loans. The result for the Baltic insurance units amounted to SEK 90m for the first quarter 2012, an increase of 55 percent year-on-year. Assets under management amounted to SEK 3.3bn (3.5). Baltic Banking will continue to strengthen its customeroriented business model in 2012 in order to transition to the next-generation banking model. This is based on electronic channels for basic banking services and fewer branches, which will be used mainly to advise customers with more complex needs.
Baltic Banking has business operations in Estonia, Latvia and Lithuania. The banks services are sold through Swedbanks own branch network, the Telephone Bank and the Internet Bank.
Asset Management

Increased inflow in equity funds Fund consolidations as planned
Income statement
SEKm Net interest income Net commissions Net gains and losses on financial items at fair value Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Operating profit Tax expense Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Return on allocated equity, % Cost/income ratio Full-time employees Fund assets under management, SEKbn Discretionary assets under mangement, SEKbn Total assets under mangement, SEKbn Q1 2012 4 374 5 0 383 93 11 84 12 200 183 0 183 46 137 137 31.2 0.52 271 474 274 748 Q4 2011 0 380 -1 2 381 113 9 99 12 233 148 30 118 29 89 89 21.0 0.61 286 446 271 717 % -2 Q1 2011 0 403 -5 -2 396 91 14 86 12 203 193 0 193 48 145 145 27.1 0.51 282 477 255 732 % -7
1 -18 22 -15 0 -14 24 55 59 54 54
-3 2 -21 -2 0 -1 -5 -5 -4 -6 -6
-5 6 1 4
-4 -1 7 2
During the quarter responsibility for one staff function was transferred to Group Functions & Other. Comparative figures have been restated. equity markets recovered during the first quarter, Development January-March average assets under management are lower than the Volatility in the financial markets diminished during the same period 2011. Income from institutional asset first quarter, which affected fund flows, with inflows to management excluding Swedbank Roburs funds equity funds and outflows from fixed income funds. amounted to SEK 30m. During the fourth quarter During the period the total inflow to Swedish funds was performance fees of SEK 25m were posted for the fullSEK 6.8bn, which included an inflow of SEK 27bn to year 2011. equity funds and SEK 3.4bn to mixed funds as well as an outflow of SEK 21.3bn from fixed income funds and Total assets under management at the end of the period SEK 2.3bn from other funds. amounted to SEK 748bn, compared with SEK 717bn at the beginning of the year. The market share measured The total gross inflow to Swedbank Roburs funds was as assets under management was 23.4 per cent (23.5). SEK 21.6bn, while the net flow was SEK -1.4bn. Mixed funds had the biggest inflow at SEK 1bn. Expenses decreased by 1 per cent compared with the previous year, mainly due to the lower number of The consolidation of similar of near-similar funds is employees. Compared with the fourth quarter, expenses continuing according to plan, the biggest of which is the decreased by 14 percent. During the fourth quarter SEK upcoming merger of five public savings funds into 16m was expensed for employee restructuring. Allemansfond Komplett. During the quarter Swedbank Robur received a number Quarterly profit amounted to SEK 137m, which is slightly of awards. In Finland, MorningStar named Roburs lower than the same period in 2011, but an increase of America Fund the best in the category US Large-Cap 54 per cent compared with the fourth quarter 2011. Equity Funds. The ratings agency Lipper (Thomson Reuters) named Roburs Small Cap Nordic fund the Commission income decreased slightly compared with best in the category Equity Nordic over a three-and the same period in the previous year due to the weak 10-year perspective. market during the second half of 2011. Although the
Asset Management comprises the Swedbank Robur Group and its operations in fund management, institutional and discretionary asset management. Asset Management is represented in Swedbanks four home markets.
Group Functions & Other

Income statement
SEKm Net interest income Net commissions Net gains and losses on financial items at fair value Share of profit or loss of associates Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Impairment of tangible assets Credit impairments Operating profit Tax expense Profit for the period from continuing operations Profit for the period from discontinued operations, after tax Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Full-time employees Q1 2012 -1 -46 -7 0 507 453 765 29 -198 152 748 -295 0 42 268 -605 -134 -471 0 -471 -471 5 712 Q4 2011 -221 -14 193 1 562 521 920 6 -233 190 883 -362 0 149 -277 -234 -94 -140 4 -136 -136 5 722 0 % 100 Q1 2011 -225 -9 -204 0 428 -10 776 22 -215 148 731 -741 0 -3 -490 -248 -14 -234 0 -234 -234 6 161 -7 % -100 -97 18 -1 32 -8 3 2 -60
-10 -13 -17 -15 -20 -15 -19 -72
43
As of the first quarter 2012 Russia, Ukraine and Ektornet are reported under Group Functions & Other. In addition, a number of product and staff functions have been transferred to Group Functions & Other. Comparative figures have been restated. Development January-March Group Functions & Other comprises the bank's group functions (including Group Business Support) as well as Russia, Ukraine and Ektornet. Income for Group Functions & Other consists of net interest income, which mainly comes from Group Treasury, Russia and Ukraine, as well as net gains and losses on financial items at fair value from Group Treasury. Other income mainly consists of revenue from the savings banks as well as sales revenue from Ektornet. The expenses are mainly attributable to Group Business Support. Expenses for Group Functions & Other increased by 2 per cent compared with the previous year to SEK 748m (731). Expenses, excluding the net of services purchased and sold internally, decreased marginally. The decrease was mainly due to lower consulting costs, which were reduced by SEK 42m, as well as lower staff costs, mainly due to the lower number of employees in Ukraine. Group Functions & Other comprises a total of 5 712 full-time positions. Group Business Support Group Business Support (GBS) comprises the Swedbank Groups business support units. GBS also provides services to the savings banks. In GBSs model, revenue from Swedbanks customers is posted by each business area and GBS receives compensation to cover its expenses. External revenue for GBS largely comes from the savings banks, primarily for IT services.
GBSs strategy is to improve the bank's productivity by reducing complexity, cutting lead times, capitalising on economies of scale and better utilising available competence. GBS was established in 2011 and currently consists of around 3 000 employees in Group IT, Group Products and Group Shared Services in Sweden, Estonia, Latvia and Lithuania. GBS is focusing in 2012 on reducing the number of products, concentrating the range of internal services, shortening wait times for the bank's customers, concentrating operations within GBS by consolidating them in fewer locations, and increasing the use of outsourcing. Work in these areas was begun during the first quarter and will gradually be implemented in 2012 and going forward. Expenses for GBS mainly consist of staff, consulting and computer costs for IT maintenance and development. GBS will cut costs, principally by reducing spending on consultants, slashing the number of suppliers and implementing workforce reductions. In 2011 the operations now included in GBS reported expenses of SEK 4 854m (excluding internally sold services). Expenses amounted to SEK 1 152m for the first quarter 2012 (1 116). The increase was mainly due to higher staff and IT costs. Group IT manages all of Swedbanks IT operations and development. In addition to developing and improving applications, Group IT is involved in a project to establish a new computer centre. The cost cuts within Group IT pertain to a temporary reduction in IT
development in 2012 as well as a more long-term reduction in expenses to manage the Group's IT systems. Group IT had 1 415 employees, of whom around 60 per cent are in Sweden and 40 per cent in the Baltic countries. Total expenses amounted to SEK 686m (679) during the first quarter. The increase was largely due to higher consulting costs for development services. Group Products (GP) comprises the product units for large parts of Swedbank. The goal is to supply the business units with the products they need so that they can focus on their customers. Group Insurance (life insurance operations in Sweden and the Baltic countries as well as non-life insurance in the Baltic countries) and Group Lending (commercial, consumer and real estate credit as well as leasing) were established during the first quarter. GP also includes from previously Group Cards (card issuance and payment processing in the Nordic and Baltic regions), Group Payments & Cash Management (Swedbanks solutions for payments and cash management), Group Mobile Payments (established in 2011 and the most expansive unit, which is developing solutions to strengthen Swedbanks position in day-to-day payments), Group Transfer Agency (responsible for managing the purchase and sale of funds shares) and Group Trade Finance (manages risks and liquidity for export and import transactions as well as factoring). Group Products had 1 003 employees and total expenses of SEK 489m (522) during the first quarter 2012. The decrease was mainly due to lower costs for consultants and temporary staffing. Group Shared Services (GSS) assists Swedbanks business units with retail, property, physical security, HR administration, purchasing and training services. GSS had 576 employees and total expenses of SEK 99m (93) during the first quarter 2012. Group Treasury Group Treasury is responsible for the banks funding, liquidity and capital planning, including internal control and pricing. Allocation of capital to the business areas is determined by the stress tests conducted annually as part of the bank's Internal Capital Adequacy Assessment Process (ICAAP). The aim of the process is that the business areas will largely reflect similar businesses driven on an independent basis and the risk profile of each operation. Funding and liquidity are priced in an internal pricing system, where the most important parameters in terms of costs are maturity, interest fixing periods, currency and the need for liquidity reserves. Swedbank is during 2012 engaged in a project to fine-tune control of internal rate setting. Among other things, more accurate pricing for liquidity reserves will be allocated to the business areas. Treasurys result over time will be nearly nil, with the exception of earnings from market risk that may arise through debt- and liquidity management. The fee paid to the National Debt Office for the state guaranteed funding is expensed by Treasury. Between quarters there could be volatility in the reporting of financial instruments, mainly due to changes in valuation effects in accounting. Net interest income during the first quarter amounted to SEK -77m, compared with SEK -399m for the same
period in 2011. The improvement was partly because of the fee for state guaranteed funding decreased by SEK 212m from the first quarter 2011 and partly because the bank's actual funding costs are more accurately reflected in theinternal rate setting. Compared with the fourth quarter 2011, net interest income rose by SEK 236m, of which SEK 112m is attributable to lower fees for the state guaranteed funding. Furthermore, Treasury had higher net interest income from funding and liquidity management. The so-called nose and tail effects in Swedbank Mortgages funding operations was nearly nil during the quarter, but contributed positively by about SEK 40m compared with the fourth quarter. The change in the capital allocation to the business areas affected Treasurys net interest income negatively, mainly due to the allocation to Baltic Banking. Risk hedging by Group Treasury is generally achieved with financial instrument hedging, which can give rise to volatility in reporting between quarters. Net gains and losses on financial items at fair value amounted to SEK 7m during the first quarter 2012, compared with SEK 128m in the fourth quarter 2011. The liquidity portfolio contributed positively to the quarterly result, while valuation effects in basis swaps and other derivatives not subject to hedge accounting were negative. In addition, the quarter included a one-off correction related to outstanding subordinated loans, which negatively affected the result by SEK 250m. Expenses within Group Treasury mainly consist of staff and IT costs. Total expenses amounted to SEK 70m for the first quarter 2012, down SEK 14m from the same period in 2011. Group Treasury had 60 full-time employees. Russia and Ukraine The process of exiting the retail operations in both Russia and Ukraine is progressing according to plan. During the quarter the remainder of the Russian private portfolio was sold, and the loan portfolio will be transferred to the buyer during the second quarter 2012. The result in Russia amounted to SEK 54m (189) for the quarter. Net interest income amounted to SEK 64m, a decrease of 31 per cent compared with the same period in 2011, mainly due to amortisations of the performing part of the loan portfolio. Since the beginning of the year the Russian loan portfolio has decreased by 11 per cent in local currency. Total expenses in Russia decreased by SEK 33m compared with the same period in 2011 due to the continued focus on costs. The number of full-time employees in Russia has been reduced since the beginning of the year from 174 to 160. Credit quality was stable during the quarter. Impaired loans in Russia decreased by 45 per cent. Net recoveries of SEK 64m were the result of continued restructuring of the impaired loans. The result in Ukraine amounted to SEK -325m (365) for the quarter. Net interest income was SEK 62m, a decrease of 35 per cent compared with the same period in 2011, mainly due to amortisations in the performing part of the loan portfolio. Since the beginning of the year the Ukrainian loan portfolio has decreased by 10 per cent in local currency. Total expenses in Ukraine decreased by SEK 14m compared with the same period in 2011 due to a
continued cost focus. The number of full-time employees in Ukraine has been reduced since the beginning of the year from 1 037 to 888. Impaired loans in Ukraine decreased by 7 per cent. In Ukraine credit impairments increased and amounted to SEK 333m for the first quarter, primarily due to additional collective provisions of SEK 200m for lending to private customers as well as for a few large corporate commitments. Ektornet Ektornet manages and develops Swedbanks repossessed assets to recover as much value as possible. The value of repossessed assets decreased during the quarter to SEK 5 751m.
Assets taken over SEKm Sweden Norway Finland Estonia Latvia Lithuania USA Ukraine Total properties Shares Total 31 Mar 2012 308 89 374 557 1 903 675 1 361 397 5 664 87 5 751 31 dec 2011 305 102 709 569 1 721 448 1 415 443 5 712 107 5 819
During the quarter properties were acquired for SEK 524m, at the same time the properties with a book value of SEK 436m were sold with an aggregate capital gain of SEK 54m. The large part of these sales was in Finland. The result for the period amounted to SEK -69m (-8). The result includes operating income of SEK 98m (51) and direct property and hotel expenses of SEK 84m (26). As a result, net operating income amounted to SEK 14m (27). Depreciation amounted to SEK 28m (23), the large part of which related to the properties. The takeover phase is expected to continue in 2012, primarily in Latvia. At the same time sales efforts are intensifying and the volume of repossessed assets is expected to decrease during the year.
Eliminations
Income statement
SEKm Net interest income Net commissions Net gains and losses on financial items at fair value Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Q1 2012 -1 11 0 -220 -210 0 0 -210 0 -210 Q4 2011 -8 17 0 -214 -205 -9 0 -196 0 -205 % 88 -35 -3 -2 Q1 2011 -12 11 0 -225 -226 0 0 -226 0 -226 % 92 0 2 7
-7 -2
7 7
Group eliminations mainly consist of eliminations of internal transactions between Group Functions and the other business areas.
Group Functions & Other comprises, in addition to the Group Functions, Russia, Ukraine and Ektornet. The Group Functions operates across the business areas and serve as strategic and administrative support for them. The Group Functions are Group Business Support, Accounting & Finance (including Group Treasury), Risk (including Compliance). Corporate Affairs, HR and Legal. The Group Executive Committee and Internal Audit are also included in Group Functions.
Financial information - contents

