2012 interim report · 2019-11-18 · interim report january – september 2012 3 handelsbanken...

January–September

2012Interim Report

Handelsbanken’s Interim ReportJANUARY– SEPTEMBER 2012

Summary January – September 2012, comparedwith January – September 2011

• Operating profit increased by 9 per cent to SEK 13,504 million (12,426)

• The period’s profit after tax for total operations went up by 8 per cent to SEK 10,008 million (9,277) and

earnings per share increased by 7 per cent to SEK 15.95 (14.90)

• Operating profit in Branch office operations outside Sweden went up by 50 per cent and in the Swedish

branch office operations by 6 per cent

• Equity rose by 10 per cent, while return on equity for total operations was more or less unchanged at

13.7 per cent (13.8)

• Income increased by 7 per cent to SEK 26,171 million (24,435)

• Net interest income rose by 14 per cent to SEK 19,597 million (17,256)

• The C/I ratio improved to 45.1 per cent (46.8)

• The loan loss ratio was 0.07 per cent (0.05)

• The tier 1 capital ratio in Basel II rose to 20.5 per cent (17.4) and the core tier 1 capital ratio increased to

17.9 per cent (14.7)

• All bonds maturing up to and including the end of 2013 have been prefinanced and the Bank’s liquidity

reserve exceeded SEK 750 billion

• Twenty new branches were opened in the UK bringing the total to 124 and a further 13 are in the opening phase

Summary of Q3 2012, compared with Q2 2012

• Operating profit declined by 3 per cent, for seasonal reasons, to SEK 4,405 million (4,528) and increased by

1 per cent compared with the third quarter of 2011

• Operating profit for Branch office operations outside Sweden, the individually best quarterly result, rose by

8 per cent in local currency

• Income amounted to SEK 8,466 million (8,839)

• The C/I ratio improved to 44.7 per cent (45.5) in the Group and to 32.9 per cent (34.4) in the Swedish

branch operations

• The period’s profit after tax for total operations decreased by 5 per cent to SEK 3,246 million (3,414) and

earnings per share were SEK 5.15 (5.44)

• Return on equity for total operations was 13.2 per cent (14.4)

• The loan loss ratio was unchanged at 0.07 per cent (0.07)

2 Handelsbanken

INTERIM REPORT JANUARY – SEPTEMBER 2012

2 Handelsbanken

Contents Page

Group – Overview 4

Group performance 5

Group – Business segments 8

Branch office operations in Sweden 9Branch office operations outside Sweden 11 Branch office operations in the UK 13 Branch office operations in Denmark 14 Branch office operations in Finland 15 Branch office operations in Norway 16 Handelsbanken International 17Handelsbanken Capital Markets 18Other 20

Condensed set of financial statements – The Group 21Key figures 21Income statement 22Earnings per share 22Statement of comprehensive income 23Quarterly performance 23Balance sheet 24Statement of changes in equity 25Cash flow statement 25

Note 1 Accounting policies 26Note 2 Net interest income 26Note 3 Net fee and commission income 27Note 4 Net gains/losses on financial items at fair value 27Note 5 Other administrative expenses 27Note 6 Loan losses and impaired loans 28Note 7 Discontinued operations 29Note 8 Loans and credit exposure 30Note 9 Derivatives 31Note 10 Goodwill and other intangible assets 32Note 11 Due to credit institutions, deposits and borrowing from the public 32Note 12 Assets managed 32Note 13 Turnover of own debt instruments and shares 32Note 14 Pledged assets, contingent liabilities and other commitments 33Note 15 Classification of financial assets and liabilities 33Note 16 Fair value measurement of financial assets and liabilities 35Note 17 Assets and liabilities by currency 36Note 18 Related-party transactions 36Note 19 Capital base and capital requirement in the banking group 37Note 20 Risk and capital management 40Note 21 The Handelsbanken share 42

Condensed set of financial statements – Parent company 43

Information on phone conference, etc 45

Auditors’ report 46

Share price performance and other information 47

3 Handelsbanken



3 Handelsbanken

Handelsbanken Group – Overview

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep

2011 ChangeFull year

2011

Summary income statementNet interest income 6,462 6,066 7% 6,575 -2% 19,597 17,256 14% 23,613

Net fee and commission income 1,742 1,903 -8% 1,825 -5% 5,459 5,796 -6% 7,673

Net gains/losses on financial items at fair value 191 284 -33% 219 -13% 754 953 -21% 1,016

Risk result - insurance 33 52 -37% 39 -15% 108 171 -37% 209

Other dividend income 8 4 100% 142 -94% 151 146 3% 146

Share of profit of associates 1 -8 5 -80% 1 12 -92% 9

Other income 29 27 7% 34 -15% 101 101 0% 143Total income 8,466 8,328 2% 8,839 -4% 26,171 24,435 7% 32,809

Staff costs -2,562 -2,498 3% -2,670 -4% -7,900 -7,432 6% -9,942

Other administrative expenses -1,108 -1,206 -8% -1,236 -10% -3,558 -3,668 -3% -5,060Depreciation, amortisation and impairments of property, equipment and intangible assets -113 -112 1% -117 -3% -352 -342 3% -462Total expenses -3,783 -3,816 -1% -4,023 -6% -11,810 -11,442 3% -15,464

Profit before loan losses 4,683 4,512 4% 4,816 -3% 14,361 12,993 11% 17,345Net loan losses -277 -157 76% -288 -4% -856 -573 49% -816Gains/losses on disposal of property, equipment and intangible assets -1 5 0 -1 6 7

Operating profit 4,405 4,360 1% 4,528 -3% 13,504 12,426 9% 16,536Taxes -1,167 -1,181 -1% -1,143 2% -3,582 -3,276 9% -4,372Profit for the period from continuing operations 3,238 3,179 2% 3,385 -4% 9,922 9,150 8% 12,164Profit for the period from discontinued operations, after tax 8 30 -73% 29 -72% 86 127 -32% 159Profit for the period 3,246 3,209 1% 3,414 -5% 10,008 9,277 8% 12,323

Summary balance sheetLoans to the public 1,620,505 1,598,737 1% 1,632,464 -1% 1,620,505 1,598,737 1% 1,591,128 of which mortgage loans 868,726 837,533 4% 856,736 1% 868,726 837,533 4% 843,929

Deposits and borrowing from the public 728,572 720,482 1% 723,669 1% 728,572 720,482 1% 724,888 of which households 266,233 253,210 5% 266,199 0% 266,233 253,210 5% 255,942

Total equity 100,987 91,696 10% 97,014 4% 100,987 91,696 10% 94,524Total assets 2,513,322 2,475,566 2% 2,546,583 -1% 2,513,322 2,475,566 2% 2,454,366

Summary of key figuresReturn on equity, total operations * 13.2% 14.1% 14.4% 13.7% 13.8% 13.5%

Return on equity, continuing operations * 13.2% 14.0% 14.3% 13.5% 13.6% 13.4%

C/I ratio, continuing operations 44.7% 45.8% 45.5% 45.1% 46.8% 47.1%

Earnings per share, total operations, SEK 5.15 5.15 5.44 15.95 14.90 19.78 - after dilution 5.07 5.00 5.34 15.59 14.60 19.39

Tier 1 ratio, Basel II 20.5% 17.4% 19.4% 20.5% 17.4% 18.4%

* When calculating return on equity, equity is adjusted for the impact of unrealised changes in the value of financial assets classified as "Available for Sale" and for cash flow hedges.

4 Handelsbanken



4 Handelsbanken

Group performance JANUARY – SEPTEMBER 2012 COMPARED WITH JANUARY – SEPTEMBER 2011 The Group’s operating profit increased by 9 per cent to SEK 13,504 million (12,426). Operating profit went up by 50 per cent in Branch office operations outside Sweden and by 6 per cent in the Swedish branch office operations.

The period’s profit after tax for total operations increased by 8 per cent to SEK 10,008 million (9,277) and earnings per share increased by 7 per cent to SEK 15.95 (14.90). Return on equity for total operations was more or less unchanged at 13.7 per cent (13.8) despite a growth in equity of 10 per cent.

The C/I ratio for continuing operations improved to 45.1 per cent (46.8).

Income

Income increased by 7 per cent to SEK 26,171 million as a result of rising net interest income. Exchange rate movements had only a marginal impact on income.

Net interest income rose by 14 per cent to SEK 19,597 million due to rising business volumes and interest margins. Net interest income rose by 28 per cent in Branch operations outside Sweden and by 8 per cent in the Swedish branch operations. The Group’s costs for the Swedish Stabilisation Fund and various deposit guarantees reduced net interest income by SEK -811 million (-805).

The average volume of loans to the public grew by 5 per cent to SEK 1,608 billion (1,538). The increase was 5 per cent for the household sector and 4 per cent for the corporate sector.

The average volume of deposits increased by 11 per cent to SEK 690 billion (623). Corporate deposits grew by 13 per cent and household deposits by 7 per cent.

Net fee and commission income fell by SEK 337 million, or 6 per cent, to SEK 5,459 million (5,796), mainly due to lower equity market related income. Two thirds of the decrease, or SEK 221 million, is due to lower brokerage income. A further SEK 77 million is due to lower insurance commissions as a result of a lower yield split.

The trend of low customer activity continued in the third quarter and net gains/losses on financial items at fair value decreased by 21 per cent to SEK 754 million (953).

Expenses

Total expenses rose by 3 per cent to SEK -11,810 million. Staff costs increased by 6 per cent while other administrative expenses fell by 3 per cent. Three percentage points of the increase in staff costs is due to the fact that the allocation to the Oktogonen Foundation rose to SEK -688 million (-631), and that the cost for the corridor effect when calculating pensions in accordance with IAS 19 rose to SEK -165 million (-15). Variable compensation, including social security costs and other payroll overheads, decreased to SEK -86 million (-178). The remainder of the increase in staff costs is due to a higher number of employees and the annual salary adjustment.

The average number of employees rose to 11,204 (11,197).

Other administrative expenses fell by 3 per cent to SEK -3,558 million (-3,668), due to unchanged or decreased expenses in most categories.

Loan losses

Loan losses were SEK -856 million (-573) and the credit quality continued to be stable. The loan loss ratio was 0.07 per cent (0.05). Net impaired loans rose to SEK 3,067 million (2,804), equivalent to 0.18 per cent (0.17) of lending.

SEK mJan-Sep

2012Jan-Sep

2011 Change

Net interest income 19,597 17,256 14%

Net fee and commission income 5,459 5,796 -6%

Net financial items 754 953 -21%

Other income 361 430 -16%

Total income 26,171 24,435 7%

SEK mJan-Sep

2012Jan-Sep

2011 Change

Staff costs -7,900 -7,432 6%

Other administrative expenses -3,558 -3,668 -3%

Depreciation and amortisation -352 -342 3%

Total expenses -11,810 -11,442 3%

SEK mJan-Sep

2012Jan-Sep

2011 Change

Net loan losses -856 -573 -283Loan loss ratio as a % of loans 0.07 0.05 0.02

Impaired loans, net 3,067 2,804 9%

Proportion of impaired loans, % 0.18 0.17 0.01

5 Handelsbanken



5 Handelsbanken

Q3 2012 COMPARED WITH Q2 2012 The third quarter of the year is subject to seasonal effects and the operating profit went down by 3 per cent to SEK 4,405 million (4,528). Compared with the third quarter of the previous year, profit was 1 per cent higher and was the highest ever achieved in a single third quarter.

For Branch operations outside Sweden, operating profit rose in all home markets, both sequentially and also compared with the third quarter of 2011.

The C/I ratio was 44.7 per cent (45.5) and the period’s profit after tax for total operations decreased by 5 per cent to SEK 3,246 million (3,414). Earnings per share were SEK 5.15 (5.44) and return on equity went down to 13.2 per cent (14.4).

Income

Income went down to SEK 8,466 million or by 4 per cent, with one percentage point of this being due to the strengthening of the Swedish krona.

Net interest income decreased by SEK 113 million, or 2 per cent, to SEK 6,462 million. Exchange rate movements negatively affected net interest income by SEK 81 million and lower interest rates meant that deposit margins in the Swedish branch operations went down by SEK 87 million compared with the previous quarter. The Group’s costs for the Swedish Stabilisation Fund and various deposit guarantees also fell by SEK 49 million to SEK -242 million (-291). The benchmark effect in Stadshypotek decreased to SEK -4 million (17). Net interest income went up by 2 per cent in Branch office operations outside Sweden and by 1 per cent in the Swedish branch office operations.

The average volume of loans to the public went down by 1 per cent to SEK 1,611 billion (1,622) due to exchange rate movements affecting the average volume by SEK -20 billion. In local currency, the average volume rose by 1 per cent.

Total average deposits rose by 3 per cent to SEK 698 billion (680). The average volume of household deposits increased by 2 per cent, while corporate deposits grew by 3 per cent.

Net fee and commission income fell by 5 per cent or SEK 83 million to SEK 1,742 million (1,825). The decline is mainly due to lower lending and guarantee commissions and to lower equity brokerage and advisory commissions. The decline in net fee and commission income was partly offset by net payment commissions increasing by 1 per cent compared with the previous quarter.

Net gains/losses on financial items at fair value declined to SEK 191 million (219) due to a seasonally-related fall in customer activity in the third quarter.

Expenses

The Bank’s expenses are normally seasonally lower in the third quarter and total expenses fell by 6 per cent to SEK -3,783 million. Exchange rate movements of SEK 62 million explain two percentage points of the decrease.

Staff costs fell by SEK 108 million, or 4 per cent, one third of this being due to exchange rate movements. The remaining decrease is mainly attributable to lower expenses at Handelsbanken Capital Markets. The preliminary allocation for variable compensation for the period, including social security costs and other payroll overheads, amounted to SEK -22 million (-23), while the allocation to the Oktogonen profit-sharing foundation totalled SEK -229 million (-229). The corridor effect in the calculation of pension costs according to IAS 19 was unchanged at SEK -55 million (-55).

Other administrative expenses fell by 10 per cent to SEK -1,108 million, due to generally lower expenses in most categories.

The average number of employees rose to 11,381 (11,095), chiefly due to an increased number of temporary employees during the summer holiday period.

Loan losses

Loan losses went down to SEK -277 million and the loan loss ratio was unchanged at 0.07 per cent (0.07). Net impaired loans were SEK 3,067 million (2,782), equivalent to 0.18 per cent (0.16) of lending.

PERFORMANCE IN THE BUSINESS SEGMENTS (Q3 2012 compared with Q2 2012)

At Branch office operations in Sweden, operating profit rose by 3 per cent to SEK 3,324 million (3,221), due to lower expenses and rising net interest income. The loan loss ratio went down to 0.03 per cent (0.04).

For Branch office operations outside Sweden, operating profit increased by 5 per cent to SEK 1,208 million (1,150), the highest in an individual quarter. Profits rose in all home markets. Net interest income increased by

SEK mQ3

2012Q2

2012 Change

Net interest income 6,462 6,575 -2%

Net fee and commission income 1,742 1,825 -5%

Net financial items 191 219 -13%

Other income 71 220 -68%

Total income 8,466 8,839 -4%

SEK mQ3

2012Q2

2012 Change

Staff costs -2,562 -2,670 -4%

Other administrative expenses -1,108 -1,236 -10%

Depreciation and amortisation -113 -117 -3%

Total expenses -3,783 -4,023 -6%

SEK mQ3

2012Q2

2012 Change

Net loan losses -277 -288 11Loan loss ratio as a % of loans 0.07 0.07 0.00

Impaired loans, net 3,067 2,782 10%

Proportion of impaired loans, % 0.18 0.16 0.02

6 Handelsbanken



6 Handelsbanken

2 per cent and expenses fell by 7 per cent. The loan loss ratio was 0.18 per cent (0.16).

Handelsbanken Capital Markets’ operating profit decreased to SEK 56 million (205), due to lower income. The Bank was the largest player in new savings in mutual funds in Sweden during the first nine months of the year, with a net inflow of SEK 14.5 billion. For the market as a whole, the net inflow in Sweden totalled SEK 11.7 billion.

FUNDING AND LIQUIDITY There was a high level of demand for the Bank’s issues of short- and long-term fixed income securities during the period and Handelsbanken’s funding cost continued to be the lowest in the European banking market. During the third quarter, bonds with a total value of SEK 79 billion were issued, comprising SEK 34 billion in senior bonds and SEK 45 billion in covered bonds. Issues included the US market’s first 7-year covered bond issue since 2008 and the Bank’s first covered bond issue on the Australian market. During the first nine months of the year, the issued bond volume was SEK 203 billion, with SEK 127 billion of this in covered bonds and SEK 76 billion in senior bonds. The average maturity for the issued volume was 4.7 years. The volumes issued during the period means that all bonds maturing up to and including the end of 2013 have now been prefinanced.

In early October, the Bank issued a secondary capital loan in Swedish kronor of SEK 3 billion. The conditions of the loan are adapted to fulfil the requirements of future capital regulations.

