1 Svenska Handelsbanken Full-year result 2001 12 February 2002
Profit & loss account, January - December Handelsbanken Group SEK m 2001 2000 Change % Net interest income 13 385 11 791 14 Commission, net 5 028 5 455-8 Trading, net 2 656 2 633 1 Other income 585 *801-27 Total income 21 654 20 680 20 337 5 6 Staff costs, excl. performance-related -5 580-4 844 15 Performance-related staff costs -338-464 -27 Other expenses -4 376-3 756 17 Total expenses -10 294-9 064 14 Profit before loan losses 11 360 11 616-2 Loan losses -152 67 Operating profit 11 208 11 683 11 340-4 -1 *of which affecting comparability SEK 343 m 2
Operating profit, quarterly Handelsbanken Group SEK m 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1997 1998 1999 2000 2001 3
4 Net interest income excl. trading, quarterly Handelsbanken Group SEK m 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1999 2000 2001
5 Lending to the general public, Sweden Handelsbanken Group Average volumes SEK bn Full year 2001 Full year 2000 Change % Mortgage loans 337 321 5 Private 201 183 10 Corporate 136 138-1 Bank loans 265 222 19 Private 45 40 13 Corporate 220 182 21 Total 602 543 11 Private 246 223 10 Corporate 356 320 11
6 Lending to the general public Handelsbanken Group Average volumes SEK bn Full year 2001 Full year 2000 Change % Sweden 602 543 11 Other Nordic countries 96 67 43 Private 28 20 40 Corporate 68 47 45 Rest of world 62 48 29 Private 2 2 0 Corporate 60 46 30 Total 760 658 16 Private 276 245 13 Corporate 484 413 17
7 Deposits from the general public Handelsbanken Group Average volumes SEK bn Full year 2001 Full year 2000 Change % Sweden 194 178 9 Private 74 73 1 Corporate 120 105 14 Outside Sweden 85 63 35 Private 15 12 25 Corporate 70 51 37 Total 279 241 16 Private 89 85 5 Corporate 190 156 22
Commission January December Handelsbanken Group SEK m 2001 2000 Change % Brokerage 1 072 1 668-36 Mutual funds and custody 1 417 1 646-14 Payments 1 311 1 194 10 Lending and deposits 1 168 876 33 Other 1 226 1 172 5 Commission expenses -1 166-1 101 6 Total 5 028 5 455-8 8
9 Trading, net income January - December Handelsbanken Group SEK m 3 000 2 500 2 633 2 656 2 000 1 500 1 855 1 000 500 0 1999 2000 2001
10 Trading, net income Handelsbanken Group SEK m 3 000 2 500 2 000 1 500 1 000 500 0 2001 2000 Currency & interest rate related Equity related Other
11 Change in expenses, Jan - Dec 2001 Handelsbanken Group Comparable expenses Midtbank and SPP 6.6 % units 4.9 % units Exchange rate effects 2.1 % units Total expenses 13.6 % units
12 Comparable expenses, Jan - Dec 2001 Handelsbanken Group Salary increases 1.6 % units Performance-related staff costs -1.4 % units Increased number of employees 0.5 % units Higher IT expenses 2.4 % units Premises and property 0.8 % units Expansion outside Sweden 1.0 % units Other 1.7 % units Total comparable expenses 6.6 % units
13 Impact of current IT projects Potential annual cost savings of over SEK 300m Potential annual extra income of over SEK 50m
Income * per employee 1998-2001 SHB and other banks mkr 2,5 2,0 1,5 1,0 Average SEB, Nordea, FSpB, DB Handelsbanken 0,5 0,0 1998 1999 2000 2001 ** * Excluding items affecting comparability. Years 2000 and 2001 excluding insurance operations. ** Danske Bank as at 30 June 2001, other banks as at 30 Sept 2001. 14
