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Swedbank Green Bond presentation

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October 2017

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Disclaimer

Oct 2017 2

• Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, express or implied, by the forward looking statements. Factors that might cause forward looking statements to differ materially from actual results include, among other things, regulatory and economic factors. Swedbank AB assumes no responsibility to update any of the forward looking statements contained herein.

• No representation or warranty, express or implied, is made or given by or on behalf of Swedbank AB or its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of Swedbank AB or any of its directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

• This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Swedbank AB, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

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Table of contents

Executive summary 4

1. Sustainability within Swedbank 5

2. Swedbank’s Green bond framework 11

3. Targeted inaugural Green Bond transaction 19

Appendix

I. Sustainability and green assets 25

II. Swedbank overview and financial highlights 32

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Executive summary

■ Sweden’s largest retail bank with a leading position in our three Baltic home markets

■ ROE target of at least 15%

■ Strong asset quality!

■ Solid liquidity and funding position – survival horizon more than 12 months

■ One of the best capitalised banks in Europe* with significant buffers to both MDA and Loss

absorption trigger levels

■ Dividend policy of 75% - for five consecutive years

Sep 2017 4

■ ROE: 15.0% (15.6%)

■ Cost/income ratio: 0.37 (0.38)

■ CET1 capital ratio: 23.9% (24.6%) – with requirements of 21.6% (fully loaded CRD IV)

■ Leverage ratio: 4.7% (4.8%)

■ Credit impairment ratio: 0.06% (0.10%)

■ Share of impaired loans: 0.55% (0.53%)

■ Total provision ratio for impaired loans: 45% (45%)

■ Liquidity and funding: LCR: 145%, NSFR: 109%

■ Credit ratings: AA-(N)/AA-(S)/Aa3(S) from S&P/Fitch/Moody’s

Swedbank Q3 2017 (Q2 2017) – Stable result

Strong financial position

1. Sparbanksgruppen, 9.5%

2. Folksam, 7.1%

3. Alecta, 4.8%

4. AMF, 4.6%

5. Swedbank Robur, 4.1%

6. Sparbanksstiftelser, 4.0%

7. BlackRock, 2.4%

8. Vanguard, 2.4%

9. SEB Fonder, 2.1%

10. Norges Bank, 1.9%

Swedish owners, 58.6%

Int’l owners, 41.4%

Top 10 shareholders

Sweden

Estonia

Latvia

Lithuania

Our four

home

markets

*According to EBA stress test 2016

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1. Sustainability within Swedbank

5

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Swedbank’s sustainability journey

Oct 2017

6

2003

2016

2015

2014

2013

2012

2011

2010

• Environmental Management System ISO 14001 certified (first listed Nordic bank to be certified)

• Swedbank Environmental and Sustainability training awarded best e-learning in Swedish Learning Awards

• First Nordic bank to establish a group-wide ban on financial services to production of nuclear weapon and illegal weapons

• Group Wide Human Rights Risk Assessment carried out

• Group wide sustainability e-learning developed and made mandatory

• Establishment of a group-wide Climate strategy including a group-wide exclusion of companies producing coal to

more than 30% of its turnover

• Development of group-wide sector guidelines for sustainability dialogues and sustainability assessment in investments,

lending and procurement

• Establishment of Swedbank sustainability week in order to promote social, environmental and economic sustainability

awareness

• Headquarters in Stockholm certified in accordance with EU Green Building and Miljöbyggnad SILVER

• Non-financial information integrated in the Annual Report

• Greenhouse gas emission reduction of 51% since 2010

• First group-wide sustainability report in accordance with GRI G4

• Establishment of a group-wide Swedbank’s Business Ethics council, replaced former Ethics Committee

2017 • Swedbank Green Bond Framework

1820 • Sweden’s first savings bank was started with the purpose to combat poverty

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Sustainability is core for Swedbank Our vision, strategy and goals

• Sustainability is a core fundament for Swedbank.

• We integrate sustainability considerations in our business

decisions, operations and business development.

• We take lead for systemic change and bring innovative

solutions that inspire people and businesses to make

sustainable choices.

Oct 2017

7

Promote a sound and sustainable

economy by strengthening the bank’s and

our customers’ long-term competitiveness.

Financial sustainability

Contribute to society’s development

through all our businesses by actively

promoting human rights, fair working

conditions, diversity and gender equality.

We are engaged in social challenges in the

areas of education, employment and

integration.

Social sustainability

Contribute to sustainable use of earth’s

finite resources and lower greenhouse gas

emissions through all our businesses.

Climate change and resource efficiency

issues are integrated in our business

decisions.

Environmental sustainability

We enable

people, businesses

and society to grow.

Open Simple Caring

Promoting a sound and sustainable financial

situation for the many households and businesses.

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Sustainability governance

Oct 2017

8

Commitments Frameworks &

Guidelines Governance

• UN Global Compact

• UN Environmental Programme for the

Financial Sector

• UN Framework on Business and

Human Rights

• Financial Coalition against

Commercial Sexual Exploitation of

Children

• UN Principles for Responsible

Investments

• Montreal Carbon Pledge

• Global Investment Performance

Standards

• Policies

– Sustainability Policy

– Equality and diversity

– Credit policy

– Policy on Human Rights

– Environmental Policy

– Anti-corruption Policy

– AML

– CTF and KYC Declaration

– Tax Policy

• Position statements

– Paper Defense Equipment

– Statement Climate Change

– Exclusion list of companies that

Swedbank Group does not finance or

invest in

• Code of Conduct

• Sector Guidelines

• Board of directors are ultimately

responsible for governance of

Swedbank’s sustainability work

• CEO decides on the Group’s position

statements

• Swedbank’s Business Ethics Council

addresses issues where business

ethics and sustainability are critical

factors in business decisions

• ISO 14001 compliant environmental

management system

• Strategy and goals

Monitoring & Reporting

• Annual Report

• GRI Report

• Climate review report

• Climate impact of funds

• Reporting on responsible

investments

• Investor queries

• External and internal audits

International Commitments:

• UN Global Compact

• UN Environmental Programme for

the Financial Sector

• UN Framework on Business and

Human Rights

• Financial Coalition against

Commercial Sexual Exploitation of

Children

• UN Principles for Responsible

Investments

• Montreal Carbon Pledge

• Global Investment Performance

Standards

• Policies

– Sustainability Policy

– Equality and diversity

– Credit policy

– Policy on Human Rights

– Environmental Policy

– Anti-corruption Policy

– AML & Counter Terrorist

Financing

– Tax Policy

– Policy on Responsible

investments

• Position statements

– Statement Defense Equipment

– Statement Climate Change

– Exclusion list of companies

• Code of Conduct

• Sector Guidelines

• Board of directors

– are ultimately responsible for

governance of Swedbank’s

sustainability work

• CEO

– decides on the Group’s position

statements

• Swedbank’s Business Ethics

Council

– addresses issues where

business ethics and

sustainability are critical factors

in business decisions

• Green Bond Committee

• ISO 14001

– compliant environmental

management system

• Strategy and goals

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SDG 4: Quality Education

• “Lyckoslanten” – an economy magazine for young students,

340 000/year

• Financial literacy lectures for students in Sweden and the

Baltics

• In-house mandatory training and competence development of

our employees in sustainability and environmental issues.

SDG 7: Affordable & Clean Energy

• Solar Energy Park in Strängnäs

• Green Bonds (real estate & renewable energy)

SDG 8: Decent Work & Economic Growth

• Labour rights evaluated in sustainability risk

assessment

• Focus on entrepreneurship in all home-markets

o “Rivstart” in Sweden

o “Prototron”- in Estonia

SDG 10: Reduced Inequalities

• “A job at last”, “Young jobs”

• Bank-ID available in several languages

• Project to launch recitation services for the visually

impaired

SDG 13: Climate Action

• Skype-meetings to reduce travel

• Sustainability Funds and the carbon foot print of

active equity funds is presented twice a year

• Sustainability assessment including climate risks

in credit and investment processes

SDG 3: Health & Wellbeing • In-house: Sustainable workforce

• External: Sponsoring sports association

The UN Sustainable Development Goals Swedbank’s contribution covers several areas

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The first global rating of fund's climate impact has

given 14 of Swedbank Robur's highest scores and

three funds second-highest rating. In total, the

organization has gone through 2500 funds in

Europe and only eight percent received the

highest rating (Jul 2017).

Swedbank´s current green position External recognition of our sustainability approach

Oct 2017

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Five of Swedbank Robur's sustainability funds

have met the stringent requirements of the Nordic

Ecolabel (Oct 2018).

The Nordic Ecolabel makes it easy to find and

choose funds that encourage companies to

develop in a sustainable direction.

2011 2012 2013 2014 2015 2016 2017

Swedbank gradually increases the scoring in DJSI.

Swedbank is classified as Leader by Sustainalytics.

ESG Rating AA (AAA-CCC)

Sustainable Brand Index B2B 2017 Industry winner.

