===== SIDA 1 ===== Swedbank – Report for the Second quarter│ 2024│1 Interim report Second quarter | January – June 2024 16 July 2024 ===== SIDA 2 ===== Swedbank – Report for the Second quarter│ 2024│2 Second quarter 2024 ”We create value for our customers and shareholders” Jens Henriksson President and CEO Financial information Q2 Q1 Jan-Jun Jan-Jun SEKm 2024 2024 % 2024 2023 % Total income 18 237 18 087 1 36 324 35 560 2 Net interest income 12 165 12 599 -3 24 764 24 704 0 Net commission income 4 169 3 976 5 8 145 7 472 9 Net gains and losses on financial items 911 682 34 1 593 1 441 11 Other income¹ 991 831 19 1 822 1 944 -6 Total expenses 6 465 6 185 5 12 650 12 127 4 of which administrative fines 0 0 0 887 Profit before impairments, bank taxes and resolution fees 11 772 11 902 -1 23 674 23 433 1 Impairment of tangible and intangible assets 32 0 32 11 Credit impairment -289 144 -145 965 Bank taxes and resolution fees 1 045 1 104 -5 2 149 1 362 58 Profit before tax 10 983 10 654 3 21 637 21 095 3 Tax expense 2 388 2 226 7 4 614 4 412 5 Profit for the period 8 595 8 428 2 17 023 16 683 2 Earnings per share, SEK, after dilution 7.61 7.47 15.08 14.80 Return on equity, % 17.5 16.9 17.1 18.6 C/I ratio 0.35 0.34 0.35 0.34 Common Equity Tier 1 capital ratio, % 20.1 19.3 20.1 18.6 Credit impairment ratio, % -0.06 0.03 -0.01 0.10 1) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures, and Other income from the Group income statement.  Strong profitability and high cost efficiency  Solid credit quality with recoveries during the quarter  Leading position in mortgages ===== SIDA 3 ===== Swedbank – Report for the Second quarter│ 2024│3 CEO Comment Swedbank again delivered a strong result. We create value for our customers and shareholders in good times and bad. Economic conditions in our four home markets continued to stabilise. Household purchasing power improved in Latvia and Lithuania thanks to strong wage growth and falling inflation. In Sweden and Estonia, households were somewhat more cautious. Next year, growth in all our four home markets is expected to be higher than in other European countries. Policy rates were cut by both the Riksbank and the European Central Bank. Looking ahead, we expect rates to be further reduced. Meanwhile, interest rates will remain high for longer. Swedbank’s result for the quarter amounted to SEK 8 595m and the return on equity was 17.5 per cent. Net interest income decreased, while commission income increased. Expenses increased and the cost/income ratio rose slightly to 0.35. Credit quality is solid and we saw credit recoveries, mainly attributable to an improved macroeconomic outlook. Swedbank is maintaining strict cost control. The temporary hiring freeze is having effect and the number of employees decreased in June. The higher investment rate from the previous quarter remains. Swedbank is the leader in mortgage loans in all our home markets and we are maintaining this position despite tough competition. Loan demand remained stable in Estonia, Latvia and Lithuania. In Sweden, demand for loan commitments increased, but the overall loan volumes remained muted. Competition for deposits is high. A strong savings culture is being developed in Estonia, Latvia and Lithuania and deposits are stable, supported by strong household finances. In Sweden, we saw an increase in monthly savings even though households were squeezed by high interest rates. Swedbank’s 15/25 strategy included the target of maintaining a sustainable return on equity of at least 15 per cent. We are achieving this by leveraging our business model, growing the share of wallet, growing in prioritised segments, and improving operational efficiency. Through our cloud-based communication platform, we have, among other things, increased the capacity for advisory meetings, and we were able to distribute nearly 1 million calls through the Swedish branch network during the quarter. The work that is being carried out in our new business area, Premium and Private Banking, is producing results. Since the start of the year, the number of customers that have newly chosen the Private Banking concept has increased by 7 per cent. The migration of customers to our new and modern savings platform continued. The platform enhances our ability to support our customers improving their financial health, which creates business opportunities. Corporate lending is performing strongly in Lithuania. This is the result of an increased focus on both existing and potential customers, improved service quality and customised financing solutions. During the quarter, we took another step in our Nordic strategy by partnering with the Finnish bank Aktia, thereby expanding our corporate offering in Finland in the same way as we have done with partnerships in Norway and Denmark. Swedbank works systematically and continuously to fight financial crime and the risk of fraud. To further strengthen this work, the Group Function Anti-Financial Crime (AFC) was integrated into Group Products and Advice (GPA), moving these operations closer to the bank’s customer, product and service offerings with digital execution in focus. AFC is renamed Economic Crime Prevention (ECP). During the quarter, we laid a stable foundation for personalised fraud protection. In a new security portal in our internet bank and app, customers now set transaction amount limits themselves. We adopted a climate target in May for our shipping portfolio, so that climate considerations are integrated into the bank’s loan decisions for ship finance. Together with our customers, we are creating a financially sound and sustainable society – built on financial health for the many. It is gratifying to see an increased interest in pension savings in the shape of unit-linked life insurance. Swedbank Försäkring is now the largest unit-linked life insurance company measured by both premium payments and assets under management. Our customers’ future is our focus. Jens Henriksson President and CEO ===== SIDA 4 ===== Swedbank – Report for the Second quarter│ 2024│4 Table of Contents Financial overview 5 Notes to the financial statements Important to note 6 Note 1 Accounting policies 22 Group development 6 Note 2 Critical accounting estimates 22 Volume trend by product area 7 Note 3 Changes in the Group structure 22 Credit and asset quality 9 Note 4 Operating segments (business areas) 23 Funding and liquidity 9 Ratings 9 Note 5 Net interest income 27 Operational risks 9 Note 6 Net commission income 28 Capital and capital adequacy 9 Note 7 Net gains and losses on financial items 29 Investigations 10 Other events 10 Note 8 Net insurance income 30 Events after the end of the period 11 Note 9 Other general administrative expenses 30 Business areas Swedish Banking 12 Note 10 Credit impairment 31 Baltic Banking 13 Note 11 Bank taxes and resolution fees 34 Corporates and Institutions 14 Note 12 Loans 35 Premium and Private Banking 15 Note 13 Credit impairment provisions 37 Group Functions and Other 16 Note 14 Credit risk exposures 39 Financial statements - Group Note 15 Intangible assets 40 Income statement, condensed 17 Note 16 Amounts owed to credit institutions 40 Statement of comprehensive income, condensed 18 Note 17 Deposits and borrowings from the public 40 Balance sheet, condensed 19 Statement of changes in equity, condensed 20 Note 18 Debt securities in issue, senior non-preferred liabilities and subordinated liabilities 41 Cash flow statement, condensed 21 Note 19 Derivatives 41 Note 20 Valuation categories for financial instruments 42 Note 21 Financial instruments recognised at fair value 44 Note 22 Assets pledged, contingent liabilities and commitments 45 Note 23 Offsetting financial assets and liabilities 46 Note 24 Capital adequacy, consolidated situation 47 Note 25 Internal capital requirement 49 Note 26 Risks and uncertainties 49 Note 27 Related-party transactions 50 Note 28 Swedbank’s share 51 Financial statements – Swedbank AB 52 Alternative performance measures 57 Signatures of the Board of Directors and the President 59 Review report 60 Publication of financial information 61 More detailed information be found in Swedbank’s Fact book, www.swedbank.com/factbook ===== SIDA 5 ===== Swedbank – Report for the Second quarter│ 2024│5 Financial overview Income statement Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 % 2023 % 2024 2023 % Net interest income 12 165 12 599 -3 12 768 -5 24 764 24 704 0 Net commission income 4 169 3 976 5 3 811 9 8 145 7 472 9 Net gains and losses on financial items 911 682 34 524 74 1 593 1 441 11 Other income¹ 991 831 19 1 069 -7 1 822 1 944 -6 Total income 18 237 18 087 1 18 173 0 36 324 35 560 2 Staff costs 3 784 3 700 2 3 417 11 7 484 6 883 9 Other expenses 2 681 2 485 8 2 303 16 5 166 4 358 19 Administrative fines 0 0 -3 0 887 Total expenses 6 465 6 185 5 5 717 13 12 650 12 127 4 Profit before impairments, bank taxes and resolution fees 11 772 11 902 -1 12 456 -5 23 674 23 433 1 Impairment of tangible and intangible assets 32 0 11 32 11 Credit impairment -289 144 188 -145 965 Bank taxes and resolution fees 1 045 1 104 -5 844 24 2 149 1 362 58 Profit before tax 10 983 10 654 3 11 414 -4 21 637 21 095 3 Tax expense 2 388 2 226 7 2 291 4 4 614 4 412 5 Profit for the period 8 595 8 428 2 9 123 -6 17 023 16 683 2 1) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures, and Other income from the Group income statement. Q2 Q1 Q2 Jan-Jun Jan-Jun Key ratios and data per share 2024 2024 2023 2024 2023 Return on equity, % 17.5 16.9 20.4 17.1 18.6 Earnings per share before dilution, SEK² 7.64 7.49 8.11 15.13 14.84 Earnings per share after dilution, SEK² 7.61 7.47 8.09 15.08 14.80 C/I ratio 0.35 0.34 0.31 0.35 0.34 Equity per share, SEK¹ 177.4 170.7 164.1 177.4 164.1 Loans to customers/deposit from customers ratio, % 140 141 139 140 139 Common Equity Tier 1 capital ratio, % 20.1 19.3 18.6 20.1 18.6 Tier 1 capital ratio, % 22.7 21.9 20.4 22.7 20.4 Total capital ratio, % 25.0 24.3 23.7 25.0 23.7 Credit impairment ratio, % -0.06 0.03 0.04 -0.01 0.10 Share of Stage 3 loans, gross, % 0.53 0.52 0.34 0.53 0.34 Total credit impairment provision ratio, % 0.36 0.40 0.38 0.36 0.38 Liquidity coverage ratio (LCR), %² 175 180 165 175 165 Net stable funding ratio (NSFR), % 124 126 123 124 123 1) The number of shares and calculation of earnings per share are specified in Note 28. 2) The liquidity coverage ratio has been re-calculdated and figures prior to 2024 have been adjusted. Balance sheet data 30 Jun 31 Dec 30 Jun SEKbn 2024 2023 % 2023 % Loans to customers 1 799 1 782 1 1 803 0 Deposits from customers 1 282 1 230 4 1 298 -1 Equity attributable to shareholders of the parent 200 199 0 185 8 Total assets 3 068 2 856 7 3 050 1 Risk exposure amount 848 847 0 819 4 Definitions of all key ratios can be found in Swedbank’s Fact book on page 77. ===== SIDA 6 ===== Swedbank – Report for the Second quarter│ 2024│6 Important to note This interim report contains alternative performance measures that Swedbank considers valuable information for the reader, since they are used by the executive management for internal governance and performance measurement as well as for comparisons between reporting periods. Further information on the alternative performance measures used in the interim report can be found on page 57. Group development Result second quarter 2024 compared to first quarter 2024 Swedbank’s profit increased to SEK 8 595m (8 428). Income increased, as did expenses and the tax expense, while credit impairments decreased. Foreign exchange effects positively impacted profit by SEK 98m before impairments, bank taxes and resolution fees. The return on equity was 17.5 per cent (16.9) and the cost/income ratio was 0.35 (0.34). Income increased to SEK 18 237m (18 087) due to higher net gains and losses on financial items, net commission income and other income. Net interest income decreased. Foreign exchange effects positively impacted income by SEK 149m. Net interest income decreased by 3 per cent to SEK 12 165m (12 599). The decrease was mainly related to increased expenses for market funding. Lower deposit margins also contributed due to a combination of a continued higher share of deposit volume at higher interest rates, as well as lower market interest rates. Net interest income on lending increased slightly. Net commission income increased by 5 per cent to SEK 4 169m (3 976). Income from asset management increased, mainly due to a market upturn. Income from the card business was seasonally higher and commissions from service concepts rose. Net gains and losses on financial items increased by 34 per cent to SEK 911m (8682). The largest part of the change was related to higher income from FX trading within Corporates and Institutions as well as positive valuation effects on interest rate derivatives within Group Treasury. Other income increased by 19 per cent to SEK 991m (831). The increase was mainly related to the cooperation with savings banks, net insurance and the result from partly owned companies. Expenses increased by 5 per cent to SEK 6 465m (6 185) due to higher staff costs, IT expenses and marketing expenses. Staff costs increased mainly due to the annual salary review in the Baltic countries, but also because there were more employees on average during the quarter. IT development and maintenance contributed to higher expenses. Marketing expenses were mainly driven by a donation to one of the educational foundations Swedbank has established in Latvia. Foreign exchange effects increased expenses by SEK 50m. Credit impairments were net positive and comprised recoveries of SEK -289m (144). Updated macroeconomic scenarios of SEK -253m (25) as well as decreased post model adjustments of SEK -43m (-349) contributed positively. A positive profit effect of SEK - 137 from the sale of loans also contributed. This was partly offset by rating and stage migrations of SEK 282m (403) and individually assessed loans of SEK 207m (302). Bank taxes and resolution fees amounted to SEK 1 045m (1 104). The tax expense amounted to SEK 2 388m (2 226) and corresponded to an effective tax rate of 21.7 per cent (20.9). The higher effective tax rate in the second quarter was mainly due to non-deductible decreases in the market value of equities. Result January-June 2024 compared to January-June 2023 Swedbank’s profit increased to SEK 17 023m (16 683) due to higher income and lower credit impairments, partly offset by higher expenses. Expenses increased mainly due to increased staff costs and IT expenses. Bank taxes in the Baltic countries negatively impacted profit. Foreign exchange effects positively impacted profit by SEK 19m before impairments, bank taxes and resolution fees. The return on equity was 17.1 per cent (18.6) and the cost income ratio was 0.35 (0.34). Jan-Jun Jan-Jun Jan-Jun Income statement, SEKm 2024 2023¹ 2023 Total income 36 324 35 560 35 560 Total expenses 12 650 11 240 12 127 of which administrative fines 0 887 Profit before tax 21 637 21 982 21 095 Profit for the period 17 023 17 570 16 683 Return on equity, % 17.1 19.6 18.6 C/I ratio 0.35 0.32 0.34 1) Income statement excluding expenses for the administrative fines. Income increased to SEK 36 324m (35 560) mainly due to higher net commission income. Net gains and losses on financial items also contributed, while net interest income was stable. Other income decreased. Foreign exchange effects positively impacted profit by SEK 31m. Net interest income amounted to SEK 24 764m (24 704). Net interest income was positively impacted mainly by higher deposit margins resulting from higher market rates, partly offset by higher funding costs. Higher business volumes also had a positive impact. ===== SIDA 7 ===== Swedbank – Report for the Second quarter│ 2024│7 Net commission income increased by 9 per cent to SEK 8 145m (7 472). The increase was primarily related to asset management, which benefitted from the upturn in market values. Net gains and losses on financial items increased by 11 per cent to SEK 1 593m (1 441), driven by equity and fixed income trading, valuation effects from derivatives and increased earnings from financing activity within Corporates and Institutions. The result was partly offset by negative valuation effects within Group Treasury. Other income fell by 6 per cent to SEK 1 822m (1 944). The decrease mainly related to valuation effects within the insurance business and a lower result from partly owned companies. Expenses increased by 4 per cent to SEK 12 650m (12 127). The increase was mainly driven by higher staff costs related to higher salaries and more employees, as well as higher IT expenses. The increase compared to the same period in 2023 was lower due to the Swedish FSA’s administrative fine and the settlement with OFAC in the first quarter of 2023. Credit impairments were net positive at SEK -145m (965). Improved macroeconomic scenarios and decreased post model adjustments were partly offset by negative rating and stage migrations as well as increased provisions for individually assessed loans. Positive profit effects of SEK -137m from the sale of loans contributed. Bank taxes and resolution fees amounted to SEK 2 149m (1 362). The increase was mainly due to the fact that Lithuania and Latvia introduced temporary bank taxes. The income tax expense amounted to SEK 4 614m (4 412), corresponding to an effective tax rate of 21.3 per cent (20.9). The higher effective tax rate in 2024 is mainly due to a higher tax expense both in Estonia as a result of a higher corporate tax rate, and in Sweden due to an increase in non-deductible interest expenses for subordinated loans. Volume trend by product area Swedbank mainly conducts business in the product areas of lending, deposits, fund savings and life insurance, and payments. Lending Lending to customers increased by SEK 8bn to SEK 1 799bn (1 791) during the quarter. Compared to the same quarter in 2023, lending decreased by SEK 4bn. Foreign exchange effects negatively impacted lending volumes by SEK 5bn compared to the first quarter of 2024, and negatively by SEK 12bn compared to the same quarter in 2023. 