Handelsbanken January September 2018 24 October 2018 1
Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Average annual growth in equity Including dividends* SEK/share 200 Adjusted equity per share Accumulated dividends since 2008 175 150 125 100 75 50 25 0 2 * Dividends reinvested in ROE per quarter CAGR = Compounded annual growth rate
Summary January September 2018 Continued growth in all home markets The previously announced strategic initiatives imply measures generating improved efficiency corresponding to at least 1,600 full time equivalents up to the end of 2022 Return on equity increased to 13.2% (12.7) Operating profit increased by 4% to SEK 16,725m (16,028) The period s profit after tax increased by 8% to SEK 13,341m (12,340) Income increased by 7% to SEK 32,687m (30,522). Adjusted for non-recurring items, income rose by 4% Net interest income grew by 6% to SEK 23,414m (21,989) Net fee and commission income grew by 6% to SEK 7,637m (7,217) Total assets under management increased by 12% to SEK 670bn (599), the highest level ever The C/I ratio rose to 47.0% (45.6) The loan loss ratio pursuant to IFRS 9 was 0.04% The common equity tier 1 ratio increased to 21.7% (23.6) and the total capital ratio was 27.1% (28.5) Handelsbanken had the highest customer satisfaction of the large banks in Sweden according to Svenskt Kvalitetsindex and the distance increased to the other large banks. Also on the other home markets, Handelsbanken had more satisfied private and corporate customers than the industry average 3
Income statement, January September SEK m Jan-Sep 2018 Jan-Sep 2017 Change Net interest income 23,414 21,989 6% Net fee and commission income 7,636 7,217 6% Net gains/losses on financial transactions 605 1,107-45% Risk result - insurance 66 108-39% Other income 966 101 Total income 32,687 30,522 7% Staff costs -10,001-9,294 8% Other expenses -5,365-4,612 16% Total expenses -15,366-13,906 10% Profit before loan losses 17,321 16,616 4% Net loan losses -605-599 1% Gains/losses on disposal of property, equipment and intangible assets 9 11-18% Operating profit 16,725 16,028 4% Taxes -3,384-3,688-8% Net profit from discontinued operations - - Profit for the period 13,341 12,340 8% SEK +1.1bn lending volume impact SEK +0.4bn deposit impact SEK -0.6bn mandatory government fee impact 3% of increase: UK + NL* 2% of increase: Development 1% of increase: Company formation 2% of increase: Currency effect 4 * Adjusted for company formation and currency
Income statement, Q3 SEK m Q3 2018 Q2 2018 Change Q3 2017 Change Net interest income 7,862 7,904-1% 7,587 4% Net fee and commission income 2,624 2,551 3% 2,355 11% Net gains/losses on financial transactions 186 290-36% 243-23% Risk result - insurance 10 15-33% 19-47% Divestment of shares in UC in Q2 Other income 46 875-95% 44 5% (SEK 837m) Total income 10,728 11,635-8% 10,248 5% Staff costs -3,421-3,363 2% -3,134 9% Other expenses -1,735-1,833-5% -1,477 17% Total expenses -5,156-5,196-1% -4,611 12% Profit before loan losses 5,572 6,439-13% 5,637-1% Net loan losses -230-222 4% -217 6% Gains/losses on disposal of property, 2 3-33% 4-50% equipment and intangible assets -1% adjusted for the Operating profit 5,344 6,220-14% 5,424-1% divestment of shares in UC Taxes -1,238-989 25% -1,251-1% Net profit from discontinued operations - - - Profit for the period 4,106 5,231-22% 4,173-2% 5
Increasing contribution from growth markets SEK m 9,000 Net interest income 8,000 7,000 6,000 Fee to the Swedish resolution fund Handelsbanken International and other Other home markets 5,000 4,000 3,000 UK and the Netherlands Sweden 2,000 1,000 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 6
