2019 
Annual and ­ 
Sustainability Report

Financial information 2020
Q1 Interim report 
23 April
Q2 Interim report 
17 July
Q3 Interim report  20 October
Annual General Meeting 2020
The Annual General Meeting will be held on Thursday, 26 March at 11 am (CET) at Cirkus, Djurgårdsslätten 
43–45, Stockholm, Sweden. The proposed record day for the dividend is 30 March 2020. The last day for 
trading in Swedbank’s shares including the right to the dividend is 26 March 2020. For more information, 
see page 223 and the notice of the AGM at www.swedbank.com. While every care has been taken in the 
translation of this annual and sustainability report, readers are reminded that the original annual and 
­sustainability report, signed by the Board of Directors, is in Swedish.
Contents
Income, balance sheet and notes, Group
Income statement 
54
Statement of comprehensive income 
55
Balance sheet 
56
Statement of changes in equity 
57
Statement of cash flow 
58
Notes 
59
Income, balance sheet and notes, Parent company
Income statement 
154
Statement of comprehensive income 
154
Balance sheet 
155
Statement of changes in equity 
156
Statement of cash flow 
157
Notes 
158
Alternative performance measures 
192
Sustainability
Sustainability report 
194
Materiality analysis 
195
Sustainability management 
197
Notes
199
GRI Standards Index
212
Signatures of the Board of Directors and the CEO 
217
Auditors’ report 
218
Sustainability report – assurance report 
222
Annual General Meeting 
223
Market shares 
224
Five-year summary – Group 
225
Three-year summary – Business segments 
228
Definitions 
231
Contacts 
233
Swedbank in brief 
2
The year in brief 
4
CEO statement 
6
Goals and results 
8
Value creation 
10 
Business model 
12
Sustainability 
14
The share and owners
24
Board of Directors’ report
Financial analysis 
26
Swedish Banking 
30
Baltic Banking 
31
Large Corporates & Institutions 
32
Group Functions & Other 
33
Corporate governance report 
34 
Board of Directors 
46 
Group Executive Committee 
50
Disposition of earnings 
52

Vision
We enable people,  
businesses and  
society to grow.
We promote a sound and 
­sustainable financial situation 
for the many households and 
businesses.
Simple, open and caring.
Purpose
Values
1
Swedbank Annual and Sustainability Report 2019

1) Excluding the Swedish National Debt Office and repurchase agreements. 
2) Bank Giro transactions (Sweden) and domestic payments (Estonia, Latvia and Lithuania).
Market shares, per cent
Swedbank is a digital bank with 
physical meeting points
With over seven million private customers and 550 000 corporate customers, 
­Swedbank is the leading bank for the many households and businesses in our four 
home markets: Sweden, Estonia, Latvia and Lithuania. We are active mainly in 
­lending, payments and savings. We are available 24 hours a day through our digital 
channels and our customers can also meet us in any of our physical meeting points. 
Digital channels
APP AND INTERNET BANK
Everyday banking services
Sales
Virtual assistants
Physical meeting points
BRANCHES
168 in Sweden
99 in Baltic countries
CONTACT CENTER
Telephone, email, chat, social media
FLEXIBLE MEETING PLACES
Pop-up branches
Partners
COMPETENCE HUBS
Complex questions
Specialists
Learn more about 
­Swedbank
On our website
www.swedbank.com
In our interim reports: 
www.swedbank.com/­ir
In our risk and capital 
­adequacy reports: 
www.swedbank.com/­ir
Lending 
(­private)1
Lending 
(­corporate)1
Deposits 
(­private)
Deposits 
(­corporate) 
Payments2
Funds
Sweden
24
17
19
16
36
20
Estonia
44
38
50
45
58
41
Latvia
33
20
32
24
51
41
Lithuania
38
20
43
26
50
37
2
Swedbank Annual and Sustainability Report 2019
SWEDBANK IN BRIEF

Financial information, SEKm
2019
2018
Total income
45 960
44 222
Net interest income 
25 989
25 228
Net commission income
12 984
12 836
Net gains and losses on financial items 
3 629
2 112
Other income 1,2
3 358
4 046
Total expenses
19 984
16 835
Profit before impairments 
25 976
27 387
Depreciation/amortisation of tangible  
and intangible assets
87
314
Impairments 
1 469
521
Taxes
4 711
5 374
Profit for the year attributable to the shareholders 
19 697
21 162
Earnings per share, SEK, after dilution
17.56
18.89
Return on equity, %
14.7
16.1
Cost/income ratio, %
0.43
0.38
Common Equity Tier 1 capital ratio, % 
17
16.3
Credit impairment ratio, %
0.09
0.03
1) Includes income from sale of UC of SEK 677m in 2018.
2) Other income includes the items Net insurance, Share of profit or loss of associates, and Other income 
from the Group income statement.
0
5
10
15
20
19
18
17
16
15
0
3
6
9
12
15
191
18
17
16
15
0
20
40
60
80
100
Return on equity of at least  
15 per cent
%
50 per cent of profit for the  
year is paid as a dividend
SEK	
%
Sustainability is part 
of our DNA
Dow Jones Sustainability Index Score
 76
Low risk
Credit impairment ratio
 0.09 %
Continuosly innovative
Digital customer interactions per year
1.8 BN
Market-leading  
cost ­efficiency
Costs in relation to income, C/I ratio 
 0.46
Stable  
earnings
Return on equity
 14.7 %
 Return on equity 
 Goal
 Dividend per share 
 Dividend payout ratio
1) Board of Directors’ proposal.
Result burdened  
by higher costs
• Lower resolution fund fee and higher 
lending volumes upported net interest 
income
• Net commission income benefitted 
from higher income from cards and 
asset management
• Costs weighted by investigation costs
• Higher credit impairments due to 
oil-related provisions
• Strong capitalization
• Proposed dividend of SEK 8.80 
per share
3
Swedbank Annual and Sustainability Report 2019
SWEDBANK IN BRIEF

The year  
in brief
A selection of key events 
during the year.
25 APRIL
Strong capital and liquidity position
Interim report for the first quarter 2019.
16 JANUARY
Swedbank Robur appointed  
Fund Manager of the Year
Swedbank Robur has been appointed Fund Manager of the Year 2018 by Fondmarknaden.se 
for its iinvestment strategy and well-integrated sustainability work. In addition, Swedbank 
Robur American Fund was named North American Fund of the Year.
28 MARCH
Swedbank’s CEO Birgitte 
­­Bonnesen leaves the bank
Swedbank’s Board of Directors appoints current CFO Anders Karlsson  
as Acting President and CEO of Swedbank.
5 APRIL
Change in Chair
Chair Lars Idermark leaves Swedbank and is 
replaced by Deputy Chair Ulrika Francke.
27 FEBRUARY
Swedbank hires the law firm 
­Clifford Chance
Swedbank hires the law firm Clifford 
Chance to lead an internal investigation  
to confirm the facts and circumstances 
linked to historical shortcomings in regula-
tory compliance and exposure to money 
laundering.
21 FEBRUARY
The Swedish FSA laun-
ches an investigation of 
Swedbank
Together with the Estonian supervisory authorities the Swedish 
FSA starts to investigate what happened and whether Swed-
bank breached the anti-money laundering regulation. A number 
of US authorities also initiated investigations about Swedbank 
during the year
20 FEBRUARY
The television programme Uppdrag Granskning broad-
casts a show on money laundering and directs allegations 
against Swedbank
Money laundering is one of the industry’s biggest ­challenges. 
­Preventing money laundering is one of our highest priorities.
29 JANUARY
Increased mortgage volumes in 
Sweden and broad-based lending 
growth in the Baltic countries
Year-end report for 2018.
17 MAY
Investment in ­innovative  
digital services
Swedbank becomes one of three key 
investors in the fintech company 
Minna Technologies, which is expand-
ing in Europe. The bank and Minna 
became innovation partners in 2017 
with the aim of creating innovative 
digital services that add value for 
Swedbank’s customers.
25 APRIL
Swedbank 
establishes 
Anti-­
Financial 
Crime  
(AFC) unit 
A new unit is established to focus 
on preventing money laundering  
and ­combating otherfinancial crime.
4
Swedbank Annual and Sustainability Report 2019
THE YEAR IN BRIEF

19 JUNE
Extraordinary 
General Meeting
Göran Persson is elected as Chairman of the 
Board of Directors and Bo Magnusson as 
Deputy Chairman at the bank’s Extraordinary 
General Meeting.
27 JUNE
Investment in  
solar energy
Swedbank partners with Eneo Solutions to build Sweden’s largest 
solar park and reduce its carbon footprint, at the same time that the 
bank continues to develop sustainably oriented services and products. 
5 JULY
Strengthening KYC processes
Six Nordic banks (Danske Bank, DNB Bank, Nordea Bank, 
Skandinaviska Enskilda Banken, Svenska Handelsbanken, 
Swedbank) establish a joint venture to develop a platform for 
handling KYC (Know Your Customer) data on large and medi-
um-sized companies in the Nordic region. The objective is to 
improve the customer experience by simplifying KYC pro-
cesses for corporate customers while strengthening finan-
cial crime prevention in the Nordic region.
28 MAY
Development of innovative payment solutions 
Swedbank starts a commercial collaboration with the fintech company 
KACHING Retail to continue to develop flexible and smart payment solutions 
for both merchants and consumers.
17 JULY
Dividend policy changed  
from 75 to 50 per cent of 
annual profit 
Interim report for the second  
quarter 2019.
28 AUGUST
Swedbank’s new CEO
The bank’s Board of Directors appoints Jens ­Henriksson as the new ­President  
and CEO of Swedbank.
29 OCTOBER
Swedish SFA opens a sanction 
case into Swedbank
Swedbanks agrees with many of their 
observations and assessments.
22 SEPTEMBER
Responsible and ­sustainable 
banking 
Swedbank becomes one of the first banks to sign the UN’s Principles for Responsible 
Banking as part of an effort to integrate sustainability in its operations. By signing the 
principles, the bank commits to strategically adapt its business in line with the UN’s 
Sustainable Development Goals and the Paris Agreement. 
23 OCTOBER
Good credit quality and strong 
capitalisation
Interim report for the third quarter 2019.
1 OCTOBER
Gender equality  
and diversity
Swedbank is ranked as the third most equal com-
pany in Sweden in Equileap’s 2019 Financial Ser-
vices Gender Equality Global Report & Ranking. In 
the report Equileap ranked the 100 best companies 
on gender equality globally after analysing 3 519 
companies in 23 countries.
9 DECEMBER
Swedbank 
creates a new 
organisation 
for more 
transparent 
governance
 
5
Swedbank Annual and Sustainability Report 2019
THE YEAR IN BRIEF

A turbulent year with 
many challenges
I have had the privilege of working at Swedbank since 1 October 
2019. I have used my first weeks on the job to meet customers, 
colleagues, investors, authorities, union representatives, suppli-
ers, partners, competitors, journalists and other key stakeholders. 
These meetings have taken place in our home markets, but also in 
Germany, the UK and the US. The meetings with customers have 
been especially productive. It is for them that we exist. My pur-
pose has been to listen and learn. And I plan to continue doing so. 
I have been impressed after these meetings by the high level 
of skills of my colleagues, the professionalism in the bank, and the 
willingness to do the right thing and help our customers. I have 
also felt great support from our customers and owners. We are 
a strong bank with sound values and a strategy that both we 
and our customers are confident in.
Our vision at Swedbank is to enable people, businesses and 
society to grow. A growing society that today is best defined by 
the UN’s Sustainable Development Goals and where our purpose 
is to promote a sound and sustainable financial system for the 
many households and businesses. We have a desirable position. 
A large percentage of people and companies in our home markets 
see us as the leading bank and obvious platform for their financial 
services. Our customer relations are strong and built on mutual 
trust and loyalty. We are profitable, sustainable and together we 
mean a great deal for our customers and society as a whole. 
The road ahead is paved with these strengths.
Extensive work initiated with the goal of becoming a leader  
in the fight against financial crime 
The last year has shown, however, that we have to question 
whether we have lived up to our high ambitions. We have not 
maintained proper internal oversight and control over the bank’s 
operations and have not succeeded in preventing suspected 
money launderers from exploiting us. In addition, the working 
environment has on occasion been too loose with too many 
­decisions made without debate and sufficient transparency. 
We are now engaged in a comprehensive process to address 
our shortcomings. Much of the work is done, but a great deal still 
remains. A large share of the projects we have initiated to make 
Swedbank an even more sustainable bank that lives up to the 
­market’s high expectations will be completed in 2020. At the 
same time it is important to remember that protecting the bank 
from being exploited for money laundering and other criminal 
activity never ends. It continues every day.
Return to our roots and further increase in customer value
Swedbank is an inclusive bank. Our core business is to help a large 
number of customers, both individuals and companies. We believe 
in a traditional banking model based on close customer relations 
and advice and are dedicated and proud to help our customers at 
every stage of life. We offer innovative, proactive and customised 
offers and advice. We have a long-term perspective on value crea-
tion for our customers, employees, owners and society as a whole.
The hard thing isn’t knowing what to do, but doing it. We have 
to go back to our roots and core values: simple, open and caring.
Swedbank has a 200-year history of promoting a sound and 
sustainable financial situation for the many people. Swedbank is 
a bank with extremely competent and dedicated employees, but 
we now have to focus on our fundamental values.
For me, management means being open and letting the best 
ideas win. Having as simple an organisation and governance 
structure as possible, but also promoting a sound corporate 
­culture. And caring. 
Despite the challenges, 2019 contained a number of high-
lights. We continued to improve our offers for customers with  
an emphasis on digital solutions. This is an extensive process  
and has just begun, but Swedbank is well-positioned to continue 
to develop innovative solutions. Solutions that simplify the 
­customer experience while also providing more choice for 
our ­customers.
Important steps were taken during the year to provide greater 
customer value, including giving Baltic customers access to our 
virtual ­assistant. In Sweden we have improved our payment solu-
tion and now offer customers the option of using Apple Pay and 
Google Pay. Beginning this year we are also able to offer remote 
advisory sessions, where our ­customer service can be contacted 
through a chat function. Swedbank’s digital partnerships have 
continued and during the year we invested in and began collabo-
rating with Kaching Retail to develop even more convenient and 
effective mobile payment solutions, as well as Minna Technologies, 
whose subscription ­service, “My services,” has already helped our 
private customers save money. Our playfulness and innovation in 
developing useful digital solutions for our customers is a unique 
strength. 
We have high ambitions when it comes to contributing to 
­sustainable social development and during the year signed the 
UN Principles for Responsible Banking. Doing so means that we are 
committed to contributing to a sustainable future and that we will 
help our customers to make sustainable choices and investments. 
Financing projects with concrete sustainability criteria will be a 
priority. Robur is an important part of our sustainability work and 
therefore includes sustainability parameters in its investments.
Stable earnings
Global growth slowed during the year and this is also affecting 
economic development in our home markets. The ongoing trade 
war between the US and China and uncertainty surrounding 
Brexit hurt the economy for a large part of the year. Development 
is bifurcated, however, and there are glimmers of hope. The Nordic 
countries have shown resilience, supported by strong domestic 
consumption, and are well-equipped to handle an economic slow-
6
Swedbank Annual and Sustainability Report 2019
CEO STATEMENT

down. The housing market in Sweden is stable and household 
finances are strong with a high level of personal savings. 
Despite weaker global growth, Swedbank delivered a stable 
underlying result with continued high profitability and an 
increase in net interest income in both Sweden and the Baltic mar-
kets. Notwithstanding higher costs, mainly due to the ongoing 
investigations of suspected money laundering, our underlying 
costs are stable. Our capitalisation is strong with a healthy buffer 
relative to the regulators’ requirements. To further strengthen 
the bank’s financial position, the Board of Directors adopted a new 
dividend policy during the year where 50 per cent of profit will be 
distributed to the shareholders. 
The bank’s fundamental values and strengths as well as our 
robust financial position are a solid foundation to stand as there is 
no lack of challenges. We have to address our shortcomings with 
regard to money laundering. Consequently, we have to strengthen 
our internal controls and corporate governance. This must be 
done at the same time that we, in a challenging competitive 
­situation in the Swedish mortgage market, for example, with 
the margin pressure from both new and established players, will 
develop and strengthen our position in our home markets. We also 
have to continue working to become the preferred financial partner 
for small and midsize companies and follow our customers into 
the world.
As the leading bank for the many households and businesses, 
 we must have the right responses to these challenges and will 
have to focus on our fundamental values and competencies and 
deliver solutions that benefit us and our customers. For this, 
we will need the engagement, knowledge and experience of 
all 15 000 employees of Swedbank.
Stockholm in February 2020
Jens Henriksson 
President and CEO
Swedbank is a bank 
with extremely 
­competent and 
­dedicated employees, 
but we have to focus 
on our fundamental 
values.
7
Swedbank Annual and Sustainability Report 2019
CEO STATEMENT

Focus on responsible value creation…
Swedbank’s strong commitment to sustainability is fundamental to our ­business,  
and our goals will help to create long-term value for all our stakeholders. 
Goal
Increased customer value 
Increased employee engagement
Responsibility for climate change  
and society
Why?
Customer value, together with customer 
­satisfaction, trust and a positive brand image, 
explains why customers choose our products 
and services. High customer value is a precon-
dition to sustainable profitability. We track 
customer value through our own and public 
surveys to measure satisfaction, among 
other things.
Engaged and proud employees contribute to 
a successful business and satisfied customers. 
This requires that they have an opportunity 
to develop, feel that they have an influence, 
contribute to the bank’s purpose and goals,  
and are proud of Swedbank as an employer. 
Sustainable staffing is fundamental if Swed-
bank is going to continue to offer products  
and services of high quality. We work contin­
uously to develop and ­monitor these areas.
Swedbank’s aim is to promote sustainable 
development and to help people and companies 
make sustainable choices. Sustainable choices 
can mean how and which companies we 
finance as well as how we manage savings  
and pension capital. It can also mean teaching 
students to manage their finances, promoting 
entrepreneurship or setting high sustainability 
demands in the services and products we buy.
Result
Customer satisfaction, private customers 
Recommendation index 
GHG emissions
In Sweden customer satisfaction is mainly 
measured through the NKI survey. Satis­faction 
among private customers decreased in Sweden 
in 2019, from 66 to 63 and was unchanged 
among corporate customers. In the Baltic 
countries customer satisfaction is since 2018 
measured by the CSI survey which is simular 
to the Swedish survey. Compared with 2018 
customer satisfaction increased among pri-
vate customers in all three Baltic countries.
The willingness of recommending Swedbank 
as an employer, the so-called eNPS score, 
­further improved during the year.
• Swedbank has made good progress toward 
the Group’s climate goal to reduce direct 
emissions by 20 per cent between  
2017–2022.
• In November 2019 Swedbank Robur adopted 
new climate goals: That asset management 
will be in line with the Paris Agreement’s goal 
to limit the increase in the average global 
temperature to 1.5°C by 2025 and that 
Swedbank Robur’s entire asset management 
business will be carbon neutral by 2040. 
• Held nearly 3 800 lectures in schools to 
increase financial awareness and literacy 
among children and young adults, an increase 
of 15 per cent compared with 2018. 
0
5
10
15
20
25
30
35
2019
2018
2017
 2017  
 2018 
 2019
0
20
40
60
80
100
Lithuania 
(CSI)
Latvia 
(CSI)
Estonia 
(CSI)
Sweden 
(NKI privat)
20 000
25 000
30 000
2019
2018
2017
ton CO2e
 Result 
 Target 2022
8
Swedbank Annual and Sustainability Report 2019
GOALS AND RESULTS

…for customers, employees, owners and society as a whole
Return on equity of at least  
15 per cent 
Market-leading cost efficiency 
Solid capitalisation 
Swedbank’s shareholders demand a competi-
tive return on the capital they invest. At the 
same time the bank has to be profitable to 
stay competitive in the long term and create 
investment opportunities. We also have to 
ensure that the bank can withstand periods 
of major economic stress, which is largely 
determined by our earning capacity, risk level 
and capitalisation.
Digitisation is increasing competition and 
transparency in parts of the market at the 
same time that banking products and ser-
vices are becoming more standardised. As 
a result, the price of our services is becoming 
more important. To remain competitive in the 
long term requires continuous improvements 
to cost efficiency and internal processes, 
which create opportunities to invest in 
­increased customer value.
Swedbank’s capitalisation will ensure that it 
can withstand a stressed scenario. The bank’s 
CEO has therefore proposed a buffer relative to 
the regulators’ requirement of 1–3 percentage 
points. Strong capitalisation is also necessary 
to guarantee access to competitive capital mar-
ket funding. Regulators continuously tighten 
capital requirements, but Swedbank’s profita-
bility and solid capitalisation position it well to 
meet future changes in the requirements.
Return on equity, % 
Swedbank’s cost/income ratio compared 
with industry average 
Swedbank’s Common Equity Tier 1  
capital ratio, %
The return on equity was 14.7 per cent (16.1) 
during the year, compared with the target of 
15 per cent.
Costs rose in 2019 to SEK 19.9bn (16.8) due to 
increased investigative costs as well as higher 
staff and IT costs. At the same time the under-
lying cost level was stable. Swedbank’s cost/
income ratio in 2019 was 0.43 (0.38). The aver-
age for the three other major banks in Sweden 
– Nordea, SEB and ­Handelsbanken – was 0.55. 
The goal in 2020 is to keep underlying costs at 
about the same level as in 2019.
The Common Equity Tier 1 capital ratio as of 
31 December 2019 was 17.0 per cent (16.3). 
This compares with a total Common Equity 
Tier 1 capital requirement of 15.1 per cent. 
The Common Equity Tier 1 capital ratio and 
the capital requirement, expressed as a per-
centage, have since 2017 decreased due to the 
Swedish FSA’s decision to include the risk 
weight floor for Swedish mortgages as a basic 
capital requirement in Pillar 1, instead of as 
before, when it was applied within the overall 
capital assessment in Pillar 2.
0
3
6
9
12
15
18
2019
2018
2017
0.0
0.1
0.2
0.3
0.4
0.5
0.6
2019
2018
2017
0
5
10
15
20
25
2019
2018
2017
 Result 
 Target 
 Swedbank 
 Industry average
 CET1 capital ratio 
 Requirement
9
Swedbank Annual and Sustainability Report 2019
GOALS AND RESULTS

Stable earnings create value  
for our stakeholders
With over seven million private customers and more than 600 000 corporate customers, 
Swedbank has a leading position in financial products and services in Sweden, Estonia, 
Latvia and Lithuania. 
We focus on profitable long-term growth and therefore aim for low 
risk in our lending, stability in our earnings and high cost efficiency. 
Together with an innovative corporate culture, this creates value 
for both our customers and owners. Despite this, 2019 was a chal-
lenging year in which the bank failed to live up to the level expected 
of a bank with regard to managing money laundering risks. 
Swedbank offers products mainly in the areas of lending, pay-
ments and savings. We are a welcoming and inclusive bank for the 
many households and businesses with leading positions in all these 
product areas in our four home markets: Sweden, Estonia, Latvia 
and Lithuania. In Sweden we are the leader in mortgages, con-
sumer deposits, fund savings and bank giro payments. In Estonia 
we are the biggest in every product category, but we also have a 
strong position in Latvia and Lithuania, especially in retail banking.
Low risk
Maintaining low risks in our operations is the basis for building 
trust and our long-term survival. It allows us to finance our opera-
tions through deposits from the public and funding from the capi-
tal market in order to lend money to households and businesses 
at competitive prices, even during difficult economic times.
We achieve this in among other ways by maintaining low risk 
in our lending, which largely consists of mortgage loans secured 
by residential property and a well-diversified corporate portfolio. 
As a result, our credit impairments have been below 0.1 per cent 
of total lending more than five years in a row.
To better prepare for unforeseen events, the dividend policy 
was revised during the year from 75 per cent to 50 per cent of 
profit. We have a healthy buffer over and above the regulators’ 
capital and liquidity requirements. Our Common Equity Tier 1 
­capital ratio was 17.0 per cent at the end of 2019, compared with 
the requirement of 15.1 per cent, while our NSFR and LCR were 
120 and 182, respectively. 
Learn more about how we manage risk in note G3 on page 67 
and in our Pillar 3 report at www.swedbank.com/ir.
Market-leading cost efficiency
With a cost/income ratio of 0.43 per cent, Swedbank is one of the 
most cost-efficient major banks in the Nordic region. We achieve 
this by focusing on simplicity and availability. We are the largest 
bank in our home markets by number of customers. This gives us 
economies of scale, and by digitising basic banking products we 
can raise internal efficiency and at the same time give customers 
a better experience.
Cost efficiency also allows us to continuously invest in our 
products and channels and offer competitive prices to our cus-
tomers, at a time when transparency and choice are increasing 
due to digitisation. Costs were higher during the year as we con-
tinued digitization of our internal processes, but also had high 
costs related to investigations of the bank’s work against money 
laundering. Learn more about our costs in our other financial pub-
lications at www.swedbank.com/ir.
Stable earnings
We value consistent profitability over fast growth, since it creates 
stability and predictability for our customers and owners as well 
as society as a whole. This is why we do not follow short-term 
market trends and instead price our products based on risk and 
capital requirements. Together with our market leading cost effi-
ciency, it has helped us to reach our profitability goal of 15 per 
cent. Despite a turbulent year with increasing costs, we still man-
aged to reach a return of 14.7 per cent. This has contributed to our 
dividend goal to distribute 50 per cent of profit, at the same time 
that we have grown our credit portfolio. Learn more about our 
profitability on page 26.
Common Equity Tier 1 capital ratio, %
Cost/income ratio
0
5
10
15
20
25
19
18
17
16
15
0.0
0.1
0.2
0.3
0.4
0.5
19
18
17
16
15
Credit impairment ratio, %
0.00
0.02
0.04
0.06
0.08
0.10
19
18
17
16
15
10
Swedbank Annual and Sustainability Report 2019
VALUE CREATION

Sustainability is part of our DNA
Our roots are in the savings bank movement and by promoting 
savings and lending money to businesses and households we have 
supported the national economy for nearly 200 years.
Since we are a big part of the financial infrastructure in Sweden, 
Estonia, Latvia and Lithuania, it is critical that our IT systems are 
secure and that customers can rely on us. We also have a responsi-
bility, and an opportunity, to contribute to the sound and sustain­
able development of our customers, employees, owners and soci-
ety as a whole. During the year we have therefore invested in and 
improved our processes around the bank work to counter money 
laundering. We are also committed to integrate sustainability in 
our business strategy and strategy decision s, at the same time 
that we support global initiatives such as the UN’s Global Compact 
(the UN’s principles for sustainable business) and TCFD. 
Learn more about our sustainability work on pages 14–25 and 
www.swedbank.com/sustainability.
Continuously innovative
Swedbank has a strong innovation culture. Over the years we 
have often been the first to launch new digital solutions for our 
customers, who are becoming more digitally active. This is partly 
a result of the high IT maturity level in the markets we serve, but 
is also due to our large private customer base, our focus on every-
day banking services, and the IT competence of the Group Execu-
tive Committee and the Board of Directors.
At Swedbank, IT development is integrated with business 
development. Together with our flexible IT platform, this allows 
us to quickly launch new solutions for our customers. We realise, 
however, that we cannot do everything ourselves and therefore 
partner with various fintech firms such as Meniga and Mina Tjän-
ster (My Services) in a number of areas to continuously improve 
our offers and availability.
Learn more about our fintech partnerships on https:// 
www.swedbank.com/openbanking/.
Digital customer interactions, million
Return on equity, %
 Target
0
500
1 000
1 500
2 000
19
18
17
16
15
0
5
10
15
20
19
18
17
16
15
Dow Jones Sustainabillity Index Score
0
20
40
60
80
100
19
18
17
16
15
Customer-centric strategy
Swedbank’s overarching strategy is customer centric and rests on four pillars: available full-service bank, offerings based on our 
customers’ needs, high cost efficiency and low risk. Strategies are also in place at the product and channel level to support the 
ambition to be the leading bank and financial platform for the many households and business. To achieve this, we have chosen to 
prioritise seven strategic initiatives in the coming years.
1. Customer relations and trust based on data
The purpose of the initiative is to deeply analyse customer data and 
by doing so drive customer loyalty and build trust through effective, 
proactive, relevant and personal service and offers in the right chan-
nel at the right time.
2. Daily banking
By expanding functionality in our digital channels, including aggrega-
tion of account information from other financial service providers, 
increased use of virtual assistants and making it easier for our cus-
tomers to make their payments in a way that suits the individual’s 
needs – we ensure a positive customer experience.
3. Channel transformation
Since our customers increasingly want to reach us digitally, we con-
tinue to adapt the way we distribute our products and services. Our 
customers must be able to securely and easily bank through our digital 
channels, but can also get frictionless support at any of our physical 
meeting places.
4. Digital commerce offering
We defend our strong position within card acquiring and strengthen 
and develop our e-commerce offering towards our corporate custom-
ers by creating relevant commerce offerings through our own and 
external channels.
5. Digital lending process
To make it easier for our customers and increase internal efficiency, we 
are digitising our lending process. Our customers will be able to apply 
and be approved for a loan quickly and conveniently, 24 hours a day.
6. Financial health and advice 
With the ambition to make it easier for our customers to make deliber-
ate decisions that promote sound and sustainable finances through-
out life, the bank creates a concept around financial health and holistic 
advisory that will be rolled out in all channels ­during the coming years.
7. Corporate self-service and cash management
Improved self-service capabilities in our digital channels and improved 
cash management services will make it easier for our corporate 
­customers to control, optimise and administer payments, currencies 
and liquidity.
11
Swedbank Annual and Sustainability Report 2019
VALUE CREATION

Our business model must be built  
on a sustainable economy
Swedbank offers its customers secure and effective solutions to manage their 
­savings and at the same time meet their financing needs. This has to be done with 
the goal of a sound and sustainable financial situation for the many households  
and businesses.
An important part of society
Swedbank is part of the financial infrastructure, and thus an 
important part of society. By promoting savings and lending 
money to consumers and businesses, we increase financial 
well-being, support the national economy and help to create  
jobs in our home markets. Our business is affected by a number 
of ­factors, the most important of which are:
• Customer choice – Customers are increasingly choosing phone, 
computer and tablet for their financial services. At the same time 
many still want personal assistance with more complex ques-
tions. Our aim is to make day-to-day banking fully digital, but 
also offer personal assistance at our physical meeting places.
• Competition – Our competition consists of traditional banks  
as well as new firms. We therefore have to continuously improve 
our offers in among other ways by analysing customer data to 
design more personalised services and products.
• Macroeconomic development – As a deeply ingrained part  
of economy, we are dependent on the business cycle and what 
happens globally. To stay competitive and relevant, we have 
to be able to quickly adapt to changing market conditions.
• Regulation – The banking sector is subject to a number of 
­regulations, many of which are designed to increase financial 
stability and empower customers. This affects competition 
and how we price our products.
• Financial crime – Banks are to larger extent beeing used  
for financial crime. To improve security for our customers, but 
also for society as a whole, we have to continuously update  
the methods we use. Our aim is to follow the industry’s best 
­practices.
Net interest income is our largest source of income 
Swedbank’s main source of income is the interest paid on the 
money we lend. Lending must be financed, however, through 
deposits from businesses and private customers and through 
funding from the capital market. Net interest income, the bank’s 
most important profit variable, is the difference between the 
interest income on deposits and funding expenses. 
To contribute to the stability of the financial system, we have 
to understand and correctly price risk. It is also crucial to our 
­survival. The margin we earn on our lending has to be high enough 
to cover any credit impairments for borrowers who fail to pay 
interest or amortise their loans. It must also cover administrative 
expenses and provide a return on shareholders’ equity.
It is important for us that the money we lend contributes to sus-
tainable development. This is manifested in many ways. In 2017, 
for example, we established a green asset framework that pro-
vides a foundation for the issuance of green bonds, two of which 
have already been issued. The money is used to finance sustaina-
ble investments in real estate and renewable energy sources that 
reduce carbon emissions.
Net interest income and credit impairments are strongly tied 
to the real economy and are affected by factors such as economic 
growth, interest rates and unemployment. To limit the impact of 
a severe recession and continue to support our customers regard-
less of economic conditions, we also maintain capital for unfore-
seen losses. The size of this buffer, which largely consists of the 
capital our shareholders have invested, is determined by various 
regulators and depends in part on how risky the assets are con­
sidered to be. 
Funds and cards are important to net commission income
Net commission income is our second largest source of income  
and is comprised of a range of services and products that mainly 
generate fees. This income, adjusted for transaction expenses, is 
reported in the income statement as net commission income. The 
large part comes from asset management and cards. Our asset 
management company, Robur, managed SEK 1 083bn at year-end 
2019. To manage assets and cover costs, we charge a fee based on 
a percentage of the invested amount. Income in the fund business 
therefore depends on growth in assets under management, which 
in turn is affected by the stock market’s performance. Sustainabil-
ity aspects are important in asset management as well, and we 
have a fund, Swedbank Robur Global Impact, which invests in com-
panies that meet the UN’s 17 Sustainable Development Goals.
In the card business, which represents the large share of our 
payment operations, we are both a card issuer and payment 
acquirer. Our income is generated from customers who use our 
cards to make purchases and the stores and restaurants that use 
our terminals for payments. The income consists of annual fees, 
but is also based on transaction volume.
Personnel and IT are our largest operating expenses
Swedbank’s largest operating expense is salaries. Other major 
expenses include IT as well as properties and rents, which is partly 
because of the distribution network we provide our customers in 
the form of digital channels and physical meeting places. Swed-
bank is also a major taxpayer in the markets where we operate.
12
Swedbank Annual and Sustainability Report 2019
BUSINESS MODEL

Simplified income statement
+ Our income 
SEKm
Net interest income (interest income – interest 
expenses)
25 986
Lending generates interest income. Interest expenses are incurred for 
deposits (savings) and the bank’s capital market funding.
Net commission income
12 984
Fees charged for services such as cards and payments, asset management, 
loan commissions, equity trading, insurance and corporate finance.
Net gains and losses on financial items at fair value
3 629
Result of the market valuation of lending, funding, currencies and securi-
ties held by the bank. Arises through trading in financial instruments by 
customers and the bank itself and as a result of valuation effects in the 
accounts, primarily from interest and exchange rate movements.
Other income 
3 358
Share of result from associated companies, services sold to cooperating 
savings banks, net insurance, capital gains.
Total income 
45 960
– Our expenses 
SEKm
–Staff costs 
11 119
To develop the best services and give professional advice, we have to be 
a relatively personnel-intensive business dependent on attracting and 
developing people with the right skills as customer needs change.
– Other expenses
8 865
An effective customer offering generates development, production and 
distribution expenses. IT expenses are incurred for development, systems 
and licences. Production expenses are to develop new and existing prod-
ucts and maintain product platforms. Distribution expenses through the 
retail network are significantly higher than when transactions are exe-
cuted through digital channels.
= Profit before impairment 
25 976
– Impairments
1 556
Credit impairments are natural for a bank as all lending carries a risk. Provi-
sions for expected credit losses are estimated using a 3-stage model and 
reflects changes in credit risk or macroeconomic variables like GDP and 
unemployment. In the figure above, impairments on tangible and intangible 
assets are also included.
– Tax 
4 711
Swedbank is one of the biggest corporate taxpayers in Sweden. Together 
with the country’s other banks, we account for about 10 per cent of total 
corporate income tax collected.
– Non-controlling interests and profit from 
­discontinued operations
12
= Our profit attributable to shareholders
19 697
Earnings distribution
50 per cent of profit is distributed as a dividend to shareholders, who 
demand a competitive return on the capital they invest. The remaining 
50 per cent is allocated to an equity buffer in the balance sheet to with-
stand economic slowdowns and to finance future investments to increase 
customer value and create opportunities for growth.
Dividend 
Equity
Simplified balance sheet
Our assets 
SEKbn
Cash, treasury bills and bonds
390
Swedbank maintains a liquidity buffer in the form of cash and liquid 
­securities to meet its commitments even if access to financing is closed  
for an extended period.
Loans to the public
1 652
About half of Swedbank’s lending to the public consists of mortgages in 
Sweden. Swedbank is one of the biggest lenders to private and corporate 
customers in its four home markets.
Loans to credit institutions
45
As part of the financial system, Swedbank also offers lending and deposits  
to other banks and credit institutions.
Derivatives 
44
To protect the bank and its customers against unwanted movements in 
interest or exchange rates, for example, the bank uses and offers various 
types of derivatives, mainly swaps, which are reported on both the asset 
and liability sides of the balance sheet.
Other assets 
277
Total assets
2 408
Our liabilities and equity 
SEKbn
Deposits and borrowings from the public
954
Customer deposits finance a significant share of lending. Swedbank  
has a large, stable base of deposits in its home markets.
Debt securities in issue
856
Lending not financed with deposits is funded through the capital markets. 
Swedbank’s market financing is almost exclusively long-term and mainly 
consists of covered bonds.
Derivatives 
41
See comment under assets above.
Other liabilities
418
Equity 
139
The rules on how much capital a bank must maintain have  
been tightened and ensures that it can operate well even  
under ­unfavourable ­conditions.
Total liabilities & equity
2 408
For more detailed information on Swedbank’s income statement 
and balance sheet, see pages 54 and 56.
13
Swedbank Annual and Sustainability Report 2019
BUSINESS MODEL

Two hundred years of sustainability 
Swedbank has its roots in the Swedish savings bank movement, whose history dates 
back to 1820. This means 200 years of banking during a time of enormous change, 
when poor farming villages have developed into communities whose prosperity in 
many cases is dependent on technology. 
Since the first branch was opened, the bank has maintained a 
strong local connection by promoting sus­tain­ability with an 
emphasis on education and savings. The concept of sus­tain­ability 
is more than that, however, and also includes areas such as reduc-
ing negative impact on the environment and climate, preventing 
money laundering and strengthening human rights. 
Swedbank works actively to integrate sus­tain­ability through-
out its operations, to create lasting value for all our stakeholders 
and contribute to a more sus­tain­able society. The bank’s vision is 
to enable people, businesses and communities to grow. To create 
a society as defined by the UN’s Sus­tain­able Development Goals 
(SDGs), and where the bank’s operations, products and services 
contribute to achieving the goals.
Swedbank is in the process of integrating economic, social, 
environmental and ethical perspectives in its strategic work in 
pace with growing expectations and demands for a more sus­tain­
able financial sector. We can also expect new rules and tougher 
demands from stakeholders, which are contributing to a greater 
sus­tain­ability focus in the risk management of financial companies.
Responsible banking
The UN’s Principles for Responsible Banking were introduced in 
autumn 2019. Swedbank was one of the 132 banks to sign the 
principles, a shared commitment to adopt the Paris Agreement 
and SDGs in their businesses and do more to deliver on them. The 
principles are supported by a framework for implementation and 
accountability. By signing them, Swedbank pledges to be trans-
parent in reporting its impacts, both positive and negative, on 
people and the planet.
The recommendations of the Task Force on Climate-Related 
Financial Disclosures (TCFD) and the EU’s action plan for financing 
sus­tain­able growth are important steps in the development of an 
international regulation where the banks can play a clear role in 
financing the investments needed to achieve the goals in the Paris 
Agreement and SDGs. Swedbank follows these recommendations 
and is working with the Science Based Targets Initiative to 
develop a credible methodology to set scientific climate targets 
in the financial sector.
It is important for Swedbank to promote transparency in all 
banking operations. The financial sector is regulated by a large 
number of different frameworks and regulations, which have 
increased significantly in recent years, including the sustainability 
area. The EU has accelerated its work on these issues and devel-
oped new EU-regulations for sustainability covering the entire 
financial sector. An example is the new taxonomy that will serve 
as a tool for classifying investments that are environmentally 
sustainable and investments which are not. A common taxonomy 
provides mutual guidelines for what investments that should be 
called “green”, which is fully in line with Swedbank’s ambition to 
develop the business, its products and services.
The bank’s stakeholders gain greater insight through the 
transparency that comes with these regulations, both in sustain-
able financing but also in other banking operations. In the business 
community, the concept of transparency is used as a measure of 
a company’s openness towards various external stakeholders. 
GDPR, MiFID and PSD2 are examples of regulations that have 
been introduced in recent years that provide greater transpar-
ency by setting concrete requirements for companies’ openness 
and accounting.
Management of sus­tain­ability risks
Sus­tain­ability risks as described in the risk management frame-
work are related to the impacts on, or the impacts of, climate 
change, globalisation, human rights, resource scarcity, population 
growth, etc., which have the potential to impact the bank’s opera-
tions, income or expenses. Sus­tain­ability risks include, but are not 
limited to, strategic, reputational, credit and legal risks. Managing 
sus­tain­ability risks in a responsible way is important to Swed-
bank’s success and trust in our brand.
At Swedbank, risk management and sus­tain­ability are inte-
grated in the business, and the framework for risk and governance 
provides support in managing sus­tain­ability risks. Swedbank is 
working on several fronts to identify and manage sus­tain­ability 
risks, especially climate related risks, that the bank can be exposed 
to through its portfolio and products. In the future, climate 
change is likely to cause more frequent and/or serious weather 
events such as floods, droughts and storms, which could pose 
a potential risk to the bank’s credit portfolio. Over time it is likely 
that physical assets will also be exposed to greater risk due to 
changing weather patterns, which could potentially impact credit 
risk in sectors such as property management, agriculture and 
­forestry. In the transition to a climate neutral society, political 
actions such as the introduction of carbon taxes, or technological 
progress such as new production processes, are likely to affect us 
and our customers, giving rise to transition risks. Changes in poli-
cies and laws and social activism directed at unsustainable busi-
ness models could also impact the bank’s reputation and become 
a potential risk. 
Sus­tain­ability risk assessment is integrated in existing pro-
cesses such as the New Product Approval Process and the lending 
process, where a sus­tain­ability analysis is conducted for corpo-
rate loans. As part of our commitments to the Paris Agreement, 
Swedbank supports the TCFD recommendations and applies them 
to the relevant portfolios/sectors. 
14
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Sus­tain­able financing solutions
Lending is one of the bank’s core businesses and an important 
component in the business model, i.e. to finance investments by 
private customers and businesses. There is a growing interest in 
making sus­tain­able choices, and in this respect the bank supports 
its customers by offering sus­tain­able financial and investment 
solutions, advice and analysis. Doing business more sustainably 
creates value-added for the individual customer, the business and 
society, and is the basis for sus­tain­able financial value creation. 
A big responsibility rests on the bank’s officers, who perform the 
sus­tain­ability assessment. It is important to know the customer, 
their business, its future prospects and their impact on society. 
Swedbank conducts a more comprehensive sus­tain­ability analysis 
when the credit limit exceeds SEK 5m in Sweden and EUR 0.8m in 
the Baltic countries based on social and environmental aspects. 
The analysis discusses sus­tain­ability related issues such as human 
rights, the environment and climate, taxes and corruption. For 
principles and guidance, Swedbank also has Group-level policies, 
position statements and sector guidelines. If ethical dilemmas 
arise, Swedbank’s Business Ethics Committee will provide further 
recommendations.
Positive impact finance, where loans are evaluated based on 
their contribution to one or more areas of sus­tain­able develop-
ment, is another product area that Swedbank offers its customers 
and that promotes more sus­tain­able financing. Swedbank also 
works actively to scenario test its loan and investment portfolios 
according to the TCFD’s recommendations based on climate 
related risks and opportunities.
Since 2017, Swedbank has issued green bonds and, based on 
this business can target and support financing for sectors that are 
in transition to a sus­tain­able society. Swedbank Debt Capital Mar-
kets also provides advice on green, social and sus­tain­ability bonds. 
This benefits both issuers that are looking for green financing, e.g. 
companies and municipalities, as well as investors who are seek-
ing out sus­tain­able investments e.g. insurance companies and 
pension managers. 
In May 2019, the bank began offering low-interest consumer 
and business loans for installation of solar panels, which is positive 
for the sus­tain­ability of their finances and for society’s energy 
transformation. Green mortgages and car loans had already been 
available as well.
Long-term asset management
Sus­tain­ability is also integrated in the investments that the bank 
makes and in the products and services we offer. Engagement and 
interest in sus­tain­ability are increasing, and so is demand for sus­
tain­able savings, at the same time that a survey conducted by 
Swedbank has shown that seven of ten people want to save sus-
tainably, but only four of ten do so. It is important therefore to 
increase awareness that sus­tain­able savings can make a difference.
Swedbank’s subsidiary Swedbank Robur is one of the leading 
asset managers in the Nordic region, with a vision to be a world 
leader in sus­tain­able value creation. During the year, its funds 
have had holdings in around 3 000 companies in and outside 
­Sweden. This represents a big responsibility and at the same time 
an opportunity to impact and drive development forward. An 
important part of the fund management company’s work with 
sus­tain­able companies is its participation in nomination commit-
tees and voting at annual meetings.
One way to work with sus­tain­ability, in addition to advocacy 
work with the companies, is to join various initiatives. Since 2009, 
Swedbank Robur has embraced the Principles for Responsible 
Historical background
1820
1980
1998
2003
2013
2014
2015
2016
2017
2018
2019
The first 
savings bank 
is established 
in Sweden
The first ethical 
fund is launched
Swedbank acquires 
holding in Hansabank 
in the Baltic ountries
Swedbank is the first 
listed Nordic bank to 
receive ISO 14001 
environmental 
certification
The Group’s first sus­
tain­ability report 
according to GRI G4 is 
published
The head office in 
Stockholm is classified 
as an EU Green Building
The sus­tain­ability 
report is integrated 
with the annual report
The goal to reduce 
carbon emissions by 
50 procent from 2010 
is achieved
Exclusion of 
companies hat 
generate over 30 per 
cent of their revenue 
from coal production
First green  
bond is  
issued 
Signed the UN 
Principles for 
Responsible 
Banking
The sus­tain­able 
equity fund 
Swedbank 
Robur Global 
Impact is 
launched
15
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Investment. In 2015, it began to report the carbon footprint of its 
equity and mixed funds. Swedbank will apply the TCFD’s recom-
mendations to calculate how the companies in the funds are 
affected financially by climate change. In November, climate tar-
gets were adopted as well: that asset management be aligned 
with the Paris Agreement’s 1.5°C goal by 2025 and that the 
entire business be carbon neutral by 2040.
Swedbank Robur will continue through collaborations with 
other investors and networks such as Swedish Investors for Sus­
tain­able Development (SISD), Climate Action 100+ and Interna-
tional Investors Group on Climate Change to encourage compa-
nies to transition to sus­tain­able solutions. During the year, 
Swedbank Robur participated in SISD and Global Investors for 
Sus­tain­able Development and was a member of a working group 
assigned over a two-year period to draft a global standard to 
measure the sus­tain­ability impact of investments.
Swedbank Robur has expanded its range of funds with sus­
tain­ability criteria. For example, the equity fund Swedbank Robur 
Global Impact invests only in companies that already directly con-
tribute to the SDGs. During the year, the Ethica funds changed 
name to Transition to reflect a broader mission: to also invest in 
companies that are driving the transition to the SDGs. Five of 
Swedbank Robur’s funds satisfy Nordic Swan’s eco-label criteria, 
which means that they meet stringent sus­tain­ability require-
ments and exclude fossil fuels.
Sus­tain­ability requirements in the supply chain
Swedbank has a large number of suppliers and therefore has a big 
responsibility but also good opportunities to influence them 
based on sus­tain­ability specifications and expectations. The aim 
is to work together to promote sus­tain­ability at every level. 
The supplier code of conduct is the basis for the requirements 
and expectations that Swedbank advocates and is the starting 
point for contracts with the bank’s suppliers. The code sets 
requirements on the suppliers’ work in areas such as human 
rights, labour rights, business ethics and the environment. It 
­clarifies the bank’s vision and position on these issues and distin-
guishes between mandatory and voluntary criteria. This facili-
tates a dialog and development together with the suppliers. To 
ensure that the procurement process supports Swedbank’s over-
arching sus­tain­ability strategy, a digital platform is used to effec-
tively manage sus­tain­ability related data, analysis and monitoring 
based on the supplier code. Compliance is obviously important. 
Additional follow-ups are conducted as needed in the form of site 
visits and inspections. Cases can be escalated to the procurement 
unit´s sus­tain­ability forum, which will decide on actions against 
the supplier or whether the contract should be terminated. Swed-
bank’s Business Ethics Committee can also be consulted if ethical 
dilemmas arise.
Swedbank will continue to create opportunities for innovation 
in sus­tain­ability with the help of strategic partnerships along the 
entire supply chain, to speed up the transition to a sus­tain­able 
society in line with the SDGs and the Paris Agreement.
Focus on the climate 
Climate change is an issue affecting every company today. The 
financial sector has a big responsibility in the transition that busi-
nesses face, with sus­tain­ability naturally integrated in the busi-
ness model. Through its operations, Swedbank is able to have 
both a direct and indirect impact, i.e. directly through its own 
operations – mostly travel and heating of premises – and indi-
rectly through customers, their businesses and their choice of 
products and services.
Swedbank has pledged to set climate goals in line with the 
­Science Based Targets Initiative. Today there is no established 
method for exactly what this process should look like for the 
financial sector, and Swedbank therefore took part during the 
year in developing a methodology as part of the initiative. Swed-
bank’s focus has been to identify where emission reductions have 
to be made in its mortgage business and commercial real estate 
lending to ensure that the bank’s climate targets for these hold-
ings are aligned with the Paris Agreement.
For its own operations, Swedbank has set targets to reduce 
resource consumption and promote a stable climate and energy 
transformation. In the period 2010-2019 Swedbank’s direct 
greenhouse gas emissions were reduced by 65 per cent. Behind 
these numbers lie active efforts to reduce travel and energy con-
sumption in the branches. The aim of Swedbank’s climate related 
targets is to further reduce the bank’s direct emissions. As a com-
plement to reducing its climate impact, Swedbank buys carbon 
offsets for all its direct greenhouse gas emissions.
A structured approach based on an environmental manage-
ment system is used to reduce the bank’s own, as well as its cus-
tomers’ and suppliers’, environmental impacts. Environmental 
­policies, goals and strategies are integral to the work that the 
bank has committed to. Since 2003, Swedbank’s environmental 
management system is certified according to ISO 14001, where 
compliance is reviewed annually through internal and external 
audits. Operating managers are responsible for their own environ-
mental work, and a network of sus­tain­ability ambassadors coordi-
nates goal-setting and follow-ups and provides support for the 
sus­tain­ability work.
A value-based way of working
Swedbank’s biggest strength is its engaged and competent 
employees. A strong, values-based corporate culture with open-
ness, simplicity and caring as its watchwords contributes to an 
environment where every part of the company is strongly 
focused on the customer with the goal of delivering a high level 
of satisfaction.
Occupational health and safety is a strategically important 
area. All employees at Swedbank should feel that their workplace 
is safe and secure. This is fundamental to foster high performance 
and long-term customer relationships.
Diversity and gender equality are cornerstones of the business 
and also apply to employees and external stakeholders. Swedbank 
is an inclusive bank where everyone, regardless of background 
and ethnicity, has the right to financial services and to be treated 
with respect. The bank wants its employees to reflect our cus-
tomers in terms of gender, age and ethnicity. A goal for many 
years has been gender equality according to the 40/60 model 
in both the highest management and the entire organisation. 
At year-end women accounted for 43 per cent of the Group 
­Executive Committee.
16
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Swedbank operates in a complex and rapidly changing environ-
ment, where digitisation and new laws and regulations have major 
consequences. This requires development, adjustments and new 
competence, where strong leaders and education are important 
components. Acquiring new knowledge and developing also create 
engagement and motivation among employees, who are encour-
aged to take responsibility for and drive their own development.
Swedbank’s deeply rooted social engagement largely consists 
of sharing expertise in personal finance and entrepreneurship. 
Through the initiative Young Economy, the bank has reached 
almost 64 000 young people during the year. Through the bank’s 
engagement in A Job at Last, a collaboration with the Swedish 
Public Employment Service, where foreign-born academics can 
qualify for a 6-month trainee position with Swedbank, the bank 
promotes inclusion and integration.
Swedbank’s deep-rooted social commitment largely consists 
of sharing expertise in personal finance and entrepreneurship. 
Through the Ung Ekonomi (Young Economy) initiative, the bank 
has reached almost 64,000 young people during the year. Through 
the bank’s commitment to the Äntligen Jobb (Finally Job), a collabo-
ration with the Swedish Employment Service, where foreign-born 
people have been given the opportunity for 6 months internship at 
Swedbank, the bank promotes inclusion and integration.
Digitisation requires increased security
In a world where digitisation and use of cloud services are a natu-
ral part of business, secure network access, IT systems and data 
are critical. Disruptions to the bank’s systems that affect the sta-
bility and availability of the bank’s products and services not only 
cause problems for customers and higher costs, but also damage 
confidence in the bank. Fraud and hacking attempts are increasing 
in society in general and require greater awareness and increased 
investment in information and cybersecurity by the financial 
industry.
It is critical for Swedbank to protect its customers’ and its own 
data as well as other sensitive information. This is a continuous 
process and involves a wide range of measures to prevent and 
limit harm to our services. The bank’s services and IT systems are 
monitored to detect new types of threats, fraud and hacking. 
To prevent the bank’s payment systems from being exploited for 
criminal activity, there is a set of internal rules, processes, colla­
borations and support functions. This is also done to comply with 
applicable laws and regulations in the area.
The work to prevent criminals from exploiting the bank took 
on greater prominence during the year when allegations of money 
laundering were made against Swedbank. These allegations had 
a major effect on the bank, its customers, owners and employees 
in 2019.
Money laundering – a global problem
Money laundering is a global problem. The UN estimates that the 
value of money laundering (ML) corresponds to 2-5% of global 
GDP each year. Criminals the world over are becoming more 
sophisticated in their approach, and the methods they are using 
to avoid detection are continuously developing. 
Lawmakers are responding by increasing the responsibility 
put on banks and other financial institutions to protect the finan-
cial infrastructure. Regulations are being tightened and sanctions 
for violations are being increased. Swedbank welcomes this as 
banks are important in the fight against ML and financial crime, 
although collaborations with other parts of society are also nec-
essary to find a solution.
One example of this work is the creation of harmonised anti-
money laundering (AML) rules by the EU. On 1 January 2020 a new 
law went into effect in Sweden based on The 5th Anti-Money 
Laundering Directive, which makes it easier for member states to 
share information on suspected ML. Whistleblowers now receive 
greater protection as well. US authorities are also paying increas-
ing attention to these issues and are prosecuting violations 
beyond the country’s borders.
As stricter rules have been introduced nationally and interna-
tionally, Swedbank has improved its systems support, processes 
and routines. The bank has also terminated relations with cus-
tomers that do not meet current regulations or the bank’s internal 
requirements. Prior to the introduction of The 4th Anti-Money 
laundering Directive in 2017, this work intensified through 
a ­special AML programme with a focus on the Baltic markets, 
where many customer relations were terminated.
Accusations against the bank and regulators’ investigations 
In November 2018, within the framework of its normal super-
vision, the Swedish FSA initiated an investigation regarding 
Swedbank’s compliance with the money laundering regulations. 
After media allegations, in February 2019, of money laundering in 
Swedbank’s Estonian operations the Swedish FSA initiated 
another investigation regarding the bank’s governance and con-
trol of measures against money laundering in its Baltic subsidiar-
ies. In connection with this, the FSA’s in Estonia and Sweden 
decided to conduct parallel investigations, which formally started 
on April 1. 
Both investigations are expected to be ompleted by the begin-
ning of 2020. In addition, investigations are ongoing by US 
authorities.
In April the Board of Directors hired attorney Biörn Riese and 
the communication firm Kreab as independent advisors to the 
Board on issues connected to the investigations and communica-
tion related to this. 
On 16 September Swedbank replied to questions from the 
FSA’s. In its replies, Swedbank noted that FSA’s observations 
­correspond in several key ways to the bank’s own.
On 29 October Swedbank received the Swedish FSA’s decision 
to initiate a sanction process as part of its ongoing investigation. 
FSA’s may decide on sanctions if a bank is found to have short­
comings that have led to a breach of ML or other regulations. 
Sanctions can be calculated in two different ways: either as 
a percent­age of the bank’s turnover or a fixed amount.
During the autumn of 2019 the Estonian FSA informed that 
part of their investigation was handed over to the Estonian 
­prosecutor.
The Swedish SFA indicated on 18 December that its ruling 
on the ongoing sanctions case will be announced in March 2020, 
when the investigation is completed. The Estonian SFA is 
expected to announce, in close connection to the Swedish  
SFA’s announcement, which measures the bank must take. 
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The Estonian prosecutor has not announced a timeframe for its 
decision on possible sanctions. 
On 20 December Swedbank replied to a request for comment 
on the Swedish and Estonian FSA’s preliminary observations and 
conclusions. In its response the bank stated that it concurs with 
many of these observations and conclusions. 
The Swedish Economic Crime Authority (SECA) is investigat-
ing whether a crime was committed in connection with the disclo-
sure of information. To date no individuals are suspected. The 
bank has no information on when the EBM’s investigation will be 
completed. 
Swedbank is being investigated by the US authorities. These 
investigations could take several years.
In the fourth quarter the European Central Bank (ECB) com-
pleted its investigation. Swedbank received a decision on a 
­number of remedies that it is now being implemented, and which 
will be monitored. 
Need for provisions
Swedbank has not allocated any provisions for fines or penalties. 
Current accounting rules provide that the bank with a high proba-
bility is able to determine the size of any fines or penalties before a 
provision can be allocated. This has not been possible to date. New 
estimates are made continuously in collaboration with the bank’s 
external auditor, PwC.
Changes in the Board of Directors
On 5 April Chair of the Board Lars Idermark decided to step down 
and Deputy Chair Ulrika Francke took over. The Extraordinary 
General Meeting on 19 June elected new Board members with 
complementary skills. Göran Persson was elected as the new 
Chair. Bo Magnusson and Josefin Lindstrand were elected as Board 
members. The General Meeting also resolved that there shall be 
nine elected Board members. Board members Ulrika Francke, 
Peter Norman, and Siv Svensson, who were elected by the AGM, 
resigned from their positions at the Extraordinary General 
­Meeting, after which the Board consisted of Göran Persson,  
Bodil Eriksson, Mats Granryd, Kerstin Hermansson, Bo Johansson,
 Josefin Lindstrand, Bo Magnusson, Anna Mossberg and 
­Magnus Uggla. 
Management changes 
As a result of the accusations against the bank, President and 
CEO Birgitte Bonnesen was dismissed on 28 March. CFO Anders 
Karlsson was appointed Acting President and CEO. 
As a consequence of Swedbank’s internal investigation, the 
Council of Swedbank’s Estonian subsidiary decided on 17 June to 
appoint Olavi Lepp as acting Chairman of the Management Board 
and acting CEO of Swedbank Estonia. Anna Kõuts was appointed 
as acting CFO and acting member of the Management Board. Both 
of these appointments were made permanent later in the year.
Former CEO Robert Kitt and former CFO Vaiko Tammeväli left 
their positions in Swedbank Estonia. Council member Priit Perens 
ended his employment. All three have left the bank. 
In August Jens Henriksson was appointed the new CEO.  
He took office on 1 October. 
On 9 December Jens Henriksson presented a number of manage-
ment changes. The number of members in the Group Executive 
Committee was reduced from 17 to 14. Former Chief Risk Officer 
Helo Meigas and former head of Baltic Banking Charlotte Elsnitz 
left the bank. Gunilla Domeij Hallros was appointed the acting 
Chief Risk Officer and Jon Lidefelt the acting head of Baltic Banking. 
The recruitments of a new CRO and new head of Baltic Banking 
are underway. Erik Ljungberg has been recruited as the new head 
of Group Communications and Sustainability. He will take up the 
position by summer 2020 at the latest. 
The Board’s ML work
In July 2019 the Board established a working group consisting of 
Bo Magnusson, Magnus Uggla, Kerstin Hermansson and Josefin 
Lindstrand. The working group is the Board’s advisory body to 
monitor the bank’s work with the ongoing investigations as well 
as the Clifford Chance investigation. It held regular meetings 
­during the second half of 2019. The Board has created a new com-
mittee, the Corporate ­Governance Committee, that among other 
things will take over the working group’s duties.
Clifford Chance and Special Task Force
The international law firm Clifford Chance was hired in February 
2019 to, with forensic support from FTI and FRA, conduct an 
investigation of historical shortcomings in compliance, exposure 
to money laundering of the possible breach of sanctions. The 
investigation includes Swedbank AB, its global network of 
branches and relevant wholly owned subsidiaries. Clifford 
Chance’s assignment also spans the areas that a special audit 
would cover, according to a proposal presented at the Extra­
ordinary General Meeting on 19 June.
The investigation will determine what happened, how it could 
have happened and what has to be done to prevent it from hap-
pening again. In addition, the investigation provides a basis for 
replies to the questions from regulators. 
In total, over 30 billion transactions made between 2007 and 
March 2019 are included in the investigation, of which 15 billion 
from Baltic Banking. The Clifford Chance investigation, which is 
scheduled to be presented in the first quarter 2020, is expected 
to describe among other things: 
•	 how the bank has dealt with AML issues 
•	 shortcomings in routines and processes 
•	 if, when and how these shortcomings were addressed 
•	 scope and management of inappropriate high-risk customers 
•	 if and when inappropriate high-risk customers were identified 
and removed 
•	 potential OFAC sanctions exposure in the Baltics
•	 management of internal and external information disclosures 
•	 scope of transaction volumes 
•	 assessment of the seriousness of identified shortcomings 
•	 accountability
Clifford Chance is also reviewing the bank’s current compliance 
work with respect to ML, with the aim of issuing recommen­
dations to ensure improvements in the AML work.
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The responsibility for the Clifford Chance investigation of 
­historical shortcomings in AML work has been transferred to the 
new Special Task Force. This unit is led by former Head of Group 
Treasury Tomas Hedberg, who in his new role reports directly to 
the CEO. Swedbank has also expanded its legal advisory group. 
In addition to the international law firm Clifford Chance, the foren-
sic expertise of FTI and FRA and attorney Biörn Riese, it now also 
includes the US law firm Quinn Emanuel.
Measures to prevent money laundering
Swedbank continued in 2019 to invest in resources, processes and 
technology to prevent ML/TF and other financial crime. 
In April the Anti-Financial Crime unit (AFC) was established 
with the aim of bringing together resources and expertise to lead 
and coordinate the bank’s work in this area. A large part of the 
implementation is carried out in the business areas. At year-end 
the unit had a staff of more than300. 
Besides AFC, the bank’s three business areas, Swedish Bank-
ing, Baltic Banking and Large Corporates & Institutions, signifi-
cantly increased their staffs and hired consultants to help the 
bank avoid being exploited for financial crime, and to comply with 
current laws and regulations. In total, the number of full-time 
employees who work with these issues was 420 at year-end, an 
increase of more than 170 since the first quarter 2019.
In October an action plan was presented to align the bank with 
the industry’s best practices for the prevention of financial crime. 
The plan, which is led by the AFC, is progressing largely according 
to plan and at year-end comprised 152 initiatives. A total of 67 ini-
tiatives had been completed as of 31 December, including 47 in the 
fourth quarter. Eleven initiatives could not for various reasons be 
completed as planned by the end of the year. They will be com-
pleted in Q1 2020.
The programme is continuously reviewed and new initiatives 
are added when the Clifford Chance investigation, investigative 
authorities, employees or other stakeholders identify shortcom-
ings and potential improvements. Twenty initiatives were added 
in the fourth quarter 2019. Some were the result of the short-
comings identified by the Estonian and Swedish FSA’s in their 
investigations. These initiatives will be completed in 2020. New 
initiatives will continue to be added, however, extending the pro-
gramme beyond 2020. 
The programme s divided into seven areas in accordance with 
standard AML/ATF processes. 
Risk assessment, 11
Regulations and routines, 43
Training, 2
Know Your Customer (KYC), 46
Risk classification, 8
Monitoring, 39
Reporting to the Financial 
Intelligence Unit of the 
Swedish Police, 3
The figures show the number of initiatives per area in Swedbank’s anti-
money laundering process as of 31 December. 
The key aspects of the initiatives are summarised below.
Risk assessment
An improved Group risk assessment framework was developed 
in the fourth quarter 2019. It describes a uniform strategy for 
­collective risk assessments and the mandatory risk assessments 
that all legal entities within the Group are obligated to perform. 
The bank is also creating a new risk database that provides 
a ­unified overview of ML risks.
Regulations and routines
In the second half of 2019 Swedbank introduced an updated and 
improved framework for ML compliance. The new framework cre-
ates a centralised AML strategy, contributes to higher efficiency 
and facilitates compliance within the Group.
A project has been launched to ensure that all business and 
product areas are able to apply the changes resulting from the 
new framework. 
In addition, a Group Financial Crime Committee (GFCC) has been 
established to ensure adequate and effective management of  
ML/TF risks. The Group Security Investigations AML Office, which 
ensures the new framework’s implementation and compliance, 
has recruited new employees and established new processes. 
Training 
Broad-based training is provided to increase awareness of ML 
risks in general as well as targeted training e.g. in KYC. 
Know Your Customer (KYC)
A new Know Your Customer (KYC) system that connects the 
bank’s various channels for the entire customer lifecycle is devel-
oped. The new system is being launched in Swedish Banking in 
2020 and will then be introduced in other business areas in line 
with the goal of a Group-wide KYC platform.
In addition, several initiatives are underway to improve quality 
assurance of customer information. A digital solution to collect 
KYC information on private customers has been introduced in 
Swedish Banking. In the fourth quarter 2019 the solution was 
rolled out to 3.6 million private customers of Swedbank and the 
savings banks. Baltic Banking has an initiative to collect data from 
several external sources.
Swedish Banking has established a new centre of excellence to 
manage high-risk customers throughout the customer lifecycle. 
The centre had around 80 full-time positions as of year-end. The 
bank has also introduced new and improved routines that apply 
when certain types of customer relations are terminated.
In 2019 Swedbank joined the Nordic KYC Utility. Together with 
five other Nordic banks, the bank established a joint venture that 
offers standardised processes for managing KYC information for 
corporate customers. The launch in 2020 will impact selected cor-
porate customers.
Risk classification 
A new risk classification model with predictive elements was 
developed and launched in the fourth quarter 2019 in Swedish 
Banking, where risk classification is increasingly based on 
­customer behaviour. The risk model is continuously improved 
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through development and by using data generated by the 
­model’s algorithms. The risk model, which follows customers 
through the entire lifecycle, can be applied to individuals as well as 
small and midsize companies. 
Monitoring 
In 2019 the bank improved its processes, routines and systems 
support for monitoring transactions. The work has resulted in 
among other things a doubling of the number of scenarios in the 
bank’s transaction monitoring system as well as the development 
of advanced and complex analysis models that more reliably iden-
tify suspicious transactions. Improvements to the bank’s ML/TF 
monitoring will continue in 2020 and involve every unit of the 
Group, including subsidiaries and branches. Improvements are  
also being made to the technological environment to ensure 
­system stability.
In 2019 the units that monitor suspicious ML transactions 
were provided with new resources and more expertise.
In addition to the monitoring of transactions, improvements 
are being made to the bank’s processes and systems support to 
identify transactions with individuals or companies that appear 
on sanction lists. Among other things, new data sources have 
been added to improve accuracy.
Reporting to the Financial Intelligence Unit  
of the Swedish Police
The GSI unit added resources and expertise in 2019 to improve its 
ability to report to the Financial Intelligence Unit of the Swedish 
Police. In addition, the process for reporting suspected ML to the 
Financial Intelligence Unit has been further developed and modi-
fied using a new digital format.
Quality assurance 
The bank’s management decided during the year to investigate 
and assure the quality in three areas with the help of external 
expertise. 
The quality of the bank’s work with ML and other financial 
crime will be reviewed. External consultants are being hired.
An evaluation will compare the bank’s compliance work with 
best practices to ensure that it is being done as effectively 
as ­possible.
Future challenges and Swedbank’s level of ambition
Swedbank’s goal is to be an industry leader in the prevention of 
ML and other financial crime. The action plan described above will 
put Swedbank well on its way toward meeting the goal in 2020.
It is not enough, however, that Swedbank introduces best rou-
tines, processes and systems support to address the fundamental 
problem. It is only through improved cooperation between law-
makers, authorities and banks that society can successfully fight 
financial crime. 
Swedbank therefore participates in various forums, in our 
home markets and internationally, to develop information colla­
borations and share experience. 
Nordic KYC Utility is a good example of how the banks are tak-
ing the initiative and cooperating to reduce the risk that our infra-
structure will be exploited for criminal purposes. Nordic KYC Util-
ity will offer companies a digital platform to register and update 
their information. The goal is to improve efficiency and make it 
easier to manage KYC information for companies, banks and other 
financial players, and at the same time contribute to the preven-
tion of ML.
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Introduction of the  
TCFD ­recommendations
Task Force on Climate-related Financial Disclosures (TCFD) ,are recommendations for 
reporting climate-related financial risks and opportunities. These were produced by 
a working group led by Michael Bloomberg on behalf of the Financial Stability Board.
Since the work to integrate the TCFD recommendations began in 
2018, Swedbank has revised its governance model and completed 
a pilot project in the energy sector. In 2020 a scenario analysis  
will be done in other sectors with an increased risk from climate 
change, and the banking sector will launch an industry-wide 
­skill­-building exercise.
A number of parallel activities are underway at Swedbank 
relating to climate change. During the year the bank signed the 
UN’s Principles for Responsible Banking, which means that our 
business strategy will be aligned with the Paris Agreement and 
we will actively contribute to the UN’s Sus­tain­able Development 
Goals. The fund management company Swedbank Robur has in 
turn updated the climate goals in its the responsible investment 
policy, which take effect in 2020. To show how much exposure 
there is to climate risks through Swedbank’s lending and Swed-
bank Robur’s investments, a materiality analysis has been con-
ducted with a focus on sectors with elevated risks in accordance 
with the TCFD recommendations (see note G3 for credits and 
Swedbank Robur’s annual report).
Governance 
The updated governance model for the bank integrates a climate 
perspective through scenario analyses as well as new Key Risk 
Indicators for selected sectors. The scenarios used are New Policy 
Scenario (NPS, 3°C) and Sus­tain­able Development Scenario (SDS, 
1.5°C), both based on the IEA. The PACTA method is used for 
investments. During the work with scenario analyses climate-­
related risks and opportunities were identified and documented.
An important lesson from the scenario analysis work in the 
pilot project was that the cross-functional working groups were 
a success. This has been confirmed in the process now being 
established for implementation in the future. The sus­tain­ability 
group will coordinate the work that the business areas perform, 
with expertise and support from Group functions such as Risk, 
Credit and Finance.
Strategy 
A number of strategic positions have been identified for the 
energy sector, one of which is further investment in renewable 
energy sources. The bank is also working actively with a strategy 
for companies that are seriously embracing the transition, in order 
to be a proactive facilitator.
Last spring’s scenario analysis work identified a need for more 
competence within the organisation on what climate change 
means and how this affects the bank’s customers and in the long 
run the bank itself. A comprehensive training programme is being 
developed for launch in 2020, and will be continuously updated.
Since competence is being further developed both within the 
organisation and by recruiting key competencies, even more 
­productive scenario analysis work will be possible.
Risk management 
In this year’s edition of Credit Risk Outlook, an internal, forward­-
looking report that the risk department produces and shares with 
the business areas for use in their business plans and credit strate-
gies, a climate perspective is integrated by identifying both tran-
sition risks and physical risks in various sectors. Transition risks 
are especially apparent in shipping and offshore, energy, manu-
facturing and transports. Physical risks, over a longer horizon, 
have been singled out in real estate management as well as agri-
culture, forestry and fishing. In the investment portfolio an ele-
vated risk has been identified for assets owned by manufacturers 
that produce for customers in CO2-intensive sectors.
The climate-related risks identified through the pilot project 
(Oil and Gas, Coal and Power) are limited given the size of the port-
folio. In the SDS scenario transition risks increase but with limited 
credit risk for the bank, while in the NPS scenario there is increased 
risk/uncertainty about investments in renewable energy sources 
given the competition from existing energy sources. 
The common denominator for both scenarios is increased 
­reputational risks follow from a lack of understanding of climate 
change and its impacts, with the subsequent risk that competitive 
products are not developed to meet future customer needs.
Targets, metrics and monitoring
Swedbank has been monitoring direct emissions for many years 
and working actively to reduce them. The efforts to understand 
the indirect emission exposure were intensified during the year. 
Among other things Swedbank tested its portfolios of commercial 
properties and mortgages with the Science Based Target Initia-
tive, where we are collaboratively developing credible methods 
for defining future climate goals. Lessons from this work will be 
used to define targets in coming years in order to realise the tran-
sition to a climate-neutral society. 
Swedbank Robur expanded its fund reporting in 2019 with 
Weighted Average Carbon Intensity, in line with the TCFD recom-
mendations and according to an agreement among members of 
the Swedish Investment Fund Association. 
The bank’s risk department monitors the exposure in customer 
segments that have been identified as having the highest climate-­
related risk. Growth in these segments sends a signal within the 
bank and in certain cases leads to more extensive analysis of the 
underlying causes.
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The UN’s Sus­tain­able Development Goals
During the year Swedbank signed the UN’s Principles for Responsible 
­Banking and thereby endorsed the Paris Agreement and the UN’s Sus­tain­
able Development Goals (SDG´s). The bank participates in the collaboration 
Nordic CEOs for a ­Sus­tain­able Future to collaboratively speed up these 
efforts. 
Swedbank has performed an analysis of the bank´s contribution to the 
SDG´s. The analysis showed that the bank contributes to all of the goals to 
varying degrees. Based on the analysis, Swedbank has chosen to focus on 
Goals 4, 8, 12 and 16. In addition, the bank has two complementary focus 
areas that ­combine several goals that affect Swedbank’s strategy and 
goal-setting: Sus­tain­able employees (e.g. Goals 3, 5 and 10) and a Fossil­-
free society (e.g. Goals 7, 9, 11 and 13).
The UN’s Sus­tain­able 
Development Goals 
(target)
Example of contributions
3.A
– Companies that generate more than 5 per cent of their 
­revenue from tobacco products are excluded from all of 
Swedbank Robur’s funds.
– The credit process’s sus­tain­ability analysis contains a 
guideline on the tobacco sector, which gives insight into the 
industry’s sus­tain­ability problems as well as suggestions 
and advice on what aspects should be brought up with 
the customer.
Implement the World 
Health Organization’s 
Framework Convention 
on Tobacco Control
4.1
– Through various initiatives, Swedbank’s teaches financial 
literacy to children and young adults. The bank reaches 
­various groups in society, regardless of background, and 
educates them about money, savings and how conscious 
choices can impact a person’s finances and career. The mag-
azine Lyckoslanten, which since 1926 has helped children 
better understand financial issues, is distributed quarterly 
to Swedish students ages 10–12.
Free, equitable and 
quality primary and 
secondary education 
5.5
– Swedbank during the year signed the UN’s Women’s 
Empowerment Principles, which comprise seven principles 
to adapt the financial sector to the UN’s Global Sus­tain­
ability Goals. 
– In Equileap’s list of the 100 best global companies based  
on gender equality, Swedbank ranked as the third highest  
in Sweden.
Ensure women’s full 
and effective parti­
cipation and equal 
opportunities for 
leader­ship at all levels 
of decision making
7.2
– Increased number of green loans through more funding  
for energy-efficient properties and renewable energy 
­production within Swedbank’s green bond framework.
– Launched a loan for installation of solar panels by 
­consumers and businesses in the Swedish market in order  
to promote small-scale renewable energy production.
Increase the share of 
renewable energy in 
the global energy mix 
8.10
– To prevent digital exclusion, Swedbank works with an 
­initiative called “Digital Economy” to help those who are 
unfamiliar with digital services such as BankID and Swish.
– The security information provided in 12 languages expands 
the access to the bank’s products and services. The hearing 
impaired are able to receive personal assistance by phone.
Access to banking, 
insurance and financial 
services for all 
9.1
– Provide financing for sus­tain­able infrastructure projects  
as part of Swedbank’s green bond framework.
– Signed an agreement to buy electricity from the solar park 
being built on 13 hectares in Linköping, which is expected  
to deliver around 10 000 MWh per year.
Create sus­tain­able, 
resilient and inclusive 
infrastructure 
The UN’s Sus­tain­able 
Development Goals 
(target)
Example of contributions
10.2
– Swedbank is represented in the EU’s Diversity Charter, 
which promotes diversity and equal opportunities. 
– “A Job at Last”, an initiative to hire foreign-born aca-
demics as trainees for up to six months at the bank and 
an opportunity to gain a foothold in the job market.  
In many cases trainee positions lead to permanent 
employment and ­contribute to the bank’s talent 
­management.
Promote social, 
­economic and political 
inclusion 
11.3
– Swedbank Fastighetsbyrå collaborates with BRIS,  
SOS Barnbyar and Sveriges stadsmissioner and 
donates SEK 100 per transaction to the initiative  
Ett tryggt hem för alla. So far just over SEK 9m has 
been collected. 
– In the Baltic countries state-subsidised mortgage 
loans are offered based on various criteria to promote 
home buying. The product is designed for groups 
in society who have ­difficulty meeting the bank’s 
­standard lending terms.
Inclusive and sus­tain­
able urbanization
12.6
– Sus­tain­ability analyses are conducted in the bank’s 
lending process and in asset management to deter-
mine how well companies manage business-related 
sus­tain­ability risks and assess their long-term opera-
tions. An important part of the sus­tain­ability analysis 
is the company’s sus­tain­ability report.
Encourage companies 
to adopt sus­tain­able 
practices and reporting
13.1
– Swedbank assesses its loan portfolio according to the 
TCFD recommendations based on related climate-­
related risks and opportunities, and through the 
­Science Based Targets initiative the bank has endorsed 
the Paris Agreement.
– Group position on preventing climate change, which 
excludes companies that generate more than 30 per 
cent of their revenue from coal production as well as 
direct financing for coal-fired power production.
Strength and resil-
ience and adaptive 
capacity to climate-­
related disasters 
16.4
– Swedbank has a set of internal rules to prevent its sys-
tems from being exploited for criminal activities and 
ensure that current laws and regulations are followed. 
Swedbank has an obligation to know all its customers, 
understand where their money comes from. The 
bank´s know-your-customer process is providing 
increased opportunities to detect unusual behaviour.
– Group position on the defence industry, which excludes 
companies that manufacture, modernise, sell or buy 
products specially designed for cluster bombs, anti­
personnel mines, chemical and biological weapons, 
and nuclear weapons.
Combat organised 
crime and illicit finan-
cial and arms flows 
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Sus­tain­ability goal 2019 
Result 2019 
Status
Contribution  
to SDG target 
Develop a loan product that incentivises the ­transition to a sus­tain­
able society.
Sus­tain­ability linked loans were launched in 2019. They are linked 
to specific criteria to monitor a company’s sus­tain­ability perfor-
mance. If its performance improves, the interest rate is lowered, 
reducing financing costs. If the goals are not met, the interest rate 
may rise.
 
9.4
12.6
Update and expand the internal sus­tain­ability analysis used in lending.
A new sus­tain­ability analysis tool for large corporate customers 
will be launched early 2020. During the year the bank improved 
its existing analysis tool for lending by integrating an external 
ESG analysis.
 
12.6
Arrange at least 35 green, social and sus­tain­able bonds.
During the year Swedbank’s Debt Capital ­Market unit arranged 
51 green bonds.
7.2
13.1
Dialog with companies, especially those with high sus­tain­ability risks, 
through partnerships and suppliers, to help them make progress in 
accordance with the responsible investment policy.
During the year Swedbank Robur dialogued with 645 companies  
and participated in 94 nomination committees.
12.6
17.16
Active participation nationally and internationally to accelerate the 
transition to a more sus­tain­able financial industry through collabora-
tions with other actors and at the same time realise Swedbank Robur’s 
vision to be a world leader in sus­tain­able value creation.
Swedbank Robur participates in the reference group on sus­tain­
able finance regulation as part of the EU’s 2030 Agenda for Sus­
tain­able Development and in the Stockholm Sus­tain­able Finance 
Center. Robur also participates in several investor networks 
focused on sus­tain­ability as well as the EU Ecolabel.
 17.16
All purchases over SEK 0.5m are evaluated in the bank’s digital 
­platform for sus­tain­ability assessments to determine how well 
they comply with the bank’s supplier code of conduct.
As of July all purchases over SEK 0.5m went through the bank’s 
digital platform for sus­tain­ability assessments.
12.6 
Reduce Swedbank’s direct greenhouse gas ­emissions by 20 per cent 
between 2017–2022.
Emissions decreased 14.8 per cent between 2017–2019.  
In addition, Sweden has chosen to buy carbon offsets for all 
its emissions.
13.1
Reduce energy consumption in the bank’s branches by 10 per cent per 
m² between 2017–2021 and 15 per cent in 2017–2025.
Energy consumption decreased 6 per cent per m² between  
2017–2019.
 
7.3
Achieve gender equality at the highest management level according  
to the 40/60 model.
Swedbank’s management team consists of 43 per cent women  
and 57 per cent men.
5.5
Total sickness absence (rolling 12 months)  
< 2.8 per cent. 
Sickness absence was 3 per cent in the Group. 
3
Increase financial literacy among children and young adults by offering 
educational lectures in schools.
During the year 3 797 lectures were held.
4.4
8.3
 Met  
 Ongoing  
 Not met
Swedbank’s sus­tain­ability goals 
Focus and progress in 2019
Swedbank strives to be a responsible and sus­tain­able bank and is therefore constantly trying 
to raise its sus­tain­ability aspirations by better targeting commitments and leading the way on 
important issues such as climate change, gender equality and local engagement. Swedbank’s 
aim is to help customers make sus­tain­able choices. In 2019 Swedbank launched several 
­sus­tain­ability oriented products and services in both lending and asset management, and 
a new sus­tain­ability training programme for the entire Group is keeping employees better 
informed. Swedbank has also endorsed the UN’s Principles for Responsible Banking and 
Women Empowerment Principles as well as the Equator Principles.
Priorities in 2020
•	 Implement the UN’s Principles for Responsible Banking and  
the EU’s action plan for financing sus­tain­able growth .
•	 Further refine strategies and products in sus­tain­able financing.
•	 Increase internal understanding of upcoming rules and regulations.
•	 Continue to strengthen customer due diligence and prevention of money laundering in the bank.
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23
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Substantial decrease in value due  
to questions about the bank’s anti-
money laundering work
Despite that profit for the year was weighed down by higher costs related to the 
money laundering investigations, strong earnings contributed to a stable financial 
result. This means that the Board of Directors, in accordance with the revised divi-
dend policy, is able to propose that 50 per cent of profit for the year be distributed 
to the shareholders. 
Swedbank’s strategy – to be an available full-service bank with 
offers based on customers’ needs, high cost efficiency and low 
risk – aims at creating stability and predictability for our share-
holders. Last year was overshadowed, however, by considerable 
uncertainty regarding the bank’s anti-money laundering (AML) 
work. In 2019 the return on equity was 14.7 per cent, compared 
with the target of 15 per cent, affected not least by increased 
expenses to strengthen the AML work and address these charges. 
This contributed to a decrease in the share price of 29.5 per cent 
during the year, compared with the OMX Nordic Banks index, 
which fell 7.4 per cent, and the OMX 30 Large Cap index, which 
rose 25.8 per cent. The total return on the Swedbank share was 
-22.3 per cent and the market capitalisation was SEK 155.9bn at 
year-end 2019, compared with SEK 220.8bn at the end of 2018.
The Board of Directors resolved during the year to revise the 
dividend policy from 75 per cent of the annual profit to 50 per 
cent. The purpose of the change is to create greater flexibility to 
respond to the uncertainty regarding future capital regulations 
and regulators’ decisions on the bank’s AML work, and to enable 
the bank to continue to support its customers’ growth. Our profit-
ability, together with a strong capital position, facilitates a pro-
posed dividend of SEK 8.80 per share for the full-year 2019, in 
accordance with the bank’s updated dividend policy. 
Trading on several markets
Swedbank has one class of share, ordinary shares (A shares), 
which have been listed on NASDAQ OMX Stockholm’s Large Cap 
list since 1995. The bank also has an American Depositary Receipt 
(ADR) programme, which enables investors, through depositary 
receipts, to invest in Swedbank’s share on the US OTC market 
without having to register with Euroclear or buy SEK. Swedbank’s 
shares are traded on a number of different marketplaces, with 
Nasdaq OMX Stockholm generating the highest turnover. On 
average, Swedbank shares with a value of SEK 655m were traded 
per day on Nasdaq OMX Stockholm. Today there are a number of 
mutual funds and stock indices for companies that meet sustain­
ability criteria. Two that include Swedbank are STOXX ESG Lead-
ers and FTSE 4Good. The latter was created to offer investments 
in companies that demonstrate globally recognised levels of 
responsibility. Other examples can be found on the website under 
Investor Relations/Swedbank shares.
Ownership and information
Swedbank had 1 132 005 722 shares in issue at year-end 2019, 
of which 36.1 per cent was owned by international investors and 
63.9 per cent by Swedish investors, whereof 12.8 per cent are 
individual investors.
Swedbank’s share performance compared with indices
Price
Shareholder categories, %
as of 31 December 2019, figures in brackets refer to 2018
Source: Euroclear Sweden AB
 A share 
 OMX Nordic Banks  
 OMX Stockholm 30
2015
2016
2017
2019
2018
60
70
80
100
90
110
120
130
International 
investors 
36.1% (40.6)
Swedish individual 
­investors 12.8% (8.7)
Swedish 
 legal  
entities  
51.1% (50.7)
24
Swedbank Annual and Sustainability Report 2019
THE SHARE

Holding of own shares
Swedbank held 13 701 333 of its own shares as of 31 December 
2019 to secure the commitments in its performance- and share-
based remuneration programmes. Remuneration in the form of 
deferred shares is designed to building long-term engagement 
among employees through share ownership. In total, 1 630 028 
shares were transferred in 2019, corresponding to a dilution 
effect of about 0.1 per cent based on the number of outstanding 
shares and votes as of 31 December 2018. 
The 2019 AGM resolved to adopt new performance- and 
share-based remuneration programmes for 2019 and to transfer 
ordinary shares under these and previously approved programmes. 
The programmes for 2019 are expected to result in the transfer 
of approximately 2.3 million ordinary shares, corresponding to 
a total dilution effect of about 0.2 per cent based on the number 
of outstanding shares and votes as 31 December 2019. To con­
tinuously adapt the bank’s capital structure to prevailing capital 
requirements, the Board was authorised by the 2019 AGM to 
resolve to repurchase up to 10 per cent of the total number of 
shares (including shares repurchased by the securities operations; 
see below). The Board was also authorised to issue promissory 
notes that can be converted to shares. In 2015, 2016 and most 
recently in August 2019 the bank utilised the Board’s mandate 
and issued promissory notes that can be converted to shares in 
the event that the bank’s Tier 1 capital falls below a certain level. 
The issues were to help meet the capital requirements set by the 
Swedish FSA for Swedish banks. In its capacity as a securities 
institution, Swedbank engages in securities operations, including 
trading in financial instruments on its own account. In this busi-
ness, it needs to acquire its own shares. Accordingly, the 2019 
AGM resolved that the bank, until the 2020 AGM, may acquire its 
own shares on an ongoing basis such that the total holding does 
not exceed 1 per cent of outstanding shares, and that this is done 
at the prevailing market price. 
For more information on Swedbank’s share, visit  
www.­swedbank.com/ir
Largest shareholders, 31 December 2019, by owner group
Share of capital and votes, %
2019
Sparbanksgruppen
10.9
Folksam
7.08
Swedbank Robur fonder
4.95
Alecta Pensionsförsäkring
4.55
AMF Försäkring & Fonder
4.45
Sparbanksstiftelser - ej Sparbanksgruppen
3.44
BlackRock
2.97
Norges Bank
2.9
Vanguard
2.73
Capital Group
1.7
Total number of shareholders 
368 312
Source: Modular Finance AB/Euroclear Sweden AB
Number of shareholders, 31 December 2019
Size of holding
No. of shareholders 
Holding. %
1—500
304 766
82.8%
501—1 000
32 922
8.9%
1 001—5 000
26 073
7.1%
5 001—10 000
2 332
0.6%
10 001—15 000
654
0.2%
15 001—20 000
351
0.1%
20 001—
1 214
0.3%
Total
368 312
100%
Source: Euroclear Sweden AB
Share statistics, A share 
2019
2018
2017
2016
2015
High price, SEK 
214.8
221.7
231.4
229.3
223.9
Low price, SEK 
120.75
177.15
194.2
150.8
177.2
Closing price, 31 Dec., SEK 
139.45
197.75
197.9
220.3
187.1
Average number of trades per listed day1
10 622
6 733
6 090
5 413
4 869
Average turnover per listed day, SEKm,1
655
597
538
526
564
Total market capitalisation, 31 Dec., SEKbn 
156
221
224
245
207
ISIN code A share: SE0000242455
1) Turnover data include turnover on Nasdaq Stockholm.
Sources: NASDAQ OMX, www.nasdaqomxnordic.com
Data per share
SEK 
2019
2018
2017
2016
2015
Earnings per share before dilution
17.62
18.96
17.38
17.6
14.23
Earnings per share before dilution, continuing operations
17.62
18.96
17.38
17.6
14.24
Earnings per share after dilution
17.56
18.89
17.3
17.5
14.13
Earnings per share after dilution, continuing operations
17.56
18.89
17.3
17.5
14.14
Equity per share 
123.9
123
119.8
116.6
114.4
Cash dividend per ordinary share 
8.81
14.2
13
13.203
10.703
P/E
7.9
10.5
11.4
12.5
13.15
Price/equity per share 
1.13
1.61
1.65
1.89
1.64
1) Board of Director’s proposal.
25
Swedbank Annual and Sustainability Report 2019
THE SHARE

Financial analysis
The annual report contains alternative performance measures 
that Swedbank ­considers valuable information for the reader, 
since they are used by the executive management for internal 
governance and performance measurement as well as for com­
parisons between reporting periods. Further information on the 
alternative ­performance measures used in the annual report can 
be found on page 192. 
Higher expenses reduced profit
Profit decreased 7 per cent to SEK 19 697m (21 162). Higher 
income was offset by higher expenses and credit impairments 
in 2019. Income in the previous year was positively affected 
by SEK 677m by the divestment of UC. Adjusted for the capital 
gain profit decreased 4 per cent in 2019. The cost increase is 
mainly related to higher staff costs and costs for investigations 
related to money laundering. Credit impairments were mainly 
affected by a few oil-related problem loans. Foreign exchange 
effects increased profit by SEK 125m compared with the previous 
year. The return on equity was 14.7 per cent (16.1) and the cost/
income ratio was 0.43 (0.38).
Income rose 4 per cent to SEK 45 960m (44 222) and foreign 
exchange effects contributed SEK 277m to the increase.
Net interest income rose 3 per cent to SEK 25 989m (25 228). 
The increase was mainly due to a lower resolution fund fee and 
higher lending volumes.
Net commission income increased 1 per cent to SEK 12 984m 
(12 836). Fees from asset management, cards and customer con-
cepts increased, but were offset by lower income from lending, 
guarantees and securities. 
Net gains and losses on financial items rose to SEK 3 629m 
(2 112). This was mainly due to a higher result within Group 
­Treasury, where the value of the holdings in Visa and Asiakastieto 
rose. A higher result from fixed income and bond trading within 
Large Corporates & Institutions also had a positive effect.
Other income including the share of profit or loss of associates 
decreased 17 per cent to SEK 3 358m (4 046) due to the 
above-mentioned UC sale in the previous year.
Expenses increased to SEK 19 984m (16 835), mainly due to 
higher staff costs and consulting costs. Underlying staff costs 
rose mainly due to annual wage increases and a higher number  
of employees. Severance pay for former members of the Group 
Executive Committee, including Swedbank’s former CEO, also had 
an impact. The consulting costs to manage the money laundering 
related investigations in 2019 amounted to SEK 1 104m. A VAT 
provision of SEK 256m was also recognised during the year, as 
was SEK 125m in fraud losses. Foreign exchange effects 
increased expenses by SEK 132m.
Credit impairments increased to SEK 1 469m (521) and was 
mainly related to provisions for a few oil-related problem loans 
within Large Corporates & Institutions. Credit impairments were 
lower in Swedish Banking and only marginal in Baltic Banking.
The tax expense amounted to SEK 4 711m (5 374), corre-
sponding to an effective tax rate of 19.3 per cent (20.2). The 
­single biggest reason why the effective tax rate was lower in 
2019 is the lower corporate tax rates in Sweden and Estonia.  
The Group’s effective tax rate is estimated at 19–21 per cent in 
the medium term. Any future tax in Sweden on financial busi-
nesses could affect the future effective tax rate.
Volumes continue to rise
Swedbank’s main business is organised in three product areas: 
lending, payments and savings.
Total lending to the public, excluding repos and lending to the 
Swedish National Debt Office, increased in the year by SEK 28bn, 
corresponding to annual growth of nearly 2 per cent. The biggest 
contribution to the increase came from mortgages in Sweden, 
which grew by SEK 20bn. Corporate lending increased SEK 5bn. 
A decrease in lending to tenant-owner associations had a nega-
Profit for the period, SEKm
Swedbank’s profit amounted to SEK 19 697m, 
compared with SEK 21 162m in the previous 
year. The increase is mainly due to higher income 
and lower credit impairments.
Income statement, SEKm
2019  
Full-year
2018 
Full-year
2018 Full-year  
excl. income UC
Net interest income 
25 989
25 228
25 228
Net commission income
12 984
12 836
12 836
Net gains and losses on financial items
3 629
2 112
2 112
Share of profit or loss of associates
822
1 028
1 028
Other income1)
2 536
3 018
2 341
  of which UC
677
Total income
45 960
44 222
43 545
Total expenses
19 984
16 835
16 835
Impairments
1 556
835
835
Operating profit
24 420
26 552
25 875
Tax expense
4 711
5 374
5 374
Profit for the period attributable to 
the shareholders of Swedbank AB
19 697
21 162
20 485
Return on equity
14.7
16.1
15.6
Cost/Income ratio
0.43
0.38
0.39
1) Other income in the table above includes the items Net insurance and Other income from the Group  
income ­statement.
0
5 000
10 000
15 000
20 000
25 000
19
18
17
16
15
26
BOARD OF DIRECTORS’ REPORT
Financial analysis
Swedbank Annual and Sustainability Report 2019

tive effect of SEK 7bn. Foreign exchange effects positively 
affected lending by SEK 6bn in the year.
The total number of Swedbank cards in issue at the end of the 
year was 8.1 million, a slight increase compared with year-end 
2018. At the end of 2018 there were 4.3 million cards in issue in 
Sweden and 3.8 million in the Baltic countries. Corporate card 
issuance increased more than private card issuance. The number 
of debit cards increased 1 per cent in Sweden in the year, while the 
number of card transactions acquired increased 3 per cent in the 
Nordic countries in the same period. In the Baltic countries growth 
was significantly higher; the number of card purchases rose 
15 per cent and the number of card transactions acquired was up 
14 per cent. The higher growth rate in the Baltic countries is due 
to good economic growth as well as generally lower card usage 
there than in Sweden.
Total deposits increased SEK 34bn to SEK 954bn in the year, 
corresponding to growth of 4 per cent. The increase was mainly 
due to higher deposit volumes in Swedish and Baltic Banking, 
although deposits within Large Corporates & Institutions also 
increased. Foreign exchange effects positively affected deposits 
by SEK 5bn in the year.
Assets under management by Swedbank Robur rose in the 
year to SEK 1 083bn at 31 December, compared with SEK 857bn 
at year-end 2018. The change corresponds to an increase of just 
over 26 per cent and is largely due to higher valuations. Of the 
assets under management, SEK 1 026bn relates to Sweden and 
SEK 59bn to the Baltic business. Swedbank Robur’s market share 
was unchanged at 20 per cent.
Credit quality in Swedbank’s lending portfolios remained 
strong with low credit impairments, with the exception of certain 
oil-related loans. In 2019 credit impairments amounted to SEK 
1 469m, corresponding to a credit impairment ratio of 0.09 per 
cent (0.03). The increase compared with the previous year is 
mainly due to provisions for a few oil-related problem loans within 
Large Corporates & Institutions.
The Swedish housing market recovered in 2019. Prices and the 
number of transactions both rose due to high demand, a shortfall 
of new housing and low interest rates. The weaker market for 
new residential homes continued as the demand for housing 
under construction declined. Residential development represents 
a limited share of Swedbank’s total credit portfolio and lending is 
primarily to large, established companies with which Swedbank 
has a long-term relationship. The risks in mortgage lending are 
low and customers’ repayment capacity is generally good. Swed-
bank’s internal rules focus on customers’ long-term repayment 
capacity, which ensures high credit quality and low risks for both 
the customer and the bank.
Strong liquidity position
Funding activity was higher in 2019 than in the previous year and 
most of the funding was accomplished by covered bond issuances. 
In the fourth quarter Swedbank issued its inagural senior non-pre-
ferred bond to fulfil the MREL subordination requirements, which 
must be met by 1 January 2022. In 2019 Swedbank issued SEK 
143bn (117) in long-term debt instruments, of which SEK 131bn 
(88) was covered bonds and 11bn (0) was senior non-preferred 
liabilities. Additional Tier 1 capital of USD 500m was issued as 
well. The total issuance need for 2020 is expected to be in line 
with issuance volume for the full-year 2019. The issuance need is 
affected by the maturing volume as well as by the lending and 
deposit growth. As a result, funding volumes may be adjusted 
over the course of the year.
As of 31 December, outstanding short-term funding, commer-
cial paper, included in debt securities in issue amounted to SEK 
129bn (131). Available cash and balances with central banks and 
excess reserves with the Swedish National Debt Office amounted 
Net commission income, SEKm
Expenses, SEKm
Net commission income rose 1 per cent, mainly 
due to increased fees from asset management, 
cards and customer concepts.
Total expenses rose 19 per cent mainly due to 
higher staff and consulting costs. The consulting 
costs to manage the money laundering related 
investigations in 2019 amounted to 
SEK 1 104m. 
 Payment processing   
 Asset management 
 Other  
 Staff costs 
 IT expenses   
 Other expenses 
 Cost/income ratio
Net interest income, SEKm
Net interest income increased 3 per cent, to SEK 
25 989m,  mainly due to a lower resolution 
fund fee and higher lending volumes.
0
3 000
6 000
9 000
12 000
15 000
19
18
17
16
15
0
5 000
10 000
15 000
20 000
19
18
17
16
15
0.00
0.25
0.50
0.75
1.00
0
5 000
10 000
15 000
20 000
25 000
30 000
19
18
17
16
15
27
BOARD OF DIRECTORS’ REPORT
Financial analysis
Swedbank Annual and Sustainability Report 2019

to SEK 195bn (209). The liquidity reserve as of 31 December 
amounted to SEK 380bn (421). The Group’s liquidity coverage 
ratio (LCR) was 182 per cent (144) and for USD, EUR and SEK was 
157 per cent, 379 per cent and 111 per cent respectively. The net 
stable funding ratio (NSFR) was 120 per cent (111). The increase 
is largely due to a change in the calculation method from Basel III 
to CRR2; for a comparison, see the Fact book available on 
­swedbank.com/ir. 
Swedbank’s ratings outlook was changed to negative during 
the year by Moody’s, S&P and Fitch against the backdrop of the 
information on shortcomings in Swedbank’s anti-money launder-
ing work.  All three rating agencies have however confirmed their 
previous ratings in connection to the changed outlooks. When the 
regulatory authorities in Sweden and Estonia complete their 
respective investigations, the rating agencies are expected to 
conduct new reviews.
Strong capitalisation
Swedbank’s Common Equity Tier 1 capital ratio was 17.0 per cent 
(16.3) at the end of the year. This compares with the requirement 
of 15.1 per cent (14,6). Common Equity Tier 1 capital increased in 
the year by SEK 6.3bn to SEK 110.1bn. Profit after deducting the 
proposed dividend, based on the new dividend policy, affected 
Common Equity Tier 1 capital positively by SEK 9.5bn, while the 
revaluation of the pension liability according to IAS 19 reduced 
Common Equity Tier 1 capital by SEK 3.2bn.
Swedbank’s leverage ratio on 31 December was 5.4 per cent 
(5.1).
The risk exposure amount (REA) increased in 2019 to SEK 
649.2bn (637.9). The increase is mainly due to REA for credit risk, 
which rose SEK 11.2bn in the year, mainly because of higher lend-
ing volumes coupled with the implementation of IFRS 16 and for-
eign exchange effects. Cunteracting factors were lower REA for 
credit risk due to increased collateral values and shorter maturi-
ties, both mainly for corporate exposures within Large ­Corporates 
& Institutions. The REA add on for article 3 in CRR, which compen-
sates for the underestimation of the default frequency in the 
model for exposures to large corporates, resulted in a decrease in 
REA of SEK 7.9bn. The decrease is mainly explained by changes in 
the portfolio composition as well as the annual update of SREP for 
IRB models. REA for market risk increased SEK 3.3bn and REA for 
operating risks increased SEK 3.7bn in 2019.
Other events
On 12 February Swedbank’s Nomination Committee proposed  
the re-election of Board members Lars Idermark, Ulrika Francke, 
Siv Svensson, Bodil Eriksson, Peter Norman, Mats Granryd, Bo 
­Johansson, Magnus Uggla and Anna Mossberg. Lars Idermark was 
proposed as Chair of the Board of Directors. On 26 March Kerstin 
Hermansson was proposed as a new Board member. All members 
were elected at the Annual General Meeting on 28 March.
On 21 February the FSA’s in Sweden and Estonia announced 
the launch of a joint money laundering investigation against 
Swedbank. US authorities also launched investigations of 
­Swedbank during the year.
On 27 February the Swedish Economic Crime Authority 
announced that it had launched a preliminary investigation into 
Swedbank over allegations of unlawful disclosure of insider infor-
mation. On the 27 mars the preliminary investigation was wid-
ened to aggravated swindling.
On 28 March Swedbank’s Board of Directors announced the 
dismissal of Birgitte Bonnesen as President and CEO. Anders 
Karlsson was appointed acting President and CEO. The Annual 
General Meeting on the same day discharged all members of the 
Board of liabilities, but not the bank’s former CEO. The dividend for 
the financial year 2018 of SEK 14.20 per share was approved at 
the Annual General Meeting.
On 5 April Lars Idermark notified the Chair of the Nomination 
Committee that he was immediately stepping down from the role 
of Chair of Swedbank. Ulrika Francke took over as the new Chair of 
the Board. 
On 25 April Swedbank announced the creation of an Anti-­
Financial Crime unit (AFC). Anders Ekedahl was appointed to head 
the new unit.
Credit impairment ratio, %
Change in Common Equity Tier 1 capital, 2019,  
Swedbank consolidated situation, SEKbn
 Increase 
 Decrease
80
90
100
110
120
130
2019-12-31
Other
Deduction of intangible 
assets (incl. goodwill)
IAS 19
Anticipated 
dividend
Profit
2018-12-31
 103.8
+ 19.4
– 3.2
– 9.9
– 0.6
 110.1
+ 0.5
0.00
0.02
0.04
0.06
0.08
0.10
19
18
17
16
15
28
BOARD OF DIRECTORS’ REPORT
Financial analysis
Swedbank Annual and Sustainability Report 2019