Dow Jones

Sustainability

Indices

Sustainalytics

MSCI

Sustainable

Brand Index

Nordic Swan Ecolabel

Climetrics

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2. Swedbank Green Bond framework

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Swedbank Green Bond Framework In accordance with Green Bond Principles

• Renewable energy

• Energy efficiency

• Clean transportation Use of Proceeds

• Sustainability Risk Assessment in Credit Process

• Project selection and Green Asset Application

• Green Bond Sustainability Analysis and Recommendation

• Eligible Asset Approval in Green Bond Committee

Green Asset Selection Process

• Green Asset Register

• Tracking of Green Bond Proceeds

Management of Proceeds

• Use of Proceeds Reporting

• Impact Reporting Reporting

Oct 2017

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• Pollution prevention and control

• Sustainable management of living natural resources

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Use of proceeds

Oct 2017

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2017 Bond Category SDG Criteria

Renewable Energy SDG 7

SDG13

• Wind energy

• Solar energy

• Small scale hydro energy and refurbishment

Energy Efficiency SDG7

SDG11

SDG13

• Green Buildings

• Energy efficiency

Sustainable Management of Living Natural

Resources SDG15 • Sustainable forestry

• Sustainable agriculture

Pollution Prevention and Control SDG11 • Waste management

Clean Transportation SDG9

SDG11

SDG13

• Public passenger transport

• Low carbon vehicles

• Transportation solutions, systems and supporting infrastructure

1. Use of proceeds 2. Green Asset Selection

Process 3. Management of proceeds 4. Reporting

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Green Asset Selection Process

Oct 2017

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Ineligible

assets Swedbank Green

Bond Framework

and Eligible Sector

Criteria

Policy Framework,

Sector Guidelines

and Exclusion list

Ineligible

assets

Ineligible

assets

Client On-Boarding KYC

Credit Risk and Sustainability Risk Analysis

Screening for Eligible Assets

Green Bond Sustainability Analysis

Green Bond Committee

Eligible

Assets

1. Use of proceeds 2. Green Asset Selection

Process 3. Management of proceeds 4. Reporting

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Management of proceeds

Oct 2017

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1. Use of proceeds 2. Green Asset Selection

Process 3. Management of proceeds 4. Reporting

• The Green Asset Register

– comprises all approved eligible assets

– monitored and reviewed at least annually

– ensure all proceeds from Green Bond issuances are

allocated to a corresponding amount of Green Assets

– ensure Green Assets not are nominated to other bonds

during the term of the specific bond

• Turnover in Green Assets

– Green Assets are primarily replaced by other Green Assets

meeting the criteria of the Swedbank Green Bond

Framework

Green Bond

Proceeds

Green Asset

Register

Green Assets

Reserve

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Reporting

Use of Proceeds Reporting

The Green Bond proceeds published at least

annually on the Swedbank Green Bond website

• Total amount of Green Bonds issued

• Allocation of proceeds within each Green

Bond’s Asset Category

• Total amount of unused proceeds

• Share of proceeds used for financing/re-

financing

Impact Reporting

The environmental and climate impact published

annually in an Impact Report.

• Details the environmental and climate impacts of

the financed portfolios

• Published until the maturity of each Green Bond

• Comprise relevant KPI´s outlined in the table on

impact indicators

Oct 2017

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1. Use of proceeds 2. Green Asset Selection

Process 3. Management of proceeds 4. Reporting

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Impact indicators

Oct 2017

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Green Bond Principles category Swedbank category SDG Quantitative impact indicators

Renewable Energy Wind, Solar and Hydro energy SDG7

SDG13

Installed capacity added (MW)

Expected annual generation (MWh)

Estimated annual GHG emissions avoided (tCO2e)

Energy Efficiency

Energy storage, Smart grids, District heating

or cooling

SDG7

SDG11

SDG13

Storage capacity (MW)

Distribution capacity (MW)

Green Buildings Amount of energy saved (MW)

Estimated annual GHG emissions reduced or avoided (tCO2e)

Sustainable Management of Living Natural

Resources

Sustainable forestry and agriculture SDG15 Land area certified (hectare)

Cropland under organic agriculture practices (hectare)

Pollution Prevention and Control Waste management SDG11 Recycling (tons)

Production capacity (MW)

Clean Transportation Public passenger transport and low carbon

vehicles

SDG9 SDG11

SDG13

Passenger/public passenger transport (No)

Estimated annual GHG emissions reduced or avoided (tCO2e)

GHG emissions per kilometer (CO2e)

1. Use of proceeds 2. Green Asset Selection

Process 3. Management of proceeds 4. Reporting

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External Review

Second opinion

• Second Opinion from DNV GL to confirm the

transparency and robustness of the

Swedbank Green Bond Framework.

• The Second Opinion is published on the

Swedbank Green Bond webpage.

Assurance

• An independent external auditor will be

requested to review the Eligible Green Asset

allocation, to provide limited assurance on the

allocation of proceeds conformity to the

Swedbank Green Bond Framework.

• The assurance report will be published on the

Swedbank Green Bond webpage.

Oct 2017

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3. Targeted inaugural Green Bond transaction

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Swedbank Green Bond Swedbank has the ambition to issue an inaugural Green Bond during 2017

Oct 2017 20

• Issuer: Swedbank AB

• Type: Senior unsecured note

• Currency: EUR

• Targeted volume: EUR 500m

• Tenor: 5 years

• Coupon: Fixed

Overview of targeted inaugural transaction

Swedbank intends to be a regular issuer in the Green bond market

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Green Bond 2017 – portfolio distribution

Category Sub-category Green bond asset

portfolio amount

Description of

underlying assets

Number of

underlying assets*

Annual energy

generation (GWh)

Annual energy

saving (MWh)

Annual GHG

emissions

avoided/reduced

(tCO2e)

Renewable energy Wind 277 Wind farms 171 1 809.45 - 461 589

Green Buildings Commercial and

Residential 362 Buildings** 21 - 4 386 75

Total - 639 - 192 1809.45 4 368 461 664

Oct 2017

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* Number of individual wind farms and buildings

** Buildings with at least; LEED “Gold”, BREEAM ”very good”, Miljöbyggnad ”silver” or Green Building

57%

43%

Distribution by category (EUR)

Green Building

Renewable Energy

Portfolio content:

• Swedish and Norwegian assets

• Refinancing a selection of green bond assets of:

– Renewable energy

• Loans to finance wind energy power plants in Sweden and Norway

– Green buildings

• Residential mortgage loans for energy efficient buildings in Sweden

• Commercial real-estates loans for energy efficient buildings in Sweden

49%

8%

43%

Distribution by sub-category (EUR)

Commercial

Residential

Wind energy

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Impact Reporting Wind energy

2017 22

Location: Norway

Wind farms: 171

Capacity: 1 809,45 GWh

Emissions avoided: 461 589 tCO2e

Distribution of wind farms

Sweden: 66

Norway: 105

Total production

1 810 GWh/year

Total emissions avoided

461 589 tCO2e/year

461 589

268 420

193 169

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

Avoided emissions (tCO2e)

Total

Sweden

Norway

1809.45

1307.5

501.95

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Annual renewable energyproduction (GWh)

Total

Sweden

Norway

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4386

75

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Energy savings(MWh)

Avoided emissions(tCO2e)

Impact reporting Green Buildings

2017 23

Energy savings

4 386 MWh/year

Distribution of green buildings

Sweden: 21

Total emissions avoided

75 tCO2e/year

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Appendix

2

4

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I. Sustainability and Green assets

2

5

Liquidity

and

funding

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Swedbank Group Sustainability targets

Oct 2017

26

Greenhouse gas emissions

Energy consumption

Business Travel

Reduce Swedbank’s direct greenhouse gas emissions by 60% by 2018

using 2010 as a base year.

In 2017 reduce energy consumption by 5% and increase the amount of

renewable energy

Increase usage of virtual meetings by 20% during 2017 compared with

previous year

Down by 48% by 2016.

2016: 116 335 MWh (-11%)

2016: 6.7 million (+10%)

Products with a sustainability profile

Financial literacy

– Be appointed lead manager of at least 8 green bonds

– Offer at least 12 equity-linked bonds (SPAX) with a sustainability profile

Increase financial awareness and knowledge among children and young

adults by offering various educational activities in schools in our home

markets

2016: Green bond lead

manager 8 (+60%), SPAX

16 (+166%)

2016: 1 300 lectures by

Swedbank employees and

lectured 48 000 students

Asset management Implement an enhanced Policy for Responsible Investments for all our

funds

Gender and diversity (2017-2020)

Employee engagement (2017)

Sustainable employees (2017)

– Eliminate unwarranted wage differences

– Achieve gender equality at the highest management level

– Increase diversity in general, with a focus on employees with a foreign

background

Increase employee engagement and improve recommendation index by

reaching 25 or higher**.

– Total sick leave in Swedish operations < 2.8%

– Long-term healthy employees > 80%

– Sustainable employee Index 78

2016: wage difference women vs

men in management positions -35%*

2016: engagement index 82,

recommendation index 15**

2016: sick leave 3.6%, long-term

healthy employees 71%***

Fin

an

cia

l E

nviro

nm

enta

l S

ocia

l

* Not taking into consideration management level. One reason for the difference may be that men still hold more management positions at a higher level with higher salaries

** Likelihood of recommending Swedbank as an employer externally, calculated on a scale of 0–10, where the share of negative responses (0-6) is subtracted from the share of positive responses (9–10).

*** Refer to employees with a maximum of five working days of sick leave during a rolling 12 month period.

2016: Integrated sustainability in

all investment processes.

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Social engagement is an important part of corporate identity

Oct 2017

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Against bullying:

Internships internships for young people.

A Job at Last (Äntligen Jobb) - help

arrange internships for foreign-born

academics.

Financial literacy & education support private finance subject in

secondary schools

Publish Lyckoslanten, one of Sweden’s

biggest children’s magazines

Introduction to business life Företagsamhet), trains students in

entrepreneurship.

Junior Achievement initiative – encourage

entrepreneurial thinking

Introduction to business life I will be, an initiative introducing young

people to different professions in Lithuania.

Junior Achievement initiative – encourage

entrepreneurial thinking

Financial literacy & education Swedbank employees in the Baltics together with

social partners arrange lectures in economics and

finance for upper secondary students (1300

Support to teachers Through Mission Possible

we help students in Latvia to become

inspiring teachers and future leaders.