Strong growth in net fee and commission income in the Group Net fee and commission income Net fee and commission income Q3 2016 Q3 2018 SEK m 2,700 SEK m 2,700 2,600 2,600 65 68 28 2,500 2,500 2,400 2,400 334 2,300 2,624 2,300 2,624 2,200 2,200 2,100 2,259 2,100 2,259 2,000 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 2,000 7
Cost development Total expenses* SEK bn 25 Company formation UK 20 15 10 19.2 18.3 18.4 1.3 1.4 1.8 3.1 3.3 3.4 14.1 1.2 2.5 15.5 1.5 2.9 Foreign Currency currency effects Subsidiarisation Company formation in UK UK Development costs** costs** Development 5 13.9 13.8 13.9 10.4 10.6 UK and the Netherlands*** Other Other recurring running costs costs Growth 0 2015 2016 2017 Jan-Sep Jan-Sep 2017 2018 8 * Adjusted for non-recurring effects from changed pension plans in Norway and the UK in Q1 2017 and Q1 2018 ** Development investments excluding capitalised costs and including amortisation and depreciation *** Excluding currency effects, company formation in the UK, and effect of changed pension plan in Q1 2018
Continued good development in the UK GBP m GBP m 160 140 120 100 Income CAGR: 25% 65m 80 60 40 20 Expenses* CAGR: 19% 0 Q109 Q110 Q111 Q112 Q113 Q114 Q115 Q116 Q117 Q118 9 * Expenses are adjusted for the one-off effect in Q1 2018 from the change in pension plan and costs relating to company formation of UK operations
The Netherlands Strong performance Operating profit in Jan-Sep increased by 31% to SEK 216m (165) Operating profit in Jan-Sep in local currency increased by 23% Return on allocated capital increased to 14.2% (12.7%) Lending* increased by 21% and deposits by 37% The most satisfied customers according to EPSI 29 branches Operating profit in local currency EUR m 10 9 8 Performance fees Optimix 7 6 5 4 3 2 1 0 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 10 * Average volume
Financial stability 30% CET1 ratio Q3 2018 SEK bn 160 150 30 Sep 30 Jun Capital CRR/CRD IV, % 2018 2018 Change Capital ratio, % 27.1 28.3-1.2%-points Tier 1 ratio, % 24.0 23.7 +0.3%-points CET1 ratio, % 21.7 21.4 +0.3%-points 25% 20% 19.6% (15.1**) 21.7% (16.7**) 140 130 120 110 Target range: 20.6 22.6 Total own funds, SEK bn 148.7 156.5-7.8 Common equity tier 1 capital, SEK bn 118.8 118.4 +0.4 Leverage ratio, % 4.2 4.2 +0.1 100 15% 10% 107 119 90 80 70 60 50 30 Sep Liquidity, % 2018 LCR 161 NSFR 103 40 5% 30 20 10 0% Regulatory minimum* Common equity tier 1 capital 0 11 * Estimated requirement by the Swedish FSA at the end of Q3 2018 ** Estimated level in Q3 2018 with risk weight floors on mortgages in Pillar 1
Strategic initiatives and investments in the local and digital business model 12
Strategic initiatives for business development and efficiency Business development Increased efficiency Business value Full-range advice, private and corporate More efficient mortgages Remote advice Increased efficiency corresponding to at least 1,600 full-time equivalents More customer meetings New collaborations Digital project portfolio 30 September 2018
Digital project portfolio 14
w 1 w 3 w 5 w 7 w 9 w 11 w 13 w 15 w 17 w 19 w 21 w 23 w 25 w 27 w 29 w 31 w 33 w 35 w 37 w 39 w 41 w 43 w 45 w 47 w 49 w 51 Strong growth in number of advisory meetings Sweden Number of advisory meetings, 4-week rolling Number of meetings 18,000 16,000 14,000 +70% accumulated until end of September 12,000 10,000 8,000 6,000 4,000 2,000 0 2016 2017 2018 15
