Svenska Handelsbanken Second quarter 2002 20 August 2002
Profit and loss account, January - June Handelsbanken Group Q2 Q2 Change SEKm 2002 2001 % Net interest income 7 025 6 464 9 Commission, net 2 549 2 579-1 Trading, net 1 049 1 462-28 Other income 379 332 14 Total income 11 002 10 837 2 Staff costs, excl performance-related -3 107-2 659 17 Performance-related staff costs -123-259 -53 Other expenses -2 312-1 979 17 Total expenses -5 542-4 897 13 Profit before loan losses 5 460 5 940-8 Loan losses -100 65 Operating profit 5 360 6 005-11
Operating profit, quarterly Handelsbanken Group SEK m 3 500 3 000 2 500 2 000 1 500 1 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1997 1998 1999 2000 2001 2002
Net interest income excl. trading, quarterly Handelsbanken Group SEKm 3 600 3 400 3 200 3 000 2 800 2 600 2 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1999 2000 2001 2002
Lending to the general public, Sweden Handelsbanken Group, January - June Average volumes SEK bn 2002 2001 Change % Mortgage loans 353 331 7 Private 216 196 10 Corporate 137 135 1 Bank loans 285 252 13 Private 51 44 16 Corporate 234 208 13 Total Sweden 638 583 9 Private 267 240 11 Corporate 371 343 8
Lending to the general public Handelsbanken Group January - June Average volumes SEK bn 2002 2001 Change % Sweden 638 583 9 Other Nordic countries 110 87 26 Private 33 25 32 Corporate 77 62 24 Rest of world 59 61-3 Private 2 2 0 Corporate 57 59-3 Total 807 731 10 Private 302 267 13 Corporate 505 464 9
Lending to the general public Handelsbanken Group January - June Average volumes SEK bn 2002 2001 Change % Other Nordic countries 110 87 26 Private 33 25 32 Corporate 77 62 24 Great Britain 16 16 0 Private 1 0 100 Corporate 15 16-6 Rest of world 43 45-4 Private 1 2-50 Corporate 42 43-2 Total 807 731 10 Private 302 267 13 Corporate 505 464 9
Deposits from the general public Handelsbanken Group, January - June Average volumes SEK bn 2002 2001 Change % Sweden 192 191 1 Private 78 72 8 Corporate 114 119-4 Outside Sweden 94 82 15 Private 18 13 38 Corporate 76 69 10 Total 286 273 5 Private 96 85 13 Corporate 190 188 1
Commission January June Handelsbanken Group SEK m 2002 2001 Change % Brokerage 476 590-19 Mutual funds and custody 595 673-12 Insurance 176 89 98 Payments 681 633 8 Lending and deposits 591 550 7 Other 622 610 2 Commission expenses -589-566 4 Total 2 552 2 579-1
Commission, 2002/2001 Handelsbanken Group Commission, net rokerage Mutual funds & Custody Insurance Payments Lending & Deposits Other Commission expenses EKm -120-100 -80-60 -40-20 0 20 40 60 80 100 120
The Swedish mutual fund market Net sales Jan Jun 2002 Proportion of total 31 Dec 2001 Handelsbanken 23.2 % 11.4 % Robur 16.8 % 30.3 % SEB 13.7 % 18.4 % Nordea 9.5 % 18.6 % Source: Svensk Fondstatistik/Sparöversikt and SHB Fonder
Net trading income, quarterly Handelsbanken Group SEKm 900 800 700 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1999 2000 2001 2002
Change in expenses, January - June 2002 Handelsbanken Group Comparable expenses Midtbank, SPP and HL 4.8 % -units 7.7 % -units Exchange rate effects 0.7 % -units Total expenses 13.2 % -units
Comparable expenses, January - June 2002 Handelsbanken Group Salary increases 1.3 % units Performance-related staff costs -2.8 % units Increased number of employees 0.2 % units Higher IT costs 2.5 % units Expansion outside Sweden 1.1 % units Other expenses 2.5 % units Total comparable expenses 4.8 % units