On 28 April Swedbank’s Nomination Committee proposed Göran 
Persson as the new Chair of the Board of Swedbank. On 13 May 
it also proposed the election of Bo Magnusson and Josefin 
­Lindstrand as new Board members. The proposals were approved 
at the Extraordinary General Meeting on 19 July.
On 17 July the Board of Directors of Swedbank AB announced 
a change in the dividend policy from 75 to 50 per cent of annual 
profit to further strengthen the bank’s capital position. In connec-
tion with the announcement of the changed dividend policy, the 
bank the also announced a capital target whereby the Common 
Equity Tier 1 capital ratio will exceed the Swedish FSA’s require-
ment by 1–3 percentage points.
On 28 August the Board of Directors of Swedbank AB 
announced the appointment of Jens Henriksson as the new 
­President and CEO of Swedbank, and that Anders Karlsson had 
returned to his previous position as CFO.
On 16 September it was announced that Swedbank’s Annual 
General Meeting in 2020 will be held on Thursday, 26 March 2020. 
On 30 September it was announced that the former CEO, CFO 
and another senior officer of Swedbank Estonia were leaving the 
bank. Olavi Lepp was appointed as the new CEO and Anna Köouts 
as the new CFO.
On 1 October Jens Henriksson took over as CEO of Swedbank.
On 9 December Swedbank announced major organisational 
changes to create clearer decision-making structures and facili-
tate the realisation of the bank’s strategy. The main features of 
the organisational changes are as follows:
• Group IT and Digital Banking were merged under the new name 
Digital Banking & IT.
• Most of Customer Value Management was transferred to the 
business area Swedish Banking and the cash management, 
PayEx and payment infrastructure functions were integrated 
in Large Corporates & Institutions.
• A new unit to advise customers was created under the name 
Group Financial Products & Advice.
• The new Special Task Force was formed to manage the Clifford 
Chance report and other external investigations on historical 
shortcomings in the anti-money laundering work.
On 19 December Swedbank announced the recruitment of Ana 
Maria Matei as the new head of Internal Audit. Ana Maria Matei 
begins her new role on 1 April.
The bank’s Board of Directors has decided not to fund the 
2019 variable remuneration programme for the 170 highest rank-
ing executives in the bank. The decision was made to make clear 
that all senior managers have a responsibility to ensure that the 
bank lives up to current regulations.
Events after 31 December 2019
On 13 January Swedbank announced the recruitment of Erik 
Ljungberg as the new head of Group Communications. Erik 
Ljungberg will take up his position no later than July this year.
On 30 January Swedbank’s Nomination Committee announced 
its proposal on Board members to the Annual General Meeting. 
It proposes the re-election of current Board members Göran 
­Persson, Bo Magnusson, Kerstin Hermansson, Josefin Lindstrand 
and Anna Mossberg. Bo Bengtsson, Göran Bengtsson, Hans 
­Eckerström, Bengt Erik Lindgren and Biljana Pehrsson are pro-
posed as new members. Göran Persson is proposed as Chair of 
the Board of Directors.
Sustainability report
Swedbank’s sustainability report is prepared in accordance with 
the requirements of the Annual Accounts Act (chapter 6, para-
graph 12) on sustainability reporting. The scope is defined on 
pages 194 and 216.
29
BOARD OF DIRECTORS’ REPORT
Financial analysis
Swedbank Annual and Sustainability Report 2019

Swedish Banking
 
Sweden is Swedbank’s largest market, with around 4 million pri-
vate customers and over 250 000 corporate customers. This 
makes Swedbank Sweden’s largest bank by number of customers. 
Through digital channels, the telephone bank and our branches, 
and through the cooperation with the savings banks and fran-
chisees, we are always available. Swedbank is part of the local 
community. Branch managers have a strong mandate to act in 
their local communities. The bank’s presence and engagement are 
expressed in various ways. A project called “Young Jobs”, which 
has created thousands of trainee positions for young people, has 
played an important part in recent years. Swedbank has 168 
branches in Sweden. 
Result 2019
Profit increased to SEK 13 568m (12 858). The increase was 
mainly due to increased net interest and net commission income 
as well as lower credit impairments. Net interest income increased 
to SEK 16 253m (15 386). The main reason was increased net 
interest income from deposits. This was offset by slightly lower 
lending margins, mainly driven by increased market interest rates. 
A lower resolution fund fee compared with 2018 positively 
affected net interest income. Net commission income increased to 
SEK 7 862m (7 598). The increase was mainly due to higher 
income from asset management, cards and payments. The share 
of profit or loss of associates and joint ventures increased, mainly 
due to a higher result from partly owned savings banks. Other 
income decreased mainly because of one-off income of SEK 677m 
in 2018 due to the UC sale. Total expenses increased mainly due to 
higher expenses for the digitisation of customer offerings. Staff 
costs together with expenses for marketing decreased. Credit 
impairments fell to SEK 154m (598), mainly due to higher recoveries 
in 2019.
Condensed income statement, SEKm
2019
2018
Net interest income
16 253
15 386
Net commission income
7 862
7 598
Net gains and losses on financial items 
at fair value
433
406
Other income
1 824
2 177
Total income
26 372
25 567
Staff costs
2 986
3 172
Other expenses
6 381
5 850
Total expenses
9 367
9 022
Profit before impairments
17 005
16 545
Impairments
154
598
Operating profit
16 851
15 947
Tax expense and non-controlling interests
3 283
3 089
Profit for the year attributable to: 
Shareholders in Swedbank AB
13 568
12 858
Business volumes, SEKbn
Lending1
1 196
1 187
Deposits1
571
560
Key ratios
Return on allocated equity, %
21.0
20.9
Cost/income ratio
0.36
0.35
Credit impairment ratio2, %
0.01
0.05
Full-time employees
3 610
3 833
1) Excluding Swedish National Debt Office and repurchase agreements.
2) For more information about the credit impairment ratio see page 43 of the Fact book.
30
Swedbank Annual and Sustainability Report 2019
BOARD OF DIRECTORS’ REPORT
Swedish Banking

Baltic Banking
 
With around 3.3 million private customers and around 300,000 
corporate customers Swedbank is the largest bank, in terms of 
customers, in Estonia, Latvia and Lithuania. According to inde-
pendent surveys, Swedbank is also the most loved brand in the 
Baltic countries. Through its digital channels (Telephone Bank, 
Internet Bank and Mobile Bank) and branches, the bank is always 
available. Swedbank is part of the local community. Its local social 
engagement is expressed in many ways, with initiatives to pro-
mote education, entrepreneurship and social welfare. Swedbank 
has 26 branches in Estonia, 30 in Latvia and 43 in Lithuania.
Result 2019
Profit increased to SEK 4 918m (4 743) due to higher income. 
­Foreign exchange effects positively affected profit by SEK 138m. 
Net interest income rose 7 per cent in local currency, largely due to 
increased lending volumes. Foreign exchange effects positively 
affected net interest income by SEK 145m. Lending increased 8 
per cent in local currency. Household and corporate lending both 
increased in all three Baltic countries. Foreign exchange effects 
contributed an increase of SEK 3bn. Deposits grew 8 per cent in 
local currency and foreign exchange effects contributed with an 
increase of SEK 4bn. Net commission income increased 4 per cent 
in local currency. Higher income from cards and payments was 
partly offset by a lower result in asset management. Net gains 
and losses on financial items increased 3 per cent in local currency. 
The increase is largely due to positive revaluations of bond hold-
ings. Other income increased 10 per cent in local currency, mainly 
due to an improved result in the insurance operations. Expenses 
rose 9 per cent in local currency largely due to higher staff costs 
and expenses related to anti-money laundering work as well as 
costs for improved customer due diligence. Consulting and 	
marketing expenses and investments in digital solutions 
increased as well. Credit impairments amounted to SEK 3m, 
­compared with credit recoveries of SEK 208m in 2018.
Condensed income statement, SEKm
2019
2018
Net interest income
5 239
4 768
Net commission income
2 690
2 503
Net gains and losses on financial items 
at fair value
286
272
Other income
831
737
Total income
9 046
8 280
Staff costs
1 147
1 011
Other expenses
2 156
1 924
Total expenses
3 303
2 935
Profit before impairments
5 743
5 345
Impairments
11
-200
Operating profit
5 732
5 545
Tax expense and non-controlling interests
814
802
Profit for the year attributable to: 
Shareholders in Swedbank AB
4 918
4 743
Business volumes, SEKbn
Lending1
186
170
Deposits1
241
221
Key ratios
Return on allocated equity, %
19.6
20.7
Cost/income ratio
0.37
0.35
Credit impairment ratio2, %
0.00
–0.13
Full-time employees
3 656
3 586
1) Excluding Swedish National Debt Office and repurchase agreements.
2) For more information about the credit impairment ratio see page 43 of the Fact book.
31
Swedbank Annual and Sustainability Report 2019
BOARD OF DIRECTORS’ REPORT
Baltic Banking

Large Corporates & Institutions
 
Large Corporates & Institutions is responsible for Swedbank’s 
offering to customers with revenues above SEK 2 billion and 
those whose needs are considered complex due to multinational 
operations or a need for advanced financing solutions. They are 
also responsible for developing corporate and capital market prod-
ucts for other parts of the bank and the Swedish savings banks. 
Large Corporates & Institutions works closely with customers, 
who receive advice on decisions that create long-term profita­
bility and sustainable growth. Large Corporates & Institutions 
is represented in Sweden, Norway, Estonia, Latvia, Lithuania, 
­Finland, Luxembourg, China, the US and South Africa.
Result 2019
Profit decreased to SEK 2 481m (3 560), largely due to higher 
credit impairments. Net interest income decreased to SEK 3 776m 
(3 982), mainly because higher market interest rates negatively 
affected lending margins. Net commission income decreased to 
SEK 2 321m (2 065), partly as a result of the transfer of payment 
acquisition customers to Swedish Banking in the first quarter. 
A transfer of compensation from savings banks to other business 
areas as well as increased commission expenses also contributed 
negatively. Net gains and losses on financial items increased to 
SEK 2 201m (1 777). The main reason was a higher result from 
fixed income and bond trading. Total expenses increased to 	
SEK 3 976m (3 841) due to the closure of the Luxembourg branch 
as well as a higher expense level at PayEx. Credit impairments 
increased to SEK 1 312m (142), partly due to increased provisions 
for oil-related exposures.
Condensed income statement, SEKm
2019
2018
Net interest income
3 776
3 982
Net commission income
2 321
2 605
Net gains and losses on financial items 
at fair value
2 201
1 777
Other income
211
156
Total income
8 509
8 520
Staff costs
1 548
1 557
Other expenses
2 428
2 284
Total expenses
3 976
3 841
Profit before impairments
4 533
4 679
Impairments
1 312
142
Operating profit
3 221
4 537
Tax expense and non-controlling interests
740
977
Profit for the year attributable to: 
Shareholders in Swedbank AB
2 481
3 560
Business volumes, SEKbn
Lending1
223
221
Deposits1
142
139
Key ratios
Return on allocated equity, %
9.1
14.0
Cost/income ratio
0.47
0.45
Credit impairment ratio2, %
0.47
0.06
Full-time employees
1 244
1 196
1) Excluding Swedish National Debt Office and repurchase agreements.
2) For more information about the credit impairment ratio see page 43 of the Fact book.
32
Swedbank Annual and Sustainability Report 2019
BOARD OF DIRECTORS’ REPORT
Large Corporates & Institutions

Group functions & Other
 
Group Functions & Other consisted in 2019 of central business 
support units and the product areas Group Lending & Payments 
and Group Savings. The central units serve as strategic and 
administrative support and comprise Accounting & Finance, 
­Communication, Risk, IT, Compliance, Public Affairs, HR and Legal. 
Group Treasury is responsible for the bank’s funding, liquidity and 
capital planning. Group Treasury sets the prices on all internal 
deposit and loan flows in the Group through internal interest 
rates, where the most important parameters are maturity, inter-
est fixing period, currency, and need for liquidity reserves.
Result 2019
Profit decreased to SEK –1 271m (1). Group Treasury’s profit 
increased to SEK 935m (481). Net interest income fell to SEK 
721m (1 092). Group Treasury’s net interest income fell to SEK 
877m (1 133), mainly due to higher expenses for short-term for-
eign funding and effects of the bank’s internal pricing model in 
connection with rising short-term interest rates. Net gains and 
losses on financial items increased to SEK 710m (–345). Net gains 
and losses on financial items within Group Treasury increased to 
SEK 695m (–345) due to the appreciation of the value of the hold-
ings in Visa and Asiakastieto as well as derivatives linked to the 
bank’s funding, among other things. Covered bond repurchases 
also had a slightly negative effect compared with the previous 
year. Expenses rose to SEK 3 447m (1 183) due to increased staff 
costs and consulting expenses to manage money laundering 
investigations. A VAT provision, severance pay to former mem-
bers of the Group Executive Committee and fraud related 
expenses also had an impact. The tax expense amounted to SEK 
–114m (522) A deferred tax asset arose this year because Group 
Functions & Other posted a negative result before tax. An adjust-
ment of the previous year’s tax of SEK 64m also contributed after 
a positive settlement with the Swedish Tax Agency.
Condensed income statement, SEKm
2019
2018
Net interest income
721
1 092
Net commission income
57
84
Net gains and losses on financial items 
at fair value 
710
–345
Other income
653
1 170
Total income
2 141
2 001
Staff costs
5 439
4 544
Other expenses
–1 992
–3 361
Total expenses
3 447
1 183
Profit before impairments
–1 306
818
Impairments
79
295
Operating profit
–1 385
523
Tax expense and non-controlling interests
–114
522
Profit for the year attributable to: 
Shareholders in Swedbank AB
–1 271
1
Full-time employees
6 708
6 250
33
Swedbank Annual and Sustainability Report 2019
BOARD OF DIRECTORS’ REPORT
Group functions & Other

Corporate governance report 2019
Swedbank plays an important role in society as a bank for the many households and 
businesses. The bank has a strong foundation in the savings bank movement and in 
the countries where it is active. Swedbank promotes a sound and sustainable financial 
situation for our customers as well as society as a whole. This requires a corporate 
governance model with a clear delegation of responsibilities and satisfactory internal 
control, risk management and transparency.
2019 was a turbulent year for Swedbank. There was great focus 
from the media and internally on Swedbank’s anti-money launder-
ing work and historical shortcomings in the bank’s routines and 
processes in the Baltic countries. Swedbank was also investigated 
during the same period by regulatory authorities in our home mar-
kets and the US. There is a connection between the observations 
and shortcomings that were noted and Swedbank’s corporate 
governance, because of which these issues were a point of 
emphasis for the Board and management in 2019, and will remain 
a high priority in 2020. 
Importance of corporate governance 
Good corporate governance means managing the bank as sustain-
ably, effectively and responsibly as possible. Decision-making pro-
cesses should be simple, systematic and have clear lines of respon-
sibility. There have to be clearly defined routines to manage 
conflicts of interest and effective tools for internal governance, 
risk management and control of risk management. The corporate 
culture should be characterised by transparency, compliance and 
risk awareness. 
Regulations 
Swedbank is a Swedish public banking company listed on Nasdaq 
Stockholm and will therefore comply with the following regulations:
•	 Swedish Companies Act
•	 Banking and Financing Business Act 
•	 Securities Market Act
•	 Market Abuse Act
•	 Annual Accounts Act
•	 Nasdaq Stockholm rules for issuers
•	 Swedish Code of Corporate Governance
•	 Rules and guidelines of the Swedish Financial Supervisory 
Authority and other authorities
The bank also follows a large number of regulations adopted 
at the EU level, including: 
•	 The Capital Requirements Regulation (“CRR”) of the European 
Parliament and of the Council
•	 The Market Abuse Regulation (“MAR”) of the European 
­Parliament and of the Council
•	 The General Data Protection Regulation (“GDPR”) of the 
­European Parliament and of the Council
•	 The EBA’s guidelines on internal governance (“GL 11”)
•	 The ESMA and EBA’s guidelines on the assessment of suitability 
of members of the management body and key function holders 
(”GL 12”)
In recent years these regulations have become more extensive 
and detailed. As a result, greater effort is needed by the bank to 
ensure that it lives up to all pertinent regulations. 
Swedbank also has internal Group regulations. Through the 
internal and external regulations, responsibility for governance, 
control and monitoring operations is divided between the share-
holders, the Board and the CEO. Internal regulations include the 
following overarching documents:
•	 Governance policy and governance instruction
•	 The rules of procedure for the Board and instructions for the 
Board’s committees
•	 The instructions for the CEO and the head of Internal Audit
•	 The Group’s ERM policy and policy for operational risks
•	 Credit policy 
•	 Policy and instruction on anti-money laundering and 
­counter-terrorist financing 
•	 Remuneration policy 
•	 Policy for the Compliance function 
•	 Code of Conduct and policy for managing conflicts of interest 
•	 Anti-corruption policy
•	 Policy on gender equality, diversity and inclusiveness
•	 Sustainability policy and environmental policy 
•	 Policy for financial reporting
No deviations from the Swedish Code of Corporate Governance 
(the Code) or the rules of the stock exchange (NASDAQ OMX 
Stockholm) were reported in 2019. 
The Swedbank Group consists of the parent company, 
­Swedbank AB, as well as several subsidiaries, including the sub­
sidiary banks in the Baltic countries, Swedbank Robur, Swedbank 
­Hypotek and Swedbank Försäkring. Board members of major 
subsi­diaries are appointed through a process where the proposals 
are approved by the bank’s Board.
34
CORPORATE GOVERNANCE REPORT
Swedbank Annual and Sustainability Report 2019

The bank uses a matrix organisation to complement the legal 
structure, e.g. by allocating resources in an appropriate manner 
and exercising governance and control from a Group perspective. 
The bank’s governance model describes the delegation of respon-
sibilities within the Group, with role descriptions designed to cre-
ate strong and efficient processes. In accordance with the model, 
authority and responsibilities are delegated based on Group-wide 
principles. Business decisions are made close to customers, which 
places high demands on risk control and monitoring.
The Board and the CEO initiated a review of the bank’s corporate 
governance model late in the fourth quarter 2019, which will be 
implemented in 2020. Within the framework of the review, the 
bank will ensure that the new matrix organisation approved in 
December 2019 is integrated into the bank’s internal rules and 
mandates in a clear and appropriate manner and that improved 
routines and processes are implemented where needed to 
improve the efficiency in the Group’s governance and control. 
A sampling of important events in 2019:
Date
Event
9 January 
Annika Poutiainen asked to step down from the Board due to a conflict of interest
28 March 
The Board dismissed CEO Birgitte Bonnesen and appointed Anders Karlsson as acting CEO. 
Annual General Meeting  
28 March 
Ulrika Francke, Lars Idermark, Siv Svensson, Bodil Eriksson, Anna Mossberg, Peter Norman,  
Mats Granryd, Bo Johansson and Magnus Uggla were re-elected as Board members. 
Kerstin Hermansson was elected as a new Board member. 
Lars Idermark was elected as Chair of the Board.
Birgitte Bonnesen was not discharged from liability by the AGM.
4 April
The Board decided to hire attorney Biörn Riese as a legal advisor and Peje Emilsson, Kreab,  
as a communication advisor.
5 April 
Lars Idermark announced his intension to immediately step down as the Board’s Chair. 
Vice Chair Ulrika Francke took over as Chair. 
25 April
The Anti Financial Crime unit was established after a decision by the Board.
The Board resolved to appoint a new Head of Compliance and a new acting Head of Internal Audit.
Extraordinary General 
­Meeting 19 June
Prior to the Extraordinary General Meeting, Ulrika Francke, Siv Svensson and Peter Norman announced  
their intension to step down from the Board in connection with the Extraordinary General Meeting.
Josefin Lindstrand, Bo Magnusson and Göran Persson were elected as new board members. 
Göran Persson was appointed the Board’s Chair. 
27 August
The Board decided to establish a work group to manage the ongoing investigations  
and anti-money laundering measures.
28 August
A new CEO of the bank was appointed by the Board.
17 September
The Board appointed a permanent Head of Compliance. 
1 October
A new CEO of the bank took office.
9 December
The CEO named a new Group Management effective 1 January 2020. 
The Board dismissed the Head of Group Risk and appointed and an acting Head of Group Risk,  
both effective immediately. 
The CEO established the Special Task Force.
19 December 
A new head of Internal Audit was appointed by the Board.
35
CORPORATE GOVERNANCE REPORT
Swedbank Annual and Sustainability Report 2019

The illustration below shows the formal corporate governance structure. The number of each box refers to the corresponding numbered 
section in the corporate governance report. 
Elects/Appoints
Reports to/Informs/Recommends
Shareholders and General Meeting  1
CEO & President of the Group  8
Board of Directors  3
External regulation
Internal regulation
External Auditors  10
Nomination 
­Committee  2
Audit Committee  4
Internal Audit  9
Chief Audit Executive
Governance 
­Committee*  7
Risk and Capital 
­Committee  6
Compliance Function
Chief ­Compliance Officer
Remuneration 
­Committee  5
Group Risk
Chief Risk Officer
* According to decision in December 2019.
36
CORPORATE GOVERNANCE REPORT
Swedbank Annual and Sustainability Report 2019

1   Shareholders and general meetings
The shareholders exercise their influence through 
participation in the general meeting. According to the bank’s 
Articles of Association, the Annual General Meeting (AGM) 
must be held before the end of April, or under special circum-
stances not later than 30 June. Resolutions by the AGM are 
made by acclamation or voting. Swedbank has only one class 
of shares, ordinary shares, also called A shares. The shares 
carry one vote each. 
The AGM’s resolutions include:
•	 election of the Board of Directors and remuneration for Board 
members, including for committee work
•	 discharge from liability for Board members and the CEO
•	 amendments to the Articles of Association
•	 election of the Auditor
•	 adoption of the income statement and balance sheet
•	 disposition of the bank’s profit or loss
•	 remuneration principles and guidelines for the CEO and certain 
other senior executives
In addition to appointing the Board, Swedbank’s AGM decides, as 
shown abow, whether to discharge the Board and CEO from liability 
for the financial period covered in the accounting documents 
­presented to the AGM. This means that the 2020 AGM will decide 
whether to discharge the Board and CEO from liability for the 
financial year 2019.
Annual General Meeting 2019
The 2019 AGM was held on 28 March in Stockholm. A total of 
1 770 shareholders attended, representing about 57 per cent of 
the votes in the bank. All Board members who were nominated for 
re-election and new election, the majority of the Group Executive 
Committee and the Chief Auditor attended the AGM.
Among the 2019 AGM resolutions were as follows:
•	 Adoption of the annual report.
•	 Dividend for the 2018 financial year of SEK 14.20 per share.
•	 The number of Board members shall be ten. Nine Board 
­members were re-elected and one new member was elected. 
•	 Lars Idermark was elected as the Chair 
•	 The Articles of Association were amended to increase the Board’s 
flexibility in terms of the number of Board meetings per year. 
•	 Remuneration to the Board members and the Auditor.
•	 Repurchase of shares by the securities operations and authori-
sation of the Board to resolve to repurchase additional shares 
to adjust the bank’s capital structure to prevailing capital needs.
•	 Mandate to issue convertibles that can be converted to shares.
•	 Remuneration guidelines for senior executives.
•	 Group-level performance- and share-based remuneration pro-
grammes for 2019. As a result of this and previously approved 
programmes, it was resolved to transfer ordinary shares (or 
other financial instruments in the bank) to employees covered 
by the programmes.
•	 Principles for appointing the Nomination Committee. 
•	 The Board’s members were discharged from liability. 
•	 The CEO was not discharged from liability
Extraordinary General Meeting 2019
An Extraordinary General Meeting was held on 19 June in Stock-
holm. A total of 1 158 shareholders attended, representing about 
58 per cent of the votes in the bank. All Board members who were 
nominated for election and the majority of the Group Executive 
Committee and the Chief Auditor attended the Extraordinary 
General Meeting. The General Meeting resolved that there shall be 
nine elected Board members, three of whom were newly elected. 
Göran Persson was elected as Chair of the Board. 
2   Nomination Committee
The Nomination Committee has adopted guidelines for its 
work, whereby the Board shall at all times be composed of 
members with a diversity and breadth in terms of compe-
tence, experience and background. Gender parity is encour-
aged. The bank’s operations, stage of development and 
future direction are taken into account. It is important that 
the Board has the support of shareholders, at the same time 
that it has to be independent in relation to the bank, the 
executive management and the bank’s major shareholders 
At the 2020 AGM, the AGM will adopt an instruction for the 
work of the Nomination Committee.
The 2019 AGM decided on the principles for the appointment of 
the Nomination Committee prior to the 2020 AGM. They include 
that the committee comprise six members, including representa-
tives of the five largest shareholders, on the condition that they 
wish to appoint a member. The right to appoint a member other-
wise goes to the next largest shareholder. The Chair of the Board 
is a member of the Nomination Committee. The members of the 
Nomination Committee receive no remuneration. From the time 
that former Chair Lars Idermark stepped down on 5 April 2019 
until 16 September 2019, when a new Nomination Committee 
was assembled, the Nomination Committee consisted of five 
members. 
As part of its work, the Nomination Committee had personal 
conversations with every Board member to ask for their input on 
the Board’s performance and their experience with the last year’s 
events and how the bank handled them. The Board’s Chair was not 
present during these conversations. Based on the Board evalua-
tion, oral statements and other information, the Nomination Com-
mittee discussed the Board’s composition, which competencies 
should be represented in the Board and the Board’s size. The Nom-
ination Committee has conducted an internal suitability assess-
ment of the proposed candidates and among other things evalu-
ated the candidates’ experience and competence, reputation, any 
conflicts of interest and suitability.
37
CORPORATE GOVERNANCE REPORT
Swedbank Annual and Sustainability Report 2019

During its term the Nomination Committee also:
•	 Noted the Chair’s and the CEO’s views on the bank’s operations 
and the challenges that the bank faces in coming years as well 
as the need for complementary competence on the Board.
•	 Reviewed competence needs and discussed the Board’s compo-
sition in view of Swedbank’s strategies, future challenges and 
the requirements of the Companies Act.
•	 Considered the rules limiting the number of directorships 
a member of a bank of Swedbank’s size may hold and whether 
the candidates were able to devote sufficient time to the 
Board’s work.
•	 The candidates’ independence and any conflicts of interest.
•	 Evaluated the collective knowledge and expertise of the Board.
Current composition of the Nomination Committee prior to the 
2020 AGM (announced on 16 September 2019).
Member
Representing
Lennart Haglund, Chair of the 
­Nomination Committees 
Sparbankernas Ägareförening
Ylva Wessén
Folksam 
Charlotte Rydin
Alecta
Anders Oscarsson
AMF and AMF Fonder
Peter Karlström
Ownership group Sparbanks­
stiftelserna 
Göran Persson, Chair of the Board
Swedbank AB (publ)
3   Board of Directors
The Board of Directors has overarching responsibility for 
managing Swedbank’s affairs in the interests of the bank 
and its shareholders. This is done sustainably with a focus 
on the customer and sound risk taking to ensure the bank’s 
long-term survival and instil the market’s trust.
The Board currently consists of nine members elected by the AGM 
for one year. It also includes two employee representatives and 
two deputies. The Board meets the requirements of the Code 
with respect to its members’ independence. All members except 
Bo Johansson are considered independent in relation to the bank 
and the executive management. All members are considered inde-
pendent in relation to the bank’s major shareholders. The current 
gender distribution is 44 per cent women and 56 per cent men. 
The CEO, the CFO and the Company Secretary attend Board meet-
ings but are not members of the Board. The composition of the 
Board is presented on pages 46–49.
The Board’s responsibilities and their delegation
The Board is the highest decision-making body after the AGM, and 
the highest executive body. Swedbank’s Board sets the financial 
goals and strategies; appoints, dismisses and evaluates the CEO; 
verifies that effective systems are in place to monitor and control 
operations and that laws and regulations are followed; and 
ensures transparency and accurate information disclosures. The 
Board is also ultimately responsible for ensuring that the bank has 
an effective organisation and corporate governance. The Board 
appoints/dismisses the heads of Group Risk, Compliance and Inter-
nal Audit. Internal Audit is directly subordinate to the Board. 
In addition to appointing the Board, Swedbank’s AGM decides 
whether to discharge the Board and CEO from liability for the 
financial period covered in the accounting documents presented 
to the AGM. This means that the 2020 AGM will decide whether to 
discharge the Board and CEO from liability for the financial year 
2019. The Board appoints and dismisses the head of Internal 
Audit, the CRO and the head of Compliance. The Internal Audit 
function is directly subordinate to the Board.
The Chair of the Board has certain specific responsibilities, which 
include the following:
•	 Lead Board meetings and work and encouraging an open and 
constructive debate
•	 Monitor and evaluate the competence, work and contributions 
of individual Board members
•	 Oversee the CEO’s work, serve as a sounding board and support, 
and monitor that the Board’s decisions and instructions are
•	 implemented
•	 Represent the bank on ownership and other key issues with 
investors and other stakeholders. 
The Board’s overarching responsibility cannot be delegated. The 
Board has appointed committees, however, to monitor, prepare 
and evaluate issues within specific areas for resolution by the 
Board. See below. In autumn 2019 the Board began a review of 
the Board’s committees, which was completed in early 2020.
The division of tasks between the Board, the Chair of the 
Board and the CEO is determined annually through the Board’s 
rules of procedure, the corporate governance policy and the 
instruction for the CEO, among other things. In October 2019 
an evaluation of the Board’s work was conducted to obtain input 
on the Board’s performance. A summary of the results was 
­presented to the Board.
The Board’s work
The Board’s work was very intensive in 2019 and it held 38 meet-
ings, seven of which were by correspondence. The Board was 
unanimous in its decisions, and no dissenting opinions were noted 
on any issue during the year. Potential conflicts of interest for 
Board’ members are reported at each meeting and mean that the 
member may not take part in discussions or decisions on the 
­particular topic.
Each year the Board establishes a work plan where it decides 
which issues to treat in depth. In 2019 the Board largely focused 
on the anti-money laundering and counter-terrorist financing 
work and within the Board established a work group to manage 
the ongoing regulatory investigations, follow up the anti-money 
laundering action plan established in 2019, and analyse reporting 
from the Anti Financial Crime, which was established during the 
year. The Board also hired attorney Biörn Riese as a legal advisor 
and Peje Emilsson from Kreab as an advisor on communication 
issues. In addition, the international law firm Clifford Chance was 
hired, with forensic expertise support, to conduct a comprehen-
sive investigation to among other things describe how the bank 
38
CORPORATE GOVERNANCE REPORT
Swedbank Annual and Sustainability Report 2019

has dealt with money laundering issues, shortcomings in routines 
and processes, internal and external information disclosures, and 
liability issues. Clifford Chance was also asked to review the 
bank’s current compliance work with respect to money laundering 
with the aim of issuing recommendations to ensure that the bank 
follows best industry practices. The Board decided in late autumn 
2019 to expand its circle of legal advisors to include the US law 
firm Quinn Emanuel.
Other major issues in 2019 included:
•	 The bank’s strategic plan with underlying strategies
•	 Measures to improve customer satisfaction and restore 
­confidence in the bank.
•	 Implementation of sustainability issues in the bank’s main pro-
cesses: fund management, payments, lending and procurement
•	 Greater focus on customers and digital channels.
•	 Information security issues.
•	 Corporate governance and other regulatory issues.
•	 Macroeconomic developments and their impact on the bank 
and its limits and exposures.
•	 Capital and liquidity issues with an emphasis on the new  
capital requirements.
•	 liquidity strategies and funding issues.
•	 The current risk and capital situation, including the Internal 
Capital Adequacy Assessment Process (ICAAP) and other 
stress tests.
•	 Credit decisions where the total Group credit limit exceeds a 
certain amount as well as limits for credit risk concentrations 
and loans to bank officials with a vested interest.
•	 Major ongoing projects within the bank.
•	 Competition and business intelligence.
The Board’s competence
Once a year the Board conducts a detailed analysis of one or more 
areas. In 2019 the focus was on the Baltic operations. Each year 
the Board establishes a training plan. For 2019 it comprised 
among other things action plans and improvements to anti-
money laundering work, training on new regulatory requirements 
and corporate governance, and monitoring of the implementation 
of PSD2, GDPR, GL 11 and GL 12, among other regulations. The 
Board also receives regular training in cybersecurity. 
New Board members attend the bank’s introductory training, 
which is designed to quickly familiarise them with the organisation 
and operations and to help them better understand Swedbank’s 
values and culture. Members are also informed of their legal respon-
sibility as directors and of their roles on the various committees.
The Board’s Committees
The Board has appointed a number of committees to prepare 
issues and facilitate in-depth discussions in certain areas. The 
committees assist the Board by preparing board issues. The 
Board’s committees, which have no decision-making power of 
their own, instead recommend decisions to the Board. All commit-
tee minutes and all material prepared by the committees is availa-
ble to the entire Board.
4   Audit Committee
The Audit Committee, through its work and in consultation 
with the external Auditor, the head of Internal Audit and the 
Group Executive Committee, provides the Board with access 
to information on the operations. Its purpose is to identify 
any deficiencies in routines and the organisation in terms of 
governance, risk management and control.
The Audit Committee’s purpose is to ensure that the bank’s exec-
utive management establishes and maintains effective routines 
for internal governance, risk management and control. These rou-
tines must be designed to provide reasonable assurance with 
respect to reporting (financial reporting, operational risk) and 
compliance (laws, regulations and internal rules) and ensure the 
suitability and efficiency of the bank’s administrative processes 
and the protection of its assets. The Audit Committee also 
reviews the work of the internal and external auditors to ensure 
that it has been conducted effectively, impartially and satisfacto-
rily. The committee proposes measures that are decided on by the 
Board as needed.
The head of Internal Audit is a co-opted member of the com-
mittee. The majority of the members must be independent in rela-
tion to the bank and its executive management. At least one 
member must also be independent in relation to the bank’s major 
shareholders. At least one member must have special competence 
in accounting or auditing.
The work of the Audit Committee also includes:
•	 Reviewing and evaluating the Group’s financial reporting 
­process
•	 Responsibility for the quality of the company’s reporting
•	 Responsibility for ensuring that interim and year-end reports 
are audited or reviewed by the external Auditor
•	 Meeting the external Auditor on each reporting date
•	 Approving consulting services by the external Auditor that 
exceed a set amount
•	 Staying informed of accounting standards
•	 Evaluating the head of Internal Audit
•	 Reviewing and approving Internal Audit’s budget, instruction 
and annual plan
•	 Reviewing Internal Audit’s quarterly reports and suggested 
improvements
•	 Monitoring Internal Audit’s annual plan and strategic priorities
•	 Monitoring the external Auditor’s plan and risks in the financial 
reporting
Auditing issues associated with the financial reporting within the 
Audit Committee were primarily addressed in 2019. In December 
2019, however, the Board decided that all issues associated with 
internal and external audits would be handled by the Audit 
­Committee. 
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CORPORATE GOVERNANCE REPORT
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Members of the Audit Committee: 
22 March 2018– 
28 March 2019
28 March– 
19 June 2019
19 June– 
26 March 2020
Siv Svensson, 
Chair 
Ulrika Francke  
Mats Granryd 
Peter Norman 
Annika Poutiainen  
(until 9 January 2019)
Siv Svensson, 
Chair  
Ulrika Francke  
Mats Granryd  
Kerstin Hermansson 
Peter Norman
Bo Magnusson, 
Chair
Mats Granryd 
Kerstin Hermansson  
Josefin Lindstrand  
Anna Mossberg
5   Remuneration Committee
The Board’s Remuneration Committee verifies that the 
bank’s remuneration systems generally conform to effec-
tive risk management practices and legal requirements. 
Remuneration systems must comply with all applicable 
rules, such as the Swedish (the Code) for corporate gover­
nance Code, the Swedish FSA’s guidelines and the European 
Banking Authority’s guidelines for senior executives.
The committee’s chair and members must have the knowledge 
and experience with risk analysis necessary to independently 
evaluate the suitability of the bank’s remuneration policy. The 
members must be independent in relation to the bank and its 
executive management. Learn more about remuneration at 
Swedbank further down in the corporate governance G13.
The work of the Remuneration Committee also includes:
•	 Salaries, pensions, variable remuneration and other benefits for 
the Group Executive Committee (in accordance with the guide-
lines adopted by the AGM) and the head of Internal Audit
•	 The Board’s proposal to the AGM regarding remuneration 
guidelines for senior executives
•	 Allocation and evaluation of the bank’s performance- and 
share-based remuneration programmes and other issues 
­associated with the programmes 
•	 Swedbank’s remuneration policy
•	 Decisions pursuant to or deviations from remuneration policies
•	 Annual review and evaluation of the effectiveness of the remu-
neration instructions
•	 Preparation and recommendation to the Board on remu­
neration to consultants where total remuneration exceeds 
a certain amount 
•	 Review to ensure that salary differences are not arbitrary
•	 Succession planning
In December 2019 the Board decided that issues concerning the 
nominating process for Board members of major subsidiaries 
as well as the instruction for the bank’s internal Nomination 
­Committee will be prepared by the Remuneration Committee.
Members of the Remuneration Committee: 
22 March 2018–19 June 2019
19 June–26 March 2020
Lars Idermark, Chair
(to 5 April 2019)
Bodil Eriksson
Ulrika Francke, Chair
(from 5 April 2019) 
Anna Mossberg
Göran Persson, Chair
Bodil Eriksson
Bo Magnusson 
Anna Mossberg 
6   Risk and Capital Committee
The Board’s Risk and Capital Committee supports the Board 
in its work to ensure that routines are in place to identify 
and define risks relating to business activities as well as to 
measure and control risk-taking. The members of the com-
mittee have special competence and experience working 
with risk and capital issues as well as compliance. 
The work of the Risk and Capital Committee also includes:
•	 Internal Capital Adequacy Assessment Process (ICAAP) and 
the bank’s capitalisation
•	 The bank’s credit limits and exposures, including its largest 
exposures and provisions and the largest provisions.
•	 Stress tests of various credit portfolios and other analyses of 
the credit portfolios, especially the Swedish mortgage port­
folio’s composition and its importance to the bank’s funding
•	 The size of the bank’s liquidity portfolio and other liquidity 
issues
•	 Funding-related issues and strategies, especially with respect 
to covered bonds
•	 Reviews reporting from Compliance.
Each month the committee receives a risk report from Group 
Risks, which contains among other things a report on the Group’s 
risks. A more detailed description of the Group’s risk areas can be 
found in note G3.
The Compliance function reports quarterly on the Group’s 
compliance risks and non-compliance. In addition, the function 
drafts an annual compliance plan, which contains the Group’s 
­principal compliance risk areas. The reporting of the Compliance 
function is prepared by the Risk and Capital Committee. 
In December 2019 the Board decided to streamline the report-
ing to the Risk and Capital Committee to reports from the first and 
second lines of defence, i.e. the Credit, Group Risk and Compliance 
functions. This means that the Internal Audit function will con-
tinue to report primarily to the Audit Committee.
The annual plans for the Internal Audit, Group Risk and Comp­
liance functions are presented each year to the Risk and Capital 
Committee and the Audit Committee.
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Members of the Risk and Capital Committee: 
22 March 2018–19 June 2019
19 June–26 March 2020
Magnus Uggla, Chair 
Ulrika Francke
Lars Idermark
(to 5 april 2019)
Bo Johansson
Peter Norman 
Siv Svensson
Magnus Uggla, Chair
Bo Johansson 
Josefin Lindstrand 
Bo Magnusson 
Göran Persson
7   Governance Committee 
In December 2019 the Board decided to convert the work group it 
formed in 2019 (see above) to a permanent Governance Commit-
tee. This committee will support the Board in its work to ensure 
that the bank’s overarching organisation and corporate govern-
ance processes are effective and appropriate given the nature and 
scope of the business. The committee will also ensure that the 
business has clear mandates and principles for reporting, escala-
tion and monitoring of internal control at the Group level. Through 
the new committee, more time is allocated for detailed prepara-
tions of corporate governance issues, including recurring reviews 
of the Board’s overarching principles for corporate governance as 
well as internal control and monitoring of the implementation of 
the Group’s internal rules by the subsidiaries. The committee will 
also monitor and coordinate regulators’ investigations with an 
impact on the Group’s operations or that relate to money launder-
ing and financial crime.
The previous Board’s work group
Bo Magnusson, Chair 
Kerstin Hermansson 
Josefin Lindstrand 
Magnus Uggla
8   President and CEO
The President and CEO is responsible for managing the 
bank’s day-to-day operations and is the officer ultimately 
responsible for ensuring that the Board’s strategic direction 
and other decisions are implemented and followed by the 
business areas and subsidiaries, and that risk management, 
governance, IT systems, the organisation and processes are 
satisfactory. The CEO represents the bank externally on var-
ious matters, leads the work of the Group Executive Com-
mittee and makes decisions after consulting its members.
The CEO has the possibility to delegate duties to subordinates or 
Group committees, although ultimate responsibility is retained by 
the CEO. The committees do not have any collective decsion-
making authority; instead, decisions are made by the Chair of each 
committee or escalated to the CEO. The Board’s view of the CEO’s 
special areas of responsibility is set out in, among other places, 
The Board’s corporate governance policy and instructions for the 
CEO. The CEO is responsible for ensuring that the Board’s deci-
sions, policies and instructions are followed by the businesses  
and that they are evaluated annually.
The CEO establishes Group-wide rules on internal control. 
To support internal control, the CEO has a number of monitoring 
units within the Group, primarily Group Finance, Group Risk and 
Compliance. Follow-ups are done regularly through written 
reports and in-depth reviews with the heads of the various Group 
Functions and with the business areas. For more information, see 
the Board of Directors’ report on internal control of financial 
reporting on page 45. The CEO is also responsible for ensuring 
that the Group has a strategy for competence management.
Group Executive Committee, other committees and forums 
The Group Executive Committee (GEC) is the CEO’s decision 
­management forum and consists of 17 members. In 2019 Anti 
Financial Crime unit was formed, the Head of which also added 
to the GEC. 
Jens Henriksson was appointed as CEO on 1 October 2019 
and decided on 9 December 2019 to reorganise the GEC, which 
as of 1 January 2020 consists of 14 members: the Chief Executive 
Officer, the Heads of the business areas Swedish Banking, Baltic 
Banking and Large Corporates & Institutions, the Chief Financial 
Officer, the Chief Credit Officer, the Heads of Anti Financial Crime, 
Group Financial Products and Advice, Digital Banking and IT, Group 
Risk, Group Compliance, Group Human Resources and Infrastruc-
ture, Group Communication and Sustainability and Group Legal. 
A large number of the members have direct business responsibility 
and the GEC therefore also plays an important role as a forum 
for sharing information and ideas. The GEC normally meets 
every Monday.
The GEC drafts proposals for remuneration systems and 
­recommends variable remuneration for employees to the Board’s 
Remuneration Committee. The view is that remuneration should 
be individually based as far as possible and to encourage employee 
performance in line with Swedbank’s goals, strategy and vision. 
It also contributes to sound risk-taking.
The GEC is complemented by the following committees: Group 
Asset Allocation Committee (GAAC), Group Risk and Compliance 
Committee (GRCC), Group Investment Committee (GIC) and Group 
Crisis Management Team (GCMT).
GAAC is led by the CFO. One of GAAC’s goals is to consolidate 
financial control of capital, liquidity, financing and tax issues as 
well as management and governance issues. 
The GRCC is led by the Head of Group Risk, who together with 
the Head of Compliance, after consulting the other members of 
the GRCC, issues recommendations to the Board and the CEO. 
The GRCC contributes to the strategic planning of the Group’s 
risk appetite to ensure harmonisation from a risk perspective. 
Since the reorganisation, the GIC is led by CFO. The GIC plans 
and prioritises the Group’s strategic investments and ensures 
that they conform with the bank’s strategy. 
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CORPORATE GOVERNANCE REPORT
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The GCMT is led by the head of operational risks and is ­convened 
as needed to manage crisis situations. 
Similar committees to those mentioned above have also been 
formed at other levels of the organisation. 
The CEO has also established a Senior Management Forum 
(SMF), composed of senior executives in the bank, to ensure imple-
mentation and coordination of strategically important issues.  
The CEO evaluates SMF’s composition to ensure it has a suitable 
combination of competence and experience.
Priority issues for the GEC in 2019 
In 2019 the GEC addressed a number of issues of which the 
­following is a selection: 
•	 Measures to address money laundering, terrorist financing 
and corruption.
•	 Regulators’ investigations on the bank’s anti-money 
­laundering work.
•	 New organisation, including a new GEC.
•	 Establishment of the Special Task Force to coordinate the 
ongoing investigations
•	 Investments to increase customer confidence and value.
•	 Capital and liquidity issues.
•	 Mobile payment alternatives were further expanded to include 
Google Pay and Apple Pay.
•	 Investment in and collaboration with the fintech company 
Kaching Retail.
•	 Sustainability issues, e.g. signing of the UN’s Principles for 
Responsible Banking.
•	 Investor meetings.
•	 Further work with IT development and security.
•	 Internal control and risk management.
Internal control and risk management
The basis for effective risk management is a strong, shared risk 
culture. The bank’s functions for internal control and risk manage-
ment are based on three lines of defence.
First line of defence – risk management by business 
­operations
The first line of defence are the business operations. In their day-
to-day operations Swedbank’s business units ensure that deci-
sions are sound and that risk-taking is done under controlled and 
conscious forms in accordance with internal and external rules. 
Employees of the business units have a good understanding of 
their customers and specific insight into the local market. The 
bank’s risk classification tools also serve as support for all business 
processes. As support in the first line the bank has built up certain 
central support functions to reduce risks in the first line of 
defence. These functions include Anti Financial Crime, ­Group 
­Communication and Sustainability, Group Credit, Group Human 
Resources and Infrastructure, Group Finance and Group Legal. 
Second line of defence – independent control functions
The second line of defence consists of the internal control functions 
Group Risk and Compliance, which among other things monitor, 
control and report the Group’s risks and whether the Group 
­follows internal and external regulations. The bank has established 
central, independent control functions for risk and compliance 
that act in the business units. The control functions identify, 
­monitor and report on risk management, including operational 
risks and compliance-related risks.
Risk control
Swedbank has an independent risk control function, Group Risk, 
which works with the Group’s risk management. The Head of 
Group Risk is directly subordinate to the CEO and reports to the 
CEO and the Board. 
Group Risk is responsible for identifying, quantifying, analys-
ing and reporting risks and for conducting independent analyses 
and stress tests of how outside events impact Swedbank. Group 
Risk also provides expert advice and serves as an advisor to ensure 
that decisions are consistent with the bank’s risk appetite and risk 
tolerance (limits). Accordingly, internal rules are issued for risk 
management and risk control at various levels.
Group Risk prioritizes resources to the areas where they the 
most significant risks exist.
The Board’s Policy on Enterprise Risk Management (ERM) 
­contains frameworks and describes roles and responsibilities per-
taining to risk management and control. It also contains guidelines 
on the size of the capital buffer maintained as protection against 
major economic slowdowns.
Compliance
Swedbank has an independent compliance function responsible 
for monitoring and control of the Group’s compliance. The Head of 
Compliance is directly subordinate to the CEO and reports to the 
CEO and the Board. 
Compliance’s work is based on four processes: plan compliance 
work based on risk assessments, monitor operations through ran-
dom and recurring inspections, report to the CEO, the Board and 
other operations on areas of improvement identified through 
inspections, and advice and support.
Compliance’s work is risk-based and thus prioritises resources 
to areas with the highest compliance risks. Compliance’s work is 
governed by the Policy for the Compliance Function adopted by 
the Board.
9   Third line of defence – Internal Audit 
Swedbank has an independent Internal Audit function.  
The Head of Internal Audit is directly subordinate to  
and reports to the Board and thus is independent of the 
executive management. 
The purpose of Internal Audit’s reviews is to create improvements 
in operations by evaluating risk management, governance and 
internal control.
All of the bank’s activities and Group companies are the pur-
view of Internal Audit. Internal Audit evaluates whether the exec-
utive management, through the internal controls and governance 
structures it has implemented, has ensured that the controls in 
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CORPORATE GOVERNANCE REPORT
Swedbank Annual and Sustainability Report 2019

business operations are effective, risk management processes 
areeffective, and governance processes and the organisation are 
appropriate, functioning and support the purpose of the business. 
Internal Audit also works proactively to suggest improvements 
in internal control.
In its work, Internal Audit follows professional guidelines on 
­internal audits and the code of ethics of the Institute of Internal 
Auditors as established in the International Professional  
Practices Framework. 
10   External Auditor
The external Auditor is an independent reviewer of the 
bank’s financial accounts and determines whether they are 
materially accurate and complete and provide a fair view of 
the bank and its financial position and results. The Auditor 
also ensures that they are prepared according to current 
laws and recommendations. Moreover, the Auditor reviews 
the administration of the Board of Directors and the CEO.
At the AGM the Auditor presents the Auditors’ report and 
describes the audit work. The Auditor presented its review and 
observations to the Board on three occasions in 2019. The Audi-
tor has met regularly with the Chair of the Board, the Chair of the 
Audit Committee, the executive management and other operat-
ing managers on a regular basis. Swedbank’s interim reports are 
reviewed briefly by the Auditor. The sustainability report has been 
reviewed briefly as well, in accordance with the definition on page 
194. According to the Articles of Association, the bank shall have 
no less than one and no more than two authorised public account-
ants and a registered auditing firm may also be appointed as audi-
tor. The Chief Auditor is Authorised Public Accountant Anneli 
Granqvist. PwC is the accounting firm since its election by the 
2019 AGM. Remuneration for the Group’s Auditor is reported in 
note G14. In addition to the assignment as elected auditor, PwC 
has performed audit-related services, mainly involving accounting 
issues, tax services and other services such as transaction sup-
port. Assignments closely associated with the audit normally do 
not constitute a threat to the Auditor’s independence. Other con-
sulting services by the Auditor are, according to the bank’s policy, 
performed restrictively. In accordance with current rules on audi-
tor independence, all consulting services must be approved in 
advance by the Audit Committee and may not commence until 
then. The Audit Committee annually evaluates the Auditor’s 
objectivity and independence. The Auditor annually reaffirms 
its independence in the audit report.
Group structure   
An effective operating structure is important to the bank’s gov-
ernance. The Group structure provides a framework for various 
roles, functions and reporting channels within the bank. The 
bank’s Group structure is divided into business areas, product 
areas and Group Functions. The CEO decided in December 2019 
on a new Group structure that took effect on 1 January 2020. The 
organisational change resulted in among other things the merger 
CEO
CEO Secreteriat
Special Task Force
Group Risk
Group Compliance
CFO Office
Group Credit
Anti-Financial Crime
Group Communication 
& Sustainability
Group Human Resources 
& Infrastructure
Group Legal
Large Corporates  
& Institutions
Swedish  
Banking
Digital 
Banking & IT
Group Financial 
­Products & Advice
Internal Audit
Swedbank Group
Baltic  
Banking
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CORPORATE GOVERNANCE REPORT
Swedbank Annual and Sustainability Report 2019

of the Group Functions Digital Banking and Group IT into one unit 
that also took over responsibility for consumer payments and card 
operations. Digital Banking and IT also develop and manage the 
digital channels as well as CRM tools. CVM was dissolved and large 
parts were integrated into the business area Swedish Banking, 
which has thereby taken over coordination of customer strate-
gies, development of customer offers and management of cam-
paigns. The functions for cash management, PayEx and payment 
infrastructure were integrated into the business area Large 
­Corporates & Institutions. The bank’s financial products were 
brought together in a new unit, Group Financial Products and 
Advice, as a result of which the previous units Group Savings and 
Group Lending and Payments were dissolved. The new unit is 
responsible for providing products and services in savings, 
­insurance and lending, as well as ensuring an effective advisory 
­process and supporting employees who meet customers.
Business areas
The bank’s operations are conducted in three business areas: 
Swedish Banking, Baltic Banking and Large Corporates & Institu-
tions. The business area managers are directly subordinate to the 
CEO. They have overarching responsibility for their operations 
and report continuously to the CEO. 
The business area managers’ responsibilities are to:
•	 Implement the Group’s strategies and compile business plans 
for each business area and ensure that they are implemented 
and reported to the CEO.
•	 Create and maintain reporting and escalation routines 
to ­highlight issues for information or decision by the CEO 
or  Board level. 
•	 Ensure that policies and instructions are implemented within 
the business area.
•	 Responsible for customer offering and product development.
•	 Integrate sustainability in business decisions and procedures.
•	 Responsible for profitability and financial stability in the 
­business area.
•	 Monitor, supervise and manage the business area’s assets, 
­liabilities and profitability.
•	 Maintain a sound internal control system to identify, manage 
and mitigate risks.
•	 Effective implementation of the bank’s corporate governance 
model within the business area.
Group Functions
The Group Functions’ role is to support the CEO and the Group’s 
business operations as well as to create consistent routines, 
ensure effective governance and monitoring within the Group, 
and clarify Swedbank’s vision and strategy. Among the roles of 
the Group Functions is to develop Group-wide policies and instruc-
tions for the Board and CEO to adopt. Moreover, they propose 
other Group-wide internal rules, which are approved by the man-
ager of each Group Function. The purpose of these Group-wide 
rules and processes is to support the CEO and the Group’s business 
operations, to clarify Swedbank’s vision, purpose, values and 
strategy, and to minimise risks in the business operations. Addi-
tionally, the Group Functions create and monitor Group-wide pro-
cedures, which serve as support for the business operations and 
facilitate a sharing of experience between the bank’s various mar-
kets. They are responsible for compiling and analysing reports for 
the CEO and the Board as well as proposing solutions to issues 
that require immediate action within heir respective area and 
thereby creating an effective solution to the problem. The heads 
of each Group Functions have unrestricted insight into the 
business operations in order to fulfil their obligations. 
Further information on Swedbank’s corporate governance
On Swedbank’s website, www.swedbank.com, under the tab 
“About Swedbank”, is a special section on corporate governance 
issues, which contains, among other things:
•	 Swedbank’s Articles of Association
•	 The Nomination Committee’s principles and work
•	 Information on Swedbank’s Annual General Meetings since 2011
•	 Information on remuneration in Swedbank and an evaluation of 
the remuneration guidelines for Swedbank’s senior executives
•	 The bank’s code of conduct 
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The Board of Directors’ report on 
internal control of financial reporting
The Board of Directors is ultimately responsible for ensuring that financial reporting 
complies with external regulations as well as for monitoring internal control of finan-
cial reporting (ICFR). ICFR is based on the following five internal control components.
Control environment: The Board of Directors and executive 
management establish the foundation for internal control
To support reliable reporting, Swedbank’s internal control is 
rooted in the bank’s organisational structure and the policies and 
instructions established by the Board. Furthermore, a directive 
has been specifically prepared for ICFR by the bank’s CFO. 
A Group-wide ICFR framework is in place based on the bank’s 
vision, purpose and values (see page 1). The purpose of the frame-
work is to identify and assess risks in relation to the financial 
reporting.
Risk analysis: Risk assessment based on essentiality  
and ­complexity
Risk management is an integral part of business activities.  
Every unit manager has primary responsibility for risk manage-
ment and assessment in their operations and in the financial 
reporting process. 
Risk analysis within the ICFR framework is conducted at the 
Group level to identify and create an understanding of the risks 
in financial reporting with regard to both essentiality and com-
plexity. The risk analysis is then used as a basis for deciding which 
areas should be covered by the framework.
Control activities: Controls at different levels
Controls are performed at various levels of the bank to ensure 
­reliable financial reporting. They are categorised according to  
the ICFR framework’s structured controls as follows: Group-level 
controls, controls at the process/ transaction level, and general 
IT controls.
Compliance – Follow-up and assessment
Follow-up on the ICFR framework controls is regularly performed 
through self-assessment, to ensure reliability of the financial 
reporting process. The results of the self-assessment are used 
as support for the bank’s change and improvement work.
Communication - Follow-up and assessment
The self-assessment is compiled and analysed by the ICFR depart-
ment to identify any risks of misstatement in the financial report-
ing as well as potential improvement areas. The results of the 
analysis are reported to Swedbank’s CFO and Audit Committee 
on a quarterly basis.
ICFR
4. Information and 
communication
5. Monitoring
2. Risk analysis
3. Control  
activities
1. Control  
environment
45
CORPORATE GOVERNANCE REPORT
Swedbank Annual and Sustainability Report 2019

Board of Directors
1) Holdings as of 31 December 2019
Göran Persson
Bo Magnusson
Bodil Eriksson
Year of birth
Born 1949
Chair since 19 June 2019
Born 1962
Vice chair since 19 June 2019
Born 1963 
Board member since 2016
Shareholdings 
in Swedbank1
Own and closely related parties: 25 000
Own and closely related parties: 20 000
Own and closely related parties: 0
In Swedbank 
as
■ Chair 
■ Remuneration Committee, chair
■ Risk and Capital Committee, member 
Attendance: ■ 12/12  ■ 3/3  ■ 5/6
Total annual fees: ■ 2 630 000   
■ 105 000  ■ 250 000
Göran Persson has extensive experience 
leading the boards of both state-owned 
and private enterprises. He contributes his 
social engagement and large network as 
well as broad experience with national and 
international economic issues and sustain-
able development.
■ Vice chair 
■ Remuneration Committee, member
■ Risk and Capital Committee, member 
■ Audit Committee, chair
Attendance: ■ 12/12  ■ 3/3  ■ 5/6   
■ 3/3
Total annual fees: ■ 885 000  ■ 105 000  
■ 250 000  ■ 395 000
Bo Magnusson has many years of experi-
ence in the financial industry, both as a 
­senior executive and director. In addition 
to broad competence from the financial 
sector, he contributes his skills from the 
real estate industry.
■ Board of Directors, member 
■ Remuneration Committee, member 
Attendance: ■ 32/38  ■ 7/7
Total annual fees: ■ 605 000  ■ 105 000  
Bodil Eriksson is the CEO of Volvo Car 
Mobility. She has extensive experience 
from senior positions in consumer and 
service companies. She contributes broad 
branding expertise as well as knowledge 
and experience with digitised customer 
offers.
Board 
­member’s 
independence
Independent in relation to the bank and the 
executive management and independent in 
relation to the bank’s major shareholders
Independent in relation to the bank and the 
executive management and independent in 
relation to the bank’s major shareholders
Independent in relation to the bank and the 
executive management and independent in 
relation to the bank’s major shareholders. 
 
 
 
 
Education
University studies in Sociology and 
­Political science
Wallenberg Institute, Executive Leader-
ship Program • Barclays Bank, London, 
International Banking Program
Higher banking training
University studies 
Bank specific 
experience
Board: 5 years (2015)
Operational: 29 years
Board: 7 years (2013)
Board: 4 years (2016)
Professional 
­experience
JKL Group, senior advisor
Sveaskog, Chair • Scandinavian Air Ambu-
lance, Chair • Swedish Prime Minister •	
Swedish Finance Minister • Wiklöf Holding 
AB, Board member
SBAB Bank AB and Sveriges Säkerställda 
Obligationer AB, Chair • Carnegie Holding 
AB and Carnegie Investment Bank AB, 
Chair • NS Holding AB and Fastighetsbola-
get Norrporten AB, Chair • 4T-WyWallet, 
Chair • Senior positions at SEB 
 
 
Chief Executive, Volvo Cars Mobility
Executive Vice President, Volvo Cars USA, 
LLC • Senior Vice President, Volvo Car Cor-
poration • Executive Vice President, Apo-
tek Hjärtat • ­Senior Vice President, SCA • 
Executive Vice President, Axfood
Non-­
executive 
assignments
LKAB, Chair • Scandinavian Biogas
Fuels International AB, Chair • Greengold, 
Chair
Rikshem AB, Chair • Rikshem Intressenter 
AB, Chair • KBC Bank NV (Belgium), Board 
member
46
CORPORATE GOVERNANCE REPORT
Board of Directors
Swedbank Annual and Sustainability Report 2019

1) Holdings as of 31 December 2019
Mats Granryd
Kerstin Hermansson
Bo Johansson
Born 1962 
Board member since 2017
Born 1957
Board member since 2019
Born 1965  
Board member since 2017
Year of birth
Own and closely related parties: 1 000
Own and closely related parties: 0
Own and closely related parties: 6 500
Shareholdings 
in Swedbank1
■ Board of Directors, member
■ Audit Committee, member
Attendance: ■ 30/38  ■ 4/5
Total annual fees: ■ 605 000  ■ 240 000 
Mats Granryd comes from the telecom 
industry and, through his experience at 
Ericsson and Tele 2 is used to leading large 
companies in a regulated environment.
■ Board of Directors, member 
■ Audit Committee, member
Attendance: ■ 25/25  ■ 4/4
Total annual fees: ■ 605 000  ■ 240 000
Kerstin Hermansson brings to the Board 
mainly her expertise in securities and com-
pliance issues. She is an attorney with 
many years of experience in the European 
securities market.
■ Board of Directors, member 
■ Risk and Capital Committee, member 
Attendance: ■ 38/38  ■ 11/12
Total annual fees: ■ 605 000  ■ 250 000
Bo Johansson has a strong background
in the Swedish savings bank movement and 
at Swedbank, where he has worked for a 
large part of his professional life. Today he 
leads a savings bank. 
 
 
 
 
In Swedbank 
as
Independent in relation to the bank and 
executive management and independent in 
relation to the bank’s major shareholders.
Independent in relation to the bank and the 
executive management and independent in 
relation to the bank’s major shareholders
Bo Johansson is the CEO of Swedbank Sju-
härad, which according to the Swedish Cor-
porate Governance Code is a closely related 
company to Swedbank. Thus, Bo Johansson 
is not considered independent in relation to 
Swedbank and the executive management. 
Bo Johansson is considered independent in 
relation to the bank’s major shareholders.
Board 
­member’s 
independence
MSc Royal Institute of Technology in 
Stockholm 
 
LLM, Lund University
MSc Economics
Education
Board: 3 years (2017)
Operational: 9 years
Board:  1 year (2019)
Operational: 29 years 
Board: 3 years (2017)
Bank specific 
experience
Director General, GSMA
President and CEOTele 2 • Senior positions 
within Ericsson
CEO, Swedish Securities Dealers Associa-
tion (Svenska Fondhandlarföreningen) • 	
Global Head of Legal & Compliance, 
Enskilda Securities AB (subsidiary of SEB 
Group) • Securities lawyer, SEB • Attorney, 
Jacobsson&Ponsbach Fondkommission AB 
• Notary services at Linköping’s District 
Court and the police authorities in 
­Katrineholm
CEO, Swedbank Sjuhärad AB
Bank Manager Swedbank AB Jämtland/
Härje­dalen • Head of Trade Finance, Swed-
bank Markets • Bank Manager Härjedalen • 
Acting branch manager Sparbanken Sveg
Professional 
­experience
COOR, Chair
European Banking Federation and ESMA’s 
(European Securities and Market Author-
ity) Securities and Markets Stakeholder 
Group
Non-­
executive 
assignments
47
CORPORATE GOVERNANCE REPORT
Board of Directors
Swedbank Annual and Sustainability Report 2019

Board of Directors
Camilla Linder
Josefin Lindstrand
Roger Ljung
Year of birth
Born 1968  
Employee representative since 2015 and 
deputy since 2013
Born 1976
New board member since 19 June 2019
Born 1967  
Employee representative since 2015
Shareholding1
Own and closely related parties: 1 127
Own and closely related parties: 0
Own and closely related parties: 0
In Swedbank 
as
■ Board of Directors, member,  
employee representative 
Total annual fees: No fees
Camilla Linder is an employee representa-
tive and has extensive experience in bank-
ing, including retail banking.
■ Board member 
■ Risk and Capital Committee, member 
■ Audit Committee, member
Attendance: ■ 12/12  ■ 6/6  ■ 3/3
Total annual fees: ■ 605 000  ■ 250 000  
■ 240 000
Josefin Lindstrand is an attorney with 
many years of experience in the financial 
industry, including as a director. She brings 
to the Board mainly her expertise in com-
pliance and money launder ing issues.  
■ Board of Directors, member, employee 
representative
Total annual fees: No fees
Roger Ljung is an employee representative 
and has broad experience at Swedbank. 
Board 
­member’s 
independence
Not applicable
Independent in relation to the bank and the 
executive management and independent in 
relation to the bank’s major shareholders
Not applicable
Education
Upper secondary school
LLM, University of Stockholm •
University Diploma in Business Adminis-
tration, University of Stockholm
Upper secondary school
Bank specific 
experience
Operational: 24 years
Operational: 11 years
Board: 4 years (2016)
Operational: 32 years
Professional 
­experience
Employee, Swedbank AB • 
Sparbanken Alfa • Föreningssparbanken  
Specialist advisor in corporate govern-
ance through private practice
Specialist Counsel, Advokatfirman Hammar­
skiöld & Co • BNP Paribas, member of the 
board of SevenDays Finans AB • Sörmlands 
Sparbank, vice chairman • Clearstone AB, 
founder and owner • Intertrust Group, 
Business Unit Director, Compliance 
­Services • Citi, senior positions in Legal 
and Compliance • Swedbank AB, in-house 
­counsel
Business advisor, Swedbank AB • 
Retail advisor, branch manager, Swedbank 
AB • Finansförbundets förbundsstyrelse,  
Board member 
 
 
Non-­
executive 
assignments
Finansförbundets koncernklubb Swed-
bank, Chair • SPK, Board member 
Finansförbundets koncern­klubb 
Swedbank, Deputy Chair • Finans och 
försäkringsbranschens A-kassa, Board 
member • SPK, Deputy Chair
1) Holdings as of 31 December 2019
48
CORPORATE GOVERNANCE REPORT
Board of Directors
Swedbank Annual and Sustainability Report 2019

Anna Mossberg
Magnus Uggla
Born 1972
Board member since 2018
Born 1952  
Board member since 2017
Year of birth
Own and closely related parties: 1 800
Own and closely related parties: 10 000
Shareholding1
■ Board of Directors, member 
■ Remuneration Committee, member
■ Audit Committee, member
Attendance: ■ 37/38  ■ 7/7  ■ 3/3
Total annual fees: ■ 605 000   
■ 105 000 ■ 240 000
Anna Mossberg contributes with her expe-
rience and expertise in digital change. She 
has a long background in the internet and 
telecom industries, including as Business 
Area Manager at Google, and many years in 
various senior roles at Telia and Deutsche 
Telecom AG.
■ Board of Directors, member
■ Risk and Capital Committee, Chair
Attendance: ■ 36/38  ■ 12/12 
Total annual fees: ■ 605 000  ■ 430 000
Magnus Uggla has an extensive back-
ground from Handelsbanken, including as 
Vice President of Handelsbanken Interna-
tional,Head of Handelsbanken’s UK region 
and Head of the Stockholm region.
In Swedbank 
as
Independent in relation to the bank and the 
executive management and independent in 
relation to the bank’s major shareholders.
Independent in relation to the bank and the 
executive management and independent in 
relation to the bank’s major shareholders.
Board 
­member’s 
independence
Executive MBA, IE University, Spain •
Executive MBA, Stanford University, USA •
MSc, Luleå University of Technology
MSc Royal Institue of Technology in 
­Stockholm • MBA Stockholm School of 
­Economics • Stanford Executive Program
Education
Board: 2 years (2018)
Operational: 34 years 
Board: 3 years (2017)
Bank specific 
experience
Full-time working director
Business Area Manager, Google Sverige AB 
• CEO, Bahnhof AB • SvP, Strategy and 
Port­folio Management, Deutsche Telecom 
AG • Director Internet Services, Telia AB • 
Vice President, Telia International Carrier 
AB 
 
 
 
Full-time working director 
Vice President, Handelsbanken • Axel 
­Johnson AB • Swedish Ministry of Industry 
• Sveriges Riksbank
Professional 
­experience
SwissCom AG, Board member • Schibsted 
ASA, Board member
 
Non-­
executive 
assignments
1) Holdings as of 31 December 2019
49
CORPORATE GOVERNANCE REPORT
Board of Directors
Swedbank Annual and Sustainability Report 2019

Group Executive Committee
1) Holdings as of 31 December 2019
Anders Karlsson
Group Financial Officer (CFO)
Born 1966. Employed 1999–2008 
and since 2010
Shareholdings in Swedbank:1 
22 848 
Education: MSc ­Economics
Mikael Björknert
Head of Swedish Banking. 
Born 1966. Employed since 2010
Shareholdings in Swedbank:1 
3 049
Education: BSc Business 
­Administration and Economics
Directorships: ­NASDAQ Nordic, 
Board member • Bankgirot, Chair
Jens Henriksson
President and CEO
Born 1967. Employed since 
1 ­October 2019 
Shareholdings in Swedbank:1 0
Education: BA Economics, MSc 
Electrical Engineering, Control 
­Theory, and Fil. Lic. Economics
Lars-Erik Danielsson
Chief Credit Officer
Born 1962. Employed since 1990  
Shareholdings in Swedbank:1 
6 523
Education: Studies in business 
and economics
Anders Ekedahl
Head of Anti-Financial Crime Unit
Born 1960. Employed since 1987
Shareholdings in Swedbank:1 
21 933
Education: MSc , Stockholm School  
of Economics
Gunilla Domeij Hallros
Acting Chief Risk Officer
Born 1961. Employed since 2010
Shareholdings in Swedbank:1 
2 491
Education: Economist
Ingrid Harbo
Chief Compliance Officer
Born 1959. Employed since 2011
Shareholdings in Swedbank:1 
1 500
Education: Master of Laws, LL.M.
Johan Eriksson
Acting Head of Group Communi­
cations & Sustainability
Born 1976. Employed since 2016
Shareholdings in Swedbank:1 0
Education: MSc in Business 
­administration.
Eva de Falck
Chief Legal Officer and Head of 
Group Legal
Born 1960. Employed since 2010
Shareholdings in Swedbank:1 
1 642
Education: Master of Laws, LL.M.
50
Swedbank Annual and Sustainability Report 2019
CORPORATE GOVERNANCE REPORT
Group Executive Committee

1) Holdings as of 31 December 2019
Carina Strand
Head of HR & Infrastructure
Born 1964. Employed since 2017
Shareholdings in Swedbank:1 0
Education: Economist
Ola Laurin
Head of Large Corporates  
& ­Institutions
Born 1971. Employed since 2000
Shareholdings in Swedbank:1 
7 269
Education: M.Sc. in Business 
Administration
Jon Lidefelt
Acting Head of Baltic Banking
Born 1973. Employed since 2013
Shareholdings in Swedbank:1 
1 278
Education: MSc Engineering 
­Physics
Lotta Lovén
CIO and Head of Digital Banking & IT
Born 1967. Employed 1986–1999 
and since 2004
Shareholdings in Swedbank:1 
2 993
Education: Market economist
Directorships: ­Finansiell ID-teknik, 
Board member
Kerstin Winlöf
Head of Group Savings 
Born 1966. Employed since 2019
Shareholdings in Swedbank:1  
700
Education: MSc in Business 
­Administration and Economics
51
Swedbank Annual and Sustainability Report 2019
CORPORATE GOVERNANCE REPORT
Group Executive Committee

Proposed disposition of earnings 
and statement of the Board of 
­Directors
In accordance with the balance sheet of Swedbank AB,
SEK 49 340m is at the disposal of the Annual General Meeting:
The Board of Directors recommends that the earnings should 
be disposed as follows (SEKm):
A cash dividend of SEK 8.80 per ordinary share
9 856
To be carried forward to next year
39 484
Total disposed
49 340
The proposed total amounts to be distributed and carried forward 
to next year have been calculated on all 1 118 304 389 outstand-
ing ordinary shares at 31 December of 2019, plus 1 715 349 out-
standing ordinary shares entitled to dividends which have been 
estimated to be exercised by employees between 1 January to the 
Annual General Meeting as per 26 March 2020 relating to remu-
neration programs. The proposed total amounts to be distributed 
and carried forward to next year are ultimately calculated on the 
number shares entitled to dividends on the record day. The 
amounts could change in the event of additional share repur-
chases or sales of treasury shares before the record day.
 Unrealised changes in the value of assets and liabilities at fair
value have had a negative effect on equity of SEK 781m.
The proposed record day for the dividend is 30 March 2020. 
The last day for trading in Swedbank’s shares with the right to the 
dividend is 26 March 2020. If the Annual General Meeting accepts 
the Board’s proposal, the dividend is expected to be paid by Euro-
clear on 2 April 2020. At year-end, the consolidated situation’s 
total capital requirement according to pillar 1 and buffer require-
ments by SEK 40 788m. The surplus in Swedbank AB was 
SEK 82 146m. 
The business conducted in the parent company and the Group 
involves no risks beyond what occur or can be assumed will occur 
in the industry or the risks associated with conducting business 
activities. The Board of Directors has considered the parent com-
pany’s and the Group’s consolidation needs through a comprehen-
sive assessment of the parent company’s and the Group’s financial 
position and the parent company’s and the Group’s ability to meet 
their obligations. The assessment has also been done based on 
currently expected regulatory changes.
Given the financial position of the parent company and the 
Group, there can be no assessment other than that the parent 
company and the Group can continue their business and that the 
parent company and the Group can be expected to meet their lia-
bilities in both the short and long term and have the ability to 
make the necessary investments. It is the assessment of the 
Board of Directors that the size of the equity, even after the pro-
posed dividend, is reasonable in proportion to the scope of the 
parent company’s and the Group’s business and the risks associ-
ated with conducting the business. 
The assessment of the Board of Directors is that the proposed 
dividend is justifiable given the demands that are imposed due to 
the nature, scope and risks associated with the business and the 
Group’s business on the size of the parent company’s and the 
Group’s equity as well as on the parent company’s and the Group’s 
balance sheets, liquidity and financial positions.
52
Swedbank Annual and Sustainability Report 2019
CORPORATE GOVERNANCE REPORT
Disposition of earnings

53
Financial statements, Group 
Swedbank Annual and Sustainability Report 2019
Financial statements and notes – Group
54
Income statement
55
Statement of comprehensive income
56
Balance sheet
57
Statement of changes in equity
58
Statement of cash flow
Initial notes
59
Note
G1
Corporate information
59
Note 
G2
Accounting policies
67
Note 
G3
Risks
67
3.1
Credit risks
87
3.2
Assets taken over for protection of claims  
and cancelled leases
88
3.3
Liquidity risk
92
3.4
Market risk
93
3.4.1 Interest rate risk
94
3.4.2 Currency risk
95
3.4.3 Market risk in trading operations 
95
3.4.4 Share price risk
95
3.4.5  Commodity risk
95
3.5
Operational risks
96
3.6
Insurance risks
96
3,7
Other
97
Note
G4
Capital
97
Internal capital assessment
99
Capital adequacy analysis
102
Note 
G5
Operating segments
106
Note
G6
Products
107
Note 
G7
Geographical distribution
Income statement
110
Note 
G8
Net interest income
111
Note 
G9
Net commission income
112
Note 
G10
Net gains and losses on financial items
112
Note 
G11
Net insurance
112
Note 
G12
Other income
113
Note 
G13
Staff costs and other staff related key ratios
117
Note 
G14
Other general administrative expenses
117
Note 
G15
Depreciation/amortisation of tangible and  
intangible fixed assets
117
Note 
G16
Impairments of tangible assets including  
repossessed lease assets
117
Note 
G17
Credit impairments
118
Note 
G18
Tax
120
Note 
G19
Earnings per share
Statement of comprehensive income
120
Note
G20
Tax for each component in other comprehensive income
Balance sheet
120
Note 
G21
Treasury bills and other bills eligible for refinancing  
with central banks etc.
121
Note 
G22
Loans to credit institutions
121
Note 
G23
Loans to the public
122
Note 
G24
Bonds and other interest-bearing securities
122
Note 
G25
Financial assets for which the customers bear  
the investment risk
122
Note 
G26
Shares and participating interests
122
Note 
G27
Investments in associates and joint ventures
124
Note 
G28
Derivatives
125
Note 
G29
Hedge accounting
130
Note 
G30
Intangible assets
133
Note 
G31
Tangible assets
134
Note 
G32
Other assets
134
Note 
G33
Prepaid expenses and accrued income
134
Note 
G34
Amounts owed to credit institutions
134
Note 
G35
Deposits and borrowings from the public
134
Note 
G36
Financial liabilities for which the customers bear  
the investment risk
134
Note 
G37
Debt securities in issue
134
Note 
G38
Short positions in securities
135
Note 
G39
Pensions
137
Note 
G40
Insurance provisions
137
Note 
G41
Other liabilities and provisions
137
Note 
G42
Accrued expenses and prepaid income
137
Note 
G43
Subordinated liabilities
138
Note 
G44
Equity
138
Note 
G45
Valuation categories of financial instruments
140
Note 
G46
Fair value of financial instruments
145
Note
G47
Financial assets and liabilities which have been offset or are 
subject to netting agreements or similar agreements
Statement of cash flow
146
Note
G48
Specification of adjustments for non-cash items  
in operating activities
Other notes
146
Note 
G49
Dividend paid and proposed
146
Note 
G50
Assets pledged, contingent liabilities and commitments
147
Note 
G51
Transferred financial assets
147
Note 
G52
Operational leasing
148
Note 
G53
Related parties and other significant relationships
149
Note 
G54
Interests in unconsolidated structured entities
150
Note 
G55
Sensitivity analysis
150
Note 
G56
Events after 31 December 2019
151
Note
G57
Effects of changes in accounting policies, IFRS 16
152
Note
G58
Changed presentation of net interest income

54
FINANCIAL STATEMENTS, GROUP
Swedbank Annual and Sustainability Report 2019
SEKm
Note
2019
2018
Interest income on financial assets at amortised cost
32 810
32 015
Other interest income
2 560
2 043
Interest income
35 370
34 058
Interest expense
–9 381
–8 830
Net interest income1
G8
25 989
25 228
Commission income
19 472
18 967
Commission expense
–6 488
–6 131
Net commission income
G9
12 984
12 836
Net gains and losses on financial items
G10
3 629
2 112
Net insurance
G11
1 465
1 192
Share of profit or loss of associates and joint ventures
G27
822
1 028
Other income
G12
1 071
1 826
Total income
45 960
44 222
Staff costs
G13
11 119
10 284
Other general administrative expenses
G14
7 314
5 865
Depreciation/amortisation of tangible and intangible fixed assets
G15
1 551
686
Total expense
19 984
16 835
Profit before impairment
25 976
27 387
Impairment of intangible assets
G30
79
306
Impairment of tangible assets
G16
8
8
Credit impairment
G17
1 469
521
Operating profit
24 420
26 552
Tax expense
G18
4 711
5 374
Profit for the year
19 709
21 178
Profit for the year attributable to: 
Shareholders of Swedbank AB
19 697
21 162
Non-controlling interests
12
16
Earnings per share, SEK
G19
17,62
18,96
Earnings per share after dilution, SEK
G19
17,56
18,89
Income statement, Group
1) Presentation of net interest income related to interest income and interest expense have changed compared to 2018. Refer to Note G2 for further information.

55
Swedbank Annual and Sustainability Report 2019
FINANCIAL STATEMENTS, GROUP 
SEKm
Note
2019
2018
Profit for the year reported via income statement
19 709
21 178
Items that will not be reclassified to the income statement
Remeasurements of defined benefit pension plans
G39
–3 866
–1 806
Remeasurements of defined benefit pension plans related to associates and joint ventures
–127
–63
Change in fair value attributable to changes in own credit risk of financial liabilities designated  
at fair value through profit or loss
G46
17
22
Income tax
G20
793
361
Total
–3 183
–1 486
Items that may be reclassified to the income statement
Exchange rate differences, foreign operations
Gains/losses arising during the year
739
1 870
Hedging of net investments in foreign operations:
G29
Gains/losses arising during the year
–600
–1 474
Cash flow hedges:
G29
Gains/losses arising during the year
159
421
Reclassification adjustments to income statement, Net gains and losses on financial items
–154
–403
Foreign currency basis risk:
Gains/losses arising during the year
–18
–72
Share of other comprehensive income of associates and joint ventures:
Exchange rate differences, foreign operations
32
36
Income tax:
G20
Gains/losses arising during the year
134
211
Reclassification adjustments to the income statement, Tax expense
33
86
Total
325
675
Other comprehensive income for the year net of tax
–2 858
–811
Total comprehensive income for the year
16 851
20 367
Total comprehensive income for the year attributable to:  
Shareholders of Swedbank AB
16 839
20 351
Non-controlling interests
12
16
Statement of comprehensive income, Group

56
FINANCIAL STATEMENTS, GROUP
Swedbank Annual and Sustainability Report 2019
SEKm
Note
2019
2018
1/1/2018
Assets
Cash and balances with central banks
195 286
163 161
200 364
Treasury bills and other bills eligible for refinancing with central banks, etc.
G21
137 094
99 579
85 962
Loans to credit institutions
G22
45 452
36 268
31 020
Loans to the public
G23
1 652 296
1 627 368
1 534 893
Value change of interest hedged item in portfolio hedge
271
766
789
Bonds and other interest-bearing securities
G24
57 367
53 312
59 447
Financial assets for which the customers bear the investment risk
G25
224 893
177 868
180 320
Shares and participating interests
G26
6 568
4 921
19 850
Investments in associates and joint ventures
G27
6 679
6 088
6 161
Derivatives
G28
44 424
39 665
55 680
Intangible assets
G30
17 864
17 118
16 329
Tangible assets
G31
5 572
1 966
1 955
Current tax assets
2 408
2 065
1 375
Deferred tax assets
G18
170
164
173
Other assets
G32
8 859
13 970
14 527
Prepaid expenses and accrued income
G33
3 025
1 813
1 607
Total assets
2 408 228
2 246 092
2 210 452
Liabilities and equity
Liabilities
Amounts owed to credit institutions
G34
69 686
57 218
68 244
Deposits and borrowings from the public
G35
954 013
920 750
855 713
Financial liabilities for which the customers bear the investment risk
G36
225 792
178 662
181 124
Debt securities in issue
G37
855 754
804 360
850 209
Short positions securities
G38
34 345
38 333
14 459
Derivatives
G28
40 977
31 316
46 200
Current tax liabilities
836
1 788
1 379
Deferred tax liabilities
G18
1 571
1 576
2 226
Pension provisions
G39
8 798
4 979
3 200
Insurance provisions
G40
1 894
1 897
1 834
Other liabilities and provisions
G41
28 807
30 035
25 577
Accrued expenses and prepaid income
G42
4 383
3 385
2 990
Senior non-preferred liabililties
10 805
Subordinated liabilities
G43
31 934
34 184
25 864
Total liabilities
2 269 595
2 108 483
2 079 019
Equity
Non-controlling interests
25
213
202
Equity attributable to shareholders of the parent company
138 608
137 396
131 231
Total equity
G44
138 633
137 609
131 433
Total liabilities and equity
2 408 228
2 246 092
2 210 452
Balance sheet, Group

57
Swedbank Annual and Sustainability Report 2019
FINANCIAL STATEMENTS, GROUP 
Statement of changes in equity, Group
Equity attributable to shareholders of Swedbank AB
SEKm
Share 
capital
Other 
contributed 
equity1
Exchange 
differences, 
sub­sidiaries 
and 
­associates
Hedging 
of net 
investments 
in foreign 
operations
Cash flow 
hedge 
reserve
Foreign 
currency 
basis 
reserve
Own 
credit risk 
reserve
Retained 
earnings
Total
Non–con-
trolling 
interests
Total 
equity
Opening balance 1 January 2018
24 904
17 275
3 602
–2 255
–10
38
–36
87 713
131 231
202
131 433
Dividend
–14 517
–14 517
–5
–14 522
Share based payments to employees
321
321
321
Deferred tax related to share based 
payments to employees
–9
–9
–9
Current tax related to share based 
payments to employees
19
19
19
Total comprehensive income for 
the year
1 906
–1 189
14
–57
18
19 659
20 351
16
20 367
of which reported through profit 
or loss
21 162
21 162
16
21 178
of which reported through other 
comprehensive income, before tax
1 906
–1 474
18
–72
22
–1 869
–1 469
–1 469
of which income tax reported 
through other comprehensive 
income
285
–4
15
–4
366
658
658
Closing balance 31 December 2018
24 904
17 275
5 508
–3 444
4
–19
–18
93 186
137 396
213
137 609
1) Other contributed equity consists mainly of share premiums.
Equity attributable to shareholders of Swedbank AB
SEKm
Share 
capital
Other 
contributed 
equity1
Exchange 
differences, 
sub­sidiaries 
and 
­associates
Hedging 
of net 
investments 
in foreign 
operations
Cash flow 
hedge 
reserve
Foreign 
currency 
basis 
reserve
Own 
credit risk 
reserve
Retained 
earnings
Total
Non–con-
trolling 
interests
Total 
equity
Opening balance 1 January 2019
24 904
17 275
5 508
–3 444
4
–19
–18
93 186
137 396
213
137 609
Dividend
–15 878
–15 878
–15
–15 893
Share based payments to employees
272
272
272
Deferred tax related to share based 
payments to employees
–34
–34
–34
Current tax related to share based 
payments to employees
13
13
13
Business disposals
–185
–185
Total comprehensive income for 
the year
771
–436
4
–14
13
16 501
16 839
12
16 851
of which reported through profit 
or loss
19 697
19 697
12
19 709
of which reported through other 
­comprehensive income, before tax
771
–600
5
–18
17
–3 993
–3 818
–3 818
of which income tax reported through 
other comprehensive income
164
-1
4
–4
797
960
960
Closing balance 31 December 2019
24 904
17 275
6 279
–3 880
8
–33
–5
94 060
138 608
25
138 633
1) Other contributed equity consists mainly of share premiums.

58
FINANCIAL STATEMENTS, GROUP
Swedbank Annual and Sustainability Report 2019
SEKm
Note
2019
2018
Operating activities
Operating profit
24 420
26 552
Adjustments for non-cash items in operating activities
G48
4 952
–2 098
Taxes paid
–5 981
–6 531
Increase (–) / decrease (+) in loans to credit institution
–9 130
–5 257
Increase (–) / decrease (+) in loans to the public
–27 282
–86 339
Increase (–) / decrease (+) in holdings of securities for trading
–43 187
6 720
Increase (+) / decrease (–) in deposits and borrowings from the public including retail bonds
33 488
56 594
Increase (+) / decrease (–) in amounts owed to credit institutions
12 249
–12 167
Increase (–) / decrease (+) in other assets
–678
15 946
Increase (+) / decrease (–) in other liabilities
8 556
33 714
Cash flow from operating activities
–2 593
27 134
Investing activities
Business disposals
52
Acquisitions of and contributions to associates and joint ventures
–81
Disposal of shares in associates and joint ventures
184
277
Dividend from associates and joint ventures
529
354
Acquisition of other fixed assets and strategic financial assets
–224
–15 321
Disposals of/matured other fixed assets and strategic financial assets
535
16 361
Cash flow from investing activities
995
1 671
Financing activities
Issuance of interest-bearing securities
G3.3
148 250
116 506
Redemption of interest-bearing securities
G3.3
–94 929
–152 614
Issuance of commercial paper
G3.3
483 569
1 000 665
Redemption of commercial paper
G3.3
–487 865
–1 018 910
Amortisation of lease liabilities
G3.3
–718
Dividends paid
–15 893
–14 522
Cash flow from financing activities
32 414
–68 875
Cash flow for the year
30 816
–40 070
Cash and cash equivalents at the beginning of the year
163 161
200 371
Cash flow for the year
30 816
–40 070
Exchange rate differences on cash and cash equivalents
1 309
2 860
Cash and cash equivalents at end of the year
195 286
163 161
Statement of cash flow, Group
Comments on the consolidated cash flow statement
The cash flow statement shows receipts and payments during the year as well as cash 
and cash equivalents at the beginning and end of the year. The cash flow statement is 
reported using the indirect method and is divided into payments from operating activi-
ties, investing activities and financing activities. 
Operating activities
Cash flow from operating activities is based on operating profit for the year. Adjust-
ments are made for items not included in cash flow from operating activities. Changes 
in assets and liabilities from operating activities consist of items which are part of 
normal business activities, such as loans to and deposits and borrowings from the 
public and credit institutions, and which are not attributable to investing and financing 
activities. Cash flow includes interest receipts of SEK 36 372m (33 899) and interest 
payments of SEK 9 809m (7 435). Capitalised interest is included.
Investing activities
Investing activities consist of purchases and sales of businesses and other fixed  
assets such as owner-occupied properties and equipment, and strategic financial assets. 
Strategic financial assets refer to holdings of interest-bearing securities held to maturity 
and strategic shareholdings in companies other than subsidiaries and associates. 
 On November 4, 2019, the associated company Babs Paylink AB was sold. Swedbank 
received a cash payment of SEK 113m. The capital gain was SEK 25m.
On August 1, 2019, 11 percentage points of the subsidiary Ölands Bank AB was sold. 
Swedbank AB:s ownership subsequently amounts to 49 per cent, and as a result the 
company is accounted for as an associated company according to the equity method 
from the date of disposal. Swedbank received a cash payment of SEK 52m. The capital 
gain was SEK 40m.
Contributions were provided to the joint ventures Nordic KYC Utility AB of SEK 57m 
and to P27 Nordic Payments Platform AB of SEK 24m.
On June 29, 2018, the associated company UC AB was sold. Swedbank received a cash 
payment of SEK 206 m. In connection with the divestment, Swedbank also received 
shares of 7.4 per cent of the Finnish credit information company Asiakastieto Group Plc, 
which corresponded to a value of SEK 502m. The recognised capital gain was SEK 677m. 
On January 9, 2017, the shares in the associate Hemnet AB were sold. Swedbank 
received parts of the cash payment, SEK 71m in 2019 as well as in 2018. 
On March 23, 2018, the Group acquired 6 per cent of shares in Meniga Ltd for SEK 
31m and, on December 19, 14 per cent of shares in Asteria AB for SEK 6m. In addition, 
on December 7, the investment in Minna Technolgies AB (Mina Tjänster AB) was 
acquired for SEK 10m.
Cash and cash equivalents
Cash and cash equivalents consist of cash and balances with central banks, which
correspond to the balance sheet item Cash and balances with central banks. Cash and
cash equivalents in the statement of cash flow are defined according to IAS 7 and do 
not correspond to what the Group considers liquidity. What the Group considers to be 
liquidity and the Group’s risk management of liquidity risks are described in not G 3.3.

59
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The consolidated financial statements and the annual report for Swedbank AB (publ) 
for the financial year 2019 were approved by the Board of Directors and the CEO for 
publication on 19 February 2020. The parent company, Swedbank AB, maintains its 
registered office in Stockholm at the following address: Landsvägen 40, 172 63 Stock-
holm, Sweden. The company’s shares are traded on the NASDAQ OMX Nordic Exchange 
in Stockholm in the Nordic Large Cap segment. The Group offers financial services and 
products in its home markets of Sweden, Estonia, Latvia and Lithuania. The operations 
are described more extensively in the Board of Directors’ report.
The consolidated financial statements and the annual report will ultimately be 
adopted by the parent company’s Annual General Meeting on 26 March 2020.
CONTENTS
1
BASIS OF ACCOUNTING 
59
2
CHANGES IN ACCOUNTING POLICIES 
59
3
SIGNIFICANT ACCOUNTING POLICIES 
60
3.1
Presentation of financial statements (IAS 1)
60
3.2
Consolidated financial statements (IFRS 3, IFRS 10) 
60
3.3
Assets and liabilities in foreign currency (IAS 21) 
60
3.4
Financial instruments (IAS 32, IFRS 9, IAS 39) 
60
3.5
Leases (IFRS 16, IAS 17)
63
3.6
Associates and joint ventures (IAS 28, IFRS 11) 
64
3.7
Intangible assets (IAS 38) 
64
3.8
Tangible assets (IAS 2, IAS 16) 
64
3.9
Provisions (IAS 37)
64
3.10
Pensions (IAS 19) 
64
3.11
Insurance contracts (IFRS 4) 
64
3.12
Net commission (IFRS 15) 
64
3.13
Other income
65
3.14
Share-based payment (IFRS 2) 
65
3.15
Impairment (IAS 36) 
63
3.16
Tax (IAS 12) 
65
3.17
Cash and cash equivalents (IAS 7) 
65
3.18
Operating segments (IFRS 8) 
65
4
CRITICAL ACCOUNTING JUDGMENTS AND ESTIMATES 
65
5
NEW STANDARDS AND INTERPRETATIONS
66
5.1
Standards issued but not yet adopted
66
 
Notes
All amounts in the notes are in millions of Swedish kronor (SEKm) and represent carrying amounts unless indicated otherwise. Figures in parentheses refer to the previous year.
1 BASIS OF ACCOUNTING
The financial reports and the consolidated financial statements are prepared in accord-
ance with the International Financial Reporting Standards (IFRS), as adopted by the EU, 
and interpretations of them. The standards are issued by the International Accounting 
Standards Board (IASB) and the interpretations by the IFRS Interpretations Committee. 
The standards and interpretations become mandatory for Swedbank’s consolidated 
financial statements concurrently with their approval by the EU. Complete financial 
reports refer to:
• balance sheet as at the end of the period,
• statement of comprehensive income for the period,
• statement of changes in equity for the period,
• cash flow statement for the period, and
• notes, comprising a summary of significant accounting policies and other  
explanatory information.
The consolidated financial statements are also prepared according to the Swedish 
Financial Reporting Board’s recommendation RFR 1 Complementary accounting rules 
for groups and pronouncements, certain complementary rules in the Annual Accounts 
Act for Credit Institutions and Securities Companies and the regulations and general 
advice of the Swedish Financial Supervisory Authority, FFFS 2008:25.
The financial statements are prepared using several measurement bases. Financial 
assets and liabilities are measured at amortised cost, except for certain financial assets 
and liabilities (including derivative instruments), which are measured at fair value. The 
carrying amounts of financial assets and liabilities subject to hedge accounting at fair 
value are adjusted for changes in fair value attributable to the hedged risk. Non-mon-
etary items are measured on a historical cost basis. Pension liabilities are measured at 
their present value. 
The financial statements are presented in Swedish kronor and all figures are rounded 
to millions of kronor (SEKm) unless indicated otherwise.
2 CHANGES IN ACCOUNTING POLICIES
The following adoption of accounting pronouncements and changes are applied in the 
financial reports during 2019.
Leases (IFRS 16) 
On 1 January 2019 the Group adopted IFRS 16 Leases. The standard replaced IAS 17 
Leases and sets out the principles for the recognition, measurement, presentation and 
disclosure of leases. The new standard significantly changes the way lessee entities 
should account for leases. For lessees, the standard eliminates the distinction between 
finance and operating leases and requires entities to recognise right-of-use (RoU) 
assets and lease liabilities arising from most leases on the balance sheet. In the income 
statement general administrative expenses are replaced by depreciation of the RoU 
asset and interest expense related to the lease liability. In the cash flow statement pay-
ments for the principal portion of the lease liability are presented within financing ac-
tivities and payments for the interest portion are presented within operating activities.
The Group accounted for the transition to IFRS 16 requirements according to the 
modified retrospective approach, which means adoption from 1 January 2019 with no 
restatement of the comparative periods. For all leases classified as operating leases 
under IAS 17 and where the Group acts as lessee, a lease liability and a RoU asset 
are recognised in the balance sheet. The lease liabilities were at transition to IFRS 16 
measured at the present value of the remaining lease payments, discounted using 
the incremental borrowing rate at the date of initial application, 1 January 2019. The 
RoU assets were initially recognised at the value of the corresponding lease liability, 
adjusted for prepaid lease payments. 
The lease liability is initially measured as the present value of lease payments that 
are not paid at the commencement date. Over time, the liability will increase with 
interest expense accruals and decrease with lease payments. The RoU asset is initially 
measured at cost i.e. the same amount as the initial measurement of the lease liability 
plus certain other costs, for example lease payments made at or before the commence-
ment date. The RoU asset is thereafter depreciated over the lease term. The lease 
payments are discounted using the incremental borrowing rate. The Group applies the 
exemptions afforded by the standard regarding short-term leases and leases for which 
the underlying asset is of low value. Expenses related to these lease agreements are 
recognised as Other expenses. After the commencement date, the carrying amount of 
the lease liability is remeasured to reflect any reassessment or modification of a lease 
agreement. The remeasurement of the lease liability is adjusted against the RoU asset. 
Gains or losses relating to modifications are recognised in the income statement.
G1 Corporate information
G2 Accounting policies

60
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Where Swedbank acts as a lessor, the requirements remain largely unchanged and the 
distinction between finance and operating leases is maintained. The adoption impacts 
are disclosed in note G57.
Amendments to IFRS 9, IAS 39, IFRS 7due to the  
Interest Rate Benchmark Reform
On 31 December 2019, the Group adopted the Amendments to IFRS 9, IAS 39 and IFRS 
7 due to the Interest Rate Benchmark Reform. These Amendments were approved 
by the EU on 15 January 2020, with early application permitted. The amendments 
provide certain temporary relief from the hedge accounting requirements in connection 
with the Reform. In particular, the LIBOR-based interest rates related to the Group’s 
hedged items and hedging instruments are assumed to not change as a result of the 
Reform. This has the effect that the Reform will not generally cause hedge accounting 
relationships to be terminated. The Group has applied the amendments retrospec-
tively to hedging relationship that existed at the start of the reporting period or were 
designated thereafter. The adoption did not have any significant impact on the Group’s 
financial position, results or cash flows. 
Other changes in IFRS and Swedish regulations
Other new or amended IFRSs or interpretations or Swedish regulations which have 
been adopted during 2019 have had no or immaterial impact on the Group’s financial 
position, results, cash flows or disclosures.
3 SIGNIFICANT ACCOUNTING POLICIES
3.1 Presentation of financial statements (IAS 1)
Financial statements provide a structured representation of a company’s financial 
position and financial results. The purpose is to provide information on the company’s 
financial position, financial results and cash flows useful in connection with financial 
decisions. The financial statements also indicate the results of executive manage-
ment’s administration of the resources entrusted to them. Complete financial state-
ments consist of a balance sheet, statement of comprehensive income, statement of 
changes in equity, cash flow statement and notes. Swedbank presents the statement 
of comprehensive income in the form of two statements. A separate income state-
ment contains all revenue and expense items, provided that a special IFRS does not 
require or allow otherwise. Other revenue and expense items are recognised in other 
comprehensive income. The statement of comprehensive income contains the profit or 
loss recognised in the income statement as well as the components included in other 
comprehensive income.
Changed presentation of net interest income
From 2019 the Group presents interest income on financial assets at amortised cost on 
a separate row in the income statement. Comparative figures have been restated, see 
note G58. The Group presents negative yield on financial assets and financial liabilities, 
which were previously presented in the income statement, in note G8.
3.2 Consolidated financial statements (IFRS 3, IFRS 10)
The consolidated financial statements comprise the parent company and those entities 
(including special purpose vehicles) over which the parent company has control. The 
parent company has control when it has power and is capable of managing the relevant 
activities of another entity, is exposed to variable returns and is able to use its power 
to affect those returns. These entities, subsidiaries, are included in the consolidated 
financial statements in accordance with the acquisition method from the day that 
control is obtained and are excluded from the day that control ceases. According to the 
acquisition method, the acquired entity’s identifiable assets, liabilities and contingent 
liabilities that satisfy the recognition criteria are recognised and measured at fair value 
upon acquisition. The surplus between the cost of the business combination, trans-
ferred consideration measured at fair value on the acquisition date and the fair value 
of the acquired share of identifiable assets, liabilities and reported contingent liabilities 
is recognised as goodwill. If the amount is less than the fair value of the acquired 
company’s net assets, the difference is recognised directly in the income statement as 
bargain purchase within Other income. The transferred consideration (purchase price) 
includes the fair value of transferred assets, liabilities and shares which, in applicable 
cases, have been issued by the Group as well as the fair value of all assets or liabilities 
that are the result of an agreement on contingent consideration. Acquisition-related 
costs are recognised when they arise. For each acquisition, the Group determines 
whether all non-controlling interests in the acquired company should be recognised at 
fair value or at the non-controlling interest’s proportionate share of the acquired sub-
sidiary’s net assets. A subsidiary’s contribution to equity includes only the equity that 
arises between acquisition and disposal. All intra-Group transactions and intra-Group 
gains are eliminated.
Transactions with non-controlling owners are recognised as equity transactions 
with the Group’s shareholders in their capacity as owners. In the case of acquisitions 
of interests from non-controlling owners, the difference between the price paid for the 
interests and the acquired share of the carrying amount of the subsidiary’s net assets 
is recognised in equity attributable to the parent company’s shareholders as retained 
earnings. The carrying amounts of holdings with and without control are adjusted to 
reflect the changes in their relative holdings. Gains and losses on the sale of interests 
to non-controlling owners are also recognised in equity. If, following a sale of its inter-
ests, the Group no longer has control, its remaining holding is re-measured at fair value 
and the change is recognised in its entirety in the income statement. This fair value 
subsequently serves as the cost of the remaining holding in the former subsidiary for 
reporting purposes. All amounts related to the divested entity that were previously 
recognised in other comprehensive income are recognised as if the Group directly 
divested the related assets or liabilities, due to which amounts previously recognised 
in other comprehensive income may be reclassified as profit or loss. If the interest in 
an associate is reduced but a significant influence is retained, the proportionate share 
of the amount previously recognised in other comprehensive income is reclassified to 
profit or loss.
3.3 Assets and liabilities in foreign currencies (IAS 21)
The consolidated financial statements are presented in SEK, which is also the parent 
company’s functional currency and presentation currency. An entity’s functional 
currency is the currency in which the entity primarily generates and expends cash. 
Each entity within the Group determines its own functional currency according to its 
primary economic environment. Transactions in a currency other than the functional 
currency (foreign currency) are initially recorded at the exchange rate prevailing at the 
transaction date. Monetary assets and liabilities in foreign currency and non-monetary 
assets in foreign currency measured at fair value are translated at the rates prevailing 
at the closing date. All gains and losses on the translation of monetary items, and non-
monetary items measured at fair value are recognised in the income statement in Net 
gains and losses on financial items as changes in exchange rates. Assets and liabilities 
in subsidiaries and associates with a functional currency other than SEK are translated 
to the presentation currency at the closing date exchange rate. The income statement 
is translated at the exchange rate for each transaction. For practical purposes, the 
average rate for the period is generally used. Exchange rate differences that arise are 
recognised in other comprehensive income. As a result, exchange rate differences at-
tributable to currency hedges of investments in foreign operations are also recognised 
in other comprehensive income, taking into account deferred tax. This is applied 
when the requirements for hedge accounting are met. Ineffectiveness in hedges is 
recognised directly in the income statement in Net gains and losses on financial items. 
When subsidiaries and associates are divested, cumulative translation differences and 
exchange rate differences are recognised in the income statement.
3.4 Financial instruments (IAS 32, IFRS 9, IAS 39)
3.4.1 General
Financial instruments represent the largest part of the Group’s balance sheet. A finan-
cial instrument is any contract that gives rise to a financial asset in one entity and a 
financial liability or equity instrument in another entity. Cash and contractual rights 
to receive cash are examples of financial assets, whereas a contractual obligation to 
deliver cash or another financial asset is an example of a financial liability. A derivative 
is a financial instrument that is distinguished by the fact that its value changes in 
response to the change in a specified variable, such as foreign exchange rates, interest 
rates or share prices, it requires little or no initial net investment and it is settled on 
a future date. 
Financial instruments are classified on relevant lines of the balance sheet depending 
on the nature of the instrument and the counterparty. If a financial instrument does 
not have a specific counterparty or it is listed on the market, the instrument is clas-
sified on the balance sheet as securities. Financial liabilities where the creditor has a 
lower priority than others are classified on the balance sheet as Subordinated liabilities. 
Senior non-preferred liabilities that fulfil the minimum requirements for own funds and 
eligible liabilities (MREL) are presented on a separate row in the balance sheet.
Recognition and derecognition
Financial assets and liabilities are recognised on the balance sheet on the trade date, 
which is the date when the Group becomes a party to the instrument’s contractual pro-
visions, with the exception of financial assets measured at amortised cost, which are 
recognised on the settlement date. Financial assets are derecognised when the right to 
obtain the cash flows from a financial instrument has expired or has been transferred 
to another party. 
When a financial asset is modified, the Group assesses whether the modification 
results in derecognition. A financial asset is considered modified where the contrac-
tual terms governing the cash flows are amended versus the original agreement, for 
example due to forbearance measures being applied, changes in market conditions, 
customer retention reasons or other factors unrelated to the credit deterioration of a 
borrower. Modified financial assets are derecognised from the balance sheet and a new 
loan recognised where an agreement is cancelled and replaced with a new agreement 
on substantially different terms or where the terms of an existing agreement are 
substantially modified. Modifications due to financial difficulties, including forbearance 
measures, are not considered substantial on their own.