30 Jun 31 Mar 30 Jun Loans to customers, SEKbn 2024 2024 2023 Loans, private mortgage 1 041 1 040 1 036 of which Sweden 916 914 911 of which Baltic countries 125 126 125 Loans, private other incl tenant- owner associations 144 143 145 of which Sweden 118 118 121 of which Baltic countries 26 25 24 Loans, corporate 614 607 621 of which Sweden 427 425 448 of which Baltic countries 117 115 106 of which other¹ 71 67 67 Total 1 799 1 791 1 803 1) Other consist of loans in Norway, Finland, China, the USA and Denmark. In Sweden, lending to customers increased by SEK 4bn to SEK 1 461bn (1 457). Compared to the same quarter in 2023, lending decreased by SEK 19bn. Lending to mortgage customers in Sweden increased by SEK 2bn during the quarter to SEK 916bn (914). Compared to the same quarter in 2023, lending to mortgage customers increased by SEK 5bn. The market share for mortgages in Sweden was 22 per cent as of 31 May. Other private lending in Sweden, including to tenant- owner associations, was unchanged at SEK 118bn (118) during the quarter. Corporate lending in Sweden increased by SEK 2bn during the quarter and amounted to SEK 427bn (425). Compared to the same quarter in 2023, corporate lending decreased by SEK 21bn. In Sweden, the market share was 15 per cent as of 31 May. In the Baltic countries, lending volume increased by 2 per cent in local currency during the quarter. Lending to mortgage customers increased by 1 per cent, while lending to corporate customers increased by 3 per cent in local currency. Volumes in the sustainable asset registry increased by SEK 7bn to SEK 90bn (83) during the quarter. The increase was primarily related to financing of green buildings. At the end of the quarter, the registry contained SEK 83bn in green assets and SEK 7bn in social assets. For more information on lending and the sustainable assets registry, see pages 37 and 70 of the Fact book. Deposits Total deposits increased by SEK 16bn to SEK 1 282bn (1 266) compared to the previous quarter. Foreign exchange effects negatively impacted total deposit volume by SEK 6bn compared to the previous quarter and negatively by SEK 2bn compared to the same quarter in 2023. ===== SIDA 8 ===== Swedbank – Report for the Second quarter│ 2024│8 30 Jun 31 Mar 30 Jun Deposits from customers, SEKbn 2024 2024 2023 Deposits, private 728 712 718 of which Sweden 484 472 483 of which Baltic countries 244 240 235 Deposits, corporate 554 554 579 of which Sweden 391 394 425 of which Baltic countries 159 157 152 of which other¹ 2 1 5 Total 1 282 1 266 1 298 1) Other consist of deposits in Norway, Finland, China, the USA and Denmark. Deposits in Sweden increased by SEK 9bn to SEK 875bn (866). Deposits from private customers in Sweden increased by SEK 12bn to SEK 484bn (472), while corporate deposits decreased by SEK 3bn to SEK 391bn (394). Compared to the same quarter in 2023, deposits in Sweden decreased by SEK 33bn. In the Baltic countries, deposits in local currency increased by 3 per cent in the quarter. Deposits from both private and corporate customers increased by 3 per cent. Compared to the same quarter in 2023, deposits increased by 3 per cent in local currency. As of 31 May, Swedbank’s market share for deposits from private customers in Sweden was 18 per cent. The market share for corporate deposits as of 31 May was 14 per cent. For more information on deposits, see page 38 of the Fact book. Assets under management Fund assets under management increased by 4 per cent in the second quarter to SEK 1 874bn (1 809). The increase was predominantly due to the market upturn, but net inflows also contributed. Asset management 30 Jun 31 Mar 30 Jun (including life insurance) SEKbn 2024 2024 2023 Sweden 1 754 1 692 1 477 Estonia 31 30 27 Latvia 44 43 37 Lithuania 43 41 35 Other countries 3 3 2 Total Mutual funds under Management 1 874 1 809 1 578 Closed End Funds 1 1 1 Discretionary asset management 462 451 406 Total assets under Management 2 336 2 261 1 984 The net inflow in the Swedish fund market amounted to SEK 80bn (23). The net inflow to Swedbank Robur’s funds in Sweden was at the same level, SEK 10bn (10), as the previous quarter. Distributions from both Swedbank and the savings banks, as well as third-party distributions, contributed positive net inflows. In Estonia, Latvia and Lithuania, the net inflow amounted to SEK 2bn (2). By assets under management, Swedbank Robur is the leader in the Swedish and Baltic fund markets. As of 30 June, the market share in Sweden was 22 per cent. In Estonia, Latvia and Lithuania, the market share was 39, 40 and 38 per cent, respectively. Life insurance assets under management in the Swedish operations increased by 4 per cent during the second quarter and amounted as of 30 June to SEK 392bn (377). Premium income, consisting of premium payments and capital transfers, amounted to SEK 10bn in the second quarter (10). Assets under management, life 30 Jun 31 Mar 30 Jun insurance SEKbn 2024 2024 2023 Sweden 392 377 327 of which collective occupational pensions 226 216 182 of which endowment insurance 105 102 93 of which occupational pensions 49 47 41 of which other 12 12 11 Baltic countries 10 10 9 Total assets under management 402 387 337 For premium income to all types of assets under management, excluding capital transfers, Swedbank’s market share in the first quarter (latest available information) was 7 per cent (6 per cent in the fourth quarter of 2023). In the transfer market, Swedbank’s market share in the first quarter was 10 per cent (9). Payments The total number of card transactions acquired by Swedbank during the quarter was 987 million, 4 per cent higher than the same period in 2023. The total number of transactions acquired in Sweden, Norway, Finland and Denmark increased by 26 million, or 3 per cent, while total transactions increased by 7 per cent in the Baltic countries. Acquired transaction volumes increased in Sweden, Norway, Finland and Denmark by 2 per cent to SEK 235bn and in the Baltic countries by 5 per cent to SEK 38bn compared to the same quarter in 2023. The higher transaction volume comes from a combination of sales growth in consumer staples, a decrease in hotel and restaurant sales, and lower volumes from fuels due to lower prices. The total number of Swedbank cards in issue at the end of the quarter was 8.5 million, which is slightly higher than the end of the previous quarter. 30 Jun 31 Mar 30 Jun Number of cards 2024 2024 2023 Issued cards, millon 8.5 8.4 8.4 of which Sweden 4.5 4.5 4.5 of which Baltic countries 4.0 3.9 3.9 The number of purchases in Sweden with Swedbank cards increased by 1 per cent during the quarter compared to the same quarter in 2023. A total of 389 million card purchases were made. In the Baltic countries, the number of card purchases increased by 7 per cent in the same period to 263 million during the quarter. ===== SIDA 9 ===== Swedbank – Report for the Second quarter│ 2024│9 In Sweden, a total of 225 million domestic payments were made during the quarter, in line with the same period in 2023. Swedbank’s market share of payments executed via Bankgirot was 34 per cent. In the Baltic countries, 132 million domestic payments were processed, an increase of 12 per cent compared to the same period in 2023. The number of international payments in Sweden increased by 8 per cent compared to the same quarter in 2023 and amounted to 1.9 million. In the Baltic countries, international payments increased by 18 per cent to 8 million. Credit and asset quality The credit quality of Swedbank’s lending was solid, while improved macroeconomic scenarios as well as the effect from the sale of loans contributed to credit recoveries. Total credit impairment provisions amounted to SEK 7 731m (8 463), of which SEK 946m (996) was post model adjustments. In the Swedish mortgage business, loans with late payments and forborne loans increased more slowly than the previous quarter. The total share of loans in stage 2, gross, amounted to 9.2 per cent (10.2). For personal loans, the corresponding share was 6.8 per cent (7.4) and for corporate loans it was 14.5 per cent (16.3). The share of loans in stage 3, gross, was 0.53 per cent (0.52). For more information on credit exposures, provisions and credit quality, see notes 10 and 12-14 as well as pages 40-48 of the Fact book. Funding and liquidity With Swedish inflation approaching the Riksbank’s target, the Riksbank cut the policy rate by 0.25 percentage points in May. This contributed to lower interest rates in Sweden during the quarter. As inflation remained high, primarily in the U.S., international rates fell at a slightly slower pace. The willingness to invest was high, which meant that credit spreads continued to decrease. Swedbank was active in the funding markets. During the quarter, issuance primarily consisted of covered bonds in SEK, but also a green senior non-preferred bond in EUR. In total, Swedbank issued SEK 41bn in long-term debt instruments during the quarter. As of 30 June, Swedbank’s outstanding short-term funding in issue amounted to SEK 323bn (349). The need for financing is affected by the current liquidity situation, future maturities, and changes in deposit and lending volumes, and therefore is adjusted over the course of the year. For more information on funding and liquidity, see notes 16-18 and pages 57–69 of the Fact book. 30 Jun 31 mar 30 jun Liquid assets and ratios 2024 2024 2023 Cash and balances with central banks and the National Debt Office, SEKbn 322 347 352 Liquidity reserve, SEKbn 656 665 672 Liquidity coverage ratio (LCR), %¹² 175 180 165 Net stable funding ratio (NSFR), % 124 126 123 1) USD 252 %; EUR 242 %; SEK 109 % 2) The liquidity coverage ratio has been re-calculdated and figures prior to 2024 have been adjusted. Ratings During the quarter, Moody’s changed its outlook on Swedbank’s long-term debt ratings to positive based on an assessment that the work the bank has done to alleviate previous shortcomings has led to lower risks relating to money laundering. No other changes were made to Swedbank’s ratings. For more information on the ratings, see page 69 of the Fact book. Credit ratings Moody's S&P Fitch Covered bonds Aaa AAA - Senior preferred Aa3 A+ AA Senior non-preferred Baa1 A- AA- Tier 2 Baa2 BBB+ A Additional tier 1 Ba1 BBB- BBB+ Short term P-1 A-1 F1+ Outlook¹ P S S 1) P=positive, S=stable, N=negative, RuR= Rating(s) under Review and WN= Watch Negative Operational risks Swedbank works continuously to ensure a high level of availability and security for customers. Swedbank periodically tests the resilience to cyberthreats. Given the geopolitical situation, information security and cybersecurity remained high priorities. Some payment- related incidents occurred during the quarter, which caused brief disruptions. The bank is closely collaborating with other members of the Swedish Bankers’ Association with the goal of drawing up industry-wide guidelines for protecting customers against fraud. Swedbank invests in and continuously improves technology and implements controls in its digital channels to fight financial crime and protect the bank’s customers. Capital and capital adequacy Capital ratio and capital requirement The Common Equity Tier 1 (CET1) capital ratio was 20.1 per cent (19.3) at the end of the quarter. The total CET1 capital requirement, including Pillar 2 guidance, was 15.1 per cent (15.1) of the Risk Exposure Amount (REA), which resulted in a CET1 capital buffer of 5.0 per cent (4.2). CET1 capital increased to SEK 171bn (166) and was mainly affected by the quarterly profit net of anticipated dividend. ===== SIDA 10 ===== Swedbank – Report for the Second quarter│ 2024│10 Change in Common Equity Tier 1 capital (Refers to Swedbank consolidated situation) Risk Exposure Amount (REA) REA decreased to SEK 848bn (859) in the second quarter. During the quarter, a change was made to the probability of default (PD) assignment process and classification of exposures, which led to a decrease in REA for credit risk of SEK 10bn, mainly attributable to the migration of tenant-owner associations from households to corporates, thereby reducing exposures covered by the mortgage floor. This was partly offset by an increase in REA for credit risk mainly due to increased volumes. Furthermore, REA for credit risks increased by SEK 6bn due to the completion of the implementation of the new PD model for exposures to large corporates. This was offset by a decrease in REA for Article 3 according to the EU’s regulation on prudential requirements for credit institutions (CRR) of SEK 10bn, of which SEK 8bn that have been held for implementation of the new PD model in connection with the completion of the migrations. REA for market risk decreased by SEK 1bn, mainly through a decrease in REA for internal models. Change in REA (Refers to Swedbank consolidated situation) The leverage ratio was 6.7 per cent (6.4) and therefore exceeds the leverage ratio requirement including Pillar 2 guidance of 3.5 per cent. Capital and resolution regulations The Swedish FSA has announced that it intends to extend the risk weight floors for mortgages and commercial real estate through 2027. The FSA anticipates a continued need for macroprudential measures in the form of risk weight floors until the regulatory capital floor for internal models under the EU’s revised Capital Requirements Regulation (CRR 3) (implementation of Basel III) has an equivalent effect. Due to the guidelines from the European Banking Authority (EBA), as well as adaptations to CRR 3, Swedbank is applying for approval of new internal models for risk classification. The review process is expected to continue with the gradual implementation through 2026 and is conditional on the authorities’ decisions. Swedbank previously decided on an Article 3 add-on corresponding to the bank’s estimate of the remaining impact on REA of the remaining risk classification models. This add-on has been reduced to SEK 17bn due to the phase-in that has occurred. The Swedish FSA has also introduced a temporary add-on of 1 per cent in the Pillar 2 requirement (P2R) related to the ongoing review of the models. The Resolution Act, which entered into force in 2021, applies the MREL requirement as of 1 January 2024. Swedbank meets the requirements by a wide margin. The revised Capital Requirements Regulation CRR 3 takes effect in 2025 with a phase-in period through 2032. The revisions include changes to the standardised approaches and internal models used to calculate capital requirements for credit, market and operational risk, as well as a output floor for internal models. The regulation is expected only to result in a limited increase in the REA. Investigations U.S. authorities continue to investigate Swedbank’s historical anti-money laundering and counter-terrorism financing work and historical information disclosures. The investigations, which are being conducted by the Department of Justice (DoJ), the Securities and Exchange Commission (SEC) and the Department of Financial Services in New York (DFS), are continuing and the bank is holding individual discussions with the authorities through its U.S. legal advisors. The investigations are at different stages and the bank cannot at this time determine any financial consequences or when the investigations will be completed. Other events On 25 April, it was announced that Anti-Financial Crime (AFC) will be integrated into Group Products and Advice (GPA). The change is being made to further strengthen Swedbank’s ability to fight financial crime in a more effective way. Meanwhile, the unit is changing its name to Economic Crime Prevention (ECP). On 20 June, the Swedish FSA ordered Handelsbanken, SEB and Swedbank to address shortcomings in the payment infrastructure. Together with the other banks ===== SIDA 11 ===== Swedbank – Report for the Second quarter│ 2024│11 that own Bankgirot, a process is underway to address these shortcomings. Swedbank has invested EUR 4m in the agricultural technology company eAgronom and will become a minority owner. Together with eAgronom, Swedbank offers financing solutions in the Baltic countries for investments in sustainable agriculture. Events after the end of the period No significant events have taken place after the end of the period. ===== SIDA 12 ===== Swedbank – Report for the Second quarter│ 2024│12 Swedish Banking Income statement Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 % 2023¹ % 2024 2023¹ % Net interest income 4 366 4 650 -6 5 248 -17 9 016 10 438 -14 Net commission income² 1 917 1 803 6 1 799 7 3 721 3 514 6 Net gains and losses on financial items 70 63 10 47 49 133 105 26 Other income³ 409 243 68 437 -6 652 748 -13 Total income 6 762 6 760 0 7 532 -10 13 522 14 805 -9 Staff costs 485 513 -6 466 4 998 939 6 Variable staff costs 14 16 -11 7 30 17 78 Other expenses 1 665 1 647 1 1 641 1 3 311 3 073 8 Depreciation/amortisation of tangible and intangible assets 4 4 -1 5 -21 8 10 -25 Total expenses 2 167 2 179 -1 2 119 2 4 347 4 039 8 Profit before impairments, bank taxes and resolution fees 4 595 4 580 0 5 413 -15 9 175 10 765 -15 Credit impairment -154 83 76 -70 381 Bank taxes and resolution fees 215 212 1 207 4 427 438 -2 Profit before tax 4 533 4 285 6 5 130 -12 8 818 9 947 -11 Tax expense 854 819 4 962 -11 1 673 1 888 -11 Profit for the period 3 680 3 465 6 4 168 -12 7 145 8 059 -11 Return on allocated equity, % 27.5 25.7 31.7 26.7 30.7 Loan/deposit ratio, % 185 191 188 185 188 Credit impairment ratio, % -0.07 0.04 0.03 -0.02 0.09 Cost/income ratio 0.32 0.32 0.28 0.32 0.27 Loans to customers, SEKbn 850 853 0 870 -2 850 870 -2 Deposits from customers, SEKbn 460 446 3 464 -1 460 464 -1 Full-time employees 2 559 2 633 -3 2 417 6 2 559 2 417 6 1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more information, see Note 4. 