Interim Report Q2 2017

Interim report January - June 2017, 19 July 2017
Q2 2017
Interim report for the second quarter 2017 During the second
Second quarter 2017 compared with first quarter 2017 quarter we made
Strong profit driven by higher income
several strategic
Increased mortgage volumes supported net interest
decisions and
income implemented
Net commission income benefited from higher card and initiatives to create
asset management income value-added for our
Net gains and losses on financial items positively customers.
affected by higher FX trading activity
Costs in line with expectations Birgitte Bonnesen,
President and CEO
Additional provisions in oil related sectors
Strong capitalisation
Financial information Q2 Q1 Jan-Jun Jan-Jun

SEKm 2017 2017 % 2017 2016 %
Total income 10 393 10 651 -2 21 044 20 834 1
Net interest income 6 090 5 971 2 12 061 11 013 10
Net commission income 3 000 2 822 6 5 822 5 440 7
Net gains and losses on financial items at fair value2) 567 486 17 1 053 1 277 -18
Other income1)2)3) 736 1 372 -46 2 108 3 104 -32
Total expenses 3 966 4 003 -1 7 969 7 666 4
Profit before impairments 6 427 6 648 -3 13 075 13 168 -1
Impairment of intangible and tangible assets 1 2 -50 3 9 -67
Credit impairments 400 339 18 739 573 29
Tax expense 1 276 1 181 8 2 457 1 998 23
Profit for the period attributable to the shareholders of Swedbank AB 4 746 5 124 -7 9 870 10 581 -7
Earnings per share, SEK, after dilution 4,24 4,59 8,83 9,49
Return on equity, % 15,6 15,9 15,7 17,4
C/I ratio 0,38 0,38 0,38 0,37
Common Equity Tier 1 capital ratio, % 24,6 24,2 24,6 23,0
Credit impairment ratio, % 0,10 0,09 0,10 0,08
1)
One-off income from sale of Hemnet of SEK 680m during first quarter 2017.
2)
One-off income from VISA, SEK 2 115m during first half year 2016 of which Net gains and losses on financial items at fair value SEK 457m and Other
income SEK 1 658m.
3)
Other income in the table above includes the items Net insurance, Share of profit or loss of associates, and Other income from the Group income
statement.
Swedbank Interim report Q2 2017 Page 1 of 56

CEO Comment
During the second quarter we made several strategic Baltic countries growth increased with support from
decisions and implemented initiatives to create value- improved global conditions.
added for our customers.
The need for further reforms internationally to create
We signed an agreement to acquire PayEx, a Swedish more balanced economic and social development is
payment service provider with a breadth and depth of great, especially in the labour and housing markets.
expertise. PayEx will complement and strengthen our While we also face challenges in Sweden, we are in an
product offering in an area that is important to the bank excellent position to address them and turn them into
and our customers. In addition, the companys strong opportunities.
innovative capabilities fit well with our values and will
help keep us in the forefront with world-class payment Solid profitability creates a sustainable business
solutions. Our profit for the second quarter was strong. Net
interest income rose thanks to the continued growth of
We also entered into a strategic partnership with the the mortgage portfolio. Increased customer activity in
independent equity broker Kepler Cheuvreux that cards and payments and an upswing in equity prices
enables us to offer high-quality solutions in equity improved net commission income. We were pleased to
research and distribution. see the great interest from customers in our new equity
fund, Swedbank Robur Microcap, which we launched in
Availability is very important to our customers. In the the quarter. The fund, which focuses on innovative
second quarter we launched a new Internet bank and Nordic startups, has already attracted nearly SEK 800m.
Mobile bank with several additional functions. We also
expanded the hours of our customer service centre, Lending to private customers in the Baltic countries
which is now open 24 hours a day, seven days a week, continued to increase, mainly in mortgages. Smart ID,
for both private and corporate customers. which was launched in the first quarter and facilitates
digital identification and signatures, already has 174 000
Swedbank works to inspire customers and make it users. The solution delivers value to customers and
easier for them to make sustainable financing and offers great business potential as mobile banking
investment choices. As proof of the success of our long- continues to grow.
term sustainability work, 14 of Swedbank Roburs funds
received the highest marks in a global climate impact Corporate lending decreased slightly in the quarter due
rating by Climetrics. In May we launched another to repayments. At the same time customer activity in FX
sustainability fund, Swedbank Robur Ethica trading and funding was high.
Fretagsobligationsfond, to complement the Ethica
family with a sustainable corporate bond fund with a The situation in the oil sector has not changed
European focus. appreciably. We increased credit impairments for our oil
exposures in the second quarter. Swedbanks lending to
To promote innovation and entrepreneurship, we the oil sector represents only a small share, just over 1
launched a campaign in Sweden in June called Rivstart per cent, of our total lending. Credit quality in the rest of
(Flying Start), an important aim of which is to identify the loan portfolio remains high.
and reward business ideas that clearly benefit society.
Ten winners will receive seed capital and coaching to The financial results for the second quarter once again
realise their ideas. We know how important new demonstrate Swedbanks sustainable profitability. Profit
businesses are to local communities around the country. generates capital and allows us to support our
customers when they need us, while also building up
All these initiatives deliver value to customers and make buffers should the market decline. In the second quarter
Swedbank a natural partner. Our long-term strategic we had a return on equity of 15.6 per cent and a
focus is on continuing to develop solutions that create Common Equity Tier 1 capital buffer that exceeded the
value-added for our customers. Swedish Financial Supervisory Authoritys minimum
requirement by 2.6 percentage points.
Macroeconomic conditions are bright
Optimism has increased in many of the worlds Full speed ahead high level of activity continues
economies. In Europe the recovery is continuing. We After a positive and eventful quarter, we are now
also saw political risks decline somewhat in the quarter focused on the second half of the year with the goal to
after several key elections, paving the way for continued create more customer value. We will be taking several
growth. The UKs exit from the EU creates uncertainty, important steps, especially in our work to fully digitise
however. the mortgage loan process. This autumn we will also
begin planning for next year. I look forward to a very
Several of the worlds central banks are now beginning busy autumn with a high level of activity.
to focus on how and when to phase out the stimulus
measures taken during the financial crisis. The US
Federal Reserve, for example, raised its benchmark rate
in the second quarter.
The Swedish economy is being driven by consumer Birgitte Bonnesen

spending and an active housing market, and indicators President and CEO
point to continued strength during the quarter. In the

Table of contents
Page
Overview 5
Market 5
Important to note 5
Group development 5
Result second quarter 2017 compared with first quarter 2017 5
Result January-June 2017 compared with January-June 2016 6
Volume trend by product area 6
Credit and asset quality 8
Operational risks 9
Funding and liquidity 9
Ratings 9
Capital and capital adequacy 9
Other events 10
Events after 30 June 2017 11
Business segments
Swedish Banking 12
Baltic Banking 14
Large Corporates & Institutions 16
Group Functions & Other 18
Eliminations 19
Group
Income statement, condensed 21

Statement of comprehensive income, condensed 22
Balance sheet, condensed 23
Statement of changes in equity, condensed 24
Cash flow statement, condensed 25
Notes 26
Parent company 47
Alternative performance measures 53
Signatures of the Board of Directors and the President 55
Review report 55
Contact information 56
More detailed information can be found in Swedbanks Fact book, www.swedbank.com/ir, under Financial information and publications.

Financial overview
Income statement Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2017 2017 % 2016 % 2017 2016 %
Net interest income 6 090 5 971 2 5 552 10 12 061 11 013 10
Net commission income 3 000 2 822 6 2 795 7 5 822 5 440 7
Net gains and losses on financial items at fair value 567 486 17 877 -35 1 053 1 277 -18
Other income1) 736 1 372 -46 2 466 -70 2 108 3 104 -32
Total income 10 393 10 651 -2 11 690 -11 21 044 20 834 1
Staff costs 2 386 2 448 -3 2 314 3 4 834 4 621 5
Other expenses 1 580 1 555 2 1 526 4 3 135 3 045 3
Total expenses 3 966 4 003 -1 3 840 3 7 969 7 666 4
Profit before impairments 6 427 6 648 -3 7 850 -18 13 075 13 168 -1
Impairment of tangible assets 1 2 -50 1 0 3 9 -67
Credit impairments, net 400 339 18 538 -26 739 573 29
Operating profit 6 026 6 307 -4 7 311 -18 12 333 12 586 -2
Tax expense 1 276 1 181 8 1 037 23 2 457 1 998 23
Profit for the period 4 750 5 126 -7 6 274 -24 9 876 10 588 -7
Profit for the period attributable to the shareholders of
Swedbank AB 4 746 5 124 -7 6 270 -24 9 870 10 581 -7
1)
Other income in the table above includes the items Net insurance, Share of profit or loss of associates, and Other income from the Group income
statement.
Q2 Q1 Q2 Jan-Jun Jan-Jun
Key ratios and data per share 2017 2017 2016 2017 2016
Return on equity, % 1) 15,6 15,9 21,0 15,7 17,4
2) 4,26 4,61 5,65 8,87 9,54
Earnings per share before dilution, SEK
Earnings per share after dilution, SEK 2) 4,24 4,59 5,62 8,83 9,49
C/I ratio 0,38 0,38 0,33 0,38 0,37
Equity per share, SEK 2) 111,3 107,3 107,4 111,3 107,4
Loan/deposit ratio, % 166 162 152 166 152
Common Equity Tier 1 capital ratio, % 24,6 24,2 23,0 24,6 23,0
Tier 1 capital ratio, % 27,8 27,5 25,3 27,8 25,3
Total capital ratio, % 32,5 30,6 28,3 32,5 28,3
Credit impairment ratio, % 3) 0,10 0,09 0,14 0,10 0,08
Share of impaired loans, gross, % 0,53 0,50 0,34 0,53 0,34
Total provision ratio for impaired loans, % 45 51 58 45 58
4)
Liquidity coverage ratio (LCR), % 128 137 138 128 138
Net stable funding ratio (NSFR), % 110 109 108 110 108
Balance sheet data 30 Jun 31 Dec 30 Jun

SEKbn 2017 2016 % 2016 %
Loans to the public, excluding the Swedish National Debt Office
and repurchase agreements 1 470 1 453 1 1 420 4
Deposits and borrowings from the public, excluding the Swedish
National Debt Office and repurchase agreements 888 782 14 936 -5
Shareholders' equity 124 130 -4 119 4
Total assets 2 426 2 154 13 2 476 -2
Risk exposure amount 407 394 3 413 -2
1)
Average shareholders equity can be found on pages 73-74 in the Fact book.
2)
The number of shares and calculation of earnings per share are specified on page 44.
3)
For more information about credit impairment ratio, see page 42 of the Fact book.
4)
LCR - calculated in accordance with SFSAs regulations (FFFS 2012:6.).
Definitions of all key ratios can be found in Swedbanks Fact book on page 81.

Growth in the Baltic economies further strengthened in
Overview the first quarter. The increase was strongest in Estonia,
where GDP rose by 4.4 per cent compared with the first
Market quarter of 2016, the largest gain in four years. In Latvia
The European economic recovery continued in the GDP rose by 4.0 per cent and in Lithuania by 3.9 per
second quarter and political risks have declined after cent. Baltic exports benefited from an improved global
last springs elections in the Netherlands, France and market. Investments, which recovered at the end of last
the UK. The UKs upcoming exit from the EU creates year in all three Baltic countries thanks to increased
uncertainty, however. In the US economic indicators flows from the EUs structural funds, received further
were somewhat weaker than estimated, while the labour support in the second quarter from improved export
market continued to improve. Against the backdrop of conditions and higher domestic industrial production.
falling US unemployment, now below 4.5 per cent, the Consumer spending was driven by higher wages and
Federal Reserve raised the target range for its falling unemployment. The inflation rate in May was
benchmark interest rate to 1.001.25 per cent in June 3.3 per cent in Estonia, 3.2 per cent in Lithuania and
and signalled that it will gradually reduce its bond 2.8 per cent in Latvia.
holdings. Uncertainty about US fiscal policy, including
President Trumps promised tax cuts and infrastructure Important to note
investments, persists.
The interim report contains alternative performance
measures that Swedbank considers valuable
The ECB left its key interest rate unchanged at the
information for the reader, since they are used by the
latest monetary policy meeting in May. Expectations of a
executive management for internal governance and
gradually less expansionary policy have grown,
performance measurement as well as for comparisons
however, following statements by ECB President Mario
between reporting periods. Further information on the
Draghi and stronger European macro data, which
alternative performance measures used in the interim
strengthened the euro against the dollar. The Swedish
report can be found on page 53.
krona weakened against the euro but rose against the
dollar in the quarter. Long-term bond yields rose in the
eurozone, while US long-term yields fell slightly. Oil Group development
prices dropped in the second quarter despite OPECs
decision in May to extend production cutbacks until Result second quarter 2017 compared with
March of next year. A further increase in US oil
production contributed to a global surplus.
first quarter 2017
Swedbank reported profit of SEK 4 746m in the second
The Swedish economy grew at a slightly slower rate in quarter of 2017, compared with SEK 5 124m in the
the first quarter than at the end of last year and GDP previous quarter. The first quarter included a tax-exempt
rose by 2.2 per cent on an annualised, calendar capital gain of SEK 680m on the sale of Hemnet.
adjusted basis. Growth was driven by consumer Excluding Hemnet income rose in every business area.
spending and a big increase in housing investment, FX changes increased profit by SEK 43m.
while export growth declined slightly. Tendency surveys
such as the Purchasing Managers Index and the The return on equity was 15.6 per cent (15.9) and the
National Institute of Economic Researchs Economic cost/income ratio was 0.38 (0.38). Profit for the period
Tendency Indicator show that the economy remained and lower average capital due to the share dividend in
strong in the second quarter, which was also reflected in the second quarter positively affected the return. In the
the labour market. In May 92 000 more people were first quarter the return was positively affected by the
working than in the same month a year earlier. Hemnet gain.
Unemployment fell slightly to 6.7 per cent at the same
time that the labour shortage became more widespread, Income decreased by 2 per cent to SEK 10 393m
mainly in construction but also in private services. (10 651), mainly because other income was positively
Inflation and inflation expectations rose, though some of affected by Hemnet in the first quarter. Excluding
that increase can be attributed to temporary factors Hemnet income rose by 4 per cent. FX changes
such as rising energy prices and a weaker krona. increased income by SEK 93m.
Inflation adjusted for interest rate effects, CPIF, was
1.9 per cent in June. Underlying inflation, CPIF Net interest income rose by 2 per cent to SEK 6 090m
excluding energy, was 1.9 per cent in the same month. (5 971). An increase in Swedish mortgage lending
volumes had a positive effect. The margins on the
House prices in Sweden dipped slightly in the second mortgage portfolio were stable. Net interest income from
quarter compared with the first, at the same time that deposits was positively affected by improved margins
residential construction was at the highest level since due to higher market interest rates. A decrease in the
the days of the Million Homes Programme in the 1960s resolution fund fee of SEK 83m and an extra day in the
and 1970s. The introduction of the amortisation quarter also had a positive effect. The resolution fund
requirement in June 2016 and declining house prices fee for 2017 ultimately decided by the Swedish National
helped to reduce the annual growth rate for residential Debt Office was lower than previously estimated.
mortgages to 7.1 per cent in May. In late May the
Swedish Financial Supervisory Authority (SFSA) Net commission income increased by 6 per cent to
proposed a stricter amortisation requirement for SEK 3 000m (2 822). Card income was seasonally
households that borrow more than 4.5 times their gross higher. Asset management income increased, mainly
income. Despite the slowdown in May, credit growth still thanks to rising equity prices. An extra day in the quarter
exceeded wage growth, contributing to a further rise in also contributed positively.
household debt-to-income.

Net gains and losses on financial items at fair value rose Income increased to SEK 21 044m (20 834). Excluding
to SEK 567m (486). Increased income from FX trading one-off items it rose by SEK 1 645m. FX changes
contributed positively. increased income by SEK 167m.
Other income decreased to SEK 736m (1 372) because Net interest income rose by 10 per cent to
the Hemnet sale positively affected the previous quarter SEK 12 061m (11 013). Higher lending volumes and
by SEK 680m. margins on Swedish mortgages contributed positively.
An increase in the resolution fund fee of SEK 282m had
Expenses fell slightly to SEK 3 966m (4 003). Variable a negative effect on net interest income. The Swedish
staff costs were lower than in the first quarter. National Debt Office doubled the fee compared with
2016.
Credit impairments amounted to SEK 400m (339),
mainly due to increased provisions within Large Net commission income rose by 7 per cent to
Corporates & Institutions for oil related commitments. SEK 5 822m (5 440). Higher asset management income
Swedish Banking and Baltic Banking reported minor due to rising equity prices and increased card income
losses. contributed positively, while lower commissions from
Corporate Finance had a negative effect.
The tax expense amounted to SEK 1 276m (1 181),
corresponding to an effective tax rate of 21.2 per cent Net gains and losses on financial items at fair value fell
(18.7). The difference in the effective tax rate between to SEK 1 053m (1 277), mainly because income related
quarters is because the first quarter was affected by the to the Visa Europe sale had a positive effect in the first
tax-exempt capital gain on the Hemnet sale. Excluding half of 2016.
this gain the effective tax rate would have been 21.0 per
cent in the first quarter. The Groups effective tax rate is Other income decreased to SEK 2 108m (3 104),
estimated at 20-22 per cent in the medium term. because one-off income was higher in the first half of
2016.
Result January-June 2017 compared with
Expenses rose to SEK 7 969m (7 666) due to increased
January-June 2016 pension costs and salary increases.
Profit fell to SEK 9 870m, compared with SEK 10 581m
in the first half of 2016. The decrease is mainly because Credit impairments increased to SEK 739m (573),
one-off income was higher in the first half of 2016 (sale mainly due to increased provisions for oil related
of Visa Europe) than the same period in 2017 (sale of commitments within Large Corporates & Institutions.
Hemnet). FX changes increased profit by SEK 61m. Swedish Banking reported credit impairments while
Baltic Banking reported net recoveries.
Excluding one-off income profit increased to
SEK 9 190m (8 466), as shown in the table below. The tax expense amounted to SEK 2 457m (1 998),
corresponding to an effective tax rate of 19.9 per cent
Jan-Jun Jan-Jun Jan-Jun Jan-Jun (15.9). The effective tax rate for 2017 has been
2017 2017 2016 2016
positively affected by the tax-exempt capital gain on the
excl. one-
off
excl. one- Hemnet sale, but negatively by the elimination of the
off income deductibility of interest on subordinated liabilities in
income
VISA 2017. The same period in 2016 was positively affected
Income statement,SEKm Hemnet
Net interest income 12 061 12 061 11 013 11 013 by tax-exempt income from the sale of Swedbanks
Net commission income 5 822 5 822 5 440 5 440 shares in Visa Europe. The Groups effective tax rate is
Net gains and losses on estimated at 20-22 per cent in the medium term.
financial items at fair value 1 053 1 053 1 277 820
of which VISA 457 0
Share of profit or loss of
associates 379 379 2 120 462
Volume trend by product area
of which VISA 1 658 0 Swedbanks main business is organised in two product
Other income1) 1 729 1 049 984 984 areas: Group Lending & Payments and Group Savings.
of which Hemnet 680 0 0
Total income 21 044 20 364 20 834 18 719
Lending
Total expenses 7 969 7 969 7 666 7 666
Impairments 742 742 582 582 Total lending to the public, excluding repos and the
Operating profit 12 333 11 653 12 586 10 471 Swedish National Debt Office, increased by SEK 13bn
Tax expense 2 457 2 457 1 998 1 998 to SEK 1 470bn (1 457) compared with the first quarter.
Profit for the period Compared with 30 June 2016 the increase was
attributable to the SEK 50bn, or growth of 3.5 per cent.
shareholders of Swedbank
AB 9 870 9 190 10 581 8 466
Return on equity 15,7 14,6 17,4 13,9

Cost/Income ratio 0,38 0,39 0,37 0,41
1)
Other income in the table above includes the items Net insurance and
Other income from the Group income statement.
The return on equity was 15.7 per cent (17.4) and the
cost/income ratio was 0.38 (0.37). Excluding one-off
income the return on equity was 14.6 per cent (13.9).

