SBAB's net operating income for 2004 amounted to SEK 678 million (SEK 721 million).

Monday, 31. January 2005 17:00

Net operating income for the fourth quarter
Net operating income amounted to SEK 131 million for the fourth
quarter of 2004, SEK 36 million lower than the corresponding period

Net interest income amounted to SEK 281 million, SEK 32 million lower
than the corresponding period in 2003. Valuation and accrual
accounting techniques has been developed in conjunction with the
transition to a new support system for financial operations. This has
resulted in a SEK 20 million charge to the accounts for the last
quarter. Expenses amounted to SEK 136 million, a reduction of SEK 4
million compared to the corresponding period the previous year. Net
loan losses amounted to SEK 0.4 million.

Net operating income for the full year 2004
Net operating income for 2004 amounted to SEK 678 million (SEK 721
million), 6 per cent lower than the result for 2003. This was due to
the aforementioned adjustment, increased expenses as well as the
yield effect on flows and equity capital dropping as a result of
lower market interest rates.

Loan portfolio and securitised loans, SEK billion

Dec 2004 Dec 2003
Total of which Total of which
securitised loans securitised
Retail market 76.7 15.8 62.3 16.1
Property-company 79.4 9.4 89.5 9.9
Total 156.1 25.2 151.8 26.0

The loan portfolio amounted to SEK 130 907 million (SEK 125 772
million) at the end of the year with an additional SEK 25 153 million
(SEK 26 042 million) in SBAB securitised loans.

SBAB's lending to the retail market increased during 2004 with new
lending for the period amounting to SEK 24 086 million (SEK 16 594
million). Lending occurs predominately via Internet.

New lending to the property-company market amounted to SEK 4 481
million (SEK 5 294 million).
Of SBAB's own loan portfolio, the retail market portfolio accounts
for SEK 60 942 million (SEK 46 179 million) and the property-company
market portfolio for SEK 69 965 million (SEK 79 593 million). The
reduction in the property-company market portfolio is due to a
reduction in lending to municipal property companies combined with
the discontinuation of non-strategic commitments.

Long-term funding for 2004 amounted to SEK 43 321 million (SEK 54 057
million) of which SEK 21 698 million (SEK 35 195 million) was raised
in the international market and the rest SEK 21 623 million (SEK 18
862 million) in the domestic bond market. Short-term debt, defined as
short-term on the issue date, totalled SEK 34 717 million (SEK 31 904

Total expenses have increased and amounted to SEK 505 million (SEK
481 million). The increase has been occasioned by larger investments
in development projects and marketing as well as higher depreciation
costs when compared to the previous year.
Doubtful loan receivables and provisions
Doubtful loan receivables have been reduced since the start of 2004
from SEK 220 million to SEK 214 million. The provision ratio
regarding specific provisions for individually assessed loan
receivables amounted to 55 % (54 %). At the end of 2004 total
provisions amounted to SEK 281 million (SEK 307 million), of which
collective provisions for individually assessed loan receivables
amounted to SEK 144 million (SEK 170 million).
Capital adequacy
At the end of 2004, the capital adequacy ratio was 10.0 % (10.2 %),
the primary capital ratio was 8.4 % (8.4 %) and SBAB's capital base
amounted to SEK 6 386 million (SEK 6 015 million).

Prospects for 2005
The strategy is to maintain focus on the retail market and
tenant-owner co-operatives. The overall strategy is for SBAB to be
the leading housing mortgage company. Achieving the expected increase
in the loan portfolio during 2005 requires high levels of activity in
the market, low market interest rates and continued tight margins.
The result for 2005 is expected to be in line with the result for

Annual General Meeting
SBAB's Annual General Meeting open to the public will be held in
Stockholm on Wednesday, 13th April 2005.

Announcement of SBAB's result for 2004 is attached (4 pgs.).
View document
Questions will be answered by
Eva Cederbalk, Chief Executive Officer, tel. +46 8 614 43 01 or +46
70 523 23 02
Lena Hedlund, Chief Communication Officer, tel. +46 8 614 38 49 or
+46 70 858 07 25
Per Balazsi, Chief Financial Controller tel. +46 8 614 43 24 or +46
73 368 43 24

SBAB, the independent housing mortgage company, contributes
efficiently and profitably to competition and choice in the Swedish
housing mortgage market. We are the foremost challenger in the
housing mortgage market, with approximately 10 000 customers and a
market share of 16.5 per cent in the property-company market and with
around 240 000 customers and a market share of 8.35 per cent in the
retail market. SBAB offers loans via Internet and telephone.
Over 50 per cent of our retail customers apply for loans via
Internet, which helps SBAB to offer one of the lowest housing
mortgage interest rates in the market.
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