61
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Financial liabilities are derecognised when the obligation in the agreement has been 
discharged, cancelled or expired.
Embedded derivatives
An embedded derivative is a component of a hybrid instrument that also includes a 
non-derivative host contract, with the effect such that some of the cash flows vary 
in a manner similar to a stand-alone derivative. Derivatives embedded in financial li-
abilities, financial assets not in scope of IFRS 9, such as lease receivables and insurance 
contracts, or non-financial items are treated as separate derivatives when their risks 
and characteristics are not closely related to those of the host contracts and the host 
contracts are not measured at fair value through profit or loss. Financial assets in the 
scope of IFRS 9 are not assessed for the existence of embedded derivatives, but rather 
the entire contract, including any features which alter the contractual cash flows, is 
assessed for classification.
Repurchase transactions
A genuine repurchase transaction (repo) is defined as a contract where the parties 
have agreed on the sale of securities and the subsequent repurchase of corresponding 
assets at a predetermined price. In a repo, the sold security remains on the balance 
sheet, since the Group is exposed to the risk that the security will fluctuate in value. 
The payment received is recognised as a financial liability on the balance sheet based 
on the respective counterparty. The securities sold are also recognised as pledged as-
sets. The proceeds paid for acquired securities, so-called reverse repos, are recognised 
on the balance sheet as a loan to the selling party.
Securities loans
Securities that have been lent remain on the balance sheet, since the Group remains 
exposed to the risk that they will fluctuate in value. Securities that have been lent 
are recognised on the trade date as assets pledged, while borrowed securities are not 
reported as assets. Securities that are lent are measured in the same way as other 
security holdings of the same type. In cases where borrowed securities are sold, the 
so-called short-selling, an amount corresponding to the fair value of the securities is 
recognised within Other liabilities on the balance sheet.
Offsetting
Financial assets and financial liabilities are offset and recognised net in the balance 
sheet if there is a legal right of set-off both in the normal course of business and in the 
event of bankruptcy, and if the intent is to settle the items with a net amount or to 
simultaneously realise the asset and settle the liability.
Net interest income
Interest income on financial assets and interest expense on financial liabilities include 
interest payments received or paid, change in accrued interest and amortisation of 
any difference between the initial amount and the maturity amount during the period, 
which produces a constant rate of return over the instrument’s life, referred to as the 
effective interest rate. The effective interest rate is the rate that discounts future cash 
flows to the gross carrying amount of a financial asset or to the amortised cost of a 
financial liability, taking into account transaction costs, premiums or discounts and fees 
paid or received that are an integral part of the return.
Interest income on financial assets is generally calculated by applying the effective 
interest rate to the gross carrying amount, with two exceptions. Where financial 
assets measured at amortised cost have become credit-impaired subsequent to initial 
recognition (Stage 3 financial assets), interest income is calculated by applying the 
effective interest rate to the amortised cost, which is the gross carrying amount less 
credit impairment provisions. If such financial assets are no longer credit-impaired, the 
calculation of interest income reverts back to the gross carrying amount basis. Where 
financial assets measured at amortised cost are credit-impaired on initial recognition, 
interest income is calculated by applying the credit-adjusted effective interest rate to 
the amortised cost until the financial asset is derecognised from the balance sheet. The 
credit-adjusted effective interest rate is calculated based on the amortised cost of the 
financial asset rather than the gross carrying amount and incorporates the impact of 
expected credit losses in estimated future cash flows. 
Interest expense is calculated by applying the effective interest rate to the amor-
tised cost of financial liabilities.
Interest income and interest expense on financial instruments which are held 
for trading financial instruments and related interests within the LC&I segment are 
excluded from Net interest income and reported as Net gains and losses on financial 
items to better reflect the character of the business.
The Group holds some financial assets and liabilities at amortised cost with negative 
yield, which are presented in note G8.
3.4.2 Classification and measurement
Financial assets are classified as measured at either amortised cost or fair value 
through profit or loss, based on the business model for managing the assets and the 
asset’s contractual terms. The Group does not have any financial assets classified as 
fair value through other comprehensive income (managed under a hold to collect and 
sell business model).
The business model reflects how the Group manages portfolios of financial assets 
in order to generate cash flows. The factors considered in determining the business 
model for a portfolio of financial assets include past experience on how the cash flows 
have been collected, how the financial assets’ performance is evaluated and reported 
to management, how risks are assessed and managed and how compensation is linked 
to performance. 
The Group assesses the contractual terms of financial assets to identify whether 
the contractual cash flows are solely payments of principal and interest. In making this 
assessment, the Group considers whether the contractual cash flows are consistent 
with a basic lending arrangement. Principal is defined as the fair value of a financial as-
set on initial recognition. Interest is defined as the compensation for the time value of 
money, credit risk, other basic lending risks and a profit margin that is consistent with a 
basic lending arrangement. Where the contractual terms introduce exposure to risk or 
volatility that are inconsistent with a basic lending arrangement, the related financial 
asset is not compliant with the solely payments of principal and interest criterion. 
Financial liabilities are classified as measured at either amortised cost or fair value 
through profit or loss.
Financial assets at amortised cost
Financial assets which are debt instruments are classified as measured at amortised 
cost if they are held within a business model with the objective to hold the financial 
assets in order to collect contractual cash flows and if the contractual terms of the 
financial asset give rise to cash flows that are solely payments of principal and interest 
on the principal amount outstanding.
Financial assets at amortised cost are initially recognised at fair value including 
transaction costs that are directly attributable to the acquisition of financial assets and 
subsequently measured at amortised cost. Fair value is normally the amount advanced, 
including fees and commissions. The amortised cost is the amount at which the finan-
cial asset is measured at initial recognition minus repayments of principal, plus accrued 
interest, plus or minus the cumulative amortisation using the effective interest method 
of any difference between that initial amount and the maturity amount and adjusted 
for any credit impairment provisions. Accounting policies regarding credit impairment 
provisions are disclosed in section 3.4.3.
Financial assets at fair value through profit or loss
Financial assets classified as measured at fair value through profit or loss are com-
prised of financial assets mandatorily measured at fair value through profit or loss.  
The mandatory classification includes:
• Debt instruments that are held in a business model other than held to collect contrac-
tual cash flows, including those that are held for trading and those that are managed 
and whose performance is evaluated on a fair value basis 
• Debt instruments with contractual cash flows that are not solely payments of 
principal and interest
• Equity instruments
• Derivative assets that are not designated for hedge accounting
Financial instruments held for trading are acquired for the purpose of selling in the 
near term or are part of a portfolio for which there is evidence of a pattern of short-
term profit taking. 
Financial assets at fair value through profit or loss are initially recognised and 
subsequently measured at fair value. Transaction costs that are directly attributable 
to the acquisition of financial assets at fair value through profit or loss are expensed 
in profit or loss. The fair value of financial instruments is determined based on quoted 
prices in active markets. When such market prices are not available, generally accepted 
valuation models such as discounted future cash flows are used. The valuation models 
are based on observable market data, such as quoted prices in active markets for similar 
instruments or quoted prices for identical instruments in inactive markets.
Differences that arise at initial recognition between the transaction price and 
the fair value according to a valuation model, so-called ‘day 1-profits or losses’, are 
recognised in the income statement only when the valuation model is based entirely 
on observable market data. 
Changes in fair value and share dividends are recognised through profit or loss in Net 
gains and losses on financial items. Changes in fair value due to changes in exchange 
rates are recognised as changes in exchange rates in the same profit or loss line. 
Financial liabilities at amortised cost
Financial liabilities classified as measured at amortised cost include those that are not 
classified at fair value through profit or loss. Such financial liabilities are recognised on 
the trade date at fair value, which is typically the amount borrowed including transac-
tion costs that are directly attributable to the issuance, and subsequently measured at 
amortised cost using the effective interest method. The amortised cost measurement 
is analogous to that which is applied to financial assets, however it does not include 
adjustments for credit impairment provisions

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Financial liabilities at fair value through profit or loss
Financial liabilities classified as measured at fair value through profit or loss are 
comprised of:
• Financial liabilities held for trading
• Derivatives that are not designated for hedge accounting
• Financial liabilities designated at fair value through profit or loss at initial recognition.
The Group applies the option to irrevocably designate financial liabilities at fair value 
through profit or loss for:
• Investment contract liabilities in insurance operations, where the customer bears the 
investment risk and the corresponding financial assets are measured at fair value 
through profit or loss. The contractual amount due to investors is determined on the 
basis of the fair value of the corresponding financial assets.
• Debt securities in issue, which have fixed contractual interest rates, and for which 
the portfolio’s aggregate interest rate risk is essentially eliminated with derivatives 
that are measured at fair value through profit or loss.
Financial liabilities at fair value through profit or loss are initially recognised at fair 
value on the trade date and subsequently measured at fair value. The determination of 
fair value and the accounting for gains or losses on initial recognition are analogous to 
financial assets at fair value through profit or loss. Changes in fair value are recognised 
in profit or loss within Net gains and losses on financial items, with the exception of 
changes in fair value due to changes in the Group’s own credit risk. Such changes are 
presented in other comprehensive income, with no subsequent reclassification to the 
income statement.
Reclassification of financial assets and liabilities
The Group does not reclassify its financial assets unless the business model under 
which the financial assets are held changes, which is expected to be very exceptional. 
Financial liabilities are never reclassified.
3.4.3 Credit impairment
Credit impairment provisions are recognised on the following financial instruments: 
financial assets that are measured at amortised cost, lease receivables, irrevocable 
loan commitments issued, and financial guarantee contracts issued. Credit impairment 
provisions are measured according to an expected credit loss model and reflect an 
unbiased and probability-weighted amount that is determined by evaluating a range 
of possible outcomes and considering all reasonable and supportable information avail-
able without undue cost or effort at the reporting date. Such provisions are measured 
according to whether there has been a significant increase in credit risk since initial 
recognition of an instrument.
• Stage 1 includes financial instruments that have not experienced a significant 
increase in credit risk since initial recognition and those within the Group’s policy to 
assess for low credit risk at the reporting date, which is defined as having an invest-
ment grade equivalent rating.
• Stage 2 includes financial instruments that have deteriorated significantly in credit 
quality since the initial recognition but for which there is no objective evidence of 
credit impairment.
• Stage 3 includes financial instruments which are credit-impaired and for which there 
is objective evidence of impairment.
12-month expected credit losses are recognised on instruments in Stage 1 and lifetime 
expected credit losses are recognised on instruments in Stage 2 and Stage 3. The 
lifetime expected credit losses represent losses from all possible default events over 
the remaining life of the financial instrument. The 12-month expected credit losses 
are losses resulting from default events that are possible within 12 months after the 
reporting date, and consequently represent only a portion of the lifetime expected 
credit losses. 
Measurement of expected credit losses
Expected credit losses are measured for each individual exposure as the discounted prod-
uct of a probability of default (PD), an exposure at default (EAD), and a loss given default 
(LGD). The PD represents the likelihood that a borrower will default on its obligation. 
The EAD is an expected exposure at the time of default, taking into account scheduled 
repayments of principal and interest, and expected further drawdowns on irrevocable 
facilities. The LGD represents the expected loss on a defaulted exposure, taking into ac-
count such factors as counterparty characteristics, collateral and product type.
Expected credit losses are determined by projecting the PD, LGD and EAD for each 
future month over the expected lifetime of an exposure. The three parameters are mul-
tiplied together and adjusted for the probability of survival, or the likelihood that the 
exposure has not been prepaid or has not defaulted in an earlier month. This effectively 
calculates monthly expected credit losses, which are discounted back to the reporting 
date using the original effective interest rate and summed. The sum of all months over 
the remaining expected lifetime results in the lifetime expected credit losses and the 
sum of the next 12 months results in the 12-month expected credit losses.
When estimating expected credit losses, the Group considers at least three scenarios 
(a base case, an upside and a downside), represented by relevant macroeconomic vari-
ables, such as GDP, house prices, and unemployment rates. The risk parameters used to 
estimate expected credit losses incorporate the effects of the macroeconomic forecasts 
and associated expected probabilities, to measure an unbiased probability weighted 
average. In cases where the impacts of relevant factors are not captured in the mod-
elled expected credit loss results, the Group uses its experienced credit judgement to 
incorporate such effects.
The Group assesses material credit-impaired exposures individually and without the 
use of modelled inputs. The credit impairment provisions for these exposures are es-
tablished using the discounted expected cash flows and considering a minimum of two 
possible outcomes, one of which is a loss outcome. The possible outcomes consider 
both macroeconomic and non-macroeconomic (borrower-specific) scenarios.
Definition of default and credit-impaired assets
Default is an input to the PD, which affects both the identification of a significant 
increase in credit risk and the measurement of the expected credit losses. Financial 
assets classified as credit-impaired are included in Stage 3.
The Group’s IFRS 9 definitions of default and credit-impaired assets are aligned to 
the Group’s regulatory definition of default, as this is what is used for risk manage-
ment purposes. Default and credit-impairment are triggered when one of the following 
occurs: an exposure is more than 90 days past due, an exposure is declared in bank-
ruptcy or similar order, a non-performing forbearance measure is applied towards the 
borrower or there is an assessment that the borrower is unlikely to pay its obligations 
as agreed. When assessing whether a borrower is unlikely to pay its obligations, the 
Group takes into account both qualitative and quantitative factors including but not 
limited to the overdue status or non-payment on other obligations of the same bor-
rower, expected bankruptcy and breaches of financial covenants. The Group has elected 
to rebut the presumption that instruments which are 90 days past due are in default 
or credit-impaired for instruments in the sovereign and financial institutions exposure 
classes only, due to that default is triggered based on manual decisions. 
An instrument is no longer considered to be in default or credit-impaired when it no 
longer meets any of the default criteria for at least three consecutive months. Where 
a loan is in default due to a non-performing forbearance measure having been applied, 
longer probation periods are applied. 
Determining a significant increase in credit risk since initial recognition
The Group assesses changes in credit risk using a combination of individual and 
colletive information and reflects significant increases in credit risk at the individual 
financial instrument level. For financial instruments with an initial recognition date of 
1 January 2018 or later, the primary indicator used to assess changes in credit risk is 
changes in the forward-looking lifetime probability of default since initial recognition, 
which incorporates the effects of past and current forecasted economic conditions. 
Changes in Swedbank internal credit ratings since initial recognition, where each rating 
corresponds to a 12-month probability of default, is used as a secondary indicator of 
significant increase in credit risk. The estimation of the forward-looking lifetime prob-
abilities of default for initial recognition dates prior to the adoption of IFRS 9 would not 
have been possible without the use of hindsight and would have required undue cost 
and effort. Consequently, for those instruments with an initial recognition date prior to 
1 January 2018, changes in Swedbank internal credit ratings since initial recognition is 
used as the primary indicator.
Qualitative indicators are also considered in the stage allocation assessment; for 
example whether a borrower is monitored on the watch list or has been extended 
performing forbearance measures. Furthermore, a significant increase in credit risk is 
considered to have occurred for all financial instruments which are 30 days past due. 
The Group considers that certain financial instruments with low credit risk at the re-
porting date, have not experienced a significant increase in credit risk. The Group applies 
this policy to financial instruments issued to sovereign and financial institutions only. 
A financial instrument is no longer considered to have experienced a significant 
increase in credit risk when all indicators are no longer breached.
Expected lifetime
The lifetime of a financial instrument is relevant for both the assessment of significant 
increase in credit risk, which considers changes in the probability of default over 
the expected lifetime, and the measurement of lifetime expected credit losses. The 
expected lifetime is generally limited by the maximum contractual period over which 
the Group is exposed to credit risk, even if a longer period is consistent with business 
practice. All contractual terms are considered when determining the expected lifetime, 
including prepayment options and extension and rollover options that are binding to 
the Group. For the mortgage portfolio, the Group uses a behavioural life model which 
predicts the likelihood that an exposure will still be open and not defaulted at any point 
during its remaining life (accounting for the probability of early repayment).
The only exception to this general principle applies for credit cards, where the 
expected lifetime is estimated based on the period over which the Group is exposed 
to credit risk and where the credit losses would not be mitigated by risk management

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Swedbank Annual and Sustainability Report 2019
actions. This so-called behavioural life is determined using product-specific historical 
data and ranges up to 10 years.
Modifications
Where a loan is modified but is not derecognised, significant increases in credit risk 
continue to be assessed for impairment purposes as compared to the initial recognition 
credit risk. Modifications do not automatically lead to a decrease in credit risk and all 
quantitative and qualitative indicators will continue to be assessed. Further to this, a 
modification gain or loss is recognised in the income statement within Credit impair-
ments, which represents the difference in the present value of the contractual cash 
flows, discounted at the original effective interest rate.
Where a loan is modified and derecognised, the date of the modification is the 
initial recognition date of the new loan for credit impairment purposes, including the 
assessment of significant increases in credit risk. Where the new loan is considered 
to be credit-impaired on initial recognition, it is classified as a purchased or originated 
credit-impaired asset and therefore lifetime expected credit losses are calculated until 
the loan is repaid or written-off.
Purchased or originated credit impaired assets
Instruments which are credit impaired on initial recognition are accounted for as 
purchased or originated credit-impaired assets. The expected credit losses for such 
assets are always measured at an amount equal to the lifetime expected credit losses 
However,the expected credit loss on initial recognition are considered as part of the 
gross carrying amount and therefore the recognised credit impairment provision 
represents only the changes in the lifetime expected credit losses from the initial rec-
ognition date. Favourable changes in the lifetime expected credit losses are recognised 
as an impairment gain, even if those changes are more than the amount previously 
recognised as credit impairments.
Presentation of credit impairments
For financial assets measured at amortised cost, credit impairment provisions are 
presented in the balance sheet as a reduction of the gross carrying amount of the 
assets. For loan commitments and financial guarantee contracts, such provisions are 
presented as a liability within Other liabilities and provisions. Where a financial instru-
ment includes both a loan and a loan commitment component, such as revolving credit 
facilities, the Group recognises the credit impairment provisions separately for the loan 
and the loan commitment components.
A write-off reduces the gross carrying amount of a financial asset. Credit impairment 
losses and write-offs are presented as Credit impairments in the income statement. 
Write-offs are recognised when the amount of loss is ultimately determined and rep-
resent the amount before the utilisation of any previous provisions. Any subsequent 
recoveries of write-offs or impairment provisions are recognised as gains within Credit 
impairments.
3.4.4 Hedge accounting (IFRS 9, IAS 39)
Fair value hedges (IFRS 9)
Hedge accounting at fair value is applied in certain cases when the interest rate 
exposure in a recognised financial asset or financial liability is hedged with derivatives. 
Where hedge accounting is applied, the hedged risk in the individual hedged item is 
also measured at fair value. The value of the hedged risk in an individual financial asset 
or financial liability is recognised on the same line in the balance sheet as the financial 
instrument. Both the change in the value of the derivative hedging instruments and 
the change in the value of the hedged risk are recognised through profit or loss in Net 
gains and losses on financial items.
In order to apply hedge accounting, the hedge relationship has been formally identi-
fied and documented. The hedge’s effectiveness is proven to remain prospectively 
effective. There is an economic relationship between the hedged item and the hedging 
instrument, and the effect of credit risk does not dominate the value changes resulting 
from that relationship. Also, the hedge ratio is the same as that resulting from the 
quantity of both the hedged item and the hedging instrument actually used.
Portfolio fair value hedges (IAS 39)
Portfolio hedge accounting at fair value is applied by the Group in certain cases where 
the interest rate exposure in loan portfolios is hedged with derivatives. Where hedge 
accounting is applied, the hedged risk in the hedged portfolio is also measured at fair 
value. The value of the hedged risk in the hedged portfolio is recognised on a separate 
line in the balance sheet as Value change of interest hedged item in portfolio hedge. 
The item is recognised in connection with Loans to the public. Both the change in the 
value of the derivative hedging instruments and the change in the value of the hedged 
risk are recognised through profit or loss in Net gains and losses on financial items.
In order to apply hedge accounting, the hedge relationship has been formally identi-
fied and documented. The hedge’s effectiveness must be measurable in a reliable way 
and must be proven to remain very effective, both prospectively and retrospectively, in 
offsetting changes in the fair value of the hedged risk.
Cash flow hedges (IFRS 9)
Derivative transactions are sometimes entered into to hedge the exposure to varia-
tions in future cash flows resulting from changes in exchange rates. These hedges can 
be recognised as cash flow hedges, whereby the effective portion of the change in the 
value of the derivative hedging instrument, is recognised directly in other comprehen-
sive income. Where the derivative hedging instrument is a cross currency basis swap, 
the Group excludes the foreign currency basis spread from the hedging relationship. 
The changes in fair value of the cross currency basis swap are recognised in other 
comprehensive income; however the changes related to the effective portion of the 
hedge relationship and the foreign currency basis spread component are recognised 
separately in the cash flow hedge reserve and the foreign currency basis reserve, 
respectively. The amounts accumulated in the respective reserves are subsequently re-
classified to profit or loss in the same periods that the hedged future cash flows or the 
foreign currency basis spread cash flows affect profit or loss. Any ineffective portion is 
recognised through profit or loss in Net gains and losses on financial items.
In order to apply hedge accounting, the hedge relationship has been formally identi-
fied and documented. The hedge’s effectiveness is proven to remain prospectively 
effective. There is an economic relationship between the hedged item and the hedging 
instrument, and the effect of credit risk does not dominate the value changes resulting 
from that relationship. Also, the hedge ratio is the same as that resulting from the 
quantity of both the hedged item and the hedging instrument actually used.
Hedging of net investments in foreign operations (IFRS 9)
Hedges of net investments in foreign operations are applied to protect the Group from 
translation differences that arise from the translation of operations in a functional cur-
rency other than the presentation currency. Financial liabilities reported in the foreign 
operation’s functional currency are translated at the closing date exchange rate.The 
portion of the exchange rate result from hedging instruments that are effective is rec-
ognised in other comprehensive income. Any ineffective portion is recognised in profit 
or loss in Net gains and losses on financial items. When a foreign operation is divested, 
the gain or loss from the hedging instrument is reclassified from other comprehensive 
income and recognised in profit or loss.
In order to apply hedge accounting, the hedge relationship has been formally des-
ignated and documented. The hedge’s effectiveness is proven to remain prospectively 
effective.
3.5 Leases (IFRS 16, IAS 17)
3.5A Leases 2019 (IFRS 16)
Lessee
Where the Group act as a lessee, the standard requires that right-of-use (RoU) assets 
and lease liabilities arising from most leases are recognised on the balance sheet. RoU 
assets are presented within Tangible assets and lease liabilities within Other liabilities. 
Depreciation of the RoU assets and interest expenses related to lease liabilities are 
recognised in the income statement. In the cash flow statement payments for the 
principal portion of the lease liability are presented within financing activities and pay-
ments for the interest portion are presented within operating activities.
The lease liability is initially measured as the present value of lease payments that 
are not paid at the commencement date. Over time, the liability will increase with 
interest expense accruals and decrease with lease payments. The RoU asset is initially 
measured at cost i.e. the same amount as the initial measurement of the lease liability 
plus certain other costs, for example lease payments made at or before commencement 
date. The RoU asset is thereafter depreciated over the lease term. Lease payments are 
discounted using the incremental borrowing rate. The Group applies the exemptions 
afforded by the standard regarding short-term leases and leases for which the under-
lying asset is of low value. Expenses related to these lease agreements are recognised 
as Other expenses. After the commencement date, the carrying amount of the lease li-
ability is remeasured to reflect any reassessment or modification of a lease agreement. 
The remeasurement of the lease liability is adjusted against the RoU asset. Gains or 
losses relating to modifications are recognised in the income statement.
Lessor
When acting as a lessor all leases shall be classified as either an operating lease or a 
finance lease. In a finance lease, the economic risks and benefits associated with own-
ership of an asset are essentially transferred from the lessor to the lessee. Operating 
leases are those leases where the lessor bears the economic risks and benefits.
The Group’s leasing operations, as a lessor, consist of finance leases and are 
therefore recognised as loans and receivables. The carrying amount corresponds to 
the present value of future lease payments. The difference between all future lease 
payments, the gross receivable, and the present value of future lease payments consti-
tutes unearned income. Consequently, lease payments received are recognised in part 
in profit or loss as interest income and in part in the balance sheet as instalments, such 
that the financial income corresponds to an even return on the net investment.

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Swedbank Annual and Sustainability Report 2019
3.5B Leases 2018 (IAS 17)
Lessee
The Group acts as the lessee for operating leases, which are those leases where the 
lessor bears the economic risks and benefits. Lease payments where the Group acts 
as lessee are expensed linearly over the lease term.
 
Lessor
Same accounting policies as in 2019, see 3.5A Lessor above.
3.6 Associates and joint ventures (IAS 28, IFRS 11)
Associates and joint ventures are entities where the Group has significant influence 
or joint control, but not sole control, of another entity and are accounted for according 
to the equity method. The equity method means that the participating interests in an 
entity are recognised at cost at the time of acquisition and subsequently adjusted for 
the owned share of the change in the entity’s net assets. Goodwill attributable to the 
associate or the joint venture is included in the carrying amount of the participating 
interests and is not amortised.  
The carrying amount of the participating interests is subsequently compared with 
the recoverable amount of the net investment in the associate or the joint venture to 
determine whether an impairment need exists. The owned share of the associate’s 
or the joint venture’s profit according to the associate’s or the joint venture’s income 
statement, together with any impairment, is recognised on a separate line, Share of 
profit or loss of associates and joint ventures, including taxes related to associates.  
The associates’ and joint venture’s reporting dates and accounting policies conform 
to the Group’s.
3.7 Intangible assets (IAS 38) 
Goodwill
Goodwill acquired through a business combination is initially measured at cost and 
subsequently at cost less accumulated impairment. Goodwill is tested annually for 
impairment or more frequently if events or circumstances indicate a decrease in value. 
In order to test goodwill from business combinations for impairment, it is allocated 
upon acquisition to the cash generating unit or units that are expected to benefit 
from the acquisition. Identified cash generating units correspond to the lowest level 
in the entity for which the goodwill is monitored in the internal control of the entity. 
A cash generating unit is not larger than a business segment in the segment reporting. 
Impairment is determined and recognised when the recoverable amount of the cash 
generating unit to which the goodwill is allocated is lower than the carrying amount. 
Recognised impairment is not reversed.
Other intangible assets
Intangible assets are initially measured at cost and subsequently at cost less ac-
cumulated amortisation and accumulated impairment. The cost of intangible assets in 
a business combination corresponds to fair value upon acquisition. The useful life of an 
intangible asset is considered either finite or indefinite. Intangible assets with a finite 
useful life are amortised over their useful life and tested for impairment when impair-
ment indications exist. Useful lives and amortisation methods are reassessed and when 
needed amended in connection with each closing date. Development expenses are 
capitalised and recognised in the balance sheet when such costs can be calculated in a 
reliable way and for which it is likely that future economic benefits attributable to the 
assets will accrue to the Group. In other cases, development costs are expensed when 
they arise.
3.8 Tangible assets (IAS 2, IAS 16) 
For protection of claims
Tangible assets acquired or recovered to protect claims are recognised as inventory, 
provided they do not relate to investment properties. Inventories are measured at the 
lower of cost and net realisable value. The cost includes all expenses for purchasing, 
manufacturing and to otherwise bring the goods to their current location and condi-
tion. The net realisable value represents the amount that is expected to be realised 
from a sale.
For own use
Tangible fixed assets, such as equipment and owner-occupied properties, are initially 
recognised at cost and subsequently measured at cost less accumulated depreciation 
and impairments. 
3.9 Provisions (IAS 37)
A provision is recognised in the balance sheet when the Group has a legal or construc-
tive obligation arising from past events and it is probable that an outflow of resources 
will be required to settle the obligation. Additionally, a reliable estimation of the 
amount must be made, and estimated outflows are calculated at present value. Provi-
sions are reassessed on each reporting date and adjusted when needed, so that they 
correspond to the current estimate of the value of the obligations.
Provisions are recognised for restructurings. Restructurings are extensive organi-
sational changes which may require the payment of employee severance for early 
termination or branches to be shut down. For a provision to be recognised, a restruc-
turing plan must be in place and announced, so that it has created a valid expectation 
among those affected that the company will implement a restructuring. A provision 
for restructuring includes only direct expenses related to the restructuring and not to 
future operations, such as of the cost of severance.
3.10 Pensions (IAS 19)
The Group’s post-employment benefits, which consist of pension obligations, are 
classified as either defined contribution plans or defined benefit plans. In defined 
contribution plans, the Group pays contributions to separate legal entities, and the 
risk of a change in value until the funds are paid out rests with the employee. Thus, 
the Group has no further obligations once the fees are paid. Other pension obligations 
are classified as defined benefit plans. Premiums for defined contribution plans are ex-
pensed when an employee has rendered his/her services. In defined benefit plans, the 
present value of pension obligations is calculated and recognised as a provision. Both 
legal and constructive obligations that arise as a result of informal practices are taken 
into account. The calculation is made according to the Projected Unit Credit Method 
and also comprises payroll tax. As such, future benefits are attributed to periods of 
service. The fair value of the assets (plan assets) that are allocated to cover obligations 
is deducted from the provision. The income statement, staff costs, is charged with the 
net of service costs, interest on obligations and the anticipated return on plan assets. 
The calculations are based on the Group’s actuarial assumptions, i.e. the Group’s best 
estimate of future developments. The same interest rate is used to calculate both 
interest expense and interest income. If the actual outcome deviates or assumptions 
change, so-called actuarial gains and losses arise. The net of actuarial gains and losses 
is recognised as Revaluations of defined benefit pension plans in other comprehensive 
income, where the difference between the actual return and estimated interest income 
on plan assets is recognised as well.
3.11 Insurance contracts (IFRS 4)
In the financial statements, insurance policies refer to policies where significant 
insurance risk is transferred from the insured to the insurer. The majority of the 
Group’s insurance policies do not transfer significant insurance risk; therefore, they are 
recognised as financial instruments in the balance sheet line Financial liabilities where 
the customers bear the investment risk. For insurance policies with significant insur-
ance risk, actuarial provisions are allocated corresponding to pledged obligations. In the 
income statement, premiums received, and provisions are reported as Net insurance.
3.12 Net commission (IFRS 15)
Revenues from contracts with customers consist primarily of service-related fees and 
are reported as Commission income, including Asset Management, Cards and Payment 
processing. Such revenues are recognised when a performance obligation is satisfied, 
which is when control of the services is transferred to the customer. The revenues 
typically reflect the consideration which is expected to be received in exchange for 
those services. Where the consideration includes a variable component, for example 
due to discounts, refunds or performance-based elements, revenue is only recognised 
when it is highly probable that a significant reversal in the amount will not occur. The 
total consideration is allocated to each performance obligation and is dependent on 
whether the performance obligations are satisfied at a point in time or accrued over a 
period of time. The Group recognises unbilled receivables for performance obligations 
which have been satisfied but not invoiced as accrued income and contract liabilities 
for short-term advances received but where the performance obligation has not yet 
been satisfied as prepaid income.
Commission expenses are transaction-dependent and are directly related to the 
transactions for which income is recognised in Commission income.
3.13 Other income
IT and other services mainly provided to the Saving banks are included in Other income 
and accounted for in accordance with IFRS 15, see above 3.12 Net commission.
In addition, Other income includes capital gains and losses on the sale of ownership 
interests in subsidiaries and associates, to the extent they do not represent an inde-
pendent service line, or a significant business conducted within a geographical area. 
Other income also includes capital gains and losses on the sale of tangible assets.
3.14 Share-based payment (IFRS 2)
Since the Group receives services from its employees and assumes an obligation to 
settle the transactions with equity instruments, this is recognised as share-based 
payment. The fair value of the services that entitle the employees to an allotment of 
equity instruments is expensed at the time the services are rendered and, at the same 
time, a corresponding increase in equity is recognised as Retained earnings.
For share-based payment to employees settled with equity instruments, the 
services rendered are measured with reference to the fair value of the granted equity 
instruments. The fair value of the equity instruments is calculated as per the grant

65
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
date for accounting purposes i.e. the measurement date. The measurement date refers 
to the date when a contract was entered into and the parties agreed on the terms 
of the share-based payment. On the grant date, the employees are granted rights to 
share-based payment. Since the granted equity instruments are not vested until the 
employees have fulfilled a period of service, it is assumed that the services are rendered 
during the vesting period. This means that the cost and corresponding increase in 
equity are recognised over the entire vesting period. Non-market based vesting terms, 
such as a requirement that a person remains employed, are taken into account in the 
assumption of how many equity instruments are expected to be vested. At the end of 
each report period the Group reassesses its judgments of how many shares it expects 
to be vested based on the non-market based vesting terms. Any deviation from the 
original judgment is recognised in profit or loss and a corresponding adjustment is 
recognised in Retained earnings within equity. Related social insurance charges are 
recognised as cash-settled share-based payment i.e. as a cost during the correspond-
ing period but based on the fair value that at any given time serves as the basis for a 
payment of social insurance charges.
3.15 Impairment (IAS 36)
For assets that are not tested for impairment according to other standards, the Group 
periodically determines whether there are indications of diminished value. If such 
indications exist, the asset is tested for impairment by estimating its recoverable 
amount. An asset’s recoverable amount is the higher of its selling price less costs to sell 
and its value in use. If the carrying amount exceeds the recoverable amount, the asset 
is reduced to its recoverable amount. When estimating value in use, estimated future 
cash flows are discounted using a discount rate before tax that includes the market’s 
estimate of the time value of money and other risks associated with the specific asset. 
An assessment is also made on each reporting date whether there are indications that 
the need for previous impairments has decreased or no longer exists. If such indications 
exist, the recoverable amount is determined. Previous impairment losses are reversed 
only if there were changes in the estimates made when the impairment was recog-
nised. Goodwill impairment is not reversed. Impairments are recognised separately in 
the income statement for tangible or intangible assets.
3.16 Tax (IAS 12)
Current tax assets and tax liabilities for current and previous periods are measured at 
the amount expected to be obtained from or paid to tax authorities. Deferred taxes 
refer to tax on differences between the carrying amount and the tax base, which in the 
future serves as the basis for current tax. 
 Deferred tax liabilities are the tax attributable to taxable temporary differences and 
are expected to be paid in the future. Deferred tax liabilities are recognised on all 
taxable temporary differences, with the exception of the portion of tax liabilities at-
tributable to the initial recognition of goodwill or to certain taxable differences owing 
to holdings in subsidiaries. Deferred tax assets represent a reduction in the future 
tax attributable to deductible temporary differences, tax loss carry-forwards or other 
future taxable deductions. Deferred tax assets are tested on each closing date and 
recognised to the extent it is likely on each closing date that they can be utilised. As a 
result, a previously unrecognised deferred tax asset is recognised when it is considered 
likely that a sufficient surplus will be available in the future. Tax rates which have been 
enacted or substantively enacted as of the reporting date are used in the calculations. 
The Group’s deferred tax assets and tax liabilities are estimated at nominal value 
using each country’s tax rate in effect in subsequent years. Deferred tax assets are 
netted against deferred tax liabilities for Group entities that have offsetting rights. 
All current and deferred taxes are recognised in profit or loss as Tax expense, with the 
exception of tax attributable to items that are recognised directly in other comprehen-
sive income or equity.
 
3.17 Cash and cash equivalents (IAS 7)
Cash and cash equivalents consist of cash and balances with central banks, when  
the central bank is domiciled in a country where Swedbank has a valid banking licence. 
Balances refer to funds that are available at any time. This means that all cash and  
cash equivalents are immediately available.
3.18 Operating segments (IFRS 8)
Segment reporting is presented on the basis of the executive management’s perspec-
tive and relates to the parts of the Group that are defined as operating segments. 
Operating segments are identified on the basis of internal reports to the company’s 
chief operating decision maker. The Group has identified the Chief Executive Officer 
(CEO) as its chief operating decision maker and the internal reports used by the CEO to 
oversee operations and make decisions on allocating resources serve as the basis of the 
information presented.
The accounting policies for an operating segment consist of the above account-
ing policies and policies that specifically refer to segment reporting. Market-based 
compensation is applied between operating segments, while all costs for IT, Other 
shared services and Group Staff are transferred at full cost-based transfer prices to 
the operating segments. Group Executive Management expenses are not distributed. 
Cross- border services are invoiced according to the OECD’s guidelines on transfer pric-
ing. The Group’s equity attributable to the shareholders is allocated to each operating 
segment based on the capital adequacy rules and estimated utilised capital.
The return on equity for the business segments is based on operating profit less 
estimated tax and non-controlling interests in relation to average allocated equity.
4 CRITICAL ACCOUNTING JUDGMENTS AND ESTIMATES
The presentation of consolidated financial statements in conformity with IFRS requires 
the executive management to make judgments, assumptions and estimates that affect 
the recognised amounts for assets, liabilities and disclosures of contingent assets and 
liabilities as of the closing day as well as recognised income and expenses during the 
report period. The executive management continuously evaluates these judgments 
and estimates, including those that affect the fair value of financial instruments, 
provisions for impaired loans, impairment of intangible assets, deferred taxes, pension 
provisions and share based payments. The executive management bases its judgments 
and assumptions on previous experience and several other factors that are considered 
reasonable under the circumstances. Actual results may deviate from judgments 
and estimates. 
Investment funds
Entities in the Group have established investment funds for their customers’ savings 
needs. The Group manages the assets of these funds on behalf of customers in accord-
ance with predetermined provisions approved by the Swedish Financial Supervisory 
Authority. The return generated by these assets, as well as the risk of a change in 
value, accrues to customers. Within the framework of the approved fund provisions, 
the Group receives management fees as well as, in certain cases, application and 
withdrawal fees for the management duties it performs. The decisions regarding the 
management of an investment fund are governed by the fund’s provisions; however 
the Group has power over the decision making of the relevant activities of the invest-
ment funds. The Group’s exposure to variable returns from its involvement with those 
funds is primarily related to the fees charged and therefore the Group is considered 
to act as agent on behalf of the investment funds’ investors. In certain cases, Group 
entities also invest in the investment funds to fulfil their obligations to customers. The 
Group’s holdings in the investment funds represent an additional variable exposure in 
the investment funds. The Group’s interests in total are seen as principal activity for 
the Group’s own benefit where such interests exceed 35 per cent and, consequently, 
the investment fund would be controlled and consolidated. The Group considers that 
holdings in investment funds through unit-linked mutual insurance contracts do not 
result in a variable exposure and therefore are excluded from the assessment of control 
over such investment funds. Holdings in investment funds through unit-linked mutual 
insurance contracts of SEK 169bn (129) are recognised as Financial assets for which 
the customer bears the investment risk and the corresponding liabilities of SEK 169bn 
(129) are recognised as Financial liabilities for which the customer bears the invest-
ment risk. If the Group had considered such holdings to be a variable exposure and that 
it had control over such investment funds, additional financial assets and financial 
liabilities corresponding to SEK 77bn (44) respectively would have been recognised in 
the Group’s balance sheet.
Financial instruments
When determining the fair values of financial instruments, the Group uses various 
methods depending on the degree of available observable market data and the level 
of activity in the market. Quoted prices on active markets are primarily used. When 
financial assets and financial liabilities in active markets have offsetting market risks, 
the average of bid and sell prices is used as a basis for determining the fair value of the 
offsetting risk positions. For any open net positions, bid or sell prices are applied as ap-
propriate, i.e. bid prices for long positions and sell prices for short positions. The Group’s 
executive management has determined the method for which market risks offset each 
other and how the net positions are calculated. When quoted prices on active markets 
are not available, the Group instead uses valuation models. The Group’s executive 
management determines when the markets are considered inactive and when quoted 
prices no longer correspond to fair value, therefore requiring that valuation models are 
used. An active market is considered a regulated marketplace where quoted prices are 
easily accessible and which demonstrates regularity. Activity is evaluated continuously 
by analysing factors such as trading volumes and differences between bid and sell 
prices. When certain criteria are not met, the market or markets are considered inactive. 
The Group’s executive management determines which valuation model and which 
pricing parameters are most appropriate for the individual instrument. Swedbank 
uses valuation models that are generally accepted and are subject to independent 
risk control. 
When financial instruments are measured at fair value according to valuation mod-
els, a determination is made on which observable market data should be used in those 
models. The assumption is that quoted prices for financial instruments with similar 
activity will be used. When such prices or components of prices cannot be identified, 
the executive management must make its own assumptions. Note G46 shows financial 
instruments at fair value divided into three valuation levels: quoted prices, valuation

66
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
models with observable market inputs and valuation models with significant assump-
tions. As of year-end the value of financial instruments measured with significant 
assumptions amounted to SEK 1 854m (1 266), related to holdings in unlisted shares. 
A determination is made about which financial instruments hedge accounting will be 
applied to in order to reduce accounting volatility as far as possible. Accounting volatil-
ity lacks economic relevance and arises when financial instruments are measured with 
different measurement principles despite that they financially hedge each other.
Tax
For the parent company’s Estonian subsidiary, Swedbank AS, income taxation is trig-
gered only if dividends are paid. The parent company determines the dividend payment 
and does not intend to distribute dividends from the subsidiary’s accumulated earnings 
before 2017 and no deferred tax is reported for this part. Accumulated earnings before 
2017 amounted to SEK 14 237m (14 011). The unrecognised deferred tax liability 
amounted to SEK 2 847m (2 802).
Provisions for credit impairments
Credit impairment provisions that are estimated using quantitative models incorporate 
inputs, assumptions and methodologies that involve a high degree of management 
judgement. In particular, the following can have a significant impact on the level of 
impairment provisions: the determination of a significant increase in credit risk and the 
incorporation of forward-looking macroeconomic scenarios. Incorporating forward-
looking information requires significant judgment, both in terms of the scenarios to be 
applied and ensuring that only relevant forward-looking information is considered in 
the calculation of expected credit losses. An analysis of the sensitivity of credit impair-
ment provisions in relation to significant increase in credit risk assumptions is found on 
page 69 and in relation to the forward-looking macroeconomic scenarios is found on 
page 70.
Significant credit-impaired exposures (which are those where the borrower’s or limit 
group’s total group credit limit is SEK 50m or more), are assessed on an individual basis 
and without the use of modelled inputs. The credit impairment provisions for these 
exposures are established using the discounted expected cash flows and considering 
a minimum of two possible outcomes, of which at least one is a loss outcome. The 
possible outcomes consider both macroeconomic and non-macroeconomic (borrower-
specific) scenarios. The estimation of future cash flows takes into account a range of 
relevant factors such as the amount and sources of cash flows, the level and quality of 
the borrower’s earnings, the realisable value of collateral, the Group’s position relative 
to other claimants, the likely cost and duration of the work-out process and current 
and future economic conditions. The amount and timing of future recoveries depend 
on the future performance of the borrower and the valuation of collateral, both of 
which might be affected by future economic conditions; additionally, collateral may not 
be readily marketable. Judgements change as new information becomes available or 
as work-out strategies evolve, resulting in regular revisions to the credit impairment 
provisions. The change in credit impairment provisions recognised in the income state-
ment in relation to individually assessed loans is SEK 869m (832). The Group has not 
made changes in the estimation techniques or significant assumptions made during 
the reporting period.
Impairment testing of goodwill
Goodwill is tested at least annually for impairment. Testing is conducted by calculating 
the recoverable amount i.e. the highest of value in use or the selling price less costs 
to sell. If the recoverable amount is lower than the carrying amount, the asset is 
reduced to its recoverable amount. Goodwill impairment does not affect either cash 
flow or the capital adequacy ratio, since goodwill is a deduction in the calculation of 
the capital base. The executive management’s tests are done by calculating value in 
use. The calculation is based on estimated future cash flows from the cash generating 
unit that the goodwill relates to and has been allocated to as well as when the cash 
flows are received. The first three years’ cash flows are determined on the basis of the 
financial plans the executive management has established. Subsequent determinations 
of the size of future cash flows require more subjective estimates of future growth, 
margins and profitability levels. The Group estimates perpetual cash flows, since all 
cash generating units are part of the Group’s home markets, which it has no intention 
of leaving. In addition, a discount rate is determined that in addition to reflecting the 
time value of money also reflects the risk that the asset is associated with. Different 
discounting factors are used for different time periods. As far as possible, the discount 
rate and assumptions, or portions of the assumptions, are based on external sources. 
Nevertheless, a large part of the calculation is dependent on the executive manage-
ment’s own assumptions. The executive management considers the assumptions to be 
significant to the Group’s results and financial position. The Group’s goodwill amounted 
to SEK 13 709m (13 549) at year-end, of which SEK 10 582m (10 413) relates to the 
investment in the Baltic banking operations. The executive management’s assumptions 
in the calculation of value in use as of year-end 2019 did not lead to any impairment 
losses. Until 2001, 60 per cent of the Baltic banking operations had been acquired. In 
2005 the remaining 40 per cent was acquired. The majority, or SEK 11 387m (11 206) 
of the goodwill before impairments arose through the acquisition of the remaining 
non-controlling interest and at the time corresponded to 40 per cent of the operation’s 
total value. If the discount rate had been increased by one percentage point or the 
growth assumption had been reduced by one percentage point, it would not have cre-
ated any impairment losses for the investments in the Baltic banking operations. 
Defined benefit pensions
For pension provisions for defined benefit obligations, the executive management uses 
a number of actuarial assumptions to estimate future cash flows. The assumptions are 
assessed and updated, if necessary, at each reporting date. Changes in assumptions are 
described in Note G39. Important estimates are made with regard to the final salary 
the employee has at the time of retirement, the size of the benefit when it relates to 
the income base amount and the payment period and economic life. Estimated future 
cash flows are projected at present value using an assumed discount rate. When actual 
outcomes deviate from the assumptions made, an experience-based actuarial gain or 
loss arises. Actuarial gains or losses also arise when assumptions change. During 2019 
an expense of SEK 3 866m (1 806) was recognised in other comprehensive income, 
regarding remeasurements of defined benefit pension plans. At year end the discount 
rate, which are used in the calculation of the pension liability, was 1.46 per cent as per 
year end 2019 compared to 2.42 per cent last year end. The inflation assumption was 
1.98 per cent compared with 1.92 per cent last year end. The changed assumptions
represent SEK 4 929m of the expense in other comprehensive income. The fair value of 
plan assets increased during 2019 by SEK 1 063m. In total, the obligation for defined 
benefit pension plans exceeded the fair value of plan assets by SEK 8 798m compared 
with SEK 4 979m at the last year end.
Contingent liabilities
 The Group is subject to different authorities’ investigations regarding Swedbank’s 
historic anti money laundering compliance. At year end 2019 no amount has been rec-
ognised as a provision or has been reported as a contingent liability for potential fines. 
The outcome of the investigations has still not been known, neither was it possible to 
reliably estimate potential fines.
5 NEW STANDARDS AND INTERPRETATIONS 
5.1 Standards issued but not yet adopted
The International Accounting Standards Board (IASB) and IFRS Interpretations Com-
mittee (IFRIC) have issued the following standards, amendments to standards and 
interpretations that apply in or after 2020. The IASB permits earlier application. For 
Swedbank to apply them also requires that they have been approved by the EU if the 
amendments are not consistent with previous IFRS rules. Consequently, Swedbank has 
not applied the following amendments in the 2019 annual report.
Insurance (IFRS 17) 
IFRS 17 was issued in May 2017 and is applicable from 1 January 2021, with a propsed 
deferral to 1 January 2022. The standard has not yet been approved by the EU. The 
new standard establishes principles for recognition, presentation, measurement and 
disclosure of insurance contracts issued. Insurance contracts in scope will be measured 
at current value, based on the current estimates of amounts expected to be collected 
from premiums and paid out for claims, benefits and expenses plus expected profit for 
providing insurance coverage. The impacts on the Group’s financial reports are still 
being assessed by the Group.
Other changes in IFRS and Swedish regulations
Other new or amended IFRSs or interpretations or Swedish regulations issued and not 
yet adopted are not expected to have a significant impact on the Group’s financial posi-
tion, results, cash flows or disclosures.

67
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Swedbank defines risk as a potentially negative impact on the value of the Group that 
may arise from current internal processes or from internal or external future events. 
The concept of risk combines the probability of an event occuring with the impact that 
event would have on profit and loss, equity and the value of the Group. 
The Board of Directors has adopted an Enterprise Risk Management (ERM) policy 
depicting the risk framework, risk management process, and roles and responsibili-
ties for risk management. Swedbank continuously identifies the risks generated in its 
operations and has designed processes to manage them.
Risk management includes the processes that ensure that the Group identifies, 
measures/values, handles, follows-up and reports on risk.The processes encompass all 
types of risk and result in a description of Swedbank’s risk profile, which in turn serves 
as the basis of the internal capital adequacy assessment process.
To ensure that Swedbank’s risk profile maintains a low level also in the long–term 
perspective, the Board has set an overall risk appetite. In line with this appetite, individ-
ual CEO limits have been established for the types of risks that the Group is exposed to. 
The CEO limits are complemented by limits at lower levels as well as key risk indicators, 
which are closely monitored and designed to provide early warning signals should the 
prerequisites in the risk landscape change.
The capital adequacy assessment process evaluates capital needs based on Swed-
bank’s aggregate risk level and business strategy as decided upon. The aim is to ensure 
efficient use of capital and at the same time, even under adverse market conditions, 
ensure that Swedbank meets legal minimum capital requirements and maintains access 
to both domestic and international capital markets.
Risk
Description
Credit risk
The risk that a borrower fails to meet its obligations to the 
Group and the risk that the pledged collateral does not cover 
the claims. Credit risk also includes Counterparty risk, Concen-
tration Risk and Foreign Exchange Settlement risk.
Market risk 
The risk to value, earnings, or capital arising from movements 
of risk factors in financial markets. This risk includes Interest 
rate risk (including real- and nominal interest rates, credit 
spreads, and basis spreads), Currency risk, Equity risk (including 
Dividend risk), and Commodity risk (including precious metals) 
and risks from changes in volatilities or correlations.
Liquidity risk
The risk of not being able to meet payment obligations at 
maturity or when they fall due. 
Operational risk
The risk of losses, business process disruption or negative 
reputational impact, negative impact on privacy related rights 
and freedoms of natural persons’ whose personal data the 
Group processes resulting from inadequate or failed internal 
processes, people and systems, or from external events. It also 
includes risk from external events not covered by any other risk 
type. The definition includes Information security risk. 
Insurance risk
The risk of a change in value due to a deviation between actual
insurance costs and anticipated insurance costs.
Other risks 
Include business risk, strategic risk, reputational risk, conduct 
risk, money laundering and terrorist financing risk and sustain-
ability risk. 
3.1 Credit risks
DEFINITION
Credit risk refers to the risk that a counterparty or a borrower will fail to meet its 
contractual obligations towards Swedbank and the risk that pledged collateral will not 
cover the claim.
Credit risk also includes concentration risk, counterparty risk and foreign exchange 
(FX) settlement risk. 
Concentration risk comprises, among other things, large exposures or concentrations 
in the credit portfolio to specific counterparties, sectors or geographies. 
Counterparty risk is the risk that a counterparty in a trading transaction will not 
meet its financial obligations towards Swedbank and that the collateral received will 
not be enough to cover the claim against the counterparty. In this context, trading 
transactions refer to repos, derivatives and security financing transactions. 
Foreign exchange (FX) settlement risk is the risk that a counterparty fails to meet its 
obligations as Swedbank has already fulfilled its agreement at the time of the executed 
transaction (delivery/payment).
Risk management
A central principle for Swedbank’s lending is that each of the Group’s business units 
have full responsibility for their credit risks, that credit decisions adhere to the credit 
process and are made in accordance with applicable regulations, and that these deci-
sions are in line with Swedbank’s business and credit strategies. Depending on the size 
and nature of each credit, a lending decision can be made, for example, by an officer 
with the help from system support or by a credit committee. The business unit has 
full liability regardless of who makes the ultimate decision, including responsibility for 
internal credit control. The duality principle serves as guidance for credit and credit risk 
management throughout the Group. The principle is reflected in the independent credit 
risk organisation, in decision–making bodies and in the credit process. Each business 
unit is responsible for ensuring that internal controls are integrated in the relevant 
parts of the credit process.
The risk classification system is a central part of the credit process and comprises 
operating and decision–making processes for lending, credit monitoring, and quanti-
fication of credit risk. The decision to grant credit requires that the borrower, on good 
grounds, is expected to fulfil its commitment towards the Group. Moreover, the Group 
strives to obtain adequate collateral.
Sound, robust and balanced lending requires that each transaction is viewed in 
relation to relevant external factors, taking into account what the Group and the 
market know about anticipated local, regional and global changes and developments 
which could impact the transaction and its risks. All credit exposures are systematically 
assessed on a continuous basis for early identification of significant increase in credit 
risk. Exposures to corporate customers, financial institutions and sovereigns are also 
reviewed at least once a year to ensure a comprehensive assessment of the borrower’s 
financial situation and forward–looking creditworthiness, review and establishment of 
risk class and assessment of long–term relationship with the borrower.
Risk measurement 
Swedbank’s internal risk classification system is the basis for:
• Risk assessment and credit decisions
• Calculating risk–adjusted returns (including RAROC)
• Credit impairment provisions
• Monitoring and managing credit risks (including migrations)
• Reporting credit risks to the Board, CEO and Group Executive Management
• Developing credit strategies and associated risk management activities
• Calculating capital requirements and capital allocation
Risk class is assessed and assigned as part of each credit decision. The risk class also 
­affects the scope of the analysis and documentation and how customers are moni-
tored. In this way, low–risk transactions can be approved through a simpler and faster 
credit process. The risk classification is also a key part of the monitoring of individual 
credit exposures.
Swedbank has received approval from the Swedish Financial Supervisory Authority 
to apply the IRB approach to calculate the major part of the capital requirement for 
credit risks. The bank applies the IRB approach to the majority of its lending to the pub-
lic, with the exception of lending to sovereigns. For exposures where the IRB approach 
is not applied, the standardised approach is adopted instead.
The goal of the risk classification is to predict defaults within one year. It is ex-
pressed on a scale of 23 classes, where 0 represents the highest risk and 21 represents 
the lowest risk of default, with one class for defaulted loans. The table below describes 
the Group’s risk classification and how it relates to the theoretical probability of default 
G3 Risks

68
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
(PD) within 12 months as well as an indicative rating from Standard & Poor’s. Of the 
total IRB–assessed exposures, 85 per cent (82) fall in the risk classes 13–21, invest-
ment grade, where the risk of default is considered low. Of the exposures, 54 per cent 
(53) have been assigned a risk grade of 18 or higher, which corresponds to a rating of 
A from the major rating agencies. The exposures relate to the consolidated situation.
Risk grade according to IRB methodology
Internal rating 
PD (%)
Indicative rating 
Standard & Poor’s
Low risk
13–21
<0.5
BBB– to AAA
Normal risk
9–12
0.5–2.0
BB to BB+
Augmented risk
6–8
2.0–5.7
B+ to BB–
High risk
0–5
>5.7
C to B
Default 
Default
100
D
To ensure the most accurate internal rating possible, various risk classification models 
have been developed. There are primarily two types of models; one is based on statisti-
cal methods, requiring access to a large amount of information on counterparties and 
sufficient information regarding counterparties that have entered into default. In cases 
where statistical methods are not applied, models are created where the evaluation 
criteria are based on expert opinions.
The models are validated when new models are introduced and when major changes 
are made, as well as on a periodic basis (at least annually). The validation is designed to 
ensure that each model measures risk in a satisfactory manner. In addition, the models 
are evaluated to ensure that they work well in daily credit operations. The models 
normally produce a likelihood of default over a one–year horizon.
Measurement of expected credit losses
The Group measures credit impairment provisions using an expected credit loss ap-
proach. Expected credit losses are measured based on the stage to which the individual 
asset is allocated at each reporting date. For financial assets with no significant 
increase in credit risk since initial recognition (Stage 1), impairment provisions reflect 
12–month expected credit losses. For financial assets with a significant increase in 
credit risk (Stage 2) and those which are credit impaired (Stage 3), impairment provi-
sions reflect lifetime expected credit losses. Such measurements are estimated using 
internally developed statistical models or individual assessments of expected con-
tractual cash flows, both of which involve a high degree of management judgement. 
The key inputs used in the quantitative models are: probability of default, loss given 
default, exposure at default and expected lifetime. Expected credit losses reflect both 
historical data and probability–weighted forward–looking scenarios.
The portfolios for estimating expected credit losses are determend according to the 
same segmentation that is applied for regulatory purposes, with shared risk character-
istics.This is based on homogeneous sub–segments of the total credit portfolio, such as 
country, business area, or product group. 
Probability of default (PD)
The 12–month and lifetime PDs of a financial instrument represent the probability of 
a default occurring over the next 12 months and over its expected lifetime respectively, 
based on conditions existing at the balance sheet date and future economic conditions 
that affect credit risk. 
Internal risk rating grades based on IRB PD models are inputs to the IFRS 9 PD mod-
els and historic default rates are used to generate the PD term structure covering the 
lifetime of financial assets. The developed PD models are segmented based on shared 
risk characteristics such as obligor type, country, product group and industry segment, 
and are used to derive both the 12–month and lifetime PDs. Segment and country 
specific credit cycle indexes are forecasted given different macroeconomic scenarios. 
For each scenario, PD term structures are adjusted based on the correlation to the 
forecasted credit cycle indexes, to obtain forward–looking point–in–time PD estimates. 
Consequently a worsening of an economic outlook or an increase in the probability 
of the downside scenario occurring results in higher 12–month and lifetime PDs, thus 
increasing the estimated expected credit losses as well as the number of loans migrat-
ing from Stage 1 to Stage 2.
Loss given default (LGD)
LGD represents an estimate of the loss arising on default, taking into account the 
probability and the expected value of future recoveries including realization of col-
lateral, the length of the recovery period and the time value of money. LGD estimates 
are based on historical loss data segmented by geography, type of collateral, type 
of obligor, and product information. Forward–looking information is reflected in the 
LGD estimates by using forecasted collateral value indexes for each macroeconomic 
scenario to adjust future loan–to–value and recovery rates. An economic outlook with 
deteriorating collateral values decreases recovery rates and increases loan–to–value, 
and therefore increases LGD and expected credit losses.
Exposure at default (EAD)
The EAD represents an estimated exposure at a future default date, considering 
expected changes in the exposure after the reporting date. The Group’s modelling 
approach for EAD reflects current contractual terms of principal and interest payments, 
contractual maturity date and expected utilisation of undrawn limits on revolving 
facilities and irrevocable off–balance sheet commitments.
Expected lifetime
The Group measures expected credit losses considering the risk of default over the 
expected life. The expected lifetime is generally limited by the maximum contractual 
period over which the Group is exposed to credit risk, even if a longer period is consist-
ent with business practice. All contractual terms are considered when determining the 
expected lifetime, including prepayment options and extension and rollover options 
that are binding to the Group. For the mortgage portfolio, the Group uses a behavioural 
life model which predicts the likelihood that an exposure will still be open and not 
defaulted at any point during its remaining life (accounting for the probability of early 
repayment). For credit cards, the expected behavioural life, is determined using prod-
uct–specific historical data and ranges up to 10 years. 
Determination of significant increase in credit risk
The Group uses both quantitative and qualitative indicators for assessing a significant 
increase in credit risk. The criteria are disclosed in accounting policies section 3.4.3 
Credit impairment, Determining a significant increase in credit risk since initial recogni-
tion. The tables on next page shows the quantitative thresholds, namely: 
• Changes in the 12-month PD and internal risk rating grades, which have been applied 
for the portfolio of loans originated before 1 January 2018. For instance, for expo-
sures originated with a risk grade between 0 and 5, a downgrade by 1 to 2 grades 
from initial recognition is assessed as a significant change in credit risk. Alternatively, 
for exposures originated with a risk grade between 13 and 21, a downgrade by 3 to 8 
grades from initial recognition is considered significant. 
• Changes in the lifetime PD, which have been applied for the portfolio of loans 
originated on or after 1 January 2018. For instance, for exposures originated with 
a risk grade between 0 and 5, a 50 per cent increase in the lifetime PD from initial rec-
ognition is assessed as a significant change in credit risk. Alternatively, for exposures 
originated with a risk grade between 13 and 21, an increase of 150-300 per cent 
from initial recognition is considered significant.
These thresholds reflect a lower sensitivity to change in the low risk end of the risk 
scale and a higher sensitivity to change in the high-risk end of the scale.
The Group has performed a sensitivity analysis on how credit impairment provisions 
would change if the thresholds applied were increased or decreased. A lower threshold 
would increase the number of loans that have migrated from Stage 1 to Stage 2 and, 
also increase the estimated credit impairment provisions. A higher threshold would 
have the opposite effect. The tables below disclose the impacts of this sensitivity 
analysis on the year end credit impairment provisions. Positive amounts represent 
higher credit impairment provisions that would be recognised.
Incorporation of forward–looking macroeconomic scenarios
Forward–looking information is incorporated into both the assessment of significant 
increase in credit risk and calculation of expected credit losses. 
From analyses of historical data, the Group’s risk control function has identified and 
reflected in the models relevant macroeconomic variables that contribute to credit risk 
and losses for different portfolios based on geography, borrower, and product type. 
The most highly correlated variables are GDP growth, housing and property prices, 
unemployment, oil prices and interest rates. Swedbank continuously monitors the 
global macroeconomic environment, with particular focus on Sweden and other home 
markets. This includes defining forward–looking macroeconomic scenarios for differ-
ent jurisdictions and translating those scenarios into macroeconomic forecasts. The 
macroeconomic forecasts consider internal and external information and are consistent 
with the forward–looking information used for other purposes such as budgeting and 
forecasting. The base scenario is based on the assumptions corresponding to the bank’s 
budget scenario and alternative scenarios reflecting more positive as well as more 
negative outlook are developed accordingly.

69
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Significant increase in credit risk - financial instruments with initial recognition before 1 January 2018
2019
2018
Internal risk 
rating grade 
at initial 
recognition
12-month PD 
band at initial 
recognition
Threshold, 
rating down­
grade1, 2, 3
Increase  
in threshold 
by 1 grade
Decrease  
in threshold 
by 1 grade
Recognised 
credit 
­impairment 
provisions
Share of total 
portfolio (%) 
in terms of 
gross carrying 
amount
Increase  
in threshold 
by 1 grade
Decrease  
in threshold 
by 1 grade
Recognised 
credit 
­impairment 
provisions
Share of total 
portfolio (%) 
in terms of 
gross carrying 
amount
13–21
< 0,5%
3–8 units
–11,2%
11,2%
681
43%
–8,3%
12,4%
904
52%
9–12
 0,5–2,0%
1–5 units
–21,5%
20,7%
363
9%
–9,7%
13,0%
793
11%
6–8
2,0–5,7%
1–3 units
–8,2%
6,6%
149
3%
–8,0%
6,4%
212
4%
0–5
>5,7% and 
<100%
1–2 units
–2,3%
0,0%
107
1%
–1,8%
0,0%
193
1%
–13,1%
12,4%
1 300
56%
–8,2%
10,9%
2 102
69%
Financial instruments subject to the low credit risk exemption
3
6%
5
10%
Stage 3 financial instruments
3 839
1%
3 902
1%
Total provisions4
5 142
63%
6 009
79%
1) Downgrade by 2 grades corresponds to approximately 100% increase in 12-month PD.
2) Thresholds vary within given ranges depending on the borrower’s geography, segment and internal risk rating.
3) The threshold used in the sensitivity analyses is floored to 1 grade.
4) Of which provisions for off-balance exposures are SEK 492m (407m).
Significant increase in credit risk – financial instruments with initial recognition on or after 1 January 2018
2019
Internal risk rating grade  
at initial recognition
Threshold, increase  
in lifetime PD5
Increase in  
threshold by 100 %
Decrease in  
threshold by 50 %
Recognised credit  
impairment provisions
Share of total portfolio  
(%) in terms of gross  
carrying amount
13–21
100–300%
–10,6%
8,7%
267
25%
9–12
100–200%
–0,5%
1,1%
235
7%
6–8
50–150%
–1,3%
3,0%
95
2%
0–5
50%
–0,1%
0,3%
182
1%
–4,0%
3,7%
779
34%
Financial instruments subject to the low credit risk exemption
6
3%
Stage 3 financial instruments
1 340
0%
Total provisions6
2 125
37%
5) threshold vary within given ranges depending on the borrower’s geography, segment and internal risk rating. 
6) Of which provisions for off-balance exposures are SEK 91m.

70
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Regulatory capital
IFRS 9
PD
• Fixed 1-year default horizon
• Through-the-cycle, based on 
a long-run average
• Conservative calibration based 
on backward-looking infor-
mation including data from 
downturns
• 12-month PD for Stage 1 and 
lifetime PD for Stages 2 and 3
• Point-in-time, based on the cur-
rent position in the ­economic 
cycle
• Incorporation of forward-­
looking information
• No conservative add-ons
LGD
• Downturn adjusted collateral 
values and through-the -cycle 
calibration
• All workout costs included
•Point-in-time, based on the 
current position in the cycle 
• Adjusted to incorporate for-
ward-looking information
• Internal workout costs excluded
• Recoveries discounted using 
the instrument specific 
­effective interest rate
EAD
• 1-year outcome period 
• Credit conversion factor, 
with downturn adjustment, 
applied to off-balance sheet 
instruments
• EAD over the expected lifetime 
of instruments
• Point-in-time credit conversion 
factor applied to off-balance 
sheet instruments
• Prepayments taken into  
account
Expected 
lifetime
• Not applicable
• Early repayment behaviour 
in portfolios with longer 
maturities but predominant 
prepayments, e.g. mortgages.
• Estimating maturities for cer-
tain revolving credit facilities, 
such as credit cards.
Discounting
• No discounting, except in 
LGD models
• Expected credit losses dis-
counted to the reporting date, 
using the instrument specific 
effective interest rate
Significant 
increase in 
credit risk
• Not applicable
• Relative measure of increa-
se in credit risk since initial 
recognition
• Identification of significance 
thresholds
The Group considers at least three scenarios when estimating expected credit losses, 
which are incorporated into the PD and LGD inputs for model–based expected credit 
losses. In general, a worsening of forecasted macroeconomic variables for each 
scenario or an increase in the probability of the downside scenario occurring will both 
increase the number of loans migrating from Stage 1 to Stage 2 and increase the 
estimated credit impairment provisions. In contrast, an improvement in the outlook on 
forecasted macroeconomic variables or an increase in the probability of the upside sce-
nario occurring will have a positive impact. It is not possible to meaningfully isolate the 
impact of changes in the various macroeconomic variables for a particular scenario due 
to the interrelationship between the variables as well as the interrelationship between 
the level of pessimism inherent in a particular scenario and its probability of occurring.
The following table presents the credit impairment provisions as at year end that 
would result from only the downside respectively only the upside scenarios, which are 
considered reasonably possible. 
Expected credit losses on credit-impaired assets 
The criteria for credit–impaired assets are disclosed on page 60. 
The Group estimates expected credit losses on significant impaired exposures 
individually and without the use of modelled inputs. By significant meant that the 
borrower’s or limit group’s total credit limit is SEK 50m or higher. The credit impairment 
provisions for these exposures are established using the discounted expected cash 
flows and considering a min which is a loss outcome. The possible outcomes consider 
both macroeconomic and non–macroeconomic (borrower–specific) scenarios. The 
estimation of future cash flows takes into account a range of relevant factors such as 
the amount and sources of cash flows, the level and quality of the borrower’s earnings, 
the realisable value of collateral, the Group’s position relative to other claimants, the 
likely cost and duration of the work–out process as well as current and future economic 
conditions. 
IFRS 9 vs Regulatory capital framework
The measurement of expected credit losses according to IFRS 9 is different to the 
expected loss calculation for regulatory purposes. Although Swedbank’s regulatory 
IRB models serve as a base for the IFRS 9 expected credit loss models, adjustments are 
made and, in some instances, separate models are used in order to meet the objectives 
of IFRS 9. The main differences are summarised in the table below:
2019
Scenario 
Credit impair-
ment provisions 
resulting from 
the scenario 
Difference from 
the recognised 
probability– 
weighted credit 
impairment 
provisions, %
Business area
Swedish Banking
Downside scenario
1 816 
20%
Upside scenario
1 347 
–11%
Baltic Banking
Downside scenario
 868 
36%
Upside scenario
 533 
–16%
LC&I
Downside scenario
6 616 
30%
Upside scenario
2 798 
–45%
Group
Downside scenario
9 300 
28%
Upside scenario
4 678 
–36%
2018
Scenario 
Credit impair-
ment provisions 
resulting from 
the scenario 
Difference from 
the recognised 
probability-
weighted credit 
impairment 
provisions as, %
Business area
Swedish Banking
Downside scenario
2 076 
13%
Upside scenario
1 424 
–22%
Baltic Banking
Downside scenario
 884 
35%
Upside scenario
 563 
–14%
LC&I
Downside scenario
5 657 
43%
Upside scenario
2 512 
–36%
Group
Downside scenario
8 617 
34%
Upside scenario
4 499 
–30%

71
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2019
Note
Sweden
Estonia
Latvia
Lithuania
Norway
Denmark
Finland
USA
Other
Total
Assets
Cash and balances with central 
banks
30 805
23 827
20 798
42 996
1 007
87
56 771
18 908
87
195 286
Treasury bills and other bills eligible 
for refinancing with central banks
GG2
132 729
795
2 441
205
 
924
137 094
Swedish central bank
 
Governments
 
128 792
795
2 441
60
924
133 012
Municipalities
 
3 937
3 937
Other
 
145
145
Loans to credit institutions
G22
39 107
2 139
746
1 240
93
25
6
105
1 991
45 452
Banks
 
20 627
2 139
746
1 240
93
25
6
105
1 151
26 132
Other credit institutions
 
18 471
 
 
 
 
 
 
 
840
19 311
Repurchase agreements, banks1
 
9
 
 
 
 
 
 
 
 
9
Repurchase agreements, other 
credit institutions1
 
 
 
 
 
 
 
 
 
Loans to the public
G23
1 395 563
86 081
37 176
62 287
50 707
2 202
15 344
1 722
1 214
1 652 296
Swedish National Debt Office
 
4
 
 
 
 
 
 
 
 
4
Repurchase agreements, Swedish 
National Debt Office1
9 725
 
 
 
 
 
 
 
 
9 725
Repurchase agreements, other 
public1
31 706
 
 
 
5 236
 
 
 
 
36 942
Real Estate Residential
 
957 219
37 749
15 783
34 202
1 430
1 046 383
Real Estate Commercial
 
163 887
18 580
8 317
10 275
2 900
385
204 344
Guarantees
 
25 783
2 965
727
1 998
320
241
280
1 177
33 491
Received cash 
 
7 385
170
377
596
28
8 556
Other collateral
 
119 333
16 107
7 409
10 131
7 228
149
83
160 440
Unsecured2
 
80 521
10 510
4 563
5 085
34 995
238
15 103
1 359
37
152 411
Bonds and other interest-bearing 
securities
G24
41 016
67
16
85
5 036
958
5 555
2 130
2 504
57 367
Mortgage institutions
 
26 556
26 556
Banks
 
1 450
27
4 181
185
2 922
1 130
1 564
11 459
Other financial companies
 
8 860
4
6
24
8 894
Non-financial companies
 
4 150
36
16
85
855
773
2 633
994
916
10 458
Derivatives
G28
13 288
84
47
137
2 537
998
3 286
136
23 911
44 424
Other financial assets
G32, 
G33
2 540
797
551
316
4 188
7
267
30
108
8 804
 
Contingent liabilities and 
­commitments
 
Guarantees
 
35 339
2 513
745
1 123
5 136
262
349
6 521
47
52 035
Commitments
 
214 454
9 094
6 327
9 705
24 670
 
23 256
695
259
288 460
Total
 
1 904 841
124 602
67 201
120 330
93 579
4 539
104 834
30 247
31 045
2 481 218
% of total
77
5
3
5
4
0
4
1
1
100
1) Fair value of received securities in repurchase agreements covers the carrying amount of the repurchase agreements.
2) ”Unsecured” includes both unsecured lending and the unsecured share of the loans where collateral does not cover the exposure in full.
Maximum credit risk exposure, geographic distribution 
The following tables presents the Group’s maximum credit risk exposure, before taking account of any collateral held, by geography and type of counterparty (for loans to the 
public – type of collateral). For financial assets recognised on the balance sheet, the maximum exposure to credit risk equals their carrying amount; for financial guarantees and 
similar contracts granted, it is the maximum amount that would have to be paid if the guarantees were called upon. For loan commitments and other credit–related commitments, 
it is generally the full amount of the committed facilities.
Derivatives, netting gains and collateral held 2019
Positive fair value of contracts, balance sheet
Sweden
Estonia
Latvia
Lithuania
Norway
Denmark
Finland
USA
Other
Total
13 288
84
47
137
2 537
998
3 286
136
23 911
44 424
Netting agreements, related amount not offset in the 
balance sheet
3 034
 
 
 
739
917
1 557
75
9 016
15 338
Credit exposure, after offset of netting agreements
10 253
84
47
137
1 798
82
1 729
60
14 895
29 086
Collateral held1
655
 
 
 
654
33
115
28
10 419
11 904
Net credit exposures after collateral held
9 598
84
47
137
1 144
49
1 614
32
4 475
17 182
1) Collateral consist of cash 99,9% and AAA rated bonds by Standard & Poor’s 0,1%
Credit derivatives are used in customer trading but also to optimise the credit risk in trading portfolios with interest–bearing securities. The nominal amount of these credit
derivatives at the year–end were SEK 522m (0).

72
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2018
Note
Sweden
Estonia
Latvia
Lithuania
Norway
Denmark
Finland
USA
Other
Total
Assets
Cash and balances with central banks
4 595
23 197
21 885
37 108
795
61
49 222
26 228
70
163 161
Treasury bills and other bills eligible for 
­refinancing with central banks
G21
93 637
 
776
1 746
1 797
572
 
 
1 051
99 579
Swedish central bank
 
 
 
 
 
 
 
 
 
 
 
Governments
 
88 830
 
776
1 746
1 797
572
 
 
1 051
94 772
Municipalities
 
4 806
 
 
 
 
 
 
 
 
4 806
Other
 
1
 
 
 
 
 
 
 
 
1
Loans to credit institutions
G22
31 696
2 601
1 038
1 619
55
0
11
146
–896
36 268
Banks
 
14 489
2 601
1 038
1 619
54
0
11
146
–2 310
17 646
Other credit institutions
 
17 116
 
 
 
 
 
 
 
1 415
18 530
Repurchase agreements, banks1
 
–1
 
 
 
1
 
 
 
 
 
Repurchase agreements, other credit institutions1
 
92
 
 
 
 
 
 
 
 
92
Loans to the public
G23
1 384 167
79 819
34 827
54 501
53 010
3 137
13 268
1 992
2 647
1 627 368
Swedish National Debt Office
 
10 152
 
 
 
 
 
 
 
 
10 152
Repurchase agreements, Swedish National  
Debt Office1
2 436
 
 
 
 
 
 
 
 
2 436
Repurchase agreements, other public1
34 265
 
 
 
3 013
 
 
 
 
37 278
Real Estate Residential
 
942 278
34 668
14 772
29 264
 
1 402
 
 
 
1 022 384
Real Estate Commercial
 
160 146
18 091
7 940
9 265
3 362
1 339
 
 
 
200 143
Guarantees
 
29 282
2 614
541
1 331
371
 
207
538
858
35 742
Received cash 
 
8 015
223
437
519
33
 
 
 
 
9 227
Other collateral
 
118 337
14 777
7 099
8 840
8 106
369
 
211
 
157 739
Unsecured2
 
79 255
9 446
4 038
5 282
38 125
27
13 061
1 243
1 789
152 266
Bonds and other interest-bearing securities
G24
36 048
43
30
65
5 186
1 088
4 102
2 212
4 538
53 312
Mortgage institutions
 
26 545
 
 
 
 
 
 
 
 
26 545
Banks
 
1 760
10
 
 
4 143
283
1 228
2 175
1 853
11 452
Other financial companies
 
3 833
8
 
 
 
 
 
11
130
3 982
Non-financial companies
 
3 910
25
30
65
1 043
805
2 874
26
2 555
11 333
Derivatives
G28
13 530
166
35
81
3 110
1 160
1 445
211
19 926
39 665
Other financial assets
G32, 
G33
9 030
659
738
384
2 417
2
378
24
257
13 889
 
 
 
 
 
 
 
 
 
 
 
Contingent liabilities and commitments
 
 
 
 
 
 
 
 
 
 
 
Guarantees
 
32 796
2 595
980
1 725
5 067
147
476
5 490
79
49 355
Commitments
 
209 712
9 229
7 479
9 857
24 264
 
16 191
1 269
338
278 339
Total
 1 815 211
118 309
67 787
107 086
95 701
6 167
85 093
37 571
28 010 2 360 935
% of total
77
5
3
5
4
0
4
2
1
100
1) Fair value of received securities in repurchase agreements covers the carrying amount of the repurchase agreements.
2) ”Unsecured” includes both unsecured lending and the unsecured share of the loans where collateral does not cover the exposure in full.
Derivatives, netting gains and collateral held 2018
Sweden
Estonia
Latvia
Lithuania
Norway
Denmark
Finland
USA
Other
Total
Positive fair value of contracts, balance sheet
13 530
166
35
81
3 110
1 160
1 445
211
19 926
39 665
Netting agreements, related amount not offset in the 
balance sheet
3 748
 
 
 
851
747
1 038
150
10 141
16 676
Credit exposure, after offset of netting agreements
9 782
166
35
81
2 259
414
407
60
9 785
22 989
Collateral held1
296
 
 
 
396
11
4
1
955
1 664
Net credit exposures after collateral held
9 485
166
35
81
1 863
403
403
60
8 829
21 325
1) Collateral consist of cash 91.9% and AAA rated bonds by Standard & Poor's 8.1%.

73
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Collateral that can be sold or pledged even if the counterparty fulfils its contractual obligations 
Granting repos implies that the Group receives securities that can be sold or pledged. The fair value of these securities covers the carrying amount of the repos. The Group also 
receives collateral in terms of securities that can be sold or pledged for derivatives and other exposures. The fair value of such collateral as of year end amounted to SEK 13m  
(414). None of this collateral had been sold or repledged as of year end.
1) Loans to the public excluding the Swedish National Debt Office and repurchase agreements.
2) “Unsecured” Includes both unsecured lending and the unsecured share of the loans where collateral does not cover the exposure in full.
Loans to the public1 in Stage 3 by collateral type
20191
Sweden
Estonia
Latvia
Lithuania
Norway
Denmark
Finland
USA
Other
Total
Real Estate Residential
840
5
179
406
1 430
Real Estate Commercial
346
80
9
63
96
594
Guarantees
334
45
3
1
383
Received cash 
10
1
5
11
27
Other collateral
537
42
21
116
2716
35
82
3 549
Unsecured2
220
145
38
17
2307
22
1
7
2757
20181
Sweden
Estonia
Latvia
Lithuania
Norway
Denmark
Finland
USA
Other
Total
Real Estate Residential
832
166
229
473
 
 
 
 
 
1 700
Real Estate Commercial
324
93
10
132
112
 
 
 
 
671
Guarantees
268
22
3
1
 
 
 
 
 
294
Received cash
9
3
6
12
 
 
 
 
 
30
Other collateral
444
160
18
56
3 351
119
 
72
 
4 220
Unsecured2
203
22
35
37
230
 
 
 
 
527
1) Loans to the public excluding the Swedish National Debt Office and repurchase agreements.
2) ”Unsecured” includes both unsecured lending and the unsecured share of the loans where collateral does not cover the exposure in full.

74
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Gross carrying amount by credit risk rating
The tables below present the credit quality, gross carrying or nominal amount of financial instruments and stage, where the financial instruments are subject to the IFRS 9 
 impairment requirements. The associated credit impairment provisions are also presented. 
2019
Not credit–impaired
Credit–impaired
Total
Stage 1
Stage 2
Stage 3
Purchased or 
Originated 
Cash and balances with central banks
Low risk
195 286
195 286
Total
195 286
195 286
Treasury bills and other bills eligible for refinancing with central banks
Low risk
120 574
120 574
Total
120 574
120 574
Loans to credit institutions
Low risk
43 757
8
43 765
Normal risk
1 403
17
1 420
Augmented risk
213
19
232
Non-rated exposures
30
30
Credit impairment provision
–4
-1
–5
Total
45 369
74
45 443
Loans to the public
Low risk
1 272 603
14 052
85
2
1 286 742
Normal risk
180 732
43 329
124
10
224 195
Augmented risk
32 115
29 669
128
14
61 926
High risk
4 301
18 875
467
47
23 690
Defaults
12 575
72
12 647
Non-rated exposures
2 621
264
69
2 954
Credit impairment provision
–479
–1 347
–4 848
–5
–6 679
Total
1 491 893
104 842
8 600
140
1 605 475
Bonds and other interest-bearing securities
Low risk
38
38
Total
38
38
Other financial assets
Low risk
14
1
15
Normal risk
13
2
15
Augmented risk
7
1
8
High risk
11
10
21
Defaults
7
7
Non-rated exposures
9 012
1
9 013
Credit impairment provision
–1
–3
–4
Total
9 057
14
4
9 075
Total Financial assets at amortised cost
1 862 700
106 279
13 455
145
1 982 579
Total credit impairment provisions
–483
–1 349
–4 851
–5
–6 688
Total
1 862 217
104 930
8 604
140
1 975 891

75
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2018
Not credit–impaired
Credit–impaired
Total
Stage 1
Stage 2
Stage 3
Purchased or 
Originated 
Cash and balances with central banks
Low risk
163 161
163 161
Total
163 161
163 161
Treasury bills and other bills eligible for refinancing with central banks
Low risk
80 304
80 304
Total
80 304
80 304
Loans to credit institutions
Low risk
34 981
18
34 999
Normal risk
1 103
42
1 145
Augmented risk
5
1
6
Non-rated exposures
29
29
Credit impairment provision
–2
–1
–3
Total
36 087
89
36 176
Loans to the public
Low risk
1 256 659
10 034
48
2
1 266 743
Normal risk
179 847
42 036
58
8
221 949
Augmented risk
31 125
32 942
128
16
64 211
High risk
4 635
22 258
898
49
27 840
Defaults
9 878
100
9 978
Non-rated exposures
2 432
304
54
2 790
Credit impairment provision
–490
–1 736
–3 788
–9
–6 023
Total
1 474 208
105 838
7 276
166
1 587 488
Bonds and other interest-bearing securities
Low risk
2 210
2 210
Total
2 210
2 210
Other financial assets
Low risk
82
1
83
Normal risk
15
1
16
Augmented risk
11
1
12
High risk
4
15
19
Defaults
5
5
Non-rated exposures
14 520
1
1
14 522
Credit impairment provision
–2
–3
Total
14 632
18
4
14 654
Total Financial assets at amortised cost
1 771 094
107 683
11 070
175
1 890 022
Total credit impairment provisions
–492
–1 738
–3 790
–9
–6 029
Total
1 770 602
105 945
7 280
166
1 883 993

76
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2019
Not credit–impaired
Credit–impaired
Stage 1
Stage 2
Stage 3
Total
Low risk
293 525
942
2
294 469
Normal risk
27 060
5 316
6
32 382
Augmented risk
4 599
3 309
1
7 909
High risk
1 691
1 374
103
3 168
Defaults
1 134
1 134
Non-rated exposures
384
2
386
Credit impairment provision
–113
–144
–326
–583
Total
326 762
11 181
922
338 865
2018
Not credit–impaired
Credit–impaired
Stage 1
Stage 2
Stage 3
Total
Low risk
285 378
810
286 188
Normal risk
24 212
3 255
56
27 523
Augmented risk
5 473
4 075
1
9 549
High risk
1 858
1 369
6
3 233
Defaults
739
739
Non-rated exposures
460
2
462
Credit impairment provision
–94
–208
–105
–407
Total
316 827
9 761
699
327 287
Commitments and financial guarantees

77
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2019
Non credit–impaired
Credit impaired
Stage 1 
12 month ECL
Stage 2 
Lifetime ECL
Stage 3 
Lifetime ECL
Gross 
­carrying 
amount
Impairment 
provision
Net
Gross 
carrying 
amount
Impairment 
provision
Net
Gross 
carrying 
amount
Impairment 
provision
Net
Total
Operating segments
Swedish Banking
1 126 162
147
1 126 015
68 502
599
67 903
2 882
699
2 183
1 196 101
Baltic Banking
161 990
34
161 956
22 594
193
22 401
1 589
402
1 187
185 544
Large Corporates & Institutions
203 550
298
203 252
15 093
555
14 538
9 122
3 752
5 370
223 160
Group Functions & Other
666
666
666
Loans to the public excluding the  
Swedish ­National Debt Office and 
­repurchase agreements 
1 492 368
479 1 491 889
106 189
1 347
104 842
13 593
4 853
8 740 1 605 471
Geographical distribution
Sweden
1 275 705
276
1 275 429
77 014
759
76 255
3 184
894
2 290
1 353 974
Estonia
77 783
10
77 773
8 047
57
7 990
452
134
318
86 081
Latvia
30 672
13
30 659
6 340
78
6 262
368
113
255
37 176
Lithuania
53 535
11
53 524
8 207
58
8 149
769
155
614
62 287
Norway
35 039
120
34 919
5 806
373
5 433
8 322
3 203
5 119
45 471
Denmark
2 148
 
2 148
 
 
 
202
148
54
2 202
Finland
14 610
20
14 590
775
22
753
149
148
1
15 344
USA
1 633
 
1 633
 
 
 
147
58
89
1 722
Other
1 243
29
1 214
 
 
 
 
 
 
1 214
Loans to the public excluding the  
Swedish ­National Debt Office and 
­repurchase agreements 
1 492 368
479 1 491 889
106 189
1 347
104 842
13 593
4 853
8 740 1 605 471
Sector/industry
Private customers
1 002 000
72
1 001 928
49 132
255
48 877
2 196
479
1 717
1 052 522
Mortgage loans, private
864 774
26
864 748
38 657
159
38 498
1 661
301
1 360
904 606
Tenant owner association 
95 372
6
95 366
4 131
12
4 119
126
4
122
99 607
Other, private
41 854
40
41 814
6 344
84
6 260
409
174
235
48 309
Corporate customers
490 368
407
489 961
57 057
1 092
55 965
11 397
4 374
7 023
552 949
Agriculture, forestry, fishing
56 898
14
56 884
8 304
89
8 215
199
38
161
65 260
Manufacturing
38 438
91
38 347
3 794
63
3 731
1 186
808
378
42 456
Public sector and utilities
21 901
17
21 884
850
11
839
64
14
50
22 773
Construction
15 089
13
15 076
3 929
55
3 874
511
186
325
19 275
Retail
26 241
28
26 213
5 714
236
5 478
460
225
235
31 926
Transportation
13 022
8
13 014
2 174
17
2 157
32
6
26
15 197
Shipping and offshore
10 483
28
10 455
3 982
203
3 779
6 837
2 596
4 241
18 475
Hotels och restaurants
8 208
6
8 202
1 315
27
1 288
103
21
82
9 572
Information and communications
11 002
18
10 984
1 583
61
1 522
9
2
7
12 513
Finance and insurance
16 300
10
16 290
643
2
641
12
8
4
16 935
Property management
233 217
144
233 073
20 515
244
20 271
1 454
239
1 215
254 559
Residential properties
71 810
35
71 775
7 706
100
7 606
145
49
96
79 477
Commercial
93 108
61
93 047
5 401
64
5 337
1 137
147
990
99 374
Industrial and warehouse
43 708
35
43 673
3 367
28
3 339
96
9
87
47 099
Other property management
24 591
13
24 578
4 041
52
3 989
76
34
42
28 609
Professional services
21 621
20
21 601
2 895
55
2 840
325
172
153
24 594
Other corporate lending
17 948
10
17 938
1 359
29
1 330
205
59
146
19 414
Loans to the public excluding the  
Swedish ­National Debt Office and 
­repurchase agreements 
1 492 368
479 1 491 889
106 189
1 347
104 842
13 593
4 853
8 740 1 605 471
Loans to the public, Swedish  
National Debt Office
4
 
4
 
 
 
 
 
 
4
Loans to credit institutions excluding 
­repurchase agreements
45 448
5
45 443
 
 
 
 
 
 
45 443
Loans to the public and credit institutions
1 537 820
484 1 537 336
106 189
1 347
104 842
13 593
4 853
8 740 1 650 918
Loans to the public and credit institutions, carrying amount
The following tables present loans to the public and credit institutions at amortised cost by geographical distribution and industry sectors.

78
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2018
Non credit–impaired
Credit impaired
 
Stage 1 
12 month ECL
Stage 2 
Lifetime ECL
Stage 3 
Lifetime ECL
Gross 
carrying 
amount
Impairment 
provision
Net
Gross 
carrying 
amount
Impairment 
provision
Net
Gross 
carrying 
amount
Impairment 
provision
Net
Total
Operating segments
Swedish Banking
1 115 614
167
1 115 447
69 681
668
69 013
2 819
798
2 021
1 186 481
Baltic Banking
147 410
37
147 373
20 481
185
20 296
1 905
427
1 478
169 147
Large Corporates & Institutions
201 164
286
200 878
17 412
883
16 529
6 515
2 572
3 943
221 350
Group Functions & Other
357
357
357
Loans to the public excluding the ­Swedish 
National Debt Office and repurchase 
­agreements 
1 464 545
490 1 464 055
107 574
1 736
105 838
11 239
3 797
7 442 1 577 335
Geographical distribution
Sweden
1 258 703
302
1 258 401
77 616
950
76 666
3 229
1 149
2 080
1 337 147
Estonia
71 768
11
71 757
7 634
38
7 596
602
136
466
79 819
Latvia
28 797
13
28 784
5 823
81
5 742
430
129
301
34 827
Lithuania
46 845
13
46 832
7 024
66
6 958
873
162
711
54 501
Norway
37 901
93
37 808
9 087
591
8 496
5 754
2 061
3 693
49 997
Denmark
3 018
 
3 018
 
 
 
251
132
119
3 137
Finland
12 972
15
12 957
318
7
311
 
 
 
13 268
USA
1 920
 
1 920
 
 
 
100
28
72
1 992
Other
2 621
43
2 578
72
3
69
 
 
 
2 647
Loans to the public excluding the ­Swedish 
National Debt Office and repurchase 
­agreements 
1 464 545
490 1 464 055
107 574
1 736
105 838
11 239
3 797
7 442 1 577 335
Sector/industry
Private customers
976 455
76
976 379
51 735
335
51 400
2 317
485
1 832
1 029 611
Mortgage loans, private
830 234
31
830 203
44 054
232
43 822
1 869
316
1 553
875 578
Tenant owner association 
104 321
8
104 313
2 537
15
2 522
64
4
60
106 895
Other, private
41 900
37
41 863
5 144
88
5 056
384
165
219
47 138
Corporate customers
488 090
414
487 676
55 839
1 401
54 438
8 922
3 312
5 610
547 724
Agriculture, forestry, fishing
58 495
17
58 478
8 617
109
8 508
173
31
142
67 128
Manufacturing
38 391
70
38 321
4 919
191
4 728
359
145
214
43 263
Public sector and utilities
18 663
14
18 649
947
11
936
62
14
48
19 633
Construction
16 211
15
16 196
3 883
66
3 817
110
22
88
20 101
Retail
25 448
30
25 418
5 107
117
4 990
792
510
282
30 690
Transportation
14 885
12
14 873
1 468
15
1 453
38
8
30
16 356
Shipping and offshore
12 270
40
12 230
6 444
445
5 999
5 587
2 021
3 566
21 795
Hotels och restaurants
7 512
6
7 506
1 065
18
1 047
84
8
76
8 629
Information and communications
11 407
16
11 391
2 117
95
2 022
154
124
30
13 443
Finance and insurance
14 239
8
14 231
537
3
534
16
8
8
14 773
Property management
227 851
142
227 709
15 765
262
15 503
830
214
616
243 828
Residential properties
67 383
31
67 352
6 035
68
5 967
273
81
192
73 511
Commercial
90 392
66
90 326
4 477
46
4 431
409
103
306
95 063
Industrial and warehouse
45 630
31
45 599
1 702
20
1 682
105
16
89
47 370
Other property management
24 446
14
24 432
3 551
128
3 423
43
14
29
27 884
Professional services
26 098
25
26 073
3 427
44
3 383
442
137
305
29 761
Other corporate lending
16 620
19
16 601
1 543
25
1 518
275
70
205
18 324
Loans to the public excluding the ­Swedish 
National Debt Office and repurchase 
­agreements
1 464 545
490 1 464 055
107 574
1 736
105 838
11 239
3 797
7 442 1 577 335
Loans to the public, Swedish National  
Debt Office
10 153
 
10 153
 
 
 
 
 
 
10 153
Loans to credit institutions excluding 
­repurchase agreements
36 179
3
36 176
 
 
 
 
 
 
36 176
Loans to the public and credit institutions
1 510 877
493 1 510 384
107 574
1 736
105 838
11 239
3 797
7 442 1 623 664
Concentration risk, customer exposure
At end of 2018 and 2019, the Group did not have any exposures against individual counterparties that exceeded 10 per cent of the capital base.

79
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Loans to credit institutions
Non Credit-Impaired
Credit-Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Opening balance 1 January 2019
36 089
90
36 179
Closing balance 31 December 2019
45 373
75
45 448
Credit impairment provisions
Opening balance 1 January 2019
2
1
3
Movements affecting Credit impairments
New and derecognised financial assets, net
1
1
Changes in macroeconomic scenarios
1
1
Total
2
2
Movements recognised outside Credit impairments
Closing balance 31 December 2019
4
1
5
Carrying amount
Opening balance 1 January 2019
36 087
89
36 176
Closing balance 31 December 2019
45 369
74
45 443
Reconciliations of credit impairment provisions, Group
The tables below provide reconciliations of credit impairment provisions for loans to credit institutions at amortised cost, loans to the public at amortised cost as well 
as ­commitments and financial guarantees. Stage transfers are reflected as taking place at the end of the reporting period.
Loans to credit institutions
Non Credit–Impaired
Credit–Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Opening balance 1 January 2018
29 079
1 452
30 531
Closing balance 31 December 2018
36 089
90
36 179
Credit impairment provisions
Opening balance 1 January 2018
9
14
23
Movements affecting Credit impairments
New and derecognised financial assets, net
–1
–9
–10
Changes in risk factors (EAD, PD, LGD)
–3
–3
–6
Changes in macroeconomic scenarios
–3
–1
–4
Total
–7
–13
–20
Movements recognised outside Credit impairments
Closing balance 31 December 2018
2
1
3
Carrying amount
Opening balance 1 January 2018
29 070
1 438
30 508
Closing balance 31 December 2018
36 087
89
36 176

80
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Loans to the public
Non Credit–Impaired
Credit–Impaired
SEKm
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Opening balance 1 January 2019
1 474 698
107 574
11 239
1 593 511
Closing balance 31 December 2019
1 492 372
106 189
13 593
1 612 154
Credit impairment provisions
Opening balance 1 January 2019
490
1 736
3 797
6 023
Movements affecting Credit impairments
New and derecognised financial assets, net
41
–218
–813
–990
Changes in risk factors (EAD, PD, LGD)
5
–321
60
–256
Changes in macroeconomic scenarios
5
63
–3
65
Changes due to expert credit judgement (manual adjustments and individual assessments)
196
196
Stage transfers
–65
58
1 550
1 543
from stage 1 to stage 2
–86
367
281
from stage 1 to stage 3
–11
197
186
from stage 2 to stage 1
32
–109
–77
from stage 2 to stage 3
–218
1 429
1 211
from stage 3 to stage 2
18
–68
–50
from stage 3 to stage 1
–8
–8
Other
–149
–149
Total
–14
–418
841
409
Movements recognised outside Credit impairments
Business disposal
–2
–5
–3
–10
Interest
149
149
Change in exchange rates
5
34
69
108
Closing balance 31 December 2019
479
1 347
4 853
6 679
Carrying amount
Opening balance 1 January 2019
1 474 208
1 058 38
7 442
1 587 488
Closing balance 31 December 2019
1 491 893
104 842
8 740
1 605 475

81
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Loans to the public 
Non Credit–Impaired
Credit–Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Opening balance 1 January 2018
1 386 090
118 774
10 194
1 515 057
Closing balance 31 December 2018
1 474 698
107 574
11 239
1 593 511
Credit impairment provisions
Opening balance 1 January 2018
390
2 126
2 861
5 378
Movements affecting Credit impairments
New and derecognised financial assets, net
102
–148
–190
–236
Changes in risk factors (EAD, PD, LGD)
175
–73
–159
–57
Changes in macroeconomic scenarios
–2
–45
13
–34
Changes due to expert credit judgement (manual adjustments and individual assessments)
503
503
Stage transfers
–184
–223
623
216
from stage 1 to stage 2
–150
470
320
from stage 1 to stage 3
–65
78
13
from stage 2 to stage 1
29
–131
–102
from stage 2 to stage 3
–573
665
92
from stage 3 to stage 2
11
–78
–67
from stage 3 to stage 1
2
–42
–40
Other
–4
–110
–114
Total
87
–489
680
278
Movements recognised outside Credit impairments
Interest
114
114
Change in exchange rates
13
99
141
253
Closing balance 31 December 2018
490
1 736
3 797
6 023
Carrying amount
Opening balance 1 January 2018
1 385 699
116 647
7 332
1 509 679
Closing balance 31 December 2018
1 474 208
105 838
7 442
1 587 488

82
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Commitments and financial guarantees
Non Credit–Impaired
Credit–Impaired
SEKm
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Nominal amount
Opening balance 1 January 2019
316 921
9 969
804
327 694
Closing balance 31 December 2019
326 875
11 325
1 248
339448
Credit impairment provisions
Opening balance 1 January 2019
94
208
105
407
Movements affecting Credit impairments
New and derecognised financial assets, net
20
–21
5
4
Changes in risk factors (EAD, PD, LGD)
–9
–76
–16
–101
Changes in macroeconomic scenarios
12
20
32
Changes due to expert credit judgement (manual adjustments and individual assessments)
122
122
Stage transfers
–7
6
106
105
from stage 1 to stage 2
–9
30
21
from stage 1 to stage 3
27
27
from stage 2 to stage 1
2
–11
–9
from stage 2 to stage 3
–14
81
67
from stage 3 to stage 1
1
1
Total
16
–71
217
162
Movements recognised outside Credit impairments line
Change in exchange rates
3
7
4
14
Closing balance 31 December 2019
113
144
326
583
Commitments and financial guarantees
The following tables presents a reconciliation of the nominal amount and credit impairment provisions for commitments and financial guarantees.
Commitments and financial guarantees
Non Credit–Impaired
Credit–Impaired
SEKm
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Nominal amount
Opening balance 1 January 2018
292 854
13 390
733
306 977
Closing balance 31 December 2018
316 921
9 969
804
327 694
Credit impairment provisions
Opening balance 1 January 2018
117
261
267
645
Movements affecting Credit impairments
New and derecognised financial assets, net
7
–78
–1
–72
Changes in risk factors (EAD, PD, LGD)
–11
34
–39
–16
Changes in macroeconomic scenarios
–12
–11
–23
Changes due to expert credit judgement (manual adjustments and individual assessments)
–167
–167
Stage transfers
–11
–16
26
–1
from stage 1 to stage 2
–16
46
30
from stage 1 to stage 3
–1
1
from stage 2 to stage 1
6
–35
–29
from stage 2 to stage 3
–27
27
from stage 3 to stage 2
–1
–1
from stage 3 to stage 1
–1
–1
Other
1
1
Total
–27
–70
–181
–278
Movements recognised outside Credit impairments
Change in exchange rates
4
17
19
40
Closing balance 31 December 2018
94
208
105
407

83
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Loans to the public and credit institutions, Swedish banking
Non Credit–Impaired
Credit–Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Closing balance as of 31 December 2018
1 116 873
69 624
3 065
1 189 562
Movement due to reorganization between LC&I and Swedish Banking business areas
–1 072
58
–246
–1 260
Opening balance 1 January 2019
1 115 801
69 682
2 819
1 188 302
Closing balance 31 December 2019
1 126 499
68 506
2 882
1 197 887
Credit impairment provisions
Closing balance as of 31 December 2018
167
665
926
1 758
Movement due to reorganization between LC&I and Swedish Banking business areas
3
–128
–125
Opening balance 1 January 2019
167
668
798
1 633
New and derecognised financial assets, net
16
–45
–300
–329
Changes in risk factors (EAD, PD, LGD)
25
–195
27
–143
Changes in macroeconomic scenarios
–10
–10
–3
–23
Changes due to expert credit judgement (manual adjustments and individual assessments)
22
22
Stage transfers
10
–10
Remeasurement of provisions due to stage transfers, net
–59
195
162
298
Disposal of subsidiary
–2
–5
–3
–10
Change in exchange rates and other
1
–4
–3
Closing balance 31 December 2019
147
599
699
1 445
Carrying amount
Opening balance 1 January 2019
1 115 634
69 017
1 893
1 186 544
Closing balance 31 December 2019
1 126 352
67 907
2 183
1 196 442
Loans to the public and credit institutions, Swedish banking
Non Credit–Impaired
Credit–Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Opening balance 1 January 2018
1 086 163
62 632
2 829
1 151 624
Closing balance 31 December 2018
1 116 873
69 624
3 065
1 189 562
Credit impairment provisions
Opening balance 1 January 2018
146
500
747
1 393
New and derecognised financial assets, net
36
5
–192
–151
Changes in risk factors (EAD, PD, LGD)
87
31
5
123
Changes in macroeconomic scenarios
14
32
11
57
Changes due to expert credit judgement (manual adjustments and individual assessments)
202
202
Stage transfers
–29
–98
127
Remeasurement of provisions due to stage transfers, net
–88
193
26
131
Change in exchange rates and other
1
2
3
Closing balance 31 December 2018
167
665
926
1 758
Carrying amount
Opening balance 1 January 2018
1 086 017
62 132
2 082
1 150 231
Closing balance 31 December 2018
1 116 706
68 959
2 139
1 187 804
Reconciliations of credit impairment provisions by business area
The tables below provide reconciliations of total credit impairment provisions for loans to the public and credit institutions at amortised cost per business area. Stage transfers are 
reflected as taking place at the end of the reporting period.