Group Income statement, condensed Statement of comprehensive income, condensed Balance sheet, condensed Statement of changes in equity, condensed Cash flow statement, condensed Notes Note 1 Accounting policies Note 2 Critical accounting estimates Note 3 Changes in the Group structure Note 4 Business segments (business areas) Note 5 Net interest income Note 6 Net commissions Note 7 Net gains and losses on financial items at fair value Note 8 Other expenses Note 9 Credit impairments Note 10 Loans Note 11 Impaired loans etc. Note 12 Assets taken over for protection of claims and cancelled leases Note 13 Credit exposures Note 14 Intangible assets Note 15 Amounts owed to credit institutions Note 16 Deposits from the public Note 17 Debt securities in issue Note 18 Derivatives Note 19 Financial instruments carried at fair value Note 20 Pledged collateral Note 21 Capital adequacy Note 22 Risks and uncertainties Note 23 Related-party transactions Note 24 Swedbanks share Parent company Income statement, condensed Statement of comprehensive income, condensed Balance sheet, condensed Statement of changes in equity, condensed Cash flow statement, condensed Capital adequacy 41 41 42 42 43 43 25 26 26 27 29 30 30 31 31 32 32 33 33 33 34 34 34 35 35 36 37 39 39 39 Page 22 23 23 24 25
More detailed information can be found in Swedbanks fact book, www.swedbank/se/ir, under Financial information and publications.
Income statement, condensed

Group SEKm Interest income Interest expenses Net interest income (note 5) Commission income Commission expenses Net commissions (note 6) Net gains and losses on financial items at fair value (note 7) Insurance premiums Insurance provisions Net insurance Share of profit or loss of associates Other income Total income Staff costs Other expenses (note 8) Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets (note 14) Impairment of tangible assets Credit impairments (note 9) Operating profit Tax expense Profit for the period from continuing operations Profit for the period from discontinued operations, after tax Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Profit for the period from continuing operations Profit for the period from discontinued operations Non-controlling interests Profit for the period from continuing operations Profit for the period from discontinued operations Earnings per share, total operations, SEK1 after dilution1 Earnings per share, continued operations, SEK1 after dilution1 Earnings per share, discontinued operations, SEK1 after dilution1 Equity per share, SEK Return on equity, % Credit impairment ratio, %
1)
Q1 2012 14 121 -8 913 5 208 3 156 -751 2 405 759 429 -271 158 208 443 9 181 2 440 1 743 230 4 413 4 768 0 40 172 4 556 1 127 3 429 0 3 429 3 425 3 425 0 4 4 0 2.21 2.20 2.21 2.20 0.00 0.00 82.04 14.0 0.05
Q4 2011 14 360 -9 393 4 967 3 097 -806 2 291 559 346 -212 134 155 550 8 656 2 651 2 019 277 4 947 3 709 1 960 170 -174 1 753 790 963 4 967 965 962 3 2 1 1 0.88 0.88 0.88 0.88 0.00 0.00 84.40 3.9 -0.05
% -2 -5 5 2 -7 5 36 24 28 18 34 -19 6 -8 -14 -17 -11 29 -76
Q1 2011 12 075 -7 574 4 501 3 195 -739 2 456 255 367 -253 114 171 1 084 8 581 2 467 1 822 224 4 513 4 068 0 2 -972 5 038
% 17 18 16 -1 2 -2 17 7 39 22 -59 7 -1 -4 3 -2 17
-10 -5 -11 -11 -11 -11 0 0
43
1 182 3 856 0 3 856 3 852 3 852 0
100
4 4 0 2.47 2.47 2.47 2.47 0.00 0.00 82.39 16.1 -0.29
The number of shares and the calculation of earnings per share are specified on page 40.
Page 22 of 45
Statement of comprehensive income, condensed

Group SEKm Profit for the period reported via income statement Exchange differences, foreign operations Gains/losses arising during the period Reclassification adjustments to income statement, net gains and losses on financial items at fair value Hedging of net investments in foreign operations: Gains/losses arising during the period Cash flow hedges: Gains/losses arising during the period Reclassification adjustments to income statement, net interest income Share of other comprehensive income of associates Income tax relating to components of other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the period Total comprehensive income attributable to the shareholders of Swedbank AB Non-controlling interests Q1 2012 3 429 -273 -1 140 -429 73 18 57 -415 3 014 -415 4 Q4 2011 967 -1 310 0 1 138 304 77 -18 -396 -205 762 -205 3 33 -5 -88 -79 % Q1 2011 3 856 -194 0 71 -264 101 -3 24 -265 3 591 -265 4 97 63 -28 % -11 41
57 -16 57 0
Balance sheet, condensed

