HandelsbankenJanuary – December 2008

10 February 2009

2

Handelsbanken Group

SummaryQ4 2008 compared with Q3 2008

Operating profits rose by 39% to SEK 5,216m and by 20% excluding capital gains

Net interest income went up by 13% to SEK 5,474m

Inflow of household deposits +7%, loans to the public increased by 63bn

The Bank had 52% of new loans to Swedish companies and acquired 3,061 new corporate customers during the quarter

Good reputation in the funding market led to low funding costs

Liquidity reserves of more than SEK 300bn

Continued high level of cost-effectiveness in the Swedish branch operations

The Bank issued risk-bearing Tier I capital loans for SEK 2.6bn

Tier I capital ratio calculated according to Basel II rose to 10.5% and return on equity was 23.8%

3

Handelsbanken Group

Summary

January-December 2008 compared with January-December 2007

Operating profits went up by 4% to SEK 15,326m

Income grew more rapidly than expenses

Net interest income rose by 23% to SEK 19,223m

Liquidity was good throughout the period

Record inflow of household deposits, 19%, lending increased by 15%

The number of satisfied customers continued to increase

The board proposes an ordinary dividend of SEK 7.00 per share (8.50)

4

Q4 Q3 ChangeSEK m 2008 2008 %

Net interest income 5,474 4,856Net fee and commission income 1,694 1,656Net gains/losses on financial items at fair value 2,229 483Risk result - insurance 50 55Other income 65 74 Total income 9,512 7,124Staff costs -2,170 -2,015Other expenses -1,430 -1,118Total expenses -3,600 -3,133Profit before loan losses 5,912 3,991Loan losses, net -696 -231Disposal prop. equipmt./ intang. assets 0 -2Operating profit 5,216 3,758 39

Handelsbanken Group

Income statement, Q4 2008 compared to Q3 2008

5

Q4 2008

Q32008

Jan-Dec 2008

RoE total operations, actual tax 24.0% 15.4% 16.2%

RoE total operations, after standard tax 20.0% 15.1% 15.0%

C/I-ratio, before loan losses continuing operations 37.8% 44.0% 44.3%

Earnings per share total operations, SEK 7.31 4.51 19.46

Capital ratio, Basel II 16.0% 15.2% 16.0%

Tier I ratio, Basel II 10.5% 10.0% 10.5%

Change Q4 Tier I ratio, SEK m 5,074

Handelsbanken Group

Key ratios

6

0

1 000

2 000

3 000

4 000

5 000

6 000

Q1 -98

Q3 -98

Q1 -99

Q3 -99

Q1 -00

Q3 -00

Q1 -01

Q3 -01

Q1 -02

Q3 -02

Q1 -03

Q3 -03

Q1 -04

Q3 -04

Q1 -05

Q3 -05

Q1 -06

Q3 -06

Q1 -07

Q3 -07

Q1 -08

Q3 -08

SEK m

Handelsbanken Group

Net interest income, quarterly

From 2004 according to IFRS

7

Average volumes, SEK bn

Q 42008

Change Q3 2008

Change Q4 2007

Branch offices in Sweden

Private 157 7% 22%

Corporate 146 7% 16%

Total 303 7% 19%

Branch offices outside Sweden

Private 41 8% 24%

Corporate 116 12% 7%

Total 157 11% 11%

Other operations 47 -14% -42%

Total 507 6% 6%

Handelsbanken Group

Deposits from the public

8

Handelsbanken Group

Loans to the public

Average volumes, SEK bn

Q42008

ChangeQ3 2008

ChangeQ4 2007

Branch offices in Sweden

Private 472 2% 10%

of which mortgage loans 413 2% 10%

Corporate 488 3% 10%

Total 960 2% 10%

Branch offices outside Sweden

Private 131 8% 21%

Corporate 358 10% 42%

Total 489 9% 36%

Other operations 13 -1% -30%

Total 1,462* 5%* 16%

* Of which currency effect SEK 18.4bn, excl currency effects volume increases by 3%

