January - June 2008

Profit for the period rose by 8 percent compared with the first half year 2007
Profit for the period amounted to SEK 6 504m (6 022)
Earnings per share increased to SEK 12.62 (11.68)
Return on equity was 18.7 percent (19.5)
The cost/income ratio was 0.50 (0.50)
Net interest income increased by 16 percent to SEK 10 536m (9 092)
Loan losses amounted to SEK 711m (151), corresponding to a loan loss ratio of 0.12 percent (0.03)
The tier 1 capital ratio was 8.8 percent according to the new rules (8.5 percent on 31 December 2007) and 6.7 percent (6.2) according to the transition rules.

Higher income in second quarter compared with first quarter 2008
Profit for the period increased by 24 percent to SEK 3 604m (2 900)
Earnings per share increased to SEK 6.99 (5.63)
Return on equity increased to 20.6 percent (16.8)
The cost/income ratio was 0.47 (0.53)
Income increased by 12 percent
Loan losses amounted to SEK 423m (288), corresponding to a loan loss ratio of 0.14 percent (0.10).

CEO comment
Swedbank’s stable earning capacity led to solid results in all business areas for the first half of 2008. The profit of SEK 6.5bn for the first six months is our highest ever. In light of current market conditions, Swedbank’s stable earning capacity is a huge asset.
The Board of Directors has approved a new capital adequacy objective: that the tier 1 capital ratio shall be 8.5-9.0 percent when Basel 2 is fully implemented. Given its risk profile, Swedbank is considered well capitalized.
Funding operations continued to perform well in the second quarter. The conversion to covered bonds on 21 April has resulted in better relative funding terms at the same time as liquidity has improved.
The Baltic region’s macroeconomic development was weaker than expected during the second quarter, partly as an effect of economic uncertainty in the rest of Europe. While this will affect Baltic Banking’s development, the business area is expected to maintain a robust earning capacity and net profit. Credit quality remains high in both the Baltic region and Sweden.
Swedbank, interim