84
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Loans to the public and credit institutions, Baltic Banking
Non Credit–Impaired
Credit–Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Opening balance 1 January 2019
147 429
20 487
1 905
169 821
Closing balance 31 December 2019
162 025
22 608
1 589
186 222
Credit impairment provisions
Opening balance 1 January 2019
37
185
427
649
New and derecognised financial assets, net
11
–1
–68
–58
Changes in risk factors (EAD, PD, LGD)
14
–43
2
–27
Changes in macroeconomic scenarios
–5
–2
–7
Changes due to expert credit judgement (manual adjustments and individual assessments)
7
7
Stage transfers
–10
46
–36
Remeasurement of provisions due to stage transfers, net
–13
5
63
55
Change in exchange rates and other
3
7
10
Closing balance 31 December 2019
34
193
402
629
Carrying amount
Opening balance 1 January 2019
147 392
20 302
1 478
169 172
Closing balance 31 December 2019
161 991
22 415
1 187
185 593
Loans to the public and credit institutions, Baltic Banking
Non Credit–Impaired
Credit–Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Opening balance 1 January 2018
127 697
20 150
2 661
150 508
Closing balance 31 December 2018
147 429
20 487
1 905
169 821
Credit impairment provisions
Opening balance 1 January 2018
32
257
685
974
New and derecognised financial assets, net
12
–4
–232
–224
Changes in risk factors (EAD, PD, LGD)
15
–87
–215
–287
Changes in macroeconomic scenarios
1
12
2
15
Changes due to expert credit judgement (manual adjustments and individual assessments)
140
140
Stage transfers
–8
8
Remeasurement of provisions due to stage transfers, net
–16
–5
4
–17
Change in exchange rates and other
1
12
35
48
Closing balance 31 December 2018
37
185
427
649
Carrying amount
Opening balance 1 January 2018
127 665
19 893
1 976
149 534
Closing balance 31 December 2018
147 392
20 302
1 478
169 172

85
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Loans to the public and credit institutions, LC&I
Non Credit–Impaired
Credit–Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Closing balance as of 31 December 2018
216 876
17 553
6 269
240 698
Movement due to reorganization between LC&I and Swedish Banking business areas
1 072
–58
246
1 260
Opening balance 1 January 2019
217 948
17 495
6 515
241 958
Closing balance 31 December 2019
228 698
15 150
9 122
252 970
Credit impairment provisions
Closing balance as of 31 December 2018
288
887
2 444
3 619
Movement due to reorganization between LC&I and Swedish Banking business areas
–3
128
125
Opening balance 1 January 2019
288
884
2 572
3 744
New and derecognised financial assets, net
14
–172
–445
–603
Changes in risk factors (EAD, PD, LGD)
–34
–83
31
–86
Changes in macroeconomic scenarios
21
75
96
Changes due to expert credit judgement (manual adjustments and individual assessments)
167
167
Stage transfers
20
–210
190
Remeasurement of provisions due to stage transfers, net
–13
32
1 171
1 190
Change in exchange rates and other
5
30
66
101
Closing balance 31 December 2019
301
556
3 752
4 609
Carrying amount
Opening balance 1 January 2019
217 660
16 608
4 071
238 339
Closing balance 31 December 2019
228 397
14 594
5 370
248 361
Loans to the public and credit institutions, LC&I
Non Credit–Impaired
Credit–Impaired
Stage 1
Stage 2
Stage 3, incl. 
purchased or 
originated
Total
Gross carrying amount
Opening balance 1 January 2018
177 117
37 444
4 704
219 265
Closing balance 31 December 2018
216 876
17 553
6 269
240 698
Credit impairment provisions
Opening balance 1 January 2018
214
1 383
1 430
3 027
New and derecognised financial assets, net
53
–158
234
129
Changes in risk factors (EAD, PD, LGD)
76
–20
51
107
Changes in macroeconomic scenarios
–20
–90
–110
Changes due to expert credit judgement (manual adjustments and individual assessments)
161
161
Stage transfers
–5
–380
385
Remeasurement of provisions due to stage transfers, net
–38
67
73
102
Change in exchange rates and other
8
85
110
203
Closing balance 31 December 2018
288
887
2 444
3 619
Carrying amount
Opening balance 1 January 2018
176 903
36 061
3 274
216 238
Closing balance 31 December 2018
216 588
16 666
3 825
237 079

86
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Gross carrying amount of forborne loans 2018
Sweden
Estonia
Latvia
Lithuania
Norway
Other
Total
Performing
1 409
404
373
186
4 908
114
7 394
Non-performing
534
502
433
440
5 747
100
7 756
Total
1 943
906
806
626
10 655
214
15 150
Gross carrying amount of forborne loans 2019
Sweden
Estonia
Latvia
Lithuania
Norway
Other
Total
Performing
1 030
611
447
147
740
2 975
Non-performing
218
299
359
423
5 876
147
7 322
Total
1 248
910
806
570
6 616
147
10 297
Forborne loans
Forborne loans refer to loans where the contractual terms have been changed due 
to the customer’s financial difficulties. The purpose of the forbearance measure is to 
enable the borrower to make full payments again or to avoid foreclosure, or when this 
is not considered possible, to maximise the repayment of outstanding loans. Changes 
in contractual terms include various forms of concessions such as amortisation suspen-
sions, reductions in interest rates to below market rates, forgiveness of all or part of 
the loan, or issuance of new loans to pay overdue amounts. Depending on when the 
forbearance measures are done and the severity of the financial difficulties of the 
borrower, the forborne loan could either be treated as a performing forborne loan or a 
non-performing forborne loan. The following tables show the gross carrying amounts 
of forborne loans.
Loan write–offs
Loans are written off when the loss amount is ultimately established and there are no 
realistic options of recovering. The remaining loan amount for those that are partially 
written off is still included in credit–impaired loans or forborne loans. Previous provi-
sions are reversed in connection with the write–off. The loss amount is ultimately de-
termined when a receiver has presented a bankruptcy distribution, when a bankruptcy 
settlement has been reached, when a concession has been granted, or when the Swed-
ish Enforcement Agency, or a collection company has reported that the physical person 
has no distrainable assets. A write–off normally does not mean that the claim against 
the borrower has been forgiven. Generally, a proof of claim is filed against the borrower 
or guarantor after the write–off. A proof of claim is not filed when a legal entity has 
ceased to exist due to a bankruptcy, when a bankruptcy settlement has been reached 
or when receivables have been completely forgiven. The contractual amount outstand-
ing on loans that were written off during 2019 and are still subject to enforcement 
activity is SEK 425m (389).
Climate related infomation
Below shows the part of lending to the public and credit institutions that present material climate-related risks. Groups and sectors are defined in accordance with the recommen-
dations of the Task force on Climate related Financial Disclosures (TCFD). Materiality was derived from greenhouse gas emissions, energy use and water use of various economic 
activities. Within the Transportation group, Swedbank has chosen to include manufacturing, trading and services with vehicles to capture the entire value chain. Compare with 
tables on page 77 and 78. 
TCFD material groups
Gross carrying amount
TCFD sector
Gross carrying amount
2019
2018
2019
2018
Financial Group
57 621
47 611
Credit institutions
45 457
36 268
Insurance companies
62
62
Asset owners and asset managers
12 102
11 281
Energy Group
27 985
27 342
Oil & Gas
17 132
17 180
Coal
0
0
Utilities
10 853
10 162
Transportation Group
37 837
41 679
Air transport
363
498
Shipping
12 917
15 460
Rail transportation
373
836
Trucks, busses and working machines
18 325
19 092
Automobiles and components
5 860
5 792
Agriculture, Food and Forest products Group
66 261
66 211
Agriculture
38 002
39 141
Beverages, Packaged food and Meats
4 163
3 878
Forestry
18 447
18 262
Paper & Forest products
5 649
4 929
Materials and Buildings Group
387 232
381 226
Metals & Mining
3 847
3 287
Chemicals
7 283
6 349
Construction materials (excl wood)
3 112
2 773
Capital Goods
3 599
4 464
Real Estate management and development
369 390
364 353
Total TCFD portfolio
576 937
564 068
Total TCFD portfolio
576 937
564 068

87
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The Group takes over properties aiming at recovering, to the extent possible, cash flow from defaulted loans, thereby minimising credit impairments. This is expected to be done 
through active asset management and other value–creation measures. The aim is also to minimise the cost of ownership while the repossessed property is held. The internal  
assumptions in the calculation of the fair values are considered of such significance that the appraisal is attributed to level three in the hierarchy of fair value.
3.2 Assets taken over for protection of claims and cancelled leases
Capital requirement for credit risks
The capital requirement for credit risks in Swedbank (consolidated situation) on 31 December 2019 amounted to SEK 25 220m (25 072). 
For more information, see note G4 Capital.
2019
2018
Number
Carrying 
amount, over-
taken during 
2018
Carrying 
amount
Fair value
Number
Carrying 
amount, over-
taken during 
2017
Carrying 
amount
Fair value
Buildings and land
26
2
72
74
110
70
126
164
Other
69
10
55
57
65
2
81
115
Total
95
12
127
131
175
72
207
279
2019
Loans gross carrying amount
% av total TCFD sector
Manufacturing 
43 418
– of which TCFD:
36 011
 Air transportation
4
1
 Automobiles and components
512
9
 Beverages, Packaged foods and Meats
4 163
100
 Capital goods
3 599
100
 Chemicals
7 283
100
 Construction materials
3 112
100
 Metals & Mining
3 847
100
 Oil & gas
5 510
32
 Paper & Forest products
5 649
100
 Rail transportation
24
7
 Trucks, bus and working machines
2 306
13
TCFD’s way of grouping economic activities differs significantly from Swedbank´s traditional sectoral classification. The manufacturing sector, for example, in TCFD reporting is 
divided into several sectors that are found in all groups except Finance, see the table below.

88
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
DEFINITION
Liquidity risk refers to the risk that the Group will not be able to meet its payment 
obligations at maturity.
The Board of Directors determines the Group’s overall risk appetite for liquidity 
and has therefore established limits for the Survival Horizon as well as a limit on the 
minimum of unutilised capacity in the cover pool for issuance of covered bonds (Over 
Collateralisation, OC). The CEO is responsible for ensuring that the operations stay 
within the risk appetite and, due to that, more granular CEO limits have been defined 
and established. To ensure that the operations can be monitored on a daily basis in 
terms of the risk appetite and CEO limits, these limits have been complemented by 
limits set by the Chief Risk Officer.
Responsibility for managing and controlling the Group’s liquidity rests within Group 
Treasury. Group Risk works independently to identify all relevant aspects of liquidity 
risk and is responsible for independent control, measurement and monitoring of risks.
Financing and liquidity strategy
Swedbank’s funding strategy is based on the composition of the assets. More than half 
of the lending consists of Swedish mortgages, which are primarily funded with covered 
bonds. Swedbank is the savings leader in its home markets. Deposit volumes, together 
with covered bonds and shareholders’ equity, cover nearly all its funding requirements. 
As a result, Swedbank has a limited structural need for senior unsecured funding. The 
funding strategy is also closely linked to the credit quality of the assets in the balance 
sheet. Swedbank aims to match unsecured funding against assets with corresponding 
amounts and maturities.
The share of unsecured funding is determined by Swedbank’s aim to maintain a stable 
funding profile by a diversified set of funding sources as well as for complying with the 
MREL requirements.
Swedbank uses a number of different funding programmes to meet its short– and 
long–term needs e.g. commercial paper, certificates of deposit, covered bonds and 
unsecured funding.
For information regarding Swedbank’s distribution of liabilities and encumbered 
assets, see the Group’s Pillar 3 report.
Liquidity reserve
Swedbank has established and maintains a liquidity reserve to reduce the Group’s 
liquidity risk. When future refinancing needs are high, the liquidity reserve must be 
adjusted to meet maturities in various types of stressed scenarios where, for instance, 
markets are fully or partly closed for new issues over an extended period of time.
Liquidity Reserve1
Level 1 assets
373 730
Cash and balances with central banks2
195 284
 Securities issued or guaranteed by sovereigns, central banks, MDBs and international organisations
132 647
 Securities issued by municipalites and PSEs
4 081
 Extremely high quality covered bonds
41 717
Level 2 assets
5 972
Level 2A assets
5 967
 High quality covered bonds
5 967
Level 2B assets
5
 Corporate debt securities (rated A+ to BBB-)
5
Total
379 702
1) Unadjusted Liquid Assets classified in accordance with Commission Delegated Regulation (EU 2015/61).
2) Minimum reserve requirements held in the Central Bank of Estonia, Latvia, Lithuania and Bank of Finland are excluded from Liquidity Reserve.
3.3 Liquidity risk

89
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Summary of maturities
In the summary of maturities, undiscounted contractual cash flows are distributed on 
the basis of remaining maturities until the agreed time of maturity. For lending to the 
public, amortising loans are distributed based on amortisation schedules. Liabilities 
whose contracts contain a prepayment option have been distributed based on the 
earliest date on which repayment can be demanded. The difference between the 
nominal amount and carrying amount, the discount effect, is presented in the column 
“No maturity date/discount effect”. This column also includes items without an agreed 
maturity date and where the anticipated repayment date has not been determined.
Undiscounted contractual cash flows
Remaining maturity 2019
Payable on 
demand
< 3 mths.
3 mths.—1 yr
1—5 yrs
5—10 yrs
> 10 yrs
No maturity/ 
discount 
effect
Total
Assets
Cash and balances with central banks
195 286
195 286
Treasury bills and other bills eligible for refinancing  
with central banks
124 428
5 379
3 746
2 505
634
402
137 094
Loans to credit institutions
4 856
21 218
4 791
13 165
380
1 042
45 452
Loans to the public
568
112 199
143 993
352 923
147 406
911 694
–16 487
1 652 296
Bonds and other interest-bearing securities
5 022
15 144
35 807
2 680
127
–1 383
57 367
Financial assets for which the customers bear the investment risk
5 573
40 922
3 145
20 676
30 046
92 586
31 945
224 893
Shares and participating interests
13 247
13 247
Derivatives
11 543
11 435
19 224
1 742
480
44 424
Intangible fixed assets
17 864
17 864
Tangible assets
5 572
5 572
Other assets
11 877
2 580
3
273
14 733
Total
206 283
327 209
186 437
445 544
184 759 1 006 083
51 913
2 408 228
Liabilities
Amounts owed to credit institutions
29 188
37 319
3 071
108
69 686
Deposits and borrowings from the public
887 131
40 861
24 505
1 419
87
10
954 013
Debt securities in issue
88 344
213 236
490 679
51 090
20 967
–8 562
855 754
Financial liabilities where customers bear the investment risk
2 905
71 100
3 304
21 721
31 767
94 995
225 792
Derivatives
10 578
6 939
10 215
992
343
11 910
40 977
Other liabilities
63 468
1 563
5 073
3 644
7 124
–238
80 634
 of which lease liability
215
470
1 745
1 016
449
–236
3 659
Senior non-preferred liabililties
265
10 472
209
–141
10 805
Subordinated liabilities
6 990
24 139
427
378
31 934
Equity
138 633
138 633
Total
919 224
318 660
252 883
563 826
88 007
123 648
141 980
2 408 228
The large part of deposits from the public is contractually payable on demand. Despite the contractual terms, the deposits are essentially a stable and  
a long-term source of funding.
Undiscounted contractual cash flows
Remaining maturity 2018
Payable on 
demand
< 3 mths.
3 mths.—1 yr
1—5 yrs
5—10 yrs
> 10 yrs
No maturity/ 
discount 
effect
Total
Assets
Cash and balances with central banks
163 161
163 161
Treasury bills and other bills eligible for refinancing  
with central banks
80 762
2 503
10 756
1 757
942
2 859
99 579
Loans to credit institutions
12 508
2 975
6 839
12 240
772
934
36 268
Loans to the public
79 387
140 867
350 571
138 531
900 238
17 774
1 627 368
Bonds and other interest-bearing securities
7 198
10 780
30 320
3 860
138
1 016
53 312
Financial assets for which the customers bear the investment risk
33 938
2 303
16 317
22 263
72 171
30 876
177 868
Shares and participating interests
11 009
11 009
Derivatives
9 477
9 477
18 726
1 709
276
39 665
Intangible fixed assets
17 118
17 118
Tangible assets
1 966
1 966
Other assets
15 725
2 230
56
767
18 778
Total
175 669
229 462
174 999
438 986
168 892
974 423
83 661
2 246 092
Liabilities
Amounts owed to credit institutions
35 987
20 639
294
298
57 218
Deposits and borrowings from the public
874 723
23 491
20 907
1 496
114
19
920 750
Debt securities in issue
100 930
96 873
557 060
39 957
24 223
–14 683
804 360
Financial liabilities where customers bear the investment risk
58 966
2 441
17 178
23 608
74 127
2 342
178 662
Derivatives
5 529
4 577
10 098
931
304
9 877
31 316
Other liabilities
71 332
1 940
2 791
1 930
4 000
81 993
Subordinated liabilities
7 700
111
25 760
406
207
34 184
Equity
137 609
137 609
Total
910 710
288 587
127 143
614 681
66 946
102 673
135 352
2 246 092
The large part of deposits from the public is contractually payable on demand. Despite the contractual terms, the deposits are essentially a stable and  
a long-term source of funding.

90
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Risk measurement
Group Risk is responsible for defining independent methods to measure the Group’s li-
quidity risk as well as for reviewing and approving methods defined by Group Treasury. 
All liquidity risk is identified and measured. Swedbank uses a range of risk measures 
to capture different perspectives of the liquidity risk profile. A number of liquidity risk 
measures allows to assess short-term liquidity risks, including intraday, as well as the 
long-term structural liquidity risks, both under a normal and stressed assumptions. 
The liquidity metrics are either defined internally or developed based on the external 
regulatory requirements.
As part of the Group’s ERM policy, a Survival Horizon limit is established. The limit 
represents the number of days with a positive cumulative net cash flow, taking 
into account future cash flows. Cash flows from liquid assets are modelled based on 
conservative estimates of when, at the earliest, they could occur. The risk measure is 
conservative in the sense that it assumes that there is no access to the funding mar-
kets and that there are large outflows of deposits from the bank’s customers within 
a short period of time.
Moreover, Swedbank calculates and monitors the Group’s liquidity risk with a num-
ber of different risk measures such as Liquidity Coverage Ratio (LCR) and Net Stable 
Funding Ratio (NSFR). The purpose of LCR is to ensure that Swedbank has enough 
unpledged assets of high quality (a liquidity reserve) to meet its liquidity needs in 
stressed situations during the next 30 days.
The NSFR indicates a bank’s ability to manage stressed situations over a one-year 
horizon. The NSFR ensures that a bank’s illiquid long-term assets are financed with 
a minimum level of stable long-term funding. A NSFR of over 100 per cent means that 
long-term illiquid assets are, to a satisfactory degree, financed by stable long-term 
funding. As a complement to regulatory measures, Swedbank publishes the ratio of 
the size of its liquid assets to maturing funding, given various maturities. A ratio larger 
than 100 per cent indicates that the liquid assets exceed the amount of future maturi-
ties during a given time period.
To identify and act on increased liquidity risks as early as possible, Swedbank uses 
a number of forward-looking risk indicators, such as volatilities in selected market 
prices and price discrepancies between various financial instruments. These indicators 
provide signals regarding increased stress in the financial markets and hence increased 
liquidity risks. Swedbank has developed special continuity plans to manage the effects 
that would arise in the event of serious market disruptions. These plans are in place 
both on a Group level and at a local level in the countries where Swedbank operates.
Stress tests
Stress tests are conducted regularly to increase preparedness for possible disrup-
tions in the financial markets. These stress tests focus on both Swedbank-specific and 
market-related disruptions. These analyses also take into account the combined effects 
that would occur if all these disruptions would occur at the same time.
In the scenarios, a number of the risk drivers underlying the Survival Horizon are 
stressed to levels that are unlikely, but not inconceivable. Examples include large-scale 
withdrawals from deposit accounts, high utilisation of credit facilities and increased 
collateral requirements for various purposes. In addition, the scenario assumes that 
Swedbank’s liquidity reserve decreases in value, as will the properties that serve as 
collateral for the loans in the mortgage operations. The latter risk driver impacts Swed-
bank’s ability to issue covered bonds, which are of strategic importance to its funding. 
Finally, it is assumed that access to capital markets dries up, but that Swedbank’s liquid 
assets can still generate liquidity.
The table below provides a snapshot of the cover pool as of 31 December 2019 
(“Current”) and illustrates the effects on Swedbank Mortgage’s OC given various price 
declines of the mortgages in the pool which could occur over a period of time. The 
more prices fall, the more difficult it becomes to issue bonds. Swedbank’s ERM Policy 
stipulates that the cover pool must have an OC level that ensures that the highest 
rating from at least one rating agency and the compliance with the legal requirements 
is maintained in a scenario where house prices fall by 20 per cent. The purpose of the 
level is to ensure that there is sufficient cover to protect investors even if house prices 
should fall substantially.
Cover pool sensitivity analysis, house price decline
2019
House price decline
Current
–5%
–10%
–15%
–20%
–25%
–30%
–35%
–40%
Total assets in the cover pool, SEKbn
990
985
975
962
944
923
897
866
830
Total outstanding covered bonds, SEKbn
560
560
560
560
560
560
560
560
560
Over collateralisation level, %
77%
76%
74%
72%
69%
65%
60%
55%
48%
Liquidity coverage ratio1
2019
2018
High Quality Liquid Assets (HQLA), SEKbn
High quality liquid assets, Level 1
371
301
High quality liquid assets, Level 2
5
9
Total HQLA
376
310
Cash Outflows, SEKbn
Retail deposits and deposits from small business customers
43
42
Unsecured wholesale funding
152
142
Secured wholesale funding
4
7
Additional requirements
53
49
Other cash outflows
9
15
Total cash outflows
261
256
Cash Inflows, SEKbn
Secured lending
14
5
Inflows from fully performing exposures
19
16
Other cash inflows
23
19
Total Cash inflows
54
40
Liquidity coverage ratio, Total, %1
182
144
Liquidity coverage ratio, EUR,%
379
282
Liquidity coverage ratio, USD, %
157
228
Liquidity coverage ratio, SEK2, %2
111
68
1) LCR - calculated in accordance with Commission Delegated Regulation (EU) 2015/61 of October 2014.
2) There is one explicit regulation for total LCR to fulfill at least 75% in SEF and 100% in USD and EUR.
Liquidity and NSFR components
31 Dec 2019
31 Dec 2018
NSFR, %
120
119
Available stable funding (ASF), SEKbn
1 550
1 533
Required stable funding (RSF), SEKbn
1 295
1 293

91
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Capital requirement for liquidity risk
Currently banks and financial institutions are not subject to capital requirements for liquidity risk. However, disruptions to liquidity may arise due to imbalances between risk and 
capital. The purpose of the internal capital adequacy assessment process is to prevent these types of imbalances.
Issues of securities and lease liabilities
Swedbank has remained active in several capital markets to diversify its funding. In 2019, Swedbank issued a total of SEK 132bn (119) in long–term debt instruments, with 
the majority of the issues were covered bonds. To meet MREL requirement by January 2022.senior non-preferred liabilities were issued during the year.
Debts securities in issue
Turnover during the year, 2019
Commercial 
papers
Covered 
bonds
Other interest-
bearing bond 
loans
Structure 
retail bonds
Total debt 
securities in 
issue
Senior non-
preferred 
liabilities
Subordinated 
liabilities
Lease 
liabilities
Total
Opening balance
131 434
497 936
164 243
10 747
804 360
34 184
838 544
Changed accounting principle, IFRS 16
4 146
4 146
Issued/New contracts
483 569
131 039
1 036
615 644
11 266
4 909
176
631 995
Repurchased/Terminated contracs
–21 017
–21 017
–93
–21 110
Repaid
–487 865
–20 418
–42 231
–3 552
–554 066
–7 711
–752
–562 529
Interest, change in market values or hedged 
item in hedge ­accounting at fair value
140
–1 101
801
679
519
–95
39
42
505
Modifications and other
130
130
Change in exchange rates
1 494
3 188
5 632
10 314
–366
513
9
10 470
Closing balance
128 772
589 627
128 445
8 910
855 754
10 805
31 934
3 659
902 152
Debts securities in issue
Turnover during the year, 2018
Commercial 
papers
Covered 
bonds
Other interest-
bearing bond 
loans
Structure 
retail bonds
Total debt 
securities in 
issue
Senior non-
preferred 
liabilities
Subordinated 
liabilities
Lease 
liabilities
Total
Opening balance
149 974
525 038
160 348
14 849
850 209
25 864
876 073
Issued/New contracts
992 449
87 907
26 433
2 166
1 108 955
8 306
1 117 261
Repurchased
–54 078
–145
–54 223
–54 223
Repaid
–1 018 910
–62 486
–30 866
–5 040
–1 117 302
–1 559
–1 118 861
interest, change in market values or hedged 
item in hedge ­accounting at fair value
–6 446
–522
–1 227
–8 195
–18
–8 213
Change in exchange rates
7 921
8 001
8 995
–1
24 916
1 591
26 507
Closing balance
131 434
497 936
164 243
10 747
804 360
34 184
838 544

92
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Definition
Market risk refers to the risk to value, earnings, or capital arising from movements of 
risk factors in financial markets. Market risk includes interest rate risk (including real- 
and nominal interest rates, credit spreads and basis spreads), currency risk, equity risk 
(including dividend risk) and commodity risk (including precious metals), as well as risks 
stemming from changes in volatilities or correlations.
Risk management
The Group’s total risk–taking is governed by the risk appetites decided by the Board of 
Directors, which limit the nature and size of financial risk–taking. Only so–called risk–
taking units, i.e. units that have been assigned a risk limit by the CEO, are permitted 
to take market risks. To monitor the limits allocated by the CEO, the Group’s CRO has 
established limits as well as other indicators that at certain levels, indicate elevated 
risk. In addition to the CRO’s limits and selected indicators, there are local business area 
limits serving as important tools in the risk–taking units’ daily activities. The Group’s 
market risk analysis department is responsible, on a daily basis, for measuring, moni-
toring and reporting market risks within Swedbank.
The majority of the Group’s market risks is of structural or strategic nature and is 
managed primarily by Group Treasury. Structural interest rate risks are a natural part in 
a bank that manages deposits and loans. Interest rate risk arises primarily when there 
is a difference in maturity between the Group’s assets and liabilities. Group Treasury 
manages the risk within given limits, primarily by matching maturities either directly 
or through the use of various derivatives such as interest rate swaps. Interest rate 
risk also arises in the trading operations. The Group’s currency risk is comprised of 
structural currency risk in the banking operations, currency risk as a result of the trad-
ing operations, and strategic currency risk arising through the Baltic operations. Share 
price risks arise only in the trading operations. All market risks are managed within 
given limits, for example by means of forward contracts. 
Risk measurement
Swedbank uses a number of different risk measures, both statistical and non–statisti-
cal, with the purpose of guiding the Group’s risk–taking units as well as to ensure com-
pliance. Statistical measures such as Value–at–Risk (VaR) and Stressed Value–at–Risk 
(SVaR) are important tools in Swedbank’s risk management processes and are used, 
among other things, to calculate the Group’s capital requirement.
VaR implicates the use of a model to estimate a probability distribution for the 
change in value of Swedbank’s portfolios. The model is based on last year’s movements 
in various market risk factors such as interest rates and equity prices. The estimation is 
based on the hypothetical assumption that the portfolios will remain unchanged over a 
certain time horizon. The Group uses a VaR model with a confidence interval of 99 per 
cent and a time horizon of one trading day. Statistically, this means that the potential 
loss of a portfolio will exceed the VaR amount one day out of 100. VaR is a useful tool, 
not only for determining the risk level of an individual security or asset class, but also 
when it comes to comparing risk levels for example between asset classes. 
Since VaR is a model based on a number of assumptions, Swedbank evaluates the 
VaR model’s accuracy on a daily basis through backtesting. 
“Regular” VaR and Stressed VaR (SVaR) differ slightly in that the stressed model 
applies market data from a one–year period of considerable stress. The period selected 
by Swedbank covers Summer of 2008 and one year forward.
Non–statistical measures such as sensitivity analyses are important complements 
to VaR and SVaR, since these, in some cases, provide a deeper understanding of the 
market risk factors being measured.
In addition to VaR and various types of sensitivity analyses, Swedbank conducts an 
extensive array of stress tests. These tests are built on scenarios and can be divided 
into three groups: historical, forward–looking, and method– and model stress scenarios. 
The purpose of these stress tests, and the scenarios that serve as a basis for them, is to 
further identify significant movements in risk factors or losses that could arise due to 
exceptional market disruptions.
 
Risk exposure
Swedbank’s market risks primarily arise within the Group’s banking operations man-
aged by Group Treasury. Market risk is also present in the trading operations, primarily 
as a result of customer transactions executed within the business area Large Corpo-
rates & Institutions (LC&I).
Value–at–Risk (VaR)
During the year, the Group has maintained its market risks, measured in terms of VaR, 
at a stable level. The Group’s total VaR does not include strategic currency positions, 
since a VaR measure based on one trading day is not relevant to apply on positions that 
the Group intends to hold for longer periods of time.
3.4 Market risk
Jan-Dec 2019 (2018)
2019
2018
SEKm
Max
Min
Average
31 dec
31 dec
Interest rate risk
83(78)
36(38)
57(53)
58
44
Currency risk
20(22)
2(3)
7(10)
11
5
Share price risk
7(10)
1(1)
3(4)
5
3
Diversification
–8(–15)
–10
–6
Total
93(78)
38(37)
59(52)
64
46

93
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
3.4.1 Interest rate risk 
Interest rate risk refers to the risk that the value of the Group’s assets, liabilities and 
interest–related derivatives will be negatively affected by changes in interest rates or 
other relevant risk factors.
The majority of the Group’s interest rate risk is structural and arises within the bank-
ing operations when there is a mismatch between the interest fixing periods of assets 
and liabilities, including derivatives. The interest rate risk in fixed rate assets, primarily 
customer loans, accounts for the larger part of this risk and is hedged through fixed-
rate funding or by entering into various types of swap agreements. Interest rate risk 
also arises within the trading operations, e.g. through customer related activities.
An increase in all market interest rates of one percentage point would have reduced 
the value of the Group’s assets and liabilities, including derivatives, by SEK –365 m 
(–137) as of 31 December 2019. The effect on positions in SEK would have been a 
reduction of SEK –1 277 m (–1 368), while positions in foreign currency would have 
increased by SEK 912 m (1 232). 
The Group’s Net gains and losses on financial items would have been affected by SEK 
1 052 m (1 486) as of 31 December 2019. The Group uses derivatives for so-called 
cash flow hedges. A change in market interest rates, as indicated above, would affect 
the Group’s other comprehensive income by SEK 19 m (21). The market risk measure-
ment will need to adapt gradually to the expected changes related to the Interest Rate 
Benchmark reform and the new risk-free reference rates. The transition to the new 
risk-free interest rates is likely to proceed for some years. The effect on risk measure-
ments such as Value-at-Risk due to the IBOR reform is as of today hard to predict. 
Credit spread risk
For financial assets and liabilities measured at fair value within the Group’s trading 
operations and liquidity portfolio, credit spread risk is measured separately as well. 
Credit spread risk refers to the risk that the value of these assets and liabilities will 
be affected by changes in the issuer specific interest mark-up (the credit spread), for 
example the difference between a security’s interest mark-up and the current market 
rate with the corresponding maturity for an issuer. An increase in all issuer specific 
spreads of 1 basis point at year end 2019 would have reduced the value of these 
interest-bearing assets, including derivatives, by SEK 11 m (10).
Change in value if the market interest rate rises by one percentage point
The impact on the net value of assets and liabilities, including derivatives, (SEKm) when market interest rates rise by one percentage point.
2019
< 3 mths.
3—6 
mths.
6—12 
mths.
1—2 yrs
2—3 yrs
3—4 yrs
4—5 yrs
5—10 yrs
> 10 yrs
Total
SEK
–152
–110
–222
–750
143
1 073
249
–1 308
–200
–1 277
Foreign currency
302
956
–41
196
–410
110
–1 082
1 095
–214
912
Total
150
846
–263
–554
–267
1 183
–833
–213
–414
–365
of which financial instruments measured at fair value through profit or loss.
2019
< 3 mths.
3—6 
mths.
6—12 
mths.
1—2 yrs
2—3 yrs
3—4 yrs
4—5 yrs
5—10 yrs
> 10 yrs
Total
SEK
–107
–9
–72
46
–132
–552
–382
1 109
–61
–160
Foreign currency
192
909
–118
223
–313
155
–875
1 117
–78
1 212
Total
85
900
–190
269
–445
–397
–1 257
2 226
–139
1 052
The impact on the net value of assets and liabilities, including derivatives, (SEKm) when market interest rates rise by one percentage point.
2018
< 3 mths.
3—6 
mths.
6—12 
mths.
1—2 yrs
2—3 yrs
3—4 yrs
4—5 yrs
5—10 yrs
> 10 yrs
Total
SEK
–58
–1
–119
–366
–294
–293
–106
–26
–105
–1 368
Foreign currency
–301
–290
–27
199
211
173
280
487
500
1 232
Total
–360
–291
–145
–167
–82
–120
174
460
395
–137
of which financial instruments measured at fair value through profit or loss.
2018
< 3 mths.
3—6 
mths.
6—12 
mths.
1—2 yrs
2—3 yrs
3—4 yrs
4—5 yrs
5—10 yrs
> 10 yrs
Total
SEK
66
89
–110
–131
49
13
324
–245
–157
–102
Foreign currency
525
843
234
8
–11
–33
–40
–35
96
1 588
Total
591
932
125
–123
38
–20
284
–280
–61
1 486

94
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
3.4.2 Currency risk
Currency risk refers to the risk that the value of the Group’s assets and liabilities, 
including derivatives, will be negatively affected by changes in exchange rates or other 
relevant risk factors. 
The Group has a strategic currency position in EUR through goodwill in the Baltic 
operations. This position is financed in SEK and is not hedged since it does not affect 
either profit or the capital base. In addition, the Group has structural currency risks 
within the banking operations due to deposits and lending in different currencies. 
Currency risk also arises in the trading operations, e.g. due to customer transactions. 
Currency risks that arise in the banking operations or that is strategic in nature are 
managed by Group Treasury through limiting the total value of assets and liabilities 
(including derivatives) in one currency to a desired level using derivatives, such as cross 
currency swaps and forward exchange agreements. The currency risks arising in the 
trading operations are also managed by means of currency derivatives. 
The Group’s exposure to currency risks with the probability to affect earnings, i.e. 
excluding exposures related to investments in foreign operations and related hedges, 
is limited. A shift in exchange rates between foreign currencies and the Swedish krona 
of +5 per cent at year–end would have a direct effect on the Group’s reported profit 
of SEK 73m (-39). Moreover, a shift in exchange rates between foreign currencies and 
the Swedish krona of –5 per cent at year–end would have a direct effect on the Group’s 
reported profit of SEK 21m (70).
A shift in exchange rates between the Swedish krona and foreign currencies of +/–5 
per cent, with respect to net investments in foreign operations and related hedges, 
would have a direct effect on other comprehensive income of SEK +/– 862m after tax 
(+/– 842). 
The Group recognises certain currency derivatives as cash flow hedges. An increase 
in the basis spread, (i.e. the price to swap cash flows in one currency for another) of one 
basis point would have had a positive effect on these derivatives in other comprehen-
sive income of SEK 9m (10) after tax as of 31 December 2019.
Currency distribution
2019
SEK
EUR
USD
GBP
DKK
NOK
Other
Total
Assets
Cash and balances with central banks
31 699
144 058
18 977
118
111
195
128
195 286
Treasury bills and other bills eligible for refinancing 
132 727
1 111
3 050
206
137 094
Loans to credit institutions
12 984
21 285
3 599
203
1 750
2 751
2 880
45 452
Loans to the public
1 356 524
226 944
32 606
3 156
4 669
26 726
1 671
1 652 296
Bonds and other interest-bearing securities
43 416
5 756
1 963
430
5 802
57 367
Derivatives and other assets, not distributed
320 733
320 733
Total
1 898 083
399 154
60 195
3 477
6 960
35 680
4 679
2 408 228
Liabilities
Amounts owed to credit institutions
22 097
17 932
7 732
1 829
2 069
15 777
2 250
69 686
Deposits and borrowings from the public
671 220
261 606
19 129
636
83
546
793
954 013
Debt securities in issue
407 761
260 057
135 706
28 232
9 863
14 135
855 754
Senior non-preffered liabilities
7 893
2 912
10 805
Subordinated liabilities
1 222
12 169
16 482
2 061
31 934
Derivatives and other liabilities, not distributed
347 403
347 403
Equity
138 633
138 633
Total
1 588 336
559 657
179 049
30 697
2 152
29 098
19 239
2 408 228
Derivatives and other assets and liabilities
172 520
118 809
27 255
–4 804
–6 316
14 532
Net position in currency
12 016
–44
36
4
266
–28
12 249
Funding in foreign currency with a corresponding recognised amount of SEK 33 640m (35 622) is used as a hedging instrument to hedge the net investment in foreign opera-
tions. The above net position in currencies pertains mainly to parts of net investments in foreign operations that are not hedged. Exchange rate changes to this position are 
recognised in other comprehensive income (OCI) as translation difference.
Currency distribution
2018
SEK
EUR
USD
GBP
DKK
NOK
Other
Total
Assets
Cash and balances with central banks
4 616
131 240
26 317
23
71
809
85
163 161
Treasury bills and other bills eligible for refinancing 
93 623
855
2 718
572
1 811
99 579
Loans to credit institutions
14 203
2 762
11 652
340
1 801
1 647
3 862
36 268
Loans to the public
1 346 957
201 914
35 252
3 771
5 661
31 940
1 872
1 627 368
Bonds and other interest-bearing securities
38 348
6 911
2 962
155
4 935
53 312
Derivatives and other assets, not distributed
266 404
266 404
Total
1 764 150
343 683
78 901
4 289
8 105
41 143
5 819
2 246 092
Liabilities
Amounts owed to credit institutions
20 137
10 940
18 206
1 279
2 003
1 784
2 869
57 218
Deposits and borrowings from the public
667 818
222 423
19 745
1 645
1 546
5 102
2 470
920 750
Debt securities in issue
349 918
224 487
176 675
33 385
5 450
14 445
804 360
Subordinated liabilities
1 340
19 715
11 169
1 960
34 184
Derivatives and other liabilities, not distributed
291 971
291 971
Equity
137 609
137 609
Total
1 468 793
477 565
225 795
36 309
3 550
12 336
21 745
2 246 092
Derivatives and other assets and liabilities
145 368
146 783
32 016
–4 532
–28 550
15 939
Net position in currency
11 486
–111
–3
24
258
14
11 668

95
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
3.4.3 Market risks in the trading operations
The trading operations at Swedbank are conducted within the business area Large 
­Corporates & Institutions (LC&I) for the primary purpose of assisting customers to 
­execute transactions in the financial markets. Positioning occurs only to a limited 
extent. The risk level (measured as VaR) in this operation is low.
Swedbank evaluates the VaR model’s reliability on a daily basis with actual and 
hypothetical backtesting. Actual backtesting uses the trading operations’ actual daily 
results to determine the accuracy of the VaR model, while hypothetical backtesting 
compares the portfolio’s value at the end of the day with its estimated value at the end 
of the subsequent day. The estimated value is obtained by applying market movements 
during the day for which the test is performed, with the assumption that the positions 
in the portfolio remain unchanged during this time period. The hypothetical backtest-
ing conducted by the Group in 2019 showed that the model serves its purpose well, 
since only two of the hypothetical losses exceeded the actual VaR level.
In addition to the VaR model applied in the calculation of Swedbank’s capital require-
ment, the Group uses a VaR model that also captures credit spread risk in its internal 
risk management.
The trading operations’ total VaR had an average value of SEK 21 m in 2019, which 
can be compared with the average value of 18 m for 2018. 
Data in the table are compiled using the VaR model that the Group applies to internal 
risk management and therefore differs from the values generated by the VaR model for 
capital requirements.
3.4.4 Share price risk
Share price risk refers to the risk that the value of the Group’s holdings of shares and 
share–related derivatives may be negatively affected by changes in share prices or 
other relevant risk factors such as share price volatility.
Share price risk arises in the trading operations due to holdings in equities and 
equity–related derivatives. The main purpose of Swedbank’s equity trading is to gener-
ate liquidity for the Group’s customers. Share price risk is measured and limited in the 
Group, e.g. with respect to the worst possible outcomes in 81 different scenarios based 
on changes in share prices and implied volatility. In these scenarios, share prices change 
by a maximum of +/– 20 per cent and the implied volatility by a maximum of +/– 30 per 
cent. The outcomes for the various combinations form a risk matrix for share price risk, 
where the worst–case scenario is limited.
As of year–end, the worst–case scenario would have affected the value of the 
­trading operations’ positions by SEK –27m (–18).
3.4.5 Commodity risk
Commodity risk refers to the risk that the value of the Group’s holdings of commodity 
related derivatives will be negatively affected by a change in asset prices. Exposure 
to commodity risks arises in the Group only in exceptional cases as part of customer–­
related products. Swedbank hedges all positions with a commodity exposure with 
another party, so that no open exposure remains.
Capital requirement for market risks
The capital requirement for market risks in Swedbank amounted to SEK 1 308m  
(1 042) as of 31 December 2019, and is presented by risk type in note G4 under  
Capital adequacy.
Jan–Dec 2019 (2018)
2019
2018
SEKm
Max
Min
Average
31 dec
31 dec
Value-at-Risk
31 (23)
12 (9)
18 (13)
22
14
Stressed Value-at-Risk
98 (91)
56 (38)
77 (58)
77
67
Jan–Dec 2019 (2018)
2019
2018
SEKm
Max
Min
Average
31 dec
31 dec
Credit spread risk
10 (27)
4 (4)
6 (12)
5
5
Share price risk
7 (11)
1 (1)
3 (4)
5
3
Currency risk
10 (16)
2 (2)
4 (7)
3
6
Interest rate risk
26 (20)
12 (6)
19 (11)
19
13
Diversification
 
 
–11 (–15)
–9
–10
Total
30 (31)
14 (12)
21 (18)
22
17
3.5 Operational risks
DEFINITION
Operational risk is defined as the risk of losses, business process disruption and nega-
tive reputational impact resulting from inadequate or failed internal processes, people 
and systems, or from external events. It also includes risk from external events not 
covered by any other risk type. The definition includes information security risk.
Risk management
Group Risk is responsible for uniform and Group–wide measurement and reporting 
of operational risk. Analyses of the bank’s risks are performed in connection with  
major changes as well as at least once a year. Reporting is done periodically and,  
when needed, to local management and to the Group’s Board of Directors, CEO and 
Swedbank’s executive management.
Risk assessments
All business areas apply the same methods (e.g. risk assessments) to self–assess op-
erational risks. These methods are used on regular basis to cover among others all key 
processes within the Group and include risk identification, action planning and moni-
toring to manage any risk that may arise.
New Product Approval Processes (NPAP)
Swedbank has a Group–wide process for New Product Approval (NPA) covering all  
new and/or revised products, services, markets, processes and/or IT-systems as well 
as major operational and/or organisational changes including outsourcing. 
The purpose is to ensure that the Group does not enter into activities that entail 
unintended risks or risks that are not immediately managed and controlled as part  
of the process. In addition, the Group is able to assure quality when launching new  
and/or revised products and services.
Incident, Continuity and Crisis management
Swedbank works proactively to prevent and strengthen its resilience and ability to 
manage all types of incidents, such as IT disruptions, natural disasters, financial market 
disturbances and pandemics, which may affect the Group’s ability to provide services 
and offerings continually. 
The principles for incident, continuity and crisis management are defined in a Group–
common framework as well as established system support for incidents and losses. 
A Group–level crisis management team is responsible for management, coordination 
and communication in collaboration with local crisis management teams. Continuity 
plans are drafted for all business and systemically critical operations and services. 
The plans describe how Swedbank will operate in the event of a serious disruption. 
Swedbank’s models for continuity and crisis management are based on international 
and national standards.
Incident reporting
Swedbank has established routines and system support to facilitate reporting and fol-
lowing up on incidents. Group Risk supports the business areas in reporting, analysing 
and drafting action plans to ensure that the underlying causes are identified and that 
suitable actions are taken. Incidents and operational risk–related losses are logged in 
a central database for further analysis.
Process and control management
Swedbank has established a common framework for processes and internal control. 
Specific frameworks for Internal Control over Financial Reporting (ICFR) and Credit 
Process Control (CPC) are applied to affected processes within the Group.
A Process Universe has been established with the purpose of clarifying responsibility 
for the Group’s significant processes as well as for the controls in the processes, and to 
ensure that they are effective and appropriate. Swedbank uses the Process Universe as 
a basis for risk management and risk control performed within the Group.
Information security risk
Swedbank has a structured approach to protect information. To strengthen these 
efforts, processes and routines are being constantly reviewed to improve and comple-
ment the bank’s management system for information security. The management sys-
tem is a tool to manage and coordinate the Group’s long–term efforts in a structured 
and methodical way.
Capital requirements for operational risks
Swedbank applies the standardised approach to calculate the capital requirement  
for operational risks. Swedbank’s capital requirement for operational risk as of  
31 December 2019 amounted to SEK 5 481m (5 182).

96
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
3.6 Insurance risks 
Definition
Insurance risk refers to the risk of a change in value due to a deviation between actual 
and anticipated insurance costs. In other words, the risk that an actual outcome 
will deviate from projections e.g. in terms of longevity, mortality, morbidity or claim 
frequency. This includes expense risk i.e. the risk that administrative costs and sales 
commissions will exceed the cost estimates that served as the basis for the premiums.
The life insurance operations incur mortality risk, morbidity risk, longevity risk 
expense risk and lapse risk i.e. the risk that contracts will be terminated in advance to 
a higher degree than anticipated.
Property and casualty insurance risk comprises the risk that the insurance result will 
be unusually unfavourable in the year ahead or that the final payment for past claims 
will be more expensive than estimated.
Risk management
Before a life insurance policy is approved, the potential customer must pass a risk 
assessment. The purpose is to determine whether the person can be approved for 
insurance based on his or her health. The required insurance must also meet the policy­
holder’s insurance needs. To further limit risk exposure, the company reinsures parts 
of its insurance risks. 
Swedbank’s insurance operations offer a broad range of products and are active in 
the entire Swedish market (life insurance) as well as in the three Baltic countries (life, 
property and casualty insurance). This provides diversification of the insurance risk, 
with respect to market, product, age and gender.
Insurance contracts are designed so that the premium and assumptions can be 
changed annually, implicating that the company may quickly balance its premiums  
and terms to rapid changes in for example morbidity.
The pricing of premiums is based on assumptions about expected longevity, mortal-
ity, morbidity and claim frequency as well as the estimated cost of insurance events. 
Experience in the form of statistical material and expectations about future develop-
ments are critical factors in the choice of assumptions.
Risk exposure and risk measurement
Actual outcomes compared with the above–mentioned assumptions give rise to a risk 
result in the life insurance operations. Insurance risks in the insurance operations are 
measured by stressing the insurance company’s balance sheet, income statement and 
shareholders’ equity over a one–year horizon with a given level of confidence.
According to the latest risk assessment, the most important risks are lapse, expense 
and catastrophe risk i.e. the risk of major damage due to a single event.
Property and casualty insurance represent a small part of Swedbank’s total insur-
ance operations. Since contracts are issued on an annual basis, insurance risks are 
limited because pricing can be changed for the following year. For the property and 
casualty insurance operations, insurance risks are measured by calculating the claim 
ratio i.e. claims in relation to premiums, by product and country.
Capital requirement for insurance risk
Solvency is a measure of the insurance company’s financial position and strength. The 
purpose is to show that the size of the company’s capital buffer is large enough to 
fulfil its commitments to customers in accordance with the terms and guarantees in 
its insurance contracts. The insurance companies also incur market risk; however their 
capital buffer is designed to cover all types of risks.
As of 1 January 2016, the solvency requirements in the insurance companies are cal-
culated according to Solvency II. The capital base (Own Funds, OF) is calculated through 
a market valuation of the net of the insurance company’s future cash flows, and capital 
requirement (Solvency Capital Requirement, SCR) by stressing OF in various scenarios. 
The solvency ratio is defined as OF divided by SCR. 
The capital base in Swedbank’s Swedish insurance operations amounted to SEK 
8 759m on 30 September 2019 (8 314). This compares with the Solvency Capital 
Requirement of SEK 5 845m (5 549). The solvency ratio was 1.50 (1.50).
The capital base in the Baltic life insurance operations amounted to SEK 1 573m as 
of 30 September 2019 (1 621). The solvency ratio was 1.52 (1.68). The capital base 
in the Baltic property and casualty insurance operations amounted to SEK 523m as 
of 30 September 2019 (441). The solvency ratio was 1.51 (1.53).
3.7 Other 
Tax
The tax area is complex and leaves room for judgement. Practices and interpretations 
of applicable laws are often changed, sometimes retroactively. In the event that the tax 
authorities and, where appropriate, the tax courts decide on a different interpreta-
tion than what Swedbank initially made, then it could impact the Group’s operations, 
results and financial position.
Brexit
The outcome of the UK general election secured a parliamentary majority for the 
proposed withdrawal agreement. This means that the UK will be in a Brexit transition 
period during 2020. The government’s policy of refusing an extension beyond 2020 
increases the risk of disruption at the end of the transition period if new agreements 
on trade and financial services have not been made. Swedbank continues to monitor 
the development to see if further actions need to be taken before the end of 2020. 
Swedbank is prepared for a hard Brexit and from a market risk perspective the impact is 
moderate since Swedbank’s exposure to the GBP is low and there has been no signifi-
cant change in the exposure levels. The impact from a liquidity risk perspective is seen 
as not material due to the small amount of funding in GBP.
Interest Rate Benchmark Reform
Interest Rate Benchmark Reform is a market move from existing InterBank Offered 
Rates (IBORs) towards alternative Risk Free Rates (RFRs). Global regulators and the 
public/private sector have established working groups to identify and promote the use 
of more robust, transaction-based RFRs. IBORs act as reference rates for a broad range 
of financial instruments and are therefore key to financial stability.
At Swedbank as a large full service bank the IBORs are currently used across lending, 
deposit, investment and trading products and feature across other internal processes. 
To address the challenge and ensure smooth transition, Swedbank established an 
Interest Rate Benchmark Reform programme across the bank to work with assump-
tions on market transition, inventory, scenario and data analysis, Group strategy, 
contracts and agreements as well as internal and external communication. Swedbank 
has activity underway to continually identify and monitor the exposures and will be 
taking steps through the Interest Rate Benchmark Reform to manage and mitigate any 
risks which may arise.
Swedbank has already begun to adopt new RFRs for example (SONIA, SOFR, €STR) in 
some financial products in relevant parts of its business and will introduce capability to 
operate using new rates as and when they become available. Similarly Swedbank will 
prioritise risk mitigation activities in relation to current exposure to LIBOR and other 
incumbent rates. Transition activity and operational changes to manage this exercise 
are in progress and are anticipated to continue through the lifetime of the Interest Rate 
Benchmark Reform.
Anti-money laundering and Counter Terrorist financing (AML/CTF)
Swedbank is a full-service retail bank offering a wide range of products and services to 
a large number of private and corporate customers. This makes the Group exposed to 
many predicate crimes in relation to Money Laundering (ML) as well as many different 
types of Money Laundering/Terrorist Financing (ML/TF) schemes.During 2019 Swed-
bank established an Anti-Financial Crime unit (AFC) with the purpose of concentrat-
ing the technological and investigative resources and competences connected to the 
prevention of financial crime. In addition to the organisational changes Swedbank is 
also investing heavily in additional resources and new systems regarding know your 
customer (KYC), risk classification as well as additional system support within this area. 
Swedbank has also initiated a project to update existing AML/CTF governance systems 
and frameworks to ensure robustness and consistency in the AML/CTF work that takes 
place across the Group.

97
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Internal capital assessment
Purpose
The Internal Capital Adequacy Assessment Process (ICAAP) aims to ensure that the 
Group is adequately capitalised to cover its risks, both current and future, and that the 
capital dimension is properly considered in the Group’s business strategy.
Measurement
Swedbank prepares and documents its own methods and processes to evaluate its 
capital requirement. The internal capital adequacy assessment takes into account all 
relevant risks that arise within the Group. In addition to Pillar 1 risks, also other types 
of risk are assessed and evaluated. There are certain risk categories that receive no cap-
ital allocation but are nevertheless closelymonitored, such as business risk, liquidity risk 
and strategic risk. Significant risks that have been identified within the Group include:
Risk types according to the ICAAP process
Risk type
Pillar 1
Pillar 2
Capital is 
allocated?
Contributes to calculated 
capital requirement?
Credit risk 
Yes
Yes
Concentration risk
No
Yes
Market risk 
Yes
Yes
Market risk: Interest risk in banking book
No
Yes
Operational risk
Yes
Yes
Insurance risk
Yes1
Yes2
Risk in post-employment benefits
No
Yes
No specific capital is allocated
Identified and mitigated?
Reputational risk
No
Yes
Liquidity risk
No
ILAAP3
Strategic risk: Decision risk, Business plans, 
Projects and acquisitions
No
Yes4
1) Holdings in insurance companies are risk weighted at 250%.
2) The insurance companies in Swedbank Group perform an Own Risk and Solvency 
Assessment (ORSA). The aim of this process is to assess risks (both qualitatively and 
quantitatively) and the solvency position over a business planning period of three 
years. The calculations are performed by projecting the risk metrics under the base 
and adverse scenarios.
3) Liquidity needs are assessed annually in the internal liquidity adequacy assessment 
process (ILAAP).
4) Economic Capital and adverse Scenario Simulation calculations can be adjusted to 
reflect forward looking perspective.
To ensure efficient use of capital and predict the Group’s capital adequacy even under 
exceptionally adverse market conditions, comprehensive stress tests are conducted at 
least once a year. The analysis provides an overview of the most important risks that 
the Group is exposed to by quantifying the impact on the income statement and bal-
ance sheet as well as the capital base and risk weighted assets. The method serves as 
a foundation for proactive risk- and capital management.
ICAAP 2019
As in previous years, Swedbank’s ICAAP for 2019 shows that the bank is resilient to 
broad macroeconomic shocks and is expected to remain well capitalised even in the 
event of highly unfavourable developments. Swedbank’s strong credit quality and 
capital situation is reaffirmed by external stress tests.
Description of the 2019 adverse scenario
The scenario developed for ICAAP 2019 is based on the assumption that the recently 
much debated barriers to international trade are implemented in their most extreme 
form, which sets in motion a set of policy events and exaggerated bilateral responses. 
It is further assumed that the trade obstacles become permanent and are perceived as 
such by markets. Thus, the scenario takes as a starting point a massive drop in trade 
as global exports plummet for all countries in the scenario. The contraction of trade is 
accompanied by an initial increase in consumer prices, as tariffs are transferred on to 
consumers. Later on in the scenario, the initial inflation is transformed into stagnant 
and then negative price growth as the economic activity slows down. Furthermore, the 
tariffs trigger geopolitical tensions, which add to the burden of reduced world trade 
and growth, particularly because consumer sentiment (affecting consumption) and 
corporate investments plummet. 
Stress test ICAAP scenario
Triggers 
Outcome in Swedbank´s home markets 
Extreme escalation of trade wars 
.World trading volumes drop significantly
Economic activity hurt, investments drop, confidence sours
Fall in global equity and oil prices
Fall in house prices and household consumption
Unemployment rises, GDP contracts for three years in a row
Initial increase in consumer prices is followed by deflationary period 
In Sweden, GDP vs starting point falls by a maximum of 6.8 per cent, unemployment increases to a maximum 
of 11.6 per cent and house prices fall by a maximum of 35 per cent.
In Estonia, GDP vs starting point falls by a maximum of 5.8 per cent, unemployment increases to a maximum  
of 12.1 per cent and house prices fall by a maximum of 30 per cent.
In Latvia, GDP vs starting point falls by a maximum of 5.4 per cent, unemployment increases to a maximum  
of 11.8 per cent and house prices fall by a maximum of 38 per cent.
In Lithuania, GDP vs starting point falls by a maximum of 7.1 per cent, unemployment increases to a maximum  
of 11.7 per cent and house prices fall by a maximum of 40 per cent.
G4 Capital
1) Figures for 2018 are based on preliminary estimates due to final figures being 
published after the submission of the ICAAP report.
Stress test ICAAP-scenario – parameters1
Sweden
2018
2019
2020
2021
GDP-growth, %
2.5
–3.9
–2.6
–0.4
Unemployment, %
5.9
8.9
11,4
10.7
Inflation, %
2.1
1.8
–0.3
–0.4
Residential real estate price index 
100.0
85.7
73.2
65.1
Estonia
2018
2019
2020
2021
GDP-growth, %
3.9
–2.9
–3.0
–0.0
Unemployment, %
6.5
9.4
12.1
10.7
Inflation, %
3.7
3.3
–0.5
–1.2
Residential real estate price index 
100.0
88.0
76.4
70.2
Latvia
2018
2019
2020
2021
GDP-growth, %
5.0
–2.9
–2.6
0.0
Unemployment, %
8.0
10.6
11.3
10.7
Inflation, %
3.2
2.7
–0.7
–0.8
Residential real estate price index 
100.0
84.4
70.4
62.1
Lithuania
2018
2019
2020
2021
GDP-growth, %
3.8
–3.5
–3.6
–0.2
Unemployment, %
7.3
10.4
11.7
11.0
Inflation, %
2.4
2.9
–0.6
–1.1
Residential real estate price index 
100.0
86.4
71.0
60.1
Interest Rates
2018
2019
2020
2021
3M government rates SEK, % 
–0.73
–0.73
–0.73
–0.73
3M government rates EUR, % 
–0.66
–0.66
–0.66
–0.66
FX
2018
2019
2020
2021
USD/SEK
8.90
9.12
9.23
9.35
EUR/SEK
10.19
10.57
10.65
10.74

98
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Swedbank in the scenario
In the simulated scenario that is calibrated to have an approximate likelihood of “1 in 
25” years, the net interest income drops by SEK 1.7bn compared to the starting posi-
tion. The main drivers underlying this development are widened funding spreads and 
increased volumes of non-performing, non revenue generating loans in the portfolio. 
New credit impairments amount to SEK 36.3bn with total provisions increasing six 
times driven by an eightfold increase in Stage 3 provisioning as per IFRS 9 definition 
and material additions to Stage 2 induced by rating migrations. Losses are tilted to the 
first two years of the scenario and only recede in the third year, although the absolute 
level still dwarfs the pre-crisis impairments. The Large Corporates and Institutions 
(LC&I) business area proves to be the most vulnerable to the simulated shock and 
accounts for 46 per cent of total losses. The Swedish Banking credit portfolio gener-
ates 43 per cent of accumulated losses, while the Baltic Banking business area – the 
remaining 11 per cent. Sectors that are most heavily affected by the crisis as gauged 
by cumulative loss ratios are shipping, and offshore, retail and construction.
Common Equity Tier 1 capital improves in nominal terms compared to the starting 
value at 2018-end due to the profit generation and positive contribution of SEK 2.5bn 
to other comprehensive income in the first year associated with the post-employment 
benefit plan (IAS 19) liabilities. This is illustrative of Swedbank’s resilience as it happens 
against the backdrop of soaring credit losses and dwindling revenues. However, signifi-
cantly increasing REA driven by credit portfolio migrations, currency effects and other 
factors negatively impacts the CET1 ratio, which drops by 1.08 percentage points at 
its trough. Nevertheless, Swedbank is not expected to breach forecasted regulatory 
capital requirements at any point of the scenario.
The scenario-based simulations and stress tests performed under normative 
perspectiveare complemented by a calculation of the capital requirement using internal 
methods under the Economic Capital perspective. The models that serve as the basis 
for the internal capital assessment, measure the need for economic capital over a one 
year horizon with a 99.9 per cent confidence interval for each risk type. Diversifica-
tion effects between risk types are not taken into consideration in the calculation of 
economic capital.
As of 31 December 2019, the internally measured internal capital requirement for 
Swedbank’s consolidated situation amounted to SEK 34.7bn. The capital that meets 
the internal capital requirement, i.e. the capital base, amounted to SEK 141.6bn 
External stress tests
In 2019, Swedbank was subject to a regular stress test initiated by the Swedish Finan-
cial Supervisory Authority (SFSA) to determine the size of the capital planning buffer. 
The stress tests reaffirmed a relatively low risk profile of Swedbank as no capital plan-
ning buffer was prescribed by the SFSA. Swedbank was also part of the EBA industry-
wide stress testing effort in 2018 where Swedbank looked strong in peer rankings.
Internal capital requirement
In its ICAAP, Swedbank factors in known changes in regulatory and accounting 
practices which will take effect during the simulation period and that can be analysed 
with a high degree of certainty. These changes are integrated in the calculations ac-
cording to their expected implementation schedule. The adjustments include, amongst 
others things, IRB model revisions and effects associated with the IFRS 16 reporting 
standards. 
1) Exposure at Default.
2) The ICAAP calculations are based on the consolidated situation, which in some cases 
differs from the Swedbank Group. For example, the insurance operations are not 
included in the consolidated situation.
1) The ICAAP calculations are based on the consolidated situation, which in some 
cases differs from Swedbank Group. For example, the insurance operations are not 
included in the consolidated situation.
Income statement under ICAAP-Scenario1
SEKbn
2018
2019
2020
2021
Net interest income
26.7
26.2
25.3
25.0
Total income
44.6
41.2
40.7
40.5
Total expenses
17.5
18.0
17.8
17.8
Profit before impairments
27.1
23.2
22.9
22.7
Credit impairments
0.8
13.0
15.5
7.8
Operating profit
26.3
10.2
7.4
14.9
Tax expense
5.4
2.1
1.5
3.1
Profit for the period
20.9
8.1
5.9
11.8
Profit for the period attributable to: 
Shareholders of Swedbank AB
20.9
8.1
5.9
11.8
Non-controlling interests
0.0
0.0
0.0
0.0
Credit Impairments and EAD1 per  
Operating segment2
Credit Impairments
SEKbn
EAD 2018
2019
2020
2021
Swedish Banking
1 285.5
4.2
6.4
5.1
Large Corporates & Institutions
348.9
6.8
8.2
1.7
Baltic Banking Estonia
87.0
0.6
0.3
0.4
Baltic Banking Latvia
40.9
0.6
0.2
0.2
Baltic Banking Lithuania
63.4
0.8
0.4
0.4
Other
290.1
Total
2 115.8
13.0
15.5
7.8
REA and Capital
2018
2019
2020
2021
REA, SEKbn 
637.9
713.2
710.3
713.4
Common Equity Tier 1, SEKbn 
103.8
108.4
108.9
111.5
Common Equity Tier 1 ratio, % 
16.3
15.2
15.3
15.6

99
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The capital adequacy regulation is the legislator’s requirement of how much capital, 
designated as the own funds, a bank must have in relation to the size of the risks it 
faces. The rules strengthen the connection between risk taking and required capital in 
the Group’s operations. Swedbank’s legal requirement is based on the European Parlia-
ment’s and the Council’s regulation (EU) No 575/2013 on prudential requirements 
for credit institutions. The consolidated situation on 31 December 2019 included the 
Swedbank Group with the exception of insurance companies. In addition, Entercard 
Group was included through the proportional consolidation method. The table below 
contains the information that must be published according to the SFSA’s regulations 
(FFFS 2014:12), chapter 8. Additional periodic information according to the European 
Parliament’s and the Council’s regulation (EU) No 575/2013 on prudential require-
ments for credit institutions and the Commission’s implementing regulation EU) No 
1423/2013 can be found on Swedbank’s website at https://www.swedbank.com/
investor-relations/risk-and-capital-adequacy/risk-report/index.htm
Since the 30th of January 2017, Swedbank must also comply with a capital require-
ment at the financial conglomerate level in accordance with the Special Supervision 
of Financial Conglomerates Act (2006:531), see capital adequacy for the financial 
conglomerate below.
1) Adjustment due to the implementation of EBA’s technical standards on prudent 
valuation. The objective of these standards is to determine prudent values of fair 
value positions.
2) To rectify for underestimation of default frequency in the model for corporate expo-
sures, Swedbank has decided to hold more capital until the updated model has been 
approved by the Swedish FSA. The amount also includes planned implementation of 
EBA’s Guideline on new default definition and increased safety margins.
3) Buffer requirement according to Swedish implementation of CRD IV.
4) CET1 capital ratio as reported less minimum requirement of 4.5 per cent (excluding 
buffer requirements) and less any CET1 items used to meet the Tier 1 and total 
capital requirements.
5) The own funds and capital requirement for the financial conglomerate are calculated 
according to the accounting consolidation method in the Special Supervision of 
Financial Conglomerates Act (2006:531).
6) Calculated as the financial conglomerate’s own funds after adjustment and deduc- 
tions divided with the capital requirement for the financial conglomerate. 
7) Additional risk exposure amount and minimum capital requirement following the 
changed application of the risk weight floor for Swedish mortgages according to 
decision from the SFSA.
Capital adequacy analysis
Consolidated situation
Capital adequacy
2019
2018
Common Equity Tier 1 capital
110 073
103 812
Additional Tier 1 capital
16 153
10 949
Tier 1 capital
126 226
114 761
Tier 2 capital
15 328
22 232
Total own funds
141 554
136 993
Risk exposure amount
649 237
637 882
Common Equity Tier 1, capital ratio, %
17.0
16.3
Tier 1 capital ratio, %
19.4
18.0
Total capital ratio, %
21.8
21.5
Consolidated situation
Capital adequacy
2019
2018
Shareholders' equity according to the Group's  
balance sheet
138 608
137 396
Non-controlling interests
72
Anticipated dividend
–9 856
–15 885
Deconsolidation of insurance companies
–758
–438
Value changes in own financial liabilities  
including derivatives
–90
–107
Cash flow hedges
–5
–2
Additional value adjustments1
–454
–454
Goodwill
–13 090
–12 929
Goodwill in significant investments
–709
–709
Deferred tax assets
–108
–113
Intangible assets after deferred tax liabilities
–3 433
–2 974
Shares deducted from CET1 capital
–32
–45
Common Equity Tier 1 capital
110 073
103 812
Additional Tier 1 capital
16 153
10 949
Total Tier 1 capital
126 226
114 761
Tier 2 capital
15 328
22 232
Total own funds
141 554
136 993
Minimum capital requirement for credit risks,  
standardised approach
3 614
3 328
Minimum capital requirement for credit risks, IRB
21 559
21 715
Minimum capital requirement for credit risk, default 
fund contribution
47
29
Minimum capital requirement for settlement risks
0
0
Minimum capital requirement for market risks
1 308
1 042
Trading book
1 292
999
of which VaR and SVaR
1 021
719
of which risks outside VaR and SVaR
271
280
FX risk other operations
16
43
Minimum capital requirement for credit value adjustment
378
307
Minimum capital requirement for operational risks
5 481
5 182
Additional minimum capital requirement, Article 3 CRR2
2 451
2 743
Additional minimum capital requirement, Article 458 CRR7
17 101
16 685
Minimum capital requirement
51 939
51 031
Risk exposure amount credit risks, standardised approach
45 174
41 606
Risk exposure amount credit risks, IRB
269 485
271 437
Risk exposure amount default fund contribution
584
357
Risk exposure amount settlement risks
0
0
Risk exposure amount market risks
16 350
13 024
Risk exposure amount credit value adjustment
4 730
3 826
Risk exposure amount operational risks
68 514
64 779
Additional risk exposure amount, Article 3 CRR 2
30 635
34 286
Additional risk exposure amount, Article 458 CRR 7
213 765
208 567
Risk exposure amount
649 237
637 882
Common Equity Tier 1 capital ratio, %
17.0
16.3
Tier 1 capital ratio, %
19.4
18.0
Total capital ratio, %
21.8
21.5
Consolidated situation
Capital buffer requirement3, %
2019
2018
CET1 capital requirement including buffer requirements
12.0
11.6
of which minimum CET1 requirement
4.5
4.5
of which capital conservation buffer 
2.5
2.5
of which countercyclical capital buffer
2.0
1.6
of which systemic risk buffer 
3.0
3.0
CET 1 capital available to meet buffer requirement4
12.5
11.8
Consolidated situation
Leverage ratio
2019
2018
Tier 1 Capital
126 226
114 761
Leverage ratio exposure
2 353 631
2 241 604
Leverage ratio, %
5.4
5.1
Financial conglomerate
Capital adequacy for the financial conglomerate5
2019
2018
Own funds after adjustments and deductions
149 939
143 661
Capital requirement
116 698
110 014
Surplus
33 241
33 647
Financial conglomerate solvency ratio, %6
128.5
130.6

100
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
1) The parent company’s capital requirement for general interest rate risk, share 
price risk and currency risk in the trading book as well as Swedbank Estonia AS’, 
Swedbank Latvia AS’ and Swedbank Lithuania AB’s capital requirements for general 
interest rate risk and currency risk in the trading book are calculated according to 
the VaR model.
Consolidated situation
Minimum capital requirements for market risks
2019
2018
Interest rate risk
1 293
992
of which for specific risk
270
279
of which for general risk
1 023
713
Equity risk
106
53
of which for specific risk
1
0
of which for general risk
105
53
Currency risk in trading book
131
202
Total minimum capital requirement  
for risks in trading book1
1 292
999
of which stressed VaR
808
586
Currency risk outside trading book
16
43
Total
1 308
1 042
Consolidated situation
Minimum capital requirement for operational risks
2019
2018
Standardised approach
5 481
5 182
of which trading and sales
322
232
of which retail banking
3 134
3 006
of which commercial banking
1 164
1 094
of which payment and settlement
372
366
of which retail brokerage
1
1
of which agency services
44
44
of which asset management
418
410
of which corporate finance
26
29
Total
5 481
5 182
Capital requirements1
SEKm
SEKm
Per cent
Per cent
SEKm / Per cent
2019
2018
2019
2018
Capital requirement Pillar 1
100 766
96 320
15.5
15.1
of which Buffer requirements 2
48 827
45 290
7.5
7.1
Total capital requirement Pillar 2 3
22 140
21 045
3.4
3.3
Total capital requirement Pillar 1 and 2
122 906
117 365
18.9
18.4
Own funds
141 554
136 993
1) Swedbank’s calculation based on the SFSA’s announced capital requirements, including Pillar 2 requirements.
2) Buffer requirements includes systemic risk buffer, capital conservation buffer and countercyclical capital buffer
3) Systemic risk buffer as of 31 December 2019. The individual Pillar 2 charge items as of 31 December 2018, according to SFSA’s SREP report of  
30 September 2019, in relation to REA as of 31 December 2019
2 019
Credit risks, IRB
Exposure amount
Average risk 
weight, %
Minimum capital 
requirement
Central government or central banks exposures
362 380
1
402
Institutional exposures
53 466
18
788
Corporate exposures
544 080
31
13 546
Retail exposures
1 184 439
7
6 173
of which mortgage lending
1 070 279
5
3 928
of which other lending
114 160
25
2 245
Non credit obligation
12 581
65
650
Total credit risks, IRB
2 156 946
12
21 559
2 018
Credit risks, IRB
Exposure amount
Average risk 
weight, %
Minimum capital 
requirement
Central government or central banks exposures
296 418
2
375
Institutional exposures
49 183
19
766
Corporate exposures
532 566
33
13 963
Retail exposures
1 165 008
7
6 226
of which mortgage lending
1 047 939
5
3 929
of which other lending
117 069
25
2 297
Non credit obligation
8 508
57
385
Total credit risks, IRB
2 051 683
13
21 715

101
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Consolidated situation 2019
Consolidated situation 2018
Exposure amount, Risk exposure amount and Minimum capital requirement
Exposure 
amount
Risk 
exposure 
amount
Minimum 
capital  
requirement
Exposure 
amount
Risk 
exposure 
amount
Minimum 
capital 
­requirement
Credit risks, STD
79 511
45 174
3 614
64 110
41 606
3 328
Central government or central banks exposures
64
213
Regional governments or local authorities exposures
2 583
371
30
2 193
269
21
Public sector entities exposures
1 399
161
13
1 708
68
5
Multilateral development banks exposures
2 061
3
0
2 566
International organisation exposures
372
Institutional exposures
28 091
659
53
15 156
345
27
Corporate exposures
5 357
5 095
408
4 700
4 475
358
Retail exposures
19 575
14 101
1 128
17 960
12 899
1 032
Exposures secured by mortgages on immovable property
6 608
2 312
185
6 175
2 163
173
Exposures in default
736
749
60
556
562
45
Exposures in the form of covered bonds
564
56
4
220
23
2
Exposures in the form of collective investment undertakings (CIUs)
6
6
0
8
8
1
Equity exposures
9 237
19 296
1 544
8 100
17 535
1 403
Other items
3 230
2 365
189
4 183
3 259
261
Credit risks, IRB
2 156 946
269 485
21 559
2 051 683
271 437
21 715
Central government or central banks exposures
362 380
5 021
402
296 418
4 689
375
Institutional exposures
53 466
9 855
788
49 183
9 581
766
Corporate exposures
544 080
169 325
13 546
532 566
174 531
13 963
of which specialized lending in category 1
50
29
2
3
2
0
of which specialized lending in category 2
284
240
19
316
271
22
of which specialized lending in category 3
141
162
13
182
209
17
of which specialized lending in category 4
116
289
23
150
376
30
of which specialized lending in category 5
18
0
0
88
Retail exposures
1 184 439
77 162
6 173
1 165 008
77 826
6 226
of which mortgage lending
1 070 279
49 094
3 928
1 047 939
49 110
3 929
of which other lending
114 160
28 068
2 245
117 069
28 716
2 297
Non-credit obligation
12 581
8 122
650
8 508
4 810
385
Credit risks, Default fund contribution
584
47
357
29
Settlement risks
0
0
0
177
0
0
Market risks
16 350
1 308
13 024
1 042
Trading book
16 150
1 292
12 486
999
of which VaR and SVaR
12 763
1 021
8 984
719
of which risks outside VaR and SVaR
3 387
271
3 502
280
FX risk other operations
200
16
538
43
Credit value adjustment
19 004
4 730
378
16 024
3 826
307
Operational risks
68 514
5 481
64 779
5 182
of which Standardised approach
68 514
5 481
64 779
5 182
Additional risk exposure amount, Article 3 CRR
30 635
2 451
34 286
2 743
Additional risk exposure amount, Article 458 CRR
213 765
17 101
208 567
16 685
Total
2 255 461
649 237
51 939
2 131 994
637 882
51 031

102
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The operating segment report is based on Swedbank’s accounting policies, organisa-
tion and management accounts. Market–based transfer prices are applied between 
operating segments, while all expenses for Group functions and Group staffs are 
transfer priced at cost to the operating segments. Cross–border transfer pricing is 
applied according to OECD transfer pricing guidelines.The Group’s equity attributable 
to shareholders is allocated to each operating segment based on capital adequacy rules 
and estimated capital requirements based on the bank’s internal Capital Adequacy As-
sessment Process (ICAAP). The return on allocated equity for the operating segments 
is calculated based on profit for the year for the operating segment (operating profit 
less estimated tax and non–controlling interests), in relation to average monthly al-
located equity for the operating segment. 
Swedish Banking, Swedbank’s dominant operating segment, is responsible for all 
Swedish customers except for large corporates and financial institutions. The operating 
segment’s services are sold through Swedbank’s own branch network, the Telephone 
Bank, the Internet Bank and the distribution network of the independent savings 
banks. The operating segment also includes a number of subsidiaries. Baltic Banking 
operates in Estonia, Latvia and Lithuania. Its services are sold through its own branch 
network, the Telephone Bank and the Internet Bank. The effects of Swedbank’s owner-
ship interests in the Baltic companies Swedbank AS (Estonia), Swedbank AS (Latvia) 
and Swedbank AB (Lithuania) are also reported in Baltic Banking in the form of financ-
ing costs, Group goodwill and Group amortisation on surplus values in the lending and 
deposit portfolios identified at the time of acquisition in 2005. Large Corporates & In-
stitutions is responsible for large corporates, financial institutions and banks as well as 
for trading and capital market products. Operations are carried out in Sweden, Norway, 
Finland, US and China, and through the trading and capital market operation in Estonia, 
Latvia and Lithuania. The Group Functions operate across the business areas and 
serve as strategic and administrative support for them. The Group Functions are Group 
Lending & Payments, Group Savings, Digital Banking, Group IT, CFO Office (including 
Group Treasury), CEO Office (including Corporate Affairs, HR and Legal.), Customer 
Value Management (CVM), Risk, Compliance, The Group Executive Committee and 
Internal Audit are also included in Group Functions. During 2019 Swedbank’s operating 
segments were changed slightly to coincide with the organisational changes made in 
Swedbank’s business area organisation. Comparative figures have been restated. The 
negative result in Group Functions mainly relates to expenses rose due to increased-
staff costs and consulting expenses to manage money laundering investigations. 
A VAT provision, severance pay to former members of the Group Executive Commitee 
and fraud related expnses also had an impact. 
G5 Operating segments
2019
Swedish 
Banking
Baltic 
Banking
Large corporates 
& Institutions
Group Functions 
& Other
Eliminations
Total
Income statement
Net interest income
16 253
5 239
3 776
721
 
25 989
Net commissions
7 862
2 690
2 321
57
54
12 984
Net gains and losses on financial items
433
286
2 201
710
-1
3 629
Share of the profit or loss of associates and joint ventures
839
 
 
–17
 
822
Other income
985
831
211
670
–162
2 536
Total income
26 372
9 046
8 509
2 141
–109
45 960
of which internal income
63
 
162
520
–745
 
Staff costs
2 933
1 091
1 391
5 265
-1
10 679
Variable staff costs
53
56
157
174
 
440
Other expenses
6 147
1 981
2 305
–3 011
–108
7 314
Depreciation/amortisation
234
175
123
1 019
 
1 551
Total expenses
9 367
3 303
3 976
3 447
–109
19 984
Profit before impairment
17 005
5 743
4 533
–1 306
 
25 976
Impairment of intangible fixed assets
 
 
 
79
 
79
Impairment of tangible assets
 
8
 
 
 
8
Credit impairment
154
3
1 312
 
 
1 469
Operating profit
16 851
5 732
3 221
–1 385
 
24 420
Tax expense
3 271
814
740
–114
 
4 711
Profit for the year
13 580
4 918
2 481
–1 271
 
19 709
Profit for the year attributable to the 
shareholders of Swedbank AB
13 568
4 918
2 481
–1 271
 
19 697
Non-controlling interests
12
 
 
 
 
12
Net commission income
Commission income
Payment processing
723
737
382
272
–30
2 084
Cards
2 562
1 720
2 058
–102
–290
5 948
Service concepts
863
119
312
–44
–2
1 248
Asset Management and custody
5 331
381
1 256
31
–36
6 963
Corporate Finance and securities
205
 
351
14
–8
562
Lending and guarantee
272
250
668
8
 
1 198
Deposits
24
136
4
 
 
164
Real estate brokerage
187
 
 
 
 
187
Life and non-life Insurance
597
78
 
2
 
677
Other commission income
199
26
177
38
1
441
Total commission income
10 963
3 447
5 208
219
–365
19 472
Commission expense
3 101
757
2 887
162
–419
6 488
Net Commission Income
7 862
2 690
2 321
57
54
12 984

103
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2019
Swedish 
Banking
Baltic 
Banking
Large corporates 
& Institutions
Group Functions 
& Other
Eliminations
Total
Balance sheet
Cash and balances with central banks
769
3 279
8 933
183 173
–868
195 286
Loans to credit institutions
6 334
49
81 207
174 752
–216 890
45 452
Loans to the public
1 196 255
185 544
269 831
666
 
1 652 296
Interest-bearing securities
 
1 299
44 098
150 990
–1 926
194 461
Financial assets for which customers bear inv. risk
219 320
5 573
 
 
 
224 893
Investments in associates and joint ventures
4 528
 
 
2 151
 
6 679
Derivatives
–32
 
53 216
29 326
–38 086
44 424
Tangible and intangible assets
2 105
12 034
772
8 525
 
23 436
Other assets
3 914
65 441
15 289
449 425
–512 768
21 301
Total assets
1 433 193
273 219
473 346
999 008
–770 538
2 408 228
Amounts owed to credit institutions
25 725
 
184 172
63 340
–203 551
69 686
Deposits and borrowings from the public
571 465
240 533
149 175
–119
–7 041
954 013
Debt securities in issue
 
1 305
10 034
848 305
–3 890
855 754
Financial liabilities for which customers bear inv. risk
219 887
5 905
 
 
 
225 792
Derivatives
 
 
55 168
23 822
–38 013
40 977
Other liabilities
551 486
 
47 047
169
–518 043
80 659
Senior non-preferred liabililties
 
 
 
10 805
 
10 805
Subordinated liabilities
 
 
 
31 934
 
31 934
Total liabilities
1 368 563
247 743
445 596
978 256
–770 538
2 269 620
Allocated equity
64 630
25 476
27 750
20 752
 
138 608
Total liabilities and equity
1 433 193
273 219
473 346
999 008
–770 538
2 408 228
Key figures
Return on allocated equity, total operations, %
21,0
19,6
9,1
–7,4
14,7
Cost/income ratio
0,36
0,37
0,47
1,61
0,43
Credit impairment ratio, %
0,01
0,00
0,47
0,00
0,09
Loans/deposits
209
77
158
150
 
168
Loans to the public, excl. repurchase agreements and Swedish 
­National Debt Office, stage 3, SEKbn
3
2
9
14
Loans to the public, excl. repurchase agreements and Swedish 
­National Debt Office, total, SEKbn
1 196
186
223
1
 
1 606
Provisions for expected credit impairments, SEKbn
1
1
5
7
Deposits, excl. repurchase agreements and Swedish National  
Debt Office, SEKbn
571
241
142
954
Risk exposure amount, SEKbn
391
94
144
20
649
Full-time employees
3 610
3 656
1 244
6 708
15 218
Allocated equity, average, SEKbn
64
25
27
17
134

104
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2018
Swedish 
Banking
Baltic 
Banking
Large corporates 
& Institutions
Group Functions 
& Other
Eliminations
Total
Income statement
Net interest income
15 376
4 768
3982
1092
25 228
Net commissions
7 598
2 503
2 605
84
46
12 836
Net gains and losses on financial items
406
272
1 777
–345
2
2112
Share of the profit or loss of associates and joint ventures
693
 
 
335
 
1 028
Other income
1 484
737
156
835
–194
3 018
Total income
25 567
8 280
8 520
2 001
–146
44 222
of which internal income
55
 
127
479
–661
 
Staff costs
3 101
954
1 356
4 345
 
9 756
Variable staff costs
71
57
201
199
 
528
Other expenses
5 793
1 833
2 201
–3 816
–146
5 865
Depreciation/amortisation
57
91
83
455
 
686
Total expenses
9 022
2 935
3 841
1 183
–146
16 835
Profit before impairment
16 545
5 345
4 679
818
 
27 387
Impairment of intangible fixed assets
 
 
306
 
306
Impairment of tangible assets
 
8
 
 
 
8
Credit impairment
598
–208
142
–11
 
521
Operating profit
15 947
5 545
4 537
523
26 552
Tax expense
3 073
802
977
522
5 374
Profit for the year
12 874
4 743
3 560
1
 
21 178
Profit for the year attributable to the 
shareholders of Swedbank AB
12 858
4 743
3 560
1
 
21 162
Non-controlling interests
16
 
 
 
 
16
Net commission income
Commission income
Payment processing
729
703
390
274
–33
2 063
Cards
2 321
1 562
2 145
–2
–385
5 641
Service concepts
820
99
320
–54
 
1 185
Asset Management and custody
5 073
408
1 251
–8
–38
6 686
Corporate Finance and securities
211
378
2
–2
589
Lending and guarantee
289
235
702
23
1
1 250
Deposits
26
140
5
2
 
173
Real estate brokerage
181
 
 
 
 
181
Life and non-life Insurance
612
57
 
 –5
 
664
Other commission income
218
25
264
28
 
535
Total commission income
10 480
3 229
5 455
260
–457
18 967
Commission expenses
2 882
726
2 850
176
–503
6 131
Net Commission Income
7 598
2 503
2 605
84
46
12 836

105
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2018
Swedish 
Banking
Baltic 
Banking
Large corporates 
& Institutions
Group Functions 
& Other
Eliminations
Total
Balance sheet
Cash and balances with central banks
1 227 
3 032
2 401
156 501
163 161
Loans to credit institutions
5 557
25
116 193
166 366
–251 873
36 268
Loans to the public
1 186 647
169 147
261 217
10 357
 
1 627 368
Interest-bearing securities
259
1 475
46 501
109 619
–4 963
152 891
Financial assets for which customers bear inv. risk
173 367
4 501
 
 
 
177 868
Investments in associates and joint ventrues
3 954
 
 
2 134
 
6 088
Derivatives
 –37
46 501
23 460
–30 259
39 665
Tangible and intangible assets
815
11 598
698
5 973
 
19 084
Other assets
2 918
60 303
14 642
460 335
–514 499
23 699
Total assets
1 374 707
250 081
488 153
934 745
–801 594
2 246 092
Amounts owed to credit institutions
27 633
 
208 951
60 464
–239 830
57 218
Deposits and borrowings from the public
565 502
220 717
141 499
1 387
–8 355
920 750
Debt securities in issue
 
1 255
12 711
797 225
–6 831
804 360
Financial liabilities for which customers bear inv. risk
173 957
4 705
 
 
 
178 662
Derivatives
 
 
45 380
16 023
–30 087
31 316
Other liabilities
544 499
 
54 577
–379
–516 491
82 206
Subordinated liabilities
 
 
 
34 184
 
34 184
Total liabilities
1 311 591
226 677
463 118
908 904
–801 594
2 108 696
Allocated equity
63 116
23 404
25 035
25 841
137 396
Total liabilities and equity
1 374 707
250 081
488 153
934 745
–801 594
2 246 092
Key figures
Return on allocated equity, total operations, %
20.9
20.7
14.0
0.0
16.1
Cost/income ratio
0,35
0,35
0,45
0,59
0,38
Credit impairment ratio, %1
0,05
–0,13
0,06
–0,05
0,03
Loans/deposits
212
77
160
95
172
Loans to the public, excl. repurchase agreements and  
Swedish National Debt Office, stage 3, SEKbn
3
2
6
11
Loans to the public, excl. repurchase agreements and  
Swedish National Debt Office, total, SEKbn
1 187
170
221
1 578 
Provisions for expected credit impairments SEKbn
2
1
3
6
Deposits, excl. repurchase agreements and  
Swedish National Debt Office, SEKbn
560
221
139
920
Risk exposure amount, SEKbn
382
89
146
21
638
Full-time employees
3 833
3 586
1 196
6 250
14 865
Allocated equity, average, SEKbn
62
23
25
22
131

106
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Financing
Trading & Capital Market Products
private residential lending
equity trading
consumer financing
structured products
corporate lending
corporate finance
leasing
custody services
other financing products
fixed income trading
trade finance
currency trading
factoring
other capital market products
Savings & Investments
Other
savings accounts
administrative services
mutual funds and insurance savings
treasury operations
pension savings
Ektornet
institutional asset management
real estate brokerage
other savings and investment products
real estate management
Payments & Cards
legal services
current accounts (incl. cash management)
safe deposit boxes
cash handling
other
domestic payments
international payments
mobile payments
Other also includes income from all countries apart from
document payments
Sweden, Baltics and Norway
debit cards
credit cards (incl. EnterCard)
card acquiring
other payment products
G6 Products
In the product area report income has been distributed among five principal product areas. The Group does not have a single customer which accounts for more than 10 per cent of 
the Group’s total income. 
2019
Financing
Savings & 
­Investments
Payments  
& Cards
Trading & 
Capital markets
Other
Total
Net interest income
22 660 
1 223 
2 009 
-139 
236 
25 989 
Net commissions
1 098 
5 480 
5 095 
402 
909 
12 984 
Net gains and losses on financial items
70 
56 
33 
2 312 
1 158 
3 629 
Share of the profit or loss of associates
543 
279 
822 
Other income
96 
1 519 
260 
42 
619 
2 535 
Total income
23 923 
8 278 
7 940 
2 618 
3 202 
45 960 
2018
Financing
Savings & 
­Investments
Payments  
& Cards
Trading & 
Capital markets
Other
Total
Net interest income
23 074 
189 
1 384 
-170 
752 
25 228 
Net commissions
1 255 
5 300 
5 035 
506 
740 
12 836 
Net gains and losses on financial items
19 
27 
3 
1 961 
103 
2 112 
Share of the profit or loss of associates
489 
539 
1 028 
Other income
49 
1 256 
249 
33 
1 430 
3 018 
Total income
24 397 
6 773 
7 160 
2 329 
3 563 
44 222

107
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The geographical distribution is primarily based on where the business is carried out and is not comparable to the operating segment reporting. In the geographical distribution, 
intangible assets, mainly goodwill related to acquisitions, has been allocated to the country where the operations were acquired. The column Other includes operations in Finland, 
Denmark, Luxembourg and China. A more detailed country distribution is provided on Swedbank’s website.
G7 Geographical distribution
2019
Sweden
Estonia
Latvia
Lithuania
Norway
USA
Other
Eliminations
Total
Income statement
Net interest income
19 539
2 304
1 142
1 460
1 052
71
393
28
25 989
Net commissions
9 429
947
818
1 052
401
71
261
5
12 984
Net gains and losses on financial items
3 028
126
129
125
190
 
31
 
3 629
Share of the profit or loss of associates  
and joint ventures
601
 
 
 
166
 
55
 
822
Other income
1 828
1 120
130
357
299
1
59
–1 258
2 536
Total income
34 425
4 497
2 219
2 994
2 108
143
799
–1 225
45 960
Staff costs
7 736
1 038
535
745
372
45
208
 
10 679
Variable staff costs
290
47
29
34
33
1
6
 
440
Other expenses
6 457
544
557
527
315
–18
157
–1 225
7 314
Depreciation/amortisation
1 228
112
56
77
52
4
22
 
1 551
Total expenses
15 711
1 741
1 177
1 383
772
32
393
–1 225
19 984
Profit before impairment
18 714
2 756
1 042
1 611
1 335
111
407
 
25 976
Impairment of intangible fixed assets
79
 
 
 
 
 
 
 
79
Impairment of tangible fixed assets
 
 
5
3
 
 
 
 
8
Credit impairment
172
20
–4
–13
1 059
58
177
 
1 469
Operating profit
18 463
2 736
1 041
1 621
278
53
228
 
24 420
Tax expense
3 712
411
211
250
65
11
51
 
4 711
of which current tax
3 753
528
15
241
32
11
49
 
4 629
of which paid tax
3 646
582
27
251
37
-1
55
 
4 597
Profit for the period
14 751
2 325
830
1 371
211
42
179
 
19 709
Profit for the year attributable to the 
shareholders of Swedbank AB
14 739
2 325
830
1 371
211
42
179
 
19 697
Non-controlling interests
12
 
 
 
 
 
 
 
12
Net commission income
Commission income
Payment processing
1 341
245
238
258
5
 
10
–13
2 084
Cards
3 519
615
527
577
229
 
481
 
5 948
Service concepts
978
 
 
119
118
 
53
–20
1 248
Asset Management and custody
6 535
234
106
117
 
 
15
–44
6 963
Corporate Finance and securities
355
22
6
19
93
1
66
 
562
Lending and guarantee
660
92
68
90
156
70
88
–26
1 198
Deposits
28
9
48
79
 
 
 
 
164
Real estate brokerage
176
 
 
 
 
 
11
 
187
Life and non-life Insurance
599
78
25
23
 
 
 
–48
677
Other commission income
324
7
14
12
66
9
18
–9
441
Total commission income
14 515
1 302
1 032
1 294
667
80
742
–160
19 472
Commission expense
5 086
355
214
242
265
9
482
–165
6 488
Net Commission Income
9 429
947
818
1 052
402
71
260
5
12 984

108
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2019
Sweden
Estonia
Latvia
Lithuania
Norway
USA
Other
Eliminations
Total
Balance sheet
 
 
 
 
 
 
 
 
 
Cash and balances with central banks
30 805
23 827
20 798
42 996
1 007
18 908
56 945
 
195 286
Loans to credit institutions
40 997
2 035
686
1 158
4 108
39 856
–370
–43 018
45 452
Loans to the public
1 395 044
86 357
37 274
62 562
50 707
1 722
19 665
–1 035
1 652 296
Interest-bearing securities
179 208
2 909
839
1 815
6 044
1 118
2 528
 
194 461
Financial assets for which customers bear inv. risk
219 320
5 573
 
 
 
 
 
 
224 893
Investments in associates and joint ventures
5 490
14
 
 
947
 
228
 
6 679
Derivatives
37 252
97
67
150
9 620
 
15
–2 777
44 424
Tangible assets and intangible fixed assets
10 583
4 860
2 727
4 750
452
3
61
 
23 436
Other assets
56 870
1 305
661
481
4 565
32
480
–43 093
21 301
Total assets
1 975 569
126 977
63 052
113 912
77 449
61 639
79 553
–89 923
2 408 228
Amounts owed to credit institutions
60 488
206
91
82
53 572
20 470
74 885
–140 108
69 686
Deposits and borrowings from the public
700 159
94 964
50 932
99 324
5 647
392
3 123
–528
954 013
Debt securities in issue
815 439
7
 
 
 
40 308
 
 
855 754
Financial liabilities for which customers bear inv. risk
219 887
5 905
 
 
 
 
 
 
225 792
Derivatives
33 930
124
76
131
9 547
 
21
–2 852
40 977
Other liabilities
 
15 211
5 788
5 318
3 399
–625
–1 997
53 565
80 659
Senior non-preferred liabililties
10 805
10 805
Subordinated liabilities
31 934
 
 
 
 
 
 
 
31 934
Total liabilities
1 872 642
116 417
56 887
104 855
72 166
60 545
76 031
–89 923
2 269 620
Allocated equity
102 927
10 560
6 165
9 057
5 283
1 094
3 522
 
138 608
Total liabilities and equity
1 975 569
126 977
63 052
113 912
77 449
61 639
79 553
–89 923
2 408 228

109
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2018
Sweden
Estonia
Latvia
Lithuania
Norway
USA
Other
Eliminations
Total
Income statement
Net interest income
19 100
2 175
1 082
1 291
1 102
87
387
4
25 228
Net commissions
9 422
882
787
973
438
51
264
19
12 836
Net gains and losses on financial items
1 557
103
115
84
188
 
66
 
2 112
Share of the profit or loss of associates  
and joint ventures
756
3
 
 
152
 
117
 
1 028
Other income
2 652
928
103
256
66
1
22
–1 010
3 018
Total income
33 487
4 091
2 087
2 604
1 946
138
856
–987
44 222
Staff costs
7 215
890
466
629
350
45
161
 
9 756
Variable staff costs
358
47
27
30
60
1
5
 
528
Other expenses
5 125
479
387
390
335
–14
150
–987
5 865
Depreciation/amortisation
526
60
44
41
12
 
3
 
686
Total expenses
13 224
1 476
924
1 090
757
32
319
–987
16 835
Profit before impairment
20 263
2 615
1 163
1 514
1 189
106
537
 
27 387
Impairment of intangible fixed assets
306
 
 
 
 
 
 
 
306
Impairment of tangible fixed assets
 
 
 
8
 
 
 
 
8
Credit impairment
895
–153
–26
–36
–288
 
129
 
521
Operating profit
19 062
2 768
1 189
1 542
1 477
106
408
 
26 552
Tax expense
3 981
500
233
244
327
25
64
 
5 374
of which current tax
4 021
682
3
229
341
25
64
 
5 365
of which paid tax
4 296
589
95
36
81
5
63
 
5 165
Profit for the period
15 081
2 268
956
1 298
1 150
81
344
 
21 178
Profit for the year attributable to the 
shareholders of Swedbank AB
15 065
2 268
956
1 298
1 150
81
344
 
21 162
Non-controlling interests
16
 
 
 
 
 
 
 
16
Net commission income
Commission income
Payment processing
1 363
233
227
243
1
 
8
–12
2 063
Cards
3 477
569
485
508
196
 
406
 
5 641
Service concepts
942
 
 
99
115
 
54
–25
1 185
Asset Management and custody
6 218
236
120
126
 
 
21
–35
6 686
Corporate Finance and securities
395
27
12
12
81
7
55
 
589
Lending and guarantee
700
83
67
86
178
53
87
–4
1 250
Deposits
31
9
46
87
 
 
 
 
173
Real estate brokerage
170
 
 
 
 
 
11
 
181
Life and non-life Insurance
606
57
24
27
 
 
 
–50
664
Other commission income
370
13
13
13
98
9
22
–3
535
Total commission income
14 272
1 227
994
1 201
669
69
664
–129
18 967
Commission expense
4 850
345
207
228
231
18
400
–148
6 131
Net Commission Income
9 422
882
787
973
438
51
264
19
12 836
2018
Sweden
Estonia
Latvia
Lithuania
Norway
USA
Other
Eliminations
Total
Balance sheet
 
 
 
 
 
 
 
 
 
Cash and balances with central banks
4 595
23 197
21 885
37 108
795
26 228
49 353
 
163 161
Loans to credit institutions
30 965
3 013
1 013
1 680
4 503
74 056
546
–79 508
36 268
Loans to the public
1 383 951
79 926
34 931
54 638
53 010
2 020
19 888
–996
1 627 368
Interest-bearing securities
136 027
3 117
767
1 299
7 279
2 152
2 250
 
152 891
Financial assets for which customers bear inv. risk
173 478
4 390
 
 
 
 
 
