SBABs Annual Report

SBAB'S ANNUAL REPORT Financial result for 2000 SBAB reports a net operating income of SEK 469 million for 2000, which is higher than the previous year's net figure (397 million). The result represents an after-tax return on equity capital of 8.9 per cent (8.0 per cent). Costs have increased somewhat due to substantial investment in IT and the continued emphasis on building up the retail market business area. SBAB's Board and Managing Director propose a dividend to the owner of SEK 103 million for 2000. After the dividend, the capital ratio will be 9.7 per cent (9.5 per cent) and the primary capital ration 6.8 per cent (6.5 per cent). Lending The loan portfolio amounted to SEK 139 734 million. SBAB's market share of the total retail market (single family homes, tenant-owned apartments, holiday cottages) increased from 6 per cent to 7 per cent. SBAB's portfolio of retail market loans amounted to SEK 30 565 million at year- end. In addition, retail market loans totalling SEK 8 487 million were securitized during the year through a MBS- transaction (Mortgage Backed Securities). New lending in the retail market amounted to SEK 11 510 million. SBAB's market share of the total property-company market (multi-family apartment buildings) was around 22 per cent. SBAB's portfolio of property- company market loans amounted to SEK 109 169 million at year-end. Loan losses Loan losses had a negative effect of SEK 14 million on the result. Funding SBAB's long-term objective is to achieve an approximately even distribution between international and domestic funding. SEK, JPY, USD and EUR are strategic currencies in SBAB's funding. Two MBS-transactions: Morfun No. 1 plc. for SEK 1 010 million and SRM Investment No. 1 Limited for EUR 1 000 million were accomplished during the year. Housing loans on internet SBAB's operations are increasingly based on internet solutions and internet has become an important distribution channel for housing loans. Substantial resources have therefore been allocated to IT-development in 2000 in order to combine cost efficiency with ready accessibility and a high service level for borrowers. Around 60 percent of loan applications within the retail market stem from internet. The goal is to increase this share. The investments in internet have shown good results and the development so far this year indicates a continued large increase in loan volume via this medium. Prospects for 2001 Continued growth in the housing mortgage market in 2001, corresponding to the growth in 2000, and a rapidly growing interest in taking housing loans via internet will create opportunities for increased lending. These factors, added to the positive effects of SBAB's investment programme, will lead to continued good performance and an annual result for 2001 that will exceed the result for year 2000. Summary for the SBAB Group 2000 1999 Net operating income, SEK million 469 397 Loan losses, SEK million 14 -12 Capital ratio, % 9.7 9.5 Primary capital ratio, % 6.8 6.5 Equity ratio, % 2.7 2.4 Return on equity capital 8.9 8.0 Problem loans after provisions, SEK million 542 668 Income/expenditure ratio, excluding loan losses 2.2 2.0 Income/expenditure ratio, including loan losses 2.1 2.0 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 139 734 145 543 Securitized loans, SEK million 9 497 - Number of employees 362 381 Annual General Meeting The Annual General Meeting will take place on Wednesday, 28 March 2000 in Stockholm Questions will be answered by: Christer Malm, Managing Director +46 8 614 4301 Peter Gertman, Deputy Managing Director +46 8 614 4315 Göran Laurén, Chief Financial Officer +46 8 614 3840 Lars Bergstig, Head of Information +46 8 614 3898 Ricard Grundwall, Financial Manager +46 8 614 4326 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/26/20010226BIT00480/bit0003.doc http://www.bit.se/bitonline/2001/02/26/20010226BIT00480/bit0003.pdf

About Us

SBAB’s business idea is to apply innovation and consideration to offer loans and savings products to private individuals, tenantowner associations and property companies in Sweden. SBAB was founded in 1985 and is owned by the Swedish state. SBAB has about 335,000 customers and 500 employees. SBAB had Sweden’s most satisfied residential mortgage customers in 2014, 2015 and 2016, according to Svenskt Kvalitetsindex (SKI, Swedish Quality Index). Read more at sbab.se, twitter.com/sbabbank, facebook.com/sbabbank.

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