Sparbanken Öresund's financial impact on Swedbank

The Swedish Financial Supervisory Authority approved Swedbank's acquisition of Sparbanken Öresund on 16 May. On receipt of all the authorisations, the acquisition was completed on 20 May and integration work was begun. The acquired portions of Sparbanken Öresund are being consolidated as of 21 May.

Preliminary financial impact on Swedbank's income statement during the period 21 May to 30 June1 (SEKm).

Total income                                                                     544
of which net interest income                                             53
of which net commission income                                    18
of which other income                                                      473
of which badwill  2                                                             461
Total expenses                                                                 676
of which restructuring costs 2                                         591
Tax expense 2                                                                   -131
Profit after tax                                                                      -5

1 Excluding the impact of Sparbanken Skåne, where Swedbank owns 22 per cent.
2 Non-recurring items in connection with the acquisition, including positive tax effect of SEK 130m.

Integration costs, in the form of restructuring costs, are somewhat higher than what had previously been estimated. At the same time, larger surplus values have been identified in the acquired operations which entailed a somewhat larger badwill item.

The acquisition's impact on Swedbank's volumes and risk exposure amount as of 30 June (SEKbn).

Loans to the public                                                              16
Deposits from the public                                                    12
Risk exposure amount                                                       15

Sparbanken Öresund's H1 2014 estimated results3), if the acquisition had not taken place (SEKm).

Total income                                                                     544
of which net interest income                                          338
of which net commission income                                 142
of which other income                                                        63
Total expenses                                                                 418
Tax expense                                                                         22
Profit after tax                                                                     87

3 The actual results for the first 5 months of the year and forecast for June. The 8 branches sold on to Sparbanken Skåne are included and account for around SEK 200m of income, around SEK 45m of expenses and around SEK 121m of profit after tax.

For further information, please contact:
Gregori Karamouzis, Head of Investor Relations, Swedbank tel: +46 727-40 63 38 or ir@swedbank.com

Swedbank promotes a sound and sustainable financial situation for the many people, households and companies. Our vision is to contribute to development “Beyond Financial Growth”. 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 8 million retail customers and around 556 000 corporate customers and organisations with 305 branches in Sweden and approximately 180 branches in the Baltic countries. The group is also present in other Nordic countries, the US and China. As of 31 December 2013 the group had total assets of SEK 1 820 billion. Read more at www.swedbank.com

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