Highlights OF ANNUAL REPORT Operating profits increased by 13% to SEK 13.1bn (11.6) Return on shareholders equity rose to 15.8% (14.

Highlights OF ANNUAL REPORT 2004 Operating profits increased by 13% to SEK 13.1bn (11.6) Return on shareholders equity rose to 15.8% (14.9) Income went up by 8% to SEK 24.0bn (22.3) Net commission income was SEK 6.1bn (5.2), an increase of 17% Expenses were SEK 10.8bn (10.4), a rise of 3% Loan losses fell and were SEK 167m (492) The cost/income ratio improved and was 44.9% (46.9) before loan losses Profits after tax increased by 15% to SEK 9.4bn (8.1) Earnings per share went up to SEK 13.81 (11.70), an increase of 18% The board proposes that the dividend be increased by 14% to SEK 6.00 (5.25) The board proposes that the annual general meeting give it a renewed mandate to repurchase shares The changeover to new accounting standards is expected to have limited impact on the Bank s financial position and earnings

The Group Profits increased to SEK 13.1bn Handelsbanken s profits were SEK 13,056m (11,550), an increase of 13%. Net interest income decreased marginally, net commission income increased substantially and net trading income was at almost the same high level as the early 2000s. Expenses were SEK 10,758m (10,449), a rise of 3%, but still below the level of 2002. The already low loan losses fell to SEK 167m (492). Return on shareholders' equity improved to 15.8% (14.9). Income rose despite net interest income being under pressure Total income rose by 8% despite net interest income falling by 1% to SEK 14,462m (14,642). The lower net interest income figure was mainly due to lower margins on deposits in Sweden, which had a negative impact on net interest income of SEK 632m. Lending margins remained generally unchanged. Both deposit and lending volumes increased. Lending to the general public rose by almost 5% to SEK 861bn (823). Deposit volumes went up by almost 6% to SEK 321bn (303). Business volumes increased considerably more quickly outside Sweden than in Sweden. Net commission income rose by 17% to SEK 6,126m (5,224). Net commission income for the fourth quarter was excellent, with particularly strong commission income for mutual fund and custody services, insurance, payments and the Other services category, which includes Corporate Finance transactions. Brokerage income was high, especially during the first quarter. Net trading income rose by 17% to SEK 2,608m (2,222). The high level of net trading income in the fourth quarter was partly due to improved currency and fixed income trading, and also to a significantly better performance in managing policyholders funds at Handelsbanken Liv. Other income rose to SEK 785m (204). This was partly the result of a considerably improved risk result for Handelsbanken Liv (SEK 65m) and reversed insurance premiums (SEK 82m). The comparison with last year is also affected by a provision of SEK 229m in 2003 at Handelsbanken Liv to enable the company to retain, for the time being, pensions being disbursed at an unchanged level. Low increase in expenses Expenses rose by SEK 309m to SEK 10,758m (10,449), an increase of nearly 3%. Almost one third of the increase was due to higher performance-related staff costs and almost one half - SEK 140m to increased costs due to the acquisition of SPP Liv Fondförsäkring AB. Total IT costs rose to SEK 2.6bn (2.5). Costs for system development increased, while current IT expenses and cost for hardware investments fell. Twenty new branches were opened during the year, nineteen of them outside Sweden. The total number of employees rose by 169 to 9,226 (9,057). The non-swedish regional banks and the IT departments represented most of the increase. At SPP, which the Bank plans to consolidate next year and which is thus not yet included in the Group s figures, the number of employees fell by 98 to 547. The cost/income ratio before loan losses improved and was 44.9% (46.9). After loan losses, the figure was 45.6% (49.1). Loan losses and loan loss ratio fell Loan losses, including changes in the value of repossessed property, were SEK 167m (492). This corresponded to 0.02% (0.06) of lending. The net bad debt reserve ratio, that is after a deduction for probable loan losses, was 0.21% (0.28) of lending. Capital ratio and rating The Group s capital ratio was 10.0% (10.2) and the Tier 1 capital ratio was 7.6% (7.3). During the fourth quarter, Standard & Poor s raised the Bank s rating to AA- from A+. This means that Handelsbanken now has an AA rating from all agencies which rate the Bank. Moody s has rated the Bank at this level for a long time and during 2004, raised the rating another notch to Aa1 (Aa2). Fitch Ratings had an unchanged rating at AA-. No listed Nordic bank has a higher rating than Handelsbanken. Buyback and cancellation of shares At the 2003 annual general meeting, the board was given a mandate to repurchase up to 20 million shares. Part of the mandate was utilised in the first quarter of 2004 and before the AGM, the Bank repurchased 7.2 million shares. At the AGM in 2004, the board received a new and increased mandate to repurchase a maximum of 40 million shares and after the 2004 AGM, the Bank repurchased a total of 16.5 million shares under this mandate. The Bank thus repurchased a total of 23.7 million shares during 2004. The AGM in 2004 also resolved to cancel 21.4 million shares which the Bank had repurchased during 2000 and 2001. Following this, the number of outstanding shares was 693.4 million and after the repurchases during 2004, the number of outstanding shares was 669.6 million. The AGM also resolved, in connection with the cancellation of shares, to increase the nominal value of the share from SEK 4.00 to SEK 4.15 by means of a bonus issue. The board proposes to the AGM in 2005, to cancel the 23.7 million shares which the Bank repurchased in 2004. With the purpose of adjusting the capital structure, the board is also requesting the AGM to authorise the board to repurchase a maximum of 40 million shares. The board also states that the Bank, on condition that the AGM resolves in accordance with the board s proposal, will repurchase shares for a maximum of SEK 5bn until the AGM in 2006. Finally, if the AGM resolves in accordance with the board s proposal, the board proposes that the AGM resolve that shares which may come to be repurchased can be used for financing possible company acquisitions. 2 Svenska Handelsbanken

