Swedbank corporate presentation April 25 2017

This is Swedbank

April 25, 2017

Sweden, Estonia, Latvia and Lithuania

are our home markets

16.2 million inhabitants

7.3 million private customers

651 000 corporate customers

382 branches

13 774 employees

4

Sweden Inhabitants 10.0 million

Private customers 4.0 million

Corporate customers* 332 000

Branches 241

Employees 7 740

Estonia Inhabitants 1.3 million

Private customers 0.9 million

Corporate customers* 143 000

Branches 35

Employees 2 419

Latvia

Inhabitants 2.0 million

Private customers 0.9 million

Corporate customers* 91 000

Branches 41

Employees 1 549

Lithuania

Inhabitants 2.9 million

Private customers 1.5 million

Corporate customers* 85 000

Branches 65

Employees 2 066

Sweden

Estonia

Latvia

Lithuania

Our home markets

*including organisations

Our global presence

Sweden

Norway

Denmark

Finland

Estonia

Latvia

Lithuania

Luxembourg

USA

South Africa

China

Home markets

Other markets

Lending, SEK billion (March 31, 2017)

1 457

Operating profit, SEK million (Jan-Mar 2017)

6 307

Deposits, SEK billion (March 31, 2017)

898 Return on equity (Jan-Mar 2017)

15.9%

Swedbank in figures

We enable

people, businesses

and society to grow.

Vision

Open Simple Caring Values

Purpose We encourage a sound and sustainable financial

situation for the many households and businesses.

Who we are

We started in1820, as Sweden’s first savings bank. Our

purpose was to combat poverty and to encourage

ordinary people to save for a better future.

Once upon a time…

1820 1915 1991 1992 1995 1997 2005 2006 2014 1994

Jordbrukskassan

Föreningsbanken

Sparbanken Sverige

IPO Föreningsbanken Föreningssparbanken

IPO Sparbanken Sverige

Hansabank

Swedbank

Sparbanken Öresund

With a focus on social, economic and

environmental sustainability.

Our engagement in society continues

We get involved where our customers are (examples)

Against bullying

In Sweden, we collaborate with

the Friends Foundation

(Stiftelsen Friends), to prevent

bullying among children.

Introduction to business life

In Lithuania, we have I will be, an initiative that’s about

introducing different professions to young people.

In Sweden, we collaborate with Young Enterprise (Ung

Företagsamhet), which trains students in

entrepreneurship.

Football

A partner to the Swedish

Football Association.

Local associations

We engage in local community

associations, focusing on

initiatives that benefit young

people.

Internships

Through Young Jobs

(Unga Jobb) we help

arrange internships for

young people. Through A

Job at Last (Äntligen

Jobb) we help arrange

internships for academics

born abroad. Both

initiatives are based in

Sweden.

The environment

We were certified according

to ISO 14001 back in 2003

– as the first listed Nordic

bank.

Teach economy

Through Ready for Life we

teach private economy at

Latvian schools. In

Sweden we have a similar

initiative, Young Economy

(Ung Ekonomi). For the

younger ones we publish

Lyckoslanten, one of

Sweden’s biggest

children’s magazines.

Portal for donations

In Estonia, we contribute

funding and expertise to

I Love to Help, a portal for

donations to more than 50

charities.

Support to teachers

Through Mission Possible

we help students in Latvia to

become inspiring teachers and

future leaders.

Our employees

• We invest in our employees’ development.

• We create opportunities for internal mobility.

• We work for equality and diversity.

• We help our employees to find a balance

between their job and private life.

• Our goal is to have the industry’s best

managers.

The world is changing.

And so are we.

Customers’

new needs New

competitors

Macro-

economic

developments New

regulations

Customers’ new needs

More and more customers are choosing to do their

daily banking using a computer, smartphone or

tablet. At the same time many customers want

personal help, especially in cases that are a bit more

complex.

Our future: Customers should be able to handle all

their daily banking digitally, but also be able to get

personal, customised help at our branches.

Macroeconomic developments

Due to globalisation, both we and our customers are

increasingly affected by what happens in the world.

Demographic changes such as urbanisation and

population growth are creating new business

opportunities.

Low inflation has resulted in an expansive monetary

policy and low interest rates. Our customers are taking

greater risks and bigger loans.

Our future: To remain a strong, relevant bank, we need to

constantly adapt to the changes around us.

New competitors

Our competitors are both global banks and

companies that are operating outside the traditional

banking sector.

Our future: We must make it even easier to manage

daily banking digitally. And we must become even

better at transforming customer data into customer

insights, in order to provide tailor-made services and

products.

In the past few years, several new regulations

have been introduced, nationally as well as within

EU and globally. The regulations aim to increase

financial stability and to protect consumers.

Our future: The new regulations will increase our

costs and put pressure on our profits.

Nevertheless, we welcome these regulations as

they contribute to increased stability. As a matter

of fact, Swedbank is one of Europe’s best

capitalised banks.

New regulations

MiFID II

EU directive that regulates trading with securities and

aims to improve investor protection.

Basel III

International regulation that has tightened the

requirements for banks’ capital adequacy ratio and

reporting. Aims to prevent future financial bubbles and

crashes.

PSD2

EU directive that aims to create clear rules for third-party

services in the banking market. It also establishes rules

for common security standards.

Examples of new regulations

We are a part of our customer’s

day – throughout their life.

Our private customers

Has her

own

savings

account

Planning

to buy a

new car

Saving for

his

retirement

Recently

bought a

summer

cottage

Saving for

a trip

around

the world

Stock

trader

Our private customers

Almost half of the population in our home

markets are Swedbank customers! Here

are a few of the things we help them with:

• Loans & mortgages

• Savings & investments

• Payment services

• Pension and insurance

• Private banking

©Swedbank 22

Our corporate customers

Wants to

start a

company

Needs to

hire staff

On her

way to the

stock

exchange

Wants to

sell his

company

Dreams

about

retirement

Needs

more

capital

Our corporate customers

In a company, anything can happen. To be

able to help our customers in every possible

scenario, we offer expertise in the following

areas:

• Pensions & insurance • Financing

• Risk management • E-services

• Cash management • Asset management

• International business • Taxes & legal services

• Transfer of ownership • Business management

• Investment • Property management

There are many ways to Swedbank

©Swedbank 24

Digital services Via smartphone, tablet or computer

E-mail

Phone

Social media

382 branches

Customer