Local associations/communities

We engage in local community associations, focusing on initiatives that benefi

Portal for donations: Supporting I Love to Help portal for

donations in Estonia Collaboration with the Friends Foundation (Stiftelsen

Friends) to prevent bullying among children.

Supporting I Love to Help portal for

donations in Estonia.

Young Jobs (Unga Jobb) – helping to arrange

internships for young people.

A Job at Last (Äntligen Jobb) – helping to

arrange internships for foreign-born academics.

Back to school initiative, which encourages Estonians to

donate their time and knowledge as guest lecturers in schools.

Lectures in economics and finance for upper secondary

students arranged by Swedbank employees in the Baltics

together with social partners (1300 during 2016).

Young Economy (Ung Ekonomi) – supporting

private finance subject in secondary schools

Publishing Lyckoslanten, one of Sweden’s

biggest children’s magazines.

Through Mission Possible helping students in Latvia to become inspiring

teachers and future leaders.

Collaborating with Young Enterprise (Ung

Företagsamhet), training students in entrepreneurship.

Supporting Junior Achievement initiative to

encourage entrepreneurial thinking.

Who needs it, an initiative introducing young

people to different professions in Lithuania.

Prototron – a fund in Estonia, where young

entrepreneurs can apply for a grant to launch

innovative products they have developed.

Engaging in local community associations, focusing on initiatives that benefit young people.

Financial inclusion gage in local community associations,

focusing on initiatives that benefit young

people.

Offering prepaid cards, used to pay out financial

assistance and pensions to individuals without ID

numbers or bank accounts (e.g. asylum seekers).

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Use of proceeds

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1. Use of proceeds 2. Green Asset Selection

Process 3. Management of proceeds 4. Reporting

Category SDG Criteria

Renewable Energy SDG 7

SDG13

• Wind energy

• Solar energy

• Small scale hydro energy or investments in existing larger hydro power plants for refurbishments without increasing the size of its impoundment facility

Energy Efficiency SDG7

SDG11

SDG13

• Buildings with an energy performance classification in the energy declaration issued by the Swedish National Board of Housing, Building and Planning (Sw. Boverket) of at least level B.

• Buildings which meet recognised environmental standards such as;

i. BREEAM or BREEAM-SE (minimum certification “very good”)

ii. LEED (minimum certification “gold”)

iii. Sweden Green Building Council Miljöbyggnad (minimum certification “silver”)

iv. Green Building

v. any equivalent certification as determined by Group Sustainability at Swedbank

• Property upgrade of existing commercial or residential buildings which results in an energy consumption of at least 25% below the average national energy consumption of an equivalent

building.

• Energy efficiency projects include infrastructure, technology and processes such as energy storage, smart grid solutions and district heating/cooling from renewable energy sources that

results in reduced energy losses of at least 25 per cent.

Sustainable Management of Living Natural Resources

SDG15 • Sustainable forestry defined as forestry certified by the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC)

• Sustainable agriculture defined as certified organic farming in compliance with national and EU-legislation.

Pollution Prevention

and Control

SDG11 • Waste management such as recycling and waste to energy generation defined as biogas production of organic waste, non-recyclable municipal waste for incineration or forest biomass

from areas that have, or meet the requirements for, FSC or PEFC certification.

Clean Transportation SDG9

SDG11

SDG13

Clean transportation defined as public passenger transport and low carbon vehicle solutions, systems and charging/supporting infrastructure reducing air pollution and climate impact

including:

• Public passenger transport such as electric rail, metros, trams and electric or hybrid buses.

• Low carbon vehicles defined as electric, fuel cell and hybrid vehicles.

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Green Asset Selection Process Sustainability Analysis

Oct 2017

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Review of; application,

environmental impact

assessment including

stakeholder engagement,

technical due diligence and

calculation of climate impact

Review of; application, energy

declaration/documentation,

certificates and calculation of

climate impact.

Green Bond Sustainability Analysis

TDD

Renewable energy Green buildings

Application EIA

Analysis

Evaluate eligibility against Green Bond

Framework

Energy

declaration Application Certificates

Analysis

Evaluate eligibility against Green Bond

Framework

Result and recommendation is sent to Green Bond Committee

Approval of eligible asset in Green Bond Committee

1. Use of proceeds 2. Green Asset Selection

Process 3. Management of proceeds 4. Reporting

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Green bond assets – ”pre-issuance impact report”

461 589

268 420

193 169

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

Avoided emissions(tCO2e)

Total

Sweden

Norway

Oct 2017

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95

5

Distribution of building types (%)

Commercial

Residential

76

5

14

5

Distribution of Building Certificates (%)

Green building

Miljöbyggnad

BREEAM

LEED

4386

75

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Energy savings(MWh)

Avoidedemissions(tCO2e)

KPI Per Year Per 3 years Per 5 years

Energy savings (MWh) 4 386 13 158 21 930

Avoided emissions (tCO2e) 75 225 375

KPI Per Year Per 3 years Per 5 years

Energy production (GWh) 1 809,45 5 428,35 9 047,25

Avoided emissions (tCO2e) 461 589 1 384 767 2 307 945

Green Buildings Wind Energy

1809.45

1307.5

501.95

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Annual renewableenergy production

(GWh)

Total

Sweden

Norway

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Green Bond Assurance – DNV-GL

Oct 2017

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DNV GL has received numerous external recognitions and awards for our leadership in

non-financial assurance:

Corporate Register’s Credibility through assuranceaward

Best Verification Company EU ETS (2014)

Best Verification Company Kyoto Project Credits (JI & CDM, 2014)

Accredited verifier for Verified Carbon Standard and Gold Standard; accredited to American National

Standards Institute’s ISO Standards 14065/ 14064-3

The DNV approach:

Apply our technical expertise with access to over 16 000

specialists

Experienced in auditing, assurance, and certification

Rely on trusted standards and guidelines

Provide flexibility through partnership and dialogue with the

issuer

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II. Swedbank overview and financial highlights

3

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Swedbank Low-risk, cost efficient and well capitalised

Source: Swedbank Fact book 3Q 2017, Annual Report 2016 33

Large and diversified customer base Leading retail bank in our 4 home markets

7m PRIVATE CUSTOMERS

Solid capitalisation 230bps buffer to regulatory requirement

23.9%

Focus on Mid-corp and SME segments 18% corporate lending market share in Sweden

600k CORPORATE CLIENTS

Stable profitability Return on equity target of at least 15%

15.4% YTD

Low risk Credit impairment ratio

0.08% YTD

Market-leading cost efficiency Cost income ratio

38% YTD

This is

Swedbank

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Market leading position in our home markets

* Excluding the Swedish National Debt Office and repurchase agreements

** Bank Giro for Sweden, domestic payment transactions (Estonia, Latvia, Lithuania)

Source: Swedbank Fact book 3Q 2017

34 Swedbank Other

Loans (private)* Loans (corporate)* Deposits (private) Deposits (corporate) Payments** Funds

39%

61%

34%

66%

47%53% 55%45%

31%

69%

31%

69%

59%

41%

50%50%

49%51%

21%

79%

37%

63%

18%

82%

34%

66%

17%

83%

17%

83%

23%

77%

42%

58%

15%

85%

19%

81%

21%

79%

23%

77%Sweden

Estonia

Latvia

Lithuania

42%58%

42%58%

37%

63%

This is

Swedbank

© Swedbank

Public

Information class

Strong financial position

35

Low risk Stable earnings Market-leading cost

efficiency

Credit impairment (bps) Return on equity (%) Cost / income ratio (%)

Liquidity and capital ratios (%) Profit before impairments (SEK bn) Total expenses (SEK bn)

Sep 2017

This is

Swedbank

© Swedbank

Public

Information class

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016

NII NCI NGL Other

Lending and deposits

62%

Other14%

Asset Management

10%

Payment, Cards9%

Treasury, Trading and

Capital

Markets5%

Stable and profitable business mix - retail bank profile

Source: Swedbank Fact book 2Q 2017 and YE 2016 report 36

• 86% of total loans in Sweden

• 50% Swedish mortgages

• Baltic banking very profitable

• 10% of Group lending

• 19% of Group operating

profit, YTD 2017

• Sweden’s largest fund

manager (SEK1.2trn AuM)

• 5th largest card acquirer &

10th largest card issuer in

Europe

Net Interest Income Net Commission Income Total income

This is

Swedbank

© Swedbank

Public

Information class 37

Swedbank strategy

Offering based on

customer need and

expectations

An available

full-service bank

High cost

efficiency

Low risk

Sustainability

and customer

value through a

responsible

core business

Strategy

© Swedbank

Public

Information class

Savings

Key priorities

Jun 2017 38

Customer Interaction

Seamless omni-channel

customer journey

One financial access point for

customers

Proactive, tailor-made product

offers and advice

Regain market share through

high-quality digital savings offer

Increase focus on

pension savings

Customer-centric

Financial Planning Platform

Lending & Payment

Fully-digital

mortgage process

Enhance corporate relationships

with our improved cash

management solution

Most convenient payments

solutions for consumers

Strategy

© Swedbank

Public

Information class

Customers w ithout Internet

bank agreement29%

Connected customers (less

than monthly usage)24%

Digitally active customers

47%

Digitalisation – cost and income opportunities 90% of our customers are happy or very happy with our digital services

Note: Data relates to Swedish Banking 39

• Further potential in manual to digital sales

transformation

• Customers increasingly connected via our

digital channels

• Higher transaction volumes

• More cross-selling opportunities

Increase revenue via digital banking Improve cost and sales efficiency

0%

20%

40%

60%

80%

100%

Payments Savings &pensions

Lending Insurance

Digital sales Manual sales

Strategy

© Swedbank

Public

Information class

Strategic achievements - YTD 2017

40

Launched in Sweden Already operating in the Baltics

Fully digital consumer lending

Strategic co-operation with Kepler Cheuvreux

Enhanced equity capabilities

Personal finance app for customers Mina Tjänster

Fintech partnership

SmartID launched in the Baltics

Enables faster transaction process for customers

Digital customer identification

and authorisation

PayEx acquisition

Regulatory approval received

Enhanced merchant omni-

channel payment solutions

Retail channels

Positive AuM inflows

Strategy

© Swedbank

Public

Information class

Swedbank enlarges its green footprint

41

Swedbank’s Green Bond Framework is compliant with the Green Bond Principles.