9

SEK m Q4 Q3 Change %

Brokerage 453 343 32

Mutual funds and custody 317 376 -16

Advisory services 49 58 -16

Insurance 122 125 -2

Payments 564 586 -4

Lending & deposits 248 238 4

Guarantees 124 106 18

Other 126 127 -1

Commission expenses -309 -303 2

Total 1,694 1,656 2

Handelsbanken Group

Fees and commissions, Q4 2008 compared to Q3 2008

10

Handelsbanken Group

Net gains/losses on financial items at fair value

-1 500

-1 000

-500

0

500

1 000

1 500

2 000

2 500

3 000

Q4 Q1 Q2 Q3 Q4

Trading* Stapel 2Available for sale OtherLiquidity portfolio

20082008 2008

SEK m

2008

523

-177

2007

634 483

2229

*Incl fair value option

11

Handelsbanken Group

Expenses, January – December

SEK m 2008 2007ChangeSEK m

Change%

Staff costs -8,114 -7,528 586 7.8

Other expenses -4,688 -4,487 201 4.5

Depreciation -427 -353 74 21

Total expenses -13,229 -12,368 861 7.0

%-points

Expenses outside Sweden 850 6.9

Expenses in Sweden 11 0.1

861 7.0

12

Handelsbanken Group

Expenses, Q4 2008 compared to Q4 2007

SEK m 2008

Q 42007

Q 4ChangeSEK m

Change %

Staff costs -2,170 -1,995 175 8.8

Other expenses -1,309 -1,279 30 2.3

Depreciation -121 -75 46 61.3

Total expenses -3,600 -3,349 251 7.5

%-points

Expenses outside Sweden 270 8.1

Expenses Sweden -19 -0.6

of which IAS19 105 3.1

of which other -124 -3.7

251 7.5

13

Handelsbanken Group

Bad debt and loan losses as a percentage of lending

Proportion of bad debts, net, % Loan loss ratio, %

-0,2

0,0

0,2

0,4

0,6

0,8

1,0

1,2

-98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08-0,2

0,0

0,2

0,4

0,6

0,8

1,0

1,2

14

Handelsbanken Group

Branch office operations in Sweden

Operating profit SEK 9,944m

RoE 19.9%

Income increased by 7%

Net interest income increased by 17%

C/I ratio before loan losses 37.7%

Number of branch offices 461

Average number of employees 4,681

Average volumes, bn

Loans 930

Deposits 284

January – December 2008

15

Handelsbanken Group

Change in private deposits in Sweden 2008, quarterly

-5 000 0 5 000 10 000 15 000

Q1

Q2

Q3

Q4

Account deposits Net savings mutual funds

SEK m

Account deposits, change in average balanceMutual fund savings, deposits minus withdrawals during the quarter in funds managed by Handelsbanken Fonder AB

Market share deposits

17.7%

17.1%

16.6%

16.2%

16.0 % in Dec. 2007

16

Handelsbanken Group

New corporate customers in Sweden 2008, quarterly

107

1 620

3 061

836

-

500

1 000

1 500

2 000

2 500

3 000

3 500

Q1 2008 Q2 2008 Q3 2008 Q4 2008

Two thirds of new corporate customers were acquired in Q4

17

Handelsbanken Group

Direct loans to corporates in Sweden, Q4 2008

Source: Statistics SwedenRefers to bank and mortgage loans to non-financial companies in Sweden

Other banks+SEK 10.9bn

Handelsbanken+SEK 11.6bn

In Q4, total bank lending to companies in Sweden increased by SEK 22.5bn

52% 48%

18

Increased time with customers

100120

134 140

0

25

50

75

100

125

150

2006 2007 Spring 2008 Autumn 2008

Handelsbanken Group

Branch operations in Sweden – more time for meeting customers

Source: Frequency measurements and information on number of available staff 2006-2008, Swedish branch operations

