Annual report
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2025Annual Report
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Handels banken was founded in 1871 and its share has been traded on the Stockholm stock exchange ever since, the longest of all shares currently listed on the exchange. Today, a little over 150 years later, we are one of the world’s strongest banks. Our idea of how to run our Bank is based on trust and respect for individuals, both customers and employees. Through personal relationships, a long-term approach and a strong local presence, we create value in every customer meeting. We aim to provide the best offering within financing, savings, payment and advisory services. With satisfied customers, we see potential for continued strong business develop- ment and profitable growth at a low risk. Our home markets are Sweden, Norway, the UK and the Netherlands, with business also conducted in Luxembourg and the USA. Since 1871 Introduction
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Brief information 2026 Annual General Meeting Handels bank en’s Annual General Meeting (AGM) for 2026 will be held on Wednesday, 25 March 2026. Shareholders wishing to attend the AGM must be entered in the register of shareholders kept by Euroclear Sweden AB on 17 March 2026. In addition, shareholders must either have registered to attend the meeting or cast their vote in advance (postal vote) no later than 19 March 2026. Nominee-registered shares must also be registered in the shareholder’s own name by no later than 19 March 2026 in order for the shareholder to be entitled to vote at the meeting. For more information, please visit h andelsbanken.com/agm. Dividend The Board proposes a total dividend of SEK 17.50 per share, of which an ordinary dividend of SEK 8.00 per share. The proposed record day for the dividend is 27 March 2026, which means that the share will be traded ex-dividend from 26 March 2026. Assuming that the meeting resolves to accept the proposal, the dividend is expected to be disbursed by Euroclear on 1 April 2026. Financial calendar 2026 4 February H andels bank en’s Highlights of the Annual Report 2025 25 March Annual Gener al Meeting 22 April I nterim report January–March 2026 15 July I nterim report January–June 2026 21 October I nterim report January–September 2026 Financial information The following reports can be downloaded from handelsbanken.com: • Annual Reports • Interim Reports • Risk and Capital Management Reports • Climate Reports • Corporate Governance Reports • Remuneration reports • Factbooks • Sustainability and Stewardship Reports. Distribution The Annual Report can be ordered from Investor Relations, phone +46 (0)8 701 10 00 or at handelsbanken.com/ir. Svenska Handels bank en AB (publ) Corporate identity no.: 502007 -7862 Domicile: Stockholm handels banken.com This report is also available in Swedish. Every care has been taken in this translation into English. In the event of discrepancies, the Swedish original takes precedence over the English version.
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The Board proposes a total dividend of SEK 17 .50 (15.00) per share, of which an ordinary dividend of SEK 8.00 (7 .50) per share. No other privately-owned bank in the world than Handels ba nken has a higher combined credit rating from Fitch, Moody’s and Standard & Poor’s. According to the Swedish Quality Index (SKI), Handels ba nken has the most satisfied customers among peer competitors. The Bank was also named Business Bank of the Year and Sweden’s Small Enterprise Bank by the independent Finansbarometern su rvey in 2025. Handels ba nken has been ranked as the safest commercial bank in Europe in Global Finance’s ranking of 500 banks. SEK 30,750m Operating profit decreased by 12% to SEK 30,750 million (35,016). Adjusted for items affecting comparability, the decrease was also 12%. SEK 11.98 Earnings per share amounted to SEK 11.98 (13.86). 13.0% Return on equity was 13.0% (14.6). 41.5% The C/I ratio was 41.5% (40.4). -0.01% The credit loss ratio was -0.01% (-0.02). 1 7.6% The common equity tier 1 ratio was 17.6% (18.8). The year in brief
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Banking our way With our trust in the individual and decentralised way of working, we create long-term customer relationships that last through all stages of life and business. We offer our customers: One of the world’s safest banks Financial strength and consistent stability make Handels banken a bank to rely on, regardless of the business cycle. Independent company Global Finance ranks Handels banken as the safest commercial bank in Europe and the fifth safest in the world. Handels banken is the only major Swedish bank that has not sought financial support from taxpayers in times of financial crisis. No other privately-owned bank in the world has a higher overall credit rating than Handels banken. The strength of the Bank’s local connection Handels banken is a decentralised bank, structured to make decisions locally, close to the customer. Our 407 branches and other meeting places can be found where customers live and work. We share their everyday lives and work in the same markets. This makes us more engaged, creates less hassle and allows us to make faster, better decisions. The branch manager leads the opera - tions based on local conditions and the branches have broad mandates to act and specialist skills at their disposal, which gives customers access to the full range of the Bank’s business support expertise. The combination of personal advice, local decision-making and outstanding digital services provides a superior overall offering for the customer – and a competitive edge for the Bank. Community engagement for knowledge and sustainability We pursue a long-held tradition of commitment to the communities that we are part of. We have decided to focus on creating and sharing knowledge about what we do best – finances. This is how we help give our customers a good foundation for making well-informed decisions, and contribute to strong and stable communities. Sustainability is an integral part of our long-term approach to banking – always centred on the customer’s best. Value in each customer meeting For us, long-term relationships start with meetings between people. The customer meeting is the very core of Handels banken, regardless of whether the customer chooses to contact us digitally, by phone or by visiting their local branch, whether it be for day-to-day assistance or advice when making important financial decisions. In every meeting, we listen, learn and ensure that our offering serves our customers’ needs. This leads to better decisions, more satisfied customers and lower risk. Our best advice We always provide the best advice based on what is best for the individual customer in the long term, regardless of what is most profitable for the Bank in the short term. There are no volume requirements, budgets or centrally determined sales targets. Instead, Handels banken measures its success on the basis of customer satisfaction, cost efficiency and profitability. We do not have any volume targets or bonuses, but rather aim to grow together with satisfied and profitable customers. This gives our business a unique, long-term perspective.
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1.0 Introduction 8 1.1 Chief Executive Officer’s Comments 8 2.0 Administration report 11 2.1 Our bank 12 Concept and goal 12 Banking our way 13 Goals and goal achievement 16 2.2 Review of operations 18 Financial overview 2025 18 Review of operations 19 Five-year overview for the Group 22 Key metrics per year 24 Quarterly performance 25 Segment reporting 26 Sweden 28 UK 30 Norway 32 The Netherlands 34 Markets 36 Other units not reported in the business segments 37 The Handels banken share and shareholders 38 Proposed appropriation of profits 40 2.3 Corporate Governance Report 42 Board 52 Executive Team 55 2.4 Sustainability statement 57 General information 58 Environmental information 80 Social information 94 Governance information 106 EU Taxonomy – continued 114 2.5 Auditor’s limited assurance report of Svenska Handelsbanken AB (publ)’s statutory sustainability statement 140 6 HandelsbankenAnnual Report 2025 1.0
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3.0 Financial statements 143 3.1 Group 144 Income statement 144 Statement of comprehensive income 145 Balance sheet 146 Statement of changes in equity 147 Statement of cash flows 148 Notes for the Group 150 3.2 Parent company 274 Income statement 274 Statement of comprehensive income 275 Balance sheet 276 Statement of changes in equity 277 Statement of cash flows 278 Five-year overview 280 Notes for the parent company 282 3.3 Signatures of the Board and CEO 333 3.4 Auditor’s report 334 4.0 Other 339 Definitions and explanations 340 Branches and branch managers 344 7Handelsbanken Annual Report 2025
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1.1 Ch ief Executive Officer’s Comments1.0 Introduction We create growth with satisfied customers – customer by customer, business by business Stockholm, February 2026 Michael Green, Chief Executive Officer and President Handels bank en is continuing to perform well. Customers are satisfied, costs are falling and credit quality remains very high. This is just as it should be at Handels bank en. In recent years, we have decisively streamlined our operations and restored the cost culture that has historically been the hallmark of the Bank. This work has been successful – as it usually is when we decide to do something. Often a little faster and a little better than we expected. Such was the case this time too. What we have achieved so far has created a solid basis for an even stronger customer offering and more profitable business for the years ahead. It also meant that we could gradually increase our level of activity in 2025 to grow profitably together with our customers. Falling interest rates negatively impacted our net interest income and thus our income. Our customers, both private individuals and companies, are financially sound and stable, just as the Bank is – an advantage that is helping us mitigate the adverse effects of the global backdrop. Cus - tomer demand for expert advice increased during the year, which led to a growing savings business and rising fee and commission income. More work needs to be done to further accelerate our level of activ - ity. But we are on the right path. More business, the Handels ba nken way I am sometimes asked how the Bank will grow in the long term. I am always delighted to be asked this because the answer lies in the core of our concept: together with our customers. We grow when we deepen our relationships and do more profitable business with the people we already have a relationship with – and when our satisfied customers recommend us to other new customers. Satisfied customer by satisfied customer, business by business, This year, we were once again named Business Bank of the Year and Sweden’s Small Enterprise Bank by the independent Finansbarometern survey, and according to the SKI, Handels bank en continues to have the most satisfied customers among peer banks in all of our home markets. We conduct banking operations in our own way and forge our own path, with a strong local presence in our home markets, an unwavering belief in the individual, decentralisation and personal decision-making close to our customers. Not because being different is inherently valu - able. But because our core values have proved to be an unparalleled success as the basis for operating a profitable bank in the long term with low risks, satisfied customers, and skilled employees and managers. We follow our customers’ lead and adapt our operations according to their needs. Naturally, this requires planning, such as investments in IT, expertise and product development. But no one knows what the future holds. It is clear that no one can predict how the world will change. What we do know is that we respond best to change by starting from our proven business model when we develop our bank. Our model provides us with unique expertise in understanding and meeting the changing needs of our customers. That is why an important task for me as Chief Executive Officer was to continue to strengthen what already sets Handels bank en apart. For us, unshakeable trust and respect for the individual are not empty words. Instead, they guide our approach, every day. In our meetings with customers, centred on concern, clarity and a long-term approach. In how we organise our work, with the trust between us and mutual expectations fostering commitment and job satisfaction. In our deci - sions, which are better and faster because they are made close to those who are affected by them. Our decentralised approach – simple and straightforward – frees us up to meet with more customers and leads to more business, since our business model is based on personalised value-adding advice and long-term relationships. Centred on customer meetings A personal meeting is always at the centre of our efforts to deepen our relationships. Wherever our customers choose to meet us – at our branches, at the customer’s premises, via a virtual meeting, on the phone or through our digital services – they always meet the same bank, with the same customer promise. This will never become a thing of the past. On the contrary, this is exactly what gives us a competitive edge in an increasingly digitalised world – one in which business con - cepts can easily be copied. Meeting with customers is the most rewarding part of our work, but also the most demanding. It is in when we meet our customers that our products, services and advice are put to the test. When we meet with customers, we must give our very best. People and businesses have different needs as they pass through different stages of life – their first home, starting a family, savings, start - ing a business, generation change, retirement. Companies need financ - ing, grow, enter new markets and manage risks. The people who run or work in a company are also often customers of the Bank. The choices people make in life and their circumstances often differ. This requires individually tailored advice and customised offerings. Never- theless, as people, we all have a great deal in common. We get an educa- tion, leave home and take our first steps into the adult world and working life. Two small first homes might perhaps turn into a larger home together if we meet someone to share life with. Often a family is started later on. In the meantime, people’s income and cash flow have likely increased and their mortgage has been supplemented with savings that need to be managed, for their own security and perhaps that of their children. As we go through life, it may be necessary to start of process of estate planning. A company that once needed its initial funding has since evolved and needs advice in order to expand, and the business owner may need advice on how to invest their dividends. Most people with good finances have achieved this through hard work, paying off loans and being patient. No one is better placed than us to establish and develop long-lasting profitable relationships – and thereby win all of the business that arises on the journey through life. Our relationships are not based on products. Customers are not simply mortgage customers or private banking Meeting in person will never become a thing of the past. On the contrary, this is what gives us a competitive edge in an increasingly digitalised world. 8 HandelsbankenAnnual Report 2025 1.1 Introduction Chief Executive Officer’s Comments Administration report Financial statements Other
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customers for us – they are good customers, unique individuals with their own needs and goals. We look at the big picture and are genuinely committed to the person, family or company behind the customer. We are a bank, nothing more, nothing less. But we should not under - estimate how vital our products and services are for allowing customers to live their lives in the way they want. Leveraging our financial strength, we are well-prepared to support them, no matter what is happening in the world – always as part of the solution and never needing financial support from the communities we operate in. There is good reason to be proud of this. We can be found wherever our customers are, we share their every - day lives and work in the same local markets. As part of a close-knit network, we know our customers’ circumstances better than anyone else. This allows us to see the potential in the young entrepreneur that others miss, to know that good cash flow is built up over decades, and to provide the individual advice to a particular customer at a particular time. And that is why we have been given the privilege of working for the best customers in each of our home markets, something that under - pins the Bank’s unique financial stability. So the answer to the question of how we grow is actually not new at all – it’s always the same: customer by customer, business by business, by meeting every customer and providing them with service that meets, and ideally exceeds, their high expectations. No advertising could ever be as effective as a satisfied customer who shares their experience with potential new customers. Organic growth will continue to be our main focus for the future. Given our stable finances, we never need to hesitate to make a good acquisition if the right conditions are in place. But our aim is not to be the biggest – we strive to always be a little bit better. A stable and secure partner regardless of the global landscape This approach has made Handels banken reliable and predictable. It is appreciated by customers, employees, financial markets and the exter - nal environment. The Bank has the highest combined global rating from the leading rating agencies of Fitch, Moody’s and S&P. Global Finance’s 2025 analysis of over 500 banks worldwide ranks Handels banken as the safest commercial bank in Europe and the fifth safest commercial bank in the world. High earnings, strong credit quality and financial strength with low volatility in the Bank’s balance sheet provide a solid basis for continued profitable growth together with our customers and also for having a strong capacity to pay dividends to our shareholders. Therefore, the Board proposes a total dividend of SEK 17.50 per share, of which an ordinary dividend of SEK 8.00 per share. More and more people I meet also tell me they appreciate the fact that we run the Bank in our own way – with confidence. This is also the sentiment among our employees, as reflected in the positive trend in our 2025 work environment survey. A decentralised way of working not only enables better and faster decision-making, but also provides opportunities to make a difference. It improves job satisfaction, and creates better conditions for the Bank to achieve our corporate goal. Put simply, giving people freedom in performing their work duties and taking necessary initiatives results in more and better business, lower costs and more satisfied customers. A long-term, curious mind-set This is how we keep pushing forward – we treat our customers with the utmost respect and are here for them, we have a healthy scepticism towards accepted truths and we do not settle. We are curious about what is hiding on the other side. We endeavour to look beyond trends and are not afraid to forge our own path when we believe it is best for the Bank and our customers. This mind-set has often made us a pio - neer, such as when we integrated our sustainability work even more closely with the core of our customer offering during the year. It is not really that complicated. We respond to developments in soci - ety and the changing needs of our customers and are constantly evolv - ing – sometimes at a steady pace, sometimes a little faster. We simply do more of what is working and stop doing whatever is not. Technological advances, particularly in AI, accelerated during the year. We transform new technological possibilities into tangible customer benefits by making full use of this technology in the Bank’s internal work and business support processes – but it never replaces the per - sonal interaction and genuine care that our customers expect. Finally, I would like to extend my sincere thanks to our customers for the confidence you have shown in us by allowing us to be your bank, to all our employees for your tremendous work during the year, and to all you shareholders who have chosen to own shares in Handels - banken. I am delighted to report that those of you who owned shares in Handels banken for all of 2025 have received a total return of 31 per cent. We will nurture the trust you have given us by striving every day to do our job a little better than the day before. We will never be finished in this endeavour. Our work will continue. Always in our own way – per - sonal, following a long-term approach and focusing on the customer. Quite simply, a little more Handels banken. 9Handelsbanken Annual Report 2025 1.1
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2.0 Administration report Administration report 2.0 11Handelsbanken 2025 Annual Report
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2.1 Our bank Concept and goal Concept Handels banken creates value through unique customer meetings. Through trust in the individual, a strong local commitment and a decentralised way of working, we create long-term customer relationships. By running the Bank in a responsible and sustainable manner, with stable finances, Handels banken earns the confidence of customers, shareholders, investors and the wider world around us. More satisfied customers, income growing at a faster rate than expenses, and low risk tolerance create sustainable profitability and the capacity to grow our business and customer offerings, regardless of the situation in the world and economy around us. Goal Handels banken’s goal is to have higher profitability than the average of peer competitors in its home markets. This goal is mainly to be achieved by having more satisfied customers and lower costs than its competitors. 12 HandelsbankenAnnual Report 2025 2.1 Introduction Administration report Our bank Financial statements Other
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Banking our way Banking our way For over 150 years, Handels banken has managed its customers’ trust so successfully that we are now the safest bank in Europe. Our business rests on firm trust in the individual – both cus- tomers and employees – a strong local presence, a decentralised way of working, stable finances, low risk and customer satis fac- tion with their bank. Interacting with customers gives us an opportunity to build lifelong trusting relationships with them. The customer meeting lays the foundation for continuously evolving the Bank to satisfy customer needs. We endeavour to change and improve in order to be the best possible Bank for our customers at all times. A decentralised bank Handels banken is not like other banks. We have chosen to operate the Bank in our own way, with great trust in the willingness and ability of the individual to assume responsibility and make decisions, always as close to the cus - tomer as possible. This decentralised way of working and our trust and respect for the indi - vidual are evident throughout Handels banken. Our branches can be found wherever our customers are, and our employees share their everyday lives and work in the same markets. This makes us more engaged, creates less hassle and allows us to make faster, better decisions. Short decision-making channels make us agile and enable us to quickly take advan - tage of new business opportunities. The com - bination of personal advice, local decision - making and outstanding digital services provides customers with a superior overall offering, while the Bank gains a crucial edge over its competitors. Our decentralised way of working is not an organisational chart – it is a corporate culture. This unparalleled approach – based on higher customer satisfaction and lower costs – makes it possible to generate profitability and unique financial stability over time that benefits customers, owners and society as a whole. 13Handelsbanken Annual Report 2025 2 .1
