Handelsbanken

Investor Presentation May 26 – 29, 2009 Contents

1. Executive Summary

2. Overview of Handelsbanken Group

3. Group Financial Highlights

4. Capital and Credit Ratings

5. Credit Quality

6. Branch Office Operations

7. Group Funding Strategy

8. The Swedish Economy

Appendix

2 Handelsbanken 1. Executive Summary

3 Handelsbanken Handelsbanken Group Executive Summary

„ Leading universal Swedish bank with a history of strong performance and shareholder returns

„ Highly cost effective with one of the lowest cost/income ratios in Europe

Main Features „ Strong asset quality with low provisioning ratio

„ More satisfied customers than our competitors

„ Strong capitalisation with a Basel II Tier 1 ratio of 11.6% at March 31, 2009

„ Decentralisation - The branch is the Bank

Strategy „ Organic growth coupled with add-on acquisitions

„ Corporate goal – Higher return on equity than a weighted average of comparable listed Nordic and British banks, reached for 37 consecutive years, achieved through better service and lower costs than peers

„ Strong credit rating: Aa1 / AA- / AA- from Moody’s / S&P / Fitch, with stable outlook confirmed by all three rating agencies Rating „ “The ratings on Handelsbanken reflect the bank’s conservative strategy, its strong asset quality and conservative capital policy, its leading market position in Sweden, and excellent cost efficiency” (Standard & Poors, Svenska Handelsbanken, November 3, 2008)

4 Handelsbanken 2. Overview of Handelsbanken Group

5 Handelsbanken Handelsbanken Group

„ Universal bank established 1871, headquartered in Stockholm

„ The oldest listed company on the stock exchange in Stockholm

„ Total assets: SEK 2,159 bn (USD 275 bn)

„ Lending to general public: > SEK 1,400 bn

„ Operating profit 2008: SEK 15.3 bn (USD 1.95 bn)

„ Total staff: 11,000

„ 16 % RoE (Full year 2008)

„ 461 branches in Sweden and 147 in the other Nordic countries, 56 in Great Britain and 38 branches in other countries

6 Handelsbanken Business model

Decentralisation Non-negotiable

„ Credit policy No central No bonus „ Business control system marketing „ Responsibility and Accountability

Customer

The branch No budget is the bank

7 Handelsbanken Handelsbanken Group Our business model

„ Focus on the customer, not on products

„ Customer service is key and focus on what the customer needs, not on what products we have

„ Decentralisation Æ “The branch is the bank”

„ The branches are responsible for ALL customers, private as well as corporate and for a transaction to be approved the branch has to approve. Meet and know your client locally.

„ No budgets

„ “Quick feet” instead of long range planning

„ Focus on profitability, not on volumes

„ Not a mass market bank

„ We focus on households and corporates with a better cash flow than average

„ Low risk tolerance - macro risks should be minimised

„ The only risk we really like is the ultimate credit default risk

„ Grow our own people

8 Handelsbanken Handelsbanken Group Our Home Market

Six regional banks in Sweden with universal banking operations, two in Great Britain and one regional bank in Norway, Finland and Denmark

Umeå.

Gävle . Helsingfors Oslo. . . Stockholm .Linköping Branch Office Operations .Göteborg „ Customer responsibility for all companies and private individuals Köpenhamn . .Malmö „ Strong local presence and decentralised . Manchester way of working

„ High level of cost effectiveness

„ 7,550 employees of whom 3,000 outside Sweden London.