Average time spent meetingcustomers has increased by 40% since 2006

Total productivityimprovement of 8%

Freed up time equivalent to 250 full-time employees

C/I ratio in Q4 was 35.4%

Index 2006=100

19

Handelsbanken Group

Branch offices in Sweden – Profit per employee

2008

2006

Profit before loan losses, SEK m 10,778 9,633

Average number of employees 4,681 4,500

Profit per employee, SEK thous. 2,302 2,141

Profit per employee increased by 8% or SEK164 thous. in 2008

20

Operating profit SEK 2,264m

RoE 8,3%

-excl. operating deficit 9,8%

Total income increased by 22%

Net interest income increased by 33%

C/I ratio 59.0%

Number of branch offices 241

Average number of employees 2,785

Average volumes, bn

Loans 433

Deposits 144

January – December 2008

Handelsbanken Group

Branch office operations outside Sweden

21

Average volumes Jan-Dec

2008Jan-Dec

2007Change

%

Denmark, DKK bn 34.5 29.6 17

Finland, EUR m 9,857 8,430 17

Norway, NOK bn 143.8 112.8 27

Great Britain, GBP m 4,812 3,497 38

Rest of the world, SEK bn 68 38 80

Handelsbanken Group

Lending outside Sweden

* Lokalbanken included from 21 October 2008

22

0100200300400500600700800900

1 0001 1001 2001 3001 4001 5001 6001 700

Q1 04

Q2 04

Q3 04

Q4 04

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

100

120

140

160

180

200

220

Branch offices outside Sweden Number of branch offices within regional banks outside Sweden

SEK m No

Handelsbanken Group

Net interest income outside Sweden, quarterly

*Lokalbanken’s 14 branch offices, included from 21 October 2008

23

0

5

10

15

20

25

30

35

40

45

Y 0 Y 1 Y 2 Y 3 Y 4 Y 5 Y 6 Y 7 Y 8 Y 9 Y 10 Y 11 Y 120

5

10

15

20

25

30

35Branch offices Total income Total expenses

Handelsbanken Group - Regional banks outside Sweden

Income and expenses trend – 147 branches opened 1995-2008

Number of branchoffices, Dec 2008

Average per branch, SEK m*

* Refers to figures for 2000 - 2008

24

0

10 000

20 000

30 000

40 000

50 000

60 000

v 01 v 04 v 07 v 10 v 13 v 16 v 19 v 22 v 25 v 28 v 31 v 34 v 37 v 40 v 43 v 46 v 49 v 52

SEK m

Handelsbanken Group

Net lending in SEK in the Swedish interbank market28 January 2008 – 31 December 2008, weekly

Proportion of bond funding has increased from 29% to 33% since January 2007

At year-end, liquidity reserves of over SEK 300 bn

25

Handelsbanken Group

Summary of the fourth quarter

Highest quarterly result ever

Increase in volumes and good funding position led to higher net interest income

Liquidity reserves of more than SEK 300bn

Tier 1 ratio increased to 10,5% according to Basel II

SEK 2.6bn in new Tier 1 capital loans

Record high increase in lending volume and household deposits and strong inflow of deposits from credit institutions

Loan loss ratio increased to 0.11% during 2008

Return on equity in continuing operations was 23.8% and excluding capital gains it was 20.0%

26

Handelsbanken Group

Dividend

2007 2008Per share, SEK ordinary 8.50 7,00

Per share, SEK additional 5.00

Number of shares class A and B 623.4 623.5

Change, % ordinary dividend 6.3 -17.6

Dividend, SEK m

Class A and B 8,416 4,364

Profit per share, 24.84 19.46

Profit per share, continuing operations 17.39 19.16

Dividend as % of profit per share 54.3 36.0

27

Appendix

28

Q4 Q3 Q2 Q1 Q4SEK m 2008 2008 2008 2008 2007

Net interest income 5,474 4,856 4,494 4,399 4,010Net fee and commission income 1,694 1,656 1,706 1,739 1,956Net gains/losses on financial items at fair value 2,229 483 634 -177 523Risk result - insurance 50 55 71 39 10Other income 65 74 294 55 117Total income 9,512 7,124 7,199 6,055 6,616Staff costs -2,170 -2,015 -1,946 -1,983 -1,995Other expenses -1,430 -1,118 -1,249 -1,318 -1,354Total expenses -3,600 -3,133 -3,195 -3,301 -3,349Profit before loan losses 5,912 3,991 4,004 2,754 3,267Loan losses, net -696 -231 -571 -107 -166Disposal prop. equipmt./ intang. assets 0 -2 0 272 0Operating profit, continuing operations 5,216 3,758 3,433 2,919 3,101Operating profit, discontinued operations 61 70 68 61 177Net gain from disposal of discontinued op. 4,082Operating profit, incl. discont. op. 5,277 3,828 3,501 2,980 7,360