Customer satisfaction, Sweden Private Corporate Quote from SKI: Index 75 70 65 60 55 50 72,3 65,7 59,5 2017 2018 58,5 Index 70 68 66 64 62 60 58 56 54 52 50 67,7 61,9 58,7 2017 2018 56,6 Technical services have become an essential factor that does not drive satisfaction Too much focus on development has addressed functionality and too little on relations. Digitalisation has thus increased customer experiences of the kind now it is becoming even more difficult to see someone when you really need to Gap to peer ranked second*: 2016: 1.6 units 2017: 4.4 units 2018: 6.6 units Gap to peer ranked second*: 2016: 1.8 units 2017: 5.3 units 2018: 5.8 units 7 out of10 customers express a wish for a meeting with the bank in connection with signing a mortgage 16 Source: SKI (EPSI) 2018. 3,856 corporate and 4,432 private customer interviews between 7 August and 12 September 2018 * Nordea, SEB and Swedbank
More satisfied customers in all home markets Customer satisfaction Private Customer satisfaction Corporate Handelsbanken Industry average Handelsbanken Industry average Index 90 Index 90 85 80 75 70 72 78 78 78 72 70 69 80 74 84 72 85 80 75 70 68 72 72 70 70 74 79 73 83 70 65 60 61 65 60 59 64 55 55 50 50 Increased gap to peers in Sweden 17 * Average for Nordea, SEB and Swedbank in Sweden Source: SKI and EPSI 2018
Savings business 18
Largest institution for new savings in the Swedish mutual funds market Accumulated net inflows into Swedish mutual funds SEK bn 180 160 167 23% of the market s total net inflow since 2010 140 120 100 106 Handelsbanken Bank 1 Bank 2 Handelsbanken s market share of total outstanding mutual fund volumes in Sweden is 11% 80 60 40 20 45 35 24 Bank 3 Bank 4 Net inflows in mutual funds since Q3 2017: Sweden: SEK +19.4bn Heartwood: SEK +3.0bn 0 Other countries: SEK +5.2bn -20 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-Sep 19 Source: Swedish Investment Fund Association. Mutual fund volumes include equity, mixed, hedge and fixed income funds. Competitor banks included are Danske Bank, Nordea, SEB and Swedbank
Clear increase in mutual fund flows after advisory meeting Savings pattern before and after an advisory meeting, accumulated fund flows 14,000 12,000 An advisory meeting generates on average a mutual fund volume of around SEK 140,000 after one year 10,000 8,000 6,000 4,000 2,000 0-90 -80-70 -60-50 -40-30 -20-10 0 10 20 30 40 50 60 70 80 90 Dagar före respektive efter rådgivningsmöte Advisory meeting 6 av 10 kunder ökar sitt fondsparande Ack belopp uppräknat inom till 1230 måndagar efter rådgivningsmöte 6 out of 10 customers increase their mutual fund savings within 30 days of an advisory meeting 20
More advisory meetings, larger share of advisors, and more satisfied customers Sweden Number of advisory meetings Number of employees and licensed investment advisors Customer satisfaction* Amount Amount Index 40,000 4,400 73 35,000 4,200 72 30,000 25,000 4,000 3,800 71 20,000 70 15,000 10,000 3,600 3,400 +5% 69 5,000 3,200 68 0 Q317 Q318 3,000 Q317 Q318 67 2017 2018 Advisory meetings Employees, average Licensed investment advisors Customer satisfaction* 21 * SKI (EPSI) 2018 for Handelsbanken, private customers
Widespread growth in savings business in Sweden household deposits Household deposits in Sweden SEK m 400,000 18.5% 350,000 300,000 18.0% 250,000 200,000 150,000 17.5% 17.0% Handelsbanken's volume of houshold deposits in Sweden Market share, rhs 100,000 50,000 16.5% 0 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Aug-18 16.0% 22 * Source: Statistics Sweden
Corporate business 23
Corporate Bank of the Year in Sweden for 8th year in a row Corporate bank of the year Sweden s small enterprise bank Rank 6 Rank 5 4,5 5 4,9 4,7 4,6 4 4 3,8 3 3,0 2,7 2,7 3 2 2,0 2 1 1 0,5 0 0 Handelsbanken Bank SEB1 Danske Bank Bank 2 Swedbank Bank 3 Bank Nordea 4 Handelsbanken Bank SEB 1 Danske Bank Bank 2 Swedbank Bank 3 Bank Nordea 4 2017 2018 2017 2018 24 Source: Finansbarometern 2018 (www.eastbrooklab.se/finansbarometern)