9 Handelsbanken 3. Group Financial Highlights

10 Handelsbanken Handelsbanken Group Summary

Q1 2009 compared with Q1 2008

„ Operating profit increased by 30% to SEK 3,806m

„ Return on equity went up to 13.8%

„ Net interest income rose by 23% to SEK 5,393m

„ C/I ratio, continuing operations, decreased to 43.9%

„ Average lending volume increased by 15%

„ Household deposits up by 23%

„ Capital ratio increased to 16.7%

„ Tier 1 ratio according to Basel II rose to 11.6%

„ Liquidity reserve currently more than SEK 400bn

11 Handelsbanken Handelsbanken Group Net interest income, quarterly

SEK m 6 000

5 000

4 000

3 000

2 000

1 000

0 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 Q1 -09

From 2004 according to IFRS 12 Handelsbanken Handelsbanken Group Net gains/losses on financial items at fair value

Trading* Column 2 SEK m Available for sale, realised Other Liquidity portfolio 3 000 Access to US funding market resulted 2 500 in funding related gains

2 000

1 500

2 229 1 000 1362 1 141 500 754 634 415 523 483

0 -177

-500

-1 000

-1 500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2007 2007 2007 2008 2008 2008 2008 2009 * Incl fair value option. 13 Handelsbanken 4. Capital and Credit Ratings

14 Handelsbanken Handelsbanken Group Key ratios

Q1 Q1

2009 2008

RoE total operations, after actual tax 13.8% 12.3% RoE total operations, after standard tax 14.1% 11.5%

C/I-ratio, before loan losses continuing 43.9% 54.5% operations

Earnings per share total operations, SEK 4.43 3.68 moving 12 months 20.22 24.08

Capital ratio, Basel II 16.7% 16.2% Tier I ratio, Basel II 11.6% 10.5% Change Q1 Tier I ratio, SEK m 5,532 Change Q1 Shareholder’s equity, SEK m 2,971

Tier 1 ratio, Basel II target 9 – 11 %

15 Handelsbanken Handelsbanken Group Credit Ratings

MOODY´S Standard&Poor's FITCH

Financial Long Short Long Short Long Short As at April 16, 2009 Strength* Term Term Term Term Term Term Handelsbanken B Aa1 P-1 AA- A-1+ AA- F1+ SEB C- A1 P-1 A A-1 A+ F1 Nordea B Aa1 P-1 AA- A-1+ AA- F1+ Swedbank C- A1 P-1 A A-1 A F1 Danske Bank C Aa3 P-1 A+ A-1 A+ F1+ DnB NOR Bank B- Aa1 P-1 AA- A-1+ A+ F1

* Bank Financial Strength Rating (BFSR).

...the ratings on Svenska Handelsbanken (Handelsbanken) reflect the bank’s conservative strategy, its strong asset quality and conservative capital policy, its leading market position in Sweden, and excellent cost efficiency. (S&P)

…the rating reflects Handelsbanken’s strong universal banking franchise as one of the leading Swedish banks with a strong market share in lending, mortgages, deposits and savings in Sweden and also with meaningful franchises in the other Nordic countries and in the UK. (Moody’s)

…the ratings of Svenska Handelsbanken reflect its strong domestic franchise, solid track record, high operating efficiency and good asset quality. (Fitch)

16 Handelsbanken Handelsbanken Group Illustration – Financial Strength

Assets Liabilities

Rating Long-term Short-term Moody’s Aa1 P-1 S&P AA- A-1+ Fitch AA- F1+

Lending etc. Senior funding, deposits etc.

Liquidity reserve >400 SEK bn

Capital base 16.7%

17 Handelsbanken 5. Credit Quality

18 Handelsbanken Handelsbanken Group Credit policy

„ The credit policy is the same in all markets and over the business cycle

„ Credit responsibility

„ Credit responsibility always at branch level

„ Customer and credit responsibility closely related

„ The branch holds full economic responsibility for granting the credit

„ If necessary, the branch obtains support from the regional head office and central credit department

„ Basic guidelines

„ The assessment starts with the borrower’s repayment capacity

„ Weak repayment capacity can never be offset by collateral or high margins

„ Quality requirements must never be neglected in favour of large volume

„ Credits must normally be adequately secured

19 Handelsbanken Handelsbanken Group

Loans to the public by sector as of March 31, 2009

Total loans to the public SEK 1.518 bn (USD 193bn) Households

Property management

Housing co-operative associations

Shipping and ferry services

38% Holding, investment, insurance 23% companies, mutual funds etc Retail

Manufacturing 6% 4% Other transport and communication 6% 1% 5% 3% 10% Construction 1% 1% Governments and municipalities 2% Other corporate lending

Other

Exposure to the Baltic region 0.01% of total lending

20 Handelsbanken Handelsbanken Group Loan losses as a percentage of lending

Handelsbanken Other Swedish banks % 1,75.

