Svenska Handelsbanken Ab Class A · OMXSTO:SHB_A
Svenska Handelsbanken Ab Class A — Debt Investor Presentation (2025)
62 slides from Svenska Handelsbanken Ab Class A's debt investor presentation, 2025
Slide 1: Debt investor presentation Q2 2025
Handelsbanken Handelsbanken Debt investor presentation Q2 2025
Slide 2: Contents
Contents * Fundamentals * Balance sheet structure & Liquidity * Latest interim results - Asset quality * Capital + Funding + Stadshypotek & housing markets * Sustainability
Slide 3: Fundamentals
Fundamentals Handelsbanken
Slide 4: Credit ratings versus Nordic peers
Moody's S&P Fitch 0,40 Handelsbanken Aa2 AA- AA+ 0,19 0,13 0,15 0,16 DNB Aa2 AA- 0,06 Nordea Aa3 AA- AA SEB Aa3 A+ AA Swedbank Aa2 A+ AA Danske Bank A1 A+ AA- 112 70% 64% 57% 62 55 53 46 22% 23% 22 11%
Slide 5: Net credit losses
Net credit losses Credit loss ratio 1997 — 2024 Credit losses Q2 2023 — Q2 2025 SEKm Credit loss ratio 12% ‘—Handelsbanken Comparable Nordic banks” -1200 12% 10% -1,000 1.0% 08% -800 08% 0.6% -600 0.6% 0.4% -400 0.4% 02% -200 02% 0.0% 0) 0.0% -0.2% 200 -0.2% “04% ao i=} Nnoyrno 2D + 400 “0.4% > 25n8
Slide 6: Home markets
Home markets Sweden 79% of Group operating profits Q2.2025 vs Q12025: Operating profit Operating profit, qoq Q Ciiratio 32.3% (31.2) Return on allocated capital 16.4% (14.7) Average lending, qoq 0% Average deposits, oq +2% ‘AUM, qoq +5% SEK 5.6bn = United Kingdom 15% of Group operating profits Q2.20
Slide 7: Lending in home markets
Lending in home markets* Other lending to corporates and a households Commercial Average LTV 14% 80% S19 Residential Real Average LTV 70% Estate LTV>75% 60% tee 50% SS Housing co- Average LTV “on operatives LTV>75% 9 11% 30% ” Household Average LTV << mortgages LTV>75% 10% 48% Handelsbanken * Net le
Slide 8: Lending by market and customer segment
100% 57 100% Netherlands Handelsbanken 51 90% 136 19 Markets 90% 80% 65 174 Netherlands 80% Norway 70% 167 70% 60% Corporates Norway 60% UK SEK 1048 bn 50% 156 Households 50% 40% SEK 1236 bn UK 947 40% 30% Sweden, other 27 30% Sweden other 20% 466 20% 10% Sweden, Stadshypotek Sweden 10% 0% Stadshypo
Slide 9: Other corporate lending
100% 100% 100% Other corporate lending 90% Holding companies, insurance companies, 90% 90% Retail and services 80% 80% 80% Manufacturing The Netherlands 70% 70% 70% Property management Other property companies 60% 60% 60% 50% Housing co-operative associations 50% 50% Norway Private individuals - oth
Slide 10: Balance Sheet & Liquidity
Balance Sheet & Liquidity Handelsbanken
Slide 11: Strength and Stability
Strength and Stability Low risk balance sheet. Focus on long-term relationships Conservative funding structure & ample liquidity buffer * Easy to understand balance sheet * Balance between sticky deposits and through decades of low risk tolerance diversified wholesale funding * Lowrisk appetite, wit
Slide 12: Balance sheet structure and maturities
3,800 3,800 • 3,300 3,300 799 888 Cash and balances at central banks Liabilities and issued 97 2,800 securities maturing • 2,800 within 1 year Bonds and other highly 681 2,300 2,300 Deposits from the liquid securities including derivatives 1,447 public • 1,800 1,800 Loans repaid and Issued securitie
Slide 13: NSFR
122% NSFR 120% 122% Available Stable Funding 2116 SEK bn Own funds (100% weight) 206 SEK bn 110% Stabe retail deposits (95%) 392 SEK bn Less stable retail deposits (90%) 323 SEK bn Operational deposits (50%) 137 SEK bn 100% Other wholesale funding (50%) 1054 SEK bn Other 4 SEK bn 90% Required Stable