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Centred on customer meetings A meeting in person will never become a thing of the past. On the contrary. This is exactly our competitive edge in an increasingly digitalised world – one in which business concepts can easily be copied. Handels banken is built so that decisions can be made as close to the customer as possible. The purpose of this is to serve each customer based on their unique needs and circumstances. That is why the customer meeting is central. We offer personal meetings with a high level of service regard - less of whether the customer chooses to inter - act with us digitally, by phone or by visiting a branch. The branch that is geographically clos - est to the customer always has the overall customer responsibility. The branch manager leads the operations based on local conditions. The local branches have broad mandates to act and specialist skills at their disposal, which provides access to the full range of the Bank’s business support expertise. A customer focus and high efficiency are the prerequisites for meeting customer expecta - tions and ultimately deepening business rela - tionships. This is simply a matter of common sense – low costs make it easier to make out - standing offerings to customers, and attrac - tive offerings and a high level of service are in turn essential for ensuring that customers are satisfied with their bank. And satisfied custom - ers are a requirement for high profitability in the long term. This is how Handels banken grows – satisfied customer by satisfied cus - tomer, business by business. One of the world’s safest banks Our stable finances serve as the basis for cre - ating lasting value for customers and owners. According to the independent company Global Finance, Handels banken is the fifth safest commercial bank in the world and the safest bank in Europe. No other privately-owned bank in the world than Handels banken has a higher combined credit rating from Fitch, Moody’s and Standard & Poor’s. This is no mere coinci - dence but the result of our corporate culture. We know our customers, often personally. This means that we trust each other and assume joint responsibility. We deliberately avoid high- risk transactions, even if they would be most profitable at that moment. Employees who meet customers at our branches are not eligi - ble to receive variable remuneration – no bonuses or commissions – and thus have no personal financial incentive to offer customers a certain service or product. Instead, custom - ers always receive the best long-term advice, regardless of what is most profitable in the short term. Handels banken has no volume requirements, budgets or centrally determined sales targets. Instead, we measure our success on the basis of customer satisfaction, cost efficiency and profitability. Stable finances are a prerequisite for doing the business the Bank and our customers want to do, no matter what the global situation may be. Financial stability not only provides the freedom to do more business, but also ensures lower funding costs and a basis for higher profitability. Handels banken manages its finances entirely on commercial terms, and has never needed financial support from govern - ments or central banks in times of financial turmoil. Our approach to risk has been tried and tested over the years – through booms and busts, both in good times and in bad. It has consistently proven to be a success because it is simple. Our strict approach to risk remains firm even though products and services are constantly being evolved to enhance their competitiveness. This is how we combine con - cern and care for our customers with generat - ing long-term stable profitability and high returns for our shareholders. Contributing to society We are a bank, nothing more, nothing less. We are not trying to do anything other than manage our customers’ capital as responsible as possible and, thanks to our financial stabil - ity, to be there to support our customers. This is how we do our bit for the long-term positive 14 HandelsbankenAnnual Report 2025 2.1 Introduction Administration report Our bank Financial statements Other
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and sustainable development of society. Our local connection in particular helps us to main - tain and develop our network of personal, trusting relationships that make communities robust and businesses innovative. A good understanding of finances results in more sat - isfied customers who make more informed decisions, and thus pose a lower credit risk. Accordingly, we have decided to concen - trate on sharing knowledge about what we do best – finances. Handels banken contributes to economic research through independent research foundations, which are currently the leading private funding bodies for economic research in Sweden. Grants awarded in 2025 amounted to SEK 314 million. The independent media house EFN shares new knowledge, insights and analyses with a broad audience. Yet in parallel, Handels banken remains a decentralised organisation whose branches can choose the best channels for community engagement at the local level. Handels banken is a large employer and tax - payer, especially in Sweden. Profit for the year included taxes and regulatory fees amounting to approximately SEK 14.3 billion, of which SEK 9.5 billion related to Sweden. This makes Handels banken one of the country’s largest taxpayers and generates income for the public sector that elected decision-makers then dis - tribute for the common good. Sustainability our way Handels banken contributes to society by always acting in the best interests of our cus - tomers and being a stable bank. We also take the same approach to sustainability, fully inte - grated into our daily operations. We support our customers by providing financial products, services and advice that meet their needs to be able to make sustain - able choices, comply with applicable regula - tions and prepare for future legislation. In doing so, we help to strengthen our customers’ ability to manage climate risks and capitalise on business opportunities. The customer meeting is also key to our sustainability activities. We are continuously developing our offering in close dialogue with our customers. As always at Handels banken, the range is curated based on customer demand and needs. As a lender, the Bank serves as a key player in financing a sustain - able transition, particularly in the real estate sector. A cornerstone is the processing of credit applications through a customer- oriented, highly decentralised approach. Handels banken has over 150 years of expe - rience in managing changes in the nature of credit risk, such as changes in technology, and has long integrated climate risks into credit assessments and its overall risk management. The Bank’s exposure to sectors with high sustainability risks, such as fossil energy, has decreased over time and now represents a very small share of the Bank’s lending. In addition, Handels banken also has high ambitions for its sustainability activi - ties, and strives continuously to reduce its own direct climate impact and support the Global Compact. 15Handelsbanken Annual Report 2025 2 .1
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Goals and goal achievement Goals and goal achievement Corporate goal Return on equity 1973–20251 % Handels banken’s goal is to have higher profit - ability than the average of peer banks in its home markets. Goal achievement According to the Bank’s assessment, Handels - banken achieved its corporate goal of having higher profitability than the weighted average of peer banks in its home markets as at 30 September 2025². A preliminary provision was made for the Oktogonen profitsharing scheme for the earnings year 2025, which amounted to SEK -142 million (-96). 1) Only Swedish banks are included for the period 1973–2002 and only Nordic banks for the period 2003–2012. 2) Not all banks in the comparison group had published their annual reports for 2025 as of the date of approval of this Annual Report. Most satisfied customers To achieve the corporate goal, the Bank must, for example, have more satisfied customers than its peer competitors. The quality of products and services must therefore meet customer expectations, at a minimum, and preferably exceed them. Outcome Handels banken retained its stable and strong position in terms of customer satisfaction by having more satisfied private and corporate customers than the average for the banking sector in all of its home markets. Satisfied customers and stable relationships are proof that the Bank’s way of working is effective. Cost efficiency The corporate goal will also be achieved through higher cost efficiency than peer banks. Outcome Handels banken’s expenses relative to income were 41.5% (40.4). The equivalent key ratio for an average of peer banks is estimated² to approximately 50.2% (51.2). Costs/income, 2021–2025 % 0 20 40 60 80 100 The NetherlandsNorwayUKSweden 0 20 40 60 80 100 The NetherlandsNorwayUKSweden Handels banken Sector average Source: SKI/EPSI 2025 Handels banken Sector average Source: SKI/EPSI 2025 Handels banken Weighted average peer banks in the home markets² Handels banken Average peer banks in the home markets -10 -5 0 5 10 15 20 25 252321191715131109070503019997959391898785838179777573 9391 0 10 20 30 40 50 60 20252024202320222021 Customer satisfaction, private customers 2025 Index Customer satisfaction, corporate customers 2025 Index 16 HandelsbankenAnnual Report 2025 2.1 Introduction Administration report Our bank Financial statements Other
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Rating Handels banken is to have a high rating with the external rating agencies. Outcome No other privately-owned bank in the world has a higher combined credit rating from Fitch, Moody’s och Standard & Poor’s than Handels - banken. All of the Bank’s credit ratings were confirmed as unchanged in 2025 and with stable outlooks. Capital The Bank’s capital goal is that its Common Equity Tier 1 ratio should, under normal circumstances, exceed the common equity tier 1 capital requirement communicated to the Bank by the Swedish Financial Supervisory Authority by 1–3 percentage points. Additionally, the Bank must fulfil any other capital requirements set by the regulators. Outcome At the end of the year, the Common Equity Tier 1 ratio was 17.6% (18.8). In the Bank’s assessment, the overall Common Equity Tier 1 capital requirement according to the Swedish Financial Supervisory Authority was 14.7% at the end of the year. Credit quality Handelsbanken has a low risk tolerance. This means that the quality of credits must never be neglected in favour of achieving higher volume or a higher margin. Outcome Credit losses consisted of net reversals and amounted to SEK 313 million (601). Credit losses as a proportion of lending were -0.01% (-0.02). For the past ten years – that is, since 2016 – the Bank’s average credit loss ratio has been 0.03%. This can be compared with the average for the other major Nordic banks during the same period: 0.09%. Common equity tier 1 ratio, 2021–2025 % Nordic bank ratings Handels banken Other Nordic banks 0 5 10 15 20 20252024202320222021 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 2025202420232022202120202019201820172016201520142013201220112010200920082007 Credit losses as % of loans 2007–2025 % Standard & Poor’s Fitch Moody’s 31 December 2025 Long term Short term Long term Short term Long term Short term Handels banken AA- A-1+ AA+ F1+ Aa2 P-1 DNB AA- A-1+ Aa2 P-1 Nordea AA- A-1+ AA F1+ Aa2 P-1 SEB AA- A-1+ AA F1+ Aa3 P-1 Swedbank AA- A-1+ AA F1+ Aa2 P-1 Danske Bank A+ A-1 AA- F1+ A1 P-1 Source: Bloomberg, respective bank’s website 17Handelsbanken Annual Report 2025 2 .1
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2.2 Review of operations Financial overview 2025 Financial overview 2025 13.0% Return on equity was 13.0% (14.6). SEK 11.98 Earnings per share amounted to SEK 11.98 (13.86). 41.5% The C/I ratio was 41.5% (40.4). -0.01% The credit loss ratio (net reversals) was -0.01% (-0.02). 1 7.6% The common equity tier 1 ratio was 17.6% (18.8). SEK 17 .50 The Board of Directors proposes a total dividend of SEK 17.50 (15.00) per share, comprised of an ordinary dividend of SEK 8.00 (7.50) per share. Increasing customer activity and good growth in the savings business Net interest income was negatively affected during the year by lower net interest margins due to lower market rates. At the same time, the savings business continued to exhibit good growth with assets under management reaching the highest level so far. Lending in the UK and the Netherlands, where the Bank’s market shares are relatively small and the long-term potential for growth is large, continued to show improving growth within both household and corporate lending. Lower expenses and strong credit quality Improved efficiency, particularly within central and business support units, has over the past two years contributed to a general increase in cost awareness across the Bank. Expenses for the full year fell by 7% compared with the preceding year. Credit quality remained strong with net credit loss reversals for the eighth consecutive quarter. A position of financial strength The Bank distinguishes itself as one of the world’s most stable banks, which is reflected in the fact that no other privately owned bank in the world has a higher overall credit rating from the leading rating agencies. This is achieved through a locally connected, long-term, and customer - centric business model with low risk tolerance and a strong financial position. The common equity tier 1 ratio, after deduction of the proposed dividends, amounted to 2.85 percentage points over the regulatory requirement by the Swedish Financial Supervisory Authority and was thus within the Bank’s long-term target range of 1-3 percentage points above the regulatory requirement. The Bank’s financial strength creates trust and confidence, as well as prerequisite for continued stable and profitable growth. 18 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Review of operations Review of operations Operating profit decreased by 12% to SEK 30,750m (35,016). Income decreased by 9% to SEK 56,796m (62,345). Expenses decreased by 7% to SEK -23,567m (-25,209). The C/I ratio was 41.5% (40.4). The credit loss ratio was -0.01% (-0.02). Profit for the period amounted to SEK 23,729m (27,456). Earnings per share amounted to SEK 11.98 (13.86). Return on equity was 13.0% (14.6). After deductions for the proposed dividend, the common equity tier 1 ratio was 17.6% (18.8). Income SEK m Full year 2025 Full year 2024 Change Net interest income 42,542 46,841 -9% Net fee and commission income 11,863 11,726 1% Nettoresultat av finansiella transaktioner 1,692 3,103 -45% Other income 699 674 4% Total income 56,796 62,345 -9% Net interest income went down by 9%, or SEK 4,299m, to SEK 42,542m (46,841). Adjusted for foreign exchange effects of SEK -823m, the decrease was 7%. Higher business volumes had an impact of SEK 473m. The net amount of margins and funding costs had an impact of SEK -4,059m on net interest income, mainly deriving from lower market rates. The fee for the deposit guarantee scheme went up by SEK 67m to SEK -303m (-236). Other effects amounted to SEK 177m. Net fee and commission income increased by 1% to SEK 11,863m (11,726). Fund manage - ment, custody and other asset management commissions increased to SEK 7,187m (7,151). Insurance commissions increased to SEK 813m (776). Brokerage income increased by 15% to SEK 517m (449). Net payment commis - sions fell to SEK 1,778m (1,802), with net card commissions climbing to SEK 1,009m (995). Lending and deposit commissions fell by 13% to SEK 889m (1,017). Advisory commissions were SEK 180m (208). Other net fee and com - mission income increased to SEK 498m (324). Net gains/losses on financial transactions decreased to SEK 1,692m (3,103). The cus - tomer-driven business in Handelsbanken Markets and the home markets was SEK 1,874m (2,163). Net gains/losses on financial transac - tions linked to the Bank’s funding and liquidity management totalled SEK -90m (870). The decrease was primarily due to a higher cost for hedging interest rate risk in the liquidity port - folio, arising because of changes to market rates. Other effects amounted to SEK -93m (-70), with capital losses of SEK -121m during the year relating to the divestment of the sub - sidiary Ecster’s credit card portfolios in Finland, and the capitalisation of the translation reserve in the subsidiary Rahoitus having an impact of SEK 178m during the comparison year. Other income amounted to SEK 699m (674). The change was mainly due to the refund of VAT attributable to previous years in Sweden and Denmark. Expenses SEK m Full year 2025 Full year 2024 Change Staff costs -14,777 -15,731 -6% Other expenses -6,770 -7,474 -9% Depreciation, amortisation and impairment of property -2,020 -2,004 1% Total expenses -23,567 -25,209 -7% Staff costs fell by 6%, or SEK -954m, to SEK -14,777m (-15,731). The provision for Oktogonen was SEK -155m (-255), of which SEK -13m (-159) referred to profit for the previous year. Restructuring charges totalled SEK -81m (-472). Foreign exchange effects totalled SEK 272m. Adjusted for the items affecting comparability, staff costs decreased by 1%. The average number of employees fell by 4% during the period, to 11,715 (12,224). The number of employees at the end of the period was 11,600 (11,976). Other expenses fell by 9% to SEK -6,770m (-7,474), mainly due to a drop in the utilisation of external resources. Depreciation, amortisation and impairment of property, equipment and intangible assets amounted to SEK -2,020m (-2,004). Credit losses SEK m Full year 2025 Full year 2024 Change Net credit losses 313 601 -288 Credit loss ratio, % -0.01 -0.02 Credit losses consisted of net reversals and amounted to SEK 313m (601). During the first half of 2025, the last remaining expert-based provisions of SEK 149m were reversed. The sale of Ecster’s credit card portfolios in Finland resulted in recoveries amounting to SEK 48m during the second quarter. The credit loss ratio was -0.01% (-0.02). Regulatory fees Regulatory fees totalled SEK -2,800m (-2,733), of which risk tax amounted to SEK -1,596m (-1,655), and the resolution fee amounted to SEK -1,050m (-1,031). The Bank of England Levy was SEK -56m (-47). The cost of interest- free deposits at the Riksbank amounted to SEK -98m. Taxes The effective tax rate in continuing operations was 22.0% (22.3). The difference between this rate and the corporate tax rate in Sweden of 20.6% derives primarily from the higher tax rate in the UK operations, as well as from the fact that interest expenses on subordinated liabilities are not deductible. The effective tax rate in total operations (including discontinued operations) was 22.1% (22.3). Discontinued operations Profit from discontinued operations, after tax, amounted to SEK -266m (234). 19Handelsbanken Annual Report 2025 2.2
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Non-recurring items and special items in operating profit SEK m Full year 2025 Full year 2024 Special items Oktogonen: adjustment of allocation previous year (staff costs) -13 -159 Oktogonen: provision current year (staff costs) -142 -96 Non-recurring items Restructuring charge (staff costs) -81 -472 Total -236 -727 Foreign exchange effects Foreign exchange effects vs. previous year SEK m Full year 2025 Net interest income -823 Net fee and commission income -76 Net gains/losses on financial transactions -17 Other income -5 Total income -921 Staff costs 272 Other expenses 135 Depreciation and amortisation 13 Total expenses 419 Net loan losses -10 Gains/losses on disposal of property, equipment and intangible assets 0 Regluatory fees 16 Operating profit -496 Business development The average volume of loans to the public in the home markets amounted to SEK 2,239bn (2,254). The average volume of deposits and bor - rowing from the public in the home markets grew by 1% and totalled SEK 1,262bn (1,253). Total assets under management in the Group increased by 8% over the past 12 months and at the end of the period amounted to SEK 1,284bn (1,192), of which SEK 1,210bn (1,107) was invested in the Bank’s mutual funds. The net flow in the Bank’s mutual funds in the home markets was SEK 74.3bn (40.1), of which SEK 73.0bn (35.9) was in the Swedish market. Rating Long- term Short- term Counter- party risk rating Standard & Poor’s AA- A-1+ AA- Fitch AA+ F1+ AA+ Moody’s Aa2 P-1- Aa1 The Bank’s credit ratings from the leading rat - ing agencies were unchanged during the quar - ter, meaning that no other privately owned bank in the world has a higher overall rating from the three leading rating agencies. For all of the Bank’s ratings, the outlook is considered stable. Funding and liquidity For decades, the Bank has adopted a prudent approach to funding, with a low risk profile. The funding strategy is based on a diversified, balanced utilisation of several stable funding sources, comprising deposits from households and SMEs, deposits from non-financial com - panies and market funding diversified across different types of debt instruments in various currencies. Long-term assets are funded with stable long-term liabilities in the form of stable market funding and long-term stable deposits and bor - rowing from the public. Short-term liabilities, in the form of other deposits and borrowing from the public and short-term market funding, are matched by short-term assets and a liquidity reserve amounting to SEK 675bn at the end of the quarter (777 at year-end 2024). Of this reserve, 91% is deposited with cen - tral banks and holdings of government bonds. The remainder is invested for the most part in holdings of liquid covered bonds. Interest rate risk and foreign exchange risk in the bond holdings are hedged using derivative instru - ments, and the entirety of the holdings is mea - sured at market value on an ongoing basis. The Bank’s low encumbrance ratio of its assets creates an unutilised issue amount of covered bonds, which serves in practice as an additional buffer from a liquidity perspective. The low encumbrance ratio also serves as a layer of protection for holders of the Bank’s senior bonds. The ratio of non-encumbered assets to unsecured market funding amounted to 266% at the end of the year (252% at year- end 2024). At the end of the year, the Group’s liquidity coverage ratio, (LCR), calculated according to CRR3, was 205% (207% at the end of 2024). The net stable funding ratio (NSFR) according to CRR3 was 119% on the same date (124% at the end of 2024). Bond issues during the year amounted to a total of SEK 150bn (161 during the correspond - ing period of the previous year), of which SEK 100bn (121) was in covered bonds and SEK 50bn (34) was in senior bonds, of which SEK 16bn (17) constituted eligible liabilities. No sub - ordinated loans were issued during the year (6). Bonds reaching maturity amounted to SEK 108bn (142) during the period. The Bank’s green bond framework was updated during the year. Of the total issued bond volume during the year, SEK 24bn constituted green bonds (29), covering the majority of debt classes. Capital After the proposed dividend, the common equity tier 1 ratio was 17.6% at the end of the year. The Bank’s assessment is that the com - mon equity tier 1 capital requirement, including Pillar 2 guidance, amounted to 14.7%, or SEK 115bn, on the same date. The capital requirement assessment is based on the Swedish Financial Supervisory Authority’s Supervisory Review and Evaluation Process (SREP) for the year, which is applica - ble as of the end of the third quarter. The com - mon equity tier 1 capital requirement in Pillar 2 is 1.5 percentage points (0.5 percentage points Pillar 2 guidance and 1.0 percentage points Pillar 2 requirement), corresponding to SEK 12bn. The countercyclical buffer require - ment was 2.0%. At the end of the year, the total capital ratio was 22.0%. The Bank’s estimation is that the total capital requirement, including Pillar 2 guidance, amounted to 18.8% (SEK 146bn) on the same date. The total capital requirement in Pillar 2, including Pillar 2 guidance, comprises 2.1 percentage points, corresponding to SEK 16bn. The Bank’s capital goal is that its common equity tier 1 ratio should, under normal circum - stances, exceed the common equity tier 1 cap - ital requirement, including Pillar 2 guidance, by 1-3 percentage points. The Bank’s capitalisa - tion was thus within the target range. 20 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Capital for consolidated situation Total own funds were SEK 171bn (193), and the total capital ratio amounted to 22.0% (23.4). The common equity tier 1 capital was SEK 137bn (155), while the common equity tier 1 ratio was 17.6% (18.8). SEK m 31 Dec 2025 31 Dec 2024 Change Common equity tier 1 ratio 17.6% 18.8% -1.2 Total capital ratio 22.0% 23.4% -1.4 Total risk-weighted exposure amount 779,729 825,457 -6% Common equity tier 1 (CET1) capital 137,084 155,345 -12% Total capital 171,268 193,191 -11% Total equity 199,355 210,027 -5% Profit for the period increased the common equity tier 1 ratio by 2.7 percentage points. The paid and proposed dividends had an impact of -4.2 percentage points. Foreign exchange effects had a net impact of -0.2 percentage points. Volume changes had a 0.1 percentage points impact. Volume migrations, credit risk migrations and model updates had an impact of 0.6 percentage points, which was partially offset by risk weight floors that had an impact of -0.4 percentage points. The sale of the operations in Finland had a neutral effect. The introduction CRR3/CRD3 early during the cur - rent year, known as the “Banking Package”, had a 0.2 percentage points impact. In contrast to previous years, when the annual adjustment for operational risks was implemented during the first quarter of the year, the adjustment is now carried out one quarter earlier, i.e. in con - junction with the annual accounts for the respective year. The updating of the risk expo - sure amount for operational risk had a -0.1 per - centage points impact, which included updates for both 2025 and 2026, as explained above. Other effects had a 0.1 percentage points impact. Economic capital and available financial resources The Bank’s internal assessment of its need for capital is based on the Bank’s capital requirement, stress tests, and the Bank’s model for economic capital (EC). This is mea - sured in relation to the Bank’s available finan - cial resources (AFR). The Board stipulates that the AFR/EC ratio for the Group must exceed 120%. At the end of the quarter, Group EC totalled SEK 56bn (59 for the corresponding period during the previous year), while AFR was SEK 198bn (226). Thus, the ratio between AFR and EC was 357% (383). For the consoli - dated situation, EC totalled SEK 29bn (33), and AFR was SEK 187bn (216). A sustainable bank in the community Sustainability is an integral part of Handels - banken’s core business operations, involving products and advisory services founded on the pillars of a long-term approach and a decentralised way of working. The Bank focuses on long-lasting customer relationships and supporting customers’ transitions through savings and financing solutions that deliver value over time. Lending volumes linked to the Bank’s sus - tainability activities continued to grow. Com - pared with the corresponding period of the previous year, the volume of green loans increased by 28% to SEK 157bn (123); as part of this total, green mortgages grew by 27% to SEK 52bn (41). In addition, sustainability-linked loan facilities increased to SEK 147bn (144), of which SEK 68bn (66) comprises utilised volumes. The EU’s Sustainable Finance Disclosures Regulation (SFDR) means that asset managers must be transparent in how their mutual funds are classified under the SFDR. At the end of the period, 13 of the Group’s funds, representing 21% of assets under management to which the regulation applies, were reported in the highest category (article 9), i.e. a fund that has sus - tainable investment as its objective, while 97 funds, representing 79% of the managed fund volume, were reported in the second highest category (article 8), i.e. funds that promote environmental or social characteristics. Handelsbanken’s Annual General Meeting 2026 The Annual General Meeting will take place on 25 March 2026. The Board of Directors pro - poses to the annual general meeting a total dividend of SEK 17.50 (15.00) per share, com - prised of an ordinary dividend of SEK 8.00 (7.50) per share. The Board proposes that the record day for the dividend be 27 March 2026, which means that the Handelsbanken share will be traded ex-dividend on 26 March 2026, and that the dividend is then expected to be disbursed by Euroclear on 1 April 2026. In addition, the Board proposes to the annual general meeting that the current repur - chase programme of a maximum 120 million shares be extended by a further year, and that the meeting authorise the Board to be able to issue convertible debt instruments in the form of AT1 bonds, in order to adapt the Bank’s cap - ital structure to capital requirements prevailing at any time. 21Handelsbanken Annual Report 2025 2.2