Group SEKm Assets Cash and balance with central banks Loans to credit institutions (note 10) Loans to the public (note 10) Interest-bearing securities Financial assets for which customers bear the investment risk Shares and participating interests Investments in associates Derivatives (note 18) Intangible fixed assets (note 14) Investment properties Tangible assets Current tax assets Deferred tax assets Other assets Prepaid expenses and accrued income Group of assets classified as held for sale Total assets Liabilities and equity Amounts owed to credit institutions (note 15) Deposits and borrowings from the public (note 16) Debt securities in issue (note 17) Financial liabilities for which customers bear the investment risk Derivatives (note 18) Current tax liabilities Deferred tax liabilities Short positions, securities Other liabilities Accrued expenses and prepaid income Provisions Subordinated liabilities Liabilities directly associated with group of assets classified as held for sale Equity of which non-controlling interests of which equity attributable to shareholders of Swedbank AB Total liabilities and equity 31 Mar 2012 169 795 98 373 1 212 564 151 678 103 014 8 400 3 261 88 697 13 702 3 788 4 580 1 401 820 19 046 9 153 248 1 888 520 130 000 603 773 784 607 105 428 80 365 1 357 2 822 22 398 20 484 19 525 3 603 18 659 96 95 403 144 95 259 1 888 520 31 Dec 2011 164 307 97 195 1 211 454 138 311 95 747 2 015 3 111 103 726 13 799 3 910 4 383 2 083 872 7 531 8 371 250 1 857 065 139 598 561 696 781 458 96 449 90 484 472 3 183 30 603 13 059 18 612 3 690 19 531 97 98 133 140 97 993 1 857 065 % 3 1 0 10 8 5 -14 -1 -3 4 -33 -6 9 -1 2 -7 7 0 9 -11 -11 -27 57 5 -2 -4 -1 -3 3 -3 2 31 Mar 2011 11 297 198 682 1 173 981 149 628 102 071 4 457 2 835 60 558 15 707 2 243 3 672 1 306 1 099 9 245 7 750 0 1 744 531 119 204 524 107 738 618 102 601 69 782 669 1 569 23 583 23 177 18 399 4 065 23 079 0 95 678 142 95 536 1 744 531 %
-50 3 1 1 88 15 46 -13 69 25 7 -25 18 8 9 15 6 3 15 80 -5 -12 6 -11 -19
0 1 0 8
Page 23 of 45
Statement of changes in equity, condensed

Group SEKm Shareholders' equity Other Exchange Hedging of net contridifferences, investments in buted subsidiaries foreign equity* and associates operations 17 152 -2 102 -144 Non-controlling interests Total equity
Share capital Opening balance 1 January 2011 Dividends Share based payments to employees Total comprehensive income for the period Closing balance 31 March 2011 Opening balance 1 January 2011 Dividends New share issue Reversal of VAT costs incurred on rights issue 2009 Repurchased shares Share based payments to employees Associates' acquisition of shares in Swedbank AB Business combinations Total comprehensive income for the period Closing balance 31 December 2011 Opening balance 1 January 2012 Dividends Share based payments to employees Associates' acquisition of shares in Swedbank AB Total comprehensive income for the period Closing balance 31 December 2012 24 383 24 383 24 383 32 24 351 24 351 24 351
Cash flow hedges -44
Retained earnings 55 684 -2 995 47
Total 94 897 -2 995 47 3 587 95 536 94 897 -2 995 32 4 142 138 -15 138 95 035 -2 995 47 3 591 95 678 95 035 -3 010 32 35 -6 180 159 -4 2 2 12 064 98 133 98 133 -5 825 87 -6 4 144 3 014 95 403 15 140 140
-200 17 152 17 152 -2 302 -2 102
53 -91 -144
-118 -162 -44
3 852 56 588 55 684 -2 995
35 -6 180 159 -4 -287 17 187 17 187 -2 389 -2 389 280 136 136 312 268 268 11 744 58 408 58 408 -5 825 87 -6 -258 17 187 -2 647 104 240 -261 7 3 425 56 089
35 -6 180 159 -4 12 049 97 993 97 993 -5 825 87 -6 3 010 95 259
In connection to the rights issue in 2009 an assessment was made on the VAT Swedbank AB would have to pay on the transaction costs. This assessment has been changed in the second quarter 2011 based on a new tax case ruling. The VAT provision decreased by SEK 35m. The amount includes increased income tax SEK 12m. *Other contributed equity consists mainly of share premiums.
Page 24 of 45
Cash flow statement, condensed

Group SEKm Operating activities Operating profit Profit for the period from discontinued operations Adjustments for non-cash items in operating activities Taxes paid Increase/decrease in loans to credit institutions Increase/decrease in loans to the public Increase/decrease in holdings of securities for trading Increase/decrease in deposits and borrowings from the public including retail bonds Increase/decrease in amounts owed to credit institutions Increase/decrease in other assets Increase/decrease in other liabilities Cash flow from operating activities Investing activities Business combinations Business disposals Acquisitions of and contributions to associates Acquisitions of other fixed assets and strategic financial assets Disposals/maturity of other fixed assets and strategic financial assets Cash flow from investing activities Financing activities Issuance of interest-bearing securities Redemption of interest-bearing securities Issuance of commercial paper etc. Redemption of commercial paper etc. Dividends paid New share issue Repurchased shares Cash flow from financing activities Cash flow for the period Cash and cash equivalents at the beginning of the period Cash flow for the period Exchange rate differences on cash and cash equivalents Cash and cash equivalents at end of the period 56 262 -55 397 101 529 -92 974 0 0 0 9 420 5 567 164 307 5 567 -80 169 794 253 855 -237 487 319 621 -260 254 -3 010 32 -6 184 66 573 147 260 17 109 147 260 -62 164 307 90 641 -56 088 67 851 -47 470 0 0 0 54 934 -5 675 17 109 -5 675 -137 11 297 4 556 0 -165 474 -1 452 -2 414 -22 965 42 861 -9 004 4 125 -20 923 -4 907 15 423 4 -17 -2 456 69 012 -23 100 -467 28 222 3 448 -32 139 22 655 80 585 5 038 0 1 861 -870 -32 480 10 985 -16 867 -9 439 -16 565 -680 -1 778 -60 795 0 0 0 0 -110 296 186 Jan-Mar 2012 Full-year 2011 Jan-Mar 2011
0 0 -2 -170 1 226 1 054
-2 6 -50 -4 396 4 544 102
Note 1 Accounting policies

The interim report has been prepared in accordance with IAS 34, Interim Financial Reporting. As previously, the Parent Company has prepared its accounts in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies, the directives of the Swedish Financial Supervisory Authority and recommendation RFR 2 of the Financial Reporting Council. The accounting policies applied in the interim report conform to the accounting policies applied in the preparation of the consolidated financial statements and the annual report for 2011 with the exceptions below. The savings banks are compensated for sales to their customers of Swedbanks products and services. In mid-2011 a new agreement entered into force which governs this compensation. Presentation of the compensation in the income statement has been adjusted as of 2012 based on the new agreement, to better illustrate its impact. Comparative figures have been restated; see table. The change affects interest
income, commission expenses and expenses, but not the result in its entirety. The operating segments were changed in 2012 to coincide with the organisational changes implemented in Swedbanks business area organisation. Responsibility for the retail operations of the Nordic branches has been transferred from Large Corporates & Institutions to Retail. Responsibility for coordinating the life insurance operations in Sweden and the Baltic countries and for the Baltic P&C insurance operations has been transferred from Retail and Baltic Banking to Group Functions & Other. Furthermore, a number of product and staff functions have been transferred from Retail, Large Corporates & Institutions, Baltic Banking and Asset Management to Group Functions & Other. Russia, Ukraine and Ektornet are no longer reported as separate segments and instead are included in Group Functions & Other. Comparative figures have been restated.
New or revised IFRS and IFRIC interpretations have not had a significant effect on the financial position, results
Reporting of av compensation to Savings banks Group SEKm Interest income from the public Interest income Net interest income Other commission expenses Commission expenses Net commission income Other purchased services Other expenses Total expenses
or disclosures pertaining to the Group or parent company.

New reporting Q1 2011 10 802 12 075 4 501 48 739 2 456 312 1 822 4 513 Jan-Mar 2011 10 802 12 075 4 501 48 739 2 456 312 1 822 4 513 Previous reporting Q1 2011 10 828 12 101 4 527 203 894 2 301 183 1 693 4 384 Jan-Mar 2011 10 828 12 101 4 527 203 894 2 301 183 1 693 4 384
Note 2 Critical accounting estimates

The Group uses various estimates and assumptions about the future to determine the value of certain assets and liabilities. The most important assumptions in terms of amount are made with regard to provisions for impairments and impairment testing of goodwill. changes were based on the losses that executive management judged as most likely against the backdrop of the current economic outlook within the range of reasonable assumptions.
Impairment testing of goodwill Provisions for impairments

For loans that have been identified as impaired as well as portfolios of loans with similar credit terms affected by a loss event, assumptions are made as to when in the future the cash flows will be received as well as their size. Provisions for impairments are made for the difference between the present value of these projected cash flows and the claims carrying amount. Decisions are therefore based on various estimates and executive managements judgements about current market conditions. Portfolio provisions are based on loss estimates made in accordance with capital adequacy rules. The Groups provisions in the Baltic operations decreased during the year from SEK 8 819m to SEK 8 138m. Provisions in the Ukrainian operations increased from SEK 3 856m to SEK 3 908m. The When goodwill is tested for impairment, future cash flows are estimated for the cash-generating unit that the goodwill refers to and has been allocated to. As far as possible, the assumptions that are used, or part of those assumptions, are based on outside sources. Nevertheless, the calculation largely depends on the executive management's own assumptions. The assumptions are made based on indefinite ownership of the asset. The Groups goodwill amounted to SEK 11 695m as of 31 March 2012, of which SEK 8 976m related to the investment in the Baltic operations. On the balance sheet date there were no indications of a need for impairment testing.
Note 3 Changes in the Group structure

Internal structural changes
On 1 January the assets and liabilities of the Norwegian subsidiary First Securities AS were sold to Swedbank ABs Norwegian branch. Reporting of the operating segments has not been affected by the sale.
Page 26 of 45
Note 4 Business segments (business areas)

