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1

Birgitte Bonnesen (CEO), Anders Karlsson

(CFO), Helo Meigas (CRO)

Swedbank’s third quarter 2018 results

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2

Swedbank in the Baltics

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Swedbank’s customers in the Baltics Market leader with a strong focus on domestic customers

3

Source: Baltic central banks, Swedbank Fact book Q3 2018

Private customers 3.2m

Corporate customers 283 000

TOTAL BALTICS

(p) private (c) corporate

Domestic payment transactions (Estonia, Latvia, Lithuania)

ESTONIA

Private customers 0.9m

Corporate customers 132 000

Loans

(p)

Loans

(c)

Deposits

(p)

Deposits

(c)

Payments

46% 37% 55% 43% 59%

LATVIA

Private customers 0.9m

Corporate customers 83 000 31% 18% 34% 19% 50%

Loans

(p)

Loans

(c)

Deposits

(p)

Deposits

(c)

Payments

LITHUANIA

Private customers 1.5m

Corporate customers 68 000 34% 19% 40% 26% 49%

Loans

(p)

Loans

(c)

Deposits

(p)

Deposits

(c)

Payments

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The low number of Swedbank non-resident customers are mainly EU private individuals

4

NON-RESIDENT SHARE OF TOTAL SWEDBANK

BALTIC BANKING CUSTOMERS

NON-RESIDENT SHARE OF TOTAL SWEDBANK

ESTONIAN CUSTOMERS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Jun18

Non-residents Corporate Non-residents

Corporate Non-residents outside EU Private Non-residents inside EU

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Non-residents Corporate Non-residents

Corporate Non-residents outside EU Private Non-residents inside EU

Very low share

of corporates

outside EU

Source: Swedbank

Total non-resident Total non-resident

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Swedbank’s payments market share shows a business model built on a domestic customer base

5

MARKET SHARES BASED ON TOTAL ASSETS AND VOLUME OF OUTGOING CROSS BORDER PAYMENTS, ESTONIA, %

0%

10%

20%

30%

40%

50%

2008 2009 2010 2011 2012 2013 2014 2015

Market share by balance sheet size

Market share by outgoing cross border payments

0%

10%

20%

30%

40%

50%

2008 2009 2010 2011 2012 2013 2014 2015

Market share by balance sheet size

Market share by outgoing cross border payments

0%

10%

20%

30%

40%

50%

2008 2009 2010 2011 2012 2013 2014 2015

Market share by balance sheet size

Market share by outgoing cross border payments

0%

10%

20%

30%

40%

50%

2008 2009 2010 2011 2012 2013 2014 2015

Market share by balance sheet size

Market share by outgoing cross border payments

0%

10%

20%

30%

40%

50%

2008 2009 2010 2011 2012 2013 2014 2015

Market share by balance sheet size

Market share by outgoing cross border payments

0%

10%

20%

30%

40%

50%

2008 2009 2010 2011 2012 2013 2014 2015

Market share by balance sheet size

Market share by outgoing cross border payments

DANSKE BANK VERSOBANK SEB

SWEDBANK NORDEA OTHER BANKS

Source: Bank of Estonia

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Swedbank’s cross border payments have grown in line with economy

6

OUTGOING CROSS BORDER PAYMENTS, ESTONIA

EURbn

Source: Bank of Estonia

Market dynamics

influenced by non-resident

business models

Market, EURbn Swedbank, EURbn

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We have continuously worked with anti-money laundering

7

Systematic approach to assure detection of suspicious transactions

and business activities

Systematic approach to KYC and on-boarding process

Swedbank’s policy is to serve customers with clear local business ties

Work closely with authorities, regulators as well as with correspondent

banks

Zero tolerance AML in all markets where we operate

Throughout the years reacted on all signals, from our own channels as

well as from external parties.