The Bank’s total liquidity reserve was maintained at a high level, exceeding SEK 750 billion. Cash funds and liquid assets invested with central banks amounted to SEK 377 billion, while the volume of liquid bonds totalled SEK 100 billion. The remainder of the reserve mainly comprises an unutilised issue amount for covered bonds at Stadshypotek.

According to the current definition, the Handelsbanken Group’s liquidity coverage ratio (LCR) was 139 per cent at the end of the period. In USD and EUR, the LCR was 209 per cent and 114 per cent respectively.

CAPITAL

The capital base rose during the quarter to SEK 102 billion (101), and the capital ratio calculated according to Basel II increased to 21.0 per cent (19.9).

The profit for the period is the main reason for equity increasing by SEK 4.0 billion to SEK 101.0 billion during the third quarter. Tier 1 capital rose to SEK 100.0 billion (98.8) and core tier 1 capital rose by SEK 2.0 billion to SEK 87.6 billion (85.6).

During the quarter, the core tier 1 capital ratio according to Basel II increased to SEK 17.9 per cent (16.8), and the tier 1 ratio according to Basel II went up to 20.5 per cent (19.4). Of the increase of 1.1 percentage points in the tier 1 capital ratio, the period’s profit contributed 0.4 percentage points, while reduced lending volumes had a further 0.1 percentage point impact. The mix effect of the fact that new lending volumes were of higher credit quality than the portfolio average had a 0.3 percentage point positive impact, while exchange rate movements had a 0.2 percentage point positive effect.

CRD 4/IAS 19 The Bank estimates that the transition from Basel II to Basel III will lead to a reduction in the core tier 1 ratio by between 1.5 and 2.0 percentage points. At the end of the third quarter, the reduction was 2.0 percentage points and the core tier 1 ratio according to Basel III was thus 15.9 per cent. If the changes in pension regulations (IAS 19) had been applied at the end of the third quarter, the core tier 1 ratio according to Basel III would have been 15.8 per cent. For other effects of the change in IAS 19, see Note 1.

RATING During the period, Handelsbanken’s short-term and long-term ratings were unchanged with a stable outlook from the rating agencies which monitor the Bank.

SEK m30 Sep

201230 Jun

2012 Change

Core tier 1 ratio, Basel II 17.9% 16.8% 1.1

Tier 1 ratio, Basel II 20.5% 19.4% 1.1

Capital ratio, Basel II 21.0% 19.9% 1.1

Equity 100,987 97,014 4%

Tier 1 capital 99,971 98,781 1%

Long-term Short-termFinancial strength

Standard & Poor's AA- A-1+

Fitch AA- F1+

Moody's Aa3 P-1 C

DBRS AA (low)

7 Handelsbanken



7 Handelsbanken

Handelsbanken Group – Business segments

The business segments are Branch office operations in Sweden, Branch office operations outside Sweden and Capital Markets. The income statements by segment include internal items such as internal interest, commissions and payment for internal services rendered,

primarily according to the cost price principle. The part of Capital Markets’ operating profit that does not involve risk-taking is distributed to the branch office operations that are responsible for the customers.

January - September 2012

SEK m

Branch office operations in

Sweden

Branch office operations

outside Sweden

Capital Markets Other

Adjustments & eliminations

GroupJan-Sep

2012

Net interest income 12,633 6,294 473 226 -29 19,597

Net fee and commission income 2,528 1,059 1,801 71 5,459Net gains/losses on financial items at fair value 428 266 416 -356 754

Risk result - insurance 108 108

Share of profit of associates 1 1

Other income 11 54 8 179 252

Total income 15,600 7,673 2,806 121 -29 26,171

Staff costs -2,375 -2,183 -1,672 -1,986 316 -7,900

Other administrative expenses -860 -678 -579 -1,441 -3,558

Internal purchased and sold services -2,062 -789 -96 2,918 29

Depreciation and amortisation -65 -58 -40 -189 -352

Total expenses -5,362 -3,708 -2,387 -698 345 -11,810

Profit before loan losses 10,238 3,965 419 -577 316 14,361

Net loan losses -265 -591 -856Gains/losses on disposal of property, equipment and intangible assets 0 -1 0 -1

Operating profit 9,973 3,373 419 -577 316 13,504

Profit allocation 444 83 -527 0

Operating profit after profit allocation 10,417 3,456 -108 -577 316 13,504

Internal income * -2,366 -4,932 -870 8,168 -


SEK m


Sweden


outside Sweden

Capital Markets Other

Adjustments & eliminations

GroupJan-Sep

2011

Net interest income 11,655 4,924 503 199 -25 17,256

Net fee and commission income 2,742 1,076 1,986 -8 5,796Net gains/losses on financial items at fair value 352 296 701 -396 0 953

Risk result - insurance 171 171

Share of profit of associates 12 12

Other income 17 43 13 174 247

Total income 14,766 6,339 3,374 -19 -25 24,435

Staff costs -2,348 -2,024 -1,650 -1,923 513 -7,432

Other administrative expenses -904 -705 -625 -1,434 -3,668

Internal purchased and sold services -2,025 -761 -57 2,818 25

Depreciation and amortisation -68 -52 -34 -188 -342

Total expenses -5,345 -3,542 -2,366 -727 538 -11,442

Profit before loan losses 9,421 2,797 1,008 -746 513 12,993

Net loan losses -18 -555 -573Gains/losses on disposal of property, equipment and intangible assets 0 1 5 6

Operating profit 9,403 2,243 1,008 -741 513 12,426

Profit allocation 478 94 -572 0

Operating profit after profit allocation 9,881 2,337 436 -741 513 12,426

Internal income * -1,942 -5,391 -749 8,082

* Internal income which is included in total income comprises income from transactions with other operating segments. Since interest income and interest expense are reported net as income, this means that internal income includes the net amount of the internal funding cost among segments.

8 Handelsbanken



8 Handelsbanken

Branch office operations in Sweden Branch office operations in Sweden comprise six regional banks, as well as Handelsbanken Finans’s and Stadshypotek’s operations in Sweden. At Handelsbanken, the branches are the base of all operations, with responsibility for all customers. The regional banks offer a full range of banking services at 461 branches throughout Sweden. Handelsbanken Finans offers a full range of finance company services and works through the Bank’s branches and in financing collaborations with retailers and vendors. Stadshypotek is the Bank’s mortgage company, and is completely integrated with the branch operations.

INCOME STATEMENT

BUSINESS VOLUMES

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 4,191 4,033 4% 4,161 1% 12,633 11,655 8% 15,827

Net fee and commission income 819 896 -9% 860 -5% 2,528 2,742 -8% 3,630

Net gains/losses on financial items at fair value 135 98 38% 137 -1% 428 352 22% 510

Other income 3 3 0% 1 200% 11 17 -35% 20Total income 5,148 5,030 2% 5,159 0% 15,600 14,766 6% 19,987

Staff costs -785 -780 1% -789 -1% -2,375 -2,348 1% -3,118

Other administrative expenses -278 -329 -16% -315 -12% -860 -904 -5% -1,245

Internal purchased and sold services -659 -639 3% -703 -6% -2,062 -2,025 2% -2,734

Depreciation and amortisation -21 -24 -13% -22 -5% -65 -68 -4% -91Total expenses -1,743 -1,772 -2% -1,829 -5% -5,362 -5,345 0% -7,188Profit before loan losses 3,405 3,258 5% 3,330 2% 10,238 9,421 9% 12,799

Net loan losses -81 -76 7% -109 -26% -265 -18 -47Gains/losses on disposal of property, equipment and intangible assets 0 0 0% 0 0% 0 0 0% 0Operating profit 3,324 3,182 4% 3,221 3% 9,973 9,403 6% 12,752

Profit allocation 144 127 13% 163 -12% 444 478 -7% 664Operating profit after profit allocation 3,468 3,309 5% 3,384 2% 10,417 9,881 5% 13,416

Internal income -649 -723 10% -796 18% -2,366 -1,942 -22% -2,804Cost/income ratio, % 32.9 34.4 34.4 33.4 35.1 34.8

Loan loss ratio, % 0.03 0.03 0.04 0.03 0.00 0.00

Allocated capital 54,124 51,609 5% 51,592 5% 54,124 51,609 5% 50,408Return on allocated capital, % 18.9 18.9 19.3 19.1 19.3 19.6

Average number of employees 4,527 4,679 -3% 4,293 5% 4,394 4,508 -3% 4,478Number of branches 461 461 0% 461 0% 461 461 0% 461

Average volumes, SEK bnQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Loans to the public*

Household 588 575 2% 584 1% 585 566 3% 570

of which mortgage loans 535 522 2% 530 1% 531 513 4% 517

Corporate 480 487 -1% 483 -1% 481 475 1% 479

of which mortgage loans 226 219 3% 229 -1% 224 212 6% 215Total 1,068 1,062 1% 1,067 0% 1,066 1,041 2% 1,049

Deposits and borrowing from the public

Household 210 198 6% 204 3% 206 194 6% 196

Corporate 160 157 2% 165 -3% 164 156 5% 157Total 370 355 4% 369 0% 370 350 6% 353* Excluding loans to the National Debt Office.

9 Handelsbanken



9 Handelsbanken

JANUARY – SEPTEMBER 2012 COMPARED WITH JANUARY – SEPTEMBER 2011

Financial performance Operating profit rose by 6 per cent to SEK 9,973 million (9,403), due to rising income, while expenses were basically unchanged.

Net interest income rose by 8 per cent, or SEK 978 million, to SEK 12,663 million (11,655). The effect of greater deposit and lending volumes amounted to SEK 354 million and changes in deposit and lending margins positively affected net interest income by SEK 170 million. The fees to the Stabilisation Fund and the deposit guarantee rose by SEK 34 million and burdened net interest income by SEK -531 million (-497). The benchmark effect in Stadshypotek amounted to SEK 2 million (-8).

Net fee and commission income fell by 8 per cent to SEK 2,528 million (2,742), mainly due to lower securities-related commission income.

Net gains/losses on financial items at fair value increased by 22 per cent to SEK 428 million (352).

Total expenses were more or less unchanged at SEK -5,362 million (-5,345). The C/I ratio improved to 33.4 per cent (35.1).

Loan losses were SEK -265 million (-18). The loan loss ratio was 0.03 per cent (0.00).

Business development At the beginning of October, Swedish Quality Index (SKI) reported its annual survey of customer satisfaction in the banking sector where Handelsbanken comfortably retained its leading position among both corporate and private customers.

For Handelsbanken, being available for customers is vital. Personal meetings with the customer are key, and to get even closer to their customers, several branches are planning to open new physical meeting-places. During the period, six new meeting-places were opened and more are planned.

The average volume of deposits from households continued to increase, amounting to SEK 206 billion (194), a rise of 6 per cent compared with the equivalent period in the previous year. At the same time, figures from Svensk Fondstatistik showed that Handelsbanken’s share of the mutual fund market continues to grow. During the first nine months of the year, net new savings in the Bank’s mutual funds in Sweden amounted to

SEK 14.5 billion as compared to total net inflow for the whole market which amounted to SEK 11.7 billion in Sweden.

The average volume of mortgage loans to private individuals grew by 4 per cent to SEK 531 billion (513).

In the first nine months, the average volume of corporate lending increased by 1 per cent compared to the corresponding period in the previous year amounting to SEK 481 billion (475).

Q3 2012 COMPARED WITH Q2 2012 Operating profit increased by 3 per cent to SEK 3,324 million (3,221).

Net interest income rose by 1 per cent to SEK 4,191 million (4,161). Income from deposit margins declined by SEK 87 million as a result of falling short-term interest levels. The negative effect was offset slightly by a SEK 28 million improvement in lending margins during the period, together with a reduction of SEK 66 million in fees to the Swedish Stabilisation Fund and deposit guarantee fund to SEK -136 million (-202). AtStadshypotek, the benchmark effect declined to SEK -4 million (17).

Loans to households continued to grow, although the rate of growth continued to decline compared with the previous year. The average volume of mortgages to private individuals increased to SEK 535 billion (530). The gross margin on the mortgage portfolio – before advisory, administration and other expenses – amounted to 0.86 per cent (0.85) during the third quarter. The average volume of corporate lending fell by 1 per cent during the quarter and amounted to SEK 480 billion (483).

Net fee and commission income fell by 5 per cent to SEK 819 million (860), mainly due to lower securities commissions and also lending and guarantee commissions.

Net gains/losses on financial items at fair value decreased to SEK 135 million (137).

Total expenses went down by 5 per cent to SEK 1,743 million (1,829), as a result of the seasonal decrease in other administrative expenses in the third quarter of the year. The C/I ratio improved to 32.9 per cent (34.4). The average number of employees increased during the quarter as a result of the employment of temporary staff in the summer.

Loan losses went down to SEK -81 million (-109), and the loan loss ratio was 0.03 per cent (0.04).

10 Handelsbanken



10 Handelsbanken

Branch office operations outside Sweden Branch office operations outside Sweden comprise the three regional banks in the UK, as well as the regional banks in Denmark, Norway and Finland. These countries, together with Sweden, are regarded as the Bank’s home markets. The branch operations in these countries are run according to the same concept as in Sweden – to provide a full range of banking services with a higher service level and at lower cost than peer banks. This business segment also includes Handelsbanken International as well as Handelsbanken Finans’s and Stadshypotek’s operations outside Sweden. Handelsbanken International is responsible for branch operations outside the Bank’s home markets.

INCOME STATEMENT

BUSINESS VOLUMES

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 2,162 1,776 22% 2,127 2% 6,294 4,924 28% 6,863

Net fee and commission income 338 346 -2% 367 -8% 1,059 1,076 -2% 1,428

Net gains/losses on financial items at fair value 82 73 12% 92 -11% 266 296 -10% 388

Other income 14 14 0% 20 -30% 54 43 26% 55Total income 2,596 2,209 18% 2,606 0% 7,673 6,339 21% 8,734

Staff costs -715 -702 2% -746 -4% -2,183 -2,024 8% -2,766

Other administrative expenses -210 -229 -8% -240 -13% -678 -705 -4% -976

Internal purchased and sold services -248 -256 -3% -271 -8% -789 -761 4% -1,059

Depreciation and amortisation -18 -17 6% -20 -10% -58 -52 12% -70Total expenses -1,191 -1,204 -1% -1,277 -7% -3,708 -3,542 5% -4,871Profit before loan losses 1,405 1,005 40% 1,329 6% 3,965 2,797 42% 3,863

Net loan losses -196 -81 142% -179 9% -591 -555 6% -769Gains/losses on disposal of property, equipment and intangible assets -1 0 0 -1 1 1Operating profit 1,208 924 31% 1,150 5% 3,373 2,243 50% 3,095

Profit allocation 26 32 -19% 29 -10% 83 94 -12% 145Operating profit after profit allocation 1,234 956 29% 1,179 5% 3,456 2,337 48% 3,240

Internal income -1,541 -1,988 22% -1,654 7% -4,932 -5,391 9% -6,425Cost/income ratio, % 45.4 53.7 48.5 47.8 55.1 54.9

Loan loss ratio, % 0.18 0.08 0.16 0.18 0.17 0.18

Allocated capital 32,082 24,267 32% 30,935 4% 32,082 24,267 32% 28,053Return on allocated capital, % 11.3 11.6 11.2 11.1 9.4 9.4

Average number of employees 3,335 3,188 5% 3,277 2% 3,279 3,124 5% 3,144Number of branches 304 283 7% 299 2% 304 283 7% 285


2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Loans to the public

Household 170 161 6% 172 -1% 170 154 10% 157

Corporate 340 317 7% 345 -1% 338 306 10% 311Total 510 478 7% 517 -1% 508 460 10% 468


Household 45 43 5% 46 -2% 45 41 10% 42

Corporate 131 109 20% 127 3% 130 105 24% 108Total 176 152 16% 173 2% 175 146 20% 150

11 Handelsbanken



11 Handelsbanken


Financial performance Operating profit rose by 50 per cent to SEK 3,373 million (2,243). The improved profit is mainly due to increased net interest income. Income increased by 21 per cent, while expenses grew by only 5 per cent. The effect of exchange rate movements was marginal.

Net interest income increased by 28 per cent or SEK 1,370 million to SEK 6,294 million (4,924) as a result of both higher business volumes and improved margins. Fees for state guarantees and deposit guarantees which are charged to net interest income amounted to SEK -215 million (-255).

Net fee and commission income amounted to SEK 1,059 million (1,076) and net gains/losses on financial items decreased to SEK 266 million (296).

Expenses rose by 5 per cent to SEK -3,708 million (-3,542), mainly as a result of the continued expansion in the UK.

Loan losses increased slightly to SEK -591 million (-555), and the loan loss ratio was 0.18 per cent (0.17).

Lending volumes increased in all home markets and average volumes rose by 10 per cent to SEK 508 billion (460).

