HandelsbankenPär Boman, CEO

UBS 11th Annual Nordic Financial Services ConferenceGrand Hotel, September 4 2008

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Handelsbanken Group

Agenda

Major issues addressed in the last 2.5 years Group level Growth in Branch office operations outside Sweden Swedish branch office operations

Focus looking forward

Current situation in the banking sector

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Handelsbanken Group

Issues addressed - Group level

Improved transparency in external reporting

Reporting by segment and geography

More details to explain trends in underlying earnings

More supplementary information

More to come in the next 6 months

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Handelsbanken Group

Issues addressed - Group level

Reduction of macro risk and earnings volatility

Sale of SPP in September 2007 for SEK 18bn

Realised gain of SEK 4.2bn

Sale of credit card-backed bond portfolio in March 2008

Realised loss of SEK 0.8bn

In total, these transactions resulted in a realised gain of SEK 3.4bn and in a

significant reduction of market risk and earnings volatility. In addition, the

sale of SPP partly facilitated the extra dividend of SEK 3.1bn in 2008

The bank’s core risk competence is to assess and assume

credit default risk. All other risks should be minimised

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Handelsbanken Group

Issues addressed - Group level

Capital structure in Basel II

Our view: Limited potential for banks to reduce capital

First Nordic bank to get Pillar II clearance from supervisory authorities

Targeted Tier1-ratio of 9-11% in Basel II

June 30, 2008

Capital ratio, Basel II 16.1%

Tier I ratio, Basel II 10.6%

Tier I ratio target, Basel II 9 - 11%

6

Jan – Jun 2008 GB DK FIN N Other Total

Number of branches 49 40 44 46 35 214

Of which opened during the year 3 1 - - 6 10

Branch manager appointed 9 - 1 3 5 18

No. of branches which have achieved break-even

20 34 39 41 12 146

Lending growth, H1-08 / H1-07 40% 11% 13% 29% 68% 29%

Deposits growth, H1-08 / H1-07 5% 7% 7% 16% 9% 10%

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Handelsbanken Group

Growth in Branch office operations outside Sweden

Deposits/lending in Great Britain, Denmark, Finland and Norway refers to average volumes in local currency.

The number of branches outside Sweden has grown

by 38% since Q2 2006 to 214

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Branch office operations outside Sweden

Fastest growth in Great Britain

The operations in Great Britain is showing a positive development and the current expansion is likely to

continue

Number of branch offices in Great Britain

2225 26 26

3034

4246

49

0

10

20

30

40

50

60

Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08

+123% since Q2-06

Lending volume in Great Britain, GBP bn

1.0

2.0

3.0

4.0

5.0

Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08

GB

P b

n

+124% since Q2-06

8

0

5

10

15

20

25

30

35

40

45

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

Revenues Costs

SEK m perbranch office

Branch office operations outside Sweden

Revenues & costs – 129 branch offices opened 1995-2007

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Handelsbanken Group

Branch office operations in Sweden

Three main areas with improvement potential were identified in 2006

Growth

Productivity

The use of new technology

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Handelsbanken Group

Branch office operations in Sweden

Operating profit SEK4,840m

RoE18.3%

Net interest income increased by 10%

C/I ratio before loan losses 38.7%

Average volumes, bn

Loans to the public 911 (819) +11%

Deposits 276 (234) +18%

January – June 2008

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Branch office operations in Sweden

Net interest margin – Variable rate household deposits

6065707580859095

100105110115120125130

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

0,60%

1,20%

1,80%

2,40%

3,00%

3,60%

4,20%

Average volumes Margin*

2003 2004 20062005

SEK bn

1.78%

2007

2.11%

*Customer rate compared to 1 month STIBOR

2008

2.03%

+8bp

Market share, household deposits,

increased from 16.0% in December 2007 to 16.6% in July 2008

12

0

100 000

200 000

300 000

400 000

500 000

600 000

Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Q3-07 Q1-08 Q2-08

Handelsbanken Group

Branch office operations in Sweden – Successful card business

No. of cards

January – June 2008• The no. of Allkort up by 33%, purchase volume up 35%

• The no. of Business cards up by 12%, purchase volume up 14%

• The no. of Frikort cards up by 45%

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Branch office operations in Sweden

Turnaround in Swedish mortgage sales

16

18

20

22

24

26

28

30

32

2001 2002 2003 2004 2005 2006 2007 Jan-Jun2008

Households - share of new sales

Households - market share

% Stadshypotek

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Branch office operations in Sweden

Productivity is improving, with more to come

Target 2006: 50% increase in time

spent with customers by 2010

Result April 2008: +34%

The impact from recent system

launches not yet in the figures

Profit / employee +5% in H1 2008

Despite C/I-ratio of 38.7% in H1, there is still scope for further improvement

Time spent with customers in Swedish branch offices

100

134120

0

25

50

75

100

125

150

2006 2007 2008

Ind

ex 2

006

= 1

00

Branch office operations in Sweden 2008* 2007

Profit before loan losses 10,434 9,941

Average number of employees 4,625 4,649

Profit / employee, SEK '000 2,256 2,138* January - June 2008 annualised

+ 118 (+5%)

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Branch office operations in Sweden

Improved productivity through new technology

The bank is currently running 35,000 clients in a full scale test of a fully integrated internet and telephone bank

TelephoneInternet

Branch office

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Handelsbanken Group

Focus going forward

Continue the organic international expansion with focus on the UK

Increased efforts towards Swedish large caps

Additional measures to increase market share in the savings area

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Handelsbanken Group

The current banking environment

Not likely to ease in the near term

Significant liquidity risks in the market but poor transparency

The environment could get worse before it improves

Prudent liquidity planning will be key

18

Handelsbanken Group Prolonged funding since early 2007

Funding sources as % of total funding Jan-07 - Jul-08

0%

5%

10%

15%

20%

25%

30%

35%

jan-07 mar-07 maj-07 jul-07 sep-07 nov-07 jan-08 mar-08 maj-08 jul-08

Credit Institutions C/D Bonds Subordinated loans General Public

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Handelsbanken Group

Cash flow planning

30 days

Existing cash should last for at least 30 days without any access to the

funding markets

90 days

Existing cash + liquidity portfolio should last for 90 days without any

access to the funding markets

360 days

Existing cash + liquidity portfolio + management actions should provide

enough liquidity to continue the bank’s business for >360 days without

any access to the funding markets

The bank’s liquidity planning and funding activity aims at

fulfilling the 30/90/360 day definitions at all times

20

0

10 000

20 000

30 000

40 000

v 2 v 4 v 6 v 8 v 10 v 12 v 14 v 16 v 18 v 20 v 22 v 24 v 26

SEK m

Handelsbanken Group

Net lending in SEK in the Swedish interbank marketJanuary – June 2008, weekly

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Handelsbanken Group

Bad debts as a percentage of lending ,net*

* Bad debts, net = Bed debts, gross – specific reserve. (Not adjusted for collective reserve).

** Average Nordea, SEB and Swedbank.

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

Q1

01

Q2

01

Q3

01

Q4

01

Q1

02

Q2

02

Q3

02

Q4

02

Q1

03

Q2

03

Q3

03

Q4

03

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

SHB

Peers**

%

Andel osäkra fordringar, netto*Bad debt asdasgsagasgg

Increase related to the same commitmentsthat explain loan losses in the period

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Handelsbanken