Earnings per share Net earnings per share were SEK 13.81 (11.70). The board recommends that the AGM resolve on a dividend of SEK 6.00 per share (5.25) for the class A and B shares, an increase of 14%. Handelsbanken Liv a demutualised life insurance company Handelsbanken Liv reported earnings of SEK 150m (-80). When Handelsbanken Liv was demutualised, the Bank estimated that normal earnings for the company would be between SEK 150m and SEK 200m. This level has been achieved two years running, excluding items affecting comparability. This has been possible at the same time as the value of the insurance savings of Handelsbanken Liv s policyholders have increased in value more than at competitors. The opening balances for 2005 have been restated in accordance with the new standards. The main effects for the Bank are the new rules applying to goodwill, measurement of financial assets and liabilities (IAS 39), consolidation of insurance companies and group provisions for individually assessed receivables. Earnings for 2004 would have been some SEK 501m higher if the new accounting standards had been applied for the whole of 2004, mainly because goodwill is no longer amortised. The impact on opening equity for 2005 is estimated to be a reduction of SEK 584m. New accounting standards Starting in 2005, listed companies in the EU, must adapt their consolidated accounts to the IASB standards. The new standards will have an impact on shareholders equity and profits. Lars O Grönstedt President and Group Chief Executive For further information please contact: Lars O Grönstedt, Group Chief Executive phone: +46 8-22 92 20, e-mail: lagr03@handelsbanken.se Lars Lindmark, Head of Corporate Communications phone: +46 8-701 10 36, e-mail: lali12@handelsbanken.se Lennart Francke, Head of Control and Accounting phone: +46 8-22 92 20, e-mail: lefr01@handelsbanken.se Bengt Ragnå, Head of Investor Relations phone: +46 8-701 12 16, e-mail: bera02@handelsbanken.se Svenska Handelsbanken 3

Income statement Svenska Handelsbanken Group The income statement that is presented after the business area accounts has been prepared in accordance with Finansinspektionen s directives. In order to illustrate the development of operations more clearly, the income statement is shown below with the various income categories, excluding that which is generated in the trading operation. The Net result on financial operations (equity-, interest rate- and currency-related) and trading-related income from other income categories are reported under "Trading, net". Performance-related staff costs are reported separately. The result of insurance operations has been allocated to the respective income/expense categories as shown in note 5. Participations in associated companies results are reported under "Other income". Income statement Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Net interest income 14,462 14,642-1 3,578 3,598-1 Net commission income Note 1a 6,126 5,224 17 1,623 1,456 11 Net trading income 2,608 2,222 17 811 495 64 Other income 785 204 285 196 248-21 Total income 23,981 22,292 8 6,208 5,797 7 Staff costs excl. performance-related -6,093-6,171-1 -1,515-1,524-1 Performance-related staff costs -288-185 56-73 -45 62 Other expenses -4,377-4,093 7-1,183-1,069 11 Total expenses -10,758-10,449 3-2,771-2,638 5 Profit before loan losses 13,223 11,843 12 3,437 3,159 9 Loan losses incl. change in value of repossessed property -167-492 -66-175 26 Write-downs/reversed write-downs of financial fixed assets - 199-100 - - Operating profit 13,056 11,550 13 3,262 3,185 2 Pension settlement -89-100 Taxes -3,698-3,345 11-889 -931-5 Profit for the period 9,358 8,116 15 2,373 2,254 5 Note 1a Net commission income Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Brokerage 1,099 844 30 290 198 46 Mutual funds and custody 1,209 1,004 20 312 300 4 Insurance 495 350 41 148 146 1 Payments 1,622 1,532 6 434 407 7 Lending and deposits 1,443 1,346 7 337 371-9 Other 1,408 1,198 18 392 344 14 Commission income 7,276 6,274 16 1,913 1,766 8 Commission expense -1,150-1,050 10-290 -310-6 Net commission income 6,126 5,224 17 1,623 1,456 11 Other information Goodwill and intangible assets Jan-Dec Jan-Dec Q 4 Q 3 SEK m 2004 2003 2004 2004 Opening residual value 8,489 9,183 9,011 8,237 Additional during the period 976 34 4 950 Amortisation for the period -606-581 -158-158 Foreign exchange effect -9-147 -7-18 Closing residual value 8,850 8,489 8,850 9,011 4 Svenska Handelsbanken

Quarterly performance of Svenska Handelsbanken Group Q 4 Q 3 Q 2 Q 1 Q 4 SEK m 2004 2004 2004 2004 2003 Net interest income 3,578 3,598 3,598 3,688 3,585 Net commission income 1,623 1,456 1,471 1,576 1,430 Net trading income 811 495 561 741 621 Other income 196 248 184 157-164 Total income 6,208 5,797 5,814 6,162 5,472 Staff costs, excl. performance-related -1,515-1,524-1,536-1,518-1,536 Performance-related staff costs -73-45 -59-111 -52 Other expenses -1,183-1,069-1,084-1,041-1,064 Total expenses -2,771-2,638-2,679-2,670-2,652 Profit before loan losses 3,437 3,159 3,135 3,492 2,820 Loan losses incl. change in value of repossessed property -175 26 27-45 -195 Write-downs/reversed write-downs of financial fixed assets - - - - 199 Operating profit 3,262 3,185 3,162 3,447 2,824 Pension settlement -7 Taxes -889-931 -897-981 -843 Profit for the period 2,373 2,254 2,265 2,466 1,974 Net earnings per share, SEK 3.55 3.36 3.33 3.57 2.84 Key figures for the Group Jan-Dec Jan-Dec Q 4 Q 3 2004 2003 2004 2004 Return on shareholders' equity 15.8% 14.9% 15.8% 15.5% Return on shareholders' equity, operating profit after standard tax 15.8% 15.3% 15.7% 15.7% Cost/Income (C/I ratio) - before loan losses 44.9% 46.9% 44.6% 45.5% - after loan losses 45.6% 49.1% 47.4% 45.1% Earnings per share, SEK 13.81 11.70 3.55 3.36-12-month moving total 13.81 11.70 13.81 13.10 Dividend per share, SEK ** 6.00 5.25 Adjusted equity per share, SEK 91.91 82.61 91.91 88.17 Number of shares, end of period 669,641,462 693,387,415 669,641,462 669,641,462 Number of repurchased shares, end of period 23,745,953 21,359,525 23,745,953 23,745,953 Average number of outstanding shares 677,793,928 693,387,415 669,641,462 669,641,462 Tier 1 capital, SEK m * 49,872 45,846 49,872 47,854 Risk-weighted volume, SEK m 657,708 629,767 657,708 655,412 Capital ratio* 10.0% 10.2% 10.0% 9.8% Tier 1 ratio* 7.6% 7.3% 7.6% 7.3% Average number of employees 9,150 9,258 9,207 9,399 Number of branches in Nordic countries and Great Britain, end of period 573 554 573 571 * Including profit for the period ** 2004 as recommended by the Board. Svenska Handelsbanken 5

