Swedbank Mortgage AB (publ) (Incorporated with limited liability in - - PDF document

SUPPLEMENT DATED AUGUST 23, 2011 TO THE PROSPECTUS DATED MARCH 11, 2011

Swedbank Mortgage AB (publ)

(Incorporated with limited liability in the Kingdom of Sweden)

U.S.$15,000,000,000 Programme for the Issuance of S.O. Bonds guaranteed by Swedbank AB (publ)

This Supplement (the “Supplement”) constitutes a supplementary prospectus for the purposes of Section 87G of the Financial Services and Markets Act 2000 (the “FSMA”) and is prepared in connection with the U.S.$15,000,000,000 Programme for the Issuance of S.O. Bonds (the “Programme”) established by Swedbank Mortgage AB (publ) (the “Company”) and guaranteed by Swedbank AB (publ) (the “Guarantor”). This Supplement is supplemental to, and should be read in conjunction with, the prospectus (the “Prospectus”) dated March 11, 2011 relating to the Programme which comprises a base prospectus for the purposes of Article 5.4 of Directive 2003/71/EC (the “Prospectus Directive”). Terms defined in the Prospectus have the same meaning when used in this Supplement. Each of the Company and the Guarantor accepts responsibility for the information contained in this

• Supplement. To the best of the knowledge of the Company and the Guarantor (each having taken all

reasonable care to ensure that such is the case) the information contained in this Supplement is in accordance with the facts and does not omit anything likely to affect the import of such information. On July 21, 2011, each of the Company and the Guarantor published its interim report containing the condensed consolidated unaudited interim financial information as at and for the six month period ended June 30, 2011 (the “Company Interim Report” and the “Guarantor Interim Report”, respectively). A copy of each of the Company Interim Report and the Guarantor Interim Report has been filed with the Financial Services Authority and, by virtue of this Supplement, the Company Interim Report and the Guarantor Interim Report are incorporated in, and form part of, the Prospectus. Copies of all documents incorporated by reference in the Prospectus can be obtained, upon request and free of charge, from the registered office of the Company and from the specified office of the Fiscal Agent in London and will be available for viewing on the website of the Company at www.swedbank.com, as described on page XI of the Prospectus. In addition, the Company and the Guarantor wish to update the following sections of the Prospectus in order to provide updated information to potential investors with respect to (i) the business, results of operations and financial condition of each of the Company and the Guarantor following the publication of the Company Interim Report and the Guarantor Interim Report, (ii) risk factors describing current economic and market conditions that may affect the Company’s ability to fulfill its obligations under S.O. Bonds issued under the Programme and/or the Guarantor’s ability to fulfill its obligations under the Guarantee and (iii) the management of the Company and the Guarantor: (i) Exchange Rates; (ii) Presentation of Certain Financial and Other Information; (iii) Overview of the Company and the Guarantor; (iv) Risk Factors; (v) Swedbank Mortgage AB (publ);

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(vi) Swedbank AB (publ); (vii) Selected Financial Information; (viii) Management’s Discussion and Analysis; (ix) Capitalisation and Indebtedness; (x) Selected Statistical and Other Information; (xi) Risk Management; (xii) Management; and (xiii) General Information. If documents which are incorporated by reference themselves incorporate any information or other documents therein, either expressly or implicitly, such information or other documents will not form part of this Supplement for the purposes of the Prospectus Directive except where such information or other documents are specifically incorporated by reference or attached to this Supplement. To the extent that there is any inconsistency between (a) any statement in this Supplement or any statement incorporated by reference into the Prospectus by this Supplement and (b) any other statement in, or incorporated by reference into, the Prospectus, the statements in (a) above will prevail. Save as disclosed in this Supplement, there has been no other significant new factor, material mistake or inaccuracy relating to information included in the Prospectus since the publication of the Prospectus. Investors should be aware of their rights under Section 87(Q)4 of the FSMA.

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Amendments to “Exchange Rates” The section “Exchange Rates” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The table setting forth, for the periods and dates indicated, certain information concerning the exchange rate for Swedish Krona per U.S. dollar on page VI shall be amended by the insertion of the following rows in place of the row “March 1, 2011 to March 10, 2011”:

Period end Average1 High2 Low2 SEK SEK SEK SEK March 2011 ................................................................................ 6.3235 6.3481 6.4822 6.2800 April 2011 ................................................................................... 6.0419 6.1988 6.3313 6.0144 May 2011 ................................................................................... 6.1718 6.2588 6.3884 6.0168 June 2011 .................................................................................. 6.3284 6.3331 6.4973 6.1315 July 2011 ................................................................................... 6.2772 6.3888 6.5865 6.2434 August 1, 2011 to August 19, 2011 ........................................... 6.4824 6.4449 6.5835 6.3214

The following sentence shall be inserted immediately following the sentence “On March 10, 2011, the exchange rate was SEK 6.387 per U.S. dollar.”: “On August 19, 2011, the exchange rate was SEK 6.4824 per U.S. dollar.” The amendments described above should be read in conjunction with the section “Exchange Rates” on page VI of the Prospectus.

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Amendments to “Presentation of Certain Financial and Other Information” The section “Presentation of Certain Financial and Other Information” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The following text shall be inserted immediately following the word “States.” in line 7 of the third paragraph of the section on page VII: “Certain financial information set out herein has been derived from the Company Interim Report and the Guarantor Interim Report. These Interim Reports have been prepared in accordance with International Accounting Standard 34 – “Interim Financial Reporting” (“IAS 34”).” The following sentence shall be inserted immediately following the word “Bloomberg.” in line 12 of the fourth paragraph of the section on page VII: “Unless otherwise noted, all translations of SEK amounts into U.S. dollars for the period ended June 30, 2011 have been at the rate of SEK 6.3284 = U.S.$1.00, being the representative market rate prevailing in Stockholm (the “Representative Market Rate”) on June 30, 2011, as reported by Bloomberg.” The amendments described above should be read in conjunction with the section “Presentation of Certain Financial and Other Information” as set out in the Prospectus.

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Amendments to “Overview of the Company and the Guarantor” The section “Overview of the Company and the Guarantor” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The section “A. Swedbank Mortgage AB (publ) ― The Company” on page 7 shall be amended by the insertion of the following sentence immediately following the word “bonds.” in line 8 of the first paragraph: “On June 30, 2011, its total assets amounted to approximately SEK 762 billion including assets of approximately SEK 650 billion placed in the Company’s cover pool and forming the basis as underlying collateral for the Company’s issuance of covered bonds.” The section “B. Swedbank AB (publ) ― The Guarantor” beginning on page 7 shall be amended by the insertion of the following text at the end of the first paragraph on page 8: “As of June, 2011, the Group’s loans to the public amounted to SEK 1,147 billion (excluding repurchase agreements and loans to credit institutions) excluding loans to the Swedish National Debt Office (Sw: Riksgälden), which amounted to SEK 231 billion as of June 30, 2011. The Group recorded SEK 8,078 million in profit before impairments for the six month period ended June 30, 2011. Credit impairments for the six month period ended June 30, 2011 amounted to SEK (1,296) million. Net profit attributable to the shareholders of the Guarantor for the six month period ended June 30, 2011 amounted to SEK 7,304 million.” The table in the section “B. Swedbank AB (publ) ― The Guarantor” on page 9 shall be amended by the insertion of the following column:

As of and for the six month period ended June 30, 2011 Private customers (millions) ................................................................................................................................................................ 9.7 Corporate customers ............................................................................................................................................................................ 675,000 Full-time employees ............................................................................................................................................................................. 17,008 Total income (SEK million) ................................................................................................................................................................... 16,807 Profit before impairments (SEK million) ............................................................................................................................................... 8,078 Credit impairments (SEK million) ......................................................................................................................................................... (1,296) Profit for the period attributable to the shareholders of Swedbank AB (SEK million) .......................................................................... 7,304

The following paragraph shall be inserted immediately after the table in the section “B. Swedbank AB (publ) ― The Guarantor” on page 9: “The operating segments have been changed during the first quarter of 2011 to coincide with the

• rganisational changes implemented in the Group's business area organisation. The internal bank and the

internal bank operations within the New York branch office were moved from Large Corporates & Institutions to Group Treasury in Group Functions. The Baltic treasury operations were moved from Baltic Banking to Group Treasury.” The amendments described above should be read in conjunction with the section “Overview of the Company and the Guarantor” as set out in the Prospectus.

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Amendments to “Risk Factors” The section “Risk Factors” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The section “Risks Relating to the Group ― The Group’s business, financial condition and results of

• perations have been and may continue to be adversely affected by the recent conditions in the global

financial markets” on page 12 shall be amended by replacing the second paragraph with the following three paragraphs: Although, the level of market disruption and volatility caused by the global financial crisis have abated, global markets and economic conditions have been negatively impacted in 2010 and 2011 by market perceptions regarding the ability of certain European Union (“EU”) member states to service their sovereign debt

• bligations, including in Greece, Spain, Ireland, Italy and Portugal. The continued uncertainty over the
• utcome of the EU governments’ financial support programs and the possibility that other EU member states

may experience similar financial troubles could further disrupt global markets. In particular, it has and could in the future disrupt equity markets and result in volatile bond yields on the sovereign debt of EU members. These conditions have also been exacerbated as a result of market perceptions regarding the level of sovereign debt in the United States. On August 5, 2011, Standard & Poor's lowered the long-term sovereign credit rating of U.S. Government debt obligations from AAA to AA+. On August 8, 2011, S&P also downgraded the long-term credit ratings of U.S. government-sponsored enterprises. These actions initially had an adverse effect on financial markets and although the longer-term impact on global financial and credit markets and the participants therein are difficult to predict and may not be immediately apparent, such impact might be material and adverse This downgrade could have material adverse impacts on financial markets and economic conditions throughout the world and, in turn, the market’s anticipation of these impacts could have a material adverse effect on the Group’s business, financial condition and liquidity. In particular, it could disrupt payment systems, money markets, long-term or short-term fixed income markets, foreign exchange markets, commodities markets and equity markets and adversely affect the cost and availability of funding. Certain impacts, such as increased spreads in money market and other short term rates, have already been experienced as a result of market expectations regarding the downgrade. In the event of continued or increasing market disruptions and volatility, the Group may experience reductions in business activity, increased funding costs, decreased liquidity, decreased asset values, additional credit impairment losses and lower profitability and revenues. Any of the foregoing factors could have a material adverse effect on the Group’s business, financial condition and results of operations.” The section “Risks Relating to the Group ― Recent economic and market conditions caused substantial credit impairments. Further credit impairments could have a material adverse impact on the Group's financial condition and results of operations” on page 13 shall be amended by the insertion of the following sentences at the end of the first paragraph: The Group’s credit impairments amounted to SEK (1,296) million (net recovery), corresponding to an annualised credit impairment ratio of (0.19) per cent, for the six month period ended June 30, 2011. Impairment losses on loans and other credit risk provisions within Baltic Banking amounted to SEK (524) million (net recovery), corresponding to an annualised credit impairment ratio of (0.80) per cent, for the six month period ended June 30, 2011. The section “Risks Relating to the Group ― Recent economic and market conditions caused substantial credit impairments. Further credit impairments could have a material adverse impact on the Group's financial

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condition and results of operations” on page 13 shall be amended by replacing the last two sentences in the second paragraph with the following sentences: “Although 2010 showed improvement and an increase in GDP, corresponding to annual growth of 4.21 per cent compared to 2009 (according to the State Statistics Committee of Ukraine, www.ukrstat.gov.ua), the situation has not normalised and there are no assurances that the positive trend will continue. Credit impairments within Ukrainian Banking amounted to SEK (588) million (net recovery) corresponding to a credit impairment ratio of (11.77) per cent for the year ended December 31, 2010, compared to SEK 6,456 million corresponding to a credit impairment ratio of 34.92 per cent for the year ended December 31, 2009. Credit impairments within Ukrainian Banking amounted to SEK (475) million (net recovery) corresponding to an annualised credit impairment ratio of (13.26) per cent for the six month period ended June 30, 2011.” The section “Risks Relating to the Group ― Recent economic and market conditions caused substantial credit impairments. Further credit impairments could have a material adverse impact on the Group's financial condition and results of operations” on page 13 shall be amended by the insertion of the following sentence at the end of the third paragraph: “The annualised credit impairment ratio for Swedish Retail for the six month period ended June 30, 2011 was 0.00 per cent.” The section “Risks Relating to the Group ― Recent economic and market conditions caused substantial credit impairments. Further credit impairments could have a material adverse impact on the Group's financial condition and results of operations” on page 13 shall be amended by replacing the words “any of the Baltic countries” and “any of the currencies in the Baltic countries” with the words “any of the local currencies of Latvia and Lithuania”. The section “Risks Relating to the Group ― Any further impairment of goodwill and other intangible assets would have a negative effect on the Group’s results of operations” beginning on page 14 shall be amended by replacing the last two sentences with the following sentences: “Outstanding goodwill related to Baltic investment totalled SEK 11.1 billion, and intangible assets related to the customer base for the Baltic investment measured SEK 0.3 billion as of June 30, 2011, the date as of which the Guarantor determined that there was no need for an impairment charge to be recorded. Should the economic conditions worsen beyond what the Group expected as of June 30, 2011, either in any of the Group’s home markets or in general, an impairment charge may need to be recognised, which may have a material adverse effect on the Group’s financial position and results of operations.” The section “Risks Relating to the Group ― The Group is financially exposed to Portugal, Italy, Ireland, Greece and Spain and further developments adversely affecting these countries or other similar developments to other Euro Zone countries could have a material adverse effect on the Group's financial position, results of operations and business” on page 15 shall be amended by replacing the opening two sentences with the following sentences: “As of June 30, 2011 the Group had total credit exposures of SEK 1,207 million against Portugal, Italy, Ireland, Greece and Spain. SEK 322 million related to states or public sector entities and SEK 885 million of these exposures related to credit institutions or other non-public sector entities. Exposure to Greece is SEK 67 million in total, of which sovereign bonds are SEK 51 million and the other SEK 16 million are trade finance and mortgage loans.” The following table shall be inserted immediately following this section:

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As of June 30, 2011 SEK million Greece Ireland Italy Portugal Spain Total Bonds .................................................................................... 51 2 243 27 20 343

• f which soveriegn

....................................................... 51

• 234

27 10 322

• f which held to maturity1 ............................................