Slide 14: LCR and liquidity reserve
1,200 250% 1,000 • 200% 800 LCR 600 150% • 187 % 400 385 SEK bn cushion 100% 200 • 0 50% HQLA Net Cash 30 sep 30 sep 30 sep Outflows 2019 2021 2023 • Liquidity reserve, SEKbn Cash and balances with central banks 627 • Securities issued or guaranteed by sovereigns, central banks etc 202 Extremely hig
Slide 15: Deposits
1,000 600 1,600 800 1,400 1,200 300 400 600 179 SEK bn 1,000 SEK bn 232 453 SEK bn 800 689 400 600 200 400 200 408 275 623 200 89 0 0 0 Total deposits Private Corporate On demand deposits (excl retail/SME) On demand deposits On demand deposits Guaranteed Not guaranteed retail/SME (excl retail/SME) O
Slide 16: Latest interim results
Latest interim results Handelsbanken
Slide 17: Q2 2025 Operating profit
Q2 2025 Operating profit 88 85 72 a i Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 * SEK 7.2bn in operating profit * 18% ROE OCANwWATANDO * Volume growth in all home markets + 44% C/I ratio * 6th consecutive quarter with net credit loss reversals * Low funding and liquidity risks * 18.4% CET1 ratio, 350b
Slide 18: Financial summary
Financial summary Q2 2025 compared to previous quarter Adjusted for items affecting SEKm Q2 2025 Q12025 Change comparability” Net interest income 10,689 1347 -6% -4% Net fee and commission income 2,866 2,900 -1% 1% Total income 13,624 14,789 -8% 7% Total expenses -6,017 -6,025 0% 0% Profit before cr
Slide 19: Net interest income development
Net interest income development Q2 2025 compared to previous quarter Nil change: -6% SEKm 11,600 11,400 Contribution from: 11,200 Volumes: +0.5 %-points 11,000 Margins and 40,800 funding: -4.8%-points 40.600 11.347 FXx-effects: -1.4%-points 10,400 10,689 10,200 10,000 Q12025 Volume in home Margins a
Slide 20: Lending volumes
1,250 1,100 1,200 1,050 1,000 1,150 950 1,100 900 1,050 850 1,000 800 950 750 900 700 30 Jun 2021 30 Jun 2022 30 Jun 2023 30 Jun 2024 30 Jun 2025 30 Jun 2021 30 Jun 2022 30 Jun 2023 30 Jun 2024 30 Jun 2025
Slide 21: Deposits from the public
Deposits from the public* Households Corporates 700 700 650 600 600, 550 550, 500 500 450 450 400 400 350 350 300 300 30 Jun 2021 30 Jun 2022 30 Jun 2023 30 Jun 2024 30 Jun 2025 30 Jun 2021 30 Jun 2022 30 Jun 2023 30 Jun 2024 30 Jun 2025 Handelsbanken * Volumes at EOP inhome markets: Sweden, Norway,
Slide 22: Net fee and commission income
Net fee and commission income SEK m 3,200 3,100 3,000 CAGR: +2% 2,900 2,800 2,700 2,600 2,500 2,400 2,300 2,200 Q22023 Q22024 Q22025 Savings related” (66% of net fee and commissions) Net payment fees (16%) Other (18%) SEK m SEKm SEKm 2.500 4,000 4,000 CAGR: +3% 900 900 2,000 800 800 700 700 4,500 60
Slide 23: Expenses and staff
Expenses and staff Expenses Q223 Q323 423 Q124 Q224 Q324 §Oktogonen + Restructuring charge (staff costs) Total expenses excl items affecting comparability * Employeesplusextemalresources Handelsbanken Qa24 Q125 Q225 Staff* Number of staff 13,600 13,400 13,200 13,000 12,800 12,600 12,400 12,200 12,00
Slide 24: Asset Quality
Asset Quality Handelsbanken
Slide 25: Asset quality
Asset quality Expected credit losses Stage 3, net SEKm -120 -100 ° 20 Q4 OQ Q2 QB 22 23 23 23 Handelsbanken Q4 23 -60 -40 val hl amie || 2 QA Q2 Q3 Q4 QA Qe 24 24 24 24 25 26 Credit losses Updated macro assumptions Other effects Stage (and Stage 2 Write-offs and recoveries Expert based add-on Rating
Slide 26: Annual forecasts Scenario 2025-2029
