Swedbank Ab Class A · OMXSTO:SWED_A

Swedbank Ab Class A — Q2 2021 Earnings Presentation

18 slides from Swedbank Ab Class A's earnings presentation, 2021

  1. Slide 1: © Swedbank Information class Public

    © Swedbank Information class Public

  2. Slide 2: Q2 2021 results summary

    SEKm Q2 21 Q1 21 ▲% Net interest income 6 572 6 541 0% ● Net profit increased by 12% Net commission income 3 674 3 360 9% ● Improved profitability, RoE of 14.2% Net gains and losses 645 585 10% – Stable NII, higher NCI Other income 979 916 7% Total income 11 870 11 402 4% ● Expenses according to pla

  3. Slide 3: Strong brand trust, asset quality and capital position

    - Strong brand trust - Strong asset quality - Strong capital position 3

  4. Slide 4: Swedish Mortgage Market Share incl. Savings Banks

    Swedish Mortgage Market Share incl. Savings Banks 17.2 17.4 12.7 9.2 8.0 Jan © Swedbank Information class Public Feb Mar Apr May 4

  5. Slide 5: Financial health and advice, digital sales and onboarding

    A Eg f PP [3 i> ng s? Financial Health and Advice y "Ed Increased Increased fall digital sales number of -T and digital onboarding services —_

  6. Slide 6: Our vision is a sound and sustainable society

    Our vision is a sound and sustainable society – Green asset register increased – Green Equity Designation – Swedbank advisor to Nasdaq – Two green bonds with a nominal of 15bn SEK issued during Q2 © Swedbank Information class 66 Public

  7. Slide 7: Net interest income change Q1 to Q2 2021

    SEKm +20 +36 * 1 621 13 1 6 1 641 1 637 -4 1 174 33 4 1 210 1 205 -1 -5 Q1 2021 Swedish Baltic Corporate Q2 excl. FX Q2 2021 Q1 2021* Swedish Baltic LC&I Q2 excl. FX Q2 2021* mortgage banking and other FX banking banking FX* loans excl. Baltic banking *Excluding Group functions and other (Group Trea

  8. Slide 8: Net interest income

    SEKm 6 541 52 6 572 48 84 ● Stable NII -153 – Higher average loan volumes -69 – Lower margins on Swedish mortgages – Excess liquidity placed with central banks offset by lower funding costs 3 000 ● Other Q1 2021 Volumes Margins Group Treasury Other Q2 2021 – ECB and Riksbanken liquidity facilities (

  9. Slide 9: Net commission income

    SEKm 3 360 181 49 84 3 674 ● Record high Net Commission Income ● Asset Management income from positive stock market performance ● High Cards income impacted by seasonality and improved consumption levels ● Corporate advisory positively impacted by Q1 2021 Cards & Asset Corporate Q2 2021 IPO Payments

  10. Slide 10: Net gains and losses

    SEKm 1 398 910 ● IPO valuation effect of SEK 111m from Hemnet shares held by Fastighetsbyrån 669 645 585 ● Underlying NGL at normal level Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 168 645 37 111 227 102 Bond Client Shares Funding Other Total NGL inventories trading © Swedbank Information class Public

  11. Slide 11: Expenses

    SEKm AML investigations Underlying expenses 5 586 170 4 973 4 989 4 843 4 761 77 90 ● FY underlying cost guidance of SEK 20.5bn 43 63 for 2021 and 2022 – AML investigation cost estimate of SEK 0.5bn per 5 416 annum for 2021 and 2022 4 800 4 698 4 896 4 899 ● Expenses in line with plan 2 000 Q2 2020

  12. Slide 12: Continued strong asset quality

    SEKm 31 ● Continued strong asset quality -1 ● Net recovery based on forward looking assumptions and improved ratings -23 -34 -27 ● Management overlay kept - pending Swedish Baltic LC&I Group Group Covid-19 development and removal of banking banking functions government support 2 151 1 235 425 523 24

  13. Slide 13: Reduced credit impairments under IFRS9

    SEKm 298 ● Reduced credit impairments under IFRS9 -44 ● Partly counteracted by management adjustments ● Individual assessment, mainly oil-related -27 144 -149 -276 Macro- Expert Individual Rating and stage Other Credit economic portfolio assessment migrations impairments forecast Q2 macro Q2 2021 ad

  14. Slide 14: Oil-related exposure: gross loans and provisions

    SEKbn 12.9 11.9 11.3 ● Gross loans, SEK 7.0bn 3.7 3.9 9.8 ● Credit impairment provisions of 4.6 7.3 7.0 SEK 2.4bn 4.5 2.4 2.4 ● Total stage 3 loans of SEK 3.5bn 9.2 8.0 6.6 5.3 5.0 4.6 2.5 2.5 1.2 0.9 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Drilling rigs Oil services Supply Floating vessels

  15. Slide 15: Strong capitalisation

    SEKbn 18.5% 16.4% 16.8% 17.5% 18.0% +610bps ● Strong capitalisation 12.4% ● CET1 capital buffer of around 610bps above requirements – target of 100-300bps ● 50% dividend policy ● Remaining accrued dividend from 2019 & Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 CET1 capital ratio 2020 profits still dedu

  16. Slide 16: © Swedbank Information class Public

    © Swedbank Information class 16 Public

  17. Slide 17: © Swedbank Information class Public

    © Swedbank Information class Public 17

  18. Slide 18: Q&A

    Q&A © Swedbank Information class Public

Swedbank — Q2 2021 Earnings Presentation on 6ix