A presentation held by Magnus Uggla, head of Handelsbanken International, at the high level seminar "Towards a sustainable financial system", hosted by the Stockholm based think tank Global Challenge in cooperation with London School of Economics and Swedish House of Finance on September 12th 2013.

1. ”The Branch is the Bank”
Magnus Uggla – General Manager Handelsbanken International
Executive Vice President, Handelsbanken
Stockholm Sept 12, 2013

2. Handelsbanken
• A universal bank founded in 1871
• Same business model for 41 years
• Total assets 280 BEUR
• Some 800 branches in 24 countries – organic growth
• 11,000 employees

3. Handelsbanken’s goal
• Higher profitability than the average of banks in
Handelsbanken´s home markets.
• This goal is to be achieved by the Bank having
more satisfied customers and lower costs than
its competitors.
3

4. Handelsbanken Group
Return on shareholder’s equity 1973 – 2013:H1
4
Return on shareholder’s euquity after tax (1973-2008: standard tax). Adjusted for one-off items.
* Comparable banks: SEB, Nordea, Swedbank and since 2003 also Danske Bank and DNB.
-5
0
5
10
15
20
25
30
1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 20112013 H1
Handelsbanken Other comparable banks*%

5. Barclays
BNPP
CBK
Erste
Raiffeisen
BBVA
Intesa
Unicredit
Santander
SocGen
Danske
DNB
Nordea
SEB
Swedbank
SHB
(2)%
0%
2%
4%
6%
8%
10%
12%
14%
16%
4% 6% 8% 10% 12% 14% 16% 18%
RoE2012A
Basel III Core Tier 1 ratio 2012A
Handelsbanken Group
Highest RoE AND strongest capitalisation
5
Source: Company filings; SNL; FactSet as of April 25; J.P. Morgan estimates. Basel III Core Tier 1 ratio 2012A – as reported by the company or estimated by J.P. Morgan research in
the instances where the companies do not report the ratio RoE 2012A: net income attributable to shareholders, divided by average shareholders’ equity. As reported in company
filings

6. Average annual growth in equity including dividends
Handelsbanken Group
6
Dividends reinvested in RoE per quarter
CAGR, compounded annual growth rate

7. -0.20
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
H1
Handelsbanken Other Nordic banks*
Annual average
SHB
%
Handelsbanken Group
Loan losses as a percentage of lending
Average 1998 – 2012:
Handelsbanken = 0.04% Other Nordic banks* = 0.22%
Less than one fifth of the peer group’s average!
* Arithmetic mean of loan loss ratio for other listed Nordic banks: SEB, Nordea (Nordbanken), Swedbank, Danske Bank and DNB.
Annual average
other Nordic
banks
7

8. ”The branch is the bank”

9. Our growth model: Income/expense trend for UK branches
9
Handelsbanken Group
0
5
10
15
20
25
30
35
40
45
50
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Income, average Costs, average
SEK m
per branch
~40% of branches
more than 4 years old
~60% of branches less
than 4 years old

10. Key issues:
• Corporate culture
- risk appetite
- incentives
• Pressure from the capital markets
- equity investors
- debt investors

11. QUESTIONS?