The proceeds of each Swedbank Green Bond will be used to (re)finance loans and

investments that promote the transition to low-carbon, climate resilient and sustainable

economies and provide clear environmental benefits.

Sustainable Brand Index B2B 2017

Industry winner.

2011 2012 2013 2014 2015 2016 2017

Swedbank gradually increases the scoring in DJSI.

SEK 200m

Due 2020

August 2017

Issuer: Vasakronan

Issue date: 5 October 2017

Use of Proceeds: Financing projects with environmental benefits

Certification: Cicero

Role: Sole Arranger

SEK 150m

Due 2020

October 2017

Issuer: Vasakronan

Issue date: 22 August 2017

Use of Proceeds: Financing projects with environmental benefits

Certification: Cicero

Role: Sole Arranger

Issuer: Fabege

Issue date: 22 August 2017

Use of Proceeds: Financing of green buildings

Certification: Sustainalytics

Role: Sole Arranger

SEK 300m

Due 2021

August 2017

Continued activity in Green bond transactions

Eligible Green Assets Sustainable Development Goal

Renewable Energy SDG7 and SDG13

Energy Efficiency SDG7, SDG11 and SDG13

Sustainable Management of Living Natural Resources SDG15

Pollution Prevention and Control SDG6 and SDG11

Clean Transportation SDG9 and SDG11, SDG13

Robur’s sustainability funds recognized

Nordic Swan Ecolabel. Five of Swedbank Robur's

sustainability funds have met the stringent

requirements that apply when the Nordic Ecolabel

makes its entry into the fund market.

The Nordic Ecolabel makes it easy to find and

choose funds that affect companies in a

sustainable direction.

Dow Jones

Sustainability

index

Green Bond Framework established

Industry winner and improved sustainability scoring

Strategy

© Swedbank

Public

Information class

Swedbank creates value

42

Dividend per share 75% payout ratio for 5th year in a row

SEK 13.20

Return on Equity >15% target

15.4% YTD

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

23.9%

Source: Swedbank Fact book 3Q 2017

Strategy

© Swedbank

Public

Information class

Quarterly financial update

4

3

Quarterly

financial

update

© Swedbank

Public

Information class

Swedish Banking

Good loan volume growth

SEKm Q3 17 Q2 17 ▲QoQ

Net interest income 3 811 3 792 19

Net commission income 1 860 1 881 -21

Other income 444 442 2

Total income 6 115 6 115 0

Total expenses 2 213 2 217 -4

Profit before impairments 3 902 3 898 4

Credit impairments 66 86 -20

Sep 2017 44

• Net interest income

– Continued mortgage loan volume growth and

stable back-book margins

– Strong deposit volume growth

• Net commission income

– PayEx consolidated in September

– Higher customer card activity while brokerage

and lending & guarantees were weaker

• Solid asset quality

Ratios Q3 17 Q2 17

ROE, % 21.5 21.4

C/I ratio 0.36 0.36

Volumes, SEKbn Q3 17 Q2 17 ▲QoQ

Loans 1 138 1 125 13

Deposits 519 510 9

Quarterly

financial

update

© Swedbank

Public

Information class

Baltic Banking

Continued solid performance

SEKm Q3 17 Q2 17 ▲QoQ

Net interest income 1 060 1 044 16

Net commission income 565 561 4

Other income 219 209 10

Total income 1 844 1 814 30

Total expenses 648 658 -10

Profit before impairments 1 196 1 156 40

Credit impairments -26 7 -33

Tax 283 155 128

Sep 2017 45

• Net interest income

– Loan volume growth in all three countries

– Stable margins

• Stable net commission income

• Negative FX effects

• Strong asset quality

• Higher tax expense due to increased

dividend policy in Estonia Ratios Q3 17 Q2 17

ROE, % 18.2 19.7

C/I ratio 0.35 0.36

Volumes, SEKbn Q3 17 Q2 17 ▲QoQ

Loans 146 142 4

Deposits 172 169 3

Quarterly

financial

update

© Swedbank

Public

Information class

Large Corporates & Institutions

Resilient result

SEKm Q3 17 Q2 17 ▲QoQ

Net interest income 896 892 4

Net commission income 525 587 -62

Net gains and losses 554 515 39

Other income 32 21 11

Total income 2 007 2 015 -8

Total expenses 840 884 -44

Profit before impairments 1 167 1 131 36

Credit impairments 195 307 -112

Sep 2017 46

• Stable net interest income

• Net commission income seasonally weaker

• Slower trading mitigated by FX effects

• Lower provisions for oil related exposures

Ratios Q3 17 Q2 17

ROE, % 13.1 11.4

C/I ratio 0.42 0.44

Volumes, SEKbn Q3 17 Q2 17 ▲QoQ

Loans 204 203 1

Deposits 129 126 3

Quarterly

financial

update

© Swedbank

Public

Information class

Group results

Stable result

SEKm Q3 17 Q2 17 ▲QoQ

Net interest income 6 208 6 090 118

Net commission income 2 917 3 000 -83

Net gains and losses 525 567 -42

Other income 768 736 32

Total income 10 418 10 393 25

Total expenses 3 883 3 966 -83

Profit before impairments 6 535 6 427 108

Credit impairments 235 400 -165

Other impairments 107 1 106

Tax 1 444 1 276 168

Net profit 4 743 4 746 -3

Sep 2017 47

Ratios Q3 17 Q2 17

ROE, % 15.0 15.6

C/I ratio 0.37 0.38

CET1 capital ratio, % 23.9 24.6

• Loan volume growth strengthened net

interest income

• Seasonally weaker net commission income

• Weaker net gains and losses due to lower

market volatility

• PayEx consolidated

– Total expenses FY 2017 expected at around SEK

16.1bn

– One-off impairment

– CET1 capital ratio negatively impacted by 37bps

• Solid asset quality

• Tax regime changes in the Baltics

Quarterly

financial

update

© Swedbank

Public

Information class

Capital

Strong capitalisation – no excess capital

Sep 2017 48

• CET1 capital decreased by SEK 0.1bn

− Positive effect from net profit of SEK

0.9bn excl. dividend

− Negative effect from PayEx consolidation

of SEK 1.1bn

• REA increased by SEK 12.8bn

• Buffer of around 230bps

25.0% 24.2% 24.6% 23.9%

21.6%

Q4 2016 Q1 2017 Q2 2017 Q3 2017 CET1 capitalratio

requirement

Quarterly

financial

update

© Swedbank

Public

Information class

6.3 0.2

-0.3

1.1

-1.5

7.0

406.7

419.5

400

405

410

415

420

425

Q2 2017 Exposurechange

Ratingmigration

(PD)

LGDchanges

Other creditrisk

Other risk Operationalrisk

Q3 2017

Increase Decrease

Capital

Increased REA

Sep 2017 49

• Exposure change increased primarily

due to loan volume growth

• Further model adjustments in

corporate portfolio relating to default

frequency

• PayEx consolidation increases REA

SEKbn

Quarterly

financial

update

© Swedbank

Public

Information class

Group

Solid asset quality

Credit impairments, SEKm Q3 17 Q2 17 ▲QoQ

Swedish Banking 66 86 -20

Baltic Banking -26 7 -33

Large Corporates & Institutions 195 307 -112

Swedbank Group 235 400 -165

Sep 2017 50

Ratios Q3 17 Q2 17

Credit impairment ratio, % 0.06 0.10

Share of impaired loans, gross % 0.55 0.53

Total provision ratio for impaired

loans, % 45 45

• Credit impairments in line with

expectations

Quarterly

financial

update

© Swedbank

Public

Information class

Capital considerations

5

1

Capital

– fully

loaded

CRD IV

© Swedbank

Public

Information class

4.5% 4.5%

3.5%3.0%

3.0%

1.3%

1.3%

2.5%

11.3%

2.5%

14.8%

1.7%

2.3%6.6%

8.2%2.0%

12.6%

2.0%

16.1%

Swedbank CET1 Requirements Swedbank CET1 Capital Ratio Swedbank Total CapitalRequirements

Swedbank Total Capital ratio

Systemic Riskcharge in Pillar 2

25% REA MortgageFloor

Individual Pillar 2charge

Capital ConservationBuffer

Countercyclicalbuffer (2.0%)

Systemic Risk Buffer

Min. Additional T1and T2 capital

Minimum CET1Requirement

Composition of Swedbank’s CET1 and total capital ratio requirements

Sep 2017 52

21.6%

30.9%

23.9%

27.3%

230bp

Pill

ar

1

Pill

ar

2

Capital

– fully

loaded

CRD IV

Automatic MDA

Restrictions

Available Distributable Items

Swedbank AB (parent comp) FY 2016** Q3 2017

Share premium reserve 13 206 13 206

Retained earnings 41 277 38 588

Available distributable items 54 483 51 794

Dividend* -14 695

Comprehensive income 6 988

other 195

ADI Q1 2017 46 971

* paid out in April 2017

** Based on fully audited numbers

Available Distributable Items

© Swedbank

Public

Information class

Regulatory uncertainty remains

• Basel proposal – input and output floors

– Awaiting final details on new standardised approach

– Discussion on level of output floor on-going

– Likely long phasing in period – potentially until 2027

– Swedish FSA will review Pillar 2 requirements imposed on Swedish banks

– “Basel floors won't force Swedish banks to issue capital.” Fitch Ratings, April 2017

• IFRS9 impact

Sep 2017 53

Capital

– fully

loaded

CRD IV

© Swedbank

Public

Information class

0

20

40

60

80

100

120

140

Loss absorption amount Swedbank total capital

Recapitalisation amount Senior unsecured debt >1Y*

Regulatory uncertainty remains

Sep 2017 54

MREL

■ EU banks under BRRD

■ 1st Jan, 2018 – transition period - fully implemented 1st Jan, 2022

■ Set individually by Riksgälden (National Debt Office)

Loss Absorption Amount (LAA): Total capital requirements less

combined buffers in Pillar1, Mortgage REA floor 15-25% and

systemic risk buffer in Pillar2

Recapitalisation Amount (RCA): Total capital requirements less

combined buffers in Pillar1.

