SBAB's operating profit for 1 January - 30 June 2010 amounted to SEK 350 million (549)

SBAB's operating profit for the first half of 2010 declined compared with the
year-earlier period to SEK 350 million (549). SBAB's total lending increased to
SEK 242.2 billion (226.0). SBAB's total market share in the lending segment
continued to rise to 9.8% (9.5). The loan loss rate remained very low and
corresponded to 0.04% (0.06).

 "The trend for the first six months of the year was favourable, with strong net
interest income, low loan losses, increasing market shares and growth in the
deposit portfolio," says Eva Cederbalk, CEO of SBAB.


SBAB's operating profit declined to SEK 350 million (549). The decline was
attributable to unrealised earnings effects charged to "Net income/expense from
financial instruments measured at fair value" during the first half of the year.
These effects arose in SBAB's recognition of earnings primarily as a result of
the company's management of currency and interest-rate risk. Not taking these
unrealised earnings effects into consideration, SBAB's operations performed
well, with high net interest income growth, a limited increase in expenses and
continued low loan losses, thereby resulting in increased profit.

Positive net interest income trend
Net interest income was highly positive at SEK 949 million (655) and was
significantly higher than in the year-earlier period. The increase was primarily
attributable to a favourable volume of business, as well as the stabilisation of
the interest margin in the residential mortgage market. Net income/expense from
financial instruments amounted to an expense of SEK 221 million (income: 231).
Loan losses declined to SEK 44 million (51), net. The loan loss rate remained
very low and corresponded to 0.04% (0.06). Expenses totalled SEK 311 million
(293) and were primarily attributable to an increase in personnel costs because
SBAB recruited more employees as a result of the company's continued high volume
of business and inflow of customers.

Continued high demand for residential mortgages
SBAB continued to experience high demand in its lending operations. New lending
totalled SEK 29.8 billion (28.6) and total lending to the public amounted to SEK
242.2 billion (226.0), up 7%.


Lending to the retail market rose to SEK 143.9 billion (135.8), up 6%. New
lending amounted to SEK 17.6 billion (16.4). SBAB's market share in this segment
increased to 8.2% (8.0).

Demand for lending to the corporate market and tenant-owner associations was
also high. Lending to the corporate market and tenant-owner associations
amounted to SEK 98.3 billion (90.1), up 9%. SBAB's share of the market for
lending to the corporate market and tenant-owner associations rose to 14.0%
(13.4).

Increased deposits
Deposits from the retail market, corporate market and tenant-owner associations
increased to SEK 5.2 billion (4.7) at the end of the period.

Funding
SBAB attaches considerable importance to having a well-diversified funding
portfolio, which requires an active market presence and a flexible range of
products.
Although 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. At the end of the period, the volume
outstanding under the Government-guaranteed programme totalled SEK 16.2 billion
(21.4). Repurchases during the quarter amounted to SEK 2.0 billion.
SBAB has long taken a proactive approach to extending the remaining term of its
funding by reducing the proportion of short-term loans and extending its funding
through repurchases and the issuance of bonds with longer terms.
SBAB maintained a favourable liquidity situation, with a liquidity reserve
corresponding to 74 days (73) measured in Maximum Cumulative Outflow (MCO).


For further information:

Eva Cederbalk, CEO, SBAB
Telephone: +46-8-614 43 01
Mobile: +46-70-523 23 02
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




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