Same governance, systems and processes to detect money

laundering on all our markets

No ongoing investigations from any of our regulators concerning

AML-practices

Swedbank acts

forcefully on all

signals

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8

Swedbank third quarter financial results

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Group financial highlights, Q3 2018

TOTAL

EXPENSES

CREDIT

IMPAIRMENTS

KEY RATIOS

TOTAL

INCOME

9

SEK 117m

SEK 11.2bn Continued loan volume growth

Strong net commission income from

cards and asset management

Underlying expenses in line

with FY 2018 guidance

Solid asset quality

24.3% 0.03% 0.36

C/I ratio

16.9%

ROE

CET1 capital ratio

Credit impairment ratio

Q3 2018

110%

NSFR

SEK 4.0bn

0

4

8

12

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

Total income, SEKbn

0

2

4

6

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

Total expenses, SEKbn

-200

-100

0

100

200

300

400

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

Credit impairments, SEKm

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Group result

Higher net interest income

Q3 2018 10

• Continued loan volume growth

• Stable margins

• Lower resolution fund fee

• One more day in the quarter

• Less favorable USD funding market

NII, SEKm

84 4336 5

-9 -1076 275

6 327

Q2 2018 Loanvolumes

Margins Resolutionfund anddeposit

guaranteefee

Day count FX Treasury &Other

Q3 2018

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Group result

Strong net commission income

• Seasonally higher cards income

• Asset management income

supported by positive asset value

development and mutual fund

inflows

Q3 2018 11

NCI, SEKm

4554

-2

33 236

3 336

Q2 2018 Cards &Payments

Assetmanagement

Lending &guarantees

Other Q3 2018

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Group result

Stable underlying revenue generation

Q3 2018 12

NGL, SEKm

Other Income, SEKm

• Stable client trading activity

• Positive valuation effect on

derivatives

• Negative impact from higher

covered bond buy-back volumes

• Negative impact from widening

credit and basis swap spreads

723

959806

976

1 026677

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

Other income UC, one-off

1 653 • Positive impact from changed

valuation of Visa shares

• Continued good performance in

recurring revenue items –

insurance, Entercard, savings

banks/associates

525

356

559

635

488

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

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Group result

Underlying expenses in line with FY2018 guidance

Q3 2018 Bar chart proportions for illustration purposes only 13

Total Expenses FY2018 guidance, SEK

FX impact YTD 2018 vs YTD 2017, SEK

+150m

+300m

-200m

Market-dependent headwinds

Restructuring charge

release

FX

Pension cost

Main currencies breakdown in cost base

76%

3%

19%

NOK

EUR

SEK

Original expense guidance of below SEK 17bn 2% USD

Income:

469m

Expenses:

189m

FX

sensitivity

comes

mainly from

EUR

Income benefit

from FX

outweighs

impact on

expenses

SEK has depreciated ~10% YoY

95

100

105

110

115

Oct2017

Nov2017

Dec2017

Jan2018

Feb2018

Mar2018

Apr2018

May2018

Jun2018

Jul2018

Aug2018

Sep2018

Oct2018

USD EUR NOK Trend (EUR)

Index 100= Oct 2, 2017

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Group result

Strong core revenues

SEKm Q3 18 Q2 18 ▲QoQ

Net interest income 6 326 6 273 53

Net commission income 3 336 3 236 100

Net gains and losses 488 635 -147

Other income 1 026 1 653 -627

Total income 11 176 11 797 -621

Total expenses 3 998 4 262 -264

Profit before impairments 7 178 7 535 -357

Credit impairments 117 -135 252

Other impairments 282 -282

Tax 1 530 1 369 161

Net profit 5 525 6 014 -489

Q3 2018 14

Ratios Q3 18 Q2 18

ROE, % 16.9 19.2

C/I ratio 0.36 0.36

CET1 capital ratio, % 24.3 23.6

• Continued mortgage and corporate

loan volume growth

• Strong net commission income

supported by solid macroeconomic

fundamentals

• Lower Group Treasury income

• Expenses in line with FY guidance

• Solid asset quality

• One-off income of SEK 677m in Q2

(UC)