51

• 102

27 6 186 Loans (money market and certificates) ................................

• 330
• 303

633 Loans (committed credit facilities) .......................................

• Derivatives net2

.....................................................................

• 14
• 43

57 Other3 .................................................................................... 16

• 59

10 89 174 Total...................................................................................... 67 16 632 37 455 1,207

1 Actual market values are below the carrying amounts by approximately SEK 51 million. 2 Derivatives at market value taking into account netting and collateral agreements. Considering the bank's internal risk add-ons for counterparty risk at

potential future change in prices, the derivative exposures amount to: Greece SEK 72 million, Italy SEK 437 million and Spain SEK 196 million. Total SEK 705 million.

3 Trade finance and mortgage loans.

The section “Risks Relating to the Group ― The Group is exposed to foreign exchange risk, and a devaluation or depreciation of any of the currencies in the Baltic countries, Ukraine or Russia could have an adverse effect on the Group's assets, including its loan portfolio, and its results of operations” on page 15 shall be amended by replacing the words “any of the national currencies in the Baltic countries” in the first paragraph and “local currencies in the Baltic countries” in the last paragraph with the words and “any of the local currencies of Latvia and Lithuania”. The section “Risks Relating to the Group – The Guarantor or its financial institution subsidiaries may need additional capital in the future to maintain capital adequacy ratios or for other reasons, which may be difficult to obtain” on page 17 shall be amended by the insertion of the following sentence at the end of the first paragraph: “Moreover, if developments of the regulatory framework cause reductions of the Group’s capital adequacy ratios and solvency levels or if the applicable minimum capital requirements increase, the Group may need to obtain additional capital in the future and may not be able to obtain debt financing on attractive terms, or at all.” The amendments described above should be read in conjunction with the section “Risk Factors” as set out in the Prospectus.

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Amendments to “Swedbank Mortgage AB (publ)” The section “Swedbank Mortgage AB (publ)” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The table setting out the total loans (broken down by collateral) of the Company for the periods indicated on page 72 shall be amended by the insertion of the following column:

SEK billion As of June 30, 2011 Single-family homes ........................................................................................................................................................................ 428 Tenant-owner rights ......................................................................................................................................................................... 110 Agriculture and Forestry .................................................................................................................................................................. 48 Multi-family houses, including tenant-owner associations .............................................................................................................. 104 Municipalities, including guarantees from municipalities and the government ............................................................................... 12 Commercial Properties .................................................................................................................................................................... 1 Total ................................................................................................................................................................................................ 703

The table setting out the Company’s lending volume distribution throughout Sweden on page 73 shall be amended by the insertion of the following column:

As of June 30, 2011 South (including Malmoe) ................................................................................................................................................................ 24% West (including Gothenburg) ........................................................................................................................................................... 21% East .................................................................................................................................................................................................. 16% Middle (including Stockholm) .......................................................................................................................................................... 32% North ................................................................................................................................................................................................ 7% Total ................................................................................................................................................................................................ 100%

The table setting out the arrears history (loans in arrears as a percentage of the total mortgage loan portfolio)

• n page 77 shall be amended by the insertion of the following columns:

As of As of March June 31, 2011 30, 2011 4-60 days ................................................................................................................................................................................... 0.16% 0.20% 60-90 days ................................................................................................................................................................................. 0.03% 0.03% >90 days .................................................................................................................................................................................... 0.05% 0.06%

The amendments described above should be read in conjunction with the section “Swedbank Mortgage AB (publ)” as set out in the Prospectus.

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Amendments to “Swedbank AB (publ)” The section “Swedbank AB (publ)” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The section “Overview” on page 79 shall be amended by the insertion of the following text at the end of the second paragraph: “As of June 30, 2011, the Group’s loans to the public amounted to SEK 1,147 billion (excluding repurchase agreements) and for the six month period ended June 30, 2011, the Group recorded SEK 8,078 million in profit before impairments. Credit impairments for the six month period ended June 30, 2011 amounted to SEK –(1,296) million. Net profit attributable to the shareholders of the Guarantor for the six month period ended June 30, 2011, amounted to SEK 7,304 million. As of June 30, 2011, the Group had 17,008 full-time employees.” The section “Overview” on page 79 shall be amended by the insertion of the following text at the end of the section: “During the second quarter of 2011, the Guarantor began repurchasing its shares in accordance with the mandate of the Annual General Meeting (“AGM”) in March 2011. By June 30, 2011 33.3 million shares or about 2.9 per cent of the outstanding shares had been repurchased by the Guarantor. The repurchases are being made to calibrate the core Tier 1 capital ratio to 13 per cent. As of June 30, 2011 the ratio was 14.8 per cent, so the bank intends to continue buying back shares until the next AGM.” The section “Business Areas ― Retail” beginning on page 81 shall be amended by the insertion of the following sentence immediately following the word “Sweden.” in line 3: “As of June 30, 2011, Retail is the Group’s largest business area, offering a broad range of financial products and services to private customers as well as small and medium-sized companies through 579 (597 as of December 31, 2010) branches as well as the Telephone Bank and Internet Bank in Sweden.” The section “Business Areas ― Retail” beginning on page 81 shall be amended by the insertion of the following sentence at the end of the first paragraph of the section at the top of page 82: “Customer loans in Retail represented approximately 77 per cent (76 per cent as of December 31, 2010) of the Group’s total customer loans outstanding as of June 30, 2011.” The section “Business Areas ― Large Corporates & Institutions” on page 82 shall be amended by the insertion of the following sentence at the end of the paragraph: “Customer loans in Large Corporates & Institutions represented approximately 11 per cent (11 per cent as of December 31, 2010) of the Group’s total customer loans outstanding as of June 30, 2011.” The section “Business Areas ― Baltic Banking” on page 82 shall be amended by the insertion of the following sentence at the end of the second paragraph: “Customer loans in Baltic Banking represented approximately 11 per cent (11 per cent as of December 31, 2010) of the Group’s total customer loans outstanding as of June 30, 2011.” The section “Products and Services ― Mortgages Lending Products” on page 83 shall be amended by the insertion of the following sentence immediately following the word “customers.” in line 4 of the second paragraph of the section:

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“As of June 30, 2011, the Company’s outstanding Swedish mortgage loan portfolio amounted to SEK 705 billion, of which 594 billion derived from private customers.” The section “Products and Services ― Payment Services” on page 84 shall be amended by the insertion of the following sentence at the end of the first paragraph: “As of June 30, 2011, the Group had 7.5 million bank cards in circulation.” The amendments described above should be read in conjunction with the section “Swedbank AB (publ)” as set out in the Prospectus.

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Amendments to “Selected Financial Information” The section “Selected Financial Information” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The tables setting out selected income statement data, balance sheet data, cash flow statement data and key ratios of the Company on pages 87 and 88 shall be amended by the insertion of the following columns, preceded by the following sentence: “The selected financial data for June 2011 and 2010 provided below has been derived from the unaudited consolidated financial statements of the Company and the Guarantor, which were prepared in accordance with IAS 34 as of and for the six month periods ended June 30, 2011 and 2010. The data set forth below should be read in conjunction with “Management’s Discussion and Analysis” and with the audited consolidated financial statements incorporated by reference into this Prospectus. With respect to the six month period ended June 30, 2011:

• A. The Company

For the six month period ended June 30 SEK million 2011 2010 INCOME STATEMENT DATA Net interest income ................................................................................................. 1,888 2,011 Net commissions ..................................................................................................... (291) (234) Net gains and losses on financial items at fair value .............................................. (62) 65 Other income ........................................................................................................... 4 4 Total income .......................................................................................................... 1,539 1,846 Staff costs ................................................................................................................

• Other expenses

.......................................................................................................

• Total expenses ......................................................................................................
• Profit before impairments ....................................................................................

1,539 1,846 Credit impairments .................................................................................................. 34 174 Operating profit ..................................................................................................... 1,505 1,672 Tax expense ............................................................................................................ 396 440 Profit for the period ............................................................................................... 1,109 1,232 As of June 30 As of Dec. 31 SEK million 2011 2010 BALANCE SHEET DATA Assets* Treasury bills and other bills eligible for refinancing with central banks etc. ........

• Loans to credit institutions....................................................................................

39,253 36,493 Loans to the public ................................................................................................. 704,851 697,299 Shares and participating interests ..........................................................................

• Derivatives

.............................................................................................................. 7,234 6,931 Intangible fixed assets ............................................................................................

• Tangible assets ......................................................................................................
• Current tax assets ..................................................................................................
• Other assets ...........................................................................................................

10,836 3,858 Total assets ........................................................................................................... 762,174 744,581 Liabilities and equity Liabilities** Amounts owed to credit institutions ....................................................................... 199,838 229,177 Debt securities in issue. ......................................................................................... 507,997 451,328 Derivatives .............................................................................................................. 14,075 15,565 Other liabilities ........................................................................................................ 8,160 16,831 Total liabilities ...................................................................................................... 730,070 712,901 Equity Equity attributable to the shareholders of the parent company (Guarantor) ......... 32,104 31,680 Total equity ........................................................................................................... 32,104 31,680

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Total liabilities and equity ................................................................................... 762,174 744,581 *The “Treasury bills and other bills eligible for refinancing with central banks etc.” and “Prepaid expenses and accrued income” line items which appear in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and 2008 have not been included here because these line items are only determined on an annual basis. ** The “Current tax liabilities”, “Deferred tax liabilities” and “Accrued expenses and prepaid income” line items which appear in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and 2008 have not been included here because these line items are only determined on an annual basis. For the six month period ended June 30 SEK million 2011 2010 CASH FLOW STATEMENT Cash and equivalents at beginning of the year ............................................. 15,481 60,079 Cash flow from operating activities ..................................................................... (83,943) (52,448) Cash flow from investing activities ......................................................................

• Cash flow from financing activities

...................................................................... 92,715 29,207 Cash flow for the period ................................................................................... 8,772 (23,241) Cash and equivalents at end of the period .................................................... 24,253 36,838 As of and for the six month period ended June 30 2011 2010 KEY RATIOS* Profit Investment margin ............................................................................................... 0.52% 0.55% Return on equity .................................................................................................. 7.0% 8.0% Earnings per share, SEK..................................................................................... 48.21 53.57 Capital Capital base, SEK million .................................................................................... 31,884 31,309 Capital quotient ................................................................................................... 1.18 1.23 Capital adequacy ratio, Basel II .......................................................................... 9.4% 9.8% Tier 1 capital ratio, Basel II ................................................................................. 9.4% 9.8% Equity per share, SEK ......................................................................................... 1,395.82 1,381.65 Credit quality Credit impairment ratio, net ................................................................................. 0.01% 0.05% Total provision ratio for impaired loans ............................................................... 132% 38.4% Share of impaired loans, net ............................................................................... 0.01% 0.02% *See section “Definitions”.

The tables setting out selected income statement data, balance sheet data, cash flow statement data and key ratios of the Group on pages 89 and 90 shall be amended by the insertion of the following columns, preceded by the following sentence: “The selected data for the six month periods ending June 30, 2011 and June 30, 2010 provided below have been derived from the unaudited consolidated financial statements of the Company and the Guarantor, which were prepared in accordance with International Financial Reporting Standards as endorsed by the IFRS as of and for the year ended December 31, 2010.

• B. The Group

For the six month period ended June 30 SEK million 2011 2010 INCOME STATEMENT DATA Net interest income ............................................................................................. 9,267 7,822 Net commissions ................................................................................................. 4,545 4,677 Net gains and losses on financial items at fair value .......................................... 766 1,469 Other income ....................................................................................................... 2,229 1,471 Total income ...................................................................................................... 16,807 15,439 Staff costs ........................................................................................................... (4,857) (4,798) Other expenses ................................................................................................... (3,872) (4,016) Total expenses .................................................................................................. (8,729) (8,814) Profit before impairments ................................................................................ 8,078 6,625 Impairment of intangible assets……………………………………………………..