Q3 2012 COMPARED WITH Q2 2012 Operating profit rose by 5 per cent to SEK 1,208 million (1,150), as a result of lower expenses. The quarterly profit for branch office operations outside Sweden was the highest ever and operating profit rose in all home markets. The strengthening of the Swedish krona reduced the profit figure by SEK 33 million and expressed in local currency, operating profit was 8 per cent higher. Profit before loan losses grew by 6 per cent to SEK 1,405 million (1,329).

Net interest income rose by 2 per cent to SEK 2,162 million (2,127), mainly as a result of rising lending and deposit volumes. Exchange rate changes had a negative effect of SEK -75 million on net interest income and in local currency, net interest income increased by 5 per cent.

Net fee and commission income declined by 8 per cent to SEK 338 million (367) and net gains/losses on financial items went down to SEK 82 million (92).

Expenses decreased by SEK 86 million or 7 per cent to SEK -1,191 million (-1,277). Exchange rate movements account for 4 per cent of this reduction.Expansion costs for new branch offices amounted to SEK -72 million (-74).

Loan losses increased to SEK -196 million (-179), and the loan loss ratio was 0.18 per cent (0.16).

12 Handelsbanken



12 Handelsbanken

Branch office operations in the UK INCOME STATEMENT

BUSINESS VOLUMES


Financial performance Operating profit went up by 87 per cent to SEK 776 million (415) as a result of the continued expansion with increasing business volumes and a larger number of customers. Adjusted for exchange rate movements, operating profit increased by 80 per cent. Income rose by 41 per cent, while expenses went up by 31 per cent.

Net interest income rose by 41 per cent to SEK 1,540 million (1,089), mainly due to larger business volumes.

Net fee and commission income increased by 24 per cent to SEK 73 million (59) due to larger business volumes contributing to increased payment commissions. Net gains/losses on financial items also grew as a result of an increase in the number of customer transactions and amounted to SEK 67 million (54).

Expenses rose by 31 per cent to SEK -866 million (-662) as a result of the continued expansion of the branch network and the average number of employees increased by 25 per cent to 918 (732).

Loan losses fell to SEK -50 million (-125).

Business development For the fourth year running, in EPSI’s independent survey of customer satisfaction, Handelsbanken was ranked No.1 in Great Britain for customer satisfaction and loyalty, for both individual and corporate customers.

Business volumes continued to increase and for the sixth successive quarter, deposits increased at a faster rate than lending. Average lending volumes rose by 28 per cent and deposits by 56 per cent.

During the first nine months of the year, 20 new branches were opened and by the end of the period, the Bank had opened 124 branches in the UK (101).

Q3 2012 COMPARED WITH Q2 2012 Operating profit rose by 3 per cent to SEK 268 million (260). Adjusted for exchange rate movements the increase was 6 per cent. Operating profit before loan losses rose by 15 per cent in local currency due to higher income and lower expenses.

Income grew by 4 per cent, while expenses decreased by 3 per cent. Net interest income rose by 5 per cent to SEK 544 million (519) and the effect of exchange rate movements amounted to SEK -16 million.

Loan losses were SEK -37 million (-13).

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 544 402 35% 519 5% 1,540 1,089 41% 1,540

Net fee and commission income 25 22 14% 25 0% 73 59 24% 81

Net gains/losses on financial items at fair value 22 18 22% 23 -4% 67 54 24% 79

Other income 4 0 4 0% 12 0 0Total income 595 442 35% 571 4% 1,692 1,202 41% 1,700

Staff costs -200 -157 27% -200 0% -583 -444 31% -613

Other administrative expenses -42 -37 14% -45 -7% -129 -103 25% -147

Internal purchased and sold services -46 -38 21% -50 -8% -145 -109 33% -151

Depreciation and amortisation -2 -2 0% -3 -33% -9 -6 50% -8Total expenses -290 -234 24% -298 -3% -866 -662 31% -919Profit before loan losses 305 208 47% 273 12% 826 540 53% 781

Net loan losses -37 -43 -14% -13 185% -50 -125 -60% -142Gains/losses on disposal of property, equipment and intangible assets 0 - 0 0% 0 - 0Operating profit 268 165 62% 260 3% 776 415 87% 639Profit allocation 3 2 50% 3 0% 9 10 -10% 15Operating profit after profit allocation 271 167 62% 263 3% 785 425 85% 654

Average number of employees 964 777 24% 917 5% 918 732 25% 753Number of branches 124 101 23% 117 6% 124 101 23% 104

Average volumes, GBP mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Loans to the public

Household 2,608 2,029 29% 2,441 7% 2,456 1,849 33% 1,936

Corporate 7,327 5,900 24% 6,978 5% 6,924 5,480 26% 5,692Total 9,935 7,929 25% 9,419 5% 9,380 7,329 28% 7,628


Household 483 353 37% 446 8% 448 357 25% 367

Corporate 2,564 1,636 57% 2,228 15% 2,239 1,360 65% 1,461Total 3,047 1,989 53% 2,674 14% 2,687 1,717 56% 1,828

13 Handelsbanken



13 Handelsbanken

Branch office operations in Denmark INCOME STATEMENT

BUSINESS VOLUMES


Financial performance Operating profit increased by 33 per cent to SEK 317 million (239). Income increased by 17 per cent, while expenses fell by 4 per cent. Adjusted for exchange rate effects, operating profit grew by 34 per cent.

Net interest income rose by 19 per cent, or SEK 168 million, to SEK 1,037 million (869). The increase is explained by larger lending volumes. Fees for the Swedish Stabilisation Fund and the deposit guarantee, together with the Danish state deposit guarantee burdened net interest income by SEK -35 million (-36).

Expenses decreased by 4 per cent to SEK -711 million (-743), primarily because the comparison period included fees to cover losses for winding down Danish banks. This increased expenses by SEK 22 million.

Loan losses rose to SEK -281 million (-141). Business development The EPSI customer satisfaction survey showed that Handelsbanken has the most satisfied customers in Denmark.

The Bank continued to have a stable inflow of new customers. The average volume of lending increased by 21 per cent to DKK 52.4 billion (43.3). The Bank’s volume of lending to households increased by 16 per cent and corporate lending increased by 26 per cent.

Q3 2012 COMPARED WITH Q2 2012 Operating profit rose by 114 per cent to SEK 184 million (86), due to lower loan losses. Profit before loan losses increased by 3 per cent.

Net interest income declined by 4 per cent to SEK 342 million (356), which is entirely attributable to the strengthening of the Swedish currency. Adjusted for exchange rate movements, net interest income grew by just over 1 per cent.

Income decreased by 5 per cent or SEK 21 million to SEK 430 million (451). However, adjusted for exchange rate movements, income increased by 1 per cent.

Expenses decreased by 11 per cent to SEK 223 million (251) and expressed in local currency the decrease in expenses amounted to 6 per cent.


SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 342 317 8% 356 -4% 1,037 869 19% 1,225

Net fee and commission income 68 56 21% 74 -8% 217 196 11% 269

Net gains/losses on financial items at fair value 17 13 31% 14 21% 41 40 2% 52

Other income 3 8 -63% 7 -57% 14 18 -22% 18Total income 430 394 9% 451 -5% 1,309 1,123 17% 1,564

Staff costs -129 -137 -6% -136 -5% -400 -399 0% -542


Internal purchased and sold services -53 -56 -5% -66 -20% -176 -161 9% -228

Depreciation and amortisation -4 -4 0% -4 0% -12 -12 0% -17Total expenses -223 -243 -8% -251 -11% -711 -743 -4% -1,005Profit before loan losses 207 151 37% 200 3% 598 380 57% 559

Net loan losses -23 10 -114 -80% -281 -141 99% -210Gains/losses on disposal of property, equipment and intangible assets - - - - - -Operating profit 184 161 14% 86 114% 317 239 33% 349Profit allocation 6 4 50% 5 20% 17 10 70% 18Operating profit after profit allocation 190 165 15% 91 109% 334 249 34% 367

Average number of employees 617 628 -2% 614 0% 617 625 -1% 624Number of branches 54 54 0% 54 0% 54 54 0% 54

Average volumes, DKK bnQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Loans to the public

Household 25.7 22.1 16% 25.0 3% 25.1 21.7 16% 21.9

Corporate 28.1 23.1 22% 27.6 2% 27.3 21.6 26% 22.5Total 53.8 45.2 19% 52.6 2% 52.4 43.3 21% 44.4


Household 8.8 8.7 1% 8.7 1% 8.6 8.4 2% 8.4

Corporate 15.2 11.2 36% 11.0 38% 13.1 11.2 17% 11.6Total 24.0 19.9 21% 19.7 22% 21.7 19.6 11% 20.0

14 Handelsbanken



14 Handelsbanken

Branch office operations in Finland INCOME STATEMENT

BUSINESS VOLUMES

JANUARY– SEPTEMBER 2012 COMPARED WITH JANUARY – SEPTEMBER 2011

Financial performance Operating profit improved by 6 per cent to SEK 482 million (453) as a result of improved net interest income. Profit before loan losses increased by 17 per cent to SEK 552 million (470).

Net interest income went up by SEK 110 million, or 17 per cent, as a result of both larger volumes and rising lending margins. In local currency, net interest income rose by 21 per cent. The fee to the Stabilisation Fund burdened net interest income by SEK -29 million (-34).

Net fee and commission income amounted to SEK 268 million (272) and net gains/losses on financial items fell to SEK 23 million (44), mainly due to a high result during the second quarter of the comparison period.

Total expenses rose by 1 per cent due to an increase in other administrative expenses. Staff costs were unchanged. In local currency, total expenses increased by almost 4 per cent.

Loan losses increased to SEK -70 million (-17).

Business development As in previous years, Handelsbanken had the most satisfied private and corporate customers among commercial banks in Finland, according to the EPSI customer satisfaction survey.

The average volume of lending, compared to the corresponding period of the previous year, increased by 5 per cent. The total average volume of deposits rose by 12 per cent, mainly as a result of a 17 per cent increase in corporate deposits.

Q3 2012 COMPARED WITH Q2 2012 Operating profit increased by 7 per cent to SEK 169 million (158). Income grew by 4 per cent while expenses fell by 11 per cent. Profits before loan losses increased by SEK 32 million, or 19 per cent.

Net interest income rose by 8 per cent to SEK 260 million (240) as a result of both increasing lending volumes and margins. In local currency, the increase in net interest income was 14 per cent.

Expenses fell to SEK -155 million (-174). Half of the decrease of 11 per cent is attributable to exchange rate movements and the remainder to seasonal variations.


SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 260 237 10% 240 8% 755 645 17% 896

Net fee and commission income 85 87 -2% 91 -7% 268 272 -1% 356


Other income 1 1 0% 1 0% 5 5 0% 7Total income 352 331 6% 339 4% 1,051 966 9% 1,310

Staff costs -75 -79 -5% -84 -11% -240 -239 0% -327

Other administrative expenses -30 -33 -9% -34 -12% -100 -94 6% -139

Internal purchased and sold services -45 -47 -4% -51 -12% -143 -148 -3% -199

Depreciation and amortisation -5 -5 0% -5 0% -16 -15 7% -20Total expenses -155 -164 -5% -174 -11% -499 -496 1% -685Profit before loan losses 197 167 18% 165 19% 552 470 17% 625

Net loan losses -28 -1 -7 300% -70 -17 312% -29Gains/losses on disposal of property, equipment and intangible assets - - 0 0 - -Operating profit 169 166 2% 158 7% 482 453 6% 596

Profit allocation 8 11 -27% 10 -20% 26 43 -40% 63Operating profit after profit allocation 177 177 0% 168 5% 508 496 2% 659

Average number of employees 489 464 5% 484 1% 479 470 2% 467Number of branches 45 45 0% 45 0% 45 45 0% 45

Average volumes, EUR mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Loans to the public

Household 3,486 3,253 7% 3,447 1% 3,462 3,231 7% 3,239

Corporate 7,391 6,855 8% 7,066 5% 7,029 6,727 4% 6,768Total 10,877 10,108 8% 10,513 3% 10,491 9,958 5% 10,007


Household 1,276 1,277 0% 1,272 0% 1,291 1,239 4% 1,266

Corporate 2,051 1,671 23% 2,222 -8% 2,197 1,875 17% 1,936Total 3,327 2,948 13% 3,494 -5% 3,488 3,114 12% 3,202

15 Handelsbanken



15 Handelsbanken

Branch office operations in Norway

INCOME STATEMENT

BUSINESS VOLUMES

JANUARY– SEPTEMBER 2012 COMPARED WITH JANUARY – SEPTEMBER 2011

Financial performance Operating profit rose by 72 per cent to SEK 1,495 million (871) mainly due to higher net interest income and lower loan losses. Profit before loan losses increased by 40 per cent.

Net interest income increased by 29 per cent, or SEK 507 million, due to rising lending volumes and margins. The fee for the Swedish Stabilisation Fund burdened net interest income by SEK -68 million (-85).

Net fee and commission income fell slightly to SEK 234 million (238).

Expenses rose by 2 per cent, to SEK -917 million (-900). Staff costs increased by 5 per cent, partly due to annual salary adjustments and higher actuarial pension costs. Other expenses fell by 2 per cent.


Business development According to the EPSI customer satisfaction index, both corporate and private customers perceive

Handelsbanken as being the best bank in Norway in terms of service quality.

The average volume of deposits from households increased by 18 per cent, while lending grew by 7 per cent. Corporate lending increased by 5 per cent while corporate deposits went down by 7 per cent.

Q3 2012 COMPARED WITH Q2 2012 Operating profit was more or less unchanged at SEK 528 million (527). Profit before loan losses increased by 4 per cent.

Net interest income rose by 3 per cent or SEK 26 million, to SEK 783 million (757), mainly as a result of increased lending margins. The exchange rate effect amounted to SEK -22 million, and in local currency, net interest income increased by 7 per cent.

Net fee and commission income was SEK 84 million (86). The reduction is entirely due to exchange rate movements.

Expenses fell by 2 per cent to SEK -300 million (-305) due to the strengthening of the Swedish krona.


SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 783 607 29% 757 3% 2,233 1,726 29% 2,382

Net fee and commission income 84 82 2% 86 -2% 234 238 -2% 311

Net gains/losses on financial items at fair value 19 30 -37% 23 -17% 66 86 -23% 112

Other income 5 4 25% 7 -29% 20 16 25% 24Total income 891 723 23% 873 2% 2,553 2,066 24% 2,829

Staff costs -173 -173 0% -172 1% -518 -491 5% -667


Internal purchased and sold services -71 -74 -4% -69 3% -218 -213 2% -298

Depreciation and amortisation -3 -3 0% -3 0% -9 -10 -10% -13Total expenses -300 -310 -3% -305 -2% -917 -900 2% -1,232Profit before loan losses 591 413 43% 568 4% 1,636 1,166 40% 1,597

Net loan losses -63 -62 2% -41 54% -141 -296 -52% -389Gains/losses on disposal of property, equipment and intangible assets 0 0 0% 0 0% 0 1 1Operating profit 528 351 50% 527 0% 1,495 871 72% 1,209Profit allocation 6 10 -40% 6 0% 19 18 6% 30

Operating profit after profit allocation 534 361 48% 533 0% 1,514 889 70% 1,239

Average number of employees 645 666 -3% 651 -1% 649 659 -2% 659

Number of branches 49 50 -2% 49 0% 49 50 -2% 50

Average volumes, NOK bnQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Loans to the public

Household 68.2 64.6 6% 67.3 1% 67.4 62.7 7% 63.5

Corporate 106.8 100.3 6% 106.5 0% 106.0 100.7 5% 101.0Total 175.0 164.9 6% 173.8 1% 173.4 163.4 6% 164.5


Household 14.2 12.0 18% 13.6 4% 13.3 11.3 18% 11.5

Corporate 33.6 35.9 -6% 33.7 0% 35.3 37.9 -7% 37.4Total 47.8 47.9 0% 47.3 1% 48.6 49.2 -1% 48.9

16 Handelsbanken



16 Handelsbanken

Handelsbanken International The main task of Handelsbanken International is to support the Bank’s customers in the Nordic region and the UK with their international business and, in the long term, to develop prioritised countries’ operations into regional banks in line with the Bank’s business model.The Bank has 32 branches and eight representative offices in a total of 19 countries outside the Nordic countries and the UK.

INCOME STATEMENT

BUSINESS VOLUMES


Financial performance Operating profit improved to SEK 303 million (265), as a result of increased net interest income and lower expenses. Profit before loan losses increased by 46 per cent to SEK 353 million (241).

Net interest income increased by 23 per cent, or SEK 134 million, mainly due to rising net interest income in the Netherlands and the Bank’s good creditworthiness attracting large volumes of deposits from corporate and institutional customers.

Expenses decreased by 4 per cent to SEK -715 million (-741), as a result of lower expenses for internally purchased services.

Loan losses increased to SEK -49 million, compared to net recoveries of SEK 24 million in the comparison period.

Business development The average volume of lending decreased by 2 per cent to SEK 51.9 billion (52.9) compared with the corresponding period of the previous year. At the same time, deposits went up by 73 per cent to SEK 33.3 billion (19.2), mainly due to increased corporate volumes.