Central bank interest Commercial property House price Annual GDP growth, Unemployment, rates price development, development, forecasts % % % % % Scenario 2025-2029 Swe UK Nor Fin Swe UK Nor Fin Swe UK Nor Fin Swe UK Nor Fin Swe UK Nor Fin 2025 -0.5 -1.0 -0.5 -0.9 9.6 6.1 3.1 9.6 3.3 5.3 5.8 3.3 -8.5
Slide 27: Exposure by country
140,000 200,000 41% 64% 180,000 120,000 160,000 100,000 140,000 28% 80,000 24% 120,000 100,000 60,000 80,000 25% 40,000 60,000 6% 40,000 20,000 5% 6% 20,000 0 Sweden Norway UK the Netherlands 0 Sweden UK the Netherlands Norway
Slide 28: Property management — Exposure & Stage provisions
Property management — Exposure & Stage 2 provisions Total exposure Stage 2 provisions — Sweden and abroad sexmn Sek mn 800,000 60,000 460,000 750,000 50,000 700,000 40,000 100,000 50,000 30,000 80,000 20,000 600,000 40,000 10,000 550,000 0 ° 500,000 Stmar 30sep 31mar 30sep 3tmar 30sep 3tmar 30sep 3i
Slide 29: Property exposure by collateral and country
SEK bn Sweden UK Norway Netherlands Group % Government guarantees 15 0 4 18 3% Residential 181 70 16 16 283 42% Office, retail, hotel 91 53 71 16 231 34% Other real estate 13 0 9 39 62 9% Industry, logistics 16 19 10 1 46 7% Agriculture, forestry 1 1 0 - 2 0% Other collateral 1 0 0 - 1 0% Unsecured
Slide 30: Capital
Contents Capital Handelsbanken
Slide 31: Strong financial position
Strong financial position CET1 ratio, Q2 2025 20% 160 19% 18.4% 18% a5 Long term target 17% range . i i 16% 14.9% _ } 159 -179% Solid asset quality 16% 14% 13% = Low funding and liquidity risk 12% 10 pen aah 11% = Strong liquidity buffer 10% 80 o = CET1 ratio 350bp above capital ™% 60 requirement 6%
Slide 32: Change in CET1-ratio from previous quarter
Change in CET1-ratio from previous quarter CET1-ratio REA Capital REA effects effects % XA EK C Y ~\ ‘SEK bn 2 815 0 810 ate 188 —— o 186 Bt —— 200 184 82 795 18.0 am 507 808 78 184 184 785 78 780 Ta we 775 70 770 CETIra60Q15,% ——Earings Deducted Neteftect Mivgation Other. introundng CET rato Q225.
Slide 33: Capital requirements and buffers
Requirement, SEKm Q225 Total 19,563 T1 13,985 CET1 120,154 FI requirement, % of REA Q225 Target Total 19.0% > +1 %-point T1 16.6% > +1 %-point CET1 14.9% 1-3 %-points above req Actual, % of Buffer to requirement REA (%) Buffer to requirement (SEKm) Total capital ratio, CRR 22.7% 3.7% 30,100 Tier 1 r
Slide 34: Capital requirement composition
Capital requirement based on: 16.0 SREP 2024 14.9% CET1 900,000 Pillar 2G CVA and market risks 0.5 P2G: 0.50% 14.0 1.2 800,000 CRE-floors Pillar 2R (Conc. Risk 0.3, MDA: Includes all buffers excl. P2G Norway 2.0 Operational risk 12.0 IRB Overhaul 0.5, IRBB 700,000 CRE-floors 0.3 & Pension risk 0.04)
Slide 35: Capital base and requirements
25 25 25 3.2 20 20 20 1.2 1.2 2.4 15 15 1.7 15 1.2 2.0 10 2.5 10 10 18.4 18.4 18.4 16.1 4.1 14.4 5 5 5 4.5 0 0 0 Minimum capital req. Systemic risk buffer** Capital base, SEKbn Countercyclical buffer Pillar 2R • • • • • • • • • • •
Slide 36: AT1, T2 and SNP instruments
AT1 format Issue month Currency Amount (m) First potential call date SHBASS 4.375%, PNC6.5 Sep 2020 USD 500 Mar 1 2027 SHBASS 4.750%, PNC10.5 Sep 2020 USD 500 Mar 1 2031 T2 format Issue month Currency Amount (m) First potential call date SHBASS 4.625%, 10NC5 Aug 2022 GBP 500 Aug 23 2027 SHBASS 3.25%
Slide 37: Funding
Funding Handelsbanken
Slide 38: Credit ratings versus peer banks
Bank Moodys S&P Fitch Handelsbanken Aa2 AA- AA+ Bank 2 Aa1 AA- AA Bank 3 Aa1 AA- AA- Bank 4 Aa1 AA- AA- Bank 5 Aa2 AA- Bank 6 Aa2 AA- Bank 7 Aa3 AA- AA • Bank 8 Aa2 A+ AA Bank 9 Aa2 AA- AA- Bank 10 Bank 11 Aa2 Aa2 AA- A+ AA- AA • Bank 12 Aa2 A+ AA Bank 13 Aa2 A+ AA Bank 14 Aa2 AA- AA- • Bank 15 Aa2
