Building commercial success on satisfied customers Richard Winder, Global Head of External Affairs The next few minutes • 's business model • SKI / EPSI insights

2 A reluctant banker

3 A different kind of

• 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 **

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 37% 6 Co-operative Bank 36% 7 Bank 30% 2018…2017… 8= NatWest 29% 2016…2015… 8= 29% 2014…2012… 8= 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!