During the third quarter, the Bank opened representative offices in São Paulo, Brazil and in Sydney, Australia. Thus the Bank now has operations in 24 countries.

Q3 2012 COMPARED WITH Q2 2012 Operating profits fell by SEK 60 million to SEK 59 million (119), mainly due to higher loan losses.

Income fell by 12 per cent and expenses by 10 per cent. Loan losses were SEK -45 million (-4).

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 233 213 9% 255 -9% 729 595 23% 820

Net fee and commission income 76 99 -23% 91 -16% 267 311 -14% 411


Other income 1 1 0% 1 0% 3 4 -25% 6Total income 328 319 3% 372 -12% 1,068 982 9% 1,331

Staff costs -138 -156 -12% -154 -10% -442 -451 -2% -617

Other administrative expenses -48 -53 -9% -55 -13% -154 -151 2% -218

Internal purchased and sold services -33 -41 -20% -35 -6% -107 -130 -18% -183

Depreciation and amortisation -4 -3 33% -5 -20% -12 -9 33% -12Total expenses -223 -253 -12% -249 -10% -715 -741 -4% -1,030Profit before loan losses 105 66 59% 123 -15% 353 241 46% 301

Net loan losses -45 15 -4 -49 24 1Gains/losses on disposal of property, equipment and intangible assets -1 0 0 -1 0 0Operating profit 59 81 -27% 119 -50% 303 265 14% 302Profit distribution 3 5 -40% 5 -40% 12 13 -8% 19Operating profit after profit allocation 62 86 -28% 124 -50% 315 278 13% 321

Average number of employees 620 653 -5% 611 1% 616 638 -3% 641

Number of branches 32 33 -3% 34 -6% 32 33 -3% 32


2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Loans to the public

Household 5.6 4.8 17% 5.5 2% 5.5 4.3 28% 4.5

Corporate 45.6 48.5 -6% 46.7 -2% 46.4 48.6 -5% 48.7Total 51.2 53.3 -4% 52.2 -2% 51.9 52.9 -2% 53.2


Household 2.9 3.0 -3% 3.1 -6% 3.1 2.8 11% 3.0

Corporate 31.1 20.2 54% 29.9 4% 30.2 16.4 84% 18.0Total 34.0 23.2 47% 33.0 3% 33.3 19.2 73% 21.0

17 Handelsbanken



17 Handelsbanken

Handelsbanken Capital Markets Capital Markets consists of Handelsbanken’s investment bank and asset management operations, including insurance savings. The unit has a functional and product responsibility throughout the Group for trading in financial instruments, structured products, cash management, corporate finance and debt capital markets, economic and financial research, and for all savings products except bank account savings.

In the table below, the income figures for Capital Markets’ products throughout the Group are presented first, followed by comments on the figures for the Handelsbanken Capital Markets segment.

INCOME DISTRIBUTION IN THE GROUP FOR HANDELSBANKEN CAPITAL MARKETS’ PRODUCTS

JANUARY– SEPTEMBER 2012 COMPARED WITH JANUARY – SEPTEMBER 2011 The Group’s brokerage income fell by 20 per cent to SEK 864 million (1,085), mainly as a result of low activity on the equity markets.

Asset management commissions fell by 4 per cent to SEK 1,498 million (1,555), of which mutual fund commissions fell by 2 per cent to SEK 1,242 million (1,269). The decrease was mainly due to a move away from equity-related funds into a higher proportion of fixed-income funds with lower fees.

Insurance commissions went down to SEK 446 million (523), due to a lower profit from policies with guaranteed rates of return.

The net gains/losses on financial items decreased to SEK 795 million (1,118), primarily because financial market turbulence had created good business flows in the period of comparison. Currency transactions related to branch operations, which are included in net gains/losses on financial items, resulted in a currency gain of SEK 380 million (417).

Q3 2012 COMPARED WITH Q2 2012 Brokerage income fell by 8 per cent to SEK 243 million (266), as a result of seasonally lower stock market turnover and customer activity. Asset management commissions were unchanged at SEK 507 million (507).

Net gains/losses on financial items decreased to SEK 231 million (303). Currency transactions for customers in the branch operations gave a net gain of SEK 113 million (135).

Business development The Bank has been the largest player in new savings in mutual funds in Sweden during the year, with a net inflow of SEK 14.5 billion. For the market as a whole, net inflow in Sweden totalled SEK 11.7 billion. During the third quarter, the Bank started up five generation funds which are free of management fees in the Swedish premium pension system. In the first nine months, net new savings in Handelsbanken’s funds were SEK 16.9 billion. In its three-year performance reviews, the Morningstar rating institute ranked Handelsbanken’s funds as best of the major Swedish banks’ mutual funds.

XACT Fonder is the largest player on the Nordic market for exchange-traded funds, with a market share of 86 per cent of assets under management. Handelsbanken’s total mutual fund volume, including XACT funds, amounted to SEK 212 billion (201), and during the year, total assets under management in the Group increased by SEK 47 billion from SEK 529 billion to SEK 576 billion.

According to Greenwich Associates, US customers ranked Handelsbanken No.1 for Nordic equities.

In corporate finance, activity levels on the Nordic market remained relatively low. The Bank was the largest Nordic player for M&A in both Sweden and the Nordic region.


SEK mCapital

Markets


Sweden


outside Sweden Other

Total Capital Markets products in the

group

Change Q3-12/Q2-

12

Change Jan-Sep 2012 / Jan-Sep 2011

Net interest income 473Commission income 2,181 750 222 13 3,166 of which brokerage income 515 231 54 64 864 -9% -20% of which mutual funds and custody 868 519 137 -26 1,498 0% -4% of which insurance 440 0 31 -25 446 0% -15%Net fee and commission income 1,801Net financial items 416 253 127 -1 795 -24% -29%Risk result - insurance 108Other income 8Total income 2,806

18 Handelsbanken



18 Handelsbanken

INCOME STATEMENT IN HANDELSBANKEN CAPITAL MARKETS BUSINESS SEGMENT

INCOME DISTRIBUTION

JANUARY – SEPTEMBER 2012 COMPARED WITH JANUARY – SEPTEMBER 2011 Operating profit decreased to SEK 419 million (1,008). Asset management operations reported a profit of 528 million (697), while the earnings figure for the investment bank was SEK -109 million (311).

Net fee and commission income fell by 9 per cent to SEK 1,801 million (1,986). The decrease was chiefly attributable to lower brokerage income as a result of reduced turnover and activity on the equity market.

Net gains/losses on financial items fell by 41 per cent to SEK 416 million (701), mainly as a result of reduced business flows compared with the corresponding period of the previous year.

The risk result in Handelsbanken Liv went down toSEK 108 million (171), due to lower mortality and longevity results, as well as increasing reinsurance costs.

Income decreased by 17 per cent to SEK 2,806 million (3,374) of which the asset management business went down by 6 per cent and the investment bank by 24 per cent.

Expenses were basically unchanged at SEK 2,387 million (-2,366). The average number of employees decreased by 3 per cent to 1,574 (1,629).

Q3 2012 COMPARED WITH Q2 2012 Operating profit decreased to SEK 56 million (205), due mainly to low customer activity in the investment banking operations. Asset management’s operating profit was SEK 195 million (191), while the corresponding figure for the investment bank was SEK -139 million (14).

Net fee and commission income fell by 11 per cent to SEK 539 million (607), mainly due to reduced advisory commissions and lower brokerage income.

Net gains/losses on financial items decreased to SEK 119 million (168). This decrease was chiefly attributable to seasonally lower activity during the summer months.

Expenses fell by 9 per cent to SEK -734 million (-807). The decrease was attributable to lower administrative expenses and reduced staff costs. The average number of employees fell to 1,553 (1,563).

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 98 167 -41% 195 -50% 473 503 -6% 711

Net fee and commission income 539 652 -17% 607 -11% 1,801 1,986 -9% 2,611Net gains/losses on financial items at fair value 119 267 -55% 168 -29% 416 701 -41% 628


Other income 1 2 -50% 3 -67% 8 13 -38% 18Total income 790 1,140 -31% 1,012 -22% 2,806 3,374 -17% 4,177

Staff costs -516 -548 -6% -573 -10% -1,672 -1,650 1% -2,111


Internal purchased and sold services -47 -14 236% -18 161% -96 -57 68% -77

Depreciation and amortisation -13 -12 8% -12 8% -40 -34 18% -49Total expenses -734 -759 -3% -807 -9% -2,387 -2,366 1% -3,126

Profit before loan losses 56 381 -85% 205 -73% 419 1,008 -58% 1,051

Net loan lossesGains/losses on disposal of property, equipment and intangible assets - - - - - -Operating profit 56 381 -85% 205 -73% 419 1,008 -58% 1,051Profit allocation -170 -159 7% -192 -11% -527 -572 -8% -809

Operating profit after profit allocation -114 222 13 -108 436 242

Internal income -257 -106 -142% -316 19% -870 -749 -16% -911Cost/income ratio, % 118.4 77.4 98.4 104.7 84.4 92.8

Allocated capital 4,581 6,723 -32% 4,811 -5% 4,581 6,723 -32% 7,174Return on allocated capital, % - 9.7 0.8 - 6.7 2.7

Average number of employees 1,553 1,652 -6% 1,563 -1% 1,574 1,629 -3% 1,626

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Asset management * 414 473 -12% 433 -4% 1,236 1,316 -6% 1,701

Investment banking 376 667 -44% 579 -35% 1,570 2,058 -24% 2,476

Total income 790 1,140 -31% 1,012 -22% 2,806 3,374 -17% 4,177

* Including Handelsbanken Liv.

19 Handelsbanken



19 Handelsbanken

OtherReported below are the income and expenses related to treasury and the central head office departments and also allocations to the Oktogonen profit-sharing foundation. Capital gains/losses, dividends, and income and expenses that are not attributable to any of the segments are also reported here.

INCOME STATEMENT

JANUARY – SEPTEMBER 2012 COMPARED WITH JANUARY – SEPTEMBER 2011Operating profit rose to SEK -577 million (-741) as a result of an increase in net interest income and improved net gains/losses on financial items.

Income grew to SEK 121 million (-19), which was partly attributable to increased net interest income from the liquidity portfolio during the first six months.

Expenses fell to SEK -698 million (-727). The allocation made to the Oktogonen Foundation increased to SEK -688 million (-631).

Q3 2012 COMPARED WITH Q2 2012 Operating profit fell to SEK -290 million (-140), partly due to increased costs for the Swedish Stabilisation Fund. Profits were charged with the Group’s allocation to the Oktogonen profit-sharing foundation, which amounted to SEK -229 million (-229).

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 21 99 -79% 102 -79% 226 199 14% 246

Net fee and commission income 46 9 411% -9 71 -8 4

Net gains/losses on financial items at fair value -145 -154 6% -178 19% -356 -396 10% -510


Other income 19 12 58% 152 -88% 179 174 3% 196Total income -58 -42 -38% 72 121 -19 -55

Staff costs -653 -633 3% -654 0% -1,986 -1,923 3% -2,632

Other administrative expenses -462 -459 1% -477 -3% -1,441 -1,434 0% -1,950

Internal purchased and sold services 944 900 5% 982 -4% 2,918 2,818 4% 3,836

Depreciation and amortisation -61 -59 3% -63 -3% -189 -188 1% -252Total expenses -232 -251 -8% -212 9% -698 -727 -4% -998

Profit before loan losses -290 -293 1% -140 -107% -577 -746 23% -1,053Net loan losses

Gains/losses on disposal of property, equipment and intangible assets 0 5 -100% 0 0% 0 5 -100% 6Operating profit -290 -288 -1% -140 -107% -577 -741 22% -1,047

Profit allocation 0 0 0% 0 0% 0 0 0% 0Operating profit after profit allocation -290 -288 -1% -140 -107% -577 -741 22% -1,047

Internal income 2,447 2,817 -13% 2,766 -12% 8,168 8,082 1% 10,140

Average number of employees 1,966 1,915 3% 1,962 0% 1,957 1,936 1% 1,936

20 Handelsbanken



20 Handelsbanken

Condensed set of financial statements – The Group KEY FIGURES – THE GROUP

Q32012

Q32011

Q22012

Jan-Sep 2012

Jan-Sep 2011

Full year 2011

Return on equity, total operations * 13.2% 14.1% 14.4% 13.7% 13.8% 13.5%

Return on equity, continuing operations * 13.2% 14.0% 14.3% 13.5% 13.6% 13.4%

C/I ratio, continuing operations 44.7% 45.8% 45.5% 45.1% 46.8% 47.1%C/I ratio, continuing operations, incl. loan losses 48.0% 47.7% 48.8% 48.4% 49.2% 49.6%

Earnings per share, total operations, SEK 5.15 5.15 5.44 15.95 14.90 19.78 - after dilution 5.07 5.00 5.34 15.59 14.60 19.39

Dividend, SEK 9.75Adjusted equity per share, SEK ** 159.19 147.84 154.24 159.19 147.84 152.71Average number of outstanding shares 630,219,878 623,445,996 627,201,423 627,284,366 622,817,592 623,079,301 - after dilution 647,763,077 649,151,317 647,549,966 649,924,164 640,473,455 642,427,248

Capital ratio, Basel II 21.0% 19.0% 19.9% 21.0% 19.0% 20.9%Tier 1 ratio, Basel II 20.5% 17.4% 19.4% 20.5% 17.4% 18.4%Capital base in relation to capital requirement Basel II 263% 237% 249% 263% 237% 261%

Average number of employees, continuing operations 11,381 11,434 11,095 11,204 11,197 11,184Number of branches in Sweden 461 461 461 461 461 461Number of branches outside Sweden 304 283 299 304 283 285* When calculating return on equity, equity is adjusted for the impact of unrealised changes in the value of financial assets classified as "Available for Sale" and for cash flow hedges.** When calculating equity per share, equity is adjusted for the impact of cash flow hedges and for dilution.

21 Handelsbanken



21 Handelsbanken

INCOME STATEMENT – THE GROUP

EARNINGS PER SHARE – THE GROUP

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Interest income 15,448 15,936 -3% 16,106 -4% 48,386 44,942 8% 61,560

Interest expense -8,986 -9,870 -9% -9,531 -6% -28,789 -27,686 4% -37,947

Net interest income Note 2 6,462 6,066 7% 6,575 -2% 19,597 17,256 14% 23,613

Net fee and commission income Note 3 1,742 1,903 -8% 1,825 -5% 5,459 5,796 -6% 7,673

Net gains/losses on financial items at fair value Note 4 191 284 -33% 219 -13% 754 953 -21% 1,016


Other dividend income 8 4 100% 142 -94% 151 146 3% 146


Other income 29 27 7% 34 -15% 101 101 0% 143

Total income 8,466 8,328 2% 8,839 -4% 26,171 24,435 7% 32,809

Staff costs -2,562 -2,498 3% -2,670 -4% -7,900 -7,432 6% -9,942

Other administrative expenses Note 5 -1,108 -1,206 -8% -1,236 -10% -3,558 -3,668 -3% -5,060Depreciation, amortisation and impairments of property, equipment and intangible assets -113 -112 1% -117 -3% -352 -342 3% -462

Total expenses -3,783 -3,816 -1% -4,023 -6% -11,810 -11,442 3% -15,464Profit before loan losses 4,683 4,512 4% 4,816 -3% 14,361 12,993 11% 17,345

Net loan losses Note 6 -277 -157 76% -288 -4% -856 -573 49% -816Gains/losses on disposal of property, equipment and intangible assets -1 5 0 -1 6 7

Operating profit 4,405 4,360 1% 4,528 -3% 13,504 12,426 9% 16,536Taxes -1,167 -1,181 -1% -1,143 2% -3,582 -3,276 9% -4,372Profit for the period from continuing operations 3,238 3,179 2% 3,385 -4% 9,922 9,150 8% 12,164Profit for the period from discontinued operations, after tax Note 7 8 30 -73% 29 -72% 86 127 -32% 159

Profit for the period 3,246 3,209 1% 3,414 -5% 10,008 9,277 8% 12,323

Attributable to

Shareholders in Svenska Handelsbanken AB 3,246 3,209 1% 3,414 -5% 10,008 9,277 8% 12,323

Minority interest 0 0 0 0 0 0

Q32012

Q32011 Change

Q22012 Change

Jan-Sep 2012

Jan-Sep 2011 Change

Full year 2011

Profit for the period, total operations, SEK m 3,246 3,209 1% 3,414 -5% 10,008 9,277 8% 12,323 of which interest expense on convertible subordinated loan after tax -38 -48 21% -41 7% -127 -85 -49% -134

Average number of outstanding shares, millions 630.2 623.4 627.2 627.3 622.8 623.1Average number of outstanding shares after dilution, millions 647.8 649.2 647.5 649.9 640.5 642.4

Earnings per share, continuing operations, SEK 5.14 5.10 1% 5.40 -5% 15.82 14.69 8% 19.52 - after dilution 5.06 4.96 2% 5.30 -5% 15.46 14.40 7% 19.14

Earnings per share, discontinued operations, SEK 0.01 0.05 -80% 0.04 -75% 0.13 0.21 -38% 0.26 - after dilution 0.01 0.04 -75% 0.04 -75% 0.13 0.20 -35% 0.25

Earnings per share, total operations, SEK 5.15 5.15 0% 5.44 -5% 15.95 14.90 7% 19.78

- after dilution 5.07 5.00 1% 5.34 -5% 15.59 14.60 7% 19.39

Earnings per share after dilution is calculated by taking in account the effects of a conversion of outstanding convertible debt instruments. This means that the average number of shares is adjusted by potential shares and that the period’s earnings are adjusted by the period’s interest expense on the outstanding convertible debt instruments after tax.

