SBAB's net operating income for January- September amounted to SEK 285 million

SBAB's net operating income for January- September amounted to SEK 285 million

SBAB's net operating income for the first nine months of 2007 amounted to SEK
285 million (SEK 667 million). The reduced net operating income is mainly due to
the change in value of SBAB's liquidity portfolio. The net operating income,
adjusted for the unrealised change in market value in the liquidity portfolio,
is SEK 661 million, which is in line with the corre-sponding period last year. 

”Like all other market participants who have a liquidity reserve in the form of
bonds, we have seen a reduction in the market value during the third quarter.
This is a result of the turbulence in the credit market during the period. Our
holding is long-term and we make the assessment that the change in market value
will be recovered over time”, says Eva Cederbalk, CEO.

Results
SBAB's net operating income for the first nine months of 2007 was SEK 285
million (SEK 667 million). The reduced net operating income is mainly
attributable to the change in value of SBAB's liquidity portfolio. Net interest
income was SEK 908 million (SEK 923 million). The stiff competition in the
residential mortgage market is continuing and there is a clearly falling
marginal trend. Net interest income has been positively affected by higher
interest rates which have increased income on invested equity capital and
pay-ment flows. Net operating income adjusted for unrealised changes in market
value in the liquidity portfolio amounts to SEK 661 million, which in level with
the corresponding pe-riod last year. 

During the first nine months of the year, expenses amounted to SEK 382 million
(SEK 436 million), a reduction of 12%. Compared with the corresponding period
last year, SBAB's development and staff costs have decreased. 

The SBAB group applies IFRS, International Financial Reporting Standards from 1
January 2007.

The liquidity portfolio
The purpose of SBAB's liquidity portfolio is to manage the liquidity risk. The
portfolio amounted to SEK 31.6 billion as per 30 September. The negative change
in market value amounted on the same date to SEK 376 million. The holding
consists exclusively of AAA/Aaa rated bonds and the portfolio has no exposure to
the US residential mortgage market. SBAB reports the assets at fair value and
consequently the change in market value affects the net operating income. No
losses have been realised. The holding is long-term and the assessment is made
that the changes in market value will be recov-ered over time. Since the end of
the period covered by the report, the market value of the portfolio has somewhat
recovered.

Loan portfolio and securitised loans

                  Sep 2007  Sep 2007      Dec 2006  Dec 2006
SEK billion       Total     Of which      Total     Of which 
                            securitised*            securitised*
Retail market     103.8                   103.8     
Corporate market  65.5      -**           66.2      7.4
Total             169.3     -             170.0     7.4

* Securitised loans
** repurchased in May 2007

Lending
During the first nine months of the year, new lending to the retail market was
lower than the corresponding period last year. New lending to the retail market
amounted to SEK 15,591 million (SEK 21,417 million). The retail market portfolio
now totals SEK 103,773 million, SEK 103,806 million at the turn of the year. As
before, SBAB's business partners are important distribution channels. 

New lending in the corporate market increased to SEK 7,121 million (SEK 5,516
million). The corporate market portfolio totals SEK 65,546 million, SEK 66,207
at the turn of the year. This reduction is explained by lower lending to the
municipal sector and tenant owner associations.

Savings
SBAB now offers two savings products: A savings account (Sparkonto) for both new
and existing customers with an interest rate of 3.65% as per 30 September 2007
and the SBAB account (SBAB-konto) for customers with residential mortgages of at
least SEK 1 million with an interest rate of 4.40% as per 30 September 2007.
Interest is ac-counted from the first krona regardless of the amount deposited
and withdrawals are free of charge. An account can easily be opened through
sbab.se or customer services. During the period we have seen a positive inflow
of new customers. The amount deposited as per 30 September was SEK 433 million.

Funding
During the quarter, SBAB has not experienced any difficulties in funding its
activities. The company has a well diversified funding with presence in many
different markets. SBAB has obtained both short- and long-term funding in the
usual way and has had surplus liquidity since the beginning of July. The need
for long-term borrowing for the next six months has been met at the time of
reporting. 

SBAB considers it very important to have a well-diversified funding portfolio.
This re-quires an active presence in the market and a flexible range of
products.

As at 30 September 2007, the portfolio consisted of the following: Swedish
Commercial Paper Programme SEK 23.5 billion (SEK18.2 billion), Swedish covered
bonds SEK 57.9 billion (SEK 47.0 billion), European Commercial Paper Programme
USD 1,958 million (USD 1,440 million), US Commercial Paper Programme USD 1,325
million (USD 1,813 million), Euro Medium Term Note Programme USD 7,772 million
(USD 9,292 million), Euro Medium Term Covered Note Programme EUR 5,071 million
(EUR 2,486 million). 

The total value of outstanding securities issued was SEK 200.2 billion (SEK
182.3 billion). The issuance of covered bonds is done through SBAB's
wholly-owned subsidiary The Swedish Covered Bond Corporation. The credit rating
institutes Moody's and Standard & Poor's have set a credit rating of Aaa/AAA for
the covered bonds issued.


Further information is available from:
Eva Cederbalk, CEO SBAB 
Tel: +46 8 614 43 01 
Mobile: +46 70 523 23 02, 
E-mail: eva.cederbalk@sbab.se 

Christine Brosewitz, press officer SBAB
Tel: +46 8 614 43 75
Mobile: +46 708 47 16 11
E-mail: christine.brosewitz@sbab.se