Interim report Jan–Sep 2012: Continued stable development of underlying operating profit

SBAB Bank’s CEO, Carl-Viggo Östlund, comments:
During the quarter, SBAB reported a continued solid earnings trend. Operating
profit, excluding net result of financial instruments, was once again higher
than in the preceding quarter. However, market-value changes of financial
instruments caused an adverse impact on the overall operating result. We foresee
continued strong demand for mortgages, primarily in our lending to tenant-owner
associations. Lower expenses compared with the preceding quarter confirm that
our increased effort to take a proactive approach to cost control is generating
results.

We have long been a challenger in the mortgage market and will continue on this
path under the current expansion of our customer offering. We are at the cutting
edge of developments in mobile-phone payments and, during the past quarter, we
worked on pilot tests to guarantee the technology and security ahead of the next
step. We now offer retail loans for everyone, not just those with SBAB mortgages
as was previously the case.

Our straightforward and competitive savings accounts continued to attract many
new customers during the third quarter. Backed by a market share of 21% during
the first eight months of the year, we are cementing our position as the leading
company in new retail deposits. Meanwhile, a higher share of funding through
deposits enables us to achieve a better balance between various funding sources
– which is entirely in line with our overall funding strategy.

At SBAB, we aim to offer a banking experience that no one thought was possible
and to change the view of what a bank can be. We are doing this for the sake of
our customers and to pose a challenge to the major banks. We are here to create
a new era in banking.

The interim period January–September 2012 compared with January–September 2011

  · Operating profit, excluding net result of financial instruments measured at
fair value, was SEK 839 million (606).
  · Net interest income amounted to SEK 1,450 million (1,160).
  · Expenses totalled SEK 533 million (490).
  · The net effect of loan losses was a negative SEK 3 million (pos: 20).
  · Net expense from financial instruments measured at fair value was SEK 611
million (expense: 539).
  · Operating profit totalled SEK 228 million (67).
  · New lending amounted to SEK 24.8 billion (21.1) and deposits increased to
SEK 24.6 billion (8.8*).
  · The core Tier 1 capital ratio was 16.2% (15.0*) without taking the
transitional regulations into account and 6.7% (6.7*) taking the transitional
regulations into account.
  · During the first eight months of the year, SBAB Bank had a share of 21% in
the market for new deposits from retail customers.

* For balance sheet items and information concerning capital adequacy, all
comparative figures in parentheses refer to the figures at the preceding year
-end.

The third quarter of 2012 compared with the second quarter of 2012

  · Operating profit, excluding net result of financial instruments measured at
fair value, was SEK 318 million (311).
  · Net interest income amounted to SEK 499 million (522).
  · Expenses totalled SEK 157 million (175).
  · The net effect of loan losses was a positive SEK 2 million (neg: 11).
  · Net expense from financial instruments measured at fair value amounted to
SEK 130 million (expense: 91).
  · Operating profit was SEK 188 million (220).
  · New lending amounted to SEK 8.1 billion (8.5) and deposits increased to SEK
24.6 billion (18.3).

SBAB Bank’s Interim report is enlosed this press release and available for
download from: www.sbab.se/investor
For further information, please contact:
Carl-Viggo Östlund, CEO, SBAB Bank
Telephone: 46 8 614 43 01, Mobile: 46 727 17 43 01, carl
-viggo.ostlund@sbab.se (carl-viggo.ostlund@sbab.se)

Bernd Schmitz, Chief Press Officer SBAB Bank
Telephone: 46 8 614 43 94, Mobile: 46 727 44 43 94, bernd.schmitz@sbab.se
SBAB Bank offers residential mortgages and saving products through the Internet
and telephone, and also grants loans to the corporate sector and housing
associations. By offering products and services that challenge and simplify,
SBAB Bank contributes to increased competition in the Swedish market. The
company was founded in 1984 and is wholly owned by the Swedish Government. In
2011, the company’s lending volume amounted to SEK 248.1 billion and the deposit
volume to SEK 8.8 billion. SBAB Bank has about 410 employees, of whom
approximately 120 work at the headquarters in Stockholm. Learn more at
www.sbab.se/english