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Five-year overview for the Group Five-year overview for the Group Consolidated income statement SEK m 2025 2024 2023 2022 2021 Net interest income 42,542 46,841 47,578 36,614 30,321 Net fee and commission income 11,863 11,726 11,139 10,981 11,458 Net gains/losses on financial transactions 1,692 3,103 2,661 1,540 1,699 Risk result – insurance 179 Net insurance result 289 422 493 −11 Other dividend income 11 16 3 17 2 Share of profit of associates and joint ventures −9 27 51 −13 63 Other income 408 209 325 1,246 555 Total income 56,796 62,345 62,249 50,375 44,277 Staff costs −14,777 −15,731 −13,642 −13,040 −12,452 Other expenses −6,770 −7,474 −7,796 −6,526 −5,577 Depreciation, amortisation and impairment of tangible and intangible assets −2,020 −2,004 −1,743 −1,646 −1,814 Total expenses −23,567 −25,209 −23,182 −21,212 −19,843 Profit before credit losses and regulatory fees 33,229 37,136 39,067 29,163 24,434 Net credit losses 313 601 −141 −47 −43 Gains/losses on disposal of tangible and intangible assets 8 13 20 24 14 Regulatory fees −2,800 −2,733 −2,624 −2,311 −930 Operating profit 30,750 35,016 36,322 26,829 23,475 Taxes −6,755 −7,795 −8,417 −5,431 −4,627 Profit for the year from continuing operations 23,995 27,221 27,905 21,398 18,848 Profit for the year from discontinued operations, after tax −266 234 1,209 280 695 Profit for the year 23,729 27,456 29,114 21,678 19,543 attributable to Shareholders in Svenska Handelsbanken AB 23,727 27,451 29,107 21,676 19,527 of which from continuing operations 23,993 27,217 27,898 21,395 18,834 of which from discontinued operations −266 234 1,209 281 693 Non-controlling interest 3 5 8 1 16 Earnings per share, total operations, SEK 11.98 13.86 14.70 10.95 9.86 after dilution 11.98 13.86 14.70 10.95 9.86 Earnings per share, continuing operations, SEK 12.12 13.75 14.09 10.81 9.51 after dilution 12.12 13.75 14.09 10.81 9.51 Earnings per share, discontinued operations, SEK −0.13 0.12 0.61 0.14 0.35 after dilution −0.13 0.12 0.61 0.14 0.35 A five-year overview for the parent company is presented on pages 280-281. 22 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Consolidated statement of comprehensive income SEK m 2025 2024 2023 2022 2021 Profit for the year 23,729 27,456 29,114 21,678 19,543 Other comprehensive income Items that will not be reclassified to the income statement Defined benefit pension plans 622 344 −2,226 3,049 6,820 Equity instruments measured at fair value through other comprehensive income −1 207 63 41 62 Tax on items that will not be reclassified to the income statement −123 −77 439 −642 −1,401 of which defined benefit pension plans −122 −36 450 −622 −1,398 of which equity instruments measured at fair value through other comprehensive income −1 −41 −11 −19 −3 Total 498 475 −1,724 2,448 5,481 Items that may subsequently be reclassified to the income statement Cash flow hedges −88 160 614 −2,640 −1,970 Debt instruments measured at fair value through other comprehensive income −8 6 25 −60 6 Insurance contracts −16 66 −396 793 Translation difference for the year −5,425 1,758 −1,078 2,312 3,201 of which hedges of net investments in foreign operations 710 −230 31 −297 −910 Tax on items that may subsequently be reclassified to the income statement 329 −52 113 −15 595 of which cash flow hedges 18 −33 −127 544 406 of which debt instruments measured at fair value through other comprehensive income −2 −1 −5 6 −1 of which hedges of net investments in foreign operations −146 47 −6 61 190 of which tax on translation difference 459 −65 251 −626 Total −5,209 1,937 −722 390 1,832 Total other comprehensive income −4,711 2,412 −2,447 2,838 7,313 Total comprehensive income for the year 19,018 29,868 26,667 24,516 26,856 attributable to Shareholders in Svenska Handelsbanken AB 19,020 29,870 26,662 24,516 26,840 Non-controlling interest −2 −2 5 1 16 Consolidated balance sheet SEK m 2025 2024 2023 2022 2021 Assets Cash and central banks 432,680 542,542 482,453 480,472 292,839 Interest-bearing securities eligible as collateral with central banks 188,272 172,606 199,128 132,778 100,538 Loans to other credit institutions 21,694 18,922 19,294 9,411 21,745 Loans to the public 2,263,765 2,297,878 2,291,808 2,315,818 2,163,135 Bonds and other interest-bearing securities 53,631 47,508 50,087 32,697 33,317 Assets held for sale 43,580 74,506 178,590 191,916 421,417 Other assets 383,942 385,212 316,431 290,626 313,773 Total assets 3,387,566 3,539,173 3,537,792 3,453,718 3,346,764 Liabilities and equity Due to credit institutions 64,525 84,280 90,143 81,693 83,034 Deposits and borrowing from the public 1,293,784 1,310,739 1,298,480 1,318,925 1,286,637 Issued securities 1,429,185 1,550,027 1,523,481 1,474,801 1,353,768 Liabilities held for sale 413 10,623 63,721 68,938 133,922 Subordinated liabilities 34,061 37,054 43,117 42,404 32,257 Other liabilities 366,243 336,424 313,763 272,932 275,415 Equity 199,355 210,027 205,085 194,024 181,731 Total liabilities and equity 3,387,566 3,539,173 3,537,792 3,453,718 3,346,764 Five-year overview for the Group, cont. 23Handelsbanken Annual Report 2025 2.2
Page 26
Key metrics per year Key metrics per year Key metrics for the Handelsbanken Group 2025 2024 2023 2022 2021 Profit before credit losses and regulatory fees, continuing operations, SEK m 33,229 37,136 39,067 29,163 24,434 Net credit losses, continuing operations, SEK m 313 601 −141 −47 −43 Operating profit, continuing operations, SEK m 30,750 35,016 36,322 26,829 23,475 Profit for the year, total operations, SEK m 23,729 27,456 29,114 21,678 19,543 Profit for the year, continuing operations, SEK m 23,995 27,221 27,905 21,398 18,848 Profit for the year, discontinued operations, SEK m −266 234 1,209 280 695 Total assets, SEK m 3,387,566 3,539,173 3,537,792 3,453,718 3,346,764 Equity, SEK m 199,355 210,027 205,085 194,024 181,731 Return on equity, total operations, % 13.0 14.6 15.9 12.8 11.8 Return on equity, continuing operations, % 13.1 14.5 15.3 12.6 11.4 Return on total assets, % 0.66 0.75 0.81 0.61 0.58 C/I ratio, continuing operations, % 41.5 40.4 37.2 42.1 44.8 Credit loss ratio, continuing operations, % −0.01 −0.02 0.01 0.00 0.00 Earnings per share, total operations, SEK 11.98 13.86 14.70 10.95 9.86 after dilution 11.98 13.86 14.70 10.95 9.86 Earnings per share, continuing operations, SEK 12.12 13.75 14.09 10.81 9.51 after dilution 12.12 13.75 14.09 10.81 9.51 Earnings per share, discontinued operations, SEK −0.13 0.12 0.61 0.14 0.35 after dilution −0.13 0.12 0.61 0.14 0.35 Ordinary dividend per share, SEK¹ 8.00 7.50 6.50 5.50 5.00 Total dividend per share, SEK¹ 17.50 15.00 13.00 8.00 5.00 Adjusted equity per share, SEK 100.56 105.91 103.48 98.14 90.87 No. of shares as at 31 December, millions 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 of which outstanding 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 Average number of outstanding shares, millions 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 after dilution 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 Common equity tier 1 ratio, % according to CRR 17.6 18.8 18.8 19.6 19.4 Tier 1 ratio, % according to CRR 18.8 20.2 20.6 21.5 21.1 Total capital ratio, % according to CRR 22.0 23.4 23.9 23.8 23.3 Average number of employees, total operations 11,888 12,703 12,216 12,030 12,240 of which continuing operations 11,715 12,224 11,683 10,954 11,039 1) Dividend for the current year as recommended by the Board. For definitions of alternative performance measures, see page 340 and, for the calculation of these measures, see the Fact Book which is available at handelsbanken.com/ir. 24 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Quarterly performance Quarterly performance Quarterly performance for the Handelsbanken Group SEK m Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Interest income 28,937 31,745 33,019 35,678 40,206 Interest expenses −18,898 −21,278 −22,331 −24,330 −28,461 Net interest income 10,038 10,468 10,689 11,347 11,745 Fee and commission income 3,522 3,368 3,244 3,283 3,475 Fee and commission expenses −404 −389 −377 −384 −409 Net fee and commission income 3,118 2,979 2,866 2,900 3,067 Net gains/losses on financial transactions 677 573 −64 506 1,147 Insurance result 44 45 12 36 37 Return on assets held on behalf of policyholders 41 26 93 −8 −6 Net insurance result 85 71 105 28 30 Other dividend income 8 1 1 1 13 Share of profit of associates and joint ventures 80 −22 −46 −21 −50 Other income 255 51 73 29 73 Total income 14,262 14,121 13,624 14,789 16,025 Staff costs −3,548 −3,656 −3,784 −3,789 −3,981 Other expenses −1,781 −1,544 −1,723 −1,722 −1,860 Depreciation, amortisation and impairment of tangible and intangible assets −480 −515 −510 −515 −523 Total expenses −5,810 −5,715 −6,017 −6,025 −6,363 Profit before credit losses and regulatory fees 8,452 8,406 7,608 8,763 9,662 Net credit losses 5 35 219 54 232 Gains/losses on disposal of tangible and intangible assets 2 2 1 3 3 Regulatory fees −777 −675 −664 −684 −719 Operating profit 7,682 7,768 7,164 8,136 9,177 Taxes −1,583 −1,747 −1,624 −1,801 −1,976 Profit for the year from continuing operations 6,099 6,020 5,540 6,336 7,201 Profit for the year from discontinued operations, after tax −129 −72 −51 −14 −354 Profit for the year 5,970 5,948 5,489 6,322 6,848 attributable to Shareholders in Svenska Handelsbanken AB 5,970 5,948 5,488 6,321 6,845 Non-controlling interest 1 1 0 1 3 Earnings per share, total operations, SEK 3.01 3.00 2.77 3.19 3.46 after dilution 3.01 3.00 2.77 3.19 3.46 Earnings per share, continuing operations, SEK 3.08 3.04 2.80 3.20 3.64 after dilution 3.08 3.04 2.80 3.20 3.64 Earnings per share, discontinued operations, SEK −0.07 −0.04 −0.03 −0.01 −0.18 after dilution −0.07 −0.04 −0.03 −0.01 −0.18 25Handelsbanken Annual Report 2025 2.2
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Segment reporting Segment reporting Segment reporting 2025 SEK m Sweden UK Norway The Netherlands Markets Other Adjustments and eliminations Total Net interest income 25,415 9,401 4,969 1,817 5 935 42,542 Net fee and commission income 9,463 838 716 177 595 73 11,863 Net gains/losses on financial transactions 852 207 78 22 1,079 −547 1,692 Net insurance result 289 289 Share of profit of associates and joint ventures −9 −9 Other income 90 8 19 4 5 295 419 Total income 36,109 10,454 5,782 2,019 1,684 748 56,796 Staff costs −5,133 −3,738 −1,282 −616 −941 −3,368 302 −14,777 Other expenses −1,158 −992 −236 −118 −510 −3,754 −6,770 Internal purchased and sold services −4,520 −831 −878 −319 57 6,489 Depreciation, amortisation and impairment of tangible and intangible assets −753 −470 −120 −66 −155 −433 −23 −2,020 Total expenses −11,563 −6,032 −2,516 −1,119 −1,548 −1,067 279 −23,567 Profit before credit losses and regulatory fees 24,546 4,423 3,266 900 135 −319 279 33,229 Net credit losses 133 92 44 −4 0 47 313 Gains/losses on disposal of tangible and intangible assets 7 −1 2 8 Regulatory fees −2,030 −56 −418 −141 −23 −130 −2,800 Operating profit 22,655 4,457 2,894 754 112 −402 279 30,750 Profit allocation 359 43 50 0 −402 −50 Operating profit after profit allocation 23,014 4,501 2,945 754 −290 −452 279 30,750 Internal income 1,451 2,928 −8,807 −735 −1,076 6,240 C/I ratio, % 31.7 57.5 43.1 55.4 120.7 41.5 Credit loss ratio, % −0.01 −0.03 −0.01 0.00 0.00 −0.01 Loans to the public 1,591,612 228,508 287,383 109,792 17,862 28,609 0 2,263,765 Deposits and borrowing from the public 858,339 266,404 96,220 37,960 −1,550 36,425 −14 1,293,784 Allocated capital 120,494 26,510 21,991 6,457 1,564 3,355 18,984 199,355 Return on allocated capital, % 15.3 13.0 10.8 9.7 −14.6 13.1 Average number of employees 4,602 2,784 981 430 432 2,486 11,715 Applied principles for segment reporting and a description of the items shown in the Other and Adjustments and eliminations columns are explained further in note G48. The “Other” column includes allocated capital attributable to the disposal group in Finland. 26 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Segment reporting 2024 SEK m Sweden UK Norway The Netherlands Markets Other Adjustments and eliminations Total Net interest income 29,003 10,729 5,162 1,967 −17 −3 46,841 Net fee and commission income 9,066 869 695 188 621 288 11,726 Net gains/losses on financial transactions 959 225 80 18 1,220 602 3,103 Net insurance result 423 −1 422 Share of profit of associates and joint ventures 27 27 Other income 84 15 21 3 3 99 225 Total income 39,535 11,837 5,957 2,176 1,826 1,015 62,345 Staff costs −5,073 −3,579 −1,307 −611 −985 −4,428 252 −15,731 Other expenses −1,173 −841 −517 −145 −509 −4,290 −7,474 Internal purchased and sold services −4,899 −1,445 −809 −322 72 7,404 Depreciation, amortisation and impairment of tangible and intangible assets −773 −378 −106 −58 −145 −520 −24 −2,004 Total expenses −11,918 −6,242 −2,739 −1,136 −1,567 −1,834 228 −25,209 Profit before credit losses and regulatory fees 27,617 5,595 3,217 1,040 259 −819 228 37,136 Net credit losses 377 139 72 2 0 12 601 Gains/losses on disposal of tangible and intangible assets 8 0 5 0 0 13 Regulatory fees −2,033 −47 −411 −132 −25 −86 −2,733 Operating profit 25,969 5,686 2,883 910 234 −893 228 35,016 Profit allocation 371 49 61 0 −423 −58 Operating profit after profit allocation 26,339 5,736 2,943 910 −189 −951 228 35,016 Internal income 5,009 4,045 −10,458 −152 −156 1,712 C/I ratio, % 29.9 52.5 45.5 52.2 111.7 40.4 Credit loss ratio, % −0.02 −0.06 −0.02 0.00 0 −0.02 Loans to the public 1,589,948 246,790 320,705 104,604 15,335 20,496 2,297,878 Deposits and borrowing from the public 848,854 289,072 97,713 44,743 711 29,671 −25 1,310,739 Allocated capital 123,381 27,866 22,684 5,690 1,831 5,915 22,660 210,027 Return on allocated capital, % 17.3 17.1 10.4 13.0 −9.1 14.5 Average number of employees 4,764 2,842 993 425 470 2,729 12,224 Applied principles for segment reporting and a description of the items shown in the Other and Adjustments and eliminations columns are explained further in note G48. The “Other” column includes allocated capital attributable to the disposal group in Finland. 27Handelsbanken Annual Report 2025 2.2
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Sweden Sweden Quarterly performance SEK m Q4 2025 Q3 2025 Q2 2025 Q1 2025 Total 2025 Total 2024 Change, % Net interest income 5,949 6,250 6,457 6,759 25,415 29,003 −12 Net fee and commission income 2,485 2,395 2,280 2,303 9,463 9,066 4 Net gains/losses on financial transactions 373 199 106 174 852 959 −11 Net insurance result 85 71 105 28 289 423 −32 Other income 28 46 7 9 90 84 7 Total income 8,921 8,960 8,956 9,272 36,109 39,535 −9 Staff costs −1,295 −1,286 −1,268 −1,284 −5,133 −5,073 1 Other expenses −313 −257 −304 −284 −1,158 −1,173 −1 Internal purchased and sold services −1,167 −1,045 −1,151 −1,157 −4,520 −4,899 −8 Depreciation, amortisation and impairment of tangible and intangible assets −180 −184 −196 −193 −753 −773 −3 Total expenses −2,954 −2,773 −2,917 −2,919 −11,563 −11,918 −3 Profit before credit losses and regulatory fees 5,966 6,188 6,039 6,353 24,546 27,617 −11 Net credit losses −2 14 92 29 133 377 −65 Gains/losses on disposal of tangible and intangible assets 2 1 2 2 7 8 −13 Regulatory fees −505 −508 −501 −516 −2,030 −2,033 0 Operating profit 5,461 5,694 5,632 5,868 22,655 25,969 −13 Profit allocation 93 85 88 93 359 371 −3 Operating profit after profit allocation 5,554 5,779 5,720 5,961 23,014 26,339 −13 Internal income 48 301 593 509 1,451 5,009 −71 C/I ratio, % 32.8 30.7 32.3 31.2 31.7 29.9 Credit loss ratio, % 0.00 0.00 −0.02 −0.01 −0.01 −0.02 Loans to the public 1,591,612 1,600,597 1,595,284 1,588,172 1,591,612 1,589,948 0 Deposits and borrowing from the public 858,339 858,942 850,000 846,484 858,339 848,854 1 Allocated capital 120,494 117,146 110,852 128,967 120,494 123,381 −2 Return on allocated capital, % 14.6 15.7 16.4 14.7 15.3 17.3 Average number of employees 4,556 4,698 4,563 4,591 4,602 4,764 −3 Business volumes, Sweden Average volumes SEK bn 2025 2024 Change % Loans to the public¹ 1,591 1,593 0 of which households 971 967 0 of which mortgage loans 946 940 1 of which corporates 621 626 −1 of which mortgage loans 466 452 3 Deposits and borrowing from the public 839 836 0 of which households 492 480 2 of which corporates 347 356 −3 1) Excluding loans to the National Debt Office. 28 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Financial performance Operating profit decreased by 13% to SEK 22,655m (25,969). The return on allocated capital was 15.3% (17.3). The C/I ratio was 31.7% (29.9). Income decreased by 9% to SEK 36,109m (39,535). Expenses decreased by 3% to SEK -11,563m (-11,918). Net interest income went down by 12% to SEK 25,415m (29,003). Higher business vol - umes had an impact of SEK 26m. The net amount of changed margins and funding costs had an impact of SEK -3,447m on net interest income. The day effect had an impact of SEK -48m, as the previous year was a leap year. The higher fee for the deposit guarantee had an impact of SEK -53m. Other effects in net interest income contributed SEK -66m. Net fee and commission income increased by 4% to SEK 9,463m (9,066). Mutual fund commissions increased by 1% to SEK 5,275m (5,211). Custody and other asset management commissions increased by 10% to SEK 960m (870). Brokerage and other securities commis - sions increased by 20% to SEK 197 (164). Insurance commissions increased by 2% to SEK 769m (756). Commission income from loans and deposits and from guarantees amounted to SEK 685m (734). Net payment commissions decreased by 2% to SEK 1,317m (1,344), with net card commissions totalling SEK 867m (871). Net gains/losses on financial transactions totalled SEK 852m (959). Net insurance result was SEK 289m (423). Other income amounted to SEK 90m (84). Staff costs rose by 1% to SEK -5,133m (-5,073). The average number of employees fell by 3% to 4,602 (4,764). Other expense items declined by 6% to SEK -6,431m (-6,845). Credit losses consisted of net reversals of SEK 133m (377) and the credit loss ratio was -0.01% (-0.02). Regulatory fees amounted to SEK -2,030m (-2,033), of which the risk tax amounted to SEK -1,205m (-1,220) and the resolution fee to SEK -826m (-812). Business development Handels banken held on to its position as the best bank for business in this year's indepen - dent Finansbarometern survey, which named Handels banken to “Business Bank of the Year” for the fourth consecutive year and “Sweden’s Small Enterprise Bank” for the thirteenth con - secutive year. The major survey of customer satisfaction in the banking sector carried out by the Swedish Quality Index (SKI) showed that Handels - banken continues to have more satisfied customers than the sector average. Private customers gave Handels banken an index score of 67.8, as compared with the sector average of 67.1. Corporate customers gave Handels banken an index score of 66.4, as compared with the sector average of 65.2. The total average volume of lending fell marginally to SEK 1,591bn (1,593). Household lending increased marginally to SEK 971bn (967) and corporate lending decreased by 1% to SEK 621bn (626). The total average volume of deposits rose marginally to SEK 839bn (836). Household deposits went up by 2% to SEK 492bn (480), while corporate deposits decreased by 3% to SEK 347bn (356). Total assets under management in Sweden were SEK 1,129bn (1,040) at the end of the year, of which the managed fund volume amounted to SEK 1,077bn (974). The net flow in the Bank’s mutual funds in Sweden during the period totalled SEK 73.0bn (35.9). 29Handelsbanken Annual Report 2025 2.2