 
177 868
Investments in associates and joint ventures
4 806
14
 
 
1 005
 
263
 
6 088
Derivatives
31 883
182
46
83
10 947
 
737
–4 213
39 665
Tangible assets and intangible fixed assets
7 039
4 611
2 671
4 513
238
 
12
 
19 084
Other assets
35 598
1 061
958
542
3 407
168
1 813
–19 848
23 699
Total assets
1 808 342
119 511
62 271
99 863
81 184
104 624
74 862
–104 565
2 246 092
Amounts owed to credit institutions
55 331
516
32
45
60 118
27 053
69 348
–155 225
57 218
Deposits and borrowings from the public
688 031
88 714
50 451
86 299
4 249
747
3 061
–802
920 750
Debt securities in issue
728 158
11
 
 
 
76 191
 
 
804 360
Financial liabilities for which customers  
bear inv. risk
173 957
4 705
 
 
 
 
 
 
178 662
Derivatives
23 926
193
54
79
10 236
 
723
–3 895
31 316
Other liabilities
 
15 405
5 773
5 671
 
 
 
55 357
82 206
Subordinated liabilities
34 184
 
 
 
 
 
 
 
34 184
Total liabilities
1 703 587
109 544
56 310
92 094
74 603
103 991
73 132
–104 565
2 108 696
Allocated equity
104 755
9 967
5 961
7 769
6 581
633
1 730
 
137 396
Total liabilities and equity
1 808 342
119 511
62 271
99 863
81 184
104 624
74 862
–104 565
2 246 092

110
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G8 Net interest income
2019
2018
Average 
balance
Interest 
income/ 
expense
Average 
annual 
interest 
rate, %
Average 
balance
Interest 
income/ 
expense
Average 
annual 
interest 
rate, %
Cash and balances with central banks
253 617
439
0,17
354 898
607
0,17
Treasury bills and other bills eligible for refinancing with central banks, etc.
144 829
172
0,12
124 558
160
0,13
Loans to credit institutions
50 525
539
1,07
39 373
147
0,37
Loans to the public
1 668 584
32 947
1,97
1 602 128
31 069
1,94
Interest-bearing securities
66 347
118
0,18
70 937
56
0,08
Total interest-bearing assets
2 183 902
34 215
1,57
2 191 894
32 039
1,46
Derivatives
49 960
1 473
66 752
2 157
Other assets
271 084
216
248 122
202
Total assets
2 504 946
35 904
1,43
2 506 768
34 398
1,37
deduction of trading interests reported in net gains and losses on financial items
534
340
Interest income
35 370
34 058
Amounts owed to credit institutions
103 576
1 005
0,97
112 165
971
0,87
Deposits and borrowings from the public
988 620
1 663
0,17
951 561
1 234
0,13
of which deposit guarantee fees
457
414
Debt securities in issue
905 652
11 464
1,27
941 181
12 726
1,35
Senior non-preffered liabilities
1 450
15
1,03
Subordinated liabilities
30 627
993
3,24
30 114
1 016
3,37
Total Interest-bearing liabilities
2 029 925
15 140
0,75
2 035 021
15 947
0,78
Derivatives
35 514
–6 945
52 001
–8 945
Other liabilities
305 571
1 246
288 301
1 702
of which government resolution fund fee
1 117
1 656
of which lease liabilities
3 810
42
1,10
Total liabilities
2 371 010
9 441
0,40
2 375 323
8 704
0,37
Equity
133 936
131 445
Total liabilities and equity
2 504 946
9 441
0,38
2 506 768
8 704
0,35
deduction of trading interests reported in net gains and losses on financial items
60
–126
Interest expense
9 381
8 830
Net interest income
25 989
25 228
Net investment margin before trading interest are deducted
1,06
1,02
Interest income on Stage 3 loans 
291
279
Interest expense on financial liabilities at amortised cost
15 672
17 337
Negative yield on financial assets
2 031
2 987
Negative yield on financial liabilities
592
770

111
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G9 Net commission income
Commission income
Commision expense
Net commision income
2019
Over time
Point in time
Total
Payment processing
513
1 571
2 084
–1 167
917
Cards
447
5 501
5 948
–2 654
3 294
Service concepts
1 174
74
1 248
–172
1 076
Asset management and custody
6 846
117
6 963
–1 629
5 334
Life insurance
580
2
582
–220
362
Securities
27
395
422
–304
118
Corporate finance
81
59
140
140
Lending
707
270
977
–79
898
Guarantee
183
38
221
221
Deposits
127
37
164
164
Real estate brokerage
187
187
187
Non-life insurance
95
0
95
–35
60
Other
348
93
441
–228
213
Total
11 128
8 344
19 472
–6 488
12 984
Commission income
Commision expense
Net commision income
2018
Over time
Point in time
Total
Payment processing
581
1 482
2 063
–1 166
897
Cards
789
4 852
5 641
–2 465
3 176
Service concepts
1 185
1 185
–177
1 008
Asset management and custody
6 686
6 686
–1 573
5 113
Life insurance
562
14
577
–191
386
Securities
34
432
466
–296
170
Corporate finance
123
123
123
Lending
740
275
1 015
–67
948
Guarantee
200
36
235
235
Deposits
142
31
173
173
Real estate brokerage
181
181
181
Non-life insurance
87
87
–33
54
Other 
474
60
535
–163
372
Total
11 605
7 362
18 967
–6 131
12 836

112
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
During 2019 the shares in the subsidary Ölands Bank AB and the shares in the associ-
ated company BABS Paylink AB were sold giving a gapital gain of SEK 40m and 25m. 
During 2018 the shares in the associated company UC AB were sold giving a capital 
gain of SEK 677m. 
G11 Net insurance
G12 Other income
G10 Net gains and losses on financial items  
2019
2018
Insurance premiums
Life insurance
1 624
1 464
Non-life insurance
1 111
972
Total
2 735
2 436
2019
2018
Insurance provisions
Life insurance
–613
–644
Non-life insurance
–657
–600
Total
–1 270
–1 244
2019
2018
Net insurance
Life insurance
1 011
820
Non-life insurance
454
372
Total
1 465
1 192
2019
2018
Profit from sale of subsidiaries and associates
66
688
Income from real estate operations
13
17
Profit from sale of condominiums
8
Sold inventories
25
15
of which revenues
248
248
of which carrying amount
–223
–233
IT services
410
535
Other operating income
549
571
Total
1 071
1 826
2019
2018
Fair value through profit or loss
Trading and derivatives
Shares and share related derivatives
314
984
of which dividend
115
170
Interest-bearing instruments and interest related 
­derivatives
878
–258
Other financial instruments
–10
–15
Total
1 182
711
Other
Shares
690
–26
of which dividend
37
11
Interest-bearing instruments
–215
–265
Total
475
–291
Designated at fair value through profit or loss
Financial liabilities
85
238
Total
85
238
Hedge accounting at fair value
Ineffective part in hedge accounting at fair value
Hedging instruments
3 368
–373
Hedged item
–3 357
339
Total
11
–34
Ineffective part in portfolio hedge accounting  
at fair value
Hedging instruments
540
–16
Hedged item
–497
–22
Total
43
–38
Ineffective part in cash flow hedges
7
1
Derecognition gain or loss for financial liabilities  
at amortised cost
–153
–249
Derecognition gain or loss for financial assets  
at amortised cost
212
133
Trading related interest
Interest income
534
340
Interest expense
–60
126
Total
474
466
Change in exchange rates
1 293
1 176
Total
3 629
2 112

113
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2 VARIABLE COMPENSATION
Swedbank currently has four share–based variable compensation programmes: 
­Programme 2016, Programme 2017, Programme 2018 and Programme 2019.  
In 2019 shares associated with Programme 2015 were transferred.
2.1 Programme 2019
Programme 2019 consists of three parts: a general programme (Eken), an individual 
programme (IP) and an individual programme for employees in asset management 
(IPAM). Eken covers the majority of employees in the Group and consists of share-based 
compensation that is deferred for 3 years (5 years for the Group Executive Committee). 
IP covers approximately 480 participants. For IP participants who have been identified 
as material risk takers, half of the variable pay within IP will be share-based, and the 
other half cash-based. At least 40 percent of the variable pay is deferred for 4 years. 
For other IP participants variable pay is cash-based.  IPAM covers around 60 partici-
pants and consists of half fund unit-based compensation and half cash compensation. 
At least 40 per cent of the variable compensation is deferred for 3–5 years.
Further information on Programme 2019 as well as Programmes 2016–2018 can be 
found in Swedbank’s Factbook, which is published on the group website in the detailed 
agenda items that serve as a basis for resolutions by the Annual General Meeting.
No allocation of variable compensation, Eken and IP, has been done to higher levels 
of managers and senior executives for performance in 2019.
2.2 Reporting of share–based compensation
Share-based compensation is allotted in the form of so-called performance rights  
(future shares in Swedbank) and accrued over the duration of each programme. 
Transfer of shares requires continued employment at the time of transfer (Eken) 
or ­during a defined part of the deferral period (IP).
The duration of each programme comprises of i) the initial performance year, fol-
lowed by ii) allotments and a deferral period of at least three years (at least five years 
for eligible GEC members) followed by iii) the transfer of shares to the participants that 
ends the deferral period. 
During the initial performance year the compensation is expressed and measured in 
the form of a monetary value corresponding to the performance amount. Thereafter, 
the compensation is expressed in terms of the number of performance rights until the 
delivery date.
Performance rights for each programme are valued in the accounts based on the 
Swedbank share price on the valuation date i.e. the date when the company and the 
counterpart agree to the contractual terms and conditions in eachprogramme. 
Each performance right entitles its holder to one share in Swedbank plus, for the 
majority of the participants, compensation for any dividends distributed that the 
performance right did not qualify for during the programme’s duration. 
The reported cost of each programme can change during the period until the delivery 
date if the performance amount changes or because the performance rights are 
forfeited. The reported cost, excluding social insurance charges, does not change when 
the market value of the performance rights changes. Social insurance charges are cal-
culated and recognised continuously based on market value and ultimately determined 
at the time of delivery.
1 COMPENSATION WITHIN SWEDBANK
The majority of employees at Swedbank have fixed and variable compensation 
components, which together with pension and other benefits represent their total 
compensation. Total compensation is market based and designed to achieve a sound 
balance between the fixed and variable components.
Information on compensation according to the SFSA’s regulations and general guide-
lines on compensation policies (FFFS 2011:1) is published on Swedbank’s website.
1) The Group’s pension cost for the year is specified in note G39.
G13 Staff costs and other staff–related key ratios
Total staff costs
2019
2018
Salaries and Board fees
6 976
6 455
Compensation through shares in Swedbank AB
273
322
Social insurance charges
1 984
2 049
Pension costs1
1 303
1 128
Training costs
130
123
Other staff costs
453
207
Total
11 119
10 284
of which variable staff costs
440
528
of which personnel redundancy costs
144
–179
Variable Compensation Programme 2014–2019
2019
2018
Programme 2014
Recognised expense for compensation that is settled  
with shares in Swedbank AB
20
Recognised expense for social insurance charges related  
to the share-settled compensation
6
Programme 2015
Recognised expense for compensation that is settled  
with shares in Swedbank AB
10
48
Recognised expense for social insurance charges related  
to the share-settled compensation
2
19
Programme 2016
Recognised expense for compensation that is settled  
with shares in Swedbank AB
54
62
Recognised expense for social insurance charges related  
to the share-settled compensation
–2
17
Recognised expense for cash-settled compensation
0
Recognised expense for payroll overhead costs related  
to the cash-settled compensation
0
Programme 2017
Recognised expense for compensation that is settled  
with shares in Swedbank AB
49
52
Recognised expense for social insurance charges related  
to the share-settled compensation
2
12
Recognised expense for cash-settled compensation
6
1
Recognised expense for fund compensation
1
4
Recognised expense for payroll overhead costs related  
to the cash-settled compensation and fund shares
1
1
Programme 2018
Recognised expense for compensation that is settled  
with shares in Swedbank AB
65
139
Recognised expense for social insurance charges related  
to the share-settled compensation
3
29
Recognised expense for cash-settled compensation
28
104
Recognised expense for fund compensation
2
11
Recognised expense for payroll overhead costs related  
to the cash-settled compensation and fund shares
10
3
Programme 2019
Recognised expense for compensation that is settled  
with shares in Swedbank AB
96
Recognised expense for social insurance charges related  
to the share-settled compensation
19
Recognised expense for cash-settled compensation
56
Recognised expense for fund compensation
7
Recognised expense for payroll overhead costs related  
to the cash-settled compensation and fund shares
31
Total recognised expense
440
528
Number of performance rights that establish the recognised 
share-based expense, millions
2019
2018
Outstanding at the beginning of the period
5,9
6,9
Allotted
2,1
2,1
Forfeited
0,3
0,3
Exercised
1
2,8
Outstanding at the end of the period
6,7
5,9
Exercisable at the end of the period
0
0
Weighted average fair value per performance right  
at measurement date, SEK
179
199
Weighted average remaining contractual life, months
19
20
Weighted average exercise price per performance right, SEK
0
0

114
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
3 CEO COMPENSATION
Jens Henriksson assumed the role as CEO on 1 October 2019. Jens Henriksson’s 
­employment terms do not contain any variable compensation. The fixed salary 
is SEK 13 000 thousand. 
The ordinary retirement age is 65 and Jens Henriksson has a premium to pension 
insurance of 4,5 per cent on salary up to 7,5 income base amount and 30 per cent on 
salary over 7,5 income base amount up to the fixed annual salary. The pensionable 
salary is capped at SEK 15 000 thousand by decision from the Board of Directors. If the 
employment is terminated by Swedbank, Jens Henriksson receives 75 per cent of his 
salary during a 12-month term of notice and in addition a severance pay, equivalent to 
75 per cent of his salary during 12 months. A deduction against salary and severance 
pay is made for income earned from new employment. If Jens Henriksson resigns, the 
term of notice is six months and no severance pay is paid.
4 COMPENSATION TO OTHER SENIOR EXECUTIVES
4.1 General on other senior executives
Members of the Group Executive Committee, excluding the CEO, are defined in this 
context as other senior executives. Compensation to other senior executives includes 
compensation paid by all Group companies during the year, Swedish as well as foreign, 
and refers to compensation paid during the period which these individuals were active 
as senior executives.
Senior executives are eligible for Eken except for the Chief Executive Officer and 
three other senior executives. No allocation of variable compensation, Eken and IP, 
has been done to senior executives who are covered by variable compensation for 
the performance year 2019.
A total of 14 individuals were members of the Group Executive Committee at the 
end of the year: Aet Altroff, Ģirts Bērziņš, Mikael Björknert, Lars-Erik Danielsson, 
Gunilla Domeij Hallros, Anders Ekedahl, Anders Karlsson, Leif Karlsson, Ola Laurin,  
Jon Lidefelt, Lotta Lovén, Tarmo Pajumets, Carina Strand and Kerstin Winlöf. Nine 
individuals have been active as other senior executives throughout the entire year. 
13 were active as senior executives during part of the year: Gunilla Domeij Hallros, 
Björn Elfstrand, Charlotte Elsnitz, Ragnar Gustavii, Tomas Hedberg, Cecilia Hernqvist, 
Anders Karlsson, Helo Meigas, Jon Lidefelt, Niclas Olsson, Tarmo Pajumets, Christer 
Trägårdh och Kerstin Winlöf.
4.2 Pension and other contractual terms to other senior executives
4.2.1 Pension
Swedbank applies the BTP collective pension for employees in Sweden. The BTP plan is 
in addition to the State pension for Swedish employees and consists of BTP1, a defined 
contribution pension plan, and BTP2, primarily a defined benefit pension plan. BTP1 
applies to all employees hired from 1 February 2013. 
In a defined contribution pension plan the employer pays a pension premium equiva-
lent to a percentage of the employee’s salary. In a defined benefit pension plan the 
employer guarantees a future pension, often expressed as a percentage of salary. The 
pensionable salary is capped at 30 income base amounts (the income base amount for 
2019 was SEK 64 400).
Nine senior executives are eligible for BTP2 and two senior executives are eligible 
for BTP1. In addition, an individual defined contribution pension is paid on fixed salaries 
exceeding 30 income base amounts for nine senior executives. 
The maximum pensionable salary for the defined contribution portion for all senior 
executives is determined by the Board of Directors.
4.2.2 Other contractual terms
Term of notice, 
termination by Swedbank
Severance pay,
termination by Swedbank
Resignation 
by employee
4 persons
12 months
12 months
6 months
5 persons
12 months
6 months
6 months
1 person
6 months
12 months
6 months
1 person 
1 month
6 months
1 month
1 person
3 months
12 months
1 month
1 person
3 months
1 month
1 person
5 months
3 months
Conditions within the framework of the contractual terms:
• In case of termination, salary and benefits are paid during the term of notice.
• In case of termination by Swedbank, severance pay is paid.
• If new work is found, a deduction is made for salary income during the term of notice 
and during the period when severance pay is paid for those employed in Sweden.
1) Includes holiday pay, employee loan interest benefit, share benefit, lunch subsidy, 
health care insurance benefit, telephone and fund discount.
2) Includes salary during term of notice, severance pay, pension costs and benefits, 
if any.
SEK Thousands
2019
Jens Henriksson
Fixed compensation, salary
3 250
Other compensation/benefits
52
Total
3 302
Pension cost, excluding payroll tax
944
Other senior executives
2019
2018
Fixed compensation, salary
61
75
Variable compensation, cash
0
0
Variable compensation, share-based
1
4
Other compensation/benefits1
4
10
Compensation at terminated contract2
35
0
Total
101
89
Pension cost, excluding payroll tax
17
24
Number of performance rights share-based  
compensation used for the annual cost
7 870
17 901
Total number of allotted performance rights  
share-based compensation
60 348
91 368
No. of persons at year end
14
16
SEK Thousands
2019
Anders Karlsson
Fixed compensation, salary
6 764
Other compensation/benefits
113
Total
6 877
Pension cost, excluding payroll tax
1 398
SEK Thousands
2019
2018
Birgitte Bonnesen
Fixed compensation, salary
3 735
14 333
Other compensation/benefits
405
788
Termination benefits
26 601
0
Total
30 741
15 121
Pension cost, excluding payroll tax
1 307
4 550
Anders Karlsson was acting CEO from the 28 March until the 30 September 2019. 
Birgitte Bonnesen was CEO until the 28 March 2019. Since Birgitte Bonnesen’s 
employment was terminated by Swedbank, Birgitte Bonnesen receives 75 per cent of 
her salary during a 12-month term of notice. Subsequently Birgitte Bonnesen receives 
severance pay equivalent to 75 per cent of her salary during a period of 12 months. 
A deduction against severance pay is made in case of income earned from new work.

115
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
5.2 Compensation to the Chair
The Chair receives fixed compensation for board work as well as fixed compensation 
for committee work i.e. no variable compensation, pension or other benefits. Below 
discloses the costs for 2019 and 2018.
6 SUMMARY – COMPENSATION TO THE BOARD OF DIRECTORS, CEO AND  
OTHERS IN THE GROUP EXECUTIVE COMMITTEE
Below shows the costs recognised for 2019 and 2018 for the Board of Directors,  
CEO and others in the Group Executive Committee. The costs exclude social charges 
and payroll taxes.
7 SUMMARY – PENSIONS AND LOANS TO BOARDS OF DIRECTORS AND  
EQUIVALENT SENIOR EXECUTIVES IN THE ENTIRE GROUP
Pension costs reported below refer to current Directors, CEOs, Vice Presidents and equiv-
alent senior executives in the Group. The costs exclude social charges and payroll taxes. 
Pension obligations for former CEOs and Vice Presidents have been funded through 
insurance and pension foundations. The latter’s obligations amounted to SEK 313m  
in 2019 (295). The Group has not pledged any assets or other collateral or committed  
to contingent liabilities on behalf of any of the above–mentioned group of senior 
executives.
8 SUMMARY – COMPENSATION TO BOARDS OF DIRECTORS AND EQUIVALENT 
SENIOR EXECUTIVES IN THE ENTIRE GROUP
Below shows the salaries and other compensation for Boards of Directors, CEOs, Vice 
Presidents and equivalent senior executives in the Group. This group includes current 
employees. Fees to CEOs and other senior executives for internal board duties are 
deducted against their salaries, unless otherwise agreed. The costs exclude social 
charges and payroll taxes. 
5 COMPENSATION TO THE BOARD OF DIRECTORS 
5.1 General information on remuneration to the entire Board of Directors
Compensation to the members of the Board of Directors, as indicated below, is determined by the Annual General Meeting and refers to annual fees from the Annual General Meeting 
2019 to the Annual General Meeting 2020. Board compensation consists of fixed compensation for board work as well as fixed compensation for any committee work. The three com-
mittees are the Audit Committee, the Risk and Capital Committee and the Remuneration Committee. The Group does not have any pension entitlements for Board members. Compensa-
tion payments have been adjusted to the time working in the Board for members leaving their assignments and members with changed assignments during the year, as shown below.
2019
2018
Compensation to the Board of Directors, corresponds to the annual fees up to the AGM 
SEK thousands
Board fees
Committee 
work
Total
Board fees
Committee 
work
Total
Göran Persson, Chair
2630
355
2985
Bo Magnusson, Deputy chair
885
750
1 635
Bodil Eriksson, Director
605
105
710
570
103
673
Josefin Lindstrand, Director
605
490
1 095
Mats Granryd, Director
605
240
845
570
233
803
Bo Johansson, Director
605
250
855
570
230
800
Kerstin Hermansson, Director
605
240
845
Anna Mossberg, Director until 2019-04-23 and from 2019-06-19
504
272
776
570
103
673
Anna Mossberg, Deputy chair from 2019-04-24 until 2019-06-18
148
18
166
Magnus Uggla, Director
605
430
1 035
570
410
980
Lars Idermark, Chair until 2019-04-04
66
9
75
2 540
333
2 873
Ulrika Francke, Deputy chair until 2019-04-04 
22
15
37
850
565
1 415
Ulrika Francke, Chair from 2019-04-05 until 2019-06-19
537
121
658
Peter Norman, Director until 2019-06-19
141
114
255
570
463
1 033
Annika Poutiainen, Director
456
186
642
Siv Svensson, Director until 2019-06-19
141
151
292
570
590
1 160
Total
8 704
3 560
12 264
7 836
3 216
11 052
2019
2018
Short-term employee benefits
91
111
Post employment benefits, pension costs
19
28
Termination benefits
61
Share-based payments
1
4
Total
172
143
Granted loans
60
87
2019
2018
Cost for the year related to pensions and similar benefits
41
55
No. of persons
54
68
Granted loans
285
346
No. of persons
110
116
2019
2018
Boards of Directors, CEOs,  
Vice Presidents and 
equivalent senior executives
Other  
employees
All  
employees
Boards of Directors, CEOs,  
Vice Presidents and 
equivalent senior executives
Other  
employees
All  
employees
Country
Number of 
persons
Salaries and 
Board fees
Variable com-
pensation
Salaries and 
variable com-
pensation
Total
Number of 
persons
Salaries and 
Board fees
Variable com-
pensation
Salaries and 
variable com-
pensation
Total
Sweden
52
109
3
4 717
4 829
68
141
10
4 614
4 765
Estonia
20
18
1
767
786
29
23
2
658
683
Latvia
14
13
2
425
440
17
13
2
367
382
Lithuania
17
19
3
708
730
19
14
2
471
487
Norway
1
3
289
292
1
3
293
296
USA
1
6
31
37
1
5
32
37
Other countries
3
4
131
135
3
4
123
127
Total
108
172
9
7 068
7 249
138
203
16
6 558
6 777
SEK thousands
2019
2018
Within framework of Board fees set by the Board
Göran Persson
1 589
Lars Idermark
769
2 851
Total
2 358
2 851

116
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
9 KEY RATIOS
1) Employee turnover is calculated as the number of employees who terminated their 
employment during the year divided by the number of employees as of 31 December 
of the previous year.
1) Refers to the Swedish operations. Long–term healthy refer to employees with a maximum 
of five working days of sick leave during a rolling 12 month period.
1) Applicable for Swedbank’s home markets: Sweden, Estonia, Latvia and Lithuania.
Average number of employees based on  
1 585 hours per employee
2019
2018
Sweden
8 595
8 618
Estonia
2 746
2 662
Latvia
1 916
1 788
Lithuania
2 681
2 541
Norway
336
324
USA
16
19
Other countries
144
152
Total
16 433
16 102
Number of hours worked (thousands)
26 047
25 521
Number of Group employees at year-end excluding long-
term absentees in relation to hours worked expressed as 
full-time positions
15 218
14 865
Employee turnover including retired staff1, %
2019
2018
Swedish Banking
9,9
8,2
Large Corporates & Institutions
9,6
7,6
Baltic Banking
10,9
12,2
Group Functions
9,1
9,5
Total
9,8
9,6
Employee turnover excluding retired staff1, %
2019
2018
Swedish Banking
7,8
9,6
Large Corporates & Institutions
8,4
7,9
Baltic Banking
10,9
12,2
Group Functions
7,9
10,4
Total
8,7
10,4
Other key ratios
2019
2018
Average number of employees
16 433
16 102
Number of employees at year-end
16 327
15 879
Number of full-time positions
15 218
14 865
Sick leave, %
2019
2018
Sick leave Sweden
3,8
3,7
Sick leave Estonia
1,8
1,5
Sick leave Latvia
2,8
2,5
Sick leave Lithuania
1,7
1,8
Long-term healthy employees, %1
70,7
68,9
Parental leave women/men, %
2019
2018
Sweden
72,2/27,8
71,3/28,7
Estonia
96,5/3,5
99,4/0,6
Latvia
99,3/0,7
99,2/0,8
Lithuania
96,3/3,1
98,4/1,6
2019
2018
Gender distribution, %
Female
Male
Female
Male
Sweden
56
44
56
44
Estonia
73
27
75
25
Latvia
77
23
77
23
Lithuania
70
30
71
29
Norway
27
73
26
74
USA
18
82
18
82
Other countries
52
48
53
47
2019
2018
Gender distribution for all employees, 
Group Executive Committee and Boards 
of Directors, %
Female
Male
Female
Male
All employees
63
37
63
37
Swedbank's Board of Directors
44
56
50
50
Group Executive Committee incl. CEO
33
67
41
59
Group Executive Committee and their 
respective management teams
42
58
37
63
Boards of Directors in the entire 
Group incl. subsidiaries
39
61
45
55
Senior executives in the entire Group 
incl. subsidiaries
35
65
34
66
2019
2018
Gender distribution, management  
positions, %
Female
Male
Female
Male
Management positions, total1
54
46
54
46
Management positions, Sweden
47
53
48
52
Management positions, Estonia
68
32
66
34
Management positions, Latvia
69
31
72
28
Management positions, Lithuania
52
48
53
47

117
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G14 Other general administrative expenses
G15 Depreciation/amortisation of tangible  
and intangible fixed assets
G16 Impairments of tangible assets including 
repossessed lease assets
G17 Credit impairment
2019
2018
Expenses for premises
31
24
Rents etc.1
505
1 168
IT expenses1
2 170
1 955
Telecommunications, postage
122
137
Consulting
1 637
333
Compensation to savings banks
228
224
Other purchased services
953
793
Travel
230
223
Entertainment
40
52
Office supplies
82
104
Advertising, public relations, marketing
338
297
Security transports, alarm systems
69
60
Maintenance
77
90
Other administrative expenses2
627
344
Other operating expenses
205
61
Total
7 314
5 865
1) of which
Short-term leases
61
Leases of low-value assets
6
Variable lease payments not included in the lease liabilty
44
Total leasing
111
Remuneration to auditors
2019
2018
Remuneration to auditors elected by  
Annual General Meeting, PwC
Statutory audit
47
Other audit
10
Remuneration to auditors elected by  
Annual General Meeting, Deloitte
Statutory audit
12
38
Other audit
1
3
Total
70
41
Internal Audit
80
76
Depreciation/amortisation
2019
2018
Equipment
324
317
Owner-occupied properties
40
40
Right-of-use assets for rented premises
663
Right-of-use assets for other 
94
Intangible fixed assets
430
329
Total
1 551
686
Impairment
2019
2018
Investment properties
3
Properties measured as inventory
2
7
Repossessed leasing assets
3
1
Total
8
8
Credit impairment
2019
2018
Loans at amortised Cost
Impairment provisions – Stage 1
–12
80
Impairment provisions – Stage 2
–418
–502
Impairment provisions – Stage 3
844
671
Impairment provisions – Credit impaired,  
purchased or originated1
–4
6
Total
410
255
Write-offs
1 098
867
Recoveries
–202
–364
Total
896
503
Total – Amortised Cost
1 306
758
Commitments and financial guarantees
Impairment provisions – Stage 1
16
–27
Impairment provisions – Stage 2
–71
–70
Impairment provisions – Stage 3
217
–181
Total
162
–278
Write-offs
1
41
Total
1
41
Total – Commitments and financial guarantees
163
–237
 
 
Total Credit impairment
1 469
521
Credit impairment by borrower category
Credit institutions
2
–20
General public
1 467
541
Total
1 469
521
1) of which SEK –1m (–3) is a change in the gross carrying amount of purchased or originated 
credit-impaired assets due to remeasurement of expected credit losses recognized as part 
of the gross carrying amount on initial recognition.
2) Other adminisitrative expenses 2019 includes a reservation of non-deductible  
VAT of 248 msek.

118
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Deferred tax related to the hedging of net investments in foreign operations and cash 
flow hedging is recognised directly in other comprehensive income, since the change in 
the value of the hedging instrument is also recognised directly in other comprehensive 
income. The unrecognised portion of deferred tax assets amounted to SEK 4m (9).  
The assets are not recognised due to uncertainty when and if sufficient taxable 
­earnings will be generated. 
G18 Tax
Tax expense
2019
2018
Tax related to previous years
–88
60
Current tax
4 631
5 365
Deferred tax
168
–51
Total
4 711
5 374
The difference between the Group's tax expense and the tax expense based on current tax rates is explained below:
2019
2018
SEKm
per cent
SEKm
per cent
Results
4 711
19,3
5 374
20,2
Current tax rate on pre-tax profit
5 226
21,4
5 842
22,0
Difference
–515
–2,1
–468
–1,8
The difference consists of the following items:
Tax previous years
88
0,3
–60
–0,2
Tax -exempt income/non-deductible expenses
–249
–1,0
–248
–0,9
Tax-exempt capital gains and appreciation in value of shares and participating interest
63
0,3
139
0,5
Other tax basis in insurance operations
156
0,6
147
0,6
Tax in associates and joint ventures
174
0,7
225
0,8
Deviating tax rates in other countries
290
1,2
200
0,8
Revaluation of deferred taxes due to changed tax rate in Sweden
6
0,0
65
0,2
Other, net
–13
0,0
0
Total
515
2,1
468
1,8
2019
Deferred tax assets
Opening 
balance
Income  
statement
Other  
compre- 
hensive 
income
Business
disposal
Equity
Exchange rate 
differences
Closing  
balance
Deductible temporary differences
Other
50
6
2
58
Share-based payment
1
1
2
Lease assets related to IFRS 16
2
2
Unused tax losses
122
–12
2
112
Unrecognised deferred tax assets
–9
5
–4
Total
164
1
1
4
170
Deferred tax liabilities
Taxable temporary differences
Untaxed reserves
2 286
14
2 300
Hedge of net investment in foreign operations
–580
580
0
Provision for pensions
–1 095
1
–796
13
–1 877
Cash flow hedges
13
–8
1
6
Intangible fixed assets
633
120
753
Provisions for credit impairments
44
1
45
Foreign currency basis risk
–131
–4
–135
Share-based payment
–15
32
1
18
Owner-occupied properties
16
–1
15
Other
405
43
–2
446
Total
1 576
169
–219
13
32
0
1 571

119
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
When the Group determines the deferred tax assets it will recognise, it forecasts future 
taxable profits that can be utilised against tax loss carryforwards or other future tax 
credits. Deferred tax assets are recognised only to the extent such profits are probable. 
The Group expects that about 54 per cent (54) of the taxable losses that serve as the 
basis for recognised deferred tax assets will be utilised before the end of 2022 i.e. 
within the framework of the Group’s three–year financial plan. The losses for which 
deferred tax assets are recognised derive from the Group’s home markets.
Unused tax losses and unused tax credits according to tax calculation
Total deduction
Deduction for which deferred tax is recognised
Deduction for 
which deferred 
tax is not 
­recognised
Maturity
Latvia
Lithuania
Denmark
Norway
2019
17
17
Without maturity
739
631
13
51
44
Total
756
17
631
13
51
44
Unused tax losses and unused tax credits according to tax calculation
Total deduction
Deduction for which deferred tax is recognised
Deduction for which 
deferred tax is not 
recognised
Maturity
Lithuania
Denmark
Norway
Without maturity
684
555
23
85
21
Total
684
555
23
85
21
2018
Deferred tax assets
Opening  
balance
Amendments 
due to adop-
tions of IFRS 9
Income  
statement
Other com-
prehensive 
income
Equity
Exchange rate 
differences
Closing 
balance
Deductible temporary differences
Other
49
–2
3
50
Share-based payment
1
1
Unused tax losses
128
–11
5
122
Unrecognised deferred tax assets
–5
–4
–9
Total
173
–17
8
164
Deferred tax liabilities
Taxable temporary differences
Untaxed reserves
2 443
–157
2 286
Hedge of net investment in foreign operations
–368
–212
–580
Provision for pensions
–784
55
–366
–1 095
Cash flow hedges
–60
61
8
4
13
Intangible fixed assets
585
48
633
Provisions for credit impairments
44
44
Foreign currency basis risk
–61
–54
–16
–131
Share-based payment
–23
8
–15
Owner-occupied properties
17
–1
16
Other
372
33
405
Total
2 182
44
–68
–590
8
1 576

120
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Earnings per share are calculated by dividing profit for the year attributable to holders 
of ordinary shares in the parent company by a weighted average number of ordinary 
shares outstanding. Earnings per share after dilution is calculated by dividing profit 
for the year attributable to holders of ordinary shares in the parent company by the 
average of the number of ordinary shares outstanding, adjusted for the dilution effect 
of potential shares. Swedbank’s share-related compensation programmes, Programme 
2016, Programme 2017, Programme 2018 and Programme 2019, give rise to potential 
ordinary shares from the grant date of these shares from an accounting perspective. 
The grant date refers here to the date when the parties agreed to the terms and condi-
tions of the programmes. From an accounting perspective, the grant dates for Pro-
gramme 2016 – 5 April 2016, for Programme 2017 – 30 March 2017, for Programme 
2018 – 26 March 2018 and for Programme 2019 – 28 March 2019. The rights are 
treated as options in the calculation of earnings per share after dilution.
G19 Earnings per share
2019
2018
Average number of shares 
Weighted average number of shares, before dilution
1 118 055 542
1 116 238 102
Weighted average number of shares for dilutive potential ordinary shares resulting from share-based compensation programme
3 921 536
4 267 682
Weighted average number of shares, after dilution
1 121 977 078
1 120 505 784
Earnings per share
Profit for the year attributable to the shareholders of Swedbank AB
19 697
21 162
Earnings per share before dilution, SEK
17,62
18,96
Earnings per share after dilution, SEK
17,56
18,89
G20 Tax for each component in other comprehensive income
G21 Treasury bills and other bills eligible for refinancing with central banks etc.
2019
2018
Pre-tax 
amount
Deferred  
tax
Current 
tax
Total tax 
amount
Pre-tax 
amount
Deferred  
tax
Current 
tax
Total tax 
amount
Items that will not be reclassified to the income statement
Remeasurements of defined benefit pension plans
–3 866
796
1
797
–1 806
366
366
Remeasurements of defined benefit pension plans related 
to ­associates and joint ventures.
–127
–63
Change in fair value attributable to changes in own credit risk of 
financial liabilities designated at fair value through profit or loss
17
–4
–4
22
–5
–5
Total
–3 976
796
–3
793
–1 847
366
–5
361
Items that may be reclassified to the income statement
Exchange differences, foreign operations
739
1 870
Hedging of net investments in foreign operations
–600
–580
744
164
–1 474
212
73
285
Cash flow hedges
5
–1
–1
18
–4
–4
Foreign currency basis risk
–18
4
4
–72
16
16
Share of associates and joint ventures
32
36
Total
158
–577
744
167
378
224
73
297
Other comprehensive income
–3 818
219
741
960
–1 469
590
68
658
Carrying amount
Nominal amount
2019
2018
1/1/2018
2019
2018
1/1/2018
Governments and Swedish central bank
133 012
94 772
80 949
131 426
90 706
79 106
Municipalities
3 937
4 806
4 460
3 884
7 118
4 392
Other
145
1
553
143
1
550
Total
137 094
99 579
85 962
135 453
97 825
84 048

121
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G23 Loans to the public
G22 Loans to credit institutions
2019
2018
1/1/2018
Loans and advances
40 859
32 342
27 208
Repurchase agreements
9
92
511
Cash collaterals posted
4 584
3 834
3 301
Total
45 452
36 268
31 020
2019
2018
1/1/2018
Subordinated loans
Associates
120
620
620
Other companies
53
51
50
Total
173
671
670
2019
2018
1/1/2018
Loans and advances
1 570 746
1 545 894
1 469 759
Leasing
32 740
30 923
30 328
Cash collaterals posted
2 139
684
1 258
Total loans to the public excl repurchase agreements and Swedish National Debt Office
1 605 625
1 577 501
1 501 345
Repurchase agreements
36 942
37 278
22 185
Repurchase agreements, Swedish National Debt Office
9 725
2 436
2 862
Swedish National Debt Office
4
10 153
8 501
Total
1 652 296
1 627 368
1 534 893
Finance lease agreements distributed by maturity
2019
< 1 yr.
1—5 yrs.
> 5 yrs.
Total
Gross investment
10 115
20 620
3 688
34 243
Unearned finance income
496
910
260
1 666
Net investment
9 619
19 710
3 428
32 757
Provisions for impaired claims related to minimum lease payments
17
The residual value of the leases in all cases are guaranteed by the lessees or third party. The lease income did not include any contingent rents. Finance leasing are included in 
Loans to the public and relates to vehicles, machinery, boats etc.
Finance lease agreements distributed by maturity
2018
< 1 yr.
1—5 yrs.
> 5 yrs.
Total
Gross investment
9 334
19 633
3 395
32 362
Unearned finance income
553
732
139
1 424
Net investment
8 780
18 901
3 257
30 938
Provisions for impaired claims related to minimum lease payments
15

122
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G27 Investments in associates and joint ventures
G24 Bonds and other interest-bearing securities
G25 Financial assets for which the customers bear the investment risk
G26 Shares and participating interests
Issued by other than public agencies
Carrying amount
Nominal amount
2019
2018
1/1/2018
2019
2018
1/1/2018
Mortgage institutions
26 556
26 545
30 320
25 687
25 343
29 288
Banks
11 459
11 452
15 331
11 330
11 287
15 092
Other financial companies
8 894
3 983
5 384
9 204
3 872
5 192
Non-financial companies
10 458
11 332
8 412
9 809
11 152
8 284
Total
57 367
53 312
59 447
56 030
51 654
57 856
2019
2018
1/1/2018
Fund units
207 158
162 834
164 555
Interest-bearing securities
4 497
3 801
3 336
Shares
13 238
11 233
12 429
Total
224 893
177 868
180 320
Carrying amount
Cost
2019
2018
1/1/2018
2019
2018
1/1/2018
Trading shares
611
1 224
18 206
606
1 478
17 608
Trading fund units
3 612
2 058
1 256
3 360
1 919
1 196
Condominiums
11
11
2
11
11
2
Strategic shares and other
2 334
1 628
387
1 644
1 657
357
Total
6 568
4 921
19 850
5 621
5 065
19 164
2019
2018
1/1/2018
Fixed assets
Credit institutions – Associates
3 210
2 821
2 724
Credit institutions – Joint Ventures
3 036
2 873
2 638
Other associates
317
394
799
Other joint ventures
116
Total
6 679
6 088
6 161
Opening balance
6 088
6 161
Additions during the year
481
Change in accumulated profit shares, total comprehensive income
727
1 001
Dividends received
–529
–1 045
Disposals during the year
–88
–29
Closing balance
6 679
6 088

123
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The share of the voting rights in each entity corresponds to the share of its equity. All shares are unlisted. Swedbank does not have any individual material interests in associ-
ates. During the year Swedbank received a dividend of SEK 129 m (691) from VISA Sweden. Swedbank’s cumulative share of associates’ other comprehensive income for the year 
amounted to SEK –80m (–55) and the share of the year’s total comprehensive income amounted to SEK 263m (493). As of 31 December 2019 Swedbank’s share of associates’ 
contingent liabilities and commitments amounted to SEK 398m (379) and SEK 2 468m (2 444), respectively.
Swedbank AB received dividends from EnterCard Group AB of SEK 325m (275) during 
the year. Condensed financial information for the EnterCard Group AB is shown below: 
2019 
Joint venture 
Corporate identity, domicile
Corporate  
identity number
Number
Carrying  
amount
Cost
Share of  
capital, %
Share of joint 
venture’s profit
Credit institutions
EnterCard Group AB, Stockholm
556673-0585
3 000
3 036
420
50,00
503
Other joint ventures
Nordic KYC Utility AB, Stockholm
559210-0779
10 000
17
24
16,67
–7
P27 Nordic Payments Platform AB, Stockholm
559198-9610
10 000
99
117
16,67
–18
Total joint ventures
3 152
561
478
Total associates and joint ventures
6 679
2 527
822
2019 
Associates 
Corporate identity, domicile
Corporate  
identity number
Number
Carrying  
amount
Cost
Share of  
capital, %
Share of a 
ssociate’s profit
Credit institutions
Sparbanken Skåne, Lund
516401-0091
3 670 342
1 278
1 070
22,00
109
Sparbanken Rekarne AB, Eskilstuna
516401-9928
865 000
410
125
50,00
54
Sparbanken Sjuhärad AB, Borås
516401-9852
4 750 000
1 197
288
47,50
127
Vimmerby Sparbank AB, Vimmerby
516401-0174
340 000
88
41
40,00
5
Ölands Bank AB, Borgholm
516401-0034
637 000
237
231
49,00
6
Total credit institutions
3 210
1 755
301
Other associates
Babs Paylink AB, Stockholm, disposed in 2019
556567-2200
8
BGC Holding AB, Stockholm
556607-0933
29 177
195
98
29,18
28
Finansiell ID-Teknik BID AB, Stockholm
556630-4928
12 735
12
24
28,30
-6
Getswish AB, Stockholm
556913-7382
10 000
19
21
20,00
5
USE Intressenter AB, Uppsala
559161-9464
2 000
0
0
20,00
-0
VISA Sweden, ek för, Stockholm
769619-6828
42,09
3
Owned by subsidiaries
Bankomat AB, Stockholm
556817-9716
150
74
66
20,00
4
Svensk Mäklarstatistik AB, Stockholm
556709-1292
750
2
1
25,00
1
SK ID Solutions AS
10747013
16
14
1
25,00
-0
Total other associates
317
211
43
Total associates
3 527
1 966
344
2019
2018
Loans to the public
31 998
28 902
Total assets
39 026
35 582
Amounts owed to credit institutions
31 983
29 176
Total liabilities
32 850
29 834
Net interest income
3 182
2 929
Total income
3 637
3 356
Total expenses
1 571
1 471
Credit impairments
–741
–649
Operating profit
1 326
1 235
Tax expense
–319
–274
Profit for the year
1 006
961
Total comprehensive income
978
1 017

124
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The Group trades in derivatives in the normal course of business and for the purpose of hedging certain positions that are exposed to share price, interest rate, credit and currency risks. 
Below present carrying amount for derivatives which are included in hedge accounting seperately.The carrying amounts of all derivatives refer to fair value including accrued interest.
G28 Derivatives
Nominal amount 2019 
Remaining contractual maturity
Nominal amount
Positive fair value
Negative fair value
Note
< 1 yr.
1–5 yrs.
> 5 yrs.
2019
2018
2019
2018
1/1/2018
2019
2018
1/1/2018
Derivatives in hedge 
accounting
Fair value hedges,  
interest rate swaps
G29
127 899
385 458
95 337
608 694
544 157
13 013
10 255
10 514
534
972
977
Portfolio fair value 
hedges, interest rate 
swaps
G29
113 883
269 280
10 565
393 728
335 805
702
207
278
1 331
1 401
1 392
Cash flow hedges, cross 
currency basis swaps
G29
620
939
7 721
9 280
9 405
190
89
12
33
65
334
Total
242 402
655 677
113 623
1 011 702
889 367
13 905
10 551
10 804
1 898
2 438
2 703
Non-hedge accounting 
derivatives
7 952 111
5 775 222
2 323 878
16 051 211
12 933 005
102 833
59 379
54 489
113 311
61 788
56 381
Gross amount
8 194 513
6 430 899
2 437 501
17 062 913
13 822 372
116 738
69 930
65 293
115 209
64 226
59 084
Offset amount 
G47
–5 344 977
–4 868 607
- 1 843 876
–12 057 460
–6 880 365
–72 314
–30 265
–9 613
–74 232
–32 910
–12 884
Total
 2 849 536
1 562 292
593 625
5 005 453
6 942 007
44 424
39 665
55 680
40 977
31 316
46 200
Non-hedging 
derivatives
Interest-related 
contracts
Options
369 380
448 634
158 583
976 597
1 350 826
1 954
894
616
2 645
1 823
1 550
Forward contracts
4 786 439
1 273 670
 
6 060 109
6 360 860
957
643
376
965
579
360
Swaps
1 649 935
3 671 637
2 059 384
7 380 956
3 727 504
58 317
26 410
28 843
60 719
28 243
30 418
Other
 
Currency-related 
contracts
 
 
 
 
 
 
 
Options
37 674
661
38 335
51 471
231
258
316
223
242
338
Forward contracts
846 245
21 530
137
867 912
831 238
7 804
5 880
7 927
12 103
5 831
10 126
Swaps
166 317
349 751
104 564
620 632
510 783
8 015
7 391
7 288
12 346
7 927
6 651
Other
Other
 
 
 
 
 
 
 
 
 
 
 
Equity-related 
contracts
 
 
 
 
 
 
Options
83 238
8 723
1 210
93 171
83 262
25 385
17 292
8 684
24 081
16 633
6 528
Forward contracts
4 532
 
 
4 532
10 719
30
447
190
29
236
96
Swaps
3 571
 
 
3 571
2 317
19
22
124
71
138
198
Other
 
 
 
 
 
Credit-related cont-
racts
 
 
 
 
 
 
Swaps
 
522
 
522
 
 
 
30
13
 
25
Commodity-related 
contracts
 
 
 
 
 
 
Options
850
 
 
850
328
15
13
 
15
13
 
Forward contracts
3 930
94
 
4 024
3 457
105
129
95
101
122
91
Total
7 952 111
5 775 222
2 323 878
16 051 211 12 933 005
102 833
59 379
54 489
113 311
61 788
56 381

125
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G29 Hedge accounting
The Group’s approach to managing market risk, including interest rate risk, and its 
exposure to those risks are presented in note G3. The risk of changes in interest rates 
on the fair value of certain fixed rate financial instruments is mitigated in accordance 
with the Group’s risk management strategy by using interest rate swaps. Where hedge 
accounting is applied, interest rate risk on fixed rate loans to the public (mortgages) 
is hedged on a portfolio basis whereas debt securities in issue, senior non-preferred 
liabilities and subordinated liabilities are identified and hedged on an issuance by issu-
ance basis. Interest rate swaps designated as the hedging instruments are reported in 
the balance sheet in the Derivatives line.
Designated fair value hedge relationships are used to hedge the benchmark interest 
rate risk, which is an observable and reliably measurable component of the interest 
rate risk and of the fair value. Where hedge accounting is applied, the Group ensures 
that the relationships meet the criteria outlined in note G2 section 3.4.4, including the 
effectiveness requirements. The Group manages other risks on these exposures, such 
as credit risk, but does not apply hedge accounting for them.
Hedge ineffectiveness is reported in the income statement as Net gains and losses on 
financial items. Potential sources of hedge ineffectiveness are related to the following:
• There is an exposure to the interest rate swap counterparty’s credit risk that is not 
offset by the respective hedged item. This risk is minimized by entering into interest 
rate swaps with high credit quality counterparties.
• Different discount curves are applied for the valuation of the respective 
hedged item and the interest rate swaps.
Fair value hedges
2019
Hedging instruments and hedge ineffectiveness
Carrying amount
Nominal amount
Assets
Liabilities
Change in fair value used 
 for measuring 
 hedge ineffectiveness
Ineffectiveness 
recognised in Profit 
or loss
Interest rate risk
Interest rate swaps, Loans to the public, Portfolio hedge
393 728
702
1 331
541
43
Interest rate swaps, Debt securities in issue
566 723
12 706
369
3 247
9
Interest rate swaps, Senior non-preferred liabilities
10 416
117
–114
1
Interest rate swaps, Subordinated liabilities
31 555
307
47
235
2
Total
1 002 422
13 715
1 865
3 909
54
One-to-one hedges – effectiveness assessment under IFRS 9
The economic relationship between the debt securities, senior non-preferred liabilities 
or subordinated liabilities and the interest rate swaps are assessed using a qualita-
tive analysis of the critical terms.The critical terms are matched between the financial 
instruments, particularly regarding currencies and tenors. The fair values of the instru-
ments are expected to move in opposite directions as a result of changes in the hedged 
benchmark interest rate risk. The effect of credit risk is not considered to dominate 
the changes in fair value. The hedge ratio is one-to-one as the nominal amount of the 
interest rate swap matches the issued amount of the hedged debt securities, senior 
non-preferred liabilities or subordinated liabilities. The Group assesses hedge effective-
ness by comparing the changes in fair value of the debt securities, senior non-preferred 
liabilities or subordinated liabilities resulting from movements in the benchmark inter-
est rate with the changes in fair value of the designated interest rate swaps.
Portfolio hedges – effectiveness test under IAS 39
Mortgage loans are grouped into quarterly time buckets based on the next interest 
rate fixing dates. Each time bucket position is hedged using interest rate swaps with a 
nominal amount covering a portion of the total loans. A specified loan amount in each 
time bucket is therefore designated as the hedged item. The portfolio fair value hedges 
are assessed for effectiveness both prospectively and retrospectively. The prospec-
tive assessment is performed using a qualitative analysis of the critical terms of the 
hedged item and the interest rate swap. The retrospective assessment is performed 
daily on cumulative basis by using the dollar offset method. The changes in fair value 
of the mortgage loans resulting from movements in the benchmark interest rate are 
compared to the changes in fair value of the designated interest rate swaps.
The tables below provide information relating to the hedged items and hedging 
instruments in qualifying fair value hedge relationships.
Hedged items
Carrying amount
Accumulated adjustment  
on the hedged item
Assets
Liabilities
Assets
Liabilities
Change in value  
used for 
measuring 
 hedge 
ineffectiveness
Loans to the public, Portfolio hedge
393 990
271
–498
Debt securities in issue
582 821
10 675
–3 237
Senior non-preferred liabililties
10 388
–114
114
Subordinated liabilities
31 759
175
–234
Total
393 990
624 968
271
10 736
–3 855

126
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Hedged items
Carrying amount
Accumulated adjustment  
on the hedged item
Assets
Liabilities
Assets
Liabilities
Change in value used 
for measuring hedge 
­ineffectiveness 
Loans to the public, Portfolio hedge
336 565
760
–23
Debt securities in issue
525 610
7 755
279
Subordinated liabilities
34 244
59
60
Total
336 565
559 854
760
7 813
316
Nominal amount
Hedged items and hedging instruments
AUD
CHF
GBP
HKD
JPY
USD
Total
1 542
3 357
17 917
2 062
5 463
56 161
Maturity before Interest rate benchmark reform
196
959
13 022
359
0
37 465
Directly attributal to Interest rate benchmark reform
1 346
2 398
4 895
1 703
5 463
18 695
Hedged reference rates in scope for
Interest rate benchmark reform:
Libor
Libor
Libor
Hibor
Libor
Libor
Estimated end of use
2022
2022
2022
2022
2022
2022
See further information in Note G3.7
2018
Hedging instruments and hedge ineffectiveness
Carrying amount
Nominal amount
Assets
Liabilities
Change in fair value used 
for measuring hedge 
­ineffectiveness 
Ineffectiveness recog-
nised in Profit or loss
Interest rate risk
Interest rate swaps, Portfolio hedge
335 805
207
1 401
–16
–38
Interest rate swaps, Debt securities in issue
510 180
9 968
836
–308
–30
Interest rate swaps, Subordinated liabilities
33 976
287
136
–65
–5
Total
879 962
10 462
2 373
–389
–73
Hedge relationships in scope for Interest Rate Benchmark Reform 
On 31 December 2019, the Group adopted the Amendments to IFRS 9, IAS 39 and IFRS 7 due to the Interest Rate Benchmark Reform. The Amendments had the effect that the Reform 
will not generally cause in scope hedge accounting relationships to be terminated. The tables below provide details of the Group’s relationships which are considered to be in scope.
Maturity profile and average price, hedging instruments
2019
2018
Remaining contractual maturity
Remaining contractual maturity
<1 yr
1–5 yrs.
>5 yrs.
<1 yr
1–5 yrs.
>5 yrs.
Portfolio hedge
Nominal amount
113 883
269 280
10 565
77 050
246 405
12 350
Average fixed interest rate (%)
0,04
0,24
0,90
–0,11
0,21
0,93
Fair value hedges
Nominal amount
127 899
385 458
95 337
47 283
442 338
54 535
Average fixed interest rate (%)
0,71
0,46
1,36
1,63
0,56
1,99

127
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2019
Hedging instruments and hedge 
ineffectiveness
Carrying amount
Nominal amount
Assets
Liabilities
Change in fair value 
used for measuring 
hedge ineffectiveness 
Change in value of the 
­hedging ­instrument 
­recognised in OCI 
Amount reclassified from 
the Cash flow hedge 
reserve to Profit or loss
Cash flow  
hedge reserve 
(after tax)
Foreign currency risk 
Cross currency basis swaps, EUR/SEK
9 280
190
33
159
5
154
8
Hedged items
Change in fair value used for measuring hedge inef-
fectiveness (for the period)
Ineffectiveness recognised  
in Profit or loss
Foreign currency risk 
EUR Debt securities in issue and Interest rate swaps
160
7
Maturity distribution regarding future hedged cash flows  
in cash flow hedge accounting
< 1 yr
1–3 yrs
3–5 yrs
5–10 yrs
>10 yrs
Negative cash flows (liabilities)
623
969
71
7 834
0
Future cash flows above, expressed in SEKm, are exposed to variability attributable to changed interest rates and/or changed currency rates. 
These future cash flows are hedged with derivatives, recognised as cash flow hedges, with opposite cash flows that eliminate the variability.
The Group’s approach to managing market risk, including currency risk, and its 
exposure to those risks are presented in note G3. In accordance with the Group’s risk 
management strategy, cross currency basis swaps are entered into to mitigate the 
foreign currency risk on future principal and interest payments of foreign currency 
debt securities. The hedged items are the aggregate exposure of foreign currency 
fixed rate debt securities in issue and interest rate swaps in the same foreign currency. 
The hedging instruments are cross currency basis swaps, which convert the foreign 
currency cash flows into SEK. The foreign currency basis spread in the cross currency 
basis swaps is excluded from the hedge accounting relationship and is accounted for as 
described in note G2 section 3.4.1. Cross currency basis swaps designated as hedging 
instruments are reported in the balance sheet in the Derivatives line.
Designated cash flow hedge relationships are used to hedge against movements 
in foreign currencies. Where hedge accounting is applied, the Group ensures that the 
relationships meet the criteria outlined in note G2 section 3.4.1. The Group manages 
other risks on these exposures, such as credit risk, but does not apply hedge accounting 
for them. 
The Group ensures that designated hedge relationships fulfil the effectiveness 
requirements. The economic relationship between the aggregate exposure and the 
cross currency basis swap are assessed using a qualitative analysis of the critical terms, 
which are matched. The fair values of the instruments are expected to move in oppo-
site directions as a result of a change in the foreign currency rate. The effect of credit 
risk is not considered to dominate the changes in fair value.
The hedge ratio is one-to-one as the issued amount of the cross currency basis swap 
matches the issued amount of the hedged aggregate exposure.
The Group assesses hedge effectiveness by comparing the changes in fair value 
of the aggregate exposure due to movements in the foreign currency rate with the 
changes in fair value of the designated part of the cross currency basis swap. The 
changes in fair value of the aggregate exposure are calculated using a hypothetical de-
rivative, which reflects the terms of the aggregate exposure. Hedge ineffectiveness is 
reported in the income statement as Net gains and losses on financial items. Potential 
sources of hedge ineffectiveness are related to the following:
• There is an exposure to the derivative counterparty’s credit risk that is not offset by 
the respective hedged item. This risk is minimized by entering into cross currency 
basis swaps with high credit quality counterparties.
• Different discount curves are applied for the valuation of the respective hedged item 
and the cross currency basis swaps.
The tables below provide information relating to the hedged items and hedging instru-
ments in qualifying cash flow hedge relationships.
Maturity profile and average price, hedging instruments
2019
2018
Remaining contractual maturity
Remaining contractual maturity
<1 yr
1–5 yrs.
>5 yrs.
<1 yr
1–5 yrs.
>5 yrs.
Foreign currency risk
Nominal amount
620
939
7 722
243
1 536
7 626
Average FX rate
9,79
9,92
10,28
10,57
9,87
10,28
Cash flow hedges

128
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2018
Hedging instruments and hedge 
ineffectiveness
Carrying amount
Nominal amount
Assets
Liabilities
Change in fair value 
used for measuring 
hedge ineffectiveness 
Change in value  
of the hedging 
­instrument 
Amount reclassified from 
the Cash flow hedge 
reserve to Profit or loss
Cash flow  
hedge reserve 
(after tax)
Cross currency swaps, EUR/SEK
9 405
89
65
421
18
403
4
Maturity distribution regarding future hedged cash flows in cash flow hedge accounting
< 1 yr
1–3 yrs
3–5 yrs
5–10 yrs
>10 yrs
Negative cash flows (liabilities)
253
1 082
665
7 781
230
Hedged items
Change in fair value used for measuring 
hedge ineffectiveness 
Ineffective-ness recognised  
in Profit or loss
Foreign currency risk 
EUR Debt securities in issue and Interest rate swaps
391
0

129
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Hedging of net investments in foreign operations
Foreign currency translation differences arise from the translation of operations which 
do not have SEK as the functional currency. The foreign currency risk arises as a result 
of fluctuations in the spot rate of the functional currency of the foreign operation 
versus SEK, which causes the carrying amount of the net investments to vary. The 
Group hedges these exposures by issuing debt securities and subordinated liabilities 
in the same currency as the hedged net investment in the foreign operation. 
The Group applies hedge accounting for the foreign currency translation of these 
liabilities, and thus the foreign exchange effect is reported in other comprehensive 
income instead of the income statement.
The Group’s hedging policy is to generally hedge net investments in subsidiaries and 
associates denominated in foreign currencies to minimize the foreign exchange effect 
on the Common Equity Tier 1 capital.
The Group ensures that designated hedge relationships fulfil the effectiveness require-
ments.The economic relationship between the net investment in the foreign operation 
and the debt securities or subordinated liabilities is assessed using a qualitative 
analysis of the critical terms, which are matched. The carrying amounts are expected 
to move in opposite directions as a result of a change in the foreign currency rate. The 
hedge ratio is one-to-one as the carrying amount of the debt securities or subor-
dinated liabilities match the portion of the net investment in the foreign operation 
that is designated as the hedged item. The Group assesses hedge effectiveness by 
comparing the changes in value of the designated net investment, with the changes in 
the carrying amont of the debt securities or subordinated liabilities, due to movements 
in the foreign currency rate. Rebalancing occurs monthly or when net assets change 
significantly during a month.
The tables below provide information relating to the hedged items and hedging 
instruments in qualifying hedges of net investments in foreign operations.
Hedged items
2019
2018
Change in value used for measuring  
hedge ineffectiveness
Change in value used for measuring  
hedge ineffectiveness 
EUR net investment
540
1 410
USD net investment
2
5
NOK net investment
58
59
Total
600
1 474
2018
Hedging instruments and hedge ineffectiveness
Carrying amount
Liabilities
Change in fair value used 
 for measuring 
 hedge ineffectiveness 
Change in value of the 
­hedging instrument 
­recognised in OCI before tax
Hedging of net 
­investments in foreign 
operations after tax
Foreign currency risk
EUR denominated, Debt securities in issue
34 187
–1 410
–1 410
–3 557
USD denominated, Debt securities in issue
65
–5
–5
–12
NOK denominated, Debt securities in issue
1 370
–59
–59
125
Total
35 622
–1 474
–1 474
–3 444
2019
Hedging instruments and hedge ineffectiveness
Carrying amount
Liabilities
Change in fair value used 
 for measuring 
 hedge ineffectiveness 
Change in value of the 
­hedging instrument 
­recognised in OCI before tax
Hedging of net 
­investments in foreign 
operations after tax
Foreign currency risk
EUR denominated, Debt securities in issue
32 558
–540
–540
–3 951
USD denominated, Debt securities in issue
54
–2
–2
–14
NOK denominated, Debt securities in issue
1 029
–58
–58
85
Total
33 640
–600
–600
–3 880

130
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
For intangible assets with a finite useful life, the amortisable amount is allocated linearly over the useful life. The original useful life is between 3 and 20 years. 
G30 Intangible assets
Indefinite useful life
Definite useful life
2019
Goodwill
Brand
Customer base
Internally devel-
oped software
Other
Total
Cost, opening balance
15 755
161
1 896
4 306
1 638
23 756
Additions through internal development
982
982
Additions through separate acquisitions
146
146
Sales and disposals
–9
–363
–372
Exchange rate differences
204
–1
15
1
219
Cost, closing balance
15 950
160
1 911
5 288
1 422
24 731
Amortisation, opening balance
–1 277
–935
–1 244
–3 456
Amortisation for the year
–47
–291
–92
–430
Sales and disposals
352
352
Exchange rate differences
–14
–23
–37
Amortisation, closing balance
–1 338
–1 226
–1 007
–3 571
Impairment, opening balance
–2 206
–237
–699
–40
–3 182
Impairment for the year
–66
–13
–79
Exchange rate differences
–35
–35
Impairment, closing balance
–2 241
–66
–237
–712
–40
–3 296
Carrying amount
13 709
94
336
3 350
375
17 864
Indefinite useful life
Definite useful life
2018
Goodwill
Brand
Customer base
Internally devel-
oped software
Other
Total
Cost, opening balance
15 211
161
1 858
3 418
1 649
22 297
Additions through internal development
888
888
Additions through separate acquisitions
116
116
Sales and disposals
–144
–144
Exchange rate differences
544
38
17
599
Cost, closing balance
15 755
161
1 896
4 306
1 638
23 756
Amortisation, opening balance
–1 174
–771
–1 242
–3 187
Amortisation for the year
–64
–164
–101
–329
Sales and disposals
–5
115
110
Exchange rate differences
–34
–16
–50
Amortisation, closing balance
–1 277
–935
–1 244
–3 456
Impairment, opening balance
–2 111
–213
–417
–40
–2 781
Impairment for the year
–24
–282
–306
Exchange rate differences
–95
–95
Impairment, closing balance
–2 206
–237
–699
–40
–3 182
Carrying amount
13 549
161
382
2 672
354
17 118

131
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Value in use
Goodwill acquired in business combinations has been allocated to the lowest possible 
cash generating unit. Recoverable amount has been determined based on value in use. 
This means that the assets’ estimated future cash flows are calculated at present value 
using a discount rate. Estimated future cash flows are based on the Group’s established 
three-year financial plans. The most important assumptions in the three-year plan 
are the executive management’s estimate of net profit, including credit impair-
ments; growth in each economy, both GDP and industry growth; and the trend in risk 
weighted assets. Financial planning is done at a lower level than the cash generating 
unit. The necessary assumptions in the planning are based as far as possible and ap-
propriate on external information. Future cash flows are subsequently estimated with 
the help of long-term growth assumptions for risk weighted assets as well as on net 
profit in relation to risk weighted assets. Due to the long-term nature of the invest-
ments, cash flow is expected to continue indefinitely. Use of an indefinite cash flow 
is motivated by the fact that all cash generating units are part of the Group’s home 
markets, which it has no intention of leaving. Net cash flow refers to the amount that 
theoretically could be received as dividends or must be contributed as capital to comply 
with capital adequacy or solvency rules. The Group currently believes that a Common 
Equity Tier 1 capital ratio of 14 per cent (14) is reasonably the lowest level for the cash 
generating unit, because of which any surpluses or deficits calculated in relation to this 
level are theoretically considered payable as dividends or will have to be contributed as 
capital and therefore constitute net cash flow. The discount rate is determined based 
on the market’s risk-free rate of interest and yield requirements, the unit’s performance 
in the stock market in relation to the entire market, and the asset’s specific risks. The 
discount rate is adapted to various periods if needed. Any adjustments needed to the 
discount factor are determined based on the economic stage the cash generating 
unit is in and means that each year’s cumulative cash flow is discounted by a unique 
discounting factor. Projected growth in risk weighted assets corresponds to estimated 
inflation, projected real GDP growth and any additional growth expected in the bank-
ing sector, depending on the economic stage the sector is in. In accordance with IAS 
36, the long-term growth estimate does not include any potential increase in market 
share. Long-term growth estimates are based on external projections as well as the 
Group’s experience and growth projections for the banking sector in relation to GDP 
growth and inflation. Estimated net profit in relation to risk weighted assets is based 
on historical experience and adjusted based on the economic stage the cash generating 
unit is in. The adjustment is also based on how the composition of the cash generat-
ing unit’s balance sheet is expected to change. The parameters are based as far as 
possible on external sources. The most important assumptions and their sensitivity are 
described in the table on the following page.
Carrying amount
Specification of intangible assets with indefinite useful life
Acquisition year
2019
2018
1/1/2018
Goodwill
Swedbank Robur AB
1995
328
328
328
Föreningsbanken AB
1997
1 342
1 342
1 342
Swedbank Försäkring AB
1998
651
651
651
Kontoret i Bergsjö
1998
13
13
13
Ölands Bank AB
1998
9
9
FSB Bolåndirekt Bank AB
2002
159
159
159
Söderhamns Sparbank AB
2007
24
24
24
PayEx AB
2017
429
429
429
Sweden
2 946
2 955
2 955
of which banking operations
1 538
1 547
1 547
of which other
1 408
1 408
1 408
Swedbank AS
1999
1 263
1 243
1 189
Swedbank AS
2000
13
12
12
Swedbank AS
2001
149
146
140
Swedbank AS
2005
9 157
9 012
8 623
Baltic countries
10 582
10 413
9 964
of which allocated to:
Banking operations in Estonia
4 429
4 358
4 170
Banking operations in Latvia
2 280
2 244
2 147
Banking operations in Lithuania
3 873
3 811
3 647
First Securities ASA
2005
181
181
181
Norway
181
181
181
Total
13 709
13 549
13 100

132
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Sensitivity analysis
Given a reasonable change in any of the above assumptions there would be no impair­ment 
loss for any cash generating unit. For the other cash generating units there is still room 
for a reasonable change if both assumptions were to occur simultaneously as indicated 
in the table i.e. both an increase in the discount rate of 1 percentage point and a 
decrease in the growth assumption of 1 percentage point. The Group is also confident 
there is room for a reasonable change in the net profit margin assumption for these 
units without causing an impairment loss.
Banking operations in Baltic countries
Recognised goodwill totalled SEK 10 582 m (10 413). Goodwill is tested for impair-
mentseparately for each country. Essentially the same assumptions were used in the 
impairment testing for 2019 as at the previous year-end. The three-year financial 
plans have been updated, as a result of which the initial growth assumptions after the 
planning period have been reduced. The discounting factor has been updated with new 
country-specific risk premiums. No impairments were identified on the balance sheet 
date. The three-year financial plans have been updated based on conditions in each 
country. Initial growth assumed in the established three-year financial plans is based 
on management’s best estimate of inflation, real GDP growth and growth in the bank-
ing sector in each market. The assessments are based on external sources. After the 
planning period a linear reduction in annual growth is assumed in principle during the 
period between 2020 and 2049 from 5 per cent down to 3 per cent, which is consid-
ered sustainable growth for a mature market. The initial discount rate for each period 
reflects a country-specific risk premium that will converge on a straight-line basis to 
5 per cent, which is considered relevant for a mature market. Risk premiums are derived 
from external sources. The discount rate before tax for the period 2020–2022 was 
approximately 13 per cent (13).
Other cash generating units, excluding banking operations
Other recognised goodwill totalled SEK 1 589 m (1 589). No impairments were needed 
as of the closing day. Average annual growth for other cash generating units has been 
assumed to be 3 per cent (3) and the lowest discount rate was 6 per cent (6), or 7 per 
cent (7) before tax. 
Sensitivity analysis, change in recoverable amount
Net asset including goodwill. 
Carrying amount, SEKm
Recoverable amount, 
SEKm
Decrease in assumption of yearly 
growth by 1 percentage point
Increase in discount rate by  
1 percentage point
Cash-generating unit
2019
2018
2019
2018
2019
2018
2019
2018
Banking operations
Estonia
22 794
22 421
36 656
35 403
–1 971
–1 694
–2 992
–2 837
Latvia
10 799
10 368
12 253
11 408
–267
–240
–709
–612
Lithuania
12 892
12 157
16 812
15 205
–716
–758
–1 466
–1 349
Sweden
66 025
63 044
76 843
75 175
–1 357
–1 012
–7 758
–7 662
Annual average REA growth %
Annual REA growth %
Annual average REA growth %
Annual REA growth %
Cash-generating unit
2019
2018
2019
2018
2019
2018
2019
2018
2020–2022
2019–2021
2023–2048
2022–2048
2023–2048
2022–2048
2049–
2049–
Banking operations
Estonia
2,9
3,3
4,3–3,0
3,6–3,0
3,3
3,2
3,0
3,0
Latvia
2,8
0,2
3,5–3,0
4,2–3,0
3,2
3,2
3,0
3,0
Lithuania
5,6
5,3
4,5–3,0
2,6–3,1
3,7
3,3
3,0
3,0
Sweden
2,0
2,0
2,0
2,0
2,0
2,0
2,0
2,0
Annual average  
discount rate %
Average 
 discount rate %
Annaual avarege  
doiscount rate %
Average  
discount rate %
Cash-generating unit
2019
2018
2019
2018
2019
2018
2019
2018
2020–2022
2019–2021
2023–2048
2022–2048
2023–2048
2022–2048
2049–
2049–
Banking operations
Estonia
9,9
10,9
9,9–9,0
10,9–9,0
9,3
9,5
9,0
9,0
Latvia
10,4
11,6
10,4–9,0
11,6–9,0
9,6
9,8
9,0
9,0
Lithuania
10,4
11,6
10,4–9,0
11,6–9,0
9,6
9,8
9,0
9,0
Sweden
5,8
5,7
5,8
5,7
5,8
5,7
5,8
5,7

133
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The useful life of equipment is deemed to be between three and ten years and its 
residual value is deemed to be zero as in previous years. The depreciable amount is rec-
ognised linearly in profit or loss over the useful life. There was no change in useful lives 
in 2019. No indications of additional impairment were identified on the balance sheet 
date for Fixed assets. Owner-occupied properties structural components are deemed to 
have useful lives of between 12 and 25 years. The residual value is deemed to be zero. 
The depreciable amount is recognised linearly in profit or loss over the useful life. Land 
has an indefinite useful life and is not depreciated. 
Leasing agreement, where the Group act as a lessee, are from 2019 presented as right-
of-use assets in the table above. The useful life of right-of-use assets are considered to 
be the same as the lease terms, which were between 1 and 13 years. The depreciable 
amount is recognized on a straight-line basis in the income statement over the useful 
life. Information about the corresponding lease liabilities are presented within Other 
liabilities in note G41. 
G31 Tangible assets
Current assets
Fixed assets
2019
Properties
Equipment
Owner-occupied 
properties
Right-of-use  
asset – Premises
Right-of-use  
asset – Other
Total
Cost, opening balance
181
3 203
1 439
4 823
Change in accounting policies, IFRS 16
4 077
174
4 251
Additions
2
311
15
128
53
509
Sales and disposals
–70
–524
–37
–16
–133
–780
Assessments and modifications
120
12
132
Exchange rate differences
3
12
2
7
24
Cost, closing balance
116
3 002
1 419
4 316
106
8 959
Amortisation, opening balance
–2 319
–483
–2 802
Amortisation for the year
–324
–40
–663
–94
–1 121
Sales and disposals
503
25
10
49
587
Exchange rate differences
–7
2
–5
Amortisation, closing balance
–2 147
–496
–653
–45
–3 341
Impairment, opening balance
–55
–55
Impairment for the year
–2
–6
–8
Sales and disposals
16
16
Exchange rate differences
–2
3
1
Impairment, closing balance
–43
–3
–46
Carrying amount
73
855
920
3 663
61
5 572
Current assets
Fixed assets
2018
Properties
Equipment
Owner-occupied 
properties
Total
Cost, opening balance
549
3 095
1 440
5 084
Additions
80
367
9
456
Sales and disposals
–455
–292
–68
–815
Exchange rate differences
7
33
58
98
Cost, closing balance
181
3 203
1 439
4 823
Amortisation, opening balance
–2 235
–486
–2 721
Amortisation for the year
–317
–40
–357
Sales and disposals
256
65
321
Exchange rate differences
–23
–22
–45
Amortisation, closing balance
–2 319
–483
–2 802
Impairment, opening balance
–408
–408
Impairment for the year
–8
–8
Sales and disposals
362
362
Exchange rate differences
Impairment, closing balance
–55
–55
Carrying amount
126
884
956
1 966

134
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G32 Other assets
G33 Prepaid expenses and accrued income
G34 Amounts owed to credit institutions
G35 Deposits and borrowings from the public
G38 Short positions in securities
G37 Debt securities in issue
G36 Financial liabilities for which customers 
bear the investment risk
2019
2018
1/1/2018
Security settlement claims
6 580
8 466
9 863
Other financial assets
2 224
5 423
4 584
Total financial assets
8 804
13 889
14 447
Property taken over to protect claims
55
81
80
Total
8 859
13 970
14 527
2019
2018
1/1/2018
Prepaid expenses
2 457
1 414
1 044
Unbilled receivables
568
399
563
Total
3 025
1 813
1 607
2019
2018
1/1/2018
Swedish central bank
7
Swedish banks
21 573
20 944
20 506
Swedish credit institutions
4 892
4 256
2 684
Foreign central banks
6 306
13 884
23 199
Foreign banks
36 307
17 460
21 230
Foreign credit institutions
604
401
625
Swedish banks, repurchase agreements
4
Foreign banks, repurchase agreements
266
Total
69 686
57 218
68 244
2019
2018
1/1/2018
Swedish public
698 947
685 044
640 139
Non-Swedish public
254 718
234 726
206 592
Total deposits and borrowings from the 
public excl repurchase agreements and 
Swedish National Debt Office
953 665
919 770
846 731 
Repurchase agreements
18
641
8 707
Repurchase agreements, Swedish National 
Debt Office
1
Swedish National Debt Office
329
339
275
Total
954 013
920 750
855 713
2019
2018
1/1/2018
Investment contracts, unit-link 
206 981
161 300
162 938
Investment contracts, life
18 811
17 362
18 186
Total
225 792
178 662
181 124
2019
2018
1/1/2017
Commercial papers
128 772
131 434
149 974
Covered bonds
589 627
497 936
525 038
Senior unsecured bonds
128 445
164 243
160 348
Structured retail bonds
8 910
10 747
14 849
Total
855 754
804 360
850 209
2019
2018
1/1/2018
Shares
247
358
234
Interest-bearing securities
34 097
37 975
14 225
Total
34 345
38 333
14 459
of which own issued shares
24
257
199

135
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Defined benefit pension plans are recognised in the balance sheet as a provision and
in the income statement in their entirety as a pension cost in staff costs. Revaluations
of defined benefit pension plans are recognised in other comprehensive income. The
provision in the balance sheet is a net of the pension obligations and the fair value of
the assets allocated to fund the obligations, so-called plan assets. The Group calculates 
provisions and costs for defined benefit pension obligations based on the obligations’ 
significance and assumptions related to future development. The pension obligations 
as well as the cost of services rendered and interest expense for the pension obliga-
tions include payroll tax, which is calculated according to an actuarial method.
Nearly all employees hired in the Swedish part of the Group before 2013 are covered 
by the BTP2 defined benefit pension plan (a multi-employer occupational pension for 
Swedish banks). According to this plan, employees are guaranteed a lifetime pension 
corresponding to a specific percentage of their salary and mainly comprising retire-
ment pension, disability pension and survivor’s pension. Remuneration levels differ 
for salaries with different income base amounts. For salaries over 30 income base 
amounts, there is no pension according to BTP2. Consequently, the Group’s provision 
and pension cost are affected by each employee’s anticipated longevity, final salary 
and income base amounts. The pension plan also contains a complementary retirement 
pension which has been defined contribution since 2001 rather than defined benefit. In 
2012 BTP was renegotiated as entirely a defined contribution pension plan for all new 
employees as of 2013. The defined benefit pension plan therefore covers only those 
employed before 2013 and hence is being dissolved. The defined benefit portion of 
the BTP2 pension plan is funded by purchasing pension insurance from the insurance 
company SPK (Sparinstitutens PensionsKassa Forsäkringsforening). SPK administers 
pensions and manages pension assets for Swedbank and other employers. The Group 
has to determine its share of the plan assets held by SPK. The share amounted to 74 
per cent. This is done using the metric SPK is likely to have used on the closing day to 
distribute assets if the plan were immediately dissolved or if a situation arose that re-
quired an additional payment from employers due to insufficient assets. The employers 
are responsible for ensuring that SPK has sufficient assets to meet the pension plan’s 
obligations measured on the basis of SPK’s legal obligations. There is no such deficit. 
SPK’s asset management is mainly based on the regulations it faces. The Group’s provi-
sion and other comprehensive income are therefore affected by SPK’s return on assets.
For individuals who have been in executive positions, there are complementary 
individual defined benefit pension obligations. They are funded through provisions to 
pension funds which comply with the Act on Safeguarding Pension Benefits. 
During 2017 PayEx was acquired. Its Swedish part provides defined benefit pension 
according to the so-called ITP plan (Industry and Trade Supplementary Pension). The 
benefits mainly correspond to the benefits in BTP 2. The provision in the balance sheet 
was SEK 308 m (214) at the end of the year. The pension commitments are secured in 
own balance sheet in accordance with the Guarantee Act “Tryggandelagen”.
G39 Pensions
Amount reported in balance sheet for defined 
benefit pension plans
2019
2018
1/1/2018
Funded pension obligations and payroll tax
29 316
24 272
22 918
Unfunded pension obligations  
and payroll tax
308
214
189
Fair value of plan assets
–20 826
–19 507
–19 907
Total
8 798
4 979
3 200
Changes in defined benefit pension plans, 
including payroll tax
2019
2018
Opening obligations
24 486
23 107
Current service cost and payroll tax
706
646
Interest expense on pension obligations
580
580
Pension payments
–787
–805
Payroll tax payments
–158
–146
Remeasurement
4 929
1 105
Business disposal
–133
Closing obligations
29 624
24 486
2019
2018
2019
Pension obligations, including payroll tax
Number of
Active members
12 490
9 920
4 910
Deferred members
7 163
4 750
10 326
Pensioners
9 971
9 816
13 217
Total
29 624
24 486
28 453
Vested benefits
25 502
21 097
Non-vested benefits
4 122
3 390
Total
29 624
24 486
of which attributable to future salary 
increases
4 203
3 228
Changes in plan assets
2019
2018
Opening fair value
19 508
19 907
Interest income on plan assets
470
510
Contributions by the employer
639
597
Pension payments
–787
–804
Remeasurement
1 063
–701
Business disposal
–68
Closing fair value
20 826
19 508
Fair value of plan assets
2019
of which 
quoted 
­market price 
in an active 
market
2018
of which 
quoted 
­market price 
in an active 
market
Bank balances
405
251
Swedish government and 
municipalities
403
403
Derivatives, currency-related
28
45
Investment funds, interest
11 071
11 071
10 707
10 707
Investment funds, shares
5 072
5 072
3 859
3 859
Investment funds, other
3 846
3 706
4 646
4 475
Total
20 826
20 252
19 508
19 336

136
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
When the cost of defined benefit pension plans is calculated, financial and demographic
assumptions have to be made for factors that affect the size of future pension pay-
ments. The discount rate is the interest rate used to discount the value of future pay-
ments. The interest rate is based on a market rate of interest for first-class corporate 
bonds traded on a functioning market with remaining maturities and currencies match-
ing those of the pension obligations. The Group considers Swedish covered mortgage 
bonds as such bonds, because of which the discount rate is based on their quoted 
prices. The Group’s own issues are excluded. Quoted prices are adjusted for remaining 
maturities with the help of prices for interest rate swaps. The weighted average matu-
rity of the defined benefit obligation is nearly 21 years (21). A reduction in the discount 
rate of 0.25 bp would increase the pension provision by approximately SEK 1 511m 
(1 164) and the pension cost by SEK 48 m (24). Future annual salary increases reflect 
projected future salary increases as an aggregate effect of both contractual wage in-
creases and wage drift. Because the defined benefit pension plan no longer covers new 
employees, only those employed before 2013, the salary increase assumption has been 
adapted to assume that the plan is closed. As of 2014 an age-based salary increase 
assumption is therefore used instead. This means that a unique salary increase as-
sumption is set for each age group of employees. As of 2014 the inflation assumption 
is based on quoted prices for nominal and index-linked government bonds. For longer 
maturities that lack quoted prices, the inflation assumption is gradually adapted to the 
Riksbank’s target of 2.00 percentage points. The final benefits under BTP are deter-
mined on the basis of the income base amount. Therefore, future changes in the income 
base amount have to be estimated. The assumption is based on historical outcomes. 
Annual pension indexation has to be determined as well, since indexation historically 
has always been necessary. The indexation is assumed to correspond to the inflation 
assumption. BTP2 gives employees born in 1966 or earlier the option to choose a 
slightly earlier retirement age than normal in exchange for a slightly lower benefit 
level. Since this option is totally voluntary on the part of those employees, an estimate 
is made of the future outcome. Early retirements jointly agreed to by the employer and 
employee are recognised as they arise rather than estimated among actuarial assump-
tions. The assumed remaining lifetime of beneficiaries is updated annually.
Remaining maturity 2019
< 1 yr
1–5 yrs
5–10 yrs
> 10 yrs
No maturity/
discounteffect
Total
Pension obligations, including payroll tax
862
3 397
4 454
31 809
–10 898
29 624
Plan assets
580
150
79
20 017
20 826
Expected contributions by the employer
949
Undiscounted cash flows
Remaining maturity 2018
< 1 yr
1–5 yrs
5–10 yrs
> 10 yrs
No maturity/
discounteffect
Total
Pension obligations, including payroll tax
865
3 360
4 385
31 845
–15 969
24 486
Plan assets
251
19 256
19 508
Expected contributions by the employer
818
Pension costs reported in income statement
2019
2018
Current service cost and payroll tax
706
646
Interest expense on pension obligations
580
580
Interest income on plan assets
–470
–510
Pension cost defined benefit pension plans
816
716
Premiums paid for defined contribution pension  
plans and payroll tax
487
412
Total
1 303
1 128
Remeasurements of defined benefit pension plans reported 
in other comprehensive income
2019
2018
Actuarial gains and losses based on experience
380
54
Actuarial gains and losses arising from changes in  
financial assumptions
–5 309
–1 159
Return on plan assets, excluding amounts included in 
interest income
1 063
–701
Total
– 3 866
–1 806
Actuarial assumptions, per cent
2019
2018
Financial
Discount rate, 1 January
2,42
2,56
Discount rate, 31 December
1,46
2,42
Future annual salary increases, 1 January
3,55
3,39
Future annual salary increases, 31 December
3,76
3,55
Future annual pension indexations/inflation, 1 January
1,92
1,95
Future annual pension indexations/inflation, 31 December
1,98
1,92
Future annual changes in income base amount, 1 January
3,66
3,73
Future annual changes in income base amount,  
31 December
3,73
3,66
Demographic
Entitled employees who choose early retirement option
50,00
50,00
Future annual employee turnover
3,50
3,50
Expected remaining life for a 65 years old man
22
22
Expected remaining life for a 65 years old woman
24
24
Sensitivity analysis, pension obligations
2019
2018
Financial
Change in discount rate –25 bps
1 511
1 164
Change in salary assumption +25 bps
650
521
Change in pension indexation/inflation  
assumption +25 bps
1 504
1 127
Change in income base amount assumption –25 bps
285
225
Demographic
All entitled employees choose early retirement  
option at maximum
783
901
Change in employee turnover assumption –25 bps
76
58
Expected remaining life for a 65 years old man and 
woman +2 year
2 434
1 747

137
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Provisions for insurance contracts
The Group allocates provisions for the insurance contracts or parts of contracts where 
significant insurance risks are transferred from the policyholder to the Group. Insurance 
risks differ from financial risks and mean that the Group compensates the policyholder 
if a specified uncertain future event adversely impacts the policyholder. The Group is 
compensated through premiums received from policyholders. Provisions are allocated 
for established claims and correspond to the amount that will be paid out. Provisions 
are also made for damages incurred but not reported. A statistical assessment of 
anticipated claims based on previous years’ experience with each type of insurance 
contract is used as a basis for the provision. Assumptions are made with regard to 
interest rates, morbidity, mortality and expenses.
Recognised lease liabilities reflects the present value of future cash flows in lease 
agreements where the Group acts as a lessee. Future cashflows of the lease liabilities 
are presented in a maturity analysis and description of changes in the lease liabilities 
within Liquidity risk in note 3.3. Information about the corresponding right-of-use 
assets are presented within note G31 Tangible Assets. 
Future cash outflows to which the Group is potentially exposed, related to extension 
and termination options in lease agreements, that are not reflected in the measure-
ment of lease liabilities amounted to SEK 3 020m. Future cash outflows for leases not 
yet commenced to which the Group is committed amounted to SEK 1 047m. Expenses 
related to short-term leases, leases of low-value assets and variable lease payments 
are presented within Other general administrative expenses in note G14. 
 
G40 Insurance provisions
G43 Subordinated liabilities
G41 Other liabilities and provisions
G42 Accrued expenses and prepaid income
The Group has a total of USD 1 750m Additional Tier 1 capital (AT1) outstanding, 
which is perpetual. USD 750m was issued on 12 February 2015 with a call option 
on 17 March 2020. USD 500m was issued on 9 December 2016 with a call option on 
17 March 2022. USD 500m was issued on 22 August 2019 with a call option on 17 
September 2024. The liabilities will be converted to ordinary shares in Swedbank AB if 
the core tier one ratio of Swedbank AB or the consolidated situation falls below 5.125 
per cent or 8.0 per cent respectively. The Additional Tier 1 liabilities issued 2015 and 
2016 are converted at current share price, but not lower than USD 15,70 converted to 
SEK. The Additional Tier 1 liability issued 2019 is converted at current share price but 
not lower than USD 8.75 converted to SEK.
Life insurance
Non-life insurance
Total
2019
2018
1/1/2018
2019
2018
1/1/2018
2019
2018
1/1/2018
Opening balance
 1 469
1 491
1 592
428
343
228
1 897
1 834
1 820
Provisions
611
645
1 137
648
600
526
1 259
1 245
1 663
Payments
–677
–703
–1 264
–604
–530
–418
–1 281
–1 233
–1 682
Exchange rate differences
13
36
26
6
15
7
19
51
33
Closing balance
1 416
1 469
1 491
478
428
343
1 894
1 897
1 834
2019
2018
1/1/2018
Security settlement liabilities
2 328
5 889
6 564
Lease liabilities
3 659
Other financial liabilities
22 128
23 687
18 001
Provisions for commitments  
and financial guarantees
582
407
650
Total financial liabilities
28 697
29 983
25 215
Restructuring provision
26
315
Other provisions
86
52
47
Total
28 807
30 035
25 577
2019
2018
1/1/2018
Accrued expenses
3 742
2 649
2 379
Contract liabilities
641
736
611
Total
4 383
3 385
2 990
2019
2018
1/1/2018
Subordinated loans
15 453
23 015
14 590
Undated subordinated loans,  
primary capital injection
16 482
11 169
11 274
Total
31 934
34 184
25 864

138
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G45 Valuation categories of financial instruments
Financial assets
2019
Fair value through profit or loss
Hedging 
Instruments
Amortised 
cost
Mandatorily
Carrying Amount in SEKm
Trading
Other  
business 
models
Total
Total
Cash and balances with central banks
195 286
195 286
Treasury bills and other bills eligible for refinancing with central banks
9 465
7 055
16 520
120 574
137 094
Loans to credit institutions
9
9
45 443
45 452
Loans to the public1
46 667
154
46 821
1 605 475
1 652 296
Value change of interest hedged items in portfolio hedge
271
271
Bonds and other interest-bearing securities
34 006
23 323
57 329
38
57 367
Financial assets for which customers bear the investment risk
224 893
224 893
224 893
Shares and participating interests
4 041
2 527
6 568
6 568
Derivatives
30 519
30 519
13 905
44 424
Other financial assets (G32)
8 804
8 804
Total
124 707
257 952
382 659
13 905
1 975 891
2 372 455
Financial liabilities
2019
Fair value through profit or loss
Hedging 
instruments
Amortised 
cost
Carrying Amount in SEKm
Trading
Designated
Total
Total
Amounts owed to credit institutions
4
4
69 682
69 686
Deposits and borrowings from the public2
18
18
953 995
954 013
Financial liabilities for which customers bear the investment risk
225 792
225 792
225 792
Debt securites in issue2
8 909
1 876
10 785
844 969
855 754
Short position securities
34 345
34 345
34 345
Derivatives
39 078
39 078
1 899
40 977
Senior non-preferred liabililties
10 805
10 805
Subordinated liabilities
31 934
31 934
Other financial liabilities (G41)
28  697
28 697
Total
82 354
227 668
310 022
1899
1 940 082
2 252 003
1) Financial leasing agreements, when the Group is acting as lessor, are included in the valuation category Amortised Cost.
2) Nominal amount of deposits and borrowings from the public and debt securities designated at fair value through profit or loss was SEK 1 676m.
Changes in equity for the year and the distribution according to IFRS are indicated in
the statement of changes in equity. Ordinary shares each carry one vote and a share in 
profits. Treasury shares are not eligible for dividends.
1) Of which development fund for internally developed software SEK 2 660 m (2 122).
G44 Equity
2019
2018
1/1/2018
Restricted equity
Share capital, ordinary shares
24 904
24 904
24 904
Statutory reserve
9 665
9 563
9 458
Other reserve1
25 224
23 867
23 997
Total
59 793
58 334
58 359
Non-restricted equity
Currency translation from foreign  
operations
2 399
2 064
1 347
Cash flow hedge reserve
8
4
–10
Foreign currency basis reserve
–33
–19
38
Own credit risk reserve
–5
–18
–36
Share premium reserve
13 206
13 206
13 206
Retained earnings
63 240
63 825
58 327
Total
78 815
79 062
72 872
Non-controlling interest
25
213
202
Total equity
138 633
137 609
131 433
Ordinary shares
Number of shares
2019
2018
1/1/2018
Number of shares authorized, 
issued and fully paid
1 132 005 722
1 132 005 722
1 132 005 722
Own shares
–13 701 333
–15 331 361
–18 376 101
Number of outstanding 
shares
1 118 304 389 1 116 674 361 1 113 629 621
Opening balance
1 116 674 361 1 113 629 621 1 110 731 820
Share delivery due to Equity-
settled share based programmes
1 630 028
3 044 740
2 897 801
Closing balance
1 118 304 389 1 116 674 361 1 113 629 621
The quote value per share is SEK 22.

