Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.

1. 1
Baltic Banking
Mr Erkki Raasuke
Head of Baltic Banking
Capital Markets Day
Kiev, 5 March 2008
© Swedbank 2
Agenda
• Overview of the market
• Present situation
• Baltic Banking: looking at 2008

2. 2
Overview of the market
© Swedbank 4
Baltics macro development
• Long-term economic growth is
supported by:
– Attractive initial conditions
– Prudent governance and strong
institutions
– Significant investment in capital
stock and human capital
– Open and flexible economies
• Short-term unsustainable growth
caused by:
– EU accession and convergence
– Excessive inflow of debt capital
Real GDP growth
4%
6%
8%
10%
12%
14%
2005 2006 2007F 2008F
Est Lat Lit
CPI growth
2%
4%
6%
8%
10%
12%
2005 2006 2007F 2008F
Est Lat

3. 3
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Baltics macro development – Signs of slowdown
• All three countries are following
the expected path of an
economic cycle:
• Estonia is clearly in the slowdown
phase (expected to reach low point
during H108 with slow recovery
during H208)
• Latvia passed the turning point in
Q3 (expected to reach bottom
H2 08 with slow recovery during
2009)
• Lithuania reached its peak in Q3
(the bottom of current cycle
expected in 2009. The economic
cycle in Lithuania will probably be
flatter than in Estonia and Latvia)
GDP real growth
4%
6%
9%
11%
13%
15%
Q1
04
Q2
04
Q3
04
Q4
04
Q1
05
Q2
05
Q3
05
Q4
05
Q1
06
Q2
06
Q3
06
Q4
06
Q1
07
Q2
07
Q3
07
Q4
07
Estonia Latvia Lithuania
Consumer confidence
-20
-15
-10
-5
0
5
10
15
01-05 04-05 07-05 10-05 01-06 04-06 07-06 10-06 01-07 04-07 07-07 10-07 01-08
Estonia Latvia Lithuania
Present situation

4. 4
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Financial performance
Net profit (EURm)
463
175 205
323
2004 2005 2006 2007
Cost-income ratio
44%
49%49%
40%
2004 2005 2006 2007
Return on equity
27%
22%23%
30%
2004 2005 2006 2007
Number of employees
6,576 7,058
9,203
8,216
2004 2005 2006 2007
Lending (EURm)
14,158
8,899
5,697
18,877
2004 2005 2006 2007
>20%ROE on actual equity
<0.35%Net loan losses
<42%Cost-income
>20%EBT growth
Medium-term goals
© Swedbank 8
Group lending by sectors – Baltic Banking
Real estate development
• 38% of real estate management loan book is
related to residential real estate (Estonia
29%, Latvia 45%, Lithuania 38%)
– Est/Lit 1/1 development
– Lat 2/3 development
• Early development projects (land) form 12%
of real estate management portfolio
Real-estate management splitPortfolio, December 2007, EURm
15%
8%
38%
12%
24%
3%
Office
Production and
warehouse
Residential
Land plots
Retail
Other
546
1,111
1,692
1,736
3,012
8,282
2,786
0 2,000 4,000 6,000 8,000
Other
Construction
Transport
Industry
Retail &
wholesale
Real-estate
mgmt
Individuals
xx% - share of portfolio and portfolio growth
42%
3%
6%
8%
9%
15%
14%

5. 5
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Asset quality and provisioning cost
-0.06%-0.17%Group level provision adjustment
0.35%0.28%Baltic Banking
0.23%0.09%Lithuania
0.56%0.61%Latvia
0.39%0.57%Estonia
2007Q4 07
*Loan loss ratio, net = (changes in provisions + net write-offs) / credit portfolio at
the beginning of the period
Loan loss ratio, net*
Share of non-performing loans*
0.68%0.53%Baltic Banking
0.76%0.50%Private
0.63%0.56%Corporate
Dec 07Jun 07
*Share of non-performing loans = the volume of 60 days overdues /12m old portfolio
• Upon the Hansabank acquisition in
2005, Swedbank made a general
provision of about SEK280m. In Q4
2007, SEK70m of this was released
• The provision was partly made
because Swedbank at the time did
not have full insight into
Hansabank's risk and credit
systems and processes and thus
made an extra provision for
potential bad loans
• Since then the systems and
processes have improved and have
also been aligned with Swedbank's
Baltic Banking: looking at 2008

6. 6
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Baltic Banking
Goal is to be a clear leader in each Baltic market
– Biggest growth in volumes (in absolute terms)
– Highest profit (in absolute terms)
– Highest level of customer satisfaction
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Baltic Banking priorities 2008
Build efficient organization and reduce complexity
• Build new organization model
• Increase operational efficiency
• Improve employee productivity
• Build capabilities to work with data
Grow core businesses
• Corporate banking - manage through the cycle
• Retail lending - improve credit selection and risk-based pricing
• Daily banking - strengthen our client offerings
• Investment management - build cross-border operating model

7. 7
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Build new organization model in Baltic Banking
• Goal is to build a regional banking organization which leverages on
cross-border capabilities
– Building future cross-border operating model for Swedbank Group,
starting where value is most easily gained - Baltics
– Best practices and innovation rolled out quicker
– Leverage from experience of same business areas of three countries
– Clear decision making and execution authority
– Talented people can maximize their potential
• Priorities in 2008
– Define new organizational model in Baltic Banking by May 2008
– Implementation period from June to December
– New organizational model is expected to be fully functional in 2009
© Swedbank 14
Increase operational efficiency
• Grow business while improving efficiency
• Priorities in 2008
– First pilots in mortgage, debit cards run in 2007; corporate
lending, consumer finance and current account/payments to
be rolled out in 2008
– Develop operational performance measurement system
– Clear internal targets for savings in monetary terms, quality,
lead time, FTE reduction, customer satisfaction have been
established