Handelsbanken Group

Income statement, five quarters

29

ChangeSEK m 2008 2007 %

Net interest income 19,223 15,608 23Net fee and commission income 6,795 7,745 -12Net gains/losses on financial items at fair value 3,169 3,045 4Risk result - insurance 215 151 42Other income 488 568 -14Total income 29,890 27,126 10Staff costs -8,114 -7,528 8Other expenses -5,115 -4,840 6Total expenses -13,229 -12,368 7Profit before loan losses 16,661 14,758 13Loan losses, net -1,605 -27Disposal prop. equipmt./ intang. assets 270 1Discontinued operations 260 4,651 -94Operating profit, incl. discont. op. 15,586 19,383 -20

Handelsbanken Group

Income statement, January – December

30

Handelsbanken Group

Loan loss as a percentage of lending

-0,10

-0,05

0,00

0,05

0,10

0,15

0,20

0,25

2003 2004 2005 2006 2007 2008

Handelsbanken Other Swedish banks%

* Only SEB updated with year-end figures, other Swedish banks as at 30 September

31

Handelsbanken Group

Change in net interest income, Q4 2008 compared to Q3 2008

SEK m

Net interest income Q3 2008 4,856

Deposits SEK - margin -266

- volume 82

Lending SEK - margin 236

- volume 37

Volume & margin branch offices outside Sweden 149

Other 380Change in net interest income 618

Net interest income Q4 2008 5,474 12.7%

3M STIBOR ref.rate in the respective quarter.

32

SEK m 2008

compared to 2007

Deposit SEK - margin 161

- volume 731

Lending SEK - margin -215

- volume 533

Volume & margin branch offices outside Sweden 1,387

Other * 1,122

Change in net interest income ex IFRS effects 3,719IFRS effect repurchased bonds -104

Change in net interest income 3,615-

Handelsbanken Group

Change in net interest income, January - December

Ref. rate from 2007 incl. to Q2 2008 incl, 1M STIBOR and in Q3-4, 3M STIBOR has been used

