Svenska Handelsbanken Ab Class A · OMXSTO:SHB_A
Svenska Handelsbanken Ab Class A — Handelsbanken — Debt Investor Presentation (2025)
60 slides from Svenska Handelsbanken Ab Class A's debt investor presentation, 2025
Slide 1: Debt investor presentation Q1 2025
Handelsbanken Handelsbanken Debt investor presentation Q1 2025
Slide 2: Contents
Contents Fundamentals . Balance sheet structure & Liquidity Latest interim results Asset quality * Capital Funding Stadshypotek & housing markets Sustainability
Slide 3: Fundamentals
Contents Fundamentals Handelsbanken
Slide 4: Ratings and peer comparison
Moody's S&P Fitch 0,40 Handelsbanken Aa2 AA- AA 0,15 0,16 0,19 DNB Aa2 AA- 0,13 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 12% ‘Handelsbanken 10% 08% 0.6% 0.4% 02% 0.0% -02% -0.4% SsseResseess PPRENRRARANS * Average for SEB, Nordea, Swedbank, Danske Bank and DNB Handelsbanken 2009 2010 2011 2012 2013 2014 —— Comparable Nordic banks” 2015 2016 zou 2018 2019 2020 2021 2022 2
Slide 6: Lending in home markets
Lending in home markets” Other lending to corporates and 100% households Commercial Average LTV 46% Real Estate LTV>75% 0.2% 90% 14% 80% Residential Real Average LTV 48% 70% —_—_—___ Estate LTV>75% 0.1% 60% tie 50% SS Housing co- Average LTV 29% cow operatives LTV>75% 0.4% : 1% 30% sos Household Ave
Slide 7: Lending by market
100% 55 100% Netherlands Handelsbanken 47 90% 137 18 Markets 90% 80% 65 176 Netherlands 80% Norway 70% 167 70% 60% Corporates Norway 60% UK SEK 1048 bn 50% 153 Households 50% 40% SEK 1232 bn UK 944 40% 30% Sweden, other 26 30% Sweden other 20% 465 20% 10% Sweden, Stadshypotek Sweden 10% 0% Stadshypo
Slide 8: Other corporate lending
100% Other corporate lending 100% 100% 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 9: Balance Sheet & Liquidity
Balance Sheet & Liquidity Handelsbanken
Slide 10: Strength and Stability
Strength and Stability Low risk balance sheet. Focus on Conservative funding structure & ample liquidity buffer long-term relationships * Easy to understand balance sheet * Balance between sticky deposits and through decades of low risk tolerance diversified wholesale funding * Lowrisk appetite with
Slide 11: Balance sheet structure and maturities
3,800 3,800 • 831 3,300 3,300 840 Cash and balances at central banks Liabilities and issued 2,800 securities maturing • 2,800 108 within 1 year Bonds and other highly 652 2,300 2,300 Deposits from the liquid securities including derivatives 1,459 public • 1,800 1,800 Loans repaid and Issued securiti
Slide 12: NSFR
122% NSFR 120% 122% Available Stable Funding 2124 SEK bn Own funds (100% weight) 206 SEK bn 110% Stabe retail deposits (95%) 363 SEK bn Less stable retail deposits (90%) 325 SEK bn Operational deposits (50%) 149 SEK bn 100% Other wholesale funding (50%) 1077 SEK bn Other 4 SEK bn 90% Required Stable
Slide 13: LCR and liquidity reserve
1,200 250% 1,000 • 200% 800 LCR 600 150% • 184 % 400 372 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 629 • Securities issued or guaranteed by sovereigns, central banks etc 250 Extremely hig
Slide 14: Deposits
1,600 1,000 600 1,400 1,200 331 800 1,000 400 181 478 600 SEK bn SEK bn 800 SEK bn 221 600 735 400 200 400 598 297 200 200 393 0 Total deposits 0 89 0 On demand deposits On demand deposits On demand deposits Private Corporate (excl retail/SME) retail/SME (excl retail/SME) Term deposits Guaranteed No
Slide 15: Latest interim results
Contents Latest interim results Handelsbanken
Slide 16: Q1 2025 highlights