Loans to the public excl. In the Baltic countries there were 121 million card
the Swedish National Debt Office purchases, an increase of 12 per cent.
and repurchase agreements, SEKbn 30 Jun 31 mar 30 Jun
2017 2017 2016
Loans, private mortgage 802 790 749
The number of acquired card transactions also
of which Swedish Banking 737 726 687 increased year-on-year. In the Nordic countries the
of which Baltic Banking 65 64 61 number of acquired card transactions was 619 million in
of which Large Corporates & Inst. 0 0 1 the second quarter, an increase of 8 per cent compared
Loans, private other incl tenant-owner with the second quarter of 2016. In the Baltic countries
associations 152 150 147
the corresponding figures were 89 million and
of which Swedish Banking 139 138 134
of which Baltic Banking 12 12 12
9 per cent.
of which Large Corporates & Inst. 1 0 1
Loans, corporate 516 517 524 Card payments in stores for the market in total was over
of which Swedish Banking 249 252 275 85 per cent in Sweden and over 50 per cent in Estonia,
of which Baltic Banking 65 65 63 while the figures were slightly lower in Latvia and
of which Large Corporates & Inst. 202 200 186
Total 1 470 1 457 1 420
Lithuania. Swedbank is working actively to increase
card payments in stores by encouraging more retailers
to accept cards and advising customers to pay by card
Lending to Swedish mortgage customers within
in stores instead of cash.
Swedish Banking increased by SEK 11bn to SEK 737bn
(726) compared with 31 March. In Baltic Banking
To make it easier for customers to pay for small
mortgage volume grew by 1.4 per cent in local currency
purchases by card, Swedbank offers contactless cards.
to the equivalent of SEK 65bn.
The launch began in the Baltic countries in 2016 and is
Other private lending, including to tenant-owner continuing gradually in Sweden in 2017 for various
types of cards. At the same time payment terminals at
associations, grew by SEK 2bn in the quarter.
stores are being upgraded to accept contactless cards.
In the Baltic countries more than 50 per cent of
Swedbanks Swedish consumer loan volume amounted
to SEK 31bn, corresponding to a market share of about terminals support contactless payments. In Sweden the
10 per cent. Consumer loans include unsecured loans corresponding figure is currently around 20 per cent, but
the number of terminals with contactless functionality is
as well as loans secured by a car or boat. The Baltic
expected to grow quickly and reach more than
consumer loan portfolio grew in the quarter by 3 per
cent in local currency to the equivalent of around 50 per cent of stores in 2018.
SEK 7.5bn.
The number of domestic payments handled by
Swedbank rose by 16 per cent in Sweden and by 1 per
Corporate lending fell by a total of SEK 1bn in the
cent in the Baltic countries compared with the second
quarter to SEK 516bn. Corporate lending decreased by
SEK 3bn within Swedish Banking and grew by SEK 2bn quarter of 2016. Swedbanks market share of payments
through the Bankgiro system was 37 per cent. The
within Large Corporates & Institutions. Within Baltic
number of international payments rose by 8 per cent in
Banking corporate lending decreased slightly in local
Sweden and 15 per cent in the Baltic countries
currency.
compared with the second quarter of 2016.
For more information on lending, see page 36 of the
To better capitalise on emerging opportunities in e-
Fact book.
commerce, Swedbank has created a new unit,
Payments Commerce, within Group Lending & Payments, which
will focus on providing retailers with comprehensive
The total number of cards in issue from Swedbank at
payment solutions. We have also signed an agreement
the end of the quarter was 8.0 million, unchanged
to acquire the payment service provider PayEx and are
compared with the end of the first quarter. Compared
with the second quarter of 2016 the number of cards in now awaiting approval from regulatory authorities. The
acquisition complements Swedbanks payment and
issue increased by 1.2 per cent.
financing services and creates further opportunities to
continue developing attractive long-term payment
In Sweden the number of cards in issue was 4.2 million
at the end of the second quarter. Compared with the services for retailers and their customers.
same period in 2016 corporate card issuance increased
Savings
by 0.9 per cent and consumer card issuance by 2.0 per
Total deposits within the business segments Swedish
cent. The increase in the number of consumer cards is
largely driven by the growing number of young people Banking, Baltic Banking and Large Corporates &
Institutions increased by SEK 1bn to SEK 805bn (804)
who are signing up for cards. The banks many small
compared with the end of the first quarter. Of this total,
business customers offer further growth potential in the
58 per cent (58) related to on demand deposits. Total
corporate card issuance business. In the Baltic
countries the number of cards in issue was 3.8 million. deposits from the public, including volumes attributable
to Group Treasury within Group Functions & Other,
30 Jun 31 Mar 30 Jun
decreased by SEK 10bn in the quarter to SEK 888bn.
Number of cards 2017 2017 2016
Swedbanks deposits from private customers increased
Issued cards, millon 8,0 8,0 7,9
by SEK 15bn in the quarter to SEK 457bn (442). Within
of which Sweden 4,2 4,2 4,1
Swedish Banking deposits increased by SEK 12bn
of which Baltic countries 3,8 3,8 3,8
partly due to a tax refund during the quarter.
A total of 317 million purchases were made in Sweden
with Swedbank cards in the second quarter, an increase
of 7 per cent compared with the second quarter of 2016.

Deposits from the public excl. cent in Estonia, 42 per cent in Latvia and 37 per cent in
the Swedish National Debt Office Lithuania.
and repurchase agreements, SEKbn 30 Jun 31 mar 30 Jun
2017 2017 2016 Two new funds were launched in the second quarter:
Deposits, private 457 442 427 Microcap, an equity fund specialising in innovative
of which Swedish Banking 355 343 335 Nordic startups, and Ethica Fretagsobligationsfond, a
of which Baltic Banking 102 99 92 sustainable fund that invests in European corporate
Deposits, corporate 431 456 509 bonds. The response has been positive, with net inflows
of which Swedish Banking 155 147 144 of SEK 798m in Microcap, which was launched in April,
of which Baltic Banking 67 69 67 and SEK 1.3bn in Ethica Fretagsobligationsfond, which
of which Large Corporates & Inst. 126 146 126 was launched in May.
of which Group Functions & Other 83 94 172
Total 888 898 936 Assets under management, life
insurance 30 Jun 31 Mar 30 Jun
Corporate deposits decreased by a total of SEK 25bn in SEKbn 2017 2017 2016
the quarter. Deposits within Large Corporates & Sweden 170 167 144
Institutions decreased by SEK 20bn, mainly due to of which collective occupational
withdrawals of temporary deposits by financial pensions 76 74 63
institutions. In Swedish Banking deposits increased by of which endowment insurance 63 62 55
SEK 8bn and in Baltic Banking they decreased by of which occupational pensions 21 20 17
SEK 2bn. Deposits within Group Treasury decreased by of which other 9 9 9
SEK 11bn largely due to lower volumes from US money Baltic countries 5 5 4
market funds.
Life insurance assets under management in Sweden
The market share for household deposits in Sweden increased by SEK 3bn in the quarter to SEK 170bn. The
was stable at 21 per cent as of 31 May (21 per cent as net inflow was SEK 1.3bn.
of 31 December 2016). The market share for corporate
deposits fell slightly to 19 per cent (20). For more Swedbank was the eighth largest life insurance
information on deposits, see page 37 of the Fact book. company in Sweden in the first quarter of 2017, with a
market share of about 7 per cent in premium payments
Asset management, 30 Jun 31 Mar 30 Jun excluding capital transfers. The market share for
SEKbn 2017 2017 2016 transferred capital was 9 per cent, placing Swedbank
Assets under management 840 833 726 fourth. Swedbank is the largest life insurance company
Assets under management, Robur 835 829 721 in Estonia and the second largest in Lithuania and
of which Sweden 796 791 687 Latvia. Its market shares as of 31 May were 44 per cent
of which Baltic countries 39 37 31 in Estonia, 23 per cent in Lithuania and 22 per cent in
of which Norway 0 0 4 Latvia.
Assets under management, Other,
Baltic countries 5 5 4 Credit and asset quality
Discretionary asset management 386 383 367
Stable economic growth in our home markets has
supported the trend towards generally low credit
Fund assets under management by Swedbank Robur
impairments. Oil related sectors face continued
continued to rise in the second quarter to SEK 835bn as
uncertainty, however. The major oil companies are still
(829bn) of 30 June, of which SEK 796bn (791) relates to
reluctant to invest due to the low oil prices. Swedbank
the Swedish fund business. The increase is due to
continues to carefully follow the sectors development
higher asset values. Fund assets under management by
and maintains a close dialogue with impacted
Swedbank Roburs Baltic business increased to
customers.
SEK 39bn (37) due to rising asset values and positive
net flows.
Credit impairments amounted to SEK 400m in the
quarter (SEK 339m in the first quarter) and mainly
The total net inflow to the Swedish fund market was
related to provisions for anticipated credit impairments
SEK 33.4bn in the quarter, of which SEK 8.1bn was in
for existing commitments in the oil related sector. Credit
equity funds, SEK 9.0bn in mixed funds, SEK 15.0bn in
impairments in others sectors remained very low.
fixed income funds and SEK 1.3bn in hedge funds and
other funds.
Credit impairments, net
by business segment Q2 Q1 Q2
After a positive start to the year, Swedbank Roburs net SEKm 2017 2017 2016
inflow in the Swedish fund market was negative in the
second quarter at SEK -5.6bn (SEK 2.6bn in the first Swedish Banking 86 -3 -35
Baltic Banking 7 -66 50
quarter). The negative flow is primarily due to capital
Estonia 10 -10 57
reallocations by institutional investors. The net flow from
Latvia 2 -27 2
Swedish Banking and the savings banks, including
Lithuania -5 -29 -9
insurance, improved to SEK 3.9bn (1.8).
Large Corporates & Institutions 307 408 545
Group Functions & Other 0 0 -22
The net flow in the Baltic countries stayed positive in the
Total 400 339 538
second quarter at SEK 1.1bn (1.3).
The credit impairment ratio was 0.10 per cent (0.09 as
By assets under management, Swedbank Robur is the
of 31 March). The share of impaired loans (gross)
largest player in the fund markets of Sweden and the
increased in the quarter to 0.53 per cent (0.50) of total
Baltic countries. In Sweden the market share was
lending. The total provision ratio for impaired loans was
21 per cent as of 30 June. The market share was 41 per
45 per cent (51). For more information on asset quality, Ratings
see pages 39-45 of the Fact book.
During the second quarter there were no changes in
Swedbanks ratings.
New residential construction in Sweden is the highest in
many years and is leading to increased mortgage
volumes. While new construction has caught up with Capital and capital adequacy
demand in some locations, the housing shortage still Capital ratio
persists in many metropolitan areas and is pushing The Common Equity Tier 1 capital ratio was 24.6 per
prices higher. Volume and prices are rising more slowly cent on 30 June (24.2 per cent as of 31 March).
than before, however, partly due to the amortisation Common Equity Tier 1 capital increased by SEK 0.7bn
requirement introduced last year. Swedbank supports during the quarter to SEK 100.2bn. Profit, after
the SFSAs proposal for a tighter amortisation deducting the proposed dividend, positively affected
requirement for households with high debt. The effects of Common Equity Tier 1 capital by SEK 0.9bn. The
the new proposal are expected to correspond to the revaluation of the estimated pension liability according
effects of the debt to income cap the bank already to IAS 19 reduced Common Equity Tier 1 capital by
applies. about SEK 0.4bn, mainly due to experience-based
actuarial losses.
Swedbanks Swedish mortgages increased by 1.5 per
cent in the quarter, or 6.1 per cent on an annual basis. In May Swedbank issued a EUR 650m Tier 2 loan to
This is a lower growth rate than in previous years and optimise its capital structure. The issue has a 10.5-year
lower than the market in total. The average loan-to- maturity with a redemption option after 5.5 years. The
value ratio of Swedbanks mortgages was 53 per cent issue strengthened Swedbanks total capital ratio by
(54) in Sweden, 48 per cent (48) in Estonia, 82 per cent 1.5 percentage points.
(86) in Latvia and 67 per cent (67) in Lithuania, based
on property level. For new lending in the quarter the Change in Common Equity Tier 1 capital, 2017, Swedbank
loan-to-value ratio was 68 per cent in Sweden, 68 per consolidated situation
cent in Estonia, 74 per cent in Latvia and 74 per cent in SEKbn
110
Lithuania. Amortisations in the Swedish mortgage 4.5
portfolio amounted to about SEK 13bn in the last 12- 100

99.6 0.2 100,2
month period. For more information, see pages 46-47 of -3.6

-0.4
the Fact book. 90
Operational risks 80
No incidents occurred in the second quarter that

significantly impacted our customers. In late May the 70
bank suffered a payment-related disruption, due to

which payments had to be handled manually for about 60
three hours, causing some delays.

50
Q1 201 7 Pro fit Anticipated IAS 19 Other CET1 Q2 201 7
The banks safeguards effectively blocked the global (consolida ted

situ atio n)
dividen d change s
cyberattacks in the quarter. Losses related to Incr ease Decrease
operational risks remained low.

Swedbanks leverage ratio as of 30 June 2017 was
4.8 per cent (4.7). The ratio increased because total
Funding and liquidity assets were lower at the end of the second quarter of
In the second quarter Swedbank stayed active in the 2017 than at the end of the first quarter of 2017.
international bond markets. The bank took advantage of
favourable market conditions and chose to fund future The risk exposure amount (REA) decreased by
maturities early on. Swedbank issued SEK 29bn in long- SEK 4.0bn in the second quarter to SEK 406.7bn
term debt, of which SEK 27bn related to covered bond (410.7).
issues. The total issuance volume for 2017 is expected
to be slightly higher than in 2016. Maturities for the full- Change in REA, 2017, Swedbank consolidated situation
year 2017 are nominally SEK 166bn from the beginning
of the year. Issuance plans are mainly affected by
changes in deposit volumes and lending growth and are
adjusted over the course of the year.
Outstanding short-term funding, commercial paper and

Certificates of Deposit included in debt securities in
issue, amounted to SEK 159bn as of 30 June
(SEK 230bn as of 31 March 2017). At the same time
SEK 435bn (408) was placed with central banks. The
liquidity reserve amounted to SEK 559bn (593) as of
30 June. The Groups liquidity coverage ratio (LCR) was
128 per cent (137), and for USD and EUR was 161 and
192 per cent respectively. The net stable funding ratio
(NSFR) was 110 per cent (109). For more information
on funding and liquidity, see notes 15-17, and pages 56-
71 of the Fact book.

REA for credit risks decreased by a total of SEK 3.5bn. eligible liabilities must be subordinated to the liabilities
REA for credit valuation adjustments (CVA risk) that are excluded from write-down or conversion. The
decreased by SEK 1.5bn due to lower exposures. REA EU Commission has proposed that the EUs member
for market risks increased by SEK 1.0bn, mainly driven states amend their national insolvency laws to introduce
by higher interest rate risks in the trading book. REA for a new category of debt that meets this requirement. In
operational risks was unchanged during the quarter. June 2017 the EUs finance ministers decided to
support the proposal. The EU Parliament is expected to
Changes in exposures increased REA for credit risk by rule on it in autumn 2017. If it too supports the proposal,
SEK 0.4bn. This was mainly due to a switch to the IRB Sweden would have to amend its Rights of Priority Act
approach to calculate REA for two types of exposures: in 2018 or possibly the beginning of 2019. This would
exposures to central governments and central banks as enable Swedish banks to issue debt instruments to fulfil
well as to loans obtained in connection with the MREL.
acquisition of Sparbanken resund. As a result, the
exposures risk weights have changed. The average risk The Basel Committee has been working for several
weight for exposures to central governments and central years to limit the international differences between
banks has risen from 0 per cent to 1.5 per cent, banks risk weights, including a possible capital floor for
increasing the REA by SEK 7.5bn. The average risk banks that use internal models. After its meeting in June
weight for exposures related to converted credits from 2017 the Basel Committee announced that it had not yet
Sparbanken resund decreased, reducing the REA by finalised the rule changes but would continue its work.
SEK 6.5bn. The remaining decrease in the REA from
exposure changes of SEK 0.6bn is mainly due to lower Until the new rules are finalised, it remains uncertain
exposures to financial institutions. how Swedbank will be affected. The EU must first
decide whether, and if so how, they will be implemented
Within REA for credit risks positive PD migrations in the EU. Thereafter Swedish lawmakers and
(Probability of Default), mainly to corporates and private authorities will have to decide how they will be
individuals, contributed to a decrease of SEK 3.0bn. implemented in Sweden. With its robust profitability and
Increased collateral values, which have a negative strong capitalisation, however, Swedbank is well
effect on Loss Given Default (LGD), reduced REA for positioned to meet future changes in capital
credit risks by SEK 2.9bn. Other credit risk increased requirements.
REA by SEK 2.0bn, mainly because additional
customers defaulted on their loans before provisions Other events
could be allocated for these commitments.
On 4 April Swedbank announced that it had entered into
a partnership with and invested in the fintech company
Capital requirement
Mina Tjnster (My Services). Mina Tjnsters personal
Swedbanks total Common Equity Tier 1 capital
finances app, which is currently available in Swedish,
requirement increased in the quarter to 22.0 per cent,
makes it easier for people to manage their subscriptions
compared with Swedbanks Common Equity Tier 1
to the services they use in their everyday lives. The
capital ratio of 24.6 per cent as of 30 June 2017. The
partnership will give Swedbanks customers access to
requirement increased because the capital requirement
the tool.
with respect to the risk weight floor for mortgages in
Pillar 2 increased. This was due to an increase in the
On 5 May Swedbank announced that it had signed an
volume of mortgages subject to the risk weight floor
agreement to acquire the payment service provider
after the switch to an internal risk classification method
PayEx. The acquisition complements Swedbanks e-
(IRB) to calculate REA for exposures to the loans
commerce payment solutions and creates good
obtained through the acquisition of Sparbanken
opportunities to continue to develop comprehensive
resund. The total requirement takes into account
payment solutions for retailers and their customers. The
Swedbanks Common Equity Tier 1 capital requirement
acquisition is being financed using Swedbanks own
for individual Pillar 2 risks of 2.0 per cent as well as all
resources and is subject to the customary approvals by
announced increases in the contracyclical buffer values.
regulatory authorities, including the SFSA and the
Swedish Competition Authority. The acquisition will
Future capital regulations
have a somewhat negative impact on Swedbanks
In November 2016 the EU Commission proposed a
Common Equity Tier 1 capital ratio. More information on
package of reforms to the EUs rules for banks. The
the financial effects for Swedbank will be communicated
proposal contained amendments in a number of areas,
when the acquisition is completed.
including the capital requirements within Pillar 2, the
framework for a minimum requirement for own funds
On 16 May the SFSA announced its decision to close
and eligible liabilities (MREL), and authorisation to
the ongoing supervision case against Swedbank
reduce the own funds and eligible liabilities. The
involving conflicts of interest without taking any
proposal also introduces a new category of debt that
measures. Initiated in December 2015, the case was a
banks can use to fulfil the MREL.
result of private investments made by a few members of
the former Group Executive Committee. Since
The Resolution Act enables the Swedish National Debt
December 2015 Swedbank has taken measures to
Office to write down a banks liabilities in a crisis in order
improve the internal procedures on conflicts of interest.
to absorb losses or convert the liabilities to equity. To
ensure that they have sufficient capital and liabilities to
On 19 June Swedbank announced that it had entered
write down or convert, the banks will have to fulfil the
into a strategic partnership with Europes leading
MREL as of 1 January 2018. Swedbank currently meets
independent equity broker, Kepler Cheuvreux. The
this requirement.
partnership combines Swedbanks advisory skills and
Equity Capital Markets (ECM) relationships with Kepler
Senior unsecured bonds will initially be considered
Cheuvreuxs research expertise and distribution reach.
eligible liabilities. As of 2022, however, the banks
Through the partnership, the banks customers gain On 30 June Charlotte Elsnitz was appointed Head of the
access to one of the markets largest high-quality business area Baltic Banking and joined the Group
research footprints in the Nordics, covering over 900 Executive Committee. She was previously CFO for
European stocks, including 300 Nordic. Swedbank is Baltic Banking.
investing in a 6 per cent equity stake in Kepler
Cheuvreux and will have one seat on the board of Events after 30 June 2017
directors.
On 13 July the Swedish Competition Authority decided
to approve Swedbanks acquisition of PayEx. Swedbank
On 26 June Carina Strand was appointed Head of
now also awaits the SFSAs and the Norwegian
Group HR and a member of the Group Executive
Competition Authoritys approval before the acquisition
Committee. She will take on her new role at Swedbank
can be completed.
on 1 October and is currently Head of HR at IBM
Sweden.