33

SEK m 2005 2006 2007 2008 2009 Total

Q1 191 134 36 -15 4

Q2 185 41 36 -12 5

Q3 153 42 27 3 5

Q4 152 41 -15 4 4

Total 681 258 84 -20 18 1 021

Handelsbanken Group

Effect of repurchased bonds

34

SEK m 2008 2007 Change %

Brokerage 1,676 2,151 -22

Mutual funds and custody 1,559 2,040 -24

Advisory services 192 432 -56

Insurance 520 531 -2

Payments 2,257 2,153 5

Lending & deposits 894 831 8

Guarantees 430 394 9

Other 502 511 -2

Commission expenses -1,235 -1,298 -5

Total 6,795 7,745 -12

Handelsbanken Group

Fees and commissions, January – December

35

Handelsbanken Group

Equity-related commissions, January – December

SEK m

2008 2007 Change %

Brokerage 1,640 2,112 -22

Mutual funds and custody 1,449 1,922 -25

Corporate finance 192 432 -56

Commission expenses -257 -288 -11

Total 3,024 4,178 -28

36

Handelsbanken Group

Oktogonen quarterly 2004 - 2008

-300

-200

-100

0

100

200

300

Q1 200

4Q2 2

004

Q3 200

4Q4 2

004

Q1 200

5Q2 2

005

Q3 200

5Q4 2

005

Q1 200

6Q2 2

006

Q3 200

6Q3 2

006

Q1 200

7Q2 2

007

Q3 200

7Q4 2

007

Q1 200

8Q2 2

008

Q3 200

8Q4 2

008

Expense Adjust for previous yr

SEK m

37

Handelsbanken Group

Expenses, Q4 2008 compared to Q3 2008

SEK m 2008

Q 42008

Q 3Change

SEKmChange

%

Staff costs -2,170 -2,015 155 7.7

Other expenses -1,309 -1,011 298 29.5

Depreciation -121 -107 14 13.1

Total expenses -3 600 -3 133 467 14.9

%-points

Expenses outside Sweden 176 5.6

of which FX-effect 91 2.9

of which Oktogonen 60 1.9

of which other 25 0.8

Expenses Sweden 291 9.3

of which non-recurring costs 107 3.4

of which other 184 5.9

467 14.9

38

Corporation tax on the profit for banking operations

No tax on the administration result and the risk result in the insurance operations, except for

outright risk insurance

The yield split has already been taxed

Corporation tax on yield on shareholders’ equity in the insurance operations

Effective tax burden January-December was 22.1% (26.3% excl SPP sales) and Q4 2008 13.5%

(Q3 26.6% Q 27.7%)

The lower tax rate for 2008 is due to

Profit on sale of property and shares in NCSD AB is not taxed

Changed corporation tax rate from 2009 affects the deferred taxes

Handelsbanken Group

Effective tax burden

39

ChangeSEK bn 2008 2007 %

Loans to the public 1,481 1,293 15Loans to credit institutions 165 185 -11Interest-bearing securities 166 176 -6Other assets 347 205 69

Total assets 2,159 1,859 16

Deposits and borrowing from the public 544 513 6Due to credit institutions 319 293 9Issued securities 896 706 27Other liabilities 325 273 19Shareholders’ equity 75 74 1

Total liabilities and equity 2,159 1,859 16

Handelsbanken Group

Balance sheet, 30 December

40

Average volumes Q4 Q3 Q2 Q1 Q4SEK bn 2008 2008 2008 2008 2007

Branch offices in Sweden 960 938 921 903 876

Branch offices outside Sweden 489 447 410 387 360Private 131 121 115 108 108

Corporate 358 326 295 252 252

Other operations 13 14 15 20 20

Total 1,462 1,399 1,346 1,310 1,256Private 602 568 568 554 539

Corporate 860 813 778 756 717

Handelsbanken Group

Loans to the public, quarterly

41

20%

21%

22%

23%

24%

25%

26%

27%

28%

29%

30%

jan-07 apr-07 jul-07 okt-07 jan-08 apr-08 jul-08 okt-08

Market share, Lending to non-financial companies in Sweden

Handelsbanken Group

Market shares in Sweden, Jan 2007 – Dec 2008

Source: SCB (Statistics Sweden)

29.0%

26.1%

42

Handelsbanken Group

Deposits from the public, quarterly

Average volumes Q4 Q3 Q2 Q1 Q4SEK bn 2008 2008 2008 2008 2007

Branch offices in Sweden 303 283 278 273 256 Private 157 147 141 135 130 Corporate 146 136 137 138 126

Branch offices outside Sweden 157 142 139 140 141 Private 41 38 37 34 33 Corporate 116 104 102 106 108 Other operations 47 54 62 81 81

Total 507 479 479 494 478 Private 199 185 177 169 163 Corporate 308 394 302 325 315

43

Average volumes Q4 Q3 Q2 Q1 Q4SEK bn 2008 2008 2008 2008 2007

Mortgage loans 563 552 540 529 518 Private 413 406 396 386 375 Corporate 150 146 144 143 143

Bank loans 396 385 380 374 358 Private 58 59 57 56 55 Corporate 338 327 323 318 303

Total Branch offices in Sweden 960 938 921 903 876 Private 472 465 454 442 424 Corporate 488 473 467 461 452

Handelsbanken Group

Loans to the public – Branch offices in Sweden, quarterly

44

SEK m 31 Dec

2008 2007 2006 2005 2004 2003

Conditional bonus 3,327 4,824 5,713 4,874 3,552 3,248

% of total insurance assets 12.8 18.0 21.7 20.3 16.7 16.7

Handelsbanken Group

Conditional bonus* in relation to total insurance assets

* Refers to conditional bonus from a customer perspective