2) Comparative figures related to Net commission income have been restated during Q2 2024 for the Swedish business areas. 3) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and Other income f rom the Group income statement. Business development In Sweden, demand for loan commitments increased, but in terms of actual mortgage volumes the market remained cautious. Monthly savings to funds and savings accounts grew. Customer availability increased thanks to the implementation of the cloud-based communication platform. The customer experience was also enhanced through new digital features for personal insurance. Customers can now make changes digitally when scheduling payment of their pension insurance in the portal Mina Försäkringar (“My Insurance”). Fraud protection was expanded with features that allow customers to choose their personal limits on transfers and foreign payments. Swedbank launched a campaign called “Now we are helping the country’s 18-year-olds keep better track of their money. One problem less.” In connection with the campaign, 18-year-olds have been invited to the bank’s branches to receive tools to improve their financial health. Profit increased during the quarter mainly driven by lower credit impairments. Net interest income decreased, mainly through lower earnings on deposits. Mortgage volume in Swedish Banking decreased by SEK 1bn and corporate deposits by SEK 2bn, partly due to customer transfers to other units. Deposit volumes increased by SEK 13bn, with household deposits increasing by SEK 11bn and corporate deposits by SEK 2bn. Net commission income increased, mainly driven by higher income from cards and asset management. Other income increased, mainly due to increased profits from Bankgirot and Entercard. Expenses decreased mainly driven by lower staff costs. Credit impairments were net positive and amounted to SEK -154m (83). Positive effects from updated macroeconomic scenarios and from the sale loans were partly offset by negative rating and stage migrations. ===== SIDA 13 ===== Swedbank – Report for the Second quarter│ 2024│13 Baltic Banking Income statement Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 % 2023¹ % 2024 2023¹ % Net interest income 4 541 4 604 -1 4 629 -2 9 145 8 569 7 Net commission income 876 806 9 856 2 1 682 1 672 1 Net gains and losses on financial items 136 135 0 140 -3 271 273 -1 Other income² 156 184 -15 231 -33 339 438 -23 Total income 5 709 5 729 -0 5 855 -3 11 438 10 952 4 Staff costs 530 473 12 478 11 1 003 954 5 Variable staff costs 37 25 49 30 26 62 48 29 Other expenses 1 077 906 19 817 32 1 983 1 550 28 Depreciation/amortisation of tangible and intangible assets 44 43 2 46 -6 87 92 -5 Total expenses 1 688 1 448 17 1 371 23 3 136 2 644 19 Profit before impairments, bank taxes and resolution fees 4 021 4 281 -6 4 485 -10 8 302 8 308 -0 Impairment of tangible and intangible assets -0 0 0 0 0 -56 Credit impairment -15 6 -26 -43 -9 -55 -83 Bank taxes and resolution fees 557 621 -10 349 60 1 179 373 Profit before tax 3 478 3 654 -5 4 161 -16 7 132 7 990 -11 Tax expense 713 737 -3 771 -8 1 450 1 463 -1 Profit for the period 2 765 2 917 -5 3 390 -18 5 682 6 526 -13 Return on allocated equity, % 30.6 33.1 42.2 32.2 41.1 Loan/deposit ratio, % 66 67 66 66 66 Credit impairment ratio, % -0.02 0.01 -0.04 -0.01 -0.05 Cost/income ratio 0.30 0.25 0.23 0.27 0.24 Loans to customers, SEKbn 268 266 0 255 5 268 255 5 Deposits from customers, SEKbn 403 398 1 387 4 403 387 4 Full-time employees 4 766 4 790 0 4 706 1 4 766 4 706 1 1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more information, see Note 4. 2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and Other income from the Group income statement. Business development A resilient labour market, increased purchasing power and a rate cut by the ECB improved consumer confidence in the Baltic countries. Purchasing power for home purchases rose. Swedbank has strengthened its position in the Lithuanian corporate lending market due to proactivity and strong advisory expertise. The bank arranged loans as part of the European Investment Fund’s guarantee programme, which aims to make loans available to SMEs. Swedbank’s campaign for sustainable mortgages continued in all three countries. In Lithuania, debit cards now can be activated during the initial transaction or via Swedbank’s ATMs. It is also possible by phone or other smart device to make ATM transactions digitally, which increases convenience. The educational foundation established by Swedbank in Latvia commenced its operations and the bank made an initial contribution of EUR 6m during the quarter. The foundation’s mission is to support initiatives that contribute to society’s growth and development. Profit decreased by 8 per cent in local currency (EUR) due to lower income and higher expenses. Net interest income decreased by 4 per cent (EUR) due to falling market interest rates and rising deposit volumes in savings accounts. Lending increased by 2 per cent (EUR). Both consumer and corporate lending increased. Deposits increased by 3 per cent (EUR). Both consumer and corporate deposits increased. Net commission income increased by 6 per cent (EUR) due to seasonally higher card usage. Expenses increased by 14 per cent (EUR) mainly due to the annual salary review and the donation to the educational foundation in Latvia. Credit impairments were net positive and amounted to SEK -15m (6). Improved macroeconomic scenarios were offset by negative rating and stage migrations. ===== SIDA 14 ===== Swedbank – Report for the Second quarter│ 2024│14 Corporates and Institutions Income statement Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 % 2023¹ % 2024 2023¹ % Net interest income 3 244 3 375 -4 3 376 -4 6 619 6 566 1 Net commission income² 994 992 0 940 6 1 986 1 786 11 Net gains and losses on financial items 522 465 12 397 31 987 831 19 Other income³ 30 30 0 42 -29 61 82 -26 Total income 4 790 4 863 -1 4 755 1 9 653 9 265 4 Staff costs 572 558 2 521 10 1 130 1 061 7 Variable staff costs 29 36 -19 14 66 57 16 Other expenses 1 015 977 4 906 12 1 992 1 866 7 Depreciation/amortisation of tangible and intangible assets 6 5 4 6 -13 11 12 -10 Total expenses 1 622 1 577 3 1 447 12 3 199 2 995 7 Profit before impairments, bank taxes and resolution fees 3 168 3 286 -4 3 308 -4 6 454 6 270 3 Credit impairment -84 54 142 -31 622 Bank taxes and resolution fees 242 239 1 253 -4 481 480 0 Profit before tax 3 011 2 994 1 2 913 3 6 005 5 169 16 Tax expense 585 628 -7 593 -1 1 214 1 048 16 Profit for the period 2 426 2 365 3 2 321 5 4 791 4 121 16 Return on allocated equity, % 21.4 19.4 18.7 20.2 16.6 Loan/deposit ratio, % 164 160 151 164 151 Credit impairment ratio, % -0.05 0.03 0.09 -0.01 0.19 Cost/income ratio 0.34 0.32 0.30 0.33 0.32 Loans to customers, SEKbn 551 543 1 556 -1 551 556 -1 Deposits from customers, SEKbn 336 339 -1 368 -9 336 368 -9 Full-time employees 1 803 1 786 1 1 686 7 1 803 1 686 7 1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more information, see Note 4. 2) Comparative figures related to Net commission income have been restated during Q2 2024 for the Swedish business areas. 3) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and Other income from the Group income statement. Business development Business activity generally increased in the market and among our clients, partly driven by a belief in falling interest rates. The bond market remained strong during the quarter with investors willing to take on risk, where Swedbank advised on a number of issues. Activity and volatility in the bond market created an increased need among corporates to manage interest rate risk. FX trading increased mainly due to several large transactions. During the quarter, Swedbank continued to improve its Nordic offering by entering a strategic partnership with the Finnish bank Aktia. Together with Aktia, the bank will broaden the corporate offering in the Finnish market and increase the range of services available to our clients. Lending volume increased, mainly driven by the real estate sector and large clients. Lending to mid-sized corporates rose slightly, while it was stable to smaller companies. Deposit volume decreased due to lower short-term deposits from funds in foreign currency and lower volumes from corporates. Net interest income decreased during the quarter mainly due to lower deposit margins. The decrease was partly offset by higher lending volumes and margins. Net commission income was stable. Income from equity-related transactions contributed positively. Net gains and losses on financial items increased mainly due to higher earnings from FX trading. Corporate bond trading contributed positively. Expenses increased due to more employees, salary increases in foreign branches, and higher consulting and IT related expenses. Credit impairments were net positive and amounted to SEK -84m (54). Positive effects from updated macroeconomic scenarios and changes in exposures were partly offset by negative rating and stage migrations as well as increased provisions for individually assessed loans. ===== SIDA 15 ===== Swedbank – Report for the Second quarter│ 2024│15 Premium and Private Banking Income statement Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 % 2023¹ % 2024 2023¹ % Net interest income 439 469 -6 540 -19 908 1 082 -16 Net commission income² 446 408 9 348 28 854 684 25 Net gains and losses on financial items 7 8 -11 7 1 15 14 5 Other income³ 3 7 -53 16 -79 11 22 -52 Total income 896 892 0 911 -2 1 788 1 803 -1 Staff costs 150 143 5 117 28 293 232 26 Variable staff costs 4 4 13 2 8 5 67 Other expenses 178 159 12 145 23 336 287 17 Total expenses 331 305 9 263 26 637 524 21 Profit before impairments, bank taxes and resolution fees 564 587 -4 648 -13 1 151 1 279 -10 Credit impairment -27 -4 -2 -31 9 Bank taxes and resolution fees 32 31 1 28 12 63 60 5 Profit before tax 560 559 0 621 -10 1 119 1 210 -7 Tax expense 97 104 -7 127 -23 202 248 -19 Profit for the period 462 455 2 494 -6 918 961 -5 Return on allocated equity, % 30.8 28.8 31.6 29.6 30.8 Loan/deposit ratio, % 168 168 161 168 161 Credit impairment ratio, % -0.09 -0.01 -0.01 -0.05 0.02 Cost/income ratio 0.37 0.34 0.29 0.36 0.29 Loans to customers, SEKbn 130 128 2 121 7 130 121 7 Deposits from customers, SEKbn 78 76 3 75 4 78 75 4 Full-time employees 599 576 4 513 17 599 513 17 1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more information, see Note 4. 2) Comparative figures related to Net commission income have been restated during Q2 2024 for the Swedish business areas. 3) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and Other income f rom the Group income statement. Business development Through national expertise and a strong local presence, Premium and Private Banking offers a full range of products and services for customers in Sweden who need convenient access and ongoing personalised advice. The business area also offers asset management for corporate customers and is responsible for the bank’s pension distribution. Demand for qualified advice remained high, and the number of Premium and Private Banking customers increased during the quarter. A strong stock market performance contributed to continued high demand for asset management services. With regard to mortgage loans, demand for loan commitments increased, but in terms of actual mortgage volumes the market remained cautious. Swedbank’s ongoing efforts to support customers in making informed choices about their pension and pension savings resulted in an increased inflow to individual occupational pensions, among other things. Profit was stable during the quarter. Slightly higher income and lower credit impairments were offset by higher expenses. Net interest income decreased, mainly driven by lower earnings from deposits. Net commission income increased, mainly due to higher income from asset management, where the market upturn contributed positively. Expenses increased due to more employees in the new business area. Household mortgage volume increased by SEK 3bn and deposit volume increased by SEK 1bn, partly due to customer transfers from Swedish Banking. Credit impairments were net positive and amounted to SEK -27m (-4). Improved macroeconomic scenarios were partly offset by negative rating and stage migrations. ===== SIDA 16 ===== Swedbank – Report for the Second quarter│ 2024│16 Group Functions and Other Income statement Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 % 2023¹ % 2024 2023¹ % Net interest income -448 -521 -14 -1 044 -57 -969 -1 986 -51 Net commission income -65 -35 87 -121 -47 -100 -173 -43 Net gains and losses on financial items 177 10 -66 188 217 -13 Other income² 1 011 949 7 807 25 1 960 1 568 25 Total income 675 404 67 -425 1 079 -375 Staff costs 1 882 1 836 2 1 727 9 3 718 3 456 8 Variable staff costs 86 100 -14 61 40 185 123 51 Other expenses -1 199 -1 177 2 -1 238 -3 -2 376 -2 468 -4 Depreciation/amortisation of tangible and intangible assets 483 476 1 463 4 959 854 12 Administrative fines 0 -40 0 850 Total expenses 1 251 1 236 1 972 29 2 487 2 815 -12 Profit before impairments, bank taxes and resolution fees -576 -832 -31 -1 397 -59 -1 408 -3 190 -56 Impairment of tangible and intangible assets 32 0 11 32 11 Credit impairment -9 6 -3 -3 8 Bank taxes and resolution fees 0 0 6 -100 0 11 Profit before tax -599 -838 -28 -1 412 -58 -1 437 -3 219 -55 Tax expense 139 -64 -162 75 -235 Profit for the period -738 -774 -5 -1 250 -41 -1 513 -2 984 -49 Full-time employees 7 811 7 725 1 7 543 4 7 811 7 543 4 1) Comparative figures have been restated due to the reorganisation during the first quarter of 2024. For more information, see Note 4. 