Changes in FöreningsSparbanken’s accounting

In accordance with changes in the IAS 39 accounting framework and internal organizational adjustments, FöreningsSparbanken is restating its reported quarterly results. Effects of adopting the IAS 39 fair value option In November, 2005 the EU Commission approved a change in IAS 39 whereby the so-called ”fair value option” can also be applied to financial liabilities when certain conditions are met. One of the conditions is that valuation at fair value reduces accounting volatility that does not reflect underlying economic conditions. The option allows financial instruments to irrevocably be valued at fair value. After earlier preparations, the Group decided in the fourth quarter to apply the option to valuate certain distinct portfolios of fixed-rate loans and related liabilities at fair value since their aggregate interest rate exposure is hedged with derivatives. By doing so, the same valuation category is used for all financial instruments in these portfolios, and the accounts will provide a more accurate picture of operations. The change, reported in the P&L on the ”Net gains and losses on items at fair value” line, will mainly affect the business area Swedish banking (through Spintab), but Swedbank Markets has also been affected. Due to the application of the option, the previously reported quarterly results of 2005 and opening balances have been restated. Shareholders’ equity, as of January 1 2005, increased by SEK 775 M. Compared with previously reported figures, income and operating profit have been affected by the following amounts: Q 1 - 65 MSEK Q 2 + 106 MSEK Q 3 - 255 MSEK Total - 214 MSEK Business area reporting The business area report has been partly adapted to the new group organization announced on August 24, 2005. Comparative figures for 2004 and for the first three quarters of 2005 have been restated. •Swedish banking mainly consists of the Swedish branch network, the telephone and internet banks, and the Spintab and FöreningsSparbanken Finans subsidiaries. The business area also includes Swedbank Luxemburg and EnterCard, the jointly owned credit card company. • Baltic banking consists of Hansabank Group and its operations in Estonia, Latvia, Lithuania and Russia. • Swedbank Markets comprises Investment Banking and Merchant Banking in Sweden, the New York affiliate, First Securities in Norway and the Group’s representative office in Shanghai. •Asset Management and Insurance comprises the Robur Group. •Shared services and new operations comprises IT and other shared services, Group Treasury, Group Staffs, the insurance company Sparia, as well as branches in Norway, Finland and Denmark, the representative office in Tokyo and the holdings in SpareBank1 Gruppen and Aktia. Consolidation of EnterCard according to equity method EnterCard Holding will henceforth be treated as a 50 percent owned joint venture instead of a subsidiary, and will therefore be consolidated according to the equity method. Results will be included in the Group P&L on the “Associates” income line. Profit and loss accounts and balance sheets for the second and third quarters of the year have been restated. Effects on income and costs are marginal and the period’s profit attributable to Swedbank’s shareholders is unchanged. Details regarding these effects will be disclosed in conjunction with the forthcoming publishing of the Group’s year-end report on February 15th. For further information: Christer Westholm, Head of Accounting, FöreningsSparbanken, phone: +46-8-585 918 85 Henrik Bonde, Accounting Specialist, FöreningsSparbanken, phone: +46-8-585 935 67

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Swedbank promotes a sound and sustainable financial situation for the many people, households and companies. As a leading bank in the home markets of Sweden, Estonia, Latvia and Lithuania, Swedbank offers a wide range of financial services and products. Swedbank has over 7 million retail customers and around 600 000 corporate customers and organisations with 168 branches in Sweden and 99 branches in the Baltic countries. The group is also present in other Nordic countries, the US and China. As of 31 December, 2019 the group had operating profit of 24 420 SEKbn. Read more at