”The Branch is the Bank”Magnus Uggla – General Manager Handelsbanken International

Executive Vice President, Handelsbanken

Stockholm Sept 12, 2013

Handelsbanken

• A universal bank founded in 1871

• Same business model for 41 years

• Total assets 280 BEUR

• Some 800 branches in 24 countries – organic growth

• 11,000 employees

Handelsbanken’s goal

• Higher profitability than the average of banks in

Handelsbanken´s home markets.

• This goal is to be achieved by the Bank having

more satisfied customers and lower costs than

its competitors.

3

4

Handelsbanken Group

Return on shareholder’s equity 1973 – 2013:H1

Return on shareholder’s euquity after tax (1973-2008: standard tax). Adjusted for one-off items.* Comparable banks: SEB, Nordea, Swedbank and since 2003 also Danske Bank and DNB.

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013 H1

-5

0

5

10

15

20

25

30Handelsbanken Other comparable banks*%

4% 6% 8% 10% 12% 14% 16% 18%(2)%

0%

2%

4%

6%

8%

10%

12%

14%

16%

SHB

Danske

DNB

NordeaSEB

Swedbank

Barclays

BNPP

CBK

Erste

Raiffeisen

BBVA

Intesa

Unicredit

Santander

SocGen

Basel III Core Tier 1 ratio 2012A

Ro

E 2

01

2A

Handelsbanken Group

Highest RoE AND strongest capitalisation

5

Source: Company filings; SNL; FactSet as of April 25; J.P. Morgan estimates. Basel III Core Tier 1 ratio 2012A – as reported by the company or estimated by J.P. Morgan research in the instances where the companies do not report the ratio RoE 2012A: net income attributable to shareholders, divided by average shareholders’ equity. As reported in company filings

Average annual growth in equity including dividends

Handelsbanken Group

6

CAGR: 15%

Dividends reinvested in RoE per quarter

CAGR, compounded annual growth rate

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Handelsbanken Other Nordic banks*

Annual average SHB

%

Handelsbanken Group

Loan losses as a percentage of lending

Average 1998 – 2012:Handelsbanken = 0.04% Other Nordic banks* = 0.22%

Less than one fifth of the peer group’s average!

* Arithmetic mean of loan loss ratio for other listed Nordic banks: SEB, Nordea (Nordbanken), Swedbank, Danske Bank and DNB.

Annual average other Nordic

banks

7

”The branch is the bank”

Our growth model: Income/expense trend for UK branches

9

Handelsbanken Group

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 90

5

10

15

20

25

30

35

40

45

50

Income, average Costs, average

SEK m per branch

~40% of branches more than 4 years old

~60% of branches less than 4 years old

Key issues:

• Corporate culture

- risk appetite

- incentives

• Pressure from the capital markets

- equity investors

- debt investors

QUESTIONS?