Handelsbanken (SHB) Investor presentation summary

Earnings and strategy

• Quarterly RoE remained at or above 12% in every quarter for seven years through Q2 2012.

• Full-service model centered on decentralized operations, nationwide branches and long-term customer relationships; international expansion targets selected markets.

• Goal: profitability above the average of comparable banks in home markets.

Customer relationships

• Customer surveys presented high satisfaction and loyalty across private and corporate banking markets in Sweden, Denmark, Finland, Norway and Great Britain.

• Swedish large-company customer satisfaction index was 0.54, versus 0.48 for the peer-group average.

Efficiency and credit risk

• Cost/income ratio excluding loan losses was 45.3% for Jan–Jun 2012.

• Average loan losses as a share of lending were 0.04% in 1998–2011, versus 0.22% for other Nordic banks.

• Risk weights reflect historical default performance, probability of default and collateral quality; credit management influences loan losses over a loan’s life.