Jan-Mar 2012 SEKm Retail Large Corporates & Institutions Baltic Banking Asset Management Group Functions & Other Eliminations Group
Income statement
Net interest income Net commissions Net gains and losses on financial items at fair value Share of profit or loss of associates Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Impairment of tangible assets Credit impairments Operating profit Tax expense Profit for the period from continuing operations Profit for the period from discontinued operations, after tax Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Non-controlling interests 3 407 1 261 50 202 203 5 123 892 42 1 385 23 2 342 2 781 0 0 24 2 757 708 2 049 0 2 049 2 045 4 887 434 648 6 5 1 980 294 106 303 10 713 1 267 0 0 14 1 253 430 823 0 823 823 0 912 371 63 0 106 1 452 188 20 379 33 620 832 0 -2 -134 968 77 891 0 891 891 0 4 374 5 0 0 383 93 11 84 12 200 183 0 0 0 183 46 137 0 137 137 0 -1 -46 -7 0 507 453 765 29 -198 152 748 -295 0 42 268 -605 -134 -471 0 -471 -471 0 -1 11 0 0 -220 -210 0 0 -210 0 -210 0 0 0 0 0 0 0 0 0 0 0 5 208 2 405 759 208 601 9 181 2 232 208 1 743 230 4 413 4 768 0 40 172 4 556 1 127 3 429 0 3 429 3 425 4
Balance sheet, SEKbn

Cash and balances with central banks Loans to credit institutions Loans to the public Bonds and other interest-bearing securities Financial assets for which customers bear inv. risk Investments in associates Derivatives Total tangible and intangible assests Other assets Total assets Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Financial liabilities for which customers bear inv. risk Derivatives Other liabilities Subordinated liabilities Total liabilities Allocated equity Total liabilities and equity 0 33 907 0 101 2 0 3 9 1 055 69 362 0 103 0 489 0 1 023 32 1 055 7 286 174 78 0 0 105 1 22 673 223 99 18 0 103 211 0 654 19 673 2 0 116 2 2 0 0 10 2 134 0 96 1 2 0 10 0 109 25 134 0 2 0 0 0 0 0 1 1 4 0 0 0 0 0 2 0 2 2 4 161 204 17 82 0 1 31 7 675 1 178 259 55 779 0 25 24 19 1 161 17 1 178 0 -427 -1 -10 0 0 -47 0 -670 -1 155 -421 -8 -13 0 -48 -665 0 -1 155 0 -1 155 170 98 1 213 152 103 3 89 22 39 1 889 130 604 785 105 80 71 19 1 794 95 1 889
Key figures
Return on allocated equity, % Loan/deposit ratio, % Credit impairment ratio, % Share of impaired loans, gross, % Cost/income ratio Risk-weighted assets, SEKbn Full-time employees 26.5 251 0.01 0.18 0.46 212 4 920 19.1 179 0.02 0.12 0.36 135 1 038 14.5 120 -0.45 11.64 0.43 99 4 109 31.2 0.0 0.0 0.0 0.52 3 271 -8.0 28 4.56 18.35 1.65 46 5 712 14.0 202 0.05 1.67 0.48 495 16 050
Page 27 of 45
Jan-Mar 2011 SEKm
Retail
Large Corporates & Institutions
Baltic Banking
Asset Management
Group Functions & Other
Eliminations
Group
Income statement
Net interest income Net commissions Net gains and losses on financial items at fair value Share of profit or loss of associates Other income Total income Staff costs Variable staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of intangible assets Impairment of tangible assets Credit impairments Operating profit Tax expense Profit for the period from continuing operations Profit for the period from discontinued operations, after tax Profit for the period Profit for the period attributable to the shareholders of Swedbank AB Non-controlling interests 2 918 1 314 43 170 168 4 613 942 22 1 429 22 2 415 2 198 823 420 366 1 727 2 337 313 83 334 9 739 1 598 997 317 55 102 1 471 199 5 414 33 651 820 0 5 -382 1 197 126 1 071 0 1 071 1 071 0 403 -5 -2 396 91 14 86 12 203 193 -225 -9 -204 428 -10 776 22 -215 148 731 -741 -3 -490 -248 -14 -234 0 -234 -234 -12 11 4 501 2 456 255 171 1 198 8 581 2 321 146 1 822 224 4 513 4 068 0 2 -972 5 038 1 182 3 856 0 3 856 3 852 4
-225 -226 0 0 -226 -226
5 2 193 576 1 617 0 1 617 1 613 4
-105 1 703 446 1 257 0 1 257 1 257 0
193 48 145 0 145 145
Balance sheet, SEKbn

Cash and balances with central banks Loans to credit institutions Loans to the public Bonds and other interest-bearing securities Financial assets for which customers bear inv. risk Investments in associates Derivatives Total tangible and intangible assests Other assets Total assets Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Financial liabilities for which customers bear inv. risk Derivatives Other liabilities Subordinated liabilities Total liabilities Allocated equity Total liabilities and equity 2 28 882 0 100 1 0 3 8 1 024 69 342 0 101 0 478 12 1 002 22 1 024 1 310 148 76 0 0 77 0 16 628 253 86 18 0 76 174 5 612 16 628 2 0 127 2 2 0 0 13 0 146 0 89 1 2 0 18 7 117 29 146 0 3 0 0 0 0 0 1 1 5 0 0 0 0 0 3 0 3 2 5 6 318 18 87 0 2 14 5 626 1 076 252 15 738 0 24 15 5 1 049 27 1 076 0 -460 -1 -15 0 0 -30 0 -628 -1 134 -455 -8 -18 0 -30 -617 -6 -1 134 -1 134 11 199 1 174 150 102 3 61 22 23 1 745 119 524 739 103 70 71 23 1 649 96 1 745
Key figures
Return on allocated equity, % Loan/deposit ratio, % Credit impairment ratio, % Share of impaired loans, gross, % Cost/income ratio Risk-weighted assets, SEKbn Full-time employees 28.5 251 0.00 0.18 0.52 227 5 211 31.2 176 -0.14 0.22 0.32 146 1 114 13.9 141 -1.17 15.38 0.44 120 4 396 27.1 -3.9 -12.96 8.86 -73.10 23 6 143 16.1 227 -0.29 2.28 0.53 519 17 146
0.51 3 282
0.00
Page 28 of 45
Business area accounting policies

The operating segment reporting is based on Swedbanks accounting policies, organisation and management accounts. Market-based transfer prices are applied between operating segments, while all expenses within Group Business Support and Group Staffs are transfer priced at cost to the operating segments. Executive management expenses are not distributed. The net of services purchased and sold internally is recognised as other expenses in the income statements of the operating segments. Cross-border transfer pricing is applied according to OECD transfer pricing guidelines. The Groups equity attributable to shareholders is allocated to each operating segment based on capital adequacy rules and estimated capital requirements based on the banks Internal Capital Adequacy Assessment Process (ICAAP). Return on equity for the operating segments is based on operating profit less estimated tax and non-controlling interests in relation to average allocated equity. During the first quarter 2012, the assumptions for the internal capital allocation have been changed due to expected changes in regulations for capital adequacy requirements. This change leads to an increase in allocated capital to all business areas, which affect net interest income positively for all business areas and negatively for Group Treasury. A total of SEK 17bn has been allocated to the business areas from Treasury, compared to the fourth quarter 2011.
Note 5 Net interest income

Group SEKm Interest income Loans to credit institutions Loans to the public Interest-bearing securities Derivatives Other Total interest income Interest expenses Amounts owed to credit institutions Deposits and borrowings from the public of which deposit guarantee fees Debt securities in issue of which commissions for funding with government guarantee Subordinated liabilities Derivatives Other of which government stabilisation fund fee Total interest expenses Net interest income Net interest margin Q1 2012 335 12 619 749 256 162 14 121 -321 -2 044 -134 -5 689 -133 -276 -418 -165 -144 -8 913 5 208 1.12 Q4 2011 436 12 743 916 -6 271 14 360 -345 -2 197 -131 -5 965 -245 -341 -348 -197 -159 -9 393 4 967 1.07 % -23 -1 -18 -40 -2 -7 -7 2 -5 -46 -19 20 -16 -9 -5 5 Q1 2011 347 10 802 619 245 62 12 075 -270 -1 482 -108 -5 206 -345 -317 -29 -270 -121 -7 574 4 501 1.05 % -3 17 21 4 17 19 38 24 9 -61 -13 -39 19 18 16
Page 29 of 45
Note 6 Net commissions

Group SEKm Commission income Payment processing Asset management Life insurance Brokerage Other securities Corporate finance Lending Guarantees Deposits Real estate brokerage Non-life insurance Other commission income Total commission income Commission expenses Payment processing Asset management Life insurance Brokerage Other securities Lending and guarantees Other commission expenses Total commission expenses Total net commissions Q1 2012 1 284 951 112 113 48 111 168 53 21 33 17 245 3 156 -553 -27 -39 0 -65 -13 -54 -751 2 405 Q4 2011 1 400 930 135 101 13 -14 185 49 6 35 25 232 3 097 -601 -31 -48 -5 -61 -17 -43 -806 2 291 % -8 2 -17 12 Q1 2011 1 268 1 032 131 152 37 49 214 54 20 35 7 196 3 195 -543 -27 -56 0 -49 -16 -48 -739 2 456 % 1 -8 -15 -26 30 -21 -2 5 -6 25 -1 2 0 -30 33 -19 13 2 -2
-9 8 -6 -32 6 2 -8 -13 -19 7 -24 26 -7 5
Note 7 Net gains and losses on financial items at fair value

Group SEKm Valuation category, fair value through profit or loss Shares and related derivatives of which dividend Interest-bearing securities and related derivatives Loans Financial liabilities Other financial instruments Total fair value through profit or loss Hedge accounting Inefficiency in hedge accounting at fair value of which hedging instruments of which hedged items Ineffective part in hedging of net investments in foreign operations Total hedge accounting Loan receivables at amortised cost Financial liabilities valued at amortised cost Change in exchange rates Total net gains and losses on financial items at fair value Q1 2012 -26 94 -1 020 -826 2 253 1 382 -30 -1 242 1 212 -4 -34 21 3 387 759 Q4 2011 73 7 -5 550 379 5 252 45 199 5 1 868 -1 863 0 5 25 -9 339 559 14 36 -16 % Q1 2011 94 16 -327 -1 861 1 933 12 -149 27 -5 170 5 197 0 27 9 -26 394 255 -2 %
-82 -57 -98 92
-56 17 -92
-76 -77
Distribution by business purpose

