Financial objectives

Swedbank’s return on equity shall exceed the average for its peer group. The peer group comprises SEB, Handelsbanken, Nordea, Danske Bank and DnB NOR. In 2008, Swedbank’s ROE was 17.1 percent excluding impairment of goodwill of SEK 1 403m and 15.2 percent (18.9) including impairment of goodwill. The average for the peer group was 11.2 percent (19.2).

Return on equity: Profit for the financial year in relation to average shareholders’ equity.

Swedbank shall maintain sustainable growth in earnings per share exceeding the average for its peer group. Average growth from 2003 to 2008 was 14.3 percent excluding impairment of goodwill of SEK 1 403m and 11.6 percent including impairment of goodwill. The average for the peer group was 2.3 percent.

The C/I ratio shall remain below 0.50 in the long term. C/I measures operational efficiency as the ratio between costs and income. In 2008, the C/I ratio was 0.50 excluding impairment of goodwill of SEK 1 403m and 0.53 percent (0.51) including impairment of goodwill.

In July 2008, Swedbank’s Board of Directors decided on a new tier 1 objective that takes into account the full effect of the new capital adequacy regulation. The tier 1 capital ratio shall now be within the range of 8.5–9.0 percent. This represents an increase from the previous objective of around 6.5 percent based on the transitional rules in the capital adequacy regulation. At year-end 2008, the tier 1 capital ratio was 8.4 percent according to the transition rules. According to the new rul

Tier 1 capital ratio – Tier 1 capital in relation to the risk-weighted amount.

Dividend

The dividend, excluding one-off items, shall amount to around 40 percent of aftertax earnings. The size of the dividend is based on the latest dividend and is determined with reference to expected profit trends, the capital considered necessary to develop operations and the market’s required return. The Board of Directors’ proposed that no dividend will be paid to preference shares or ordinary shares (SEK 9.00 per ordinary share) for the financial year 2008.

* Excluding impairment of goodwill of SEK1 403m. ** Including total subscribed capital.