139
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
1) Leasing assets are classified according to IAS 17 Leases but are included in the valuation category Amortised Cost.
2) Nominal amount of Debt securities, identified as Fair value through profit or loss, Designated, amounted to SEK 3 680m.
Financial assets
2018
Fair value through  
profit or loss
Hedging 
Instruments
Amortised 
cost
Mandatorily
Carrying Amount in SEKm
Trading
Other busi-
ness models
Total
Total
Cash and balances with central banks
163 161
163 161
Treasury bills and other bills eligible for refinancing with central banks
11 796
7 479
19 275
80 304
99 579
Loans to credit institutions
92
92
36 176
36 268
Loans to the public1
39 714
166
39 880
1 587 488
1 627 368
Value change of interest hedged items in portfolio hedge
766
766
Bonds and other interest-bearing securities
31 237
19 864
51 101
2 210
53 312
Financial assets for which customers bear the investment risk
177 868
177 868
177 868
Shares and participating interests
3 127
1 794
4 921
4 921
Derivatives
29 113
29 113
10 551
39 665
Other financial assets
13 889
13 889
Total
115 080
207 172
322 251
10 551
1 883 993
2 216 797
Financial liabilities
2018
Fair value through  
profit or loss
Hedging  
instruments
Amortised 
cost
Carrying Amount in SEKm
Trading
Designated
Total
Total
Amounts owed to credit institutions
266
266
56 952
57 218
Deposits and borrowings from the public
641
641
920 109
920 750
Financial liabilities for which customers bear the investment risk
178 662
178 662
178 662
Debt securites in issue2
10 746
4 004
14 750
789 611
804 361
Short position securities
38 333
38 333
38 333
Derivatives
28 878
28 878
2 438
31 316
Subordinated liabilities
34 184
34 184
Other financial liabilities
29 983
29 983
Total
78 864
182 666
261 530
2 438
1 830 839
2 094 807

140
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G46 Fair value of financial instruments
Carrying amounts and fair values of financial instruments
A comparison between the carrying amount and fair value of the Group’s financial
assets and financial liabilities is presented below.
Determination of fair values of financial instruments
The Group uses various methods to determine the fair value of financial instruments 
depending on the degree of observable market data in the valuation and activity in 
the market. An active market is considered a regulated or reliable marketplace where 
quoted prices are easily accessible and which demonstrates regularity. Activity is con-
tinuously evaluated by analysing factors such as differences in bid and ask prices.
The methods are divided in three different levels:
• Level 1: Unadjusted quoted price on an active market
• Level 2: Adjusted quoted price or valuation model with valuation parameters derived 
from an active market
• Level 3: Valuation model where a significant valuation parameters are non- 
observable and based on internal assumptions.
When financial assets and financial liabilities in active markets have market risks that 
offset each other, an average of bid and ask prices is used as a basis to determine the 
fair value. For any open net positions, bid and ask rates are applied based on what is 
applicable i.e. bid rates for long positions and ask rates for short positions. Where the 
fair value is derived from a modelling technique, the valuation is performed using mid 
prices. When relevant, a bid/ask adjustment is applied to ensure that long positions are 
recognised at bid price and short positions – at ask price.
In cases that lack an active market, fair value is determined with the help of 
established valuation methods and models. In these cases assumptions that cannot 
be directly attributed to a market may be applied. These assumptions are based on 
experience and knowledge of the valuation of financial markets. The goal, however, is 
to always maximise the use of data from an active market. All valuation methods and 
models and internal assumptions are validated continuously by the independent risk 
control unit. In cases where it is considered necessary, adjustments are made to reflect 
fair value, so-called fair value adjustments. This is done to correctly reflect the param-
eters in the financial instruments and which should be considered in their valuations. 
For OTC derivatives, for example, where the counterparty risk is not settled with cash 
collateral, the fair value adjustment is based on the current counterparty risk (CVA  
and DVA). CVA and DVA are calculated using simulated exposures; the method is 
calibrated with market implied parameters.
The Group has a continuous process that identifies financial instruments which 
indicate a high level of internal assumptions or low level of observable market data.  
The process determines how to make the calculation based on how the internal as-
sumptions are expected to affect the valuation. In cases where internal assumptions 
have a significant impact on fair value, the financial instrument is reported in level 3.  
The process also includes an analysis based on the quality of valuation data and whether 
any types of financial instruments will be transferred between the various levels. 
For floating rate lending and deposits, the carrying amount equals the fair value. 
2019
2018
1/1/2018
Fair value
Carrying 
amount
Difference
Fair value
Carrying 
amount
Difference
Fair value
Carrying amount
Difference
Assets
Financial assets
Cash and balances with central banks
195 286
195 286
163 161
163 161
200 371
200 371
Treasury bills etc.
137 119
137 094
25
99 743
99 579
164
85 961
85 903
58
of which measured at amortised cost
120 599
120 574
25
80 468
80 304
164
65 469
65 411
58
of which measured at fair value  
through profit or loss
16 520
16 520
19 275
19 275
20 492
20 492
Loans to credit institutions
45 452
45 452
36 268
36 268
30 746
30 746
of which measured at amortised cost
45 443
45 443
36 176
36 176
30 235
30 235
of which measured at fair value  
through profit or loss
9
9
92
92
511
511
Loans to the public
1 660 659
1 652 296
8 363
1 629 641
1 627 368
2 273
1 532 977
1 535 198
–2 221
of which measured at amortised cost
1 613 838
1 605 475
8 363
1 589 761
1 587 488
2 273
1 415 158
1 417 379
–2 221
of which measured at fair value  
through profit or loss
46 821
46 821
39 880
39 880
117 819
117 819
Value change of interest hedged items 
in portfolio hedge
271
271
766
766
789
789
Bonds and interest-bearing securities
57 369
57 367
2
53 316
53 312
4
59 136
59 131
5
of which measured at amortised cost
40
38
2
2 215
2 211
4
3 327
3 322
5
of which measured at fair value  
through profit or loss
57 329
57 329
51 101
51 101
55 809
55 809
Financial assets for which the customers 
bear the investment risk
224 893
224 893
177 868
177 868
180 320
180 320
Shares and participating interest
6 568
6 568
4 921
4 921
19 850
19 850
of which measured at fair value  
through profit or loss
6 568
6 568
4 921
4 921
19 850
19 850
Derivatives
44 424
44 424
39 665
39 665
55 680
55 680
Other financial assets (G32)
8 804
8 804
13 889
13 889
16 772
16 772
Total
2 380 846
2 372 455
8 390
2 219 238
2 216 797
2 441
2 182 602
2 184 760
–2 158
Investment in associates
6 679
6 088
6 357
Non-financial assets
29 094
23 207
21 519
Total
2 408 228
2 246 092
2 212 636

141
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
depending on the type of available data. Input to these methods are primarily prices, 
proxy prices, market indicators and company information. 
When valuation models are used to determine the fair value of financial instruments 
in level 3, the transaction price paid or received is assessed as the best evidence of fair 
value at initial recognition. Due to the possibility that a difference could arise between 
the transaction price and the fair value calculated at the time using the valuation 
model, so called day 1 profit or loss, the valuation model is calibrated against the 
transaction price. As of year-end there were no cumulative differences reported in the 
balance sheet. 
Transfers between fair value hierarchy levels are reflected as taking place at the 
end of each quarter. During the years ended 2019 and 2018, there were no transfers 
of financial instruments between valuation levels 1 and 2. Financial instruments are 
transferred to or from level 3 depending on whether the internal assumptions have 
changed in significance for the valuation. 
The cumulative value change after tax, attributable to changes in Swedbank’s own 
credit risk, of debt securities in issue identified to measured to the fair value, amounted 
to SEK –5 m (–18). The change in value amounted to SEK 17 m (22) during the year. 
The value change attributable to changes in own credit risk is recognised in other com-
prehensive income. The change due to Swedbank’s own credit risk has been determined 
by calculating the difference in value based on current prices from external dealers for 
Swedbank’s own credit risk in its own unquoted issues and the corresponding prices on 
the origination date. 
The following table shows financial instruments measured at fair value as per 
31 December distributed by valuation level.
Financial instruments recognised at fair value
The following tables present fair values of financial instruments recognised at fair 
value split between the three valuation hierarchy levels.
Level 1 primarily contains equities, fund shares, bonds, treasury bills, commercial 
papers, debt securities in issue and standardised derivatives, where quoted prices on 
an active market are used in the valuation. 
Level 2 primarily contains OTC derivatives, less liquid bonds, debt securities in 
issue, deposits, and investment contract liabilities in the insurance operations. Equity 
derivatives and all instruments with optionality are valued using option pricing models 
calibrated by market implied parameters. All other interest rate, foreign exchange or 
credit derivatives as well as interest-bearing instruments are valued by discounted 
cash flows using market implied curves. The fair value of investment contract liabilities 
in the insurance operations is determined by the fair value of the underlying assets 
(i.e., amount payable on surrender of the policies).
Level 3 contains other financial instruments where internal assumptions have a sig-
nificant effect on the calculation of fair value. Level 3 primarily contains unlisted equity 
instruments. The unlisted equity instruments include strategic investments. During 
2018 Swedbank received more convertible preference shares in VISA Inc as dividend 
from its associate VISA Sweden. VISA Inc. shares are subject to selling restrictions 
for a period of up to 9 years and under certain conditions may have to be returned. 
The carrying amount was SEK 1 288m at end of 2019. Because liquid quotes are not 
available for the instrument, its fair value is established with significant elements of 
own internal assumptions and reported in level 3 as equity instruments. The valuation 
of unlisted shares is based on the share price. For the shares in level 3 the price is unob-
servable, this implies that the sensitivity in the value to changes in the unobservable 
parameter is linear. To estimate the unobservable price different methods are applied 
2019
2018
1/1/2018
Fair value
Carrying 
amount
Difference
Fair value
Carrying 
amount
Difference
Fair value
Carrying 
amount
Difference
Liabilities
Financial liabilities
Amounts owed to credit institutions
69 569
69 686
–117
58 595
57 218
1 377
68 055
68 055
of which measured at amortised cost
69 565
69 682
–117
58 329
56 952
1 377
68 055
68 055
of which measured at fair value  
through profit or loss
4
4
266
266
Deposits and borrowings from the public
953 996
954 013
–17
920 745
920 750
–5
855 597
855 609
–12
of which measured at amortised cost
953 978
953 995
–17
920 107
920 112
–5
846 890
846 902
–12
of which measured at fair value  
through profit or loss
18
18
638
638
8 707
8 707
Debt securities in issue
861 883
855 754
6 129
810 617
804 360
6 257
851 908
844 204
7 704
of which measured at amortised cost
851 098
844 969
6 129
795 867
789 610
6 257
829 395
821 691
7 704
of which measured at fair value  
through profit or loss
10 785
10 785
14 750
14 750
22 513
22 513
Financial liabilities for which the customers  
bear the investment risk
225 792
225 792
178 662
178 662
181 124
181 124
Senior non-preffered liabilities
10 299
10 805
–506
 of which measured at amortised cost
10 299
10 805
–506
Subordinated liabilities
31 730
31 934
–204
34 366
34 184
182
25 525
25 508
17
of which measured at amortised cost
31 730
31 934
–204
34 366
34 184
182
25 525
25 508
17
Derivatives
40 977
40 977
31 316
31 316
46 200
46 200
Short positions securities
34 345
34 345
38 333
38 333
14 459
14 459
of which measured at fair value  
through profit or loss
34 345
34 545
38 333
38 333
14 459
14 459
Other financial liabilities (G41)
28 697
28 697
29 576
29 576
31 219
31 219
Total
2 257 794
2 252 003
5 285
2 102 209
2 094 399
7 810
2 074 087
2 066 378
7 709
Non-financial liabilities
17 592
14 084
12 686
Total
2 269 595
2 108 483
2 079 064

142
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
2019
At fair value
Level 1
Level 2
Level 3
Total
Assets
Treasury bills and other bills eligible for refinancing with central banks, etc
12 405
4 115
16 520
Loans to credit institutions
9
9
Loans to the public
46 821
46 821
Bonds and interest-bearing securities
22 935
34 394
57 329
Financial assets for which the customers bear the investment risk
224 893
224 893
Shares and participating interest
4 714
1 854
6 568
Derivatives
12
44 412
44 424
Total
264 959
129 751
1 854
396 564
Liabilities
Amounts owed to credit institutions
4
4
Deposits and borrowings from the public
18
18
Debt securities in issue
10 785
10 785
Financial liabilities for which the customers bear the investment risk
225 792
225 792
Derivatives
16
40 961
40 977
Short positions securities
31 864
2 481
34 345
Total
31 880
280 041
311 921
2018
Level 1
Level 2
Level 3
Total
Assets
Treasury bills and other bills eligible for refinancing with central banks, etc
13 083
6 192
19 275
Loans to credit institutions
92
92
Loans to the public
39 880
39 880
Bonds and interest-bearing securities
22 319
28 782
51 101
Financial assets for which the customers bear the investment risk
177 868
177 868
Shares and participating interest
3 657
1 264
4 921
Derivatives
466
39 197
2
39 665
Total
217 393
114 143
1 266
332 802
Liabilities
Amounts owed to credit institutions
266
266
Deposits and borrowings from the public
638
638
Debt securities in issue
58
14 692
14 750
Financial liabilities for which the customers bear the investment risk
178 662
178 662
Derivatives
406
30 910
31 316
Short positions securities
38 333
38 333
Total
38 797
225 168
263 965

143
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
Financial instruments at amortised cost
The following tables distribute fair value by the three different valuation levels for financial instruments at amortised cost. The valuation techniques used to establish fair value of 
financial instruments at amortised cost are consistent with those described in section “Financial instruments recognised at fair value” above.
Changes in Level 3
2018
Assets
Equity 
­instruments
Derivatives
Total
Opening balance
449
26
475
Purchases
65
65
VISA Inc. C Shares received
692
692
Sales of assets
–3
–3
Maturities
–15
–15
Transferred from Level 2 to Level 3
3
2
5
Transferred from Level 3 to Level 2
–13
–13
Gains and losses recognised as Net gains and losses on financial instruments
58
2
60
of which changes in unrealised gains or losses for items held at closing day
63
63
Closing balance
1 264
2
1 266
Changes in Level 3
2019
Assets
Equity 
­instruments
Derivatives
Total
Opening balance
1 264
2
1 266
Purchases
30
30
Sales of assets and dividend
–14
–14
Maturities
–1
–1
Gains and losses recognised as Net gains and losses on financial instruments
574
–1
573
 of which changes in unrealised gains or losses for items held at closing day
567
567
Closing balance
1 854
0
1 854

144
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
At amortised cost
2019
Carrying 
amount
Fair value
Level 1
Level 2
Level 3
Total
Assets
Treasury bills and other bills eligible for refinancing with central banks, etc.
120 574
120 599
120 599
Loans to credit institutions
45 443
45 443
45 443
Loans to the public
1 605 475
1 527 578
86 260
1 613 838
Bonds and other interest-bearing securities
38
40
40
Total
1 771 530
120 639
1 573 021
86 260
1 779 920
Liabilities
Amounts owed to credit institutions
69 682
69 565
69 565
Deposits and borrowing from the public
953 995
953 978
953 978
Debts securities in issue
844 969
377 666
473 432
851 098
Senior non-prefered liabilities
10 805
10 299
10 299
Subordinated liabilities
31 934
31 730
31 730
Total
1 911 385
377 666
1 539 004
1 916 670
2018
Carrying 
amount
Fair value
Level 1
Level 2
Level 3
Total
Assets
Treasury bills and other bills eligible for refinancing with central banks, etc.
80 304
80 468
80 468
Loans to credit institutions
36 176
35 972
204
36 176
Loans to the public
1 578 488
1 509 859
79 902
1 589 761
Bonds and other interest-bearing securities
2 211
40
2 175
2 215
Total
1 706 179
80 508
1 548 006
80 106
1 708 620
Liabilities
Amounts owed to credit institutions
56 952
56 667
1 662
58 329
Deposits and borrowing from the public
920 112
831 385
88 722
920 107
Debts securities in issue
789 610
322 572
473 295
795 867
Subordinated liabilities
34 184
34 366
34 366
Total
1 800 858
322 572
1 395 713
90 384
1 808 669

145
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The tables below present recognised financial instruments that have been offset in the 
balance sheet under IAS 32 and those that are subject to legally enforceable master 
netting or similar agreements but do not qualify for offset. Such financial instruments 
relate to derivatives, repurchase and reverse repurchase agreements, securities bor-
rowing and lending transactions. Collateral amounts represent financial instruments 
or cash collateral received or pledged for transactions that are subject to a legally 
enforceable master netting or similar agreements and which allow for the netting 
of obligations against the counterparty in the event of a default. Collateral amounts 
are limited to the amount of the related instruments presented in the balance sheet; 
therefore any over-collateralisation is not included. Amounts that are not offset in the 
balance sheet are presented as a reduction to the financial assets or liabilities in order 
to derive net asset and net liability exposures. The amounts offset for derivative assets 
includes offset cash collateral of SEK 2 783 m (261) derived from the balance sheet 
item Amounts owed to credit institutions. The amount offset for derivative liabilities 
include cash collateral offsets of SEK 4 701 m (4 177).
G47 Financial assets and liabilities which have been offset or are subject to  
netting or similar agreements
Assets
2019
2018
Derivatives
Reverse 
repurchase 
agreements
Securities 
borrowing
Total
Derivatives
Reverse 
repurchase 
agreements
Securities 
borrowing
Total
Financial assets, which not have been offset or are not subject 
to netting agreements
2 002
2 002
1 605
1 605
Financial assets, which have been offset or are subject  
to netting agreements
42 422
46 677
276
89 375
38 060
39 807
137
78 004
Net carrying amount on the balance sheet
44 424
46 677
276
91 377
39 665
39 807
137
79 609
Financial assets, which have been offset or are subject  
to netting agreements
Gross amount
114 736
97 585
276
212 597
68 325
93 600
137
162 062
Offset amount
–72 314
–50 908
–123 222
–30 265
–53 793
–84 058
Net carrying amount on the balance sheet
42 422
46 677
276
89 375
38 060
39 807
137
78 004
Related amount not offset on the balance sheet
Financial instruments, netting agreements
15 338
15 338
16 676
644
17 320
Financial instruments, collateral
8
46 677
276
46 961
135
34 940
137
35 212
Cash, collateral
11 897
11 897
1 529
6
1 535
Total amount not offset on the balance sheet
27 243
46 677
276
74 196
18 340
35 590
137
54 067
Net amount
15 179
15 179
19 720
4 217
23 937
Liabilities
2019
2018
Derivatives
Repurchase 
agreements
Securities 
lending
Total
Derivatives
Repurchase 
agreements
Securities 
lending
Total
Financial liabilities, which have not been offset or are not 
­subject to netting agreements
2 795
2 795
1 841
1 841
Financial liabilities, which have been offset or are subject  
to netting agreements
38 182
23
38 205
29 475
907
22
30 404
Net carrying amount on the balance sheet
40 977
23
41 000
31 316
907
22
32 245
Financial liabilities, which have been offset or are subject 
to netting agreements
Gross amount
112 414
50 931
163 345
62 385
54 700
22
117 107
Offset amount
–74 232
–50 908
–125 140
–32 910
–53 793
–86 703
Net carrying amount on the balance sheet
38 182
23
38 205
29 475
907
22
30 404
Related amount not offset on the balance sheet
Financial instruments, netting agreements
15 338
15 338
16 676
644
17 320
Financial instruments, collateral
3 264
3 264
2 309
263
22
2 594
Cash, collateral
16 081
23
16 104
4 890
4 890
Total amount not offset on the balance sheet
34 683
23
34 706
23 875
907
22
24 804
Net amount
3 499
3 499
5 600
5 600

146
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The Board of Directors recommends that shareholders receive a dividend of SEK 8.80
per ordinary share (14.20) in 2020 for the financial year 2019, corresponding to
SEK 9 856m (15 885).
Companies in the Group regularly pledge financial assets as collateral for their obligations 
to central banks, stock exchanges, central securities depositories, clearing organisations and 
other institutions with similar or closely related functions, as well as to insurance policyhold-
ers. The transactions can be made by one or more companies in the Group depending on 
the operations of each company. These financial assets are recognised as assets pledged. 
Companies in the Group also participate in arrangements that are not pledges but where 
financial assets are used for similar purposes. Such financial assets are also recognised as 
assets pledged. One example of assets pledged is when financial assets of a certain value 
are transferred to derivative counterparties to offset their credit risk vis-à-vis the Group. 
Another example involves certain transfers of financial assets that the Group is obligated 
to repurchase, so-called repos. A third example is that certain types of credit can be included 
in the cover pool for covered bonds and thereby give preferential rights to the assets to 
investors who hold such bonds. Because of the pledges and other arrangements mentioned 
above, the value of the financial assets in question cannot be utilised in any other way as 
long as the pledge or arrangement remains in effect. The transactions are made on com-
mercial terms.
1) The pledge is defined as the borrower’s nominal debt including accrued interest.  
Refers to the loans of the total available collateral that are used as the pledge at each 
point in time
The carrying amount of liabilities for which assets are pledged amounted to  
SEK 839 629m (702 637) for the Group.
G48 Specification of adjustments for  
non-cash items in operating activities
G50 Assets pledged, contingent liabilities 
and commitments
G49 Dividend paid and proposed
For more information see parent company note P43.
2019
2018
Amortised origination fees
–696
–698
Unrealised changes in value/currency changes
–534
–97
Capital gains/losses on sale of subsidiaries and associates
–65
–688
Capital gains/losses on sale of condominiums
–8
Undistributed share of equity in associates
–822
–1 028
Depreciation and impairment of tangible fixed assets 
including repossessed leased assets
1 127
358
Amortisation and impairment of goodwill and other 
intangible fixed assets
509
635
Credit impairment
1 671
886
Prepaid expenses and accrued income
–1 318
2 156
Accrued expenses and prepaid income
4 818
–4 497
Share-based payment
272
321
Other
–2
554
Total
4 952
–2 098
2019
2018
Ordinary shares
SEK per 
share
Total
SEK per 
share
Total
Dividend paid
14.20
15 878
13.00
14 517
Proposed dividend
8.80
9 856
14.20
15 885
Assets pledged
Assets pledged for own liabilities
2019
2018
1/1/2018
Government securities and bonds pledged 
with the Riksbank
10 000
9 776
8 047
Government securities and bonds pledged 
with foreign central banks
5 356
6 691
6 229
Government securities and bonds pledged 
for liabilities to credit institutions, 
­repurchase agreements
8 687
6 920
3 621
Government securities and bonds pledged 
for deposits from the public, repurchase 
agreements
15 680
13 506
7 260
Loans used as collateral for covered bonds1
578 758
497 691
518 805
Financial assets pledged for  
investment contracts
220 589
174 668
177 317
Cash
9 002
4 470
4 484
Total
848 072
713 722
725 763
Other assets pledged
2019
2018
1/1/2018
Equity instrument
84
186
16
Government securities and bonds 
pledged for other commitments
3 475
1 858
2 857
Cash
436
445
506
Total
3 995
2 489
3 379
Contingent liabilities
Nominal amount
2019
2018
1/1/2018
Loan guarantees
6 263
7 646
6 268
Other guarantees
41 767
36 827
34 171
Accepted and endorsed notes
1 200
1 988
439
Letters of credit granted but not utilised
2 778
2 528
2 830
Other contingent liabilities
27
366
349
Total
52 035
49 355
44 057
Commitments
Nominal amount
2019
2018
1/1/2018
Loans granted but not paid
223 108
215 662
196 333
Overdraft facilities granted but not utilised
64 305
62 677
66 588
Total
287 413
278 339
262 921
Credit impairment provisions for contingent 
liabilities and commitments
–582
–407
–132
Money laundering
Swedbank is cooperating with authorities in Sweden, the three Baltic countries and the 
United States. Authorities in Sweden, Estonia and the United States are conducting investi-
gations into Swedbank’s historic AML compliance and the Group’s response thereto, as well 
as related issues involving the Group’s anti-money laundering controls and certain individu-
als and entities who may at some time have been customers of the Group. The Swedish 
Economic Crime Authority has an ongoing investigation relating to potential aggravated 
swindling and insider information. The timing of the completion of the investigations is still 
unknown, except for the final report and decision on any sanctions from the Swedish FSA 
which is expected to be announced in March 2020. The outcome is still uncertain. At present, 
it is not possible to reliably estimate the amount of any potential settlement or fines, which 
could be material. 
The European Central Bank (ECB) has within their ongoing supervision conducted a review 
of Swedbank’s Baltic subsidiaries corporate governance and presented an action plan that 
will be implemented in cooperation with the Baltic subsidiaries.

147
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
The Group transfers ownership of financial assets in connection with repos and
security loans. Although ownership has been transferred in these transactions, the
asset remains on the balance sheet since the Group is still exposed to the asset’s risk of 
fluctuating in value. This is because the agreement stipulates at the time of transfer
that the asset will be restored. The sales proceeds received in connection with repos 
are recognised as liabilities. Related liabilities are reported in the note before any off-
setting in the balance sheet. All assets and related liabilities are recognised at fair value
and included in the valuation category fair value through profit and loss, trading.
Liabilities related to securities lending refer to collateral received in the form of cash. 
These liabilities are reported in the valuation category amortised cost. In addition to 
what is indicated in the table for securities lending, collateral is received in the form of 
other securities to cover the difference between the fair value of the transferred as-
sets and the recognised liability’s fair value. As of year-end the Group had no transfers 
of financial assets that had been derecognised and where the Group has continuing 
involvement.
G51 Transferred financial assets
G52 Operational leasing 2018
Transferred assets
Associated liabilities
2019
Carrying 
amount
Of which repurchase 
agreements 
Of which ­securities 
lending 
Carrying  
amount
Of which repurchase 
agreements 
Of which ­securities 
lending 
Equity instruments
84
84
Debt securities
24 367
24 367
24 209
24 209
Total
24 451
24 367
84
24 209
24 209
0
Transferred assets
Associated liabilities
2018
Carrying 
amount
Of which repurchase 
agreements 
 Of which ­securities 
lending 
Carrying  
amount
Of which repurchase 
agreements 
Of which ­securities 
lending 
Equity instruments
186
186
22
22
Debt securities
20 426
20 426
20 451
20 451
Total
20 612
20 426
186
20 473
20 451
22
Expenses
Income 
subleasing
Total
2019
859
11
849
2020
730
7
723
2021
589
1
588
2022
535
1
534
2023
479
1
478
2024
410
1
409
2025
370
1
369
2026
325
1
324
2027
310
1
309
2028 or later
1 685
2
1 683
Total
6 292
27
6 265
Transition from IAS 17 to IFRS 16
Amount according to above
6 292
Deduction of non-deductable VAT
781
Deducted lease payments:
Short-term leases
25
Leases of low-value assets
2
Commitments regarding leases not yet commenced
908
Variable lease payments
265
Discounting effect with the incremental borrowing rate at 1 January 2019, 
1.25 per cent
–164
Lease liabilities recognised at 1 January 2019
4 147

148
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G53 Related parties and other significant relationships
Associates and  
joint ventures
Other related  
parties
Assets
2019
2018
2019
2018
Loans to credit institutions
16 307
14 588
Loans to the public
5
4
Total assets
16 311
14 592
Liabilities
Amount owed to credit institutions
3 712
3 078
Deposits and borrowing from the 
public
455
248
Debt securities in issue
597
520
Other liabilities
81
Accrued expenses and prepaid income
1
Total liabilities
4 389
3 599
455
248
Contingent liabilities
Derivatives, nominal amount
1 013
867
Income and expenses
Interest income
142
270
Dividends received
529
1 045
Commission income
338
6
Commission expenses
241
11
Other income
4
6
Associates and Joint ventures
Investments in associates and joint ventures are specified in note G27.
During the year the Group provided capital injections to joint ventures of SEK 81 m 
(0). As of 31 December associates have issued guarantees and pledged assets of SEK 
643 m (673) on behalf of Swedbank.
The Group has sold services to associates and joint ventures that are not credit institu-
tions primarily in the form of product and systems development as well as marketing. The 
Group’s expenses to, and purchases of services from, associates and joint ventures that 
are not credit institutions mainly consist of payment services and cash management.
The partly owned banks that are associates sell products that are provided by the 
Group and receive commissions for servicing the products. The cooperation between
the partly owned banks and Swedbank is governed by the agreement described in 
the section, Other significant relationships. 
The Group’s holding in EnterCard is a joint venture. EnterCard issues debit and credit 
cards in Sweden and Norway to Swedbank’s customers. Swedbank AB finances Enter-
Card’s corresponding holding. 
Key persons
Disclosures regarding Board members and the Group Executive Committee can be 
found in note G13 Staff costs.
Other related parties
Swedbank’s pension funds and Sparinstitutens Pensionskassa secure employees’ 
postemployment benefits. They rely on Swedbank for traditional banking services.
Other significant relationships 
Swedbank has close cooperation with 58 of the in all 59 Savings banks in Sweden. 
A comprehensive cooperation agreement has been signed with 58 of the Savings 
banks and a minor clearing agreement with one small Savings Bank. 
Through the cooperation, the Savings banks are able to offer the products and ser-
vices of Swedbank and its subsidiaries to their customers. Together, the Savings banks 
account for about 30 per cent of the Group’s product sales in the Swedish market. 
In addition to marketing and product issues, close cooperation exists in a number of 
administrative areas. Swedbank is the clearing bank for the Savings banks and provides 
a wide range of IT services. The cooperation also offers the possibility to distribute 
development costs over a larger business volume.
The Savings banks and Savings bank foundations together represent one of the 
­largest shareholder groups in Swedbank, with a total of 14.3 per cent (13.9) of the 
voting rights.

149
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
A structured entity is an entity that has been designed so that voting or similar rights 
are not the dominant factor in deciding who controls the entity, such as when all 
voting rights relate to administrative tasks and the relevant activities are directed by 
means of contractual arrangements. In 2019 Swedbank owned interests in structured 
entities that were not consolidated since Swedbank did not control the entities. Infor-
mation on the Group’s interests in unconsolidated structured entities is provided below.
Sponsor definition
Swedbank is a sponsor of structured entities when the Group sets up and determines 
the design of a structured entity and when the structured entity’s products are associ-
ated with Swedbank’s brand.
1) The result from interests in unconsolidated structured entities includes asset management fees, changes in fair value and interest income.
During the year Swedbank did not provide any non-contractual financial or other support to unconsolidated structured entities and as of the closing day had no intention to 
provide such support.
Investment funds
Swedbank is a primarily sponsor of investment funds where the Group serves as a 
manager. Swedbank’s interests in such funds mainly refer to capital investments by 
the Group’s insurance operations, starting capital and fees received to manage the 
funds’ investments. Asset management fees are based on the fair value of the funds’ 
net assets. Consequently, these fees expose Swedbank to a variable return based on 
the funds’ performance. Swedbank has provided unused loan commitments to these 
investment funds, which entails a financial support to the investment funds.
Swedbank’s interests in unconsolidated structured entities are shown below. The
interests do not include ordinary derivatives such as interest rate and currency swaps
and transactions where Swedbank creates rather than receives variable returns from
the structured entity. Total assets in Group sponsored investments funds amounts to 
SEK 1 083 269 m (857 321). 
G54 Interests in unconsolidated structured entities
2019
Group Sponsored Investment Funds
Financial assets of which the customers bear the investment risk
18 304
Shares and participating interests
175
Total assets recognised in the balance sheet
18 479
Loan commitments
2 055
The Group's maximum exposure to loss
20 534
Total income from interests 1
8 092
2018
Group Sponsored Investment Funds
Financial assets of which the customers bear the investment risk
16 913
Shares and participating interests
147
Total assets recognised in the balance sheet
17 060
Loan commitments
1 905
The Group's maximum exposure to loss
18 965
Total income from interests1
4 884

150
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
1) The NII sensitivity calculation covers all interest bearing assets and liabilities, includ-
ing derivatives, in the banking book. It is a static analysis with parallel shifts across 
the interest rate curve that takes place over-night, and illustrates the effect on NII 
for a 12 month period. Maturing assets and liabilities during the 12 month period are 
assumed to be repriced to the existing contractual interest rate +/– the shift. The 
assets that are re-priced are assumed to have the same interest rate throughout the 
remaining part of the 12-month period. Contractual reference rate floors on floating 
asset contracts are taken into account in the sensitivity calculation. In the positive 
shift transaction accounts are assumed to have 0 per cent elasticity (i.e. there is no 
adjustment made to the paid interest) while all other deposits have a 100 per cent 
elasticity to changes in the market rate (i.e. adjustments are made to the interest 
paid). In the negative shift scenario a floor of 0 per cent on contractual rates for 
deposits from private individuals is applied. All other balance sheet items allow for 
negative contractual rates.
2) The calculation refers to the immediate effect on profit of each scenario for the 
Group’s interest rate positions at fair value and its equity and currency positions.
Note that nonsymmetric effects can occur due to non-linear products.
3) Refers to the effect on net commission income from a change in value of Swedbank 
Robur’s equity funds.
On 13 January 2020 the recruitment of Erik Ljungberg as Head of Group Communica-
tions with responsibility for communication, branding, marketing and sustainability 
issues was announced. He will be a member of the Group Executive Committee and 
take up his position no later than July 2020. 
 On 29 January Swedbank’s Nomination Committee announced its proposal on Board 
members to the Annual General Meeting. It proposes the re-election of current Board 
members Göran Persson, Bo Magnusson, Kerstin Hermansson, Josefin Lindstrand and 
Anna Mossberg. Bo Bengtsson, Göran Bengtsson, Hans Eckerström, Bengt Erik Lind-
gren and Biljana Pehrsson are proposed as new members. Göran Persson is proposed 
as Chair of the Board of Directors. 
G55 Sensitivity analysis
G56 Events after 31 December 2019
Change
2019
2018
Net interest income, 12 months,1
Increased interest rates
+ 1 % point
7 535
7 063
Decreased interest rates
– 1 % point
–4 968
–4 850
Change in value,2
Market interest rate
+ 1 % point
1 052
1 486
– 1 % point
–1 544
–1 570
Stock prices
+10%
15
15
–10%
1
9
Exchange rates
+5%
73
–39
–5%
21
70
Other
Stock market performance,3
+/– 10 %
+/–532
+/–347
Staff changes
+/– 100 persons
+/–74
+/–71
Payroll changes
+/– 1 % point
+/–100
+/–94
Credit impairment ratio
+/– 0.1 % point
+/– 1 698
+/–1 664

151
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G57 Effects of changes in accounting policies, IFRS 16
31 December 2018
IFRS 16 effect
1 January 2019
Assets
Cash and balances with central banks
163 161
163 161
Loans to credit institutions
36 268
36 268
Loans to the public
1 627 368
1 627 368
Value change of interest hedged item in portfolio hedge
766
766
Interest-bearing securities
152 891
152 891
Financial assets for which the customers bear the investment risk
177 868
177 868
Shares and participating interests
4 921
4 921
Investments in associates
6 088
6 088
Derivatives
39 665
39 665
Intangible assets
17 118
17 118
Tangible assets
1 966
4 251
6 217
Current tax assets
2 065
2 065
Deferred tax assets
164
164
Other assets
13 970
13 970
Prepaid expenses and accrued income
1 813
–104
1 709
Total assets
2 246 092
4 147
2 250 239
Liabilities and equity
Liabilities
Amounts owed to credit institutions
57 218
57 218
Deposits and borrowings from the public
920 750
920 750
Financial liabilities for which the customers bear the investment risk
178 662
178 662
Debt securities in issue
804 360
804 360
Short positions securities
38 333
38 333
Derivatives
31 316
31 316
Current tax liabilities
1 788
1 788
Deferred tax liabilities
1 576
1 576
Pension provisions
4 979
4 979
Insurance provisions
1 897
1 897
Other liabilities and provisions
30 035
4 147
34 182
Accrued expenses and prepaid income
3 385
3 385
Subordinated liabilities
34 184
34 184
Total liabilities
2 108 483
4 147
2 112 630
Equity
Non-controlling interests
213
213
Equity attributable to shareholders of the parent company
137 396
137 396
Total equity
137 609
137 609
Total liabilities and equity
2 246 092
4 147
2 250 239
The following table provides the effects of the adoption of IFRS 16 on the balance sheet. For all leases classified as operating leases under IAS 17 and where the Group acts as the 
lessee, a lease liability and a right-of- use asset are recognised in the balance sheet. The Group applies the exemptions afforded by the standard regarding short-term leases and 
leases for which the underlying asset is of low value. These lease agreements are recognised as expenses.

152
NOTES, GROUP
Swedbank Annual and Sustainability Report 2019
G58 Changes in presentation of net interest 
income 
For more information see note G2 Accounting policies.
New reporting 
2018
Interest income on financial assets at amortised cost
32 015
Other interest income
2 043
Interest income
34 058
Interest expense
–8 830
Net interest income
25 228
Previous reporting
2018
Interest income
37 045
Negative yield on financial assets
–2 987
Interest income, including negative yield on financial assets
34 058
Interest expense
–9 600
Negative yield on financial liabilities
770
Interest expense, including negative yield on financial liabilities
–8 830
Net interest income
25 228

153
FINANCIAL STATEMENTS, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Financial statements and notes – 
Parent company
181
Note
P28
Tangible assets
182
Note
P29
Other assets
182
Note
P30
Prepaid expenses and accrued income
182
Note
P31
Amounts owed to credit institutions
182
Note
P32
Deposits and borrowings from the public
182
Note
P33
Debt securities in issue
182
Note
P34
Other liabilities
182
Note
P35
Accrued expenses and prepaid income
182
Note
P36
Provisions
183
Note 
P37
Subordinated liabilities
184
Note
P38
Untaxed reserves
184
Note
P39
Equity
184
Note
P40
Fair value for financial instruments
188
Note
P41
Financial assets and liabilities, which have been offset 
or are subject to netting or similar agreements
Statement of cash flow
188
Note
P42
Specification of adjustments for non-cash items 
in ­operating activities
Other notes
189
Note
P43
Dividend paid and proposed disposition of earnings
189
Note
P44
Assets pledged, contingent liabilities and commitments
190
Note
P45
Transferred financial assets
190
Note
P46
Operational leasing
191
Note
P47
Related parties and other significant relationships
191
Note
P48
Events after 31 December 2019
191
Note
P49
Changed presentation of net interest income
154
Income statement
154
Statement of comprehensive income
155
Balance sheet
156
Statement of changes in equity
157
Statement of cash flow
Initial notes
158
Note
P1
Accounting policies
159
Note
P2
Risks
159
Credit risks
163
Liquidity risks
164
Market risks
164
 Interest risks
165
 Currency risks
166
Note
P3
Capital adequacy analysis
169
Note
P4
Geographical distribution of revenues
Income statement
169
Note
P5
Net interest income
170
Note
P6
Dividends received
170
Note
P7
Net commissions
171
Note
P8
Net gains and losses on financial items
171
Note
P9
Other income
172
Note
P10
Staff costs
173
Note
P11
Other general administrative expenses
173
Note
P12
Depreciation/amortisation and impairments of tangible  
and intangible fixed assets
173
Note
P13
Credit impairments
173
Note
P14
Impairmants of financial fixed assets
173
Note
P15
Appropriations
174
Note
P16
Tax
Balance sheet
175
Note
P17
Treasury bills and other bills eligible for refinancing  
with central banks, etc.
175
Note
P18
Loans to credit institutions
175
Note
P19
Loans to the public
176
Note
P20
Bonds and other interest-bearing securities
176
Note 
P21
Shares and participating interests
177
Note
P22
Investments in associates
178
Note 
P23
Investments in Group entities
179
Note
P24
Derivatives
179
Note 
P25
Hedge accounting at fair value
180
Note 
P26
Intangible fixed assets
181
Note 
P27
Leasing equipment

154
FINANCIAL STATEMENTS, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Statement of comprehensive income,
Parent company
SEKm
Note
2019
2018
Profit for the period reported via income statement
17 996
19 467
Total comprehensive income for the period
17 996
19 467
Income statement, Parent company
SEKm
Note
2019
2018
Interest income on financial assets measured at amortised cost
12 475
10 894
Other interest income
1 480
1 565
Leasing income
4 815
4 773
Interest income
18 770
17 232
Interest expense
–5 692
–4 992
Net interest income1
P5
13 078
12 240
Dividends received
P6
19 823
19 831
Commission income
9 607
10 064
Commission expense
–3 382
–3 607
Net commissions
P7
6 225
6 457
Net gains and losses on financial items
P8
2 202
1 277
Other income
P9
1 679
2 039
Total income
43 007
41 844
Staff costs
P10
8 349
7 787
Other general administrative expenses
P11
6 595
4 889
Depreciation/amortisation and impairment of tangible 
and intangible fixed assets
P12
4 768
4 837
Total expenses
19 712
17 513
Profit before impairment
23 295
24 331
Credit impairment, net
P13
1 514
556
Impairment of financial fixed assets
P14
22
11
Operating profit
21 759
23 764
Appropriations
P15
78
72
Tax expense
P16
3 685
4 225
Profit for the year
17 996
19 467
1) 2018 results have been restated for changed presentation of net interest income. Refer to Note 49 for further information.

155
FINANCIAL STATEMENTS, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Balance sheet, Parent company
SEKm
Note
2019
2018
1/1/2018
Assets
Cash and balances with central banks
107 596
80 903
136 061
Treasury bills and other bills eligible for refinancing with central banks, etc.
P17
132 934
96 006
82 827
Loans to credit institutions
P18
537 151
523 699
450 007
Loans to the public
P19
422 794
428 966
397 854
Bonds and other interest-bearing securities
P20
58 150
56 407
58 847
Shares and participating interests
P21
6 235
4 629
19 569
Investments in associates and joint ventures
P22
2 315
2 085
2 087
Investments in Group entities
P23
63 082
62 135
62 016
Derivatives
P24
48 332
43 275
62 153
Intangible fixed assets
P26
366
351
375
Leasing equipment
P27
16 024
16 170
15 456
Tangible assets
P28
569
576
592
Current tax assets
2 197
1 935
1 361
Deferred tax assets
P16
 
146
141
Other assets
P29
21 418
25 666
24 458
Prepaid expenses and accrued income
P30
2 747
1 589
1 325
Total assets
1 421 910
1 344 538
1 315 128
Liabilities and equity
Liabilities
Amounts owed to credit institutions
P31
161 454
83 218
95 294
Deposits and borrowings from the public
P32
719 211
700 256
671 414
Debt securities in issue
P33
263 181
303 622
323 496
Derivatives
P24
69 908
54 063
65 704
Current tax liabilities
832
1 284
554
Deferred tax liabilities
P16
477
 
 
Other liabilities
P34
55 589
63 992
33 984
Accrued expenses and prepaid income
P35
3 734
1 793
1 510
Provisions
P36
643
427
962
Senior non-preferred liabilitites
10 805
 
 
Subordinated liabilities
P37
31 934
34 184
25 864
Total liabilities
1 317 768
1 242 839
1 218 782
Untaxed reserves
P38
10 724
10 647
10 575
 
 
 
Equity
 
 
 
Share capital
24 904
24 904
24 904
Other funds
19 174
5 968
5 968
Retained earnings
49 340
60 180
54 899
Total equity
P39
93 418
91 052
85 771
Total liabilities and equity
1 421 910
1 344 538
1 315 128
The balance sheet and income statement will be adopted at the Annual General Meeting on 26 March 2020.

156
FINANCIAL STATEMENTS, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Statement of changes in equity,
Parent company
SEKm
Share  
capital
Share premium 
reserve
Statutory  
reserve
Retained 
­earnings
Total
Opening balance 1 January 2019
24 904
13 206
5 968
46 974
91 052
Dividend
 
 
 
–15 878
–15 878
Share based payments to employees
 
 
 
272
272
Deferred tax related to share based payments to employees
 
 
 
–34
–34
Current tax related to share based payments to employees
 
 
 
10
10
Total comprehensive income for the year
 
 
 
17 996
17 996
of which through the Profit and loss account
 
 
 
17 996
17 996
Closing balance 31 December 2019
24 904
13 206
5 968
49 340
93 418
Opening balance 1 January 2018
24 904
13 206
5 968
41 693
85 771
Dividend
 
 
 
–14 517
–14 517
Share based payments to employees
 
 
 
321
321
Deferred tax related to share based payments to employees
 
 
 
–7
–7
Current tax related to share based payments to employees
 
 
 
17
17
Total comprehensive income for the year
 
 
 
19 467
19 467
of which through the Profit and loss account
 
 
 
19 467
19 467
Closing balance 31 December 2018
24 904
13 206
5 968
46 974
91 052

157
FINANCIAL STATEMENTS, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
SEKm
Note
2019
2018
Operating activities
Operating profit
21 759
23 764
Adjustments for non-cash items in operating activities
P42
–4 917
–13 188
Taxes paid
–3 779
–4 073
Increase/decrease in loans to credit institution
–13 441
–73 886
Increase/decrease in loans to the public
5 672
–31 061
Increase/decrease in holdings of securities for trading
–39 792
4 937
Increase/decrease in deposits and borrowings from the public including retail bonds
18 942
27 278
Increase/decrease in amounts owed to credit institutions
78 710
–12 111
Increase/decrease in other assets
6 995
33 977
Increase/decrease in other liabilities
8 353
17 959
Cash flow from operating activities
78 502
–26 404
Investing activities
Acquisition of and contribution to Group entities and associates and joint ventures
–992
 
Disposal of/repayment from Group entities and associates
166
207
Business disposals
360
Acquisition of other fixed assets and strategic financial assets
–8 343
–27 784
Disposals of other fixed assets and strategic financial assets
3 842
23 718
Dividends and Group contributions received
9 611
16 786
Cash flow from investing activities
4 644
12 927
Financing activities
Issuance of interest-bearing securities
17 211
36 906
Redemption of interest-bearing securities
–53 490
–37 610
Issuance of commercial papers
483 569
992 449
Redemption of commercial papers
–487 865
–1 018 909
Dividends paid
–15 878
–14 517
Cash flow from financing activities
–56 453
–41 681
Cash flow for the year
26 693
–55 158
Cash and cash equivalents at the beginning of the year
80 903
136 061
Cash flow for the year
26 693
–55 158
Cash and cash equivalents at end of the year
107 596
80 903
Statement of cash flow, Parent company
Comments on the cash flow statement
The cash flow statement shows receipts and payments during the year as well as cash 
and cash equivalents at the beginning and end of the year. The cash flow statement is 
reported using the indirect method and is divided into payments from operating activi-
ties, investing activities and financing activities. 
Operating activities
Cash flow from operating activities is based on operating profit for the year. Adjust-
ments are made for items not included in cash flow from operating activities. Changes 
in assets and liabilities from operating activities consist of items which are part of 
normal business activities such as loans to and deposits from the public and credit 
institutions, and which are not attributable to investing and financing activities. Cash 
flow includes interest receipts of SEK 18 894 m (17 076) and interest payments of 
SEK 5 676 m (4 823). Capitalised interest is included.
Investing activities
Investing activities consist of purchases and sales of strategic financial assets, contri-
butions to and repayments from subsidiaries or associates and other fixed assets. On 
August 1, 2019, 11 percentage points of the subsidiary Ölands Bank AB was sold, and 
as a result the company is accounted for as an associated company. Swedbank received 
a cash payment of SEK 52m. The capital gain was SEK 27m. On November 4, 2019, the 
associated company BABS Paylink was sold. The cash payment amounted to SEK 113m 
and the gain was SEK 93m. 
On June 11 Swedbank AB aquired 10 percent in Katching AB paying SEK 20m. Contri-
butions were during 2019 provided to Swedbank PayEx Holding AB of SEK 875m, to 
Swedbank Management S.A. of SEK 16m, to Ektornet AB of SEK 7 m, to Nordic KYC 
Utility AB of SEK 24m and to P27 Nordic Payments Platform AB of SEK 57m. During 
2019 the acquiring business in Swedbank AB was transferred to Swedbank PayEx 
Holding Sverige AB of SEK 360m.
On June 29, 2018, the associate UC AB was sold. A cash payment of SEK 206 m 
was received. In connection with the divestment, Swedbank also received shares of 
7.4 per cent of the Finnish credit information company Asiakastieto Group Plc, which 
­corresponded to a value of SEK 502 m. The recognised capital gain was SEK 677 m.
On March 23, 2018, 6 per cent was acquired in Meniga Ltd for SEK 31 m and on 
December 19, 14 per cent was acquired in Asteria for SEK 6m. In addition, on  
December 7, the investment in Minna Technolgies AB (Mina Tjänster AB) was  
increased by SEK 10 m.
Other acquisitions and divestments/maturities of strategic financial assets refer to 
holdings in interest-bearing securities reported in the business model hold to collect.
Cash and cash equivalents
Cash and cash equivalents consist of cash and balances with central banks, which 
­correspond to the balance sheet item Cash and balances with central banks. Cash and 
cash equivalents in the statement of cash flow are defined according to IAS 7 and do 
not correspond to what considers liquidity.

158
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
BASIS OF ACCOUNTING
As a rule, the parent company follows IFRS standards and the accounting principles 
applied in the consolidated financial statements, as reported on pages 59–66. In 
addition, the parent company is required to consider and prepare its annual report 
in accordance with the Annual Accounts Act for Credit Institutions and Securities 
Companies, the regulations and general advice of the Swedish Financial Supervisory 
Authority FFFS 2008:25 and recommendation RFR 2 Reporting for Legal Entities is-
sued by the Swedish Financial Reporting Board. The parent company’s annual report is 
therefore prepared in accordance with IFRS to the extent in which it is compliant with 
the Annual Accounts Act for Credit Institutions and Securities Companies, 
RFR 2 and the Swedish Financial Supervisory Authority regulations. The most 
significant differences in principle between the parent company’s accounting and the 
Group’s accounting policies relate to the recognition of:
• the currency component in currency hedges of investments in foreign subsidiaries 
and associates and joint ventures.
• associates and joint ventures.
• goodwill and internally generated intangible assets
• leasing agreements when the parent company act as a lessee
• finance leases when the parent company act as a lessor
• pensions
• untaxed reserves and Group contributions, and
• operating segments
The headings in the financial statements follow the Annual Accounts Act for Credit In-
stitutions and Securities Companies and the Swedish Financial Supervisory Authority’s 
regulations, thus they differ in certain cases from the headings in the Group’s accounts. 
OTHER CHANGES IN IFRS AND SWEDISH REGULATIONS
Other new or amended IFRS standards or interpretations or Swedish regulations is-
sued and not yet adopted are not expected to have a significant impact on the parent 
company’s financial position, results, cash flows or disclosures.
SIGNIFICANT DIFFERENCES IN THE PARENT COMPANY’S ACCOUNTING  
POLICIES COMPARED WITH THE GROUP’S ACCOUNTING POLICIES
Hedging of net investment in foreign operations 
The currency component of liabilities that constitute currency hedges of net invest-
ments in foreign subsidiaries and associates is valued at cost in the parent company.
Associates and joint ventures
Investments in associates and joint ventures are recognised in the parent company 
at cost less any impairment. All dividends received are recognised in profit or loss in 
Dividends received.
Notes
All amounts in the notes are in millions of Swedish kronor (SEKm) and represent carrying amounts unless indicated otherwise. Figures in parentheses refer to the previous year. 
Subsidiaries
Investments in subsidiaries are recognised according to the acquisition cost method. 
The investments’ value is tested for impairment if there is any indication of diminished 
value. In cases where the value has decreased, it is written down to its value at Group 
level. All dividends received are recognised through profit or loss in Dividends received.
Intangible assets 
The parent company amortises goodwill systematically based on estimated useful life. 
All expenditures, including development, which are attributable to internally generated 
intangible assets are expensed through profit or loss. 
Leasing
Lessee
The Parent Company has according to the option in RFR 2 chosen not to apply IFRS 16, 
which means that accounting for leases in the parent company has not been changed. 
The parent company acts as the lessee for operating leases, which are those leases 
where the lessor bears the economic risks and benefits. Lease payments where the 
parent company acts as lessee are expensed linearly over the lease term.
Lessor
The parent company recognises finance leases as operating leases. This means that 
the assets are recognised as equipment with depreciation within Depreciation/am-
ortisation of tangible and intangible assets in the income statement. Rent income is 
recognised as leasing income within Net interest income in the income statement. 
Pensions
The parent company recognises pension costs for Swedish defined benefit pension 
plans according to the Act on Safeguarding Pension Benefits, which means that they 
are recognised as defined contribution plans. Premiums paid to defined contribution 
plans are expensed when an employee has rendered his/her services.
Untaxed reserves and Group contributions 
Due to the connection between accounting and taxation, the deferred tax liability 
attributable to untaxed reserves is not recognised separately in the parent company. 
The reserves are instead recognised gross in the balance sheet and income state-
ment. Group contributions received are recognised through profit or loss in Dividends 
received.
Operating segments 
The parent company does not provide segment information, which is provided in the 
Group. A geographical distribution of revenue is reported, however.
P1 Accounting policies

159
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Swedbank’s risk management is described in note G3. Specific information on the parent company’s risks is presented in the following tables.
Credit risks
P2 Risks
Loans to credit institutions
2019
2018
Non Credit-Impaired
Stage 1
Stage 2
Total
Stage 1
Stage 2
Total
Gross carrying amount
Opening balance
519 056
101
519 157
446 604
197
446 801
Closing balance
536 542
515
537 057
519 056
101
519 157
Credit impairment provisions
Opening balance
5
1
6
14
13
27
Movements affecting Credit impairments line
New and derecognised financial assets, net
7
6
13
–5
–8
–13
Changes in risk factors (EAD, PD, LGD)
0
0
0
–1
–3
–4
Changes in macroeconomic scenarios
1
1
–3
–1
–4
Stage transfers
2
2
from stage 1 to stage 2
2
2
from stage 2 to stage 1
0
0
0
Total movements affecting Credit impairments line
8
8
16
–9
–12
–21
Closing balance
13
9
22
5
1
6
Carrying amount
Opening balance
519 051
100
519 151
446 590
184
446 774
Closing balance
536 529
506
537 035
519 051
100
519 151

160
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Loans to the public 2019
Non Credit-Impaired
Credit-Impaired
Stage 1
Stage 2
Stage 3, incl purchased  
or originated
Total
Gross carrying amount
Opening balance
345 145
40 607
8 041
393 793
Closing balance
331 781
38 660
10 981
381 422
Credit impairment provisions
Opening balance
389
1 175
3 143
4 707
Movements affecting Credit impairments line
New and derecognised financial assets, net
19
–193
–669
–843
Changes in risk factors (EAD, PD, LGD)
–25
–162
32
–155
Changes in macroeconomic scenarios
15
76
–1
90
Changes due to expert credit judgement (manual adjustments and individual assessments)
0
0
199
199
Stage transfers
–19
–125
1 494
1 350
from stage 1 to stage 2
–41
123
82
from stage 1 to stage 3
–6
161
155
from stage 2 to stage 1
28
–52
–24
from stage 2 to stage 3
–198
1 346
1 148
from stage 3 to stage 2
2
–11
–9
from stage 3 to stage 1
0
–2
–2
Other
–139
–139
Total movements affecting Credit impairments line
–10
–404
916
502
Movements recognised outside Credit impairments line
Interest
139
139
Change in exchange rates
5
31
68
104
Closing balance
384
802
4 266
5 452
Carrying amount
Opening balance
344 756
39 432
4 898
389 086
Closing balance
331 397
37 858
6 715
375 970

161
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Loans to the public 2018
Non Credit-Impaired
Credit-Impaired
Stage 1
Stage 2
Stage 3, incl purchased  
or originated
Total
Gross carrying amount
Opening balance
314 160
56 125
6 237
376 522
Closing balance
345 145
40 607
8 041
393 793
Credit impairment provisions
Opening balance
307
1 594
1 982
3 883
Movements affecting Credit impairments line
New and derecognised financial assets, net
77
–146
70
1
Changes in risk factors (EAD, PD, LGD)
131
52
19
202
Changes in macroeconomic scenarios
–8
–79
2
–85
Changes due to expert credit judgement (manual adjustments and individual assessments)
333
333
Stage transfers
–126
–332
626
168
from stage 1 to stage 2
–111
253
142
from stage 1 to stage 3
–40
45
5
from stage 2 to stage 1
25
–76
–51
from stage 2 to stage 3
–510
595
85
from stage 3 to stage 2
1
–11
–10
from stage 3 to stage 1
0
–3
–3
Other
–1
–92
–93
Total movements affecting Credit impairments line
73
–505
958
526
Movements recognised outside Credit impairments line
Interest
92
92
Change in exchange rates
9
86
111
206
Closing balance
389
1 175
3 143
4 707
Carrying amount
Opening balance
313 853
54 531
4 255
372 639
Closing balance
344 756
39 432
4 898
389 086
Commitments and financial guarantees 2019
Non Credit-Impaired
Credit-Impaired
Stage 1
Stage 2
Stage 3, incl purchased  
or originated
Total
Nominal amount
Opening balance
721 485
8 292
797
730 574
Closing balance
745 962
9 837
1 240
757 039
Credit impairment provisions
Opening balance
92
206
104
402
Movements affecting Credit impairments line
New and derecognosed financial assets, net
19
–8
–7
4
Changes in risk factors (EAD, PD, LGD)
–8
–75
–16
–99
Changes in macroeconomic scenarios
12
20
0
32
Changes due to expert credit judgement (manual adjustments and individual assessments)
134
134
Stage transfers
–7
5
106
104
from stage 1 to stage 2
–9
29
20
from stage 1 to stage 3
0
26
26
from stage 2 to stage 1
2
–10
–8
from stage 2 to stage 3
–14
81
67
from stage 3 to stage 2
0
–1
–1
from stage 3 to stage 1
0
0
0
Other
Total movements affecting Credit impairments line
16
–58
217
175
Movements recognised outside Credit impairments line
Change in exchange rates
2
6
5
13
Closing balance
110
154
326
590

162
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Carrying amount of forborne loans to the public
2019
2018
Performing
1 610
6 375
Non-Performing
6 054
6 370
Total
7 664
12 745
Concentration risk, customer exposure
At end of 2019 the Parent company did not have any exposures against single 
counter­parties that exceeded 10% of the capital base.
Collateral that can be sold or pledged even if the counterparty fulfills  
its contractual obligations 
When it grants repos, the parent company receives securities that can be sold or 
pledged. The fair value of these securities covers the carrying amount of the repos. 
The parent company also receives collateral in the form of securities that can be sold or 
pledged for derivatives and other exposures. The fair value of such collateral as of year-
end amounted to SEK 13m (414). None of this collateral has been sold or pledged.
Commitments and financial guarantees 2018
Non Credit-Impaired
Credit-Impaired
Stage 1
Stage 2
Stage 3, incl. purchased  
or originated
Total
Nominal amount
Opening balance
774 864
11 642
721
787 227
Closing balance
721 485
8 292
797
730 574
Credit impairment provisions
Opening balance
115
258
266
639
Movements affecting Credit impairments line
New and derecognised financial assets, net
5
–78
–1
–74
Changes in risk factors (EAD, PD, LGD)
–10
36
–38
–12
Changes in macroeconomic scenarios
–12
–11
–23
Changes due to expert credit judgement (manual adjustments and individual assessments)
–167
–167
Stage transfers
–11
–16
26
–1
from stage 1 to stage 2
–16
46
30
from stage 1 to stage 3
–1
1
from stage 2 to stage 1
6
–35
–29
from stage 2 to stage 3
–27
27
from stage 3 to stage 2
–1
–1
from stage 3 to stage 1
–1
–1
Total movements affecting Credit impairments line
–28
–69
–180
–277
Movements recognised outside Credit impairments line
Change in exchange rates
5
17
18
40
Closing balance
92
206
104
402

163
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
In the summary of maturities, undiscounted contractual cash flows are distributed on the basis of remaining maturities until the agreed time of maturity. For lending to the public, 
amortising loans are distributed based on the amortisation schedule. Liabilities whose repayment date may depend on various options have been distributed based on the earliest 
date on which repayment could be demanded. Differences between nominal amount and carrying amount, discounted cash flows, are reported together with items without an 
agreed maturity date where the anticipated realisation date has not been determined in the column No maturity and discount effect.
Liquidity risks
Undiscounted contractual cash flows
Remaining maturity 2019
Payable on 
demand
< 3 mths.
3 mths.—1 yr
1—5 yrs
5—10 yrs
> 10 yrs
No maturity & 
discount effect
Total
Assets
Cash and balances with central banks
107 596
 
 
 
 
 
 
107 596
Treasury bills and other bills eligible for refinancing 
with central banks
 
122 135
4 887
2 519
2 375
617
401
132 934
Loans to credit institutions
4 668
21 715
475 357
33 979
390
1 042
 
537 151
Loans to the public
 
77 204
98 784
202 100
36 315
8 391
 
422 794
Bonds and other interest-bearing securities
 
4 996
15 697
36 151
2 705
56
–1 455
58 150
Shares and participating interests
 
 
 
 
 
 
71 632
71 632
Derivatives
 
11 919
12 867
21 294
2 421
569
–738
48 332
Intangible fixed assets
 
 
 
 
 
 
366
366
Tangible assets
 
 
 
 
 
 
16 593
16 593
Other assets
 
9 241
2 197
1
 
 
14 923
26 362
Total
112 264
247 210
609 789
296 044
44 206
10 675
101 722
1 421 910
Liabilities
Amounts owed to credit institutions
119 389
38 922
3 052
91
 
 
 
161 454
Deposits and borrowings from the public
677 193
30 971
10 338
708
1
 
 
719 211
Debt securities in issue
 
86 567
72 205
100 959
4 449
 
–999
263 181
Derivatives
 
14 451
14 268
23 850
3 266
700
13 373
69 908
Other liabilities
 
59 142
1 066
1 067
 
 
10 724
71 999
Senior non-pereferred liabilitites
 
 
265
10 472
 
209
–141
10 805
Subordinated liabilities
 
6 990
 
24 138
427
 
379
31 934
Equity
 
 
 
 
 
 
93 418
93 418
Total
796 582
237 043
101 194
161 285
8 143
909
116 754
1 421 910
The large part of deposits from the public is contractually payable on demand. Despite the contractual terms, the deposits are essentially a stable and a long-term source  
of funding.
Undiscounted contractual cash flows
Remaining maturity 2018
Payable on 
demand
< 3 mths.
3 mths.—1 yr
1—5 yrs
5—10 yrs
> 10 yrs
No maturity & 
discount effect
Total
Assets
Cash and balances with central banks
80 903
 
 
 
 
 
 
80 903
Treasury bills and other bills eligible for refinancing 
with central banks
 
80 732
2 479
7 445
1 588
903
2 859
96 006
Loans to credit institutions
12 357
8 135
487 772
13 718
783
934
 
523 699
Loans to the public
 
63 758
103 805
216 226
35 892
9 285
 
428 966
Bonds and other interest-bearing securities
 
7 150
10 487
33 892
3 728
89
1 061
56 407
Shares and participating interests
 
 
 
 
 
 
68 849
68 849
Derivatives
 
9 862
10 774
20 623
2 340
443
–767
43 275
Intangible fixed assets
 
 
 
 
 
 
351
351
Tangible assets
 
 
 
 
 
 
16 746
16 746
Other assets
 
12 935
2 081
 
 
 
14 320
29 336
Total
93 260
182 572
617 398
291 904
44 331
11 654
103 419
1 344 538
Liabilities
 
 
 
 
 
 
 
 
Amounts owed to credit institutions
59 006
23 726
235
251
 
 
 
83 218
Deposits and borrowings from the public
679 909
13 423
6 045
879
 
 
 
700 256
Debt securities in issue
 
99 754
65 786
133 134
7 441
 
–2 493
303 622
Derivatives
 
8 590
10 320
20 812
2 723
585
11 033
54 063
Other liabilities
 
65 574
1 520
402
 
 
10 647
78 143
Subordinated liabilities
 
7 700
111
25 759
406
 
208
34 184
Equity
 
 
 
 
 
 
91 052
91 052
Total
738 915
218 767
84 017
181 237
10 570
585
110 447
1 344 538
The large part of deposits from the public is contractually payable on demand. Despite the contractual terms, the deposits are essentially a stable and a long-term source  
of funding.

164
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Market risks
Interest rate risks
Change in value if the market interest rate rises by one percentage point
The impact on the net value of assets and liabilities, including derivatives, when market interest rates rise by one percentage point.
2019
< 3 mths.
3—6 mths.
6—12 mths.
1—2 yrs
2—3 yrs
3—4 yrs
4—5 yrs
5—10 yrs
> 10 yrs
Total
SEK
–369
–83
–168
–708
300
1 440
538
–1 690
–250
–990
Foreign currency
511
971
–42
262
–291
129
–875
933
–81
1 517
Total
142
888
–210
–446
9
1 569
–337
–757
–331
527
of which financial instruments measured at fair value through profit or loss
2019
< 3 mths.
3—6 mths.
6—12 mths.
1—2 yrs
2—3 yrs
3—4 yrs
4—5 yrs
5—10 yrs
> 10 yrs
Total
SEK
–395
54
–80
599
–519
–2 183
–1 153
3 361
92
–224
Foreign currency
265
913
–106
260
–283
138
–842
930
–78
1 197
Total
–130
967
–186
859
–802
–2 045
–1 995
4 291
14
973
2018
< 3 mths.
3—6 mths.
6—12 mths.
1—2 yrs
2—3 yrs
3—4 yrs
4—5 yrs
5—10 yrs
> 10 yrs
Total
SEK
–545
288
–352
–177
–119
–76
1 066
–765
–310
–990
Foreign currency
907
860
165
53
–13
–70
4
–78
93
1 921
Total
362
1 148
–187
–124
–132
–146
1 070
–843
–217
931
of which financial instruments measured at fair value through profit or loss
2018
< 3 mths.
3—6 mths.
6—12 mths.
1—2 yrs
2—3 yrs
3—4 yrs
4—5 yrs
5—10 yrs
> 10 yrs
Total
SEK
30
10
–108
–194
58
35
54
–61
–100
–276
Foreign currency
576
841
148
15
–8
–15
30
–59
90
1 618
Total
606
851
40
–179
50
20
84
–120
–10
1 342
Turnover during the year, 2019
Commercial 
papers
Other interest-
bearing bond 
bond loans
Structure 
retail bonds
Total debt 
securities  
in issue
Senior non-
preferred 
liabilitites
Subordinated 
liabilities
Total
Opening balance
131 439
161 448
10 735
303 622
34 184
337 806
Issued / New contracts
483 569
 
1 036
484 605
11 266
4 909
500 780
Repaid
–487 865
–42 231
–3 548
–533 644
 
–7 711
–541 355
Interest, change in market values or in hedged item 
in hedge accounting at fair value
140 
800
679
1 619
–95
39
1 563
Change in exchange rates
1 491
5 488
 
6 979
–366
513
7 126
Closing balance
128 774 
125 505 
8 902 
263 181 
10 805 
31 934 
305 920 
Turnover during the year, 2018
Commercial 
papers
Other interest-
bearing bond 
loans
Structure 
retail bonds
Total debt 
securities in 
issue
Subordinated 
liabilities
Total
Opening balance
149 976
158 684
14 836
323 496
 
25 864
349 360
Issued / New contracts
992 449
26 434
2 166
1 021 049
 
8 306
1 029 355
Repurchased
 
–145
 
–145
 
 
–145
Repaid
–1 018 909
–30 866
–5 040
–1 054 815
 
–1 559
–1 056 374
Interest, change in market values or in hedged item 
in hedge accounting at fair value
 
–521
–1 227
–1 748
 
–18
–1 766
Change in exchange rates
7 923
7 862
 
15 785
 
1 591
17 376
Closing balance
131 439
161 448
10 735
303 622
 
34 184
337 806

165
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Currency risks
Currency distribution
2019
SEK
EUR
USD
GBP
DKK
NOK
Other
Total
Assets
Cash and balances with central banks
31 673
56 770
18 825
 
87
139
102
107 596
Loans to credit institutions
505 119
21 122
3 486
187
1 681
2 718
2 838
537 151
Loans to the public
311 451
41 682
32 093
3 130
4 633
28 140
1 665
422 794
Treasury bills and other bills eligible for refinancing  
with central banks, etc
132 727
1
 
 
 
206
 
132 934
Bonds and other interest-bearing securities
45 181
5 363
1 370
 
430
5 806
 
58 150
Other assets, not distributed
163 285
 
 
 
 
 
 
163 285
Total
1 189 436
124 938
55 774
3 317
6 831
37 009
4 605
1 421 910
Liabilities
 
 
 
 
 
 
 
 
Amounts owed to credit institutions
111 824
18 236
8 885
2 356
2 073
15 787
2 293
161 454
Deposits and borrowings from the public
680 532
27 155
11 276
 
 
 
248
719 211
Debt securities in issue
19 030
87 400
126 209
19 482
 
540
10 520
263 181
Subordinated liabilities
1 222
12 169
16 482
 
 
 
2 061
31 934
Senior non-preferred liabilities
 
7 893
 
 
 
2 912
 
10 805
Other liabilities, not distributed
141 907
 
 
 
 
 
 
141 907
Equity
93 418
 
 
 
 
 
 
93 418
Total
1 047 933
152 853
162 852
21 838
2 073
19 239
15 122
1 421 910
Other assets and liabilities, 
including positions in derivatives
 
–17 331
–107 135
–18 526
4 762
17 968
–10 517
 
Net position in currency
 
10 584
–57
–5
4
198
 
10 724
Currency distribution
2018
SEK
EUR
USD
GBP
DKK
NOK
Other
Total
Assets
Cash and balances with central banks
4 594
49 239
26 163
 
61
795
51
80 903
Loans to credit institutions
497 765
3 212
11 589
332
1 710
5 569
3 522
523 699
Loans to the public
317 678
33 386
34 560
3 747
5 657
32 071
1 867
428 966
Treasury bills and other bills eligible for refinancing  
with central banks, etc
93 623
 
 
 
572
1 811
 
96 006
Bonds and other interest-bearing securities
42 599
6 030
2 389
 
 
5 389
 
56 407
Other assets, not distributed
158 557
 
 
 
 
 
 
158 557
Total
1 114 816
91 867
74 701
4 079
8 000
45 635
5 440
1 344 538
Liabilities
 
 
 
 
 
 
 
 
Amounts owed to credit institutions
42 632
11 815
20 861
1 279
2 005
1 758
2 868
83 218
Deposits and borrowings from the public
671 759
10 109
10 066
688
1 460
4 541
1 633
700 256
Debt securities in issue
21 637
77 546
167 671
25 323
 
524
10 921
303 622
Subordinated liabilities
1 340
19 715
11 169
 
 
 
1 960
34 184
Other liabilities, not distributed
132 206
 
 
 
 
 
 
132 206
Equity
91 052
 
 
 
 
 
 
91 052
Total
960 626
119 185
209 767
27 290
3 465
6 823
17 382
1 344 538
Other assets and liabilities, 
including positions in derivatives
 
–17 244
–135 202
–23 268
4 558
39 049
–11 942
 
Net position in currency
 
10 074
–136
–57
23
238
 
10 143

166
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Swedbank’s legal capital requirement is based on CRR. The parent company calculates an internally estimated capital requirement. As of 31 December 2019 the internal capital 
requirement amounted to SEK 27.3bn. The capital base amounted to SEK 122.5bn.
1) Adjustment due to the implementation of EBA’s technical standards on prudent 
valuation. The objective of these standards is to determine prudent values of fair 
valued positions.
2) To rectify for underestimation of default frequency in the model for large corporate  
 exposures, Swedbank has decided to hold more capital until the updated model has  
 been approved by the Swedish FSA. The amount also includes planned implement- 
 tion of EBA’s Guideline on new default definition and increased safety margins.
3) Buffer requirement according to Swedish implementation of CRD IV.
4) CET1 capital ratio as reported less minimum requirement of 4.5 per cent (excluding 
buffer requirements) and less any CET1 items used to meet the Tier 1 and total 
capital requirements.
5) Taking into account exemption according to CRR article 429.7, excluding certain 
intragroup exposures.
6) Additional risk exposure amount and minimum capital requirement following the 
 changed application of the risk weight floor for Swedish mortgages according to  
 decision from the SFSA.
P3 Capital adequacy analysis
Capital adequacy
2019
2018
Common Equity Tier 1 capital
90 305
81 824
Additional Tier 1 capital
16 153
10 937
Tier 1 capital
106 458
92 761
Tier 2 capital
15 995
22 862
Total own funds
122 453
115 623
Risk exposure amount
325 056
325 180
Common Equity Tier 1 capital ratio, %
27.8
25.2
Tier 1 capital ratio, %
32.8
28.5
Total capital ratio, %
37.7
35.6
Capital adequacy
2019
2018
Shareholders' equity according to the balance sheet
93 418
91 052
Anticipated dividend
–9 856
–15 885
Share of capital of accrual reserve
8 365
8 305
Value changes in own financial liabilities 
–95
–125
Additional value adjustments1
–427
–427
Goodwill
–709
–710
Intangible assets after deferred tax liabilities
–359
–341
Shares deducted from CET1 capital
–32
–45
Common Equity Tier 1 capital
90 305
81 824
Additional Tier 1 capital
16 153
10 937
Total Tier 1 capital
106 458
92 761
Tier 2 capital
15 995
22 862
Total own funds
122 453
115 623
Minimum capital requirement for credit risks,  
standardised approach
6 461
6 415
Minimum capital requirement for credit risks, IRB
12 683
13 048
Minimum capital requirement for credit risks, default  
fund contribution
47
29
Minimum capital requirement for market risks
1 297
1 040
Trading book
1 284
997
of which VaR and SVaR
1 016
722
of which risks outside VaR and SVaR
268
275
FX risk other operations
13
43
Minimum capital requirement for credit value adjustment
372
302
Minimum capital requirement for operational risks
2 945
2 816
Additional minimum capital requirement, Article 3 CRR2
2 159
2 325
Additional minimum capital requirement, Article 458 CRR6
41
39
Minimum capital requirement
26 004
26 014
Risk exposure amount credit risks, standardised approach
80 766
80 197
Risk exposure amount credit risks, IRB
158 540
163 098
Risk exposure amount credit risks, default fund contribution
584
358
Risk exposure amount market risks
16 207
13 000
Risk exposure amount credit value adjustment
4 644
3 781
Risk exposure amount operational risks
36 815
35 201
Additional risk exposure amount, Article 3 CRR2
26 986
29 058
Additional risk exposure amount, Article 458 CRR6
514
487
Risk exposure amount
325 056
325 180
Common Equity Tier 1 capital ratio, %
27.8
25.2
Tier 1 capital ratio, %
32.8
28.5
Total capital ratio, %
37.7
35.6
Capital buffer requirement3, %
2019
2018
CET1 capital requirement including buffer requirements
8.9
8.5
of which minimum CET1 requirement
4.5
4.5
of which capital conservation buffer
2.5
2.5
of which countercyclical capital buffer
1.9
1.5
CET 1 capital available to meet buffer requirement4
23.3
20.7
Leverage ratio
2019
2018
Tier 1 Capital
106 458
92 761
Total exposure5
1 086 489
1 017 859
Leverage ratio, % 
9.8
9.1
Capital requirements1
SEKm
SEKm
Per cent
Per cent
SEKm / Per cent
2019
2018
2019
2018
Capital requirement Pillar 1
40 307
39 022
12.4
12.0
 of which buffer requirements2
14 302
8 130
4.4
4.0
Total capital requirement Pillar 23
5 265
4 293
1.6
1.3
Total capital requirement  
Pillar 1 and 2
45 572
43 315
14.0
13.3
Own funds
122 453
115 623
1) Swedbank’s calculation based on the SFSA’s announced capital requirements, 
­including Pillar 2 requirements.
2) Buffer requirements includes capital conservation buffer and countercyclical ­capital 
buffer.
3) Systemic Risk buffer as of 31 December 2019. The individual Pillar 2 charge items 
as of 31 December 2018, according to SFSA’s SREP. report of 30 September 2019, 
in relation to REA as of December 2019.

167
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
Minimum capital requirements for market risks
2019
2018
Interest rate risk
1 288
990
 of which for specific risk
268
275
 of which for general risk
1 020
716
Equity risk
105
53
 of which for general risk
105
53
Currency risk in trading book
131
202
Total minimum capital requirement for risks 
in ­trading book1
1 284
997
 of which stressed VaR
806
589
Currency risk outside trading book
13
43
Total
1 297
1 040
Minimum capital requirement for operational risks
2019
2018
Standardised approach
2 945
2 816
of which trading and sales
268
168
of which retail banking
1 570
1 596
of which commercial banking
904
846
of which payment and settlement
199
189
of which retail brokerage
1
1
of which agency services
31
30
of which asset management
–52
–42
of which corporate finance
24
28
Total
2 945
2 816
1) The parent company’s capital requirement for general interest-rate risk, equity  
risk and currency risk in the trading-book are calculated in accordance with the 
VaR model.
2019
Credit risks, IRB
Exposure 
amount
Average risk 
weight, %
Minimum 
capital 
­requirement
Central government or central banks 
exposures
266 658
1
282
Institutional exposures
56 956
19
852
Corporate exposures
442 780
28
9 843
Retail exposures
90 955
21
1 524
Non credit obligation
2 695
84
182
Total credit risks, IRB
860 044
18
12 683
2018
Credit risks, IRB
Exposure 
amount
Average risk 
weight, %
Minimum 
capital 
­requirement
Central government or central banks 
exposures
205 617
2
255
Institutional exposures
52 256
20
821
Corporate exposures
433 572
29
10 115
Retail exposures
94 045
21
1 605
Non credit obligation
3 286
96
252
Total credit risks, IRB
788 776
21
13 048

168
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
2019
2018
Exposure amount, risk exposure amount and minimum capital requirement
Exposure 
amount
Risk exposure 
amount
Minimum capital 
requirement
Exposure 
amount
Risk exposure 
amount
Minimum capital 
requirement
Credit risks, STD
1 065 332
80 766
6 461
1 045 728
80 197
6 415
Central government or central banks exposures
6
 
 
19
Regional governments or local authorities exposures
28
6
0
34
7
1
Public sector entities exposures
721
104
8
1 024
Multilateral development banks exposures 
1 970
3
0
2 452
International organisation exposures
 
 
280
Institutional exposures
987 277
820
66
968 031
841
67
Corporate exposures
4 359
4 143
331
4 205
4 020
322
Retail exposures
247
184
15
301
225
18
Exposures secured by mortgages on immovable property
3 598
1 259
101
2 919
1 022
82
Exposures in default
0
0
0
0
0
0
Equity exposures
67 123
74 247
5 940
65 374
72 995
5 838
Other items
3
0
0
1 089
1 087
87
Credit risks, IRB
860 044
158 540
12 683
788 776
163 098
13 048
Central government or central banks exposures
266 658
3 529
282
205 617
3 188
255
Institutional exposures
56 956
10 645
852
52 256
10 259
821
Corporate exposures
442 780
123 035
9 843
433 572
126 438
10 115
Retail exposures
90 955
19 056
1 524
94 045
20 058
1 605
of which mortgage lending
10 556
2 125
170
11 333
2 346
188
of which other lending
80 399
16 931
1 354
82 712
17 712
1 417
Non-credit obligation
2 695
2 275
182
3 286
3 155
252
Credit risks, Default fund contribution
 
584
47
358
29
Settlement risks
0
0
0
177
0 
 0 
Market risks
 
16 207
1 297
13 000
1 040
Trading book
16 048
1 284
12 460
997
of which VaR and SVaR
12 701
1 016
9 023
722
of which risks outside VaR and SVaR
3 347
268
3 437
275
FX risk other operations
159
13
540
43
Credit value adjustment
17 628
4 644
372
15 072
3 781
302
Operational risks
 
36 815
2 945
35 201
2 816
of which standardised approach
 
36 815
2 945
35 201
2 816
Additional risk exposure amount, Article 3 CRR
 
26 986
2 159
29 058
2 325
Additional risk exposure amount, Article 458 CRR
 
514
41
487
39
Total
1 943 004
325 056
26 004
1 849 753
325 180
26 014

169
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
P4 Geographical distribution of revenue
P5 Net interest income
2019
Sweden
Norway
Denmark
Finland
USA
Other
Total
Interest income
9 346
3 021
82
–270
1 629
147
13 955
Leasing income
4 815
 
 
 
 
 
4 815
Dividends received
19 823
 
 
 
 
 
19 823
Commission income
8 579
461
90
384
71
22
9 607
Net gains and losses on financial items
2 374
–98
6
–140
 
60
2 202
Other income
1 402
205
1
31
1
39
1 679
Total
46 339
3 589
179
5
1 701
268
52 081
2018
Sweden
Norway
Denmark
Finland
USA
Other
Total
Interest income
8 275
2 754
79
–574
1 758
167
12 459
Leasing income
4 773
 
 
 
 
 
4 773
Dividends received
19 831
 
 
 
 
 
19 831
Commission income
8 971
535
49
426
54
29
10 064
Net gains or losses on financial items
1 716
–376
5
–142
–1
75
1 277
Other income
1 984
3
 
 
1
51
2 039
Total
45 550
2 916
133
–290
1 812
322
50 443
2019
2018
Interest income
13 955
12 459
Leasing income
4 815
4 773
Interest expense
5 692
4 992
Net interest income before depreciation for financial leases
13 078
12 240
Depreciation according to plan for finance leases
4 468
4 490
Net interest income after depreciation for financial leases
8 610
7 750
2019
2018
Average 
­balance
Interest 
­income/ 
expense
Average 
­annual interest 
rate, %
Average 
­balance
Interest 
­income/ 
expense
Average 
­annual interest 
rate, %
Loans to credit institutions
514 023
1 479
0.29
458 565
–42
–0.01
Loans to the public
447 733
10 125
2.26
396 434
10 723
2.70
Treasury bills and other bills eligible for refinancing with central banks, etc.
140 792
62
0.04
120 888
–45
–0.04
Bonds and other interest-bearing securities
30 747
52
0.17
43 442
23
0.05
Total interest-bearing assets
1 133 295
11 718
1.03
1 019 329
10 659
1.07
Derivatives
54 503
1 269
71 218
1 603
Other assets
293 469
5 783
383 747
4 970
Total assets
1 481 267
18 770
1.27
1 474 294
17 232
1.19
Amounts owed to credit institutions
144 830
1 113
0.77
155 270
1 050
0.68
Deposits and borrowings from the public
762 218
1 424
0.19
694 024
1 002
0.14
of which deposit guarantee fees
289
265
Debt securities in issue
335 593
6 371
1.90
378 383
7 141
1.89
Senior non-preferred liabilitites
2 061
15
0.73
 
 
Subordinated liabilities
30 627
993
3.24
27 484
1 016
3.70
Total interest-bearing liabilities
1 275 329
9 916
0.78
1 255 161
10 209
0.81
Derivatives
67 647
–4 796
75 600
–5 999
Other liabilities
50 580
572
45 184
782
of which resolution fee
 
502
 
741
Total liabilities
1 393 556
5 692
0.41
1 375 945
4 992
0.36
Equity
87 711
 
77 069
 
Total liabilities and equity
1 481 267
5 692
0.38
1 453 014
4 992
0.34
Net interest income
 
13 078
 
12 240
 
 
 
 
Investment margin
 
0.88
 
 
0.85
Interest income on Stage 3 loans
 
251
 
201
Interest expense on financial liabilities at amortised cost
 
10 599
 
11 144
Negative yield on financial assets
1 727
2 991
Negative yield on financial liabilities
571
735
The geographical distribution has been allocated to the country where the business was carried out.

170
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
P6 Dividends received
P7 Net commissions
2019
2018
Shares and participating interests
141
867
Investments in associates
529
354
Investments in Group entities1
19 153
18 610
Total
19 823
19 831
1) of which, through Group contributions
14 914
14 314
2019
Commission income
Total commission 
income
Commission  
expense
Net  
commissions
Over time
Point in time
Payment processing
443
917
1 360
-970
390
Cards
 
3 572
3 572
-1 750
1 822
Service concepts
660
 
660
-14
646
Asset management and custody
1 709
 
1 709
-97
1 612
Life insurance
448
2
450
-2
448
Securities
3
397
400
-261
139
Corporate finance
123
 
123
 
123
Lending
552
173
725
-63
662
Guarantee
169
 
169
-3
166
Deposits
16
14
30
 
30
Non-life insurance
62
 
62
 
62
Other commission income
278
69
347
-222
125
Total
4 463
5 144
9 607
-3 382
6 225
2018
Commission income
Total commission 
income
Commission  
expense
Net  
commissions
Over time
Point in time
Payment processing
520
1 198
1 718
-958
760
Cards
20
3 709
3 729
-2 081
1 648
Service concepts
606
606
-12
594
Asset management and custody
1 623
 
1 623
-95
1 528
Life insurance
438
2
440
 
440
Securities
2
417
419
-253
166
Corporate finance
113
 
113
 
113
Lending
619
137
756
-61
695
Guarantee
163
 
163
 
163
Deposits
16
15
31
 
31
Non-life insurance
54
 
54
 
54
Other commission income
379
33
412
-147
265
Total
4 553
5 511
10 064
-3 607
6 457

171
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
P9 Other income
P8 Net gains and losses on financial  
items
2019
2018
Fair value through profit or loss
Trading and derivatives
Shares and share related derivatives
176
785
Interest-bearing instruments and interest  
related ­derivatives
1 052
306
Total
1 228
1 091
Other
Shares
656
–37
Interest-bearing instruments
–158
–174
Total
498
–211
Hedge accounting at fair value
 
 
Ineffective part in hedge accounting at fair value
 
 
Hedging instruments
1 174
–81
Hedged item
–1 160
61
Total
14
–20
Derecognition gain or loss for financial liabilities 
at ­amortised cost
 
1
Derecognition gain or loss for financial assets 
at ­amortised cost
4
3
Change in exchange rates
458
413
Total
2 202
1 277
2019
2018
IT services
577
668
Business disposals
233
 
Other operating income
869
1 371
Total
1 679
2 039

172
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
P10 Staff costs
Total staff costs
2019
2018
Salaries and remuneration
5 060
4 610
Compensation through shares in Swedbank AB
176
223
Social insurance charges
1 578
1 553
Pension costs
1 156
1 045
Training costs
99
93
Other staff costs
280
263
Total
8 349
7 787
of which variable staff costs
294
383
Variable Compensation Programme 2014-2019
2019
2018
Programme 2014
Recognised expense for compensation that  
is settled with shares in Swedbank AB
 
14
Recognised expense for social charges related  
to the share settled compensation
 
6
Programme 2015
Recognised expense for compensation that  
is settled with shares in Swedbank AB
6
34
Recognised expense for social charges related  
to the share settled compensation
2
17
Programme 2016
Recognised expense for compensation that  
is settled with shares in Swedbank AB
35
41
Recognised expense for social charges related  
to the share settled compensation
-1
14
Programme 2017
 
Recognised expense for compensation that  
is settled with shares in Swedbank AB
30
34
Recognised expense for social charges related  
to the share settled compensation
1
12
Recognised expense for cash settled compensation
4
1
Recognised expense for payroll overhead costs related  
to the cash settled compensation
2
1
Programme 2018
 
Recognised expense for compensation that  
is settled with shares in Swedbank AB
39
100
Recognised expense for social charges related  
to the share settled compensation
3
28
Recognised expense for cash settled compensation
23
56
Recognised expense for payroll overhead costs related  
to the cash settled compensation
13
25
Programme 2019
 
Recognised expense for compensation that  
is settled with shares in Swedbank AB
66
Recognised expense for social charges related  
to the share settled compensation
18
Recognised expense for cash settled compensation
36
Recognised expense for payroll overhead costs related  
to the cash settled compensation
17
Total recognised expense
294
383
Number of performance rights that establish the recognised 
share based expense, millions
2019
2018
Outstanding at the beginning of the period
3.4
3.8
Allotted
1.2
1.4
Forfeited
0.2
0.1
Exercised
0.7
1.7
Outstanding at the end of the period
3.7
3.4
Weighted average fair value per performance  
right at ­measurement date, SEK
179
195
Weighted average remaining contractual life, months
16
18
2019
Board of directors, President and 
­equivalent senior executives
Other 
­employees
Countries
Number of 
persons
Salaries and 
other re-
munerations Variable pay
Salaries and 
variable pay
Total
Sweden
37
87
5
4 525
4 617
Denmark
 
 
 
23
23
Norway
 
 
 
206
206
USA
 
 
 
32
32
Finland
 
 
 
46
46
Luxembourg
 
 
 
49
49
China
 
 
 
14
14
Estonia
 
 
 
67
67
Latvia
 
 
 
38
38
Lithuania
 
 
 
144
144
Total
37
87
5
5 144
5 236
2018
Board of directors, President and 
­equivalent senior executives
Other 
­employees
Countries
Number of 
persons
Salaries and 
other remu-
nerations Variable pay
Salaries and 
variable pay
Total
Sweden
29
101
10
4 181
4 292
Denmark
 
 
 
24
24
Norway
 
 
 
230
230
USA
 
 
 
32
32
Finland
 
 
 
42
42
Luxembourg
 
 
 
21
21
China
 
 
 
14
14
Estonia
 
 
 
57
57
Latvia
 
 
 
31
31
Lithuania
 
 
 
90
90
Total
29
101
10
4 722
4 833
Board members, President and equivalent senior executives
2019
2018
Costs during the year for pensions and similar benefits
24
30
No. of persons 
15
17
Granted loans, SEKm
60
87
No. of persons 
15
18
2019
2018
Distribution by gender %
Female
Male
Female
Male
All employees
63
37
57
43
Directors
44
56
50
50
Other senior executives, incl. 
President
33
67
42
58

173
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
P11 Other general administrative expenses
P12 Depreciation/amortisation and  
impairments of tangible and intangible 
fixed assets
P13 Credit impairments
2019
2018
Rents, etc.
941
902
IT expenses
2 296
2 000
Telecommunications, postage
90
107
Consulting 
1 576
381
Other outside services
532
653
Travel
149
146
Entertainment
29
31
Office supplies
57
78
Advertising, public relations, marketing
202
194
Security transports, alarm systems
44
39
Maintenance
71
76
Other administrative expenses1
420
209
Other operating expenses
188
73
Total
6 595
4 889
Remuneration to Auditors elected by  
Annual General ­Meeting, PwC
2019
2018
Statutory audit
35
 
Other audit
9
 
Other
 
 
Total
44
 
Remuneration to Auditors elected by  
Annual General ­Meeting, Deloitte
2019
2018
Statutory audit
7
23
Other audit
1
2
Other
 
0
Total
8
25
Internal Audit
71
67
2019
2018
Depreciation/amortisation 
Equipment
231
232
Intangible fixed assets
76
92
Lease objeccts
4 468
4 490
Total
4 775
4 814
Impairment
Lease objects
–7
23
Total
–7
23
Total
4 768
4 837
Credit impairment
2019
2018
Loan at amortised Cost
Impairment provisions – Stage 1
–2
64
Impairment provisions – Stage 2
–396
–516
Impairment provisions – Stage 3
917
958
Total
519
506
Write-offs
871
473
Recoveries
–51
–187
Total
820
286
Total - Loan at amortised Cost
1 339
792
 
 
Commitments and financial guarantees
 
 
Impairment provisions – Stage 1
16
–28
Impairment provisions – Stage 2
–59
–68
Impairment provisions – Stage 3
217
–181
Total
174
–277
Write-offs
1
41
Total – Commitments and financial guarantees
175
–236
Total Credit impairment
1 514
556
Credit impairment by borrower category
Credit institutions
16
–21
General public
1 498
577
Total
1 514
556
P14 Impairments of financial fixed assets
P15 Appropriations
Untaxed reserves
2019
2018
Tax allocation reserve, allocation 2019
51
0
Tax allocation reserve, reversal 2013
–51
0
Tax allocation reserve, allocation 2018
0
3 538
Tax allocation reserve, reversal 2012
0
–3 538
Accelerated depreciation, equipment
78
72
Total
78
72
2019
2018
Investments in Group entities and  
associated companies
Ektornet AB, Stockholm
 
2
Rosengård Invest, Malmö
 
2
Swedbank Management Company S.A., Luxemburg
22
7
Total
22
11
1) Other administrative expenses 2019 includes a reservation of SEK 248m for 
non-deductible VAT.

174
NOTES, PARENT COMPANY
Swedbank Annual and Sustainability Report 2019
P16 Tax
Tax expense
2019
2018
Tax related to previous years
–701
61
Current tax
3 790
4 160
Deferred tax
596
4
Total
3 685
4 225
2019
2018
SEKm
per cent
SEKm
per cent
Results
3 685
17.0
4 225
17.8
Current tax of pre-tax profit
4 640
21.4
5 212
22.0
Difference
955
4.4
987
4.2
The difference consists of the following items
Tax previous years
701
3.2
–61
–0.2
Tax -exempt income/non-deductible expenses
–820
–3.8
–208
–0.9
Non-taxable dividends
1 026
4.7
1 177
4.9
Tax-exempt capital gains and appreciation in value of shares and participating interests
73
0.3
146
0.6
Standard income tax allocation reserve
–6
 
–4
 
Non-deductible impairment of financial fixed assets
–5
 
–3
 
Deviating tax rates in other countries
–14
 
–53
–0.2
Revaluation of deferred taxes due to changed tax rate in Sweden
 
–7
 
Total
955
4.4
987
4.2
2019
Deferred tax debt
Opening balance
Income statement
Equity
Exchange rate  
differences
Closing balance
Deductible temporary differences
Hedge of net investment
605
605
Provisions for pensions
–117
1
 
 
–116
Share related compensation
–15
 
33
 
18
Intangible assets
9
–2
 
 
7
Other
–23
–8
 
–6
–37
Total
–146
596
33
–6
477
2018
Deferred tax assets
Opening balance
Income statement
Equity
Exchange rate  
differences
Closing balance
Deductible temporary differences
Provisions for pensions
124
–7
 
 
117
Share related compensation
23
 
–8
 
15
Intangible assets
–11
2
 
 
–9
Other
5
1
 
17
23
Total
141
–4
–8
17
146

175
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
P17 Treasury bills and other bills eligible for refinancing with central banks etc.
P18 Loans to credit institutions
P19 Loans to the public
Carrying amount
Amortised cost
Nominal amount
2019
2018
1/1/2018
2019
2018
1/1/2018
2019
2018
1/1/2018
Valuation category, fair value through profit 
or loss
Trading
Swedish government
8 541
8 941
8 441
9 430
9 236
8 499
6 981
7 276
6 719
Swedish municipalities
13
512
128
13
513
128
13
501
125
Foreign governments
60
1 796
56
59
1 804
56
58
1 791
55
Other non-Swedish issuers
145
1
554
145
1
554
143
1
550
Total
8 759
11 250
9 178
9 647
11 554
9 236
7 195
9 569
7 448
Other
Swedish government
2 199
2 199
2 191
Swedish municipalities
3 924
4 294
4 332
3 881
4 294
4 296
3 871
4 277
4 267
Foreign governments
 
571
2 115
 
573
2 112
 
548
2 100
Total
3 924
4 865
8 646
3 881
4 867
8 606
3 871
4 825
8 559
Valuation category, amortised cost
Swedish central bank
120 251
79 891
65 003
120 251
80 129
65 003
120 244
80 000
65 000
Total
120 251
79 891
65 003
120 251
80 129
65 003
120 244
80 000
65 000
Total
132 934
96 006
82 827
133 779
96 550
82 845
131 310
94 394
81 007
2019
2018
1/1/2018
Valuation category, amortised cost
Swedish banks
3 832
3 319
4 348
Swedish credit institutions
510 098
499 107
429 216
Foreign banks
21 475
13 530
10 780
Foreign credit institutions
1 629
3 195
2 431
Total
537 034
519 151
446 774
Valuation category, fair value through  
profit or loss
Trading
Swedish banks, repurchase agreements
9
 
 
Swedish credit institutions, repurchase 
­agreements
107
4 548
3 187
Foreign banks, repurchase agreements
1
 
46
Total
117
4 548
3 233
Total
537 151
523 699
450 007
 
Subordinated loans
2019
2018
1/1/2018
Associates
120
620
620
Other companies
53
51
50
Total
173
671
670
2019
2018
1/1/2018
Valuation category, amortised cost
Swedish public
295 717
298 343
291 285
Swedish national debt office
4
10 153
8 500
Foreign public
80 252
80 590
72 931
Total
375 973
389 086
372 716
Valuation category, fair value through  
profit or loss
Trading
Swedish public, repurchase agreements
2 439
5 519
7 807
Swedish national debt office, repurchase 
­agreements
9 725
2 436
2 862
Foreign public, repurchase agreements
34 503
31 759
14 347
Other
Swedish public
154
166
122
Total
46 821
39 880
25 138
Total
422 794
428 966
397 854

176
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
P20 Bonds and other interest-bearing securities
P21 Shares and participating interests
Issued by other than public agencies
Carrying amount
Amortised cost
Nominal amount
2019
2018
1/1/2018
2019
2018
1/1/2018
2019
2018
1/1/2018
Valuation category, fair value 
through profit or loss
Trading
Swedish mortgage institutions
10 174
15 603
6 011
10 225
15 573
6 006
9 858
14 992
5 682
Swedish financial entities
9 219
5 276
3 189
9 235
6 781
3 151
9 543
5 141
3 144
Swedish non-financial entities
3 876
3 913
2 683
3 873
5 808
2 688
3 332
5 713
2 586
Foreign financial entities
7 098
4 990
3 472
7 107
3 487
3 461
6 994
4 915
3 405
Foreign non-financial entities
4 910
5 119
2 695
4 912
3 255
2 696
4 886
3 215
2 669
Total
35 277
34 901
18 049
35 352
34 904
18 003
34 613
33 976
17 485
Other
Swedish mortgage institutions
18 852
15 646
26 293
18 930
15 685
26 281
18 300
15 040
25 590
Swedish financial entities
2
257
5 370
2
257
5 322
2
250
5 200
Foreign banks
1 118
 
 
1 119
 
 
1 118
 
 
Foreign financial entities
1 910
1 525
3 203
1 909
1 525
3 180
1 881
1 505
3 160
Foreign non-financial entities
990
1 904
2 655
990
1 904
2 629
958
1 838
2 605
Total
22 872
19 332
37 521
22 950
19 371
37 412
22 259
18 634
36 555
Valuation category, amortised cost
Foreign banks
1
2 174
3 277
1
2 174
3 277
1
2 152
3 277
Total
1
2 174
3 277
1
2 174
3 277
1
2 152
3 277
Total
58 150
56 407
58 847
58 303
56 449
58 692
56 873
54 761
57 318
Carrying amount
Cost
Carrying amount
Cost
Carrying amount
Cost
2019
2019
2018
2018
1/1/2018
1/1/2018
Valuation category, fair value through profit or loss
Trading
Trading shares
591
586
1 207
1 459
18 186
17 584
Trading fund units
3 316
3 257
1 808
1 832
1 018
999
Other
Strategic shares and other
2 317
1 639
1 603
1 635
363
338
Condominiums
11
11
11
11
2
2
Total
6 235
5 493
4 629
4 937
19 569
18 923

177
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
The share of the voting rights in each entity corresponds to the share of its equity. All shares and participating interests are unlisted.
On August 1, 2019, 11 percentage points of the subsidiary Ölands Bank AB was sold. Swedbank AB:s ownership subsequently amounts to 49 per cent, and as a result the com-
pany is accounted for as an associated company according to the equity method from the date of disposal. Swedbank received a cash payment of SEK 52m. On November 4, 2019, 
the associated company Babs Paylink AB was sold. Swedbank received a cash payment of SEK 113m. The capital gain was SEK 93m.
On June 29, 2018, the associate UC AB was sold. A cash payment of SEK 206m was received. In connection with the divestment, Swedbank also received shares of 7.4 per cent 
of the Finnish credit information company Asiakastieto Group Plc, which corresponded to a value of SEK 502m. Also, in connection with the divestment shares in USE Intressenter 
AB were acquired for SEK 0m.
P22 Investments in associates and joint ventures
Fixed assets
2019
2018
1/1/2018
Credit institutions
2 054
1 944
1 944
Other associates
261
141
143
Total
2 315
2 085
2 087
Opening balance
2 085
2 087
1 999
Additions during the year
251
0
88
Impairments during the year
 
–2
 
Sold during the year
–21
0
 
Closing balance
2 315
2 085
2 087
Corporate identity, domicile
Corporate identity 
number
Number
Carrying  
amount
Cost
Share of  
capital, %
Credit institutions
EnterCard Group AB, Stockholm, joint venture
556673-0585
3 000
420
420
50.00
Sparbanken Rekarne AB, Eskilstuna
516401-9928
865 000
125
125
50.00
Sparbanken Skåne AB, Lund
516401-0091
3 670 342
1 070
1 070
22.00
Sparbanken Sjuhärad AB, Borås 
516401-9852
4 750 000
288
288
47.50
Vimmerby Sparbank AB, Vimmerby
516401-0174
340 000
41
41
40.00
Ölands Bank AB, Borgholm
516401-0034
637 000
110
110
49.00
Total
 
2 054
2 054
Other
BGC Holding AB, Stockholm
556607-0933
29 177
98
98
29.18
Finansiell ID-Teknik BID AB, Stockholm
556630-4928
12 735
4
24
28.30
Getswish AB, Stockholm
556913-7382
10 000
19
21
20.00
Nordic KYC Utility AB, Stockholm, joint venture
559210-0779
10 000
24
24
16.67
P27 Nordic Payments Platform AB, Stockholm, joint venture
559198-9610
10 000
116
116
16.67
USE Intressenter AB, Uppsala
559161-9464
2 000
0
0
20.00
VISA Sweden, ek för, Stockholm
769619-6828
 
 
 
42.09
Total
261
284
Total
2 315
2 337

178
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
P23 Investments in Group entities
The share of the voting rights in each entity corresponds to the share of its equity. All entities are unlisted. 
In 2019, 11 percentage points of the subsidiary Ölands Bank AB was sold. As a result the company is accounted for as an associated company. Capital contribution 
was to ­Ektortnet AB of SEK 7 m, Swedbank PayEx Holding AB SEK 987 mkr, Sparfrämjandet SEK 0 m and to Swedbank Management Company S.A SEK 16 m.
In 2018 Swedbank Mobile Solutuions was sold for SEK 0 m and Goldcup 17968 AB was aquired for SEK 0 m. Capital contribution was paid to Ektornet AB  
of SEK 7 m and to Swedbank PayEx Holding AB of SEK 21 m.
Fixed assets
2019
2018
1/1/2018
Swedish credit institutions
24 073
24 208
24 208
Foreign credit institutions
29 353
29 276
29 196
Other entities
9 656
8 651
8 612
Total
63 082
62 135
62 016
Opening balance
62 135
62 016
56 614
Additions during the year
1 105
128
5 415
Impairments during the year
–22
–9
–13
Disposals during the year
–136
0 
 
Closing balance
63 082
62 135
62 016
Corporate identity, domicile
Corporate  
identity number
Number
Carrying  
amount
Cost
Share of  
capital, %
Swedish credit institutions
Swedbank Hypotek AB, Stockholm
556003-3283
23 000 000
24 073
24 073
100
Total
24 073
24 073
Foreign credit institutions
Swedbank AS, Tallinn
10 060 701
85 000 000
18 440
18 440
100
Swedbank AS, Riga
40003074764
575 000 000
4 250
4 250
100
Swedbank AB, Vilnius
112029651
164 008 000
6 596
6 596
100
Swedbank First Securities LLC, New York
20-416-7414
100
48
89
100
Swedbank (Luxembourg) S.A., Luxembourg
302018-5066
300 000
15
143
100
Swedbank Management Company S.A., Luxembourg
B149317
250 000
4
42
100
Total
29 353
29 560
Other entities
ATM Holding AB, Stockholm
556886-6692
350
40
47
70
Ektornet AB, Stockholm
556788-7152
5 000 000
164
1 977
100
FR & R Invest AB, Stockholm
556815-9718
10 000 000
34
61
100
Sparfrämjandet AB, Stockholm
556041-9995
45 000
5
5
100
Sparia Group Försäkring AB, Stockholm
516406-0963
70 000
146
146
100
Swedbank Fastighetsförmedling AB, Stockholm
556090-2115
1 000
282
282
100
Swedbank Försäkring AB, Stockholm
516401-8292
150 000
3 358
3 358
100
Swedbank PayEx Holding AB, Visby
556714-2798
500 000
2 281
2 281
100
Swedbank Robur AB, Stockholm
556110-3895
10 000 000
3 319
3 319
100
Other entitites
51 105
27
107
Total
9 656
11 583
Total
63 082
65 216

179
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
P24 Derivatives
P25 Hedge accounting at fair value
Nominal amount/ 
remaining contractual maturity
Nominal amount
Positive fair value
Negative fair value
Note
< 1 yr.
1–5 yrs.
> 5 yrs.
2019
2018
2019
2018
2019
2018
Derivatives in hedge accounting
Fair value hedges, interest rate swaps
P25
18 888
86 448
35 496
140 832
151 313
1 466
1 043
218
714
Non–hedging derivatives
8 472 827
7 013 612
2 532 137
18 018 576
14 626 037
119 180
72 497
143 922
86 259
Gross amount
8 491 715
7 100 060
2 567 633
18 159 408
14 777 350
120 646
73 540
144 140
86 973
Offset amount
P41
–5 344 977
–4 868 607
–1 843 876
–12 057 460
–6 880 364
–72 314
–30 265
–74 232
–32 910
Total
3 146 738
2 231 453
723 757
6 101 948
7 896 986
48 332
43 275
69 908
54 063
Non–hedging derivatives
Interest–rate–related contracts
Options held
369 384
448 633
161 281
979 298
1 352 664
3 378
1 942
2 645
1 823
Forward contracts
4 786 257
1 273 670
 
6 059 927
6 360 860
959
645
965
579
Swaps
2 129 416
4 814 725
2 202 569
9 146 710
5 246 168
72 419
37 733
76 425
40 823
Currency–related contracts
Options held
37 674
645
 
38 319
51 470
231
258
222
242
Forward contracts
852 959
21 571
137
874 667
837 771
7 830
5 924
12 122
5 850
Swaps
205 873
445 127
166 941
817 941
681 142
8 929
8 239
27 351
19 938
Equity–related contracts
Options held
83 195
8 719
1 209
93 123
82 927
25 385
17 287
24 079
16 630
Forward contracts
4 498
 
 
4 498
10 719
30
447
29
236
Swaps
3 571
 
 
3 571
2 316
19
22
71
138
Credit–related contracts
Swaps
 
522
 
522
 
 
 
13
 
Total 
8 472 827
7 013 612
2 532 137
18 018 576
14 626 037
119 180
72 497
143 922
86 259
Carrying amount
Hedging instruments and hedge ineffectiveness
Nominal amount
Assets
Liabilities
Change in fair value used 
 for measuring 
 hedge ineffectiveness (for 
the period)
Ineffectiveness recog-
nised in Profit or loss
Interest rate risk 2019
Interest rate swap, Debt securities in issue
98 860
1 159
53
1 053
13
Interest rate swao, Senior non-preferred liabilitites
10 416
118
–114
Interest rate swap, Subordinated liabilities
31 555
307
47
235
1
Total
140 832
1 466
218
1 174
14
Carrying amount
Accumulated adjustment on the hedged item
Hedged items 2019
Assets
Liabilities
Assets
Liabilities
Change in value used 
 for measuring 
 hedge ineffectiveness 
(for the period)
Debt securities in issue
99 237
850
–1 039
Senior non-preferred liabilities
10 388
–114
114
Subordinated liabilities
31 759
175
–234
Total
141 384
911
–1 160

180
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
Carrying amount
Hedging instruments and hedge ineffectiveness
Nominal amount
Assets
Liabilities
Change in fair value used 
 for measuring hedge 
­ineffectiveness (for the period)
Ineffectiveness recog-
nised in Profit or loss
Interest rate risk 2018
Interest rate swaps, Debt securities in issue
117 337
756
578
–16
–15
Interest rate swaps, Subordinated liabilities
33 976
287
136
–65
–5
Total
151 313
1 043
714
–81
–20
Goodwill is amortised over an estimated useful life of 5 to 20 years. For other intangible assets with a finite useful life, the amortisable amount is divided systematically over  
the useful life. Systematic amortisation refers to both straight-line and increasing or decreasing amortisation. The original useful life is between 3 and 15 years. No need for 
impairment was found on the closing day.
P26 Intangible fixed assets
2019
2018
Goodwill
Customer 
base
Other
Total
Goodwill
Customer 
base
Other
Total
Cost, opening balance
3 429
130
1 271
4 830
3 439
130
1 198
4 767
Additions through separate acquisitions
 
 
93
93
 
 
73
73
Sales and disposals
 
 
–267
–267
–10
 
–10
Cost, closing balance
3 429
130
1 097
4 656
3 429
130
1 271
4 830
Amortisation, opening balance
–3 428
–73
–698
–4 199
–3 424
–73
–615
–4 112
Amortisation for the year
–1
 
–75
–76
–14
–78
–92
Sales and disposals
 
 
265
265
10
 
–5
5
Amortisation, closing balance
–3 429
–73
–508
–4 010
–3 428
–73
–698
–4 199
Impairments, opening and closing balance
 
–57
–223
–280
 
–57
–223
–280
Carrying amount
366
366
1
350
351
Carrying amount
Accumulated adjustment on the hedged item
Hedged items 2018
Assets
Liabilities
Assets
Liabilities
Change in value used 
 for measuring 
 hedge ineffectiveness 
(for the period)
Debt securities in issue
118 202
189
1
Subordinated liabilities
34 244
59
60
Total
152 446
248
61
2019
2018
Remaining contractual maturity
Remaining contractual maturity
Maturity profile and average price,  
hedging instruments
<1 yr
1–5 yrs.
>5 yrs.
<1 yr
1–5 yrs.
>5 yrs.
Fair value hedges
Nominal amount (m SEK)
18 888
86 448
35 496
29 258
115 139
6 916
Average fixed interest rate (%)
1.58
0.67
0.96
1.98
0.83
1.00
Hedge relationships in scope for Interest rate benchmark reform
Nominal amount 2019
Hedged items and hedging instruments
AUD
CHF
GBP
HKD 
JPY
USD
Total
1 542
959
11 015
2 062
5 463
46 785
Maturity before Interest rate  
benchmark reform
196
0
6 119
359
0
28 145
Directly attributal to Interest rate  
benchmark reform
1 738
959
17 134
2 421
5 463
74 930
Hedged reference rates in scope for 
­interest rate benchmark reform:
Libor
Libor
Libor
Hibor
Libor
Libor
Estimated end of use
2022
2022
2022
2022
2022
2022
See further information in Note G3.7
Hedge relationships in scope for Interest Rate Benchmark Reform
On 31 December 2019, the parent company adopted the Amendments to IFRS 9, IAS 39 and IFRS 7 due to the Interest Rate Benchmark Reform. The Amendments had the effect 
that the Reform will not generally cause in scope hedge accounting relationships to be terminated. The tables below provide details of the Group’s relationships which are consid-
ered to be in scope.

181
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
The useful life of equipment is deemed to be between three and ten years; its residual value is zero as in previous years. The depreciable amount is recognised linearly in profit or 
loss over the useful life. No indications of impairment were found on the closing day. Individual structural components of owner-occupied properties are depreciated over their 
useful life. The residual value is deemed to be zero. The depreciable amount is recognised linearly in profit or loss over the useful life. Land has an indefinite useful life and is not 
depreciated.
P28 Tangible assets
P27 Leasing equipment
Fixed assets
2019
2018
Cost, opening balance
26 249
24 730
Additions
8 116
8 193
Sales and disposals
–7 998
–6 674
Cost, closing balance
26 367
26 249
Depreciation, opening balance
–10 023
–9 233
Depreciation for the year
–4 468
–4 490
Sales and disposals
4 193
3 700
Depreciation, closing balance
 
 
–10 298
–10 023
Impairments, opening balance
–56
–41
Impairments for the year
7
–23
Sales and disposals
4
8
Impairments, closing balance
–45
–56
Carrying amount
 
 
16 024
16 170
2019
< 1 yr
1–5 yrs
> 5 yrs
Total
Future minimum lease payment
4 806
8 573
3 540
16 919
Fixed assets
2019
2018
Cost, opening balance
2 442
2 311
Additions
227
233
Sales and disposals
–372
–102
Cost, closing balance
2 297
2 442
Depreciation, opening balance
–1 866
–1 719
Depreciation for the year
–231
–232
Sales and disposals
369
85
Depreciation, closing balance
–1 728
–1 866
Carrying amount
569
576
The residual value of all lease assets is guaranteed by lessees or third parties. The lease assets are depreciated over the lease term according to the annuity method. The lease 
assets primarily consist of vehicles and machinery. The lease payments do not contain any variable fee.