Swedish Banking
Continued positive trend in mortgage volumes and lower resolution fund fee supported net interest income
Increased card commissions and asset management income strengthened net commission income
New version of the Internet bank and Mobile bank with expanded functions for mortgages and consumer loans
Income statement
SEKm 2017 2017 % 2016 % 2017 2016 %
Net gains and losses on financial items at fair value 105 97 8 100 5 202 174 16
Share of profit or loss of associates 208 144 44 271 -23 352 461 -24
Other income4) 129 828 -84 162 -20 957 294
Total income 6 115 6 463 -5 5 669 8 12 578 11 005 14
Staff costs 797 827 -4 799 0 1 624 1 635 -1
Variable staff costs 32 32 0 35 -9 64 58 10
Other expenses 1 371 1 332 3 1 363 1 2 703 2 680 1
Depreciation/amortisation 17 17 0 25 -32 34 50 -32
Total expenses 2 217 2 208 0 2 222 0 4 425 4 423 0
Profit before impairments 3 898 4 255 -8 3 447 13 8 153 6 582 24
Credit impairments 86 -3 -35 83 -48
Operating profit 3 812 4 258 -10 3 482 9 8 070 6 630 22
Tax expense 823 757 9 765 8 1 580 1 456 9
Profit for the period 2 989 3 501 -15 2 717 10 6 490 5 174 25
Swedbank AB 2 985 3 499 -15 2 713 10 6 484 5 167 25
Non-controlling interests 4 2 100 4 0 6 7 -14
Return on allocated equity, % 1) 21,4 25,4 20,7 23,4 20,0
Credit impairment ratio, % 2) 0,03 0,00 -0,01 0,01 -0,01
Cost/income ratio 0,36 0,34 0,39 0,35 0,40
Loans, SEKbn3) 1 125 1 116 1 1 096 3 1 125 1 096 3
Deposits, SEKbn3) 510 490 4 479 6 510 479 6
Full-time employees 4 091 4 148 -1 4 223 -3 4 091 4 223 -3
1) For information about average allocated equity see page 16 of the Fact book.
2) For more information about the credit impairment ratio see page 42 of the Fact book.
3) Excluding the Swedish National Debt Office and repurchase agreements.
4)Other income in the table above includes the items Net insurance and Other income from the Group income statement.
Result Corporate lending decreased by SEK 3bn to SEK 249bn

Second quarter 2017 compared with first quarter (252), of which SEK 105bn was loans to property
2017 management companies.
Profit decreased to SEK 2 985m (3 499), mainly due to
one-off income of SEK 680m from the sale of Hemnet in The market share, including corporate lending within
the first quarter. Large Corporates & Institutions, was 17.7 per cent in
May (18.4 per cent as of 31 December 2016).
Net interest income rose by 4 per cent to SEK 3 792m
(3 637). Increased mortgage volumes positively affected Household deposit volume increased by SEK 12bn in
net interest income. The margins in the mortgage the quarter, partly due to the tax refund in June.
portfolio were stable. Slightly higher margins in Swedbanks share of household deposits was 20.7 per
corporate lending also had a positive effect. Net interest cent as of 31 May 2017 (20.8 per cent as of
income from deposits were positively affected by 31 December 2016).
improved margins owing to higher market interest rates.
A lower resolution fund fee contributed positively. Corporate deposits within Swedish Banking increased
by SEK 8bn in the quarter. Swedbanks market share,
Household mortgage volume amounted to SEK 737bn including corporate lending within Large Corporates &
at the end of the quarter, an increase of SEK 11bn. As Institutions, was 19.0 per cent as of 31 May (20.3 per
of 31 May 2017 the share of the years net mortgage cent as of 31 December 2016).
growth was 17 per cent and the total market share was
24.6 per cent (24.8 per cent as of 31 December 2016). Net commission income rose by 7 per cent to
SEK 1 881m (1 757), mainly due to increased asset
management income resulting from higher equity prices

and net inflows to funds as well as increased card Business development
commissions. Swedish Banking introduced a new regional
organisation during the quarter with four regions instead
Other income decreased, mainly due to the sale of of five. The aim is to improve coordination and efficiency
Hemnet in the first quarter. to meet the changing needs of customers, more of
whom are banking through the banks digital channels
Total expenses were stable. Staff costs decreased and by phone through our customer service centre. The
slightly, while maintenance costs for premises increased service centre is now open 24 hours a day, 7 days a
in the quarter. week, for both private customers and businesses.
Credit impairments of SEK 86m were reported in the During the quarter we launched our new Internet bank
second quarter, compared with net recoveries of and Mobile bank, which have a new uniform design and
SEK 3m in the first quarter. The credit impairments are expanded functions for mortgages and consumer loans.
mainly due to a number of corporate customers in
various sectors. We have entered into a partnership with the personal
finances app Mina Tjnster (My Services), where
January-June 2017 compared with January-June users can easily manage their subscriptions and
2016 contracts. We have also launched a new social online
Profit increased to SEK 6 484m (5 167) thanks to investing platform for customers in collaboration with the
increased income. US fintech company Sprinklebit.
Net interest income increased by 10 per cent to SEK On the corporate side we have launched a campaign
7 429m (6 733), mainly through increased lending called Swedbank Rivstart (Flying Start), which includes
volumes and mortgage margins. This was offset by the a contest that runs until 31 August 2017. The purpose of
transfer of business volumes and financial results for a the contest is to find new entrepreneurs with strong
number of large corporate customers to Large business ideas and a desire to make society a little
Corporates & Institutions in the first quarter of 2017 and better. Ten winners will each receive SEK 250 000 in
a higher resolution fund fee compared with 2016. seed capital and support to develop and implement their
ideas.
Net commission income increased by 9 per cent to
SEK 3 638m (3 343). The increase was mainly due to
higher equity prices and net inflows to funds as well as
increased card commissions.
Other income increased, mainly due to the sale of

Christer Trgrdh
Fastighetsbyrns holding in Hemnet.
Head of Swedish Banking
Total expenses were stable.
Credit impairments of SEK 83m were reported during

the period, compared with net recoveries of SEK 48m in
the first half of 2016. The credit impairments are mainly
due to a number of corporate customers in various
sectors.
Sweden is Swedbanks largest market, with around 4 million private customers and more than 250 000 corporate
customers. This makes it Swedens largest bank by number of customers. Through our digital channels (Internet Bank
and Mobile Bank), the Telephone Bank and branches, and with the cooperation of savings banks and franchisees, we are
always available. Swedbank is part of the community. Branch managers have a strong mandate to act in their local
communities. The banks presence and engagement are expressed in various ways. A project called Young Jobs, which
has created several thousand trainee positions for young people, has played an important part in recent years. Swedbank
has 225 branches in Sweden.
Baltic Banking
Increased lending supported net interest income
Higher net commission income due to increased customer activity
FX effects positively impacted profit
Income statement
SEKm 2017 2017 % 2016 % 2017 2016 %
Net interest income 1 044 1 001 4 954 9 2 045 1 888 8
Net commission income 561 527 6 498 13 1 088 981 11
Net gains and losses on financial items at fair value 52 53 -2 53 -2 105 99 6
Other income4) 157 137 15 128 23 294 247 19
Total income 1 814 1 718 6 1 633 11 3 532 3 215 10
Staff costs 222 219 1 219 1 441 423 4
Variable staff costs 11 17 -35 15 -27 28 35 -20
Other expenses 400 373 7 356 12 773 692 12
Depreciation/amortisation 25 27 -7 28 -11 52 58 -10
Total expenses 658 636 3 618 6 1 294 1 208 7
Profit before impairments 1 156 1 082 7 1 015 14 2 238 2 007 12
Impairment of tangible assets 1 2 -50 0 3 0
Credit impairments 7 -66 50 -86 -59 8
Operating profit 1 148 1 146 0 965 19 2 294 1 999 15
Tax expense 155 159 -3 127 22 314 265 18
Profit for the period 993 987 1 838 18 1 980 1 734 14
Swedbank AB 993 987 1 838 18 1 980 1 734 14
1)
Return on allocated equity, % 19,7 19,5 16,8 19,5 17,1
Credit impairment ratio, % 2) 0,02 -0,19 0,16 -0,09 0,01
Loans, SEKbn3) 142 141 1 136 4 142 136 4
Deposits, SEKbn3) 169 168 1 159 6 169 159 6
Full-time employees 3 653 3 754 -3 3 918 -7 3 653 3 918 -7
Result
Net commission income rose by 5 per cent in local
Second quarter 2017 compared with first quarter
currency thanks to higher card commissions resulting
2017
from increased customer activity.
Profit increased slightly to SEK 993m (987). Higher
income was offset by credit impairments (compared with
Net gains and losses on financial items decreased by
net recoveries in the previous quarter) as well as higher
5 per cent in local currency. Other income increased by
expenses. FX effects raised profit by SEK 14m.
13 per cent in local currency thanks to higher income
from the insurance business.
Net interest income rose by 3 per cent in local currency
due to higher lending income. The margins in the
Total expenses rose by 2 per cent in local currency
mortgage portfolio continued to rise somewhat, while
mainly due to higher marketing expenses and staff
the margins in corporate lending were stable. FX effects
costs.
increased net interest income by SEK 15m.
Credit impairments amounted to SEK 7m, compared
Lending volumes rose by about 0.5 per cent in local
with net recoveries of SEK 66m in the first quarter.
currency. Household lending increased by 2 per cent,
Estonia and Latvia reported credit impairments, while
while corporate lending decreased. Total lending grew
Lithuania reported net recoveries. Underlying credit
in all three Baltic countries.
quality remained strong.
Deposit volumes were stable in local currency. Volumes
January-June 2017 compared with January-June
increased in Latvia but decreased in Estonia and
2016
Lithuania.
Profit increased to SEK 1 980m (1 734), mainly due to
higher income. FX effects raised profit by SEK 66m.

Net interest income rose by 5 per cent in local currency. Business development
The increase was mainly due to higher lending volumes. During the quarter we continued to improve functionality
A change in the internal allocation of fees related to the in our digital channels. For corporate customers we
resolution fund and deposit guarantee positively have further developed the Swedbank Gateway service
affected net interest income. FX effects raised net to make it easier for small businesses to link their
interest income by SEK 69m. enterprise system to their bank account. For private
customers we added push notifications in the Mobile
Lending volumes rose by 3 per cent in local currency. Bank in June.
The lending portfolio grew in all three countries, with the
strongest growth in mortgages, consumer loans and Smart ID, which was launched in the previous quarter,
private leasing. has performed strongly. The number of users rose to
174 000 in June, compared with 60 000 in March, and
Deposit volumes increased by 4 per cent in local the number of logins during the quarter amounted to
currency. Growth in household deposits was strong, 4.6 million. With Smart ID customers can identify
while corporate deposits decreased. themselves, sign contracts and confirm payments.
Net commission income rose by 7 per cent in local According to an independent survey by Kantar Emor in
currency thanks to higher income from asset May, Swedbank ranks among the ten most popular
management, payment processing in Estonia and brands in all three Baltic countries. In Latvia it is the
Latvia, and the service packages introduced in Lithuania most popular brand for the third consecutive year. In
in the fourth quarter of 2016. Estonia Swedbank came third and in Lithuania eighth.
Net gains and losses on financial items increased On 30 June Charlotte Elsnitz was appointed Head of the
slightly in local currency, mainly due to higher income business area Baltic Banking and joined the Group
from FX trading. Other income rose by 15 per cent in Executive Committee. She succeeded Priit Perens, who
local currency thanks to higher income from the has been given a senior position in Group Credit.
insurance business. Charlotte was previously CFO for Baltic Banking.
Total expenses rose by 3 per cent in local currency. The

increase is mainly due to higher staff costs and because
the first half of 2016 was positively affected by a VAT
refund in Lithuania. Expenses for premises and
depreciation decreased.
Net recoveries amounted to SEK 59m, compared with

Priit Perens / Charlotte Elsnitz
credit impairments of SEK 8m in the first half of 2016.
Head of Baltic Banking
Swedbank is the largest bank by number of customers in Estonia, Latvia and Lithuania, with around 3.2 million private
customers and over 300 000 corporate customers. According to surveys, Swedbank is also the most respected company
in the financial sector. Through its digital channels (Telephone Bank, Internet Bank and Mobile Bank) and branches, the
bank is always available. Swedbank is part of the local community. Its local social engagement is expressed in many
ways, with initiatives to promote education, entrepreneurship and social welfare. Swedbank has 35 branches in Estonia,
36 in Latvia and 65 in Lithuania.
Large Corporates & Institutions
Higher income due to increased customer FX trading activity and lower resolution fund fee
Credit impairment provisions for oil related commitments
Swedbank has entered into a strategic partnership with Europes leading independent equity broker, Kepler
Cheuvreux
Income statement
SEKm 2017 2017 % 2016 % 2017 2016 %
Net commission income 587 580 1 605 -3 1 167 1 101 6
Net gains and losses on financial items at fair value 515 452 14 552 -7 967 955 1
Other income4) 21 28 -25 21 0 49 46 7
Total income 2 015 1 883 7 2 003 1 3 898 3 693 6
Staff costs 380 382 -1 357 6 762 713 7
Variable staff costs 42 72 -42 58 -28 114 110 4
Other expenses 445 453 -2 430 3 898 815 10
Depreciation/amortisation 17 16 6 15 13 33 29 14
Total expenses 884 923 -4 860 3 1 807 1 667 8
Profit before impairments 1 131 960 18 1 143 -1 2 091 2 026 3
Impairment of tangible assets 0 0 1 0 7
Credit impairments 307 408 -25 545 -44 715 642 11
Operating profit 824 552 49 597 38 1 376 1 377 0
Tax expense 177 104 70 103 72 281 165 70
Profit for the period 647 448 44 494 31 1 095 1 212 -10
Swedbank AB 647 448 44 494 31 1 095 1 212 -10
1)
Return on allocated equity, % 11,4 9,0 10,1 10,3 12,6
Credit impairment ratio, % 2) 0,43 0,67 0,66 0,59 0,51
Loans, SEKbn3) 203 200 2 188 8 203 188 8
Deposits, SEKbn3) 126 146 -14 126 0 126 126 0
Full-time employees 1 266 1 258 1 1 255 1 1 266 1 255 1
Result
valuation adjustments of derivative exposures also
contributed positively.
2017
Profit increased to SEK 647m (448) due to increased
Total expenses decreased by 4 per cent, mainly due to
income and lower credit impairments.
lower variable staff costs.
Net interest income increased by 8 per cent to
Credit impairments amounted to SEK 307m (408) in the
SEK 892m (823), mainly due to a lower resolution fund
second quarter, corresponding to a credit impairment
fee. Net interest income from deposits rose due to
ratio of 0.43 per cent. The credit impairments are
increased volumes from financial institutions, which are
attributable to provisions for oil related commitments in
charged for negative interest rates. Swedbank still
Norway.
charges only financial institutions for deposits in a few
currencies.
2016
Net commission income increased by 1 per cent to SEK
Profit decreased to SEK 1 095m (1 212). Increased
587m (580). The increase is mainly related to increased
income was offset by increased expenses, increased
card income.
credit impairments and higher tax.
Net gains and losses on financial items at fair value
Net interest income increased by 8 per cent to SEK
increased by 14 per cent to SEK 515m (452). Higher
1 715m (1 591). Net interest income from deposits rose
income from FX trading contributed positively. Income
due to increased volumes attributable to the transfer of
from equity trading decreased, partly due to low activity
a number of corporate customers from Swedish
in the market ahead of the French election. Favourable
Banking. Net interest income related to deposits
increased due to increased volumes from financial

institutions, which are charged for negative interest Business development
rates. A higher resolution fund fee had a negative effect. Swedbank entered into a strategic partnership with
Europes leading independent equity broker, Kepler
Net commission income increased by 6 per cent to Cheuvreux. Together we are creating one of the Nordic
SEK 1 167m (1 101). The increase mainly relates to regions strongest brokerages in advice, research and
increased loan guarantees and guarantee commissions equity trading. Our analysts will eventually broaden
as well as increased custody fees. In Corporate Finance coverage to around 900 European stocks, some 300 of
income decreased for equity issues, which was partly them Nordic. Our corporate clients also gain access to a
compensated by higher income from bond issues. network of more than 1 200 institutional investors in
Europe and the US.
increased by 1 per cent to SEK 967m (955). Low Swedbanks Norwegian business has been very active
volatility in the financial markets resulted in lower and completed several major deals during the quarter.
income from equity and FX trading. The decrease was We continued to recruit key employees to replace those
compensated by positive valuation adjustments of who left the banks Norwegian business in February and
derivative exposures. to accommodate the higher level of activity.
Total expenses increased by 8 per cent compared with As part of the new framework agreement with the
the first half of 2016, mainly due to higher costs for staff, Swedish National Debt Office on payment solutions for
IT and premises. Swedish government agencies and enterprises,
Swedbank, in tight competition, has become the leading
Credit impairments amounted to SEK 715m compared supplier with a market share of about 90 per cent of all
with SEK 642m in the first half of 2016. The impairments transactions. The agreement covers all 235 state
were mainly attributable to increased provisions for agencies and enterprises and consolidates Swedbanks
exposures in oil related sectors. The share of impaired position as the leader in the Swedish payments market.
loans was 1.6 per cent.
We have expanded our FX trading hours and now serve
Tax increased, since the first quarter of 2016 included a our clients during US trading hours as well. This autumn
positive one-off tax effect. we expect to offer FX trading 24 hours a day as part of
an effort to become the main bank for more of our major
corporate clients.
Elisabeth Beskow & Ola Laurin

Co-Heads of Large Corporates & Institutions
Large Corporates & Institutions is responsible for Swedbanks offering to customers with revenues above SEK 2 billion
and those whose needs are considered complex due to multinational operations or a need for advanced financing
solutions. They are also responsible for developing corporate and capital market products for other parts of the bank and
the Swedish savings banks. Large Corporates & Institutions works closely with customers, who receive advice on
decisions that create sustainable profits and growth. Large Corporates & Institutions is represented in Sweden, Norway,
Estonia, Latvia, Lithuania, Finland, Luxembourg, China, the US and South Africa.
Group Functions & Other
Income statement
SEKm 2017 2017 % 2016 % 2017 2016 %
Net interest income 363 512 -29 360 1 875 801 9
Net commission income -39 -54 -28 -36 8 -93 3
Net gains and losses on financial items at fair value -106 -114 -7 171 -220 49
Share of profit or loss of associates -4 31 1 658 27 1 659 -98
Other income1) 298 262 14 276 8 560 483 16
Total income 512 637 -20 2 429 -79 1 149 2 995 -62
Staff costs 870 848 3 779 12 1 718 1 557 10
Variable staff costs 32 51 -37 53 -40 83 90 -8
Other expenses -714 -688 4 -735 -3 -1 402 -1 377 -2
Total expenses 270 286 -6 184 47 556 442 26
Profit before impairments 242 351 -31 2 245 -89 593 2 553 -77
Impairment of tangible assets 0 0 0 0 2
Credit impairments 0 0 -22 0 -29
Operating profit 242 351 -31 2 267 -89 593 2 580 -77
Tax expense 121 161 -25 42 282 112
Profit for the period 121 190 -36 2 225 -95 311 2 468 -87
Swedbank AB 121 190 -36 2 225 -95 311 2 468 -87
Full-time employees 5 176 4 907 5 4 651 11 5 176 4 651 11
1)
Other income in the table above includes the items Net insurance and Other income from the Group income statement.
Net interest income and net gains and losses on financial items mainly stem from Group Treasury. Other income mainly refers to income from the savings
banks. Expenses mainly relate to Group Lending & Payments, Group Savings and Group Staffs and are allocated to a large extent.

