The quarter in brief (compared with Q2, excluding items affecting comparability)

  · Costs are well under control. Expenses fell by 3%.
  · Business is still showing strong performance. Income increased by 5%.
  · Profitability has improved. Underlying operating profit grew by 14%. RoE was
11.6%.
  · Own funds have been further strengthened. The common equity tier 1 ratio was
19.4%.

Q3 2020
- compared with Q2 2020

  · Operating profit, adjusted for foreign exchange movements and items
affecting comparability, increased by 14%. Profit was impacted by a provision
for a restructuring reserve of SEK -1,470m. Including this item, operating
profit decreased by 16% to SEK 4,227m (5,054).
  · Return on equity, adjusted for non-recurring items, was 11.6%. Including
these items, the return on equity was 8.4% (10.2).
  · Earnings per share amounted to SEK 1.68 (2.00).
  · Adjusted for foreign exchange effects, income grew by 5%. Including these
effects, income increased by 4% to SEK 11,014m (10,625).
  · Adjusted for items affecting comparability and foreign exchange effects,
expenses fell by 3%. Including these effects, expenses rose by 23% to SEK
-6,738 (-5,474).
  · The C/I ratio, adjusted for non-recurring items, decreased to 47.7% (51.5).
Including these items, the C/I ratio increased to 61.2% (51.5).
  · The credit loss ratio was 0.00% (0.00). Expected credit losses in Stage 3
totalled SEK -28m (-11).

January - September 2020
- compared with January - September 2019

  · Adjusted for foreign exchange movements and items affecting comparability,
operating profit was virtually unchanged. Including these effects, profit
decreased by 10% to SEK 14,423m (16,101).
  · Return on equity, adjusted for non-recurring items, was 10.6% (12.6);
including these items, it was 9.7% (11.9).
  · Earnings per share decreased to SEK 5.66 (6.43).
  · The common equity tier 1 ratio increased to 19.4% (17.4). The previously
proposed dividend for 2019 is still deducted in own funds.
  · The credit loss ratio was 0.03% (0.05).
  · Income, adjusted for foreign exchange, was essentially unchanged. Including
foreign exchange, income decreased by 1% to SEK 32,817m (33,188).
  · The underlying cost increase, adjusted for foreign exchange movements and
items affecting comparability, was 1.7%. Including these effects, expenses
increased by 9% to SEK -17,718m (-16,189).
  · Adjusted for non-recurring items, the C/I ratio was 49.3% (48.5). Including
these items, the C/I ratio was 54.0% (48.8).
  · In all its home markets, Handelsbanken has more satisfied customers - both
private and corporate - than the average, according to SKI/EPSI 2020.

[image] In Q3 2020, a provision for a restructuring reserve of SEK -1,470m and
an impairment loss on IT systems of SEK -38m were booked. During the first half
of 2019, the preliminary provision for the Oktogonen profit-sharing scheme made
in 2018, amounting to SEK 829m, was reversed. In the second and third quarters
of 2019, restructuring reserves of SEK -30m and -900m respectively were
recognised. In Q2 2019, the Bank received a dividend of SEK 55m from VISA
Sweden.

The slide presentation for today's press conference will be available at 7:00
a.m. CET at handelsbanken.com/ir

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

Carl Cederschiöld, CFO
Tel: +46 (0)8 22 92 20

Lars Höglund, Head of Investor Relations
Tel: +46 (0)8 701 51 70, laho01@handelsbanken.se

This information is of the type that Handelsbanken is obliged to make public
pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets
Act. The information was submitted for publication through the agency of the
contact person set out above, at 7:00 a.m. CET on 21 October 2020.

For more information about Handelsbanken, please go to: handelsbanken.com

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