Business areas Income statement by business area - Group Branch Markets Asset Pension & Other Elimina- Jan-Dec Jan-Dec SEK m offices Mgmt Insurance operations tions 2004 2003 Net interest income 14,727 1,689 140 11 76-6 16,637 18,362 Net commission income 3,644 1,024 827 458-15 5,938 5,043 Net result on financial operations 322-107 16 143-216 158-1,678 Other income 278 942 81 135 3,684-3,872 1,248 565 Total income 18,971 3,548 1,064 747 3,529-3,878 23,981 22,292 Total expenses -8,057-2,341-525 -597-3,116 3,878-10,758-10,449 Profit before loan losses 10,914 1,207 539 150 413 13,223 11,843 Loan losses incl. change in value of repossessed property -194 30 1-4 -167-492 Write-downs/reversed write-downs of financial fixed assets - 199 Operating profit 10,720 1,237 540 150 409 13,056 11,550 Return on equity, % 15.6 19.5 21.3 12.0 15.8 14.9 Average number of employees 5,895 1,062 308 187 1,698 9,150 9,258 Internal income and expenses are included in the respective item on the income statement. Internal income consists of payment for services rendered according to the cost price principle. Expenses also include the distribution of costs made internally within the Group for services from business support operations. Handelsbanken Liv is included in the Pension and Insurance business area. The Other operations business area includes Treasury and the Central Head Office departments. It also includes capital gains/losses, dividends, and income and expenses that are not attributable to a specific business area. Return on shareholders' equity for the business areas is computed after standard tax while for the whole Group, it is computed after full tax, and for 2003, also after settlement of pensions. The shareholders' equity on which calculation of return on equity is based, meets the requirements of the Capital Adequacy Act. The results of insurance operations and associated companies are reported as explained on page 4. The business area comparative figures for 2003 have not been restated as a consequence of the new accounting principles for employee benefits. 6 Svenska Handelsbanken

Branch office operations Branch office operations comprise eleven regional banks, Handelsbanken Finans and Stadshypotek Bank. Seven of the regional banks are in Sweden and the remaining four are located in Great Britain, Denmark, Finland and Norway. At Handelsbanken, the branches are the base of all operations. This is where services for all customers, even the very largest corporations, are co-ordinated. The regional banks are responsible for profitability and pursue the same goals everywhere to deliver universal banking services with a higher service level and at lower cost than comparable banks in the Nordic area. Handelsbanken Finans offers a full range of finance company services in the four Nordic countries and is currently expanding its operations in Great Britain. Handelsbanken Finans works through the Bank s branches and in financing collaborations with retailers and vendors. Stadshypotek Bank is one of Sweden s leading Internet and telephone banks. It operates under its own brand name and has a separate range of products. Income statement Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Net interest income 14,727 15,467-5 3,611 3,593 1 Net commissionincome 3,644 3,166 15 942 870 8 Net result on financial operations 322-587 129 104 24 Other income 278 196 42 80 64 25 Total income 18,971 18,242 4 4,762 4,631 3 Total expenses -8,057-7,809 3-2,086-1,982 5 Profit before loan losses 10,914 10,433 5 2,676 2,649 1 Loan losses incl. change in value of repossessed property -194-495 -61-173 22 Operating profit 10,720 9,938 8 2,503 2,671-6 Return on equity, % 15.6 17.5 14.4 15.8 Average number of employees 5,895 6,019-2 5,913 6,120-3 Performance Operating profit increased by 8% to SEK 10,720m (9,938). Income increased by 4% and expenses by 3%. Loan losses were lower than the previous year. Net interest income decreased, while other categories of income showed a positive performance. Net interest income declined as a consequence of weaker deposit margins in the Nordic region as a whole. Expenses increased by SEK 248m, of which just over SEK 65m stemmed from the opening of 19 new branches outside Sweden in 2004. Branch office operations in Sweden Branch office operations in Sweden comprise seven regional banks with a total of 453 branches. One new branch was opened in Knivsta, between Stockholm and Uppsala. Profits increased by 4% to SEK 9,420m (9,064). Income increased by 3% and expenses by 4%. Loan losses decreased, and thus the total increase in costs was limited to 2%. Business volumes increased mainly for mortgages to households, but deposit volumes also rose. In general, deposit margins weakened. The average volume of loans (excluding lending to the National Debt Office) increased by SEK 10bn to SEK 682bn (672), a rise of just over 1%. Lending to households increased by 6% to SEK 305bn (288), while corporate lending decreased by SEK 7bn to SEK 377bn (384). Mortgage lending rose by SEK 23bn to SEK 399bn (376). SEK 258bn (240) of this was lending to households, while SEK 141bn (136) was to companies. Lending other than mortgages declined by SEK 13bn to SEK 283bn (296). SEK 47bn (48) of this was to households, while SEK 236bn (248) was to companies. Deposits climbed to SEK 213bn (204). SEK 87bn (83) of this was from households, while SEK 126bn (121) was from companies. The Bank s market share of the total lending to non-financial companies was almost unchanged. Its share of mortgage lending was almost 29% for loans to households and just under 35% for loans to non-financial companies. The market for mortgage lending to companies declined somewhat, but Stadshypotek s lending increased. The mortgage market particularly to households was subject to fierce competition, slightly lower margins, and generally higher activity levels. During the first half of the year, Stadshypotek s market share of lending to households decreased, but from the late summer onwards, its share of new loans was almost as large as the Bank s share of the overall market. Svenska Handelsbanken 7

