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Regulatory Filings • Sep 29, 2023

SREP 2023 decision

SREP 2023 decision

The Swedish Financial Supervisory Authority ("SFSA") has informed the Bank of

its decision on the Supervisory Review and Evaluation Process ("SREP") 2023,

which applies from 29 September 2023.

The total effect of the decision implies small changes to the nominal capital

requirement compared to the previous year. The capital and liquidity

requirements are unchanged compared to the preliminary decision, for which

Swedbank published a press release on 1 July 2023.

The decision means that the Pillar 2 requirement ("P2R") increases by 0.32

percentage points for CET1 and by 0.40 percentage points for total capital

compared to last year's decision.

The change is mainly driven by a temporary add-on related to the on-going review

of IRB models, which will be partly offset by a decrease of the risk exposure

amount ("REA") voluntarily held by the bank in line with Article 3 in the

Capital Requirements Regulations. Meanwhile, the risk weight floor for

commercial real estate is transferred from P2R to REA in Pillar 1. In total, REA

is expected to increase slightly.

The Pillar 2 guidance for risk-weighted assets decreases by 0.50 percentage

points.

The Pillar 2 guidance for leverage ratio increases by 0.05 percentage points due

to an updated method for the SFSA's stress test.

No changes have been made in requirements or guidance for liquidity ratios.

Contact

Annie Ho, (annie.ho@swedbank.se) Head of Investor Relations, telephone: +46 70

343 78 15

Charlotte Nilsson (charlotte.nilsson@swedbank.se), Press communicator,

telephone: +46 76 534 66 12

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leading bank with over 7 million retail customers and 550 000 corporate

customers in our four home markets Sweden, Estonia, Latvia and Lithuania.

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