Slide 39: Funding mix and maturity profile
120% 100% 100% Norwegian 100% Other cover pool in EUR… 13% 80% 90% 90% Norwegia Certificat n cover EUR pool in… 60% EUR 73% es 80% 579 80% 61% Swedish cover 40% Subordinated debt 35 pool in 70% 70% EUR 20% 60 USD USD 25% 27% 60% 0% Senior 60% Senior preferred Senior non-preferred non- Senior preferr
Slide 40: Long-term bond issuance
Jan-Jun Jan-Jun Jan-Jun Long-term bond issuance, SEK bn 2022 2023 2024 2025 Long-term bond issuance, SEK bn 2025 2024 Change Senior bonds 57 67 34 26 Senior bonds 26 26 0 Covered bonds 131 163 121 67 Covered bonds 67 71 -4 Subordinated 11 9 6 0 Subordinated 0 0 0 Total 93 97 -4 Total 199 239 161 93
Slide 41: Maturity profile by currency
70 15 60 50 10 40 30 20 5 10 0 0 2025 2026 2027 2028 2029- 2025 2026 2027 2028 2029- SP SNP SP Other 60 25 50 20 40 15 30 10 20 5 10 0 0 2025 2026 2027 2028 2029- 2025 2026 2027 2028 2029- SP USD SNP USD SP EUR SNP EUR
Slide 42: MREL and available funds
450 450 400 382 400 350 SP>1yr 350 300 286 127 300 CBR* 255 250 70 SNP>1yr 250 228 71 SNP>1yr 200 MCB** CBR* 71 200 58 70 150 150 Leverage ratio x2 Own funds Leverage ratio x2 100 2x 209 2x Own funds (T1+T2) 100 209 (P1 min+P2R) (P1 min+P2R) 184 184 50 158 158 50 0 0 Risk based Leverage based Availa
Slide 43: Non-encumbered assets
Non-encumbered assets 30 June 2025 Accumulated coverage ratio in SEK bn NEA % of unsecured funding” Holdings with central banks and securities in the liquidity portfolio 896 96% Mortgage loans 748 77% Other household lending 136 192% Property company lending lowest risk class (1-3) 253 219% Other co
Slide 44: Stadshypotek & Housing markets
Stadshypotek & Housing markets Handelsbanken
Slide 45: Mortgage growth picking up
Mortgage growth picking up == Housing prices and lending 20 15 ae " ee | Housing prices —Total Lending, Households -15 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sources: Macrobond, Statistics Sweden (SCB), Valueguard Sweden AB and Handelsbank
Slide 46: Housing market chart
1,000 900 800 700 600 500 400 300 200 2011 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Slide 47: Debt/Income and LTV for new mortgages
75 3.4 70 2.9 65 2.4 60 1.9 55 1.4 50 0.9 45 0.4 40 -0.1 Debt/Income (new) - right scale LTV stock LTV new
Slide 48: Swedish cover pool
Current available pool size SEK 1308bn (EUR 117bn) Assets utilized SEK 723bn (EUR 65bn) Interest index distribution Floating rate (<1 year fixing) 65% Loans secured by mortgages. Loans to or Asset types guaranteed by public sector in Sweden Fixed rate (>1 year fixing) 35% (state & municipalities) Ou
Slide 49: Signs of slower recovery
Signs of slower recorvery Housing prices (m/m) yO wo so > th id Ki | i | th hy rn | li. ‘ wl | | " i, al | om nN Percentage change m/m (SA) ) 2012 2014 2016 2018 2020 2022 2024 Sources: Macrobond, Valueguard Sweden AB and Handelsbanken Handelsbanken Housing prices (index, SA) 3254 3004 2754 2504 x B
Slide 50: Transaction activity at high levels
Transaction activity at high levels Number of sold single family houses, monthly 7000 1000 Blue field indicates high/low since 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Handelsbanken Number of sold flats, monthly 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 3000 Blue field
Slide 51: Elevated supply of unsold flats