22 Handelsbanken



22 Handelsbanken

STATEMENT OF COMPREHENSIVE INCOME – THE GROUP

QUARTERLY PERFORMANCE – THE GROUP

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011Profit for the period 3,246 3,209 1% 3,414 -5% 10,008 9,277 8% 12,323

Other comprehensive incomeCash flow hedges 321 -391 1,689 -81% 1,699 -256 -297

Available-for-sale instruments 379 -1,364 -474 614 -1,731 -1,318

Translation differences for the period -109 494 -572 81% -420 464 -4

Tax related to other comprehensive income -423 475 -161 -163% -778 555 443Total other comprehensive income 168 -786 482 -65% 1,115 -968 -1,176Total comprehensive income for the period 3,414 2,423 41% 3,896 -12% 11,123 8,309 34% 11,147

Total comprehensive income for the period to

Shareholders in Svenska Handelsbanken AB 3,414 2,423 41% 3,896 -12% 11,123 8,309 34% 11,147 Minority interest 0 0 0% 0 0% 0 0 0% 0

Discontinued operations only affects Translation differences for the period in Other comprehensive income.

SEK mQ3

2012Q2

2012Q1

2012Q4

2011Q3

2011

Interest income 15,448 16,106 16,832 16,618 15,936

Interest expense -8,986 -9,531 -10,272 -10,261 -9,870

Net interest income 6,462 6,575 6,560 6,357 6,066

Net fee and commission income 1,742 1,825 1,892 1,877 1,903Net gains/losses on financial items at fair value 191 219 344 63 284

Risk result - insurance 33 39 36 38 52

Other dividend income 8 142 1 0 4

Share of profit of associates 1 5 -5 -3 -8

Other income 29 34 38 42 27

Total income 8,466 8,839 8,866 8,374 8,328Staff costs -2,562 -2,670 -2,668 -2,510 -2,498

Other administrative expenses -1,108 -1,236 -1,214 -1,392 -1,206Depreciation, amortisation and impairments of property, equipment and intangible assets -113 -117 -122 -120 -112

Total expenses -3,783 -4,023 -4,004 -4,022 -3,816Profit before loan losses 4,683 4,816 4,862 4,352 4,512Net loan losses -277 -288 -291 -243 -157Gains/losses on disposal of property, equipment and intangible assets -1 0 0 1 5

Operating profit 4,405 4,528 4,571 4,110 4,360Taxes -1,167 -1,143 -1,272 -1,096 -1,181Profit for the period from continuing operations 3,238 3,385 3,299 3,014 3,179Profit for the period from discontinued operations, after tax 8 29 49 32 30

Profit for the period 3,246 3,414 3,348 3,046 3,209

Earnings per share, continuing operations, SEK 5.14 5.40 5.28 4.83 5.10 - after dilution 5.06 5.30 5.15 4.70 4.96

Earnings per share, discontinued operations, SEK 0.01 0.04 0.08 0.05 0.05 - after dilution 0.01 0.04 0.07 0.05 0.04

Earnings per share, total operations, SEK 5.15 5.44 5.36 4.88 5.15 - after dilution 5.07 5.34 5.22 4.75 5.00

23 Handelsbanken



23 Handelsbanken

BALANCE SHEET – THE GROUP

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Assets Cash and balances with central banks 341,208 272,483 225,695 251,857 262,575

Other loans to central banks Note 8 35,777 167,300 120,663 124,122 76,142

Treasury bills and other eligible bills 50,005 49,316 55,657 43,971 44,363

Loans to other credit institutions Note 8 84,364 90,927 86,399 106,823 116,834

Loans to the public Note 8 1,620,505 1,632,464 1,627,093 1,591,128 1,598,737

Value change of interest-hedged item in portfolio hedge 5,792 5,042 5,121 4,490 4,622

Bonds and other interest-bearing securities 69,738 62,657 64,185 60,231 74,415

Shares 25,748 24,892 26,022 27,236 27,686

Investments in associates 195 195 164 205 153

Assets where the customer bears the value change risk 68,788 66,424 66,698 62,721 58,722

Derivative instruments Note 9 135,490 125,903 114,080 142,074 166,016

Reinsurance assets 1 1 1 2 3

Intangible assets Note 10 7,068 7,145 7,118 7,079 7,087

Property and equipment 2,201 2,243 3,431 3,507 3,297

Current tax assets 612 271 264 42 748

Deferred tax assets 63 70 362 380 372

Net pension assets 5,133 5,023 4,925 4,775 5,152

Assets held for sale 1,019 1,031 958 944 952

Other assets 50,924 25,342 41,962 14,267 20,325

Prepaid expenses and accrued income 8,691 7,854 9,134 8,512 7,365Total assets 2,513,322 2,546,583 2,459,932 2,454,366 2,475,566

Liabilities and equityDue to credit institutions Note 11 227,153 265,528 249,783 201,889 235,431

Deposits and borrowing from the public Note 11 728,572 723,669 683,182 724,888 720,482

Liabilities where the customer bears the value change risk 68,835 66,472 66,755 62,800 58,758

Issued securities 1,150,503 1,167,523 1,141,561 1,140,074 1,111,855

Derivative instruments Note 9 133,370 116,512 113,160 127,303 143,804

Short positions 19,504 24,626 15,280 21,397 27,644

Insurance liabilities 649 693 1,346 690 705

Current tax liabilities 1,581 966 1,181 818 823

Deferred tax liabilities 9,922 9,683 9,589 9,466 9,499

Provisions 49 56 29 31 33

Liabilities related to assets held for sale 351 492 406 345 347

Other liabilities 23,583 24,778 36,905 13,847 14,957

Accrued expenses and deferred income 23,857 23,041 22,121 20,977 23,670

Subordinated liabilities 24,406 25,530 25,907 35,317 35,862Total liabilities 2,412,335 2,449,569 2,367,205 2,359,842 2,383,870

Minority interest 1 1 1 0 1

Share capital 2,939 2,924 2,914 2,902 2,902

Share premium 2,191 1,647 1,266 793 792

Reserves -895 -1,063 -1,545 -2,010 -1,802

Retained earnings 86,743 86,743 86,743 80,516 80,526

Profit for the period 10,008 6,762 3,348 12,323 9,277Total equity 100,987 97,014 92,727 94,524 91,696Total liabilities and equity 2,513,322 2,546,583 2,459,932 2,454,366 2,475,566

24 Handelsbanken



24 Handelsbanken

STATEMENT OF CHANGES IN EQUITY – THE GROUP

During the period January to September 2012, convertibles for a nominal value of SEK 1,486 million (111) relating to the 2008 subordinated convertible bond had been converted into 7,921,528 Class A shares (592,062). At the end of the third quarter, the number of Handelsbanken shares in the trading book was 0 (30,070).

CONDENSED STATEMENT OF CASH FLOWS – THE GROUP

Jan - Sep 2011SEK m

Share capital

Share premium

Hedge reserve

Fair value

reserveTranslation

reserveRetained earnings Minority Total

Opening equity 2,899 184 -457 786 -1,163 86,142 0 88,391 Profit for the period 9,277 0 9,277

Other comprehensive income -189 -1,262 483 0 -968

Total comprehensive income for the period -189 -1,262 483 9,277 0 8,309

Dividend -5,611 -5,611Conversion of the convertible subordinated loan issued in 2008

3 102 105

Equity component of the convertible subordinated loan issued in 2011

506 506

Change of own shares in trading book -5 -5

Change of minority interests 1 1

Closing equity 2,902 792 -646 -476 -680 89,803 1 91,696

Jan - Sep 2012SEK m

Share capital

Share premium

Hedge reserve

Fair value

reserveTranslation

reserveRetained earnings Minority Total

Opening equity 2,902 793 -676 -167 -1,167 92,839 0 94,524 Profit for the period 10,008 0 10,008

Other comprehensive income 1,252 454 -591 0 1,115

Total comprehensive income for the period 1,252 454 -591 10,008 0 11,123

Dividend -6,110 -6,110Conversion of the convertible subordinated loan issued in 2008 37 1,398 1,435

Change of own shares in trading book 14 14

Change of minority interests 1 1

Closing equity 2,939 2,191 576 287 -1,758 96,751 1 100,987

SEK mJan-Sep

2012Jan-Sep

2011Full year

2011

Cash flow from operating activities 118,782 201,368 200,097Cash flow from investing activities 1,570 -1,798 -3,659Cash flow from financing activities -14,754 -8,133 -13,934Cash flow for the period 105,598 191,437 182,504

Liquid funds at beginning of the period 251,857 56,637 56,637Cash flow for the period 105,598 191,437 182,504Exchange rate differences on liquid funds -16,247 14,501 12,716Liquid funds at end of period 341,208 262,575 251,857

25 Handelsbanken



25 Handelsbanken

NOTES

Note 1 Accounting policies Information relating to the Group is stated in accordance with IAS 34. For both the Group and the parent company, the contents of the interim report also comply with the applicable provisions of the Swedish Act on Annual Reports in Credit Institutions and Securities Companies, the Swedish Financial Supervisory Authority’s regulations and general guidelines FFFS 2008:25 on annual reports in credit institutions and securities companies and recommendations from the Swedish Financial Reporting Board.

The interim report of the Group and the parent company has been prepared in accordance with the same accounting policies and calculation methods that were applied in the annual report for 2011. None of the accounting regulatory changes which came into force as of 2012 has had a material impact on the Group’s or the parent company’s reported figures or financial position.

As of the 2013 financial year, the revised IAS 19 Employee benefits will come into effect for application within the EU. This will have an impact on how Handelsbanken reports defined-benefit pension plans since the “corridor” method for accrual accounting of actuarial gains and losses is being removed. Actuarial effects will instead be

recognised directly in Other comprehensive income. The revised standard will also have an impact on the calculation of the pension cost reported in the income statement, in that the current assumption for the return on plan assets is being replaced by an estimated yield equivalent to the discount rate for the pension liability.

If the revised IAS 19 had been in effect from the beginning of the year, the staff costs reported would have increased by SEK 116 million for the July–September 2012 period and by SEK 344 million for the January–September 2012 period. In addition, an effect of SEK 464 million after tax for the July–September period and SEK 1,331 million after tax for the January–September 2012 period would have affected other comprehensive income, corresponding to the changed net position in defined-benefit pension plans that are not reported in the income statement. A transition to the new accounting policy as at 1 January 2012 would involve an initial adjustment of equity by SEK -4,552 million. Therefore, including the above-mentioned effects, a transition to IAS 19 as at 1 January 2012 would have had a total impact on equity amounting to SEK -3,474 million as at 30 September 2012.

Note 2 Net interest income

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Interest incomeCredit institutions and central banks 549 602 -9% 600 -9% 1,793 1,620 11% 2,375

General public 14,598 14,998 -3% 15,054 -3% 45,265 41,849 8% 57,336

Treasury bills and other eligible bills 447 452 -1% 480 -7% 1,420 2,756 -48% 3,187

Interest-bearing securities 596 744 -20% 419 42% 1,492 3,857 -61% 4,652

Derivative instruments recognised as hedges -245 -292 16% -230 -7% -614 -1,326 54% -1,509

Other interest income 339 320 6% 336 1% 1,015 957 6% 1,270

Total interest income 16,284 16,824 -3% 16,659 -2% 50,371 49,713 1% 67,311Of which interest income reported in Net gains/losses on financial items 1,170 888 32% 1,039 13% 3,248 4,771 -32% 5,751

Interest income according to income statement 15,114 15,936 -5% 15,620 -3% 47,123 44,942 5% 61,560

Interest expenseCredit institutions and central banks -457 -1,006 -55% -551 -17% -1,648 -2,734 -40% -3,485

General public -1,766 -1,953 -10% -1,905 -7% -5,753 -5,197 11% -7,387

Issued securities -6,271 -6,345 -1% -6,538 -4% -19,353 -17,889 8% -24,366

Derivative instruments recognised as hedges 297 237 25% 325 -9% 561 1,645 -66% 1,603

Subordinated liabilities -308 -441 -30% -336 -8% -1,018 -1,236 -18% -1,656

Other interest expense -1,293 -1,169 11% -1,123 15% -3,680 -7,034 -48% -8,384

Total interest expense -9,798 -10,677 -8% -10,128 -3% -30,891 -32,445 -5% -43,675Of which interest income reported in Net gains/losses on financial items -1,146 -807 42% -1,083 6% -3,365 -4,759 -29% -5,728

Interest expense according to income statement -8,652 -9,870 -12% -9,045 -4% -27,526 -27,686 -1% -37,947

Net interest income 6,462 6,066 7% 6,575 -2% 19,597 17,256 14% 23,613

26 Handelsbanken



26 Handelsbanken

Note 3 Net fee and commission income

Note 4 Net gains/losses on financial items at fair value

Note 5 Other administrative expenses

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Brokerage and other securities commissions 243 310 -22% 266 -9% 864 1,085 -20% 1,400

Mutual funds 425 402 6% 422 1% 1,242 1,269 -2% 1,639

Custody 82 89 -8% 85 -4% 256 286 -10% 370

Advisory services 26 62 -58% 48 -46% 144 161 -11% 212

Insurance 142 203 -30% 142 0% 446 523 -15% 647

Payments 685 650 5% 670 2% 1,967 1,891 4% 2,568

Lending and deposits 281 315 -11% 311 -10% 890 889 0% 1,239

Guarantees 101 112 -10% 124 -19% 351 350 0% 475

Other 103 99 4% 102 1% 313 307 2% 426

Commission income 2,088 2,242 -7% 2,170 -4% 6,473 6,761 -4% 8,976Securities commissions -47 -59 -20% -55 -15% -162 -156 4% -215

Payment commissions -273 -239 14% -264 3% -779 -704 11% -979

Other commission expenses -26 -41 -37% -26 0% -73 -105 -30% -109

Commission expense -346 -339 2% -345 0% -1,014 -965 5% -1,303Net fee and commission income 1,742 1,903 -8% 1,825 -5% 5,459 5,796 -6% 7,673

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Available for sale, realised -1 -73 99% 0 14 101 -86% 100

Hedge accounting Fair value hedges 72 44 64% 96 -25% 193 -22 -74 Hedge ineffectiveness 5 0 -5 1 -1 -9

Instruments at fair value 462 2,149 -79% 615 -25% 617 2,381 -74% 2,781

Loans at amortised cost 71 96 -26% 72 -1% 201 215 -7% 276

Financial liabilities at amortised cost -69 -15 -360% -69 0% -176 -30 -487% -66Gains/losses on unbundled insurance contracts 5 6 -17% 8 -38% -5 -4 -25% -8

Trading / Other -354 -1,923 82% -498 29% -91 -1,687 95% -1,984Total 191 284 -33% 219 -13% 754 953 -21% 1,016

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Property and premises -263 -267 -1% -279 -6% -832 -803 4% -1,089

External IT costs -356 -388 -8% -387 -8% -1,128 -1,127 0% -1,533

Communication -72 -88 -18% -99 -27% -263 -274 -4% -379

Travel and marketing -77 -86 -10% -103 -25% -264 -290 -9% -423

Purchased services -244 -203 20% -244 0% -713 -714 0% -976

Supplies -40 -48 -17% -45 -11% -135 -160 -16% -216

Other expenses -56 -126 -56% -79 -29% -223 -300 -26% -444Other administrative expenses -1,108 -1,206 -8% -1,236 -10% -3,558 -3,668 -3% -5,060

27 Handelsbanken



27 Handelsbanken

Note 6 Loan losses and impaired loans

Loan losses

Impaired loans Impaired loans includes all loans for which not all the contracted cash flows will probably be fulfilled. The full amount of all loans which give rise to a specific provision is included in impaired loans, including amounts which are covered by collateral. This means that the impaired loans reserve ratio is stated without taking into account collateral received. Thus this key figure may vary substantially between the quarters, even though the provisioning policies are unchanged.