1,50.

1,25.

1,00.

0,75.

0,50.

0,25.

0,00.

-0,25. 1994 1997 2000 2003 2006 2009

21 Handelsbanken Handelsbanken Group Bad debts and loan losses as a percentage of lending

Proportion of bad debts, net Loan loss ratio % % 1,0. 1,0.

0,8. 0,8.

0,6. 0,6.

0,4. 0,4.

0,2. 0,2.

0,0. 0,0.

-0,2. -0,2. -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09

22 6. Branch Office Operations

23 Handelsbanken Handelsbanken Group Branch office operations in Sweden

January – March 2009

„ Operating profit SEK 2,312m

„ RoE 17.8%

„ Income increased by 9%

„ Net interest income increased by 13%

„ C/I ratio before loan losses 36.0%

„ Number of branch offices 461

„ Average number of employees 4,536

Average volumes, SEK bn

„ Loans 970

„ Deposits 314

24 Handelsbanken Group Market shares in Sweden, Jan 2007 – Jan 2009

Lending to non-financial companies in Sweden Deposits from households in Sweden 17.9% . 30% 18,0% 29% 29.0% . 28% 17,5% 27% 27.0% .

26% 26.1% 17,0% . 25% 16,5% 24% . 23% 15.7% 16.0% 16,0% 22% . 21% 15,5% 20% . 15,0% jan-07 apr-07 jul-07 oct-07 jan-08 apr-08 jul-08 oct-08 jan-09 Source: Statistics Sweden (www.scb.se) 25 Handelsbanken Handelsbanken Group Branch office operations outside Sweden

January – March 2009

„ Operating profit SEK 667m

„ RoE 7.5% - excl. operating deficit 8.9%

„ Total income increased by 32%

„ Net interest income increased by 37%

„ C/I ratio 55%

„ Number of branch offices 245

„ Average number of employees 3,023

Average volumes, SEK bn

„ Loans 520

„ Deposits 168

26 Handelsbanken Group - Regional banks outside Sweden Income and expenses trend – 151 branches opened 1995-2009

Average per branch, Number of branch SEK m* offices, March 2009

Branch offices Total income Total expenses 45 35 40 30 35 25 30 25 20

20 15 15 10 10 5 5 0 0 Y 0Y** 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 11Y 12Y 13

* Refers to figures for 2000 - 2008 ** Refers to the period January – March 2009 27 Handelsbanken 7. Group Funding Strategy

28 Handelsbanken Handelsbanken Group Funding

Funding – Strategy

„ Continue to benefit from strong deposit base „ Access domestic and international markets „ Actively develop debt investor relations „ Diversify sources of funding in wholesale as widely as possible „ Maintain low interest rate risk level „ Covered bonds – domestic and international issuance

EMTN EMTCN (covered bonds)

CPs ECP CDs Deposits MTN CDs Xnotes Private Placements Covered Bonds MTN CPs Retail Deposits

Deposits

& .