■ Capital (LAA) + Senior >1Year (RA)

■ Yes

Applies to Swedbank:

What qualifies:

Amount:

Timing:

Relevance:

• Type of subordination is up to each

individual bank to decide:

− Structural (hold-co)

− Statutory (insolvency law)

− Contractual (documentation)

SEKbn MREL requirements

*Nominal amount

14.7%

20.5%

Capital

– fully

loaded

CRD IV

© Swedbank

Public

Information class

Household loans(90% mortgages)

Shipping and offshore, TransportationManufacturing

Other corporate lending

Other property management

Residential properties

Agriculture and forestry

Hotels and restaurants, Retail

70%

15%

8%

7%

Tenant ow ner associations

0%

5%

10%

15%

20%

25%

SHB Nordea SEB Swedbank

2015

2016

2017

2018

54%46%

Private

Corporate69%

31%Private

Corporate

Asset portfolios – low risk

Sep 2017 55

Sweden Baltic banking

Group loan book* Q3 2017, total SEK 1 488bn CET1 – EBA stress test, 2016, %

* Loans to the public excl. loans to credit institutions and SNDO

Loan distribution

Asset

quality

© Swedbank

Public

Information class

Liquidity and funding

5

6

Liquidity

and

funding

© Swedbank

Public

Information class

Core balance sheet structure

Sep 2017 57

Lithuania Latvia

Other corporate

lending, Sweden &

other Nordic countries

Other private, Sweden

Swedish

mortgage loans

Senior

unsecured debt

Covered

bonds

Deposits

CET1

Assets Liabilities SEKbn SEKbn

Estonia

Liquidity

and

funding

• Simplified balance sheet

Suppl. capital

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

Q3 20170

200

400

600

800

1 000

1 200

1 400

1 600

1 800

Q3 2017

© Swedbank

Public

Information class

0

2 000

4 000

6 000

8 000

10 000

12 000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1990 2000 2005 2010 2015 2016

Th

ou

san

ds

Deposits, cash and retail bonds (LHS) Equities (LHS)

Pension savings and mutual funds (LHS) Other financial assets (LHS)

Total financial assets (RHS)

<5Y 3-7Y >7Y

58

Covered bond strategy

Swedish households’ financial assets Covered bond strategy Sweden

SEK 300-375bn

Other

SEK 20-50bn

EUR/USD

SEK 100-150bn

Maturity, years

SEKbn

Sep 2017

Liquidity

and

funding

© Swedbank

Public

Information class

0

20

40

60

2017 2018 2019 2020 2021 2022 2023 2024-

Senior unsecured debt

Senior unsecured debt strategy

Sep 2017 59

Senior unsecured debt maturity profile SEKbn*

*Nominal amount

Liquidity

and

funding

© Swedbank

Public

Information class

0

10

20

30

40

50

60

70

80

90

100 Covered bonds Senior unsecured debt

Planned, covered bonds Planned, senior unsecured debt

0

100

200

300

400

500

600

700

0 20 40 60 80 100120140160180200220240260280300320340365

Conservative funding position

Sep 2017 60

• LCR 145% (Swedish FSA definition FFFS 2012:6)

• NSFR 109% (Basel committee)

• Issued SEK 161bn of term funding YTD Q3 2017

• Plan to issue around SEK 200bn in 2017

Term funding issuance – completed and planned

Days forward

SEKbn SEKbn Prefunded for more than 12 months

Survival horizon

Liquidity

and

funding

© Swedbank

Public

Information class

Private placements – active in both covered bonds and senior unsecured debt

• All major currencies

• Bullet format, FRN or Fixed

• EUR 10m equivalent minimum size

• Sweet spots:

– Senior: 2.5-5Y

– Covered: 3-8Y

– Longer tenors also possible

• Open to larger placements with smaller investor

groups

• Open to tap existing bonds

• Listing is optional

• FRN’s (SEK and EUR) – issued with a

“strike adjustment spread”*

• Program formats available:

– Senior unsecured debt: MTN, NSV and potentially

USD 144a format

– Covered bonds: MTN, RCB and Norwegian CB

program

61

*Spread added to the coupon to avoid negative coupon fixings. Bond issued above par to compensate for this. The above par value reflects the NPV of the adjusted

spread

Liquidity

and

funding

© Swedbank

Public

Information class

Liquidity reserve

Sep 2017 62

According to the template defined by the Swedish Bankers' Association

SEKm

Cash and holdings in central banks1

336 284

Deposits in other banks available overnight 3

Securities issued or guaranteed by sovereigns, central banks or multilateral development banks 136 002

Securities issued or guaranteed by municipalities or public sector entities 5 579

Covered bonds 56 942

- Issued by other institutions 52 889

- Own issued 4 053

Securities issued by non-financial corporates 175

Securities issued by financial corporates (excl. covered bonds) 329

Other

Total2

535 314

1) Including loans to the Sw edish Ntional Debt Office

2) 95% of the securities in the liquidity reserve per Q3 2017 are rated AAA. The rating requirement is AA-.

Assets included in the liquidity reserve should comply w ith the follow ing:

- assets shall be under the control of the Treasury function in the bank

- assets can not be encumbered

- market values are used for the assets

- only unencumbered securities receiving 0-20% risk w eight under the standardised approach to credit risk of the Basel II framew ork can be included

- securities received in reverse repo transactions shall be included in the liquidity reserve and securities used as collateral for repo transactions shall be excluded

Liquidity

and

funding

© Swedbank

Public

Information class

Rating

• On 1 September 2017, Moody’s affirmed Swedbank's ratings at Aa3/P-1 with a stable outlook. The ratings reflect Swedbank’s

strong credit quality, solid regulatory capital and stable earnings, underpinned by its established franchise in Sweden. Swedbank is

also expected to be broadly resilient to the risks in the residential housing market and household sector in Sweden.

• May 26, 2016, Fitch upgraded the rating to AA- from A+, with a stable outlook. The main drivers behind the upgrade

are: Execution of the low risk strategy including conservative risk-returns and underwriting standards, strong retail

franchise and continued strong capitalisation.

• February 17, 2016, S&P affirmed the rating of Swedbank at AA-/A-1+. The rating reflect Swedbank’s strong business position,

given the market-leading retail position, strong revenue performance, and efficiency, as well as prudent management and strategy.

S&P also assess the capital and earnings as strong, reflecting the strong earnings capacity. The outlook on the rating is negative,

reflecting S&P’s view of heightened economic risk for the Swedish economy.

Sep 2017 63

Short Long SACP1 Short Long BCA1 Short Long VR1

Swedbank A-1+ AA- a+ P-1 Aa3 a3 F1+ AA- AA-

Swedbank Mortgage A-1+ AA- - P-1 Aa3 - - - -

Covered bonds - AAA2 - - Aaa - - - -

1 Standalone Rating2 Stable outlook

S&P (Negative) Moody's (Stable) Fitch (Stable)

Liquidity

and

funding

© Swedbank

Public

Information class

Cover pool data

6

4

Swedbank is a labeled issuer of

the ECBC Covered Bond Label

Foundation

(www.coveredbondlabel.com )

© Swedbank

Public

Information class

Cover pool data1

Sep 2017 65

Repayment structure 7

– Amortising 66%

– Interest only 34%

Average loan size SEK 570 469

Number of loans outstanding 1 605 238

Number of borrowers 1 119 475

Number of properties 751 909

Dynamic pool Yes

Swedbank is a labeled issuer of

the ECBC Covered Bond Label

Foundation

(www.coveredbondlabel.com )

Rating, S&P / Moody’s AAA / Aaa

Total pool size SEK 915.7bn

Geographic distribution Sweden 100%

Current OC-level 72.0%

Weighted average seasoning 2 66 months

Average LTV 3, 4

– WA LTV on property level (Max LTV) 50%

Non-performing loans 5 None

Fixed /Floating interest loans 6

– Fixed 28.7%

– Floating 71.2%

1 As per 30 Sep, 2017

2 Public sector loans not included

3 Index valuation as per Aug, 2017 4 Maximum LTV: Residential 75%, Commercial 60%, Forest and Agriculture 70% 5 Past due loans > 60 days are not eligible for the cover pool 6 Floating interest loans < 365 days 7 Property level of cover pool

© Swedbank

Public

Information class

Cover pool data

Sep 2017 66

Swedbank is a labeled issuer of

the ECBC Covered Bond Label

Foundation

(www.coveredbondlabel.com )

Type of loans

(based on loan volume)

