1. UBS 11th Annual Nordic Financial Services Conference
Handelsbanken
Pär Boman, CEO
UBS 11th Annual Nordic Financial Services Conference
Grand Hotel, September
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2. 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

3. 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

4. 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

5. 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

6. The number of branches outside Sweden has grown
Handelsbanken Group Growth in Branch office operations outside Sweden 28
The number of branches outside Sweden has grown
by 38% since Q to 214
Deposits/lending in Great Britain, Denmark, Finland and Norway refers to average volumes in local currency.
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7. 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

8. Branch office operations outside Sweden Revenues & costs – 129 branch offices opened 1995-2007
SEK m per
branch office
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9. Handelsbanken Group Branch office operations in Sweden
Three main areas with improvement potential were identified in 2006
Growth
Productivity
The use of new technology

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

11. Branch office operations in Sweden Net interest margin – Variable rate household deposits
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
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12.
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
Frikortet lanserades den 16 oktober 2006.
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13. Branch office operations in Sweden Turnaround in Swedish mortgage sales

14. 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

15. 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

16. 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

17. 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

18. Handelsbanken Group Prolonged funding since early 2007

19. 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

20.
Handelsbanken Group Net lending in SEK in the Swedish interbank market January – June 2008, weekly
SEK m
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21. 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.

22. Handelsbanken