Interim report for Swedbank January – September 2006

Growing business volumes, increasing market shares and increased net profit
Net profit for the period for the third quarter 2006 increased by 4 percent*

• Net profit increased by 4 percent to SEK 2,911 M (2,786)
• Earnings per share increased by 4 percent to SEK 5.65 (5.40)
• Net interest income increased to SEK 3,895 M (3,783)
• Operating profit amounted to SEK 3,741 M (3,792)
• The cost/income ratio improved to 0.49 (0.51)
• Recoveries exceeded loan losses which amounted to SEK -67 M (-116).


*) Compared with the second quarter 2006

Net profit Jan - Sep 2006 decreased due to capital gains in 2005*

• Net profit decreased to SEK 7,967 M (9,309)
• Excluding capital gains 2005 net profit increased by 13 percent
• Earnings per share decreased to SEK 15.46 (18.15)
• Return on equity amounted to 19.2 percent (26.4)
• Total income amounted to SEK 21,285 M (22,463)
• Excluding capital gains income increased by 5 percent to SEK 21,285 M (20,232).

*) Compared with January – September 2005


The CEO comments on the third quarter:

“The Swedbank Group continues to develop positively. Net interest income has increased for the third consecutive quarter and costs developed favourably during the quarter. The cost/income-ratio improved to 0.49 and return on equity increased to 20.8 percent.

It has been a strong quarter for all business areas of the bank. Swedish Banking has delivered a high level of profitability and we are pleased to note that net interest income continues to improve. Business volumes are increasing and we have increased market shares in several areas, among other mortgages, deposits from private individuals and corporate lending.

The Baltics continue to be our growth engine and Baltic Banking had its best quarter ever with an increase in operating profit of 47 percent. The expansion is the result of very strong growth in business volumes in all three countries and favourable interest rates.

During the quarter we have changed our name to Swedbank, an important signal of renewed efforts to become an even better bank.”

Read the full Interim Report blow or at www.swedbank.com/ir