SBAB's net operating income for 2007 was SEK 258 million

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SBAB's net operating income for 2007 was SEK 258 million

SBAB's net operating income for 2007 was SEK 258 million (SEK 840 million). The
decrease in income is attributable to the change in value of SBAB's liquidity
portfolio. Operating income adjusted for unrealised changes in market value
amounts to SEK 874 million. 

- SBAB's core result is an improvement on last year. Taking into consideration
the tough market conditions with stiff competition together with turbulence in
the credit market, we are content with the result, says Eva Cederbalk, CEO.

Net operating income
SBAB's net operating income for 2007 was SEK 258 million (SEK 840 million). The
decrease in income compared with the corresponding period last year is primarily
attributable to the change in value of SBAB's liquidity portfolio. The change in
market value of the liquidity portfolio has entailed a charge on income of SEK
616 million. Net interest income amounted to SEK 1,177 million (SEK 1,217
million). During the year, the residential mortgage market has been
characterised by very tough competition and a clear downward marginal trend.
Operating income adjusted for the unrealised change in market value in the
liquidity portfolio is SEK 874 million, which is slightly higher than the
corresponding period last year.

Expenses amounted to SEK 517 million (SEK 595 million) in 2007, a decrease of
13%. Compared with previous years, both SBAB's administrative expenses and staff
costs have decreased.

The SBAB group has applied IFRS, International Financial Reporting Standards
from 1 January 2007.

The liquidity portfolio
SBAB's liquidity portfolio is a liquidity reserve intended to manage liquidity
and refinancing risk. SBAB has liquidity reserves that correspond to liquidity
requirements for 30 days or more. The liquidity portfolio has no exposure to the
US residential mortgage market or to subprime loans in any other market. The
portfolio amounted to SEK 31.0 billion as per 31 December 2007. The bonds in the
portfolio can be pledged at the Riksbank or the European Central Bank. SBAB
values each security individually at market value and reports the change in
value in the income statement. Consequently, the unrealised change in market
value affects the net operating income. The change in market value as per 31
December 2007 amounted to SEK -616 million and is a result of the financial
turbulence that affected the credit market during the second half of 2007. 


Lending
New lending to the retail market amounted to SEK 21,825 million (SEK 27,728
million). The retail market portfolio amounted to SEK 104,125 million (SEK
103,806 million). SBAB's business partners continue to be important distribution
channels. New lending to the corporate market increased to SEK 10,814 million
(SEK 10,280 million). The corporate market portfolio amounted to SEK 63,856
million (SEK 66,207 million). This reduction is explained by lower lending to
municipalities and to tenantowner associations.

Savings
SBAB now offers two savings products: A savings account (Sparkonto) for both new
and existing customers with an interest rate of 4.10% as per 31 December 2007
and the SBAB account (SBAB-konto) for customers with residential mortgages of at
least SEK 1 million with an interest rate of 4.85% as per 31 December 2007.
Interest is paid from the first krona regardless of the amount deposited and
withdrawals are free of charge. During the period, we have seen a positive
inflow of customers and the amount deposited as per 31 December 2007 is SEK 759
million.

Funding
SBAB considers it very important to have well-diversified funding sources. This
requires an active presence in the market and a flexible range of products. The
total value of outstanding securities issued was SEK 191.8 billion (SEK 182.3
billion). The issuance of covered bonds takes place in SBAB's wholly-owned
subsidiary The Swedish Covered Bond Corporation (AB Sveriges Säkerställda
Obligationer (publ)). The credit rating institutes Moody's and Standard & Poor's
have set a credit rating of Aaa/AAA for the covered bonds issued.



For additional information, please contact:

Per Balazsi, Head of Accounting, Risk and Control Department, SBAB
Telephone: +46 8 614 43 24
Mobile: +46 733 68 43 24
E-mail: per.balazsi@sbab.se


Lena Hedlund, Chief Communication Officer, SBAB
Telephone: +46 8 614 38 49
Mobile: +46 708 58 07 25
E-mail: lena.hedlund@sbab.se