UBS 11th Annual Nordic Financial Services Conference 2019-04-09 Handelsbanken Pär Boman, CEO UBS 11th Annual Nordic Financial Services Conference Grand Hotel, September 4 2008 CS 041

Handelsbanken Group Agenda Major issues addressed in the last 2.5 years Group level Growth in Branch office operations outside Sweden Swedish branch office operations Focus looking forward Current situation in the banking sector

Handelsbanken Group Issues addressed - Group level Improved transparency in external reporting Reporting by segment and geography More details to explain trends in underlying earnings More supplementary information More to come in the next 6 months

Handelsbanken Group Issues addressed - Group level Reduction of macro risk and earnings volatility Sale of SPP in September 2007 for SEK 18bn Realised gain of SEK 4.2bn Sale of credit card-backed bond portfolio in March 2008 Realised loss of SEK 0.8bn In total, these transactions resulted in a realised gain of SEK 3.4bn and in a significant reduction of market risk and earnings volatility. In addition, the sale of SPP partly facilitated the extra dividend of SEK 3.1bn in 2008 The bank’s core risk competence is to assess and assume credit default risk. All other risks should be minimised

Handelsbanken Group Issues addressed - Group level Capital structure in Basel II Our view: Limited potential for banks to reduce capital First Nordic bank to get Pillar II clearance from supervisory authorities Targeted Tier1-ratio of 9-11% in Basel II

The number of branches outside Sweden has grown Handelsbanken Group Growth in Branch office operations outside Sweden 2019-04-09 28 The number of branches outside Sweden has grown by 38% since Q2 2006 to 214 Deposits/lending in Great Britain, Denmark, Finland and Norway refers to average volumes in local currency. CS 041

Branch office operations outside Sweden Fastest growth in Great Britain The operations in Great Britain is showing a positive development and the current expansion is likely to continue

Branch office operations outside Sweden Revenues & costs – 129 branch offices opened 1995-2007 2019-04-09 SEK m per branch office CS 041

Handelsbanken Group Branch office operations in Sweden Three main areas with improvement potential were identified in 2006 Growth Productivity The use of new technology

January – June 2008 Operating profit SEK 4,840m RoE 18.3% Handelsbanken Group Branch office operations in Sweden Operating profit SEK 4,840m RoE 18.3% Net interest income increased by 10% C/I ratio before loan losses 38.7% Average volumes, bn Loans to the public 911 (819) +11% Deposits 276 (234) +18% January – June 2008

Branch office operations in Sweden Net interest margin – Variable rate household deposits 2019-04-09 SEK bn Market share, household deposits, increased from 16.0% in December 2007 to 16.6% in July 2008 2.11% +8bp 1.78% 2.03% 2003 2004 2005 2006 2007 2008 *Customer rate compared to 1 month STIBOR CS 041

2019-04-09 Handelsbanken Group Branch office operations in Sweden – Successful card business January – June 2008 The no. of Allkort up by 33%, purchase volume up 35% The no. of Business cards up by 12%, purchase volume up 14% The no. of Frikort cards up by 45% No. of cards Diagrammen avser Allkort Företagskort (numer Businesskort Frikort I stocken med start Q 1 2005. Frikortet lanserades den 16 oktober 2006. CS 041

Branch office operations in Sweden Turnaround in Swedish mortgage sales

Branch office operations in Sweden Productivity is improving, with more to come Target 2006: 50% increase in time spent with customers by 2010 Result April 2008: +34% The impact from recent system launches not yet in the figures Profit / employee +5% in H1 2008 Despite C/I-ratio of 38.7% in H1, there is still scope for further improvement

The bank is currently running 35,000 clients in a full scale Branch office operations in Sweden Improved productivity through new technology Internet Telephone Branch office The bank is currently running 35,000 clients in a full scale test of a fully integrated internet and telephone bank

Handelsbanken Group Focus going forward Continue the organic international expansion with focus on the UK Increased efforts towards Swedish large caps Additional measures to increase market share in the savings area

Handelsbanken Group The current banking environment Not likely to ease in the near term Significant liquidity risks in the market but poor transparency The environment could get worse before it improves Prudent liquidity planning will be key

Handelsbanken Group Prolonged funding since early 2007

Handelsbanken Group Cash flow planning 30 days Existing cash should last for at least 30 days without any access to the funding markets 90 days Existing cash + liquidity portfolio should last for 90 days without any access to the funding markets 360 days Existing cash + liquidity portfolio + management actions should provide enough liquidity to continue the bank’s business for >360 days without any access to the funding markets The bank’s liquidity planning and funding activity aims at fulfilling the 30/90/360 day definitions at all times

2019-04-09 Handelsbanken Group Net lending in SEK in the Swedish interbank market January – June 2008, weekly SEK m CS 041

Handelsbanken Group Bad debts as a percentage of lending ,net* Bad debt asdasgsagasgg Increase related to the same commitments that explain loan losses in the period * Bad debts, net = Bed debts, gross – specific reserve. (Not adjusted for collective reserve). ** Average Nordea, SEB and Swedbank.

Handelsbanken