Q1 2025 * SEK 8.1bn in operating profit * 13% ROE ¢ Nil resilience and lower expenses * 40.7% C/I ratio * 5th consecutive quarter with net credit loss recoveries * Low funding and liquidity risks * 18.4% CET1 ratio, 350bp above regulatory requirement Handelsbanken Operating profit SEK bn 9 8.5 8 7 6
Slide 17: Financial summary
Financial summary Q1 2025 compared to previous quarter Adjusted for items affecting SEKm Q12025 Q4 2024 Change _ comparability” Net interest income 1,347 1,745 -3% -2% Net fee and commission income 2,900 3,067 5% 5% Total income 14.789 16.025 -8% -T% Total expenses ~6.025 -6.363 -5% -2% Profit befor
Slide 18: Net interest income development
Net interest income development Q1 2025 compared to previous quarter Nil change: -3% SEKm 1,800 11,700 a 11600 Contribution from: 11,500 Margins and +400 funding: -2%-points 11,745 ; of ni 900 “4 FX-effects: -1%-points ‘a0 11.347 11,100 11,000 Q4 2024 Volume in home. Margins and Day count Foreign Ot
Slide 19: 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 31 Mar 2021 31 Mar 2022 31 Mar 2023 31 Mar 2024 31 Mar 2025 31 Mar 2021 31 Mar 2022 31 Mar 2023 31 Mar 2024 31 Mar 2025
Slide 20: 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 31 Mar 2021 31 Mar 2022 31 Mar 2023 31 Mar 2024 31 Mar 2025 31 Mar 2021 31 Mar 2022 31 Mar 2023 31 Mar 2024 31 Mar 2025, Handelsbanken * Volumes at EOP in home markets: Sweden, Norwa
Slide 21: Net fee and commission income
Net fee and commission income SEK m 3,200 3,100 3,000 2,900 2,800 2,700 2,600 2,500 2,400 2,300 2,200 12024 Q12025 Savings related” 68% of net fee and commissions Payment fees, net 15% Other, net 18% SEKm SEKm SEKm 2,500 4000 4000 2,000 1,500 42% 4000 o8 88888888 900 800 700 600 500 400 300 200 100
Slide 22: Expenses and staff
Expenses and staff Expenses Staff” SEKm Number of staff 6600 43,600 6,400 13,400 . 13,200 6.200 43,000 . SS 6.000 " 12,800 - 5,800 12,600 = \ 12,400 5,600 ; 12,200 AC 6400 12,000 5200 1,800 5,000 11,600 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 58 Okto
Slide 23: Asset Quality
Contents Asset Quality Handelsbanken
Slide 24: Asset quality
Asset q ual ity + Expert based add-on SEK +28m + Rating migrations SEK -3m + Better quality on newloans compared to exits SEK +19m + Other (incl. effects from change in loan durations and migrations to stage 3) SEK +17m Expected credit losses Credit losses Credit losses, net Stage 3, net 120 Updated
Slide 25: Annual forecasts Scenario 2024-2028
Central bank interest Commercial property House price Annual GDP growth, Unemployment, rates price development, development, forecasts % % % % % Scenario 2024-2028 Swe UK Nor Fin Swe UK Nor Fin Swe UK Nor Fin Swe UK Nor Fin Swe UK Nor Fin 2025 -1.7 -3.0 -2.4 -2.5 10.0 6.8 3.8 9.9 4.5 6.5 6.0 4.3 -10
Slide 26: Exposure by country
140,000 200,000 41% 60% 180,000 120,000 160,000 100,000 30% 140,000 80,000 24% 120,000 100,000 60,000 80,000 23% 40,000 60,000 5% 40,000 11% 20,000 6% 20,000 0 Sweden Norway UK the Netherlands 0 Sweden UK the Netherlands Norway
Slide 27: Property management exposure and stage provisions
Property management — Exposure & Stage 2 provisions Total exposure 800,000 750,000 700,000 650,000 600,000 550,000 500,000 Handelsbanken 5 7 9 14 Exposure - Property companies (RHS) 13 17 Stage 2 provisions — Sweden and abroad 31 mar 2021 30 sep 2021 3imar 30sep 31mar 30sep 31 mar 2022 2022 ©2023» 2
Slide 28: Property exposure by collateral and country