29 Handelsbanken Handelsbanken Group Funding sources

Selection of Issues

2008 Funding Programs Program Size Availability January: USD 2.5bn Extendible note February: EUR 410m 2y FRN +20bps „ EMTN USD 35 bn „ MTN (domestic) SEK 80 bn April: SEK 2.1bn 18m FRN +25bps „ US CP (SHB) USD 7 bn April: USD 1.75bn Extendible note „ ECP (SHB) EUR 5 bn May/June: EUR 2.5bn 2y FRN +45bps „ US CP (Stadshypotek) USD 5 bn July: EUR 500m 3y FRN +55bps „ ECP (Stadshypotek) EUR 4 bn - High Availability August: USD 200m 3y FRN +70bps „ CP (domestic) SEK 25 bn - Available August: CHF 125m 3y FRN +50bps „ CD (SHB) Unlimited - Not Available September: SEK 1bn 3y FXD +73bps „ CP (Stadshypotek) SEK 90 bn September: EUR 1.75bn 3y FXD + 80bps „ Stadshypotek domestic covered bonds Unlimited September: EUR 150m 2y Covered bond +25bps „ Stadshypotek Euro covered bonds EUR 15 bn „ French CD (SHB) EUR 5 bn 2009 „ Extendible notes USD 15 bn February: SEK 1.75m 2 y Covered bond FRN +75bps „ US MTN 144A USD 15 bn March: EUR 1.25 5 y FXD +210bps April: SEK 6bn 2y Covered bond + 72bps April: EUR 1bn 18m FRN +120bps May: GBP 550m 7y FXD + 200bps

Issued Domestic Covered Bonds 2008 Jan - Dec: SEK 73.3bn with maturities from 2009 to 2017 2009 Jan - May: SEK 25bn with maturities from 2009 to 2017 30 Handelsbanken Handelsbanken Group Summary – funding and liquidity

„ The Bank has not participated in any government or central bank aid programmes

„ The Bank has been able to continuously issue covered bonds in the domestic market

„ Recently accessed the unguaranteed senior market with a EUR 1.25bn 5 year transaction, a EUR 1bn 18m FRN and a GBP 550m 7 year transaction

„ Strong liquidity – At the end of Q1-09 Handelsbanken could within 48 hours free up additional liquid funds of more than SEK 400bn

„ The Bank has a contingency plan in place for crisis management to be able to meet any disturbances in the financial market that may have a temporary or long-term effect on the Bank’s liquidity.

„ Liquidity planning should aim for positive net funding 12 months ahead, at all times, taking into consideration the liquidity creating activities that are at hand for the period.

31 Handelsbanken 8. The Swedish Economy

32 Handelsbanken Swedish Economy – some figures

„ The Swedish Riksbank expects to keep the repo rate low for a long time. First hike expected in 2011. Repo rate currently at 0.5%.

„ GDP decreased by 0.6% in 2008 and a Debt % GDP, 2008 decrease of 4.5% is expected for 2009 , 120 a decrease of 0.5% for 2010, and pick- 100 up to 2.5% in 2011. 80

60 „ Government debt in relation to GDP at % year end of 2008 was around 38%, a 40 reduction from 80% in 1996. 20 0

„ m e K d n rk The debt is around SEK 120,000 per u ria ds n en nd Italy st n U d a lgi rtugal rla Spai Greece Franc ermany Au Irela Finl Be Po G he Swe Denma inhabitant. et N

Source:Eurostat „ Approximately 20% of the government debt is denominated in foreign currency.

„ Unemployment is today 8% and is expected to rise to about 12 % in 2010

33 Handelsbanken Sweden – some more charts

ResidentialResidential Investments Investments as as % % of of GDP GDP Nordic Banks –Geographical Exposure

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% Swedbank SEB Nordea Handelsbanken

Source: Source: Riksbanken Nordic Baltic Other

Sovereign 5y CDS Policy Rates 450

400

350

300

250

200

15 0

10 0

50

0Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 M ar-09 Apr-09 M ay-09

Ireland UK Sweden Germany Austria

Sources: Bloomberg, Handelsbanken Capital Markets 34 Handelsbanken Strong starting position

Government Net Lending, as % of GDP Household Savings , as % of disposable income

Household Debt, as % of GDP House Prices

35 Handelsbanken Nordic region

„ Common characteristics

„ Open and export oriented

„ Generous welfare states

„ Low public debt levels

„ Strong public finances

„ Sweden and Finland have a similar economic structure

„ Pulp & paper, metals, engineering, telecommunications and electronics industries.