Financial instruments for trading related business Financial instruments intended to be held to contractual maturity Total 507 252 759 235 324 559 -22 36 495 -240 255 2
Page 30 of 45
Note 8 Other expenses

Group SEKm Premises and rents IT expenses Telecommunications and postage Advertising, PR and marketing Consultants Compensation to Savings Banks Other purchased services Security transport and alarm systems Supplies Travel Entertainment Repair/maintenance of inventories Other expenses Total other expenses Q1 2012 331 438 64 69 75 152 141 101 39 45 13 41 234 1 743 Q4 2011 350 518 52 139 112 138 214 107 49 67 24 36 213 2 019 % -5 -15 23 -50 -33 10 -34 -6 -20 -33 -46 14 10 -14 Q1 2011 339 399 76 72 151 129 183 108 55 59 21 47 183 1 822 % -2 10 -16 -4 -50 18 -23 -6 -29 -24 -38 -13 28 -4
Note 9 Credit impairments

Group SEKm Provision for loans individually assessed as impaired Provisions Reversal of previous provisions Provision for homogenous groups of impaired loans, net Total Portfolio provisions for loans individually assessed as not impaired Write-offs Established losses Utilisation of previous provisions Recoveries Total Credit impairments for contingent liabilities and other credit risk exposures Credit impairments Credit impairment ratio, % Q1 2012 Q4 2011 % Q1 2011 %
349 -317 -65 -33 64 1 010 -746 -129 135 6 172 0.05
299 -958 -160 -819 -55 1 049 -264 -81 704 -4 -174 -0.05
17 -67 -59 -96
476 -924 -115 -563 -607
-27 -66 -43 -94
-4 59 -81
831 -554 -65 212 -14 -972 -0.29
22 35 98 -36
Page 31 of 45
Note 10 Loans
Group 31 Mar 2012 Loans after provisions Carrying amount 31 Dec 2011 Loans after provisions Carrying amount
SEKm Loans to credit institutions Banks Repurchase agreements, banks Other credit institutions Repurchase agreements, other credit institutions Loans to credit institutions Loans to the public Private customers Private, mortgage Private,other Corporate customers Agriculture, forestry, fishing Manufacturing Public sector and utilities Construction Retail Transportation Shipping and offshore Hotels and restaurants Information and communications Finance and insurance Property management Housing cooperatives Professional services Other corporate lending Loans to the public excluding the Swedish National Debt Office and repurchase agreements Swedish National Debt Office Repurchase agreements, Swedish National Debt Office Repurchase agreements, public Loans to the public Loans to the public and credit institutions
Loans before provisions
Provisions
60 007 17 163 675 20 591 98 436
63 0 0 0 63
59 944 17 163 675 20 591 98 373
63 686 6 856 1 052 25 601 97 195
-6 -36 -20 1
671 299 633 320 37 979 511 962 63 804 42 709 18 092 17 575 30 177 14 200 21 120 6 640 2 466 19 559 156 764 72 799 12 165 33 892 1 183 261 5 667 2 268 35 698 1 226 894 1 325 330
4 597 3 145 1 452 9 733 335 1 726 57 781 1 374 257 317 207 59 105 3 062 93 560 800 14 330 0 0 0 14 330 14 393
666 702 630 175 36 527 502 229 63 469 40 983 18 035 16 794 28 803 13 943 20 803 6 433 2 407 19 454 153 702 72 706 11 605 33 092 1 168 931 5 667 2 268 35 698 1 212 564 1 310 937
666 183 628 823 37 360 500 098 62 223 29 745 14 942 13 191 23 567 11 689 23 291 6 412 2 412 16 662 144 664 71 467 30 343 49 490 1 166 281 2 776 13 834 28 563 1 211 454 1 308 649
0 0 -2 0 2 38 21 27 22 19 -11 0 0 17 6 2 -62 -33 0
-84 25 0 0
Note 11 Impaired loans etc.

Group SEKm Impaired loans, gross Provisions for individually assessed impaired loans Provision for homogenous groups of impaired loans Impaired loans, net of which private customers of which corporate customers Portfolio provisions for loans individually assessed as not impaired Share of impaired loans, gross, % Share of impaired loans, net, % Provision ratio for impaired loans, % Total provision ratio for impaired loans, % * Past due loans that are not impaired of which past due 5-30 days of which past due 31-60 days of which past due 61 days or more * Total provision i.e. all provisions for claims in relation to impaired loans, gross. 31 Mar 2012 22 139 8 575 3 340 10 224 4 416 5 808 2 478 1.67 0.78 54 65 7 797 4 684 2 274 839 31 Dec 2011 24 805 9 246 3 575 11 984 4 889 7 095 2 435 1.87 0.92 52 62 6 884 4 510 1 637 737 13 4 39 14 % -11 -7 -7 -15 -10 -18 2 31 Mar 2011 31 747 12 777 3 821 15 149 5 895 9 254 2 769 2.28 1.10 52 61 5 422 4 005 1 288 129 44 17 77 % -30 -33 -13 -33 -25 -37 -11
Page 32 of 45
Note 12 Assets taken over for protection of claims and cancelled leases
Group SEKm Buildings and land Shares and participating interests Other property taken over Total assets taken over for protection of claims Cancelled leases Total assets taken over for protection of claims and cancelled leases of which acquired by Ektornet 31 Mar 2012 6 019 87 19 6 125 123 6 248 5 751 31 Dec 2011 6 067 107 54 6 228 147 6 375 5 819 % -1 -19 -65 -2 -16 -2 -1 31 Mar 2011 3 628 165 27 3 820 294 4 114 3 416 % 66 -47 -29 60 -58 52 68
Note 13 Credit exposures

Group SEKm Assets Cash and balances with central banks Interest-bearing securities Loans to credit institutions Loans to the public Derivatives Other financial assets Total assets Contingent liabilities and commitments Loan guarantees Loan commitments Total contingent liabilities and commitments Total credit exposure 31 Mar 2012 31 Dec 2011 % 31 Mar 2011 %
169 795 164 307 151 678 138 311 98 373 97 195 1 212 564 1 211 454 88 697 103 726 26 446 14 357 1 747 553 1 729 350 23 394 179 039 202 433 24 251 185 959 210 210
3 11 297 10 149 628 1 198 682 0 1 173 981 -14 60 558 84 15 080 1 1 609 226 -4 -4 -4 24 626 182 011 206 637
1 -50 3 46 75 9 -5 -2 -2 7
1 949 986 1 939 560
1 1 815 863
Note 14 Intangible assets

Group SEKm With indefinite useful life Goodwill Total With finite useful life Customer base Other Total Total intangible assets 964 1 043 2 007 13 702 Jan-Mar Goodwill Cost Opening balance Translation differences Closing balance Accumulated amortisation and impairments Opening balance Impairments Translation differences Closing balance Carrying amount 2012 15 996 -55 15 941 -4 234 0 -12 -4 246 11 695 992 1 045 2 037 13 799 Full-year 2011 16 026 -30 15 996 -2 293 -1 930 -11 -4 234 11 762 -3 0 -1 -1 1 075 952 2 027 15 707 Jan-Mar 2011 16 026 -16 16 010 -2 293 0 -37 -2 330 13 680 -10 10 -1 -13 11 695 11 695 11 762 11 762 -1 -1 13 680 13 680 -15 -15 31 Mar 2012 31 Dec 2011 % 31 Mar 2011 %
Page 33 of 45
Impairment testing of intangible assets

Goodwill and other intangible assets are tested for impairment annually or when there are indications that the recoverable amount of the assets is lower than their carrying amount. The recoverable amount is the higher of fair value less costs to sell and value in use. Swedbank calculates value in use by estimating an assets future cash flows and calculates these at present value with a discount rate. Estimated cash flows and discount rates are derived from external sources whenever possible and appropriate, but must in large part be determined based on the executive managements own assumptions. The executive management also determines whether there is any need for a new test during the year. The test as of year-end 2011 led to goodwill impairment of SEK 1 913m related to the Latvian operations and SEK 17m in the Norwegian operations. Estimated future cash flows are affected by the level of equity required in the cash-generating unit for continuing operations. Since capital adequacy requirements were raised in 2011, impairment tests were updated accordingly. The increase was the main driver behind a write-down of the investment in the Latvian operations. No indications have been identified in 2012 that would necessitate new impairment testing of goodwill.
Note 15 Amounts owed to credit institutions

Group SEKm Amounts owed to credit institutions Central banks Banks Other credit institutions Repurchase agreements - banks Repurchase agreements - other credit institutions Amounts owed to credit institutions 31 Mar 2012 2 280 104 508 3 821 11 239 8 152 130 000 31 Dec 2011 3 665 109 559 3 789 17 174 5 411 139 598 % -38 -5 1 -35 51 -7 31 Mar 2011 267 94 566 3 640 13 323 7 408 119 204 %
11 5 -16 10 9
Note 16 Deposits from the public

Group SEKm Deposits from the public Private customers Corporate customers Deposits from the public excluding the Swedish National Debt Office and repurchase agreements Swedish National Debt Office Repurchase agreements - Swedish National Debt Office Repurchase agreements - public Deposits and borrowings from the public 31 Mar 2012 316 370 263 676 580 046 2 2 268 21 457 603 773 31 Dec 2011 319 123 228 254 547 377 1 12 163 2 155 561 696 % -1 16 6 100 -81 7 31 Mar 2011 299 469 202 189 501 658 22 4 912 17 515 524 107 % 6 30 16 -91 -54 23 15
Note 17 Debt securities in issue