Residentials 91.9%

of w hich Single-family housing 56.9%

of w hich Tenant ow ner rights 20.5%

of w hich Tenant ow ner association 9.8%

of w hich Multi-family housing 4.7%

Public 0.8%

Commercial 0.7%

Forest & Agricultural 6.6%

100.0%

Geographical distribution, Sweden, per cent 30 Jun

(based on loan volume) 2017

North 6.4

Norrbotten county (BD) 1.3

Västerbotten county (AC) 2.4

Västernorrland county (Y) 1.5

Jämtland county (Z) 1.2

Middle (including Stockholm) 44.0

Dalarna county (W) 2.0

Gävleborg county (X) 2.1

Värmland county (S) 2.0

Örebro county (T) 2.5

Västmanland county (U) 2.4

Uppsala county ( C) 4.0

Södermanland county (D) 2.1

Stockholm county (including Stockholm) (AB) 26.9

South (including Göteborg and Malmö) 49.6

Västra götaland county (Including Göteborg) (O) 17.8

Östergötland county (E) 4.2

Jönköping county (F) 3.5

Halland county (N) 4.0

Kronoberg county (G) 2.1

Kalmar county (H) 2.9

Skåne county (including Malmö) (M) 13.1

Blekinge county (K) 1.4

Gotland county (I) 0.6

100.0

Population, Jun 2017

(thousands)

Sw eden 10 053

Stockholm, county 2 288

Västra Götaland, county (incl. Gothenburg) 1 681

Skåne, county (incl. Malmoe) 1 334

© Swedbank

Public

Information class

Cover pool loan-to-value distribution

• Weighted average LTV on property level 50%

Sep 2017 67

Swedbank is a labeled issuer of

the ECBC Covered Bond Label

Foundation

(www.coveredbondlabel.com )

LTV distribution per property1 LTV distribution by volume1, 2

1 Public loans of 0.8% of the cover pool are excluded as they are either guaranteed by a Swedish municipality or the government and have therefore no

LTV assigned to them. 2 LTV distribution as defined by the Association of Swedish Covered Bond Issuers (www.ascb.se)

0%

5%

10%

15%

20%

25%

30%

00-10 10-20 20-30 30-40 40-50 50-60 60-70 70-75

0%

5%

10%

15%

20%

25%

30%

00-10 10-20 20-30 30-40 40-50 50-60 60-70 70-75

© Swedbank

Public

Information class

Cover pool loan type and loan-to-value distribution

Sep 2017 68

Swedbank is a labeled issuer of

the ECBC Covered Bond Label

Foundation

(www.coveredbondlabel.com )

1excluding public sector loans of 0.8%

WA LTV per property type1

1

0%

20%

40%

60%

80%

100%

120%

0%

20%

40%

60%

80%

100%

120%

Single-familyhomes

Tenant ownerrights

(apartments)

Tenant ownerassociations

Multi-familyhousing

Commercial Forestry &Agricultural

Total alltypes

Percentage of the pool Average LTV per loan type

© Swedbank

Public

Information class

0%

10%

20%

30%

40%

50%

60%

70%

80%

0% -5% -10% -15% -20% -25% -30% -35% -40% -45% -50%

OC, Q317

Min req. 2%

Strong resilience to house price changes

Sep 2017 69

Swedbank is a labeled issuer of

the ECBC Covered Bond Label

Foundation

(www.coveredbondlabel.com )

• Current OC-level of 72%

• 2% legal minimum requirement

• Can withstand a severe house price drop

and still be able to issue AAA-rated

covered bonds

Over-

colla

tera

lisation

House price drop

House price sensitivity of the cover pool

© Swedbank

Public

Information class

Overview of the Swedish covered bond legislation

70

The Covered Bond Act entered into force on July 1, 2004 and is over-sighted by the Swedish FSA. Its main characteristics are:

Dual recourse to the issuer and cover pool

Dynamic, regulated pool of assets, frequently monitored by the Swedish FSA via appointment of an

independent inspector

Regulated valuation of cover pool assets which remain on the balance sheet

The cover pool may consist of certain mortgage credits, public credits and supplemental assets. There is no requirement to segregate mortgage and public credits.

Maximum LTVs: Residential 75%, Agricultural 70%, Commercial 60%

Maximum 10% commercial loans and 20% supplemental assets in cover pool

Regular monitoring of the property values, revaluation of property prices in case of significant drop (generally interpreted as 15% drop)

The S.O. Act amended, effective as of 21 June 2016, requires that the nominal value of the cover pool shall, at all times, be at least two per cent. higher than the aggregate nominal value of the liabilities relating to the covered bonds..

Regional constraint on collateral assets (Mortgage - EEA, Public - OECD)

The cover pool value shall always exceed the aggregate value of claims (including derivatives)

A sound balance in terms of FX, interest rates and maturities must be achieved. It is deemed to exist when the present value of the cover pool at all times exceed the present value of liabilities (including derivatives), even on a stressed basis. Present value cover must hold even after 1% upward and downward shift in the yield curve and a 10% change in the currency

Non-performing assets in the cover pool which are more than 60 days overdue must be disregarded for the purposes of the matching tests

Holders of covered bonds and relevant derivative counterparties benefit from a priority claim over the cover pool should the institution be declared bankrupt and rank pari passu ahead of unsecured creditors and all other creditors of the institution in respect of assets in the cover pool

The registered assets in the cover pool, the covered bonds and any relevant derivative contracts are required to be maintained as a unit and kept segregated from other assets and liabilities of the bankruptcy estate of the institution. The administrators-in-bankruptcy are then required to procure the continued timely service of payments due under the covered bonds and any relevant derivative contracts

Loan-to-value ratios and other limitations

Matching requirements

Benefit of a priority right over the cover pool

Administration in event of bankruptcy

The Covered Bond Act

Source: www.ascb.se

© Swedbank

Public

Information class

Swedish and Baltic economies

7

1

Swedish

and Baltic

macro

© Swedbank

Public

Information class

Sweden - Strong growth gradually slowing

72

• Kingdom of Sweden rated

Aaa/AAA/AAA

Domestic demand drives growth Sentiments remain elevated

Swedish

and Baltic

macro

1 % growth rate unless indicated otherwise, Y/Y growth for the most recent data 2 seasonally adjusted and smoothed

Key economic indicators1, 2015-2019

Oct 2017

Most recent 2015 2016 2017F 2018F 2019F

Real GDP (calendar adjusted) 3.1 (Q2) 3.8 2.9 3.2 2.6 2.1

CPI growth, average 2.1 (Sep) 0.0 1.0 1.9 2.1 2.5

CPIF growth, average 2.3 (Sep) 0.9 1.4 2.0 1.8 1.9

Unemployment rate (15-74), % of labor force 6.7 (Sep)27.4 6.9 6.6 6.5 6.4

Savings ratio (households),% … 16.3 16.1 16.3 16.3 16.6

Real disposable income (households) … 2.4 2.5 2.6 2.2 2.1

© Swedbank

Public

Information class

The Swedish economy

73

Cautious recovery of exports

Housing is driving investments Households remain cautious

Services dominate export pick up

Oct 2017

Swedish

and Baltic

macro

© Swedbank

Public

Information class

The Swedish economy, con’t

74

Strong employment; wages and unemployment lag Solid public finances

Inflation is picking up The krona strengthens

Oct 2017

Swedish

and Baltic

macro

© Swedbank

Public

Information class

The Swedish credit market

Oct 2017 75

Lending growth dampens Interest rates remain low; while margins are steady

Riksbank’s policy rate unchanged until 2018 Quantitative easing during the remainder of 2017

Swedish

and Baltic

macro

© Swedbank

Public

Information class

Baltics – strong performance

76

Ratings

• Republic of Estonia: A1/AA-/A+

• Republic of Latvia: A3/ A-/A-

• Republic of Lithuania: A3/ A-/A-

Real growth is picking up A gradual slowdown in unemployment

Key economic indicators1, 2015-2019

1 % growth rate unless indicated otherwise, Y/Y growth for the most recent data

Most recent 2015 2016 2017F 2018F 2019F

Real GDP Estonia 5.7 (Q2) 1.4 2.1 3.5 3.2 2.7

Latvia 4.0 (Q2) 2.7 2.0 4.2 4.0 3.2

Lithuania 4.1 (Q2) 1.8 2.3 3.8 3.5 2.5

CPI growth, average Estonia 3.7 (Sept) -0.5 0.1 3.3 2.9 2.5

Latvia 2.9 (Sept) 0.2 0.1 2.9 2.8 2.2

Lithuania 4.8 (Sept) -0.9 0.9 3.5 3.0 2.5

Unemployment rate (15-74), % of labor force Estonia 7.0 (Q2) 6.2 6.8 6.9 7.2 7.1

Latvia 8.9 (Q2) 9.9 9.6 8.5 7.5 7.2

Lithuania 7.0 (Q2) 9.1 7.9 7.2 6.8 6.4

Swedish

and Baltic

macro

© Swedbank

Public

Information class

Estonia: Growth momentum is strengthening Improving foreign demand helps exports; investment growth recovers

77

Improving foreign demand and investment growth Export and manufacturing output accelerate

Swedish

and Baltic

macro

© Swedbank

Public

Information class

Latvia: Growth accelerates Support from rising external demand and improved export market shares, EU funds,

credit growth, and tightening labour market.

78

Sharp cyclical pick up in growth to moderate in 2019 Sentiments are strengthening

Swedish

and Baltic

macro

© Swedbank

Public

Information class

Lithuania: Exceeding expectations Supported by stable confidence & higher foreign demand

79

Strong & broad-based GDP growth Pick up in exports in 2017

Swedish

and Baltic

macro

© Swedbank

Public

Information class

Swedish housing and mortgage market

8

0

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

Swedish mortgage market

• No securitisation (on balance sheet), no sub-prime market, no 3rd party origination

• Restricted buy-to-let market

• 64% home ownership

• Rental market is regulated

• Transparent credit information (credit information agency, www.uc.se)

– Publicly available information regarding income, debt, payment track record etc.