2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures 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 Products & Advice and Group Staffs and are allocated to a large extent. Result During the quarter, profit increased to SEK -738m (-774). Income rose, as did expenses and the tax expense, while credit impairments decreased slightly. Net interest income increased, mainly due to falling short-term interest rates, which meant a lower return on deposits with the business areas. Net gains and losses on financial items within Group Treasury rose mainly related to positive changes in the value of interest rate derivatives. Expenses increased slightly. Staff costs rose, partly offset by lower consulting expenses. ===== SIDA 17 ===== Swedbank – Report for the Second quarter│ 2024│17 Financial statements - Group Income statement, condensed Group Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Interest income 28 469 28 209 24 867 56 678 46 300 Interest expense -16 304 -15 609 -12 099 -31 914 -21 596 Net interest income (note 5) 12 165 12 599 12 768 24 764 24 704 Net commission income (note 6) 4 169 3 976 3 811 8 145 7 472 Net gains and losses on financial items (note 7) 911 682 524 1 593 1 441 Net insurance income (note 8) 291 267 384 558 666 Share of profit or loss of associates and joint ventures 189 128 250 316 421 Other income 511 436 435 947 857 Total income 18 237 18 087 18 173 36 324 35 560 Staff costs 3 784 3 700 3 417 7 484 6 883 Other general administrative expenses (note 9) 2 144 1 956 1 783 4 101 3 390 Depreciation/amortisation of tangible and intangible assets 536 528 520 1 065 968 Administrative fines 0 0 -3 0 887 Total expenses 6 465 6 185 5 717 12 650 12 127 Profit before impairments, bank taxes and resolution fees 11 772 11 902 12 456 23 674 23 433 Impairment of tangible and intangible assets 32 0 11 32 11 Credit impairment (note 10) -289 144 188 -145 965 Bank taxes and resolution fees (note 11) 1 045 1 104 844 2 149 1 362 Profit before tax 10 983 10 654 11 414 21 637 21 095 Tax expense 2 388 2 226 2 291 4 614 4 412 Profit for the period 8 595 8 428 9 123 17 023 16 683 Earnings per share, SEK 7.64 7.49 8.11 15.13 14.84 Earnings per share after dilution, SEK 7.61 7.47 8.09 15.08 14.80 ===== SIDA 18 ===== Swedbank – Report for the Second quarter│ 2024│18 Statement of comprehensive income, condensed Group Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Profit for the period reported via income statement 8 595 8 428 9 123 17 023 16 683 Items that will not be reclassified to the income statement Remeasurements of defined benefit pension plans -805 969 1 062 164 1 310 Share related to associates and joint ventures 1 21 43 22 64 Total -804 990 1 105 186 1 374 Items that may be reclassified to the income statement Exchange rate differences, foreign operations -1 055 2 505 2 659 1 450 3 569 Hedging of net investments in foreign operations 677 -1 627 -1 687 -950 -2 223 Cash flow hedges -3 3 6 0 4 Foreign currency basis risk -16 -11 1 -27 3 Share of other comprehensive income of associates and joint ventures 1 12 19 13 -19 Total -396 882 998 486 1 334 Other comprehensive income for the period, net of tax -1 200 1 872 2 103 672 2 708 Total comprehensive income for the period 7 395 10 300 11 225 17 695 19 391 Total comprehensive income attributable to: Shareholders of Swedbank AB 7 395 10 300 11 225 17 695 19 391 Non-controlling interests 0 0 1 0 0 For the period January – June 2024 a gain after tax of SEK 164m (1 310) was recognised in other comprehensive income, relating to remeasurements of defined benefit pension plans. As per 30 June 2024 the discount rate used to calculate the closing pension obligation was 3.67 per cent, compared with 3.69 per cent per 31 December 2023. The inflation assumption was 1.63 per cent compared with 1.57 per cent per 31 December 2023. The fair value of plan assets increased during 2024 by SEK 631m. In total, at 30 June 2024 the fair value of plan assets exceeded the obligation for funded defined benefit pension plans by SEK 2 470m, therefore the funded plans are presented as an asset. For January – June 2024 an exchange rate difference of SEK 1 450m (3 569) was recognised for the Group's foreign net investments in subsidiaries. The gain related to subsidiaries mainly arose because the Swedish krona weakened against the euro during the period. In addition, an exchange rate difference of SEK 13m (-19) for the Group's foreign net investments in associates and joint ventures is included in Share of other comprehensive income of associates and joint ventures. The total gain of SEK 1 463m is not taxable. Most of the Group's foreign net investments are hedged against currency risk resulting in a loss after tax of SEK -950m (-2 223) for the hedging instruments. ===== SIDA 19 ===== Swedbank – Report for the Second quarter│ 2024│19 Balance sheet, condensed Group 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 Assets Cash and balances with central banks 316 886 252 994 358 417 Treasury bills and other bills eligible for refinancing with central banks, etc. 210 505 178 619 270 034 Loans to credit institutions 46 523 67 534 60 527 Loans to the public 1 896 756 1 863 375 1 857 443 Value change of the hedged assets in portfolio hedges of interest rate risk -5 905 -8 489 -17 544 Bonds and other interest-bearing securities 96 759 58 841 58 627 Financial assets for which customers bear the investment risk 374 766 319 795 311 831 Shares and participating interests 45 322 34 316 32 638 Derivatives (note 19) 23 973 39 563 53 702 Intangible assets (note 15) 20 962 20 440 20 992 Other assets 41 363 28 531 43 768 Total assets 3 067 911 2 855 519 3 050 435 Liabilities and equity Amounts owed to credit institutions (note 16) 92 587 72 054 132 893 Deposits and borrowings from the public (note 17) 1 289 206 1 234 262 1 303 267 Value change of the hedged liabilities in portfolio hedges of interest rate risk 160 209 0 Financial liabilities for which customers bear the investment risk 375 653 320 609 312 145 Debt securities in issue (note 18) 812 638 728 548 838 568 Short positions, securities 28 366 17 297 26 392 Derivatives (note 19) 32 557 73 453 49 098 Insurance provisions 28 189 26 315 26 535 Other liabilities 48 895 46 313 50 228 Senior non-preferred liabilities (note 18) 119 174 104 828 86 799 Subordinated liabilities (note 18) 40 843 32 841 39 855 Total liabilities 2 868 269 2 656 730 2 865 780 Equity 199 643 198 790 184 655 Total liabilities and equity 3 067 911 2 855 519 3 050 435 ===== SIDA 20 ===== Swedbank – Report for the Second quarter│ 2024│20 Statement of changes in equity, condensed ===== SIDA 21 ===== Swedbank – Report for the Second quarter│ 2024│21 Cash flow statement, condensed Group Jan-Jun Full year Jan-Jun SEKm 2024 2023 2023 Operating activities Profit before tax 21 637 43 622 21 095 Adjustments for non-cash items in operating activities -3 265 -1 952 44 Income taxes paid -4 819 -5 443 -3 295 Cash flow from operating activities before changes in operating assets and liabilities 13 553 36 227 17 844 Increase (-) / decrease (+) in assets -105 686 -59 104 -137 394 Increase (+) / decrease (-) in liabilities 154 401 -122 271 80 796 Cash flow from operating activities 62 268 -145 148 -38 754 Investing activities Acquisitions of and contributions to associates and joint ventures -39 -53 -53 Dividend from associates and joint ventures 186 306 113 Acquisitions of other fixed assets and strategic financial assets -192 -852 -440 Disposals of/maturity of other fixed assets and strategic financial assets 49 181 104 Cash flow from investing activities 4 -418 -276 Financing activities Amortisation of lease liabilities -504 -799 -403 Issuance of senior non-preferred liablities 12 156 46 580 28 361 Redemption of senior non-preferred liablities -1 977 -1 665 -713 Issuance of subordinated liabilities 6 811 9 339 9 339 Redemption of subordinated liabilities -797 -10 316 -3 144 Dividends paid -17 048 -10 964 -10 964 Cash flow from financing activities -1 359 32 175 22 476 Cash flow for the period 60 913 -113 391 -16 554 Cash and cash equivalents at the beginning of the period 252 994 365 992 365 992 Cash flow for the period 60 913 -113 391 -16 554 Exchange rate differences on cash and cash equivalents 2 979 393 8 979 Cash and cash equivalents at end of the period 316 886 252 994 358 417 2024 During the second quarter contributions were provided to the associated company Svenska e-fakturabolaget AB of SEK 16m. During the second quarter, additional shares in the joint venture P27 Nordic Payments Platform AB of SEK 23m. Thereby, the ownership amounts to 20,83 percent. 2023 During 2023 contributions were provided to the joint ventures P27 Nordic Payments Platform AB, Invidem AB and Tibern AB of SEK 48m, 3m and 2m respectively. ===== SIDA 22 ===== Swedbank – Report for the Second quarter│ 2024│22 Note 1 Accounting policies The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The condensed consolidated financial statements have also been prepared in accordance with the recommendations and statements of the Swedish Corporate Reporting Board, the Annual Accounts Act for Credit Institutions and Securities Companies and the directives of the Swedish Financial Supervisory Authority (SFSA). The Parent Company report has been prepared in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies, the directives of the SFSA and recommendation RFR 2 of the Swedish Corporate Reporting Board. The accounting policies applied in the interim report conform to those applied in the Annual and Sustainability Report for 2023, which was prepared in accordance with International Financial Reporting Standards as adopted by the European Union and interpretations thereof. The financial statements are presented in Swedish kronor and all figures are rounded to millions of kronor (SEKm) unless otherwise indicated. No adjustments for rounding are made, therefore summation differences may occur. Change in presentation In order to provide a better overview of the financial statements, items within these have been aggregated from the first quarter 2024. Changes in accounting regulations Amended regulations that is applicable from 1 January 2024 did not have a significant impact on the Group’s financial position, results, cash flows or disclosures. Issued accounting standards not yet applied Presentation and Disclosures in Financial Statements (IFRS 18) The International Accounting Standards Board (IASB) has published IFRS 18 Presentation and Disclosures in Financial Statements, which is not yet applied by Swedbank. IFRS 18 was issued in April 2024. The standard will be effective from January 1, 2027, and has not yet been adopted by the European Union. The new standard replaces IAS 1 and introduces new requirements primarily for the presentation of financial statements and disclosures about certain performance measures. Impact on the Group's financial statements is currently being assessed. Amendments to the Classification and Measurement of Financial Instruments (IFRS 9 and IFRS 7) The International Accounting Standards Board (IASB) has published amendments to the Classification and Measurement of Financial Instruments, IFRS 9 and IFRS 7. The amendments mainly provide guidance on how to assess the contractual cash flows of a financial asset that include contingent features and related disclosure requirements. The amendments were issued in May 2024 and will be effective from January 1, 2026. They have not yet been adopted by the European Union. Note 2 Critical accounting estimates Presentation of consolidated financial statements in conformity with IFRS requires the executive management to make judgments and estimates that affect the recognised amounts of assets, liabilities and disclosures of contingent assets and liabilities as of the reporting date as well as the recognised income and expenses during the reporting 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 impairment, impairment testing of goodwill, provisions and contingent liabilities, defined benefit pension provisions, insurance contracts and deferred taxes. Post-model expert credit adjustments to the credit impairment provisions continue to be necessary, given the geopolitical and economic uncertainties. Further information is provided in Note 10. Beyond this, there have been no significant changes to the basis upon which the critical accounting judgments and estimates have been determined compared with 31 December 2023. Note 3 Changes in the Group structure No significant changes to the Group structure occurred during the first half year of 2024. ===== SIDA 23 ===== Swedbank – Report for the Second quarter│ 2024│23 Note 4 Operating segments (business areas) Group January-June 2024 Swedish Baltic Corporates and Premium and Functions SEKm Banking Banking Institutions Private Banking and Other Eliminations Group Income statement Net interest income 9 016 9 145 6 619 908 -969 45 24 764 Net commission income 3 721 1 682 1 986 854 -100 1 8 145 Net gains and losses on financial items 133 271 987 15 188 0 1 593 Other income¹ 652 339 61 11 1 960 -1 202 1 822 Total income 13 522 11 438 9 653 1 788 1 079 -1 155 36 324 Staff costs 998 1 003 1 130 293 3 718 -9 7 133 Variable staff costs 30 62 66 8 185 0 351 Other expenses 3 311 1 983 1 992 336 -2 376 -1 147 4 101 Depreciation/amortisation of tangible and intangible assets 8 87 11 0 959 -0 1 065 Total expenses 4 347 3 136 3 199 637 2 487 -1 155 12 650 Profit before impairments, bank taxes and resolution fees 9 175 8 302 6 454 1 151 -1 408 -0 23 674 Impairment of tangible and intangible assets 0 32 32 Credit impairment -70 -9 -31 -31 -3 -0 -145 Bank taxes and resolution fees 427 1 179 481 63 -0 2 149 Profit before tax 8 818 7 132 6 005 1 119 -1 437 0 21 637 Tax expense 1 673 1 450 1 214 202 75 4 614 Profit for the period 7 145 5 682 4 791 918 -1 513 0 17 023 Non-controlling interests 0 0 Net commission income Commission income Payment processing 226 319 475 5 222 -8 1 238 Cards 1 083 1 104 1 596 19 -333 3 468 Asset management and custody 3 302 323 1 191 816 -2 -176 5 456 Lending 47 110 445 2 -0 -4 600 Other commission income² 483 337 758 252 26 -8 1 847 Total 5 141 2 192 4 464 1 094 -87 -196 12 609 Commission expense 1 420 510 2 478 240 13 -197 4 464 Net commission income 3 721 1 682 1 986 854 -100 1 8 145 Balance sheet, SEKbn Cash and balances with central banks 0 4 2 311 0 317 Loans to credit institutions 5 1 144 0 272 -375 47 Loans to the public 850 268 639 130 11 -1 1 897 Interest-bearing securities 2 114 199 -8 307 Financial assets for which customers bear the investment risk 294 2 30 48 375 Investments in associates and joint ventures 6 2 8 Derivatives 0 96 79 -151 24 Tangible and intangible assets 2 13 -0 0 12 -0 26 Other assets 19 154 29 3 332 -471 67 Total assets 1 177 444 1 054 181 1 218 -1 006 3 068 Amounts owed to credit institutions 5 0 359 0 93 -365 93 Deposits and borrowings from the public 460 403 352 78 7 -10 1 289 Debt securities in issue -0 2 1 818 -8 813 Financial liabilities for which customers bear the investment risk 295 2 30 49 376 Derivatives 0 103 80 -151 33 Other liabilities 365 163 49 0 -472 106 Senior non-preferred liabilities -0 119 0 119 Subordinated liabilities -0 41 41 Total liabilities 1 125 407 1 008 175 1 159 -1 006 2 868 Allocated equity 52 36 46 6 59 200 Total liabilities and equity 1 177 444 1 054 181 1 218 -1 006 3 068 Key figures Return on allocated equity, % 26.7 32.2 20.2 29.6 -5.4 0.0 17.1 Cost/income ratio 0.32 0.27 0.33 0.36 2.30 0.00 0.35 Credit impairment ratio, % -0.02 -0.01 -0.01 -0.05 -0.01 0.00 -0.01 Loan/deposit ratio, % 185 66 164 168 15 140 Lending to the public, stage 3, SEKbn (gross) 4 1 4 0 10 Loans to customers, total, SEKbn 850 268 551 130 1 0 1 799 Provisions for loans to customers, total, SEKbn 1 1 4 0 0 0 7 Deposits from customers, SEKbn 460 403 336 78 7 0 1 282 Risk exposure amount, SEKbn 294 196 291 37 30 848 Full-time employees 2 559 4 766 1 803 599 7 811 0 17 538 Allocated equity, average, SEKbn 54 35 47 6 56 0 199 1) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and Other income from the Group income statement. 