Group SEKm Other commercial paper Covered bonds Government guaranteed bonds Other interest-bearing bonds Structured retail bonds Total debt securities in issue Turnover during the period Opening balance Issued Repurchased Repaid Change in market value Changes in exchange rates Closing balance
31 Mar 2012 129 873 530 069 46 709 59 741 18 215 784 607 Jan-Mar 2012 781 458 157 791 -24 438 -123 597 -2 300 -4 307 784 607
31 Dec 2011 122 970 525 892 75 568 39 440 17 588 781 458 Full-year 2011 686 517 573 476 -110 790 -378 875 11 663 -533 781 458
% 6 1 -38 51 4 0 % 14 -72 -78 -67
31 Mar 2011 84 893 476 548 125 555 32 152 19 470 738 618 Jan-Mar 2011 686 517 158 492 -18 056 -80 178 -3 338 -4 819 738 618
% 53 11 -63 86 -6 6 % 14 0 35 54 -31 -11 6
Page 34 of 45
Note 18 Derivatives
The Group trades derivatives in the normal course of business and to hedge certain positions with regard to the value of equities, interest rates and currencies.
Nominal amount 31 Mar 2012 Remaining contractual maturity Group SEKm Derivatives in hedge accounting Derivatives in cash flow hedges Other derivatives Netting agreements Total of which cleared < 1 yr. 57 622 13 215 9 050 307 9 121 144 0 1-5 yrs. 303 725 14 514 3 608 728 3 926 967 0 > 5 yrs. 51 676 9 364 551 412 612 452 0 Nominal amount 31 Mar 31 Dec 2012 2011 413 023 37 093 13 210 447 13 660 563 4 075 850 399 101 38 554 12 652 187 13 089 842 3 038 232 Positive fair value 31 Mar 31 Dec 2012 2011 17 124 0 74 389 -2 816 88 697 3 084 19 026 0 88 012 -3 312 103 726 3 587 Negative fair value 31 Mar 31 Dec 2012 2011 246 4 461 78 474 -2 816 80 365 3 397 2 3 949 89 845 -3 312 90 484 3 838
Note 19 Financial instruments carried at fair value

Group 31 Mar 2012 SEKm Instruments with quoted market prices in active markets (Level 1) Valuation techniques using observable market data (Level 2) Valuation techniques using nonobservable market data (Level 3)
Total
Determination of fair value from quoted market prices or valuation techniques Assets Treasury bills and other bills eligible for refinancing with central banks 20 257 Loans to credit institutions 167 Loans to the public 921 Bonds and other interest-bearing securities 91 928 Financial assets for which the customers bear the investment risk 103 014 Shares and participating interests 7 937 Derivatives 276 Total 224 500 Liabilities Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Financial liabilities for which the customers bear the investment risk Derivatives Short positions securities Total 0 0 77 573
1 301 37 754 494 948 34 585 0 39 88 421 657 048 19 387 55 342 27 094 105 428 79 768 0 287 019
0 0 0 343 0 52 395 0 0 0 0 0 0
21 558 37 921 495 869 126 856 103 014 8 028 88 697 881 943 19 387 55 342 104 667 105 428 80 365 22 398 387 587
597 22 398 100 568
The table above contains financial instruments measured at fair value as of 31 March 2012 by valuation level. Level 1 contains financial instruments where fair value is determined on the basis of quoted market prices on an active market. Level 2 contains financial instruments where fair value is determined on the basis of valuation models based on observable market data. Level 3 contains financial instruments where fair value is determined on the basis of valuation models based primarily on observable market data, but in this case also using internal estimates. Level 3 principally contains corporate bonds. For corporate bonds where there is no observable quoted price for the current credit spread, a reasonable assumption is used, such as a comparison with similar counterparties where there is an observable quoted credit spread price.
Page 35 of 45
Group 31 Dec 2011 SEKm
Instruments with quoted market prices in active markets (Level 1)
Valuation techniques using observable market data (Level 2)
Valuation techniques using nonobservable market data (Level 3)
Total
Determination of fair value from quoted market prices or valuation techniques Assets Treasury bills and other bills eligible for refinancing with central banks 24 402 Loans to credit institutions 160 Loans to the public Bonds and other interest-bearing securities 80 606 Financial assets for which the customers bear the investment risk 95 747 Shares and participating interests 1 768 Derivatives 337 Total 203 020 Liabilities Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Financial liabilities for which the customers bear the investment risk Derivatives Short positions securities Total 0 0 79 709
209 32 309 508 682 28 762 0 112 103 389 673 463 22 585 50 402 32 813 96 449 89 865 292 114
0 0 0 390 0 71 461 0 0 0 0
24 611 32 469 508 682 109 758 95 747 1 951 103 726 876 944 22 585 50 402 112 522 96 449 90 484 30 603 403 045
619 30 603 110 931
Note 20 Pledged collateral

Group SEKm Loan receivables Financial assets pledged for policyholders Other assets pledged Pledged collateral 31 Mar 2012 682 038 103 823 69 847 855 708 31 Dec 2011 673 410 94 971 67 313 835 694 % 1 9 4 2 31 Mar 2011 645 750 101 090 68 801 815 641 % 6 3 2 5
Page 36 of 45
Note 21 Capital adequacy

Swedbank financial companies group SEKm Shareholders' equity according to the Group's balance sheet Non-controlling interests Anticipated dividend Deconsolidation of insurance companies Associated companies consolidated according to purchase method Unrealised value changes in financial liabilities due to changes in own creditworthiness Cash flow hedges Goodwill Deferred tax assets Intangible assets Net provisions for reported IRB credit exposures Shares deducted from Tier 1 capital Total core Tier 1 capital Tier 1 capital contributions of which undated Tier 1 instruments that must be converted in a critical situation. of which Undated Tier 1 instruments without incentives to redeem. of which Fixed-term Tier 1 instruments or undated Tier 1 instruments with incentives to redeem. Total Tier 1 capital Undated subordinated loans Fixed-term subordinated loans Net provisions for reported IRB credit exposures Shares deducted from Tier 2 capital Total Tier 2 capital Deduction of shares in insurance companies Total capital base Risk-weighted assets Capital requirement for credit risks, standardised approach Capital requirement for credit risks, IRB Capital requirement for settlement risks Capital requirement for market risks of which risks in the trading book outside VaR of which currency risks outside VaR of which risks where VaR models are applied Capital requirement for operational risks Capital requirement Complement during transition period Capital requirement including complement Capital quotient, Basel 2 Core Tier 1 capital ratio, %, Basel 2 Tier 1 capital ratio, %, Basel 2 Total capital adequacy ratio, %, Basel 2 Capital quotient, transition rules Core Tier 1 capital ratio, %, transition rules Tier 1 capital ratio, %, transition rules Total capital adequacy ratio, %, transition rules 31 Mar 2012 95 259 144 -1 750 -2 104 1 686 4 -7 -11 018 -799 -1 731 -897 -34 78 753 7 306 0 536 6 770 86 059 1 148 10 233 -897 -34 10 450 -2 906 93 603 494 634 2 432 30 822 6 1 985 712 800 473 4 326 39 571 21 185 60 756 2.37 15.9 17.4 18.9 1.54 10.4 11.3 12.3 31 Dec 2011 97 993 140 -5 825 -1 980 1 742 -23 -268 -11 085 -843 -1 767 -748 -34 77 302 7 553 0 535 7 018 84 855 1 616 10 389 -748 -34 11 223 -2 905 93 173 492 337 2 427 30 850 1 1 750 455 766 529 4 359 39 387 21 154 60 541 2.37 15.7 17.2 18.9 1.54 10.2 11.2 12.3 % or pp -3 3 70 -6 -3 31 Mar 2011 95 536 142 -1 925 -1 307 1 356 -9 162 -13 005 -1 097 -1 888 -600 -36 77 329 6 642 0 536 6 106 83 971 2 250 14 507 -600 -36 16 121 -2 901 97 191 519 070 2 483 33 038 0 1 646 688 697 261 4 359 41 526 18 244 59 770 2.34 14.9 16.2 18.7 1.63 10.4 11.2 13.0 % or pp 0 1 -9 -61 24
-97 1 5 2 -20 0 2 -3 0 0 -4 1 -29 -2 -20 0 -7 0 0 0 0 0 13 56 4 -11 -1 0 0 0 0.00 0.2 0.2 0.0 0.00 0.2 0.1 0.0
15 -27 8 50 6 2 10 0 0 11 2 -49 -29 50 6 -35 0 -4 -5 -2 -7 21 3 15 81 -1 -5 16 2 0.02 1.0 1.2 0.2 -0.09 0.0 0.1 -0.7
The Internal Ratings-Based Approach (IRB) is applied to the Swedish parts of Swedbank financial companies group, including the branch offices in New York and Oslo, but excluding EnterCard and certain exposure classes such as the Swedish state and Swedish municipalities, where the method is considered less suitable. The IRB approach is also applied to the majority of Swedbanks exposure classes in the Baltic countries.
As of 31 March 2012 the Swedbank financial companies group included the Swedbank Group, the EnterCard Group, Sparbanken Rekarne AB, Frs och Frosta Sparbank AB, Swedbank Sjuhrad AB, Vimmerby Sparbank AB, Bankernas Dep AB and Bankomat AB. The insurance companies are included in the Group but not in the financial companies group under the capital adequacy rules.
Page 37 of 45
Swedbank financial companies group Credit risks, IRB SEKm Institutional exposures of which repurchase agreements of which other lending Corporate exposures of which repurchase agreements of which other lending Retail exposures of which repurchase agreements of which mortgage lending of which other lending Securitisation Exposures without counterparties Total credit risks, IRB
Exposure after credit risk protection 31 Mar 31 Dec 2012 2011 129 881 1 792 128 089 414 065 87 413 978 857 796 6 781 322 76 468 1 381 18 031 1 421 154 131 337 805 130 532 413 739 41 413 698 855 675 1 777 816 77 858 1 598 17 726 1 420 075
% -1 -2 0 0 0 0 -2 -14 2 0
Average risk weighting, % 31 Mar 31 Dec 2012 2011 12 6 12 64 10 64 10 56 7 41 12 87 27 13 6 13 64 14 64 10 0 7 41 11 89 27
Capital requirement 31 Mar 31 Dec 2012 2011 1 233 9 1 224 21 232 1 21 231 7 087 0 4 603 2 484 13 1 257 30 822 1 357 4 1 353 21 232 0 21 232 6 983 0 4 447 2 536 15 1 263 30 850
% -9 -10 0 53 0 1 3 -2 -10 0 0
Capital base
A deduction was made from the capital base for the difference between expected losses and provisions in the accounts for the part of the portfolio calculated according to IRB. These expected losses are estimated in accordance with legislative and regulatory requirements and using information drawn from Swedbanks internal risk classification system. The calculations are based on the prudence concept, so that risks are overestimated rather than underestimated. The Swedish Financial Supervisory Authoritys interpretation of legislation and regulations has, furthermore, built additional safety margins into the risk classification system. As a result, expected losses calculated in accordance with the new capital adequacy rules exceed Swedbanks best estimate of loss levels and required provisions.
The parent company has received such approval and uses its own internal VaR model for general interest rate risks, general and specific share price risks in the trading book, and currency risks throughout its operations. The approval also comprises Baltic operations, Swedbank Estonia AS, Swedbank Latvia AS and Swedbank Lithuania AB for general interest rate risks in the trading book and currency risks throughout operations. Exchange rate risks outside the trading book i.e. in other operations, are excluded in the internal VaR model and estimated according to the standardised approach, as per the Groups internal approach to managing these strategic exchange-rate risks.
Operational risk
Swedbank calculates operational risk using the standardised approach. The Swedish Financial Supervisory Authority has stated that Swedbank meets the qualitative requirements to apply this method.
Capital requirements for credit risks according to the standardised approach