• Consumer credit legislation requires affordability calculations including stress test of higher interest rate and

conservative cost of living

• Very limited debt forgiveness possibilities (full recourse)

• Strong social security and generous unemployment benefit system

81

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

Household borrowing growth

• LTV cap of 85%

– Mandatory since 2010 (SFSA)

– (Min 15% own equity)

• Amortisation (1st June 2016)

– 2% annual amortisation >70% LTV

– 1% annual amortisation >50% LTV

– Proposed (SFSA) 1% additional amortisation if DTI

> 450%

• Risk-weight floor of 25% on mortgage loans

(Pillar2)

82

Lack of residential housing drives household

lending growth

0

2

4

6

8

10

12

14

16

18

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

Annual % change, total lending (s.a.)

Annual % change, mortgage lending (s.a.)

Data up to and including August 2017

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

High amortisation in new lending with LTV >50% • Average LTV in new lending is 68% (average LTV in mortgage back book is 53%)

• 99% of households with LTV >70% amortise in Q3 (95% in mortgage back book)

• 98% of households with LTV 50-70% amortise in Q3 (81% in mortgage back book)

• In total 87% of households amortise in Q3 (68% in mortgage back book)

83

53%

67%

55%

71%

50%

55%

60%

65%

70%

75%

80%

2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2

Single-family homes, back book Single-family homes, new lending

Tenant owner rights, back book Tenant owner rights, new lending

Amortisation level – new lending in LTV buckets1) Volume-weighted portfolio LTV

1) The amortisation rates are based on amortisation on property level (i.e. amortisation YES or NO) and

should not be mixed up with the share of households compliant with SFSA’s new amortisation requirement

LTV

57%

98%

99%

87%

40%

50%

60%

70%

80%

90%

100%

2017Q22016Q22015Q22014Q22013Q22012Q2

0-50% 50-70% >70% Total

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

Shortage of housing

• 2016 Highest number of completed apartments since 1992. In addition 3 400 apartments

through rebuilding's, in total 45 845 apartments.

• According to the National board of Housing, Building and Planning (Boverket) the need

for housing in 2016-2025 is 600 000 units (average 66 666 units per year)

• Housing starts FY 2016 show a trend-shift

84

Housing completions (thousand units / year) Housing starts (thousand units / year)

0

10

20

30

40

50

60

70

80

90

100

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Single-family dwellings Apartment buildings

0

10

20

30

40

50

60

70

80

90

100

75 80 85 90 95 00 05 10 15

Apartmentbuildings

Single-familydwellings

Population growth(thousandpersons)

Average for theperiod

Average annualneed 2016-2025

2016:

+144 th.

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

Overall indebtedness among Swedish households remains low • Of appr. 4 million households less than 50% carry a mortgage

• Median debt-to-income ratio of mortgage holders less than 300%

• Less than 15% of mortgage holders have a debt to income ratio of more than 600%

85

Debt ratios of Swedish households Distribution of debt ratios in 2016

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016

Total debt as % of gross income

>600

400-600

200-400

0-200

Source: Riksbank

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

0-100 100-200 200-300 300-400 400-500 500-600 600-700 >700

No

. o

f h

ou

se

ho

lds w

/ m

ort

ga

ge

s

Total debt as % of post tax income Source: Riksbank

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

Strong affordability

• Low interest rate environment

• Disposable income: Increase in salaries and tax cuts (income + property tax etc.)

• Higher indebtedness: Higher share of home ownership, rapid population growth and strong urbanisation

trend

• Wealth: Increase in house prices, mutual funds and pension savings etc.

86

Swedish household financial assets and liabilities Household saving rates, % of disposable income

Source: OECD Economic Outlook, Jun 2017, table 26

-10

-5

0

5

10

15

20

08 09 10 11 12 13 14 15 16 17F 18F

Sweden

Germany

Norway

United States

Finland

Denmark

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

0

2

4

6

8

10

12

Interest ratio Historical average

Strong affordability

87

Household interest expenditure in Sweden,

% of disposable income

Source: Swedish Riksbank’s Financial Stability report 2017:1 (chart 2.10)

Boindex (the housing affordability index) is 100 when a household* uses

30% of their disposable income for housing costs. The higher the

number, the greater the affordability.

* 2 adults and 2 children with median disposable income paying for a 135

sqm house or a 95 sqm apartment. Market rates for new lending (a mix of

fixed and variable rates) are used.

Swedbank boindex (2Q 17)

Source: Swedbank Research

80

100

120

140

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Single houses

Total

Tenant owner rights

greater

affordability

Source: Swedbank Research & Macrobond

Single houses Tenant owner rights

Stockholm 114 101

Gothenburg 107 95

Malmoe 108 106

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

0

50

100

150

200

250

300

350

05 07 09 11 13 15 17

Tenant owner rights (apartments)

Single-family houses

House prices – flattening out

Sep 2017 88

Source: Valueguard Index (2005=100), (data up to and including Sep 2017)

0

50

100

150

200

250

300

350

05 07 09 11 13 15 17

Total

Tenant owner rights (apartments)

Single-family houses

0

50

100

150

200

250

300

350

400

05 07 09 11 13 15 17

Tenant owner rights (apartments)

Single-family houses

0

50

100

150

200

250

300

350

05 07 09 11 13 15 17

Tenant owner rights (apartments)

Single-family houses

Gothenburg Malmoe

Sweden, total Stockholm

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

Other

8

9

© Swedbank

Public

Information class Source: Swedbank Factbook 3Q 2017

* Number of customers that have made a payment, transfer, application, investments or lending activity in the last month

90

Latvia

Population 2.0m

Private customers 0.9m

Corporate customers 87 000

Branches 36

Cards 1.0m

Number of card purchases 38m

Digitally active customers* 0.7m

Lithuania

Population 2.9m

Private customers 1.5m

Corporate customers 76 000

Branches 64

Cards 1.7m

Number of card purchases 35m

Digitally active customers* 0.7m

Estonia

Population 1.3m

Private customers 0.9m

Corporate customers 141 000

Branches 34

Cards 1.1m

Number of card purchases 51m

Digitally active customers* 0.6m

Sweden

Population 10.0m

Private customers 4.1m

Corporate customers 267 000

Organisations 66 000

Branches 220

Cards 4.2m

Number of card purchases 323m

Digitally active customers* 3.0m

* Share of loan book

Swedbank – largest retail bank in our four home markets

~86%*

~10%*

This is

Swedbank

© Swedbank

Public

Information class

-10

0

10

20

30

40

Q3 12 Q3 13 Q3 14 Q3 15 Q3 16 Q3 17

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

– 86% of total loans originated in Sweden - Swedish mortgages account for 50% of

total loans

– 90% of total loans are collateralised (78% real estate and 12% 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 260bp

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

assuming closed funding markets, NSFR 110% and LCR 128%

• Baltic operations self-funded – loan-to-deposit

ratio < 100%

Sep 2017 91

Credit impairment ratio, %

This is

Swedbank

0

10

20

30

0

50

100

150

200

2012 2013 2014 2015 2016 Q3 17

NSFR LCR CET1 capital ratio, CRDIV (RHS)

Liquidity & capital, %

© Swedbank

Public

Information class

Swedbank – strong and stable earnings capacity

• 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

Sep 2017 92

Profit before impairments, SEKbn

This is

Swedbank

0

2

4

6

8

10

Q3 12 Q3 13 Q3 13 Q3 15 Q3 16 Q3 17

Profit before impairments

One-off related to Visa

© Swedbank

Public

Information class

30

35

40

45

50

55

60

2012 2013 2014 2015 2016 YTD 2017

12

14

16

18

20

2012 2013 2014 2015 2016 Target 17

Acquistion of Sparbanken Öresund

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

Sep 2017 93

Total expenses, SEK m

C/I ratio, %

This is

Swedbank

© Swedbank

Public

Information class

Our objective

• Daily banking is fully digital – 100% self service

• Meet our customers with relevant offerings, in our own or external channels

• Data and knowledge automation – to foresee needs, provide proactive offering and advice.

This will generate loyalty as well as increased sales

• Have an attractive financial platform for customers and 3rd party suppliers, providing value-

added and competitive edge

• Branches attract new customers - build the brand and increasingly focus on corporate

customers

94

Strategy

© Swedbank

Public

Information class

0 200 400 600 800 1000 1200

Other* 4.5%

Lithuania 3.1%

Latvia 2.2%

Estonia 4.6%

Sweden 85.7%

Swedish Mortgage loans (private+corp)

Other corporate (incl. LC&I, Sweden)

* Mostly Norway and Finland

Sweden – the dominating home market

• Total lending to the public amounts to SEK 1 488bn (as per Q3 2017), out of

which around 86% is originated in Sweden

• Estonia makes up 47% of total lending in the Baltics

Sep 2017 95

Lending distributed by countries

SEK 1 275bn

This is

Swedbank

© Swedbank

Public

Information class

Oil sector still under pressure

• Loan portfolio negatively impacted by lower oil price, SEK 14.3bn

– 1.0% of total loans gross

– Derivatives exposures of SEK 1.2bn (incl. collateral)

• Reduced provisions* of SEK 51m in Q3

* Total provisions of SEK 1 358m for the whole Shipping and Offshore sector with a provision ratio (for impaired

loans) of 30%.