2) Other commission income includes Service concepts, Insurance, Securities and corporate finance and Other, see Note 6. ===== SIDA 24 ===== Swedbank – Report for the Second quarter│ 2024│24 Group January-June 2023¹ Swedish Baltic Corporates and Premium and Functions SEKm Banking Banking Institutions Private Banking and Other Eliminations Group Income statement Net interest income 10 438 8 569 6 566 1 082 -1 986 35 24 704 Net commission income 3 514 1 672 1 786 684 -173 -12 7 472 Net gains and losses on financial items 105 273 831 14 217 -0 1 441 Other income² 748 438 82 22 1 568 -914 1 944 Total income 14 805 10 952 9 265 1 803 -375 -891 35 560 Staff costs 939 954 1 061 232 3 456 -9 6 633 Variable staff costs 17 48 57 5 123 0 249 Other expenses 3 073 1 550 1 866 287 -2 468 -882 3 390 Depreciation/amortisation of tangible and intangible assets 10 92 12 0 854 -0 968 Administrative fine 37 850 887 Total expenses 4 039 2 644 2 995 524 2 815 -891 12 127 Profit before impairments, bank taxes and resolution fees 10 765 8 308 6 270 1 279 -3 190 0 23 433 Impairment of tangible and intangible assets 0 11 11 Credit impairment 381 -55 622 9 8 0 965 Bank taxes and resolution fees 438 373 480 60 11 1 362 Profit before tax 9 947 7 990 5 169 1 210 -3 219 -0 21 095 Tax expense 1 888 1 463 1 048 248 -235 4 412 Profit for the period 8 059 6 526 4 121 961 -2 984 -0 16 683 Net commission income Commission income Payment processing 225 337 472 6 205 -9 1 236 Cards 1 064 1 098 1 464 16 -195 0 3 447 Asset management and custody 2 796 295 1 014 641 -2 -158 4 585 Lending 0 114 495 3 -1 -4 607 Other commission income³ 562 307 696 214 7 -13 1 772 Total 4 647 2 149 4 141 880 14 -184 11 647 Commission expense 1 133 477 2 354 195 187 -172 4 176 Net commission income 3 514 1 672 1 786 684 -173 -12 7 472 Balance sheet, SEKbn Cash and balances with central banks 0 4 1 354 358 Loans to credit institutions 4 0 194 258 -396 61 Loans to the public 870 255 612 121 1 -1 1 857 Interest-bearing securities 2 55 277 -5 329 Financial assets for which customers bear the investment risk 244 2 25 40 312 Investments in associates 6 2 8 Derivatives 0 162 146 -255 54 Tangible and intangible assets 2 13 -0 0 11 0 27 Other assets 18 149 22 3 216 -363 45 Total assets 1 145 426 1 070 164 1 265 -1 020 3 050 Amounts owed to credit institutions 6 0 389 125 -388 133 Deposits and borrowings from the public 464 387 382 75 3 -8 1 303 Debt securities in issue -0 3 2 839 -5 839 Financial liabilities for which customers bear the investment risk 245 2 25 40 312 Derivatives 0 175 129 -255 49 Other liabilities 378 46 42 1 -364 103 Senior non-preferred liabilities -0 87 87 Subordinated liabilities -0 40 40 Total liabilities 1 093 393 1 019 158 1 223 -1 020 2 866 Allocated equity 52 33 52 6 42 185 Total liabilities and equity 1 145 426 1 070 164 1 265 -1 020 3 050 Key figures Return on allocated equity, % 30.7 41.1 16.6 30.8 -15.4 0.0 18.6 Cost/income ratio 0.27 0.24 0.32 0.29 -7.51 0.00 0.34 Credit impairment ratio, % 0.09 -0.05 0.19 0.02 0.05 0.00 0.10 Loan/deposit ratio, % 188 66 151 161 26 0 139 Lending to the public, stage 3, SEKbn (gross) 2 2 3 0 6 Loans to customers, total, SEKbn 870 255 556 121 1 1 803 Provisions for loans to customers, total, SEKbn 2 1 4 0 7 Deposits from customers, SEKbn 464 387 368 75 3 0 1298 Risk exposure amount, SEKbn 346 171 259 14 29 0 819 Full-time employees 2 417 4 706 1 686 513 7 543 0 16 865 Allocated equity, average, SEKbn 53 32 50 6 39 0 179 1) Comparative figures have been restated due to the reorganisation during the first quarter 2024. 2) Other income includes the items Net insurance, Share of profit or loss of associates and joint ventures and Other income from the Group income statement. 3) Other commission income includes Service concepts, Insurance, Securities and corporate finance and Other, see Note 6. ===== SIDA 25 ===== Swedbank – Report for the Second quarter│ 2024│25 Operating segments accounting policies The operating segment report is based on Swedbank’s accounting policies, organisation and management accounts. Market-based transfer prices are applied between operating segments, while all expenses for Group functions and Group staffs are transfer priced at cost to the operating segments. Cross-border transfer pricing is applied according to OECD transfer pricing guidelines. The Group’s equity attributable to shareholders is allocated to each operating segment based on capital adequacy rules and estimated capital requirements based on the bank’s Internal Capital Adequacy Assessment Process (ICAAP). The return on allocated equity for the operating segments is calculated based on profit for the period attributable to the shareholders for the operating segment, in relation to average monthly allocated equity for the operating segment. For periods shorter than one year the key ratio is annualised. From the first quarter 2024, the operation within Premium and Private Banking is reported as a new business segment. The operation was previously reported within Swedish Banking. In connection with the change the corporate customers, which are handled by advisors, have been moved to Corporates and Institutions. The comparative figures have been restated. In addition to this, there have been a few minor transfers of support functions between the segments and Group Functions and Other. ===== SIDA 26 ===== Swedbank – Report for the Second quarter│ 2024│26 Changes between previous reporting and new restated reporting Group January-June 2023 Swedish Baltic Corporates and Premium and Functions SEKm Banking Banking Institutions Private banking and Other Eliminations Group Income statement Net interest income -2 722 1 639 1 082 1 Net commission income -959 278 684 -3 Net gains and losses on financial items -86 71 14 0 Other income -34 -33 22 45 Total income -3 800 1 955 1 803 42 Staff costs -448 234 232 -19 Variable staff costs -7 2 5 -1 Other expenses -720 -1 393 287 41 Total expenses -1 175 -1 630 524 21 Profit before impairments, bank taxes and resolution fees -2 626 1 1 325 1 279 21 Credit impairment -235 226 9 -0 Bank taxes and resolution fees -119 59 60 Profit before tax -2 272 1 1 041 1 210 21 Tax expense -492 239 248 5 Profit for the period -1 780 1 802 961 16 Net commission income Commission income Payment processing -87 81 6 Cards -117 78 16 23 Asset management and custody -737 96 641 Lending -19 19 3 -3 Other commission income -395 181 214 Total -1 354 455 880 19 Commission expense -395 177 195 23 Net commission income -959 278 684 -3 Balance sheet, SEKbn Loans to credit institutions -0 0 Loans to the public -205 84 121 Financial assets for which customers bear the -65 25 40 Other assets -5 2 3 1 Total assets -275 111 164 1 Amounts owed to credit institutions -1 1 Deposits and borrowings from the public -159 83 75 1 Financial liabilities for which customers bear the investment risk -65 25 40 Other liabilities -39 -3 42 -0 Total liabilities -263 106 158 1 Allocated equity -12 5 6 Total liabilities and equity -275 111 164 1 Key figures Return on allocated equity, % 0.0 0.0 1.6 30.8 0.1 Cost/income ratio -0.01 0.00 0.00 0.29 -0.81 Credit impairment ratio, % -0.02 0.04 0.19 0.00 Loan/deposit ratio, % 14 -14 161 3 Lending to the public, stage 3, SEKbn (gross) -1 1 0 Loans to customers, total, SEKbn -205 84 121 0 Provisions for loans to customers, total, SEKbn -1 1 0 Deposits from customers, SEKbn -156 82 75 0 Risk exposure amount, SEKbn -14 14 0 Full-time employees -958 491 513 -46 Allocated equity, average, SEKbn -12 5 6 ===== SIDA 27 ===== Swedbank – Report for the Second quarter│ 2024│27 Note 5 Net interest income Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Interest income Cash and balances with central banks 4 122 4 007 3 954 8 129 7 360 Treasury bills and other bills eligible for refinancing with central banks, etc. 1 996 2 047 2 207 4 042 3 621 Loans to credit institutions 770 835 799 1 605 1 490 Loans to the public 23 391 23 075 19 225 46 466 35 993 Bonds and other interest-bearing securities 595 552 474 1 147 863 Derivatives¹ -364 -1 044 -182 -1 409 -308 Other assets -10 -1 17 -11 28 Total 30 500 29 470 26 494 59 970 49 047 Transfer of trading-related interests reported in Net gains and losses 2 030 1 261 1 627 3 292 2 748 Total interest income 28 469 28 209 24 867 56 678 46 300 Interest expense Amounts owed to credit institutions -1 194 -1 280 -1 656 -2 474 -2 943 Deposits and borrowings from the public -8 345 -8 381 -6 210 -16 727 -10 894 of which deposit guarantee fees -151 -149 -183 -300 -340 Debt securities in issue -7 335 -6 895 -6 718 -14 230 -12 578 Senior non-preferred liabilities -1 045 -922 -483 -1 967 -860 Subordinated liabilities -607 -537 -453 -1 143 -827 Derivatives¹ -209 127 1 625 -82 3 489 Other liabilities -23 -24 -16 -47 -37 Total -18 757 -17 911 -13 911 -36 669 -24 650 Transfer of trading-related interests reported in Net gains and losses -2 453 -2 302 -1 812 -4 755 -3 054 Total interest expense -16 304 -15 609 -12 099 -31 914 -21 596 Net interest income 12 165 12 599 12 768 24 764 24 704 Net investment margin before trading-related interests are deducted 1.51 1.54 1.62 1.52 1.58 Average total assets 3 118 814 3 006 487 3 105 025 3 060 254 3 084 076 Interest income on financial assets at amortised cost 28 337 28 018 25 216 56 355 46 704 Interest expense on financial liabilities at amortised cost 17 639 17 166 14 910 34 806 27 011 1) The derivatives lines includes net interest income from derivatives hedging assets and liabilities in the balance sheet. T hese may have both positive and negative impact on interest income and interest expense. ===== SIDA 28 ===== Swedbank – Report for the Second quarter│ 2024│28 Note 6 Net commission income Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Commission income Payment processing 618 620 635 1 238 1 236 Cards 1 827 1 641 1 867 3 468 3 447 Service concepts 450 420 401 870 792 Asset management and custody 2 823 2 632 2 363 5 456 4 585 Insurance 67 98 77 165 163 Securities and corporate finance 205 198 167 404 366 Lending 298 301 311 600 607 Other 207 201 201 409 451 Total commission income 6 496 6 113 6 022 12 609 11 647 Commission expense Payment processing -395 -380 -415 -776 -780 Cards -834 -762 -865 -1 596 -1 573 Service concepts -46 -50 -43 -96 -90 Asset management and custody -754 -686 -626 -1 440 -1 204 Insurance -98 -84 -76 -183 -145 Securities and corporate finance -94 -99 -100 -193 -194 Lending -39 -24 -25 -63 -65 Other -66 -52 -60 -117 -124 Total commission expense -2 326 -2 137 -2 211 -4 464 -4 176 Net commission income Payment processing 223 240 219 463 456 Cards 993 879 1 002 1 872 1 874 Service concepts 403 370 357 774 702 Asset management and custody 2 069 1 947 1 737 4 016 3 380 Insurance -31 13 1 -18 18 Securities and corporate finance 111 99 67 211 173 Lending 259 277 286 537 542 Other 141 150 141 291 327 Total net commission income 4 169 3 976 3 811 8 145 7 472 ===== SIDA 29 ===== Swedbank – Report for the Second quarter│ 2024│29 Note 7 Net gains and losses on financial items Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Fair value through profit or loss Shares and share related derivatives 286 370 25 657 12 of which dividend 65 159 60 224 149 Interest-bearing securities and interest related derivatives 697 1 101 380 1 798 851 Financial liabilities -2 1 2 -1 2 Financial assets and liabilities where the customers bear the investment risk, net 1 13 2 14 1 Other financial instruments 0 -1 0 0 0 Total fair value through profit or loss 983 1 485 408 2 468 866 Hedge accounting Ineffectiveness, one-to-one fair value hedges -53 3 -72 -50 14 of which hedging instruments 2 000 -3 214 -3 441 -1 215 235 of which hedged items -2 053 3 217 3 369 1 164 -221 Ineffectiveness, portfolio fair value hedges 58 -6 45 52 127 of which hedging instruments -2 326 -256 200 -2 582 -2 699 of which hedged items 2 384 250 -155 2 635 2 826 Ineffectiveness, cash flow hedges 20 -2 -1 18 -2 Total hedge accounting 25 -5 -27 20 139 Amortised cost Derecognition gain or loss for financial assets 25 3 17 28 28 Derecognition gain or loss for financial liabilities -103 99 11 -5 20 Total amortised cost -78 102 28 23 48 Trading related interest Interest income 2 030 1 261 1 627 3 292 2 748 Interest expense -2 453 -2 302 -1 812 -4 755 -3 054 Total trading related interest -423 -1 041 -186 -1 463 -307 Change in exchange rates 405 141 301 546 694 Total 911 682 524 1 593 1 441 ===== SIDA 30 ===== Swedbank – Report for the Second quarter│ 2024│30 Note 8 Net insurance income Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Insurance service revenue 1 202 1 210 1 060 2 412 2 102 Insurance service expenses -791 -943 -690 -1 735 -1 488 Insurance service result 411 267 370 678 614 Result from reinsurance contracts held -20 1 -4 -19 -20 Insurance finance income and expense -646 -1 517 -879 -2 163 -1 614 Insurance result -255 -1 249 -514 -1 504 -1 019 Return on financial assets backing insurance contracts with participation features 547 1 516 898 2 062 1 685 Total 291 267 384 558 666 Note 9 Other general administrative expenses Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Premises 97 98 126 194 247 IT expenses 934 836 730 1 770 1 362 Telecommunications and postage 28 36 30 65 62 Consultants 267 286 224 553 446 Compensation to savings banks 53 53 55 106 110 Other purchased services 345 325 278 670 545 Travel 40 26 36 66 63 Entertainment 11 6 9 16 16 Supplies 18 16 16 33 39 Advertising, PR and marketing 175 71 91 246 124 Security transport and alarm systems 17 21 17 38 34 Repair/maintenance of inventories 41 37 34 79 65 Other administrative expenses 102 120 112 222 223 Other operating expenses 18 25 26 42 55 Total 2 144 1 956 1 783 4 101 3 390 ===== SIDA 31 ===== Swedbank – Report for the Second quarter│ 2024│31 Note 10 Credit impairment Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Credit impairments for loans at amortised cost Credit impairments - stage 1 -33 -167 -95 -200 164 Credit impairments - stage 2 -379 -22 168 -402 624 Credit impairments - stage 3 -329 261 54 -69 58 Credit impairments - purchased or originated credit impaired 0 -1 1 0 1 Total -742 71 128 -671 848 Write-offs 617 105 117 722 174 Recoveries -182 -55 -51 -236 -100 Total 435 51 66 486 75 Total - credit impairments for loans at amortised cost -307 122 194 -185 923 Credit impairments for loan commitments and guarantees Credit impairments - stage 1 -51 5 -2 -45 33 Credit impairments - stage 2 63 -51 -4 11 17 Credit impairments - stage 3 6 68 0 74 -8 Total - credit impairments for loan commitments and guarantees 18 23 -6 40 42 Total credit impairments -289 144 188 -145 965 Credit impairment ratio, % -0.06 0.03 0.04 -0.01 0.10 Disposal of loans During the second quarter 2024 a portfolio of loans to private persons was disposed. The loans were either classified in stage 3 or were previously written off. The disposal of the loans in stage 3 resulted in write offs amounting to SEK 505m together with reversals of credit impairment provisions amounting to SEK 496m. The disposal of loans previously written of resulted in recoveries amounting to SEK 145m. Calculation of credit impairment provisions The measurement of expected credit losses is described in Note G3.1 Credit risk on pages 86-91 of the 2023 Annual and Sustainability Report. Measurement of 12-month and lifetime expected credit losses While inflation has started to come down, the high interest rates and overall costs levels, combined with geopolitical instability, continue to weigh on private persons and companies, resulting in a high level of uncertainty regarding impact on credit risk. As the quantitative risk models do not yet reflect all potential deteriorations in credit quality, post-model adjustments have been made to capture potential future rating and stage migrations. Post-model expert credit adjustments to increase the credit impairment provisions continue to be deemed necessary and amounted to SEK 946m (SEK 996m at 31 March 2024, SEK 1 324m at 31 December 2023) and are allocated as SEK 505m in stage 1 and SEK 441m in stage 2 (SEK 525m in stage 1, SEK 471m in stage 2 at 31 March 2024). Customers and industries are reviewed and analysed considering the current situation, particularly in more vulnerable sectors. During the second quarter, the main changes were that post-model expert credit adjustments for the Retail sector and Property management sector were decreased whilst post-model expert credit adjustments for Agriculture, forestry, fishing sector and Manufacturing sector increased. The most significant post-model adjustments at 30 June 2024 were in the Property management, Manufacturing and Agriculture, forestry, fishing sectors. ===== SIDA 32 ===== Swedbank – Report for the Second quarter│ 2024│32 The tables below show the quantitative thresholds used by the Group for assessing a significant increase in credit risk, namely: • Changes in the 12-month PD and internal risk rating grades, which have been applied for the portfolio of loans originated before 1 January 2018. For instance, for exposures originated with risk grades 0 to 5, a downgrade by 1 grade from initial recognition is assessed as a significant change in credit risk. Alternatively, for exposures originated with risk grades 18 to 21, a downgrade by 5 to 8 grades from initial recognition is considered significant. Internal risk ratings are assigned according to the risk management framework outlined in Note G3 Risks in the 2023 Annual and Sustainability Report. • Changes in the lifetime PD, which have been applied for the portfolio of loans originated on or after 1 January 2018. For instance, for exposures originated with risk grades 0 to 5, a 50 per cent increase in the lifetime PD from initial recognition is assessed as a significant change in credit risk. Alternatively, for exposures originated with risk grades 18 to 21, an increase of 200-300 per cent from initial recognition is considered significant except for Swedish mortgages where an absolute 12-month PD threshold is also applied. These limits reflect a lower sensitivity to change in the low-risk end of the risk scale and a higher sensitivity to change in the high-risk end of the scale. The Group has performed a sensitivity analysis on how credit impairment provisions would change if thresholds applied were increased or decreased. A lower threshold would increase the number of loans that have migrated from Stage 1 to Stage 2 and also increase the estimated credit impairment provisions. A higher threshold would have the opposite effect. The tables below disclose the impacts of this sensitivity analysis on the credit impairment provisions. Positive amounts represent higher credit impairment provisions that would be recognised. Significant increase in credit risk - financial instruments with initial recognition before 1 January 2018 Significant increase in credit risk - financial instruments with initial recognition on or after 1 January 2018 ===== SIDA 33 ===== Swedbank – Report for the Second quarter│ 2024│33 Incorporation of forward-looking macroeconomic scenarios The Swedbank Economic Outlook was published on 18 April 2024 and the baseline scenario was updated by Swedbank Macro Research as of 10 June 2024. The baseline scenario, with an assigned probability weight of 66.6 per cent, is aligned with the published outlook and incorporates updated observed outcome and data points. The alternative scenarios are aligned with the updated baseline scenario, with probability weights of 16.7 per cent assigned to both the upside and downside scenario. The table below sets out the key assumptions of the scenarios at 30 June 2024. 