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Capital

Strong capitalisation – no excess capital

Q3 2018 15

• CET1 capital increased by SEK

1.4bn

– Positive effect from net profit of

SEK 1.0bn excl. dividend

– Positive IAS19 pension

valuation effect of SEK 0.2bn

• REA decreased by SEK 7bn

• Buffer of around 280bps above

minimum requirements

CET1 capital ratio, %

23.9% 24.6% 24.8%23.6% 24.3%

21.5%

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 CET1 capitalratio

requirement

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Capital

Decreased Risk Exposure Amount (REA)

Q3 2018 16

REA, SEKbn

-7.3

0.2 0.1

434.5

427.5

Q2 2018 Credit risk Market risk CVA risk Q3 2018

• REA decreased by SEK 7bn

– Positive collateral valuation

effect

– Positive FX effect

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Group

Solid asset quality

Credit impairments, SEKm Q3 18 Q2 18 ▲QoQ

Swedish Banking 71 84

Baltic Banking 8 -87

Large Corporates & Institutions 37 -126

Swedbank Group 117 -135

Q3 2018 17

Ratios Q3 18 Q2 18

Credit impairment ratio, % 0.03 -0.03

Share of Stage 3 loans, gross % 0.67 0.67

Total credit impairment provision

ratio, % 0.33 0.33

• Resilient asset quality in all

business segments

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Appendix

1

8

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Group results

Strong core revenues

SEKm Q3 18 Q2 18 ▲QoQ Q3 17 ▲YoY

Net interest income 6 326 6 273 53 6 208 118

Net commission income 3 336 3 236 100 2 962 374

Net gains and losses 488 635 -147 525 -37

Other income 1 026 1 653 -627 723 303

Total income 11 176 11 797 -621 10 418 758

Total expenses 3 998 4 262 -264 3 883 115

Profit before impairments 7 178 7 535 -357 6 535 643

Credit impairments 117 -135 252 235 -118

Other impairments 282 -282 107 -107

Tax 1 530 1 369 161 1 444 86

Net profit 5 525 6 014 -489 4 743 782

Q3 2018 19

Ratios Q3 18 Q2 18 Q3 17

ROE, % 16.9 19.2 15.0

C/I ratio 0.36 0.36 0.37

CET1 capital ratio, % 24.3 23.6 23.9

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Continued volume growth

Q3 2018 20

Loans

+11bn

Swedish

mortgage loans

Baltic Banking

+0bn +4bn

Corporate excl.

Baltic Banking

Deposits

+2bn

Private Corporate

Of which FX -2

+8bn -6bn

*

*excl. Group functions and other (Group Treasury)

+8bn

Of which FX -2 Of which FX -1

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Swedbank has a low-risk residential property portfolio

• Swedbank has pursued a low risk

strategy by tightening origination

standards, and prioritising price and

risk over volume growth

• Bulk of assets in low risk segments

• Average LTVs in lower ranges

• Residential property developer

exposures of SEK 18bn

Q3 2018 21

Real estate lending, net loans in Sweden, SEKbn

• Private mortgages: SEK 788bn, average

LTV 56%

• Tenant owner associations (“TOA”): SEK

109bn

SEK 97bn existing TOA, average LTV 39%

SEK 12bn TOA under construction

• Property management: SEK 197bn

SEK 69bn in residential property management

(rental apartment properties)

SEK 128bn in other property management

• Construction SEK 17bn

SEK 6bn residential property development

SEK 11bn infrastructure, groundwork, craftsmen

17

128

69

109

788

Total real estateportfolio

Of which:Residential property

development

18

Swedish

housing

and

mortgage

market

1 111

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Residential property developers - low exposure