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011Specific provision for individually valued loan receivablesProvision for the period -325 -483 -33% -263 24% -946 -1,161 -19% -1,341

Write-back of previous provisions 51 158 -68% 63 -19% 193 299 -35% 335

Total -274 -325 -16% -200 37% -753 -862 -13% -1,006

Collective provisions

Net provision for the period for individually valued receivables 57 -19 5 50 38 32% 29

Net provision for the period for homogenous loan receivables -8 5 4 -1 30 33

Total 49 -14 9 444% 49 68 -28% 62

Other provisions

Allocations for off-balance sheet items - 14 - - 14 14

Write-back of previous provisions - - 0 0 - -

Guarantees honoured 3 2 50% -1 7 5 40% 2

Total 3 16 -81% -1 7 19 -63% 16

Write-offs

Actual loan losses for the period -198 -1,721 -88% -278 -29% -864 -2,173 -60% -2,669

Utilised share of previous provisions 110 1,844 -94% 129 -15% 568 2,194 -74% 2,271

Recoveries 33 43 -23% 53 -38% 137 181 -24% 510

Total -55 166 -96 -43% -159 202 112

Change in value of repossessed property

Value change for the period - - - - - -

Net loan losses -277 -157 76% -288 -4% -856 -573 49% -816

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011Impaired loans 7,171 6,872 6,762 6,858 6,933

Specific provision for individually assessed loans -3,673 -3,608 -3,527 -3,680 -3,649

Provision for collectively assessed homogenous groups of loans with limited value -118 -110 -113 -115 -121

Collective provisions for individually assessed loans -313 -372 -378 -366 -359

Impaired loans, net 3,067 2,782 2,744 2,697 2,804

Total impaired loans reserve ratio 57.2% 59.5% 59.4% 60.7% 59.6%

Proportion of impaired loans, % 0.18% 0.16% 0.16% 0.16% 0.17%

Impaired loans reserve ratio excl. collective provisions 52.9% 54.1% 53.8% 55.3% 54.4%

Loan loss ratio as a % of loans, accumulated 0.07% 0.07% 0.07% 0.05% 0.05%

Non-performing loans 7,029 6,814 6,490 6,357 6,755

Non-performing loans which are not impaired loans 2,715 2,852 2,753 2,161 2,354

28 Handelsbanken



28 Handelsbanken

Impaired loans and/or non-performing loans, by sector

Note 7 Discontinued operations Discontinued operations comprise the results from the Plastal Industri AB subsidiary, including the acquired parts of the Plastal Group. The Bank intends to divest Plastal Industri AB.

30 September 2012

SEK m Gross Provisions Net*Of which non-

performing

Private individuals 1,532 -840 692 611 1,727Housing co-operative associations 32 -9 23 20 70Property management 893 -343 550 454 442Manufacturing 846 -504 342 168 16Retail 558 -345 213 173 69Hotel and restaurant 67 -33 34 29 32Passenger and goods transport by sea 857 -377 480 15 -Other transport and communication 283 -164 119 108 133Construction 294 -157 137 135 72Electricity, gas and water 87 -24 63 1 16Agriculture, hunting and forestry 30 -19 11 10 18Other services 92 -51 41 33 61Holding, investment and insurance companies, funds etc. 1,120 -657 463 19 10Other corporate lending 480 -268 212 204 49Credit institutions - - - - -Total 7,171 -3,791 3,380 1,980 2,715* Book value after deduction of specific provisions.

Impaired loans Non-performing loans which are not

impaired loans

31 December 2011

SEK m Gross Provisions Net*Of which non-

performing

Private individuals 1,418 -820 598 495 1,464Housing co-operative associations 7 -4 3 - 76Property management 1,275 -410 865 515 296Manufacturing 933 -497 436 307 51Retail 497 -305 192 182 59Hotel and restaurant 173 -120 53 53 29Passenger and goods transport by sea 202 -202 - - -Other transport and communication 244 -178 66 57 20Construction 289 -170 119 114 51Electricity, gas and water 37 -15 22 2 -Agriculture, hunting and forestry 26 -20 6 5 23Other services 115 -60 55 45 56Holding, investment and insurance companies, funds etc. 1,231 -702 529 44 33Other corporate lending 411 -292 119 100 3Credit institutions - - - - -Total 6,858 -3,795 3,063 1,919 2,161* Book value after deduction of specific provisions.

Impaired loans Non-performing loans which are not

impaired loans

29 Handelsbanken



29 Handelsbanken

Note 8 Loans and credit exposure

Loans to the public, by sector

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Loans to the public 1,620,505 1,632,464 1,627,093 1,591,128 1,598,737

of which reverse repos 14,295 24,219 23,440 13,669 21,186Loans to other credit institutions 84,364 90,927 86,399 106,823 116,834

of which reverse repos 56,132 54,747 55,234 60,585 65,097

Other loans to central banks 35,777 167,300 120,663 124,122 76,142 of which reverse repos 1,440 582 5,534 228 116

SEK mLoansgross Provisions

Loansnet

Loansgross Provisions

Loansnet

Private individuals 727,274 -840 726,434 713,137 -820 712,317 of which mortgage loans 596,125 -36 596,089 581,659 -30 581,629 of which other loans with property mortgages 63,913 -67 63,846 64,122 -100 64,022 of which other loans to private individuals 67,236 -737 66,499 67,356 -690 66,666Housing co-operative associations 125,846 -9 125,837 123,847 -4 123,843 of which mortgage loans 112,563 -4 112,559 109,334 -4 109,330Property management 420,060 -343 419,717 396,961 -410 396,551Manufacturing 46,717 -504 46,213 49,221 -497 48,724Retail 34,771 -345 34,426 35,693 -305 35,388Hotels and restaurants 7,612 -33 7,579 7,201 -120 7,081Passenger and goods transport by sea 17,473 -377 17,096 18,356 -202 18,154Other transport and communication 33,867 -164 33,703 37,374 -178 37,196Construction 13,516 -157 13,359 12,371 -170 12,201Electricity, gas, water 22,908 -24 22,884 22,091 -15 22,076Agriculture, hunting and forestry 8,501 -19 8,482 7,331 -20 7,311Other services 25,858 -51 25,807 24,398 -60 24,338Holding, investment, insurance comp., funds, etc. 82,376 -657 81,719 85,998 -702 85,296Government and municipalities 31,311 - 31,311 21,654 - 21,654Other corporate lending 26,519 -268 26,251 39,656 -292 39,364Total loans to the public, before collective provisions 1,624,609 -3,791 1,620,818 1,595,289 -3,795 1,591,494Collective provisions -313 -366Total loans to the public 1,620,505 1,591,128

30 September 2012 31 December 2011

30 Handelsbanken



30 Handelsbanken

Specification of Loans to the public – Property management

Credit risk exposure

Note 9 Derivative instruments

SEK mLoansgross Provisions

Loansnet

Loansgross Provisions

Loansnet

Loans in SwedenState-owned property companies 9,416 - 9,416 11,808 - 11,808Municipal-owned property companies 14,351 - 14,351 15,566 - 15,566Residential property companies 68,090 -13 68,077 65,556 -12 65,544 of which mortgage loans 48,392 -3 48,389 46,404 -2 46,402Other property management 137,859 -119 137,740 130,250 -127 130,123 of which mortgage loans 60,557 -5 60,552 58,036 -8 58,028Total loans in Sweden 229,716 -132 229,584 223,180 -139 223,041Loans outside SwedenDenmark 9,949 -69 9,880 9,408 -48 9,360Finland 19,090 -7 19,083 18,718 - 18,718Norway 78,800 -75 78,725 74,615 -73 74,542UK 65,558 -38 65,520 56,953 -127 56,826Other countries 16,947 -22 16,925 14,087 -23 14,064Total loans outside Sweden 190,344 -211 190,133 173,781 -271 173,510

Total loans - Property management 420,060 -343 419,717 396,961 -410 396,551

30 September 2012 31 December 2011

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Loans to the public 1,620,505 1,632,464 1,627,093 1,591,128 1,598,737


Other loans to central banks 35,777 167,300 120,663 124,122 76,142

of which reverse repos 1,440 582 5,534 228 116

Loans to other credit institutions 84,364 90,927 86,399 106,823 116,834


Unutilised part of granted overdraft facilities 125,266 125,622 149,940 152,392 152,476

Committed loan offers 238,672 240,475 254,537 254,415 260,133

Other commitments 8,214 12,080 7,974 9,035 3,086

Guarantees, credits 10,702 15,346 16,817 17,161 17,486

Guarantees, other 39,310 41,456 43,254 42,657 38,118

Documentary credits 33,686 33,650 32,249 36,712 35,996

Derivatives * 135,490 125,903 114,080 142,074 166,016

Treasury bills and other eligible bills 50,005 49,316 55,657 43,971 44,363

Bonds and other interest-bearing securities 69,738 62,657 64,185 60,231 74,415Total 2,451,729 2,597,196 2,572,848 2,580,721 2,583,802

* Refers to the total of positive market values.

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Positive market valuesTrading 105,761 99,919 90,877 117,588 141,278

Fair value hedges 23,255 20,232 19,512 23,888 24,184

Cash flow hedges 6,474 5,752 3,691 598 554Total 135,490 125,903 114,080 142,074 166,016

Negative market valuesTrading 111,150 101,132 98,051 118,301 135,753


Cash flow hedges 8,725 6,473 6,191 1,234 1,230Total 133,370 116,512 113,160 127,303 143,804

Nominal valueTrading 9,714,008 11,049,529 11,742,363 12,015,694 13,285,337


Cash flow hedges 269,158 235,292 186,940 42,603 43,138Total 10,535,326 11,784,374 12,420,139 12,591,531 13,851,225

31 Handelsbanken



31 Handelsbanken

Note 10 Goodwill and other intangible assets

Note 11 Due to credit institutions, deposits and borrowing from the public

Note 12 Assets managed

Note 13 Turnover of own debt instruments and shares

The Handelsbanken Group issues and repurchases debt instruments and equity-related securities which it has issued on its own account. This turnover is mainly intended as part of the Bank’s securities operations and also as a component in financing its operations. During the period January to September 2012, the turnover was:

Interest-bearing securities, bonds and certificates (SEK billion): Group Parent company Issued (sold): 1,359 887 Repurchased (bought): 171 32 Repaid: 1,058 842

Equity-related securities (SEK billion): Issued (sold): 2.6 Repurchased (bought): 2.4

SEK mJan-Sep

2012Jan-Sep

2011Full year

2011

Opening residual value 7,079 6,905 6,905

Additional during the period 226 182 301

The period's amortisation -90 -78 -106

The period's impairments -3 0 -2

Foreign exchange effect -144 78 -19

Closing residual value 7,068 7,087 7,079

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Due to credit institutions 227,153 265,528 249,783 201,889 235,431

of which repos 1,326 4,271 4,041 4,055 6,423

Deposits and borrowing from the public 728,572 723,669 683,182 724,888 720,482 of which repos 9,004 11,854 10,589 8,001 10,477

SEK bn, end of period30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Mutual funds, excl. PPM 133 125 126 118 111

PPM 10 10 10 9 7

Unit-linked insurance 47 45 45 41 39

XACT (Exchange-traded funds) 22 21 22 21 20Total mutual funds 212 201 203 189 177

Portfolio bond insurance 16 15 16 15 14

Traditional insurance 12 12 13 13 14

Institutional 106 106 98 88 85 of which in Handelsbanken mutual funds 45 41 43 37 34

Structured products 29 29 29 31 35

Directly owned shares in custody 159 149 166 150 139

Other securities in custody 45 46 43 43 42

Handelsbanken's foundations 48 45 47 41 38 of which in Handelsbanken mutual funds 6 5 4 4 4Total assets under management, Handelsbanken Group 576 557 568 529 506

32 Handelsbanken



32 Handelsbanken

Note 14 Pledged assets, contingent liabilities and other commitments

The total contingent liabilities mainly consist of credit guarantees. This amount includes SEK 7 million (7) relating to a number of civil actions which the Group is bringing in general courts of law.

Note 15 Classification of financial assets and liabilities

The tables show valuation categories for financial instruments in accordance with IAS 39.

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Pledged assets for own debt 747,190 745,345 739,251 735,288 708,233

Other pledged assets 5,154 5,434 4,640 5,323 5,804

Contingent liabilities 83,708 90,462 92,326 96,536 91,696Other commitments 372,152 378,177 412,451 415,842 415,695

30 September 2012

SEK m Trading Other

Derivatives identified as

hedgeinstruments

Investments held to

maturityLoans and

receivables

Financial assets

available for sale

Otherfinancial assets/

liabilities

Total carrying amount

Assets Cash and balances with central banks 341,208 341,208Other loans to central banks 35,777 35,777Treasury bills and other eligible bills 24,389 18,272 6,284 1,060 50,005Loans to other credit institutions 84,364 84,364Loans to the public 4,222 1,616,283 1,620,505Value change of interest hedged item inportfolio hedge 5,792 5,792Bonds and other interest-bearing securities 31,221 35,090 1,327 2,100 69,738Shares 18,261 2,628 4,859 25,748Investments in associates 195 195Assets where the customer bears the valuechange risk 67,802 986 68,788Derivative instruments 105,761 29,729 135,490Other assets 31 50,859 34 50,924Prepaid expenses and accrued income 623 596 211 7,261 8,691Total financial assets 180,286 128,610 29,729 7,822 2,142,530 8,019 229 2,497,225Non-financial assets 16,097Total assets 2,513,322

Liabilities Due to credit institutions 227,153 227,153Deposits and borrowing from the public 728,572 728,572Liabilities where the customer bears the value change risk 67,849 986 68,835Issued securities 10,872 1,139,631 1,150,503Derivative instruments 111,150 22,220 133,370Short positions 19,504 19,504Other liabilities 35 23,548 23,583Accrued expenses and deferred income 588 23,269 23,857Subordinated liabilities 24,406 24,406Total financial liabilities 142,149 67,849 22,220 2,167,565 2,399,783Non-financial liabilities 12,552Total liabilities 2,412,335

At fair value in income statement divided into

33 Handelsbanken



33 Handelsbanken

31 December 2011

SEK m Trading Other

Derivatives identified as

hedgeinstruments

Investments held to

maturityLoans and

receivables

Financial assets

available for sale

Otherfinancial assets/

liabilities

Total carrying amount

Assets Cash and balances with central banks 251,857 251,857Other loans to central banks 124,122 124,122Treasury bills and other eligible bills 14,350 21,435 6,461 1,725 43,971Loans to other credit institutions 106,823 106,823Loans to the public 4,945 1,586,183 1,591,128Value change of interest hedged item inportfolio hedge 4,490 4,490Bonds and other interest-bearing securities 14,401 35,751 3,339 6,740 60,231Shares 20,345 2,597 4,294 27,236Investments in associates 205 205Assets where the customer bears the valuechange risk 61,212 1,509 62,721Derivative instruments 117,588 24,486 142,074Other assets 43 14,224 14,267Prepaid expenses and accrued income 173 1,305 172 6,861 1 8,512Total financial assets 166,900 127,245 24,486 9,972 2,096,069 12,760 205 2,437,637Non-financial assets 16,729Total assets 2,454,366

Liabilities Due to credit institutions 201,889 201,889Deposits and borrowing from the public 724,888 724,888Liabilities where the customer bears the value change risk 61,291 1,509 62,800Issued securities 9,125 1,130,949 1,140,074Derivative instruments 118,286 9,017 127,303Short positions 21,397 21,397Other liabilities 46 13,801 13,847Accrued expenses and deferred income 168 20,809 20,977Subordinated liabilities 35,317 35,317Total financial liabilities 149,022 61,291 9,017 2,129,162 2,348,492Non-financial liabilities 11,350Total liabilities 2,359,842

At fair value in income statement divided into

34 Handelsbanken



34 Handelsbanken

Note 16 Fair value measurement of financial assets and liabilities

The tables show the valuation technique applied for financial assets and liabilities at fair value. Level 1 comprises instruments for which there are listed prices on an active market. Level 2 comprises instruments which have been indirectly valued using market information. Level 3 consists of instruments whose valuation depends materially upon a variable that is not directly available on the market.

30 September 2012SEK m Level 1 Level 2 Level 3 Total

43,721 - - 43,721

- 4,195 27 4,222

50,985 17,426 - 68,411

22,891 1,250 1,607 25,748

67,802 - - 67,802

2,123 133,367 - 135,490

187,522 156,238 1,634 345,394

67,849 - - 67,849

- 10,797 75 10,872

3,492 129,878 - 133,370

17,114 2,390 - 19,504

88,455 143,065 75 231,595

31 December 2011SEK m Level 1 Level 2 Level 3 Total

37,510 - - 37,510

- 4,920 25 4,945

46,003 10,889 - 56,892

24,974 460 1,802 27,236

61,212 - - 61,212

1,764 140,310 - 142,074

171,463 156,579 1,827 329,869

61,291 - - 61,291

625 8,423 77 9,125

3,324 123,976 3 127,303

20,386 1,011 - 21,397

85,626 133,410 80 219,116Total financial liabilities at fair value

LiabilitiesLiabilities where the customer bears the value change risk

Issued securities

Derivative instruments

Short positions

Assets

Liabilities

AssetsTreasury bills and other eligible bills

Total financial assets at fair value

Liabilities where the customer bears the value change risk

Issued securities


Short positions

Treasury bills and other eligible bills

Loans to the public

Bonds and other interest-bearing securities

Shares

Assets where the customer bears the value change risk


Total financial assets at fair value

Total financial liabilities at fair value

Loans to the public

Bonds and other interest-bearing securities

Shares

Assets where the customer bears the value change risk


35 Handelsbanken



35 Handelsbanken

Note 17 Assets and liabilities by currency

Note 18 Related-party transactions There have been no business transactions of material importance with related parties during the period. All business transactions with associated companies are made on market terms.