CMA survey 2018 for UK customers 25 Source: BDRCs survey between September 2017 and June 2018 at request of the UK Competition and Market Authority
Enhanced digital support in corporate relations Banking services for corporates Business services Handelsbanken Carefully selected business services for corporates Business services Enable automatisation Banking services for corporates Corporates natural hub for access to administrative and processsupporting services 26
Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Average annual growth in equity Including dividends* SEK/share 200 Adjusted equity per share Accumulated dividends since 2008 175 150 125 100 75 50 25 0 27 * Dividends reinvested in ROE per quarter CAGR = Compounded annual growth rate
28 Appendix
Development investments* SEK m 800 700 600 680 663 618 500 499 400 369 300 304 200 182 100 75 0 Regulatory compliance Technical development Business development UK & the Netherlands Jan-Sep 2017 Jan-Sep 2018 29 * Including capitalised costs
Income statement five quarters SEK m Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Net interest income 7,862 7,904 7,648 7,777 7,587 Net fee and commission income 2,624 2,551 2,461 2,501 2,355 Net gains/losses on financial transactions 186 290 129 164 243 Risk result - insurance 10 15 41 34 19 Other income 46 875 45 676 44 Total income 10,728 11,635 10,324 11,152 10,248 Staff costs -3,421-3,363-3,217-3,178-3,134 Other expenses -1,735-1,833-1,797-1,896-1,477 Total expenses -5,156-5,196-5,014-5,074-4,611 Profit before loan losses 5,572 6,439 5,310 6,078 5,637 Net loan losses -230-222 -153-1,084-217 Gains/losses on disposal of property, equipment and intangible assets 2 3 4 3 4 Operating profit 5,344 6,220 5,161 4,997 5,424 30
Change in net interest income from previous quarter NII Q2 2018, SEK m 7,904 Lending margin -18 Lending volume 40 Deposit margin 3 Deposit volume 6 Day count effect 8 Mandatory government fees 3 Other, including allocation from Central Treasury -86 Handelsbanken Sweden -44-1% Lending margin -24 Lending volume 32 Deposit margin 28 Deposit volume 11 Day count effect 29 Exchange rate movements -4 Mandatory government fees 2 Other, including allocation from Central Treasury -33 Home markets outside Sweden 40 1% Capital Markets -7 0% Benchmark effect -24 Mandatory government fees 1 Other in Central Treasury and other units -135 Allocated out from Central Treasury 127 Other units and other -31 0% Change in NII -42-1% Of which total volumes 88 1.1% Of which total margins -11-0.1% Of which total government fees 5 0.1% Of which total currency effects -1 0.0% Of which total day count 37 0.5% Of which benchmark effect -24-0.3% Of which other -136-1.7% NII Q3 2018 7,862 31
Change in net interest income from previous year NII Jan - Sep 2017, SEK m 21,989 Lending margin -63 Lending volume 606 Deposit margin 28 Deposit volume 86 Day count effect 0 Mandatory government fees -255 Other, including allocation from Central Treasury 25 Handelsbanken Sweden 426 2% Lending margin -118 Lending volume 509 Deposit margin 256 Deposit volume 61 Day count effect 0 Exchange rate movements 428 Mandatory government fees -180 Other, including allocation from Central Treasury 75 Home markets outside Sweden 1,031 5% Capital Markets -15 0% Benchmark effect -14 Mandatory government fees -127 Other in Central Treasury and other units 229 Allocated out from Central Treasury -105 Other units and other -17 0% Change in NII 1,425 6% Of which total volumes 1,261 5.7% Of which total margins 103 0.5% Of which total government fees -582-2.6% Of which total currency effects 449 2.0% Of which total day count 0 0.0% Of which benchmark effect -14-0.1% Of which other 208 0.9% NII Jan - Sep 2018 23,414 32
