Swedbank Q1 NII SEK 12.60 Bln, Below Estimate

Swedbank AB SWED_A:

• Q1 NET INTEREST INCOME SEK 12,599 MILLION (COMPANY COMPILED CONSENSUS: SEK 12,793 MILLION)

• Q1 FEES AND COMMISSION INCOME SEK 3,976 MILLION (COMPANY COMPILED CONSENSUS: SEK 3,804 MILLION)

• Q1 NET PROFIT SEK 8,428 MILLION (COMPANY CONSENSUS: SEK 8,153 MILLION)

• Q1 CREDIT IMPAIRMENT SEK 144 MILLION

• Q1 EXPENSES DECREASED AND COST/INCOME RATIO WAS 0.34, UNCHANGED FROM PREVIOUS QUARTE

• TEMPORARY HIRING FREEZE HAS BEEN INTRODUCED WITH EXCEPTION OF BUSINESS-CRITICAL POSITIONS

• DEPOSITS INCREASED IN SWEDEN, WHILE THEY WERE STABLE IN THE BALTIC MARKETS.

• NII DECREASE WAS MAINLY RELATED TO LOWER DEPOSIT MARGINS AS RESULT OF HIGHER SHARE OF DEPOSIT VOLUME AT HIGHER INTEREST RATES

• SLIGHTLY LOWER AVERAGE LENDING VOLUMES AND HIGHER FUNDING COSTS

• Q1 PROFIT INCREASED TO SEK 8 428M (7 560) DUE TO HIGHER INCOME, LOWER EXPENSES AND LOWER CREDIT IMPAIRMENTS.

• IN THE SWEDISH MORTGAGE BUSINESS THERE WERE FURTHER INCREASES DURING THE QUARTER IN BOTH LOANS WITH LATE PAYMENTS AND FORBORNE LOANS

• CREDIT QUALITY OF SWEDBANK’S LENDING WAS SOLID WITH LOW CREDIT IMPAIRMENTS DESPITE THE WEAK ECONOMIC SITUATION. T

• SWEDBANK ON INVESTIGATIONS: TIMING OF THE COMPLETION OF THE INVESTIGATIONS IS STILL UNKNOWN AND THE OUTCOMES ARE STILL UNCERTAIN.