8. 8
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Grow core businesses – Corporate banking
• Priorities in 2008
– Manage corporate business through the cycle
– strengthen the monitoring and restructuring teams
– maintain and enhance relationships with long-term clients
– Establish junior lending/ distressed debt solutions
– restructuring of distressed debt and launching mezzanine type of products
– Establish knowledge centres for specialized finance
– e.g. acquisition & project finance, shipping finance
– Attain cross-border credit solution and full-service cash management
offering for pan-Baltic clients
– unified service model
– implement efficient remote account opening and after-service
– launch regional e-channels offering
© Swedbank 16
Grow core businesses – Retail lending
• Priorities in 2008
– Implement risk capital logic in business strategy
– Develop risk selection and pricing skills
– Implement portfolio management
– Implement client value management approach
– Pilot ongoing in consumer finance, after that rolled out in other areas
– Improve process efficiency

9. 9
© Swedbank 17
Grow core businesses – Daily banking
• Priorities in 2008
– Develop daily banking business concept and strengthen our client
offerings
– Develop Customer Relationship Management concept
– Increase customer activity
– Core focus product - deposits
– maintain or increase current market share
© Swedbank 18
Grow core businesses – Investment management
• Priorities in 2008
– Build cross-border business model in life insurance and
asset management
– Build standardized advisory process in retail
– Increased focus on investment management in private
banking segment
– Particularly in Latvia and Lithuania

10. 10
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Summary
• Short-term challenges
– Credit quality
– Operational efficiency
• Building capabilities going forward
– Cross-border operating model
– Business processes for more mature markets
• Committed to fulfilling medium-term goals
© Swedbank 20
Additional material

11. 11
© Swedbank 21
Macro figures*
-1.1-1.2-1.1-1.6-2.4EU27
0.0-0.5-0.5-0.6-0.5Lithuania
1.210.7-0.3-0.4Latvia
0.0-1.823.82.3Estonia
General government balance (ESA95), % of GDP
-0.9-0.9-0.9-0.8-0.7EU27
-10.0 (Q4 07)-11.3-12.2-12.8-9.6-5.9Lithuania
-14.7 (Q4 07)-11.5-15.5-22.3-21.1-11.2Latvia
-12.2 (Q407)-6.5-8-12-13.4-8.1Estonia
Current and capital account balance, % of GDP
6.8 (Dec 07)6.66.87.17.98.7EU27
3.9 (Dec 07)4.74.64.35.68.3Lithuania
5.4 (Dec 07)6.56.55.96.99Latvia
5.3 (Dec 07)65.555.97.9Estonia
Harmonized unemployment level, %
9.9 (Jan 08)4.885.7**3.72.7Lithuania
15.8 (Jan 08)6.512.510.1**6.56.7Latvia
11 (Jan 08)3.86.56.6**4.44.1Estonia
Consumer price growth, %
5.6 (Q3 07)2.42.42.931.8EU27
7.9 (Q4 07)6.57.58.7**7.77.9Lithuania
9.6 (Q4 07)6.5610.511.910.6Latvia
4.5 (Q4 07)65711.210.2Estonia
Economic growth, %
Latest data2009f2008f2007f20062005
*Estonian, Latvian and Lithuanian forecast by HBM; EU27 forecast by EC (Autumn 2007 forecast)
** for actual data in 2007
© Swedbank 22
Main export sectors - Estonia
30%
9%7%11%
4% 8% 12%
5%
4%6%
17%
18%
6%
9%
11%
40%45%
31%
12%10%9%
0%
20%
40%
60%
80%
100%
2003 2005 2007
Food, beverages, tobacco etc Mineral products
Chemicals Plastic, rubber, wood etc
Textiles, footwear Machinery and equipment
Metals + other
Main export sectors - Latvia
12% 15%
30% 28%
25% 17%
9% 4%
6% 7%
9%
7%
9% 23%
0%
20%
40%
60%
80%
100%
2003 2005 2007
Food, beverages, tobacco etc Mineral products
Chemicals Plastic, rubber, wood etc
Textiles, footwear Machinery and equipment
Metals + other
Main export sectors - Lithuania
17%
20%
27%
27% 22% 35%
13%11%
14%
7%
7%
9%
9%
10%
12%
15%
10%
8%
11%11% 6%
0%
20%
40%
60%
80%
100%
2003 2005 2007
Food, beverages, tobacco etc Mineral products
Chemicals Plastic, rubber, wood etc
Textiles, footwear Machinery and equipment
Metals + other
N/A
Export sectors

12. 12
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EE 53%47%
44% 56%
37% 63%
Private loans
Corporate loans
LV
LT
11%
6%
38%
32%
13%
7%
11%
34%
41%
7%
9%
8%
40%
31%
12%
23%
7%
29%
22%
14%
5%
12%
15%
45%
11%
15%
2%
11%
5%
38%
38%
5%
3%
Office
Production & warehouse
Residential
Retail
Land plots
OtherCommercial real estate Transport
Capital goods Retail
Other
December 2007 Commercial
real estate