NII growth driven by business volumes Q1 2015 until Q3 2018 SEK m 8,800 8,600 8,400-78 8,200 8,000 7,800 7,600 7,400 7,200 1,413 8,485 7,000 6,800 7,150 NII Q1 2015* Volume effect Margins etc. NII Q3 2018* 33 * Adjusted for resolution fund fees
Mandatory government fees Jan-Sep 2018, SEK m Swedish Resolution Fund Swedish deposit guarantee Total Sweden -859-180 -1,039 UK -160-16 -176 Denmark -71-12 -83 Finland -91-9 -100 Norway -197-17 -214 The Netherlands -27 0-27 Capital Markets -63 0-63 Other -400 - -400 Total -1,868-234 -2,102 34
Fees and commissions SEK m Jan-Sep 2018 Jan-Sep 2017 Change Brokerage and other securities commissions 522 679-23% Mutual funds 2,786 2,613 7% Custody and other asset management fees 770 522 48% Advisory services 144 198-27% Insurance 536 495 8% Payments 2,652 2,464 8% Loans and deposits 996 910 9% Guarantees 290 289 0% Other 363 371-2% Total fee and commission income 9,059 8,541 6% Securities -166-199 -17% Payments -1,197-1,078 11% Other -60-47 28% Total fee and commission expense -1,423-1,324 7% Net fee and commission income 7,636 7,217 6% 35
Expenses SEK m Jan-Sep 2018 Jan-Sep 2017 Change Investments in development -1,832-1,559 18% of which staff costs -803-683 18% of which other costs -1,029-876 17% Capitalised costs 546 486 12% Investments in development after capitalised costs -1,286-1,073 20% Amortisation and depreciation -196-149 32% Development costs -1,482-1,222 21% SEK m Jan-Sep 2018 Jan-Sep 2017 Change UK and the Netherlands* -2,913-2,535 15% Company formation in UK -218-21 Changed pension plan in Norway & UK 141 239-41% Development costs -1,482-1,222 21% Foreign currency effect -308 Other recurring costs -10,586-10,367 2% Total expenses -15,366-13,906 10% * Adjusted for company formation, currency, and changed pension plan 36
Change in costs from previous quarter Staff costs Q2 2018, SEK m 3,363 Staff costs Sweden 8 0% Staff costs home markets outside Sweden, excl. currency effects 28 1% Staff costs other units 32 1% Changed pension plans in Norway and UK 0 0% Oktogonen -6 0% Currency effects -1 0% Other and eliminations -3 0% Staff costs Q3 2018, SEK m 3,421 2% Other expenses Q2 2018, SEK m 1,833 External IT costs -18-1% Purchased services -50-3% Property and premises 0 0% Depreciation, amortisation and impairment of property, equipment and intangible assets -8 0% Currency effects 0 0% Other administrative expenses* -22-1% Other expenses Q3 2018, SEK m 1,735-5% 37 * Communication, travel and marketing, supplies, and other administrative expenses
Change in costs from previous year Staff costs Jan-Sep 2017, SEK m 9,294 Staff costs Sweden 87 1% Staff costs home markets outside Sweden, excl. currency effects 174 2% Staff costs other units 259 3% Changed pension plans in Norway and UK 98 1% Oktogonen 6 0% Currency effects 184 2% Other and eliminations -101-1% Staff costs Jan-Sep 2018, SEK m 10,001 8% Other expenses Jan-Sep 2017, SEK m 4,612 External IT costs 147 3% Purchased services 291 6% Property and premises 41 1% Depreciation, amortisation and impairment of property, equipment and intangible assets 92 2% Currency effects 123 3% Other administrative expenses* 59 1% Other expenses Jan-Sep 2018, SEK m 5,365 16% 38 * Communication, travel and marketing, supplies, and other administrative expenses
Oktogonen quarterly SEK m 500 450 400 350 300 250 200 150 100 50 0 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 39
