Swedbank A

Swedbank's decision to take an extra dividend from its Estonian sub-group generates increased tax cost

Swedbank has decided to take an extra dividend from its Estonian sub-group. In

addition, changes have been made in Swedbank's US operations. This will generate

one-off tax effects, which will have a negative effect totalling SEK 447m on

Swedbank's result for the second quarter.

The European capital regulatory requirements (CRR/CRD IV) have been clarified,

which makes it possible to further optimise Swedbank Group's capital structure.

Swedbank's Estonian sub-group is today very well capitalised following a long

period of solid profitability, with a common equity Tier 1 capital ratio of 47.3

per cent as of 31 March. Swedbank has therefore decided to take an extra

dividend from its Estonian sub-group of SEK 3 695m (based on the currency

exchange rate as of 30 June). Since profit in Estonia is taxed upon distribution

this will result in a current tax expense of SEK 929m.

Structural changes have been made in the US operations which affect Ektornet and

the New York branch office. This makes it possible to tax the net result of

Swedbank's total US operations. In addition, a change of methodology has been

made concerning deductible costs. This generates a total positive tax effect in

the US operations of SEK 482m.

Swedbank's second quarter results will be published on Thursday 16 July 2015 at

07:00 (CET).

For further information please contact:

Gregori Karamouzis, Head of Investor Relations, Swedbank, +46 727 40 63 38 or

Swedbank promotes a sound and sustainable financial situation for the many

people, households and companies. Our vision is to contribute to development

"Beyond Financial Growth". 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 304 branches in Sweden and

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

countries, the US and China. As of 31 March 2015 the group had total assets of

SEK 2 275 billion. Read more at www.swedbank.com

AI Terminal