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Impairments of tangible assets……………………………………………………… Credit impairments .............................................................................................. 17 (1,296) 164 3,173 Operating profit (loss) ...................................................................................... 9,357 3,274 Tax expense ........................................................................................................ 2,045 1,141

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Profit (loss) for the period ................................................................................ Non-controlling interests ..................................................................................... 7,312 8 2,133 30 As of June 30 As of Dec. 31 SEK million 2011 2010 BALANCE SHEET DATA Assets* Cash and balances with central banks .................................................................. 11,954 17,109 Loans to credit institutions ..................................................................................... 202,527 166,417 Loans to the public ................................................................................................. 1,174,938 1,187,226 Bonds and other interest-bearing securities .......................................................... 148,436 131,576 Financial assets for which customers bears the investment risk .......................... 104,255 100,628 Shares and participating interests ......................................................................... 2,878 6,181 Investments in associates ...................................................................................... 3,019 2,710 Derivatives ............................................................................................................. 60,371 65,051 Intangible fixed assets ........................................................................................... 15,980 15,794

• f which goodwill

................................................................................................. 13,933 13,733 Tangible assets ...................................................................................................... 6,739 5,679 Current tax assets .................................................................................................. 1,682 1,156 Deferred tax assets ................................................................................................ 1,023 1,218 Other assets ........................................................................................................... 15,579 8,611 Prepaid expenses and accrued income ................................................................ 8,136 6,325 Total assets .......................................................................................................... 1,757,517 1,715,681 Liabilities and equity Liabilities** Amounts owed to credit institutions ....................................................................... 130,175 136,766 Deposits and borrowings from the public .............................................................. 528,992 534,237 Financial liabilities for which customers bear the investment risk ......................... 104,499 100,988 Debt securities in issue. ......................................................................................... 757,203 686,517 Short positions securities. ...................................................................................... 28,342 34,179 Derivatives ............................................................................................................. 60,901 65,935 Current tax liabilities ............................................................................................... 572 317 Deferred tax liabilities ............................................................................................. 1,857 1,734 Provisions ............................................................................................................... 4,131 4,087 Other liabilities ........................................................................................................ 15,770 13,625 Accrued expenses and prepaid income ................................................................ 8,206 15,074 Subordinated liabilities ........................................................................................... 20,811 27,187 Total liabilities ...................................................................................................... 1,661,459 1,620,646 Equity Non-controlling interests ........................................................................................ 135 138 Equity attributable to the shareholders of the parent company (Guarantor) ......... 95,923 94,897 Total equity ........................................................................................................... 96,058 95,035 Total liabilities and equity ................................................................................... 1,757,517 1,715,681 * The “Treasury bills and other bills eligible for refinancing with central banks etc.” line item which appears in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and 2008 has not been included here because this line item is

• nly determined on an annual basis.

**The “Provisions” and “Other liabilities” line items which appear here but not in the Base Prospectus are the equivalent of the “Pension provisions”, “Insurance provisions” and “Other liabilities and provisions” line items which appear in the table in the Base Prospectus in respect of the years 2010, 2009 and 2008, which have not been included here because these line items are only determined on an annual basis. As of and for the six month period ended June 30 SEK million 2011 2010 CASH FLOW STATEMENT Cash and equivalents at beginning of the year .................................................. 17,109 37,879 Cash flow from operating activities ..................................................................... (58,134) (26,763) Cash flow from investing activities ...................................................................... 220 1,358 Cash flow from financing activities...................................................................... 52,640 9,852 Cash flow for the period ................................................................................... (5,274) (15,553) Exchange rate differences on cash and cash equivalents ................................. 119 (2,493) Cash and equivalents at end of the period .................................................... 11,954 19,833 As of and for the six month period ended June 30 2011 2010 KEY RATIOS* Return on equity .................................................................................................. 15.3% 4.7% Earnings per share, SEK .................................................................................... 5.48 1.82 Cost/income ratio ................................................................................................ 0.52 0.57 Equity per share, SEK ......................................................................................... 82.61 78.48 Capital quotient excluding complement** ........................................................... 2.28 2.23 Tier 1 capital ratio, excluding complement** ...................................................... 16.1% 14.0% Capital adequacy ratio, excluding complement** ............................................... 18.2% 17.9%

15

Tier 1 capital ratio, transition rules**, % .............................................................. 11.0% 10.5% Capital adequacy ratio** ..................................................................................... 12.5% 13.4% Credit impairment ratio, net ................................................................................ (0.19)% 0.46% Share of impaired loans, gross ........................................................................... 2.20% 2.90% Risk-weighted assets, new rules**, SEK billion .................................................. 509 579 Risk-weighted assets, transition rules**, SEK billion .......................................... 745 772 Full time employees ............................................................................................ 17,008 17,529 * See section “Definitions”. ** Risk-weighted assets are defined by the capital adequacy rules in Sweden and represent a measure of the Group’s credit risk-taking. The capital adequacy rules changed in 2007, and accordingly, the Group is required to present its risk-weighted assets in accordance with the old rules, new rules and transition rules. The capital adequacy rules also define the computations for capital quotient, Tier 1 capital ratio and the capital adequacy ratio. See “Management’s Discussion and Analysis — Capital Adequacy” for further information, including the timing and implications of the risk-weighted asset rules. All tier 1 capital contributions are based on transition rules according to FFFS 2010:10.

The section “Ratings” on page 90 shall be amended by the insertion of the following paragraph: “On June 8, 2011, Moody’s upgraded the Group’s stand alone bank financial strength rating one notch to 'C-' mapping to a BCA stand alone rating of Baa2 and raised the junior subordinated debt and Tier 1 hybrid securities one notch to Baa3 and Ba2, respectively, with a positive outlook. The A2 long-term debt and deposit rating and A3 subordinated debt rating were affirmed with stable outlook. The upgrade reflects Moody’s view of the stabilisation of asset quality in the Baltic operations and the Group's improving financial strength and good capital and liquidity metrics. Moody’s have a positive outlook for the Group's Baa2 standalone credit rating.” The amendments described above should be read in conjunction with the section “Selected Financial Information” as set out in the Prospectus.

16

Amendments to “Management’s Discussion and Analysis” The section “Management’s Discussion and Analysis” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The section “A. Company’s Management Discussion and Analysis” on page 91 shall be amended by the insertion of the following section immediately following the graph on page 103: “Review of Company’s Interim Report January – June 2011 The following discussion on the financial condition and result of operations of the Company should be read in conjunction with the unaudited condensed consolidated financial information of the Company as of and for the six month period ended June 30, 2011 and 2010 incorporated by reference in this Prospectus, as well as with the information presented under “Selected Financial Information” and “Selected Statistical and Other Information”. Overview As of June 30, 2011, more than 90 per cent of the Company’s total lending volume of SEK 705 billion (more than 90 per cent of the Company’s total lending volume of SEK 697 billion as of December 31, 2010) was represented by loans to the residential sector. Stability of the Real Estate Market From July 2010 to July 2011 the Riksbank has gradually increased the repo rate from 0.25 per cent to the current rate of 2.00 per cent. The increase of interest rates together with the LTV-cap of 85 per cent (from October 1, 2010 from the Swedish FSA's) have cooled off the housing market during 2011. The house price change for tenant owner rights has increased by 3 per cent compared to the same period last year and the corresponding house price change for single-family housing is 0 per cent.1 New Portfolio Provision Model Affected the Year’s Credit Impairments For the first six months of 2011 credit impairments resulted in a charge of SEK 34 million as compared to SEK 174 million for the corresponding period in 2010. The largest part of this decrease in credit impairment profit reduction is primarily due to the change in the portfolio valuation model that reduced profit by SEK 153 million as of June 30, 2010. As of June 30, 2011, established credit impairments amounted to SEK 21 million (SEK 21 million as of June 30, 2010), utilisation of previous provisions amounted to SEK 3 million (SEK 5 million as of June 30, 2010), while recoveries from previous years’ impairments totalled SEK 1 million (SEK 0 million as of June 30, 2010). Provisions for credit impairments amounted to SEK 17 million during the six months ended June 30, 2011, compared to SEK 158 million for the corresponding period of 2010.

Income Statement

For the six month period ended June 30 SEK million 2011 2010 INCOME STATEMENT DATA Net interest income ........................................................................ 1,888 2,011 Net commissions ........................................................................... (291) (234) Net gains and losses on financial items at fair value .................... (62) 65 Other income ................................................................................. 4 4 Total income................................................................................. 1,539 1,846 Staff costs ...................................................................................... Other expenses .............................................................................

• 1 Mäklarstatistik April-June 2011, www.maklarstatistik.se

17

Total expenses .............................................................................

• Profit before impairments

........................................................... 1,539 1,846 Credit impairments ........................................................................ 34 174 Operating profit ........................................................................... 1,505 1,672 Tax expense .................................................................................. 396 440 Profit for the year ......................................................................... 1,109 1,232

Interest Income and Expense Net Interest Income

Net interest income decreased by 6 per cent to SEK 1,888 million for the first six months of 2011, compared to SEK 2,011 million for the corresponding period in 2010. The decrease is mostly due to higher funding costs.

Interest Income

Interest income increased by SEK 3,324 million or 35 per cent for the first six months of 2011 compared to the corresponding period in 2010 as a result of higher interest rates. The average volume of loans to credit institutions has been lower during 2011, both cash balance and other types of lending to the parent

• company. Even though interest rates have increased, the lower volume reduces the increase of interest

income to SEK 102 million. Interest income from loans to the public increased by SEK 3,222 million or 34 per cent for the six month period ended June 30, 2011 relative to the same period in 2010. The main reason is higher average interest rates on the loan portfolio. The components of interest income are set out below:

For the six month period ended June 30 SEK million 2011 2010 Loans to credit institutions .................................................................................. 265 163 Loans to the public .............................................................................................. 12,668 9,446 Interest-bearing securities ..................................................................................

• Total....................................................................................................................

12,933 9,609

Interest Expenses

Interest expenses increased by SEK 3,447 million or 45 per cent for the six months ended June 30, 2011 compared to the same period of 2010, mostly as a consequence of higher market interest rates. Also due to the longer average maturity of liabilities relative to assets, interest expenses have increased more than interest income. The components of interest expense are set out below:

For the six month period ended June 30 SEK million 2011 2010 Amounts owed to credit institutions ........................................................................ (2,467) (1,455) Debt securities in issue ....................................................................................... (8,484) (6,097)

• f which derivatives......................................................................................

(315) 2,027

• f which commission for

state guarantee ...........................................................................................

• 8

Subordinated liabilities ..........................................................................................

• Other ...................................................................................................................
• f which fee state stabilisation fund .............................................................

(94) (89) (46) (38) Total.................................................................................................................... (11,045) (7,598)

18

Net Commission

For the six month period ended June 30 SEK million 2011 2010 Payment processing ........................................................................................... 24 23 Total commission income ............................................................................... 24 23 Commission to savings banks ............................................................................ (311) (253) BKN fees* ........................................................................................................... (1) (2) Market maker fees .............................................................................................. (2) (2) Other commissions ............................................................................................. (1)

• Total commission expense

.............................................................................. (315) (257) Total net commission ....................................................................................... (291) (234) * Bostadskreditnämnden, BKN, is a government authority to which the company pays a mandatory guarantee fee.

Net commission expense amounted to SEK (315) million for the six months ended June 30, 2011, an increase of 23 per cent compared to the same period in 2010. Commission costs to the savings banks increased by SEK 58 million for the first six months in 2011 compared to the same period in 2010. Part of the change is due to changes in the co-operation agreement between the Company and the savings banks effective as of the end of 2010 but also larger volumes and higher margins have contributed to a higher commission cost.

Net Gains and Losses on Financial Items at Fair Value

For the six month period ended June 30 SEK million 2011 2010 Valuation category, fair value through profit or loss Trading and derivatives

• f which Interest-bearing securities

............................................................ 4,027 (7,593) Other

• f which Interest-bearing securities

........................................................... (4,075) 7,608 Hedge accounting at fair value Hedging instruments ........................................................................................... (257) 3,192 Hedged item........................................................................................................ 227 (3,202) Total .................................................................................................................... (30) (10) Financial liabilities at amortised cost .................................................................. (26)

• Valuation category, loans and receivables

......................................................... 42 60 Total net gains and losses on financial items at fair value.......................... (62) 65

Net losses on financial items at fair value amounted to SEK (62) million for the first six months of 2011, compared to net gains of SEK 65 million for the same period in 2010. The variation in net gains and losses is partly a result of open interest rate risk positions from items for which the fair value option is applied.

Net Credit Impairments

In the six month period ended June 30, 2011 net credit impairments were SEK 34 million compared to SEK 174 million for the corresponding period in 2010. In 2010, net credit impairments were negatively affected by the change in valuation model for portfolio provisions by SEK 153 million. See “New Portfolio Provision Model Affected the Previous Year’s Credit Impairments” above.

Assets

Total assets increased 2 per cent to SEK 762,174 million as of June 30, 2011 compared to SEK 744,581 million as of December 31, 2010, based on changes in book value. Lending to the public increased by SEK 7.5 billion to SEK 704,851 million as of June 30, 2011 compared to December 31, 2010 (including change in market value). The amount meeting the criteria was SEK 655,716

19

million (nominal and accrued interest) as of June 30, 2011, an increase of SEK 16 billion compared to one year earlier. Positive book values on derivatives increased by SEK 0.3 billion and were offset by negative book values on derivatives, liabilities, and also with debt securities in issue as derivatives and issued securities are offsetting changes in market value and changes in foreign exchange rates.