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UK UK Quarterly performance SEK m Q4 2025 Q3 2025 Q2 2025 Q1 2025 Total 2025 Total 2024 Change, % Net interest income 2,219 2,295 2,342 2,545 9,401 10,729 −12 Net fee and commission income 208 211 204 215 838 869 −4 Net gains/losses on financial transactions 51 48 52 56 207 225 −8 Other income 13 −5 0 0 8 15 −47 Total income 2,491 2,550 2,597 2,816 10,454 11,837 −12 Staff costs −1,142 −819 −890 −887 −3,738 −3,579 4 Other expenses −450 −177 −170 −195 −992 −841 18 Internal purchased and sold services 263 −380 −370 −344 −831 −1,445 −42 Depreciation, amortisation and impairment of tangible and intangible assets −109 −127 −122 −112 −470 −378 24 Total expenses −1,439 −1,504 −1,550 −1,539 −6,032 −6,242 −3 Profit before credit losses and regulatory fees 1,053 1,046 1,047 1,277 4,423 5,595 −21 Net credit losses 11 15 66 0 92 139 −34 Gains/losses on disposal of tangible and intangible assets 0 0 −1 0 −1 0 Regulatory fees −14 −15 −13 −14 −56 −47 19 Operating profit 1,050 1,045 1,099 1,263 4,457 5,686 −22 Profit allocation 10 11 11 11 43 49 −12 Operating profit after profit allocation 1,061 1,057 1,109 1,274 4,501 5,736 −22 Internal income 571 651 766 940 2,928 4,045 −28 C/I ratio, % 57.5 58.7 59.4 54.4 57.5 52.5 Credit loss ratio, % −0.02 −0.02 −0.07 −0.01 −0.03 −0.06 Loans to the public 228,508 230,166 231,815 231,618 228,508 246,790 −7 Deposits and borrowing from the public 266,404 268,085 275,793 273,539 266,404 289,072 −8 Allocated capital 26,510 26,188 26,322 30,606 26,510 27,866 −5 Return on allocated capital, % 12.7 12.8 13.4 13.2 13.0 17.1 Average number of employees 2,938 2,678 2,716 2,806 2,784 2,842 −2 Business volumes, UK Average volumes GBP m 2025 2024 Change % Loans to the public 18,105 17,865 1 of which households 5,017 5,120 −2 of which corporates 13,089 12,745 3 Deposits and borrowing from the public 21,203 20,592 3 of which households 5,519 5,300 4 of which corporates 15,685 15,292 3 30 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Financial performance Operating profit decreased by 22% to SEK 4,457m (5,686). Foreign exchange effects amounted to SEK -210m, and in local currency terms, operating profit declined by 18%. Return on allocated capital was 13.0% (17.1). The C/I ratio was 57.5% (52.5). Income decreased by 12% to SEK 10,454m (11,837). Foreign exchange effects amounted to SEK -468m, and in local currency terms, income fell by 8%. Expenses decreased by 3% to SEK -6,032m (-6,242). Foreign exchange effects amounted to SEK 263m, and in local currency terms, expenses rose by 1%. Net interest income went down by 12% to SEK 9,401m (10,729). Foreign exchange effects amounted to SEK -420m, and in local currency terms, net interest income went down by 8%. Higher business volumes had an impact of SEK 177m. The net effect of changes to margins and funding costs was SEK -983m. The day effect had an impact of SEK -25m, as the previous year was a leap year. Other effects had a SEK -77m impact on net interest income. Net fee and commission income declined by 4% to SEK 838m (869). Foreign exchange effects amounted to SEK -38m, and in local currency terms, net fee and commission income rose by 1%. Commission income from the fund management, custody account man - agement and asset management business, including brokerage, insurance and advisory services, decreased by 1% to SEK 440m (445). Commission income from loans and deposits and from guarantees amounted to SEK 159m (165). Net payment commissions decreased by 4% to SEK 281m (293). Staff costs rose by 4% to SEK -3,738m (-3,579). Foreign exchange effects amounted to SEK 158m, and in local currency terms, staff costs rose by 9%. An organisational change was made during the fourth quarter entailing that staff were transferred from the central IT department to the segment, which resulted in an increase to staff costs but a decrease to expenses for internal purchased services. Restructuring charges relating to employment termination agreements amounted to SEK -47m (-). The average number of employees fell by 2% to 2,784 (2,842). Other expense items fell by 14% to SEK -2,293m (-2,664), mainly due to the afore mentioned organisational change. Expressed in local cur - rency, other expense items fell by 10%. Regulatory fees, comprised of expenses for the Bank of England Levy, were SEK -56m (-47). Credit losses consisted of net reversals of SEK 92m (139). The credit loss ratio was -0.03% (-0.06). Business development According to the annual EPSI survey of cus - tomer satisfaction in the banking industry, Handels banken – similar to previous years – had the most satisfied customers among all UK banks in the survey. Private customers gave Handels banken an index score of 86.5, as compared with the sector average of 76.1. Corporate customers gave the Bank an index score of 82.1, as compared with the sector average of 65.7. The total average volume of lending in - creased by 1% to GBP 18.1bn (17.9). Household lending decreased by 2% to GBP 5.0bn (5.1), and corporate lending increased by 3% to GBP 13.1bn (12.7). The total average volume of deposits in - creased by 3% to GBP 21.2bn (20.6). House - hold deposits increased by 4% to GBP 5.5bn (5.3), and corporate deposits increased by 3% to GBP 15.7bn (15.3). The total volume of assets under manage - ment in Handels banken Wealth & Asset Man - agement increased to GBP 4.8bn (4.5) at the end of the year. New savings totalled net GBP -151m (-31). 31Handelsbanken Annual Report 2025 2.2
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Norway Norway Quarterly performance SEK m Q4 2025 Q3 2025 Q2 2025 Q1 2025 Total 2025 Total 2024 Change, % Net interest income 1,194 1,258 1,224 1,293 4,969 5,162 −4 Net fee and commission income 192 182 175 167 716 695 3 Net gains/losses on financial transactions 14 20 22 22 78 80 −3 Net insurance result −1 Other income 10 3 3 3 19 21 −10 Total income 1,410 1,463 1,424 1,485 5,782 5,957 −3 Staff costs −319 −317 −304 −342 −1,282 −1,307 −2 Other expenses −60 −52 −57 −67 −236 −517 −54 Internal purchased and sold services −212 −216 −223 −227 −878 −809 9 Depreciation, amortisation and impairment of tangible and intangible assets −41 −27 −26 −26 −120 −106 13 Total expenses −632 −612 −610 −662 −2,516 −2,739 −8 Profit before credit losses and regulatory fees 778 851 814 823 3,266 3,217 2 Net credit losses −3 7 18 22 44 72 −39 Gains/losses on disposal of tangible and intangible assets 0 1 0 1 2 5 −60 Regulatory fees −109 −103 −101 −105 −418 −411 2 Operating profit 667 755 730 742 2,894 2,883 0 Profit allocation 11 11 15 13 50 61 −18 Operating profit after profit allocation 679 767 744 755 2,945 2,943 0 Internal income −1,977 −2,183 −2,282 −2,365 −8,807 −10,458 16 C/I ratio, % 44.5 41.5 42.4 44.2 43.1 45.5 Credit loss ratio, % 0.00 −0.01 −0.01 −0.03 −0.01 −0.02 Loans to the public 287,383 304,308 309,068 313,605 287,383 320,705 −10 Deposits and borrowing from the public 96,220 106,281 110,944 103,101 96,220 97,713 −2 Allocated capital 21,991 20,463 20,968 23,464 21,991 22,684 −3 Return on allocated capital, % 9.8 11.9 11.3 10.2 10.8 10.4 Average number of employees 954 979 986 1,004 981 993 −1 Business volumes, Norway Average volumes NOK bn 2025 2024 Change % Loans to the public 324.9 323.8 0 of which households 141.6 133.6 6 of which corporates 183.3 190.2 −4 Deposits and borrowing from the public 110.1 97.1 13 of which households 50.0 41.5 20 of which corporates 60.1 55.7 8 32 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Financial performance Operating profit increased marginally to SEK 2,894m (2,883). Foreign exchange effects amounted to SEK -82m, and in local currency terms, operating profit rose by 5%. Return on allocated capital increased to 10.8% (10.4). The C/I ratio improved to 43.1% (45.5). Income decreased by 3% to SEK 5,782m (5,957). Foreign exchange effects amounted to SEK -193m, and in local currency terms, income rose by 1%. Expenses decreased by 8% to SEK -2,516m (-2,739). Foreign exchange effects amounted to SEK 103m, and in local currency terms, expenses went down by 4%. Net interest income went down by 4% to SEK 4,969m (5,162). Foreign exchange effects amounted to SEK -169m, and in local currency terms, net interest income saw a marginal increase. Changed business volumes made a contribution of SEK 102m. The net effect of changes to margins and funding costs was a contribution of SEK -84m. The day effect had an impact of SEK - 10m, as the previous year was a leap year. Other effects, including changes to fees for deposit guarantees, had a SEK -32m impact. Net fee and commission income increased by 3% to SEK 716m (695). Foreign exchange effects on net fee and commission income amounted to SEK -20m, and in local currency terms, net fee and commission income rose by 7%. Commission income from fund manage - ment, custody account management and other asset management fees, brokerage and insur - ance increased by 11% to SEK 431m (389). Net payment commissions rose by 8% to SEK 193m (178). Net gains/losses on financial transactions totalled SEK 78m (80). Other income amounted to SEK 19m (21). Staff costs fell by 2% to SEK -1,282m (-1,307). Foreign exchange effects amounted to SEK 53m, and in local currency terms, staff costs rose by 2%. The average number of employees decreased by 1% to 981 (993). Other expense items fell by 14% to SEK -1,234m (-1,432). In local currency terms, the decrease was 10%. The decrease was mainly due to lower activity within IT investments. Credit losses consisted of net reversals of SEK 44m (72). The credit loss ratio was -0.01% (-0.02). Regulatory fees amounted to SEK -418m (-411), of which the risk tax amounted to SEK -236m (-234) and the resolution fee to SEK -183m (-177). Business development The annual EPSI customer satisfaction survey of the Norwegian banking market once again showed that Handels banken’s banking cus - tomers were more satisfied than the sector average. Private customers gave the Bank an index score of 70.1, as compared with the sector average of 67.2. Corporate customers gave the Bank an index score of 68.9, as com - pared with the sector average of 65.7. The average volume of lending increased marginally to NOK 324.9bn (323.8). House - hold lending increased by 6% to NOK 141.6bn (133.6), and corporate lending decreased by 4% to NOK 183.3bn (190.2). The total average volume of deposits in - creased by 13% to NOK 110.1bn (97.1). House - hold deposits increased by 20% to NOK 50.0bn (41.5), and corporate deposits increased by 8% to NOK 60.1bn (55.7). Total assets under management increased by 15% and amounted to NOK 63bn (55) at the end of the year, of which the managed fund volume accounted for NOK 59bn (53). The net flow to the Bank’s mutual funds in Norway amounted to NOK 2.0bn (7.2). 33Handelsbanken Annual Report 2025 2.2
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The Netherlands The Netherlands Quarterly performance SEK m Q4 2025 Q3 2025 Q2 2025 Q1 2025 Total 2025 Total 2024 Change, % Net interest income 444 453 449 471 1,817 1,967 −8 Net fee and commission income 45 47 42 43 177 188 −6 Net gains/losses on financial transactions 8 5 6 3 22 18 22 Other income 3 0 0 1 4 3 33 Total income 499 504 498 518 2,019 2,176 −7 Staff costs −151 −155 −155 −155 −616 −611 1 Other expenses −32 −26 −30 −30 −118 −145 −19 Internal purchased and sold services −80 −78 −84 −77 −319 −322 −1 Depreciation, amortisation and impairment of tangible and intangible assets −18 −17 −17 −14 −66 −58 14 Total expenses −281 −275 −286 −277 −1,119 −1,136 −1 Profit before credit losses and regulatory fees 218 229 212 241 900 1,040 −13 Net credit losses 0 −4 1 −1 −4 2 Regulatory fees −37 −35 −34 −35 −141 −132 7 Operating profit 180 190 179 205 754 910 −17 Profit allocation 0 0 0 0 0 0 0 Operating profit after profit allocation 180 190 179 205 754 910 −17 Internal income −267 −228 −162 −78 −735 −152 −384 C/I ratio, % 56.3 54.6 57.4 53.5 55.4 52.2 Credit loss ratio, % 0.00 0.02 0.00 0.00 0.00 0.00 Loans to the public 109,792 109,983 108,099 101,905 109,792 104,604 5 Deposits and borrowing from the public 37,960 43,416 44,267 46,979 37,960 44,743 −15 Allocated capital 6,457 6,242 5,907 5,975 6,457 5,690 13 Return on allocated capital, % 8.9 9.7 9.6 10.9 9.7 13.0 Average number of employees 430 432 428 429 430 425 1 Business volumes, The Netherlands Average volumes EUR m 2025 2024 Change % Loans to the public 9,663 8,848 9 of which households 5,139 4,900 5 of which corporates 4,524 3,947 15 Deposits and borrowing from the public 4,094 3,704 11 of which households 804 828 −3 of which corporates 3,290 2,876 14 34 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Financial performance Operating profit decreased by 17% to SEK 754m (910). Foreign exchange effects amounted to SEK -26m, and in local currency terms, operat - ing profit declined by 14%. Return on allocated capital was 9.7% (13.0), and the C/I ratio was 55.4% (52.2). Income decreased by 7% to SEK 2,019m (2,176). Foreign exchange effects amounted to SEK -65m, and in local currency terms, income fell by 4%. Expenses decreased by 1% to SEK -1,119m (-1,136). Foreign exchange effects amounted to SEK 35m, and in local currency terms, expenses rose by 2%. Net interest income went down by 8% to SEK 1,817m (1,967). Foreign exchange effects amounted to SEK -59m, and in local currency terms, net interest income went down by 5%. Changed business volumes made a contribu - tion of SEK 168m. The net amount of changed margins and funding costs had an impact of SEK -257m. The day effect was marginal. Other effects, including a change to the fee for the deposit guarantee, had a SEK -2m impact. Net fee and commission income decreased by 6% to SEK 177m (188). Foreign exchange effects amounted to SEK -6m, and in local cur - rency terms, net fee and commission income fell by 3%. Net commission income from fund management, custody account management and other asset management fees, including brokerage, decreased by 8% to SEK 177m (192). No performance fees were received from Optimix during the year (14). Commission income from loans and deposits and from guarantees increased by 18% to SEK 13m (11). Staff costs rose by 1% to SEK -616m (-611). Foreign exchange effects amounted to SEK 20m, and in local currency terms, staff costs rose by 4%. The average number of employees grew by 1% to 430 (425). Other expense items declined by 4% to SEK -503m (-525). Expressed in local currency, other expense items decreased by 1%. Credit losses totalled SEK -4m (2). The credit loss ratio was 0.00% (0.00). Regulatory fees amounted to SEK -141m (-132), of which the risk tax amounted to SEK -77m (-73) and the resolution fee to SEK -64m (-58). Business development The total average volume of lending increased by 9% to EUR 9.7bn (8.8). Household lending increased by 5% to EUR 5.1bn (4.9), and cor - porate lending increased by 15% to EUR 4.5bn (3.9). The total average volume of deposits in - creased by 11% to EUR 4.1bn (3.7). Household deposits decreased by 3% to EUR 0.8bn (0.8), and corporate deposits increased by 14% to EUR 3.3bn (2.9). Total assets under management at Optimix, including the company’s own mutual funds, increased to EUR 2.4bn (2.2) at the end of the year. New savings in Optimix during the period totalled EUR 56m (-47). 35Handelsbanken Annual Report 2025 2.2
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Markets Markets Quarterly performance SEK m Q4 2025 Q3 2025 Q2 2025 Q1 2025 Total 2025 Total 2024 Change, % Net interest income −3 0 6 2 5 −17 Net fee and commission income 168 133 150 144 595 621 −4 Net gains/losses on financial transactions 271 230 310 268 1,079 1,220 −12 Other income 1 1 1 2 5 3 67 Total income 438 363 467 416 1,684 1,826 −8 Staff costs −244 −232 −233 −232 −941 −985 −4 Other expenses −134 −118 −131 −127 −510 −509 0 Internal purchased and sold services 12 16 15 14 57 72 −21 Depreciation, amortisation and impairment of tangible and intangible assets −38 −41 −38 −38 −155 −145 7 Total expenses −403 −374 −388 −383 −1,548 −1,567 −1 Profit before credit losses and regulatory fees 34 −11 79 33 135 259 −48 Net credit losses 0 0 0 0 0 0 0 Gains/losses on disposal of tangible and intangible assets 0 Regulatory fees −6 −5 −6 −6 −23 −25 −8 Operating profit 29 −17 73 27 112 234 −52 Profit allocation −100 −95 −106 −101 −402 −423 −5 Operating profit after profit allocation −71 −112 −33 −74 −290 −189 53 Internal income −388 −280 −134 −274 −1,076 −156 C/I ratio, % 119.2 139.6 107.5 121.6 120.7 111.7 Credit loss ratio, % 0.00 0.00 0.00 0.00 0.00 0.00 Loans to the public 17,862 18,598 19,112 17,552 17,862 15,335 16 Deposits and borrowing from the public −1,550 24,150 38,349 18,650 −1,550 711 Allocated capital 1,564 1,673 1,584 1,497 1,564 1,831 −15 Return on allocated capital, % −14.5 −21.3 −6.5 −15.7 −14.6 −9.1 Average number of employees 436 428 430 435 432 470 −8 Financial performance Operating profit decreased by 52% to SEK 112m (234). Income decreased by 8% to SEK 1,684m (1,826). Expenses decreased by 1% to SEK -1,548m (-1,567). Net interest income totalled SEK 5m (-17). Net fee and commission income declined by 4% to SEK 595m (621). Net gains/losses on financial transactions decreased by 12% to SEK 1079m (1220). Staff costs fell by 4% to SEK -941m (-985). The average number of employees fell by 8% to 432 (470). Other expense items amounted to SEK -608m (-582). Regulatory fees totalled SEK -23m (-25). 36 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Other units not reported in the business segments Other units not reported in the business segments Quarterly performance SEK m Q4 2025 Q3 2025 Q2 2025 Q1 2025 Total 2025 Total 2024 Change, % Net interest income 234 213 211 277 935 −3 Net fee and commission income 18 14 13 28 73 288 −75 Net gains/losses on financial transactions −41 71 −560 −17 −547 602 Share of profit of associates and joint ventures 80 −22 −46 −21 −9 27 Other income 211 6 63 15 295 99 198 Total income 504 281 −319 282 748 1,015 −26 Staff costs −470 −918 −1,011 −969 −3,368 −4,428 −24 Other expenses −791 −912 −1,032 −1,019 −3,754 −4,290 −12 Internal purchased and sold services 1,182 1,702 1,814 1,791 6,489 7,404 −12 Depreciation, amortisation and impairment of tangible and intangible assets −88 −113 −106 −126 −433 −520 −17 Total expenses −168 −242 −334 −323 −1,067 −1,834 −42 Profit before credit losses and regulatory fees 335 40 −653 −41 −319 −819 −61 Net credit losses −2 2 43 4 47 12 292 Gains/losses on disposal of tangible and intangible assets 0 Regulatory fees −105 −9 −7 −9 −130 −86 51 Operating profit 228 33 −617 −46 −402 −893 −55 Profit allocation −14 −13 −7 −16 −50 −58 −14 Operating profit after profit allocation 214 20 −625 −61 −452 −951 −52 Internal income 2,014 1,739 1,219 1,268 6,240 1,712 264 Loans to the public 28,609 24,365 39,047 28,403 28,609 20,496 40 Deposits and borrowing from the public 36,425 97,478 94,838 138,450 36,425 29,671 23 Allocated capital Finland 3,355 3,421 3,816 5,199 3,355 5,915 −43 Average number of employees 2,294 2,529 2,531 2,589 2,486 2,729 −9 Below is an account of income and expense items attributable to units not reported in the business segments, including the Group’s IT department, provisions for Oktogonen and central business support units. Financial performance Operating profit was SEK -402m (-893). Income was SEK 748m (1,015). Net interest income increased mainly as a result of lower funding costs for the liquidity portfolio. This effect was offset in net gains/losses on finan - cial transactions by the higher cost for hedg - ing interest rate risk in the liquidity portfolio. Net gains/losses on financial transactions also decreased due to the sale of Ecster’s credit card portfolio in Finland during the year, which had an impact of SEK -121m, and the realisation of the translation reserve in the subsidiary, Rahoitus, during the previous year, which had an impact of SEK 178m. Expenses decreased to SEK - 1,067m (-1,834). Staff costs fell by 24% to SEK -3,368m (-4,428). The provision for Oktogonen was SEK -155m (-255), of which SEK -13m (-159) referred to the previous accounting year. Restructuring charges relating to employment termination agreements amounted to SEK -81m (-472). The rest of the decrease was mainly due to a fall in employee numbers and lower expenses for the earning of pensions, which arose due to a higher discount rate at the start of the year compared to the previous year. The average number of employees went down by 9% to 2,486 (2,729), with the number of employees at the Bank’s IT department totalling 1,810 (2,008). Other expenses fell by 12% to SEK -3,754m (-4,290), mainly due to a drop in IT -related costs. Depreciation, amortisation and impairment of property, equipment and intangible assets fell to SEK -433m (-520). Regulatory fees grew to SEK -130m (-86), with SEK -98m (-) comprised of the cost of the aforementioned deposits with the Riksbank, referring to the period 31 October 2025 to the end of June 2026. 37Handelsbanken Annual Report 2025 2.2
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The Handels banken share and shareholders The Handels banken share and shareholders Handels banken’s share has traded on the Stockholm stock exchange since 1871, making the Bank’s share the oldest currently listed on the exchange. There are two classes of Handels banken’s share: class A and class B. Class A shares are by far the most common and represent more than 98% of all shares. Class A shares each carry one vote, while class B shares have one- tenth of a vote. Both classes of share entail the same right to dividends. Each share represents SEK 1.55 of the share capital. At year-end, there were a total of 1,980,028,494 shares (1,980,028,494). The share capital was SEK 3,069 million (3,069). Stock exchange trading Handels banken’s share has traded on the Stockholm stock exchange since 1871, and has been traded on several different market places for many years. During the year, Nasdaq Stockholm accounted for 33% of total trading in class A shares and 60% of trading in class B shares. Of other marketplaces, the Chicago Board Options Exchange (Cboe) represented 52% of total trading in class A shares, thus making it the largest marketplace, while the London Stock Exchange represented 10%. For many years, the Handels banken share has been included in numerous sustainability indexes. Dividend Where dividends are concerned, Handels - banken’s policy is that the dividend level must not lead to the capital ratios falling below a level of 1 percentage point above the require - ments communicated by the Swedish Financial Supervisory Authority. At the ordinary Annual General Meeting on 26 March 2025, the shareholders resolved to approve the Board’s proposal of a dividend of SEK 15 per share, of which an ordinary divi - dend of SEK 7.50. The Board proposes that the 2026 AGM resolve on a total dividend of SEK 17.50 per share (15.00), of which an ordinary dividend of SEK 8.00 per share (7.50). The complete proposal on share dividends is presented on page 40. Handels banken’s shares 2025 2024 2023 2022 2021 Earnings per share, total operations, SEK 11.98 13.86 14.70 10.95 9.86 after dilution 11.98 13.86 14.70 10.95 9.86 Earnings per share, continuing operations, SEK 12.12 13.75 14.09 10.81 9.51 after dilution 12.12 13.75 14.09 10.81 9.51 Earnings per share, discontinued operations, SEK −0.13 0.12 0.61 0.14 0.35 after dilution −0.13 0.12 0.61 0.14 0.35 Ordinary dividend per share, SEK¹ 8.00 7.50 6.50 5.50 5.00 Total dividend per share, SEK¹ 17.50 15.00 13.00 8.00 5.00 Dividend growth, ordinary dividend, %¹ 6.7 15.4 18.2 10.0 22.0 Price of class A share, 31 December, SEK 134.35 114.20 109.45 105.10 97.86 Price of class B share, 31 December, SEK 231.80 148.70 130.20 122.20 107.80 Highest share price during year, SEK 136.75 125.95 112.80 106.45 107.35 Lowest share price during year, SEK 101.50 95.22 84.14 84.46 82.10 Share price performance, % 18 4 4 7 18 Total return, % 31 16 12 13 29 Dividend yield, %¹ 13.0 13.1 11.9 7.6 5.1 Adjusted equity per share, SEK 100.56 105.91 103.48 98.14 90.87 Stock exchange price/equity, % 134 108 106 107 108 Average daily turnover on Nasdaq OMX (no. of shares) Class A 5,186,814 5,101,123 5,395,478 4,249,523 4,150,923 Class B 142,730 108,764 154,095 107,544 105,539 P/E ratio 11.2 8.2 7.4 9.6 9.9 Market capitalisation, SEK bn 269 227 217 209 194 No. of shares as at 31 December, millions 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 Number of outstanding shares as at 31 December, millions 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 Dilution effect, end of period, millions 0.0 0.0 0.0 0.0 0.0 Number of outstanding shares after dilution, millions 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 Average number of outstanding shares, millions 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 after dilution 1,980.0 1,980.0 1,980.0 1,980.0 1,980.0 1) Dividend for the current year as recommended by the Board. 38 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other
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Creating shareholder value As at 31 December 2025, Handels banken’s market capitalisation was SEK 269 billion (227). The market capitalisation thus increased by SEK 42 billion (10) during the year, while the Bank also distributed SEK 29.7 billion (25.7) in dividends. In the past five-year period, Handels banken has paid SEK 98 billion in dividends, while the market capitalisation has increased by SEK 106 billion. Share price performance The Swedish stock market (OMX Stockholm 30 index) increased by 16% during the year. The Stockholm stock exchange’s bank index increased by 34%. Handels banken’s class A shares closed at SEK 134.35 (114.20), an in - crease of 18%. Including dividends, the total return was 31%. Repurchase of shares At the AGM in March 2025, the Board received a mandate to repurchase a maximum of 120 million shares during the period until the AGM in March 2026. This mandate was not used in 2025. Ownership structure Over the past five years, the number of share - holders in Handels banken has increased from just over 140,000 to almost 270,000 share - holders. In the same period, the percentage of foreign ownership in the Bank has declined from 44% to 34%. Just over three-quarters of the owners, or 77%, owned fewer than 1,001 shares. The 1.2% of the shareholders who each owned more than 20,001 shares together hold 86% of the share capital. The largest shareholders 31 December 2025 Number of shares % of votes % of capital Industrivärden 230,000,000 11.8 11.6 Oktogonen Foundation 159,225,141 8.2 8.0 Lundberggruppen 95,781,000 4.9 4.8 BlackRock 69,730,671 3.6 3.5 Vanguard 65,548,347 3.3 3.3 Handels banken Fonder 32,251,577 1.7 1.6 Fidelity 29,919,408 1.5 1.5 J. Wallanders & T. Hedelius stiftelse, T. Browaldhs stiftelse 28,996,000 1.5 1.5 SEB Fonder 27,287,220 1.4 1.4 First Eagle Investment Management, LLC 20,933,302 1.1 1.1 Avanza Fonder 18,394,427 0.9 0.9 Folksam 16,476,392 0.8 0.8 Avanza Pension 16,392,776 0.8 0.8 Swedbank Robur Fonder 16,220,623 0.8 0.8 Schroders 16,133,937 0.8 0.8 Shareholdings per shareholder 31 December 2025 Shareholdings Number of shares Number of shareholders Number of class A shares Number of class B shares % of share capital % of votes 1–500 shares 175,815 18,601,450 5,105,289 1.2 1.0 501–1,000 shares 31,587 20,782,009 3,718,148 1.2 1.1 1,001–5,000 shares 44,308 92,699,925 10,110,131 5.2 4.8 5,001–20,000 shares 12,580 110,745,498 7,771,879 6.0 5.7 20,001–shares 3,317 1,701,948,283 8,545,882 86.4 87.4 Total 267,607 1,944,777,165 35,251,329 100.0 100.0 Shares divided into share classes 31 December 2025 Share class Number % of capital % of votes Average prices /repurchased amount Share capital Class A 1,944,777,165 98.22 99.82 3,014,404,606 Class B 35,251,329 1.78 0.18 54,639,560 Total 1,980,028,494 100.00 100.00 3,069,044,166 50 75 100 125 150 175 200 OMX Stockholm Banks PI OMX Stockholm 30 SHB A dec -25dec -24dec -23dec -22dec -21dec -20 SHB A OMX Stockholm 30 OMX Stockholm/Banks PI Five-year share price performance Index 100 = 31 December 2020 0 5 10 15 25242322212019181716 Ordinary dividend Special dividend 2025 according to Board proposal. Share dividends in the past 10 years SEK per share 39Handelsbanken Annual Report 2025 2.2
