January - March 2008

Profit for first quarter 2008 in line with first quarter 2007
Profit for the period amounted to SEK 2,900m (2,910)
Earnings per share amounted to SEK 5.63 (5.65)
The return on equity decreased to 16.8 percent (18.9)
The cost/income ratio was 0.53 (0.51)
Net interest income increased by 16 percent to SEK 5,241m (4,501)
Loan losses amounted to SEK 288m (49), corresponding to a loan loss ratio of 0.10 percent (0.02)
The tier 1 capital ratio was 8.2 percent (8.5 on December 31, 2007) according to the new rules and 6.5 percent (6.2) according to the transition rules.

Profit for first quarter 2008 decreased by 7 percent compared with fourth quarter 2007
Profit for the period decreased by 7 percent to SEK 2,900m (3,108)
Earnings per share decreased to SEK 5.63 (6.03)
The return on equity was 16.8 percent (18.8)
The cost/income ratio was 0.53 (0.51)
Income decreased by 5 percent and expenses by 2 percent
Loan losses amounted to SEK 288m (238), corresponding to a loan loss ratio of 0.10 percent (0.09).

Comment by the CEO:
The first quarter of 2008 gave us reason to be positive but included challenges as well. On the positive side, Swedbank’s core business with households and corporations continued growing strongly in all markets. We are also pleased to see that the gradual slowdown in the Baltic countries has continued at the pace we had expected.
Among the challenges were the international credit markets, where the price of risk continued to rise. Developments have to some extent affected the valuation of the bank’s assets and, as a result, its earnings. The relatively small changes in Swedbank’s case are unrealized, and when markets normalize this should have a correspondingly positive impact. A slowdown in merger and acquisition activity in Sweden and Norway during the first quarter resulted in lower commission income. However, the prospects of higher activity in the remainder of the year are considered positive.