30 June 2024 Positive scenario Baseline scenario Negative scenario 2024 2025 2026 2024 2025 2026 2024 2025 2026 Sweden GDP (annual % change) 0.8 3.8 2.5 0.5 2.8 2.8 -1.3 -5.2 2.4 Unemployment (annual %) 8.4 8.2 7.6 8.4 8.3 7.7 8.5 10.4 11.0 House prices (annual % change) 0.2 5.1 6.8 0.1 4.4 6.5 -3.5 -11.7 3.4 Stibor 3m (%) 3.79 2.65 2.11 3.72 2.44 2.10 3.46 0.69 0.29 Estonia GDP (annual % change) -0.5 4.2 2.8 -1.0 2.8 3.0 -3.3 -7.1 1.0 Unemployment (annual %) 7.4 6.2 5.3 7.5 6.6 5.8 8.1 11.5 14.3 House prices (annual % change) -2.6 5.4 6.4 -3.1 2.8 4.5 -10.5 -24.7 -2.9 Latvia GDP (annual % change) 1.5 3.3 3.5 1.4 2.8 2.9 -0.4 -5.9 0.9 Unemployment (annual %) 6.6 5.9 5.7 6.7 6.1 6.0 7.5 11.0 12.3 House prices (annual % change) -1.4 6.0 6.0 -2.6 3.8 5.3 -9.5 -26.2 -8.6 Lithuania GDP (annual % change) 2.1 3.2 2.2 1.8 2.5 2.3 -0.4 -7.1 1.2 Unemployment (annual %) 7.1 5.9 5.5 7.3 6.7 6.6 7.6 10.5 14.8 House prices (annual % change) 2.8 6.2 5.9 1.7 3.7 4.9 -8.8 -28.1 -5.3 Global indicators US GDP (annual %) 2.5 2.3 1.7 2.3 1.4 1.5 1.2 -3.3 0.1 EU GDP (annual %) 1.0 2.3 1.3 0.7 1.5 1.4 -0.8 -5.7 0.4 Brent Crude Oil (USD/Barrel) 83.8 80.4 76.1 83.1 79.0 75.4 72.4 48.1 58.9 Euribor 6m (%) 3.58 2.39 1.73 3.47 2.14 1.72 3.34 0.22 0.02 Global growth remains weak, but development is varied across regions and countries. After the summer, European economies will start to recover as inflation normalises and interest rates decline. US growth, on the other hand, is expected to slow slightly later this year and in 2025, as a result of less fiscal stimulus and lags from tight monetary policy. Geopolitical risks remain elevated. The situation in the Middle East could lead to higher oil prices. Natural gas prices have stayed low, however, and at current levels, energy prices are not driving inflation. Some commodity prices and freight costs have started to rise, which could complicate the path to normal inflation and further delay central bank rate cuts. In Sweden, GDP growth will gradually increase in the second half of this year as real wages, and hence household consumption, increase. Next year, growth will pick up further, and GDP will increase by close to 3%. The labour market will weaken further this year before employment increases again next year as growth picks up. In 2024, GDP is expected to grow modestly in Latvia and Lithuania and fall further in Estonia. Growth is likely to pick up and be broad-based in 2025. Exports and manufacturing have been the weakest spot, and external demand is expected to pick up toward the end of the year. ===== SIDA 34 ===== Swedbank – Report for the Second quarter│ 2024│34 Sensitivity The table below shows the credit impairment provisions that would result from the negative and positive scenarios, which are considered reasonably possible, being assigned a probability weight of 100 per cent. Post-model expert credit adjustments are assumed to be constant in the results. Note 11 Bank taxes and resolution fees Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Swedish bank tax 277 276 292 553 584 Lithuanian bank tax 438 508 325 946 325 Latvian bank tax 111 107 0 218 0 Resolution fees 219 213 227 432 453 Total 1 045 1 104 844 2 149 1 362 Swedish bank tax refers to Risk tax on credit institutions that was introduced from 1 January 2022. It is applied on credit institutions with a tax base exceeding SEK 150bn. Lithuanian bank tax refers to the Lithuanian temporary solidarity contribution on credit institutions that was introduced and is calculated from May 2023 until the end of 2024. The bank tax is 60 percent and is applied to a part of the net interest income earned during the period which exceeds the average net interest income of four historical years by more than 50 percent. Latvian bank tax refers to the temporary fee that was introduced January 1, 2024 and applies for 2024 only. The bank tax will be charged with 0.5% per quarter calculated on the total portfolio of floating mortgage loans signed before October 31, 2023. ===== SIDA 35 ===== Swedbank – Report for the Second quarter│ 2024│35 Note 12 Loans The following tables present loans to the public and credit institutions at amortised cost by industry sectors, loans and credit impairment provisions ratios. ===== SIDA 36 ===== Swedbank – Report for the Second quarter│ 2024│36 ===== SIDA 37 ===== Swedbank – Report for the Second quarter│ 2024│37 Note 13 Credit impairment provisions The following table presents a summary of credit impairment provisions for financial instruments that are subject to the credit impairment requirements. The following table presents gross carrying amounts and nominal amounts by stage for financial instruments that are subject to the credit impairment requirements. ===== SIDA 38 ===== Swedbank – Report for the Second quarter│ 2024│38 Reconciliation of credit impairment provisions for loans The tables below provide a reconciliation of credit impairment provisions for loans to the public and credit institutions at amortised cost. ===== SIDA 39 ===== Swedbank – Report for the Second quarter│ 2024│39 Loan commitments and financial guarantees The tables below provide a reconciliation of credit impairment provisions for loan commitments and financial guarantees. Note 14 Credit risk exposures 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 Assets Cash and balances with central banks 316 886 252 994 358 417 Interest-bearing securities 307 264 237 460 328 661 Loans to credit institutions 46 523 67 534 60 527 Loans to the public 1 896 756 1 863 375 1 857 443 Derivatives 23 973 39 563 53 702 Other financial assets 19 865 7 972 21 273 Total assets 2 611 268 2 468 899 2 680 024 Contingent liabilities and commitments Guarantees 42 702 43 835 45 012 Loan commitments 258 737 249 422 268 579 Total contingent liabilities and commitments 301 439 293 257 313 591 Total 2 912 707 2 762 156 2 993 615 ===== SIDA 40 ===== Swedbank – Report for the Second quarter│ 2024│40 Note 15 Intangible assets Indefinate useful life Definate useful life Total Goodwill & Brand Other intangible assets Jan-Jun Full year Jan-Jun Jan-Jun Full year Jan-Jun Jan-Jun Full year Jan-Jun SEKm 2024 2023 2023 2024 2023 2023 2024 2023 2023 Opening balance 13 861 13 850 13 850 6 580 6 036 6 036 20 440 19 886 19 886 Additions 0 0 717 1 265 764 717 1 265 764 Amortisation for the period -412 -641 -336 -412 -641 -336 Impairment for the period 0 -32 -81 -11 -32 -81 -11 Sales and disposals 0 0 0 0 -3 0 0 -3 Exchange rate differences 249 11 689 0 1 3 249 12 692 Closing balance 14 110 13 861 14 538 6 852 6 580 6 453 20 962 20 440 20 992 During the second quarter of 2023, an impairment of SEK 32m was made in relation to internally developed software, which will no longer be used. There were no additional indications of impairment of intangible assets. During 2023, impairments of SEK 81m was made in relation to internally developed software, which will no longer be used. Note 16 Amounts owed to credit institutions 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 Central banks 13 984 10 098 21 688 Banks 62 304 46 540 90 446 Other credit institutions 6 521 8 161 6 337 Repurchase agreements 9 779 7 256 14 422 Total 92 587 72 054 132 893 Note 17 Deposits and borrowings from the public 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 Private customers 728 085 702 565 715 700 Corporate customers 554 076 527 863 581 997 Total deposits from customers 1 282 162 1 230 428 1 297 697 Cash collaterals received 3 094 3 470 5 117 Swedish National Debt Office 114 94 69 Repurchase agreements - Swedish National Debt Office 1 3 0 Repurchase agreements 3 835 268 383 Total borrowings 7 044 3 835 5 570 Deposits and borrowings from the public 1 289 206 1 234 262 1 303 267 ===== SIDA 41 ===== Swedbank – Report for the Second quarter│ 2024│41 Note 18 Debt securities in issue, senior non-preferred liabilities and subordinated liabilities 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 Commercial papers 322 497 263 334 364 025 Covered bonds 369 045 345 615 345 014 Senior unsecured bonds 120 570 118 238 127 654 Structured retail bonds 526 1 361 1 875 Total debt securities in issue 812 638 728 548 838 568 Senior non-preferred liabilities 119 174 104 828 86 799 Subordinated liabilities 40 843 32 841 39 855 Total 972 655 866 217 965 222 Jan-Jun Full-year Jan-Jun Turnover 2024 2023 2023 Opening balance 866 217 872 976 872 976 Issued 376 625 893 599 520 547 Repurchased -6 131 -20 295 -7 577 Repaid -297 690 -899 951 -456 023 Interest, change in fair values or hedged items in fair value hedges and changes in exchange rates 33 634 19 888 35 298 Closing balance 972 655 866 217 965 222 Note 19 Derivatives Nominal amount Positive fair value Negative fair value 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 2024 2023 2023 2024 2023 2023 Derivatives in hedge accounting One-to-one fair value hedges 612 108 558 527 576 955 4 531 6 415 694 15 489 15 654 30 464 Portfolio fair value hedges 333 826 352 036 356 900 6 810 9 665 18 300 1 113 503 1 Cash flow hedges 8 369 8 188 8 681 768 596 1 113 Total 954 303 918 751 942 536 12 109 16 676 20 107 16 602 16 157 30 465 Non-hedge accounting derivatives 35 087 320 33 026 557 33 542 667 883 110 887 411 1 249 556 895 096 925 558 1 241 788 Gross amount 36 041 622 33 945 308 34 485 203 895 219 904 087 1 269 663 911 698 941 715 1 272 253 Offset amount -871 246 -864 523 -1 215 961 -879 141 -868 262 -1 223 155 Total 23 973 39 563 53 702 32 557 73 453 49 098 1) Interest rate swaps 2) Cross currency basis swaps The Group trades in derivatives in the normal course of business and for the purpose of hedging certain positions that are exposed to share price, interest rate, credit and currency risks. The carrying amounts of all derivatives refer to fair value including accrued interest. ===== SIDA 42 ===== Swedbank – Report for the Second quarter│ 2024│42 Note 20 Valuation categories for financial instruments The tables below present the carrying amount and fair value of financial assets and financial liabilities, according to valuation categories. The methodologies to determine the fair value are described in the Annual and Sustainability Report 2023, note G47 Fair value of financial instruments. ===== SIDA 43 ===== Swedbank – Report for the Second quarter│ 2024│43 ===== SIDA 44 ===== Swedbank – Report for the Second quarter│ 2024│44 Note 21 Financial instruments recognised at fair value The determination of fair value, the valuation hierarchy and the valuation process for fair value measurements in Level 3 are described in the Annual and Sustainability Report 2023, note G47 Fair value of financial instruments. The financial instruments are distributed in three levels depending on the degree of observable market data in the valuation and activity in the market. • Level 1: Unadjusted quoted price on an active market. • Level 2: Adjusted quoted price or valuation model with valuation parameters derived from an active market. • Level 3: Valuation model where significant valuation parameters are non-observable and based on internal assumptions. The following tables present fair values of financial instruments recognised at fair value split between the three valuation hierarchy levels. Transfers between levels are reflected as per the fair value at closing day. There were no transfers of financial instruments between valuation levels 1 and 2 during the period. Financial instruments are transferred to or from level 3 depending on whether the internal assumptions have changed in significance to the valuation. Level 3 mainly comprises strategic unlisted shares. These include holdings in VISA Inc. C shares that are subject to selling restrictions until June 2028 and under certain conditions may have to be returned. Liquid quotes are not available for these shares, therefore the ===== SIDA 45 ===== Swedbank – Report for the Second quarter│ 2024│45 fair value is established with significant elements of Swedbank’s own internal assumptions. The carrying amount of the holdings in Visa Inc. C amounted as per 30 June 2024 to SEK 579m (SEK 534m 31 December 2023). In the Group’s insurance operations, fund units are held in which the customers have chosen to invest their insurance savings. The holdings are reported in the balance sheet as financial assets where the customers bear the investment risk and are normally measured at fair value according to level 1, because the units are traded in an active market. The Group’s obligations to insurance savers are reported as financial liabilities where the customers bear the investment risk because it is the customers who bear the entire market value change of the assets. The liabilities are normally measured at fair value according to level 2. During the first quarter 2022, trading was closed in whole or in part in Russia and Eastern Europe targeted funds. Remaining unit holdings, only correlated to the Russia funds, and related liabilities to the insurance savers have been measured at fair value according to level 3 and been measured at value SEK 0m. Note 22 Assets pledged, contingent liabilities and commitments 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 Loans used as collateral for covered bonds¹ 397 653 381 369 382 836 Assets recorded in register on behalf of insurance policy holders 390 723 335 375 328 232 Other assets ledged for own liabilities 122 793 151 763 142 009 Other assets pledged 17 223 18 253 17 197 Assets pledged 928 393 886 760 870 274 Nominal amounts Guarantees 42 702 43 835 45 012 Other 107 77 72 Contingent liabilities 42 808 43 911 45 084 Nominal amounts Loans granted not paid 204 165 192 919 211 500 Overdraft facilities granted but not utilised 54 572 56 503 57 079 Commitments 258 737 249 422 268 579 1) The pledge is defined as the borrower’s nominal debt including accrued interest and refers to the loans of the total available collateral that are used as the pledge at each point in time. Swedbank is cooperating with authorities in the United States who are conducting investigations into Swedbank’s historic AML compliance and the Group's response thereto, as well as related issues involving the Group's anti-money laundering controls and certain individuals and entities who may at some time have been customers of the Group. Investigations by the Department of Justice (DoJ), the Securities and Exchange Commission (SEC) and the Department of Financial Services (DFS) in New York are ongoing. In June 2023, Swedbank reached an agreement to remit SEK 37m related to violation of OFAC regulations. The timing of the completion of the investigations is still unknown and the outcomes are still uncertain. It is therefore not possible to reliably estimate the amount of any potential settlement or fines, which could be material. In February 2024, the Estonian Prosecutor’s Office closed its investigation of suspected money laundering offences by Swedbank AS in 2014–2016. The criminal investigation originated from the Estonian FSA’s previous investigation of Swedbank AS in 2019. ===== SIDA 46 ===== Swedbank – Report for the Second quarter│ 2024│46 Note 23 Offsetting financial assets and liabilities The tables below present recognised financial instruments that have been offset in the balance sheet under IAS 32 and those that are subject to legally enforceable master netting or similar agreements but do not qualify for offset. Such financial instruments relate to derivatives, repurchase and reverse repurchase agreements, securities settlements, securities borrowing and lending transactions. Collateral amounts represent financial instruments or cash collateral received or pledged for transactions that are subject to a legally enforceable master netting or similar agreements and which allow for the netting of obligations against the counterparty in the event of a default. Collateral amounts are limited to the amount of the related instruments presented in the balance sheet; therefore any over-collateralisation is not included. Amounts that are not offset in the balance sheet are presented as a reduction to the financial assets or liabilities in order to derive net asset and net liability exposure. Financial assets Financial liabilities 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 2024 2023 2023 Financial assets and liabilities, which have been offset or are subject to netting Gross amount 1 059 921 1 036 690 1 407 287 999 225 1 035 778 1 365 235 Offset amount -944 414 -951 626 -1 292 356 -952 309 -955 365 -1 299 550 Net amounts presented in the balance sheet 115 507 85 064 114 932 46 916 80 414 65 685 Related amounts not offset in the balance sheet Financial instruments, netting arrangements 24 278 21 929 22 305 14 236 21 930 22 306 Financial Instruments, collateral 81 708 45 980 58 489 11 281 19 294 20 740 Cash collateral 4 573 7 460 26 306 10 784 38 055 19 095 Total amount not offset in the balance sheet 110 559 75 369 107 100 36 300 79 279 62 142 Net amount 4 949 9 695 7 832 10 615 1 135 3 543 The amount offset for derivative assets includes offset cash collateral of SEK 7 296m (9 542) derived from the balance sheet item Amounts owed to credit institutions. The amount offset for derivative liabilities includes offset cash collateral of SEK 15 191m (13 281), derived from the balance sheet item Loans to credit institutions. ===== SIDA 47 ===== Swedbank – Report for the Second quarter│ 2024│47 Note 24 Capital adequacy, consolidated situation This note contains the information made public according to the Swedish Financial Supervisory Authority Regulation FFFS 2008:25. Additional periodic information according to Regulation (EU) No 575/2013 of the European Parliament and of the Council on Supervisory Requirements for Credit Institutions and Implementing Regulation (EU) No 2021/637 of the European Commission can be found on Swedbank’s website: https://www.swedbank.com/investor-relations/reports-and- presentations/risk-reports. In the consolidated situation the Group’s insurance companies are accounted for according to the equity method instead of full consolidation. Joint venture companies EnterCard Group AB, Invidem AB and P27 Nordic Payments Platform AB consolidates by proportional method instead of accounted for with the equity method. Otherwise, the same principles for consolidations are applied as for the Group. 