• Total loan portfolio of SEK 18bn, mainly to the larger listed

construction firms, with which Swedbank has long-term relations

• SEK 12bn of the loans are related to tenant-owner rights projects

• SEK 6bn of the loans are related to construction activities

• 90% of these projects will be finalised in 2018 and 2019

1) As of 30 September 2018

2) Share of exposure 22

SEK

10bn

Tenant-owner rights related construction loans1) – the risk is highly mitigated

Swedish

housing

and

mortgage

market

57%

10%

4%

24%

5%

By geography1)

Stockholm region Gothenburg region

Malmö region >50 000 inhabitants

<50 000 inhabitants

52% 38%

10%

Finalisation year2)

2018 2019 2020-0

10

20

30

40

50

60

70

80

90

100

2018 2019 2020-

Average % pre-sold by finalisation year 2)

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0

10

20

30

0

50

100

150

200

2013 2014 2015 2016 2017 Q3 2018

NSFR LCR* CET1 ratio, CRDIV (RHS)

-10

0

10

20

30

40

Q3 13 Q3 14 Q3 15 Q3 16 Q3 17 Q3 18

Swedbank – low-risk bank with strong capital base

• Low risk – a Board of Directors’ strategic priority – ensures access to funding

markets and low funding cost

• Retail profile and four home markets a key feature

– Around 85% of total loans originated in Sweden - Swedish mortgages account for

around 60% of total loans

– 90% of total loans are collateralised (77.1% real estate and 12.9% other collateral)

• Strong capital position – Board of Directors’ decision to maintain a buffer above

prevailing SFSA capital requirements to have operational flexibility – current buffer

around 280bps

• Conservative funding and liquidity position – survival horizon longer than 12 months

assuming closed funding markets, NSFR 110% and LCR 148%*

• Baltic operations self-funded – loan-to-deposit ratio < 100%

Q3 2018 23

Credit impairment ratio, bps

This is

Swedbank

Liquidity & capital, %

* From Q1 2018 – the Liquidity Coverage Ratio (LCR) is calculated in accordance with the Commission Delegated

Regulation (EU 2015/61) of 10 October 2014 (also, see Fact book, page 57)

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Swedbank – strong and stable earnings capacity

Q3 2018 24

Profit before impairments, SEKbn

This is

Swedbank

• Four home markets – Sweden, Estonia, Latvia and Lithuania

– Strong and stable economies

– Market-leading position in all home markets

– Largest customer base in all home markets

• Retail profile ensures stable earnings with low volatility

• High cost efficiency – a strategic priority – ensures good profitability

• Stable earnings support a low risk profile and a strong capital position

0

2

4

6

8

10

Q3 13 Q3 14 Q3 15 Q3 16 Q3 17 Q3 18

Disposal, one-off

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30

35

40

45

50

55

60

2012 2013 2014 2015 2016 2017

12

14

16

18

20

2012 2013 2014 2015 2016 2017 2018Cap

Acquisition, one-off

Swedbank – market leader in cost efficiency

• Best-in-class cost efficiency – an executive management strategic priority

• Executive management strongly focused on cost and change management

– Integrated in corporate culture

– Focus on straight-through-processing

– Evolving household banking model – digitisation trend

• Retail profile a key feature

– Four home markets – Sweden, Estonia, Latvia and Lithuania – reduce complexity

– Largest private and SME customer base

– High degree of digitisation in home markets

Q3 2018 25

Total expenses, SEKbn

C/I ratio, %

This is

Swedbank

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Focus on sustainable business

26

Swedbank Robur’s new sustainability equity fund, Global Impact, invests in companies

that through their products, services and activities, contribute to reaching the UN’s

SDGs. The fund allows our customers to earn capital returns while contributing to a

better, more sustainable world. The fund was among the 10 most popular funds in the

quarter.

2011 2012 2013 2014 2015 2016 2017

Green mortgage launch

To encourage a sustainable choice of housing Swedbank

launched the “Green mortgage loan” for private customers.

Swedbank’s ambition is to offer and constantly develop products

and services that help both private and corporate customers to

make long-term sustainable choices.