Effective tax rate Effective tax rate Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Per quarter 23.2% 15.9% 22.4% 24.7% 23.1% 22.8% 23.1% 26.7% 19.8% Accumulated year to date 20.2% 18.9% 22.4% 23.4% 23.0% 23.0% 23.1% 21.3% 19.7% 40
Change in common equity tier 1 ratio from previous quarter CRR/CRD IV Common equity tier 1 ratio Q2 2018, % 21.4 Change, percentage points: Common equity tier 1 capital 0.1 Earnings for the period 0.7 Deducted dividends (based on previous year's total payout ratio) -0.7 Currency effects -0.2 IAS 19 0.3 Other and rounding 0.0 Lending volume 0.2 Lending growth 0.0 Currency effects 0.2 Net effect different quality of inflows and outflows in loan portfolio 0.1 Credit risk migration in the lending portfolio 0.0 Other effects, net -0.1 Change in common equity tier 1 ratio 0.3 Common equity tier 1 ratio Q3 2018, % 21.7 41
Change in common equity tier 1 ratio from previous year CRR/CRD IV Common equity tier 1 ratio Q3 2017, % 23.6 Change, percentage points: Common equity tier 1 capital -0.1 Earnings for the period 3.2 Deducted dividends (based on previous year's total payout ratio) -3.7 Currency effects 0.8 IAS 19-0.1 AFS holdings -0.1 Other and rounding -0.2 Lending volume -1.0 Lending growth -0.2 Currency effects -0.8 Net effect different quality of inflows and outflows in loan portfolio 0.2 Credit risk migration in the lending portfolio -0.4 Effect new risk weights for SPL* in UK -0.4 Other effects, net -0.2 Change in common equity tier 1 ratio -1.9 Common equity tier 1 ratio Q3 2018, % 21.7 42 * SPL = Special Property Lending
Balance sheet SEK bn Jan-Sep 2018 Jan-Sep 2017 Change Cash and central banks 406 489-17% Loans to the public 2,194 2,041 7% Loans to other credit institutions 36 31 16% Interest-bearing securities 202 174 16% Other assets 249 246 1% Total assets 3,087 2,981 4% Deposits and borrowing from the public 1,099 1,112-1% Due to credit institutions 195 205-5% Issued securities 1,394 1,279 9% Other liabilities 258 246 5% Total equity 141 139 1% Total liabilities and equity 3,087 2,981 4% 43
Non-encumbered assets, NEA 30 September 2018 SEK bn NEA Accumulated coverage ratio in % of unsecured funding* Cash with central banks and securities in the liquidity portfolio 594 63% Mortgage loans 599 126% Other household lending 186 146% Property company lending lowest risk class (1-3) 302 178% Other corporate lending lowest risk class (1-3) 158 195% Loans to credit institutions lowest risk class (1-3) 19 197% Other corporate lending 271 225% Other assets 21 227% Total non-encumbered assets (NEA) 2 150 227% Encumbered assets without underlying liabilities** 63 Encumbered assets with underlying liabilities 874 Total assets, Group 3 087 44 * Issued short and long non-secured funding and liabilities to credit institutions ** Over-collateralisation in cover pool (OC)
Long-term bond funding Long-term bond issuance, SEK bn Jan-Sep 2018 Jan-Sep 2017 Change Senior bonds 55 22 33 Covered bonds 125 87 38 Subordinated loans 16 0 16 Total 196 109 87 45
Lending to the public* Q3 Q2 Q1 Q4 Q3 SEK bn, end of period 2018 2018 2018 2017 2017 Households 839 832 819 806 796 Corporates 512 514 506 497 496 Handelsbanken Sweden 1,351 1,346 1,325 1,303 1,292 Households 101 101 95 90 91 Corporates 173 176 167 155 154 Handelsbanken Norway 274 277 262 245 245 Households 77 77 76 70 69 Corporates 161 161 157 143 138 Handelsbanken UK 238 238 233 213 207 Households 44 44 43 38 37 Corporates 96 96 93 86 86 Handelsbanken Finland 140 140 136 124 123 Households 65 65 64 61 58 Corporates 42 42 41 38 37 Handelsbanken Denmark 107 107 105 99 95 Households 26 25 24 21 20 Corporates 21 21 21 19 17 Handelsbanken the Netherlands 47 46 45 40 37 Other 37 39 37 40 41 Households 1,158 1,151 1,129 1,095 1,080 Corporates 1,035 1,043 1,014 968 960 Total lending to the public 2,193 2,194 2,143 2,064 2,040 46 * Excluding lending to the National Debt Office