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun Consolidated situation, SEKm 2024 2024 2023 2023 2023 Available own funds Common Equity Tier 1 (CET1) capital 170 511 166 143 160 659 156 880 152 511 Tier 1 capital 192 269 187 988 174 848 171 844 167 442 Total capital 212 259 208 908 195 648 192 499 193 791 Risk-weighted exposure amounts Total risk exposure amount 847 922 859 345 847 121 837 943 819 021 Capital ratios as a percentage of risk-weighted exposure amount Common Equity Tier 1 ratio 20.1 19.3 19.0 18.7 18.6 Tier 1 ratio 22.7 21.9 20.6 20.5 20.4 Total capital ratio 25.0 24.3 23.1 23.0 23.7 Additional own funds requirements to address risks other than the risk of excessive leverage as a percentage of risk-weighted exposure amount Additional own funds requirements to address risks other than the risk of excessive leverage 2.7 2.7 2.7 2.7 2.3 of which: to be made up of CET1 capital 1.8 1.8 1.8 1.8 1.5 of which: to be made up of Tier 1 capital 2.1 2.1 2.1 2.1 1.8 Total SREP own funds requirements 10.7 10.7 10.7 10.7 10.3 Combined buffer and overall capital requirement as a percentage of risk-weighted exposure amount Capital conservation buffer 2.5 2.5 2.5 2.5 2.5 Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State Institution-specific countercyclical capital buffer 1.7 1.7 1.7 1.6 1.6 Systemic risk buffer 3.1 3.1 3.1 3.1 3.1 Global Systemically Important Institution buffer Other Systemically Important Institution buffer 1.0 1.0 1.0 1.0 1.0 Combined buffer requirement 8.3 8.3 8.3 8.2 8.2 Overall capital requirements 19.0 18.9 19.0 18.9 18.4 CET1 available after meeting the total SREP own funds requirements 13.8 13.0 12.4 12.3 12.6 Leverage ratio Total exposure measure 2 874 539 2 957 209 2 689 307 2 876 831 2 892 936 Leverage ratio, % 6.7 6.4 6.5 6.0 5.8 Additional own funds requirements to address the risk of excessive leverage as a percentage of total exposure measure Additional own funds requirements to address the risk of excessive leverage of which: to be made up of CET1 capital Total SREP leverage ratio requirements 3.0 3.0 3.0 3.0 3.0 Leverage ratio buffer and overall leverage ratio requirement as a percentage of total exposure measure Leverage ratio buffer requirement Overall leverage ratio requirement 3.0 3.0 3.0 3.0 3.0 Liquidity Coverage Ratio¹² Total high-quality liquid assets, average weighted value 676 585 691 200 709 683 722 060 717 976 Cash outflows, total weighted value 480 805 499 465 521 325 536 211 537 832 Cash inflows, total weighted value 56 832 58 558 58 123 55 863 55 578 Total net cash outflows, adjusted value 423 974 440 907 463 202 480 347 482 255 Liquidity coverage ratio, % 160.9 158.2 154.2 151.0 149.8 Net stable funding ratio Total available stable funding 1 748 751 1 781 575 1 720 299 1 722 723 1 741 688 Total required stable funding 1 413 022 1 415 898 1 390 353 1 420 508 1 415 740 Net stable funding ratio, % 123.8 125.9 123.7 121.3 123.0 1) The liquidity coverage ratio has been re-calculdated and figures prior to 2024 have been adjusted. 2) High quality liquid assets and cashflows refer to the average of the values at each month -end during the last 12 months. The ratio is calculated as an average of the 12 last month-end observations. ===== SIDA 48 ===== Swedbank – Report for the Second quarter│ 2024│48 Common Equity Tier 1 capital 30 Jun 31 Dec 30 Jun Consolidated situation, SEKm 2024 2023 2023 Shareholders' equity according to the Group's balance sheet 199 612 198 760 184 627 Anticipated dividend -8 511 -17 049 -8 342 Value changes in own financial liabilities -113 -150 -294 Cash flow hedges -9 -9 -17 Additional value adjustments -461 -609 -605 Goodwill -14 123 -13 874 -14 551 Deferred tax assets -15 -25 -38 Intangible assets -3 663 -4 470 -4 669 Insufficient coverage for non-performing exposures -58 -61 -12 Deductions of CET1 capital due to Article 3 CRR -139 -140 -134 Shares deducted from CET1 capital -49 -46 -41 Pension fund assets -1 961 -1 667 -3 412 Total 170 511 160 659 152 511 Risk exposure amount 30 Jun 31 Dec 30 Jun Consolidated situation, SEKm 2024 2023 2023 Credit risks, standardised approach 59 299 59 387 55 743 Credit risks, IRB 403 161 374 538 351 224 Default fund contribution 350 335 149 Settlement risks #N/A #N/A #N/A Market risks 17 242 16 592 17 122 Credit value adjustment 1 609 2 986 1 981 Operational risks 96 123 96 123 79 995 Additional risk exposure amount, Article 3 CRR 17 320 29 234 73 086 Additional risk exposure amount, Article 458 CRR 252 817 267 925 239 720 Total 847 922 847 121 819 021 SEKm % Capital requirements¹ 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun Consolidated situation, SEKm / % 2024 2023 2023 2024 2023 2023 Capital requirement Pillar 1 138 061 138 023 132 353 16.3 16.3 16.2 of which Buffer requirements² 70 227 70 254 66 831 8.3 8.3 8.2 Capital requirement Pillar 2³ 22 640 22 618 18 592 2.7 2.7 2.3 Pillar 2 guidance 4 240 4 236 8 190 0.5 0.5 1.0 Total capital requirement including Pillar 2 guidance 164 940 164 877 159 135 19.5 19.5 19.4 Own funds 212 259 195 648 193 791 1) Swedbank's calculation based on the SFSA's announced capital requirements, including Pillar 2 requirements and Pillar 2 guidance. 2) Buffer requirements includes systemic risk buffer, capital conservation buffer, countercyclical capital buffer and buffer for other systemically important institutions. 3) Individual Pillar 2 requirement according to decision from SFSA SREP 2023. SEKm % Leverage ratio requirements¹ 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun Consolidated situation, SEKm / % 2024 2023 2023 2024 2023 2023 Leverage ratio requirement Pillar 1 86 236 80 679 86 788 3.0 3.0 3.0 Leverage ratio Pillar 2 guidance 14 373 13 447 13 018 0.5 0.5 0.5 Total capital requirement including Pillar 2 guidance 100 609 94 126 99 806 3.5 3.5 3.5 Tier 1 capital 192 269 174 848 167 442 1) Swedbank's calculation based on the SFSA's announced leverage ratio requirements, including Pillar 2 requirements and Pil lar 2 guidance. ===== SIDA 49 ===== Swedbank – Report for the Second quarter│ 2024│49 Note 25 Internal capital requirement This note provides information on the internal capital assessment according to chapter 8, section 5 of the SFSA’s regulation on prudential requirements and capital buffers (2014:12). The internal capital assessment is published in the interim report according to chapter 8, section 4 of the SFSA’s regulation and general advice on annual reports from credit institutions and investment firms (2008:25). A bank must identify, measure and manage the risks with which its activities are associated and have sufficient capital to cover these risks. The purpose of the Internal Capital Adequacy Assessment Process (ICAAP) is to ensure that the bank is sufficiently capitalised to cover its risks and to conduct and develop its business activities. Swedbank applies its own models and processes to evaluate its capital need for all relevant risks. The models that serve as a basis for the internal capital assessment evaluate the need for economic capital over a one-year horizon at a 99.9 per cent confidence level for each type of risk. Diversification effects between various types of risks are not taken into account in the calculation of economic capital. As a complement to the economic capital calculation, scenario-based simulations and stress tests are conducted at least once a year. The analyses provide an overview of the most important risks Swedbank is exposed to by quantifying their impact on the income statement and balance sheet as well as the own funds and risk-weighted assets. The purpose is to ensure efficient use of capital. This methodology serves as a basis of proactive risk and capital management. As of 30 June 2024, the internal capital assessment for Swedbank’s consolidated situation amounted to SEK 50.8bn (SEK 50.5bn as of 31 December 2023). The capital to meet the internal capital assessment, i.e. the Total capital, amounted to SEK 212.3bn (SEK 195.6bn as of 31 December 2023) (see Note 24). Swedbank’s internal capital assessment using its own models is not comparable with the estimated capital requirement that the SFSA releases quarterly and does not consider the SFSA risk-weight floor for Swedish mortgages. The internally estimated capital requirement for the parent company amounted to SEK 35.2bn (SEK 34.4bn as of 31 December 2023) and the total capital amounted to SEK 154.7bn (SEK 142.8bn as of 31 December 2023) (see the parent company’s note on capital adequacy). In addition to what is stated in this interim report, risk management and capital adequacy according to the Basel III framework are described in more detail in Swedbank’s Annual and Sustainability Report 2023 as well as in Swedbank’s yearly Risk Management and Capital Adequacy Report, available on www.swedbank.se. Note 26 Risks and uncertainties Swedbank’s earnings are affected by changes in the global marketplace over which it has no control, including macroeconomic factors such as GDP, asset prices and unemployment as well as changes in interest rates, equity prices and exchange rates. Geopolitical situation The geopolitical situation is still uncertain due to the instability in the Middle east, the ongoing Russian war of aggression against Ukraine, and an increasingly protectionist trade policies that could affect the financial risks. Although these factors have had a significant impact on the economy, Swedbank has low to negligible direct exposures to counterparts in the warring countries and is assessed to have the ability to manage the indirect risks that may arise due to the heightened geopolitical uncertainty. Economic growth and outlook Economic growth in the Nordic and Baltic regions shows subtle signs of recovery, although being highly dependent on the global economy that is affected by several uncertainties. Future trade policies and various geopolitical tensions may negatively impact growth. Interest rate trends and monetary policy Global inflation is declining, but it remains significantly above the monetary policy target levels. Both lowering interest rates too early and keeping them high for too long pose a risk to the economies of the Nordic and Baltic regions, which could ultimately cause an economic downturn and increased unemployment. This concern is exacerbated by relatively high levels of household debt and short-term interest rate binding periods in Sweden, making them particularly sensitive to further interest rate hikes. Challenges and risk in digitalisation Swedbank monitors operational risks and focuses on areas where the risks are considered highest. Swedbank works continuously to ensure high service availability for its customers and conducts regular cyber resilience tests. The threat landscape, as a consequence of the geopolitical situation, keeps information security and cybersecurity in focus. Swedbank continuously invests in and improves technology, as well as implements controls in our digital channels to combat financial crime and protect our customers. Swedbank has even a close collaboration within the Swedish Bankers’ Association with the goal of creating common guidelines for customer protection against fraud. Anti-money laundering and Counter terrorist financing and other compliance risks ===== SIDA 50 ===== Swedbank – Report for the Second quarter│ 2024│50 For risks related to the ongoing investigations of authorities in US related to historic anti-money laundering compliance and response related to anti- money laundering controls, please refer to Note 22 Assets pledged, contingent liabilities and commitments. The risk level related to Market Conduct risk (within Conduct risk) is elevated and risk-mitigating activities are ongoing. Tax The tax area is complex and there can be a scope for different interpretations. Practices and interpretations of applicable laws can be changed, sometimes retroactively. In the event that the tax authorities and, where appropriate, the tax courts decide on a different interpretation than what Swedbank initially made, it could impact the Group’s operations, results and financial position. In addition to what is stated in this interim report, detailed descriptions are provided in Swedbank’s 2023 Annual and sustainability report and in the disclosures in the Risk Management and Capital Adequacy reports available at www.swedbank.com. Change in value if the market interest rate rises by one percentage point Impact in SEKm on the net value of assets and liabilities, including derivatives, when market interest rates are increased by one percentage point. 30 June 2024 < 5 yrs 5-10 yrs > 10 yrs Total SEK -960 -171 340 -791 Foreign currencies 257 118 -80 295 Total -703 -53 260 -496 31 December 2023 SEK -1 289 38 331 -920 Foreign currencies 1 110 -242 -69 799 Total -179 -204 262 -121 Impact in SEKm on the net value of assets and liabilities measured at fair value through profit or loss, when market interest rates are increased by one percentage point. 