2016
2017
Profit decreased to SEK 311m (2 468). Group
Profit decreased to SEK 121m (190) in the quarter.
Treasurys profit decreased to SEK 378m (2 435).
Profit within Group Treasury decreased to SEK 148m
(230).
Net interest income rose to SEK 875m (801). Group
Treasurys net interest income increased to SEK 909m
Net interest income decreased to SEK 363m (512). Net
(840) due to more favourable terms for currency swaps
interest income within Group Treasury decreased to
in early 2017.
SEK 395m (514), mainly because the first quarter was
positively affected by covered bond repurchases.
decreased to SEK -220m (49). Net gains and losses on
Net gains and losses on financial items improved
financial items within Group Treasury decreased to
slightly to SEK -106m (-114). Net gains and losses on
SEK -218m (56). The first half of 2016 was positively
financial items within Group Treasury improved to
affected by a gain of SEK 457m on the sale of Visa
SEK -100m (-118) as a result of lower covered bond
Europe. Excluding the Visa effect net gains and losses
repurchases in the quarter. In addition, the first quarter
on financial items increased within Group Treasury,
was positively affected by year-end related volatility in
mainly due to year-end related volatility in the currency
the currency swap market.
swap market in early 2017.
Expenses decreased somewhat to SEK 270m (286).
The share of the profit or loss of associates decreased
to SEK 27m (1 659), which is due to the Visa sale in the
first half of 2016.
Expenses increased to SEK 556m (442), mainly due to

higher staff and IT costs.
Group Functions & Other consists of central business support units and the product areas Group Lending & Payments
and Group Savings. The central units serve as strategic and administrative support and comprise Accounting & Finance,
Communication, Risk, IT, Compliance, Public Affairs, HR and Legal. Group Treasury is responsible for the banks funding,
liquidity and capital planning. Group Treasury sets the prices on all internal deposit and loan flows in the Group through
internal interest rates, where the most important parameters are maturity, interest fixing period, currency and need for
liquidity reserves.
Eliminations
Income statement
SEKm 2017 2017 % 2016 % 2017 2016 %
Net interest income -1 -2 -50 0 -3 0
Net commission income 10 12 -17 5 100 22 12 83
Net gains and losses on financial items at fair value 1 -2 1 0 -1 0
Other income1) -73 -58 26 -50 -46 -131 -86 -52
Total income -63 -50 26 -44 43 -113 -74 -53
Staff costs 0 0 -1 0 0
Variable staff costs 0 0 0 0 0
Other expenses -63 -50 26 -43 47 -113 -74 -53
Depreciation/amortisation 0 0 0 0 0
Total expenses -63 -50 26 -44 43 -113 -74 -53
1)
Group eliminations mainly consist of eliminations of internal transactions between Group Functions and the other business segments.

Group Page

Notes
Note 1 Accounting policies 26
Note 2 Critical accounting estimates 26
Note 3 Changes in the Group structure 26
Note 4 Operating segments (business areas) 27
Note 5 Net interest income 29
Note 6 Net commission income 30
Note 7 Net gains and losses on financial items at fair value 31
Note 8 Other expenses 32
Note 9 Credit impairments 32
Note 10 Loans 33
Note 11 Impaired loans etc. 34
Note 12 Assets taken over for protection of claims and cancelled leases 34
Note 13 Credit exposures 34
Note 14 Intangible assets 35
Note 15 Amounts owed to credit institutions 35
Note 16 Deposits and borrowings from the public 35
Note 17 Debt securities in issue and subordinated liabilities 36
Note 18 Derivatives 36
Note 19 Financial instruments carried at fair value 37
Note 20 Pledged collateral 39
Note 21 Offsetting financial assets and liabilities 39
Note 22 Capital adequacy consolidated situation 40
Note 23 Internal capital requirement 43
Note 24 Risks and uncertainties 43
Note 25 Related-party transactions 44
Note 26 Swedbanks share 44
Note 27 Effects of changed reporting of the compensation to the Savings banks for
mortgage loans 45
Parent company
Capital adequacy 50
More detailed information including definitions can be found in Swedbanks Fact book, www.swedbank.com/ir, under
Financial information and publications.

Income statement, condensed
Group Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2017 2017 % 2016 % 2017 2016 %
Interest income 8 688 8 334 4 7 714 13 17 022 15 983 7

Negative yield on financial assets -592 -424 40 0 -1 016 0
Interest income, including negative yield on financial assets 8 096 7 910 2 7 714 5 16 006 15 983 0
Interest expenses -2 208 -2 087 6 -2 162 2 -4 295 -4 970 -14
Negative yield on financial liabilities 202 148 36 0 350 0
Interest expenses, including negative yield on financial
liabilities -2 006 -1 939 3 -2 162 -7 -3 945 -4 970 -21
Net interest income (note 5) 6 090 5 971 2 5 552 10 12 061 11 013 10
Commission income 4 317 4 036 7 4 011 8 8 353 7 694 9
Commission expenses -1 317 -1 214 8 -1 216 8 -2 531 -2 254 12
Net commission income (note 6) 3 000 2 822 6 2 795 7 5 822 5 440 7
Net gains and losses on financial items at fair value (note 7) 567 486 17 877 -35 1 053 1 277 -18
Insurance premiums 671 640 5 549 22 1 311 1 054 24
Insurance provisions -464 -444 5 -346 34 -908 -694 31
Net insurance 207 196 6 203 2 403 360 12
Share of profit or loss of associates 204 175 17 1 929 -89 379 2 120 -82
Other income 325 1 001 -68 334 -3 1 326 624
Total income 10 393 10 651 -2 11 690 -11 21 044 20 834 1
Staff costs 2 386 2 448 -3 2 314 3 4 834 4 621 5
Other expenses (note 8) 1 439 1 420 1 1 371 5 2 859 2 736 4
Total expenses 3 966 4 003 -1 3 840 3 7 969 7 666 4
Profit before impairments 6 427 6 648 -3 7 850 -18 13 075 13 168 -1
Impairment of intangible assets (note 14) 0 0 0 0 0
Impairment of tangible assets 1 2 -50 1 0 3 9 -67
Credit impairments (note 9) 400 339 18 538 -26 739 573 29
Operating profit 6 026 6 307 -4 7 311 -18 12 333 12 586 -2
Tax expense 1 276 1 181 8 1 037 23 2 457 1 998 23
Profit for the period attributable to the
shareholders of Swedbank AB 4 746 5 124 -7 6 270 -24 9 870 10 581 -7
Non-controlling interests 4 2 100 4 0 6 7 -14
SEK
Earnings per share, SEK 4,26 4,61 5,65 8,87 9,54
after dilution 4,24 4,59 5,62 8,83 9,49

Statement of comprehensive income, condensed
SEKm 2017 2017 % 2016 % 2017 2016 %
Profit for the period reported via income statement 4 750 5 126 -7 6 274 -24 9 876 10 588 -7
Items that will not be reclassified to the income statement
Remeasurements of defined benefit pension plans -511 -604 -15 -1 762 -71 -1 115 -4 117 -73
Share related to associates -16 -20 -20 -58 -72 -36 -118 -69
Income tax 116 137 -15 401 -71 253 932 -73
Total -411 -487 -16 -1 419 -71 -898 -3 303 -73
Items that may be reclassified to the income statement
Exchange differences, foreign operations
Gains/losses arising during the period 298 -87 853 -65 211 1 128 -81
Hedging of net investments in foreign operations:
Gains/losses arising during the period -176 81 -666 -74 -95 -908 -90
Cash flow hedges:
Gains/losses arising during the period 0 -113 -22 -113 59
Reclassification adjustments to income statement,
net interest income 4 3 33 5 -20 7 9 -22
Share of other comprehensive income of associates -42 -14 44 -56 74
Income tax
Income tax 40 7 152 -74 47 188 -75
Reclassification adjustments to income statement, tax -1 -1 0 -1 -20 -2 -2 -22
Total 123 -124 365 -66 -1 548
Other comprehensive income for the period, net of tax -288 -611 -53 -1 054 -73 -899 -2 755 -67
Total comprehensive income for the period 4 462 4 515 -1 5 220 -15 8 977 7 833 15
Total comprehensive income attributable to the

shareholders of Swedbank AB 4 459 4 512 -1 5 216 -15 8 971 7 826 15
Non-controlling interests 3 3 0 4 -25 6 7 -14
For January-June 2017 an expense of SEK 898m (3 For January-June 2017 an exchange difference of SEK
303) was recognised in other comprehensive income 211m (1 128) was recognised for the Group's foreign
after tax, including remeasurements of defined benefit net investments in subsidiaries. In addition, an
pension plans in associates. The 2017 expense arose exchange rate difference of SEK -56m (73) for the
primarily because market interest rates fell from year Group's foreign net investments in associates is
end. As per June 30 the discount rate, which is used to included in Share related to associates. The gain related
calculate the closing pension obligation, was 2.57 per to subsidiaries mainly arose because the Swedish krona
cent, compared with 2.79 per cent at year end. The weakened during the year against the euro. The total
markets future inflation expectations were unchanged gain of SEK 155m is not taxable. Since the large part of
compared with the beginning of the year. The inflation the Group's foreign net investments is hedged against
assumption was 1.84 per cent. Actuarial losses based currency risk, a loss of SEK 95m before tax arose for
on experience by SEK 363m included. The fair value of the hedging instruments, compared with a year-earlier
plan assets increased during the first half year 2017 by loss of SEK 908m.
SEK 81m. As a whole, the obligation for defined benefit
pension plans exceeded the fair value of plan assets by The revaluation of defined benefit pension plans and
SEK 2 374m. translation of net investments in foreign operations can
be volatile in certain periods due to movements in the
discount rate, inflation and exchange rates.

Balance sheet, condensed
Group 30 Jun 31 Dec 30 Jun
SEKm 2017 2016 SEKm % 2016 %
Assets
Cash and balance with central banks 432 540 121 347 311 193 356 146 21
Loans to credit institutions (note 10) 38 624 32 197 6 427 20 129 696 -70
Loans to the public (note 10) 1 521 973 1 507 247 14 726 1 1 511 090 1
Value change of interest hedged item in portfolio hedge 1 007 1 482 -475 -32 2 478 -59
Interest-bearing securities 127 112 182 072 -54 960 -30 160 236 -21
Financial assets for which customers bear the investment risk 173 051 160 114 12 937 8 146 885 18
Shares and participating interests 12 501 23 897 -11 396 -48 19 432 -36
Investments in associates 7 211 7 319 -108 -1 6 975 3
Derivatives (note 18) 76 372 87 811 -11 439 -13 99 314 -23
Intangible fixed assets (note 14) 14 795 14 279 516 4 14 060 5
Tangible assets 1 867 1 864 3 0 1 929 -3
Current tax assets 1 326 1 796 -470 -26 3 139 -58
Deferred tax assets 155 160 -5 -3 180 -14
Other assets 12 408 8 067 4 341 54 19 081 -35
Prepaid expenses and accrued income 5 179 4 551 628 14 5 373 -4
Total assets 2 426 121 2 154 203 271 918 13 2 476 014 -2
Liabilities and equity
Amounts owed to credit institutions (note 15) 154 974 71 831 83 143 166 872 -7
Deposits and borrowings from the public (note 16) 909 223 792 924 116 299 15 955 794 -5
Financial liabilities for which customers bear the investment risk 173 859 161 051 12 808 8 147 595 18
Debt securities in issue (note 17) 891 296 841 673 49 623 6 915 707 -3
Short positions, securities 21 269 11 614 9 655 83 16 757 27
Derivatives (note 18) 70 813 85 589 -14 776 -17 82 900 -15
Current tax liabilities 1 303 992 311 31 810 61
Deferred tax liabilities 2 045 2 438 -393 -16 2 142 -5
Pension provisions 2 374 1 406 968 69 2 576 -8
Insurance provisions 1 872 1 820 52 3 1 809 3
Other liabilities and provisions 30 934 14 989 15 945 28 672 8
Accrued expenses and prepaid income 9 459 10 917 -1 458 -13 12 206 -23
Subordinated liabilities (note 17) 32 522 27 254 5 268 19 22 702 43
Total liabilities 2 301 943 2 024 498 277 445 14 2 356 542 -2
Equity
Non-controlling interests 192 190 2 1 181 6
Equity attributable to shareholders of the parent company 123 986 129 515 -5 529 -4 119 291 4
Total equity 124 178 129 705 -5 527 -4 119 472 4
Total liabilities and equity 2 426 121 2 154 203 271 918 13 2 476 014 -2
Balance sheet analysis

Total assets have increased by SEK 272bn from 1 of which SEK 18bn was mortgages. Lending to credit
January 2017. Assets increased mainly due to higher institutions increased by SEK 6bn at the same time that
cash and balances with central banks, which rose by amounts owed to them increased by SEK 83bn.
SEK 311bn. The increases are mainly attributable to Balance sheet items related to credit institutions
higher deposits with the US Federal Reserve and fluctuate over time depending on repos, among other
central banks in the euro system. Deposits and things. The market value of derivatives decreased on
borrowings from the public, excluding the National Debt both the asset and liability side, mainly due to large
Office and repos rose by a total of SEK 106bn mainly movements in interest rates and currencies. The
volumes from US money market funds, which increased increase in securities in issue was mainly a result of
by SEK 82bn. Interest-bearing securities, Treasury bills, higher issued volumes compared with repaid short-term
decreased by SEK 55bn, and have been replaced with securities funding of SEK 64bn. Long-term securities
balances with central banks. Lending to the public, funding increased by SEK 54bn as an effect of higher
excluding the National Debt Office and repos, increased issued volumes compared with repaid funding.
by SEK 17bn. The increase primarily relates to Sweden

Statement of changes in equity, condensed
Group Shareholders' Non-controlling Total
SEKm equity interests equity
Other Exchange Hedging of net

contri- differences, investments in Cash
Share buted subsidiaries foreign flow Retained
capital equity1) and associates operations hedges earnings Total
January-June 2016
Opening balance 1 January 2016 24 904 17 275 836 -704 17 80 835 123 163 179 123 342
Dividends 0 0 0 0 0 -11 880 -11 880 -5 -11 885
Share based payments to employees 0 0 0 0 0 208 208 0 208
Deferred tax related to share based payments to
employees 0 0 0 0 0 -61 -61 0 -61
Current tax related to share based payments to
employees 0 0 0 0 0 35 35 0 35
Total comprehensive income for the period 0 0 1 201 -707 54 7 278 7 826 7 7 833
of which reported through profit or loss 0 0 0 0 0 10 581 10 581 7 10 588
of which reported through other comprehensive
income 0 0 1 201 -707 54 -3 303 -2 755 0 -2 755
Closing balance 30 June 2016 24 904 17 275 2 037 -1 411 71 76 415 119 291 181 119 472
January-December 2016
Opening balance 1 January 2016 24 904 17 275 836 -704 17 80 835 123 163 179 123 342
Dividends 0 0 0 0 0 -11 880 -11 880 -5 -11 885
employees 0 0 0 0 0 -15 -15 0 -15
Current tax related to share based payments 0 0 0 0 0 34 34 0 34
Contribution 0 0 0 0 0 0 0 3 3
Total comprehensive income for the period 0 0 1 765 -1 044 60 17 054 17 835 13 17 848
income 0 0 1 765 -1 044 60 -2 485 -1 704 0 -1 704
Closing balance 31 December 2016 24 904 17 275 2 601 -1 748 77 86 406 129 515 190 129 705
January-June 2017
Opening balance 1 January 2017 24 904 17 275 2 601 -1 748 77 86 406 129 515 190 129 705
Dividends 0 0 0 0 0 -14 695 -14 695 -4 -14 699
employees 0 0 0 0 0 -31 -31 0 -31
employees 0 0 0 0 0 38 38 0 38
Total comprehensive income for the period 0 0 155 -74 -82 8 972 8 971 6 8 977
income 0 0 155 -74 -82 -898 -899 0 -899
Closing balance 30 June 2017 24 904 17 275 2 756 -1 822 -5 80 878 123 986 192 124 178
1)
*Other
Othercontributed
contributedequity consists
equity mainly
consists of share
mainly premiums.
of share premiums.

Cash flow statement, condensed
Group Jan-Jun Full-year Jan-Jun
SEKm 2017 2016 2016
Operating activities
Operating profit 12 333 23 761 12 586
Adjustments for non-cash items in operating activities -2 780 -2 174 -17
Taxes paid -1 841 -3 583 -3 479
Increase/decrease in loans to credit institutions -6 413 54 341 -43 163
Increase/decrease in loans to the public -15 153 -90 692 -94 526
Increase/decrease in holdings of securities for trading 66 160 -29 220 -3 252
Increase/decrease in deposits and borrowings from the public including retail bonds 115 237 38 245 203 096
Increase/decrease in amounts owed to credit institutions 83 066 -79 929 15 624
Increase/decrease in other assets 8 090 7 829 -16 034
Increase/decrease in other liabilities -9 988 27 777 32 404
Cash flow from operating activities 248 711 -53 645 103 239
Investing activities
Business combinations 0 -19 0
Business disposals 6 20 0
Acquisitions of and contributions to associates 0 -7 0
Acquisitions of other fixed assets and strategic financial assets -384 -451 252
Disposals/maturity of other fixed assets and strategic financial assets 936 763 31
Cash flow from investing activities 558 306 283
Financing activities
Issuance of interest-bearing securities 114 864 160 474 104 295
Redemption of interest-bearing securities -108 521 -147 393 -85 169
Issuance of commercial paper etc. 542 845 816 259 463 413
Redemption of commercial paper etc. -472 926 -831 404 -405 793
Dividends paid -14 699 -11 885 -11 885
Cash flow from financing activities 61 563 -13 949 64 861
Cash flow for the period 310 832 -67 288 168 383
Cash and cash equivalents at the beginning of the period 121 347 186 312 186 312
Exchange rate differences on cash and cash equivalents 361 2 323 1 451
Cash and cash equivalents at end of the period 432 540 121 347 356 146
During the first quarter of 2017, the associated company

Hemnet AB was sold. Swedbank received a payment of
SEK 649m. The capital gain was SEK 680 million.