Eleveted supply of unsold flats Number of flats for sale at Hemnet 45000 40000 36000 4 30000 25000 20000 15000 40000 5000 Blue field indicates high/low since 2014 Jan Feb Handelsbanken Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of flats for sale in Stockholm area +4000 13000 2000 +1000 000 7000
Slide 52: Norwegian cover pool
Current available pool size NOK 142bn (EUR 12bn) Interest index distribution Assets utilized NOK 76bn (EUR 6bn) Floating rate (<1 year fixing) 91% Fixed rate (>1 year fixing) 9% Asset types Loans secured by mortgages Outstanding issues of covered bonds 82,9% Residential, 0% Public, 0% Domestic bench
Slide 53: Signs of price pressure in Norwegian market
Signs of price pressure in Norwegian market Handelsbanken Housing prices 425 Oslo 208) Norway, {<354] 2012 2013-2014 «2015-2016 2017 2018-2019 2020-2021 2022» 2023» 2024 +2025 ‘Source: Macrobond 53
Slide 54: Transaction activity trending upwards — as well as supply
Transaction activity trending upwards — as well as supply Housing market: Units approved for sale (existing homes) 124 114 Number, thousand Seasonally adjust¢d 2005 Handelsbanken 2010 2015 2020 2025 ‘Source: Macrobond Housing market: Transactions Number, thousand 12 11 10 Seasonally adjusted 2005 20
Slide 55: Strong asset pools even after severe stress
Strong assets pools even after severe stress Swedish pool Liabilities Usedassets Available assets WA max-LTV, (SEKbn) (SEKbn) (SEKbn) Actual 1,308 : i Property values -40% 657 723 1,096 65.0 110 Norwegian pool Liabilities Usedassets Available assets WA max-LTV (NOKbn) (NOKbn) (NOKbn) Actual Property
Slide 56: Sustainability
Sustainability Handelsbanken
Slide 57: Sustainability at Handelsbanken
Sustainability at Handelsbanken Creating and sharing knowledge resesreh education ane Juralim bout mance, ‘Advisory services ‘uracviony servees ge fur eutemars the foundations omacesuransble tana! Handelsbanken Handelsbanken has a holistic perspective on sustainability, where focus is the customer's
Slide 58: Green and sustainability linked loans
Green and sustainability linked loans Green lending: 31% growth rate 2025Q2 vs 2024Q2 140,000 120,000 100,000 80,000 60,000 40,000 20,000 ie} 2 2 DP PP > dD o> > Dad ad ob Ps gg Pog??? PP? PP PPP . a PMP MPP POMP M SMO P OM PIM OM SP OF Green Buildings Green Mortgages ™Clean transportation Forestry
Slide 59: Green loans by category
120,000 • Green • Mortgages 100,000 • Green Buildings • Water and 80,000 Waste • Management Renewable 60,000 Energy Pollution Prevention 40,000 and Control Environmenta • lly sustainable management • 20,000 Clean Transports • Energy 0 Efficiency •
Slide 60: Summary and highlights of the updated 2025 Framework
Summary and highlights of the updated 2025 Framework Key highlights ‘ - Handelsbanken Green Bond Framework No major updates compared to the previous Framework August 2025 * New Framework is aligned with ICMA’s Green Bond Principles (2025 edition) * Additional consideration has been given to the EU T
Slide 61: Contacts
Contacts Handelsbanken Andreas Skogelid Head Debt IR & Ratings Andreas.Skogelid@handelsbanken.se (+46) 70 326 722 Lars Kenneth Dahliqvist IR Officer Lars.Kenneth.Dahqvist@handelsbanken.se Peter Grabe Head of IR Peter.Grabe@handelsbanken.se Per Aronsson IR Officer Per.Aronsson@handelsbanken.se 61
Slide 62: Disclaimer
Disclaimer Handelsbanken * Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to anumber of risks and uncertainties that could cause actual results and performance to differ materially from any expected futur
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