C/I ratio* 1998-2001 SHB and other banks % 80 60 40 20 Average SEB, Nordea, FSpB, DB Handelsbanken 0 1998 1999 2000 2001 ** * Excluding items affecting comparability. Years 2000 and 2001 excluding insurance operations. ** Danske Bank as at 30 June 2001, other banks as at 30 Sept 2001. 15
New branches outside Sweden UK 2 new branches Finland 8 new branches - Leeds - Reading Rovaniemi Ålesund Kokkola Seinäjoki Joensuu Norway 2 new branches Sarpsborg Raisio Salo Tavastehus Helsinki - Munkkivuori Horsens Esbjerg Denmark Vienna 2 new branches 1 new branch Increased costs 2001: SEK 87m Poland 1 new branch Warsaw 16
17 Number of employees Handelsbanken Group 2001 2000 Change Average no. of employees Jan Dec 9 239 8 574 + 665 Swedish branch office operations +17 IT and development, Sweden +175 Other Nordic countries excl Midtbank +109 Midtbank +274 Other countries +10 Other +80
18 Operating profit per business area January - December SEK m 2001 2000 +/- Return on equity 2001 Branch offices 8 708 8 705 0 % 20.4 % Markets 1 446 953 52 % 24.8 % Securities 356 755-53 % 35.6 % Asset management 550 646-15 % 28.4 % Handelsbanken Finans 345 331 4 % 29.4 % Pension & Insurance 66 102-35 % 15.6 % Stadshypotek Bank 22 15 47 % 30.6 % Treasury 138 173-20 % 14.6 % Group 11 208 11 683-4 % 18.4 %
19 Results in other Nordic countries and UK January - December SEK m 2001 2000 Change % Norway 183 603-70 Denmark 101 56 80 Finland 157 381-59 UK 219 189 16 Total 660 1229-46
20 Key figures, January - December Handelsbanken Group 2001 2000 Return on equity 18.4 % 21.6 % Cost / income ratio before loan losses 47.5 % 44.6 % after loan losses 48.2 % 44.2 % Net earnings per share, SEK 11:99 12:43
21 Bad debts as percentage of total lending Handelsbanken Group % 1,2 1,0 0,8 0,6 0,4 0,2 0,0-97 -98-99 -00-01 -02
Bad debts as a percentage of lending SHB and other Swedish banks % 5 4 3 SHB net/gross Other bank net/gross* 2 1 0 97 98 99 00 01 * As at 30 Sep 2001 22
Loan losses as a percentage of lending Handelsbanken Group % 0,8 0,7 0,6 0,5 0,4 0,3 Other Swedish banks* Handelsbanken 0,2 0,1 0,0 1997 1998 1999 2000 2001 * as at 30 Sep 2001 23
24 Geographical distribution of lending Handelsbanken Group 31 Dec 31 Dec Change SEK bn 2001 2000 % Sweden 646 573 13 % Norway 44 35 26 % Finland 32 26 23 % Denmark 21 12 75 % Rest of Europe 27 22 23 % North America 28 19 47 % Asia 2 2 0 %
25 Outstanding loans to certain sectors Handelsbanken Group 31 Dec % of SEK bn 2001 lending Telecom 15.6 2.0 % Travel, Hotels 2.8 0.3 % Shipping 9.5 1.2 % Airlines, aircraft financing, airport financing 3.1 0.4 % Non-life insurance companies 0.3 0.0 %
26 Balance sheet Handelsbanken Group 31 Dec 31 Dec Change SEK m 2001 2000 % Lending to general public 800 068 689 106 16 Lending to credit institutions 70 857 94 677-25 Interest-bearing securities 128 347 88 262 45 Other assets 175 249 148 308 18 Total assets 1 174 521 1 020 353 15 Deposits and funding from general public 283 692 255 350 11 Liabilities to credit institutions 220 126 155 414 42 Issued securities 440 981 401 489 10 Other liabilities 181 610 165 634 10 Shareholders equity 48 112 42 466 13 Total liabilities and shareholders equity 1 174 521 1 020 353 15
