Ulf Riese, CFO

Morgan Stanley European Financials Conference

2 April 2009

Handelsbanken Financial target – focus on profitability

„ Handelsbanken’s financial goal is to have a higher return on equity than a weighted average of comparable listed Nordic and British

„ This should be achieved through:

ƒ More satisfied clients

ƒ Lower costs than peers

The financial goal has been reached for 37 consecutive years

2 Handelsbanken Higher profitability than the average for comparable banks

Return on shareholder’s equity, 1973 - 2008 %30 Handelsbanken Other Comparable banks*

25

20

15

10

5

0

-5 1973 1978 1983 1988 1993 1998 2003 2008 Return on shareholder's equity after standard tax. * Since 2003 the comparable banks are: SEB, , , Danske samt DnB NOR. 3 Handelsbanken Business model

Decentralisation Nonnegotiable

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

Customer

The branch No budget is the bank

4 Handelsbanken We have more satisfied customers Customer satisfaction – private customers Handelsbanken Sector average, weighted Index Index Denmark 80 85 75 80

70 75 70 65 65 60 60 55 55 50 50 2001 2002 2003 2004 2005 2006 2007 2008 2001 2002 2003 2004 2005 2006 2007 2008

Index Index Norway 85 75 80 70 75 70 65

65 60 60 55 55 50 50 2001 2002 2003 2004 2005 2006 2007 2008 2002 / 2004 2005 2006 2007 2008

Source: SKI, Dansk KundeIndex, EPSI Rating and EPSI Norway. 2003 5 In Sweden, the sector average comprises SEB, Nordea and Swedbank. Handelsbanken We are the most cost-effective bank

Cost/income-ratio before loan losses, Jan – Dec 2008

Weighted average % excl. Handelsbanken Handelsbanken 45

DnB NOR 51

Nordea 54

Swedbank 51

Danske 61

SEB 63

Adjusted for items affecting comparability 56

6 Handelsbanken Respect for risks is a cornerstone

„ 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 start 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

7 Handelsbanken Lower loan losses than peers

Loan loss as a percentage of lending, 1994 - 2008 1,75 Handelsbanken Other Nordic banks* 1,50%

1,25

1,00

0,75

0,50

0,25

0,00 1994 1996 1998 2000 2002 2004 2006 2008 -0,25 * For the years 1994-2000, only Swedish banks. 8 Handelsbanken Handelsbanken Group Market shares in Sweden, Jan 2007 – Dec 2008

Keeping our credit policy unchanged tends to lead to reduced market shares in corporate lending at the top of the cycle

Lending to non-financial companies in Sweden Deposits from households in Sweden 30% 18,0% 17,7% 29% 29,0% 17,5% 28%

27% 27,0% 17,0% 26% 26,1% 25% 16,5% 24% 16,0% 23% 15,7% 16,0% 22% 15,5% 21% 20% 15,0% jan-07 apr-07 jul-07 okt-07 jan-08 apr-08 jul-08 okt-08

9 Source: Statistics Sweden (www.scb.se) Handelsbanken Stable finances and strong liquidity

Capital target

Handelsbanken aims to have a well-balanced capitalisation. The Bank’s goal is that the Tier 1 capital ratio in Basel II must be between 9% and 11%.

Outcome At the year-end, the Tier 1 ratio was 10.5%, according to Basel II. Total capital adequacy amounted to 16.0%.

10 Handelsbanken Secure a strong liquidity

Net lender to the Swedish central bank as well as 60 000 in the Swedish krona interbank market SEK m

50 000 Year-end liquidity reserves of over SEK 300 bn

40 000

30 000

20 000

10 000

0 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 11 2008 Handelsbanken Rating is important

Moody's rating Long Long as of 11 March 2009 BFSR* Term BFSR* Term Handelsbanken Aa1 HSBC Bank plc C+ Aa2 Banco Bilbao Vizcaya Argentaria B Aa1 KBC Bank C+ Aa3 B Aa1 Lloyds TSB C+ Aa3 BNP Paribas B Aa1 Bank C+ A2 Credit Suisse B Aa1 C+ Aa2 B Aa1 Nordea Bank B Aa1 C Aa3 C Aa3 Credit Agricole B- Aa1 Bank plc C Aa3 DnB NOR B- Aa1 C Aa3 Spa B- Aa2 Erste Bank der Oest.Spark. C Aa3 SEB B- Aa2 Société Générale B- Aa2 Bayerische Hypo- & Vereinsb. C- A1 UBS B- Aa2 C- Aa3 Royal plc C- Aa3 Swedbank C- A1 HBOS plc A1 * Bank Financial Strength Ratings 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 Deposit Ratings 12 Handelsbanken Handelsbanken Group Q4 2008 – Best quarter ever

Q4 Q3Change SEK m 2008 2008 %

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

13 Handelsbanken Handelsbanken Group Key ratios

Q4 Q3 Jan-Dec

2008 2008 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 37.8% 44.0% 44.3% operations

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

14 Handelsbanken Conclusion – Stick to your knitting

The essence of our business model is that it should work in both good and bad times. For Handelsbanken, sticking to the model is the key when navigating through the current crisis

15 Handelsbanken