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Proposed appropriation of profits 40 HandelsbankenAnnual Report 2025 2.2 Introduction Administration report Review of operations Financial statements Other Proposed appropriation of profits In accordance with the balance sheet for Svenska Handels banken AB, profits totalling SEK 141,252 million are at the disposal of the AGM. The Board proposes that the profit be appropriated as follows: Dividend per share paid to the shareholders SEK 17.50, of which SEK 8.00 in ordinary dividend (SEK 15.00, of which SEK 7.50 in ordinary dividend for 2024) 34,650 Balance carried forward to the next year 106,602 Total allocated 141,252 The Board’s assessment is that the amount of the proposed dividend, totalling SEK 34,650 million, is justifiable in view of the nature of operations, their scope, consolidation require - ment, risk-taking, liquidity, and the general position both in the parent company and in the rest of the Group. Unrealised changes in assets and liabilities at fair value had a net impact on equity of SEK -331 million. The total capitalisation of the parent company and the consolidated situation at year-end, minus the proposed dividend and taking into account other material changes since year- end, exceeded the statutory minimum require - ment pursuant to EU Regulation 575/2013 and Directive 2013/36/EU and other relevant requirements established for the Bank by public authorities.
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2.3 Corporate Governance Report Corporate Governance Report Handels banken is a Swedish public limited liability banking company whose share is listed on Nasdaq Stockholm. The Board hereby submits its Corporate Governance Report for 2025. The Corporate Governance Report has been prepared in accordance with the Annual Accounts Act and the Swedish Corporate Governance Code. Handels banken applies the Swedish Corporate Governance Code with no deviations. Corporate governance at Handels banken Group The Handels banken Group comprises the parent company Svenska Handels banken AB (publ) and several subsidiaries, including Stads - hypotek AB, Handels banken Liv Försäkring - saktiebolag, Handels banken Fonder Aktie- bolag and Handels banken plc. The parent company’s operations include the branch operations in Sweden, business support units and the operations conducted in the branches in Norway, the Netherlands, Luxembourg, the USA and Finland. Corporate governance in the Handels banken Group is aimed at creating a clear, fit-for- purpose organisational structure which en - sures that operations can be carried out in a sound, effective manner and in accordance with external and internal rules. Corporate gov - ernance also aims to facilitate effective moni - toring and management of the risks that arise in operations. A clear allocation of responsibili - ties creates the prerequisites for a high level of internal control, risk control and compliance. Good governance must run through all opera - tions. At the heart of corporate governance are the goals and steering documents issued by the Board and the Chief Executive Officer. Handels banken’s corporate culture, work method and remuneration system are also important for ensuring effective corporate governance, as is the ability to manage any risks that arise in the business operations. Handels banken’s decentralised approach means that each part of the business opera - tions bears full responsibility for its business. Important business decisions are taken locally close to the customer. The Bank’s approach is characterised by trust and respect for custom - ers and employees alike. Handels banken’s concept, goals and working methods are described on pages 12–15. Risk management is described in detail in a separate risk section in the Annual Report, note G2 on pages 164– 206, in the Bank’s Pillar 3 report, and also briefly in this Corporate Governance Report. The operations of Swedish banks are regu - lated by law, and banking operations may only be run with a licence from the Swedish Finan - cial Supervisory Authority. The regulations for the Bank’s operations are extensive. The most pertinent of these include the Swedish Com - panies Act, the Swedish Banking and Financing Business Act, the Swedish Securities Market Act, Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms (CRR), the Swedish Credit Institutions and Securities Companies (Special Supervision) Act, and the Swedish Money Laundering and Terrorist Financing (Prevention) Act. In addition, there are also regulations and guidelines as well as general advice of crucial importance from the Swedish Financial Supervisory Authority and other authorities. Handels banken also applies internal regula - tions. The steering documents issued by the Board and the Chief Executive Officer state the most important and fundamental principles, and also establish a framework for the Group’s business operations, including the require - ments for ensuring internal control for the busi - ness operations. These steering documents are complemented by other internal rules that provide more detailed instructions and guidance on how the business operations are to be con - ducted. A summary of the Board’s policies can be found on handels banken.com. Certain poli - cies are also available in their entirety on the website. Handels banken’s main principle is that operations outside Sweden are subject both to Swedish regulations and to the host country’s regulations, if these are stricter or require deviations. More information More information about Handels - banken’s corporate governance is avail - able at handels banken.com. The site includes the following information: • Articles of Association • Corporate Governance Reports • Sustainability statement • Information about the Nomination committee • Minutes from shareholders’ meetings. 42 HandelsbankenAnnual Report 2025 2.3 Introduction Administration report Corporate Governance Report Financial statements Other
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10. Handels banken Risk Control 11. Handels banken Compliance 13. Executive Team 14. Risk and Compliance committee Corporate governance structure 1. Shareholders and shareholders’ meetings Shareholders exercise their right to decide on matters concerning Handels banken at shareholders’ meetings, which are the Bank’s highest decision-making body. A shareholder wishing to have a matter considered by the Annual General Meeting (AGM) must submit a written request to the Board, in time for the matter to be included in the notice of the meeting. The Bank’s website, handels banken. com, contains information as to when this request must have reached the Board. At the AGM, the Bank’s shareholders make various decisions of major importance to the Bank’s governance. Shareholders’ decisions include: • adopting the income statement and balance sheet • appropriation of profits • discharge from liability for the Board and the Chief Executive Officer for the past financial year • election and remuneration of Board members and auditors • guidelines for remuneration to executive officers, and • instruction for the Nomination committee. 8. Credit committee 4. Board 2. Nomination committee 3. External auditors 12. Chief Executive Officer and President 1. Shareholders and shareholders’ meetings 5. Audit committee 7. Remuneration committee6. Risk committee Shareholders External auditors Other committees Operations 9. Handels banken Internal Audit Handels banken Global Banking Handels banken Netherlands Handels banken Norway Handels banken UK Swedish branch operations 15. Business-operating units Handels banken Legal Handels banken IT Handels banken HR Handels banken Foundation and Publishing Handels banken Finance Handelsbanken Savings and Financing Handels banken Operations Handels banken Markets Handels banken Credit 16. Business support units Handels banken Communication Control functions The Board and committees Selects/appoints/initiates Informs/reports 43Handelsbanken Annual Report 2025 2.3
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0 400 800 1,200 1,600 2,000 202520242023202220212020 0 20 40 60 80 100 No. of shareholders represented Proportion of votes Represented at AGMs 2020–2025 Number % Handels banken’s Articles of Association set out which operations the Bank is to conduct, the classes of shares and the limits on the amount of share capital, the items to be pre - sented at the AGM, that the number of Board members must be at least eight and at most 15, and that Board members are elected for one year at a time. Handels banken has two classes of shares: class A and class B. Class A shares repre - sented more than 98 per cent of all shares outstanding at the end of 2025. Class A shares and class B shares entitle holders to the same proportion of the profit. Each class A share entitles the holder to one vote, while each class B share entitles the holder to one-tenth of a vote. At the end of 2025, Handels banken had slightly more than 267,000 shareholders. At the end of 2025, the holdings of one share - holder represented more than 10 per cent of the votes: AB Industrivärden, with 11.8 per cent. More information about the Handels banken share and shareholders is available on pages 38–39. Information in preparation for shareholders’ meetings is published at handels banken.com. Minutes of previous meetings are also avail - able on the website. Handels banken’s 2025 AGM was held on 26 March 2025. 1,859 shareholders were rep - resented at the meeting. They represented approximately 55.4 per cent of all votes in the Bank. The Chairman of the meeting was lawyer Patrik Marcelius. The decisions made by the shareholders at the AGM included: • A total dividend of SEK 15.00 per share, of which an ordinary dividend of SEK 7.50 per share, with the remaining amount at the dis - posal of the meeting to be carried forward. • Authorisation for the Board to decide on the acquisition of not more than 120 million shares in the Bank, as well as divestments of such shares. • Authorisation for the Board to decide on the issuance of convertible tier 1 capital instru - ments. • The Board is to consist of nine members, excluding deputy members. • The re-election of eight Board members and the election of Anders Jernhall as new Board member for the period until the con - clusion of the next AGM. • The re-election of Pär Boman as Chairman of the Board. • Fees to be paid to the Board members: SEK 4,050,000 to the Chairman of the Board, SEK 1,150,000 to the Deputy Chair - man, and SEK 825,000 to the other Board members. For committee work, fees of SEK 550,000 are to be paid to each member of the Credit committee, the Risk committee and the Audit committee, and fees of SEK 140,000 are to be paid to each member of the Remuneration committee. Furthermore, it was decided that the fee of SEK 700,000 would be paid to the Chairs of the Risk com - mittee and the Audit committee, that SEK 140,000 would be paid to the Chair of the Remuneration committee, that SEK 650,000 would be paid to the Chair of the Credit committee. Board members who are employees of Handels banken shall not receive a fee. • The AGM re-elected PricewaterhouseCoo - pers AB and Deloitte AB to serve as auditors until the end of the AGM to be held in 2026. 2. Nomination committee The Nomination committee’s task is to prepare and submit proposals to the AGM regarding, among other items, the appointment of and fees to the Chairman and other members of the Board. As prescribed by the Swedish Cor - porate Governance Code, the Nomination committee also submits proposals regarding the appointment of auditors and fees to the auditors. In its work, the Nomination committee takes into account the Board’s diversity policy, which stipulates that to promote independent opinions and critical questioning, it is desirable that the Board should be characterised by appropriate diversity and breadth in terms of its members’ qualifications, experience and background and an even gender balance. When formulating its proposal to the AGM, the Nomination committee considers the Board’s policy regarding the suitability assessment of Board members and the Chief Executive Officer. In compiling the proposal, the Nomination committee also considers the evaluation of the Board carried out by the Chairman of the Board. The shareholders at the 2022 AGM resolved to establish an instruction for how the Nomination committee is to be appointed and how it is to discharge its duties. According to the decision, the instruction will apply until it is amended by a future AGM. The instruction states that the Nomination committee shall comprise five members: the Chairman of the Board and one representative from each of the Bank’s four largest shareholders on 31 August the year before the AGM is held. However, the Nomination committee must not include repre - sentatives of companies which are significant competitors of the Bank in any of its main areas of operations. It is the Chairman of the Board’s task to contact the largest owners, so that they will appoint one representative each to sit on the Nomination committee, together with the Chairman. The 2026 Nomination committee comprises the following representatives: Representative Shareholders Voting power %, 31 August 2025 Helena Stjernholm, Chair Industrivärden 11.81 Maria Sjöstedt Oktogonen Foundation 8.17 Claes Boustedt Lundberg own - ership group 4.87 Anna Hääger Afa Försäkring 0.50 Pär Boman, Board Chairman - - Information on the composition of the Nomination committee has been available at handels banken.com since 18 September 2025. 3. External auditors The external auditors are appointed by the AGM for the period until the end of the follow - ing year’s AGM. The auditors are accountable to the shareholders. They carry out an audit and submit an auditor’s report covering mat - ters such as the Annual Report, including this Corporate Governance Report, and the admin - istration of the Board and the Chief Executive Officer. In addition, the auditors report orally and in writing to the Board’s Audit committee concerning how their audit was conducted 44 HandelsbankenAnnual Report 2025 2.3 Introduction Administration report Corporate Governance Report Financial statements Other
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together with its conclusions. The auditors also submit a summary report of their audit to the Board as a whole. The 2025 AGM re-elected Pricewaterhouse- Coopers AB and Deloitte AB to serve as audi - tors until the end of the AGM to be held in 2026. Magnus Svensson Henryson has been the auditor-in-charge for Pricewaterhouse- Coopers AB at Handels banken since 2024. Magnus Svensson Henryson is also an auditor for Alleima, Asmodee, Bure Equity, Embracer, Holmen, L E Lundbergföretagen and Hufvud - staden. Magnus Svensson Henryson has been an authorised public accountant since 2001. Malin Lüning has been auditor-in-charge for Deloitte AB at Handels banken since 2023. She is also an auditor for SBAB and Söderberg & Partners. Malin Lüning has been an authorised public accountant since 2008. 4. Board The Board is Handels banken’s highest admin - istrative body and is responsible for the Bank’s organisation and manages the Bank’s affairs on behalf of its shareholders. This includes, inter alia, establishing the overall goals and strategy of the company as well as following up operations. The Board establishes policies and instructions on how this is to be executed, and establishes rules of procedure for the Board and also an instruction for the Chief Executive Officer. These steering documents state how responsibility and authority are allo - cated among the Board as a whole, the com - mittees, the Chairman of the Board and the Chief Executive Officer. The fundamental rules regarding the distribution of tasks is in accor - dance with the Swedish Companies Act and the Swedish Corporate Governance Code. The appointments made by the Board include the Chief Executive Officer, Executive Vice Presi - dents, members of the Executive Team and the heads of the control functions. Moreover, the Board also stipulates the employment terms for these persons. The Board has the following committees: the Risk committee, the Audit committee, the Remuneration committee and a Credit commit - tee. The Board’s UK committee for reporting on UK operations was dissolved in March 2025. These operations are now reported directly to the Board in its entirety under the framework of the regular reporting on the home markets. The Board addresses many important mat - ters during the year as part of carrying out its duties. This includes regularly occurring items to manage and monitor business operations and the organisation as well as to ensure sound risk management and reliable financial reporting. Other matters resulting from external regulatory requirements are also addressed, for example, adopting the Bank’s internal capi - tal adequacy and liquidity adequacy assess - ment (ICAAP/ILAAP) and recovery plan. The Board receives and examines the regular reporting from the Bank’s control functions. This is an important part of the Board’s control and overall efforts to ensure that the Bank is managed responsibly based on sound risk-tak - ing and a high level of compliance. In addition, the Board addresses regularly occurring items such as the Bank’s credit risks and credit losses, IT systems, IT security, continuity planning, audits, sustainability and the Bank’s work on anti-money laundering and combating financial crime. Furthermore, matters discussed at Remuneration, Risk and Audit committee meetings are reported at the next Board meeting. The Chairman is responsible for ensuring that the Board’s work is evaluated annually. The 2025 Board evaluation took place via questionnaires and by the Chairman holding interviews with each Board member. The Deputy Chairman was responsible for the evaluation of the Chairman. The findings of the evaluation were presented to and discussed by the Board. The Chairman also informed the Nomination committee about the Board evaluation. The Board had 12 meetings in 2025, includ - ing two extended strategy meetings. Composition of the Board The Board was composed of nine elected members during the 2025 financial year. The Board also includes two members and two deputy members who are employee represen - tatives, in accordance with applicable legisla - tion. After the shareholders at the 2025 AGM had appointed Pär Boman to be Chairman of the Board, Fredrik Lundberg was appointed as Deputy Chairman at the first Board meeting after the AGM. At the same time, the Board appointed members of the Credit committee, Audit committee, Risk committee and Remu - neration committee. Information about the members of the Board is provided on pages 52–54. The Board members have broad and exten - sive experience from the business community. Several members have worked on the Bank’s Board for a long time and are very familiar with the Bank’s operations. The Nomination committee’s proposals at previous AGMs, including their reasons, are available at handels banken.com. Suitability assessments of individual Board members are undertaken, and of the Board as a whole. The suitability assessment of the Board is carried out at least annually, as well as prior to changes in the composition of the Board, or when it is otherwise deemed necessary. This ensures that the Board has the knowledge, skills and experience required to fulfil its duties, which include establishing strategies and risk tolerances, and under - standing and challenging decisions and pro - posals by executive management on the basis of their consequences. During the 2025 financial year, the percent - age of women on the Board of the Bank was 44 per cent of the elected members. The pro - portion of elected members who were inde - pendent of the Bank, its management and major shareholders was 78 per cent. The com - position of the Board fulfils the Swedish Cor - porate Governance Code’s requirements for independence. Chairman of the Board The Board’s rules of procedure state that the Chairman shall ensure that the Board carries out its work efficiently and that it fulfils its duties. This involves organising and managing the Board’s work and creating the best possible conditions for this work. The Chairman must also ensure that the Board members continually update and expand their knowledge of the Bank’s operations, and that new members receive appropriate introduction and training. The Chairman must be available to the Chief Executive Officer as an advisor and discussion partner, but must also prepare the Board’s evaluation of the Chief Executive Officer’s work. The Chairman’s duties include being chair of the Credit committee and Remuneration committee as well as being a member of the Audit committee and Risk committee. The Chairman is responsible for maintaining con - tact with the major shareholders concerning ownership matters. 5. Audit committee The Board’s Audit committee monitors the Bank’s financial reporting, including the sus - tainability reporting, by examining important accounting matters and other factors that may affect the qualitative content of the financial reports. The committee also monitors the effectiveness of the Bank’s and Group’s inter - nal control, internal audit and risk management with regard to financial reporting. In addition, 45Handelsbanken Annual Report 2025 2.3