30 September 2012

SEK m SEK EUR NOK DKK GBP USDOther

currencies Total

AssetsCash and balances with central banks 1,203 92,263 9,964 64 4 237,470 240 341,208

Other loans to central banks 27,230 89 8,319 90 49 35,777

Loans to other credit institutions 10,118 12,431 685 513 85 57,529 3,003 84,364

Loans to the public 1,090,384 145,813 188,597 51,124 105,091 27,722 11,774 1,620,505

of which corporates 498,246 111,677 108,930 22,279 76,827 27,639 10,329 855,927

of which households 592,138 34,136 79,667 28,845 28,264 83 1,445 764,578

Treasury bills and other eligible securities 27,668 3,449 4,558 32 0 13,245 1,053 50,005

Bonds and other interest-bearing securities 57,292 6,955 3,499 86 1,767 139 69,738

Other assets not broken down by currency 311,725 311,725Total assets 1,525,620 261,000 207,303 60,138 105,270 337,733 16,258 2,513,322

LiabilitiesDue to credit institutions 33,352 49,675 21,130 10,137 7,198 89,152 16,509 227,153

Deposits and borrowing from the public 407,310 72,147 52,609 24,844 46,058 119,290 6,314 728,572


of which households 221,732 12,041 15,363 10,078 5,514 1,265 241 266,234

Issued securities 501,187 256,728 14,810 355 61,393 301,006 15,024 1,150,503

Subordinated liabilities 8,249 10,462 4,352 85 1,258 24,406

Other items not broken down by currency 382,688 382,688Total liabilities and equity 1,332,786 389,012 88,549 35,336 119,001 509,533 39,105 2,513,322

Other assets and liabilities broken down by currency and off-balance sheet items 127,939 -118,667 -24,853 13,726 171,661 23,015Net foreign currency position -73 87 -51 -5 -139 168 -13

31 December 2011

SEK m SEK EUR NOK DKK GBP USDOther

currencies Total

AssetsCash and balances with central banks 1,302 3,169 7,090 91 4 239,403 798 251,857

Other loans to central banks 13,108 83,974 9,406 17,555 79 0 124,122

Loans to other credit institutions 22,456 14,790 138 580 58 65,410 3,391 106,823

Loans to the public 1,073,324 144,068 182,275 51,510 90,875 34,989 14,087 1,591,128


of which households 582,837 34,862 76,812 28,021 23,853 80 1,732 748,197

Treasury bills and other eligible securities 34,868 3,519 616 35 3,214 1,719 43,971

Bonds and other interest-bearing securities 46,275 6,926 1,103 65 5,686 176 60,231

Other assets not broken down by currency 276,234 276,234Total assets 1,467,567 256,446 200,628 69,836 91,016 348,702 20,171 2,454,366

LiabilitiesDue to credit institutions 41,594 61,476 11,797 12,626 5,552 60,366 8,478 201,889

Deposits and borrowing from the public 400,176 78,267 53,125 25,250 31,124 130,509 6,437 724,888


of which households 211,070 13,578 14,412 10,390 5,001 1,248 242 255,941

Issued securities 485,556 243,320 9,431 456 46,590 346,179 8,542 1,140,074

Subordinated liabilities 9,562 16,364 112 7,730 211 1,338 35,317

Other items not broken down by currency 352,198 352,198Total liabilities and equity 1,289,086 399,427 74,353 38,444 90,996 537,265 24,795 2,454,366

Other assets and liabilities broken down by currency and off-balance sheet items 143,320 -126,221 -31,367 147 188,701 4,705Net foreign currency position 339 54 25 167 138 81 804

36 Handelsbanken



36 Handelsbanken

Note 19 Capital base and capital requirement in the banking group The quantitative information provided in this section follows the directives and general guidelines of the Swedish Financial Supervisory Authority concerning publication of information relating to capital adequacy and risk management. Figures reported in this section refer to the minimum capital requirements under Pillar 1 of Basel II.

Capital base

* In an intra-group transaction, the parent company sold subsidiary shares to Handelsbanken Liv during the second quarter. In connection with this, a capital contribution of SEK 2,500 million was made to the life insurance company. The transaction strengthens the life insurance company’s equity but does not affect the assets held on behalf of the policyholders.

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

TIER 1 CAPITALEquity, group 100,987 97,014 92,727 94,524 91,696

Accrued dividend, current year -4,621 -3,066 -1,528 -6,085 -4,212

Dividend for previous year (unpaid)

Deduction of equity outside the banking group -1,183 -1,189 -1,185 -558 -579

Difference in earnings between the group and the banking group 2,954 3,041 -67 -520 -348

Minority interests, group -1 -1 -1 0 -1

Equity, capital base 98,136 95,799 89,946 87,361 86,556Innovative Tier 1 capital contributions 9,513 10,298 10,609 11,254 11,411

Non-innovative Tier 1 capital contributions 2,905 2,906 2,908 2,910 2,911

Minority interests, banking group 559 549 436 423 431

Deducted items

Goodwill and other intangible assets -7,285 -7,350 -7,302 -7,234 -7,234

Revaluation reserve -109 -111 -113 -115 -117

Price adjustments for positions reported at fair value -14 -20 -27 -56 -

Deferred tax assets -72 -80 -48 -386 -383

Special deduction for IRB institutions -1,050 -1,097 -1,017 -945 -1,042

Capital contribution in companies outside the banking group* -1,483 -1,483 -233 -234 -234

Positions in securitisation -207 -218 -210 -219 -285

Adjustments in accordance with stability filter

Cash flow hedges -576 -339 905 676 646

Unrealised accumulated gains, shares -524 -285 -645 -133 -

Unrealised accumulated gains/losses, fixed income instruments 178 212 223 246 287

Total Tier 1 capital 99,971 98,781 95,432 93,548 92,947

TIER 2 CAPITALPerpetual subordinated loans 3,155 3,233 3,165 11,710 11,920

Dated subordinated loans 7,588 7,803 7,914 7,957 6,533

Additional items

Unrealised accumulated gains, shares 524 285 645 133 -

Revaluation reserve 109 111 113 115 117

Deducted items

Special deduction for IRB institutions -1,050 -1,097 -1,017 -945 -1,042

Capital contribution in companies outside the banking group* -1,483 -1,483 -233 -234 -234

Positions in securitisation -207 -218 -210 -219 -285

Total Tier 2 capital 8,636 8,634 10,377 18,517 17,009Total Tier 1 and Tier 2 capital 108,607 107,415 105,809 112,065 109,956Deductible items from total capital base

Capital contribution in insurance companies -4,417 -4,417 -4,417 -4,417 -4,417

Surplus value pension assets -1,707 -1,837 -1,999 -1,471 -3,777

Total capital base for capital adequacy purposes 102,483 101,161 99,393 106,177 101,762

37 Handelsbanken



37 Handelsbanken

Capital requirement

Capital adequacy analysis

Figures reported in this section refer to the minimum capital requirements under Pillar 1 of the capital adequacy rules, Basel II. In the table, “according to Basel II” means that the figures are based on the minimum capital requirements after the transitional rules have ceased to apply.

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Credit risk according to standardised approach 3,817 3,954 3,964 3,760 3,876

Credit risk according to IRB approach 30,127 31,596 30,868 31,904 33,174

Interest rate risk 888 873 928 850 1,625

Equity price risk 19 30 27 14 28

Exchange rate risk - - - - -

Commodities risk 8 16 18 20 31

Settlement risk 1 - - - -

Operational risk 4,181 4,181 4,181 4,117 4,117Total capital requirement according to Basel II 39,041 40,650 39,986 40,665 42,851

Adjustment according to transitional rules 40,444 39,878 39,542 38,389 35,587Capital requirement according to Basel II, transitional rules 79,485 80,528 79,528 79,054 78,438

Risk-weighted assets, transitional rules 993,559 1,006,595 994,096 988,180 980,475

Risk-weighted assets, Basel II 488,007 508,124 499,826 508,317 535,640

30 Sep 2012

30 Jun 2012

31 Mar 2012

31 Dec 2011

30 Sep 2011

Capital requirement in Basel II compared to transitional rules 49% 50% 50% 51% 55%

Capital ratio, Basel II 21.0% 19.9% 19.9% 20.9% 19.0%

Capital ratio, transitional rules 10.3% 10.0% 10.0% 10.7% 10.4%

Tier 1 ratio, Basel II 20.5% 19.4% 19.1% 18.4% 17.4%

Tier 1 ratio, transitional rules 10.1% 9.8% 9.6% 9.5% 9.5%

Core tier 1 ratio, Basel II 17.9% 16.8% 16.4% 15.6% 14.7%

Capital base in relation to capital requirement Basel II 263% 249% 249% 261% 237%Capital base in relation to capital requirement according to transitional rules 129% 126% 125% 134% 130%

38 Handelsbanken



38 Handelsbanken

Credit risks IRB

Handelsbanken is implementing the IRB model for its credit exposures in stages. Swedish, Danish, Finnish and Norwegian exposures to households and small companies, and corresponding exposures in the Handelsbanken Finans and Stadshypotek Groups have been approved for IRB reporting. For corporate and institutional exposures, the exposures at all regional banks, Stadshypotek and Handelsbanken Finans have been approved for calculation of the capital requirement according to the IRB model, as have exposures to institutions and large companies at Handelsbanken’s foreign branches that are not part of the regional banking operations. In 2010, Handelsbanken received permission from the Swedish Financial Supervisory Authority to report parts of its corporate portfolio according to the advanced IRB approach, with the first reporting occasion as at 31 December 2010. The permit refers to counterparties which are categorised as medium-sized companies, property companies and housing co-operative associations. The table presents the corporate exposures as at 30 September 2012, split into the foundation and the advanced approaches. In addition, repos and securities loans are reported separately, since they give rise to very low capital requirements, while the volume varies considerably over time.

The low capital requirement is due to the fact that the exposure in repos and securities loans is reported gross and the exposure is secured.

The average risk weight for IRB exposures went down during the third quarter. This is partly attributable to the fact that the Bank continues to increase its lending to corporate customers with high creditworthiness and good collateral and reduce it to customers with poorer creditworthiness. Some 95 per cent of Handelsbanken’s corporate exposures was to customers with a repayment capacity assessed as normal or better than normal, i.e. with a rating grade between one and five on the Bank’s ten-point rating scale.

The IRB models are based on historical losses from both the recent financial crisis and the Swedish banking crisis of the early 1990s. These risk weights reflect the fact that Handelsbanken has reported low loan losses over a long period. The risk measurements applied also contain significant safety margins to ensure that the risk is not underestimated.

SEK m30 Sep

201231 Dec

201130 Sep

201231 Dec

201130 Sep

201231 Dec

2011

Corporates 911,841 917,480 31.6 33.4 23,061 24,529 of which repos and securities loans 6,966 6,340 0.5 1.5 3 8 of which other loans foundation approach 341,470 374,461 44.2 43.6 12,061 13,052 of which other loans advanced approach 563,405 536,679 24.4 26.7 10,997 11,469 of which medium-sized companies 74,953 75,068 61.8 65.8 3,703 3,949 of which property companies 364,443 339,390 22.7 25.1 6,622 6,812 of which housing co-operative associations 124,009 122,221 6.8 7.2 672 708

Households 741,500 730,669 7.6 7.2 4,480 4,217

of which property loans 656,377 643,449 5.4 5.4 2,842 2,795

of which other loans 85,123 87,220 24.1 20.4 1,639 1,422

Small companies 28,624 29,800 37.2 38.9 852 927

Institutions 123,389 158,538 10.2 12.3 1,007 1,559

of which repos and securities loans 69,078 79,640 0.3 0.5 18 32

of which other loans 54,311 78,898 22.8 24.2 989 1,527

Equity exposures 4,861 4,355 139.7 136.2 543 475

Exposures without a counterparty 2,250 2,364 100.0 100.0 180 189

Securitisation positions 1,322 1,944 4.0 5.0 4 8

of which Traditional securitisation 1,322 1,944 4.0 5.0 4 8

of which Synthetic securitisation - - - - - -

Total IRB 1,813,787 1,845,150 20.8 21.6 30,127 31,904 of which repos and securities loans 76,044 85,980 0.3 0.6 21 40 of which other loans foundation approach 404,214 462,022 42.6 41.3 13,777 15,251 of which other loans advanced approach 1,333,529 1,297,148 15.3 16.0 16,329 16,613

Exposure after credit risk protection (EAD) Average risk weight, % Capital requirement

39 Handelsbanken



39 Handelsbanken

Note 20 Risk and capital management

Risks and uncertainty factors There is still substantial uncertainty surrounding the international economic cycle. The global economy is in a state of imbalance, with many indebted economies. The weak situation in the eurozone is particularly worrying. As long as the imbalances prevail, the unstable situation will continue to affect the economic trend and the financial markets. Handelsbanken does not have any sovereign exposures to the “PIIGS” countries, but may be affected indirectly if the crisis were to worsen significantly. However, Handelsbanken’s historically low tolerance of risks, sound capitalisation and strong liquidity mean that the Bank is well equipped to operate under these conditions.

Turbulence in the financial markets affects banks’ opportunities to access mainly long-term funding. Handelsbanken has a strong liquidity situation both as a whole and in all currencies which are of importance for the Bank; it has continually had full access to the capital markets. The Bank is therefore well equipped to manage situations of increased financial turbulence.

Handelsbanken has low tolerance of market risks. For the third quarter of 2012, the average total exposure in the trading book, measured as Value-at-Risk (VaR), was SEK 18 million (Q3 2011: SEK 18 million). During the period, the risk varied between SEK 10 million (10) and 26 million (29). Handelsbanken’s liquidity situation is healthy and is described in more detail under the heading Liquidity and funding.

Other aspects of the Bank’s risk and capital management are described in Handelsbanken’s 2011 annual report and in Handelsbanken’s Risk and capital management – Information according to Pillar 3 for 2011. No material changes have occurred since the publication of these documents that are not presented in this interim report.

Liquidity and funding Handelsbanken’s liquidity situation is healthy. For a long period of time, the Bank has actively worked with liquidity measures and has adopted a conservative approach. Part of this work has involved centralising liquidity management with the purpose of strengthening control of the liquidity risks and of guaranteeing and optimising the Bank’s funding in all scenarios. The Bank has worked for a long time

on extending the maturities of its funding by increasing bond issues and ensuring that liquidity risks are included in internal pricing.

The Bank’s funding programme covers the entire maturity spectrum in SEK, EUR and USD that the Bank needs to finance its lending and also creates the opportunity for issues in all currencies that are relevant for the Bank.

Funding programmes/limits as of 30 September 2012 – Group

Programme (in millions)Programme

size CurrencyUnutilised

amountCountervalue

SEK m Issued latest

MTN * 100,000 SEK 68,190 68,190 Sep-12

EMTN * 50,000 USD 28,116 184,092 Sep-12

General funding > 1 y * 15,000 USD 12,960 84,857 Jul-12

USCP 15,000 USD 7,810 51,137 Sep-12

ECP * 5,000 EUR 2,486 20,937 Sep-12

ECP (Stadshypotek) * 4,000 EUR 2,398 20,196 Sep-12

Swedish Commercial Paper 25,000 SEK 19,455 19,455 Sep-12

Swedish Commercial Paper (Stadshypotek) 90,000 SEK 85,960 85,960 Sep-12

French Commercial Paper 5,000 EUR 2,557 21,535 Sep-12

Extendible Notes 15,000 USD 13,107 85,819 Sep-12

EMTCN (Stadshypotek) * 20,000 EUR 6,910 58,195 Aug-12

US 144A/3(a)(2) 15,000 USD 9,650 63,184 Apr-12

Stadshypotek US 144A 15,000 USD 11,900 77,916 Sep-12

Stadshypotek AUD Covered Bond Programme 5,000 AUD 4,250 28,899 Sep-12

Total 870,373Total program (or limited) amounts, SEK m 1,353,793

Amount free to use, SEK m 870,373

Unutilised amount 64%

* Under these programmes it is possible to issue in other currencies than the original programme currency. Currency conversion takes place at the time of issue.

40 Handelsbanken



40 Handelsbanken

As at 30 September 2012, total liquidity reserves exceeded SEK 750 billion. Balances with central banks and banks, as well as securities that are eligible as collateral with central banks, totalled SEK 498 billion

(see table below). In addition, there was an unutilised issue amount for covered bonds and other liquidity-creating measures.