Dow Jones

Sustainability

Index

Swedbank Robur launches unique SDG equity fund

Swedbank is included in The Sustainability Yearbook 2018

The

Sustainability

Yearbook

Green

mortgage

Stronger Environmental Management System (EMS)

Improved sustainability scores

Swedbank’s upgraded Environmental Management System

was certified with the new and more rigorous standard

ISO14001:2015.

The Sustainability Yearbook lists the world’s most sustainable

companies in each industry as determined by their score in

RobecoSAM’s annual Corporate Sustainability Assessment.

ISO

Landmark green bond investment

The World Bank has issued green bonds to finance water treatment projects and

projects to conserve the marine environment. Swedbank Robur has acted as key

investor and invested SEK 550m in the transaction.

Swedbank’s first Green Bond Impact Report released

In accordance with Swedbank’s Green Bond Framework established last year the Green

Bond Impact Report for 2017 has now been released. It shows that resulting investment

in eligible green assets reduced CO2 emissions by 457 309 tonnes (annualised).

Top rank for gender equality

Swedbank top ranked in Allbright’s annual review of gender equality in listed

companies.

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Swedbank creates value

27

Dividend per share 75% payout ratio for 6th year in a row

SEK 13.00

Return on Equity >15% target

17.0% (YTD)

Common Equity Tier 1 ratio One of the highest among European banks

24.3%

Q3 2018

Strategy

0

2

4

6

8

10

12

14

0

5

10

15

20

25

30

2013 2014 2015 2016 2017 YTD 2018

SEK%

Return on equity (LHS) CET1 capital ratio (LHS)

Dividend per share (RHS)

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0

100

200

300

400

500

600

700

800

0 20 40 60 80 1001201401601802002202402602803003203403650

10

20

30

40

50

60

70

80

90

100Covered bonds Senior unsecured debt

Planned, covered bonds Planned, senior unsecured debt

Tier 2

Conservative funding position

Q3 2018 28

• LCR 148% (EU 2015/61)

• NSFR 110% (Basel committee)

• Issued around SEK 104bn YTD Q3 2018 (in addition, around SEK 8bn in Tier 2)

• Initial plan to issue around SEK 145bn in 2018 has been revised down due to deposit inflow

Term funding issuance – completed and planned

Days forward

SEKbn SEKbn Prefunded for more than 12 months

Survival horizon

Liquidity

and

funding

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0

50

100

150

200

2018 2019 2020 2021 2022 2023 2024-

Other

GBP

USD

EUR

SEK

0

50

100

150

200

2018 2019 2020 2021 2022 2023 2024-

Senior unsecured debt Covered bonds

Long-term funding maturity profile

Q3 2018 29

Long-term funding maturity profile, by funding source

SEKbn

Long-term funding maturity profile, by currency

Liquidity

and

funding

SEKbn

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0

50

100

150

200

250

300

350

05 06 07 08 09 10 11 12 13 14 15 16 17 18

Total

Tenant-owner rights (apartments)

Single-family houses

Real-estate price performance – Sweden, 12 month

Q3 2018 30

Single-family homes1 Tenant-owner rights2 Combined3

12M Δ 12M Δ 12M Δ

Oct 17 4% 1% 3%

Nov 17 1% -3% 0%

Dec 17 0% -6% -2%

Jan 18 0% -6% -2%

Feb 18 -1% -8% -4%

Mar 18 -2% -9% -4%

Apr 18 -2 -7 -4

May 18 -2 -7 -4

Jun 18 -2 -7 -4

Jul 18 -3 -7 -5

Aug 18 -3 -7 -5

Sep 18 -3 -5 -4

Source: Valuegard www.valuegard.se (Based on data from Mäklarstatistik), 1 HOXHOUSESWE, 2 HOXFLATSWE (apartments), 3 HOXSWE

House price index, Sweden

2005=100

Swedish

housing

and

mortgage

market