27 Capital base and capital ratio Handelsbanken Group SEK bn 70 9.5 % 9.9 % 60 50 10.4 % 9.8 % 9.4 % 9.5 % Tier II capital 40 30 20 10 14.2 % 10.3 % 12.2 % 10.0 % 6.2 % 6.3 % 6.5 % 6.4 % 5.9 % 6.1 % Tier I capital 1995 1996 1997 1998 1999 2000 2001 Sep 2001
Return on shareholders equity after standard tax 31 December 2001 % 30 25 20 15 10 5 Handelsbanken Other listed commercial banks * 0-5 -84-86 -88-90 -92-94 -96-98 -00 * as at 30 September 2001 28
Increased market shares - increased lead in profitability 2001 2000 Market shares in Sweden % % Deposits in SEK, households * 17.5 17.2 Mutual funds, new sales 19.0 11.4 Lending in SEK, households * 16.8 16.7 Mortgage lending in SEK, households * 31.6 31.4 Lead in profitability over other listed banks ** +6.8 +4.9 * Market share for 2001 as at November ** As at 30 September 2001 Source: Statistics Sweden. Svensk Fondstatistik/Sparöversikt 29
The Swedish savings market Handelsbanken s market share 2001 1997 % % Deposits in SEK, households * 17.5 15.7 Mutual funds, volume ** 11.4 9.9 Mutual funds, new sales 19.0 10.9 Equity linked bonds, registrered volume *** 47.6 42.7 Equity linked bonds, new issues *** 38.2 35.0 Equity linked bonds, turnover *** 70.0 60.0 * 2001 market share as at November ** Excl. the premium pension fund *** On Stockholm Stock Exchange Source: Statistics Sweden, Svensk Fondstatistik/Sparöversikt 30
The Swedish mutual fund market Market share net savings excl. PPM % 25 Robur 45.6 % 20 15 10 Nordea 16.5 % SEB 11.1 % SHB 10.9 % SHB 19.3 % Robur 19.0 % Nordea 14.9 % 5 1997 1998 1999 2000 2001 Handelsbanken Robur Nordea SEB SEB 6.8 % 31
32 Handelsbanken on the Internet More than 530 000 customers of the Group connected to the Internet Web sites in 5 countries >50 % of corporate customers connected >30 % of private customers connected
33 Proportion of services via the Internet Handelsbanken, Sweden 50% 45% 40% 35% 30% 34% 45% 29% 41% 25% 20% 15% 10% 5% 0% 19% 8% Equity trading 7% 11% 16% 16% Mutual funds trading 15% 11% Payments 1998 (Q4) 1999 (Q4) 2000 (Q4) 2001 (Q4)
Most satisfied customers - in Denmark too Dansk KundeIndex 2001 Index 80 75 70 65 60 Handelsbanken / Midtbank Jyske Bank Sydbank Unibank Danske Bank BG Bank Source: Danish Centre for Management 34
Source: Privata Affärer, no 12 2001 35 Handelsbanken - Bank of the Year
Dividend 2000 Proposal 2001 Per share, SEK Class A and B 4:00 4:50 Share of net earnings, % 30.1 37.6 Increase 00/01, % 12.5 Dividend, SEK m Class A and B 2 745 3 120 36
Buyback of shares The Board requests authorisation to repurchase a maximum of 20 million shares and to use repurchased shares for acquisitions The Board states that the buybacks will be for a maximum of SEK 2bn At year-end, the Bank owned 21.4 million of its own shares 37
38 Handelsbanken Hypotek redeems preference shares Handelsbanken Hypotek intends to redeem all preference shares for SEK 252.6m Marginal impact on Handelsbanken s Tier 1 capital ratio
Share price performance up to 31 December 2001 Index SHB AFV General Index Nordix Bank excl SHB 250 200 150 100 50 0 1997 1998 1999 2000 2001 2002 39