Note 1 Accounting policies
The interim report has been prepared in accordance services and on-going administrative services for
with IAS 34, Interim Financial Reporting. The mortgages. Brokerage services costs for loans will be
condensed consolidated financial statements have also added to the loans acquisitions value and will be part of
been prepared in accordance with the the loans effective interest. It causes that the
recommendations and statements of the Financial transaction cost reports as a reduction of the interest
Reporting Council, the Annual Accounts Act for Credit income during the loans term. Costs for administrative
Institutions and Securities Companies and the directives services will be reported as an expense. Restatement of
of the SFSA. the historical comparative figures has been made
according the new agreement to better illustrate trends
The Parent Company report has been prepared in between periods. The change affects the interest
accordance with the Annual Accounts Act for Credit income and expenses, but not the total result.
Institutions and Securities Companies, the directives of Change in presentation of revenues and expenses will
the SFSA and recommendation RFR 2 of the Financial be presented in the note 27.
Reporting Council.
The accounting policies applied in the interim report Other IFRS changes
conform to those applied in the Annual Report for 2016,
which was prepared in accordance with International IFRS 17, Insurance Contracts, was issued in May 2017
Financial Reporting Standards as adopted by the and is applicable from 1 January 2021. The standard
European Union and interpretations thereof. There have has not yet been approved by the EU. The new
been no significant changes to the Groups accounting standard establishes principles for recognition,
policies set out in the 2016 Annual Report, except for presentation, measurement and disclosure of insurance
the changes as set out below. contracts issued. Insurance contracts in scope will be
measured at current value, based on the current
estimates of amounts expected to be collected from
Changed reporting of the compensation to the premiums and pay out for claims, benefits and
Savings banks for mortgage loans expenses plus expected profit for providing insurance
coverage. The impacts on the Groups financial reports
Swedbank and the Savings banks, as of 1 January are still being assessed by the Group.
2017, changed their bilateral contract regarding how the
compensation will be divided between brokerage
Note 2 Critical accounting estimates

Presentation of consolidated financial statements in goodwill, deferred taxes and defined benefit pension
conformity with IFRS requires the executive provisions. There have been no significant changes to
management to make judgments and estimates that the basis upon which the critical accounting policies and
affect the recognised amounts for assets, liabilities and judgments have been determined compared with 31
disclosures of contingent assets and liabilities as of the December 2016.
closing day as well as the recognised income and
expenses during the report period. The executive
management continuously evaluates these judgments
and estimates, including assessing control over
investment funds, the fair value of financial instruments,
provisions for credit impairments, impairment testing of
Note 3 Changes in the Group structure

No significant changes to the Group structure
occurred during the first half year 2017.

Note 4 Operating segments (business areas)
Jan - Ju n L arg e G rou p
2017 S wed ish Baltic Corp orates & F u n ction s
S E Km Ban kin g Ban kin g In stitu tion s & O th er E lim in ation s G rou p
Income statement
Net interest income 7 429 2 045 1 715 875 -3 12 061
Net commission income 3 638 1 088 1 167 -93 22 5 822
Net gains and losses on financial items at fair value 202 105 967 -220 -1 1 053
Share of profit or loss of associates 352 0 0 27 0 379
Other income1 957 294 49 560 -131 1 729
T otal in com e 12 578 3 532 3 898 1 149 - 113 21 044
of which internal income 50 0 21 354 -425 0
Staff costs 1 624 441 762 1 718 0 4 545
Variable staff costs 64 28 114 83 0 289
Other expenses 2 703 773 898 -1 402 -113 2 859
Depreciation/amortisation 34 52 33 157 0 276
T otal exp en ses 4 425 1 294 1 807 556 - 113 7 969
P rof it b ef ore im p airm en ts 8 153 2 238 2 091 593 0 13 075
Impairment of tangible assets 0 3 0 0 0 3
Credit impairments 83 -59 715 0 0 739
O p eratin g p rof it 8 070 2 294 1 376 593 0 12 333
T ax expense 1 580 314 281 282 0 2 457
Profit for the period 6 490 1 980 1 095 311 0 9 876
P rof it f or th e p eriod attrib u tab le to th e
sh areh old ers of S wed b an k AB 6 484 1 980 1 095 311 0 9 870
Balance sheet, SEKbn

Cash and balances with central banks 0 3 8 422 0 433
Loans to credit institutions 5 0 57 196 -219 39
Loans to the public 1 125 143 253 1 0 1 522
Bonds and other interest-bearing securities 0 1 44 85 -3 127
Financial assets for which customers bear inv. risk 169 4 0 0 0 173
Investments in associates 4 0 0 3 0 7
Derivatives 0 0 86 26 -36 76
T otal tangible and intangible assets 2 11 1 3 0 17
Other assets 7 32 25 462 -494 32
T otal assets 1 312 194 474 1 198 - 752 2 426
Amounts owed to credit institutions 27 0 172 169 -213 155
Deposits and borrowings from the public 515 170 148 82 -6 909
Debt securities
Financial in issue
liabilities for which customers bear inv. 0 0 18 879 -6 891
risk 170 4 0 0 0 174
Derivatives 0 0 82 25 -36 71
Other liabilities 544 0 31 -15 -491 69
Subordinated liabilities 0 0 0 33 0 33
T otal liab ilities 1 256 174 451 1 173 - 752 2 302
Allocated equity 56 20 23 25 0 124
T otal liab ilities an d eq u ity 1 312 194 474 1 198 - 752 2 426
Key figures
Return on allocated equity, % 23,4 19,5 10,3 2,1 0,0 15,7
Cost/income ratio 0,35 0,37 0,46 0,48 0,00 0,38
Credit impairment ratio, % 2 0,01 -0,09 0,59 0,00 0,00 0,10
Loan/deposit ratio, % 221 84 160 0 0 166
Loans, SEKbn 3 1 125 142 203 0 0 1 470
Deposits, SEKbn 3 510 169 126 83 0 888
Risk exposure amount, SEKbn 167 79 135 26 0 407
Full-time employees 4 091 3 653 1 266 5 176 0 14 186
Allocated equity, average, SEKbn 55 20 21 29 0 126
1)
2)
For more information about the Credit impairment ratio see page 42 of the Fact book.
3)
Excluding the Swedish National Debt Office and repurchase agreements.

Jan - Ju n L arg e G rou p
2016 S wed ish Baltic Corp orates & F u n ction s
S E Km Ban kin g Ban kin g In stitu tion s & O th er E lim in ation s G rou p
Income statement
Net commission income 3 343 981 1 101 3 12 5 440
Net gains and losses on financial items at fair value 174 99 955 49 0 1 277
Share of profit or loss of associates 461 0 0 1 659 0 2 120
Other income1 294 247 46 483 -86 984
T otal in com e 11 005 3 215 3 693 2 995 - 74 20 834
of which internal income 54 0 34 322 -410 0
Staff costs 1 635 423 713 1 557 0 4 328
Variable staff costs 58 35 110 90 0 293
Other expenses 2 680 692 815 -1 377 -74 2 736
Depreciation/amortisation 50 58 29 172 0 309
T otal exp en ses 4 423 1 208 1 667 442 - 74 7 666
P rof it b ef ore im p airm en ts 6 582 2 007 2 026 2 553 0 13 168
Impairment of tangible assets 0 0 7 2 0 9
Credit impairments -48 8 642 -29 0 573
O p eratin g p rof it 6 630 1 999 1 377 2 580 0 12 586
T ax expense 1 456 265 165 112 0 1 998
Profit for the period 5 174 1 734 1 212 2 468 0 10 588
P rof it f or th e p eriod attrib u tab le to th e
sh areh old ers of S wed b an k AB 5 167 1 734 1 212 2 468 0 10 581
Balance sheet, SEKbn

Cash and balances with central banks 0 3 4 349 0 356
Loans to credit institutions 39 0 70 229 -208 130
Loans to the public 1 097 136 273 5 0 1 511
Bonds and other interest-bearing securities 0 1 67 97 -5 160
Financial assets for which customers bear inv. risk 144 3 0 0 0 147
Investments in associates 3 0 0 4 0 7
Derivatives 0 0 107 51 -59 99
T otal tangible and intangible assets 2 11 0 3 0 16
Other assets 5 27 39 534 -555 50
T otal assets 1 290 181 560 1 272 - 827 2 476
Amounts owed to credit institutions 59 0 200 111 -203 167
Deposits and borrowings from the public 484 159 141 177 -5 956
Debt securities
Financial in issue
liabilities for which customers bear inv. 0 0 18 906 -8 916
risk 145 3 0 0 0 148
Derivatives 0 0 110 32 -59 83
Other liabilities 546 0 70 0 -552 64
Subordinated liabilities 0 0 0 23 0 23
T otal liab ilities 1 234 162 539 1 249 - 827 2 357
Allocated equity 56 19 21 23 0 119
T otal liab ilities an d eq u ity 1 290 181 560 1 272 - 827 2 476
Key figures
Return on allocated equity, % 20,0 17,1 12,6 16,2 0,0 17,4
Cost/income ratio 0,40 0,38 0,45 0,15 0,00 0,37
Credit impairment ratio, % 2 -0,01 0,01 0,51 -0,27 0,00 0,08

Loan/deposit ratio, % 229 85 149 0 0 152
Loans, SEKbn 3 1 096 136 188 0 0 1 420

Deposits, SEKbn 3 479 159 126 172 0 936
Risk exposure amount, SEKbn 189 78 124 22 0 413
Full-time employees 4 223 3 918 1 255 4 651 0 14 047
Allocated equity, average, SEKbn 52 20 19 30 0 122
1)
2)
For more information about the Credit impairment ratio see page 42 of the Fact book.
3)
Excluding the Swedish National Debt Office and repurchase agreements.

Operating segments accounting policies
Operating segment reporting is based on The Groups equity attributable to shareholders
Swedbanks accounting policies, organisation is allocated to each operating segment taking
and management accounting. Market-based into account capital adequacy rules and
transfer prices are applied between operating estimated capital requirements based on the
segments, while all expenses within Group banks Internal Capital Adequacy Assessment
functions are transfer priced at cost to the Process (ICAAP). All equity is allocated.
operating segments. The net of services
purchased and sold internally is recognised as The return on allocated equity for the operating
other expenses in the income statements of the segments is calculated based on profit for the period for
operating segments. Cross-border transfer the operating segment (operating profit less estimated
pricing is applied according to OECD transfer tax and non-controlling interests), in relation to average
pricing guidelines. monthly allocated equity for the operating segment. For
period shorter than one year the key ratio is annualised.
Note 5 Net interest income

SEKm 2017 2017 % 2016 % 2017 2016 %
Interest income
Loans to credit institutions 8 1 31 -74 9 93 -90
Loans to the public 7 523 7 463 1 7 447 1 14 986 14 969 0
Interest-bearing securities 50 70 -29 172 -71 120 398 -70
Derivatives 209 289 -28 226 -8 498 658 -24
Other 367 274 34 272 35 641 524 22
Total interest income including negative yield on financial
assets 8 157 8 097 1 8 148 0 16 254 16 642 -2
deduction of trading interests reported in net gains and
losses on financial items at fair value 61 187 -67 434 -86 248 659 -62
Interest income, including negative yield on financial
assets, according to income statement 8 096 7 910 2 7 714 5 16 006 15 983 0
Interest expenses
Amounts owed to credit institutions -175 -148 18 -122 43 -323 -233 39
Deposits and borrowings from the public -339 -266 27 -331 2 -605 -641 -6
of which deposit guarantee fees -119 -118 1 -131 -9 -237 -255 -7
Debt securities in issue -2 935 -3 129 -6 -3 096 -5 -6 064 -6 200 -2
Subordinated liabilities -311 -304 2 -228 36 -615 -491 25
Derivatives 2 089 2 340 -11 1 784 17 4 429 2 939 51
Other -263 -350 -25 -164 60 -613 -350 75
of which government resolution fund fee -261 -343 -24 -153 71 -604 -322 88
Total interest expenses including negative yield on
financial liabilities -1 934 -1 857 4 -2 157 -10 -3 791 -4 976 -24
losses on financial items at fair value 72 82 -12 5 154 -6
liabilities, according to income statement -2 006 -1 939 3 -2 162 -7 -3 945 -4 970 -21
Net interest margin before trading interest is deducted 1,01 1,05 0,99 1,03 0,99
Average total assets 2 464 936 2 386 467 3 2 426 073 2 2 419 633 2 368 372 2

Note 6 Net commission income
SEKm 2017 2017 % 2016 % 2017 2016 %
Commission income
Payment processing 435 424 3 427 2 859 852 1
Card commissions 1 275 1 133 13 1 173 9 2 408 2 229 8
Service concepts 157 147 7 131 20 304 259 17
Asset management and custody fees 1 524 1 454 5 1 278 19 2 978 2 541 17
Life insurance 168 169 -1 166 1 337 327 3
Brokerage and other securities 144 168 -14 133 8 312 269 16
Corporate finance 49 45 9 147 -67 94 165 -43
Lending 239 222 8 245 -2 461 480 -4
Guarantees 68 54 26 54 26 122 105 16
Deposits 51 49 4 31 65 100 66 52
Real estate brokerage 57 43 33 70 -19 100 116 -14
Non-life insurance 20 13 54 16 25 33 30 10
Other commission income 130 115 13 140 -7 245 255 -4
Total commission income 4 317 4 036 7 4 011 8 8 353 7 694 9
Commission expenses
Payment processing -268 -244 10 -255 5 -512 -494 4
Card commissions -533 -469 14 -517 3 -1 002 -920 9
Service concepts -3 -2 50 -4 -25 -5 -8 -38
Asset management and custody fees -352 -324 9 -286 23 -676 -564 20
Life insurance -48 -46 4 -45 7 -94 -90 4
Brokerage and other securities -60 -76 -21 -59 2 -136 -75 81
Lending and guarantees -15 -11 36 -19 -21 -26 -38 -32
Non-life insurance -5 -4 25 -3 67 -9 -6 50
Other commission expenses -33 -38 -13 -28 18 -71 -59 20
Total commission expenses -1 317 -1 214 8 -1 216 8 -2 531 -2 254 12
Total Net commission income 3 000 2 822 6 2 795 7 5 822 5 440 7
Note 7 Net gains and losses on financial items at fair value

SEKm 2017 2017 % 2016 % 2017 2016 %
Valuation category, fair value through profit or loss
Shares and share related derivatives 373 -67 567 -34 306 710 -57
of which dividend 126 98 29 47 224 25
Interest-bearing securities and interest related derivatives 10 293 -97 241 -96 303 527 -43
Loans to the public -258 -377 -32 -375 -31 -635 -547 16
Financial liabilities 53 80 -34 30 77 133 -2
Other financial instruments 0 0 -162 0 -126
Total fair value through profit or loss 178 -71 301 -41 107 562 -81
Hedge accounting
Ineffective part in hedge accounting at fair value 22 17 29 -74 39 -135
of which hedging instruments -1 319 -2 065 -36 1 943 -3 384 6 252
of which hedged items 1 341 2 082 -36 -2 017 3 423 -6 387
Ineffective part in portfolio hedge accounting at fair value 29 -31 -13 -2 -34 -94
of which hedging instruments 251 223 13 -550 474 -1 503
of which hedged items -221 -254 -13 537 -475 1 469
Total hedge accounting 51 -14 -87 37 -169
Loan receivables at amortised cost 30 26 15 42 -29 56 75 -25
Financial liabilities valued at amortised cost -42 -244 -83 -181 -77 -286 -212 35
Trading related interest
Interest income 61 187 -67 435 -86 248 660 -62
Interest expense 72 82 -12 5 154 -6
Total trading related interest 133 269 -51 440 -70 402 654 -39
Change in exchange rates 217 520 -58 362 -40 737 367
Total net gains and losses on financial items
at fair value 567 486 17 877 -35 1 053 1 277 -18
Distribution by business purpose

Financial instruments for trading related business 853 825 3 1 128 -24 1 678 1 659 1
Financial instruments intended to be held to contractual
maturity -286 -339 -16 -251 14 -625 -382 64
Total 567 486 17 877 -35 1 053 1 277 -18

Note 8 Other expenses
SEKm 2017 2017 % 2016 % 2017 2016 %
Premises and rents 279 287 -3 266 5 566 534 6
IT expenses 475 491 -3 424 12 966 873 11
Telecommunications and postage 30 40 -25 37 -19 70 70 0
Advertising, PR and marketing 74 70 6 72 3 144 134 7
Consultants 90 70 29 92 -2 160 162 -1
Compensation to savings banks 56 56 0 58 -3 112 118 -5
Other purchased services 169 177 -5 175 -3 346 339 2
Security transport and alarm systems 19 14 36 17 12 33 33 0
Supplies 21 18 17 26 -19 39 49 -20
Travel 67 59 14 65 3 126 113 12
Entertainment 11 11 0 13 -15 22 23 -4
Repair/maintenance of inventories 41 31 32 23 78 72 54 33
Other expenses 107 96 11 103 4 203 234 -13
Total other expenses 1 439 1 420 1 1 371 5 2 859 2 736 4
Note 9 Credit impairments

SEKm 2017 2017 % 2016 % 2017 2016 %
Provision for loans individually assessed
as impaired
Provisions 2 384 -99 522 -100 386 599 -36
Reversal of previous provisions -23 -47 -51 3 -70 -244 -71
Provision for homogenous groups of impaired loans, net 6 11 -45 5 20 17 10 70
Total -15 348 530 333 365 -9
Portfolio provisions for loans individually assessed
as not impaired 16 -57 124 -87 -41 161
Write-offs
Established losses 252 105 322 -22 357 914 -61
Utilisation of previous provisions -197 -50 -379 -48 -247 -770 -68
Recoveries -44 -114 -61 -59 -25 -158 -90 76
Total 11 -59 -116 -48 54
Credit impairments for contingent liabilities and other
credit risk exposures 388 107 0 495 -7
Credit impairments 400 339 18 538 -26 739 573 29
1)
Credit impairment ratio, % 0,10 0,09 0,14 0,10 0,08
1)
For more information about credit impairment ratio, see page 42 of the Fact book.