Associated companies with the exception of the partly owned banks, a few minor subsidiaries and the subsidiaries in Russia and Ukraine use the standardised approach to calculate credit risks.
Transition rules
The transition rules, which state that the capital requirement may not fall below 80 per cent of the requirement according to the Basel 1 rules, have been prolonged and their expiry date are not yet decided. An update to the Swedish capital adequacy rules at the beginning of the year affects, among other things, how preference shares are included in Tier 1 capital. The preference shares Swedbank issued in 2008 are included in core Tier 1 capital in the amount of SEK 8.7bn, corresponding to 1.8 percentage points of the core Tier 1 capital ratio as of 31 March 2012. Since the rule change does not alter the view of the lossabsorbing capacity of the preference shares, Swedbank will continue to include them in its reporting of core Tier 1 capital. Swedbanks preference shares will be converted to common shares no later than the first half of 2013.
Capital requirements for credit risks according to IRB

The capital adequacy requirement for the portion of the portfolio calculated according to IRB was largely unchanged compared with the beginning of the year. The average risk-weighting for retail exposures was 10 per cent, of which 39 per cent was in the Baltic portfolios and 9 per cent in other portfolios. The risk weighting for corporate exposures was 64 per cent, of which 101 per cent was in the Baltic portfolios and 58 per cent for other portfolios. For institutional exposures, the average riskweighting was 36 per cent in the Baltic portfolios and 12 per cent in other portfolios, in total 12 per cent.
Market risks
Under current regulations, capital adequacy for market risks can be based either on a standardised approach or on an internal Value at Risk model, which requires the approval of the Swedish Financial Supervisory Authority.
Page 38 of 45
Note 22 Risks and uncertainties

Swedbanks earnings are affected by changes in the marketplace over which it has no control, including macroeconomic changes and changes in interest rates, stock prices and exchange rates. Swedbank has subsidiaries with operations in countries with currencies other than Swedish kronor. Moreover, in Latvia, Lithuania, Russia and Ukraine, a significant share of lending is in foreign currencies i.e. euros or US dollars. In the event of a devaluation of the domestic currency in any of these countries, three main factors would affect the Groups income statement and balance sheet. Firstly, a gain on financial items at fair value would generally arise due to the impact of changes in exchange rates on the assets and liabilities of the subsidiary. Normally, this would produce an exchange rate gain, since the company has larger assets than liabilities in foreign currencies (euro or dollar). Secondly, a negative translation effect would arise on the parent companys net investment in the subsidiary, since the subsidiarys equity would be less when expressed in Swedish kronor. This negative exchange rate effect is reported in other comprehensive income, not in the consolidated income statement. Thirdly, it would become more difficult for domestic customers to pay the interest and principal on their loans in foreign currencies, which would become higher in the local currency. This would eventually lead to higher impairment losses in the subsidiary. In addition to what is stated in this interim report, detailed descriptions are provided in Swedbanks annual report for 2011 and in the annual disclosure on risk management and capital adequacy according to the Basel 2 rules, available on www.swedbank.com.
Note 23 Related-party transactions

During the period normal business transactions were executed between companies in the Group, including other related companies such as associates. Significant associates are the partly owned savings banks. Frs & Frosta Sparbank AB holds 4 030 000 shares in Swedbank AB. The Groups share of these shares has reduced equity in the consolidated statements by SEK 68m. Other significant relations are with Swedbanks pension funds and Sparinstitutens Pensionskassa SPK, which safeguard employees post-employment benefits. These related parties use Swedbank for customary banking services.
Note 24 Swedbanks share

31 Mar 2012 SWED A Share price, SEK Number of outstanding ordinary shares Market capitalisation, SEKm SWED PREF Share price, SEK Number of outstanding preference shares Market capitalisation, SEKm SWED C Share price, SEK Number of outstanding shares Market capitalisation, SEKm Total market capitalisation, SEKm 102.80 909 016 963 93 447 31 Dec 2011 89.15 907 421 303 80 897 % 15 0 16 31 Mar 2011 108.00 951 725 992 102 786 % -5 -4 -9
102.00 188 779 759 19 256
89.15 190 434 519 16 977
14 -1 13
107.90 206 748 185 22 308
-5 -9 -14
0 0 112 703
0 0 97 874 15
0 125 094 -10
Repurchased shares have been taken into consideration when calculating the market capitalisation. Swedbanks share, ticker symbol SWED A and the preference share, ticker symbol SWED PREF, are listed on the OMX Nordic Exchange and traded in the Large cap segment.
Page 39 of 45
Number of outstanding shares Issued shares SWED A SWED PREF SWED C Repurchased shares SWED A SWED PREF SWED C Swedbank's share of associates' holding of shares SWED A SWED PREF Number of outstanding shares on the closing day
31 Mar 2012 966 785 777 192 804 400 1 500 000 -57 168 814 -3 415 641 -1 500 000 -600 000 -609 000
31 Dec 2011 965 190 117 194 400 060 1 500 000 -57 168 814 -3 415 641 -1 500 000 -600 000 -549 900
31 Mar 2011 952 325 992 207 264 185
-600 000 -549 900
1 097 796 722 1 097 855 822 1 158 474 177
In February and August of each year, starting in August 2009, holders of preference shares may request to convert their preference shares to ordinary shares. The request must pertain to the shareholders entire holding. If the shareholder previously has not requested a conversion, all their outstanding preference shares will be converted into ordinary shares as soon as possible after the Annual General Meeting 2013, however, if applicable, not earlier than the day after the record day for the right to receive dividend, as resolved at said Annual General Meeting. Preference shares carry the same voting rights as ordinary shares. During the year 1 595 660 preference shares have been converted to ordinary shares. Earnings per share Average number of shares Average number of shares before dilution Weighted average number of shares for dilutive potential ordinary shares resulting from share-based compensation programme Average number of shares after dilution Profit, SEKm Profit for the period attributable to shareholders of Swedbank Preference dividends on non-cumulative preference shares declared in respect of the period Earnings for the purpose of calculating earnings per share Earnings per share, SEK Earnings per share before dilution Earnings per share after dilution 2.21 2.20 0.88 0.88 2.47 2.47 3 425 1 004 2 421 965 965 3 852 995 2 857 Q1 2012 Q4 2011 Q1 2011
1 097 836 122 1 097 855 822 1 158 474 177 2 526 221 1 381 120 20 301
1 100 362 343 1 099 236 942 1 158 494 478
Page 40 of 45
Swedbank AB Income statement, condensed

Parent company SEKm Interest income Interest expenses Net interest income Dividends received* Commission income Commission expenses Net commissions Net gains and losses on financial items at fair value Other income Total income Staff costs Other expenses Depreciation/amortisation Total expenses Profit before impairments Impairment of financial fixed assets Credit impairments Operating profit Appropriations Tax expense Profit for the period Q1 2012 6 654 -3 980 2 674 114 1 595 -308 1 287 1 336 290 5 701 1 829 1 084 146 3 059 2 642 19 18 2 605 29 640 1 936 Q4 2011 6 969 -4 436 2 533 2 593 1 421 -304 1 117 -791 436 5 888 1 828 1 260 107 3 195 2 693 63 168 2 462 1 867 218 377 % -5 -10 6 -96 12 1 15 -33 -3 0 -14 36 -4 -2 -70 -89 6 -98 Q1 2011 6 137 -3 906 2 231 16 1 554 -307 1 247 1 013 1 007 5 514 1 679 1 116 80 2 875 2 639 -223 -121 2 983 0 896 2 087 3 0 3 32 -71 3 9 -3 83 6 0 % 8 2 20
-13 -29 -7
* During the second quarter of 2011 the Estonian subsidiary Swedbank AS approved a one-off distribution to the parent company of profits originally attributable to the operations in Latvia and Lithuania, and which were taxed there. Such a distribution is not subject to any further taxation.
Statement of comprehensive income, condensed

Parent company SEKm Profit for the period reported via income statement Cash flow hedges: Gains/losses arising during the period Reclassification adjustments to income statement, net interest income Income tax relating to components of other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the period Q1 2012 1 936 -23 72 -13 36 1 972 Q4 2011 377 -58 77 -5 14 391 -60 -6 % Q1 2011 2 087 35 101 -36 100 2 187 -29 64 -64 -10 % -7
Page 41 of 45
Balance sheet, condensed