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the committee receives reports on productivity measures and so forth for material products and processes as well as performance targets and control systems relating to major IT invest - ments. The committee also reviews the exter - nal auditors’ impartiality and independence, and evaluates the audit activities and submits a recommendation to the Nomination commit - tee in the matter of the appointment of audi - tors. All interim reports and year-end reports are reviewed by the Audit committee. Items are presented by the Chief Executive Officer, the Chief Financial Officer, the Head of Handels banken Internal Audit and the persons with main responsibility from the audit compa - nies appointed by the AGM. The members of the committee can also ask questions to the Head of Handels banken Internal Audit and the external auditors when members of Bank man - agement are not present. The Audit committee in 2025 comprised the Chairman of the Board Pär Boman and three Board members appointed by the Board, Hans Biörck, Anders Jernhall and Ulf Riese. The latter three members are independent of major share- holders, and of the Bank and its management. Ulf Riese was appointed to chair the committee. In 2025, the Audit committee engaged in its usual work relating to financial reporting, audit - ing, etc. The committee also addressed matters relating to management changes and the Bank’s sustainability agenda and alignment with the CSRD. In 2025, the Audit committee had seven meetings. The Board’s report on internal control over financial reporting can be found on page 51. 6. Risk committee The Board’s Risk committee monitors the effectiveness of the Handels banken Group’s risk control and risk management. The com - mittee prepares decisions in the Board regard - ing items including the Bank’s risk strategy, risk tolerance, adopting the internal capital adequacy and liquidity adequacy assessment (ICAAP/ILAAP), and adopting Handels banken’s recovery plan. The committee processes the validation and evaluation of the internal risk rating system, evaluation of the risk calculation methods used for limiting financial risks, and calculations of the capital requirements and economic capital. The Risk committee also makes decisions such as on the significant parts of the Bank’s risk rating and estimation processes linked to the IRB approach. The committee also processes reports from Handels banken Risk Control and Handels - banken Compliance. The Head of Handels - banken Risk Control and Head of Handels - banken Compliance present their reports for the Risk committee. The Bank’s Chief Execu - tive Officer and Chief Financial Officer also attend meetings of the Risk committee. The members of the committee can also ask questions to the Head of Handels banken Risk Control and Head of Handels banken Compli- ance when members of Bank management are not present. The Risk committee in 2025 comprised the Chairman of the Board Pär Boman and the Board members Hélène Barnekow, Hans Biörck, Kerstin Hessius and Ulf Riese. The latter four members are independent of major share- holders, and of the Bank and its management. Kerstin Hessius was appointed to chair the committee. In 2025, the Risk committee had seven meetings. During the year, the Risk committee regularly addressed matters relating to risk tolerance, including credit risk, counterparty risk and liquidity risk, as well as the development of the Bank’s IRB models. In addition, the committee discussed risk and compliance issues linked to, among other things, IT security, the Digital Operational Resilience Act (DORA) and opera - tional risks as well as work to combat financial crime. The committee also discussed the economic conditions and their effects on the Bank’s business operations and its risks. The three lines of defence for risk manage - ment are described on page 48. 7 . Remuneration committee The tasks of the Remuneration committee include making an independent assessment of Handels banken’s remuneration policy and remuneration system. The heads of the areas concerned, as well as the Head of Handels - banken Risk Control and Head of Handels - banken Compliance, take part in the Remuner - ation committee’s preparation and assessment of the Board’s remuneration policy and the Bank’s remuneration system. In addition, the Remuneration committee prepares matters regarding remuneration to be decided on by the Board. The Board deter - mines remuneration for, among others, the Chief Executive Officer, the Executive Vice President, members of the Executive Team and the heads of the control functions. Each year, the Remuneration committee evaluates Handels banken’s guidelines as well as its remuneration structures and levels in accor - dance with the Swedish Corporate Gover - nance Code. The Remuneration committee in 2025 com - prised the Chairman of the Board Pär Boman, who also chairs the committee, and two Board members Stina Bergfors and Hans Biörck. The latter two members are independent of major shareholders, and of the Bank and its manage - ment. In 2025, the Remuneration committee had eight meetings. In 2025, the Remuneration committee has engaged in its usual work concerning matters relating to remuneration and addressed cases involving the appointment of senior managers. The Board’s remuneration report is available at handels banken.com and the Guidelines for remuneration to executive officers are pre - sented on page 50. 8. Credit committee The Board has set up a Credit committee which decides on credit cases where the amount exceeds the decision limit that the Board has delegated to another unit. Cases of special importance and credits to Board members and certain persons in managerial positions are decided upon by the Board as a whole. The Credit committee consisted of Chair - man of the Board Pär Boman, who also chairs the committee, Deputy Chairman Fredrik Lundberg, Chief Executive Officer Michael Green, Head of Handels banken Credit Per Beckman, and Board members Stina Bergfors, Hans Biörck, Kerstin Hessius, Louise Lindh and Ulf Riese. The Country General Managers and County Managers, and the Head of Handels banken Global Banking presented cases to the Credit committee from their own units in 2025 and participated when other cases were pre - sented, with the objective of providing them with a good picture of the Board’s approach to risk. Credit cases that are decided upon by the whole Board are presented by the Head of Handels banken Credit. If a delay in the credit decision would inconvenience the Bank or the borrower, the credit instructions allow the Chief Executive Officer and Head of Handels banken Credit to decide on credit cases during the interval between Credit committee meetings. In 2025, the Credit committee had ten meetings. 46 HandelsbankenAnnual Report 2025 2.3 Introduction Administration report Corporate Governance Report Financial statements Other
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9. Handels banken Internal Audit Handels banken Internal Audit performs an independent, impartial audit of the operations and financial reporting of the Group. A key task is to assess and verify processes for risk man - agement, internal control and corporate gover - nance. The Head of Handels banken Internal Audit is appointed by the Board. Read more about Handels banken Internal Audit on page 48. 10. Handels banken Risk Control Handels banken Risk Control is responsible for verifying that all material risks in the Group are identified and managed by the relevant functions, and for analysing and reporting these risks. The Head of Handels banken Risk Control reports directly to the Chief Executive Officer. Read more about Handels banken Risk Con - trol on page 48. 11. Handels banken Compliance Handels banken Compliance is responsible for monitoring and controlling compliance, providing advice and support on measures to be taken by the business in order to ensure compliance, and for the reporting of material deficiencies and risks. The Head of Handels - banken Compliance reports directly to the Chief Executive Officer. Read more about Handels banken Compliance on page 48. 12. Chief Executive Officer and President The Chief Executive Officer is responsible for the day-to-day administration of the Bank’s operations pursuant to the instructions from the Board. The Chief Executive Officer leads the organisation and delegates tasks to his subordinate managers. As a general rule, responsibilities and powers of authority are assigned to individual members of staff, rather than groups or committees. However, collec - tive decisions are made, in the form of credit decisions made in credit committees and the national boards, where such decisions require unanimity among the members. Michael Green has been Handels banken’s Chief Executive Officer and President since 1 January 2024. Michael Green was born in 1966 and his academic qualifications include studies in business administration, economics and law. Michael Green joined the Gothenburg branch of the Bank as a corporate advisor in 1994 and he subsequently served in various roles, such as the Head of the US operations, Head of Handels banken in Western Sweden and Head of Capital Markets. In 2020, Michael Green was appointed General Manager of Handels banken Sweden. Alongside his employment at Handels banken, Michael Green is also a board member of the Stockholm Chamber of Commerce, ICC Sweden and Finance Sweden. Neither Michael Green nor his related parties has any material sharehold - ings or other ownership interests in companies with which the Bank has significant business relationships. For more information about the Chief Executive Officer and President, see page 55. 13. Executive Team The Executive Team comprises a forum avail - able to the Chief Executive Officer to coordi - nate the strategic governance of the Group, and to address operational Group-wide issues and other critical matters from a Group per - spective. The members of the Executive Team are appointed by the Board. For more information on the members of the Executive Team, see page 55. 14. The Risk and Compliance committee The Risk and Compliance committee has been set up by the Chief Executive Officer for follow- up of the Group’s risk management within several areas and for in-depth discussions regarding the Bank’s overall risk situation prior to such matters being addressed by the Risk committee and the Board. In addition to the Chief Executive Officer, the Risk and Compliance committee comprises, among others, the heads of business support units and control functions. 15. Business-operating units Handels banken’s overall organisational struc - ture follows a geographical governance model. Customer responsibility is geographical, meaning that all of the Group’s customers are affiliated with a physical branch, regardless of which products or services the customer needs, or which channels the customer chooses. The Handels banken Group’s home markets are Sweden, Norway, the UK and the Nether - lands, but the Group also has business opera - tions in other markets (Handels banken Global Banking). Outside Sweden, operations are mainly conducted via international branches, except in the UK, where the Bank has a sub - sidiary for its British operations. In 2021, the decision was made to initiate a process to divest the operations in Finland. Parts of the operations have been divested. The remaining operations in Finland are being handled in a separate discontinuation and sales process. The starting point is that country general managers have overall responsibility for the Bank’s activities in their respective countries. This responsibility includes a distribution responsibility for products and services, as well as a customer responsibility. The Chief Executive Officer has corresponding responsi - bility for operations in Sweden. 16. Business support units Business operations are supported by a num - ber of units with Group-wide responsibility. Group-wide responsibility is exercised primarily in the form of product and function responsi - bility. Group-wide product and function responsi- bility includes, inter alia, ensuring that work within the area functions well and is conducted in accordance with internal and external rules and regulations. The responsibility also in - cludes providing specific area-related guidance and support. Product managers constitute central busi - ness support for a given product area. Product responsibility includes, according to a Group- wide approval process, developing, managing and phasing out products and services, as well as coordinating and supporting the distribution of the products and services. Function managers have Group-wide responsibility for a given area, for example, legal, personnel and IT. 47Handelsbanken Annual Report 2025 2.3
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Three lines of defence for risk management Handels banken has three lines of defence for management, follow-up and internal control of the Bank’s risks. These are described in more detail below. A more detailed description of the Bank’s risk management and control is contained in note G2 on pages 164–206, and also in the Bank’s Pillar 3 Report. First line of defence The business operations and the units that support the business operations constitute the first line of defence, with responsibility for identifying, managing and restricting the risks facing the business in accordance with exter - nal and internal rules. Responsibility for ensur - ing that the appropriate procedures, systems and processes are in place to ensure that the operations can be conducted in accordance with external and internal rules, and to effec - tively monitor and manage any risks that arise has been delegated by the Chief Executive Officer to managers who report directly to the Chief Executive Officer. This includes fit-for- purpose internal control. In turn, these manag - ers may delegate operational responsibility for meeting these requirements to managers who report to them. Among other things, this responsibility means that fit-for-purpose instructions and procedures for the operation must be in place, and compliance with these procedures must be monitored regularly. Second line of defence The Handels banken Risk Control and Handels - banken Compliance control functions consti - tute the second line of defence. Both functions are independent and organisationally sepa - rated from the activities they monitor and control. Handels banken Risk Control Handels banken Risk Control identifies, mea - sures, analyses and reports all the Group’s material risks. This includes monitoring and checking the Group’s risk management and assessing that Handels banken’s risk manage - ment framework is efficient and fit-for-purpose. Handels banken Risk Control also checks that the risks and risk management comply with the Bank’s risk strategy, and fall within the risk tolerance established by the Board. The Head of Handels banken Risk Control is appointed by the Board and reports directly and regularly to the Chief Executive Officer and the Board. In 2025, the Head of Handels - banken Risk Control attended all meetings of the Risk committee and most meetings of the Board and the Board’s Credit committee. Handels banken Compliance Handels banken Compliance identifies, moni - tors, controls and reports on compliance risks within the Group. This includes controlling and assessing the suitability and effectiveness of the procedures in place and actions taken to minimise the risk of non-compliance with applicable rules. In addition, Handels banken Compliance provides advice and support about compliance to employees, the Chief Executive Officer and the Board, and continu - ally informs the units concerned about the risks which may arise in the operations due to non-compliance. Handels banken Compliance also monitors the risk level relative to the risk tolerance for compliance risks established by the Board. The function includes the Appointed Officer for Controlling and Reporting Obligations (CFA) according to the applicable money laundering and terrorist financing regulations, and the Data Protection Officer (DPO) according to the applicable regulations on data protection and personal data processing. The Head of Handelsbanken Compliance is appointed by the Board and reports directly and regularly to the Chief Executive Officer on matters regarding compliance in the Group, as well as quarterly to the Risk committee and the Board. This includes the report from the CFA regarding risks linked to financial crime, as well as the report from the DPO on data protection risks. Third line of defence The third line of defence is the Board’s con - trolling body, Handels banken Internal Audit. The Head of Handels banken Internal Audit is appointed by and reports to the Board. Handels banken Internal Audit is tasked with performing an independent, impartial audit of the operations and financial reporting of the Group. This includes assessing, evaluating and verifying processes for risk management, internal control and corporate governance. The assignment is based on a policy estab - lished by the Board and is performed on the basis of a risk-based methodology in accor - dance with internationally accepted standards issued by the Institute of Internal Auditors (IIA). The planned auditing activities are docu - mented every year in an audit plan which is established by the Board. Handels banken Internal Audit’s conclusions, the actions to be taken and their status are reported regularly to the Audit committee and every year to the Board as a whole. The Head of Handels banken Internal Audit is also a recipient of reports made via Handels banken’s separate system for whistleblowing. Handels banken Internal Audit is regularly subject to independent external quality reviews. In addition, the Bank’s external audi - tors perform an annual quality review of the work of Handels banken Internal Audit. Principles for remuneration at Handels banken Handels banken’s principles for remuneration to employees are set out in the Board’s remu - neration policy. The remuneration system must be fit-for-purpose and consistent with the Bank’s business objectives and business culture, and are based on sound, sustainable operations, in which employees observe high ethical standards, good administrative order and regulatory compliance. Remuneration must be designed to enable Handelsbanken to attract, recruit, retain and develop competent employees, while ensuring strong manage - ment succession, thereby contributing to the achievement of the Handelsbanken Group’s corporate goal. In parallel, remuneration must also be on market terms, equitable and pro - mote healthy and efficient management of sustainability risks. In general, Handels banken has low tolerance of risk and holds the opinion that fixed remuneration contributes to healthy operations and risk management. This is, therefore, the main principle. Handels banken HR is responsible for verify - ing that remuneration in Handels banken is compliant with external and internal rules. The independent control functions monitor and analyse the remuneration system and report any material risks and deficiencies to the Board’s Remuneration and Risk committees. More detailed information concerning remu - neration is presented in note G8 on pages 210–216, and in the Bank’s remuneration report which is available at handels banken.com. 48 HandelsbankenAnnual Report 2025 2.3 Introduction Administration report Corporate Governance Report Financial statements Other
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Fixed remuneration The Bank takes a long-term view of its staff’s employment. Remuneration for work per - formed is set individually for each employee, and is paid in the form of a fixed salary, cus - tomary salary benefits and pension. The main principle is that salaries are set in salary reviews between employees and their line manager. These principles have been applied for many years with great success. They mean that managers at all levels partici - pate regularly in the salary process, and take responsibility for the Bank’s salary policy and the growth in their own unit’s staff costs. Salaries are based on factors known in advance: the nature and level of difficulty of the work, competency and skills, work perfor - mance and results achieved, leadership, and being a cultural ambassador for the Bank. Variable remuneration Variable remuneration in the Handels banken Group is vested partly through the Oktogonen profit-sharing scheme and partly through per - formance-based variable remuneration. The Oktogonen profit-sharing scheme covers all employees in the Handels banken Group. Indi - vidual performance-based variable remunera - tion is only applied in operations where such remuneration is an established market practice and where it is deemed necessary to achieve the business goals. Any provision to the Oktogonen profit-sharing scheme is subject to the prerequisite that Handels banken’s corporate goal has been met and following the Board’s overall assessment of the Bank’s performance. Disbursements are mainly made in cash to the employees, or alternatively to a pension plan, a savings plan or a combination of the two alternatives. Performance-based variable remuneration is applied with great caution and to a very limited extent. It is only offered to certain employees in the Capital Markets business area and in mutual fund and asset management opera - tions included in units whose profits derive from commissions or intermediary transactions that take place without the Bank being subject to credit risk, market risk or liquidity risk. Per - formance-based variable remuneration must be designed so as to discourage unsound risk-taking and is not offered to employees who, in their professional roles, have a material impact on the Bank’s risk profile. For more information on performance-based variable remuneration, see note G2 on pages 202–203. The main rule for performance-based variable remuneration is that at least 40 per cent is to be deferred for at least four years. Deferred variable remuneration can be removed or reduced if losses, increased risks or increased expenses arise during the deferment period, or if payment is deemed to be unjustifiable in view of the Bank’s financial situation. Employ - ees may not receive performance-based vari - able remuneration amounting to more than 100 per cent of their fixed remuneration. Guidelines for remuneration to executive officers The shareholders at the AGM decide on guide - lines for remuneration to the Chief Executive Officer, Executive Vice President and other members of the Executive Team as well as any remuneration to Board members over and above the fees set by the shareholders’ meet - ing. Remuneration is paid in the form of cash salary, pension provisions and customary salary benefits and, as for other employees, executive officers employed in the Bank are included in the Oktogonen profit-sharing scheme. The Board decides on the remunera - tion of executive officers. 49Handelsbanken Annual Report 2025 2.3
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Guidelines for remuneration to executive officers of Svenska Handels banken AB These guidelines shall be applied to remu - neration to the Chief Executive Officer, Executive Vice President, and other mem - bers of the Executive Team (below referred to as “executive officers”). The guidelines shall also apply to any remuneration to mem - bers of the Board which is paid in addition to fees for assignment to the Board of the Bank. The guidelines shall be applied to new agreements, and shall not affect remunera - tion previously decided for executive offi - cers. The guidelines are not applicable to remuneration that is decided upon by the annual general meeting. Handels banken’s goal is to have higher profitability than the average of peer com - petitors in its home markets. This goal is mainly to be achieved by having more satis - fied customers and lower costs than its competitors. Handels banken’s business strategy is pre - sented in the Annual Report. To contribute to the Bank’s goal; remuneration must reflect a long-term view of employment at the Bank, and also be in keeping with the Bank’s gener- ally low risk tolerance. Principles for remuneration to employees of Handels banken Handels banken’s principles for remuneration to employees are long-established. In the policy for remuneration in the Handels - banken Group, the Board has established that the Bank’s remuneration system must be consistent with the Bank’s business objectives and business culture, which are based on sound, sustainable operations. In addition, the remuneration policy states that fixed remuneration is fit-for-purpose for sound, sustainable operations, and is there - fore applied as a basic principle. Variable remuneration is applied with great caution. Remuneration for work performed is set indi - vidually for each employee, and is paid in the form of a fixed salary, pension allocation and customary salary benefits (which can take the form of a car allowance, housing associ - ated with the position, disability insurance, household assistance services, etc.). Sala - ries are based on factors known in advance, such as those set out in the remuneration policy. Taking into account the above approach, an employee’s total remuneration must be on market terms and gender-neutral, enabling Handels banken to attract, recruit, retain and develop skilled employees, and ensuring good management succession. Remuneration to executive officers In the preparation of the Board’s proposals for these guidelines, Handels banken’s remu - neration policy and the above principles for remuneration to employees have been taken into account; this contributes to the Bank’s business strategy, long-term interests and sustainability: • The aggregated total remuneration shall be on market terms. • Remuneration is paid in the form of a fixed salary, pension provision and customary benefits. • The executive officers in question are included in the Oktogonen profit-sharing scheme on the same terms as all employ - ees of the Bank. • Pension benefits are defined contribution, may correspond to a maximum of 35 per cent of the annual fixed cash salary, and may be payable in addition to pension plans under collective agreements. Other salary benefits may per year in total corre - spond to a maximum of 35 per cent of the annual fixed salary. • Employment contracts are to apply until further notice or for a fixed term. The period of notice on the part of an execu - tive officer is six months, and on the part of Handels banken a maximum of twelve months. If the Bank terminates the employment contract later than five years after the person becomes one of the Bank’s executive officers, the period of notice is a maximum of twenty-four months. No other termination benefits are paid. Other time periods may apply due to col - lective agreements or labour legislation. Concerning employment conditions that are subject to non-Swedish regulations: with regard to pension benefits and other bene - fits, the relevant adjustments may be made to comply with such mandatory regulations or fixed local practice. In doing this, the over - all aims of these guidelines shall be fulfilled as far as possible. Fees to Board members Members of the Board who are elected by the general meeting shall in special circum - stances be able to be compensated for ser - vices provided within their respective area of competence (including assignments to the board of another group company) which do not constitute services to the Board of the Bank. Such duties of service shall be handled in accordance with applicable internal rules and by due consideration of possible con - flicts of interest. These services shall be compensated for by market-based remuner - ation. Information about any remuneration for such services shall be included in the annual report and the remuneration report. Decision process The Board has set up a remuneration com - mittee. The committee’s tasks include pre - paring the Board’s proposals concerning guidelines for remuneration to executive officers. When the need for material changes arises – and at least every four years – the Board shall draw up a proposal for new guidelines and present it for a reso - lution at the annual general meeting. The guidelines shall apply until new guidelines have been adopted by the annual general meeting. The remuneration committee must also monitor and evaluate the application of the guidelines for remuneration for executive officers, as well as the prevailing structures and levels of remuneration at the Bank. All members of the Remuneration committee are independent of the Bank and its man - agement. The Chief Executive Officer also attends the committee’s meetings, although not when the committee is discussing and deciding upon remuneration-related matters that concern the Chief Executive Officer himself/herself. Deviation from the guidelines The Board may decide, temporarily, to deviate partly or wholly from the guidelines, if there are particular reasons for this in an individual case, and a deviation is necessary to satisfy the Bank’s long-term interests and sustain - ability, or to ensure the Bank’s financial via - bility. As stated above, preparing the Board’s resolutions in matters of remuneration is part of the remuneration committee’s tasks, and this includes decisions regarding deviations from the guidelines. The current guidelines adopted by the AGM on 20 March 2024 are presented below. 50 HandelsbankenAnnual Report 2025 2.3 Introduction Administration report Corporate Governance Report Financial statements Other