Note 10 Loans
30 Jun 2017 31 Dec 2016 30 Jun 2016
Loans after Loans after Loans after
provisions provisions provisions
Group Loans before Carrying Carrying Carrying
SEKm provisions Provisions amount amount % amount %
Loans to credit institutions
Banks 20 959 0 20 959 18 579 13 110 164 -81
Repurchase agreements, banks 1 893 0 1 893 617 2 218 -15
Other credit institutions 13 908 0 13 908 12 766 9 13 369 4
Repurchase agreements, other credit institutions 1 864 0 1 864 235 3 945 -53
Loans to credit institutions 38 624 0 38 624 32 197 20 129 696 -70
Loans to the public

Private customers 955 346 794 954 552 931 670 2 896 238 7
Private, mortgage 802 658 491 802 167 782 972 2 749 475 7
Housing cooperatives 110 055 30 110 025 107 762 2 106 206 4
Private,other 42 633 273 42 360 40 936 3 40 557 4
Corporate customers 518 643 2 918 515 725 521 638 -1 524 245 -2
Agriculture, forestry, fishing 68 646 102 68 544 65 992 4 65 229 5
Manufacturing 44 431 259 44 172 44 940 -2 44 362 0
Public sector and utilities 22 760 48 22 712 25 264 -10 24 737 -8
Construction 18 796 122 18 674 19 777 -6 21 883 -15
Retail 28 626 151 28 475 28 202 1 30 427 -6
Transportation 14 930 23 14 907 15 265 -2 13 564 10
Shipping and offshore 26 182 1 344 24 838 27 567 -10 30 590 -19
Hotels and restaurants 7 529 34 7 495 8 893 -16 9 041 -17
Information and communications 10 705 36 10 669 8 064 32 6 676 60
Finance and insurance 13 612 22 13 590 12 497 9 14 518 -6
Property management 218 261 252 218 009 223 404 -2 222 117 -2
Residential properties 64 255 52 64 203 64 154 0 65 162 -1
Commercial 83 740 86 83 654 87 942 -5 91 958 -9
Industrial and Warehouse 44 922 41 44 881 45 145 -1 40 704 10
Other 25 344 73 25 271 26 163 -3 24 293 4
Professional services 24 656 428 24 228 23 221 4 23 402 4
Other corporate lending 19 509 97 19 412 18 552 5 17 699 10
Loans to the public excluding the Swedish National Debt
Office and repurchase agreements 1 473 989 3 712 1 470 277 1 453 308 1 1 420 483 4
Swedish National Debt Office 2 818 0 2 818 5 079 -45 6 779 -58
Repurchase agreements,
Swedish National Debt Office 7 560 0 7 560 3 797 99 6 279 20
Repurchase agreements, public 41 318 0 41 318 45 063 -8 77 549 -47
Loans to the public 1 525 685 3 712 1 521 973 1 507 247 1 1 511 090 1
Loans to the public and credit institutions 1 564 309 3 712 1 560 597 1 539 444 1 1 640 786 -5

Note 11 Impaired loans etc.
SEKm 2017 2016 % 2016 %
Impaired loans, gross 8 225 8 095 2 5 548 48
Provisions for individually assessed impaired loans 2 169 2 254 -4 1 480 47
Provision for homogenous groups of impaired loans 547 453 21 564 -3
Impaired loans, net 5 509 5 388 2 3 504 57
of which private customers 981 1 113 -12 1 253 -22
of which corporate customers 4 528 4 275 6 2 251
Portfolio provisions for loans individually assessed as not impaired 996 1 048 -5 1 174 -15
Share of impaired loans, gross, % 1) 0,53 0,52 2 0,34 56
Share of impaired loans, net, % 1) 0,35 0,35 0 0,21 67
Provision ratio for impaired loans, % 1) 33 33 0 37 -11
1)
Total provision ratio for impaired loans, % 45 46 -2 58 -22
Past due loans that are not impaired 3 626 3 164 15 3 862 -6
of which past due 5-30 days 2 326 1 768 32 2 299 1
of which past due 31-60 days 765 857 -11 786 -3
of which past due 61-90 days 285 269 6 299 -5
of which past due more than 90 days 250 270 -7 478 -48
1)
For more information about impaired loans see page 44-45 in the Fact book.
Note 12 Assets taken over for protection of claims and cancelled leases
SEKm 2017 2016 % 2016 %
Buildings and land 213 257 -17 296 -28
Shares and participating interests 31 3 3
Other property taken over 123 120 3 135 -9
Total assets taken over for protection of claims 367 380 -3 434 -15
Cancelled leases 25 25 0 9
Total assets taken over for protection of claims
and cancelled leases 392 405 -3 443 -12
of which acquired by Ektornet group 91 139 -35 213 -57
Note 13 Credit exposures

SEKm 2017 2016 % 2016 %
Assets
Cash and balances with central banks 432 540 121 347 356 146 21
Interest-bearing securities 127 112 182 072 -30 160 236 -21
Loans to credit institutions 38 624 32 197 20 129 696 -70
Loans to the public 1 521 973 1 507 247 1 1 511 090 1
Derivatives 76 372 87 811 -13 99 314 -23
Other financial assets 14 855 10 853 37 22 092 -33
Total assets 2 211 476 1 941 527 14 2 278 574 -3
Contingent liabilities and commitments
Guarantees 43 233 42 750 1 37 213 16
Commitments 265 607 262 701 1 260 294 2
Total contingent liabilities and commitments 308 840 305 451 1 297 507 4
Total credit exposures 2 520 316 2 246 978 12 2 576 081 -2

Note 14 Intangible assets
SEKm 2017 2016 % 2016 %
With indefinite useful life
Goodwill 12 463 12 408 0 12 272 2
Total 12 463 12 408 0 12 272 2
With finite useful life
Customer base 523 559 -6 581 -10
Internally developed software 1 394 989 41 812 72
Other 415 323 28 395 5
Total 2 332 1 871 25 1 788 30
Total intangible assets 14 795 14 279 4 14 060 5
Impairment testing of intangible assets

As of 30 June 2017 there were no indicators of impairment.
Note 15 Amounts owed to credit institutions

SEKm 2017 2016 % 2016 %
Amounts owed to credit institutions
Central banks 15 783 22 079 -29 30 921 -49
Banks 136 243 47 771 124 583 9
Other credit institutions 2 693 1 968 37 2 022 33
Repurchase agreements - banks 234 13 9 346 -97
Repurchase agreements - other credit institutions 21 0 0
Amounts owed to credit institutions 154 974 71 831 166 872 -7
Note 16 Deposits and borrowings from the public

SEKm 2017 2016 % 2016 %
Deposits from the public
Private customers 456 657 441 817 3 427 186 7
Corporate customers 431 032 340 214 27 509 167 -15
Deposits from the public excluding the Swedish National Debt Office
and repurchase agreements 887 689 782 031 14 936 353 -5
Swedish National Debt Office 250 1 3
Repurchase agreements - public 21 284 10 892 95 19 438 9
Deposits and borrowings from the public 909 223 792 924 15 955 794 -5

Note 17 Debt securities in issue and subordinated liabilities
SEKm 2017 2016 % 2016 %
Commercial Paper and Certificates of Deposits 159 016 102 225 56 165 872 -4
Covered bonds 540 357 558 295 -3 568 232 -5
Senior unsecured bonds 176 884 166 161 6 166 710 6
Structured retail bonds 15 039 14 992 0 14 893 1
Total debt securities in issue 891 296 841 673 6 915 707 -3
Subordinated liabilities 32 522 27 254 19 22 702 43
Total debt securities in issue and subordinated liabilities 923 818 868 927 6 938 409 -2
Jan-Jun Full year Jan-Jun

Turnover during the period 2017 2016 % 2016 %
Opening balance 868 927 851 148 2 851 148 2
Issued 657 711 976 733 -33 567 113 16
Repurchased -48 263 -44 963 7 -14 281
Repaid -533 186 -933 835 -43 -476 808 12
Change in market value or in hedged item in fair value hedge accounting -6 647 -8 240 -19 3 870
Changes in exchange rates -14 724 28 084 7 367
Closing balance 923 818 868 927 6 938 409 -2
Note 18 Derivatives
Nominal amount 31 Mar 2017
Remaining contractual maturity Nominal amount Positive fair value Negative fair value
Group 2017 2016 2017 2016 2017 2016
SEKm < 1 yr. 1-5 yrs. > 5 yrs. 30 Jun 31 Dec 30 Jun 31 Dec 30 Jun 31 Dec
Derivatives in fair value hedges 70 561 387 908 60 650 519 119 531 489 12 548 16 676 931 587
Derivatives in portfolio fair value
hedges 37 500 137 875 13 830 189 205 171 230 326 223 1 654 2 063
Derivatives in cash flow hedges 77 1 716 7 573 9 366 9 364 0 0 526 494
Non-hedging derivatives 5 224 275 3 362 655 694 490 9 281 420 9 614 077 75 192 82 749 81 412 96 150
Gross amount 5 332 413 3 890 154 776 543 9 999 110 10 326 160 88 066 99 648 84 523 99 294
Offset amount (see also note 21) -2 222 432 -1 399 186 -372 271 -3 993 889 -3 332 268 -11 694 -11 837 -13 710 -13 705
Total 3 109 981 2 490 968 404 272 6 005 221 6 993 892 76 372 87 811 70 813 85 589
The Group trades derivatives in the normal course of The amounts offset for derivative assets and derivative
business and to hedge certain positions with regard liabilities include cash collateral offsets of SEK 2 520m
to the value of equities, interest rates and currencies. and SEK 504m respectively.

Note 19 Financial instruments at fair value
30 Jun 2017 31 Dec 2016
Group Fair Carrying Fair Carrying
SEKm value amount Difference value amount Difference
Assets
Financial assets covered by IAS 39
Cash and balances with central banks 432 540 432 540 0 121 347 121 347 0
Treasury bills etc. 51 358 51 294 64 107 647 107 571 76
Loans to credit institutions 38 624 38 624 0 32 197 32 197 0
Loans to the public 1 526 283 1 521 973 4 310 1 512 686 1 507 247 5 439
Value change of interest hedged items in portfolio hedge 1 007 1 007 0 1 482 1 482 0
Bonds and interest-bearing securities 75 824 75 818 6 74 508 74 501 7
Financial assets for which the customers bear the investment risk 173 051 173 051 0 160 114 160 114 0
Shares and participating interest 12 501 12 501 0 23 897 23 897 0
Derivatives 76 372 76 372 0 87 811 87 811 0
Other financial assets 14 854 14 854 0 10 851 10 851 0
Total 2 402 414 2 398 034 4 380 2 132 540 2 127 018 5 522
Investment in associates 7 211 7 319
Non-financial assets 20 876 19 866
Total 2 426 121 2 154 203
Liabilities
Financial liabilities covered by IAS 39
Amounts owed to credit institutions 154 974 154 974 0 71 615 71 831 -216
Deposits and borrowings from the public 909 205 909 223 -18 792 905 792 924 -19
Debt securities in issue 899 074 891 296 7 778 849 097 841 673 7 424
Financial liabilities for which the customers bear the investment risk 173 859 173 859 0 161 051 161 051 0
Subordinated liabilities 32 544 32 522 22 27 254 27 254 0
Derivatives 70 813 70 813 0 85 589 85 589 0
Short positions securities 21 269 21 269 0 11 614 11 614 0
Other financial liabilities 37 081 37 081 0 22 524 22 524 0
Total 2 298 818 2 291 037 7 781 2 021 649 2 014 460 7 189
Non-financial liabilities 10 906 10 038
Total 2 301 943 2 024 498
Valuation Valuation
Instruments with techniques techniques
quoted market using using non-
Group prices in active observable observable
30 Jun 2017 markets market data market data
SEKm (Level 1) (Level 2) (Level 3) Total
Assets
Treasury bills etc. 15 915 4 976 0 20 891
Loans to credit institutions 0 3 734 0 3 734
Loans to the public 0 168 113 0 168 113
Bonds and other interest-bearing securities 34 807 37 598 0 72 405
Financial assets for which the customers bearthe investment risk 173 052 0 0 173 052
Shares and participating interests 12 071 3 427 12 501
Derivatives 196 76 135 41 76 372
Total 236 041 290 559 468 527 068
Liabilities
Amounts owed to credit institutions 0 254 0 254
Deposits and borrowings from the public 0 21 284 0 21 284
Debt securities in issue 3 160 19 731 0 22 891
Financial liabilities for which the customers bearthe investment risk 0 173 859 0 173 859
Derivatives 190 70 623 0 70 813
Short positions, securities 21 269 0 0 21 269
Total 24 619 285 751 0 310 370
The table above contains financial instruments

measured at fair value by valuation level. The When financial assets and financial liabilities in
Group uses various methods to determine the fair active markets have market risks that offset each
value for financial instruments depending on the other, an average of bid and ask prices is used as a
degree of observable market data in the valuation basis to determine the fair values of the risk
and activity in the market. Activity is continuously positions that offset each other. For any open net
evaluated by analysing factors such as differences positions, bid rates are applied for long positions
in bid and ask prices. and ask rates for short positions.
The methods are divided into three different levels: The Group has a continuous process whereby
Level 1: Unadjusted, quoted price on an active financial instruments that indicate a high level of
market internal estimates or low level of observable market
Level 2: Adjusted, quoted price or valuation model data are captured. The process determines the way
with valuation parameters derived from an active to calculate and how the internal assumptions are
market expected to affect the valuation. In cases where
Level 3: Valuation model where a majority of internal assumptions have a material impact on fair
valuation parameters are non-observable and value, the financial instrument is reported in level 3.
based on internal assumptions. The process also includes an analysis and
evaluation based on the quality of the valuation When transfers occur between fair value hierarchy
data as well as whether a type of financial levels those are reflected as taking place at the end of
instrument is to be transferred between levels. each quarter. There were no transfers of financial
instruments between valuation levels 1 and 2 during the
quarter.
Valuation Valuation
Instruments with techniques techniques
quoted market using using non-
Group prices in an observable observable
31 Dec 2016 active market market data market data
SEKm (Level 1) (Level 2) (Level 3) Total
Assets
Treasury bills etc. 16 740 5 429 0 22 169
Loans to credit institutions 0 852 0 852
Loans to the public 0 190 512 0 190 512
Bonds and other interest-bearing securities 42 650 28 183 0 70 833
Financial assets for which the customers bearthe investment risk 160 115 0 0 160 115
Shares and participating interests 23 604 135 158 23 897
Derivatives 138 87 608 65 87 811
Total 243 247 312 719 223 556 189
Liabilities
Amounts owed to credit institutions 0 13 0 13
Deposits and borrowings from the public 0 10 892 0 10 892
Debt securities in issue 3 270 19 830 0 23 100
Financial liabilities for which the customers bearthe investment risk 0 161 051 0 161 051
Derivatives 75 85 514 0 85 589
Short positions, securities 11 614 0 0 11 614
Total 14 959 277 300 0 292 259
Changes in level 3 Assets

Group Equity
SEKm instruments Derivatives Total
January-June 2017
Opening balance 1 January 2017 158 65 223
Purchases 204 0 204
Sale of assets -1 0 -1
Maturities 0 -19 -19
Transferred from Level 2 to Level 3 64 0 64
Transferred from Level 3 to Level 2 0 -14 -14
Gains or losses 2 9 11
of which in the income statement, net gains and losses on financial
items at fair value 2 9 11
of which changes in unrealised gains or losses
for items held at closing day 0 2 2
Closing balance 30 June 2017 427 41 468
Level 3 primarily contains unlisted equity used to value the illiquid option element normally do
instruments and illiquid options. In connection with not have a significant effect on the valuation and
the sale of shares in VISA Europe convertible the financial instrument is typically reported in level
preference shares in VISA Inc. were obtained. The 2. However, the Group typically hedges the market
shares are subject to selling restrictions for a period risks that arise in structured products by holding
of up to 12 years and under certain conditions may individual options. The internal assumptions used to
have to be returned. Because liquid quotes are not in the valuation of the individual financial
available for the instrument, its fair value is instruments are therefore of greater significance,
established with significant elements of own internal because of which several are reported as
assumptions and reported in level 3 as equity derivatives in level 3.
instruments. The options hedge changes in the
market value of hybrid debt instruments, so-called For all options included in level 3 an analysis is
structured products. Structured products consist of performed based on historical movements in
a corresponding option element and a host contract prices. Given this, it is not likely that future
contract, which in principle is an ordinary interest- price movements will affect the market value for
bearing bond. When the Group evaluates the level options in level 3 with more than +/- SEK 7m.
on which the financial instruments are reported, the
entire instrument is assessed on an individual Financial instruments are transferred to or from
basis. Since the bond portion of the structured level 3 depending on whether the internal
products represents the majority of the financial assumptions have changed in significance to the
instruments fair value, the internal assumptions valuation.

Changes in level 3 Assets
Group Equity
SEKm instruments Derivatives Total
January-June 2016
Opening balance 1 January 2016 73 114 187
Purchases 3 0 3
VISA Inc. C shares received 63 0 63
Sale of assets -3 0 -3
Maturities 0 -13 -13
Transferred from Level 2 to Level 3 0 2 2
Transferred from Level 3 to Level 2 0 -5 -5
Gains or losses 7 -28 -21
of which in the income statement, net gains and losses on financial
items at fair value 7 -28 -21
of which changes in unrealised gains or losses
for items held at closing day 17 -29 -12
Closing balance 30 June 2016 143 70 213
Note 20 Pledged collateral

SEKm 2017 2016 % 2016 %
1
Loan receivables 537 087 542 278 -1 545 565 -2
Financial assets pledged for policyholders 170 497 157 804 8 144 796 18
Other assets pledged 48 247 37 546 29 51 410 -6
Pledged collateral 755 831 737 628 2 741 771 2
1)
The pledge is defined as the borrowers nominal debt including accrued interest. Refers to the loans of the total
available collateral that are used as the pledge at each point in time.
Note 21 Offsetting financial assets and liabilities

Assets Liabilities
Group 30 Jun 31 Dec 30 Jun 31 Dec
SEKm 2017 2016 % 2017 2016 %
Financial assets and liabilities, which have been offset or are subject to netting
or similar agreements
Gross amount 149 988 152 098 -1 117 178 111 865 5
Offset amount -22 468 -16 340 38 -24 484 -18 208 34
Net amounts presented in the balance sheet 127 520 135 758 -6 92 694 93 657 -1
Related amounts not offset in the balance sheet
Financial instruments, netting arrangements 48 119 46 691 3 48 119 46 691 3
Financial Instruments, collateral 36 860 40 853 -10 12 851 4 391
Cash, collateral 666 12 676 -95 3 798 13 775 -72
Total amount not offset in the balance sheet 85 645 100 220 -15 64 768 64 857 0
Net amount 41 875 35 538 18 27 926 28 800 -3
The amounts offset for financial assets and financial

liabilities include cash collateral offsets of SEK 2 520m
and SEK 504m respectively.