Number of employees Handelsbanken Group 30 Jun 02 31 Dec 01 Change No of employees 9 722 9 763-41 From SPP +50 Swedish branch offices -74 IT and development, Sweden excl. SPP -11 Other Nordic countries -15 Handelsbanken Liv, Sweden -11 Rest of world +28 Other -8 No of employees comparable units 9 672 9 763-91
Operating profit by business area January-June SEKm 2002 2001 +/- Return on equity Jan - Jun 2002 Branch operations 4 535 4 466 2 % 18.8 % Markets 497 681-27 % 15.2 % Securities 111 269-59 % 20.0 % Asset Management 265 265 0 % 22.8 % Handelsbanken Finans 200 171 17 % 28.7 % Pension & Insurance -73 33 - - Stadshypotek Bank 9 7 29 % 29.2 % Treasury 40 101-60 % 12.0 % Group 5 360 6 005-11 % 15.9 %
Results in other Nordic countries and Great Britain January - June SEKm 2002 2001 Change % Norway 352 360-2 % Denmark 167 92 82 % Finland 134 126 6 % Great Britain 103 136-24 % Total 756 714 6 %
Total income in other Nordic countries 1990-2002 SEKm 3 000 2 500 2 000 Midtbank 1 500 1 000 Bergensbanken 500 Oslo Handelsbank Stavanger Bank 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002*
Nordic expansion 1990-2002 No of branches 100 90 80 70 60 50 40 30 20 10 No of branches Lending to the general public Volume SEK bn 120 100 80 60 40 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002* 0 * As at 30 June 2002
* Operating profit Jan-Jun multiplied by 2 Operating profit in other Nordic countries 1990-2002 SEKm 900 800 700 600 500 400 300 200 100 0-100 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002*
Expension in Great Britain Lending to general public GBP m 900 800 700 600 500 400 300 1999 2000 2001 30 June 2002
Key ratios, January - June Handelsbanken Group 2002 2001 Return on equity after full tax 15.9 % 20.9 % Cost / income Before loan losses 50.4 % 45.2 % After loan losses 51.3 % 44.6 % Net earnings per share, SEK 5:65 6:59 Moving 12 mth total 11:05 12:91
Bad debts as a percentage of lending Handelsbanken Group % 1,2 1,0 0,8 0,6 0,4 0,2 0,0-97 -98-99 -00-01 -02 30 June
Bad debts as a percentage of lending SHB and other Swedish banks % 5 4 3 SHB net/gross Other banks net/gross* 2 1 0 97 98 99 00 01 02 * 31 March 2002
Loan losses as a percentage of lending Handelsbanken Group % 0,5 0,4 0,3 Other Swedish banks * Handelsbanken 0,2 0,1 0,0 1997 1998 1999 2000 2001 2002 * 31 March 2002
Balance sheet Handelsbanken Group 30 Jun 30 Jun Change SEKm 2002 2001 % Lending to the general public 806 244 762 305 6 Lending to credit institutions 92 088 95 215-3 Interest-bearing securities 124 327 139 051-11 Other assets 242 977 190 419 28 Total assets 1 265 636 1 186 990 7 Depostits and funding from general public 264 166 275 411-4 Liabilities to credit institutions 241 978 221 678 9 Issued securities 441 818 476 423-7 Other liabilities 268 892 169 144 59 Shareholders equity 48 782 44 334 10 Total liabilities and equity 1 265 636 1 186 990 7
Capital base and capital ratio Handelsbanken Group SEK bn 70 60 50 40 30 14,2 % 12,2 % 10,4 % 9,8 % 9,4 % 9,5 % 9,9 % 9,4 % Tier II capital 20 10 10,3 % 10,0 % 6,2 % 6,3 % 6,5 % 6,4 % 6,1 % 6,3 % Tier 1 capital 0 1995 1996 1997 1998 1999 2000 2001 2002
Return on equity after standard tax 30 June 2002 % 30 25 20 15 10 Handelsbanken Other listed banks* 5 0-5 -84-86 -88-90 -92-94 -96-98 -00-02 * 31 March 2002
Share price performance up to 12 August 2002 Index SHB General index (AFV) Nordix Bank excl. SHB 250 200 150 100 50 0 1997 1998 1999 2000 2001 2002