• 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

Letter from the Chair

2008 will go down in modern history as the year of financial crisis. At the time of writing, it remains uncertain how long the international recession that the crisis has turned into will last.

2008 will go down in history as a year of financial crisis. Just as the downturn came suddenly, a rebound can occur much faster than many people expect.

The exact causes of the widening crisis, which decisions should have been taken by whom and at which point in time, particularly in the U.S. and the UK early in the crisis, will be discussed well into the future.

From my perspective, I would like to add a few thoughts:

• The decision of the U.S. authorities to allow Lehman Brothers to go bankrupt quickly escalated the crisis, which reached truly global proportions.
• The EU and Sweden have demonstrated political strength and leadership in managing the crisis by introducing guarantee and rescue packages for the banking sector. This has laid the foundation for continued stability.
• The Baltic economies are undergoing a correction that is already noticeable and will prove difficult for many people. For Swedbank, it will mean higher provisions for loan losses. We are the region’s largest bank and we try to resolve the problems that arise together with our customers in a responsible manner. We have intensified risk control, and when we are forced to take over collateral, we make sure to recover as much as possible over time.
• I am convinced that the convergence of the Baltic economies with western Europe and the Nordic region will be faster than for many countries in central and eastern Europe. While prospects are bleak in the short-term, we can see positive signs. The imbalances are starting to be corrected, and inflation, current account deficits and wage
  increases are declining.
• Today’s financial sector is global, and in the same way as
  climate change, global institutions and agreements are needed to create a new, more robust framework for the financial sector.

Swedbank has been affected by the global crisis, just like the sector as a whole. A great deal of attention has been focused on Swedbank as the leading bank in its home markets. The intense media exposure last autumn raised questions about the bank and left customers concerned. We saw an outflow from savings deposits, which was re-directed to our mutual fund operations and the National Debt Office, as well as to other banks. The bank’s efforts last autumn to intensify the dialogue with employees and customers was successful. Despite the outflow and reinvestments, Swedbank had higher deposits at the year end than at the beginning of the year.

Because of concerns that the financial crisis could continue, the Board of Directors announced a rights issue in November. The successful issue for SEK 12.4 billion was finalized in January 2009 after being fully underwritten by current shareholders. By proposing that no dividend be paid to preference shares or ordinary shares for the financial year 2008, the bank further strengthens its capital base and creates greater financial strength in uncertain times.

In November, we were pleased to announce that Michael Wolf will take over as Chief Executive Officer on 1 March, succeeding Jan Lidén. During his five years as President and CEO, Jan Lidén developed Swedbank from a primarily Swedish bank to an international bank with leading positions in its home markets under a single brand. Jan Lidén has successfully delivered high profitability in various parts of the bank through his commitment to, and focus on, the business, coupled with cost controls. On behalf of the Board of Directors, I would like to express my gratitude to Jan Lidén, who, after a successful term, is retiring in accordance with his contract. At the same time, I would like to welcome the bank’s new President and CEO, Michael Wolf, who will lead and develop Swedbank into the next decade meeting the challenges we currently face.

2008 was a year that tested Swedbank’s shareholders. We feel confident thanks to our strong customer positions and the competence and commitment shown by Swedbank’s employees. We have now put 2008 behind us and are focusing all our energies on 2009, which will be needed since most indications are that it will be the most difficult year of this recession.

Stockholm, March 2009

Carl Eric Stålberg

Chairman of the Board