30 June 2024 < 5 yrs 5-10 yrs > 10 yrs Total SEK 631 -640 331 322 Foreign currencies -994 281 -102 -815 Total -363 -359 229 -493 31 December 2023 SEK 788 -805 428 411 Foreign currencies -583 -293 -18 -894 Total 205 -1 098 410 -483 Note 27 Related-party transactions During the period normal business transactions were executed between companies in the Group, including other related companies such as associates and joint ventures. Partly owned savings banks are important associates. ===== SIDA 51 ===== Swedbank – Report for the Second quarter│ 2024│51 Note 28 Swedbank’s share 30 Jun 31 Dec 30 Jun Number of outstanding ordinary shares 2024 2023 2023 Issued shares SWED A 1 132 005 722 1 132 005 722 1 132 005 722 Repurchased shares SWED A -6 687 262 -7 209 322 -7 209 322 Number of outstanding ordinary shares on the closing day 1 125 318 460 1 124 796 400 1 124 796 400 SWED A Last price, SEK 218.10 201.70 181.85 Market capitalisation, SEKm 245 431 226 871 204 544 During 2024, within Swedbank's share-based compensation programme, Swedbank AB transferred 457 264 shares at no cost to employees. Q2 Q1 Q2 Jan-Jun Jan-Jun Earnings per share 2024 2024 2023 2024 2023 Average number of shares Average number of shares before dilution 1 125 300 646 1 125 014 707 1 124 725 789 1 125 157 676 1 124 218 171 Weighted average number of shares for potential ordinary shares that incur a dilutive effect due to share- based compensation programme 3 656 521 3 121 382 2 438 823 3 638 487 2 761 392 Average number of shares after dilution 1 128 957 167 1 128 136 089 1 127 164 612 1 128 796 163 1 126 979 563 Profit, SEKm Profit for the period attributable to shareholders of Swedbank 8 594 8 428 9 122 17 022 16 683 Earnings for the purpose of calculating earnings per share 8 594 8 428 9 122 17 022 16 683 Earnings per share, SEK Earnings per share before dilution 7.64 7.49 8.11 15.13 14.84 Earnings per share after dilution 7.61 7.47 8.09 15.08 14.80 ===== SIDA 52 ===== Swedbank – Report for the Second quarter│ 2024│52 Financial statements - Swedbank AB Income statement, condensed Parent company Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Interest income 22 675 22 275 21 495 44 950 39 631 Interest expense -16 825 -16 611 -14 093 -33 437 -25 404 Net interest income 5 849 5 663 7 402 11 513 14 227 Dividends received 3 394 5 627 1 370 9 021 7 632 Net commission income 1 812 1 764 1 736 3 575 3 434 Net gains and losses on financial items 1 013 266 528 1 279 870 Other income 1 199 1 096 965 2 295 1 888 Total income 13 267 14 416 12 001 27 683 28 051 Staff costs 3 156 3 103 2 885 6 259 5 768 Other expenses 1 939 1 829 1 709 3 768 3 266 Depreciation/amortisation and impairment of tangible and intangible fixed assets 1 320 1 304 1 379 2 624 2 644 Administrative fines¹ -40 850 Total expenses 6 415 6 236 5 933 12 651 12 529 Profit before impairments, Swedish bank tax and resolution fees 6 852 8 180 6 068 15 032 15 523 Credit impairments, net -287 109 123 -178 670 Impairment of financial assets² 125 125 Swedish bank tax and resolution fees 335 337 339 672 676 Operating profit 6 804 7 734 5 481 14 538 14 052 Tax expense 1 365 951 1 243 2 316 2 343 Profit for the period 5 439 6 783 4 238 12 222 11 709 1) During the first quarter 2023 a provision was made related to the Office of Foreign Assets Control (OFAC) of SEK 40m. During the sec ond quarter an agreement was reached with OFAC. The provision was reversed and has been recognised in Swedbank AS in Latvia. 2) Impairment of financial assets refers to impairment of Invidem AB. Statement of comprehensive income, condensed Parent company Q2 Q1 Q2 Jan-Jun Jan-Jun SEKm 2024 2024 2023 2024 2023 Profit for the period reported via income statement 5 439 6 783 4 238 12 222 11 709 Total comprehensive income for the period 5 439 6 783 4 238 12 222 11 709 ===== SIDA 53 ===== Swedbank – Report for the Second quarter│ 2024│53 Balance sheet, condensed Parent company 30 Jun 31 Dec 30 Jun SEKm 2024 2023 2023 Assets Cash and balances with central banks 166 061 116 547 234 262 Loans to credit institutions 832 628 817 011 809 882 Loans to the public 486 027 471 612 470 075 Interest-bearing securities 310 985 235 641 325 547 Shares and participating interests 86 993 77 642 70 847 Derivatives 31 988 49 650 72 216 Other assets 44 700 37 196 41 678 Total assets 1 959 381 1 805 299 2 024 506 Liabilities and equity Amounts owed to credit institutions 218 516 152 479 218 979 Deposits and borrowings from the public 908 818 864 906 928 412 Value change of the hedged liabilities in portfolio hedges of interest rate risk 188 209 Debt securities in issue 439 087 378 554 486 051 Derivatives 49 655 96 284 86 510 Other liabilities and provisions 56 999 44 476 60 136 Senior non-preferred liabilities 119 174 104 828 86 799 Subordinated liabilities 40 843 32 841 39 855 Untaxed reserves 12 362 12 362 5 367 Equity 113 740 118 359 112 396 Total liabilities and equity 1 959 381 1 805 299 2 024 506 Pledged collateral 122 577 151 609 141 994 Other assets pledged 17 223 18 253 17 197 Contingent liabilities 76 107 88 535 92 978 Commitments 243 095 235 739 252 600 ===== SIDA 54 ===== Swedbank – Report for the Second quarter│ 2024│54 Statement of changes in equity, condensed Parent company SEKm Restricted equity Non-restricted equity January-June 2024 Share capital Statutory reserve Share premium reserve Retained earnings Total Opening balance 1 January 2024 24 904 5 968 13 206 74 281 118 359 Dividend -17 048 -17 048 Share based payments to employees 207 207 Total comprehensive income for the period 12 222 12 222 Closing balance 30 June 2024 24 904 5 968 13 206 69 662 113 740 January-December 2023 Opening balance 1 January 2023 24 904 5 968 13 206 67 424 111 502 Dividend -10 964 -10 964 Share based payments to employees 301 301 Total comprehensive income for the period 17 520 17 520 Closing balance 31 December 2023 24 904 5 968 13 206 74 281 118 359 January-June 2023 Opening balance 1 January 2023 24 904 5 968 13 206 67 424 111 502 Dividend -10 964 -10 964 Share based payments to employees 149 149 Total comprehensive income for the period 11 709 11 709 Closing balance 30 June 2023 24 904 5 968 13 206 68 318 112 396 Cash flow statement, condensed Parent company Jan-Jun Full-year Jan-Jun SEKm 2024 2023 2023 Cash flow from operating activities 39 043 -137 536 -17 520 Cash flow from investing activities 11 325 5 794 13 589 Cash flow from financing activities -854 32 975 22 879 Cash flow for the period 49 514 -98 767 18 948 Cash and cash equivalents at beginning of period 116 547 215 314 215 314 Cash flow for the period 49 514 -98 767 18 948 Cash and cash equivalents at end of period 166 061 116 547 234 262 ===== SIDA 55 ===== Swedbank – Report for the Second quarter│ 2024│55 Capital adequacy 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun Parent company, SEKm 2024 2024 2023 2023 2023 Available own funds Common equity tier 1 (CET1) capital 113 273 111 949 109 148 106 441 106 100 Tier 1 capital 135 032 133 793 123 336 121 405 121 031 Total capital 154 670 153 667 142 832 140 837 146 348 Risk-weighted exposure amounts Total risk exposure amount 441 696 435 166 427 077 414 671 393 039 Capital ratios as a percentage of risk-weighted exposure amount Common equity tier 1 ratio 25.6 25.7 25.6 25.7 27.0 Tier 1 ratio 30.6 30.7 28.9 29.3 30.8 Total capital ratio 35.0 35.3 33.4 34.0 37.2 Additional own funds requirements to address risks other than the risk of excessive leverage as a percentage of risk-weighted exposure amount Additional own funds requirements to address risks other than the risk of excessive leverage 1.2 1.2 1.2 1.2 2.1 of which: to be made up of CET1 capital 0.8 0.8 0.8 0.8 1.4 of which: to be made up of Tier 1 capital 0.9 0.9 0.9 0.9 1.6 Total SREP own funds requirements 9.2 9.2 9.2 9.2 10.1 Combined buffer and overall capital requirement as a percentage of risk-weighted exposure amount Capital conservation buffer 2.5 2.5 2.5 2.5 2.5 Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State Institution-specific countercyclical capital buffer 1.7 1.6 1.7 1.7 1.6 Systemic risk buffer 0.0 0.0 0.0 0.0 0.0 Global Systemically Important Institution buffer Other Systemically Important Institution buffer Combined buffer requirement 4.2 4.1 4.2 4.2 4.1 Overall capital requirements 13.4 13.4 13.4 13.4 14.2 CET1 available after meeting the total SREP own funds requirements 20.4 20.5 20.3 20.4 21.1 Leverage ratio Total exposure measure 1 459 154 1 571 858 1 308 778 1 532 147 1 529 710 Leverage ratio, % 9.3 8.5 9.4 7.9 7.9 Additional own funds requirements to address the risk of excessive leverage as a percentage of total exposure measure Additional own funds requirements to address the risk of excessive leverage of which: to be made up of CET1 capital Total SREP leverage ratio requirements 3.0 3.0 3.0 3.0 3.0 Leverage ratio buffer and overall leverage ratio requirement as a percentage of total exposure measure Leverage ratio buffer requirement Overall leverage ratio requirement 3.0 3.0 3.0 3.0 3.0 Liquidity coverage ratio¹² Total high-quality liquid assets, average weighted value 550 102 571 529 588 366 595 633 581 236 Cash outflows, total weighted value 489 366 504 906 530 163 547 814 547 225 Cash inflows, total weighted value 50 064 51 895 51 162 50 033 50 918 Total net cash outflows, adjusted value 439 302 453 011 479 001 497 781 496 308 Liquidity coverage ratio, % 125.9 126.8 123.5 120.0 117.5 Net stable funding ratio Total available stable funding 1 057 450 1 095 569 1 033 099 1 044 967 1 039 516 Total required stable funding 623 768 614 594 596 745 601 829 589 546 Net stable funding ratio, % 169.5 178.3 173.1 173.6 176.3 1) The liquidity coverage ratio has been re-calculdated and figures prior to 2024 have been adjusted. 2) High quality liquid assets and cashflows refer to the average of the values at each month-end during the last 12 months. The ratio is calculated as an average of the 12 last month-end observations. ===== SIDA 56 ===== Swedbank – Report for the Second quarter│ 2024│56 Risk exposure amount 30 Jun 31 Dec 30 Jun Parent company, SEKm 2024 2023 2023 Credit risks, standardised approach 130 835 125 798 115 135 Credit risks, IRB 204 306 196 446 182 355 Default fund contribution 350 335 149 Settlement risks #N/A #N/A #N/A Market risks 17 149 16 690 17 063 Credit value adjustment 1 575 2 940 1 977 Operational risks 50 860 50 860 42 408 Additional risk exposure amount, Article 3 CRR 200 500 25 558 Additional risk exposure amount, Article 458 CRR 36 423 33 508 8 394 Total 441 696 427 077 393 039 SEKm % Capital requirements¹ 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun Parent company, SEKm / % 2024 2023 2023 2024 2023 2023 Capital requirement Pillar 1 53 705 51 942 47 554 12.2 12.2 12.1 of which Buffer requirements² 18 369 17 775 16 111 4.2 4.2 4.1 Capital requirement Pillar 2³ 5 433 5 253 8 254 1.2 1.2 2.1 Total capital requirement including Pillar 2 guidance 59 138 57 195 55 808 13.4 13.4 14.2 Own funds 154 670 142 832 146 348 0 0 0 1) Swedbank's calculation based on the SFSA's announced capital requirements, including Pillar 2 requirements and Pillar 2 guidance. 2) Buffer requirements includes capital conservation buffer and countercyclical capital buffer. 3) Individual Pillar 2 requirement according to decision from SFSA SREP 2023. SEKm % Leverage ratio requirements¹ 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun Parent company, SEKm / % 2024 2023 2023 2024 2023 2023 Leverage ratio requirement Pillar 1 43 775 39 263 45 891 3.0 3.0 3.0 Total leverage ratio requirement including Pillar 2 guidance 43 775 39 263 45 891 3.0 3.0 3.0 Tier 1 capital 135 032 123 336 121 031 0 0 0 1) Swedbank's calculation based on the SFSA's announced leverage ratio requirements, including Pillar 2 requirements and Pillar 2 guidance. ===== SIDA 57 ===== Swedbank – Report for the Second quarter│ 2024│57 Alternative performance measures Swedbank prepares its financial statements in accordance with IFRS as adopted by the EU, as set out in Note 1. The interim report includes a number of alternative performance measures, which exclude certain items that 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. Measure and definition Purpose Net investment margin before trading interest is deducted Calculated as Net interest income before trading-related interest is deducted, in relation to average total assets. The average is calculated using month-end figures1, including the prior year end. The nearest IFRS measure is Net interest income and can be reconciled in Note 5. Considers all interest income and interest expense, independent of how it has been presented in the income statement. Allocated equity Allocated equity is the operating segment’s equity measure and is not directly required by IFRS. The Group’s equity attributable to shareholders is allocated to each operating segment based on capital adequacy rules and estimated capital requirements based on the bank’s internal Capital Adequacy Assessment Process (ICAAP). The allocated equity amounts per operating segment are reconciled to the Group Total equity, the nearest IFRS measure, in Note 4. Used by Group Management for internal governance and operating segment performance management purposes. Return on allocated equity Calculated based on profit for the period (annualised) attributable to the shareholders for the operating segment, in relation to average allocated equity for the operating segment. The average is calculated using month-end figures 1, including the prior year end. The allocated equity amounts per operating segment are reconciled to the Group Total equity, the nearest IFRS measure, in Note 4. Used by Group Management for internal governance and operating segment performance management purposes. Income statement excluding expenses for the administrative fines Amount related to expenses is presented excluding expenses for administrative fines. The amounts are reconciled to the relevant IFRS income statement lines on page 6. Provides comparability of figures between reporting periods. Return on equity excluding expenses for administrative fines Calculated based on profit for the period (annualised) attributable to the shareholders excluding expenses for the administrative fines, in relation to average equity attributable to shareholders’ of the parent company. The average is calculated using month-end figures1, including the prior year end. Profit for the period attributable to shareholders excluding expenses for administrative fines are reconciled to Profit for the period allocated to shareholders, the nearest IFRS measure, on page 6. Provides comparability of figures between reporting periods. Cost/Income ratio excluding expenses for administrative fines Total expenses excluding expenses related to administrative fines in relation to total income. Total expenses excluding expense for administrative fines is reconciled to Total expenses, the nearest IFRS measure, on page 6. Provides comparability of figures between reporting periods. 1) The month-end figures used in the calculation of the average can be found on page 71 of the Fact book. ===== SIDA 58 ===== Swedbank – Report for the Second quarter│ 2024│58 Measure and definition Purpose Other alternative performance measures These measures are defined in the Fact book on page 77 and are calculated from the financial statements without adjustment.  Share of Stage 1 loans, gross  Share of Stage 2 loans, gross  Share of Stage 3 loans, gross  Equity per share  Cost/Income ratio  Credit Impairment ratio  Loans to customers/Deposits from customers ratio  Credit impairment provision ratio Stage 1 loans  Credit impairment provision ratio Stage 2 loans  Credit impairment provision ratio Stage 3 loans  Return on equity1  Total credit impairment provision ratio Used by Group Management for internal governance and operating segment performance management purposes. 1) The month-end figures used in the calculation of the average can be found on page 71 of the Fact book. ===== SIDA 59 ===== Swedbank – Report for the Second quarter│ 2024│59 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 2024 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, 15 July 2024 Göran Persson Chair Göran Bengtsson Annika Creutzer Hans Eckerström Board Member Board Member Board Member Kerstin Hermansson Helena Liljedahl Anna Mossberg Board Member Board Member Board member Per Olof Nyman Biljana Pehrsson Biörn Riese Board Member Board Member Board Member Roger Ljung Åke Skoglund Board Member Board Member Employee Representative Employee Representative Jens Henriksson President and CEO ===== SIDA 60 ===== Swedbank – Report for the Second quarter│ 2024│60 Review report Introduction We have reviewed the condensed interim financial information (interim report) of Swedbank AB (publ) as of 30 June 2024 and the six-month period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of the interim financial information 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 Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of 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 International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Annual Accounts Act for credit institutions and securities companies, regarding the Group, and with the Annual Accounts Act for credit institutions and securities companies, regarding the Parent Company. Stockholm, 16 July 2024 PricewaterhouseCoopers AB Anneli Granqvist Martin By Authorised Public Accountant Authorised Public Accountant Auditor in charge ===== SIDA 61 ===== Swedbank – Report for the Second quarter│ 2024│61 Publication of financial information The Group’s financial reports can be found on www.swedbank.com/ir Financial calendar 2024 Interim report for the third quarter 2024 23 October 2024 For further information, please contact: Jens Henriksson President and CEO Telephone +46 8 585 934 82 Anders Karlsson CFO Telephone +46 8 585 938 75 Annie Ho Head of Investor Relations Telephone +46 70 343 7815 Erik Ljungberg Head of Group Communications and Sustainability Telephone +46 73 988 3557 Information on Swedbank’s strategy, values and share is also available on www.swedbank.com. Swedbank AB (publ) Registration no. 502017-7753 Head office Visiting adress: Landsvägen 40 172 63 Sundbyberg Postal address: Swedbank AB SE-105 34 Stockholm, Sweden Telephone +46 8 585 900 00 www.swedbank.com