As of June 30 As of Dec. 31 BALANCE SHEET DATA 2011 2010 Treasury bills and other bills eligible for refinancing with central banks, etc. ............

• Loans to credit institutions............................

39,253 36,493 Loans to the public...................................... 704,851 697,299 Shares and participating interests..................

• Derivatives.................................................

7,234 6,931 Intangible fixed assets.................................

• Tangible assets...........................................
• Current tax assets.......................................
• Other assets ..............................................

10,836 3,858 Total assets .............................................. 762,174 744,581 *The “Prepaid expenses and accrued income” line item which appears in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and 2008 has not been included here because this line item is only determined on an annual basis.

Household loans past due by more than 60 days as a share of the total loan portfolio remain at around 0.10 per cent (0.07 per cent as of December 31, 2010). The corresponding figure is 0.02 per cent (0.02 per cent as of December 31, 2010) for commercial loans and 0.06 per cent (0.07 per cent as of December 31, 2010) for agricultural and forestry loans. The portfolio’s impaired loans, after deducting provisions of SEK 66 million (SEK 202 million as of December 31, 2010), amounted to SEK 98 million (SEK 86 million as of December 31, 2010) as of June 30, 2011, corresponding to 0.01 per cent (0.01 per cent as of December 31, 2010) of the total loan portfolio.

Liabilities

Total liabilities increased 2 per cent to SEK 730,070 million as of June 30, 2011 from SEK 712,901 million as

• f December 31, 2010, based on changes in book value.

Amounts owed to credit institutions increased by SEK 29,339 million while debt securities in issue increased by SEK 56,669 million as of June 30, 2011 compared to December 31, 2010. The average maturity of debt securities in issue has been continuously extended during 2010 and 2011. Negative book values on derivatives decreased between December 31, 2010 and June 30, 2011, and are

• ffset by the positive book value on derivatives and issued securities. All derivatives are made with the

Guarantor.

As of June 30 As of Dec. 31 SEK million 2011 2010 BALANCE SHEET DATA* Amounts owed to credit institutions ........ 199,838 229,177 Debt securities in issue .......................... 507,997 451,328 Derivatives ............................................. 14,075 15,565 Other liabilities ....................................... 193 3,423 Accrued expenses and prepaid income ................................................... 7,966 13,408 Total liabilities ...................................... 730,069 712,901 *The “Current tax liabilities” and “Deferred tax liabilities” line items which appear in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and 2008 have not been included here because these line items are

20

• nly determined on an annual basis.

Loan Portfolio

During the first six months of 2011 total lending to the public increased by 1 per cent. Almost all of this increase in lending has been in the private residential sector. Lending to the commercial sector, which largely consists of tenant-owner associations, with relatively low loan-to-value ratios, fell by SEK 2.6 billion to SEK 116 billion. The increase in lending slowed down in the first six months of 2011 compared to the previous

• year. This was mainly driven by three factors. Firstly, the economy continued to improve and employment

levels rose. Moreover, the increase of the Swedish Central Bank base rate was initiated during the year, which led to increases in mortgage interest rates. According to the internal risk classification model the loan portfolio has a high credit quality with low risks, with 85 per cent of the exposure in the risk classification having been assigned investment grade risk class as of June 30, 2011.

Basel II

The transition rules have been extended to 2015, meaning that the 80 per cent floor still applied during the first six months of 2011.

Funding

During the first six months of 2011 the demand from the Swedish market for covered bonds was high and issues were done on a regular basis in the existing Swedish covered bond programs. During the period, the Company also put in place a global funding program for covered bonds. During the first quarter of 2011, the Company issued USD 2 billion under this new program comprising a three-year USD 1 billion bond with floating rate and a five-year USD 1 billion bond with fixed rate. During the six month period ended June 30, 2011, the Company also issued bonds denominated in EUR and CHF on the international market. In total, the Company has during the first six months of 2011 completed eleven benchmark issues in the international market, of which two are in EUR, seven in CHF and two in USD. The total nominal amount that has been issued during the first six months of 2011 is SEK 84 billion on the Swedish market and SEK 53 billion on the international market. During the second half of 2010 the Company began a structural change of the maturity structure of its Swedish covered bonds. Going forward its bond loans are structured to mature at nine-month intervals, compared with about 12 months before. The expectation is that this will create a closer match between assets and liabilities and better spread out maturities over time.

The Company SEK million, notional amounts As of June 30, 2011 Amount owed to credit institutions............................................................................. 199,838 Debt securities in issue etc, short-term ..................................................................... 771 Debt securities in issue etc, long-term ...................................................................... 507,226

• f which Domestic covered bonds

.................................................................. 320,262 Total .................................................................................................................... 707,835

21

Covered Bonds

As of June 30, 2011 the Company’s cover pool consisted of loans with collateral in Swedish property with a weighted average loan-to-value ratio of 57 per cent (compared to 60 per cent for the Company’s entire loan portfolio). During the first six months of 2011, the Company issued covered bonds amounting to SEK 137 billion to investors in the Swedish and in the international markets. As of June 30, 2011, the Company had SEK 494 billion of covered bonds outstanding placed to end-investors (excluding intra-group issuance). Out of the total outstanding volume, approximately SEK 320 billion were issued in the Swedish domestic covered bond market with typical tenors of two to five years, approximately SEK 148 billion were denominated in non-SEK currencies, primarily Euro and Swiss Francs, with typical tenors of three to seven years and approximately SEK 26 billion were issued with maturities longer than seven years.”

22

The section “B. Guarantor’s Management Discussion and Analysis” on page 104 shall be amended by the insertion of the following section immediately following the paragraph “Cash and Cash Equivalents” on page 128: “Review of Guarantor’s Interim Report January – June 2011 The following discussion on the financial condition and result of operations of the Group should be read in conjunction with the unaudited condensed consolidated financial information of the Group as of and for the six month period ended June 30, 2011 and 2010 incorporated by reference in this Prospectus, as well as with the information presented under “Selected Financial Information” and “Selected Statistical and Other Information”. Overview As of June 30, 2011, the Group’s loans to the public amounted to SEK 1,147 billion (excluding repurchase agreements, loans to credit institutions and loans to the Swedish National Debt Office). For the six month period ended June 30, 2011, the Group recorded SEK 8,078 million in profit before impairments and provisions. Market Share1

Market share, Sweden As of May 31, 2011 Private market Deposits ............................................................................................................... 24% Lending ................................................................................................................ 25%

• f which mortgage lending

.............................................................................. 27% Corporate market Deposits ............................................................................................................... 16% Lending ................................................................................................................ 16% Market share, Estonia As of May 31, 2011 Private market Deposits ............................................................................................................... 55% Lending ................................................................................................................ 47%

• f which mortgage lending

.............................................................................. 47% Corporate market Deposits ............................................................................................................... 41% Lending ................................................................................................................ 37% Market share, Latvia As of May 31, 2011 Private market Deposits ............................................................................................................... 24% Lending ................................................................................................................ 27%

• f which mortgage lending

.............................................................................. 27% Corporate market Deposits ............................................................................................................... 9%

1 Statistics Sweden, Estonian Central Bank, Association of Commercial Banks of Latvia, The Financial and Capital Market Commission

(Latvia), Association of Lithuanian Banks, public interim reports and Swedbank estimates

23

Lending ................................................................................................................ 20% Market share, Lithuania As of May 31, 2011 Private market Deposits ............................................................................................................... 32% Lending ................................................................................................................ 26%

• f which mortgage lending

.............................................................................. 25% Corporate market Deposits ............................................................................................................... 21%

Significant Factors Affecting Results of Operations and Business Conditions General Macroeconomic Factors Following a recovery in global economic conditions, last year produced GDP growth of 4.7 per cent. All in all, GDP is expected to grow by 4 per cent both in 2011 and 2012. The recovery has gained momentum, resulting in annualised GDP growth of 4 per cent to 4.5 per cent in Sweden and the Baltic countries during the first six months of this year. As stimuli from economic policy worldwide are abating, growth in external demand is slowing. Exports remain important for growth, not least because they have a positive impact on investments and employment. However, to some extent, growth is being tempered by higher commodity prices which also tend to increase inflation and interest rates. GDP growth in the Baltic countries is expected to stay at around 4 per cent to 4.5 per cent or rise slightly in 2012, while Sweden’s growth is expected to decline to 2.6 per cent, which is still above trend growth.1 Sweden Sweden (Retail and LC&I) accounted for 76 per cent of the Group’s total income for the period ended June 30, 2011. The Baltic Countries The Baltic countries accounted for 18 per cent of the Group’s total income for the period ended June 30, 2011. Interest Rates The impact of a rise or fall of market rates of 100 basis points, which thereafter remain unchanged for a year and the consolidated balance sheet remains essentially the same, would impact net interest income by SEK 1,476 million and SEK (1,497) million, respectively, as of June 30, 2011. Equity Capital Markets Net commission in the Asset Management and Insurance segment is directly impacted by fluctuations in global equity capital markets because net commission is related to the value of assets under management. Accordingly, the Group’s net commission for the year ended June 30, 2011 was positively impacted due to increased assets under management driven by favourable market conditions in 2010. Volatility in stock prices will continue to have a significant effect on the Group’s results of operations. A decline in stock market prices by 10 per cent would have reduced the Group’s net commission by SEK 276 million in the year ended June 30, 2011.

1 Swedbank Economic Outlook, 2011-04-07

24

Valuation of Financial Instruments at Fair Value The table below shows financial instruments carried at fair value at June 30, 2011, by valuation method.

As of June 30, 2011 SEK million Quoted market price1 Valuation model Level 22 Valuation model Level 33 Total Assets Treasury bills and other bills eligible to refinancing with central banks etc ...................................................................... 33,883 1,476

• 35,359

Loans to credit institutions ................................................................ 179 110,297

• 110,476

Loans to the public ............................................................................ 3 513,517

• 513,520

Bonds and other interest-bearing securities ..................................... 82,050 25,488 644 108,182 Shares and participating interests ..................................................... 2,215 244

• 2,459

Financial assets for which the customers bear the investment risk .............................................................................................. 104,255

• 104,255

Derivatives ......................................................................................... 2,263 58,108

• 60,371

Total .................................................................................................. 224,848 709,130 644 934,622 Liabilities Amounts owed to credit institutions ...................................................

• 18,899
• 18,899

Deposits and borrowings from the public ..........................................

• 38,371
• 38,371

Debt securities in issue etc. ............................................................... 68,181 127,867

• 196,048

Financial liabilities for which the customers bear the investment risk ..............................................................................................

• 104,499
• 104,499

Derivatives ......................................................................................... 2,955 57,941 5 60,901 Short positions securities................................................................... 28,342

• 28,342

Total .................................................................................................. 99,478 347,577 5 447,060 1 Financial assets and financial liabilities valued using unadjusted quoted prices in active markets for identical assets or liabilities. This category includes, for example, Treasury bills and listed shares. 2 Valuation techniques using observable market data 3 Valuation techniques using non-observable market data

Credit Impairments and Provisioning Levels During 2010 and the first six months of 2011 the economic conditions stabilised in the Baltic countries, as well as in Ukraine, which led to increased automatic provisioning and therefore less provisioning based on subjective assessments. At the end of June 2011, the Group’s provisions in the Baltic operation amounted to SEK 11,932 million. The provisions in Ukraine amounted to SEK 4,317 million.

25

Goodwill Impairment During 2010 and 2011 the economic conditions stabilised in the Baltic countries. An impairment test conducted as of year-end 2010 did not necessitate any impairment. During 2011 there have been no indications that signified to management the need for new impairment testing. Recent Developments The Group has implemented changes in its legal structure with regard to Estonia, Latvia and Lithuania. Previously the three Baltic units were included in a group whose parent company was Swedbank in Estonia. The change means that the three Baltic companies are now directly owned by the Guarantor. The change has no impact on the Group’s results or financial position. The new legal structure took effect on July 1,

• 2011. As of August 10, 2011, the Group has taken the next step in development with changes in top

management positions. Göran Bronner, the Group’s current Chief Risk Officer, has become the new Chief Financial Officer. Håkan Berg, the former Head of Baltic Banking has become the new Chief Risk Officer. The new Head of Baltic Banking is Birgitte Bonnesen, who was the former Head of Internal Audit. All changes have taken place with immediate effect.

Consolidated Income Statement

For the six month period ended June 30 SEK million 2011 2010 INCOME STATEMENT DATA Net interest income ............................................. 9,267 7,822 Net commissions ................................................ 4,545 4,677 Net gains and losses on financial items at fair value .................................................... 766 1,469 Other income ...................................................... 2,229 1,471 Total income...................................................... 16,807 15,439 Staff costs ........................................................... (4,857) (4798) Other expenses .................................................. (3,872) (4,016) Total expenses .................................................. (8,729) (8,814) Profit before impairments ................................ 8,078 6,625 Impairment of intangible assets ..........................