Note 22 Capital adequacy, consolidated situation
Capital adequacy 30 Jun 31 Dec 30 Jun
SEKm 2017 2016 2016
Shareholders' equity according to the Group's balance sheet 123 986 129 515 119 291
Non-controlling interests 73 78 75
Anticipated dividend -7 402 -14 695 -7 936
Deconsolidation of insurance companies 346 96 -194
Value changes in own financial liabilities 40 -2 4
Cash flow hedges 5 -77 -71
Additional value adjustments 1) -629 -598 -840
Goodwill -12 551 -12 497 -12 360
Deferred tax assets -110 -114 -106
Intangible assets -1 997 -1 601 -1 530
Net provisions for reported IRB credit exposures -1 496 -1 376 -1 391
Shares deducted from CET1 capital -46 -50 -40
Common Equity Tier 1 capital 100 219 98 679 94 902
Additional Tier 1 capital 12 949 14 281 9 651
Total Tier 1 capital 113 168 112 960 104 553
Tier 2 capital 18 828 12 229 12 315
Total capital 131 996 125 189 116 868
Minimum capital requirement for credit risks, standardised approach 3 185 3 800 4 313
Minimum capital requirement for credit risks, IRB 21 330 21 478 22 183
Minimum capital requirement for credit risk, default fund contribution 49 34 2
Minimum capital requirement for settlement risks 0 0 0
Minimum capital requirement for market risks 778 754 908
Trading book 750 732 893
of which VaR and SVaR 489 563 552
of which risks outside VaR and SVaR 261 169 341
FX risk other operations 28 22 15
Minimum capital requirement for credit value adjustment 381 424 622
Minimum capital requirement for operational risks 4 988 4 972 4 972
Additional minimum capital requirement, Article 3 CRR 2) 1 829 69 69
Minimum capital requirement 32 540 31 531 33 069
Risk exposure amount credit risks, standardised approach 39 812 47 503 53 911
Risk exposure amount credit risks, IRB 266 619 268 473 277 283
Risk exposure amount default fund contribution 609 431 29
Risk exposure amount settlement risks 0 0 0
Risk exposure amount market risks 9 723 9 419 11 345
Risk exposure amount credit value adjustment 4 782 5 297 7 786
Risk exposure amount operational risks 62 345 62 152 62 152
2)
Additional risk exposure amount, Article 3 CRR 22 860 860 860
Risk exposure amount 406 750 394 135 413 366
Common Equity Tier 1 capital ratio, % 24,6 25,0 23,0

Tier 1 capital ratio, % 27,8 28,7 25,3
Total capital ratio, % 32,5 31,8 28,3
3)
Capital buffer requirement 30 Jun 31 Dec 30 Jun
% 2017 2016 2016
CET1 capital requirement including buffer requirements 11,3 11,0 11,0
of which minimum CET1 requirement 4,5 4,5 4,5
of which capital conservation buffer 2,5 2,5 2,5
of which countercyclical capital buffer 1,3 1,0 1,0
of which systemic risk buffer 3,0 3,0 3,0
CET 1 capital available to meet buffer requirement 4) 20,1 20,5 18,5
5)
Capital adequacy Basel 1 floor 30 Jun 31 Dec 30 Jun
SEKm 2017 2016 2016
Capital requirement Basel 1 floor 75 876 75 749 73 591
Own funds Basel 3 adjusted according to rules for Basel 1 floor 133 492 126 565 118 259
Surplus of capital according to Basel 1 floor 57 616 50 816 44 668
Leverage ratio 30 Jun 31 Dec 30 Jun

2017 2016 2016
Tier 1 Capital, SEKm 113 168 112 960 104 553
Leverage ratio exposure, SEKm 2 336 422 2 098 179 2 460 715
Leverage ratio, % 4,8 5,4 4,2
1)
Adjustment due to the implementation of EBAs technical standards on prudent valuation. The objective of these standards is to determine prudent
values of fair valued positions.
2)
To rectify for underestimation of default frequency in the model for corporate exposures, Swedbank has decided to hold more capital until the
updated model has been approved by the Swedish FSA.
3)
Buffer requirement according to Swedish implementation of CRD IV
4)
CET1 capital ratio as reported, less minimum requirement of 4.5% (excluding buffer requirements) and less any CET1 items used to meet the Tier 1
and total capital requirements.
5)
Basel 1 floor based on the higher of the Basel 3 capital requirement and 80% of Basel 1 capital requirement. In the latter case the own funds is
adjusted according to CRR article 500.4
The consolidated situation for Swedbank as of 30 June

2017 comprised the Swedbank Group with the
exception of insurance companies. The Entercard 575/2013 of the European Parliament and of the Council
Group was included as well through the proportionate on supervisory requirements for credit institutions and
consolidation method. Implementing Regulation (EU) No 1423/2013 of the
European Commission can be found on Swedbanks
The note contains the information made public website: https://www.swedbank.com/investor-
according to the Swedish Financial Supervisory relations/financial-information-and-publications/risk-
Authority Regulation FFFS 2014:12, chap. 8. Additional report/index.htm
periodic information according to Regulation (EU) No
Swedbank Exposure Average Minimum capital

Consolidated situation value risk weight, % requirement
Credit risk, IRB 30 Jun 31 Dec 30 Jun 31 Dec 30 Jun 31 Dec
SEKm 2017 2016 2017 2016 2017 2016
Central government or central banks exposures 513 596 0 1 0 602 0
Institutional exposures 75 406 83 959 16 16 992 1 072
Corporate exposures 502 734 508 765 33 35 13 443 14 065
Retail exposures 1 076 404 1 032 298 7 7 5 895 5 772
of which mortgage 975 894 936 542 5 5 3 719 3 633
of which other 100 510 95 756 27 28 2 176 2 139
Non credit obligation 8 027 12 182 62 58 398 569
Total credit risks, IRB 2 176 167 1 637 204 12 16 21 330 21 478
Exposure amount, Risk exposure amount and Minimum capital requirement,

consolidated situation
30 Jun 2017 Exposure amount Risk exposure Minimum capital
SEKm amount requirement
Credit risks, STD 57 109 39 812 3 185

Central government or central banks exposures 122 0 0
Regional governments or local authorities exposures 1 652 214 17
Public sector entities exposures 5 681 119 9
Multilateral development banks exposures 5 138 23 2
International organisation exposures 515 0 0
Institutional exposures 7 487 164 13
Corporate exposures 5 217 4 880 390
Retail exposures 12 943 9 457 757
Exposures secured by mortgages on immovable property 6 046 2 118 169
Exposures in default 449 459 37
Exposures in the form of covered bonds 63 6 1
Equity exposures 8 191 19 674 1 574
Other items 3 605 2 698 216
Credit risks, IRB 2 176 167 266 619 21 330
Central government or central banks exposures 513 596 7 525 602
Institutional exposures 75 406 12 397 992
Corporate exposures 502 734 168 041 13 443
of which specialized lending in category 1 14 10 1
Retail exposures 1 076 404 73 694 5 895
of which mortgage lending 975 894 46 491 3 719
of which other lending 100 510 27 203 2 176
Non-credit obligation 8 027 4 962 398
Credit risks, Default fund contribution 0 609 49
Settlement risks 0 0 0
Market risks 0 9 723 778
Trading book 0 9 380 750
of which VaR and SVaR 0 6 111 489
of which risks outside VaR and SVaR 0 3 269 261
Credit value adjustment 21 333 4 782 381
Operational risks 0 62 345 4 988
of which Standardised approach 0 62 345 4 988
Additional risk exposure amount, Article 3 CRR 0 22 860 1 829
Total 2 254 609 406 750 32 540

Exposure amount, Risk exposure amount and Minimum capital requirement,
consolidated situation
31 Dec 2016 Exposure amount Risk exposure Minimum capital
Credit risks, STD 351 879 47 503 3 800
Central government or central banks exposures 245 746 449 36
Retail exposures 14 315 10 485 839
Exposures secured by mortgages on immovable property 23 884 8 361 669
Exposures in the form of covered bonds 69 7 1
Other items 3 997 2 994 240
Credit risks, IRB 1 637 204 268 473 21 478
Institutional exposures 83 959 13 406 1 072
Retail exposures 1 032 298 72 151 5 772
of which mortgage lending 936 542 45 410 3 633
of which Standardised approach 0 62 152 4 972
Additional risk exposure amount, Article 3 CRR 0 860 69
Total 2 010 476 394 135 31 531
Credit risks
book. The approval also covers operations in the Baltic
The Internal Ratings-Based Approach (IRB) is applied countries with respect to general interest rate risks and
within the Swedish part of Swedbanks consolidated foreign exchange risks in the trading book. Foreign
situation, including the branch offices in New York and exchange risks outside the trading book, i.e. in other
Oslo but excluding EnterCard and several small operations, are mainly of a structural and strategic
subsidiaries. IRB is also applied for the majority of nature and are less suited to a VaR model.
Swedbanks exposure classes in the Baltic countries.
These risks are instead estimated according to the
When Swedbank acts as clearing member, the bank standardised approach, as per the Groups internal
calculates a capital base requirement for its pre-funded, approach to managing these risks.
qualifying and non-qualifying central counterparty
default fund contributions. Strategic foreign exchange risks mainly arise through
risks associated with holdings in foreign operations.
For exposures, excluding capital requirement for default
fund contributions, where IRB-approach is not applied,
the standardized approach is used.
Credit value adjustment
The risk of a credit value adjustment is estimated
according to the standardised approach and was added
Market risks after the implementation of the new EU regulation
Under current regulations capital adequacy for market (CRR).
risks can be based on either a standardised approach or
an internal Value at Risk model, which requires the Operational risk
approval of the SFSA. The parent company has
Swedbank calculates operational risk using the
received such approval and uses its internal VaR model
standardised approach. The SFSA has stated that
for general interest rate risks, general and specific share
Swedbank meets the qualitative requirements to apply
price risks and foreign exchange risks in the trading
this method.

Basel 1 floor
The transition rules state that the minimum capital
requirement must not fall below 80 per cent of the
requirement according to the older Basel 1 rules.
Note 23 Internal capital requirement

This note provides information on the internal capital exposed to by quantifying their impact on the income
assessment according to chapter 8, section 5 of the statement and balance sheet as well as the capital base
SFSAs regulation on prudential requirements and and risk-weighted assets. The purpose is to ensure
capital buffers (2014:12). The internal capital efficient use of capital. The methodology serves as a
assessment is published in the interim report according basis of proactive risk and capital management.
to chapter 8, section 4 of the SFSAs regulation and
general advice on annual reports from credit institutions As of 30 June 2017 the internal capital assessment for
and investment firms (2008:25). Swedbanks consolidated situation amounted to
SEK 29.2bn (SEK 31.3bn as of 31 March 2017). The
A bank must identify measure and manage the risks capital to meet the internal capital assessment, i.e. the
with which its activities are associated and have capital base, amounted to SEK 132.0bn (SEK 125.8bn
sufficient capital to cover these risks. The purpose of the as of 31 March 2017) (see Note 22). Swedbanks
Internal Capital Adequacy Assessment process (ICAAP) internal capital assessment using its own models is not
is to ensure that the bank is sufficiently capitalised to comparable with the estimated capital requirement that
cover its risks and to conduct and develop its business the SFSA releases quarterly.
activities. Swedbank applies its own models and
processes to evaluate its capital requirements for all The internally estimated capital requirement for the
relevant risks. The models that serve as a basis for the parent company is SEK 24.8bn (SEK 24.9bn as of 31
internal capital assessment evaluate the need for March 2017) and the capital base is SEK 107.8bn (SEK
economic capital over a one-year horizon at a 99.9% 99.1bn as of 31 March 2017) (see the parent companys
confidence level for each type of risk. Diversification note on capital adequacy).
effects between various types of risks are not taken into
account in the calculation of economic capital. In addition to what is stated in this interim report, risk
management and capital adequacy according to the
As a complement to the economic capital calculation, Basel 3 framework are described in more detail in
scenario-based simulations and stress tests are Swedbanks annual report for 2016 as well as in
conducted at least once a year. The analyses provide Swedbanks yearly Risk and Capital Adequacy Report,
an overview of the most important risks Swedbank is available on www.swedbank.com.
Note 24 Risks and uncertainties

Swedbanks earnings are affected by changes in In addition to what is stated in this interim report,
the global marketplace over which it has no control, detailed descriptions are provided in Swedbanks
including macroeconomic factors such as GDP, 2016 annual report and in the annual disclosure on
asset prices and unemployment as well as changes risk management and capital adequacy available on
in interest rates, equity prices and exchange rates. www.swedbank.com
Effect on value of assets and liabilities in SEK and foreign currency, including derivatives
if interest rates increase by 100bp, 30 Jun 2017
Group
SEKm < 5 years 5-10 years >10 years Total
Swedbank,
the Group -719 41 126 -552
of which SEK -1 653 -55 96 -1 612
of which foreign currency 934 95 31 1 060
Of which financial instruments at fair value

reported through profit or loss 553 178 64 795
of which SEK -495 39 26 -430
of which foreign currency 1 048 139 38 1 225

Note 25 Related-party transactions
During the period normal business transactions were other related companies such as associates. Partly
executed between companies in the Group, including owned savings banks are major associates.
Note 26 Swedbanks share

30 Jun 31 Dec 30 Jun
2017 2016 % 2016 %
SWED A
Share price, SEK 205,30 220,30 -7 175,70 17
Number of outstanding ordinary shares 1 113 629 515 1 110 731 820 0 1 110 731 820 0
Market capitalisation, SEKm 228 628 244 694 -7 195 156 17
30 Jun 31 Dec 30 Jun

Number of outstanding shares 2017 2016 2016
Issued shares
SWED A 1 132 005 722 1 132 005 722 1 132 005 722
Repurchased shares
SWED A -18 376 207 -21 273 902 -21 273 902
Repurchase of own shares for trading purposes
SWED A 0 0 0
Number of outstanding shares on the closing day 1 113 629 515 1 110 731 820 1 110 731 820
Within Swedbank's share-based compensation programme, Swedbank AB has during Q1 2017 transferred 2 490 310
shares, and during Q2 2017 transferred 407 385 shares at no cost to employees.
Earnings per share 2017 2017 2016 2017 2016
Average number of shares
Average number of shares before dilution 1 113 487 141 1 112 126 000 1 110 547 108 1 112 810 330 1 109 323 285
Weighted average number of shares for potential ordinary shares that

incur a dilutive effect due to share-based compensation programme 4 598 508 5 335 204 5 142 135 5 248 639 6 147 713
Average number of shares after dilution 1 118 085 649 1 117 461 204 1 115 689 244 1 118 058 969 1 115 470 998
Profit, SEKm
Profit for the period attributable to shareholders of Swedbank 4 746 5 124 6 270 9 870 10 581
Earnings for the purpose of calculating earnings per share 4 746 5 124 6 270 9 870 10 581
Earnings per share, SEK

Earnings per share before dilution 4,26 4,61 5,65 8,87 9,54
Earnings per share after dilution 4,24 4,59 5,62 8,83 9,49

Note 27 Effects of changed reporting of the compensation to the Savings
banks for mortgage loans
Income statement
New Previous New Previous New Previous

reporting reporting reporting reporting reporting reporting
Group 2016 2016 2016 2016 2016 2016
SEKm Q2 Change Q2 Jan-Jun Change Jan-Jun Full-year Change Full-year
Interest income 7 714 -180 7 894 15 983 -342 16 325 32 914 -814 33 728
Negative yield on financial assets 0 0 0 0 0 0 -1 543 0 -1 543
assets 7 714 -180 7 894 15 983 -342 16 325 31 371 -814 32 185
Interest expenses -2 162 0 -2 162 -4 970 0 -4 970 -9 256 0 -9 256
Negative yield on financial liabilities 0 0 0 0 0 0 735 0 735
liabilities -2 162 0 -2 162 -4 970 0 -4 970 -8 521 0 -8 521
Net interest income (note 5) 5 552 -180 5 732 11 013 -342 11 355 22 850 -814 23 664
Net commission income (note 6) 2 795 0 2 795 5 440 0 5 440 11 333 0 11 333
Net gains and losses on financial items at fair value (note 7) 877 0 877 1 277 0 1 277 2 231 0 2 231
Net insurance 203 0 203 360 0 360 754 0 754
Share of profit or loss of associates 1 929 0 1 929 2 120 0 2 120 2 467 0 2 467
Other income 334 0 334 624 0 624 1 186 0 1 186
Total income 11 690 -180 11 870 20 834 -342 21 176 40 821 -814 41 635
Staff costs 2 314 0 2 314 4 621 0 4 621 9 376 0 9 376
Other expenses (note 8) 1 371 -180 1 551 2 736 -342 3 078 5 622 -814 6 436
Depreciation/amortisation 155 0 155 309 0 309 629 0 629
Total expenses 3 840 -180 4 020 7 666 -342 8 008 15 627 -814 16 441
Profit before impairments 7 850 0 7 850 13 168 0 13 168 25 194 0 25 194
Impairment of intangible assets (note 14) 0 0 0 0 0 0 35 0 35
Impairment of tangible assets 1 0 1 9 0 9 31 0 31
Credit impairments (note 9) 538 0 538 573 0 573 1 367 0 1 367
Operating profit 7 311 0 7 311 12 586 0 12 586 23 761 0 23 761
Tax expense 1 037 0 1 037 1 998 0 1 998 4 209 0 4 209
Profit for the period 6 274 0 6 274 10 588 0 10 588 19 552 0 19 552
Profit for the period attributable to the
shareholders of Swedbank AB 6 270 0 6 270 10 581 0 10 581 19 539 0 19 539
Non-controlling interests 4 0 4 7 0 7 13 0 13
C/I-ratio 0,33 0,34 0,37 0,38 0,38 0,39
For more information see note 1 Accounting policies.

Net interest income
Group 2016 2016 2016 2016 2016 2016
Interest income
Loans to credit institutions 31 0 31 93 0 93 64 0 64
Loans to the public 7 447 -180 7 627 14 969 -342 15 311 30 031 -814 30 845
Interest-bearing securities 172 0 172 398 0 398 651 0 651
Derivatives 226 0 226 658 0 658 1 093 0 1 093
Other 272 0 272 524 0 524 764 0 764
Total interest income including negative yield on financial
assets 8 148 -180 8 328 16 642 -342 16 984 32 603 -814 33 417
losses on financial items at fair value 434 0 434 659 0 659 1 232 0 1 232
assets, according to income statement 7 714 -180 7 894 15 983 -342 16 325 31 371 -814 32 185
Interest expenses
Amounts owed to credit institutions -122 0 -122 -233 0 -233 -269 0 -269
Deposits and borrowings from the public -331 0 -331 -641 0 -641 -1 100 0 -1 100
of which deposit guarantee fees -131 0 -131 -255 0 -255 -466 0 -466
Debt securities in issue -3 096 0 -3 096 -6 200 0 -6 200 -13 013 0 -13 013
Subordinated liabilities -228 0 -228 -491 0 -491 -977 0 -977
Derivatives 1 784 0 1 784 2 939 0 2 939 7 638 0 7 638
Other -164 0 -164 -350 0 -350 -689 0 -689
of which government stabilisation fund fee -153 0 -153 -322 0 -322 -646 0 -646
Total interest expenses including negative yield on
financial liabilities -2 157 0 -2 157 -4 976 0 -4 976 -8 410 0 -8 410
losses on financial items at fair value 5 0 5 -6 0 -6 111 0 111
liabilities, according to income statement -2 162 0 -2 162 -4 970 0 -4 970 -8 521 0 -8 521
Net interest income 5 552 -180 5 732 11 013 -342 11 355 22 850 -814 23 664
Net interest margin before trading interest is deducted 0,99 -0,03 1,02 0,99 -0,03 1,01 1,02 -0,03 1,05
Average total assets 2 426 073 0 2 426 073 2 368 372 0 2 368 372 2 373 930 0 2 373 930
Other expenses
Group 2016 2016 2016 2016 2016 2016
Premises and rents 266 0 266 534 0 534 1 131 0 1 131
IT expenses 424 0 424 873 0 873 1 834 0 1 834
Telecommunications and postage 37 0 37 70 0 70 118 0 118
Advertising, PR and marketing 72 0 72 134 0 134 285 0 285
Consultants 92 0 92 162 0 162 314 0 314
Compensation to savings banks 58 -180 238 118 -342 460 236 -814 1 050
Other purchased services 175 0 175 339 0 339 708 0 708
Security transport and alarm systems 17 0 17 33 0 33 72 0 72
Supplies 26 0 26 49 0 49 103 0 103
Travel 65 0 65 113 0 113 226 0 226
Entertainment 13 0 13 23 0 23 51 0 51
Repair/maintenance of inventories 23 0 23 54 0 54 111 0 111
Other expenses 103 0 103 234 0 234 433 0 433
Total other expenses 1 371 -180 1 551 2 736 -342 3 078 5 622 -814 6 436