„ Finnish industry more exposed to Russia (10%) and is euro member

„ Denmark

„ Small-scale industry, high-tech agriculture, pharmaceuticals and shipping

„ Norway

„ Rich on natural resources - petroleum, hydropower, fish, forests and minerals

„ Highly dependent on the petro sector (almost 50% of exports and over 30% of state revenue).

„ Not a EU-member

36 Handelsbanken 36 Nordic region

„ Sweden

„ Hard hit due to big exposure on manufacturing and exports

„ Weaker SEK has put a damper on the downturn

„ Strong starting position, but Baltic situation is worrisome

„ Finland

„ Comparable to Sweden

„ Strong Euro and big exposure to Russia has not been favorable

„ Denmark

„ Not as exposed to manufacturing

„ Big downturn in shipping and housing bubble

„ Norway

„ Strongest so far due to oil and gas investments

37 Handelsbanken 37 Appendix

38 Handelsbanken Handelsbanken Group Cost effectiveness, European universal banks Comparison of listed European universal banks with a assets > EUR 125 bn. Costs including loan losses. Jan-Dec 2008. Costs/ Total loans* % 1,0 Handels- banken Swedbank DnB Nor Nordea 2,0 Danske Bank SEB Commerzbank Bank of Ireland

3,0 Banco Santander Allied Irish Banks Unicredit Intesa SanPaolo BBVA MPS Lloyds TSB Erste Standard Chartered 4,0 Barclays

Deutsche Bank BNP Paribas 5,0 KBC Société Générale

Royal Bank of Scotland UBS HSBC C/I-ratio % 6,0 CS Group 100 80 60 40 39 Handelsbanken Source: Deutsche Bank: European Banks - Running the Numbers, March-09/Spring-edition. * Refers to loans to the public or deposits if deposits > lending Moody’s rating of listed European universal banks

Long Long Rating as at May 11, 2009 BFSR* Term BFSR* Term Handelsbanken B Aa1 HSBC Bank plc C+ Aa2 Banco Bilbao Vizcaya Argentaria B Aa1 Société Générale C+ Aa2 Banco Santander B Aa1 KBC Bank C+ Aa3 BNP Paribas B Aa1 Lloyds TSB Bank C+ Aa3 Credit Suisse B Aa1 Standard Chartered Bank C+ A2 Deutsche Bank B Aa1 Nordea Bank B Aa1 Barclays Bank plc C Aa3 Danske Bank C Aa3 Credit Agricole B- Aa1 DnB NOR B- Aa1 Commerzbank C- Aa3 Intesa SanPaolo B- Aa2 Erste Group Bank AG C- Aa3 UBS B- Aa2 Royal Bank of Scotland C- Aa3 Bayerische Hypo- & Vereinsb. C- A1 SEB C- A1 Swedbank C- A1

* Bank Financial Strength Ratings UniCredit Bank Austria D+ A1 Moody's Bank Financial Strength Ratings (BFSRs) represent Moody's opinion of a banks intrinsic safety and soundness and, as such, exclude certain external credit risks and credit support elements that are addressed by Moody's Bank Allied Irish Banks D Aa3 Deposit Ratings Bank of Ireland D Aa3

40 Handelsbanken Handelsbanken Group The credit process

Branch level Regional level Central level

Central Account Branch Regional Regional Central Regional Board Central Credit credit credit board credit Manager Manager Specialist committee specialist Board Decision Proposal committee

Process

Basic principles • Each review step adds a layer of cautiousness • Anybody in the process effectively has a veto – but • Credit decision no pricing issue only the branch manager can initiate a transaction • Simple • This conservative approach works, since we are not • Policy stable over time engaging into mass market banking 41 Handelsbanken Handelsbanken’s international network as at 31 December 2008

Representative office Banking operations

Representative offices in 4 countries France –Nice China – Beijing, Taipei India – Mumbai (Bombay) Malaysia – Kuala Lumpur