• 14

Impairment of tangible assets ............................ 17 164 Credit impairment ............................................... (1,296) 3,173 Operating profit (loss) ...................................... 9,357 3,274 Tax expense ....................................................... 2,045 1,141 Profit (loss) for the period .............................. 7,312 2,133 Profit (loss) for the period attributable to the shareholders of the parent company (Guarantor) ................................................... 7,304 2,103

Net recoveries and higher income, including the one-off revenue of SEK 716 million from the settlement with the bankruptcy estate of Lehman Brothers’ during the first quarter of 2011, had a positive effect on profit, while expenses declined marginally.

Net Interest Income

Net interest income increased by 18 per cent to SEK 9,267 million during the six month period ended June 30, 2011 (compared to SEK 7,822 million as of June 30, 2010). The main factors positively affecting net interest income were higher interest rates in Sweden, with accompanying adjustments in loan terms, lower expenses for deposits in local currency in the Baltic countries, the Lehman Brothers' settlement and slightly higher Euribor rates. Interest on overdue payments previously recorded as other income in the Baltic Banking business area has been reclassified as net interest income. The stability fee doubled from the previous year to SEK 253 million as of June 30, 2011. Lower lending volumes and a higher share of mortgage lending in relation to corporate lending affected net interest income negatively. Increased

26

expenses for liquidity reserves and lower returns on the investment portfolio used to hedge interest rates on current accounts and equity also affected net interest income negatively. Since the guarantee fees for Swedbank’s government guaranteed funding are not reflected in the internal rate of interest, net interest income in the business areas has risen slightly, with an offsetting decline in Group Treasury within Group

• Functions. Interest on overdue payments previously recorded as other income in the Baltic Banking business

area has been reclassified as net interest income.

Interest Income

Consolidated interest income was SEK 25,311 million for the six months period ended June 30, 2011, compared to SEK 18,822 million for the six months period ended June 30, 2010. The components of interest income are set out below:

For the six month period ended June 30 SEK million 2011 2010 Credit institutions ................................................................................................................................ 836 409 Loans to the public .............................................................................................................................. 22,541 17,831 Interest-bearing securities .................................................................................................................. 1,634 663 Other ................................................................................................................................................... 300 (81) Total.................................................................................................................................................... 25,311 18,822

Interest Expenses

Consolidated interest expenses were SEK 16,044 million for the six months ended June 30, 2011, compared to SEK 11,000 million for the six months ended June 30, 2010. The components of interest expense are set

• ut below:

For the six month period ended June 30 SEK million 2011 2010 Credit institutions ................................................................................................................................ 630 664 Deposits and borrowings from the public ........................................................................................... 3,335 2,044 Debt securities in issue ....................................................................................................................... 10,984 10,730 Subordinated liabilities ........................................................................................................................ 609 735 Other ................................................................................................................................................... 486 (3,173) Total.................................................................................................................................................... 16,044 11,000

Net Commission

For the six month period ended June 30 SEK million* 2011 2010 Asset management ............................................................................................................................. 1,993 1,975 Payment processing ........................................................................................................................... 1,550 1,609 Corporate Finance .............................................................................................................................. 126 172 Other ................................................................................................................................................... 876 921 Total.................................................................................................................................................... 4,545 4,677 *The “Cards”, “Lending” and “Brokerage” line items which appear in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and 2008 have not been included here because these line items are only determined on an annual basis.

Net commission income decreased to SEK 4,545 million during the six month period ended June 30, 2011, compared to SEK 4,677 million during the six month period ended June 30, 2010. The decrease was mainly due to lower commission income from payment processing, stock trading and corporate finance. During the second quarter of 2011 the method for accruing commission income was changed within Large Corporates &

• Institutions. The change was implemented as of January 1, 2011, and as a result, commission income fell

during the second quarter by SEK 68 million, which was recognised as revenue during the first quarter.

27

Net Gains and Losses on Financial Items at Fair Value

For the six month period ended June 30 SEK million 2011 2010 Valuation category, fair value through profit and loss ........................................................................ 83 429 Other financial instruments .................................................................................................................

• 59

Hedge accounting at fair value*.......................................................................................................... 96 232 Ineffective part in hedging of net investments in foreign operations ..................................................

• Financial liabilities valued at amortised cost ......................................................................................

(39)

• Change in exchange rates

.................................................................................................................. 626 749 Total.................................................................................................................................................... 766 1,469 *According to description within changes in accounting policies, note G2 in the audited consolidated financial statements of the Group as

• f and for the year ended December 31, 2010, there has been a transfer between these rows regarding historical figures.

For the six month period ended June 30 SEK million 2011 2010 Financial instrument for trading related business ............................................................................... 742 1,143 Financial instrument intended to be held until contractual maturity ................................................... 24 326 Total.................................................................................................................................................... 766 1,469

Net gains and losses on financial items at fair value fell by 48 per cent to SEK 766 million as of June 30, 2011 (SEK 1,469 million for the six month period ended June 30, 2010). In Group Functions, Group Treasury reported lower profit due to negative valuation effects e.g. from basis swaps. Capital market funding in EUR is often swapped to SEK. These swaps are marked to market. In 2010 swap costs increased significantly, which at the same time had a positive valuation effect. During the first six months of 2011 the situation was the opposite, which had a negative effect on net gains and losses on financial items at fair value. The effect

• n earnings of these changes in value is small over time, but volatility can be high between quarters, which

impacts earnings.

Staff Costs

Consolidated staff costs increased by SEK 61 million or 1 per cent to SEK 4,857 million during the six month period ended June 30, 2011, compared to SEK 4,798 million during the six month period ended June 30,

• 2010. Since July 1, 2010 the Group pays parts of the variable remuneration in the form of shares. This

remuneration is accrued until such time as the shares are settled. As a result, variable remuneration allocated during the period may differ from the booked amount. During the first six months of 2011, the earnings impact of variable remuneration was SEK 275 million, while the provision for variable remuneration was SEK 597 million. During the first quarter of 2011, SEK 54 million from previous years’ provisions for variable remuneration was reversed within Large Corporates & Institutions.

Other Expenses

For the six month period ended June 30 SEK million* 2011 2010 Consulting and outside services ..................................................................................................................... 704 846 IT expenses .................................................................................................................................................... 801 806 Rents ............................................................................................................................................................... 674 708 Security transports, alarm system .................................................................................................................. 221 181 Advertising, public relations, marketing .......................................................................................................... 178 161 Telecommunications, postage ........................................................................................................................ 128 138 Office Supply................................................................................................................................................... 102 117 Travel .............................................................................................................................................................. 123 110 Maintenance ................................................................................................................................................... 104 95 Entertainment.................................................................................................................................................. 44 43 Other expenses .............................................................................................................................................. 347 384

28

Total................................................................................................................................................................ 3,426 3,589 *The “Expenses for premises”, “Other admin expenses” and “Other operating expenses” line items which appear in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and 2008 have not been included here because these line items are only determinated on an annual basis.

Consolidated other expenses decreased by SEK 163 million to SEK 3,426 million through the six month period ended June 30, 2011, compared to SEK 3,589 million through the six month period ended June 30, 2010, primarily due to lower consulting expenses by SEK 42 million and lower rents by SEK 34 million.

Impairment of Intangible Assets

There was no impairment of intangible assets recorded in the first six months of 2011. The most recent test was conducted as of year-end 2010 and did not necessitate any impairment. There have been no indications to date in 2011 that have signified the need for new impairment testing.

Impairment of Tangible Assets

Impairment of tangible assets amounted to SEK 17 million through the six month period ended June 30, 2011, a decrease of SEK 147 million compared to the first six months of 2010. The main reason for this decrease is the repossession of leased large commercial vehicles in the Baltic countries, which occurred in the six month period ended June 30, 2010.

Credit Impairment

Net credit recoveries amounted to SEK 1,296 million during the first six months of 2011, against net credit impairments of SEK 3,173 million during the first six months of the previous year. Baltic Banking reported net recoveries of SEK 524 million as of June 30, 2011 compared to net credit impairments of SEK 3,199 million as of June 30, 2010, while Russia & Ukraine reported net recoveries of SEK 659 million as of June 30, 2011 compared to SEK 180 million as of June 30, 2010. Of the reported net recoveries as of June 30, 2011, SEK (1,627) million compared to SEK (2,627) million for the same period previous year was net provisions, of which individual provisions for impaired loans amounted to SEK (984) million (compared to SEK (3,559) million in the previous year) and portfolio provisions for loans individually deemed not to be impaired were as

• f June 30, 2011 SEK (643) million compared to SEK (932) million in the same period previous year). As of

June 30, 2011, net write-offs amounted to SEK 331 million compared to SEK 546 million in the same period previous year.

Tax Expense

The tax expense amounted to SEK 2,045 million in the six month period ending June 31, 2011 compared to SEK 1,141 million in the six month period ending June 30, 2010, corresponding to an effective tax rate of 21.9 per cent for the six month period ending June 30, 2011 compared to 34.9 per cent for the six month period ending June 30, 2010. In the medium term the effective tax rate is estimated at between 21 and 22 per cent. The low effective tax rate is mainly because the Estonian, Russian and Ukrainian operations as well as the Lithuanian leasing company post profits without any tax expense as well as because the SEK 82 million tax provision related to the Group’s Swedish life insurance operations was reversed following a positive Supreme Administrative Court judgement. The main reason why the tax expense was higher than in the previous quarter was that the income from the settlement with the bankruptcy estate of Lehman Brothers’ was subject to a higher tax rate.

Profit for the Period Attributable to the Shareholders of the Parent Company (Guarantor)

Consolidated profit for the period attributable to the shareholders of the parent company (Guarantor) through the six month period ended June 30, 2011 was SEK 7,304 million, compared to SEK 2,103 million through the six month period ended June 30, 2010. Return on equity was 15.3 per cent as of June 30, 2011,

29

compared to 4.7 per cent as of June 30, 2010. The cost/income ratio was 0.52 as of June 30, 2011, compared to 0.57 as of June 30, 2010.

Results of Operations by Sector

For the six month period ended June 30 SEK million 2011 2010 Retail*,** Net interest income ................................................................................................................................ 5,951 4,849 Net commission ..................................................................................................................................... 2,124 2,141 Net gains and losses on financial items at fair value............................................................................. 92 74 Share of profit of associates .................................................................................................................. 393 305 Other income.......................................................................................................................................... 428 504 Total income ......................................................................................................................................... 8,988 7,873 Large Corporates & Institutions* Net interest income ................................................................................................................................ 1,734 1,442 Net commission ..................................................................................................................................... 917 899 Net gains and losses on financial items at fair value............................................................................. 394 748 Other income.......................................................................................................................................... 770 56 Total income ......................................................................................................................................... 3,815 3,145 Baltic Banking Net interest income ................................................................................................................................ 2,014 1,684 Net commission ..................................................................................................................................... 682 764 Net gains and losses on financial items at fair value............................................................................. 116 174 Share of profit of associates ..................................................................................................................

• 1

Other income.......................................................................................................................................... 228 371 Total income ......................................................................................................................................... 3,040 2,994 Asset Management and Insurance Net interest income ................................................................................................................................ 4 (10) Net commission ..................................................................................................................................... 806 784 Net gains and losses on financial items at fair value............................................................................. (5) 12 Other income.......................................................................................................................................... 10 8 Total income ......................................................................................................................................... 815 794 Russia & Ukraine Net interest income ................................................................................................................................ 316 333 Net commission income ......................................................................................................................... 30 42 Net gains and losses on financial items at fair value............................................................................. 21 50 Other income.......................................................................................................................................... 16 13 Total income ......................................................................................................................................... 383 438 Ektornet Net interest income ................................................................................................................................ (26) (7) Net commission .....................................................................................................................................

• Net gains and losses on financial items at fair value.............................................................................

86 4 Other income.......................................................................................................................................... 213 42 Total income ......................................................................................................................................... 273 39 Group Functions Net interest income ................................................................................................................................ (722) (465) Net commission ..................................................................................................................................... (37) 25 Net gains and losses on financial items at fair value............................................................................. 62 407 Share of profit (loss) of associates ........................................................................................................

• Other income..........................................................................................................................................

2,335 2,202 Total income ......................................................................................................................................... 1,638 2,169 Consolidated total income 16,807 15,439 Consolidated staff costs ......................................................................................................................... (4,857) (4,798) Consolidated other expense .................................................................................................................. (3,426) (3,589) Consolidated depreciations and amortisations ...................................................................................... (446) (427) Consolidated total Expense ................................................................................................................ (8,729) (8,814) Consolidated profit before Impairments 8,078 6,625 Impairment of intangible assets .............................................................................................................

• (14)

Impairment of tangible assets ................................................................................................................ (17) (164) Credit impairments ................................................................................................................................. 1,296 (3,173) Consolidated operating profit (loss) .................................................................................................. 9,357 3,274 Consolidated tax expense ..................................................................................................................... (2,045) (1,141) Consolidated profit (loss) for the period ........................................................................................... 7,312 2,133 Consolidated profit (loss) for the year attributable to: Shareholders of the parent company (Guarantor) ........................................................................... 7,304 2,103 Consolidated non-controlling Interests ............................................................................................ 8 30 *The “Share of profit (loss) of Associates” line item which appears in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and

30

2008 has not been included here because this line item is only determinated on an annual basis. **The “Net insurance” line item which appears in the equivalent table in the Base Prospectus in respect of the years 2010, 2009 and 2008 has not been included here because this line item is only determinated on an annual basis. For information on consolidated income statement data see “Consolidated Income Statement”.

