Swedbank A

Earnings Release • Jul 17, 2019

Swedbank has set new financial targets

Swedbank has set new financial targets

Swedbank AB's Board of Directors has decided to change the dividend policy from

75 to 50 percent of the annual profit in order to further strengthen the bank's

capital position.

"Swedbank will continue to be a well-capitalised, low risk bank. The new

financial targets will give us even better possibilities to continue to

contribute positively to societies where we have operations," says Göran

Persson, Swedbank's Chair of the Board.

Swedbank's capitalisation will ensure that the bank can withstand changes in

economic conditions and maintain a good margin to the regulator's requirements.

Against the backdrop of a higher counter-cyclical buffer in Sweden, a defined

benefit pension obligation impacted by market rates, continued loan volume

growth and the uncertainty regarding the bank's work on anti-money laundering,

Swedbank has therefore set the following new financial targets:

Dividend policy

Swedbank's dividend will correspond to 50 percent of the annual profit

attributable to shareholders. The dividend will be decided annually, with

respect to the bank's capital target and the outlook for profitable growth in

our home markets.

Capital target

Swedbank's Common Equity Tier 1 capital ratio will exceed the Swedish FSA's

requirement by 100-300bps.

The targets of having market leading cost efficiency and a Return on Equity of

at least 15 per cent remain.

As of the end of the second quarter this year, Swedbank's Common Equity Tier 1

capital ratio was 16.1 percent, which is 150bps higher than the Swedish FSA's

requirement.

"This change will ensure that Swedbank remains one of the strongest banks

financially in Europe while continuing to support our customers' growth," says

Anders Karlsson, acting President and CEO.

Contacts:

Gregori Karamouzis, Head of Investor Relations, +46 727406338

Unni Jerndal, Press Officer, +46 730921180

This announcement involves the disclosure of inside information

Swedbank AB (publ) is required to disclose this information pursuant to

Regulation (EU) No 596/2014 on market abuse, the Swedish Securities Markets Act

(2007:528), the Swedish Financial Instruments Trading Act (1991:980) and the

regulatory framework of Nasdaq Stockholm. This information was sent to be

published on 17 July 2019 at 07.00 CET.

Swedbank encourages a sound and sustainable financial situation for the many

households and businesses. As a leading bank in the home markets of Sweden,

Estonia, Latvia and Lithuania, Swedbank offers a wide range of financial

services and products. Swedbank has over 7 million retail customers and around

600 000 corporate customers and organisations with 180 branches in Sweden and

122 branches in the Baltic countries. The group is also present in other Nordic

countries, the US and China. As of 31 March, 2019 the group had total assets of

SEK 2 246 billion.  Read more at www.swedbank.com