Branch office operations in Sweden Jan-Dec Jan-Dec Change SEK m 2004 2003 % Income 14,774 14,332 3 Expenses -5,338-5,117 4 Loan losses -16-151 -89 Operating profit 9,420 9,064 4 Branch office operations outside Sweden Branch office operations outside Sweden consist of the regional banks in Great Britain, Denmark, Finland and Norway. These encompass 120 branches, 19 of which were opened in 2004. Profits increased by 37% to SEK 1,193m (872). Income and costs both rose by 7%, while loan losses were halved. The C/I ratio was 62.8% (70.8). Branch office operations outside Sweden Jan-Dec Jan-Dec Change SEK m 2004 2003 % Income 3,203 2,984 7 Expenses -1,784-1,669 7 Loan losses -226-443 -49 Operating profit 1,193 872 37 Great Britain In Great Britain, profits before loan losses decreased somewhat. This was due mainly to increased costs, resulting from the rapid expansion of the operation. The number of branches increased by 50%, and as a consequence, the number of employees climbed by just over 35% to 184. The Bank had 15 branches, including the five newly-opened branches in Hull, Norwich, Guildford, Stoke-on-Trent and Chelmsford. All branches that were opened before 2004 achieved break-even on a monthly basis during the year. The number of private customers increased by 30%, and lending to households climbed by over 60% to GBP 204m (125). Average corporate lending totalled GBP 953m (898), an increase of just over 6%. The average volume of deposits increased to GBP 671m (562), an increase of just over 19%, with deposits from companies rising by almost 19% and deposits from households increasing by 25%. Denmark Interest rate levels in Denmark were historically low, which put pressure on deposit margins. At the same time, competition for lending volumes stiffened, with an accompanying squeeze on prices. Handelsbanken s business volumes increased, and costs continued to fall. This meant that for the third year running the C/I ratio improved and underlying profitability rose. The average volume of lending increased by 16% to DKK 21bn. Private lending climbed by 42% to DKK 7bn, while corporate lending rose by 6%. An important factor behind the increase in lending to households was the continuing high demand for prioritetslån (priority loans), Handelsbanken s mortgage loan product on the Danish market. Private deposits rose by 18% to almost DKK 5bn (4). Overall, deposits amounted to DKK 14bn (13). Three new branches were opened: one on Amager, one in Roskilde and one in Fredericia. The branch network comprised 36 branches. One of the branches In Copenhagen was relocated to a more attractive market area. Finland In Finland, operating profits increased, mainly due to improved net interest income and higher commission income. Expenses were higher as a result of five new branches being opened. In Finland too, the market was subject to intense competition and squeezed prices. Despite this, Handelsbanken s net interest income was 11% higher. Business volumes grew: lending by 13% and deposits by 10%. Household deposits and lending both increased by 22%. Corporate lending rose by 11%. The number of active customers was up 12%. The Bank continued to have a very strong position in the Finnish corporate market. Five new branches were opened: in Tampere, Kerava, Hakaniemi (the Bank s seventh branch in Helsinki) Imatra and Rauma. The Bank had a total of 35 branches in Finland, seven of them having opened in the last two years. Only the two most recently opened had not reached break-even by year-end. Handelsbanken was once again the Bank with the most satisfied private customers in Finland. The survey reported an index value for Handelsbanken of 83.3, which was higher than the previous year. The average for the Finnish market was 75.7, and the largest bank in Finland was well below the average. Norway Also in Norway, operating profits rose and were the highest ever. The increase was mainly due to higher lending volumes. The largest increase was for household credits, mainly due to rising house prices. Corporate lending also went up towards the end of the year. Lending grew by 22% to households and by 11% to companies. Deposits increased by 14%. The average volume of lending was NOK 56bn and deposits were NOK 21bn. This means that Handelsbanken continued to boost its market shares in Norway. Six new branches were started, two of them in Oslo and one each in Sandvika, Sandefjord, Skien and Arendal. The Bank had a total of 34 branches. Handelsbanken Finans Profits increased by 14%, to SEK 499m (436). Income rose by 7% till SEK 1,008m (938). Costs rose by 2%. The already low credit losses fell even more to SEK 8m (10). Average credit volumes rose by 7% to SEK 37bn (34). New sales increased to SEK 17bn (16), also 7% higher. 8 Svenska Handelsbanken

Credit volumes in leasing and conditional sales increased to over SEK 23bn, a rise of some 10%. The market share for leasing increased to 22.0% (21.3). In Finland Handelsbanken Finans is one of the major players, and a series of large transactions were carried out. In Denmark the volume of leasing agreements rose by 200%, and in Norway the volume doubled. In Great Britain, where operations have only recently been started up, credit volumes totalled SEK 230m. Handelsbanken Finans and Stadshypotek Bank have started to co-ordinate their Swedish consumer-oriented operations with the aim of increasing sales to private individuals. A new business area was created, called Handelsbanken Finans Direct Sales. Handelsbanken Finans Jan-Dec Jan-Dec Change SEK m 2004 2003 % Income 1,008 938 7 Expenses -501-492 2 Loan losses -8-10 -20 Operating profit 499 436 14 Stadshypotek Bank Profits were SEK 18m (22), a decrease of SEK 4m. The decrease was mainly due to restructuring costs related to the integration of Stadshypotek Bank and Handelsbanken Finans. Income fell by SEK 1m, mainly as a result of reduced deposit volumes. Commission income increased. Stadshypotek Bank launched a new internet bank, including a number of new functions. Two new products were launched: equity-linked bonds and private loans. Private loans are offered in collaboration with Handelsbanken Finans. Customers can apply for loans without collateral on the telephone or via the internet. The maximum amount is SEK 100,000 and the customer receives an immediate response to the application. Card operations performed well and the number of cards and card purchases rose by approximately 10%. Stadshypotek Bank Jan-Dec Jan-Dec Change SEK m 2004 2003 % Income 130 131-1 Expenses -112-109 3 Loan losses 0 0 0 Operating profit 18 22-18 Svenska Handelsbanken 9

