Swedbank A

M&A Activity • May 10, 2017

Swedbank acquires PayEx

Swedbank acquires PayEx

Swedbank acquires the payment provider PayEx. Through the acquisition Swedbank

enters a new market and add services to meet customers' needs of digital

solutions for payments.

The market for payment solutions has undergone major changes in recent years by

greatly increased on-line purchases and development of invoicing solutions.

Payment Service Providers (PSP), as PayEx, has been established with the purpose

to improve the purchase experience.

The acquisition creates good prerequisites to continue to develop long term and

attractive payment solutions for retail businesses and its customers.

- PayEx is a unique company and we are glad to make this acquisition. There is

great competence and knowledge in the company and we will continue the positive

development of the company together, says Birgitte Bonnesen, President and CEO

at Swedbank.

PayEx is a private owned Group comprising of a number of companies in Sweden,

Norway, Denmark and Finland. PayEx offers payment solutions for internet, mobile

and physical commerce and administrative services within billing, account

management and debt collection. The company also offers financial services such

as factoring, instalment and loans.

- We look forward to rapidly increase the customer value for the customers of

both parties in cooperation with Swedbank. Swedbank invests in the company that

Max Hansson has built for 45 years, says Raymond Klavestad, President and CEO at

PayEx.

The company will be a fully owned subsidiary to Swedbank, with headquarters in

Visby, acting on an open market with both existing and new customers. For 2016,

PayEx total operating income amounted to SEK 541m, total operating costs to SEK

460m and profit before tax to SEK 78m. At the end of 2016, PayEx total risk

exposure amount was SEK 1.7bn. The acquisition will have a minor negative impact

on the common equity tier 1 ratio of the Swedbank group. More information

regarding the financial effects for the Swedbank group will be communicated in

connection with closing of the acquisition.

The acquisition is financed with Swedbank's internal resources and is subject to

customary approvals from regulatory authorities, including the Swedish Financial

Supervisory Authority and the Swedish Competition Authority.

For more information, please contact:

Josefine Uppling, Group Press Officer, Swedbank, +46 761 14 54 21

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

Information about PayEx

PayEx was founded 1972 by Max Hansson, who has owned the company since then. The

company has more than 10 000 customers and approximately 500 employees in

Sweden, Norway, Denmark and Finland. PayEx processes more than SEK 250 bn per

year in their home markets on their customers´behalf. PayEx has AAA-rating and

is a credit market company, approved by the Swedish FSA.

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 10 May, 2017 at 08.00 CET.

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

650 000 corporate customers and organisations with 241 branches in Sweden

and 141 branches in the Baltic countries. The group is also present in other

Nordic countries, the US and China. As of 31 March 2017 the group had total

assets of SEK 2 488 billion.

Read more at www.swedbank.com