Handelsbanken Group What is unique in Handelsbanken?

1. HandelsbankenA unique bank with a unique growth modelPär BomanUBS Annual Nordic Financial Service ConferenceAugust 30, 2007 Handelsbanken

2. Handelsbanken GroupWhat is unique in Handelsbanken? • The international growth model • More satisfied customers • Low costs • Low credit losses Handelsbanken

3. Handelsbanken GroupKey ratios, Jan-Jun 2007 * According to transitional rules 2007 Handelsbanken

4. Handelsbanken GroupOperating profit by business area, Q2 2007 vs Q1 2007 Handelsbanken

5. Handelsbanken GroupCost-effectiveness, European universal banks Costs/Total loans* % Danske Bank Q1-07 Handels- banken Swedbank Bank of Ireland DnB Nor Nordea Allied Irish Banks Commerzbank SEB HypoVereinsbank KBC Banco Santander Credit Agricole SA Royal Bank of Scotland Bank Austria Intesa SanPaolo Unicredito BBVA Lloyds TSB Standard Chartered MPS Erste Capitalia BNP Paribas ABN Amro Deutsche Bank HSBC HBOS Société Générale Barclays UBS CS Group 90 80 70 60 50 40 C/I-ratio, % Comparison of listed European universal banks with lending > EUR 100bn and major Nordic banks. Costs including loan losses Jan-Dec 2006. Source: Deutsche Bank: European Banks – Running the Numbers, January 2007-edition.* Refers to loans to the public or deposits if deposits > lending. Handelsbanken

6. Handelsbanken GroupSPP effect on net gains/losses on financial items at fair value 2006 2006 2006 2006 2007 2007 Other contains hedge accounting, instruments at fair value and financial liabilities. Handelsbanken

7. Handelsbanken Group Reduced financial risks in SPP * Excl yield split. Handelsbanken

8. Handelsbanken Group Improved administration result (incl. SPP Fondförsäkring) Handelsbanken

9. Handelsbanken Group Growth in premiums and new contracts, SPP SEK m * * Excluding a major portfolio transfer of SEK 7.7bn. Handelsbanken

10. Handelsbanken GroupHandelsbanken’s unique growth model • No macro bets • Not focused on distribution of products • Managing customer expectations • No mass market approach – Cherry picking • Word of mouth – no campaigns • Successive increase of product assortment • Cost efficient • Applicable in all markets • Long experience Handelsbanken

11. Handelsbanken GroupBranch operations outside Sweden Total income SEK m (left scale) Number of branches (right scale) 2007* = H1 2007 x 2 CAGR 11% CAGR 4% CAGR 23% CAGR 32% * * CAGR 12% CAGR 11% CAGR 19% CAGR 9% * * Handelsbanken CAGR = Compound Annual Growth Rate.

12. Handelsbanken GroupExpansion rate increases outside Sweden Deposits and lending in GB, Denmark, Finland and Norway refer to volumes in local currency. Handelsbanken

13. Handelsbanken GroupOperating profit from operations outside Sweden Handelsbanken

14. Handelsbanken GroupCustomer satisfaction– private customers in the Nordic countries Handelsbanken Sector average, weighted Index Denmark Index Sweden Index Norway Index Finland Source: SKI, Dansk KundeIndex, EPSI Rating and EPSI Norway. In Sweden, the sector average is SEB, Nordea and Swedbank. Handelsbanken

15. Handelsbanken GroupThe most satisfied customers in the Nordic countries Sweden • Corporate market – Best of the large banks • Private market – Best of the large banks Finland • Corporate market – Best • Private market – Best Denmark • Corporate market – 2nd place • Private market – 3rd place Norway • Corporate market – Best • Private market – 2nd place Source: Svenskt Qalitetsindex, EPSI Norway, Dansk KundeIndex and EPSI Rating in Finland. Handelsbanken

16. Handelsbanken GroupIncrease in regular monthly savings in mutual funds • Monthly savings +17% p.a. • Number of standing orders +10% p.a. Monthly savings, SEKm (left scale) No of standing orders, 1 000s (right scale) June figures: 2005 - 2007 Handelsbanken

17. Handelsbanken Group Savings with Handelsbanken – volumes * Mainly refers to private individuals' savings Handelsbanken

18. Handelsbanken GroupLoan losses as a percentage of loans Statutory capital requirement will decrease by 41% when Basel II is fully implemented. Handelsbanken

19. Handelsbanken GroupCredit risks • Handelsbanken has a unique credit granting process implying a commitment in terms of both competence and processing times • Customers are chosen selectively • Analysis done close to customers • Cannot borrow money in Handelsbanken if not approved by the branch • High quality borrowers • Long-term customer relationships • Handelsbanken assesses business and credit risk with the objective of keeping the credit risk in the books focusing on default risk • Handelsbanken’s business model implies investments in relationships with customers – counter productive to sell of credits Handelsbanken

20. Handelsbanken GroupCredit risks • Handelsbanken focuses on default risk • Difficult to evaluate credit risk on the top of a business cycle • The most credit worthy borrowers are not in the market • The CDS market • Spread risk vs default risk t1 t2 Handelsbanken

21. Handelsbanken GroupWhat is unique in Handelsbanken? • The international growth model • More satisfied customers • Low costs • Low credit losses Handelsbanken