Balances with central banks and banks, and securities holdings in the liquidity reserve

Maturities for USD assets and liabilities 30 September 2012

Liquidity coverage ratio (LCR)

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011Cash and balances with and other lending to central banks 376,985 437,648 340,824 375,751 338,602Balances with banks & the National Debt Office, overnight (incl. repos) 20,836 14,217 37,675 22,113 33,035

Securities issued by governments and public entities 42,326 35,988 49,771 30,978 36,496Covered bonds 53,878 45,337 43,686 38,954 47,363Securities issued by non-financial companies - 1,821 1,122 2,111Securities issued by financial companies 4,155 4,029 2,737 11,524 8,495Total 498,180 537,219 476,514 480,442 466,102

of which in SEK 116,944 97,788 117,366 98,373 87,077 of which in EUR 102,662 112,433 90,858 95,739 78,080 of which in USD 249,924 266,910 228,323 247,751 265,345 of which in other currencies 28,650 60,088 39,967 38,579 35,600

Market value

30 September 2012

Market value, SEK m SEK EUR USD Other Total

Cash and balances with and other lending to central banks 28,433 92,352 237,470 18,730 376,985

Balances with banks & the National Debt Office, overnight (incl. repos) 16,886 318 401 3,231 20,836

Securities issued by governments 22,929 3,492 8,934 4,550 39,905

Securities issued by municipalities and other public entities 1,327 1,059 - 35 2,421

Covered bonds 41,183 2,337 2,976 150 46,646

Own covered bonds 6,061 - - 1,171 7,232

Securities issued by non-financial companies - - - - -

Securities issued by financial companies 125 3,104 143 783 4,155

Other securities - - - - -Total 116,944 102,662 249,924 28,650 498,180

30 September 2012SEK m Up to 3 mths 3 - 12 mths 1 - 5 yrs 5 yrs -

Unspecified maturity Total

Cash and balances with central banks 237,470 - - - - 237,470Bonds and other interest-bearing securities 13,245 - - - - 13,245Loans to credit institutions 55,371 413 463 1,282 - 57,529Loans to the public 6,766 3,407 14,798 4,516 2 29,489Other, including derivatives 134,361 4,377 24,326 8,736 - 171,800

Total 447,213 8,197 39,587 14,534 2 509,533

Due to credit institutions 86,130 902 180 1 1,940 89,153Deposits and borrowing from the public 107,819 138 - 3,114 8,219 119,290Issued securities 169,177 73,909 41,061 16,858 - 301,005Subordinated liabilities - - - - 85 85

Total 363,126 74,949 41,241 19,973 10,244 509,533

Liquidity Coverage Ratio (LCR), %Q3

2012Q2

2012Q1

2012Q4

2011

EUR 114 166 162 154

USD 209 281 442 624Total 139 178 168 196

41 Handelsbanken



41 Handelsbanken

As a measure of resistance to short-term disruptions in the funding market, the Basel Committee has proposed a liquidity coverage ratio (LCR). This measure expresses the ratio between a bank’s liquidity buffer in the form of liquid assets and net cash outflows in a highly stressed scenario during a 30-day period. The ratio must exceed 100 per cent. Work is under way in the EU to finally draft the regulations and it is not out of the question that there will be changes to the present proposal. Changes to definitions in the measure may mean that the level of the LCR will be changed. As at 30 September 2012,

Handelsbanken’s LCR according to the current definition was 139 per cent, which shows that the Bank has good resistance to short-term disruptions in the funding market. This applies aggregated for all currencies and for USD and EUR individually. A short-term liquidity measure such as LCR may show some volatility over time, for example when funding which was originally long-term and which is funding mortgage lending is close to maturity and is replaced by new long-term funding, or when the composition of the counterparty categories in the short-term funding varies.

Stress test with liquidity-creating measures

The Bank’s liquidity position is regularly subjected to a stress test. In the test, the Bank’s cash flows are stressed, based on certain defined assumptions. The stress test shows resistance to more long-term market disruptions. For example, it is assumed in the stress test that the Bank cannot obtain funding in the financial markets while there is a gradual disappearance of ten per cent of deposits from households and companies over the first month. It is further assumed that the Bank continues to conduct its core activities, and that committed loan offers and other credit facilities are partly utilised by customers.

Account is also taken of the fact that holdings with central banks are utilised and that the Central Treasury liquidity portfolio can provide immediate additional liquidity. In addition, liquidity-creating measures – for example, unutilised facilities to issue covered bonds – are used in order to gradually provide liquidity to the Bank. The result of the stress test shows that even in a stressed scenario, the liquidity reserves cover the Bank’s liquidity requirement for over two years, even if access to new funding in the markets were to disappear.

Note 21 The Handelsbanken share

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13

Stress test of liquidity, including liquidity-creating measuresSEK m

Q32012

Q32011

Q22012

Jan-Sep 2012

Jan-Sep 2011

Full year 2011

Number of converted shares 3,090,412 15,729 2,188,259 7,921,528 592,062 593,180Number of repurchased shares - - - - - -

Holding of own shares in trading book, end of period - 30,070 - - 30,070 79,520Number of outstanding shares after repurchases and deduction for trading book, end of period 631,984,170 624,031,454 628,893,758 631,984,170 624,031,454 623,983,122

Number of outstanding shares after dilution, end of period 648,210,973 652,252,095 648,212,372 648,210,973 652,252,095 650,295,566

Average holdings of shares converted during the year 6,606,531 588,472 3,803,516 3,672,646 234,202 324,498Average holdings of own shares (repurchased and holdings in trading book) 449,295 611,938 664,735 450,922 886,072 714,659Average number of outstanding shares 630,219,878 623,445,996 627,201,423 627,284,366 622,817,592 623,079,301 - after dilution 647,763,077 649,151,317 647,549,966 649,924,164 640,473,455 642,427,248

Share price ordinary class A, SEK 246.10 176.10 226.70 246.10 176.10 181.00Market capitalisation, SEK bn 156 110 143 156 110 113

42 Handelsbanken



42 Handelsbanken

Condensed set of financial statements – Parent company PARENT COMPANY’S INCOME STATEMENT

PARENT COMPANY’S STATEMENT OF COMPREHENSIVE INCOME

In an intra-group transaction during the second quarter, the parent company sold subsidiary shares to Handelsbanken Liv. The transaction resulted in a capital gain in the parent company of SEK 2,815 million, but has no impact on the Group’s income statement or on the assets held on behalf of the policyholders. Other interim information for the parent company with comments concerning financial performance, significant events and risk is covered by the report provided for the whole of the Handelsbanken Group.

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011

Net interest income 4,114 4,020 2% 4,198 -2% 12,467 11,453 9% 15,684Dividends received 30 8 275% 747 -96% 912 838 9% 5,733Net fee and commission income 1,331 1,497 -11% 1,422 -6% 4,234 4,503 -6% 6,026Net gains/losses on financial items 126 236 -47% 3,210 -96% 3,543 356 458

Other operating income 198 149 33% 162 22% 536 465 15% 640Total income 5,799 5,910 -2% 9,739 -40% 21,692 17,615 23% 28,541Staff costs -2,497 -2,474 1% -2,571 -3% -7,706 -7,338 5% -9,247Other administrative expenses -1,112 -1,075 3% -1,497 -26% -3,699 -3,432 8% -4,723Depreciation, amortisation and impairments of property, equipment and intangible assets -122 -131 -7% -134 -9% -397 -399 -1% -538Total expenses before loan losses -3,731 -3,680 1% -4,202 -11% -11,802 -11,169 6% -14,508Profit before loan losses 2,068 2,230 -7% 5,537 -63% 9,890 6,446 53% 14,033Net loan losses -258 -149 73% -274 -6% -789 -613 29% -1,081Impairments of financial assets - - -98 -98 -298 -67% -375Operating profit 1,810 2,081 -13% 5,165 -65% 9,003 5,535 63% 12,577Appropriations 25 27 -7% 26 -4% 77 79 -3% 106Profit before tax 1,835 2,108 -13% 5,191 -65% 9,080 5,614 62% 12,683Taxes -277 -594 -53% -902 -69% -1,758 -1,547 14% -3,470

Profit for the period 1,558 1,514 3% 4,289 -64% 7,322 4,067 80% 9,213

SEK mQ3

2012Q3

2011 ChangeQ2

2012 ChangeJan-Sep

2012Jan-Sep


2011Profit for the period 1,558 1,514 3% 4,289 -64% 7,322 4,067 80% 9,213

Other comprehensive incomeCash flow hedges 330 -494 1,715 -81% 1,789 -258 -264Available-for-sale instruments 378 -1,363 -474 613 -1,731 -1,319Translation differences for the period 92 438 -79% -527 -168 349 36Tax related to other comprehensive income -400 498 -163 -145% -768 536 435Total other comprehensive income 400 -921 551 -27% 1,466 -1,104 -1,112

Total comprehensive income for the period 1,958 593 230% 4,840 -60% 8,788 2,963 197% 8,101

43 Handelsbanken



43 Handelsbanken

PARENT COMPANY’S BALANCE SHEET

SEK m30 Sep

201230 Jun

201231 Mar

201231 Dec

201130 Sep

2011

Assets Cash and balances with central banks 341,089 272,356 225,505 251,592 261,860Treasury bills and other eligible bills 45,764 44,878 51,060 38,144 38,369Loans to credit institutions 421,475 563,671 519,073 532,713 525,088Loans to the public 693,603 716,304 721,276 686,827 699,297Bonds and other interest-bearing securities 64,192 56,968 59,000 56,093 70,148Shares 23,117 22,377 23,427 24,636 24,743Shares in subsidiaries and participating interests in associated companies 46,452 46,452 44,020 44,020 44,096Assets where the customer bears the value change risk 1,950 2,146 2,127 2,644 2,381Derivative instruments 148,401 134,910 123,021 148,972 170,234Intangible assets 1,575 1,604 1,588 1,564 1,534Property and equipment 956 994 2,027 2,093 1,755Current tax assets 299 - - - 701Deferred tax assets 41 46 333 360 353Other assets 33,141 23,181 32,227 17,208 11,735Prepaid expenses and accrued income 6,375 5,739 7,001 6,395 5,403Total assets 1,828,430 1,891,626 1,811,685 1,813,261 1,857,697

Liabilities and equityDue to credit institutions 282,211 323,743 293,660 261,806 291,994Deposits and borrowing from the public 713,627 708,044 668,001 705,565 703,367Liabilities where the customer bears the value change risk 1,997 2,194 2,183 2,673 2,417Issued securities 517,940 560,539 553,811 543,876 538,030Derivative instruments 154,579 135,144 130,900 145,421 163,398Short positions 19,504 24,626 15,280 21,397 27,644Current tax liabilities - 299 346 677 -Deferred tax liabilities 307 19 109 91 87Provisions 37 42 20 24 35Other liabilities 22,976 24,244 41,095 13,058 14,075Accrued expenses and deferred income 13,184 11,999 10,361 9,693 12,195Subordinated liabilities 24,406 25,530 25,915 35,325 35,871Total liabilities 1,750,768 1,816,423 1,741,681 1,739,606 1,789,113

Untaxed reserves 877 935 968 998 1,056

Share capital 2,939 2,924 2,914 2,902 2,902Share premium 2,191 1,647 1,266 793 792Other funds 2,043 1,643 1,091 577 585Retained earnings 62,290 62,290 62,290 59,172 59,182Profit for the period 7,322 5,764 1,475 9,213 4,067Total equity 76,785 74,268 69,036 72,657 67,528Total liabilities and equity 1,828,430 1,891,626 1,811,685 1,813,261 1,857,697

Memorandum itemsAssets pledged for own debt 64,487 72,489 76,895 72,007 81,717Other assets pledged 5,066 5,348 4,557 5,236 5,696Contingent liablilities and commitments 124,872 130,987 135,591 149,061 145,113Other commitments 428,578 444,335 501,002 513,217 487,476

44 Handelsbanken



44 Handelsbanken

SUBMISSION OF REPORT I hereby submit this interim report

Stockholm, 22 October 2012

Pär Boman President and Group Chief Executive

PRESS AND PHONE CONFERENCE A press and analyst conference is being arranged at the Bank’s head office at 9 a.m. (CET) on 22 October.

A phone conference will be held at 11 a.m. (CET) on 22 October.

Press releases, presentations, a fact book and a recording of the phone conference are available at www.handelsbanken.se/ireng

The highlights of the annual report for January–December 2012 will be published on 6 February 2013.

For further information, please contact: Pär Boman, President and Group Chief Executive Tel: +46 (0)8 22 92 20

Ulf Riese, CFO Tel: +46 (0)8 22 92 20

Mikael Hallåker, Head of Investor Relations Tel: +46 (0)8 701 29 95, [email protected]

45 Handelsbanken



45 Handelsbanken

Auditors’ report concerning review of interim report To the Board of Svenska Handelsbanken AB (publ), corporate identity number 502007-7862

INTRODUCTION We have reviewed the interim report for Svenska Handelsbanken AB (publ) as at 30 September 2012 and for the nine-month period ending as at this date. The Board and the Chief Executive are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act for Credit Institutions and Securities Companies. Our responsibility is to express a conclusion on this interim report based on our review.

FOCUS AND SCOPE OF THE REVIEW We have conducted our review in accordance with the Standard on review engagements SÖG 2410, Review of interim financial information performed by the auditors elected by the company. A review consists of making inquiries, primarily to persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review differs from and is substantially less in scope than an audit conducted in accordance with the International Standard on Auditing and generally accepted auditing practices in Sweden.

The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim report is not, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act for Credit Institutions and Securities Companies for the Group and in accordance with the Swedish Annual Accounts Act for Credit Institutions and Securities Companies for the parent company.

Stockholm, 22 October 2012

KPMG AB Ernst & Young AB Stefan Holmström, Authorised Public Accountant Erik Åström, Authorised Public Accountant

46 Handelsbanken



Svenska Handelsbanken AB (publ), Corporate identity no. 502007-7862 SE-106 70 Stockholm, Sweden, Telephone: +46 (0)8-701 10 00, www.handelsbanken.se

Share price performance and other informationThe Swedish stock market grew by 9 per cent during the first nine months of the year. The Stockholm stock exchange’s bank index rose by 31 per cent. Handelsbanken’s class A shares closed at SEK 246.10, a rise of 36 per cent, but including dividends paid, the total return was 41 per cent. Since 1 January 2000, Handelsbanken’s share price has increased by 130 per cent, excluding dividends, while the Stockholm Stock Exchange has fallen by 11 per cent.

SHARE PRICE PERFORMANCE, 31 DECEMBER 1999 – 30 SEPTEMBER 2012 INDEX, 1999-12-31=100

ANALYSTS WHO MONITOR THE BANK

0

25

50

75

100

125

150

175

200

225

250

dec-

99

jun-0

0

dec-

00

jun-0

1

dec-

01

jun-0

2

dec-

02

jun-0

3

dec-

03

jun-0

4

dec-

04

jun-0

5

dec-

05

jun-0

6

dec-

06

jun-0

7

dec-

07

jun-0

8

dec-

08

jun-0

9

dec-

09

jun-1

0

dec-

10

jun-1

1

dec-

11

jun-1

2

dec-

12

SHB A OMX Stockholm Banks PI OMX Stockholm 30 Index

Company Analyst Email addressABG SUNDAL COLLIER Magnus Andersson & Rickard Henze [email protected]

ARCTIC SECURITIES Fridtjof Berents [email protected]

AUTONOMOUS Jacob Kruse [email protected]

BERENBERG BANK Nick Anderson [email protected]

CARNEGIE Asbjørn Nicholas Mørk [email protected]

CHEUVREUX Mats Anderson [email protected]

CITIGROUP Henrik Christiansson [email protected]

CREDIT SUISSE Masih Yazdi [email protected]

DANSKE BANK Per Grönborg [email protected]

DEUTSCHE BANK Jan Wolter [email protected]

DNB NOR Hakon Reistad Fure [email protected]

EVLI BANK PLC Kimmo Rämä [email protected]

EXANE BNP PARIBAS Andreas Håkansson [email protected]

GOLDMAN SACHS Pawel Dziedzic [email protected]

J P MORGAN Nana Francois & Sofie Peterzens [email protected]

KEEFE, BRUYETTE & WOODS Ronny Rehn & Aldo Comi [email protected]

MACQUARIE SECURITIES Dave Johnston [email protected]

MEDIOBANCA Riccardo Rovere [email protected]

MERRILL LYNCH Johan Ekblom [email protected]

MORGAN STANLEY Henrik Schmidt [email protected]

NOMURA INTERNATIONAL PLC Chintan Joshi & Jon Peace [email protected]

NORDEA Pawel Wyszynski [email protected]

NYKREDIT MARKETS Mads Thinggaard [email protected]

PARETO Jon David Gjertsen [email protected]

ROYAL BANK OF CANADA Claire Kane & Fiona Swaffield [email protected]

SEB ENSKILDA EQUITIES Bengt Claesson [email protected]

SOCIETE GENERALE Geoff Dawes [email protected]

UBS Nick Davey [email protected]

47 Handelsbanken


2012 interim report · 2019-11-18 · interim report january – september 2012 3 handelsbanken...

Documents