Assets

Total assets increased by 2 per cent to SEK 1,757 billion from SEK 1,716 billion between December 31, 2010 and June 30, 2011. The increase in total assets was mainly driven by an increase in bonds and other interest-bearing securities.

Liabilities

Total liabilities increased by 2 per cent to SEK 1,661 billion from SEK 1,621 billion between December 31, 2010 and June 30, 2011. The increase in total liabilities was mainly driven by debt securities in issue.

Liquidity and Capital Resources Liquidity

Liquidity risk refers to the risk of not being able to meet payment obligations at maturity without significant increase in cost of obtaining means of payment (due to high borrowing costs or low prices when divesting assets). The liquidity risks are measured and reported daily through analyses of the Group’s cumulated net financing requirement, based on daily contractual cash flows and the volume of liquid assets eligible for refinancing. These measures, showing the Group’s expected future cash flows, provide important information for the liquidity risk management and for the planning of the Group’s funding. Impacts from non-contractual cash flows are measured through different simulations and stress tests. The Group’s most important internal metric to limit and manage liquidity risk is the survival horizon, a stress test measuring how long the bank can meet its contractual cash flows without access to capital market

• financing. The measurement assumes that the bank can pledge high-quality assets with central banks,

securities with low credit rating or those issued by the bank are not included. The liquidity reserve within currently consists almost exclusively of AAA-rated securities. The Group’s Board of Directors has established a minimum survival horizon limit for the Group. The main purpose of the survival horizon limit is to ensure that the Group maintain adequate survival periods and that the liquidity risks in the Group as well as in separate entities always stays within the Board of Directors defined risk tolerance. Management of the Guarantor is of the opinion that the Group’s working capital (i.e. its ability to access cash and other available liquid resources) is sufficient for it to meet its liabilities as they become due for a period of 12 months after the date of this Prospectus. The Group’s Board of Directors has also established a minimum overcollateralisation level in the cover pool, to ensure that sufficient collateral is available to protect covered bond investors even in the event of house price fluctuations. As per June 30, 2011, the overcollateralisation was 29 per cent. The Group has additional eligible assets which at present are not included in the cover pool. On July 1, 2011, the Swedish FSA’s new regulations on reporting of liquidity risk have come into force. The regulations are based upon the work that has been done within the Basel committee. The new regulations entail reporting in much greater detail than the previous regulations, it includes; size and composition of liquidity buffer, intraday collateral, cash flows, maturity distribution on issued debt, debt concentrations, covered bonds, and liquidity coverage ratio. The Group has been involved in test reporting since autumn

31

2009, therefore management believes that the Group is well prepared for the implementation of the new reporting requirements.

Sources of Funding

During the first six months of 2011 the Group issued in total SEK 153 billion of long-term debt. This was primarily done by issuance of covered bonds, through public and private transactions executed in various markets, currencies and maturities. The table below shows the breakdown of the Group’s different funding sources as of June 30, 2011.

The Group SEK million, notional amounts, as of June 30, 2011 Total Amount owed to credit institutions, short-term ................................................................................................................................................ 125,860 Amount owed to credit institutions, long-term ................................................................................................................................................. 4,315 Deposits and borrowings from the public ........................................................................................................................................................ 528,992 Debt securities in issue etc, short-term ........................................................................................................................................................... 94,384 Debt securities in issue etc, long-term ............................................................................................................................................................ 662,819 Subordinated liabilities..................................................................................................................................................................................... 20,811 Total ................................................................................................................................................................................................................ 1,437,181

Maturing Debt

As of June 30, 2011, the Group had external outstanding long-term debt amounting to SEK 80 billion maturing in 2011 and SEK 121 billion maturing in 2012, including maturing subordinated debt. The maturity distribution of the Group's funding sources is reflected in the following tables:

Maturity distribution, the Group, June 30, 2011

SEK million <3 mths 3 mths-1yr 1-5 yrs 5-10 yrs >10 yrs Discount effect / no maturity Total Amount owed to credit institutions, short-term 122,702 3,158

• 125,860

Amount owed to credit institutions, long-term 44 1,111 3,126 362

• (328)

4,315 Deposits and borrowings from the public 493,454 28,065 7,080 301 92

• 528,992

Debt securities in issue etc, short-term 80,621 13,763

• 94,384

Debt securities in issue etc, long-term 3,686 176,600 398,765 70,494 15,378 (2,104) 662,819 Subordinated liabilities

• 12,313

7,874 624 20,811 Total 700,507 222,697 408,971 83,470 23,344 (1,808) 1,437,181

The average maturity of the Group’s wholesale funding profile, including short-term funding, was extended from 29 months as of December 31, 2010 to 34 months as of June 30, 2011. As of June 30, 2011, the Company had external outstanding long-term debt amounting to SEK 31 billion maturing in 2011 and SEK 71 billion maturing in 2012.

Deposits from the Public

As of June 30, 2011, the Group’s total deposits and borrowings from the public amounted to SEK 529 billion compared to SEK 534 billion as of December 31, 2010. The Group’s deposit base is largely stable and has shown very small movements during the first six months of 2011.

Other Issued Debt

The Group had, as of June 30, 2011 outstanding issued subordinated liabilities, mainly accounted as Tier 1

• r Tier 2 capital for the purposes of capital adequacy, amounting to SEK 21 billion.

32

Loans from the Central Banks and the Swedish National Debt Office

As of June 30, 2011, the Group had no outstanding loans from these counterparties.

The Guarantee Programme

As of June 30, 2011, the Guarantor had SEK 126 billion outstanding and the Company had no outstanding debt under the Guarantee Programme.

Capital Adequacy

The following table sets forth the Group’s capital adequacy data as of the dates indicated.

SEK million As of June 30 As of Dec. 31 2011 2010 Shareholder’s equity according to the Group’s balance sheet ............................................ 95,923 94,897 On the closing day non-paid capital .....................................................................................

• Non-controlling interests

....................................................................................................... 135 138 Anticipated dividend ............................................................................................................. (3,652) (2,995) Deconsolidation of insurance companies ............................................................................. (1,579) (1,395) Associated companies consolidated according to purchase method .................................. 1,500 1,332 Shareholder’s equity financial Group .............................................................................. 92,327 91,977 Unrealised value changes in financial liabilities due to changes in own creditworthiness .. (2) (10) Goodwill ................................................................................................................................ (13,375) (12,966) Deferred tax assets .............................................................................................................. (1,016) (1,213) Intangible assets ................................................................................................................... (1,788) (1,794) Net provisions for reported IRB credit exposures ................................................................ (754) (534) Cash flow hedges ................................................................................................................. 116 44 Shareholdings deducted from Tier 1 capital......................................................................... (45) (34) Less shares in insurance companies ...................................................................................

• Total core Tier 1 capital .....................................................................................................

75,463 75,470 Tier 1 capital contribution with step up ................................................................................. 6,240 6,380 Tier 1 capital contribution without step up ............................................................................ 536 535 Total Tier 1 capital .............................................................................................................. 82,239 82,385 Undated subordinated loans ................................................................................................ 1,481 2,458 Fixed-term subordinated loans ............................................................................................. 12,846 18,313 Deduction remaining duration ..............................................................................................

• Net provisions for reported IRB credit exposures ................................................................

(754) (534) Shareholdings deducted from Tier 2 capital......................................................................... (45) (34) Total Tier 2 capital .............................................................................................................. 13,528 20,203 Less shares in insurance companies ................................................................................... (2,907) (2,901) Total capital base ............................................................................................................... 92,860 99,687 Risk-weighted assets ......................................................................................................... 509,326 541,327 Capital requirement for credit risks, standardised approach ............................................... 2,549 2,723 Capital requirement for credit risks, IRB .............................................................................. 32,126 33,678 Capital requirement for settlement risks ............................................................................... 2

• Capital requirement for market risks ....................................................................................

1,711 2,340

• f which risks in the trading book outside VaR

................................................................ 620 638

• f which currency risks outside VaR

................................................................................ 796 1,443

• f which risks where VaR models are applied

................................................................. 295 259 Capital requirement for operational risks ............................................................................. 4,359 4,565 Capital requirement ............................................................................................................ 40,747 46,306 Complement during transition period ................................................................................... 18,843 16,729 Capital requirement including complement .................................................................... 59,590 60,035 Capital quotient excluding complement ............................................................................... 2.28 2.30 Core Tier 1 capital ratio,%, excluding complement.............................................................. 14.8 13.9 Tier 1 capital ratio,%, excluding complement ...................................................................... 16.1 15.2 Total capital adequacy ratio,%, excluding complement ....................................................... 18.2 18.4 Capital quotient, transition rules ........................................................................................... 1.56 1.66 Core Tier 1 capital ratio,%, transition rules .......................................................................... 10.1 10.1 Tier 1 capital ratio,%, transition rules ................................................................................... 11.0 11.0 Total capital adequacy ratio,%, transition rules ................................................................... 12.5 13.3

As of June 30, 2011 shareholders’ equity amounted to SEK 95,923 million, an increase of SEK 1,026 million from the beginning of 2011. In the Group’s financial companies group, core Tier 1 capital was unchanged during the first six months of 2011 and amounted to SEK 75.5 billion. Core Tier 1 capital was positively affected by the period’s profit (after the anticipated dividend). On April 29, 2011 the Group began repurchasing its shares based on the resolution by the Annual General Meeting. During the second quarter

• f 2011, 33.3 million shares were repurchased, corresponding to 2.9 per cent of the total number of shares

33

• utstanding including the issue and repurchase of C shares. Core Tier 1 capital decreased by approximately

SEK 3.5 billion due to the share repurchases. Tier 2 capital decreased, mainly due to redemptions and repurchases of undated and fixed-term subordinated loans by SEK 6.7 billion to SEK 13.5 billion in the first six months of 2011. The decrease in Tier 2 capital is an element in the Group’s active management of its capital structure and is consistent with the bank’s focus on core Tier 1 capital to ensure the long-term stability of the balance sheet. Risk-weighted assets decreased by SEK 32.0 billion or slightly less than 6 per cent during the six month period ended June 30, 2011 to SEK 509.3 billion. The risk-weighted amount for credit risks decreased during the first six months by just under 5 per cent or SEK 21.5 billion, mainly related to corporate exposures. The average risk weighting for all credit risks in the financial companies group according to the IRB approach decreased slightly to 28.6 per cent as of June 30, 2011. Of the total change in the risk-weighted amount for credit risks, SEK 1.7 billion is due to exchange rate effects. The risk-weighted amount for market risks fell by around 27 per cent or almost SEK 8 billion, mainly due to Estonia's adoption of the Euro and the subsequent decrease in the Group’s open currency positions. The risk-weighted amount for operational risks decreased by 4.5 per cent or nearly SEK 3 billion. The core Tier 1 capital ratio according to Basel 2 increased to 14.8 per cent as of June 30, 2011 compared to 13.9 per cent as of December 31, 2010 and the Tier 1 capital ratio improved to 16.1 per cent compared to 15.2 per cent as of December 31, 2010. The capital adequacy ratio was 18.2 per cent as of June 30, 2011 compared to 18.4 per cent as of December 31, 2010. According to the transition rules, the core Tier 1 capital ratio was 10.1 per cent as of June 30, 2011 compared to 10.1 per cent as of December 31, 2010, the Tier 1 capital ratio was 11.0 per cent as of June 30, 2011 compared to 11.0 per cent as of December 31, 2010 and the capital adequacy ratio was 12.5 per cent as of June 30, 2011 compared to 13.3 per cent as of December 31, 2010.

Cash Flow

The table below shows the composition of the Group’s cash flow for the periods indicated.

SEK million For the six month period ended June 30, 2011 For the year ended December 31, 2010 CASH FLOW STATEMENT Operating activities Operating profit .................................................................................................................... 9,357 9,955 Adjustments for non-cash items in operating activities ....................................................... (10,010) 4,969 Taxes paid ........................................................................................................................... (1,651) (3,368) Increase/decrease in loans to credit institutions ................................................................ (35,853) (81,818) Increase/decrease in loans to the public ............................................................................. 14,304 57,969 Increase/decrease in holdings of securities for trading ....................................................... (13,205) 20,965 Increase/decrease in deposits and borrowings from the public including retail bonds ...... (6,840) 68,270 Increase/decrease in amounts owed to credit institutions .................................................. (7,186) (78,287) Increase/decrease in other assets ...................................................................................... (3,229) 1,726 Increase/decrease in other liabilities ................................................................................... (3,821) (14,243) Cash flow from operating activities ................................................................................ (58,134) (13,862) Investing activities Business disposals ..............................................................................................................

• 140

Acquisition of other fixed assets and strategic financial assets .......................................... (254) (2,411) Disposals of other fixed assets and strategic financial assets ............................................ 474 3,463 Cash flow from investing activities ................................................................................. 220 1,192 Financing activities Issuance of interest bearing securities ................................................................................ 153,171 261,697 Redemption of interest bearing securities ........................................................................... (124,504) (222,899) Change in other borrowings ................................................................................................ 30,532 (44,447) Dividends ............................................................................................................................. (3,007)

• Changes in ownership interest in subsidiary

.......................................................................