182
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
P29 Other assets
P30 Prepaid expenses and accrued income
P31 Amounts owed to credit institutions
P33 Debt securities in issue
P32 Deposits and borrowings from the public
P34 Other liabilities
P35 Accrued expenses and prepaid income
P36 Provisions
2019
2018
1/1/2018
Security settlement claims
6 392
8 192
9 785
Group contributions
14 921
14 319
12 267
Other financial assets
76
3 101
2 341
Total financial assets
21 389
25 612
24 393
Property taken over protection of claims  
and cancelled leases
29
54
65
Total
21 418
25 666
24 458
2019
2018
1/1/2018
Prepaid expenses
2 464
1 285
1 009
Unbilled receivable
283
304
316
Total
2 747
1 589
1 325
2019
2018
1/1/2018
Valuation category, amortised cost
Swedish central bank
 
7
 
Swedish banks
21 577
21 021
20 659
Swedish credit institutions
94 050
26 104
26 284
Foreign central banks
6 306
13 884
23 199
Foreign banks
38 961
21 618
24 640
Foreign credit institutions
556
318
512
Total
161 450
82 952
95 294
Valuation category, fair value through 
profit or loss
Trading
 
 
 
Swedish banks, repruchase agreements
4
 
 
Foreign banks, repurchase agreements
 
266
 
Total
4
266
 
Total
161 454
83 218
95 294
2019
2018
1/1/2018
Valuation category, amortised cost
Deposits from Swedish public
708 839
689 588
644 334
Deposits from Swedish national debt office
329
339
274
Deposits from foreign public
10 025
9 688
18 099
Total
719 193
699 615
662 707
Valuation category, fair value through 
profit or loss
Trading
 
 
 
Deposits from Swedish public, repurchase 
agreements
18
641
8 707
Total
18
641
8 707
Total
719 211
700 256
671 414
2019
2018
1/1/2018
Valuation category, amortised cost
Commercial papers
128 774
131 439
149 977
Other interest-bearing bond loans
125 505
161 448
158 683
Total
254 279
292 887
308 660
Valuation category, fair value through 
profit or loss
Trading
 
 
 
Structure retail bonds
8 902
10 735
14 836
Total
8 902
10 735
14 836
Total
263 181
303 622
323 496
Turnover of debt securities in issue is reported in note P2 Liquidity risks.
2019
2018
1/1/2018
Security settlement liabilities
2 259
5 790
5 242
Unsettled payments
9 807
10 892
9 047
Other financial liabilities
9 178
8 697
5 238
Total financial liabilities
21 244
25 379
19 526
Short position in shares
247
358
234
of which own issued shares
24
257
199
Short position in interest-bearing securities
34 098
38 255
14 224
Total financial liabilities
55 589
63 992
33 984
2019
2018
1/1/2018
Accrued expenses
3 697
1 791
1 500
Contract liabilities 
37
2
10
Total
3 734
1 793
1 510
2019
2018
1/1/2018
Provisions for financial guarantees and 
other commitments
590
402
640
Restructuring provision
10
 
300
Other
43
25
22
Total
643
427
962

183
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
P37 Subordinated liabilities
Swedbank has a total of USD 1 750m Additional Tier 1 capital (AT1) outstanding, 
which is perpetual. USD 750m was issued on 12 February 2015 with a call option 
on 7 March 2020, USD 500m was issued on 9 December 2016 with a call option on 
17 March 2022. USD 500m was issued on 22 August 2019 with a call option on 
17 September 2024. The liabilities will be converted to ordinary shares in Swedbank AB 
if the core tier one ratio of Swedbank AB or the consolidated situation falls below 
5.125 per cent or 8.0 per cent respectively. The Additional Tier 1 liabilities issued  
2015 and 2016 are converted at current share price, but not lower than USD 15.70 
converted to SEK. The Additional Tier 1 liability issued 2019 is converted at current 
share price but not lower than USD 8.75 converted to SEK.
2019
2018
1/1/2018
Valuation category, amortised cost
Subordinated loans
15 453
23 015
14 591
Undated subordinated loans, Tier 1 capital contribution
16 481
11 169
11 273
Total
31 934
34 184
25 864
Specification of subordinated liabilities
Fixed-term subordinated loans
Maturity
Right to 
prepayment for 
Swedbank AB
Currency
Nominal amount
Carrying amount, 
SEKm
Coupon interest, %
2017/2027
2022
EUR
650
6 857
1.00%
2018/2033
2028
JPY
5 000
434
0.90%
2018/2028
2023
JPY
8 000
686
0.75%
2018/2028
2023
SEK
1 200
1 223
0.00%
2018/2028
2023
JPY
11 000
941
0.95%
2018/2028
2023
EUR
500
5 312
0.00%
Total
15 453
Undated subordinated loans approved by the Swedish Financial Supervisory  
Authority as Tier 1 capital contribution
Maturity
Right to 
prepayment for 
Swedbank AB
Currency
Nominal amount
Carrying amount, 
SEKm
Coupon interest, %
2015/undated
2020
USD
750
7 092
5.50%
2016/undated
2022
USD
500
4 743
6.00%
2019/undated
2024
USD
500
4 646
5.63%
Total
16 481

184
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
Carrying amounts and fair values of financial instruments
A comparison between the carrying amount and fair value of the parent company’s 
financial assets and financial liabilities is presented below.
Determination of fair values of financial instruments
The parent company uses various methods to determine the fair value of financial 
instruments depending on the degree of observable market data in the valuation and 
activity in the market. An active market is considered either a regulated or reliable mar-
ketplace where quoted prices are easily accessible and which demonstrates regularity. 
Activity is continuously evaluated by analysing factors such as differences in bid and 
ask prices. 
The methods are divided in three different levels: 
• Level 1: Unadjusted quoted price on an active market
• Level 2: Adjusted quoted price or valuation model with valuation parameters ­derived 
from an active market
• Level 3: Valuation model where significant valuation parameters are non- 
observable and based on internal assumptions.
When financial assets and financial liabilities in active markets have market risks that 
offset each other, an average of bid and ask prices is used as a basis to determine their 
fair value. For any open net positions, bid and ask rates are applied as applicable i.e. 
bid rates for long positions and ask rates for short positions. Where the fair value is 
derived from a modelling technique, the valuation is performed using mid prices. When 
relevant, a bid/ask adjustment is applied to ensure that long positions are recognised at 
bid price and short positions – at ask price. 
In cases that lack an active market, fair value is determined with the help of established 
valuation methods and models. In these cases assumptions that cannot be directly 
attributed to a market may be applied. These assumptions are based on experience 
and knowledge of the valuation of financial markets. The goal, however, is to always 
maximise the use of data from an active market. All valuation methods and models and 
internal assumptions are validated continuously by the independent risk control unit. 
In cases where it is considered necessary, adjustments are made to reflect fair value, 
so-called fair value adjustments. This is done to correctly reflect the parameters in 
the financial instruments and which should be considered in their valuations. For OTC 
derivatives, for example, where the counterparty risk is not settled with cash collateral, 
the fair value adjustment is based on the current counterparty risk (CVA and DVA). 
CVA and DVA are calculated using simulated exposures; the method is calibrated with 
market implied parameters.
The parent company has a continuous process that identifies financial instruments 
which indicate a high level of internal assumptions or low level of observable market 
data. The process determines how to make the calculation based on how the internal 
assumptions are expected to affect the valuation. In cases where internal assumptions 
have a significant impact on fair value, the financial instrument is reported in level 
3. The process also includes an analysis based on the quality of valuation data and 
whether any types of financial instruments will be transferred between the various 
levels.
For floating rate lending and deposits, which are recognised at amortised cost, the 
carrying amount is assessed to equal the fair value. 
P38 Untaxed reserves
P40 Fair value of financial instruments
P39 Equity
Accumulated 
accelerated 
depreciation
Tax allocation 
reserve
Total
Opening balance 2018
5 124
5 451
10 575
Allocation/Reversal
72
 
72
Closing balance 2018
5 196
5 451
10 647
Allocation/Reversal
78
 
78
Closing balance 2019
5 274
5 451
10 724
Tax value in 
accordance with 
depreciation as 
recorded in the 
books
Assets that are 
not included in 
the calculation of 
depreciation as 
recorded in the 
books
Total
Intangible fixed assets
107
259
366
Leasing equipment
16 024
 
16 024
Tangible assets
537
32
569
Other assets
156
2 591
2 747
Accumulated accelerated 
depreciation
–5 274
 
–5 274
Net value
11 550
2 882
14 432
Other assets included in the basis for depreciation in accordance with depreciation as 
recorded in the books are software licenses with a maturity of less than 36 months. 
Assets that are non-depreciable such as art and preliminary registered fixed assets, 
merger goodwill and other assets that are not considered to constitute fixed assets 
according to depreciation as recorded in the books, are excluded from the calculation, 
a total of SEK 291m.
Tax allocation reserve
2019
2018
1/1/2018
Allocation 2012
 
 
3 538
Allocation 2013
 
51
51
Allocation 2017
1 862
1862
1862
Allocation 2018
3 538
3 538
 
Allocation 2019
51
 
 
Total
5 451
5 451
5 451
2019
2018
1/1/2018
Restricted equity
Share capital, ordinary shares
24 904
24 904
24 904
Statutory reserve
5 968
5 968
5 968
Total
30 872
30 872
30 872
Non-restricted equity
Share premium reserve
13 206
13 206
13 206
Retained earnings
49 340
46 974
41 693
Total
62 546
60 180
54 899
Total equity
93 418
91 052
85 771
Changes in equity for the year and the distribution according to IFRS are indicated in 
the statement of changes in equity.

185
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
Financial instruments recognised at fair value
The following tables present fair values of financial instruments recognised at fair 
value, split between the three valuation hierarchy levels. 
Level 1 primarily contains equities, fund shares, bonds, treasury bills, commercial 
papers, debt securities in issue and standardised derivatives, where quoted prices on 
an active market are used in the valuation.
Level 2 primarily contains OTC derivatives, less liquid bonds debt securities in ­issue, 
deposits, and investment contract liabilities in the insurance operations. Equity 
derivatives and all instruments with optionality are valued using option pricing models 
calibrated by market implied parameters. All other interest rate, foreign exchange or 
credit derivatives as well as interest-bearing instruments are valued by discounted 
cash flows using market implied curves. The fair value of investment contract liabilities 
in the insurance operations is determined by the fair value of the underlying assets 
(i.e., amount payable on surrender of the policies).
Level 3 contains other financial instruments where internal assumptions have a 
significant effect on the calculation of fair value. Level 3 primarily contains unlisted 
2019
2018
1/1/2018
Fair value
Carrying 
amount
Difference
Fair value
Carrying 
amount
Difference
Fair value
Carrying 
amount
Difference
Assets
Financial assets
Cash and balances with central banks
107 596
107 596
 
80 903
80 903
 
136 061
136 061
Treasury bills etc.
132 934
132 934
96 125
96 006
119
82 824
82 827
–3
of which measured at amortised cost
120 251
120 251
 
80 010
79 891
119
65 000
65 003
–3
of which measured at fair value through profit 
or loss
12 683
12 683
 
16 115
16 115
 
17 776
17 824
 
Loans to credit institutions
537 151
537 151
 
523 699
523 699
 
450 007
450 007
 
of which measured at amortised cost
537 034
537 034
 
519 151
519 151
 
446 774
446 774
 
of which measured at fair value through profit 
or loss
117
117
 
4 548
4 548
 
3 233
3 233
 
Loans to the public
422 794
422 794
 
428 966
428 966
 
397 854
397 854
 
of which measured at amortised cost
375 973
375 973
 
389 086
389 086
 
372 716
372 716
 
of which measured at fair value through profit 
or loss
46 821
46 821
 
39 880
39 880
 
25 138
25 138
 
Bonds and interest-bearing securities
58 150
58 150
 
56 408
56 407
 
58 543
58 847
 
of which measured at amortised cost
1
1
 
2 174
2 174
 
3 277
3 277
 
of which measured at fair value through profit 
or loss
58 149
58 149
 
54 234
54 233
 
55 266
55 570
 
Shares and participating interest
6 235
6 235
 
4 629
4 629
 
19 569
19 569
 
of which measured at fair value through profit 
or loss
6 235
6 235
 
4 629
4 629
 
19 569
19 569
 
Derivatives
48 332
48 332
 
43 275
43 275
 
62 153
62 153
 
Other financial assets
21 389
21 389
 
25 612
25 612
 
24 393
24 393
 
Total
1 334 581
1 334 581
 
1 259 617
1 259 497
119
1 231 404
1 231 711
–3
2019
2018
1/1/2018
Fair value
Carrying 
amount
Difference
Fair value
Carrying 
amount
Difference
Fair value
Carrying 
amount
Difference
Liabilities
Financial liabilities
Amounts owed to credit institutions
161 454
161 454
 
83 218
83 218
 
95 294
95 294
 
of which measured at amortised cost
161 450
161 450
 
82 952
82 952
 
95 294
95 294
 
of which measured at fair value through profit 
or loss
4
4
 
266
266
 
 
 
 
Deposits and borrowings from the public
719 211
719 211
 
700 256
700 256
 
671 414
671 414
 
of which measured at amortised cost
719 193
719 193
 
699 615
699 615
 
662 707
662 707
 
of which measured at fair value through profit 
or loss
18
18
 
641
641
 
8 707
8 707
 
Debt securities in issue
267 209
263 181
4 028
306 969
303 622
3 347
325 474
323 496
1 978
of which measured at amortised cost
258 307
254 279
4 028
296 234
292 887
3 347
310 638
308 660
1 978
of which measured at fair value through profit 
or loss
8 902
8 902
 
10 735
10 735
 
14 836
14 836
 
Senior non-preferred liabilities
10 299
10 805
–506
 
 
 
 
 
 
of which measured at amortised cost
10 299
10 805
–506
 
 
 
 
 
 
Subordinated liabilities
31 730
31 934
–204
34 366
34 184
182
25 881
25 864
17
of which measured at amortised cost
31 730
31 934
–204
34 366
34 184
182
25 881
25 864
17
Derivatives
69 908
69 908
 
54 063
54 063
 
65 704
65 704
 
Short positions securities
34 345
34 345
 
38 613
38 613
 
14 458
14 458
 
of which measured at fair value through profit 
or loss
34 345
34 345
 
38 613
38 613
 
14 458
14 458
 
Other financial liabilities
21 244
21 244
 
25 379
25 379
 
19 526
19 526
 
Total
1 315 400
1 312 082
3 318
1 242 584
1 239 055
3 529
1 217 751
1 215 756
1 995

186
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
equity instruments and illiquid options. The unlisted equity instruments include strate-
gic investments. During 2018 Swedbank received more convertible preference shares 
in VISA Inc as dividend from its associate VISA Sweden. VISA Inc. shares are subject to 
selling restrictions for a period of up to 9 years and under certain conditions may have 
to be returned. The carrying amount was SEK 1 288m at end of 2019. Because liquid 
quotes are not available for the instrument, its fair value is established with significant 
elements of own internal assumptions and reported in level 3 as equity instruments. 
When valuation models are used to determine the fair value of financial instru-
ments in level 3, the transaction price paid or received is assessed as the best evidence 
of fair value at initial recognition. Due to the possibility that a difference could arise 
between the transaction price and the fair value calculated at the time using the valu-
ationmodel, so called day 1 profit or loss, the valuation model is calibrated against the 
transactionprice. As of year-end there were no cumulative differences reported in the 
balance sheet.
Transfers between fair value hierarchy levels are reflected as taking place at the 
end of each quarter. During the years ended 2019 and 2018, there were no transfers 
of financial instruments between valuation levels 1 and 2. Financial instruments are 
transferred to or from level 3 depending on whether the internal assumptions have 
changed in significance for the valuation.
The following table shows financial instruments measured at fair value as per 
31 December distributed by valuation level.
2019
2018
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets
Treasury bills and other bills eligible for refinancing  
with central banks, etc
8 568
4 115
 
12 683
9 922
6 193
 
16 115
Loans to credit institutions
 
117
 
117
 
4 548
 
4 548
Loans to the public
 
46 821
 
46 821
 
39 880
 
39 880
Bonds and interest-bearing securities
22 115
36 034
 
58 149
20 504
33 729
 
54 234
Shares and participating interest
4 487
 
1 748
6 235
3 462
 
1 167
4 629
Derivatives
8
48 324
 
48 332
456
42 817
2
43 275
Total
35 178
135 411
1 748
172 337
34 343
127 167
1 169
162 680
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Amounts owed to credit institutions
 
4
 
4
 
266
 
266
Deposits and borrowings from the public
 
18
 
18
 
641
 
641
Debt securities in issue, etc
 
8 902
 
8 902
 
10 735
 
10 735
Derivatives
12
69 896
 
69 908
397
53 666
 
54 063
Short positions securities
31 864
2 481
 
34 345
38 613
 
 
38 613
Total
31 876
81 301
 
113 177
38 730
65 308
 
104 317
Changes in level 3
2019
2018
Assets
Assets
Equity 
­instruments
Derivatives
Total
Equity 
­instruments
Derivatives
Total
Opening balance
1 167
2
1 169
366
26
392
Acquisitions
20
 
20
57
 
57
Received VISA Inc C-aktier
 
 
692
 
692
Sale of assets/ dividends received
–11
–11
Maturities
–1
–1
 
–15
–15
Transferred from Level 1 to Level 3
 
 
 
 
2
2
Transferred from Level 3 to Level 2
 
 
 
 
–13
–13
Gains or loss
572
 –1
571
52
2
54
of which are changes in unrealised gains  
or losses for items held at closing day
565
 
565
54
 
54
Closing balance
1 748
1 748
1 167
2
1 169

187
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
Financial instruments at amortised cost
The following tables distribute fair values by the three valuation levels for financial instruments at amortised cost.
At amortised cost
2019
Fair value
Carrying amount
Level 1
Level 2
Total
Assets
Treasury bills and other bills eligible for refinancing with central banks, etc
120 251
120 251
120 251
Loans to credit institutions
537 034
 
537 034
537 034
Loans to the public
375 973
 
375 973
375 973
Bonds and other interest-bearing securities
1
 
1
1
Total
1 033 259
120 251
913 008
1 033 259
Liabilities
Amounts owed to credit institutions
161 450
 
161 450
161 450
Deposits and borrowing from the public
719 193
 
719 193
719 193
Debts securities in issue
254 279
 
258 307
258 307
Senior non-preferred liabilities
10 805
 
10 299
10 299
Subordinated liabilities
31 934
 
31 730
31 730
Total
1 177 661
 
1 180 979
1 180 979
2018
Fair value
Carrying amount
Level 1
Level 2
Total
Assets
Treasury bills and other bills eligible for refinancing with central banks, etc
79 891
80 010
 
80 010
Loans to credit institutions
519 151
 
519 151
519 151
Loans to the public
389 086
 
389 086
389 086
Bonds and other interest-bearing securities
2 174
 
2 174
2 174
Total
990 302
79 891
910 411
990 302
Liabilities
Amounts owed to credit institutions
82 952
 
82 952
82 952
Deposits and borrowing from the public
699 615
 
699 615
699 615
Debts securities in issue
292 887
 
296 234
296 234
Subordinated liabilities
34 184
 
34 366
34 366
Total
1 109 638
 
1 113 167
1 113 167

188
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
P42 Specification of adjustments for non-cash items in operating activities 
2019
2018
Amortised origination fees
–490
–532
Unrealised changes in value/currency changes
–944
1 681
Depreciation of tangible and intangible fixed assets
4 775
4 814
Impairment of fixed assets
15
34
Impairment provisions and write-offs
1 390
743
Dividend Group entities
–10 212
–19 522
Prepaid expenses and accrued income
–1 020
–420
Accrued expenses and prepaid income
1 569
501
Share based payments to employees
176
221
Capital gains/losses on financial assets
–129
–705
Other
–47
–3
Total
–4 917
–13 188
P41 Financial assets and liabilities which have been offset or are  
subject to netting or similar agreements
The disclosures below refer to recognised financial instruments that have been offset in the balance sheet or are subject to legally binding netting agreements, even when they 
have not been offset in the balance sheet, as well as to related rights to financial collateral. As of the closing day these financial instruments referred to derivatives, repos (includ-
ing reverse), security settlement claims and securities loans.
2019
2018
Assets
Derivatives
Reverse 
repurchase 
agreements
Securities 
borrowing
Total
Derivatives
Reverse 
repurchase 
agreements
Securities 
borrowing
Total
Financial assets, which not have been offset or are subject 
to netting
2 172
 
 
2 172
1 764
 
 
1 764
Financial assets, which have been offset or are subject to net-
ting
46 160
46 784
276
93 220
41 511
44 259
137
85 907
Net amount presented in the balance sheet
48 332
46 784
276
95 392
43 275
44 259
137
87 671
Financial assets, which have been offset or are subject 
to netting or similar agreements
Gross amount
118 474
97 692
276
216 442
71 776
98 052
137
169 965
Offset amount
–72 314
–50 908
 
–123 222
–30 265
–53 793
 
–84 058
Net amount presented in the balance sheet
46 160
46 784
276
93 220
41 511
44 259
137
85 907
Related amount not offset in the balance sheet
Financial instruments, netting agreements
19 381
 
 
19 381
20 430
644
 
21 074
Financial instruments, collateral
8
46 726
276
47 010
135
34 942
137
35 214
Cash, collateral
11 897
58
 
11 955
1 529
 
 
1 529
Total amount not offset in the balance sheet
31 286
46 784
276
78 346
22 094
35 586
137
57 817
Net amount
14 874
 
 
14 874
19 417
8 673
 
28 090
Liabilities
Derivatives
Repurchase 
agreements
Securities 
lending
Total
Derivatives
Repurchase 
agreements
Securities 
lending
Total
Financial liabilities, which not have been offset or are subject 
to netting
2 843
 
 
2 843
1 872
 
 
1 872
Financial liabilities, which have been offset or are subject 
to netting
67 065
23
 
67 088
52 191
907
22
53 120
Net amount presented in the balance sheet
69 908
23
 
69 931
54 063
907
22
54 992
Financial liabilities, which have been offset or are subject 
to netting or similar agreements
Gross amount
141 297
50 931
 
192 228
85 101
54 700
22
139 823
Offset amount
–74 232
–50 908
 
–125 140
–32 910
–53 793
 
–86 703
Net amount presented in the balance sheet
67 065
23
 
67 088
52 191
907
22
53 120
Related amount not offset in the balance sheet
Financial instruments, netting agreements
19 381
 
 
19 381
20 430
644
 
21 074
Financial instruments, collateral
3 264
 
 
3 264
2 309
263
22
2 594
Cash, collateral
16 081
23
 
16 104
4 890
 
 
4 890
Total amount not offset in the balance sheet
38 726
23
 
38 749
27 629
907
22
28 558
Net amount
28 339
 
 
28 339
24 562
 
 
24 562

189
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
P44 Assets pledged, contingent liabilities  
and commitments
P43 Dividend paid and proposed disposition 
of earnings 
The Board of Directors recommends that shareholders receive a dividend of SEK 8.80 
per ordinary share (14.20) in 2020 for the financial year 2019, corresponding to  
SEK 9 856m (15 885).
In accordance with the balance sheet of Swedbank AB, SEK 49 340m is at the 
disposal of the Annual General Meeting:
The Board of Directors recommends that the earnings be disposed as follows (SEKm):
The proposed total amounts to be distributed and carried forward to next year have 
been calculated on all 1 118 304 389 outstanding ordinary shares at 31 December of 
2019, plus 1 715 349 outstanding ordinary shares entitled to dividends which have 
been estimated to be exercised by employees between 1 January to the Annual General 
Meeting as per 26 March 2020 relating to remuneration programs. The proposed total 
amounts to be distributed and carried forward to next year are ultimately calculated 
on the number shares entitled to dividends on the record day. The amounts could 
change in the event of additional share repurchases or sales of treasury shares before 
the record day. Unrealised changes in the value of assets and liabilities at fair value 
have had a negative effect on equity of SEK 781m. The proposed record day for the 
dividend is 30 March 2020. The last day for trading in Swedbank’s shares with the right 
to the dividend is 26 March 2020. If the Annual General Meeting accepts the Board’s 
proposal, the dividend is expected to be paid by Euroclear on 2 April 2020. At year-end, 
the consolidated situation’s total capital requirement according to pillar 1 and buffer 
requirements by SEK 40 788m. The surplus in Swedbank AB was SEK 82 146m.
The business conducted in the parent company and the Group involves no risks be-
yond what occur and can be assumed will occur in the industry or the risks associated 
with conducting business activities. The Board of Directors has considered the parent 
co pany’s and the Group’s consolidation needs through a comprehensive assessment of 
the parent company’s and the Group’s financial position and the parent company’s and 
the Group’s ability to meet their obligations. The assessment has also been done based 
on currently expected regulatory changes. Given the financial position of the parent 
company and the Group, there can be no assessment other than that the parent com-
pany and the Group can continue their business and that the parent company and the 
Group can be expected to meet their liabilities in both the short and long term and have 
the ability to make the necessary investments. It is the assessment of the Board of 
Directors that the size of the equity, even after the proposed dividend, is reasonable in 
proportion to the scope of the parent company’s and the Group’s business and the risks 
associated with conducting the business. The assessment of the Board of Directors 
is that the proposed dividend is justifiable given the demands that are imposed due 
to the nature, scope and risks associated with the business and the Group’s business 
on the size of the parent company’s and the Group’s equity as well as on the parent 
company’s and the Group’s balance sheets, liquidity and financial positions.
2019
2018
Ordinary shares
SEK per 
share
Total
SEK per 
share
Total
Dividend paid
14.20
15 878
13.00
14 517
Proposed dividend
8.80
9 856
14.20
15 885
2019
2018
A cash dividend of SEK 8,80 per ordinary share
9 856
15 885
To be carried forward to next year
39 484
44 295
Total disposed
49 340
60 180
Assets pledged
Assets pledged for own liabilities
2019
2018
1/1/2018
Government securities and bonds pledged 
with the Riksbank
10 000
9 776
8 047
Government securities and bonds pledged 
with foreign central banks
5 355
6 691
6 229
Government securities and bonds pledged 
for liabilities to credit institutions, repur-
chase agreements
8 687
6 920
3 856
Government securities and bonds pledged 
for deposits from the public, repurchase 
agreements
15 680
13 506
7 260
Cash
9 002
4 470
4 484
Total
48 724
41 363
29 876
The carrying amount of liabilities for which assets are pledged amounted to 
SEK 47 426m (38 753) in 2019.
Other assets pledged
2019
2018
1/1/2018
Securities lending
84
186
16
Government securities and bonds pledged 
for other commitments
3 475
1 858
2 857
Cash
429
423
482
Total
3 988
2 467
3 355
Collateral is pledged in the form of governement securities or bonds to central banks 
in order to execute transactions with the central banks. In so-called genuine repur-
chase transactions, where the parent company sells a security and at the samt time 
agrees to repurchase it, the sold security remains on the balance sheet. The carrying 
amount of the security is also recognised as a pladged asset. In principle, the parent 
company cannot dispose of pledged collateral. generally, the assets are also separated 
behalf of the beneficiaries in the event of the parent company' s insolvency.
Contingent liabilities
Nominal amount
2019
2018
1/1/2018
Loan guarantees
456 261
454 939
522 334
Other guarantees
38 667
33 538
31 061
Accepted and endorsed notes
1 200
1 988
439
Letters of credit granted but not utilised
2 764
2 417
2 697
Other contingent liabilities
 
 
6
Total
498 892
492 882
556 537
Commitments
Nominal amount
2019
2018
1/1/2018
Loans granted but not paid
189 680
174 118
163 305
Overdraft facilities granted but not utilised
68 468
63 574
67 385
Total
258 148
237 692
230 690
Credit impairment provisions for contingent 
liabilities and commitments
–590
–402
–100
The nominal amount of interest, equity and currency related contracts are shown in 
note P24 Derivatives.
Money laundering 
Swedbank is cooperating with authorities in Sweden, the three Baltic countries and 
the United States. Authorities in Sweden, Estonia and the United States are conduct-
ing ­investigations into Swedbank’s historic AML compliance, including the Group’s 
response thereto, as well as related issues involving the Group’s anti-money laundering 
controls and certain individuals and entities who may at some time have been custom-
ers of the Group. The Swedish Economic Crime Authority has an ongoing investigation 
relating to potential aggravated swindling and insider information. The timing of 
the completion of the investigations is still unknown, except for the final report and 
decision on any sanctions from the Swedish FSA which is expected to be announced 
in March 2020. The outcome is still uncertain. At present, it is not possible to reliably 
estimate the amount of any potential settlement or fines, which could be material.

190
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
The agreements mainly relate to premises in which the parent company is the lessee. The terms of the agreements comply with customary practices and include clauses on  
inflation and property tax. The combined amount of future minimum lease payments that relate to non-cancellable agreements is allocated on the due dates as follows:
The parent company transfers ownership of financial assets in connection with repos 
and security loans. Although ownership has been transferred in these transactions, 
the asset remains on the balance sheet since the parent company is still exposed to the 
asset’s risk of fluctuating in value. This is because the agreement stipulates at the time 
of transfer that the asset will be restored. Sales proceeds received in connection with 
repos are recognised as liabilities. Related liabilities are reported in the note before any 
offsetting in the balance sheet. All assets and related liabilities are recognised at fair 
value and included in the valuation category fair value through profit and loss, trading. 
Liabilities related to securities lending refer to collateral received in the form of cash. 
These liabilities are reported in the valuation category amortised cost. In addition to 
what is indicated in the table for securities lending, collateral is received in the form 
of other securities to cover the difference between the fair value of the transferred 
assets and the recognised liability’s fair value. At year-end the parent company had no 
commitments in financial assets that had been removed from the balance sheet.
P45 Transferred financial assets
P46 Operational leasing
Transferred assets
Associated liabilities
2019
Carrying amount
 Of which 
repurchase 
agreements 
 Of which 
­securities 
lending 
Carrying amount
 Of which 
repurchase 
agreements 
 Of which 
­securites 
lending 
Valuation category, fair value through profit or loss
Trading
Equity instruments
84
 
84
 
Debt securities
24 367
24 367
 
24 209
24 209
 
Total
24 451
24 367
84
24 209
24 209
Transferred assets
Associated liabilities
2018
Carrying amount
 Of which 
repurchase 
agreements 
 Of which 
­securities 
lending 
Carrying amount
 Of which 
repurchase 
agreements 
 Of which 
­securites 
lending 
Valuation category, fair value through profit or loss
Trading
Equity instruments
186
186
22
22
Debt securities
20 426
20 426
20 451
20 451
Total
20 612
20 426
186
20 473
20 451
22
2019
Expenses
Income subleasing
Total
2018
Expenses
Income subleasing
Total
2020
706
54
652
2019
737
31
706
2021
564
53
511
2020
628
27
601
2022
548
33
515
2021
509
21
488
2023
494
33
461
2022
472
21
451
2024
404
32
372
2023
430
21
409
2025
378
32
346
2024
372
21
351
2026
347
31
316
2025
346
21
325
2027
336
31
305
2026
314
21
293
2028
307
31
276
2027
301
21
280
2029 or later
1 408
328
1 080
2028 or later
1 658
242
1 416
Total
5 492
658
4 834
Total
5 767
447
5 320

191
NOTES, PARENT COMPANY 
Swedbank Annual and Sustainability Report 2019
See Group note G56.
P47 Related parties and other significant relationships
P48 Events after 31 December 2019
Subsidiaries
Associates and  
joint ventures
Other related parties
2019
2018
2019
2018
2019
2018
Assets
Loans to credit institutions
492 783
488 339
16 307
14 588
 
 
Loans to the public
2 098
638
 
 
 
 
Bonds and other interest-bearing securities
2 470
4 963
 
 
 
 
Derivatives
4 183
3 894
 
 
 
 
Other assets
15 014
14 356
 
 
 
 
Prepaid expenses and accrued income
271
186
 
 
 
 
Total assets
516 819
512 376
16 307
14 588
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
Amount owed to credit institutions
91 987
26 307
3 712
3 080
 
 
Deposits and borrowing from the public
10 057
8 446
 
 
455
248
Derivatives
29 100
22 919
 
 
 
 
Other liabilities
445
158
59
 
 
 
Accrued expenses and prepaid income
 
 
 
1
 
 
Total liabilities
131 589
57 830
3 771
3 081
455
248
Contingent liabilities
 
 
 
 
 
Guarantees
451 420
453 917
 
 
 
Derivatives, nominal amount
1 110 776
971 435
1 013
867
 
 
Income and expenses
Interest income
–354
–1 835
142
270
 
Interest expenses
1 044
1 756
 
 
 
 
Dividends received
4 173
4 161
529
355
 
 
Commission income
1 865
1 641
7
6
 
 
Commission expenses
24
26
8
11
 
 
Other income
176
210
4
6
 
 
Other general administrative expenses
4
14
 
 
619
591
P49 Changed presentation of net interest 
income
Income statement
New 
­presentation 
2018
Earlier 
presentation 
2018
Interest income on financial assets measured  
at amortised cost
10 894
Other interest income
1 565
Leasing income
4 773
Interest income
17 232
Interest expense
–4 992
Interest expense
–4 992
Net interest income
12 240
Interest income
15 450
Negative yield on financial assets
–2 991
Leasing income
4 773
Interest income, including negative yield  
on financial liabilities
17 232
Interest expense
–5 727
Negative yield on financial liabilities
735
Interest expense, including negative yield  
on financial liabilities
–4 992
Net interest income
12 240
For more information see note G2 Accounting policies.

192
Swedbank Annual and Sustainability Report 2019
ALTERNATIVE PERFORMANCE MEASURES
Measure and definition
Purpose
Net investment margin before trading interest is deducted
Calculated as Net interest income before trading interest is deducted, in relation to average total assets. 
The average is calculated using month-end figures1, including the prior year end. The closest IFRS  
measure is Net interest income and can be reconciled in Note G8. 
The presentation of this measure is relevant for investors 
as it considers all interest income and interest expense, 
independent of how it has been presented in the income 
statement.
Allocated equity
Allocated equity is the operating segment’s equity measure and is not directly required by IFRS. The 
Group’s equity attributable to shareholders is allocated to each operating segment based on capital 
­adequacy rules and estimated capital requirements based on the bank’s internal Capital Adequacy 
­Assessment Process (ICAAP). 
The allocated equity amounts per operating segment are reconciled to the Group Total equity, 
the ­nearest IFRS measure, in Note G5. 
The presentation of this measure is relevant for investors 
since it used by Group management for internal governance 
and operating segment performance management purposes.
Return on allocated equity
Calculated based on profit for the financial year for the operating segment (operating profit less estimated 
tax and non–controlling interests), in relation to average allocated equity for the operating segment. 
The average is calculated using month-end figures1, including the prior year end. 
The allocated equity amounts per operating segment are reconciled to the Group Total equity, 
the ­nearest IFRS measure, in Note G5. 
The presentation of this measure is relevant for investors 
since it used by Group management for internal governance 
and operating segment performance management purposes.
Income statement measures excluding UC income
Amounts related to other income are presented excluding the income related to the UC (2018). 
The amounts are reconciled to the relevant IFRS income statement lines on page 26. 
The presentation of this measure is relevant for investors 
as it provides comparability of figures between reporting 
financial years.
Return on equity excluding UC income
Represents profit for the financial year allocated to shareholders excluding UC income in relation to 
­average Equity attributable to shareholders’ of the parent company. The average is calculated using 
month-end figures, including the prior year end.
Profit for the financial year allocated to shareholders excluding UC (2018) income is reconciled  
to Profit for the financial year allocated to shareholders, the nearest IFRS measure, on page 26. 
The presentation of this measure is relevant for investors 
as it provides comparability of figures between reporting 
financial years.
Cost/Income ratio excluding UC income
Total expenses in relation to total income excluding UC income. Total income excluding UC (2018) 
is ­reconciled to Total income, the nearest IFRS measure, on page 26. 
The presentation of this measure is relevant for investors 
as it provides comparability of figures between reporting 
financial years.
Other alternative performance measures
These measures are defined on page 231 and are calculated from the financial statements  
without adjustment.
• Cost/Income ratio
• Credit impairment provision ratio Stage 3 loans
• Credit Impairment ratio
• Loan/Deposit ratio
• Equity per share
• Net investment margin
• Return on equity1
• Return on total assets
• Share of Stage 3 loans, gross
• Total credit impairment provision ratio
1) The month-end figures used in the calculation of the average can be found on page 74 of the Fact book.
The presentation of these measures is relevant for investors 
since they are used by Group management for internal gov-
ernance and operating segment performance management 
purposes.
Swedbank prepares its financial statements in accordance with IFRS as adopted by the EU, as set out in Note G2. The annual report includes a number of alternative performance 
measures, which exclude certain items which management believes are not representative of the underlying/ongoing performance of the business. Therefore the alternative 
performance measures provide more comparative information between periods. Management believes that inclusion of these measures provides information to the readers that 
enable comparability between years. 
Alternative performance measures

Reports and notes – Sustainability
194
Sustainability report
195
Materiality analysis
196
Stakeholder engagement
197
Sustainability management
198
Tracking and monitoring Swedbank’s key topics
198
Material impacts and strategic policy documents
198
Sustainability index
199
S1 – Pay
200
S2 – Save/Invest
202
S3 – Finance
203
S4 – Procure
204
S5 – Environmental impacts
205
S6 – Employees
208
S7 – Anti-corruption & IT security
209
S8 – Social engagement
210
S9 – Human rights
210
S10 – Taxes
211
About this report
212
GRI Standards Index
213
GRI Topic-specific disclosures
216
TCFD report
216
Precautionary principle
216
Sustainability reporting

Sustainability Report
Swedbank is strongly committed to the sound and sustainable development of its customers, 
employees and society as a whole. Economic, social, environmental and ethical sustainability  
is integrated in the business. Sustainability results are presented as an integral part of 
­Swedbank’s annual report. The sustainability report conforms to the Global Reporting 
­Initiative’s (GRI) framework, Standards version, Core level, and has been reviewed by the 
­auditing firm PwC in accordance with the assurance report on page 222. 
For Swedbank, sustainable business is distinguished by responsible deci-
sions, value creation and transparency. Swedbank has committed to follow 
several international initiatives and has built an integrated sustainability 
framework for delegating responsibility and minimising risks. The UN Prin-
ciples for Responsible Banking and the UN Principles for Responsible Invest-
ments (UNPRI) are among the key commitments that guide Swedbank’s 
work and are the basis of its position statements and routines. 
The structure of the sustainability work is summarised below. The 
majority of Swedbank’s commitments, governing documents and reports 
are shown here, giving an overview of sustainability management and how 
sustainability is implemented and monitored at Swedbank. Swedbank’s 
view on responsible banking is presented in the sustainability report and 
the external audit involves further quality control, which is in line with the 
bank’s values. Reported information applies to the calendar year 2019 (pre-
vious report 2018), unless otherwise indicated, and spotlights the most 
important aspects of Swedbank’s sustainability work. The sustainability 
report comprises Swedbank AB and its subsidiaries (see Notes G1 and P24). 
The aim is to present areas where progress has been made as well as where 
more work has to be done. The notes show the results of the sustainability 
work from the standpoint of Swedbank’s core processes: pay, save/invest, 
finance and procure. The results are also presented based on the bank’s 
work on HR issues, the environment, taxes, anti-corruption, IT security, 
human rights and social engagement. Sustainability information is found 
on pages 14–23 and 194–216 and on www.swedbank. com.
Commitments 
Frameworks 
Governance
Reporting
International commitments
•	 Within the UN:
– Global Compact
– Principles for Responsible Banking
– Principles for Responsible 
­Investments
– Environment Programme Finance
– Guiding Principles on Business and 
Human Rights
– Women’s Empowerment Principles
•	 International Chamber of Com-
merce’s (ICC) Business Charter 
for Sustainable Development
•	 Montreal Carbon Pledge
•	 Climate Action 100+
•	 Science Based Targets initiative
•	 Task Force on Climate-related 
Financial Disclosures
•	 Equator Principles
•	 Nordic CEOs for a Sustainable 
Future
National commitments
•	 Swedish Association for 
­Sustainable Business
•	 ECPAT Sweden
Policies
•	 Anti-corruptionspolicy 
•	 Sustainability policy
•	 Occupational health and safety 
policy
•	 Policy on Gender equality, 
­Diversity and Inclusion
•	 Credit policy
•	 Environmental policy
•	 Tax policy 
•	 Responsible investment policy 
•	 Anti-money laundering and 
counter terrorist financing policy
•	 Human rights policy 
Position statements
•	 Position on defence equipment
•	 Position on climate change
•	 Exclusion list 
Code of Conduct 
Supplier Code of Conduct 
Sector guidelines
Board of Directors 
•	 Ultimately responsible for 
­governance of Swedbank’s 
­sustainability work by adopting 
policies 
CEO 
•	 Decides on the Group’s position 
statements
Swedbank’s Business Ethics 
­Committee 
•	 The ethics committee handles 
issues where sustainability and 
business ethics are critical 
­factors in business decisions
Green Bond Committee
•	 Decides on green assets in 
accordance with Swedbank 
Green Bond Framework
Group Savings Sustainability 
Forum 
•	 Consulted on sustainability 
­related issues involving savings
ISO 14001 
•	 Certified environmental 
­management system
Sustainability strategy and goals 
Reporting 
•	 Annual Report including 
­sustainability
•	 Responsible investments
•	 Climate report 
•	 Climate impact of funds 
•	 Climate impact of insurances
•	 Impact report, green bonds
194
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Materiality analysis
Swedbank has a daily dialogue with its stakeholders: customers, owners/investors, employees  
and society at large. Customer communication is through both digital and physical channels. 
Internally, there is an ongoing dialogue between employees and their managers. Swedbank  
also has continuous contact with authorities and other relevant stakeholders in society.
Each year Swedbank conducts customer surveys, brand surveys and opin-
ion polls, and participates in industry forums that address current chal-
lenges and trends in society. Taken together, this provides guidance for 
Swedbank’s work and a good sense of whether the bank is focused on the 
right things. It also gives Swedbank an opportunity to continuously develop 
and improve. The feedback received from stakeholders is very valuable – 
in the bank’s strategic work and in business planning.
Materiality analysis
The latest materiality analysis was performed in 2017 to identify which 
topics Swedbank’s stakeholders consider the most important to the bank’s 
long-term survival – from an ethical, social, environmental and economi-
cally sustainable perspective. The analysis was conducted in Sweden, 
­Estonia, Latvia and Lithuania.
The work began with an internal survey sent to around 40 key employ-
ees of the bank representing different business areas and staff functions in 
every market and with a good understanding of Swedbank’s stakeholders. 
The responses were then used to support the analysis. The number of key 
topics was consolidated to focus on what Swedbank saw as most impor-
tant to measure and is not captured in other customer surveys.
The materiality analysis was constructed on this basis. It consisted of 
a survey covering everything from economic stability to secure IT systems, 
climate change, social engagement and gender equality. The questions 
were sent to over 1 000 private customers, 800 corporate customers, 
1 800 employees and 20 social partners (e.g. authorities and stakeholder 
groups). Interviews were also conducted with 10 owners/investors. 
The stakeholders were asked how much they agree with specific state-
ments about Swedbank, such as “Swedbank is a financially stable bank”, 
and how important they considered each question.
Results
The materiality analysis resulted in 15 key topics. The results showed great 
similarities between stakeholders and markets when it comes to what was 
valued most. All the topics were considered important to some degree, with 
the lowest average response for a single question of 8.1 (scale of 1 to 10). 
That Swedbank is a financially stable bank and has secure and reliable IT 
systems were considered the most important by respondents regardless 
of market. Other areas they valued highly were preventing corruption and 
money laundering; transparent reporting of profits, taxes and fees; easily 
available products and services; and responsible lending.
Being a financially stable bank is not only considered important, but also 
the area that Swedbank best lived up to, according to respondents. Taken 
together, the survey shows that Swedbank has a big impact on the national 
economy and on stakeholders’ opinions and decisions. Swedbank considers 
the key topics to still be relevant and illustrate the bank’s impact on society 
and importance to various stakeholder groups. Learn about how Swedbank 
takes responsibility for its impact on society and importance to customers, 
employees and other stakeholders on pages 14–23.
Importance
Agree
High
High
Financially stable bank
Prevent corruption  
and money laundering
Transparent reporting
Responsi-
ble lending
Sound compensation 
culture
Responsible owner
Attractive employer
Competitive return to investors
Value-creating social engagement
Gender equality and diversity
Sustainable products and services
Prevent climate change
Secure IT 
systems
 1
 2
 3
 4
 5
 6
10
11
12
 9
 7
 8
13
14
15
High availability
Key topic 
Section where the 
result is reported
Offer customers sustainable products  
and services (13) 
S1 Pay, S2 Save/Invest, 
S3 Finance
High availability (2) 
S1 Pay
Be a responsible owner (10) 
S2 Save/Invest
Engage in responsible lending (5) 
S3 Finance
Promote sustainable procurement (14) 
S4 Procure
Actively work to prevent climate  
change (15) 
S5 Environment
Promote gender equality and diversity (9) 
S6 Employees
Be an attractive employer (11) 
S6 Employees,  
S9 Human rights
Secure IT systems (6) 
S7 Anti-corruption &  
IT security
Actively counter corruption and money 
laundering (3) 
S7 Anti-corruption &  
IT security
Engage in value-creating social 
­engagement (8) 
S8 Social engagement
Engage in transparent reporting (4)
S10 Taxes
Be a financially stable bank (1)
Maintain profitability and a competitive 
return to investors (7)
Sound compensation culture (12)
Business model
Income statement and 
balance sheet
Financial notes and 
­sustainability notes
Compensation within 
Swedbank
Sustainable 
procurement
195
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Stakeholder engagement
Stakeholder groups
Swedbank’s stakeholders are divided into four main categories: Customers, 
Employees, Owners and Investors, and Society & the world around us. In 
addition, Swedbank interacts with a large number of other stakeholder 
groups to varying degrees. They include the following:
• Authorities
• Municipalities and county councils
• Regulators
• Pension managers
• Asset managers
• Analysts
• Journalists
• Unions
• Students
• Foundations
• Not-for-profit organisations
• Stakeholder organisations
• Trade organisations
• Associations
• Primary schools
• Secondary schools
• Colleges
• Universities
• Suppliers
• Subsidiaries
• Group companies
• Competitors
• Ratings agencies
• Sustainability indexes
• Auditors
Identifying and selecting stakeholders
Swedbank’s stakeholders are those who are materially impacted by and 
have an impact on the bank’s operations. This serves as the basis for selec-
tion of the overarching stakeholder groups. Based on the Group’s frame-
work, market analysis, internal discussions and active, structured measures 
to create and parti­cipate in various forums for dialogue and advocacy, 
Swedbank identify and select relevant stake­holders within each group.
Key topics in 2019 and approach to stakeholder engagement
Communication with stakeholder groups is important to Swedbank’s oper-
ations. The bank maintains an open dialog with many different groups in 
society. Swedbank’s Communications, Public Affairs and Sustainability 
units provide guidelines, support and coaching for stakeholder dialog. 
Swedbank operates in various markets and the dialog is adapted for local 
implementation.
Following is a description of a number of key topics discussed with 
stakeholders during the year. For more information on how the bank 
addressed these issues, see pages 14–23 and 194–216.
Customers 
The bank engages in dialog with customers primarily through both tradi-
tional and digital channels. Customers also meet the bank through its mar-
keting and other ongoing activities. Annual customer surveys are a valua-
ble source of opinions and suggestions. Key topics raised during the year 
included:
•	 Digital services
•	 Deficiencies in the bank’s anti-money laundering work
•	 Availability for our customers
•	 Sustainable products and services
Employees
How employees perceive their work situation has a big impact on their 
­performance, engagement and how they are seen by customers and 
­colleagues. Swedbank regularly conducts surveys to get employees’ views 
of the bank as an employer. Employee engagement is measured, discussed 
and followed up in all groups. Key topics raised during the year included:
•	 Internal communication on the bank’s anti-money laundering work
•	 Launch of a people philosophy, “Together we make a difference”, 
a description of the bank’s corporate culture and values 
•	 Education and upskilling
•	 Occupational health and safety issues through the introduction of the 
“Swedbank at Work” concept
Owners and investors
Swedbank actively communicates the Group’s strategy and development 
to existing and potential investors, analysts and the media. Information is 
provided through various channels such as quarterly reports, the annual 
and sustainability report, meetings with investors, teleconferences, the 
company’s website and press releases. Capital market days, which are held 
to present Swedbank and its operations, offer an opportunity for dialog. 
Key topics raised during the year included:
•	 Deficiencies in the bank’s anti-money laundering work
•	 Market- and strategy-related issues as well as new financial goals 
•	 The bank’s sustainability work
Society & the world 
Swedbank is engaged in various social initiatives in our home markets. 
Though they differ in purpose, scope and geography, the goal is the same: 
to promote social development. Swedbank regularly interacts with various 
groups in society through local projects and activities covering everything 
from business-related issues to public education and volunteer work. Key 
topics raised during the year included:
•	 What the bank is doing to detect and prevent money laundering and how 
the deficiencies that have been revealed will be mitigated. The need for 
dialog has been greatest in Sweden and Estonia.
•	 The dialog on sustainability and social engagement with among others 
the bank’s owner-foundations resulted during the year in a decision to 
increase the commitment to social issues as part of three initiatives: 
Young Economy, Digital Economy and Junior Achievement.
196
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Sustainability management
Swedbank’s vision and values guide its sustainability work. The governance model and 
­operational structure are designed to support Swedbank’s purpose – a sound and sustainable 
financial situation for the many households and businesses – and steer sustainability work in 
the bank. Sustainability management is largely integrated in the Group’s operational controls 
and comprises the bank’s sustainability policies, strategy, Group goals, implementation, 
­monitoring and reporting. The goal is to maximise business and social benefits and minimise  
the negative effects of Swedbank’s business and operations.
The sustainability strategy clearly sets out Swedbank’s aim to promote 
social development and has incorporated the UN’s global sustainable devel-
opment goals and the Paris Agreement. The strategy is based on Swed-
bank’s governing framework (policies, position statements and sector 
guidelines) and is implemented in close collaboration with the business unit 
managers as specific unit goals and activities to ensure compliance with the 
Group’s goals and business planning.
Governing framework 
The Board of Directors is ultimately responsible for governance of sustain-
ability work and adopts the bank’s policies in the area (available on swed-
bank.com/sustainability). These policies apply to the Group and are 
designed to set a general standard for managing the business and ensuring 
that employees comply with current laws and regulations. The Group’s 
positions on the defence industry and climate change are decided by the 
bank’s CEO. These instructions contain more detailed regulations than a 
policy. The CEO can issue instructions for implementing a ­policy. 
Swedbank’s sector guidelines, which support the sustainability analysis, 
are established by the Head of Sustainability, who is also ultimately respon-
sible for them. The overarching goal of the sector guidelines is to promote 
sustainability in the bank’s relationships with corporate customers, port­
folio companies and suppliers to the Swedbank Group.
Group Sustainability, which is led by the Group Head of Sustainability, 
consists of an expert group of seven employees. The Group Head reports 
directly and indirectly to the Group Executive Committee and is responsible 
for developing the bank’s sustainability, environmental and human rights 
policies and guidelines as well as for the bank’s strategy, monitoring and 
reporting in the area. However, responsi­bility for implementation and per-
formance rests with the entire company. A strategic analysis of credit risks 
is conducted annually by Group Risk with recommendations to the business 
segments for their business planning. The overarching aim is to consistently 
maintain the bank’s low risk profile. In recent years climate-related risks and 
opportunities have taken on greater urgency and are now being integrated 
in the bank’s strategy and operational plans.
The Board of Directors adopts the bank’s anti-corruption policy, which 
is updated annually. Group Legal is responsible for developing guidelines 
in the anti-corruption area. Responsibility for the implementation of the 
anti-corruption policy rests with the entire organisation. To further 
strengthen the bank’s work with business ethics, an Anti-Financial Crime 
(AFC) unit was established with a focus on strengthening the fight against 
money laundering and financial crime. In addition, a Special Task Force was 
appointed to strengthen the work with the ongoing money laundering 
investigations.
Business Ethics Committee
To complement the rules on sustainability and business ethics, Swedbank 
has a Business Ethics Committee to handle these issues. Questions regard-
ing the environment, human rights, social responsibility, business ethics and 
corruption can be escalated to the committee from any part of the organisa-
tion. The committee’s role is to provide guidance on business decisions asso-
ciated with sustainability risks and in this way reduce negative impacts.
Climate and environmental management
Swedbank’s climate and environmental work is guided by an environmental 
management system with ISO 14001 certification. The purpose of the 
­system is to better organise and structure environmental work, reduce 
impacts and encourage sustainable business. The bank prepares, intro-
duces, maintains and continuously improves the system in accordance with 
the requirements of the standard. The environmental management system 
and environmental policy complement the Group’s sustainability policy and 
provide specific guidelines for the bank’s environmental work. 
The bank’s environmental policy and goals address the most significant 
impacts, show the way forward and focus attention on measures that can 
make the biggest difference for the environment. On this basis ambitious 
efforts are made to responsibly manage resources and reduce climate 
impacts in several of the bank’s core processes, including by reducing direct 
emissions from business travel, energy consumption at our branches and 
through procurement. As part of the environmental management system, 
reporting is provided continuously for the annual “Management Review” 
and for internal and external audits of the system.
Commitments
Swedbank has joined the Science Based Targets Initiative, which uses sci-
entific methods to identify and support innovative methods for companies 
to establish greenhouse gas reduction goals in line with the Paris Agree-
ment. During the year Swedbank contributed to a methodology that can 
result in scientific targets for the entire financial industry. These targets 
will guide and govern the bank’s sustainability work. Swedbank has also 
endorsed TCFD’s recommendations, which affect the bank’s governance, 
strategy, risk management, targets, metrics and reporting on the climate 
and environment. In addition, Swedbank in September signed the UN Prin­
ciples for Responsible Banking, a shared commitment to adopt the Paris 
Agreement and the UN’s Sustainable Development Goals and do more to 
deliver on them.
Board of Directors
Policies
CEO
Swedbank’s Business 
Ethics Committee
Green Bond 
­Committee
Position
Statements
Sector guidelines
Sustainability
197
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Material impacts and strategic policy documents
Key topic 
Material impact
Employees 
Customers
Society & the world 
around us
Owners & investors
Responsible lending 
x
x
x
Responsible owner 
x
x
x
Attractive employer 
x
x
x
Financially stable bank 
x
x
x
x
Profitability and competitive return
x
x
x
x
Sustainable procurement
x
Sustainable products and services 
x
x
x
Gender equality and diversity 
x
x
Prevent climate change 
x
x
x
x
Combat corruption and money laundering 
x
x
x
x
Social engagement
x
x
x
x
Sound compensation culture 
x
x
Secure IT systems
x
x
Availability 
x
Transparent reporting 
x
x
x
x
Monitoring sustainability management
Anti-corruption
•	 A “Know Your Customer” process is established.
•	 System support to monitor transactions and reconcile customer 
­databases against sanction lists.
•	 Reporting of suspected market abuse, insider trading, market 
­mani­pulation and unlawful disclosure of inside information.
•	 Suspected money laundering or terrorist financing is reported without 
delay to the Financial Intelligence Unit of the Swedish Police.
•	 Sustainability analysis in lending and investment process is measured 
and tracked.
•	 List of excluded companies is updated and continuously tracked.
•	 Ethics Committee – the number of cases is tracked.
Environment
•	 ISO 14001 certified environmental management system, progress is 
reported in “Management Review”.
•	 Sustainability analysis in lending and investment process is measured 
and tracked.
•	 Direct climate impact is measured and tracked.
•	 Carbon footprint of equity funds is tracked.
•	 List of excluded companies is updated and continuously tracked.
•	 Ethics Committee – the number of cases is tracked.
Human rights
•	 The bank’s sustainability analysis assesses risks related to human rights 
risks and in the bank’s procurement process.
•	 The supplier code of conduct is signed and tracked.
•	 Swedbank Robur’s investment analysis assesses sustainability risks.
•	 List of excluded companies is updated and continuously tracked.
•	 Ethics Committee – the number of cases is tracked.
Social conditions and employees
•	 Regular tracking of gender equality and diversity by business area.
•	 Work environments are annually inspected by outside experts.
•	 Employee surveys are periodically conducted and tracked.
•	 Sickness absence is tracked by country.
•	 Mandatory training is tracked.
•	 The bank’s social engagement is tracked by measuring and evaluating 
the outcome of various initiatives.
Sustainability indexes
The table shows Swedbank’s results in external sustainability indexes and 
investor surveys during the year. The results provide a measure of Swed-
bank’s sustainability performance based on various stakeholders’ priorities. 
During the year the bank’s score in several indexes trended downward, 
which was largely due to deficiencies in the bank’s anti-money laundering 
work. Swedbank continuously dialogues with its stakeholder groups  
on the progress being made to address the deficiencies identified in its 
­routines, systems and processes to combat money laundering and other 
financial crime.
Sustainability index/ranking
2019
2018
2017
Bloomberg Gender and Equality Index1
77
85
72
CDP (score)2
B
B
B
Dow Jones Sustainability Index (score)3
76
72
81
Equileap (ranking)4
66
9
12
Fair Finance Guide (score %)5
65
64
61
FTSE4Good ESG rating (score)6
4.6
4.4
4.1
ISS Corporate Governance (score)7
C
MSCI ESG rating (score)8
A
AA
AA
Sustainalytics (score)9
75
80
1) Scoring scale 0–100.
2) Scoring scale A–D-. Max score is A and C was the 
­average score for the financial sector in 2019.
3) Scoring scale 0–100. The score for 2018 (79) was 
revised due to shortcomings in the bank’s anti-money 
laundering work.
4) Swedbank’s ranking among a total of 3 519 companies 
in 2019. The score for 2019 was 59%.
5) Scoring scale 0–100%.
6) Scoring scale 0–5. Swedbank has qualified for 
the FTSE4Good Index.
7) Scoring scale A+ – D-.
8) Scoring scale AAA – CCC.
9) Scoring scale 0–100. Swedbank’s ESG Rating 
places it in the Outperformer level.
Strategic documents supporting  
the key topics
•	 Anti-corruption policy
•	 Impact report green bonds
•	 Sustainability policy
•	 Sustainability risk analysis in lending
•	 Occupational health and safety policy
•	 Conflict of interest policy
•	 Policy on Gender equality, Diversity 
and Inclusion 
•	 Credit policy
•	 Compensation principles at Swedbank
•	 Environmental policy
•	 Responsible investment policy
•	 Human rights policy
•	 Sector guidelines
•	 Information security strategy
•	 Position statement on defence industry
•	 Position statement on climate change
•	 Tax policy
•	 Code of conduct
•	 Supplier code of conduct
198
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

S1 Pay
Swedbank’s digital services make it easy for customers to contact the bank and do 
their banking whenever and however they want. Availability, regardless of channel,  
is one of the most important factors mentioned in customer surveys. Outside 
branches, a range of services are available on digital platforms such as the Mobile 
Bank, Internet Bank.
Availability
Availability is consistently high for every customer group, and several initiatives have 
been taken to make it easier to obtain and understand the products and services that 
the bank offers. This includes introductory videos for the Mobile Bank and Mobile 
Bank ID in eight languages besides Swedish, security information in 12 languages, 
and options that allow the hearing impaired to receive personal assistance by phone. 
Several partnerships have been established with organisations representing the 
­disabled, including Funka.nu, to design the website to work as well as possible for as 
many customers as possible. In addition, the security token is available with larger 
buttons and louder sound, and folders/product sheets are printed in Braille. To 
increase digital inclusion in older adults, digital workshops are held at several 
branches and for pensioners’ networks.
To fight digital exclusion, Swedbank is working together with the savings banks 
and savings bank foundations on the “Digital economy” initiative, the aim of which 
is to help those who feel uncomfortable trying digital services such as BankID and 
Swish. The emphasis is also on online security and avoiding fraud.
Payments and e-commerce
The payments industry is rapidly changing, driven by new technology, new providers 
and laws that are further opening up the market. To meet the increased competition 
and the shift in customer preferences from brick-and-mortar to e-commerce, Swed-
bank has developed a new full-service offer, Swedbank Pay, which brings together 
products and services from Swedbank and PayEx under a single brand in the Nordic 
market. Swedbank wants to meet the needs of both retailers and consumers for sim-
ple, smart payment solutions that produce a positive customer experience. Through 
Swedbank Pay, the bank helps companies both large and small to conveniently accept 
payment from their customers, through card acquiring, e-commerce or in stores.
Payment transactions and cards
Swedbank continues to develop digital services for payments and cards. In terms of 
cards, Swedbank is one of the largest payment processors in Europe, the fifth largest 
payment acquirer from retailers and the tenth largest in number of purchases with 
cards issued by the bank. The number of card payments has continued to rise, while 
cash withdrawals are falling. Contactless cards, which can be scanned at checkout for 
payments of less than SEK 200, continued to be distributed during the year. The same 
functionality applies to contactless payments by mobile phone for Swedish cards 
with Samsung Pay and Apple Pay, where Swedbank’s card can be used as a form of 
payment in the wallet function. This also applies to Masterpass, a digital wallet where 
customers can securely store card and delivery information for their Swedbank card. 
In this way customers can feel secure shopping online by phone or tablet. Contactless 
cards are also a more economical way to distribute bank cards, since they have a 
longer life than chip cards, which wear out faster.
Partnerships
The number of mobile payments processed through Swish continues to rise. Swish is 
a collaboration with a number of other banks through the joint venture GetSwish AB, 
which processes real-time card payments for consumers and retailers in Sweden, 
including Swedish e-commerce companies. Through a strategic collaboration 
between Swedbank and Intrum Justitia, customers having financial difficulties can 
get help to prevent and manage problems as early as possible. Another collaboration 
with other banks is ECPAT Sweden, a children’s rights organisation that fights the 
commercial sexual exploitation of children, where the focus is on stopping sellers of 
pornography by preventing payments through the financial system.
Sweden
2019
2018
2017
Number of card purchases (million)
1 372
1 320
1 248
Branches 
168
186
218
Number of digitally active customers (million)1
3.1
3.0
2.9
Share of sales in digital channels, (%)2
54
50
48
– of which Daily Banking products3
29
29
29
– of which Savings & Pension
85
82
81
– of which Private Lending
17
11
6
– of which Corporate
7
6
5
– of which Insurance
11
10
10
Swish payments (million)
248
192
130
Prepaid cards (number)4
16 172
17 334
16 841
1) Number of customers with at least 3 logins, including shake balance inquiries, in a digital channel in the last 
month. Including savings banks.
2) The numbers for 2017 and 2018 are revised.
3) Refers to cards and payments.
4) Number of activated cards. Prepaid cards are available to municipalities, county councils, authorities and 
­state-owned enterprises. The service s used to pay out financial assistance and benefits to people without an 
ID number or bank account, but also as a collective debit card for employees of schools, public housing, social 
­services etc. The card often replaces cash handling and can be used in all stores and ATMs and s used by about 
half of the country’s municipalities. 
Estonia
2019
2018
2017
Number of card purchases (million)
232
211
 192
Branches 
26
33
34
Accessible branches and representation points
30
31
32
ATMs
386
391
392
Number of digitally active customers (million)1
0.5
0.5
0.5
Share of sales in digital channels, (%)2
66
54
47
– of which Daily Banking products3
66
52
47
– of which Savings & Pension
56
63
52
– of which Private lending
95
68
60
– of which Corporate 
39
15
10
– of which Insurance
66
54
47
Latvia
2019
2018
2017
Number of card purchases (million)
192
165
 142
Branches 
30
33
36
Accessible branches and representation points
29
25
26
ATMs
366
367
389
Number of digitally active customers (million)1 
0.6
0.6
0.5
Share of sales in digital channels, (%)2
59
53
48
– of which Daily Banking products3
54
47
40
– of which Savings & Pension
71
46
42
– of which Private lending
79
64
58
– of which Corporate 
30
6
3
– of which Insurance
77
77
68
Lithuania
2019
2018
2017
Number of card purchases (million)
204
161
 132
Branches 
43
59
63
Accessible branches and representation points
57
59
59
ATMs
410
416
418
Number of digitally active customers (million)1 
0.8
0.7
0.6
Share of sales in digital channels, (%)2
69
66
59
– of which Daily Banking products3
67
67
53
– of which Savings & Pension
65
77
69
– of which Private lending
70
54
42
– of which Corporate 
39
14
10
– of which Insurance
75
72
43
1) Number of customers with at least 3 logins, including shake balance inquiries, in a digital channel in the last month.
2) The numbers for 2017 and 2018 are revised.
3) Refers to cards and payments.
199
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

S2 Save/Invest
Swedbank and Swedbank Robur believe that responsible and sustainable invest-
ments make a difference for long-term sustainable development. Sustainability has 
become an increasingly important and integral part of asset management, and 
demand is increasing. Various forms of sustainable savings are offered by the asset 
management today.
Sustainability in Swedbank Robur’s funds
During the year Swedbank’s subsidiary Swedbank Robur adopted a new vision: to 
become world leader in sustainable value creation. This vision will be achieved by 
­making it easy for customers to make sustainable investment decisions. Sustainability 
criteria have been introduced in more funds and new products with sustainability 
content have been launched. Swedbank Robur has played an active role in fund indus-
try forums to improve sustainability information to customers. In addition, adjust-
ments have been made to meet forthcoming EU legislation on sustainable finance.
As a large owner on the Stockholm Stock Exchange and with holdings in companies 
both in and outside Sweden, Swedbank Robur has a responsibility and an opportunity 
to have an impact. Through dialogue and active ownership, the fund management 
company encourages companies to address sustainability and governance.
Swedbank Robur has continued to refine its responsible investment policy, which 
serves as the basis for the sustainability work in all its funds. In the policy Swedbank 
Robur describes how its investments are guided by the UN’s Sustainable Develop-
ment Goals (SDGs). In October the Ethica Global and Ethica Sweden funds changed 
their names to Transition Global and Transition Sverige. These funds have invested in 
companies that embrace sustainability and whose products and services contribute 
to the SDGs. The mission of these funds has been broadened to include investing in 
companies with the potential to shift towards the SDGs. In October Swedbank Robur 
launched a new fund, Access Edge Emerging Markets, which takes climate issues 
into account.
Integrated asset management
Sustainability is integrated in the investment philosophy of the entire asset manage-
ment, and sustainability criteria are part of the investment analysis in fixed income, 
close to index funds and fundamentals-based equity funds. The responsible invest-
ment policy clarifies the sustainability content of the funds and explains the process 
for expanded risk assessments. Swedbank Robur’s sustainability analysts visit com-
panies, evaluate their risks and opportunities, and suggest development areas. This 
work is factored into investment analysis and stock selection. Certain funds have 
actively invested in companies that address environment and climate change issues, 
human rights, fair labour and business ethics. Investments in green bonds increased 
by over 80 per cent compared to the previous year, with just over SEK 21bn owned in 
the fourth quarter. Every portfolio manager has presented the sustainability work of 
their fund to representatives of Swedbank Robur’s management and the sustainabil-
ity analysis team. Fund managers and sustainability analysts have performed a large 
number of dialogues with companies to further develop the sustainability work of 
their funds and Swedbank Robur as a whole.
Impact as an owner
Swedbank Robur is an active owner and maintains continuous contact with the 
boards and managements mainly in companies in which the funds are major share-
holders. The starting point for companies that commit to sustainable value creation 
is a solid strategy and control of their operations, this includes assessment of oppor­
tunities and risks. This benefits the companies as well as fund investors. Swedbank 
Robur impacts companies around the world – partly on its own and partly in collabora-
tion with for example Principles for Responsible Investments (PRI’s) investor groups, 
analysis providers and lobbying groups. In addition to working directly with com­
panies, a number of themes have been identified where entire industries can be 
impacted. Dialogues during the year touched on climate change and renewable 
energy, deforestation, diversity, AML and responsibility in the gambling industry.
Transparency is key to Swedbank Robur’s ownership work and is constantly 
improved. Detailed information on Swedbank Robur’s voting at annual meetings in 
Swedish and international companies and on its participation in nomination commit-
tees has since long been part of the annual reporting. The new shareholder directive 
that took effect during the year increases the responsibilities and transparency 
requirements of shareholders in this regard. To accommodate the new directive, 
Swedbank Robur’s ownership policy, which has been public since 1996 and encom-
passes all its funds, has been renamed Swedbank Robur’s principles for shareholder 
engagement. Important issues from a shareholder perspective include board compo-
sition, management compensation, including share-related incentive programs, sus-
tainability and that the companies have good systems for governance, control and 
information disclosure. Swedbank Robur promotes boards with the right combination 
of competence, experience and diversity, including gender parity, and a balance 
between independent and non-independent directors. Each board must also actively 
address sustainability issues relevant to their company. In companies where Swed-
bank Robur has been on the nomination committees, the average share of women has 
increased compared to the starting point and as in previous years it was higher than 
for listed companies. In US companies, the fund management company has voted for 
several shareholder proposals on e.g. climate change, the environment and improved 
corporate governance. 
Exclusions 
Swedbank Robur does not invest in companies that manufacture, modernise, sell or 
buy cluster munition, antipersonnel mines, chemical and biological weapons, and 
nuclear weapons. In 2018 a decision was made to exclude companies that generate 
more than 5 per cent of their revenue from tobacco products, this was implemented 
on January 1 2019. The criteria for exclusion of companies that produce coal were 
tightened in November from previously 30 per cent to five per cent of sales. Compa-
nies that produce pornographic material are also excluded. Serious violations of inter-
national norms and conventions aimed to protect people and the environment have 
also been ground for exclusion if companies have not demonstrated a willingness to 
change. Several funds have applied more extensive criteria and excluded products 
such as alcohol, tobacco, gambling, weapons and pornography, as well as fossil fuels.
Asset management1
2019
2018
2017
Total assets under management (SEKbn) 
1 530
1 266
1 252
– of which in funds (SEKbn) 
1 083
857
871
Assets under management with consideration 
to sustainability (%)2
100
100
29
Assets under management with extended 
exclusion criteria and/or positive inclusion 
(%)3
54
50
34
Assets under management where ESG 
aspects are crucial for investment (%)4
5
5
5
Investments in sustainable bonds (SEKbn)
21
12
Charitable donations from Swedbank Robur 
Humanfond5
45
42
45
1) Asset management in Swedbank Robur as of 31 December 2019.
2) Share of total assets under management. Since 2018 all assets under management are subject to Swedbank 
Robur’s responsible investment policy, risk assessments and exclusion on ethical and sustainability grounds.
3) Share of total assets under management. Assets under management with more extensive exclusion criteria 
than in the responsible investment policy. Analysis of sustainability aspects, international norms or contro­
versial products has been done prior to investment.
4) Share of total assets under management which in addition to exclusions require an analysis of sustainability 
aspects and/or positive sustainability assessments.
5) There were 74 affiliated charitable organisations. Total distributions since the fund’s inception is about 
SEK 1.2bn.
Engagement work in funds (no.)
2019
2018
2017
Companies contacted on governance and 
­sustainability issues1
645
425
299
– of which companies listed in Sweden 
196
74
81
– of which companies listed outside Sweden
449
351
218
– of which companies contacted  
by own ­analysts
157
186
160
– of which contacted by fund managers
304
No. of contacts, own analysts
229
265
261
– of which meetings2
162
142
96
No. of contacts, fund managers
829
– of which meetings2
827
Participation in annual general meetings 
429
424
336
– of which in companies listed in Sweden3 
229
232
195
– of which in companies listed outside Sweden
200
192
141
Participation in nominating committee4
94
91
81
– Share of women on corporate boards (%)5,6,7
37
38
37
1) Total figure adjusted for duplications. Contacted by Swedbank Robur’s analysts, fund managers and corporate 
governance teams: 534; by suppliers: 217 (84); and as part of investor collaborations: 125 (155).
2) Teleconferences and face-to-face meetings.
3) Including 10 (8) general meetings of privately held companies.
4) Of which 93 (90) in companies publicly listed in Sweden and 1 (1) listed in Finland.
5) In boards where Swedbank Robur participated in the nomination committee. 
6) The nomination committee companies vary from year to year. The baseline for the years 2017–2019 was on 
average 34%, 35% and 36%, which is an annual increase of 3 (2017), 3 (2018) and 1 (2019) percentage points.
7) Including CEO if elected as board member at AGM.
200
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Carbon footprint of the funds
Swedbank Robur has increased its collaborations on climate issues. Through net-
works such as Swedish Investors for Sustainable Development (SISD), Global Inves-
tors for Sustainable Development (GISD), Climate Action 100+ and International 
Investors Group on Climate Change (IIGCC), Swedbank Robur has worked actively 
to encourage governments and companies to adopt sustainable solutions. Climate 
change is included in sustainability analysis and corporate engagement. Companies 
with especially high emissions and climate impacts have been contacted and asked to 
accelerate their transition. Swedbank Robur annually reports how much CO2 the com-
panies in its equity and balanced funds emit in relation to their income. Swedbank 
Robur has previously endorsed TCFD’s recommendations in order to develop strate-
gies and goals, risk management, climate metrics and reporting routines, and to 
determine how the companies in its funds are affected financially by climate change.
At the end of the year Swedbank Robur conducted a climate analysis of its holdings 
in corporate bonds and equities in sectors most affected by the transition to a fossil­-
free society. The analysis was based on the Paris Agreement Capital Transition 
Assessment (PACTA), a tool developed for institutional investors by the Two Degree 
Investor Initiative with support from PRI. The analysis showed that Swedbank Robur 
is underweight in comparison with the global market in oil and gas, coal, nuclear 
power and auto manufacturing, in both equities and bonds. This reduces the risk that 
Swedbank Robur will be invested in business models that are not aligned with climate 
transition, also known as stranded assets. The aim is to gradually increase invest-
ments in sectors with lower CO2 intensity, e.g. renewable energy, in order to reduce 
the funds’ carbon footprint and contribute to a sustainable transition.
Climate footprint of selected funds compared 
with their respective indexes1
tonnes CO2e/
SEKm, fund
tonnes CO2e/ 
SEKm, index
Three largest funds (assets under management, SEKm)
– Allemansfond Komplett (61 178)
5
19
– Aktiefond Pension (48 203)
28
19
– Kapitalinvest (37 157)
7
19
Regional equity funds (assets under management, SEKm)
– Sverigefond (14 068)
6
6
– Europafond (8 200)
12
19
– Globalfond (24 013)
7
25
– Amerikafond (10 746)
4
22
– Asienfond (3 739)
33
42
Transition funds² (assets under management, SEKm)
Transition Global3 (3 674)
5
22
Transition Sweden3 (8 146)
8
6
Global Impact (1 949)
11
25
1) The calculations are based on fund holdings as of 30 June 2019. Method in accordance with TCFD’s recommen­
dations; the result shows ”Weighted average carbon intensity Scope 1+2”
2) Funds whose mission is to contribute to a sustainable transition and the UN’s Sustainable Development Goals.
3) The Ethica Global and Ethica Sweden funds changed names during the year to Transition Global and Transition 
Sweden.
Swedbank Insurance
Swedbank Insurance, a wholly owned subsidiary of Swedbank, offers pension, 
endowment and personal/risk insurance for consumers and businesses. Swedbank 
Insurance is actively committed to a sustainable society and environment and is rais-
ing the level of sustainability in its customer offers and internal work. The insurance 
company is trying to increase awareness of sustainable investments in order to help 
customers make conscious choices. 
For the third consecutive year Swedbank Insurance has published a report on its 
sustainability work and what it is doing to make sustainability a natural part of its 
investment offer for customers who save for retirement in traditional, variable uni-
versal life or unit linked insurance. In accordance with the recommendation of the 
industry organisation Svensk Insurance to report the insurance company’s carbon 
footprint, the company also published the carbon footprint of its equity portfolio. 
To strengthen and expand its work with sustainability, and the organisation, the 
new position of head of sustainability was created during the year.
Structured products
Until June 2019 Swedbank offered savings in the form of structured products, both 
with or without capital protection, where the return is tied to various asset classes 
and markets, so-called SPAX Nu and Bevis Nu. Due to declining interest from the 
Swedish market, Swedbank has chosen to stop producing and distributing struc-
tured products and is reprioritising resources to other products and services in the 
savings area.
Structured products with sustainability 
profile, SEKm
2019
2018
2017
SPAX Europa Hållbar
52
78
SPAX Global Hållbar1
193
208
121
SPAX Hållbar Horisont
89
SPAX Jämställdhet
11
SPAX Norden Hållbar
9
SPAX Pension
42
SPAX Världen Hållbar
12
243
Aktiebevis Autocall Svenska Bolag
9
Aktiebevis WinWin Svenska Bolag
80
1) SPAX Global Sustainable was issued 30 times in 2019.
201
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

S3 Finance
Lending is part of Swedbank’s core business. Swedbank promotes responsible long-
term lending by assessing each customer’s long-term financial situation and advising 
them on sustainability risks.
Amortisation 
In Sweden the FSI has taken measures in the form of tighter amortisation require-
ments to slow the rise in consumer debt in recent years, which is in line with Swed-
bank’s responsible lending approach. The amortisation table shows amortisations 
in relation to loan-to-value.
Digitisation of the bank’s lending processes
Swedbank evaluates and further improves its availability to meet customers’ various 
needs. To make lending services even more available and everyday banking easier, 
­digital offers are being improved as well, including the digital processes used for con-
sumer credit and loan commitments. A plan to digitise and automate the process for 
customers who want to increase their mortgage was implemented during the year. 
This was requested and has been appreciated by customers.
Sustainability analysis in lending
Sustainability risks are taken into consideration in all credit decisions. A detailed sus-
tainability analysis is done for corporate loan applications over SEK 5m in Sweden and 
EUR 0.8m in the Baltic countries. For other customers a basic assessment is made of 
sustainability related factors based on the nature and complexity of the business. 
During the year an external analysis was integrated in the sustainability analysis tool 
to assess the customer’s material aspects, risks and how the customer manages 
them. Sustainability goals were introduced in the incentive programme for account 
managers for the bank’s large corporate customers, in line with the external analysis. 
The sustainability analysis is supported by 13 sector guidelines. The guidelines 
serve as a tool to gain better insight into sustainability problems in various industries 
and provide tips and advice on which aspects should be addressed with the customer. 
Swedbank also has two position statements on climate change and the defence 
industry, which describe how the bank should respond to issues in these two areas. 
In the climate statement, Swedbank states that it will not directly finance coal-fired 
power plants or finance companies that generate over 30 per cent of their revenue 
from coal production. Swedbank’s position statement serves as the basis for the 
Group’s exclusion list of companies it will not work with. Companies can be excluded if 
they have violated various international norms on human rights, anti-corruption, fair 
labour and environment. 
The dialog with customers on real estate-related sustainability risks is supported 
by a checklist. Because real estate accounts for nearly half of Swedbank’s lending, this 
is a strategic sector to focus on in order to maximise the impact of the bank’s sustain-
ability risk management. 
Cases found to have an elevated sustainability risk are escalated to the Ethics 
Committee for a more thorough assessment and guidance. The committee handles 
cases involving the environment, human rights, social responsibility, business ethics 
and corruption. The cases submitted to the committee in 2019 concerned ethical 
dilemmas related, e.g., to defence equipment, taxes, cannabis and gambling.
Framework for green lending
Swedbank established a framework for green bonds in 2017. The framework clarifies 
and categorises financing that contributes to a reduced environmental impact. After 
the framework was established, the bank issued its first green bond, with a volume of 
EUR 500m. In 2018 Swedbank issued its second green bond, with a volume of SEK 
2bn, also with a five-year tenor. The loan volume and expected impact are shown in 
the Swedbank Green Bond Impact Report, which is available to the public on Swed-
bank’s official website. The invested capital is mainly used to finance sustainable 
investments in real estate and renewable energy sources.
Sustainability linked products
Swedbank encourages sustainable business models and tries to offer financing prod-
ucts and services that contribute to the transition to a more sustainable society.
Offers for private customers
• Green mortgages  Swedbank wants to promote sustainable living. The Bank there-
fore offers customers who live in green housing a discounted mortgage rate.
• Green car loans  Swedbank wants to encourage customers to buy cars that pollute 
less, to try and reduce average emissions. Customers are therefore offered a discount 
when they borrow for a more environmentally friendly car that meets certain criteria.
• Solar loans  Discounted interest rate on loans for solar panels, which produce lower 
electricity costs.
Offers for corporate customers 
• Green loans  Green loans, which are part of Swedbank’s total financing offer, pro-
mote the environment and a sustainable society. They offer a flexible form of financ-
ing that supports positive climate impacts and creates solid and sustainable compa-
nies. Green loans are flexible in terms e.g. of tenor and volume, and specific terms and 
requirements are customised for each borrower and the underlying purpose of the 
financing.
• Sustainability linked loans  These loans differ from ordinary green bonds in that 
they can be used for general business purposes rather than a specific purpose. The 
loans are tied to the borrower’s sustainability performance, which is measured based 
on social or environmental criteria. How the company performs is thereby tied to the 
loan’s underlying margin in relation to predetermined sustainability goals. Improved 
performance reduces the interest rate and financing costs. If the goals are not met, 
the rate may rise.
• Green, social and sustainable bonds  Swedbank has a strong focus on sustainable 
bonds for capital market clients. Swedbank Debt Capital Market, in the business area 
Large Corporates and Institutions, offers green bonds, social bonds and sustainability 
bonds. This benefits issuers who are seeking green financing, such as businesses and 
municipalities, as well as investors who actively express a demand for sustainable 
investments, such as insurance companies, pension managers and fund managers.
• Sustainability linked bonds  Swedbank Debt Capital Market also offers sustain­
ability linked bonds, where the coupon is tied e.g. to environmental goals or specific 
ESG ratings. The structure differs from traditional green bonds since the income is 
used for general business purposes rather than a specific purpose and does not 
require a green framework or regular reporting.
• Sustainability related advice  Swedbank Debt Capital Market offers sustainability 
related advice to issuers. One of the products is a sustainability related peer review 
based on data from external sources. Swedbank also offers analysis and advice on 
practically any sustainability question through our partnership with Kepler ­Cheuvreux. 
Swedbank Macro Research continuously updates national sustainability indicators, 
which measure the progress of the Nordic and Baltic countries in meeting the UN’s 
Sustainable Development Goals.
Private lending (Sweden)
2019
2018
2017
Green mortgages (SEKm)1
52
Green car loans (SEKm)1
3
Solar loans (SEKm)2
99
Households with loan-to-value ratios above 
70% of property value (%) 
16
16
11
Share of households with loan-to-value ratios 
above 70% that amortise (new lending)3
99
99
99
Share of households with loan-to-value ratios 
above 70% that amortise (total portfolio) 
98
97
96
1) Portfolio volume.
2) Portfolio volume, including the bank’s energy loans to finance residential energy savings.  
Excluding the Savings banks.
3) New lending refers to all mortgages paid out in the fourth quarter of each year.
202
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Corporate lending 
2019
2018
2017
Corporate lending (SEKm) 
553 095
547 724
521 001
Lending renewable energy (SEKm)1
10 489
7 756
7 466
Customers with renewable energy loans 
(number)1
163
158
138
Green loan portfolio (SEKm) 
13 958
10 319
7 732
– of which green property loans2
11 541 
8 471
5 431
– of which wind power loans3
2 417
1 848
2 301
Sustainability linked loans (SEKm)
3 533
Green bonds outstanding (SEKm)4
7 216
7 133
 4 912
Transactions arranged by Swedbank during 
the year (number)5
51
30
12
Total volume arranged by Swedbank during 
the year (SEKbn)5
25.3
15.14
3.54
Share in relation to total volume arranged by 
Swedbank during the year (%)5
14
11
3
Total volume arranged by Swedbank since 
inception (SEKbn)5
54.6
29.36
14.26
1) Total renewable energy lending refers to financing of hydroelectric, wind, solar, district heating with biomass 
and biogas.
2) Environmentally certified and/or energy-efficient properties.
3) Included as part of Lending renewable energy.
4) Swedbank AB issuer (funding of wind power and green buildings).
5) Swedbank AB lead manager (funding of e.g. solar, wind and hydropower).
6) Revised compared with 2018 to only show Swedbank’s share of total issuance volume.
Sustainability analysis corporate lending 
2019
2018
2017
Swedish Banking (no. of approved loan 
­applications) 
60 237
42 740
34 2971
Baltic Banking (no. of analyses)2
2 453
2 102
1 873
Large Corporate and Institutions (no. of 
approved loan applications) 
1 403
1 448
1 291
Total number of cases escalated to Ethics 
Committee
10
13
11
– of which customer related cases
8
– of which policy and governance related 
cases
2
1) Also includes credit cases handled by Swedbank Finans as of December 2017.
2) Number of sustainability analyses reported, not number of approved applications (correction compared with 2018).
Share of corporate lending by country, %
2019
2018
2017
Sweden
85
86
86
Estonia
6
5
5
Latvia
2
2
2
Lithuania
4
3
3
Norway
3
3
3
Other 
01
01
01 
1) The share is less than 0.5%.
Share of corporate lending by sector, %
2019
2018
2017
Property management 
46
42
42
Agriculture, forestry and fishing 
12
13
13
Manufacturing 
8
9
9
Retail 
6
6
6
Shipping 
3
4
5
Public sector and utilities 
4
4
4
Construction 
3
4
4
Corporate services 
4
5
5
Transportation 
3
3
3
Finance and insurance 
3
2
2
Hotel and restaurant 
2
2
1
Information and communications
2
2
2
Other corporate lending 
4
4
4
S4 Procure 
The central procurement process ensures that reported purchases over EUR 50 000 
are handled with support from the bank’s central procurement unit. Swedbank has 
signed additional framework agreements in the last three years, which has reduced 
the total number of procurement cases, since call-offs have been possible under 
existing framework agreements. This is especially evident in the consulting area. 
Swedbank’s business areas own supplier contracts and demand specifications locally. 
As a result, some contracts can be entered into without the central purchasing unit’s 
involvement. 
Swedbank is a service company and has a supplier base comprised of nearly 12 000 
active suppliers, mainly in Europe. The bank’s annual procurement costs amount to 
nearly SEK 9.7 billion, divided into five categories: banking services and infrastructure, 
real estate and rents, information and communication technology, marketing and 
professional services (HR).
Supplier Code of conduct for suppliers 
Risks related to sustainable procurement for Swedbank include reputational and 
quality risks. To minimise them, the central procurement unit requires all suppliers  
to sign Swedbank’s supplier code of conduct as part of a binding contract. The code 
governs important areas such as human rights, labour practices, business ethics and 
the environment. In addition, certain sustainability issues are included directly in the 
specific tender, such as relevant certifications and process descriptions.
Sustainability assessment in procurement
As part of the procurement process, an initial screening is done of each supplier, where 
potential sustainability risks are assessed, taking into account country and sector risks 
as well as business critical risks e.g. procurement costs and reputational risks. Suppli-
ers that are selected in this stage are included in Swedbank’s digital supplier platform 
for further sustainability assessment. The platform was established in 2018 and is 
used to evaluate suppliers in relation to the sustainability requirements in the supplier 
code of conduct. Suppliers are specifically analysed based on approval of the supplier 
code, country and sector assessments, and a self-assessment. The primary purpose 
is to support suppliers in mitigating sustainability risks, and to identify and spotlight 
sustainability opportunities. Employees in the central procurement unit received 
­sustainability asessment training during the year through the digital platform.
Monitoring and third-party audits
Existing suppliers are mainly monitored through continuous dialog. In this way Swed-
bank gains a better understanding and can support suppliers with their sustainability 
challenges and draw attention to opportunities. Furthermore, site visits are made if 
needed based on the results of the sustainability assessment and to monitor compli-
ance with the agreed-upon actions.
Swedbank has established a process for supplier visits. After a visit, a plan of action 
can if necessary be established together with the supplier, which then becomes the 
basis for follow-up. 
Swedbank will enter into an agreement with an external partner to conduct exten-
sive third-party supplier audits on behalf of the bank, e.g. when a supplier visit has not 
been satisfactory, and also assist with third party assessments and give recommen-
dations. These activities and results will also be incorporated in the digital platform 
used to compile relevant information and assessments of each supplier in one location. 
An established escalation process is in place for suppliers that are identified as a 
high risk in the sustainability assessment. These cases are escalated to the Procure-
ment Sustainability Council, which decides on measures against the supplier and 
whether its contract should be terminated. The Business Ethics Committee can also 
be consulted if ethical dilemmas arise.
Supplier audits
2019
2018
2017
Number of suppliers
11 753
12 444
13 551
Total procurement volume (SEKm) 
9 680
8 354
9 027
No. of reported purchases that have under-
gone a sustainability assessment
199
155
375
Share of reported purchases that have under-
gone sustainability assessment (%)1
62
61
Supplier visits conducted (no.)2
1
30
1) Percentage based on total purchase price.
2) One supplier visit was conducted during the year to an existing supplier.
203
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

H5 Environmental impacts
Society today faces a major transition if we are going to significantly reduce emis-
sions in a short time and at the same time prepare for the consequences of a changing 
climate. The aim of the Paris Agreement is to keep the global temperature rise well 
below 2°C but pursue efforts to limit it to 1.5°C. The financial sector and capital 
­market can play a key role in redirecting capital to the sustainable solutions that 
are needed to limit climate change and also help society adapt to climate change.
ISO 14001
Swedbank works actively to reduce the environmental impacts its operations give 
rise to. Swedbank’s sustainability policy and environmental policy are adopted 
­annually by the Board of Directors. Environmental work is governed by an ISO 14001 
certified environmental management system. The subsidiaries Swedbank Robur, 
Swedbank Insurance, Swedbank Hypotek, Sparia, Swedbank Fastighetsbyrå and 
PayEx are covered by Swedbank’s ISO 14001 certification. The management system 
enables the bank to work in a structured way to continuously reduce its negative 
impacts and promote the positive ones. This means those generated indirectly 
through financing, investments, payments and procurement, and directly through 
Swedbank’s internal operations.
Products with an environmental focus
Swedbank launched several new products during the year to promote a sustainable 
economy and make it easier for customers to make sustainable choices. A solar loan 
was introduced to enable customers to install solar panels and in that way reduce 
their electricity costs while contributing to the production of renewable energy.  
The bank also launched green car loans to encourage customers to buy vehicles that 
produce less emissions. 
Swedbank has two outstanding green bonds issued within its green framework. 
The green loans that serve as a basis for the bonds provide environmental benefits 
and promote a sustainable economy. Swedbank also works actively to reduce climate 
impacts from its leasing business, where it is one of Sweden’s largest fleet owners.  
As part of AutoPlan fleet administration, customers receive help with drafting green 
car policies and sustainability issues, and with measuring and reporting their carbon 
footprint. Swedbank also has its own company cars and works actively to reduce the 
environmental impact. 
Environment goals
To limit its climate impact, Swedbank works to lower greenhouse gas emissions. 
An important commitment is the Science Based Targets Initiative, which requires 
the bank to implement targets for its indirect emissions in accordance with the Paris 
Agreement. There is still no established method for the financial sector to calculate 
emissions for various types of asset classes. During the year Swedbank participated 
in the development of a method that will enable the sector to set climate targets in 
line with the Paris Agreement and in so doing support the transition to a fossil-free 
society. 
The bank’s climate impacts are monitored each year and since 2010 this informa-
tion has been published in a separate report, though climate change was an important 
parameter in Swedbank’s environmental reporting as far back as 1996. The bank 
strengthened its climate work in 2019 by adopting Group-wide operational targets 
for lower emissions. They cover both direct greenhouse gas emissions, where the 
goal is to reduce emissions by 20 per cent between 2017–2022, and intensity targets 
to reduce energy consumption in the bank’s offices by 10 per cent per m² between 
2017–2021 and 15 per cent in 2017–2025. As a result of the new targets, based on 
measurements in 2017, as well as the breakdown and requirement to report both 
market-based and location-based emissions, the bank has decided to change the base 
year for climate calculations from 2010 to 2017.
Climate impact
Swedbank´s emissions are largely generated by energy consumption in the bank´s 
offices and through business travel as displayed in the following tables. The bank’s 
internal property department encourages the use of energy-efficient and space-­
saving properties and works continuously with property owners to adopt energy 
conservation measures in the buildings where the bank operates. The bank works 
continuously to increase the percentage of meetings held using digital platforms, 
and by doing so free up more time and resources for the bank’s employees as well 
as reduce the environmental impact.
Swedbank participated in 2019 in the construction of one of Sweden’s largest­-
ever solar park, in an area of 13 hectares, the size of about 22 football pitches, outside 
Linköping, (estimated production is 11.5 GWh, per year).
In addition to the measures it has taken to achieve emission reductions, Swedbank 
has purchased carbon offsets for its remaining emissions. The offsets support Vi 
Agroforestry, which contributes to carbon storage through tree planting, agro­
forestry and sustainable cultivation methods. 
Greenhouse gas emissions1, tonnes CO2e
2019
2018
2017
Total emissions 
25 014
26 983
29 342
Reduction target 2022, 20%2
23 474
23 474
23 474
Carbon offsetting3
25 014
 6 500
Total emissions after carbon offsetting
0
20 483 
29 342
Emissions by scope according  
to GHG ­protocol
Emissions scope 14
1 020
1 017
780
Emissions scope 25
6 067
6 014
7 771
Emissions scope 36
17 927
19 952
20 791
Emissions by country
Emissions, Sweden 
14 692
16 151
16 743
Emissions, Estonia
3 559
3 797
3 940
Emissions, Latvia 
2 425
2 602
3 321
Emissions, Lithuania
2 908
3 511
4 391
Emissions, other7
1 430
922
947
Energy-related emissions according  
to Scope 2
Market-based8
6 067
6 014
7 771
Location-based
18 801
21 588
23 395
1) Carbon dioxide, methane and nitrous oxide. In all GHG calculations, Swedbank has used Ecometrica software 
through a system called Our Impact, administered by U&We. Emissions are reported in accordance with the 
Greenhouse Gas Protocol (World Resources Institute).
2) The base year is 2017, when Swedbank reported 29 342 tonnes of CO2 emissions.
3) Carbon offsets relate to solar energy and carbon storage through sustainable tree planting.
4) Swedbank’s direct emissions. Based on fuel consumption in company cars and refrigerant gas loss. Emissions 
from ­cooling equipment are estimated using operational controls (based on weight and type of cooling medium). 
Emissions from company-owned vehicles are estimated with the help of the bank’s financial controls. None of 
Swedbank’s Scope 1 emissions are biogenic.
5) Swedbank’s indirect emissions in the form of electricity consumption and heating/cooling. Emissions are 
­estimated based on operational controls in Swedbank’s offices/ buildings. 
6) Swedbank’s other indirect emissions from business travel, security transports, paper consumption, water 
­consumption and waste. None of Swedbank’s Scope 3 emissions are biogenic.
7) Norway, Finland, Denmark, USA, Luxembourg and China.
Emissions by category, tonnes CO2e 
2019
2018
2017
Sweden
Office premises 
2 555
2 579
3 040
Business travel 
11 959
13 393
13 536
Other emissions1
178
179
167
Estonia
Office premises 
1 718
1 807
1 888
Business travel 
1 806
1 937
1 999
Other emissions1
35
53
53
Latvia
Office premises 
1 284
1 386
2 151
Business travel 
1 069
1 137
1 084
Other emissions1
72
79
86
Lithuania
Office premises 
888
1 104
1 620
Business travel 
1 904
2 264
2 606
Other emissions1
116
143
165
Other countries
Office premises 
652
373
356
Business travel 
776
547
588
Other emissions1
2
2
3
1) Security transports and paper consumption.
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Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Other environmental data
2019
2018
2017
Energy consumption in our offices (MWh) 
93 087
105 425
114 658
– of which Sweden
51 614
62 153
70 689
– of which Estonia
17 612
18 268
19 150
– of which Latvia
11 316
11 915
11 575
– of which Lithuania
11 453
12 096
12 274
– of which Other
1 092
993
970
Electricity consumption in our offices (MWh) 
51 687
57 598
65 379
Renewable electricity as a share of total 
­electricity consumption (%)1
82
90
82
Paper consumption (tonnes) 
1 100
1 184
1 075
Water consumption (m3/FTE) 
7
8
7
Recycled waste (tonnes) 
437
406
401
Incinerated waste (tonnes) 
315
335
317
Landfill waste (tonnes) 
153
276
220
Hazardous waste (tonnes)2
3
Number of digital conferences (million)3
0.42
0.31
Number digital conference attendees 
(­million)3
1.69
1.20
Average number of digital ­conference 
­attendees3
4
4
1) Renewable energy refers to wind, biomass and hydroelectric.
2) Refers to Sweden, began being measured in 2019.
3) Digital meetings through Skype.
Internal energy consumption1
2019
2018
2017
Total emissions from energy consumption 
(tonnes CO2e/MWh) 
0.07
0.06
0.07
Energy consumption per employee  
(MWh/FTE) 
5.7
6.5
8.1
Energy consumption per m2  
(MWh/m2) 
0.236
0.237
0.251
Energy reduction target of 10% per m²  
2017–2021 (MWh/m²) 
0.226
0.226
0.226
Energy reduction target of 15% per m²  
2017–2025 (MWh/m²) 
0.213
0.213
0.213
1) Swedbank’s indirect energy consumption consists of consumption of energy, heating, cooling and gas.
Comparative figures, tonnes CO2e
2019
2018
2017
Total emissions per employee 
1.52
1.68
2.02
Scope 1 and 2 emissions per employee 
0.43
0.44
0.59
Total emissions per office space 
0.063
0.061
0.064
Scope 1 and 2 emissions per m2 office space
0.018
0.016
0.019
Auto leasing AutoPlan
2019
2018
2017
Leasing of vehicles (tonnes CO2e)1
195 219
196 497
198 120
Total number of leased cars
43 787
42 839
43 537
Average emissions, new cars CO2 (g/km)2
110.6
111.9
112.5
Average emissions, total CO2 (g/km)2
117.0
115.1
119.0
Average emissions, new company cars in 
Swedbank CO2 (g/km)
80
92
93
1) Emissions based on fuel consumption and fuel type per vehicle over one year.
2) Refers to company cars administered bySwedbank AutoPlan.
S6 Employees
Like many banks and other companies, Swedbank is undergoing change. Digitisation 
is happening rapidly and new technology and business models require new skills.
Skills development
For Swedbank to remain attractive and competitive in the future, it is critical that 
every employee is given the opportunity to develop, to add new skills and to take on 
new challenges. Each employee creates a personalised development plan for today 
and the future together with their manager. A large range of internal and external 
training options is available. LinkedIn Learning, a portal that gives all employees 
access to 8 000 digital courses, was added during the year. Day-to-day work and the 
interaction with other employees also builds experience and skills. Swedbank has 
a job board to promote internal mobility and opportunities for a career in the bank.
Internal training1
2019
2018
2017
Total number of training hours2
556 983
465 165
449 083
Training costs (SEKm)
130
123
121
Training hours per full-time employee 
(­average FTE)2 
37
32
31
– training hours men 
28
18
18
– training hours women 
44
24
25
– training hours managers 
45
28
26
– training hours specialists 
32
21
10
Training programmes in Ethics (number)3
3 693
3 070
Training programmes in Sustainability 
(­number) 
15 896
2 837
Training programmes in Anti-money launder-
ing and counter-terrorist financing (number)
15 976
23 292
Number of advisors with Swedsec license4
4 023
4 035
4 062
Number of employees who completed the 
annual knowledge update (ÅKU)4
5 743
6 143
3 971
1) The Board of Directors received training in 2015 in ethics and insider rules and in 2019 in new security laws 
 and information and cybersecurity.
2) The number of training hours measures only how large a percentage of skills building is done through traditional 
training (e-training and classroom training). The table also includes savings banks.
3) Contains a section on anti-corruption policies and procedures.
4) Refers to Sweden.
Employees who have received training in anti-money laundering 
and counter-­terrorist financing, by region (%)1
2019
Sweden
99
Estonia
100
Latvia
100
Lithuania
99
Group total
99
1) Began being measured in 2019.
Employees who have received training in anti-money laundering 
and counter-­terrorist financing, by category (%)1
2019
Management positions
98
Specialists
99
1) Began being measured in 2019.
Occupational health and safety 
Occupational health and safety is an important area to create a climate in the bank 
that produces sustainable employees. It is strategically important, and major efforts 
are made to prevent illness and address any problems that arise. The work environ-
ment at Swedbank must be safe, stimulating and foster high performance and long-
term relationships internally and externally. Sick leave has increased slightly in three 
of Swedbank’s four home markets. This is a worrisome trend that has to be broken.  
To achieve this, Swedbank as an employer must address this issue in a clear and struc-
tured way. It is also important that each employee takes responsibility for their own 
health and well-being, with the goal of a work-life balance. Swedbank has four focus 
areas that it continuously monitors: early signs of illness, repeated short-term 
absences, long-term illnesses and conflicts/difficulties cooperating. Goals have also 
been set for occupational health and safety work based on the following parameters: 
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SUSTAINABILITY