Handelsbanken Markets Handelsbanken Markets operations are organised into two business areas: Handelsbanken Capital Markets and Handelsbanken Markets International. Capital Markets comprises Corporate Finance including Debt Capital Markets, equities trading, foreign exchange and fixed income trading and structured products. It also includes support to the branch office operations for products in these areas. Markets International comprises banking operations outside the Nordic countries and Great Britain, and Trade Finance. There are almost 1,100 employees in 16 countries. Apart from these two business areas, there are also back office, risk control and administrative departments. Income statement Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Net interest income 1,689 2,667-37 373 399-7 Net commission income 1024 779 31 294 200 47 Net result on financial operations -107-1,124 90 203 29 Other income 942 874 8 153 132 16 Total income 3,548 3,196 11 1,023 760 35 Total expenses -2,341-2,189 7-628 -534 18 Profit before loan losses 1,207 1,007 20 395 226 75 Loan losses incl. change in value of repossessed property 30 2 1 4-75 Operating profit 1,237 1,009 23 396 230 72 Return on equity, % 19.5 16.1 24.9 14.9 Average number of employees 1,062 1,063 0 1,070 1,069 0 Performance Operating profits went up by 23% to SEK 1,237m (1,009). Capital Markets was responsible for the whole increase with all business areas increasing their earnings. Income was SEK 3,548m (3,196), an increase of 11%. Expenses rose by 7% to SEK 2,341m (2,189). Adjusted for performance-related remuneration and higher costs for new international units, expenses were in general unchanged. Recoveries exceeded loan losses. Handelsbanken Capital Markets Handelsbanken Capital Markets profits were SEK 913m (565), an increase of 62%. Income increased by 21% and expenses by 6%. The number of employees was 505 (492). Brokerage income for equities trading rose by 38%. This was largely the result of an improved stock market and an improved market position in institutional equities trading. Fixed income and foreign exchange trading also performed well. A broader international customer base made up for lower market volatility. During the year, some SEK 6.4bn worth of equity-linked bonds were issued to the general public, giving the Bank a market share of 31%. Corporate Finance and Debt Capital Markets performed well, with an increase in profits of over 300%. For the first time, Handelsbanken was number one in Sweden for advisory services in merger and acquisition transactions. Handelsbanken Capital Markets Jan-Dec Jan-Dec Change SEK m 2004 2003 % Income 2,617 2,167 21 Expenses -1,704-1,602 6 Loan losses - - - Operating profit 913 565 62 Handelsbanken Markets International Operating profits were SEK 139m (138). The branches in Poland and Asia reported significantly higher profits, while the New York branch and other branches in Europe reported lower profits. In the US, however, the decrease was entirely due to exchange rate fluctuations. Operations in Sweden reported unchanged earnings, comprising lower income from clearing operations and higher commissions on export documentary credits and project finance. The number of employees was 320. Of this number, 70% were outside Sweden. 10 Svenska Handelsbanken

The Bank s subsidiary in Poland was converted into a branch. The conversion offers several benefits to customers such as the absence of local restrictions on the size of loans to individual customers and the fact that the branch has the same rating as Handelsbanken. This means that Handelsbanken has the highest rating of any bank in Poland. The Paris branch started financing house and apartment purchases in France for Nordic and British customers. In the first half of 2005, the representative office in Moscow will be converted into a subsidiary and later in the year a branch will be opened in Shanghai. Handelsbanken Markets International Jan-Dec Jan-Dec Change SEK m 2004 2003 % Income 482 503-4 Expenses -373-367 2 Loan losses 30 2 Operating profit 139 138 1 Svenska Handelsbanken 11

Handelsbanken Asset Management Handelsbanken Asset Management comprises Fund Management, Discretionary Management and Nordic institutional custody services. Apart from services aimed at companies, institutions and private individuals, Asset Management provides support to the branch offices regarding investments, portfolio systems and accounting for foundations. Operations are conducted in four Nordic countries and also in Luxembourg, Switzerland, France and Spain. Income statement Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Net interest income 140 157-11 34 32 6 Net commission income 827 734 13 214 202 6 Net result on financial operations 16 13 23-1 5 Other income 81 64 27 24 19 26 Total income 1,064 968 10 271 258 5 Total expenses -525-507 4-137 -128 7 Profit before loan losses 539 461 17 134 130 3 Loan losses incl. change in value of repossessed property 1 1 0 1 - Operating profit 540 462 17 135 130 4 Return on equity % 21.3 20.0 21.8 21.5 Average number of employees 308 303 2 310 320-3 Performance Operating profits rose by 17% to SEK 540m (462). Income went up by 10%. The volume of assets managed by Handelsbanken Asset Management grew to SEK 283bn (253). The total volume of assets under management by the Group was SEK 332bn (295). Mutual fund management The Bank s fund management company managed SEK 137bn (112) in a total of 83 mutual funds (78). The increase in fund volume was due to new savings (SEK 10.7bn), the acquisition of XACT Fonder AB (SEK 5.6bn) and rising share prices. Some 45% (45) of the assets under management were invested in equity funds, 28% (29) in fixed income funds, 2% (3) in hedge funds and 25% (23) in mixed funds. Average assets under management, on which management commission is based, rose by 26% and were SEK 126bn (100). New savings in the Swedish mutual fund market were SEK 55.7bn (69.6). New savings in Handelsbanken were SEK 10.7bn (11.9), corresponding to a market share of 19.2% (17.1). With a total market share of 13.5% (12.7), Handelsbanken was the only one of the major players to increase its share of total holdings in mutual funds in Sweden. Discretionary management Assets under management were SEK 160bn (148), of which 30% (27) were exposed to equity markets and the rest to fixed income markets. SEK 23bn (15) of the volume was invested in Handelsbanken s mutual funds. New sales added SEK 6.8bn to the managed volume. In June, Handelsbanken acquired the fund management company XACT Fonder AB, the only fund management company which issues ETFs exchange traded funds. The simplicity of the product and its excellent liquidity, with trading in real time have led to substantial growth in the international ETF market. In Sweden, where the market is new, the assets managed by XACT were SEK 6.5bn. Asset management outside the Nordic countries and Great Britain Outside the Nordic countries and Great Britain, Asset Management is conducted in the Bank s subsidiary in Luxembourg, which has a branch in Zurich. Customers are mainly private individuals living outside the Nordic countries. Assets managed were SEK 9bn (8), Nordic institutional custody services Income was higher due to an increase both in the value of custody accounts and the number of transactions by 17% and 37% respectively. The value of custody accounts rose to SEK 590bn. In the industry s major quality survey performed by Global Custodian magazine, Handelsbanken remained the only Swedish bank to be top-rated. During the year, in collaboration with a major global custody bank, Handelsbanken developed a completely new service which was launched on the Norwegian and Swedish markets. 12 Svenska Handelsbanken