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The Board’s report on internal control over financial reporting Handels banken’s process for internal control over the financial reporting is based on the framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), which covers the follow - ing components: control environment, risk assessment, control activities, information and communication, and monitoring activities. The process was designed to ensure compliance with the Bank’s principles for financial reporting and internal control, and to ensure that the financial reporting has been prepared pursuant to the law, applicable accounting standards, and other requirements related to listed companies. Control environment To ensure reliable financial reporting, Handels - banken’s internal control process for financial reporting is based on the control environment. The control environment is fundamental to other components of the process and has been described earlier in the Corporate Gov - ernance Report: i.e. organisational structure, division of responsibilities and steering docu - ments. An important aspect of the control environment is that decision-making channels, powers of authority and responsibilities are clearly defined and communicated, and that steering documents established by the Board and Chief Executive Officer provide clear guidance and are complied with. Risk assessment Risk assessment aims to identify, manage and follow up risks with the potential to affect the financial reporting. Handels banken Finance is responsible for performing a risk assessment at Group level, in order to identify units for which the need for internal control is assessed as being of material significance to minimise the risk of material error in the financial report - ing. Units that Handels banken Finance deems must be covered by the process are required to draw up general documentation of their pro - cesses for internal control over the financial reporting. This general documentation must describe the processes that generate the unit’s most significant balance sheet and profit and loss items, risks, procedures for preparing the accounts, and identified control activities. The identified control activities are carried out each quarter to ensure that the financial reporting is correct, in all material respects. The self-evaluations carried out annually within the parent company and subsidiaries are an essential part of the Bank’s total risk assessment. Risks in the financial reporting are part of this total analysis. Other aspects of Handels banken’s risk management are detailed in note G2 on pages 164–206 and in the Bank’s Pillar 3 report. Control activities Various control activities are incorporated into the entire financial reporting process. Handels banken Finance bears the overall responsibility for the financial reporting, the consolidated accounts and consolidated financial reports, and for financial and adminis - trative control systems. The unit’s responsi - bilities also include the Group’s liquidity, the internal bank, own funds, tax analysis and Group- wide reporting to public authorities. Handels banken Finance has the overall responsibility for ensuring that a fit-for-purpose process is in place for reporting on internal control over the financial reporting. For the units that Handels banken Finance has deemed must be covered by the process for internal control over the financial reporting, control activities are identified which are aimed at pre - venting, detecting and correcting errors and deviations in the financial reporting. Handels - banken Finance has established a number of financial control activities linked to the gen - eral ledger and the process of preparing the accounts, and all finance departments within the parent company and subsidiaries are required to carry out in conjunction with every quarterly closing of accounts. These include, for example, the reconciliation and verification of reported amounts, and analyses of income statements and balance sheets. In addition to financial control activities, units selected by Handels banken Finance are responsible for identifying and evaluating operational control activities. These include controls performed in, for example, business processes and systems, which are assessed as being of material signif - icance to minimise the risk of material error in the financial reporting. Heads of accounting and control at the respective units are respon - sible for ensuring that the control activities in the financial reporting for their unit are fit-for- purpose – i.e., that they are designed to pre - vent, detect and correct errors and deviations – and are in compliance with steering docu - ments and instructions. At each quarterly closing of the accounts, the units certify to Handels banken Finance that the control activi - ties have been carried out, and that their bal - ance sheets and income statements are correct. Based on Handels banken Finance’s follow-up of the units’ reports, the Chief Financial Officer reports the status of the internal control of financial reporting to the Audit committee at each quarterly closing of accounts. The Chief Financial Officer is responsible for setting up and maintaining a Valuation commit - tee. The committee’s role is to support the decision-making processes for valuation and reporting matters. The committee deals with the valuation of financial assets and liabilities, including derivatives measured at fair value and also financial guarantees. The valuations refer to both own holdings and holdings on behalf of others. The committee must ensure that the valuation complies with external regu - lations, steering documents and current market practices. High information security is a precondition for good internal control over the financial report - ing. Thus there are regulations and steering documents to ensure availability, accuracy, confidentiality and traceability of information in the business systems. Information and communication The Bank has information and communication paths with the aim of achieving completeness and correctness in its financial reports. Handels banken Finance must ensure that the staff concerned are aware of and have access to instructions of significance to the financial reporting. The system used for financial reporting encompasses the entire Group. Monitoring activities The respective accounting and financial departments at the Bank monitor and verify compliance with applicable rules in the form of internal steering documents which affect the financial reporting, as the responsibility for internal control is an integral part of the mana - gerial responsibility. Handels banken Risk Control is responsible for identifying, checking and reporting risks of errors in the Bank’s assumptions and assess - ments that form the basis of the Bank’s finan - cial reporting. Handels banken Risk Control is described in more detail on page 48. Handels banken Internal Audit is assigned to examine internal governance and control, and to evaluate the reliability of the Group’s finan - cial reporting. Handels banken Internal Audit is described in more detail on page 48. As part of the quality control work for finan - cial reporting, the Board has set up an Audit committee. Among other responsibilities, the committee processes critical accounting matters and the financial reports produced by the Bank. The committee also supervises the effectiveness of the internal control, internal audit and the process for internal control over the financial reporting. The Audit committee is described in more detail on pages 45–46. The Group’s information and communica - tion paths are monitored continually to ensure that they are fit-for-purpose for the financial reporting. 51Handelsbanken Annual Report 2025 2.3
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Board Board Elected by the AGM 1) As of 19 February 2026. 2) The presented remuneration to the Board is resolved on by the AGM and relates to the annual remuneration between the 2025 AGM and the 2026 AGM. Total remuneration to the Board amounted to SEK 20,595,000. 3) Became a member of the committee in March 2025. 4) Became a Board member and a member of the Audit committee in March 2025. 5) Refers to indirect shareholdings in Handels banken via the Oktogonen profit-sharing foundation. Name Pär Boman Chairman Fredrik Lundberg Deputy Chairman Hélène Barnekow Board member Stina Bergfors Board member Hans Biörck Board member Year elected 2006 2002 2022 2021 2018 Year of birth 1961 1951 1964 1972 1951 Nationality Swedish Swedish Swedish Swedish Swedish Position and significant board assignments¹ Chairman of AB Volvo •• Deputy Chairman of AB Industrivärden •• Board member of Skanska AB •• Chairman of Pensionskassan SHB Tjänstepensionsförening and the Handels banken Research Foundations. President and CEO of L E Lundbergföretagen AB •• Chairman of Holmen AB, Hufvudstaden AB and AB Industrivärden •• Board member of L E Lundbergföretagen AB. Chairman of Mindler AB and Storytel AB •• Board member of Investment AB Latour and GN Store Nord A/S. Board member of Tele2 AB and Prisjakt Sverige Holding AB. Chairman of Skanska AB. Background 2006–2015 President and Chief Executive Officer of Handels banken. President of L E Lundberg - företagen AB since 1981 •• Active at Lundbergs since 1977. 2018–2022 CEO of Microsoft Sweden •• 2014–2018 CEO and various management roles, Telia Sverige •• 2009–2014 Various market leader roles, EMC Corporation (UK and USA) •• 2001–2009 Various market leader roles, etc., Sony Ericsson Mobile Communica - tions (USA, UK, Sweden) •• 1999–2001 Market Leader, Novo Nordisk (Denmark) •• 1995–1999 Various manage - ment roles, Ericsson •• 1993– 1995 Market leader, Microsoft Corporation (Malta) •• 1991– 1993 Project manager/consul - tant, DLF Sweden. 2013–2018 Co-founder and CEO, other roles, United Screens •• 2008–2013 Country Director, Google and Youtube •• 2004–2007 CEO and other roles, Carat •• 2000–2004 Director, other roles, OMD Worldwide •• 1999– 1999 Account Manager, TV3 Sweden, Modern Times Group. 2001–2011 Skanska, Executive Vice President and CFO •• 1998– 2001 Autoliv, CFO •• 1997 –1998 Self-employed •• 1977 –1997 Various positions in Esselte. Education Engineer and Business/ Economics degree, Dr. h.c. econ. Graduate Engineer and Gradu - ate in Economics/Business Administration, Dr. h.c. mult. Graduate in Economics/ Business Administration. Graduate in economics/ administration, Dr. h.c. phil. Graduate in Economics/ Business Administration. Remuneration 2025² SEK 5,940,000 SEK 1,700,000 SEK 1,375,000 SEK 1,515,000 SEK 2,615,000 Credit committee participation 10/10 10/10 - 10/10 10/10 Audit committee participation 7/7 - - - 7/7 Remuneration committee participation 8/8 - - 6/83 8/8 Risk committee participation 7/7 - 6/7 - 7/7 Board meetings participation 12/12 12/12 11/12 12/12 12/12 Own shareholdings and those of related parties, 31 December 2025 189,348, of which 150,000 class A shares in direct holdings and 39,348 in indirect holdings⁵ 89,275,000 class A shares 1,000 class A shares 7,200 class A shares 10,000 class A shares Independent/ not independent Independent of the Bank and its management. Not independent of major shareholders (Deputy Chair - man of AB Industrivärden). Independent of the Bank and its management. Not independent of major shareholders (Chairman of AB Industrivärden). Independent of the Bank, its management and major shareholders. Independent of the Bank, its management and major shareholders. Independent of the Bank, its management and major shareholders. 52 HandelsbankenAnnual Report 2025 2.3 Introduction Administration report Corporate Governance Report Financial statements Other
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Name Kerstin Hessius Board member Anders Jernhall Board member Louise Lindh Board member Ulf Riese Board member Year elected 2016 2025 2024 2020 Year of birth 1958 1970 1979 1959 Nationality Swedish Swedish Swedish Swedish Position and significant board assignments¹ Chairman of Hemsö Fastighets AB •• Board member of Lumera AB and the Uppsala University Founda - tions Management, economic association. Deputy CEO of Holmen AB •• Board member of Indutrade AB and L E Lundberg Kapitalförvalt - ning AB Chairman of J2L Holding AB and Fastighets AB L E Lundberg •• Board member of L E Lundberg - företagen AB, Hufvudstaden AB and Holmen AB and the Handels banken Research Foundations. Deputy Chairman of the Handels banken Research Foundations. Background 2004–2022 AP3 Third National Swedish Pension Fund, CEO •• 2001–2004 Stockholm Stock Exchange, CEO •• 1999– 2000 Sveriges Riksbank, Deputy Governor of the central bank •• 1998 Danske Bank, CEO, Asset Management •• 1990–1997 ABN Amro Bank/Alfred Berg •• 1989– 1990 Finanstidningen •• 1986–1989 Swedish National Debt Office •• 1985–1986 Sveriges Riksbank (central bank) •• 1984– 1985 Swed- ish Agency for Public Manage - ment. 2025–Deputy CEO, Holmen AB 2014–2025 • • Deputy CEO and CFO, Holmen AB • • 2010–2014 CFO, Holmen AB • • 1997 –2010 Various positions at Homlen AB, including Group Controller and Group Treasurer •• 1994–1997 Citibank 2017 –2024 President and CEO, Fastighets AB L E Lundberg •• 2005–2017 Various positions, including assistant to the CEO, Executive Vice President and Regional Manager, Fastighets AB L E Lundberg •• 2003–2005 audit assistant, KPMG. Various positions at Handels - banken •• 2016–2018 Senior Advisor •• 2007 –2016 CFO •• 2004–2007 Head of Handels banken Asset Management •• 2004 Executive Vice President of Handels banken Education Graduate in Economics/ Business Administration. Graduate in Economics/ Business Administration. Graduate in Economics/ Business Administration. Graduate in Economics/ Business Administration. Remuneration 2025² SEK 2,075,000 SEK 1,375,000 SEK 1,375,000 SEK 2,625,000 Credit committee participation 10/10 - 10/10 10/10 Audit committee participation - 4/74 - 7/7 Remuneration committee participation - - - - Risk committee participation 7/7 - - 7/7 Board meetings participation 12/12 9/124 12/12 12/12 Own shareholdings and those of related parties, 31 December 2025 47,213 class A shares 6,000 class A shares 3,359,000 class A shares 200,000 class A shares Independent/ not independent Independent of the Bank, its management and major shareholders. Independent of the Bank, its management and major shareholders. Independent of the Bank, its management and major shareholders. Independent of the Bank, its management and major shareholders. Board, cont. 53Handelsbanken Annual Report 2025 2.3
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Name Anna Hjelmberg Employee representative Lena Renström Employee representative Stefan Henricson Employee representative, Deputy member Mikael Almvret Employee representative, Deputy member Year elected 2020 2020 2020 2023 Year of birth 1969 1965 1970 1969 Nationality Swedish Swedish Swedish Swedish Position and significant board assignments¹ Chair of Finansförbundet’s Handels banken union club •• Board member of Pensionskas - san SHB Tjänstepensionsförening. Chair of Finansförbundet’s Handels banken SE-union club. Board member of Finans - förbundet’s Handels banken SE-union club. Chair of Akademikerföreningen (Association for graduate profes - sionals) at Handels banken. Background Insurance officer at Handels - banken Liv, union roles in the Handels banken Group. Advisory services in Handels - banken’s branch operations. Managerial and advisory services at branches and regional head offices at Handels banken. Specialist, System Owner and Business and Operations devel - oper within Anti-Money Launder - ing, International operations, and Trading. Education Economics Programme at upper secondary school. Graduate in Economics/ Business Administration. Economics Programme at upper secondary school. Graduate in Economics/ Business Administration. Remuneration 2025² SEK 0 SEK 0 SEK 0 SEK 0 Credit committee participation - - - - Audit committee participation - - - - Remuneration committee participation - - - - Risk committee participation - - - - Board meetings participation 12/12 12/12 12/12 11/12 Own shareholdings and those of related parties, 31 December 2025 0 0 0 0 Independent/ not independent Not independent of the Bank and its management (employee). Independent of major share holders. Not independent of the Bank and its management (employee). Independent of major share holders. Not independent of the Bank and its management (employee). Independent of major share holders. Not independent of the Bank and its management (employee). Independent of major share holders. Former member of the Board Jon Fredrik Baksaas³ Year elected: 2003 Born: 1954 Nationality: Norwegian Position and significant board assignments before stepping down Chairman of DNV Group AS, Board member of Telefonaktiebolaget LM Ericsson and Scale Leap Capital AS Background: 2008–2016 GSM Association member, Chairman 2013–2016 2002–2015 Telenor Group, President and CEO, 1989–2002 Telenor Group, various positions within finance, financial control and management, 1988–1989 Aker AS, 1985–1988 Stolt Nielsen Seaway AS, 1979–1985 Det Norske Veritas, Norway and Japan. Education Graduate in Economics/Business Administration and PED from IMD. Remuneration: - Credit committee participation: 1 of 10 Audit committee participation: 3 of 7 Remuneration committee participation: 1 of 8 Board meetings participation: 3 of 12 Own shareholdings and those of related parties, 31 December 2024: 3,800 class A shares Independent/not independent: Independent of the Bank, its management and major shareholders. 1) As of 19 February 2026. 2) The presented remuneration to the Board is resolved on by the AGM and relates to the annual remuneration between the 2025 AGM and the 2026 AGM. Total remuneration to the Board amounted to SEK 20,595,000. 3) Board member until the Annual General Meeting held on 26 March 2025 and the information provided refers to Jon Fredrik Baksaas’s time serving on the Board in 2025. Board, cont. 54 HandelsbankenAnnual Report 2025 2.3 Introduction Administration report Corporate Governance Report Financial statements Other
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Executive Team Executive Team Executive Team¹ Name Position Year of birth Employed Shareholdings² Mårten Bjurman³ Chief Financial Officer 1977 2012⁴ Shareholdings 19,280, of which 10,811 class A shares in direct holdings and 8,469 in indirect holdings Pernilla Eldestrand Head of Handels banken Communications 1969 1989 Shareholdings 3,000, of which 3,000 class A shares in direct holdings Michael Green Chief Executive Officer and President 1966 1994 Shareholdings 124,118, of which 95,000 class A shares in direct holdings and 29,118 in indirect holdings David Haqvinsson Head of Handels banken Credit 1978 1999 Shareholdings 13,562, of which 13,562 in indirect holdings Maria Hedin Head of Handels banken Risk Control 1964 2010 Shareholdings 9,639, of which 2,395 class A shares and 246 class B shares in direct holdings and 6,998 in indirect holdings Dan Lindwall Responsible for subsidiaries and group-wide matters and Executive Vice President ⁵ 1965 2000 Shareholdings 9,067, of which 5,000 class A shares in direct holdings and 4,067 in indirect holdings Cecilia Lundin Head of Handels banken HR 1970 2023 Shareholdings 4,055, of which 4,000 class A shares and 55 class B shares in direct holdings Anton Romare Keller Head of Handels banken IT 1982 2007 Shareholdings 16,293, of which 5,272 class A shares in direct holdings and 11,021 in indirect holdings 1) The table shows the Executive Team as per 19 February 2026. Catharina Belfrage Sahlstrand left the Executive Team on 21 January 2025 when she stepped down from her position as Chief Sustainability Officer. Carl Cederschiöld left the Executive Team on 30 August 2025 when he stepped down from his position as Chief Financial Officer and Executive Vice President. Per Beckman left the Executive Team on 31 December 2025 when he stepped down from his position as Head of Handels banken Credit and Executive Vice President. 2) Direct shareholdings refer to own and related parties’ shareholdings in Handels banken as at 31 December 2025. Indirect shareholdings refers to shares in Handels banken through the Oktogonen profit-sharing foundation on 31 December 2025. 3) Took office on 1 September 2025. 4) Mårten Bjurman was also employed at Handels banken in 2005–2009. 5) Became Executive Vice President on 1 January 2026. 55Handelsbanken Annual Report 2025 2.3
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2.4 Sustainability statement Sustainability statement 2.4 General information 58 ESRS 2 General disclosures 59 Datapoints related to other EU legislation 76 Environmental information 80 ESRS E1 Climate change 81 Reporting in accordance with EU Taxonomy 91 Social information 94 ESRS S1 Own workforce 95 ESRS S4 Consumers and end-users 101 Entity specific – Contribute to Society 104 Governance information 106 ESRS G1 Business conduct 107 Entity specific – Counteract financial crime 110 Entity specific – Financial stability 112 EU Taxonomy – continued 114 57Handelsbanken Annual Report 2025 2.4