• (621)

New share issue .................................................................................................................. 32

• Repurchased shares ...........................................................................................................

(3,584)

• Cash flow from financing activities

................................................................................. 52,640 (6,270) Cash flow for the period ................................................................................................... (5,274) (18,940) Cash and cash Equivalents at the beginning of the period .......................................... 17,109 37,879 Cash flow for the period....................................................................................................... (5,274) (18,940) Exchange rate differences on cash and cash equivalents .................................................. 119 (1,830) Cash and cash Equivalents at the end of the period..................................................... 11,954 17,109”

34

The amendments described above should be read in conjunction with the section “Management’s Discussion and Analysis” as set out in the Prospectus.

35

Amendments to “Capitalisation and Indebtedness” The section “Capitalisation and Indebtedness” as set out on page 129 in the Prospectus shall with effect from the date hereof be amended as follows: The table below shall be inserted immediately following the table under the heading “Capitalisation and Indebtedness” on page 129.

SEK million As of June 30, 2011 Total capitalisation Senior long-term debt .................................................................................................................. 35,298 23.2% Subordinated long-term debt ....................................................................................................... 20,811 13.7% Total long-term debt .................................................................................................................. 56,109 36.9% Share capital ................................................................................................................................ 24,351 16.0% Reserves ...................................................................................................................................... 15,174 10.0% Retained earnings ....................................................................................................................... 49,229 32.3%

• f which Dividend .....................................................................................................................

(2,995)

• f which New share issue

......................................................................................................... 32

• f which Reversal of VAT costs incurred on rights issue 2009

................................................ 35

• f which Repurchased shares

.................................................................................................. (3,580)

• f which Share based payments to employees .......................................................................

92

• f which Associates’ acquisition of shares in Swedbank AB ...................................................

(4)

• Profit for the year .........................................................................................................................

7,304 4.8% Total shareholder’s equity ........................................................................................................ 96,058 63.1% Total capitalisation .................................................................................................................... 152,167 100.0%

The amendments described above should be read in conjunction with the section “Capitalisation and Indebtedness” as set out in the Prospectus.

36

Amendments to “Selected Statistical and Other Information” The section “Selected Statistical and Other Information” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The following section shall be inserted immediately following the table under the heading “Return on Equity and Assets” on page 138: “Selected Statistical and Other Information: January ― June 2011 The information below is derived from the Group’s unaudited consolidated financial information as of June 30 2011 and should be read in conjunction with the Group’s Interim Report, consolidated financial statements and accompanying notes incorporated by reference in this Prospectus, as well as with the section “Presentation of Certain Financial and Other Information” and “Management’s Discussion and Analysis”.

Distribution of Assets, Liabilities and Shareholders’ Equity Average Balance Sheet Information and Information on Interest Rates

The following tables set forth the average balances of the Group’s interest-earning assets and interest- bearing liabilities, other assets and liabilities, the interest generated from such assets and liabilities and average annualised return rate at each date presented. Average balances were calculated on the basis of monthly data.

As of June 30, 2011 SEK million Average balance Interest Average rate Assets Loans to credit institutions 197,715 836 0.85% Loans to the public…………………………......................... 1,171,687 22,541 3.85% Bonds and other interest-bearing securities....................... 122,151 1,634 2.68% Total interest-earning assets……………………………… 1,491,553 25,011 3.35% Derivatives and other interest bearing assets................... 65,540 192

• Other non-interest bearing assets……….………………….

169,573 108

• Total average assets……….……………………………….

1,726,666 25,311 2.93% Liabilities Amounts owed to credit institutions………………………… 131,009 630 0.96% Deposits and borrowings from the public………………….

• f which deposit guarantee fees....

……………………… 526,018

• 3,335

248 1.27%

• Debt securities in issue, etc …………………………….
• f which commissions for funding with state guarantee

729,848

• 10,984

638 3.01%

• Subordinated liabilities………..……………………………

23,694 609 5.14% Total interest-bearing liabilities .... …………………….. 1,410,569 15,558 2.21% Derivatives and other interest bearing liabilities………… 72,511 197

• Other non-interest bearing liabilities…………………........
• f which stability fee…………………………………........

147,664

• 289

253

• Total liabilities…………………………………..................

1,630,744 16,044 1.97% Equity………………………………………………………… 95,451

• Total average liabilities and equity……………..…........

1,726,195 16,044 1.86% Net interest income ……………..…................................. 9,267 Net interest margin ……………..…................................. 1.07%

37

Changes in Interest Income; Volume and Rates Analysis

The following tables set forth the effect of changes in the Group’s interest income resulting from fluctuations in the average volumes and average yield rate at each date presented:

June 30, 2011 compared to December 31, 2010 Increase/(decrease) due to changes SEK million Average volume Average interest Net change Assets Loans to credit institutions ..................................................... 15,037 887 15,924 Loans to the public ................................................................ (51,268) 7,564 (43,704) Bonds and other interest-bearing securities ......................... (7,826) 1,973 (5,853) Total interest on interest-earning assets Derivatives and other interest bearing assets Total interest income .......................................................... (44,057) (8,075) (52,132) 10,424 (5,671) 4,753 (33,633) (13,746) (47,379) Liabilities Amounts owed to credit institutions ....................................... (81,358) 16 (81,342) Deposits and borrowings from the public .............................. 6,014 2,398 8,412 Debt securities in issue.......................................................... 18,782 392 19,174 Subordinated liabilities........................................................... (8,680) (190) (8,870) Total interest on interest-bearing liabilities ........................................................................... (65,242) 2,616 (62,626) Derivatives and other interest-bearing liabilities ................... 8,668 (68) 8,600 Total interest expense......................................................... (56,574) 2,548 (54,026)

Investment Portfolio

The following tables set forth information regarding the Group’s investment portfolio of debt securities at the dates presented, together with information regarding when the instruments comprising the portfolio are due to mature:

Book value SEK million As of June 30, 2011 Treasury bills Swedish government ..................................................... 19,921 Swedish municipalities .................................................. 1,010 Foreign governments ..................................................... 15,653 Total .............................................................................. 36,584 Bonds Swedish mortgage entities ............................................ 63,110 Other Swedish entities Non-financial institutions1 ............................................ 5,569 Other financial institutions1 .......................................... 8,992 Foreign issuers .............................................................. 34,181 Total .............................................................................. 111,852 As of June 30, 2011 SEK million Within 1 year 1 to 5 years 5 to 10 years Over 10 years Treasury bills Swedish government .................................................... 3,621 5,858 6,567 3,875 Swedish municipalities ................................................. 872 138

• Foreign governments

.................................................... Total ............................................................................. 11,160 15,653 3,209 9,205 333 6,900 951 4,826 Bonds1 Swedish mortgage entities ........................................... 20,897 41,523 682 8 Other Swedish entities Non-financial institutions ............................................ 2,033 3,284 252

• Other financial institutions ..........................................

2,591 4,902 1,499

• Foreign issuers .............................................................

13,002 18,467 2,472 240

38

Total ............................................................................. 38,523 68,176 4,905 248

1There are no issuers where the aggregated book value of the securities exceeds 10 per cent of shareholders’ equity.

39

Types of Loans

The following table sets forth a breakdown of the Group’s loan portfolio at the dates presented:

SEK million As of June 30, 2011 Private mortgage ............................................................................................... 624,764 Private other ...................................................................................................... 40,294 Agriculture, forestry, fishing ............................................................................... 61,262 Manufacturing .................................................................................................... 32,460 Public sector and utilities ................................................................................... 14,555 Construction ....................................................................................................... 13,922 Retail .................................................................................................................. 25,835 Transportation.................................................................................................... 12,168 Shipping ............................................................................................................. 16,993 Hotels and restaurants ...................................................................................... 7,082 Information and communication ........................................................................ 2,341 Finance and insurance ...................................................................................... 16,489 Property management ....................................................................................... 144,374 Housing co-operatives ....................................................................................... 72,077 Professional services ......................................................................................... 32,943 Other corporate lending ..................................................................................... 75,691 Financial institutions .......................................................................................... 202,603 Loans to credit institutions and the public 1,395,853 Total credit impairments ................................................................................. 18,388 Total loans, net ................................................................................................ 1,377,465

Maturities of Loans

The following table sets forth maturities of the Group’s loan portfolio as of June 30, 2011:

SEK million Within 1 year 1 to 5 years 5-10 years Over 10 years Fair value adjustments Total in Balance sheet Loans to credit institutions Swedbank AB (The Guarantor) ........................ 192,912 5,892 69 543

• 199,416
• f which repurchase agreements .....................

57,931

• 57,931

Swedbank Mortgage (The Company) .............. 3

• 3

Swedbank Finans AB ....................................... 334

• 334

Swedbank Robur .............................................. 35

• 35

Swedbank Babs AB .......................................... 47

• 47

Ölands Bank AB ............................................... 1

• 1

Other ................................................................. 2,214

• 477

2,691 Total ................................................................. 195,546 5,892 69 543 477 202,527 ___________ ___________ ___________ ___________ ___________ ___________ Loans to the public Swedbank AB (The Guarantor) ........................ 129,894 84,321 31,890 53,036

• 299,141
• f which repurchase agreements .....................

28,131

• 28,131

Swedbank Mortgage (The Company) .............. 13,724 29,803 33,397 626,196 1,731 704,851 Swedbank Finans AB ....................................... 31,961 175

• 32,136

Swedbank Robur ..............................................

• 3
• 3

Ölands Bank AB ............................................... 357 403 299 1,169

• 2,228

Other ................................................................. 33,499 45,540 23,292 33,174 1,074 136,579 Total ................................................................. 209,435 160,242 88,881 713,575 2,805 1,174,938 ___________ ___________ __________ ___________ ___________ ___________

Risk Elements Impaired Loans

The following tables set forth information regarding the amounts of the impaired loans, the gross interest income that would have been recorded if the loans had been current and interest income of those loans that were included in the profit for the year. Impaired loans are those in respect of which the Group has made an assessment that a customer will not be able to meet its financial commitments to the Group.

40

SEK million As of June 30, 2011 Impaired loans ................................................................ 30,669 SEK million As of June 30, 2011 Gross interest income.................................................... 1,038 SEK million As of June 30, 2011 Interest income ............................................................... 584

Analysis of Credit Impairments for Loans

The following table sets out information regarding the Group’s allowance for credit impairments as of the dates presented:

SEK million As of June 30, 2011 Balance at the beginning of the year ................................................................. 21,791 New provisions ....................................................................................................... 770 Utilisation of previous provisions ............................................................................ (1,400) Reversal of previous provisions ............................................................................. (1,754) Portfolio provisions for loans that are not individually assessed as impaired ........ (643) Change in exchange rates ..................................................................................... (376) Balance at the end of the year ............................................................................ 18,388 Total provision ratio for impaired loans % (including portfolio provision in relation to loans that individually are assessed as impaired ................................................................................................................. 60 Provision ratio for individually assessed impaired loans % ........................... 52

Allocation of the Allowance for Credit Impairments

The following tables set forth an analysis of the Group’s allocation of its allowance for credit impairments as

• f the dates presented:

As of June 30, 2011 SEK million Provisions for loans to the public and credit institutions Per cent of loans in each category to total gross loans Private mortgage ........................ 2,973 16.2 Private other ................................ 1,183 6.4 Agriculture, forestry, fishing…..... Manufacturing .............................. 413 2,663 2.2 14.5 Public sector and utilities ............. 77 0.4 Construction ................................. 1,277 6.9 Retail………………………………. 1,838 10.0 Transportation.............................. 349 1.9 Shipping ....................................... 300 1.6 Hotels and restaurants ................ 366 2.0 Information and communication... Finance and insurance ................ 53 97 0.3 0.5 Property management…………... Housing cooperatives…………… Professional services…………… Other corporate lending………… Credit institutions ......................... 5,045 98 580 1,000 76 27.4 0.5 3.2 5.4 0.4 Subtotal 18,388 100.0

41

Short-Term Borrowings

The following table sets out information regarding the Group’s short-term borrowings for the periods presented:

As of June 30, 2011 SEK million Period end balance Average balance Maximum month end balance Average interest rate during the period % Average interest rate at period end % Amounts owed to credit institutions Swedish banks..................................... 52,501 72,689 103,586 Other Swedish credit institutions ......... 8,866 8,608 10,043 Foreign banks ...................................... 66,953 47,663 98,974 Other foreign credit institutions ............ 1,855 2,049 3,386 Total .................................................... 130,175 131 009 215,989 0.96 0.97 Debt securities in issue etc Debt securities in issue etc .................. 757,203 729,848 757,203 Total .................................................... 757,203 729,848 757,203 3.01 2.90

The following tables set forth information regarding the Group’s deposit base at the dates presented:

SEK million As of June 30, 2011 Interest paid to the customer / YTD ................. 3,335 Volumes / YTD average ................................... 526,018 Interest rate / YTD ............................................ 1.27% As of June 30, 2011 SEK million Within 3 months 3 months- 1yr 1-5 yrs 5-10 yrs Over 10 yrs Without maturity date/ change in value Maturity of deposits ................ 493,454 28,065 7,080 301 92

• Return on Equity and Assets

The following table sets out the Group’s return on total assets, return on equity, dividend payout ratio and equity to assets ratio as of the dates presented:

As of June 30, 2011 Return on assets .............................................. 0.83% Return on equity ............................................... 15.3% Dividend pay-out ratio ....................................... 50% Equity to assets ratio ........................................ 5.5%”

The amendments described above should be read in conjunction with the section “Selected Statistical and Other Information” as set out in the Prospectus.

