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Preliminary SREP 2023 decision

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

its preliminary decision on the Supervisory Review and Evaluation Process

("SREP") 2023.

The total effect of the preliminary decision implies small changes to the

nominal capital requirement compared to the previous year.

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

by 0.3 percentage points for CET1 and by 0.4 percentage points for total capital

compared to last year's decision.

The change is mainly driven by an 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 proposed Pillar 2 guidance for risk-weighted assets decreases by 0.5

percentage points.

The proposed 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.

Swedbank will provide its comments to the SFSA after which the authority will

make its final decision, effective as of 30 September 2023.

Contact

Annie Ho, Head of Investor Relations, [email protected], +46 70 343 78 15

Hannes Mård, Media Relations Manager [email protected], +46 73 057 41 95

This information constitutes inside information that Swedbank is obliged to make

public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The

information was submitted for publication, through the agency of the contact

person set out above, on 1 July 2023, at 10:30 CEST.

Swedbank empowers the many people and businesses to create a better future. Our

vision is a financially sound and sustainable society. Swedbank Group is the

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

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

Swedbank Group is also present in other Nordic countries, the U.S. and China.

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