SBAB's operating profit for 2008 increased to SEK 585 million

SBAB's operating profit for 2008 increased to SEK 585 million 

SBAB's operating profit for 2008 amounted to SEK 585 million (SEK 258 million).
The value of the credit portfolio increased to SEK 183,959 million (SEK 167,981
million). Demand for SBAB's savings accounts remained high and, at the end of
December, deposits totalled SEK 3,542 million (SEK 759 million). 
“During a year characterised by extremely difficult market conditions, it is
gratifying that we succeeded in increasing our volumes of lending and deposits
and reported an improvement in operating profit,” says SBAB's CEO, Eva
Cederbalk.

Results
Operating profit increased to SEK 585 million (SEK 258 million). Net interest
income was slightly lower than in the preceding year, at SEK 1,141 million(SEK
1,177 million). Total operating income amounted to SEK 1,127 million(SEK 755
million), with the improvement attributable mainly to a reduction in the
negative impact of unrealized changes in market value compared with the
preceding year. Expenses for 2008 amounted to SEK 520 million (SEK 517 million),
the same level as in 2007. 

Lending
Lending to consumers amounted to SEK 183,959 million, compared with SEK 167,981
million at the beginning of the year. Part of the increase was attribut-able to
SBAB's acquisition of loans from the partly owned company FriSpar Bolån AB in
order to facilitate borrowing through the issuance of covered bonds in SBAB's
wholly owned subsidiary The Swedish Covered Bond Corporation(hereinafter
referred to as SCBC). New lending within the consumer market amounted to SEK
19,164 million (SEK 19,676 million). The consumer market portfolio amounted to
SEK 116,823 million (SEK 104,125 million). SBAB's market share for lending to
the consumer market was 7.5% (8.1%). SBAB's partner business constitute an
important distribution channel within the consumer market.
New lending in the corporate market amounted to SEK 13,261 million(SEK 10,808
million). The corporate market portfolio amounted to SEK 67,136 million (SEK
63,856 million). SBAB's market share for lending to the corporate market was
11.4% (13.4%).

Deposits
Demand for SBAB's savings accounts was very high and the amount deposited at the
end of the year totalled SEK 3,542 million (SEK 759 million). SBAB offers two
types of savings accounts with competitive interest rates. Interest is credited
from the very first krona regardless of the amount deposited and withdrawals are
free of charge.


Funding
Since SBAB attaches considerable importance to having a well-diversified funding
portfolio, an active market presence and a flexible range of products are
essen-tial. At the start of the financial crisis, SBAB decided at an early stage
to main-tain very high access to liquid funds and has continuously acted in
accordance with this aim. Despite the increased unrest and reduced market
liquidity, SBAB had healthy access to funds during every phase of the crisis.
SBAB has been able to realise its target of achieving an increased share of
long-term funding. The total value of outstanding securities issued was SEK
198,643 million (SEK 191,807 million). Funding through the issuance of covered
bonds is effected through SBAB's wholly owned subsidiary SCBC. The credit rating
institutes Moody's and Standard & Poor's have set a credit rating of Aaa/AAA for
the issued covered bonds.

Liquidity portfolio
SBAB's liquidity portfolio is a liquidity reserve whose purpose is to manage
liquid-ity and funding risks. On 31 December 2008, the portfolio amounted to SEK
31.5 billion (SEK 31.0 billion) and consisted of assets classified as “Loan
receivables and accounts receivable” in an amount of SEK 23.1 billion (SEK 0.0
billion) and “Securities measured at fair value through profit and loss” of SEK
8.4 billion (SEK 31.0 billion). The objective of having these securities in the
liquidity portfolio is long term and they consist only of items that achieve the
highest rating, Aaa from Moody's or AAA from Standard & Poor's.

Current events 
On January 29 2009, the Government of Sweden decided to propose a bill whereby
the Swedish Parliament is asked to approve that SBAB's mission be expanded to
enable SBAB, in addition to its current activities, to also engage in banking
operations and any activities that are naturally connected to such operations in
accordance with the Banking and Finance Business Act (SFS 2004:297) and in fund
operations in accordance with the Swedish Investment Fund Act (SFS 2004:46).

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

Per Balazsi, Head of Accounts and Risk Department, SBAB
Telephone: +46 8 614 43 24
Mobile: +46 733 68 43 24
E-mail: per.balazsi@sbab.se


SBAB offers mortgage loans and savings via the Internet and telephone, and also
grants loans to the corporate sector. SBAB's mission is to operate a competitive
business that contributes to sharpening competition in the Swedish mortgage
loans market.
For further information, visit us at www.sbab.se