INTERIM REPORT JANUARY – MARCH 2010

- OPERATING PROFIT EXCLUDING “NET RESULT OF FINANCIAL TRANSACTIONS” AMOUNTED TO MSEK 71.5 (28.8) The improved profit derived from higher net interest income, reduced costs and more extensive recoveries. Net interest income for the first quarter of 2010 amounted to MSEK 107.0, a year-on-year increase of MSEK 33.0. The increase in net interest income was primarily attributable to a higher margin between the interest rates on deposits and lending. - THE VOLUME OF LOANS OUTSTANDING AMOUNTED TO MSEK 47,877 (41,881) Loans outstanding increased 3.1 percent during the first quarter to MSEK 47,877. The loan volume increased 1.4 percent during the corresponding period last year. Activity in the market remains high. Interest in supplementary purchases of land and in investment in buildings and machinery is considerable. Landshypotek maintained its share of the market for loans to farm and forest owners. - LOAN LOSS RATE: MINUS 0.01 PERCENT (LOSS: 0.01 PERCENT) During the first quarter of 2010, recoveries exceeded loan losses and amounted to MSEK 1.0, equivalent to minus 0.01 percent of loans outstanding. During the corresponding period of 2009, loan losses amounted to MSEK 0.8, corresponding to 0.01 of loans outstanding. At 31 March 2010, doubtful credits amounted to MSEK 29.1 (7.3), corresponding to 0.06 percent (0.02 percent) of loans outstanding. - CAPITAL ADEQUACY WAS 35.0 PERCENT; TIER 1 CAPITAL ADEQUACY WAS 31.8 PERCENT ACCORDING TO BASEL II RULES Based on the Basel II capital adequacy rules, Landshypotek’s capital situation is very strong. Basel II was intended to have been fully implemented as of 1 January 2010. This will not be the case. The Swedish Financial Supervisory Authority has announced that the transitional rules that applied on 31 December 2009 will remain in effect. Pursuant to the transitional rules, Landshypotek has capital adequacy of 8.6 percent and Tier 1 capital adequacy of 7.8 percent.