SBAB reports a net operating income of SEK 193 million for the first quarter 2004

SBAB reports a net operating income of SEK 193 million for the first quarter 2004 Net loan losses continue to be low and posted a positive result of SEK 8 million, an improvement of SEK 16 million over the corresponding period in 2003. Development of net interest income for the first quarter remains stable with a 2 per cent improvement in actual results over the corresponding period for the previous year. The first quarter continues to post strong results despite greater investments in marketing and IT-development in comparison to the same period in 2003. The net operating income for the first quarter of 2004 is SEK 193 million (SEK 192 million). Lending The loan portfolio at the end of the quarter amounted to SEK 126.3 billion, to which should be added loans securitised by SBAB totalling SEK 25.8 billion, in total SEK 152.2 billion. Loan portfolio and securitised loans, SEK billion March 2004 March 2003 Total of which Total of which securitised securitised loans loans Retail market 65.8 16.0 55.5 16.7 Property-company 86.4 9.8 96.8 1.0 market Total 152.2 25.8 152.3 17.7 Market shares SBAB continues to increase its market share and now has 7.9 per cent in the retail market and a market share of 18.0 per cent in the property- company market. Focus on specific customer segments in combination with the discontinuation of unprofitable commitments has lead to a contraction of the property-company market portfolio whilst improvement in the loan portfolio's profitability has been prioritised over increased volumes. New lending New lending to the retail market totalled SEK 5.2 billion and to the property-company market SEK 0.9 billion. Funding Long-term funding for the first quarter in 2004 came to SEK 15 411 million (SEK 10 125 million) of which SEK 10 593 million (SEK 5 992 million) was raised in the international market and SEK 4 819 million (SEK 4 133 million) in the domestic bond market. Short-term debt, defined as short-term on the issue date, totalled SEK 30 023 million (SEK 51 730 million). SBAB's long-term objective is to achieve an even balance between international and domestic funding. Expenses Expenses have increased during the quarter by SEK 16 million to SEK 129 million (SEK 113 million), due to greater marketing efforts as well as to more extensive IT-development work than that undertaken in the same quarter in the previous year. This includes for example adjustments to comply with Basel II, the IAS and the development of internal IT- systems. Loan losses and doubtful loan receivables Net loan losses were positive due to recoveries and showed an improvement of SEK 16 million on the corresponding period for 2003. Doubtful loan receivables have been reduced from SEK 220 million at the turn of the year to SEK 195 million today. Collective provisions for individually assessed loan receivables amount to SEK 170 million. Business partners SBAB co-operates with Ikano Bank, Sparbanken Finn and Sparbanken Gripen, Salus Ansvar and ICA Banken. As earlier SBAB's business partners constitute important distribution channels. Prospects for 2004 The result for the full year 2004 is expected to be in line with the result for 2003. Summary for the SBAB Group March 2004 March 2003 Net operating income, SEK million 193 192 Loan losses net, SEK million (8) 8 Return on equity A, % (1) 11.0 10.4 Return on equity B, % (2) 11.3 12.1 Capital ratio, % 10.6 9.9 Primary capital ratio, % 8.8 7.7 Equity ratio, % 3.8 3.4 Doubtful loan receivables after specific provisions for individually assessed loan receivables, SEK million 90 347 Income/expenditure ratio, excluding loan 2.4 2.8 losses Income/expenditure ratio, including loan 2.6 2.6 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 126 310 134 625 Loans securitised, SEK million 25 845 17 692 Average number of employees for the 380 381 period (1) Net operating income (after actual tax) for the last twelve months in relation to the average equity capital. (2) Net operating income (after standard rate tax) for the reporting period has been adjusted to represent the full year's result in relation to the average equity capital. SBAB's quarterly report for 1 January - 31 March 2004 is attached (4 pages). Questions will be answered by: Eva Cederbalk, Chief Executive Officer, tel +46 8-614 4301 or +46 70 523 2302 Annelise Jansson, Chief Communication Officer, tel +46 8-614 4355 or +46 70 637 1272 Per Balazsi, Chief H R Officer and Chief Financial Controller, tel +46 8- 614 4324 or +46 73 368 4324 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/05/06/20040506BIT01000/wkr0001.doc http://www.waymaker.net/bitonline/2004/05/06/20040506BIT01000/wkr0002.pdf The full report