Handelsbanken Pension and Insurance The Handelsbanken Pension and Insurance business area comprises Handelsbanken Liv and SPP. Together these companies are one of the market leaders, with a complete range of life insurance products for occupational and private pensions, and asset protection schemes for companies, organisations and private individuals. The companies sell their services via Handelsbanken s branch offices, direct sales and independent brokers. The traditional life insurance operations of Handelsbanken Liv are demutualised and the company conducts its unit-linked operations and insurance with guaranteed return within the same company. The insurance operations in SPP are run on mutual principles and are thus not included in the Handelsbanken Group s consolidated accounts. Income statement The income statement refers to Handelsbanken Liv only Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Net interest income 11 31-65 -2-3 -33 Net commission income 458 334 37 127 139-9 Net result on financial operations 143 140 2 116-36 Other income 135-171 73 43 70 Total income 747 334 124 314 143 120 Total expenses -597-414 44-212 -163 30 Profit before loan losses 150-80 102-20 Loan losses incl. change in value of repossessed property Operating profit 150-80 102-20 Return on equity, % 12.0 21.8 Average number of employees 187 192-3 187 190-2 Handelsbanken Liv Profits were SEK 150m (-80). The company s acquisition of SPP Liv Fondförsäkring AB on 1 July 2004 had a negative impact of SEK 75m. The comparison with the previous year is affected by an allocation of SEK 229m made in 2003 in order for the company to retain, for the time being, pensions being disbursed at an unchanged level. The company s result consists of four components: administration result, risk result, financial result and the result of the company investing its equity. The administration result fell to SEK 6m (21) due to the acquisition of SPP Liv Fondförsäkring AB and the sales campaign for collective agreement occupational pensions which started in the autumn. These reduced this part of the result by SEK 70m. The risk result was SEK 44m (-21), with the increase mainly due to a better outcome on claims and increased premiums. The financial result was SEK 135m (-95) and the return on the company s equity was SEK 23m (15). The return was reduced by goodwill amortisation of SEK 41m (16) and interest on the subordinated loan issued during the year. Interest expense on the loans was SEK 24m (0). Total return on policyholders funds was 6.83% (6.27). When the total return exceeds the guaranteed interest rate, the company receives 10% of the return. The policyholders in Handelsbanken Liv thus increased the value of their funds by 6.15%, which was the highest in the Swedish insurance sector. Premiums written increased to SEK 7.2bn (4.9). Premium income acquired from SPP Liv Fondförsäkring represented SEK 1.3bn of the increase. Traditional life insurance represented SEK 3.3bn (2.7) and unit-linked insurance SEK 3.9bn (2.2). The assets managed were SEK 57bn (37), of which SEK 24bn (21) was invested in guaranteed rate policies and SEK 33bn (16) in unit-linked policies. The acquisition of SPP Liv Fondförsäkring contributed SEK 15bn. The available solvency margin was SEK 2,000m. This should be related to the required solvency margin which was SEK 1,441m, implying a solvency ratio of 1.39. Handelsbanken Liv s target solvency ratio is 1.3. Handelsbanken Liv, investment assets Jan-Dec Jan-Dec Average exposure % 2004 2003 Equities 28 17 Fixed income assets 64 74 Property 7 7 Other 1 2 Total 100 100 Svenska Handelsbanken 13

Handelsbanken Liv, breakdown of results and key figures Jan-Dec Jan-Dec 2004 2003 Administration result, SEK m -6 21 Risk result, SEK m 44-21 Financial result, SEK m 135-95 Return on equity, SEK m -23 15 Operating profit, SEK m 150-80 Total return, % 6.83 6.27 Assets managed, SEK bn, end of period 57 37 Solvency ratio, end of period 1.39 1.27 Assets managed were SEK 79bn (87), all of which was traditional insurance. The figures for the previous year were SEK 75bn for traditional life insurance and SEK 12bn for unit-linked insurance. The available solvency margin was SEK 4,386m (3,827) and was thus SEK 1,289m more than the required solvency margin. The solvency ratio improved to 1.42 (1.28). The collective consolidation ratio, that is the market value of SPP s assets in relation to guaranteed and non-guaranteed commitments to policyholders, improved to 101% (100). SPP SPP Livförsäkring AB is run on mutual principles and is therefore not included in the Handelsbanken Group s consolidated accounts. SPP s profits were SEK 2,130m (1,608), which was an increase of 32%. This result includes capital gains of some SEK 900m due to the sale of the subsidiary SPP Liv Fondförsäkring AB. Investment income in the traditional life insurance operations was 4,553m (3,829). Total return was 6.0% (5.3). Non-recurring changes in provisions had an impact of SEK -350m (270). Operating expenses in the insurance operations decreased by 24% to SEK 881m (1,160). This decrease is mainly due to lower IT costs, lower costs of reinsurance and lower costs for staff and consultants. The SPP Group s expense ratio was 13.3% (12.7). Premiums written fell to SEK 6.6bn (9.2), of which SEK 4.8bn (6.0) represented traditional life insurance. The decrease was mainly due to premiums written from SPP Liv Fondförsäkring AB not being included in the second half of the year and also a fall in one-off early retirement pensions. SPP, investment assets Jan-Dec Jan-Dec Average exposure % 2004 2003 Equities 17 8 Fixed income assets 80 88 Property 0 0 Other 3 4 Total 100 100 SPP, key figures Jan-Dec Jan-Dec 2004 2003 Profit, SEK m 2,130 1,608 Total return, % 5.99 5.31 Assets managed, SEK bn, end of period 79 87 Solvency ratio, end of period 1.42 1.28 Collective consolidation ratio, % end of period 101 100 14 Svenska Handelsbanken