96

0

2

4

6

8

10

12

14

Def 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

2014-12-31 2015-12-31 2016-12-31 2017-09-30

Oil-related, exposure by risk grade, SEKbn

0

2

4

6

8

10

2016-12-31 2017-09-30

LC&I Shipping & Offshore, loans gross, SEK 24bn

59% of the portfolio is

negatively impacted by

lower oil price

Asset

quality

© Swedbank

Public

Information class

11.3%

10.3%

Swedbank CET1 requirements

Pillar 2 CET1requirements

Pillar 1 CET1requirements

No automatic sanctions for breaching the Pillar 2 capital requirements ● “It is particularly important that FI has the possibility of giving due

consideration to the specific situation…in which a firm in financial stress

finds itself… For example, certain risks included in the assessment

of the Pillar 2 basic requirement might have materialized, which

might mean there are no longer grounds for requiring the firm to

hold capital for them”.

● “It ought to be positive for financial stability that a firm has the

possibility… to restore its capital without the firm necessarily becoming

subject to priory specified and automatic legal restrictions. In other

words, firms are hence given the possibility of re-establishing their

capital in a strained situation without automatic restrictions on

distributions or, depending on the size of the capital shortage, a

formal resolution phase being activated."

● “Hence…a firm may freely choose…the most suitable way of restoring

the capital in that specific situation. For example, the firm is not

obliged to halt or limit dividends or interest payments on Tier 1

capital contributions, if the firm can identify other and more

appropriate ways of restoring the capital sufficiently quickly.”

Sep 2017 97

Automatic MDA

Restrictions

21.6%

Capital

– fully

loaded

CRD IV

© Swedbank

Public

Information class

23%

15%

56%

6%

0-3M

3-12M

>1-5Y

>5Y

0

100

200

300

400

500

600

Covered bonds Senior unsecured Structured retailbonds

Short-termprogrammes

Q2 2017 Q3 2017

Wholesale funding profile

• Q3 2017 – 38% of wholesale funding < 12 months, SEK 336bn placed with

central banks

• Average maturity for covered bonds, 38 months

• Average maturity for senior unsecured bonds, 33 months

Sep 2017 98

Maturity profile of outstanding wholesale funding Outstanding wholesale funding, SEK 912bn

Liquidity

and

funding

© Swedbank

Public

Information class

0

50

100

150

200

2017 2018 2019 2020 2021 2022 2023 2024-

Other

GBP

USD

EUR

SEK

0

50

100

150

200

2017 2018 2019 2020 2021 2022 2023 2024-

Senior unsecured debt Covered bonds

Long-term funding maturity profile

Sep 2017 99

Long-term funding maturity profile, by funding source

SEKbn SEKbn

Long-term funding maturity profile, by currency

Liquidity

and

funding

© Swedbank

Public

Information class

Funding sources

100

Swedbank AB Swedbank Mortgage AB*

* 100% guaranteed by parent company

- Irrevocable

- Unconditional

- Timely

** Combined limit for unsecured- and covered bonds

*** Limited by cover pool size

100% owned

Program Limit

Long Term

Global MTN USD 40bn

Domestic MTN SEK 60bn

USD Senior (144a / Reg.S) USD 15bn

AUD Senior** AUD 10bn

NSV (stand alone doc.)

Short Term

Domestic CP SEK 80bn

European CP/CD EUR 6bn

US CP USD 20bn

Yankee CD USD 20bn

Finnish CD EUR 4bn

Program Limit

Long Term

Domestic Benchmark CB Unlimited***

EMTN CB EUR 25bn

USD Covered bonds (144a / Reg.S) USD 15bn

Domestic MTN CB SEK 150bn

Norwegian Benchmark CB Unlimited***

AUD Covered bonds** AUD 10bn

Registered CB (stand alone doc.)

Short Term

Domestic CP SEK 50bn

Liquidity

and

funding

© Swedbank

Public

Information class

Asset encumbrance

• Total balance sheet,

SEK 2 460bn

• Asset encumbrance ratio

of around 24%

Sep 2017 101

Type of assets (Balance Sheet items)

SEKm

Carry Amount Fair Value Carry Amount Fair Value

Assets of the reporting institution 583 025 1 700 579

Loans on demand 338 311

Equity instruments 25 442 25 442

Debt securities 21 173 21 396 188 877 189 424

Loans and advances other than loans on demand 561 852 1 048 470

of w hich mortgage loans 548 260 620 361

Other assets 99 479

Encumbered assets

Unencumbered assets,

additional assets

available for secured

Type of assets (Off-balance sheet items) Encumbered

received collateral

Unencumbered

received collateral

available for secured

funding

SEKm Fair value Fair value

Collateral received by the reporting institution 15 203 33 989

Loans on demand

Equity instruments 2 666

Debt securities 15 203 18 958

Loans and advances other than loans on demand 11 010

Other collateral received 1 355

Ow n debt securities issued other than ow n

covered bonds or ABSs

Purpose for encumbrance (On- and off-balance sheet items) Encumbered Assets

SEKm 30 Sep 30 Jun 31 Mar 31 Dec

2017 2017 2017 2016

Carrying amount of selected financial liabilities 572 846 557 305 552 721 547 554

of w hich Derivatives 12 358 16 795 13 983 16 989

of w hich Deposits 30 183 24 579 23 850 10 741

of w hich Debt securities issued 530 305 515 931 514 888 519 824

Other sources of encumbrance 25 382 23 854 21 835 20 866

Total 598 228 581 159 574 556 568 420

Liquidity

and

funding

© Swedbank

Public

Information class

Benchmark transactions, 2016 – YTD 2017

Sep 2017 102

ISIN Product Tenor Currency Amount Type Spread Value date Maturity date

XS1361548693 CB 5Y EUR 1 250 Fixed MS+14 February 10, 2016 February 10, 2021

XS1377855363 SU 144a 5Y USD 1 250 Fixed T+135 March 10, 2016 March 10, 2021

XS1377258436 SU 3Y EUR 500 FRN 3m€+45 March 11, 2016 March 11, 2019

XS1530835336 CB 5Y GBP 250 Fixed G+65 Dec 7, 2016 Dec 7, 2021

XS1535953134 AT1 Perpetual USD 500 NC5 6.00% Dec 16, 2016 Perpetual

XS1550140674 CB 5Y6M EUR 1 000 Fixed MS -3 January 16, 2017 July 18, 2022

AU3CB0242543 SU 5Y AUD 100 Fixed MS+118 February 17, 2017 February 17, 2022

AU3FN0034229 SU 5Y AUD 350 FRN 3mBBSW+118 February 17, 2017 February 17, 2022

XS1573958409 SU 5Y6M EUR 750 Fixed MS+18 March 6, 2017 September 6, 2022

XS1577762583 SU 144a 5Y USD 500 FRN 3m$L+70 March 14, 2017 March 14, 2022

XS1577360784 SU 144a 5Y USD 1 000 Fixed T+80 March 14, 2017 March 14, 2022

XS1606633912 CB 7Y EUR 1 000 Fixed MS-6 May 8, 2017 May 8, 2024

XS1617859464 T2 10.5NC5.5 EUR 650 Fixed MS+82 May 15, 2017 Nov 22, 2027

XS1689549217 SU 4Y3M GBP 500 Fixed G+76 Sep 29, 2017 Dec 29, 2021

XS1530835336 CB 4Y2M GBP 250 Fixed G+57 Oct 2, 2017 Dec 7, 2021

Liquidity

and

funding

© Swedbank

Public

Information class

Real estate price performance – Sweden, 12 month

Sep 2017 103

Single-family homes1 Tenant-owner rights2 Combined3

12M Δ 12M Δ 12M Δ

Sep 16 9% 6% 8%

Nov 16 9% 7% 8%

Dec 16 9% 8% 9%

Jan 17 9% 8% 9%

Feb 17 9% 8% 9%

Mar 17 9% 8% 9%

Apr 17 8% 8% 8%

May 17 8% 9% 9%

Jun 17 9% 10% 10%

Jul 17 10% 9% 9%

Aug 17 10% 8% 9%

Sep 17 8% 4% 7%

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

100

120

140

160

180

200

220

240

260

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

House price index, Sweden3

2005=100

Swedish

housing

and

mortgage

market

© Swedbank

Public

Information class

Swedbank – contacts and financial calendar

104

Tomas Hedberg, Head of Group Treasury

tomas.hedberg@swedbank.se +46 706 43 97 11

Gregori Karamouzis, Head of Investor Relations

gregori.karamouzis@swedbank.com +46 727 40 63 38

DEBT INVESTORS

Peter Stenborn, Debt Investor Relations

peter.stenborn@swedbank.com +46 8 585 909 30

Magnus Alvesson, Debt Investor Relations

magnus.alvesson@swedbank.com +46 8 585 933 41

Ulf Jakobsson, Head of Funding

ulf.jakobsson@swedbank.se +46 8 700 90 61

Joakim Henriks, Money Markets and Short-Term Funding

joakim.henriks@swedbank.se +46 8 700 90 62

EQUITY INVESTORS

Mattias Mauritzon, Investor Relations +46 8 585 907 56

mattias.mauritzon@swedbank.com

Annie Ho, Investor Relations +46 8 585 922 69

annie.ho@swedbank.com

Q4 Year end report 6 Feb 2018

2017 Annual Report 23 Feb 2018

2018 Annual General Meeting 22 Mar 2018

Q1 Interim report 24 Apr 2018

Q2 Interim report 18 Jul 2018

Q3 Interim report 23 Oct 2018

ir@swedbank.com

www.swedbank.com/investor-relations/debt-investor

Swedbank AB (publ) Landsvägen 40,

SE-105 34 Stockholm, Sweden Sundbyberg

Contact Investor Relations:

For further information, please contact: Financial calendar

Postal address: Visitors: