• Startpage
• 2008 in summary
• This is Swedbank
• Letter from the Chair
• President's statement
• Vision and strategy
• Market analysis
• Business areas
• Employees
• Sustainable development
• The share and owners
• Board of Directors' report
• Board of Directors and Group Executive Management
• Corporate governance report
• Annual General Meeting
• Five-year summary
• Three-year summary
• Market shares Sweden
• Market shares Baltic region

• Addresses
• Contacts
• Definitions

Definitions

Capital adequacy ratio

The capital base in relation to the capital requirement.

Capital base

The sum of tier 1 and tier 2 capital less items in accordance with chapter 3 sections 5–8 of the Capital Adequacy and Large Exposures Act.

Cash flow per share

Cash flow for the year in relation to the weighted average number of shares outstanding, rights issue adjustment factor included.

Core tier 1 capital

Tier 1 capital less equity contributions and reserves that may be included in the capital base as tier 1 capital according to chapter 3 section 4 of the Capital Adequacy and Large Exposures Act.

Core tier 1 capital ratio

Core tier 1 capital in relation to the risk-weighted amount.

Cost/income ratio

Costs in relation to income.

Duration

The average weighted maturity of payment flows calculated at present value and expressed in number of years.

Earnings per share after dilution

Profit for the year allocated to shareholders in relation to the weighted average number of shares outstanding during the year, rights issue adjustment factor included, adjusted for the dilution effect of potential shares.

Earnings per share before dilution

Profit for the year allocated to shareholders in relation to the weighted average number of shares outstanding during the year, rights issue adjustment factor included.

Equity per share

Shareholders’ equity in relation to the number of shares outstanding.

Impaired loans

Loans where payments are unlikely to be made in accordance with contract terms. Such loans are not considered impaired if there is collateral that covers principal, interest and any late fees by a safe margin. Impaired loans, gross, less specific provisions for loans assessed individually and provisions for homogenous loans assessed collectively constitute impaired loans, net.

Interest fixing period

Contracted period during which interest on an asset or liability
is fixed.

Interest margin

The difference between the average interest on total assets and the average interest on total liabilities.

Investment margin

Net interest income in relation to average total assets.

Loan losses, net

Established and probable losses for the year less restored provisions and recoveries related to loans as well as the year’s net expense for discharging guarantees and other contingent liabilities.

Loan loss ratio

Loan losses, net, in relation to the lending opening balance (excluding repurchase agreements, credit institutions and Swedish Nat’l Debt Office) as well as loan guarantees.

Maturity

The time remaining until an asset or liability’s terms change or its maturity date.

Net asset value per share

Shareholders’ equity according to the balance sheet and the
equity portion of the difference between the book value and fair value of the assets and liabilities divided by the number of shares outstanding at year-end.

Number of employees

The number of employees at year-end, excluding long-term absences, in relation to the number of hours worked expressed in terms of full-time positions.

P/E ratio

Market capitalization at year-end in relation to Profit for the financial year allocated to shareholders.

Price/equity

The share price at year-end in relation to the closing-day equity
per share.

Provision ratio for individually identified impaired loans

Specific provisions for loans assessed individually and provisions
for homogenous groups of loans assessed collectively in relation
to impaired loans, gross.

Return on equity

Profit for the financial year allocated to shareholders in relation
to average shareholders’ equity.

Return on total assets

Profit for the financial year in relation to average total assets.

Risk-weighted amount

Total assets on the balance sheet and off-balance sheet commitments divided by credit and market risks measured and risk-weighted according to current capital adequacy regulations.

Share of impaired loans

Carrying amount of impaired loans, net, in relation to the carrying amount of loans to credit institutions and the public.

Tier 1 capital

Equity less the proposed dividend, deferred tax assets, intangible assets and certain other adjustments. Equity contributions and reserves that may be included in the capital base as tier 1 capital according to chapter 3 section 4 of the Capital Adequacy and Large Exposures Act are added as well.

Tier 1 capital ratio

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

Tier 2 capital

Fixed-term subordinated liabilities, less a certain reduction if their remaining maturity is less than five years, undated subordinated liabilities, equity contributions and reserves that may be included
in the capital base as tier 2 capital according to chapter 3 section 4
of the Capital Adequacy and Large Exposures Act.

Total provision ratio for impaired loans

All provisions for loans in relation to impaired loans, gross.

Yield

Dividend per share in relation to the share price at year-end.