Sustainable Employee Index > 85%, sickness absences < 2.8%, preventive work to 
address early signs of illness, and zero tolerance for discrimination.
Diversity and inclusion
Swedbank highly values inclusion, and gender equality and diversity are key issues. 
Focusing on them provides new perspective and helps to increase employees’ skills, 
competencies and understanding of other people. Swedbank’s aim is that its employees 
will reflect the diversity in the local community and thereby can satisfy customers’ 
various needs and identify new business opportunities. 
During the year Swedbank updated and expanded its gender equality and diversity 
policy to also encompass inclusion. The aim was to stress that all of the bank’s 
employees will be accepted, regardless of how they self-identify, and to strive for 
equality. Inclusion means taking seriously the work and development of every 
employee and that everyone in the workplace will be seen. 
Swedbank has a Group-level strategy to prevent all forms of discrimination,  
and 2019 was the year that Swedbank signed the UN’s Women’s Empowerment 
­Principles, thereby strengthening its commitment to gender equality in the global 
workplace. 
Another highlight was Swedbank’s first participation in Baltic Pride in Vilnius. 
Swedbank in Lithuania previously had not publicly supported Pride, but now took 
the lead in inviting other companies to join. 
To create a more diverse and inclusive bank with employees from different back-
grounds, measures are taken to promote diversity and fight discrimination and har-
assment. This is monitored on a regular basis and efforts are being made to improve 
oversight and awareness. In addition to legally mandated salary reviews, the bank 
regularly conducts salary analyses and takes the necessary measures to ensure par-
ity. In the analyses the bank reviews gender pay gaps based on position, difficulty of 
the position and geographic location. The pay gap in some business areas is explained 
by the bank’s salary criteria. The differences are weighted so that women in some 
areas generally have a higher salary than men, and that men in other areas are higher 
than women. In some business areas measures are being taken to close any identified 
pay gaps. Taken together, this results in marginal differences in pay between genders. 
The work being done to investigate, identify and address unfair pay differences is an 
example where major improvements have been made in recent years. 
All business areas and Group functions are involved and set goals in their business 
plans, and the bank’s leaders work with these issues in their teams. The guidelines on 
discrimination and harassment are updated regularly and employees receive the 
proper training. It is essentially a question of respect for human rights, and the bank 
has zero tolerance for all forms of discrimination. All employees share a responsibility 
for a healthy work environment free from discrimination and harassment. Managers 
and leaders regularly attend training, and workshops are conducted at the request of 
management teams. For example, recruiting teams received training during the year 
on prejudices that can unconsciously arise in recruiting situations. Swedbank has 
worked diligently to achieve gender equality at every level, which has resulted in an 
increase in the share of female specialists, middle managers and senior employees. 
In upper management the share of female is 43 per cent.
Employee surveys 
To monitor and evaluate how employees feel about their workplace and work situa-
tion, Swedbank conducts annual employee surveys. During the year they were con-
ducted bimonthly. Four times employees were also asked to respond to an Engage-
ment Pulse (EP), which consisted of 7 questions, one of which is the eNPS, i.e. the 
likelihood of recommending Swedbank as an employer. The purpose of the survey is 
to create a basis for employees and managers to cooperatively evaluate and work 
with the results in their units. The annual Human Capital Report (HCR), which was 
compiled in April, provides results in strategically important areas: Leadership Index, 
Employee Index and Sustainable Employee Index. 
All surveys during the year had a high response rate and higher results. The eNPS 
score varied. After rising at the beginning of the year, the score dipped in the April 
­survey during a turbulent period. Based on the results, measures were adopted to 
increase confidence in Swedbank as an employer. In the surveys conducted last 
autumn the eNPS rose each time, indicating that the focus on employee engagement 
is producing the desired results.
Employee survey, index
2019
2018
2017
Sustainable Employee Index1
78
Engagement index
81
78
Recommendation index2
33
24
21
Leadership index
85
86
1) The survey was revised in 2019, so no comparable data are available.
2) Likelihood of recommending Swedbank as an employer outside the company (eNPS). Calculated on a scale of 
0–10, where the share of negative responses (0–6) is subtracted from the share of positive responses (9–10).
Total number of employees by 
­employment type 2019, by gender1
Female
Male
Total
Full-time
9 067
5 388
14 455
Part-time
1 410
565
1 975
Total
10 477
5 953
16 430
1) The variation in the number of employees during the year is fairly constant.
Total number and share of 
­employees by ­employment 
­contract 2019, by gender1
Female
%
Male
%
Total
Permanent
9 669
64
5 555
36
15 224
Temporary
808
67
398
33
1 206
Total
10 477
5 953
16 430
1) The variation in the number of employees during the year is fairly constant.
Total number of 
­employees by employ-
ment contract 2019,  
by region1
Sweden
Estonia
Latvia Lithuania
Total
Permanent
8 227
2 608
1 816
2 573
15 224
Temporary
796
103
153
154
1 206
Total
9 023
2 711
1 969
2 727
16 430
1) The percentage who are not employed by the bank is very low.The variation in the number of employees during 
the year is fairly constant.
Total number1 and share of new employees 
by gender, age group and country, %
2019
20182
20172
Women
61
62
60
Men
39
38
40
Under 30 years 
54
59
60
30–50
42
37
35
50–
4
4
5
Sweden 
34
30
36
Estonia 
18
24
22
Latvia
21
17
17
Lithuania
27
29
25
1) Number of new employees: 2019: 1 912, 2018: 1 877 and 2017: 1 598.
2) Note that minor adjustments were made to the figures for 2017 and 2018.
Rate of employee turnover by gender,  
age group and country, %1
2019
20182
20172
Women 
9.3
9.8
10.0
Men 
10.4
11.8
11.4
Under 30 years 
14.1
14.8
15.0
30–50
8.0
9.8
8.8
50–
9.6
8.1
10.3
Sweden 
9.4
9.3
9.3
Estonia 
8.3
10.9
9.5
Latvia
10.9
11.4
13.4
Lithuania
11.7
13.8
12.8
Group total 
9.7
10.5
10.3
1) Number of employees who left during the year: 2019: 1 601, 2018: 1 683 and 2017: 1 629.
2) Note that minor adjustments were made to the figures for 2017 and 2018.
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Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Labour/management relations
2019
2018
2017
Percentage of employees with collective  
or local agreement or covered by Labour law  
– Sweden1
100
100
100
Percentage of employees covered by 
­collective bargaining agreements2,3
69
69
69
1) The members of the Group Executive Committee are not covered by collective agreements (except the holiday 
regulations) and the Act on Employment Protection.
2) 100 per cent in Sweden and Lithuania. 
3) Swedbank has established a Group-level European works council with participants from the various countries 
where it operates.
Wage difference women vs. men, 
­management positions1 by country, %2,3
2019
2018
2017
Sweden
–22
–22
–21
Estonia
–27
–28
–31
Latvia
–39
–43
–46
Lithuania
–32
–36
–29
Group total
–31
–32
–33
1) Includes management positions at every level. HR responsibility is the common denominator for this category.
2) The table does not take into consideration either profession or management level. One reason for the differences 
may be that men still hold more management positions at a higher level with higher salaries.
3) Swedbank’s home markets are Sweden, Estonia, Latvia and Lithuania.
Wage difference women vs. men, manage-
ment positions1 by business area, %2
2019
2018
2017
Swedish Banking 
–12
–17
–16
Large Corporates & Institutions 
–50
–48
–44
Baltic Banking 
–38
–41
–41
Group Functions 
–23
–21
–19
1) Includes management positions at every level. HR responsibility is the common denominator for this category.
2) The table does not take into consideration either profession or management level. One reason for the differences 
may be that men still hold more management positions at a higher level with higher salaries.
Wage difference women vs. men, 
­specialists by country, %1
2019
2018
2017
Sweden
–20
–20
–21
Estonia
–35
–36
–38
Latvia
–29
–29
–30
Lithuania
–34
–35
–35
Group total
–32
–34
–37
1) Swedbank’s home markets are Sweden, Estonia, Latvia and Lithuania.
Wage difference female vs. male, 
­specialists by business area, %
2019
2018
2017
Swedish Banking 
–14
–14
–15
Large Corporates & Institutions 
–31
–36
–39
Baltic Banking 
–31
–30
–33
Group Functions 
–19
–21
–24
Level of education, %
2019
2018
2017
Sweden
University degree 
40
39
40
Other university education 
11
13
14
Upper secondary school 
48
47
45
Other education 
1
1
1
Estonia
University degree 
62
61
61
Other university education 
11
12
13
Upper secondary school 
20
20
19
Other education 
7
7
7
Latvia
University degree 
73
72
72
Other university education 
16
16
16
Upper secondary school 
11
12
12
Other education 
0
0
0
Lithuania
University degree 
83
81
83
Other university education 
6
6
7
Upper secondary school 
5
5
4
Other education 
6
8
6
Age distribution by country, %
2019
20181
20171
Sweden
Under 30 years 
21
20
19
30–50
49
49
51
50–
30
31
30
Estonia
Under 30 years 
20
21
21
30–50
68
68
68
50–
12
11
11
Latvia
Under 30 years
24
24
26
30–50
70
70
68
50–
6
6
6
Lithuania
Under 30 years 
32
32
29
30–50
57
57
60
50–
11
11
11
1) Note th at minor corrections have been made to the figures for 2017 och 2018.
Age distribution management and  
Board of Directors, %
2019
2018
2017
Group Executive Committee
Under 30 years
0
0
0
30–50
25
24
32
50–
75
76
68
Board of Directors1
Under 30 years
0
0
0
30–50
22
10
11
50–
78
90
89
1) Excluding employee representatives.
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Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

S7 Anti-corruption & IT security
Though illegal, corruption is stilll common throughout the world. Corruption risks
include bribery, fraud, conflicts of interest and illegal monetary flows. Everything we 
at Swedbank do should be characterised by high ethical standards, where Swedbank 
and its employees actively assess every transaction, relationship and activity from 
the standpoint of the bank’s ethical norms and positions.
Framework and organisational change
Swedbank’s Board of Directors has adopted a Group-wide anti-corruption policy and 
a policy on anti-money laundering and counter-terrorist financing (AML), which are 
revised each year. In 2019 the anti-corruption policy was clarified with regard to the 
bank’s whistleblower process. In the AML policy clearer information was provided on 
the bank’s Know Your Customer process and risk processes to ensure compliance with 
current rules. A code of conduct explains Swedbank’s values and principles of conduct 
in terms of the bank’s commitments, role and the way we work internally and in rela-
tion to customers and partners. 
Addressing the deficiencies that have been identified in the routines, systems and 
processes to combat money laundering and other financial crime was a priority in 
2019. As part of this work, Swedbank has established a special Anti-Financial Crime 
unit (AFC) to strengthen the fight against money laundering and financial crime as 
well as a Special Task Force to work with the ongoing money laundering investiga-
tions. The new AFC unit focuses on various aspects of financial crime such as preven-
tion of money laundering, counter-terrorist financing, fraud detection, cybersecurity, 
information security and physical security – and in the process has consolidated the 
bank’s expertise to create robust routines to fight financial crime. The AFC has also 
worked on a new framework that provides a better overview and compliance control. 
The framework will be implemented throughout the bank. New scenario-based meth-
ods have been introduced to more accurately identify suspicious transactions. During 
the year the bank also strengthened important functions with new competence and 
resources and provided targeted training to improve the knowledge of the bank’s 
employees. The digital part of the KYC process has been made more efficient through 
among other things shorter lead times.
Ethics Committee
Swedbank’s Ethics Committee addresses issues where the environment, human 
rights, social responsibility, business ethics or corruption are a critical factor in busi-
ness decisions. The committee’s role is to guide the organisation in order to minimise 
sustainability risks and any negative impacts for the bank. The members represent 
the bank’s various business areas and Group Functions, including representatives 
from the Group Executive Committee. Swedbank’s Head of Sustainability is the chair 
of the committee. If the committee’s recommendations are not followed, the case is 
escalated to the committee chair and the CEO. The number of cases is tracked, and 
the minutes of the committee’s meetings are distributed to the CEO and the Group 
­Executive Management (see page 203).
Internal routines and guidelines
Swedbank has established a Group-wide whistleblower routine to encourage 
employees to anonymously report any suspicions they might have that internal or 
external rules have been violated. In 2019 a total of 30 whistleblower reports were 
filed. More information on whistleblowing can be found at swedbank.com/Sustain­
ability within Responsible Business and Business Ethics.
Events and activities arranged by the bank to strengthen and build business rela-
tionships must comply with applicable laws and honest practices and be arranged in 
accordance with internal rules. The bank’s anti-corruption policy clarifies that 
employees are prohibited from offering or receiving gifts and travel. They are aslo 
prohibited from providing, promising or offering a benefit to any person who repre-
sents a government authority or decides on public procurements. 
Employees’ sideline work is evaluated on an annual basis. Members of the Group 
Executive Committee are subject to special rules on personal investments, where in 
normal cases the following do not give rise to significant conflicts of interest: UCITS 
funds and similar financial instruments, real estate intended for private use by mem-
bers or their family, shares in Swedbank and other shares provided they are discre-
tionary investments and that the agreement has been approved by Compliance.
Personal data
The General Data Protection Regulation (GDPR) is a new law that took effect 
throughout the EU in 2018. The objective is to improve protection of personal data 
and create a uniform regulation within the EU. Swedbank has extensive experience 
with storing and handling customer data and information in the normal course of 
business. It is important that the customer feels secure with how their personal infor-
mation is used. Confidential information is used to execute the bank’s services, in cus-
tomer surveys and market analyses, and to prevent money laundering, prevent and 
investigate criminal activity, and facilitate payments and credit and risk assessments.
Security intelligence and collaborations
Swedbank operates in an environment where cyber security threats are constantly 
developing and becoming more advanced. This, combined with increased digitisation 
of services, products and channels, requires the bank to understand threat scenarios 
and determine if and where vulnerabilities exist and can be exploited to harm the bank 
and indirectly society as well. At the same time all banks face growing information 
security demands and expectations from their stakeholders, including supervisory 
authorities, customers, partners and society as a whole.
Swedbank’s information security strategy is decided by the CEO, but the Board of 
Directors has been consulted in framing it. The Board also has access to, and gives its 
view of, the bank’s risk and threat assessments. Training is provided for all its mem-
bers. The strategy describes an optimal level of information security with basic stra-
tegic goals to support the overarching Group strategy. It also describes initiatives 
that will lead the bank to that optimum. These initiatives in turn are supported by 
more detailed improvement and development activities. The activities are defined on 
an annual basis to accommodate changes in the organisation and macro environment. 
Implementation of the activities is continuously reported to the CEO and the Board 
of Directors.
Internal framework
Swedbank has established a function with responsibility for leading and coordinating 
the development and implementation of a management system for information secu-
rity, including a risk framework. The system is based on the international ISO 27002 
standard and the ISF Standard of Good Practice. The function is led by the bank’s Chief 
Information Security Officer (CISO). Information Security Managers are appointed in 
every business area and relevant Group functions as support for senior executives. 
Functions for security incident response and proactive security testing of the bank’s 
IT environment are overseen by the CISO. The incident response team, Swedbank 
SIRT, is an accredited SIRT organisation and member of the Trusted Introducer 
­Network TF-CSIRT since 2010. The bank’s external auditors specially reviewed  
the bank’s cybersecurity work in 2019. The review will be followed up in 2020.  
The bank has insurance coverage for certain expenses that can arise in connection 
with a cyber incident. 
For information security to succeed, it is important to promote a security con-
scious culture in the bank. All employees have to understand the importance of good 
security in daily work, but at the same time are given the opportunity to develop their 
own security knowledge and awareness of current security threats. Swedbank 
therefore offers training and activities that raise the awareness of all employees as 
well as customised measures for specific employee categories. It is also important 
that employees are familiar with how suspected incidents should be reported.
IT security, data protection and  
crime ­prevention 
2019
2018
2017
Number of suspicious orders and transactions 
(MAR)1 reported
57
67
53
– of which Sweden
23
43
40
– of which Estonia
2
2
0
– of which Latvia
16
14
13
– of which Lithuania
16
8
0
Number of suspicious transactions involving 
money laundering/terrorist financing (SAR)1,2 
reported
4 597
5 084
3 422
– of which Sweden
2 736
2 774
1 951
– of which Estonia
882
956
768
– of which Latvia
632
770
583
– of which Lithuania
347
584
120
Number of bank robberies3
0
0
0
Number of complaints from customers to data 
protection officer
13
10
Number of complaints from Swedish Data 
Protection Authority
0
0
1) Market Abuse Regulation (MAR) and Suspicious Activity Report (SAR). Banks are obligated to report suspicions 
of market abuse: insider trading, market manipulation and unlawful disclosure of inside information (MAR). 
According to the Anti-Money Laundering Act, Swedbank is also obligated, without delay, to report suspicions 
of money laundering or terrorist financing (SAR) to the Financial Intelligence Unit of the Swedish Police.
2) Includes all countries for 2019 compared to last year’s report when only Sweden’s figures were reported.
3) Refers to Sweden, Estonia, Latvia and Lithuania.
208
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

S8 Social engagement
The basic idea when the first Swedish savings bank was founded in 1820 was to 
encourage saving and long-term financial stability in society. Two hundred years later 
this idea lives on through Swedbank’s deeply rooted social engagement and involve-
ment in a number of different initiatives focused on financial literacy, the labour 
­market and entrepreneurship.
Financial literacy training 
Swedbank’s social engagement is largely focused on spreading knowledge about per-
sonal finance, about money and savings, and about how various life choices can affect 
the future. Swedbank meets many children and young people through various initia-
tives and helps to stress the importance of financial literacy in their education. In this 
way the bank reaches many different groups in society, regardless of background and 
prior knowledge.
In Sweden the “Young Economy” initiative is a collaboration with the savings banks 
and savings bank foundations where 63 600 students attended lectures in 2019. In 
Latvia 350 lectures were held for high school students through the Swedbank School 
Program. In Latvia and Lithuania the bank has also started the “Financial Laboratory”, 
where children and young people have access to digital lectures, virtual tours and 
other educational material. Swedbank’s Estonian employees have the opportunity 
during working hours to guest lecture in schools, and around 380 are registered on 
the digital platform Back to School.
 An initiative called Digital Economy contributes to digital inclusion in society. 
Through local lectures and get-togethers, the bank’s personnel inform and guide 
those who want help getting started with digital services, 
Educating the public is also accomplished in all four home markets by drawing 
attention to current economic issues. Swedbank arranges seminars on these and 
other current topics related to its social engagement. 
Engagement in social issues
Swedbank wants to inspire and encourage people to develop and build skills for them-
selves and society as a whole. Inclusion and integration in the labour market have 
been a goal through “A Job at Last”, a collaboration with the Swedish Public Employ-
ment Service where foreign-born academics can qualify for a 6-month trainee posi-
tion with Swedbank. This has benefited the bank by bringing in new talent during the 
trainee period, but also after its conclusion, when several trainees have been offered 
permanent positions.
In the three Baltic countries Swedbank has participated in a state-guaranteed 
mortgage assistance programme. The aim is to support various groups based on 
established criteria, so that they have an opportunity to finance a home. In Latvia, 
for example, families and those up to the age of 35 with a higher education or pro­
fessional training can apply for these loans. 
In Latvia and Estonia the bank is engaged in projects that train college graduates 
to become teachers who can contribute to creating more equal schools around the 
country. Teachers are placed in areas with the greatest need. In Estonia 30 students 
are accepted to the programme each year and more than 80 per cent stay in the 
­system as instructors. 
The bank participates each year in Politicians’ Week in Almedalen, Sweden, and  
its equivalent events in Latvia, Estonia and Lithuania, promoting dialogue between 
politicians and voters. 
Swedbank in Sweden has been working for several years with the organisation 
Friends, an important educational commitment focused on preventing bullying. 
Health and exercise are also an important social issue. In addition to the health 
aspect, it is a proven way for many new immigrants in Sweden to integrate in society. 
The bank sponsors various forms of sporting activities, mainly with a focus on foot-
ball, where the bank has been active for many years.
Entrepreneurship and innovation collaborations
To encourage innovation and entrepreneurship, Swedbank works with several organ-
isations on various projects. One way is to teach entrepreneurship to young people in 
schools, which paves the way for new businesses and job creation.
Junior Achievement in Sweden and Latvia, Everyone Can in Lithuania and Prototron 
in Estonia are various types of entrepreneurial collaborations that focus on young 
people. The Estonian initiative Prototron is working to eliminate the funding gap for 
tech startups by giving them an opportunity to develop their ideas into working 
proto­types to test on the market. This a collaboration between Swedbank, Tallinn 
University of Technology and Science Park Technopol. To date Prototron has financed 
74 projects with EUR 895 000 and helped to get 34 new products to market. 
A ­business networking platform was created by Swedbank in Latvia, the Institute 
of Finances and other external partners in 2013 to help form business relationships 
and develop opportunities. In 2019 the Business Network was visited by more than 
214 000 unique visitors.
Volunteering
Back in 2008 Swedbank and Good Deed Foundation joined together to establish the 
donation portal “I love to help”, the largest website of its kind in Estonia, which brings 
together customers and various charitable organisations to assist vulnerable areas. 
All employees of Swedbank in Estonia have an opportunity to volunteer. 
A volunteering programme for employees in Lithuania called We Care was reintro-
duced during the year. Here as well employees have an opportunity during working 
hours to volunteer in a wide range of areas.
Social investments, SEKm
2019
2018
2017
Social investments, total 
104
106
121
–of which Sweden 
89
92
88
–of which Estonia 
7
7
9
–of which Latvia 
3
31
17
–of which Lithuania 
5
4
7
1) Contributions to the donation portal ziedot.lv were discontinued in 2018.
Social investments  
per ­engagement 2019, %
Sweden
Estonia
Latvia
Lithuania
Sponsorship of social activities 
45
77
62
23
Employees’ social engagement 
during working hours
4
23
7
11
Management costs 
0
0
29
66
Products and services with 
a social value
0
0
0
0
Gifts from customers via the 
bank’s products and services
51
0
3
0
Number of lectures
2019
2018
2017
Sweden1
2 283
2 183
2 128
Estonia
157
117
347
Latvia
683
573
1 031
Lithuania
674
433
539
1) Including savings banks.
State-guaranteed mortgage loan 
­programmes 
2019
2018
2017
Estonia
– number of loans granted during the year
1 053
976
995
– portfolio volume (SEKm)
2 478
1 511
693
Latvia
– number of loans granted during the year
1 521
1 347
954
– portfolio volume (SEKm)
 3 241
2 134
1 286
Lithuania
– number of loans granted during the year
746
358
330
– portfolio volume (SEKm)
877
582
449
2019
Direct economic value generated and distributed, %
SEKm 
%1
Total income 
45 960
Interest paid to the public (deposits) 
1 663
4
Interest paid on other funding/financing 
13 477
29
Deposit guarantee fees 
457
1
Resolution fees 
1 117
2
Tax for the year 
4 631
10
Non-deductible VAT
1 537
3
Social insurance costs and pensions 
3 287
7
Salaries and fees incl. shares in Swedbank 
7 249
16
Payments to suppliers, home markets 
9 680
21
Proposed shareholder dividend 
9 856
21
Profit for the year reinvested in the bank 
9 841
21
1) Distribution of financial value creation in relation to total value.
209
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

S9 Human rights
Swedbank shall always act in accordance with universal human rights. This commit-
ment extends to every market where Swedbank is active and in relation to all its 
­business relationships.
Policy and commitments
As a basis for its responsibility to respect human rights, Swedbank follows the UN’s 
Guiding Principles Reporting Framework and the UN’s Global Compact. The principles 
encourage companies to be aware of human rights risks and to strengthen human 
rights in their businesses. Swedbank Robur has signed the Principles for Responsible 
Investment (PRI), an open global initiative for institutional investors supported by the 
UN, which addresses among other things respect for human rights in investments.
A Group policy on human rights clarifies Swedbank’s responsibility to take precau-
tionary measures and prevent human rights violations. Swedbank’s code of conduct 
also requires all employees to abide by Swedbank’s values and show equal respect for 
everyone. On this basis, Swedbank continuously assesses human rights risks in its 
processes and business decisions.
Human rights in lending and investments
Swedbank conducts a sustainability analysis in connection with all corporate loan 
applications. The analysis addresses with the customer any risks associated e.g. with 
its supply chain. If the company has production, procurement or sales in high-risk 
countries, its ability to manage sustainability related risks is critical (the results are 
shown on page 203). As support for the analysis, the advisor has guidelines on sus-
tainability risks specific to each sector, such as human rights risks, which are designed 
to facilitate dialogue and risk assessment. If the company is considered to have signifi-
cant sustainability risks, the case is forwarded to a credit committee for final decision.
Swedbank Robur’s investment process includes a sustainability analysis, part of 
which covers human rights. The analysis varies in scope for different funds depending 
on factors such as industry and geography. Special attention is given to industries 
and regions with elevated risks e.g. companies operating in low-cost countries or 
non-democracies. Swedbank Robur actively dialogues with companies to improve 
their sustainability and profitability and to prevent and reduce serious consequences 
for people and the environment. There are various types of dialogues, e.g. with com-
panies with especially high risks that are on Swedbank Robur’s watch list, to follow up 
incidents, in connection with a sustainability analysis, on topics such as human rights, 
and as stakeholders in companies in which the funds are major investors. Human 
rights is also one of the four areas that serve as a basis for determining whether a 
company can be included in Swedbank Robur’s sustainability funds. Children are often 
a vulnerable group and Swedbank Robur has issued a position statement on children’s 
rights, which is used to influence companies. The purpose is to declare Swedbank 
Robur’s position and its expectation that companies consider children’s rights. 
Swedbank has adopted a Group position on the defence industry, which sets the 
conditions for providing financial services to the sector and is protection against 
human rights violations. This includes a prohibition against investments in and 
financing of nuclear weapons.
Active work in the supply chain
Swedbank assesses risks related to human rights in its procurement process. The 
scope of the risk assessment depends on the industry and where the supplier is 
located geographically, which is determined through an initial screening. If the sup-
plier is considered high risk in terms of human rights, a more thorough evaluation is 
conducted and requirements are set for managing human rights in the contract. 
Swedbank also conducts supplier visits and regularly dialogues with suppliers to 
­verify that established requirements are being followed. 
Gender equality and diversity
All employees of the Swedbank Group receive basic mandatory training on sustain­
ability covering topics such as gender equality and human rights. The number of 
­training hours is shown on page 205.
Gender equality and diversity are important to the bank’s work environment and 
corporate culture. The work is based on a central diversity and gender equality plan, 
and every manager is graded based on diversity and equality goals as part of their 
performance. The Group Executive Committee has focused for several years on and 
accelerated development in these issues. This also means a stronger focus on inte-
grating gender equality and diversity in the business. Every unit is involved and sets 
goals for the area in its business plans.
During the year Swedbank Lithuania received an award for its Equal Opportunity 
Wings initiative, which led to the successful introduction of gender equality princi-
ples, including raising the level of awareness by spreading ideas about equality in 
­general, but also supporting other organisations to become more active in this area.
S10 Taxes
Being a good taxpayer and contributing to the community is an important part of 
a company’s sustainability work. In accordance with Swedbank’s vision and values,  
it is important to address tax issues responsibly, ethically and transparently. This 
responsibility applies to tax issues that affect both the bank and customers.
Taxes are an important sustainability issue for Swedbank. Since 2008 Swedbank 
has a Group-wide tax policy adopted by the Board of Directors. Swedbank openly 
reports operating profits, assets and tax costs in every country where it operates. 
Swedbank acts transparently in communications with tax authorities in all these 
countries.
Swedbank’s economic contributions
In addition to paying corporate tax, Swedbank is a major employer in its home markets 
and provides work more for than 15 000 people. By paying social security contribu-
tions for its employees, the bank contributes to social protection. Swedbank incurs 
large net costs for value-added tax (VAT). In addition, Swedbank pays bank fees in the 
form of a resolution fee and a deposit guarantee fee, which contribute to the financial 
stability of society. Swedbank’s total cost for taxes and social security was approxi-
mately SEK 8 231m in 2019. During the year Swedbank also paid approximately  
SEK 1 574m in bank fees.
Operating taxes
The sustainability analysis conducted in connection with corporate loan applications 
requires the borrower to transparently report taxes. Swedbank has internal pro-
cesses to reduce the risk that its operations are exploited for tax evasion. 
Swedbank does not engage in artificial transactions whose main purpose is  
to avoid taxes. Swedbank withholds, pays and reports the taxes that its private 
­customers owe for interest, dividends and various types of savings.
In addition to the tax policy, the Swedbank Group has position statements on tax 
issues. References to taxes can be found in Swedbank’s sector guidelines as well as in 
Swedbank’s public positions on investments and asset management.
2019
Sweden
Estonia
Latvia Lithuania
Norway
USA
Other1
Operating 
profit 
(SEKm)
18 463
2 736
1 041
1 621
278
53
228
Assets 
(SEKm)
1 975 569
126 977
63 052
113 912
77 449
61 639
79 553
Number of
employees2
8 076
2 568
1 716
2 437
275
17
129
Tax expense 
(SEKm)
3 712
411
211
250
65
11
51
Non-deduct-
ible VAT 
(SEKm)
1 287
63
48
119
20
–
–
Social secu-
rity contri-
butions 
(SEKm)
1 551
253
98
12
60
2
7
Resolution 
fees (SEKm)
1 015
21
22
13
33
2
11
Deposit 
guarantee 
fees (SEKm)
289
49
66
53
–
–
–
1) Finland, Denmark, Luxembourg, China, Spain and South Africa.
2) Number of Group employees at year-end excluding long-term absentees in relation to hours worked expressed  
as full-time positions.
210
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

About this report
The sustainability report summarises Swedbank’s sustainability work. Since 2017 Swedbank 
has reported in accordance with the GRI Standards version. 2019 is the eleventh year in a row 
that Swedbank’s report has followed GRI’s framework for sustainability reporting. The GRI 
report is linked to key topics, which are defined based on the bank’s materiality analysis, and 
how these key topics coincide with GRI’s general and topic-specific disclosures.
Data collection and calculation methods
Swedbank’s data collection process utilises a large number of internal and 
external systems. The data that appears in the sustainability report is 
reported by the bank’s data suppliers through Swedbank’s digital sustaina-
bility platform. 
The systems used to collect, and in some cases calculate, the data and 
statistics presented in each section are reported below:
S1 Pay: The information in the Pay section is compiled mainly through 
the bank’s financial reporting. A real time payments platform jointly owned 
by Swedish banks (BiR) facilitates Swish payments in real time. The number 
of payments is obtained through the system.
S2 Save/invest: The information on assets under management per 
fund is obtained from the bank’s financial system. The climate calculations 
are based on data from an external supplier. Sustainability analyses are per-
formed by an internal programme at Swedbank Robur based on data from 
several large ESG data suppliers. Dialogs are logged.
S3 Finance: The information on corporate loans is obtained from the 
bank’s financial reporting. The volume of sustainability related products  
is compiled from internal systems and Bloomberg. The information on sus-
tainability analyses that have been performed is obtained from several 
­different CRM systems.
S4 Procure: The bank’s supplier statistics are compiled through the 
Supplier Risk & Contract Management and Worldfavor systems.
S5 Environmental impacts: A digital system for climate calculations is 
provided by an external supplier. Data on consumption of energy, paper and 
water as well as security transports and waste management is compiled 
directly from the bank’s suppliers. Information on the bank’s business travel 
is compiled through a system from an external supplier, and Autoplan’s car 
leasing data is obtained from the bank’s fleet administration system. 
A ­limited selection of environmental data are based on a different financial 
period than the standard sustainability reporting.
S6 Employees: The information is obtained from the bank’s HR system 
and training data from the internal training portal.
S7 Anti-corruption and IT security: Data on suspicious orders and 
transactions (MAR) and reports of suspicious transactions regarding 
money laundering/terrorist financing (SAR) are obtained from systems 
specially designed for this purpose. Whistleblowing reports are registered 
and filed through internal systems and handled by the Compliance unit, 
PayEx is not included.
S8 Social engagement: The information is compiled through several 
different internal systems and the bank’s internal sponsorship navigator, 
a system designed for Swedbank.
S10 Taxes: The information is obtained from the bank’s financial notes, 
internal reporting system and HR system.
Changes, recalculations and omissions
Changes and recalculations of measurement data are reported when the 
information that has been calculated in a new way is presented in the 
report. Swedbank report according to the GRI Standards, Core level, but 
make a few omissions as indicated in the table below.
 
GRI Standard
Reason for omission
Explanation
G4-FS7
Not applicable 
The monetary value of products and services that have positive social impacts specified  
by business area and purpose is reported only for ­Swedbank Robur and Swedbank Large 
­Corporates and Institutions.
G4-FS8
Not applicable 
The monetary value of products and services that have positive environ­mental impacts 
specified by business area and purpose is reported only for Swedbank Robur, Swedbank 
Large Corporates and Institutions and Swedish Banking, and not in relation to total volume 
per product group.
205-1
Not applicable
The percentage, the type of corruption risk identified through the risk assessment in each 
core process, and the total number analysed based on corruption risks is measured only for 
certain parts of the organisation and therefore, key figures for the Group as a whole cannot 
be presented.
205-2
Not applicable
The total number and percentage of employees and business partners that the bank’s anti­-
corruption policy and routines have been communicated to, divided by type of employee 
­category/partner and region and the total number and percentage of the board that has 
undergone anti-corruption training broken down by region are not key indicators that 
­Swedbank uses in its reporting.
401-1
Not applicable
The total number of new employee hires and employee turnover by age group, gender  
and region are not key indicators that Swedbank uses in its reporting.
308-1
Not applicable
The share of suppliers that have been evaluated with sustainability criteria is reported  
based on total procurement volume. This data is not available for new suppliers.
405-1
Not applicable
Age groups divided by employment contract is not a key indicator that ­Swedbank uses  
in its reporting.
211
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

GRI Standards Index
Swedbank reports according to the GRI Standards, Core level. Shown 
below are the GRI indicators associated with the key topics that were 
defined based on the bank’s materiality analysis, and how these key topics 
coincide with GRI’s general and topic-specific disclosures. The same table 
shows how Swedbank’s work supports the Global Compact’s ten principles 
and how well Swedbank lives up to the new act on sustainability reporting. 
One or more ­disclosures are reported for each key topic. Swedbank has 
used one or more of GRI’s disclosures where available and report them in 
the table below with GRI’s designations. For key topics that lack GRI disclo-
sures, the bank’s own disclosures have been used. At least one ­general or 
topic-specific disclosure is reported for each of Swedbank’s key topics in 
accordance with the GRI Standards. Swedbank’s sustainability reporting 
aligns with the GRI’s four principles for defining report content: stake-
holder inclusiveness, materiality, sustainability context and completeness.
Disclosure number
Disclosure title
Page/reference
number
Global Compact 
(principle no.)
GRI 101: Foundation
GRI 102: General disclosures
Organisational profile
102-1 (GRI 2016)
Name of the organisation
Front cover
102-2 (GRI 2016)
Activities, brands, products, and services
106 note G6
102-3 (GRI 2016)
Location of headquarters
59 note G1
102-4 (GRI 2016)
Location of operations
107 note G7
102-5 (GRI 2016)
Ownership and legal form
24–25
102-6 (GRI 2016)
Markets served
2, 107 note G7
102-7 (GRI 2016)
Scale of the organisation
2–3, 13, 54, 56, 59, 106  
note G6, 113 note G13
102-8 (GRI 2016)
Information on employees and other workers
113 note G13, 205–207
1–6
102-9 (GRI 2016)
Supply chain
16, 203
1–6
102-10 (GRI 2016)
Significant changes to the organisation and its supply chain
58, 199, 203–204 
1–10
102-11 (GRI 2016)
Precautionary principle or approach
59 note G2, 216
7–9
102-12 (GRI 2016)
External initiatives
194
102-13 (GRI 2016)
Memberships of associations
194
Strategy
102-14 (GRI 2016)
Statement from senior decision-maker 
6–7
Ethics and integrity
102-16 (GRI 2016)
Values, principles, standards, and norms of behaviour 
1, 194, 198 
1–10
Governance
102-18 (GRI 2016)
Governance structure 
34–51
Stakeholder engagement
102-40 (GRI 2016)
List of stakeholder groups
196
102-41 (GRI 2016)
Collective bargaining agreements
207
3
102-42 (GRI 2016)
Identifying and selecting stakeholders
196
102-43 (GRI 2016)
Approach to stakeholder engagement
195–196, 206, 209
102-44 (GRI 2016)
Key topics and concerns raised
196
Reporting practice
102-45 (GRI 2016)
Entities included in the consolidated financial statements 
30–35, 194
102-46 (GRI 2016)
Defining report content and topic Boundaries
194–198, 211
1–10
102-47 (GRI 2016)
List of key topics 
195
102-48 (GRI 2016)
Restatements of information 
59 note G2, 203, 206–207
102-49 (GRI 2016)
Changes in reporting 
195
102-50 (GRI 2016)
Reporting period
194, 222
102-51 (GRI 2016)
Date of most recent report
194
102-52 (GRI 2016)
Reporting cycle
194
102-53 (GRI 2016)
Contact point for questions regarding the report 
233
102-54 (GRI 2016)
Claims of reporting in accordance with the GRI Standards 
194, 212
102-55 (GRI 2016)
GRI content index
212
102-56 (GRI 2016)
External assurance
194, 222
1–10
GRI 101: Foundation
GRI 102: General Disclosures
GRI 103: Management Approach
GRI 200: Economic 
GRI 300: Environmental
GRI 400: Social
212
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

GRI Topic-specific disclosures
Below is a list of specific disclosures associated with the key topics as 
defined based on the year’s materiality analysis, and how well these key 
topics coincide with GRI’s topic-specific disclosures. The same table shows 
how our work supports the Global Compacts ten principles and UN’s global 
sustainability goals.
One or more disclosures are reported for each key topic. Swedbank has used 
one or more of GRI’s disclosures where available and report them in the table 
below using GRI’s designations. For key topics that lack GRI disclosures, 
Swedbank has used its own disclosures, which do not have GRI designations. 
At least one topic-specific disclosure is reported for each of our key topics in 
accordance with the GRI Standards.
Disclosure number
Key topics
Topic-specific disclosure
Page/reference 
­number
Global 
­Compact 
(principle no.)
SDG
Sound lending culture
1–10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
14–15, 21, 195,  
202–203
103-2 (GRI 2016)
Management
21, 34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
202–203
Households with loan-to-value ratio over 70%  
of property value
202
Share of households with loan-to-value ratio over  
70% that amortise
202
Responsible owner
1–10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
15, 21, 195, 200–201
103-2 (GRI 2016)
Management
21, 34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
200–201
G4-FS10
Percentage and number of companies held in the institu-
tion’s portfolio with which the reporting organisation 
has interacted on environmental or social issues
200
Attractive employer
1–6
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
17, 195, 205–206
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
205–206
GRI 401: Employment
401-1 (GRI 2016)
New employee hires and employee turnover
113 note G13, 206
 
GRI 404: Training and Education
404-1 (GRI 2016)
Average hours of training per year per employee
205
 
 
Financially stable bank
1–10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
14, 21, 26–33, 195 
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
3, 26–33
GRI 201: Economic Performance 
201-1 (GRI 2016)
Direct economic value generated and distributed
209
 
 
 
 
Results and ROE
3, 54–55
Capital adequacy ratio
97 note G4
Profit for the year
3, 54–55
Dividend per share
3, 24–25
213
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Disclosure number
Key topics
Topic-specific disclosure
Page/reference 
­number
Global 
­Compact 
(principle no.)
SDG
Profitability and competitive return
1–10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
24–33, 195
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
3, 26–33 
201-1 (GRI 2016)
Direct economic value generated and distributed
209
 
 
 
 
Results and ROE
3, 54–55
Capital adequacy ratio
97 note G4
Profit for the year
3, 54–55
Dividend per share
3, 24–25
Sustainable procurement
1–10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
16, 195, 203
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
203
GRI 308: Supplier Environ­mental Assessment 
308-1 (GRI 2016)
New suppliers screened using environmental criteria
203, 211
GRI 414: Supplier Social ­Assessment 
414-1 (GRI 2016)
New suppliers screened using social criteria
203
 
 
Sustainable products and services
1–10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
14–15, 195 
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
22–23, 200–203
G4-FS6
Percentage of the portfolio for business lines by specific 
region, size and by sector
203
 
 
G4-FS7
Monetary value of products and services designed to 
deliver a specific social benefit for each business line 
­broken down by purpose
209, 211
 
 
 
 
G4-FS8
Monetary value of products and services designed to 
deliver a specific enviromental benefit for each business 
line broken down by purpose
202–203, 211
Gender equality and diversity
1–6
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
17, 195
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
22–23, 206
GRI 405: Diversity and Equal Opportunity
405-1 (GRI 2016)
Diversity of governance bodies and employees
34–51, 113 note G13, 
206
 
405-2 (GRI 2016)
Diversity and equal opportunity
206–207
 
Prevent climate change
7–9
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
16, 21, 195, 204
103-2 (GRI 2016)
Management
21, 34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
22–23, 204–205
GRI 302: Energy
302-3 (GRI 2016)
Energy intensity
205
 
   
 
GRI 305: Emissions 
305-1 (GRI 2016)
Direct (Scope 1) GHG emissions
204
 
 
 
 
305-2 (GRI 2016)
Energy indirect (Scope 2) GHG emissions
204
 
 
 
 
305-3 (GRI 2016)
Other indirect (Scope 3) GHG emissions
204
 
 
 
 
305-4 (GRI 2016)
GHG emissions intensity
205
 
 
214
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Disclosure number
Key topics
Topic-specific disclosure
Page/reference 
­number
Global 
­Compact 
(principle no.)
SDG
Prevent corruption and money laundering
10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
17–20, 195
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
208
GRI 205: Anti-Corruption 
205-1 (GRI 2016)
Operations assessed for risks related to corruption
208, 211
Percentage of suppliers undergoing business ethics  
risk assessments
203
Percentage of holdings in fund portfolios undergoing 
­business ethics risk assessments
200–201
Number of corporate customers undergoing business 
­ethics risk assessments
202–203
205-2 (GRI 2016)
Communication and training on anti-corruption policies 
and procedures
205, 208, 211
Social engagement
1–6
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
195, 209
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
22–23, 209
GRI 201: Economic Performance 
201-1 (GRI 2016)
Direct economic value generated and distributed
209
Sound compensation culture
1–6, 10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
195, 206
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
113 note G13,  
206–207
Compensation within Swedbank
113 note G13
GRI 201: Economic performance
201-3 (GRI 2016)
Defined benefit plan obligations and other  
retirement plans
113 note G13
GRI 405: Diversity and Equal Opportunity
Gender pay gap
206–207
Secure IT systems
3–6, 10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
17, 195
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
208
Availability
1–2
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
195, 199, 209
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
199
Transparent reporting
1–10
GRI 103: Management Approach 
103-1 (GRI 2016)
Explanation of the key topic and its boundary
195, 210
103-2 (GRI 2016)
Management
34–51, 197
103-3 (GRI 2016)
Sustainability management assessment
210
201-1 (GRI 2016)
Direct economic value generated and distributed
209
Reporting of taxes for the year
118 note G18, 210
Reporting of profit for the year
3, 54–55
215
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Sustainability reporting
In 2017 sustainability reporting requirements were introduced in the 
Swedish Annual Accounts Act (chapter 6, paragraph 12). The new require-
ments state that sustainability reports must contain the sustainability 
­disclosures needed to understand the company’s development, financial 
position and results and the consequences of its activities, including disclo-
sures on the environment, social conditions, HR, respect for human rights 
and anti-corruption. The following table with page references to the report 
is provided to show how Swedbank meets the new legal requirements.
Page reference by area 
Environment 
Employees and  
Social conditions
Human rights 
Anti-corruption 
Business model
12–13
12–13
12–13
12–13
Material risks 
14, 21, 195, 197, 204–205 
14, 195, 197, 205–207, 209
14, 195, 197, 210
14, 195, 197, 208
Policy, results and indicators1
Note G3 67, 198, 201, 204–205
Environmental policy
ISO 14001 certified environmental 
management system 
Position on climate change
Sustainability policy
Swedbank’s code of conduct
Code of conduct for suppliers
Responsible investment policy
Exclusion list
198, 205–207, 209–210
Occupational health and safety 
­policy
Policy on Gender equality, Diversity 
and Inclusion
Human rights policy
Sustainability policy
Swedbank’s code of conduct
198, 210
Human rights policy
Policy on Gender equality, Diversity 
and Inclusion
Position on defence industry
Sustainability policy
Swedbank’s code of conduct
Code of conduct for suppliers
Responsible investment policy
Exclusion list
198, 208–209
Anti-corruption policy
Anti-money laundering and 
counter­-terrorist financing policy
Financial reporting policy
Sustainability policy
Swedbank’s code of conduct
Code of conduct for suppliers
Tax policy 
Whistleblower routine
Exclusion list
Management of risks 
14, 21, Note G3 page 67, Pillar 3 
report, available on swedbank.com
14, Note G3 page 67, Pillar 3 report, 
available on swedbank.com
14, Note G3 page 67, Pillar 3 report, 
available on swedbank.com
14, Note G3 page 67, Pillar 3 report, 
available on swedbank.com
1) All policies are available on swedbank.com/sustainability
TCFD reporting
This section shows where in Swedbank’s Annual and Sustainability Report 
that TCFD-related information is presented.
The recommendations from the Task Force on Climate-related Financial 
Disclosures (TCFD) are structured around four thematic areas:
•	 Governance
•	 Strategy
•	 Risk management
•	 Metrics and targets
In 2019 Swedbank continued to implement the TCFD recommendations,  
did a review of its governance model and conducted a pilot project in the 
energy sector. A detailed description of the introduction of the TCFD 
­recommendations can be found on page 21. In addition, the exposure to 
­climate risks through Swedbank’s lending is presented in note G3 and for 
Swedbank Robur’s investments in Swedbank Robur’s annual report for 
2019. Swedbank reports Scope 1, Scope 2 and Scope 3 GHG emissions as 
well as the climate goals that the bank has adopted to manage climate 
related risks and opportunities on pages 16, 23 and 204.
Precautionary principle
Swedbank follows the UN Global Compact’s 10 principles, which include  
the precautionary principle. The bank has integrated sustainability risk 
analyses in its central processes and takes, among others, the following 
precautionary measures:
•	 In dialogue with customers and suppliers, sector guidelines are applied 
with information on specific risks, opportunities and recommendations 
related to various industries’ sustainability problems.
•	 Sustainability risks are assessed as part of the financial analysis in 
­connection with investments and lending.
•	 The bank’s employees receive mandatory internal training on sustain­
able banking, ethics, the code of conduct, money laundering and 
­terrorist financing.
•	 Through the bank’s ISO 14001-certified environmental management 
system, an annual analysis and assessment is made of the Group’s 
environ­mental impacts and compliance with laws and environmental 
requirements from authorities and stakeholders.
•	 In partnership with the ECPAT Sweden, Swedbank works actively to put 
an end to commercial child pornography by preventing payments 
through the financial system.
•	 Units throughout the Group can escalate sustainability issues related  
to business ethics, the environment and human rights to Swedbank’s 
Business Ethics Committee for recommendation and guidance.
216
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY

Signatures of the Board of Directors  
and the CEO
The Board of Directors and the President hereby affirm that the 
annual report has been prepared in accordance with the Act on 
Annual Accounts in Credit Institutions and Securities Companies 
(ÅRKL), the instructions and general guidelines of the Swedish 
Financial Supervisory Authority (FFFS 2008:25) and the Swedish 
Financial Accounting Standards Council’s recommendation RFR 2 
Accounting for Legal Entities, and provides an accurate portrayal 
of the Parent Company’s position and earnings and that the Board 
of Directors’ Report provides an accurate review of trends in the 
company’s operations, position and earnings, as well as describes 
significant risks and instability factors faced by the company. 
The Board of Directors and the President hereby affirm that the 
consolidated accounts have been prepared in accordance with the 
International Financial Reporting Standards (IFRS), as adopted by 
the EU, and provide an accurate portrayal of the Group’s position 
and earnings and that the Board of Directors’ report for the Group 
provides an accurate review of trends in the Group’s operations, 
position and earnings, as well as describes significant risks and 
instability factors faced by the Group.
	
	
Stockholm, 18 February 2020
	
Göran Persson	
Bo Magnusson
	
Chair	
Vice Chair
	
Bodil Eriksson	
Mats Granryd	
Kerstin Hermansson 	
Bo Johansson
	
Josefin Lindstrand 	
Anna Mossberg	
Magnus Uggla
	
Camilla Linder	
	
Roger Ljung
	
Employee representative	
	
Employee representative
	
	
Jens Henriksson 
	
	
President and CEO
	
	
	
	
Our auditors’ report was submitted on 19 February 2020
PricewaterhouseCoopers AB
	
Anneli Granqvist	
Martin By
	
Authorised Public Accountant	
Authorised Public Accountant
	
Auditor in charge
217
Swedbank Annual and Sustainability Report 2019
SIGNATURES OF THE BOARD OF DIRECTORS AND THE CEO

Auditors’ report
To the annual meeting of the shareholders of Swedbank AB 
(publ), corporate identity number 502017-7753
REPORT ON THE ANNUAL ACCOUNTS  
AND CONSOLIDATED ACCOUNTS
Opinions
We have audited the annual accounts and consolidated accounts 
of Swedbank AB (publ) for the financial year 2019 except for the 
corporate governance statement on pages 34–51. The annual 
accounts and consolidated accounts of the company are included 
on pages 26–192 in this document.
In our opinion, the annual accounts have been prepared in 
accordance with the Annual Accounts Act for Credit Institutions 
and Securities Companies and present fairly, in all material 
respects, the financial position of parent company as of 31 
December 2019 and its financial performance and cash flow for 
the year then ended in accordance with the Annual Accounts Act 
for Credit Institutions and Securities Companies. The consolidated 
accounts have been prepared in accordance with the Annual 
Accounts Act for Credit Institutions and Securities Companies and 
present fairly, in all material respects, the financial position of the 
group as of 31 December 2019 and their financial performance 
and cash flow for the year then ended in accordance with Interna-
tional Financial Reporting Standards (IFRS), as adopted by the EU, 
and the Annual Accounts Act for Credit Institutions and Securities 
Companies. Our opinions do not cover the corporate governance 
statement on pages 34–51. The statutory administration report 
is consistent with the other parts of the annual accounts and con-
solidated accounts.
We therefore recommend that the general meeting of share-
holders adopts the income statement and balance sheet for the 
parent company and the group.
Our opinions in this report on the annual accounts and consoli-
dated accounts are consistent with the content of the additional 
report that has been submitted to the parent company’s audit 
committee in accordance with the Audit Regulation (537/2014) 
Article 11.
Basis for Opinions
We conducted our audit in accordance with International Stand-
ards on Auditing (ISA) and generally accepted auditing standards 
in Sweden. Our responsibilities under those standards are further 
described in the Auditor’s Responsibilities section. We are inde-
pendent of the parent company and the group in accordance with 
professional ethics for accountants in Sweden and have other-
wise fulfilled our ethical responsibilities in accordance with these 
requirements. This includes that, based on the best of our knowl-
edge and belief, no prohibited services referred to in the Audit 
Regulation (537/2014) Article 5.1 have been provided to the 
audited company or, where applicable, its parent company or its 
controlled companies within the EU.
We believe that the audit evidence we have obtained is suffi-
cient and appropriate to provide a basis for our opinions.
Other matter
The audit of the annual accounts and consolidated accounts for 
year 2019 was performed by another auditor who submitted an 
auditor´s report dated 19 February 2019, with unmodified opin-
ions in the Report on the annual accounts and consolidated 
accounts.
Our audit approach
Audit scope
We designed our audit by determining materiality and assessing 
the risks of material misstatement in the consolidated financial 
statements. In particular, we considered where management and 
the Board of Directors made subjective judgements; for example, 
in respect of significant accounting estimates that involved mak-
ing assumptions and considering future events that are inherently 
uncertain. As in all of our audits, we also addressed the risk of 
management override of internal controls, including among other 
matters consideration of whether there was evidence of bias that 
represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform suffi-
cient work to enable us to provide an opinion on the consolidated 
financial statements as a whole, taking into account the structure 
of the Group, the accounting processes and controls, and the 
industry in which the group operates.
Swedbanks banking activities in all countries are audited by 
local PwC audit teams. The Swedbank group has centralised ser-
vice centers, systems and processes for a number of processen. 
We have organized the audit work by having our central audit 
team to carry out the testing of all centralized systems and pro-
cesses. Local audit teams carry out additional testing based on 
our instructions.
Full scope audit and reporting is performed at entities with 
high significance and risk to the group. The audit is carried out in 
accordance with International Standards on Audit and local audit 
requirements. The procedures applied generally include an assess-
ment and testing of controls over key business processes, analyti-
cal procedures of individual account balances, tests of accounting 
records through inspection, observation or confirmation, and 
obtaining corroborating evidential matter in response to inquiries.
For some entities, even though not considered to have high 
significance or risk, it is required from a group audit perspective to 
obtain assurance on certain accounting areas. In these cases, local 
audit teams are instructed to perform certain procedures and 
report back to us. The procedures applied generally include a 
detailed analytical review, reconciliation to underlying sub-ledg-
ers, substantive testing for specific processes, areas and 
accounts, discussion with management regarding accounting, tax 
and internal control as well as follow-ups on known issues from 
previous periods.
As part of our audit we place reliance on internal controls for 
the business processes, applications/systems and related plat-
forms that support Swedbank’s accounting and financial report-
ing. Therefore, we perform audit procedures to determine that 
systems and processes are designed, maintained, operated and 
kept secure in such a way as to provide assurance that the risk of 
error is minimised. The audit procedures include walk-throughs of 
processes and evaluation of design and test of effectiveness of 
controls. Substantive testing has also been performed. 
Our audit is carried out continuously during the year with spe-
cial attention at each quarter end. In connection with the Swed-
bank group’s issuance of interim reports, we report our observa-
tions to the audit committee of the Board of Directors and issue 
218
Swedbank Annual and Sustainability Report 2019
AUDITORS’ REPORT

interim review reports. At the end of the year, we also report our 
main observations to the Board of Directors.
Materiality
The scope of our audit was influenced by our application of mate-
riality. An audit is designed to obtain reasonable assurance 
whether the financial statements are free from material mis-
statement. Misstatements may arise due to fraud or error. They 
are considered material if individually or in aggregate, they could 
reasonably be expected to influence the economic decisions of 
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain 
quantitative thresholds for materiality, including the overall 
group materiality for the consolidated financial statements as 
a whole. These, together with qualitative considerations, helped 
us to determine the scope of our audit and the nature, timing and 
extent of our audit procedures and to evaluate the effect of mis-
statements, both individually and in aggregate on the financial 
statements as a whole.
Key audit matters
Key audit matters of the audit are those matters that, in our pro-
fessional judgment, were of most significance in our audit of the 
annual accounts and consolidated accounts of the current period. 
These matters were addressed in the context of our audit of, and 
in forming our opinion thereon, the annual accounts and consoli-
dated accounts as a whole, but we do not provide a separate opin-
ion on these matters.
Other Information than the annual accounts  
and consolidated accounts
This document also contains other information than the annual 
accounts and consolidated accounts and is found on pages 1–25, 
193–216 and 223–233. The Board of Directors and the Managing 
Director are responsible for this other information. 
Our opinion on the annual accounts and consolidated accounts 
does not cover this other information and we do not express any 
form of assurance conclusion regarding this other information.
In connection with our audit of the annual accounts and con-
solidated accounts, our responsibility is to read the information 
identified above and consider whether the information is materi-
ally inconsistent with the annual accounts and consolidated 
accounts. In this procedure we also take into account our knowl-
edge otherwise obtained in the audit and assess whether the 
information otherwise appears to be materially misstated.
If we, based on the work performed concerning this informa-
tion, conclude that there is a material misstatement of this other 
information, we are required to report that fact. We have nothing 
to report in this regard.
Responsibilities of the Board of Directors and  
the Managing Director
The Board of Directors and the Managing Director are responsible 
for the preparation of the annual accounts and consolidated 
accounts and that they give a fair presentation in accordance with 
the Annual Accounts Act for Credit Institutions and Securities 
Companies and, concerning the consolidated accounts,  
Key audit matter
How our audit addressed the Key audit matter
Impairment of loans to customers
Accounting for impairment of loans to customers requires subjective judge-
ment over both timing of recognition of impairment and the size of any such 
impairment. Swedbank makes provisions for expected credit losses (ECL) in 
accordance with IFRS 9 which categorises loans into three stages depend-
ing on the level of credit risk or changes in credit risk for each individual loan. 
Stage 1 representing a probable 12 month ECL applies to all loans unless 
there is a significant increase in credit risk since initial recognition. For loans 
where there is a significant increase in credit risk, stage 2, or loans in 
default, stage 3, a lifetime ECL is calculated.
The ECL is calculated as a function of the probability of default, the 
exposure at default and the loss given default, as well as the timing of the 
loss. IFRS 9 also allows for expert credit judgement to be applied to loan loss 
provisioning.
Refer to Annual Report note G2 and P1 Accounting policies for critical 
judgments and estimates, G3 and P2 Risks for credit risk disclosures and 
note G17 and P13 Credit Impairments. 
Our audit included a combination of testing of internal controls over finan-
cial reporting and substantive testing. The testing of internal controls 
included procedures relating to the governance structure, segregation of 
duties and key controls in the lending processes.
In addition, our quantitative modelling experts have performed detailed 
recalculations for a sample of loans and model outputs in order for us to 
obtain comfort that the ECL is calculated correctly and that it is in line with 
our expectations. These recalculations were performed on the most signifi-
cant models used in the portfolio.
We have also audited adjustments to model calculations related to 
expert credit judgement. We have assessed that rationale exists to have 
these adjustments accounted for at year end and we have reviewed min-
utes of credit committee and risk committee meetings to ensure that the 
correct governance procedures have been performed over these expert 
credit judgement adjustments.
Valuation of complex or illiquid financial instruments held  
at fair value
The valuation of financial instruments held at fair value was an area of audit 
focus due to their significance in presenting both financial position and per-
formance. As at 31 December 2019, financial instruments measured at fair 
valued comprised assets of SEK 397 billion and liabilities of SEK 312 billion.
Determining fair value of financial instruments is inherently complex as 
many instruments are complex whilst input values to valuation models such 
as risks and market prices are ever changing. For some instruments there is 
also limited availability of observable prices or rates. Because of these fac-
tors, the valuation of some instruments involves significant judgement. 
The majority of Swedbank’s assets and liabilities measured at fair value 
are held for client facilitation, liquidity or hedging purposes. Between 
99-100% of the positions are fair valued based on observable prices or 
rates traded in active markets. The remaining 0-1% of the positions are val-
ued based on models and are mainly strategic investments and certain 
derivatives held for hedging purposes.
Refer to the Annual Report note G2 and P1 Accounting policies for criti-
cal judgments and estimates, note G3 and P2 Risks for related market risk 
disclosures note G45 Valuation categories of financial instruments, note 
G46 and P40 Fair value of financial instruments.
In our audit, we assessed the design and tested the operating effectiveness 
of key controls supporting the identification, measurement and oversight 
of valuation risk of financial instruments.
In addition to tests of appropriate segregation of duties, we examined 
Swedbank’s model validation and approval processes, controls over data 
feeds and valuation inputs as well as Swedbank’s governance and reporting 
processes and controls. 
For valuations dependent on unobservable inputs or models which 
involved a higher degree of judgement for other reasons, we used our valu-
ation specialists to evaluate the assumptions, methodologies and models 
used by Swedbank. We performed independent valuations of a sample of 
positions.
219
Swedbank Annual and Sustainability Report 2019
AUDITORS’ REPORT

in accordance with IFRS as adopted by the EU and the Annual 
Accounts Act for Credit Institutions and Securities Companies. The 
Board of Directors and the Managing Director are also responsible 
for such internal control as they determine is necessary to enable 
the preparation of annual accounts and consolidated accounts 
that are free from material misstatement, whether due to fraud 
or error.
In preparing the annual accounts and consolidated accounts, 
The Board of Directors and the Managing Director are responsible 
for the assessment of the company’s and the group’s ability to 
continue as a going concern. They disclose, as applicable, matters 
related to going concern and using the going concern basis of 
accounting. The going concern basis of accounting is however not 
applied if the Board of Directors and the Managing Director 
intends to liquidate the company, to cease operations, or has no 
realistic alternative but to do so.
The Audit Committee shall, without prejudice to the Board of 
Director’s responsibilities and tasks in general, among other 
things oversee the company’s financial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether 
the annual accounts and consolidated accounts as a whole are 
free from material misstatement, whether due to fraud or error, 
and to issue an auditor’s report that includes our opinions. Rea-
sonable assurance is a high level of assurance, but is not a guaran-
tee that an audit conducted in accordance with ISAs and generally 
accepted auditing standards in Sweden will always detect a mate-
rial misstatement when it exists. Misstatements can arise from 
fraud or error and are considered material if, individually or in the 
aggregate, they could reasonably be expected to influence the 
economic decisions of users taken on the basis of these annual 
accounts and consolidated accounts.
A further description of our responsibility for the audit of the 
annual accounts and consolidated accounts is available on 
Revisors­inspektionen’s website www.revisorsinspektionen.se/
revisornsansvar. This description is part of the auditor´s report.
REPORT ON OTHER LEGAL AND REGULATORY 
­REQUIREMENTS
Opinions
In addition to our audit of the annual accounts and consolidated 
accounts, we have also audited the administration of the Board of 
Directors and the Managing Directors of Swedbank AB (publ) for 
the financial year 2019 and the proposed appropriations of the 
company’s profit or loss.
We recommend to the general meeting of shareholders that 
the profit be appropriated in accordance with the proposal in the 
statutory administration report.
As a consequence of the circumstances described in the sec-
tion Basis for Opinions we do not recommend the general meeting 
of shareholders to discharge the former Managing Director Bir-
gitte Bonnesen from liability for the financial year. 
We recommend the general meeting of shareholders that the 
members of the Board of Directors and the other Managing Direc-
tors be discharged from liability for the financial year.
Basis for Opinions
As disclosed in the Board of Directors’ report, the FSA’s in Sweden 
and Estonia announced the launch of a joint money laundering 
investigation against Swedbank. US authorities also launched 
investigations of Swedbank during the year. As also disclosed in 
the Board of Directors’ report the Swedish Economic Crimes 
Agency has initiated a preliminary investigation regarding sus-
pected fraud against investors and unauthorised disclosure of 
inside information. The preliminary investigation, which in part 
refers to events that occurred in 2019, encompass statements 
made by the previous managing director Birgitte Bonnesen. We 
stress that, as of today, she has not been formally suspected of 
crime. If the preliminary investigation concludes with prosecution 
there is a risk that the court may sentence Swedbank to pay a cor-
porate fine or that the Swedish Financial Supervisory Authority 
may sentence Swedbank to pay a sanction fee. It can not be 
excluded that these enquiries can result in significant sanctions 
for Swedbank. Nor can it be ruled out that claims for damages may 
be directed against the bank.
Key audit matter
How our audit addressed the Key audit matter
Financial effects from regulatory investigations of money laundering
As disclosed in the Board of Directors’ report, the FSA’s in Sweden and Esto-
nia announced the launch of a joint money laundering investigation against 
Swedbank. US authorities also launched investigations of Swedbank during 
the year. These investigations could potentially lead to significant conse-
quences in the form of fines, withdrawn licenses, restrictions on currency 
trading and other (“the sanctions”). None of these investigations have been 
completed by today’s date. The Swedish and Estonian investigations are, 
as far as we know, in a phase where there will be a judicial review if there is 
grounds for sanction.
If any of the sanctions materialise, the financial effect could be signifi-
cant. Due to ongoing investigations, we have considered whether possible 
sanction fees should be accounted for as contingent liabilities. In assessing 
whether a provision for perceived penalty charges should be reported as a 
contingent liability, we have considered whether the criteria for reporting 
a reserve are met as of December 31, 2019. The criteria to be evaluated are: 
– if it is more likely than not that an economic outflow as a result of ongoing 
investigations will occur, and
 – if the amount of the sanction can be reliably estimated.
At present, Swedbank considers that it is not yet possible to reliably esti-
mate the timing or amount of any potential settlement or fines, which could 
be material. 
Please refer to the Annual Report, Board of Directors’ report, note G2 
and P1 Accounting policies for critical judgments and estimates and G50 
and P44 Assets pledged, contingent liabilities and commitments.
We have considered the extent to which any deficiencies in regulatory com-
pliance may affect the financial statements of the annual report. This 
includes accounting and disclosure regarding reserves and contingent lia-
bilities. We have assessed the risk that any of the ongoing investigations 
may result in effects that need to be presented in the annual report and, if 
so, to what amount and in what way this would occur.
We have not conducted a separate study regarding historical deficien-
cies in regulatory compliance. We have reviewed Swedbank’s assessments 
in relation to accounting and formed our own independent conclusion. 
We have performed this through the following activities
– Inspected correspondence between Swedbank and the authorities 
­investigating the bank.
– Inquiry meetings and review of reports and legal opinions from 
­Swedbank’s internal and external legal counsel.
– Regular inquiries with responsible parties in order to understand the 
­subject matter and communication with the applicable authorities. 
Responsible parties, include but are not limited to, the Risk committee of 
the board, the Audit committee of the board, the managing director, the 
Chief Financial Officer, the Group Compliance Officer, the Group Internal 
Auditor, the head of the Anti Financial Crime unit, and the head of Special 
investigations task force 
– Benchmark of accounting treatment of regulatory fines to other 
­European banks. 
220
Swedbank Annual and Sustainability Report 2019
AUDITORS’ REPORT

The outcome of the above mentioned investigations is uncertain. 
Therefore, it cannot be excluded that actions related to the for-
mer managing director Birgitte Bonnesen could harm Swedbank 
in the form of fines or sanctions. Taking this uncertainty into 
account, we recommend the general meeting of shareholders not 
to discharge Birgitte Bonnesen from liability.
We conducted the audit in accordance with generally accepted 
auditing standards in Sweden. Our responsibilities under those 
standards are further described in the Auditor’s Responsibilities 
section. We are independent of the parent company and the group 
in accordance with professional ethics for accountants in Sweden 
and have otherwise fulfilled our ethical responsibilities in accord-
ance with these requirements.
We believe that the audit evidence we have obtained is suffi-
cient and appropriate to provide a basis for our opinions.
Other matter
As stated above under Basis for Opinions, we have recommended 
the Annual General Meeting not to grant the former CEO Birgitte 
Bonnesen discharge from liability for possible negligence attrib-
utable to the 2019 financial year. For this reason, we have exam-
ined in particular whether the Board of Directors in the serious sit-
uation that arose during the spring of 2019 made its own 
assessment of the Bank’s exposure and the possibility of taking 
action in order to limit potential negative consequences. In our 
review, we have found that the Board of Directors, after consider-
ation in consultation with experts, including legal expertise, has 
taken reasonable measures in view of the circumstances. Our rec-
ommendation to grant the Board members discharge from liability 
should be seen against this background.
Responsibilities of the Board of Directors and  
the Managing Director
The Board of Directors is responsible for the proposal for appro-
priations of the company’s profit or loss. At the proposal of a divi-
dend, this includes an assessment of whether the dividend is justi-
fiable considering the requirements which the company’s and the 
group’s type of operations, size and risks place on the size of the 
parent company’s and the group’s equity, consolidation require-
ments, liquidity and position in general.
The Board of Directors is responsible for the company’s organ-
ization and the administration of the company’s affairs. This 
includes among other things continuous assessment of the com-
pany’s and the group’s financial situation and ensuring that the 
company’s organization is designed so that the accounting, man-
agement of assets and the company’s financial affairs otherwise 
are controlled in a reassuring manner. The Managing Director shall 
manage the ongoing administration according to the Board of 
Directors’ guidelines and instructions and among other matters 
take measures that are necessary to fulfill the company’s 
accounting in accordance with law and handle the management 
of assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and 
thereby our opinion about discharge from liability, is to obtain 
audit evidence to assess with a reasonable degree of assurance 
whether any member of the Board of Directors or the Managing 
Director in any material respect:
•	 has undertaken any action or been guilty of any omission which 
can give rise to liability to the company, or
•	 in any other way has acted in contravention of the Companies 
Act, the Banking and Financing Business Act, the Annual 
Accounts Act for Credit Institutions and Securities Companies 
or the Articles of Association.
Our objective concerning the audit of the proposed appropriations 
of the company’s profit or loss, and thereby our opinion about this, 
is to assess with reasonable degree of assurance whether the 
proposal is in accordance with the Companies Act.
Reasonable assurance is a high level of assurance, but is not a 
guarantee that an audit conducted in accordance with generally 
accepted auditing standards in Sweden will always detect actions 
or omissions that can give rise to liability to the company, or that 
the proposed appropriations of the company’s profit or loss are 
not in accordance with the Companies Act.
A further description of our responsibility for the audit of the 
administration is available on Revisorsinspektionen’s website: 
www.revisorsinspektionen.se/revisornsansvar. This description 
is part of the auditor´s report.
The auditor’s examination of the corporate governance statement
The Board of Directors is responsible for that the corporate gov-
ernance statement on pages 34–51 has been prepared in accord-
ance with the Annual Accounts Act.
Our examination of the corporate governance statement is 
conducted in accordance with FAR’s auditing standard RevU 16 
The auditor’s examination of the corporate governance state-
ment. This means that our examination of the corporate govern-
ance statement is different and substantially less in scope than an 
audit conducted in accordance with International Standards on 
Auditing and generally accepted auditing standards in Sweden. 
We believe that the examination has provided us with sufficient 
basis for our opinions.
A corporate governance statement has been prepared. Disclo-
sures in accordance with chapter 6 section 6 the second para-
graph points 2-6 of the Annual Accounts Act and chapter 7 sec-
tion 31 the second paragraph the same law are consistent with 
the other parts of the annual accounts and consolidated accounts 
and are in accordance with the Annual Accounts Act for Credit 
Institutions and Securities Companies.
PricewaterhouseCoopers AB, was appointed auditor of Swed-
bank AB (publ) by the general meeting of the shareholders on 
28 March 2019 and has been the company’s auditor since 2019.
Stockholm 19 February 2020
PricewaterhouseCoopers AB
	
Anneli Granqvist	
Martin By
	
Authorised Public Accountant	
Authorised Public Accountant
	
Auditor in charge
221
Swedbank Annual and Sustainability Report 2019
AUDITORS’ REPORT

Auditor’s Limited Assurance Report 
on Swedbank AB’s Sustainability 
Report and Opinion on the 
­Statutory Sustainability Report
This is a translation of the original report in Swedish
To the annual general meeting of Swedbank AB (publ.),  
corporate identity number 502017-7753
Introduction
We have been engaged by the Board of Directors and the Chief 
Executive Officer of Swedbank AB to undertake a limited assur-
ance of Swedbank AB’s Sustainability Report for the year 2019. 
The company has defined the scope of the sustainability report on 
page 194 in this document. The statutory sustainability report is 
defined on page 216.
Responsibilities of the Board and Management for 
the ­Sustainability Report
The Board of Directors and Group Management are responsible 
for preparing the Sustainability Report, including the Statutory 
Sustainability Report, in accordance with applicable criteria and 
the Annual Accounts Act. The criteria are described on page 194 
of the Sustainability Report, and consist of the parts of the frame-
work for sustainability reports published by GRI (Global Reporting 
Initiative) that are applicable to the sustainability report, as well 
as the accounting and calculation principles that Swedbank AB 
has developed. This responsibility also includes the internal con-
trol which is deemed necessary to establish a sustainability report 
that does not contain material misstatement, whether due to 
fraud or error.
Responsibilities of the Auditor
Our responsibility is to express a conclusion on the sustainability 
report based on o the limited assurance procedures we have per-
formed and to provide an opinion on the statutory sustainability 
report. Our assignment is limited to the historical information that 
is presented and thus does not include future-oriented information. 
We conducted our limited assurance engagement in accord-
ance with ISAE 3000 Assurance engagements Other than Audits 
or Reviews of Historical Financial Information. A limited assurance 
engagement consists of making inquiries, primarily of persons 
responsible for the preparation of the Sustainability Report, and 
applying analytical and other limited assurance procedures. We 
have conducted our review regarding the statutory sustainability 
report in accordance with FAR’s recommendation RevR 12, the 
Auditor’s Opinion on the Statutory Sustainability Report. A lim-
ited assurance engagement and a review according to RevR 12 
have a different focus and a considerably smaller scope compared 
to the focus and scope of an audit in accordance with International 
Standards on Auditing and generally accepted auditing standards.
The audit firm applies ISQC 1 (International Standard on 
­Quality Control) and accordingly maintains a comprehensive 
system of quality control including documented policies and 
­procedures regarding compliance with ethical requirements, 
professional standards and applicable legal and regulatory 
requirements. We are independent in relation to Swedbank AB 
according to generally accepted auditing standards in Sweden 
and have fulfilled our professional ethics responsibility according 
to these requirements.
The procedures performed in a limited assurance engagement 
and review according to RevR 12 do not allow us to obtain such 
assurance that we become aware of all significant matters that 
could have been identified if an audit was performed.
The stated conclusion based on a limited assurance and review 
in accordance with RevR 12, therefore, does not have the security 
that a stated conclusion based on an audit has. Our procedures are 
based on the criteria defined by the Board of Directors and the 
Group Management as described above. We consider these criteria 
as suitable for the preparation of the Sustainability Report.
We believe that the evidence we have obtained is sufficient 
and appropriate to provide a basis for our conclusion below.
Conclusion
Based on the limited assurance procedures we have performed, 
nothing has come to our attention that causes us to believe that 
the Sustainability Report is not, in all material respects, prepared in 
accordance with the criteria defined by the Board of Directors and 
Group Management. 
A Statutory Sustainability Report has been prepared.
Stockholm, 19th of February 2020
PricewaterhouseCoopers AB
Anneli Granqvist	
Karin Juslin
Authorised Public Accountant 	
Expert Member of FAR
222
Swedbank Annual and Sustainability Report 2019
SUSTAINABILITY REPORT – ASSURANCE REPORT

Annual General Meeting
The Annual General Meeting will be held at Cirkus,  
Djurgårdsslätten 43–45, Stockholm on Thursday,  
26 March 2020 at 11.00 am (CET).
Notification of attendance
Shareholders who wish to attend the Annual General Meeting must:
•	 be recorded in the share register maintained by Euroclear 
­Sweden AB (“Euroclear”) on 20 March 2020 (the Record date).
•	 give notice of their attendance, and the number of any advisors 
(not more than two), to Swedbank’s head office no later than 
20 March 2020.
Notification may be submitted online at www.swedbank.com/ir, 
under Corporate Governance/Annual General Meeting, or in writ-
ing to Swedbank AB, “Swedbank´s AGM”, c/o Euroclear Sweden 
AB, Box 191, SE-101 23 Stockholm, Sweden, or by telephone  
+46 8 402 90 60. Shareholders represented by proxy or a repre-
sentative should submit a power of attorney, registration certifi-
cate or other documents of authority to Swedbank at the address 
above well before the Meeting, preferably no later than 20 March, 
2020. Power of attorney forms are available on the bank’s 
­website at http://www.swedbank.com/ir.
Nominee-registered shares
Shareholders whose shares are nominee-registered must – in 
addition to giving notice of their attendance – request that the 
shares be temporarily re-registered in their own name at Euro-
clear. Such registration should be requested at the nominee well 
before the Record Date (i.e. 20 March, 2020).
Notice and agenda
A list of the items on the agenda for the Annual General Meeting is 
included in the notice of the meeting. The notice will be published 
19 February 2020 at http://www.swedbank.com/ir under the 
heading Annual General Meeting and in Post och Inrikes Tidningar 
(The Official Swedish Gazette) on 21 February. An announcement 
of notice publication will also be published in Dagens Nyheter and 
elsewhere.
Dividend
The Board of Directors recommends that shareholders receive 
a dividend of SEK 8.80 per ordinary share. The proposed record 
day for the dividend is 30 March 2020. The last day for trading in 
Swedbank’s shares including the right to the dividend is 26 March 
2020. If the Annual General Meeting adopts the Board of Directors’ 
recommendation, the dividend is expected to be paid by Euroclear 
on 2 April 2020.
223
Swedbank Annual and Sustainability Report 2019
ANNUAL GENERAL MEETING

Market shares
Market shares, per cent
Volumes, SEKbn
Sweden
2019
2018
2017
2016
2015
2019
2018
2017
2016
2015
Private Market
Deposits1
19
20
20
20
20
384
381
357
337
310
Lending
22
23
23
23
23
921
904
867
825
770
 of which mortgage lending
24
24
24
25
25
820
800
761
720
665
Bank Cards (thousands)
n.a.
n.a.
n.a.
n.a.
n.a.
4 345
4 291
4 226
4 152
4 066
Corporate Market
Deposits1
16
18
17
18
17
190
186
173
163
140
Lending1
17
18
18
20
20
418
415
399
403
391
Market shares, per cent
Volumes, SEKbn
Baltic countries
2019
2018
2017
2016
2015
2019
2018
2017
2016
2015
Private Market
Estonia (as of 2019-11)
Deposits
50
55
55
55
55
43
43
39
35
30
Lending
44
47
46
47
47
40
40
36
33
30
 of which mortgage lending
45
46
46
46
46
36
36
33
30
27
Bank Cards (thousands)  
(as of 2019-09)
62
62
60
60
60
966
966
1 118
1 108
1 104
Latvia (as of 2019-09)
Deposits
32
34
32
31
28
30
29
26
24
20
Lending
33
33
31
31
29
18
18
17
16
15
 of which mortgage lending
38
37
34
34
31
16
15
14
14
13
Bank Cards (thousands)
47
46
45
43
43
1012
1 007
1 000
988
982
Lithuania (as of 2019-09)
Deposits
43
42
40
40
37
60
54
47
43
34
Lending
38
35
34
34
28
38
33
29
26
19
 of which mortgage lending
38
35
33
33
26
34
30
26
23
16
Bank Cards (thousands)
52
51
51
50
48
1 666
1 664
1 673
1 705
1 659
Market shares, per cent
Volumes, SEKbn
Baltic countries
2019
2018
2017
2016
2015
2019
2018
2017
2016
2015
Corporate Market
Estonia (as of 2019-11)
Deposits
45
47
43
43
41
40
40
35
35
32
Lending
38
37
37
34
34
42
42
37
34
31
Latvia (as of 2019-09)
Deposits
24
25
15
15
12
19
19
17
19
18
Lending
20
19
17
16
17
18
16
15
15
17
Lithuania (as of 2019-09)
Deposits
26
27
25
25
24
23
21
18
17
13
Lending
20
19
18
18
23
23
20
18
19
21
1) Swedbank has updated the definitions of corporate lending and deposits in Sweden from Q2 2018. Corporate lending includes lending to non-financial corporations. Corporate deposits includes deposits 
from non-financial corporations. Previous periods have been restated.
224
Swedbank Annual and Sustainability Report 2019
MARKET SHARES

Five-year summary
Key ratios
2019
2018
2017
2016
2015
Profit
Return on equity, %
14.7
16.1
15.1
15.8
13.5
Return on equity continuing operations, %
14.7
16.1
15.1
15.8
13.5
Return on total assets, %
0.79
0.84
0.79
0.82
0.67
Cost/income ratio
0.43
0.38
0.39
0.38
0.43
Net interest margin before trading interest is deducted, %
1.06
1.02
1.03
1.01
0.98
Capital adequacy
Common Equity Tier 1 ratio, %
17.0
16.3
24.6
25.0
24.1
Tier 1 capital ratio, %
19.4
18.0
27.3
28.7
26.9
Total capital ratio, %
21.8
21.5
30.7
31.8
30.3
Common Equity Tier 1 capital
110 073
103 812
100 510
98 679
93 926
Tier 1 capital
126 226
114 761
111 560
112 960
104 550
Total own Funds
141 554
136 993
125 256
125 189
117 819
Risk exposure amount
649 237
637 882
408 351
394 135
389 098
Credit quality
Credit impairment ratio, %
0.09
0.03
0.08
0.09
0.04
Total credit impairment provision ratio, %
0.40
0.37
n/a
n/a
n/a
Share of Stage 3 loans, gross, %
0.82
0.69
n/a
n/a
n/a
Share of impaired loans, gross, %
n/a
n/a
0.55
0.52
0.40
Provision ratio for impaired loans, %
n/a
n/a
34
33
40
Total provision ratio for impaired loans, %
n/a
n/a
45
46
56
Other data
2019
2018
2017
2016
2015
Private customers, million1
7
7.3
7.4
7.3
7.2
Corporate customers, thousands1
618
620
625
651
640
Full-time employees
15 218
14 865
14 588
14 061
13 893
Branches1
475
519
565
603
658
ATMs1
1 162
1 166
1 199
1 238
1 290
1) Including savings banks and partly owned banks.
225
Swedbank Annual and Sustainability Report 2019
FIVE-YEAR SUMMARY – GROUP

Comments to five-year ­summary
2019 – Profit for the year decreased 7 per cent to SEK 19 697m, compared 
with SEK 21 162m 2018. Higher income was offset by higher expenses 
and credit impairments in 2019. Income rose 4 per cent to SEK 45 960m 
(44 222). Expenses rose to SEK 19 984m (16 835), mainly related to higher 
staff costs and investigative costs connected with money laundering. 
Credit impairments increased to SEK 1 469m (521) and mainly related 
to additional provisions for a few oil-related problem loans.
2018 – Profit for the year rose 9 per cent to SEK 21 162m, compared 
with SEK 19 350m 2017. The increase was due to higher net interest 
income and net commission income as well as an increase in other income. 
Lower credit impairments also contributed positively. Income increased 
5 per cent to SEK 44 222m (42 203). Expenses rose to SEK 16 835m 
(16 415), largely due to increased staff costs following the acquisition of 
PayEx. Credit impairments according to IFRS 9 amounted to SEK 521m.
2017 – Profit for the year decreased to SEK 19 350m, compared with 
SEK 19 539m in the equivalent period in 2016, mainly because the 2016 
result was positively affected by a gain of SEK 2 115m on the sale of  
Visa Europe. Income increased 4 per cent to SEK 42 438m (40 821). 
Expenses rose to SEK 16 415m (15 627) mainly due to increased staff 
costs. A restructuring reserve of SEK 300m was established during the 
year due to changes in the IT organisation. PayEx added SEK 194m to 
expenses. FX effects raised expenses by SEK 64m. Credit impairments fell 
to SEK 1 285m (1 367) due to lower provisions for oil related commitments 
within Large Corporates & Institutions. Credit impairments increased in 
Swedish Banking due to provisions for a number of individual commitments 
while Baltic Banking­reported net recoveries.
2016 – Profit for the year increased by 24 per cent to SEK 19 539m 
(15 727). Increased income, mainly due to the sale of Visa Europe, improved 
net gains and losses on financial items within Group Treasury and higher 
net interest income contributed positively to the result. 
Expenses decreased to SEK 15 627m (15 816). The main reason was 
higher compensation to the savings banks due to higher lending margins 
during the year. Staff costs amounted to SEK 9 376m (9 395). Credit 
impairments increased to SEK 1 367m (594) due to increased provisions 
within Large Corporates & Institutions for oil related commitments,  
while Swedish Banking and Baltic Banking reported net recoveries during 
the period.
2015 – The result for the year decreased by 4 per cent, mainly due to 
lower net gains and losses on financial items at fair value and a one-off  
tax expense. Expenses decreased by 7 per cent and was due to one-off 
expenses of SEK 615m in connection with the acquisition of Sparbanken 
Öresund in 2014, but also due to efficiencies. Impairment of intangible 
assets consisted of an IT system writedown and the writedown of a previ-
ously acquired asset management assignment. Total lending to the public, 
excluding repos and the Swedish National Debt Office, increased by 3 per 
cent, primarily driven by private mortgage lending. Swedbank’s increased 
deposits were mainly driven by Swedish Banking.
Income statement, SEKm
2019
2018
2017
2016
2015
Net interest income
25 989
25 228
24 595
22 850
22 476
Net commissions
12 984
12 836
12 206
11 502
11 199
Net gains and losses on financial items
3 629
2 112
1 934
2 231
571
Net insurance
1 465
1 192
937
754
708
Share of profit or loss of associates and joint ventures
822
1 028
736
2 263
863
Other income
1 071
1 826
1 795
1 017
1 290
Total income
45 960
44 222
42 203
40 617
37 107
Staff costs
11 119
10 284
9 945
9 376
9 395
Other expenses
7 314
5 865
5 870
5 622
5 749
Depreciation/amortisation of tangible and intangible fixed assets
1 551
686
600
629
672
Total expenses
19 984
16 835
16 415
15 627
15 816
Profit before impairments
25 976
27 387
25 788
24 990
21 291
Impairments of intangible fixed assets
79
306
175
35
254
Impairments of tangible fixed assets
8
8
21
31
72
Credit impairments
1 469
521
1 285
1 367
594
Operating profit
24 420
26 552
24 307
23 557
20 371
Tax expense
4 711
5 374
4 943
4 005
4 625
Profit from continuing operations
19 709
21 178
19 364
19 552
15 746
Profit for the period from discontinued operations, after tax
–6
Profit for the year
19 709
21 178
19 364
19 552
15 740
Profit for the year attributable to: 
Shareholders in Swedbank AB
19 697
21 162
19 350
19 539
15 727
Non-controlling interests
12
16
14
13
13
226
Swedbank Annual and Sustainability Report 2019
FIVE-YEAR SUMMARY – GROUP

Balance sheet, SEKm
2019
2018
2017
2016
2015
Loans to credit institutions
45 452
36 268
30 746
32 197
86 418
Loans to the public
1 652 296
1 627 368
1 535 198
1 507 247
1 413 955
Interest-bearing securities
Treasury bills and other bills eligible for refinancing with central banks
137 094
99 579
85 903
107 571
76 552
Bonds and other interest-bearing securities
57 367
53 312
59 131
74 501
88 610
Shares and participating interests
Financial assets for which customers bear the investment risk
224 893
177 868
180 320
160 114
153 442
Shares and participating interests
6 568
4 921
19 850
23 897
11 074
Shares and participating interests in associates
6 679
6 088
6 357
7 319
5 382
Derivatives
44 424
39 665
55 680
87 811
86 107
Others
233 455
201 023
239 451
153 546
227 315
Total assets
2 408 228
2 246 092
2 212 636
2 154 203 2 148 855
Amounts owed to credit institutions
69 686
57 218
68 055
71 831
150 493
Deposits and borrowings from the public
954 013
920 750
855 609
792 924
748 271
Debt securities in issue
855 754
804 360
844 204
841 673
826 535
Financial liabilities for which customers bear the investment risk
225 792
178 662
181 124
161 051
157 836
Derivatives
40 977
31 316
46 200
85 589
68 681
Other
80 634
81 993
58 364
44 176
49 084
Senior non-preferred liabilities
10 805
Subordinated liabilities
31 934
34 184
25 508
27 254
24 613
Equity
138 633
137 609
133 572
129 705
123 342
Total liabilities and equity
2 408 228
2 246 092
2 212 636
2 154 203 2 148 855
227
Swedbank Annual and Sustainability Report 2019
FIVE-YEAR SUMMARY – GROUP

Three-year summary 
Swedish Banking
SEKm
2019
2018
2017
Income statement
Net interest income
16 253
15 386
15 103
Net commissions
7 862
7 598
7 481
Net gains and losses on financial items 
433
406
398
Share of profit or loss of associates and joint ventures
839
693
654
Other income
985
1 484
1 311
Total income
26 372
25 567
24 947
Staff costs
2 933
3 101
3 131
Variable staff costs
53
71
103
Other expenses
6 147
5 793
5 619
Depreciation/amortization
234
57
67
Total expenses
9 367
9 022
8 920
Profit before impairments
17 005
16 545
16 027
Impairment of intangible assets
0
Impairment of tangible assets
Credit impairments
154
598
413
Operating profit
16 851
15 947
15 534
Tax expense
3 271
3 073
2 947
Profit for the year attributable to: 
Shareholders of Swedbank AB
13 568
12 858
12 573
Non-controlling interests
12
16
14
Balance sheet, SEKbn
Cash and balances with central banks
1
1
1
Loans to credit institutions
6
6
5
Loans to the public
1 196
1 187
1 150
Bonds and other interest-bearing securities
Financial assets for which customers bear inv. risk
219
173
176
Derivatives
Other assets
11
8
11
Total assets
1 433
1 375
1 346
Amounts owed to credit institutions
26
28
26
Deposits and borrowings from the public
571
566
530
Debt securities in issue
Financial liabilities for which customers bear inv. risk
220
174
177
Derivatives
Other liabilities
551
544
556
Subordinated liabilities
Total liabilities
1 368
1 312
1 289
Allocated equity
65
63
57
Total liabilities and equity
1 433
1 375
1 346
Income items
Income from external customers
26 309
25 512
24 845
Income from transactions with other business areas
63
55
102
Key ratios
Return on allocated equity, %
21.0
20.9
22.5
Loans/deposits
209
212
219
Loans, excluding repurchase agreements and Swedish National Debt Office, SEKbn
1196
1 187
1 150
Deposits, excluding repurchase agreements andSwedish National Debt Office, SEKbn
571
560
525
Credit impairment ratio, %
0.01
0.05
0.04
Cost/income ratio
0.36
0.35
0.36
Risk exposure amount
391
382
171
Full-time employees
3 610
3 833
3 978
Allocated equity, average, SEKbn
64
62
56
228
Swedbank Annual and Sustainability Report 2019
THREE-YEAR SUMMARY – BUSINESS SEGMENTS

SEKm
2019
2018
2017
Income statement
Net interest income
5 239
4 768
4 221
Net commissions
2 690
2 503
2 364
Net gains and losses on financial items 
286
272
220
Share of profit or loss of associates and joint ventures
Other income
831
737
621
Total income
9 046
8 280
7 426
Staff costs
1 091
954
865
Variable staff costs
56
57
51
Other expenses
1 981
1 833
1 658
Depreciation/amortization
175
91
102
Total expenses
3 303
2 935
2 676
Profit before impairments
5 743
5 345
4 750
Impairment of intangible assets
Impairment of tangible assets
8
8
21
Credit impairments
3
-208
-97
Operating profit
5 732
5 545
4 826
Tax expense
814
802
822
Profit for the year attributable to: 
Shareholders of Swedbank AB
4 918
4 743
4 004
Non-controlling interests
Balance sheet, SEKbn
Cash and balances with central banks
3
3
3
Loans to credit institutions
Loans to the public
186
169
149
Bonds and other interest-bearing securities
1
1
2
Financial assets for which customers bear inv. risk
6
5
4
Derivatives
Other assets
77
72
54
Total assets
273
250
212
Amounts owed to credit institutions
Deposits and borrowings from the public
241
221
185
Debt securities in issue
1
Financial liabilities for which customers bear inv. risk
6
5
4
Derivatives
Other liabilities
Subordinated liabilities
Total liabilities
248
226
189
Allocated equity
25
23
22
Total liabilities and equity
273
250
212
Income items
Income from external customers
9 046
8 280
7 426
Income from transactions with other business areas
Key ratios
Return on allocated equity, %
19.6
20.7
19.2
Loans/deposits
77
77
81
Loans, excluding repurchase agreements and Swedish National Debt Office, SEKbn
186
170
149
Deposits, excluding repurchase agreements andSwedish National Debt Office, SEKbn
241
221
185
Credit impairment ratio, %
0.00
-0.13
-0.07
Cost/income ratio
0.37
0.35
0.36
Risk exposure amount
94
89
82
Full-time employees
3 656
3 586
3 493
Allocated equity, average, SEKbn
25
23
21
Three-year summary 
Baltic Banking
229
Swedbank Annual and Sustainability Report 2019
THREE-YEAR SUMMARY – BUSINESS SEGMENTS

SEKm
2019
2018
2017
Income statement
Net interest income
3 776
3 982
3 548
Net commissions
2 321
2 605
2 428
Net gains and losses on financial items 
2 201
1 777
1 760
Share of profit or loss of associates and joint ventures
Other income
211
156
121
Total income
8 509
8 520
7 857
Staff costs
1 391
1 356
1 400
Variable staff costs
157
201
143
Other expenses
2 305
2 201
1 896
Depreciation/amortization
123
83
78
Total expenses
3 976
3 841
3 517
Profit before impairments
4 533
4 679
4 340
Impairment of intangible assets
0
Impairment of tangible assets
0
Credit impairments
1 312
142
969
Operating profit
3 221
4 537
3 371
Tax expense
740
977
721
Profit for the year attributable to: 
Shareholders of Swedbank AB
2 481
3 560
2 650
Non-controlling interests
Balance sheet, SEKbn
Cash and balances with central banks
9
2
8
Loans to credit institutions
81
116
54
Loans to the public
269
261
228
Bonds and other interest-bearing securities
44
47
27
Financial assets for which customers bear inv. risk
Derivatives
53
47
63
Other assets
16
15
35
Total assets
472
488
415
Amounts owed to credit institutions
184
209
179
Deposits and borrowings from the public
149
141
138
Debt securities in issue
10
13
18
Financial liabilities for which customers bear inv. risk
Derivatives
55
45
60
Other liabilities
46
-4
Subordinated liabilities
Total liabilities
444
408
391
Allocated equity
28
25
24
Total liabilities and equity
472
488
415
Income items
Income from external customers
8 347
8 393
7 812
Income from transactions with other business areas
162
127
45
Key ratios
Return on allocated equity, %
9.1
14.0
12.0
Loans/deposits, %
158
160
158
Loans, excluding repurchase agreements and Swedish National Debt Office, SEKbn
223
221
203
Deposits, excluding repurchase agreements andSwedish National Debt Office, SEKbn
142
139
128
Credit impairment ratio, %
0.47
0.06
0.40
Cost/income ratio
0.47
0.45
0.45
Risk exposure amount
144
146
137
Full-time employees
1 244
1 196
1 260
Allocated equity, average, SEKbn
27
25
22
Three-year summary 
Large Corporates & Institutions
230
Swedbank Annual and Sustainability Report 2019
THREE-YEAR SUMMARY – BUSINESS SEGMENTS

Definitions
CAPITAL REQUIREMENT REGULATIONS, CRR, STATED IN EU ­REGULATION NO 575/2013
Additional Tier 1 capital
Capital instruments and related share premium accounts that ­fulfill certain 
regulatory conditions after considering regulatory adjustments.
Average risk weight
Total risk exposure amount divided by the total exposure value for 
a ­number of exposures.
Common Equity Tier 1 capital
Capital consisting of capital instruments, related share premium accounts, 
retained earnings and other comprehensive income after considering 
­regulatory adjustments.
Common Equity Tier 1 capital ratio
Common Equity Tier 1 capital in relation to the total risk exposure amount.
Expected loss (EL)
Expected loss shall provide an indication of the mean value of the credit 
losses that Swedbank may reasonably be expected to incur. The expected 
loss (EL) is the product of the parameters PD, LGD and exposure value.
Exposure value IRB
The exposure after taking into account credit risk mitigation with substi-
tution effects and credit conversion factors, the exposure value is the 
value to which the risk weight is applied when calculating the risk exposure 
amount.
Leverage ratio
Tier 1 capital in relation to the total exposure measure, where the 
­exposure measure includes both on- and off-balance sheet items.
Loss given default (LGD)
Loss given default (LGD) measures how large a proportion of the exposure 
amount that is expected to be lost in the event of default.
Minimum capital requirement
The minimum capital a bank must hold for its credit, market, credit value 
adjustment, settlement and operational risks ­according to Pillar I,  
i.e. 8% of total risk exposure amount.
Net stable funding ratio (NSFR)
The Net Stable Funding Ratio measures an institutions’s amount of availa-
ble stable funding to its amount of required stable funding over a one-year 
horizon. The objective is to require institutions to hold a sufficiently large 
proportion of long-term stable funding in relation to long-term stable 
assets. The measure is defined by the amended Capital Requirements Reg-
ulation (EU) 2019/876 (“CRR2”). 
Own funds
The sum of Tier 1 and Tier 2 capital.
Probability of default (PD)
The probability of default (PD) indicates the risk that a counterparty 
or contract will default within a 12-month period.
Risk exposure amount
Risk weighted exposure value i.e. the exposure value after ­considering  
the risk inherent in the asset.
Tier 1 capital
The sum of Common Equity Tier 1 capital and Additional Tier 1 capital 
according to article 25 in CRR.
Tier 1 capital ratio
Tier 1 capital in relation to the total risk exposure amount.
Tier 2 capital
Capital instruments and subordinated loans and related share premium 
accounts that fulfill certain regulatory conditions after con­sidering 
­regulatory adjustments.
Total capital ratio
Own funds in relation to the total risk exposure amount.
ALTERNATIVE PERFORMANCE MEASURES
Allocated equity
Allocated equity is the operating segment’s equity measure and is not a 
measure that is directly required by IFRS. The Group’s equity attributable 
to shareholders is allocated to each operating segment based on capital 
adequacy rules and estimated capital requirements based on the bank’s 
internal Capital Adequacy Assessment Process (ICAAP).
Cost/income ratio 
Total expenses in relation to total income.
Credit impairment provision ratio Stage 3 loans
Credit impairment provisions Stage 3 in relation to the gross carrying 
amount Stage 3 loans.
Credit impairment ratio
Credit impairment on loans and other credit risk provisions, net, in relation 
to the opening balance of loans to credit institutions and loans to public 
after provisions. More information see page 43 in Facts.
Equity per share
Shareholders’ equity in relation to the number of shares outstanding.
Loan/deposit ratio
Lending to the public excluding Swedish National Debt Office and 
­repurchase agreements in relation to deposits from the public excluding 
­Swedish National Debt Office and repurchase agreements.
Investment margin 
Callculated as Net interest margin, in relation to ­average total assets. The 
average is calculated using month-end figures, including the prior year end.
Net investment margin before trading interest is deducted
Calculated as Net interest margin before trading interest is deducted, 
in relation to ­average total assets. The average is calculated using month-
end figures, including the prior year end.
231
Swedbank Annual and Sustainability Report 2019
DEFINITIONS

ALTERNATIVE PERFORMANCE MEASURES, CONT.
Return on allocated equity
Calculated based on profit for the financial year for the operating seg-
ments (operating profit less estimated tax and non-controlling interests), 
in relation to average allocated equity for the operating segment. The 
average is calculated using month-end figures, including the prior year end.
Return on equity 
Profit for the financial year allocated to shareholders in relation to average 
equity attributable to shareholders’ of the parent company. The average is 
calculated using month-end figures, including the prior year end.
Return on total assets
Profit for the financial year in relation to average total assets. The average 
is calculated using month-end ­figures, including the prior year end.
Share of Stage 3 loans, gross
Carrying amount of Stage 3 loans, gross, in relation to the carrying amount 
of loans to credit institutions and the public excluding provisions.
Total credit impairment provision ratio
Credit impairment provisions in relation to the gross carrying amount 
loans.
OTHER
Credit impairment
Established losses and provisions for the year less recoveries related  
to loans as well as the year’s net expenses for guarantees and other 
­contingent liabilities.
Default
Credit exposures are regarded to be in default if there has been an assess-
ment indicating that the counterpart is unlikely to pay its credit obligations 
as agreed or if the counterpart is past due more than 90 days.
Duration
The average weighted maturity of payment flows calculated at present 
value and expressed in number of years.
Earnings per share after dilution
Profit for the year allocated to shareholders in relation to the weighted 
average number of shares outstanding during the year, rights issue adjust-
ment factor included, adjusted for the dilution effect of potential shares.
Earnings per share before dilution
Profit for the year allocated to shareholders in relation to the weighted 
average number of shares outstanding during the year, rights issue adjust-
ment factor included.
Exposure at default (EAD)
Exposure at default (EAD) measures the utilised exposure at default. For 
off-balance sheet exposures, EAD is calculated by using a credit conversion 
factor (CCF) estimating the future ­utilisation level of unutilised amounts.
Interest fixing period
Contracted period during which interest on an asset or liability is fixed.  
Liquidity Coverage Ratio (LCR)
The LCR was introduced by the EU through the Delegated act on LCR in 
October 2015. The LCR is used to define a quantitative regulatory require-
ment on European banks’ liquidity risk. A LCR ratio above 100% implies 
that the bank has enough of liquid assets to cover its liquidity over 30 
­calendar day time horizon under a significantly severe liquidity stress 
­scenario.
Maturity
The time remaining until an asset or liability’s terms change or its  
maturity date.
Number of employees
The number of employees at year-end, excluding long-term ­absences,  
in relation to the number of hours worked expressed in terms of full-time 
positions.
P/E ratio
Market capitalisation at year-end in relation to Profit for the financial year 
allocated to shareholders. 
Price/equity
The share price at year-end in relation to the equity per share at year-end.
Restructured loan
A loan where the terms have been modified to more favorable for the 
­borrower, due to the borrower’s financial difficulties.
Total return
Share price development during the year including the actual ­dividend, 
in relation to the share price at the beginning of the year.
VaR
Value at Risk (VaR) is a statistical measure used to quantify market risk. 
VaR is defined as the expected maximum loss in value of a port­folio with 
a given probability over a certain time horizon.
Yield
Dividend per share in relation to the share price at year-end.
232
Swedbank Annual and Sustainability Report 2019
DEFINITIONS

Production: Springtime-Intellecta • Photography: Jenny Hallgren page 7, Board & Management, Swedbank’s image bank. 
Printing: BrandFactory, Stockholm
Contacts
Head office
Corp. No. 502017–7753
Visiting address: Landsvägen 40, 172 63 Sundbyberg
Mailing address: 105 34 Stockholm, Sweden
Telephone: +46 8 585 900 00
E-mail: info@swedbank.se
www.swedbank.com
 
Contact
Johan Eriksson
Acting Head of Group Communications
Telephone: +46 70-2850297 
E-mail: johan.b.eriksson@swedbank.se
 
Gregori Karamouzis
Head of Investor Relations
Telephone: +46 72 740 63 38
E-mail: gregori.karamouzis@swedbank.com
 
Fredrik Nilzén
Head of Sustainability
Telephone: +46 76 773 19 26
E-mail: fredrik.nilzen@swedbank.se

SWW-55658