Parent company SEKm Assets Cash and balance with central banks Loans to credit institutions Loans to the public Interest-bearing securities Shares and participating interests Derivatives Other assets Total assets Liabilities and equity Amounts owed to credit institutions Deposits and borrowings from the public Debt securities in issue Derivatives Other liabilities and provisions Subordinated liabilities Untaxed reserves Equity Total liabilities and equity Pledged collateral Other assets pledged Contingent liabilities Commitments 31 Mar 2012 31 Dec 2011 % 31 Mar 2011 %
163 355 154 392 326 405 325 896 340 789 342 394 151 986 136 530 67 373 60 711 106 829 119 320 29 570 15 935 1 186 307 1 155 178 203 342 200 430 507 955 459 720 245 977 251 764 100 275 111 752 48 077 46 256 18 995 19 833 2 701 2 672 58 985 62 751 1 186 307 1 155 178 74 035 2 290 569 721 155 776 74 479 3 249 560 835 161 709
6 3 196 0 449 019 0 313 272 11 157 302 11 53 648 -10 78 815 86 17 680 3 1 072 932 1 166 502 10 434 588 -2 260 083 -10 74 711 4 47 870 -4 23 375 1 805 -6 64 998 3 1 072 932 -1 -30 2 -4 86 196 2 666 529 073 155 440
-27 9 -3 26 36 67 11 22 17 -5 34 0 -19 -9 11 -14 -14 8 0
Statement of changes in equity, condensed

Parent company SEKm Share premium reserve 13 083 Statutory reserve 6 489 Cash flow hedges -306 Retained earnings 22 142 -2 995 47 0 24 351 24 351 32 35 -6 180 159 0 24 383 24 383 0 13 118 13 118 0 6 489 6 489 183 -123 -123 5 758 18 884 18 884 -5 825 87 0 24 383 0 13 118 0 6 489 37 -86 2 009 15 155 0 13 083 13 083 0 6 489 6 489 100 -206 -306 2 087 21 281 22 142 -2 995
Share capital Opening balance 1 January 2011 Dividend Share based payments to employees Total comprehensive income for the period Closing balance 31 March 2011 Opening balance 1 January 2011 Dividend New share issue Reversal of VAT costs incurred on rights issue 2009 Repurchased shares Share based payments to employees Total comprehensive income for the period Closing balance 31 December 2011 Opening balance 1 January 2012 Dividend Share based payments to employees Total comprehensive income for the period Closing balance 31 March 2012 24 351
Total 65 759 -2 995 47 2 187 64 998 65 759 -2 995 32 35 -6 180 159 5 941 62 751 62 751 -5 825 87 2 046 59 059
In connection to the rights issue in 2009 an assessment was made on the VAT Swedbank AB would have to pay on the transaction costs. This assessment was changed in the second quarter 2011 based on a new tax case ruling. The VAT provision decreased by SEK 35m. The amount includes increased income tax of SEK 12m.
Page 42 of 45
Cash flow statement, condensed

Parent company SEKm Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the period Cash and cash equivalents at beginning of period Cash flow for the period Cash and cash equivalents at end of period Jan-Mar 2012 12 665 1 413 -5 115 8 963 154 392 8 963 163 355 Full-year 2011 181 337 6 111 -37 758 149 690 4 702 149 690 154 392 Jan-Mar 2011 10 573 4 032 -16 111 -1 506 4 702 -1 506 3 196
Capital adequacy
Parent company SEKm Core Tier 1 capital Tier 1 capital contribution Total Tier 1 capital Tier 2 capital Settlements, equities, etc. Total capital base Risk-weighted assets Capital requirement Capital requirement including complement Capital quotient* Core Tier 1 capital ratio, %* Tier 1 capital ratio, %* Total capital adequacy ratio, %* * Key ratios refer to both transition rules and Basel 2. 31 Mar 2012 56 497 7 306 63 803 10 793 -2 903 71 693 361 625 28 930 28 930 2.48 15.6 17.6 19.8 31 Dec 2011 57 521 7 553 65 074 11 572 -2 902 73 744 365 013 29 201 29 201 2.53 15.8 17.8 20.2 % or pp -2 -3 -2 -7 0 -3 -1 -1 -1 -0.05 -0.1 -0.2 -0.4 31 Mar 2011 61 960 6 642 68 602 15 876 -2 901 81 577 381 493 30 519 30 519 2.67 16.2 18.0 21.4 % or pp -9 10 -7 -32 0 -12 -5 -5 -5 -0.19 -0.6 -0.3 -1.6
Page 43 of 45
Signatures of the Board of Directors and the President

The Board of Directors and the President certify that the interim report for January-March 2012 provides a fair and accurate overview of the operations, financial position and results of the parent company and the Group and describes the significant risks and uncertainties faced by the parent company and the companies in the Group.
Stockholm, 24 April 2012
Lars Idermark Chair
Anders Sundstrm Deputy Chair
Olav Fjell Board Member
Ulrika Francke Board Member
Gran Hedman Board Member
Anders Igel Board Member
Pia Rudengren Board Member
Charlotte Strmberg Board Member
Karl-Henrik Sundstrm Board Member
Siv Svensson Board Member
Kristina Janson Board Member Employee Representative
Jimmy Johnsson Board Member Employee Representative
Michael Wolf President
Review report
Introduction We have reviewed the interim report for Swedbank AB (publ) for the period 1 January to 31 March 2012. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act for Credit Institutions and Securities Companies. Our responsibility is to express a conclusion on this interim report based on our review. Scope of review We conducted our review in accordance with the Standard on Review Engagements (SG) 2410 Review of Interim Financial Information performed by the companys auditors. A review consists of making inquiries, primarily with persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report for the Group is not, in all material aspects, in accordance with IAS 34 and the Annual Accounts Act for Credit Institutions and Securities Companies and as regards the parent company in accordance the Annual Accounts Act for Credit Institutions and Securities Companies. Stockholm, 24 April 2012 Deloitte AB
Svante Forsberg Authorised Public Accountant

Publication of financial information

The Groups financial reports can be found on www.swedbank.com/ir or www.swedbank.com Swedbank will publish financial results on the following dates in 2012: Interim report for the second quarter on 18 July 2012 Interim report for the third quarter on 23 October 2012
For further information, please contact:

Michael Wolf President and CEO Telephone +46 8 585 926 66 Gran Bronner CFO Telephone +46 8 585 906 67 Johannes Rudbeck Head of Investor Relations Telephone +46 8 585 933 22 +46 70 582 56 56 Thomas Backteman Head of Corporate Affairs Telephone +46 8 585 933 66 +46 70 831 11 66
Information on Swedbanks strategy, values and shares is also available on www.swedbank.com
Swedbank AB (publ)
Registration no. 502017-7753 Brunkebergstorg 8 SE-105 34 Stockholm, Sweden Telephone +46 8 585 900 00 www.swedbank.com info@swedbank.se
Page 45 of 45

Swedbank&#39;s Interim Report Q1 2012

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Swedbank&#39;s Interim Report Q1 2012

Загружено:

Авторское право:

Доступные форматы

First quarter 2012

Compared with fourth quarter 2011

Profit for the quarter

Earnings per share before dilution*

First quarter 2012

Core Tier 1 capital ratio, Basel 2

Swedbank Interim report January-March 2012

Michael Wolf President and CEO

Swedbank Interim report January-March 2012

31 Mar 2012 1 213 604 95 1 889 495 759 977

31 Dec 2011 1 211 562 98 1 857 492 757 969

31 Mar 2011 1 174 524 96 1 745 519 747 953

Swedbank Interim report January-March 2012

Q1 2012 2 781 1 267 832 183 -295 4 768 0 4 768

Q4 2011 2 418 708 801 148 -364 3 711 -2 3 709

Q1 2011 2 198 1 596 800 193 -738 4 049 19 4 068

Important events during the quarter

First quarter 2012

Q1 2012 2 342 713 620 200 538 4 413 4 413 208

Q4 2011 2 486 837 720 233 683 4 959 -12 4 947 47

Q1 2011 2 415 738 638 203 503 4 497 16 4 513 146

First quarter 2012

Credit and asset quality

Q1 2012 24 14 -134 -78 -21 -35 0 268 -65 333 0 172

Q1 2011 5 -105 -382 -9 -135 -238 0 -490 -171 -319 0 -972

Italy Portugal 122 122 100 14 26 26 26

Total 165 162 135 100 0 154 137 556

104 115 315

Funding and liquidity

Swedbank Interim report January-March 2012

Capital and capital adequacy

Swedbank Interim report January-March 2012

31 Mar 2012 212 135 99 39 33 27 3 46 4 20 6 8 7 1 495

31 Dec 2011 219 129 102 41 33 28 3 39 1 15 6 9 7 1 492

31 Mar 2011 227 146 120 45 45 30 3 23 1 2 7 9 4 0 519

-80 -100 -120

Group Treasury Large Corporates & Institutions Swedbank Group

Swedbank Trading VaR

Swedbank Interim report January-March 2012

Ratings events during the period

Events after 31 March 2012

Swedbank Interim report January-March 2012

Large Corporates & Institutions

29 -30 -20 -41 -14 80

Swedbank Interim report January-March 2012

-65 -19 -39 -17 -17

1 -18 22 -15 0 -14 24 55 59 54 54

Group Functions & Other

-10 -13 -17 -15 -20 -15 -19 -72

Financial information - contents

Income statement, condensed

% -2 -5 5 2 -7 5 36 24 28 18 34 -19 6 -8 -14 -17 -11 29 -76

-10 -5 -11 -11 -11 -11 0 0

1 182 3 856 0 3 856 3 852 3 852 0

4 4 0 2.47 2.47 2.47 2.47 0.00 0.00 82.39 16.1 -0.29

Swedbank Interim report January-March 2012

Statement of comprehensive income, condensed

Balance sheet, condensed

-50 3 1 1 88 15 46 -13 69 25 7 -25 18 8 9 15 6 3 15 80 -5 -12 6 -11 -19

Swedbank Interim report January-March 2012

Statement of changes in equity, condensed

Cash flow hedges -44

Retained earnings 55 684 -2 995 47

-200 17 152 17 152 -2 302 -2 102

Swedbank's Interim Report Q1 2012

Swedbank's Interim Report Q1 2012