SEK bn Sweden UK Norway Netherlands Group % Government guarantees 18 0 3 20 3% Residential 183 70 18 14 284 42% Office, retail, hotel 90 53 72 14 229 34% Other real estate 12 0 9 38 59 9% Industry, logistics 16 20 9 1 45 7% Agriculture, forestry 1 1 0 - 2 0% Other collateral 1 0 1 - 1 0% Unsecured 1
Slide 29: Capital
Contents Capital Handelsbanken
Slide 30: Strong financial position
Strong financial position CET1 ratio, Q1 2025 20% 460 19% 18.4% 18% 7% 16% 16% ors ee range o 5 7 159 179% Solid asset quality 14.9% = Low funding and liquidity risk = Strong liquidity buffer = CETi ratio 50bp above long term 60 target range 40 = SEK 5.0 per share in anticipated dividend for Q1 20 R
Slide 31: Change in CET1-ratio from previous quarter
Change in CET1-ratio from previous quarter CET1-ratio Capital REA effects effects % A XK r vv 20.0 5 0 «| 85 180 75 0 165 160 CeTirato Earings Dedicted Foreign Foro Valune Operational Natofact Barking Stctura (Qa24 “forthe dends exchange exchange change ek iferont™ Package FX porod ifects oltecte ‘q
Slide 32: Capital requirements and buffers
Requirement, SEKm Q125 Total 19,535 T1 13,965 CET1 119,897 FI requirement, % of REA Q125 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% 30,171 Tier 1 r
Slide 33: Capital requirement based on SREP 2024
Capital requirement based on 16.0 SREP 2024 14.9% CET1 Pillar 2G 900,000 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 12.0 2.0 IRB Overhaul 0.5, IRBB Operational risk 700,000 0.3 & Pension risk 0.04) MDA-line 14
Slide 34: Capital requirements and capital base
25 25 25 3.1 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 4.2 14.4 5 5 5 4.5 0 0 0 Minimum capital req. Systemic risk buffer** Capital base, SEKbn Countercyclical buffer Pillar 2R • • • • • • • • • • •
Slide 35: 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 36: Funding
Contents Funding Handelsbanken
Slide 37: Credit ratings vs peers
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 Bank 9 Aa2 Aa2 A+ AA- AA AA- • Bank 10 Aa2 AA- AA- Bank 11 Aa2 A+ AA Bank 12 Aa2 A+ AA • Bank 13 Aa2 AA- AA- Bank 14 Aa2 AA- AA- Bank 15 Aa2
Slide 38: Funding mix and maturity profile
120% 100% 100% Norwegian 100% Other cover pool in EUR… 14% 80% 90% 90% Norwegia n cover EUR Certificates pool in… 60% EUR 73% 80% 576 60% 80% Swedish 40% Subordinated debt cover 35 pool in 70% 70% EUR 20% USD USD 58 27% 27% 60% 0% Senior 60% Senior preferred Senior non-preferred non- Senior preferre
Slide 39: Long-term bond issuance
Q1 Q1 Q1 Long-term bond issuance, SEK bn 2022 2023 2024 2025 Long-term bond issuance, SEK bn 2025 2024 Change Senior bonds 57 67 34 14 Senior bonds 14 15 -1 Covered bonds 131 163 121 39 Covered bonds 39 45 -6 Subordinated 11 9 6 0 Subordinated 0 0 0 Total 199 239 161 53 Total 53 60 -7 Feb 8, 2024 Sv
Slide 40: Maturity profile by instrument
70 10 60 50 40 5 30 20 10 0 0 2025 2026 2027 2028 2029- 2025 2026 2027 2028 2029- SP SNP SP Other 25 70 60 20 50 15 40 10 30 20 5 10 0 0 2025 2026 2027 2028 2029- 2025 2026 2027 2028 2029- SP USD SNP USD SP SNP
Slide 41: Capital and MREL requirements
450 394 450 400 400 350 SP>1yr 350 287 139 300 300 CBR* 255 250 70 SNP>1yr 250 229 71 SNP>1yr 200 MCB** CBR* 71 200 58 70 150 150 Leverage ratio x2 Own funds 100 2x Leverage ratio x2 207 (T1+T2) 100 2x Own funds (P1 min+P2R) 207 184 (P1 min+P2R) 184 50 159 159 50 0 0 Risk based Leverage based Availa
Slide 42: Non-encumbered assets
Non-encumbered assets 31 March 2025 Accumulated coverage ratio in SEK bn NEA % of unsecured funding” Holdings with central banks and securities in the liquidity portfolio 948 100% Mortgage loans 763 180% Other household lending 136 194% Property company lending lowest risk class (1-3) 247 220% Other