42

Amendments to “Risk Management” The section “Risk Management” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The section “Lending” beginning on page 140 shall be amended by the insertion of the following text and tables immediately following the table setting out the Group’s loans to the public and credit institutions, carrying amount, as of December 31, 2010 on page 142: “The Group’s lending to the public (excluding credit institutions, the Swedish National Debt Office and repurchase agreements) increased by SEK 1 billion during the first six months of 2011 to SEK 1,147 billion

• n June 30, 2011. During the period lending in the Baltic countries, Russia and Ukraine continued to
• decrease. During the period corporate lending again increased in Sweden, mainly due to higher loan

demand from large companies. Mortgage lending in Sweden increased as well, though at a slower pace than in previous periods. Impaired loans decreased by a total of SEK 4.1 billion during the six month period ended June 30, 2011 and included every business area. The decrease was partly due to a slower inflow of new impaired loans during the period and partly because certain large corporate commitments are no longer impaired. Write-offs and exchange rate effects also contributed to the reduction in impaired loans. For the six month period ended June 30, 2011, the Group reported net recoveries totalling SEK 1,296 million, against net credit impairments

• f SEK 3,173 million for the corresponding period in the previous year.

The following table sets out the Group’s loans to the public and credit institutions, carrying amount, as of June 30, 2011:

Loans which are not impaired Impaired loans Total Before portfolio provisions Portfolio provisions After portfolio provisions Before provisions Provisions After provisions SEK million SECTOR/INDUSTRY Private customers ........................ 655,624 431 655,193 9,434 3,725 5,709 660,902 Corporate customers ................... 478,901 2,005 476,896 21,160 12,151 9,009 485,905 Agriculture, forestry, fishing .................................. 60,461 63 60,398 801 350 451 60,849 Manufacturing .......................... 28,597 308 28,289 3,863 2,355 1,508 29,797 Public sector and utilities ................................. 14,436 44 14,392 119 33 86 14,478 Construction ............................. 11,916 75 11,841 2,006 1,202 804 12,645 Retail ........................................ 23,280 265 23,015 2,555 1,573 982 23,997 Transportation .......................... 11,724 124 11,600 444 225 219 11,819 Shipping ................................... 16,563 84 16,479 430 216 214 16,693 Hotels and restaurants ............. 6,549 74 6,475 533 292 241 6,716 Information and communications .................. 2,284 25 2,259 57 28 29 2,288 Finance and insurance ............ 16,357 14 16,343 132 83 49 16,392 Property management ............. 136,626 615 136,011 7,748 4,430 3,318 139,329 Housing cooperatives .............. 72,054 81 71,973 23 17 6 71,979 Professional services ............... 32,129 120 32,009 814 460 354 32,363 Other corporate lending ........... 45,925 115 45,810 1,635 885 750 46,560 Loans to the public excluding the Swedish National Debt Office and repurchase agreements ...... 1,134,525 2,436 1,132,089 30,594 15,876 14,718 1,146,808 Loans to credit institutions, incl Swedish National Debt Office ...................................... 146,042

• 146,042

75 76 (1) 146,041 Loans to credit institutions, repurchase agreements ............................ 57,931

• 57,931
• 57,931

Loans to the public, repurchase agreements 26,686

• 26,686
• 26,686

43

Loans to the public and credit institutions ................. 1,365,184 2,436 1,362,748 30,669 15,952 14,717 1,377,465”

The following text and table shall be inserted immediately following the table setting out the Company’s loans to the public and credit institutions, book values, as of December 31, 2010 on page 143: “The following table sets out the Company’s loans to the public and credit institutions, book values, as of June 30, 2011:

Loans which are not impaired Impaired loans Total Before Portfolio provisions Portfolio provisions After portfolio provisions Before provisions Provisions After provisions SEK million SECTOR/INDUS TRY Private customers ................. 594,290 (103) 594,187 131 (44) 87 594,274 Real estate management ............. 99,697 (47) 99,650 28 (17) 11 99,661 Other property lending....................... 8,023

• 8,023

5 (5)

• 8,023

Municipalities ................. 2,893

• 2,893
• 2,893

Total ............................... 704,903 (150) 704,753 164 (66) 98 704,851 Credit institutions ........... 39,253

• 39,253
• 39,253

Total loans to the public and credit institutions ............... 744,156 (150) 744,006 164 (66) 98 744,104”

The section “Group’s Internal Risk Classification System” beginning on page 143 shall be amended by the insertion of the following sentence at the end of the second paragraph on page 144: “As of June 30, 2011, 75 per cent of the total IRB-assessed exposures fall into the risk classes 13-21, so- called investment grade, where the risk of default is considered low.” The following text and table shall be inserted immediately following the table setting out the Group’s maximum credit risk exposure distributed by rating, as of December 31, 2010, on page 144: “The following table sets out the Group’s maximum credit risk exposure distributed by rating, as of June 30, 2011:

SEK million Retail Corporates Institutions Other Total EXPOSURE AT DEFAULT Low risk ............................................................... 700,733 194,822 131,949

• 1,027,544

Normal risk .......................................................... 88,778 108,200 576

• 197,554

Augmented risk ................................................... 33,708 59,041 369

• 93,118

High risk .............................................................. 20,082 16,796 163

• 37,041

Defaults ............................................................... 9,329 12,442 225

• 21,996

Non-rated ............................................................

• 27,493

27,493 Standardised method ......................................... 11,101 6,523 1,521 112,729 131,874 Total ................................................................... 863,771 397,824 134,803 140,222 1,536,620”

The section “Liquidity Risk” beginning on page 147 shall be amended by the insertion of the following sentences at the end of the third paragraph: “During the six month period ended June 30, 2011 the Group issued in total SEK 152.7 billion of long-term debt, primarily in the form of covered bonds. As of June 30, 2011, the Group had total liquid and/or pledgeable reserves of SEK 415 billion. SEK 203 billion of these consisted of the liquidity reserve within Group Treasury, which is reported in accordance with the Swedish FSA’s new liquidity regulations. Liquid securities in other parts of the Group accounted for SEK 65 billion and the overcollateralisation in the collateral pool for covered bonds amounted to SEK 147 billion.”

44

"The following table shall be inserted immediately following the table entitled “Change in value of assets and liabilities, including derivatives, if the market interest rate rises by one percentage point, as of December 31, 2010” on page 149:

“Change in value of assets and liabilities, including derivatives, if the market interest rate rises by one percentage point, as of June 30, 2011

The Group SEK million <3 mths. 3-6 mths. 6-12 mths. 1-2 yrs. 2-3 yrs. 3-4 yrs. 4-5 yrs. 5-10 yrs. >10 yrs. Total SEK ......................... (60) (43) (553) (674) 745 (147) 13 85 (110) (744) Foreign currency ..... (75) 87 34 (20) 17 (56) 33 (143) (8) (131) Total ....................... (135) 44 (519) (694) 762 (203) 46 (58) (118) (875) In the table above, part of deposits from the public that are payable on demand have been assigned a fixed interest period of between two to three years. Of which financial instruments at fair value SEK ........................... (206) (40) (108) (153) (358) (91) 17 38 (107) (1,008) Foreign currency ....... 17 83 32 102 67 (32) 95 8 134 506 Total ......................... (189) 43 (76) (51) (291) (123) 112 46 27 (502)”

The section “Currency Risk” beginning on page 149 shall be amended by the insertion of the following wording at the end of the third paragraph of the section on page 150: “Following the conversion of the Estonian Kroon to the Euro, the Group’s currency risks decreased

• significantly. The risk-weighted amount for market risks in the calculation of the Group’s capital adequacy

decreased by almost 27 per cent or just below SEK 8 billion, mainly due to Estonia’s adoption of the Euro and the subsequent decrease of the Group’s open currency positions.” The following text and table shall be inserted immediately following the table setting out the currency distribution as of December 31, 2010 on page 151: “The currency distribution as of June 30, 2011 is shown in the following table:

As of June 30, 2011 SEK million SEK EUR USD GBP LVL LTL UAH RUB Other Total Assets Cash and balances with central banks ....................... 2,372 2,241 169 24 3,829 1,770 250 365 934 11,954 Loans to credit institutions ........................... 76,913 50,710 67,744 54 115 841 874 482 4,794 202,527 Loans to the public................... 972,058 131,091 35,951 887 2,792 7,038 968 1,642 22,511 1,174,938 Interest-bearing securities ............................. 98,274 33,211 4,291

• 312

399 354 70 11,525 148,436 Other assets, not distributed ............................ 219,660

• 219,660

Total ........................................ 1,369,277 217,253 108,155 965 7,048 10,048 2,446 2,559 39,764 1,757,515 Liabilities Amounts owed to credit institutions ........................... 79,419 13,919 32,323 66 394 311 43 175 3,525 130,175 Deposits and borrowings from the public ................................... 394,716 60,728 29,429 1,075 9,251 24,961 795 671 7,366 528,992 Debt securities in issue, etc. ....................................... 414,256 187,226 130,435 9,837

• 247
• 36,013

778,014 Other liabilities, not distributed ............................ 224,276

• 224,276

Equity ....................................... 96,058

• 96,058

Total ........................................ 1,208,725 261,873 192,187 10,978 9,645 25,519 838 846 46,904 1,757,515 Other assets and liabilities, including positions in derivatives ...........................

• 71,065

83,793 10,019 2,178 1,690 54 1,302 7,418

• Net position in currency ...........
• 26,445

(239) 6 (419) (13,781) 1,662 411 278 14,363”

45

The section “Derivatives” on page 152 shall be amended by insertion of the following sentence at the end of the paragraph: “The Group’s holding of derivatives, as of June 30, 2011, had a nominal amount of SEK 12,298 billion, of which SEK 735 billion were cleared.” The section “Risk Measurement” beginning on page 152 shall be amended by the insertion of the following text and table immediately following the table showing VaR amounts on page 153: “The VaR was generally higher throughout the six month period ended June 30, 2011, and decreased by the end of the period to relatively similar levels as compared to the six month period ended June 30, 2010, as set

• ut below:

As of and for the six month period ended June 30 2011 2010 SEK million Max Min Average Period end Max Min Average Period end VaR Interest rate risk .................................. 186 83 130 86 127 50 74 64 Currency risk ....................................... 29 3 8 4 19 2 7 7 Share price risk ................................... 11 2 6 3 7 2 5 7 Diversification .....................................

• (18)

(7)

• (10)

(10) Total ................................................... 175 83 126 84 126 52 76 68”

The section “Management of Market Risks” on page 153 shall be amended by insertion of the following paragraph at the end of the section: “Market risks in the Group’s trading operations are low in relation to the Group’s total risks as illustrated by the fact that their share of the total risk weighted amount in the calculation of capital adequacy is about 4.2 per cent as of June 30, 2011. The decrease in market risks relative share of the Group’s total risks in the six month period ended June 30, 2011 is mainly attributable to the conversion of the Estonian currency to Euro.” The amendments described above should be read in conjunction with the section “Risk Management” as set

• ut in the Prospectus.

46

Amendments to “Management” The section “Management” as set out in the Prospectus shall with effect from the date hereof be amended as follows: The individuals listed below shall be inserted in the table in the section “A. Company ― Board of Directors”

• n page 155:

Name Year of birth Board member since Position Peter Stenborn.......................... 1965 2011 President Gunilla Domeij Hallros .............. 1961 2011 Member Magnus Francke ....................... 1945 2011 Member

Each of Helena Silvander, Ingvar Svensson and Ragnar Udin shall be deleted from the table. The individual listed below shall be inserted in the table in the section “B. Guarantor ― Board of Directors”

• n page 156:

Name Year of birth Board member since Position Independent/dependent Olav Fjell……………………… 1951 2011 Member Independent

Berith Hägglund-Marcus shall be deleted from the table. The section “B. Guarantor ― Group Executive Committee” on page 157 shall be amended by replacing the words “December 31, 2010” in the first paragraph with the words “June 30, 2011” and by deleting Stefan Carlsson from the table. The amendments described above should be read in conjunction with the section “Management” as set out in the Prospectus.

47

Amendments to “Banking Regulation and Supervision in Sweden” The section “Banking Regulation and Supervision in Sweden” as set out in the Prospectus shall with effect from the date hereof be amended as follows: Paragraph 1 on page 161 shall be amended by replacing the reference "(1982:713)" with "(2010:2043)". The amendments described above should be read in conjunction with the section “Banking Regulation and Supervision in Sweden” as set out in the Prospectus.

48

Amendments to “General Information” The section “General Information” as set out in the Prospectus shall with effect from the date hereof be amended as follows: Paragraph 4 on page 212 shall be deleted and replaced with the following paragraph: “4. There has been no material adverse change in the financial position or prospects of the Company, the Guarantor or the Group since December 31, 2010 and there has been no significant change in the financial or trading position of the Company, the Guarantor or the Group since June 30, 2011.” The amendments described above should be read in conjunction with the section “General Information” as set out in the Prospectus.