SBAB:s net operating income was SEK 554 million for the first nine months of 2003

SBAB's net operating income was SEK 554 million for the first nine months of 2003 SBAB increases net operating income by 9 per cent for the first nine months compared to the same period last year. The net operating income is SEK 554 million (509 million). - With this good development in the result, in my judgement we will exceed last year's profit and thereby achieve SBAB's best ever annual result, says Christer Malm, SBAB's Managing Director. Net operating income SBAB's net operating income for the first nine months increased by 9 per cent to SEK 554 million (509 million). Contributory factors are the continued good new lending in the retail market, the continued good result from funding operations, the restructuring of the property- company market portfolio and the continued low level of net loan losses. Lending Lending at the end of the first nine months totalled SEK 127.6 billion to which should be added loans securitised by SBAB totalling SEK 26.4 billion, making SEK 154.0 billion in all. Loan portfolio and securitised loans, SEK billion September 2003 September 2002 Total of which Total of which securitis securitis ed loans ed loans Retail 59.4 16.3 52.4 17.1 market Property- 94.6 10.1 99.6 1.0 company market Total 154.0 26.8 152.0 18.1 Market shares SBAB's market share in the retail market is around 7.5 per cent and its market share in the property-company market is 19.2 per cent. The reduced volume in the property-company portfolio partly results from reduced lending to municipal housing companies and a focusing on certain specific customer groups, in combination with the phasing-out of non- profitable engagements. Improved profitability in the property-company market portfolio has priority over volume growth. New lending New lending in the retail market amounted to SEK 11.4 billion and in the property-company market to SEK 3.4 billion. Funding On June 25 a fourth securitisation, SRM No 3, for EUR 1.0 billion was issued with settlement on July 1. The transaction was attractively priced and was well received in the market, with a wide distribution among European investors. During the period SEK 3.7 million (4.0 billion) was sold under the Swedish benchmark programme and SEK 12.8 billion (5.9 billion) under the EMTN-programme. Expenses Expenses has increased and amounted to SEK 341 million (308 million), due to increased marketing activities, collectively agreed salary increases and higher pension fees, plus higher costs in connection with the increased flow of applications from retail customers. Loan losses and doubtful loan receivables Net loan losses continue to be low at SEK 24 million, which is SEK 23 million lower than for the corresponding period 2002. Doubtful loan receivables have reduced from SEK 673 million to SEK 404 million since the beginning of the year. The provision ratio regarding specific provision for individually assessed loan receivables has increased from 44 per cent to 46 per cent. Total provisions at the end of the third quarter were SEK 366 million, of which SEK 155 million related to collective provisions for loan receivables assessed individually. Co-operations SBAB co-operates with Ikano Bank, Sparbanken Finn, Sparbanken Gripen, Salus Ansvar and ICA Banken. As previously, SBAB's co-operation partners are important sales channels. Subsequent events after the period under review On October 1 the subsidiaries SBAB, Sveriges Bostadsfinansieringsaktiebolag and SBAB, Statens Bostadslåneaktiebolag were merged with the parent company by so called absorption. The merger was carried out in order to render the administration of SBAB more effective. In connection with the merger, the name of the parent company was changed to Sveriges Bostadsfinansieringsaktiebolag, SBAB (publ). After the merger, the SBAB-group consists of the parent company and the partly owned subsidiary FriSpar Bolån AB. The inflow of new loan applications has increased very much during October. This is a direct result of SBAB's new aggressive strategy in offering uniform pricing to all retail market customers, regardless of whether the loans relate to owner-occupied homes, tenant-owner apartments or vacation cottages. The challenging strategy was manifested in a campaign in October that attracted much attention. Although concentrated on Stockholm and Gothenburg, the campaign attracted countrywide response. Propects for 2003 The result for the whole year 2003 is expected to exceed the result for 2002. Summary for the SBAB Group September 2003 September 2002 Net operating income, SEK million 554 509 Loan losses net, SEK million 24 47 Return on equity A, % 1) 10.3 10.4 Return on equity B, % 2) 11.4 11.3 Capital ratio, % 10.0 9.7 Primary capital ratio, % 8.2 7.5 Equity ratio, % 3.5 3.2 Doubtful loans 404 673 Income/expenditure ratio, excluding loan 2.7 2.7 losses Income/expenditure ratio, including loan 2.5 2.4 losses Rating, long-term debt Standard & Poor's AA- AA- Moody's A1 A1 Rating, short-term debt Standard & Poor's A-1+ A-1+ Moody's P-1 P-1 Lending, SEK million 127 593 133 895 Securitised loans, SEK million 26 401 18 090 Average number of employees 385 386 1) Operating income (after actual tax) for the last twelve months in relation to average equity capital. 2) Operating income for the reporting period (annualised and after tax estimated at the standard rate), in relation to average equity capital. SBAB's interim report 1 January - 30 September 2003 is attached (4 pages). Questions will be answered by: Christer Malm, Managing Director, tel +46 8-614 4301 Annelise Jansson, Head of Information, tel +46 8-614 4355 or +46 70 637 12 72 Ricard Grundwall, Accounting Manager, tel +46 8-614 4326 ------------------------------------------------------------ Denna information skickades av Waymaker http://www.waymaker.se Följande filer finns att ladda ned: http://www.waymaker.net/bitonline/2003/11/18/20031118BIT01760/wkr0001.doc http://www.waymaker.net/bitonline/2003/11/18/20031118BIT01760/wkr0002.pdf The report

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