Income statement Svenska Handelsbanken Group In accordance with Finansinspektionen s directives Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Interest income 44,160 47,837-8 11,457 11,310 1 Interest expense -27,532-29,492-7 -7,417-7,220 3 Net interest income 16,628 18,345-9 4,040 4,090-1 Dividends received 680 491 38 34 12 183 Commission income 6,626 5,800 14 1,724 1,582 9 Commission expense -1,146-1,093 5-268 -318-16 Net commission income Note 1 5,480 4,707 16 1,456 1,264 15 Net result on financial operations Note 2 33-1,827 266 88 202 Other operating income 358 243 47 76 187-59 Total income 23,179 21,959 6 5,872 5,641 4 General administrative expenses - Staff costs -6,248-6,216 1-1,558-1,536 1 - Other expenses Note 3-2,996-2,855 5-824 -692 19 Depreciation and write-downs in value of tangible and intangible fixed assets -770-807 -5-142 -210-32 Total expenses -10,014-9,878 1-2,524-2,438 4 Profit before loan losses 13,165 12,081 9 3,348 3,203 5 Net loan losses Note 4-163 -507-68 -171 26 Change in value of repossessed property -4 15-4 - Reversed write-downs of financial fixed assets - 199-100 - - Result from participations in associated companies 82 29 183 48 14 243 Result of banking operations 13,080 11,817 11 3,221 3,243-1 Result of insurance operations Note 5-24 -267 91 41-58 Operating profit 13,056 11,550 13 3,262 3,185 2 Pension settlement -89-100 Taxes -3,698-3,345 11-889 -931-5 Profit for the period 9,358 8,116 15 2,373 2,254 5 Net earnings per share, SEK 13.81 11.70 3.55 3.36 Notes to income statement in accordance with Finansinspektionen s directives Note 1 Net commission income Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Payments 1,622 1,532 6 434 407 7 Lending 1,018 905 12 229 267-14 Deposits 66 79-16 22 10 120 Guarantees 359 361-1 86 94-9 Securities 2,145 1,719 25 558 458 22 Other 1,416 1,204 18 395 346 14 Commission income 6,626 5,800 14 1,724 1,582 9 Commission expense -1,146-1,093 5-268 -318-16 Net commission income 5,480 4,707 16 1,456 1,264 15 Svenska Handelsbanken 15

Notes to income statement in accordance with Finansinspektionen s directives (cont.) Note 2 Net result on financial operations Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Shares and participations 313-176 334-102 Interest-bearing securities 1,160 677 71 292 401-27 Realised profit 1,473 501 194 626 299 109 Shares and participations -255 34-281 177 Interest-bearing securities 713 831-14 541-86 Unrealised changes in value 458 865-47 260 91 186 Changes in exchange rates -1,898-3,193 41-620 -302-105 Net result on financial operations 33-1,827 266 88 202 Note 3 Other administrative expenses Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Property and premises -835-867 -4-219 -192 14 External IT costs -648-553 17-185 -173 7 Communication -386-392 -2-96 -90 7 Travel and marketing -273-252 8-91 -54 69 Purchased services -450-383 17-122 -116 5 Supplies -189-181 4-58 -39 49 Other expenses -215-227 -5-53 -28 89 Other administrative expenses -2,996-2,855 5-824 -692 19 16 Svenska Handelsbanken

Notes to income statement in accordance with Finansinspektionen s directives (cont.) Note 4 Loan losses Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % A. Specific provision for individually assessed loan receivables: The period's write-off for actual loan losses -976-1,269-23 -243-327 -26 Writeback of previous provisions for probable loan losses reported as actual losses in the period's accounts 772 1,097-30 160 305-48 The period's provision for probable loan losses -820-1,278-36 -364-96 279 Paid in from actual losses in previous years 391 454-14 72 105-31 Writeback of provisions for probable loan losses which are no longer necessary 472 505-7 140 41 241 General provision for probable but non-identified loan losses - - 60 - Net expense for the period for individually assessed loan receivables -161-491 -67-175 28 B. Provision by group for individually assessed loan receivables: Allocation to/dissolution of provision by group - - - - C. Collectively assessed homogenous groups of loan receivables with limited value and similar credit risk: The period's write-off for actual loan losses -24-49 -51 2-10 Paid in from actual losses in previous years 21 26-19 7 3 133 Allocation to/dissolution of provision for loan losses 1 7-86 -5 5 Net expense for the period for collectively assessed homogenous loan receivables -2-16 -88 4-2 D. Transfer risk: Allocation to/dissolution of provision for transfer risks - - - - Net expense for the period for loan losses (A+B+C+D) -163-507 -68-171 26 According to Finansinspektionen s accounting directives, receivables which individually have been assessed as being posted at the correct value must also be assessed as to whether there may be a requirement for making a provision for probable loan losses for these receivables valued as a group. Over and above the risk assessment of individual loan receivables made quarterly by all units with customer and credit responsibility in the Handelsbanken Group, no such requirement for provision for the receivables as a group has been identified. Svenska Handelsbanken 17

Notes to income statement in accordance with Finansinspektionen s directives (cont.) Note 5 Result of insurance operations Jan-Dec Jan-Dec Change Q 4 Q 3 Change SEK m 2004 2003 % 2004 2004 % Net interest income 9 17-47 -2-2 0 Dividends received 7 3 133 0 4-100 Net commission income 458 336 36 126 139-9 Net result on financial operations 125 149-16 97-38 Other operating income 121-198 67 39 72 Total income 720 307 135 288 142 103 Staff costs -133-140 -5-30 -33-9 Other expenses -431-276 56-166 -116 43 Depreciation and write-down in value of tangible and intangible fixed assets -180-155 16-51 -51 0 Total expenses -744-571 30-247 -200 24 Result from participations in associated companies - -3 100 - - Result of insurance operations -24-267 91 41-58 Result of insurance operations in accordance with the Swedish Annual Accounts Act for Insurance Companies Jan-Dec Jan-Dec SEK m 2004 2003 Technical account - insurance operations Premiums written 7,206 4,934 Investment income transferred from financial operations 1 1 Investment income 1,291 1,468 Unrealised gains on investments 560 554 Change in value of investment assets for which the policyholder bears the investment risk 1,122 1,801 Other technical income - - Insurance claims -3,688-3,214 Change in insurance provisions -5,461-4,461 Operating expenses -462-297 Investment charges -62-239 Unrealised losses on investments 0-340 Change in value of investments where the policyholder bears the investment risk - 0 Result from participations in associated companies -3 Other technical expenses -214-203 Investment income transferred to financial operations -9-6 Result on technical account - insurance operations 284-5 Non-technical account Investment income 47 93 Unrealised gains on investments 34 11 Investment income transferred from insurance operations 9 6 Investment charges -57-54 Unrealised losses on investments - -18 Investment income transferred to the technical account -1-1 Yield tax -340-299 Profit before company taxes -24-267 Taxes 23 35 Profit for the period -1-232 18 Svenska Handelsbanken