Slide 43: Stadshypotek & Housing markets
Stadshypotek & Housing markets Handelsbanken
Slide 44: Mortgage growth picking up
Mortgage growth picking up + Housing prices and lending 20 15 > a ae \ NO, 5 WL ese $ a ze 0 ea 5 “10 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), Valueg
Slide 45: 1,000 2011 18 19 20 21 22 23 24 25
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 46: Debt/Income and LTV
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 47: Swedish cover pool (SEK)
Current available pool size SEK 1299bn (EUR 113bn) Assets utilized SEK 701bn (EUR 61bn) Interest index distribution Floating rate (<1 year fixing) 64% Loans secured by mortgages. Loans to or Asset types guaranteed by public sector in Sweden Fixed rate (>1 year fixing) 36% (state & municipalities) Ou
Slide 48: Signs of slower recovery
Signs of slower recorvery Housing prices (m/m) yO wo Uh ul a | lh, ih Ht ' sul ih I, il lh 4 wv > 9° 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 2254 £ 2004
Slide 49: 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 50: Elevated supply of unsold flats
Eleveted supply of unsold flats Number of flats for sale at Hemnet 40000 36000 30000 25000 20000 15000 140000 5000 2025 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 Number +3000 12000 +1000 19000 000
Slide 51: Norwegian cover pool (NOK)
Current available pool size NOK 142bn (EUR 12bn) Interest index distribution Assets utilized NOK 80bn (EUR 7bn) Floating rate (<1 year fixing) 93% Fixed rate (>1 year fixing) 7% Asset types Loans secured by mortgages Outstanding issues of covered bonds 76.8% Residential, 0% Public, 0% Domestic bench
Slide 52: Positive price trend in Norwegian market
Positive price trend in Norwegian market Handelsbanken Housing prices 425 Oslo [<ar3] Norway. aa 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ‘Source: Macrobond 52
Slide 53: Transaction activity trending upwards
Transaction activity trending upwards Housing market: Units approved for sale (existing homes) 124 114 Number, thousand Seasonally adjust 2005 Handelsbanken 2010 2015 2020 2025 ‘Source: Macrobond Housing market: Transactions 12 11 Seasonally adjusted Number, thousand 2005 2010 2015 2020 2025 Source:
Slide 54: Strong asset pools even after severe stress
Strong assets pools even after severe stress Swedish pool Liabilities Used assets Available assets WA max-LTV (SEKbn) (SEKbn) (SEKbn) Actual 638 701 4,305 54.6 +10 | | Property values -40% 638 701 1,089 65.1 110 Norwegian pool Liabilities Used assets Available assets WA max-LTV (NOKbn) (NOKbn) (NOKb
Slide 55: Sustainability
Contents Sustainability Handelsbanken
Slide 56: 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 57: Green and sustainability linked loans
Green and sustainability linked loans 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 2 © » of Ss Handelsbanken FPP Mh Peres? att a oot thats oe gr ong an transportation ‘orest rye = Renewable Energy = Water and Waste Management ™ Pollution Prevention and Control ®
Slide 58: 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 - Efficiency
Slide 59: Contacts
Contacts Handelsbanken Andreas Skogelid Head Debt IR & Ratings Andreas.Skogelid@handelsbanken.se (+46) 70 326 7228 Peter Grabe Head of IR Peter.Grabe@handelsbanken.se 59
Slide 60: Disclaimer
Disclaimer Handelsbanken * 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 futu