SBAB's operating profit for January-March 2010 increased to SEK 172 million (161)

SBAB's operating profit for the first quarter of 2010 rose 7%, compared with the
corresponding period of the preceding year, to SEK 172 million (161). SBAB's
total lending increased to SEK 234.4 billion (226.0). SBAB's total market share
in the lending segment continued to rise to 9.7% (9.5). The loan loss rate
remained very low and corresponded to 0.01% (0.01).
"We got off to a favourable start to the year with high business volume,
continued low loan losses and significantly higher net interest income," says
Eva Cederbalk, CEO of SBAB.

Continued low loan losses
SBAB's operating profit rose 7% to SEK 172 million (161). Loan losses net
amounted to SEK 5 million (6). The loan loss rate remains very low and
corresponds to 0.01% (0.01). Net interest income was significantly higher than
in the first quarter of the preceding year and amounted to SEK 476 million
(307). The main reasons for the favourable earnings were the high volume growth,
combined with the stabilisation of the interest margin in the residential
mortgage market and increased stability in global bond markets. The item "Net
income/expense from financial instruments measured at fair value" amounted to an
expense of SEK 129 million (income: 7) due to unrealised fair value changes in
hedge-accounted derivative items. Expenses amounted to SEK 156 million (151) due
mainly to an increase in personnel costs because SBAB recruited more employees
to meet the high demand in its lending operations.

Continued high demand for residential loans
The flow of customers to SBAB remains substantial and demand for its lending
operations remained robust. New lending totalled SEK 14.3 billion (11.4).
Lending to the retail market rose to SEK 139.8 billion (135.8). New lending
amounted to SEK 8.2 billion (6.6). In this segment, SBAB's market share
increased to 8.1% (8.0).

Demand for lending to the corporate market and tenant-owner associations was
also high and amounted to SEK 94.6 billion (90.1). SBAB's share of the market
for lending to the corporate market and tenant-owner associations was 13.9%
(13.4).

Deposits
SBAB offers deposits for the retail market, corporate market and tenant-owner
associations. Customers are offered deposit products at a competitive interest
rate and on straightforward terms. At the end of the period, deposits amounted
to SEK 4.7 billion (4.7).


Funding
SBAB attaches considerable importance to having a well-diversified funding
portfolio, which requires an active market presence and a flexible range of
products.
While SBAB was affiliated with the Swedish Government's guarantee programme for
medium-term funding during 2009, the company discontinued its participation in
the programme in November 2009.

The total value of outstanding debt securities in issue rose SEK 10.8 billion to
SEK 259.9 billion (249.1). SBAB's wholly owned subsidiary, The Swedish Covered
Bond Corporation, SCBC, has issued a five-year covered bond totalling EUR 1
billion and a seven-year covered bond amounting to EUR 1 billion.

Events after the balance-sheet date
SBAB's Annual General Meeting on 21 April elected Arne Liljedahl as the new
Chairman of the Board and Jakob Grinbaum and Hanna Lagercrantz as new Board
Members. At the same time, Board Members Lennart Francke, Helena Levander, Karin
Moberg and Lena Smeby-Udesen were re-elected. Former Chairman Claes Kjellander
and Board Members Lars Linder-Aronson and Michael Thorén stepped down in
conjunction with the Annual General Meeting.


For further information:

Eva Cederbalk, CEO, SBAB
Telephone: +46-8-614 43 01
Mobile: +46-70-523 23 02
eva.cederbalk@sbab.se <mailto:eva.cederbalk@sbab.se>

Lena Hedlund, Chief Communication Officer, SBAB
Telephone: +46-8-614 38 49
Mobile: +46-70-858 07 25
lena.hedlund@sbab.se <mailto:lena.hedlund@sbab.se>



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