Swedbank AB
Income statement, condensed
Parent company Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2017 2017 % 2016 % 2017 2016 %
Interest income 4 520 4 281 6 3 772 20 8 801 7 758 13
Negative yield on financial assets -546 -383 43 0 -929 0
Interest income, including negative yield on financial assets 3 974 3 898 2 3 772 5 7 872 7 758 1
Interest expenses -1 111 -1 045 6 -705 58 -2 156 -1 893 14
Negative yield on financial liabilities 186 140 33 0 326 0
liabilities -925 -905 2 -705 31 -1 830 -1 893 -3
Net interest income 3 049 2 993 2 3 067 -1 6 042 5 865 3
Dividends received 3 368 3 016 12 3 172 6 6 384 13 128 -51
Commission income 2 444 2 289 7 2 366 3 4 733 4 493 5
Commission expenses -786 -716 10 -771 2 -1 502 -1 436 5
Net gains and losses on financial items at fair value 742 653 14 879 -16 1 395 509
Other income 376 357 5 360 4 733 644 14
Total income 9 193 8 592 7 9 073 1 17 785 23 203 -23
Staff costs 1 985 2 032 -2 1 940 2 4 017 3 866 4
Other expenses 1 313 1 197 10 1 113 18 2 510 2 268 11
Depreciation/amortisation and impairments of tangible
and intangible fixed assets 1 116 1 093 2 1 099 2 2 209 2 189 1
Total expenses 4 414 4 322 2 4 152 6 8 736 8 323 5
Profit before impairments 4 779 4 270 12 4 921 -3 9 049 14 880 -39
Impairment of financial fixed assets 0 0 26 0 87
Credit impairments 385 396 -3 500 -23 781 586 33
Operating profit 4 394 3 874 13 4 395 0 8 268 14 207 -42
Appropriations 0 0 0 0 0
Tax expense 992 288 598 66 1 280 900 42
Statement of comprehensive income, condensed

Parent company Q2 Q1 Q2 Jan-Jun Jan-Jun
SEKm 2017 2017 % 2016 % 2017 2016 %
Profit for the period reported via income statement 3 402 3 586 -5 3 797 -10 6 988 13 307 -47
Total comprehensive income for the period 3 402 3 586 -5 3 797 -10 6 988 13 307 -47

Balance sheet, condensed
Parent company 30 Jun 31 Dec 30 Jun
SEKm 2017 2016 % 2016 %
Assets
Cash and balance with central banks 379 968 64 193 310 767 22
Loans to credit institutions 449 085 409 763 10 500 408 -10
Loans to the public 419 186 430 406 -3 476 464 -12
Interest-bearing securities 123 608 175 865 -30 153 584 -20
Shares and participating interests 74 881 82 267 -9 75 359 -1
Derivatives 84 496 96 243 -12 111 246 -24
Other assets 33 344 35 437 -6 41 667 -20
Total assets 1 564 568 1 294 174 21 1 669 495 -6
Liabilities and equity
Amounts owed to credit institutions 213 978 129 276 66 257 826 -17
Deposits and borrowings from the public 739 264 617 704 20 790 087 -6
Debt securities in issue 349 906 282 369 24 346 795 1
Derivatives 91 160 114 620 -20 117 310 -22
Other liabilities and provisions 49 689 27 390 81 45 760 9
Subordinated liabilities 32 522 27 254 19 22 702 43
Untaxed reserves 10 206 10 206 0 10 021 2
Equity 77 843 85 355 -9 78 994 -1
Total liabilities and equity 1 564 568 1 294 174 21 1 669 495 -6
Pledged collateral 43 418 33 624 29 47 895 -9
Other assets pledged 6 938 4 241 64 3 517 97
Contingent liabilities 574 577 588 167 -2 577 371 0
Commitments 232 027 232 134 0 225 160 3

Statement of changes in equity, condensed
Parent company
SEKm
Share
premium Statutory Retained
Share capital reserve reserve earnings Total
January-June 2016
Opening balance 1 January 2016 24 904 13 206 5 968 33 304 77 382
Dividend 0 0 0 -11 880 -11 880
Share based payments to employees 0 0 0 208 208
employees 0 0 0 -53 -53
employees 0 0 0 30 30
Total comprehensive income for the period 0 0 0 13 307 13 307
Closing balance 30 June 2016 24
24 904
904 13
13 206
206 5
5 968
968 34
34 916
916 78
78 994
994
January-December 2016
Dividend 0 0 0 -11 880 -11 880
employees 0 0 0 -13 -13
Closing balance 31 December 2016 24 904 13 206 5 968 41 277 85 355
January-June 2017
Dividend 0 0 0 -14 695 -14 695
employees 0 0 0 -29 -29
Closing balance 30 June 2017 24 904 13 206 5 968 33 765 77 843
Cash flow statement, condensed

Parent company Jan-Jun Full-year Jan-Jun
SEKm 2017 2016 2016
Cash flow from operating activities 238 488 -61 179 108 618
Cash flow from investing activities 5 601 13 493 17 694
Cash flow from financing activities 71 686 -19 980 52 596
Cash and cash equivalents at beginning of period 64 193 131 859 131 859
Cash and cash equivalents at end of period 379 968 64 193 310 767

Capital adequacy
Capital adequacy, Parent company 30 Jun 31 Dec 30 Jun
SEKm 2017 2016 2016
Common Equity Tier 1 capital 76 060 73 361 73 245
Additional Tier 1 capital 12 938 14 270 9 642
Tier 1 capital 88 998 87 631 82 887
Tier 2 capital 18 815 12 204 12 291
Total capital 107 813 99 835 95 179
Minimum capital requirement 25 184 23 537 25 133
Risk exposure amount 314 806 294 210 314 163
Common Equity Tier 1 capital ratio, % 24,2 24,9 23,3

Tier 1 capital ratio, % 28,3 29,8 26,4
Total capital ratio, % 34,3 33,9 30,3
Capital buffer requirement1) 30 Jun 31 Dec 30 Jun

% 2017 2016 2016
CET1 capital requirement including buffer requirements 8,4 8,3 8,3
of which minimum CET1 requirement 4,5 4,5 4,5
of which capital conservation buffer 2,5 2,5 2,5
of which countercyclical capital buffer 1,4 1,3 1,3
CET 1 capital available to meet buffer requirement 2) 19,7 20,4 18,8
Capital adequacy transition rules Basel 1 floor 3) 30 Jun 31 Dec 30 Jun

SEKm 2017 2016 2016
Capital requirement Basel 1 floor 28 470 29 553 29 157
Own funds Basel 3 adjusted according to rules for Basel 1 floor 108 329 100 318 95 721
Surplus of capital according to Basel 1 floor 79 859 70 765 66 564
Leverage ratio 30 Jun 31 Dec 30 Jun

% 2017 2016 2016
Tier 1 Capital, SEKm 88 998 87 631 82 887
4)
Total exposure, SEKm 1 225 224 1 004 780 1 414 356
Leverage ratio, % 4) 7,3 8,7 5,9
1)
Buffer requirement according to Swedish implementation of CRD IV.
2)
CET1 capital ratio as reported, less minimum requirement of 4.5% (excluding buffer requirements) and less any
CET1 items used to meet the Tier 1 and total capital requirements.
3)
Basel 1 floor based on the higher of the Basel 3 capital requirement and 80% of Basel 1 capital requirement. In the
latter case the own funds is adjusted according to CRR article 500.4.
4)
Taking into account exemption according to CRR article 429.7 excluding certain intragroup exposures.

Exposure amount, Risk exposure amount and Minimum capital requirement, parent
company
30 Jun 2017 Exposure amount Risk exposure Minimum capital
Credit risks, STD 1 041 894 79 279 6 342
Central government or central banks exposures 16 0 0
Regional governments or local authorities exposures 79 16 1
Retail exposures 486 363 29
Exposures secured by mortgages on immovable property 2 437 853 68
Other items 694 681 55
Credit risks, IRB 1 034 716 162 689 13 015
Central government or central banks exposures 451 999 6 284 503
of which specialized lending 0 0 0
Retail exposures 94 543 21 118 1 689
of which mortgage lending 13 547 2 843 227
Standardised approach 0 35 317 2 825
Additional risk exposure amount, Article 3 CRR 0 22 458 1 797
Total 2 096 819 314 806 25 184

Exposure amount, Risk exposure amount and Minimum capital requirement, parent
company
31 Dec 2016 Exposure amount Risk exposure Minimum capital
Credit risks, STD 1 230 996 76 530 6 122
Central government or central banks exposures 185 049 70 6
Retail exposures 656 490 39
Exposures secured by mortgages on immovable property 2 317 811 65
Other items 856 846 68
Credit risks, IRB 600 185 166 590 13 327
of which specialized lending 0 0 0
Retail exposures 91 458 21 429 1 714
of which mortgage lending 13 949 3 014 241
Standardised approach 0 35 659 2 853
Additional risk exposure amount, Article 3 CRR 0 458 37
Total 1 851 319 294 210 23 537

Alternative performance measures
Swedbank prepares its financial statements in accordance with IFRS as issued by the IASB, as set out in Note 1. The
interim report includes a number of alternative performance measures, which exclude certain items which management
believes are not representative of the underlying/ongoing performance of the business. Therefore the alternative
performance measures provide more comparative information between periods. Management believes that inclusion of
these measures provides information to the readers that enable comparability between periods. These alternative
performance measures are set out below.
Measure Definition Purpose

Net stable funding ratio NSFR aims to have a sufficiently large proportion of stable This measure is relevant
(NSFR) funding in relation to long-term assets. The measure is for investors since it will
governed by the EUs Capital Requirements Regulation (CRR); be required in the near
however no calculation methods have yet been established. future and as it is
Consequently, the measure cannot be calculated based on already followed as part
current rules. NSFR is presented in accordance with of internal governance.
Swedbanks interpretation of the Basel Committees
recommendation (BCBS295).
Net interest margin Net interest margin before trading interest is deducted is The presentation of this
before trading interest is calculated as Net interest income before trading interest is measure is relevant for
deducted deducted, in relation to average total assets. The average is investors as it considers
calculated using month-end figures, including the prior year all interest income and
end. interest expense,
independent of how it
The closest IFRS measure is Net interest income and can be has been presented in
reconciled in Note 5. the income statement.
Allocated equity Allocated equity is the operating segments equity measure and The presentation of this
is not a measure that is directly required by IFRS. The Groups measure is relevant for
equity attributable to shareholders is allocated to each operating investors since it used
segment based on capital adequacy rules and estimated capital by Group management
requirements based on the banks internal Capital Adequacy for internal governance
Assessment Process (ICAAP). and operating segment
performance
The allocated equity amounts per operating segment are management purposes.
reconciled to the Group Total equity, the nearest IFRS
measure, in Note 4.
Return on allocated Return on allocated equity for the operating segments is The presentation of this
equity calculated based on profit for the period for the operating measure is relevant for
segment (operating profit less estimated tax and non investors since it used
controlling interests), in relation to average allocated equity for by Group management
the operating segment. The average is calculated using month- for internal governance
end figures, including the prior year end. and operating segment
performance
The allocated equity amounts per operating segment are management purposes.
reconciled to the Group Total equity, the nearest IFRS
measure, in Note 4.
Effective tax rate The effective tax rate excluding the tax-exempt Hemnet The presentation of this
excluding tax-exempt disposal income is calculated as Adjusted operating profit in measure is relevant for
Hemnet income relation to Tax expense. investors as it provides
comparability of figures
Adjusted operating profit represents Operating profit excluding between reporting
the non-taxable one-off Hemnet income and is reconciled to periods.
Operating profit, the nearest IFRS measure below.
SEKm Q1 2017
Operating profit 6 307

Non-taxable one-off Hemnet income 680
Adjusted operating profit 5 627
Tax expense 181
Adjusted effective tax rate 21 %

Income statement Amounts related to Net gains and losses on financial items at The presentation of this
measures excluding one- fair value, Share of profit or loss of associates and other income measure is relevant for
off VISA and Hemnet are presented excluding the one-off income related to the VISA investors as it provides
income (2016) and Hemnet (2017). comparability of figures
between reporting
The amounts are reconciled to the relevant IFRS income periods.
statement lines on page 7.
Return on equity Profit for the period allocated to shareholders excluding one-off The presentation of this
excluding VISA and VISA and Hemnet income in relation to average Equity measure is relevant for
Hemnet income attributable to shareholders of the parent company. The investors as it provides
average is calculated using month-end figures, including the comparability of figures
prior year end. between reporting
periods.
Profit for the period allocated to shareholders excluding one-off
VISA (2016) and Hemnet (2017) income are reconciled to Profit
for the period allocated to shareholders, the nearest IFRS
measure on page 7.
Cost/Income ratio Total expenses in relation to total income excluding one-off The presentation of this
excluding VISA and VISA and Hemnet income. measure is relevant for
Hemnet income investors as it provides
Total income excluding one-off VISA (2016) and Hemnet (2016) comparability of figures
income are reconciled to Total income, the nearest IFRS between reporting
measure on page 7. periods.
The alternative performance measures set out below are The presentation of
calculated from the financial statements without adjustment. these measures is
relevant for investors
Cost/Income ratio Total expenses in relation to total income. since they are used by
Group management for
Credit Impairment ratio Credit impairment on loans and other credit risk provisions internal governance and
(annualised), net, in relation to the opening balance of operating segment
loans to credit institutions and loans to public after provisions. performance
management purposes.
Loan/Deposit ratio Lending to the public excluding Swedish National Debt Office
and repurchase agreements in relation to deposits from the
public excluding Swedish National Debt Office and repurchase
agreements.
Equity per share Shareholders equity in relation to the number of shares

outstanding.
Provision ratio for Provisions for impaired loans assessed individually in relation to
impaired loans impaired loans, gross.
Return on equity Profit for the period (annualised) allocated to shareholders in

relation to average equity attributable to shareholders of the
parent company. The average is calculated using month-end
figures, including the prior year end.
Share of impaired loans, Carrying amount of impaired loans, gross, in relation to the
gross carrying amount of loans to credit institutions and the public
excluding provisions.
Share of impaired loans, Carrying amount of impaired loans, net, in relation to the
net carrying amount of loans to credit institutions and the public.
Total provision ratio for All provisions (individually assessed and portfolio) for loans in
impaired loans relation to impaired loans, gross.

Signatures of the Board of Directors and the President
The Board of Directors and the President hereby certify that the interim report for January - June 2017 provides a fair and
accurate overview of the operations, position and results of the parent company and the Group and describes the
significant risks and uncertainties faced by the parent company and the companies in the Group.
Stockholm, 18 July 2017
Lars Idermark Ulrika Francke

Chair Deputy Chair
Bodil Eriksson Mats Granryd Bo Johansson

Board Member Board Member Board Member
Peter Norman Annika Poutiainen Siv Svensson Magnus Uggla

Board Member Board Member Board Member Board Member
Camilla Linder Roger Ljung

Board Member Board Member
Employee Representative Employee Representative
Birgitte Bonnesen
President and CEO
Review report
Introduction
We have reviewed the interim report for Swedbank AB (publ) for the period 1 January - 30 June 2017. The Board of
Directors and the President are responsible for the preparation and presentation of this interim report in accordance with
IAS 34 and the Annual Accounts Act for Credit Institutions and Securities Companies. Our responsibility is to express a
conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements (ISRE) 2410 Review of
Interim Financial Information performed by the companys auditors. A review consists of making inquiries, primarily with
persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review
is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing
practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us
aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review
does not give the same level of assurance as a conclusion expressed based on an audit.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report for the Group is
not, in all material aspects, in accordance with IAS 34 and the Annual Accounts Act for Credit Institutions and Securities
Companies and as regards the parent company in accordance the Annual Accounts Act for Credit Institutions and
Securities Companies.
Stockholm, 18 July 2017

Deloitte AB
Patrick Honeth
Authorised Public Accountant

Publication of financial information
The Groups financial reports can be found on www.swedbank.com/ir
Financial calendar 2017
Interim report for the third quarter 24 October 2017
Year-end report 2017 6 February 2018
For further information, please contact:

Birgitte Bonnesen Anders Karlsson Gregori Karamouzis
President and CEO CFO Head of Investor Relations
Telephone +46 8 585 906 53 Telephone +46 8 585 938 75 Telephone +46 72 740 63 38
Gabriel Francke Rodau Josefine Uppling

Head of Communications Press Officer
Telephone +46 8 585 921 07 Telephone +46 8 585 920 70
+46 70 144 89 66 +46 76 114 54 21
Information on Swedbanks strategy, values and share is also available on www.swedbank.com
Swedbank AB (publ)
Registration no. 502017-7753
Landsvgen 40
SE-105 34 Stockholm, Sweden
Telephone +46 8 585 900 00
www.swedbank.com
[email protected]

Interim Report Q2 2017

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Interim Report Q2 2017

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Interim report January - June 2017, 19 July 2017

Financial information Q2 Q1 Jan-Jun Jan-Jun

Swedbank Interim report Q2 2017 Page 1 of 56

The Swedish economy is being driven by consumer Birgitte Bonnesen

Swedbank Interim report Q2 2017 Page 2 of 56

Income statement, condensed 21

Swedbank Interim report Q2 2017 Page 3 of 56

Balance sheet data 30 Jun 31 Dec 30 Jun

Swedbank Interim report Q2 2017 Page 4 of 56

Swedbank Interim report Q2 2017 Page 5 of 56

Return on equity 15,7 14,6 17,4 13,9

Swedbank Interim report Q2 2017 Page 6 of 56

Swedbank Interim report Q2 2017 Page 7 of 56

portfolio amounted to about SEK 13bn in the last 12- 100

month period. For more information, see pages 46-47 of -3.6

the Fact book. 90

No incidents occurred in the second quarter that

bank suffered a payment-related disruption, due to

three hours, causing some delays.

The banks safeguards effectively blocked the global (consolida ted

cyberattacks in the quarter. Losses related to Incr ease Decrease

operational risks remained low.

Outstanding short-term funding, commercial paper and

Swedbank Interim report Q2 2017 Page 9 of 56

Swedbank Interim report Q2 2017 Page 11 of 56

Result Corporate lending decreased by SEK 3bn to SEK 249bn

Swedbank Interim report Q2 2017 Page 12 of 56

Other income increased, mainly due to the sale of

Credit impairments of SEK 83m were reported during

Swedbank Interim report Q2 2017 Page 14 of 56

Total expenses rose by 3 per cent in local currency. The

Net recoveries amounted to SEK 59m, compared with

Swedbank Interim report Q2 2017 Page 16 of 56

Elisabeth Beskow & Ola Laurin

January-June 2017 compared with January-June

Expenses increased to SEK 556m (442), mainly due to

Swedbank Interim report Q2 2017 Page 19 of 56

Income statement, condensed 21

Swedbank Interim report Q2 2017 Page 20 of 56

Interest income 8 688 8 334 4 7 714 13 17 022 15 983 7

Swedbank Interim report Q2 2017 Page 21 of 56

Total comprehensive income attributable to the

Swedbank Interim report Q2 2017 Page 22 of 56

Balance sheet analysis

Swedbank Interim report Q2 2017 Page 23 of 56

Other Exchange Hedging of net

Swedbank Interim report Q2 2017 Page 24 of 56

During the first quarter of 2017, the associated company

Swedbank Interim report Q2 2017 Page 25 of 56

Note 2 Critical accounting estimates

Note 3 Changes in the Group structure

Swedbank Interim report Q2 2017 Page 26 of 56

Balance sheet, SEKbn

Swedbank Interim report Q2 2017 Page 27 of 56

Balance sheet, SEKbn

Credit impairment ratio, % 2 -0,01 0,01 0,51 -0,27 0,00 0,08

Loans, SEKbn 3 1 096 136 188 0 0 1 420

Swedbank Interim report Q2 2017 Page 28 of 56

Note 5 Net interest income

Swedbank Interim report Q2 2017 Page 29 of 56