Building commercial success on satisfied customers Richard Winder, Global Head of External Affairs The next few minutes • Handelsbanken's business model • SKI / EPSI insights
2 A reluctant banker
3 A different kind of bank
• Founded in 1871
• Transformed in the early-1970s
4 A straightforward approach
• One goal: a higher profitability (RoE) than the average of our peers
• Two means to achieve it: • More satisfied customers • Lower costs
5 Customer satisfaction: 1989-2018
Handelsbanken SKI scores for Individual and Corporate Banking (straight average) Industry 80
78
76
74
72
70
68
66
64
62
60
1989 1990 1991 1992 1993 1994 1995 1996 1997 9899 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
6 Commercial goal achieved: 1972-2018
Return on equity*
% 30 Handelsbanken Other comparable banks**
25
20
15
10
5
0
-5
* Return on shareholder’s equity after tax (1973-2008: standard tax), adjusted for one-off items 7 ** Weighted average of peer banks in Handelsbanken’s home markets Built on timeless values
“Work with human nature, not against it" A long-term perspective
Trust and respect Relationships, not transactions
Devolved responsibility Prudence and stability
Customer focus A responsible role in society
8 A decentralised organisation
9 Follow the customer, not the crowd
Branches have full local A flat organisation - customer responsibility word travels fast
Change driven by local Adaptable - no fixed planning customer demand
SKI/EPSI used to steer Clear focus - no sales targets improvement, at all levels or financial incentives
Customer satisfaction is a fundamental No siloes - a culture of focus, throughout the bank co-operation
10 More satisfied customers in all home markets
Individual customers Corporate customers
90 90
85 Handelsbanken Industry 85 Handelsbanken Industry
80 80 index index
75 75 satisfaction satisfaction 70 70
65 65 Customer Customer
60 60
55 55
UK UK Norway Finland Norway Finland Sweden Denmark Sweden Denmark Netherlands Netherlands Source: SKI/EPSI Rating 2018
11 Satisfaction as a 'growth model' – Handelsbanken UK
UK's "Best SME Bank" "UK's best business bank" UK's "Best Private Bank"
#1 in 4/5 categories #1 since 2014
1 Handelsbanken 69% 2= Santander 40% 2= Metro Bank 40% 4 Nationwide 38% 5 Danske Bank 37% 6 Co-operative Bank 36% 7 Yorkshire Bank 30% 2018…2017… 8= NatWest 29% 2016…2015… 8= Lloyds Bank 29% 2014…2012… 8= Bank of Ireland 29%
12 Proactivity and satisfaction
Satisfaction and financial Complaints handling and performance customer loyalty
A few SKI insights
Holistic service Local, personal and digital
Care and trust
13 Tack!