Handelsbanken (SHB) Investor presentation summary

Equity growth and returns

• Average annual growth in equity, including dividends, was 15% CAGR over the period shown from Q3 2007 to Q2 2014.

• Group ROE was 14.3% in Jan–Jun 2014; segment ROE ranged from 10.6% in the Netherlands to 16.1% in Norway.

• ROE remained well above Sweden’s 10-year government bond yield, with a 13-percentage-point spread indicated for H1 2014.

Costs and expansion

• Twelve-month rolling costs stayed broadly unchanged despite expansion; costs outside growth regions fell 3% from Q3 2013.

• UK operations had 176 branches with appointed managers and more than 1,600 employees; 60% of branches were less than four years old.

• UK earnings increased 38% in local currency in H1 2014 vs 2013.

Local service model

• Branches make decisions locally, while customers can choose among branches, digital, telephone, card, cash machine, email and other channels.

• Huddersfield branch opened in January 2008 with four staff, grew to eight locally based staff and broke even after 18 months.