SBAB Bank Interim report Jan-Sep 2011: Favourable business operations with growing deposits

SBAB Bank Interim report Jan-Sep 2011: Favourable business operations
with growing deposits

SBAB Bank's CEO, Eva Cederbalk, comments:

SBAB Bank's business operations are performing well. Deposits are
growing steadily and loan losses remain very low. However, the
wait-and-see approach of the housing market slowed the rate of new
lending, causing lending to decline somewhat during the final quarter of
the period.

SBAB Bank's strategy of early pre-funding of future bond maturities and
extending the maturity of its funding has been positive as the cost of
funding in the turbulent financial markets has increased. However, the
effects of this turbulence on the market valuation of various financial
instruments resulted in unrealised negative effects on operating profit.

Efforts to broaden SBAB Bank's operations continue and the aim is to
offer the market additional bank products in 2012. Overall, SBAB Bank is
well equipped to face continued uncertainties in the market.

Performance in January - September 2011 compared with January -
September 2010

  · Net interest income amounted to SEK 1,160 million (1,377).
  · Operating profit totalled SEK 67 million (425).
  · Operating profit excluding the net result of financial instruments
amounted to
SEK 606 million (859).
  · Expenses amounted to SEK 490 million (444). The increase was
according to plan and mainly due to the efforts to broaden the product
offering.
  · Loan losses remained very low and the net effect for the period was
a positive SEK 20 million (neg: 39).
  · Deposit volume amounted to SEK 7.1 billion (6.1*).
  · Lending volume totalled SEK 243.8 billion (249.1*), and the market
share was 9.1% (9.6*).
  · Without taking the transitional regulations into consideration, the
Core Tier 1 capital ratio was 13.1% (14.1*) and the Tier 1 capital ratio
was 17.7% (19.1*).
  · The liquidity risk remained low and the maturity of funding was
extended further.

Performance in the third quarter of 2011 compared with the second
quarter of 2011

  · Net interest income amounted to SEK 378 million (377).
  · Operating profit rose SEK 163 million to SEK 197 million (34).
  · New lending totalled SEK 7.0 billion (7.3).

* As of 31 December 2010

SBAB Bank's interim report is attached to this mailing and downloadable
from: www.sbab.se/investor (http://www.sbab.se/investor)

For further information please contact:
Eva Cederbalk, CEO SBAB Bank
Telephone: +46-8-614 43 01, Mobile: +46-70-523 23 02,
eva.cederbalk@sbab.se (eva.cederbalk@sbab.se) (eva.cederbalk@sbab.se)

Christer Löfdahl, CFO SBAB Bank
Telephone: +46-8-614 38 40, Mobile: +46-725-31 38 40,
christer.lofdahl@sbab.se (christer.lofdahl@sbab.se) (christer.lofdahl@sb
ab.se)

Bernd Schmitz, Chief Press Officer SBAB Bank
Telephone: +46-8-614 43 94, Mobile: +46-727-44 43 94,
bernd.schmitz@sbab.se (bernd.schmitz@sbab.se)