FreningsSparbanken

1
Capital market day Stockholm, Sweden November 30,
2001
FöreningsSparbanken Jan Lidén Group EVP,
Swedbank Markets
2
Swedbank Markets
3
Performance 2001
SEK M
3000
2500
2 253
1 956
2000
1500
1 267
1 029
1000
Q3/2000
Q3/2001
Q3/2000
Q3/2001
500
0
Revenues
Costs
4
Continuous cost efficiency
Cost/income ratio Swedbank Markets
0,80
Cost/income ratio
0,70
0,68
0,64
0,60
0,56
0,53
0,50
0,40
1998
1999
Q3/2000
Q3/2001
5
Operating profit 2001
MSEK
1200
986
1000
927
800
737
617
600
400
200
0
1998
1999
Q3/2000
Q3/2001
6
High quality credit portfolio

• Markets has for some time adjusted its risk
  profile
• Conservative lending
• Prioritised profitability and quality over volume
• Strengthened analysis and monitoring including a
  series of portfolio stress tests
• The result is a balanced portfolio with limited
  risk exposure, in particular to troubled
  industries and countries
• Trading risks have been directed towards higher
  ranked banks and shorter tenors

7
The merger preparations confirmed...

• There is significant growth potential
• The importance of brand name
• That Markets has a high level of competence
• That Markets business model and organization
  have considerable merits

8
Mixed market environment 2002

• The stock market stabilizes
• Increased liquidity
• Reduction of uncertainty
• Beginning of the end (of weakening economic
  growth)
• Currency and interest rates markets remain stable
• Interest rate spreads narrow
• Interest rates increase marginally
• No inflationary pressures

9
Positive trend in profitability
25,0
20,0
19,9
17,0
15,0
11,1
10,0
9,2
5,0
1998
1999
Q3/2000
Q3/2001
10
Core activities 2002

• First priority Increased cross selling to
  existing customers
• Particular focus on Midcorps and High Net Worth
  Individuals
• Second priority Development of new products
• Capital markets products, in particular equity
  and savings related