Banking operations in 19 countries Branch network offering universal banking Denmark (54) Norway (48) Great Britain (56) Finland (45) Sweden (461)

Branch offices in Europe Estonia - Tallinn Russia – Moskow, St.Petersburg France – Paris, S:t Raphaël Spain – Madrid, Marbella, Allicante Latvia -Riga Switzerland - Zürich * Branch offices in rest of world Luxembourg - Luxembourg Germany – Düsseldorf, Frankfurt, Hamburg, China - Shanghai Netherlands – Amsterdam, Rotterdam, Hannover, Stuttgart, Mannheim, Munich Hong Kong Amsterdam Zuid Austria - Vienna Singapore Poland – Warsaw, Gdansk, Poznan, USA - New York Wroclaw, Katowice East, Katowice West, * Only asset management Warsaw Mokotow 42 Handelsbanken Handelsbanken Group Handelsbanken´s branch office operations in Great Britain

Opening in 2008 Opening in 2008 1988 2005 and Q1 2009 1988 2005 and Q1 2009 London Liverpool Exeter London Liverpool Exeter Bournemouth Swansea Bournemouth Swansea 1989 Plymouth St Albans 1989 Plymouth St Albans Manchester Maidstone Crawley Manchester Maidstone Crawley Cambridge Bradford Cambridge Bradford 1994 Grimsby 1994 2006 Grimsby Birmingham 2006 Dartford Birmingham Slough Dartford Slough Kingston Sheffield Kingston 2000 Sheffield Shrewsbury 2000 Wolverhampton Shrewsbury Nottingham Wolverhampton Harrogate Nottingham Oxford Harrogate Oxford Lincoln Leicester Lincoln 2001 Leicester Huddersfield 2001 Swindon Huddersfield Leeds Swindon Scarborough Leeds Scarborough Reading 2007 Stockport Reading 2007 Stockport Doncaster Tunbridge Wells Doncaster Tunbridge Wells 2002 Brighton Derby 2002 Brighton Derby Bristol Preston Warrington Bristol Preston Warrington Newcastle upon Tyne Bath Harrow Newcastle upon Tyne Bath Harrow Tees Valley Tees Valley 2003 Croydon 2003 Croydon Cardiff Portsmouth Cardiff Portsmouth Southampton London West End Southampton London West End Milton Keynes Milton Keynes 2004 Northampton 2004 Northampton Norwich Wakefield Norwich Wakefield Guildford Enfield Guildford Enfield Chelmsford Coventry Chelmsford Coventry Stoke Basingstoke Stoke Basingstoke Hull Carlisle Hull Carlisle Chester Chester

43 Handelsbanken Disclaimer

„ This presentation is strictly confidential has been prepared for informational purposes only. This presentation may not be distributed, published, reproduced (in whole or in part) by any medium or in any form, or disclosed by recipients, to any other person. By receiving this presentation, you become bound by the restrictions contained herein and failure to comply with these restrictions may result in civil, administrative or criminal liability.

„ The securities of Svenska Handelsbanken described herein (the “Securities”) may not be offered or sold, and this document may not be disseminated, except (i) to persons that are qualified institutional buyers as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and (ii) outside the United States to persons that are not U.S. persons (as defined in Regulation S under the Securities Act) in offshore transactions in compliance with Regulation S.

„ Certain statements made in this presentation are forward looking statements. Any statements other than statements of historical fact included in this presentation, including without limitation those regarding Svenska Handelsbanken's financial condition, operating performance, business strategy, management plans and objectives for future operations are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, express or implied, by the forward looking statements. Factors that might cause forward looking statements to differ materially from actual results include, among other things, regulatory and economic factors. These statements may not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. The information presented herein speaks only as of today's date and Svenska Handelsbanken assumes no responsibility to update any of the forward looking statements contained herein.

„ No representation or warranty, express or implied, is made or given by or on behalf of Svenska Handelsbanken or its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of Svenska Handelsbanken or any of its directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

„ This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any Securities, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision to purchase any Securities

44 Handelsbanken