Deposits from the public Q3 Q2 Q1 Q4 Q3 SEK bn, end of period 2018 2018 2018 2017 2017 Households 360 356 344 336 335 Corporates 247 238 245 233 232 Handelsbanken Sweden 607 595 590 569 567 Households 56 56 52 48 45 Corporates 103 106 101 98 97 Handelsbanken UK 159 162 153 146 142 Households 23 24 21 20 21 Corporates 44 45 44 40 47 Handelsbanken Norway 67 69 65 60 68 Households 17 17 16 15 16 Corporates 28 28 30 26 27 Handelsbanken Finland 45 45 46 41 43 Households 19 20 18 17 17 Corporates 26 31 22 24 22 Handelsbanken Denmark 45 51 40 41 39 Households 2 2 1 1 1 Corporates 8 10 12 6 7 Handelsbanken the Netherlands 10 12 13 7 8 Other 166 192 159 78 245 Households 485 481 459 445 443 Corporates 615 644 606 497 669 Total deposits from the public 1,099 1,126 1,066 942 1,112 47
Lending in home markets outside Sweden Average volumes local currency Private, local currency Q3 2018 Q2 2018 Change Denmark, DKK bn 46.5 46.2 0.6% Finland, EUR m 4,215 4,083 3.2% Norway, NOK bn 91.7 90.7 1.1% UK, GBP m 6,606 6,501 1.6% The Netherlands, EUR m 2,456 2,339 5.0% Corporate, local currency Denmark, DKK bn 29.4 29.5-0.3% Finland, EUR m 9,274 9,066 2.3% Norway, NOK bn 159.1 159.4-0.2% UK, GBP m 13,870 13,610 1.9% The Netherlands, EUR m 2,054 2,042 0.6% 48
Lending in home markets outside Sweden Average volumes local currency Private, local currency Jan-Sep 2018 Jan-Sep 2017 Change Denmark, DKK bn 46.2 43.8 5.5% Finland, EUR m 4,168 4,045 3.0% Norway, NOK bn 90.9 88.4 2.8% UK, GBP m 6,508 6,066 7.3% The Netherlands, EUR m 2,338 1,899 23.1% Corporate, local currency Denmark, DKK bn 29.3 28.7 2.1% Finland, EUR m 9,095 8,947 1.7% Norway, NOK bn 158.2 148.1 6.8% UK, GBP m 13,576 12,060 12.6% The Netherlands, EUR m 2,031 1,703 19.3% 49
Deposits in home markets outside Sweden Average volumes local currency Private, local currency Q3 2018 Q2 2018 Change Denmark, DKK bn 14.1 13.8 2.2% Finland, EUR m 1,611 1,569 2.7% Norway, NOK bn 21.2 20.3 4.4% UK, GBP m 4,726 4,519 4.6% The Netherlands, EUR m 136 127 7.1% Corporate, local currency Denmark, DKK bn 21.5 18.5 16.2% Finland, EUR m 2,696 2,617 3.0% Norway, NOK bn 42.7 42.4 0.7% UK, GBP m 9,091 8,971 1.3% The Netherlands, EUR m 955 956-0.1% 50
Deposits in home markets outside Sweden Average volumes local currency Private, local currency Jan-Sep 2018 Jan-Sep 2017 Change Denmark, DKK bn 13.7 12.7 7.9% Finland, EUR m 1,564 1,605-2.6% Norway, NOK bn 20.5 19.9 3.0% UK, GBP m 4,527 3,622 25.0% The Netherlands, EUR m 127 85 49.4% Corporate, local currency Denmark, DKK bn 20.5 19.0 7.9% Finland, EUR m 2,773 2,662 4.2% Norway, NOK bn 42.7 49.7-14.1% UK, GBP m 8,971 8,481 5.8% The Netherlands, EUR m 996 735 35.5% 51
Disclaimer Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, express or implied, by the forward looking statements. Factors that might cause forward looking statements to differ materially from actual results include, among other things, regulatory and economic factors. Handelsbanken Group assumes no responsibility to update any of the forward looking statements contained herein. No representation or warranty, express or implied, is made or given by or on behalf of Handelsbanken Group or its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of Handelsbanken Group or any of its directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Handelsbanken Group, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. 52