Balance sheet Svenska Handelsbanken Group 31 Dec 30 Sep 30 Jun 31 Dec SEK m 2004 2004 2004 2003 Lending to the general public Note 1 861,250 857,058 853,932 823,142 Lending to credit institutions 108,906 117,083 110,395 115,273 Interest-bearing securities - Financial fixed assets 507 508 509 7,675 - Financial current assets 154,634 157,454 159,714 119,634 Other assets 223,793 207,442 197,601 194,730 Total assets 1,349,090 1,339,545 1,322,151 1,260,454 Deposits and funding from the general public 320,873 313,991 312,629 303,326 Liabilities to credit institutions 258,995 222,799 206,919 202,689 Issued securities etc 441,614 490,145 507,816 458,701 Subordinated liabilities 25,182 26,015 27,072 26,732 Other liabilities 241,317 227,835 211,172 212,171 Shareholders' equity Note 2 61,109 58,760 56,543 56,835 Total liabilities and shareholders' equity 1,349,090 1,339,545 1,322,151 1,260,454 Notes to the balance sheet Note 1 Lending to the general public 31 Dec 30 Sep 30 Jun 31 Dec SEK m 2004 2004 2004 2003 SEK lending - to households 317,146 309,351 302,867 293,865 - to companies etc * 342,984 344,737 347,874 336,463 660,130 654,088 650,741 630,328 Foreign currency lending - to households 58,665 55,053 53,192 47,345 - to companies etc * 144,678 150,138 152,482 148,118 203,343 205,191 205,674 195,463 Provision for probable loan losses -2,223-2,221-2,483-2,649 Total lending to the general public 861,250 857,058 853,932 823,142 * of which National Debt Office 1,592 249 3,309 70 Lending to the general public by sector Lending before Provisions for Lending after deduction of probable deduction of SEK m provisions loan losses provisions Private individuals 375,811-357 375,454 - Of which mortgage loans 270,517-49 270,468 Property management 301,274-674 300,600 - Of which mortgage loans 142,964-199 142,765 Construction 12,122-90 12,032 Retail, hotels and restaurants 36,550-423 36,127 Manufacturing 38,958-374 38,584 Transport, communication 11,927-78 11,849 Municipalities 8,904 0 8,904 Other 77,927-227 77,700 Total lending to the general public 863,473-2,223 861,250 Svenska Handelsbanken 19

Balance sheet notes (cont.) Bad debts and/or non-performing loans by sector Bad debts Non-performing Of which loans not included SEK m Gross Provisions Net* non-performing in bad debts Private individuals 898-474 424 309 551 Property management 1,640-733 907 202 211 Construction 167-64 103 101 1 Retail, hotels and restaurants 428-274 154 133 41 Manufacturing 490-282 208 142 27 Transport, communication 99-50 49 49 6 Other 470-363 107 5 72 Total 4,192-2,240 1,952 941 909 * Book value after deduction of provisions. Note 2 Change in shareholders' equity Jan-Dec Jan-Sep Jan-Jun Full year SEK m 2004 2004 2004 2003 Opening shareholders' equity 56,835 56,835 56,835 52,192 Effect of changed accounting principles 1,966 1,966 1,966 - Dividend -3,602-3,602-3,602-3,294 Buyback of own shares -3,426-3,426-3,426 - Change of foreign currency component -22 2 39-179 Profit for the period 9,358 6,985 4,731 8,116 Closing shareholders' equity 61,109 58,760 56,543 56,835 Other information The accounting follows the regulations of the Annual Accounts Act for Credit Institutions and Securities Companies (ÅRKL), the Swedish Financial Accounting Standards Council s recommendations, and the directives issued by Finansinspektionen (the Swedish Financial Supervisory Authority, FFFS 2002:22). Some minor reclassifications have been made in the balance sheet and the income statement. The comparative figures have been restated. The same accounting principles are applied in the interim report as in the latest annual report with the exception of reporting employee benefits. The implementation of the Swedish Financial Accounting Standards Council's recommendation RR29 Employee benefits (IAS19) means that pension costs are calculated in a different way than previously and that assets and liabilities relating to defined benefit plans are reported directly on the balance sheet. In accordance with the recommendation, the changed accounting for pensions applies to future accounts except that the opening balance must be restated. The changed pensions accounting has affected Other assets, Provision for deferred tax and Profit brought forward. In the income statement, the operating profit is affected by the net amount of anticipated yield on investment assets, interest on the pension liability at the beginning of the year and pension rights earned during the year. Previously a calculated cost and premiums to life insurance companies were reported as operating expenses. Reversal of the calculated cost, pension disbursements and compensation from pension foundations were previously reported under appropriations. Employee benefits in the form of low-interest loans are now reported gross as interest income and staff costs. Previously these were reported as non-received interest income. The comparative figures have been restated. Further information is provided under New method of reporting employee benefits. Cash flow statement Jan-Dec Jan-Dec SEK m 2004 2003 Cash flow on operating activities 7,483 3,882 Cash flow on investing activities -205-520 Cash flow on financing activities -8,576-3,363 Cash flow for the period -1,298-1 Liquid funds at beginning of period 7,640 8,166 Cash flow for the period -1,298-1 Exchange rate difference on liquid funds 54-525 Liquid funds at end of period 6,396 7,640 20 Svenska Handelsbanken