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2.4 General information General information Disclosure Requirements ESRS 2 General disclosures Basis for preparation 59 BP-1: General basis for preparation of sustainability statement 59 BP-2: Disclosures in relation to specific circumstances 59 Governance 59 GOV-1: The role of the administrative, management and supervisory bodies 59 GOV-2: Information provided to and sustainability matters addressed by Handels banken’s administrative, management and supervisory bodies 61 GOV-3: Integration of sustainability-related performance in incentive schemes 61 GOV-4: Statement on due diligence 62 GOV-5: Risk management and internal controls over sustainability reporting 62 Strategy 62 SBM-1: Strategy, business model and value chain 62 SBM-2: Interests and views of stakeholders 65 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 66 Impact, risk and opportunity management 71 IRO-1: Description of the processes to identify and assess material impacts, risks and opportunities 71 ESRS 2 IRO-1 E1: Description of the processes to identify and assess material climate-related impacts, risks and opportunities 72 IRO-2: Disclosure requirements in ESRS covered by Handels banken’s sustainability statement 75 Datapoints related to other EU legislation Datapoints related to other EU legislation 76 58 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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ESRS 2 General disclosures This section presents the basis on which the Bank’s sustainability work is structured, and the governance processes and strategies that support the Bank’s role in the financial market. Sustainability at the Bank is integrated into all parts of the operations, including lending, asset management and advisory services. It is governed by Handels banken’s overarching principles of a long-term approach, trust in the in- dividual, local connection and low risk tolerance. ESRS 2 General disclosures Basis for preparation BP-1: General basis for preparation of sustainability statement Handels banken’s 2025 sustainability state - ment has been prepared in accordance with the European Sustainability Reporting Stan - dards (ESRS) and comprises the Bank’s statu - tory sustainability statement in accordance with the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559). The statement also includes Taxonomy reporting in accordance with the EU Taxonomy Regulation (EU) 2020/852. The statement was prepared at Group level by applying the same consolidation principles as the financial statements. Handels banken Finans AB, Stadshypotek AB, Handels banken Fonder AB, Ecster AB and Handels banken Liv Försäkrings AB are included in the Group and make reference to the Group’s sustainability statement. It covers the entire value chain, up - stream and downstream with associated areas and activities, as well as Handels banken’s own operations. A more detailed description of the value chain is provided in SBM-1 on page 63. No information on intellectual property rights, know-how or innovation results, future development or ongoing negotiations has been omitted. BP-2: Disclosures in relation to specific circumstances The provisions on sustainability reporting have been amended as a result of the introduction of the EU Corporate Social Responsibility Directive (CSRD), which means that Handels - banken’s 2025 sustainability statement is presented in its entirety in the administration report. This differs from the previous year, when the Report was presented separately but otherwise in accordance with the ESRS. An updated double materiality assessment was carried out during the year. The topical standards ESRS E4 Biodiversity and ecosys - tems and ESRS S2 Workers in the value chain did not meet the threshold for materiality and have therefore been excluded from the report - ing. Reporting on suppliers, which was previ - ously disclosed under ESRS S2, is still included in the statement under ESRS G1 Business Conduct, as the sub-topic Management of relationships with suppliers. The following changes to impacts, risks and opportunities have taken place: Financing/investing in projects with high cli - mate risk – ESRS E1 (previously potential neg - ative impact) and Attracting talent – ESRS G1 (previously an opportunity) have been excluded. Previously reported positive impacts have been reclassified to mitigation measures under neg - ative impacts. This was performed for Active and dynamic security work (ESRS S4), Contri - bution to counteract financial crime in society (entity specific matter), Counteracting corrup - tion and bribery, and Business relationships with suppliers who fail to address sustainability issues (ESRS G1). Furthermore, the following types of impact were reclassified between actual and potential impacts: Energy transition (ESRS E1), Diversity and inclusion at the work - place (ESRS S1) and Risk of incidents related to financial crime (entity specific matter). The time horizons used follow ESRS defini - tions. Sources of uncertainty in the use of esti - mates related to the calculation of Scope 1, 2 and 3 GHG emissions are presented in section E1-6 on page 85. Changes to metrics and tar - gets are described under each topical stan - dard. An error regarding the pay gap for 2024 in the previous reporting was corrected. For more information, see S1-5 on page 98 and S1-16 on page 100. Information related to other EU legislation is presented in the table Relationship to other EU legislation on pages 76–79. The Bank has applied the phase-in provisions for the disclo - sure requirements for ESRS E1-9. The following information is incorporated by reference to other parts of the Annual Report: Contribute to society (ESRS 2 MDR-M), customer satisfac - tion, see the Goals and goal achievement section on page 16. Financial stability (ESRS 2 MDR-M), average credit loss ratio, see the Goals and goal achievement section on page 17; Common equity tier 1 ratio, pages 17, 24; Tier 1 ratio, page 24; Liquidity Coverage Ratio (LCR), pages 20, 195; and Net Stable Funding Ratio (NSFR), see note G2 Risk and capital management on page 195. Governance GOV-1: The role of the administrative, management and supervisory bodies The Board is Handels banken’s highest admin - istrative body and its responsibilities include adopting the overall goals and strategy of the Bank as well as policies and other steering documents for the operations. In 2025, the Board was composed of nine elected mem - bers as well as two members and two deputy members representing the employees. Women comprised 44 per cent of the elected members and 78 per cent of the independent members. All Board members are non-executive. Overall, the Board has broad and extensive experience from senior positions in banking and business, which ensures a sound under - standing of the Bank’s strategic and opera - tional challenges, including sustainability mat - ters. The Board also has access to relevant sustainability expertise through the Bank’s specialists. This provides a basis for making well-informed decisions on sustainability mat - ters. A more detailed description of corporate governance and the composition of the Board is provided in the Corporate Governance Report on pages 42–55. The Board issues overarching policies that must be applied throughout the entire opera - tions of the Handels banken Group, including to subsidiaries, where applicable, unless binding regulations outside Sweden, or relating to subsidiaries, make deviations necessary. Any such deviations shall be coordinated with the responsible Group-level entity. These policies General information 59Handelsbanken Annual Report 2025 2.4
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serve as a framework for management and employee work processes, and are reviewed annually. Where relevant, stakeholder interests are taken into account during such reviews. Handels banken’s credit policy stipulates the Bank’s low risk tolerance and risk strategy for credit risk. The policy clarifies that sustain - ability risks, including related environmental, climate, social and governance factors, are to be integrated into the credit assessment. Lending must be responsible, meet high ethi - cal standards and also be based on the cus - tomer needs. Risk management is supplemented with the policy for risk control , which stipulates the principles for the independent monitoring and control of the Group’s risk management. The policy emphasises that all material risks to which the Group is exposed, or can be expected to be exposed to, are to be identi - fied, managed and followed up systematically and transparently via the internal control func - tions of the business units and the Bank. The policy for ethical standards states that all Handels banken employees must act in a manner that upholds confidence in Handels - banken and all operations are to be character - ised by a high level of ethical standards. Dis - crimination, harassment and victimisation are not accepted. The policy also describes how to report suspected irregularities. Handels - banken has an established whistleblower sys - tem that allows reports to be made anony - mously to protect the identity of reporting individuals. Handels banken’s policy against corruption clearly states that corruption is not accepted in any form. The policy covers all types of cor - rupt behaviour, including bribery, breach of trust and improper use of one’s position to gain advantages for oneself or others. The policy applies to all employees and other parties representing the Bank. The Bank follows the recommendations of the Code on Business Conduct and applicable legislation regarding bribery, gifts, entertain - ment and events. Products and services are developed and modified in accordance with the policy for products and services through a common approval process that ensures that relevant risks and sustainability risks are considered. The policy for sustainability sets the direc - tion for Handels banken’s sustainability work and applies to the entire Group. The policy stipulates that sustainability is to be integrated into all operations, including customer meet - ings, product development, risk management and operations. The Bank is to support cus - tomers in their transition, reduce its own envi - ronmental and climate impact, and promote human rights, gender equality, diversity and an inclusive culture. Sustainability risks are to be managed as part of the overall risk assessment. The policy on governance and steering documents defines the organisation and the division of responsibilities that form the basis of corporate governance at the Group. The policy provides a framework for responsible, risk-conscious and sustainable operations and helps to create value for customers, share - holders and other stakeholders. The Bank’s Chief Executive Officer (CEO) issues guidelines and instructions that com - plement the Board’s policies. These include, Selection of steering documents Steering documents Established by Public Climate change Own workforce Consumers and end-users Contribute to society Business conduct Counteract financial crime Financial stability Credit policy for the Handels banken Group The Board No Policy for remuneration at the Handels banken Group The Board No Policy for ethical standards at the Handelsbanken Group The Board Yes Policy for the Handels banken Group on actions against financial crime The Board Yes Policy for management of conflicts of interest at the Handels banken Group The Board Yes Policy for sustainability at the Handels banken Group The Board Yes Policy for complaints management in the Handels banken Group The Board No Policy for operational risk in the Handels banken Group The Board No Policy against corruption The Board Yes Handels banken’s guidelines – Environment and climate change CEO Yes Human rights and working conditions – Handels banken’s guidelines CEO Yes Guidelines for work environment at the Handels banken Group CEO Yes Guidelines for supplier arrangements in the Handels banken Group CEO No Guidelines for security and data protection in the Handels banken Group CEO No Guidelines for actions against financial crime at the Handels banken Group CEO No Policy on governance and steering documents The Board No Financial policy for the Handels banken Group The Board No Capital policy for the Handels banken Group The Board No 60 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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inter alia, actions against financial crime and guidelines on human rights, the environment and climate change. Taken together, the policies and guidelines demonstrate how the responsibilities of Board’s and management’s for managing impacts, risks and opportunities are integrated into Handels banken’s governance structure. A cohesive framework ensures that clear and effective processes are in place to monitor, manage and report risks and opportunities in the entire organisation. A summary of the Bank’s steering documents can be found on handels banken.com. Sustainability activities at the Bank are decentralised and are conducted close to the business. The Bank’s operating sustainability manager leads the day-to-day work of the Group sustainability department and reports to the Head of Handelsbanken Savings and Financing, who is also responsible for sustain - ability at the Group and reports to the CEO and, when needed, to the Board. The Head of Handelsbanken Savings and Financing is responsible for ensuring that sustainability work is conducted in accordance with internal and external rules and that identified sustain - ability risks, relevant risk mitigation and set tar - gets are managed in the operations. The Head of Handels banken Finance (CFO), who is a member of the Bank’s Executive Team, is responsible for sustaina bility reporting. Sus - tainability matters are addressed in the Board primarily through the Audit committee, for example, when discussing interim reports, the annual accounts and the double materiality assessment (including the material impacts, risks and opportunities described in section SBM-3 on pages 66–70). The Head of Handelsbanken Savings and Financing is Chair of Handels banken’s Sus - tainability committee, with operational respon - sibility delegated to the operating sustainability manager. The role of the committee, which was established in 2010, is to analyse and, when necessary, coordinate the Group’s sustainabil - ity efforts, and also identify and address potential risks and business opportunities. The committee is made up of decision-makers from the business operations and central functions, and meets at least three times a year. Matters discussed in 2025 include the change in the Bank’s governance of sustainability targets, updates related to the CSRD, and the double materiality assessment. Updates to the Bank’s Green Bond Framework were also discussed. The Head of Handelsbanken Savings and Financing is also responsible for the Green Finance committee (GFC), and has delegated operational responsibility to the operating sus - tainability manager. The committee ensures that green assets are consistent with the Bank’s Green Bond Framework and is respon - sible for developing this framework further. The management of sustainability matters and sustainability risks is integrated into the Bank’s risk management and follows a three-line-of- defence model. This is further described in the Corporate Governance Report on pages 42–55, as well as in the Sustainability risks section in note G2 on pages 203–205 and the ESG Prudential disclosures section in the Bank’s Pillar 3 report. GOV-2: Information provided to and sustainability matters addressed by Handels banken’s administrative, management and supervisory bodies Reporting on the Bank’s overall sustainability work is conducted quarterly to the Audit com - mittee and the Board as part of preparing the interim reports. The reports are presented by the Bank’s CFO. The Board considers impacts, risks and opportunities primarily through the steering documents issued by the Board, including on overall strategy and risk manage - ment. These documents set out the funda - mental principles of the Bank’s operations and the framework for its sustainability work, including how the Bank manages sustainabili - ty-related risks and opportunities. The steering documents are complemented by internal instructions and guidelines that regulate how sustainability work is to be conducted in practice. During 2025, the Board and relevant com - mittees revised several policies, including the policy for sustainability, and addressed changes to the Bank’s sustainability organisa - tion and internal sustainability reporting. The Audit committee and the Board also addressed the transition to sustainability reporting in accordance with the ESRS, and the updated double materiality assessment as well as the material impacts, risks and opportunities pre - sented in section SBM-3 on pages 66–70. These constitute both an alignment with ESRS and part of the implementation of the Board’s 2024 decision to further integrate the Bank’s sustainability activities into its core business. GOV-3: Integration of sustainability- related performance in incentive schemes Handels banken has consistently maintained a low tolerance of risk for many decades and considers fixed remuneration to contribute to sound operations and therefore to be applied as the main principle. As part of an integrated overall approach to long-term sustainability, the Bank’s executive officers are paid fixed remuneration together with the possibility of further remuneration only from the Oktogonen collective profit-sharing scheme. The Board is not part of the Oktogonen scheme and does not receive any other variable remuneration. The aim of the Oktogonen scheme is to reward long-term sustainable and stable operations. It is based on the Bank’s overall performance, and is not related to any individual sales incen - tives. The Bank’s remuneration policy empha - sises the importance of sustainability by align - ing remuneration to the Bank’s business strategy and the policy, which are designed to ensure that sustainability aspects are an inte - gral part of the Bank’s business model. Remu - neration must also be structured in a manner that promotes healthy and efficient management of sustainability risks. Sustainability- related performance is integrated into Oktogonen in the form of the scheme rewarding long-term value creation, a responsible risk level and customer benefit – factors that are central to sustainability at the Bank, rather than being linked to specific sustainability targets. Provi - sions are made to Oktogonen on the condition that Handels banken’s corporate goal of having higher profitability than the average of peer competitors in its home markets has been met, which also reflects the Bank’s view of long- term and sustainable business (customer ben - efit, effective use of resources and financial stability). The main methods for achieving this goal are by having more satisfied customers and lower costs than its competitors. For more information on how the Bank measures cus - tomer satisfaction, see Metrics and targets in the section Contribute to society on page 105. Handels banken has always taken a restric - tive approach to variable remuneration, where - by the absence of centrally set sales targets, volume targets or budgets means that advice in customer meetings is based entirely on the customer’s needs. Handels banken’s approach to variable remuneration can be viewed as a sustainability aspect since personal financial incentives, which risk influencing the advice given to customers, are not applied. This reduces the risk of short-term decisions and helps to create long-term sustainable value, thus benefiting both the Bank and society. The decision-making process for the remu - neration system is carried out through the Bank’s Remuneration committee, which is responsible for preparing proposals for guide - lines for remuneration to executive officers. When the need for material changes arises – and at least every four years – the Board shall draw up a proposal for new guidelines and present it for a resolution at the annual general meeting. The committee also evaluates com - pliance with the guidelines and reviews remu - neration structures and levels. If necessary, the Board of Directors may deviate from the guidelines in order to safeguard the long-term interests of Handels banken. Read more about Handels banken’s approach to variable remuneration and the Bank’s remuneration policy in the Corporate 61Handelsbanken Annual Report 2025 2.4
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Governance Report on page 48 and in Handels banken’s Remuneration Report on handels banken.com. GOV-4: Statement on due diligence Due diligence at Handels banken is integrated into the relevant parts of the business. The Due diligence table refers to the disclosure requirements that can be linked to this work and the location of the information in the sus - tainability statement. Due diligence Core elements of due diligence Disclosure Requirements Page a) Embedding due diligence in governance, strategy and business model ESRS 2 GOV-2 61 ESRS 2 GOV-3 61 ESRS 2 SBM-3 66 b) Engaging with affected stakeholders ESRS 2 GOV-1 59–61 ESRS 2 SBM-2 65 ESRS 2 IRO-1 71–72 Environmental: 81–83 Social: 95–96 Governance: 107–108 c) Identifying and assessing adverse impacts for the environment and people ESRS 2 IRO-1 71–72 ESRS 2 IRO-1 E1 72–75 ESRS 2 SBM-3 66 d) Taking action to address negative impacts on people and the environment Environmental: 60, 83–84 Social: 60, 97–98, 102–104 Governance: 108, 110, 112–113 e) Tracking the effectiveness of these efforts Environmental: 84–85 Social: 98, 102–103, 105 Governance: 108–111, 113 GOV-5: Risk management and internal controls over sustainability reporting Handels banken Finance has overall responsi - bility for sustainability reporting, including ensuring that effective processes are in place to manage the risks related to the quality of the reporting. The Bank strengthened its sustain - ability reporting processes in connection with the transition to ESRS reporting, for example, by clearly dividing responsibilities, increasing traceability requirements and enhancing inter - nal controls of reported information. For certain parts of the reporting, including Taxonomy reporting, additional control procedures have been introduced, including duality requirements for reconciling information from systems with established control functions. The internal control process for sustainability reporting is based on defined steering documents, respon- si bilities and decision-making channels. The Bank’s internal control over sustainability reporting is based on the process applied to financial reporting under the COSO framework, which is gradually being expanded to include the sustainability statement. The aim of risk assessments and control activities is to reduce the risk of significant errors, particularly opera - tional errors when preparing data. The out - come of the risk assessments and controls are reported by the CFO to the Board’s Audit com - mittee in connection with the annual accounts. Strategy SBM-1: Strategy, business model and value chain Handels banken creates long-term value by supporting its customers’ transition to a sus - tainable society and by assuming responsibility for the Bank’s own environmental, social and economic impacts. The greatest opportunity to contribute lies in the customer meeting, where the Bank, through advice as well as responsible financing and asset management, can impact both risks and opportunities. Sus - tainability activities are conducted in five areas: business conduct, advisory services, financ - ing, asset management, and creating and shar - ing knowledge in the local community. Handels banken’s overall goal is to achieve higher profitability than peer competitors in its home markets; a goal that is achieved by having satisfied customers and lower costs. Sustain - ability is an integral part of both of these factors. Advisory services and products that support customers in their transition increase customer satisfaction, while integrating sustainability risks into decision-making reduces risks and costs over time, for example, by reducing the risk of a loss in value due to changing regula - tions, rising energy costs rise and climate change. Sustainability is integrated into the Bank’s business model through a customer-centric approach, systematic risk management and developing solutions that promote long-term public benefit. Environmental and climate issues are central and the Bank contributes to a carbon-neutral economy by reducing its own emissions, integrating climate risks into busi - ness decisions, and offering financing and investments that facilitate both climate change mitigation and adaptation. For the Bank, social sustainability means promoting inclusion, gen - der equality and financial security in its own organisation and in its customer relationships. The Bank also contributes to public benefit by sharing knowledge through independent jour - nalism in the form of the EFN news channel, publishing literature and local partnerships aimed at improving financial literacy in society, and creating the best possible conditions for more people to make informed financial decisions. Key aspects of governance include main - taining a high level of business ethics and transparency, with particular emphasis on counteracting financial crime and aiding finan - cial stability. As a financially stable company, the Bank can help ensure stability for house - holds and companies even in periods of eco - nomic uncertainty, and reduce the risk of sig - nificant costs to society in times of financial crisis. Handels banken has the greatest impact on sustainable development through its busi - ness activities, primarily by financing custom - ers’ operations and through its asset manage - ment. The Bank continuously develops its offering to support customers in their transition towards long-term sustainable business mod - els and investments with the aim of combining high customer satisfaction with sustainable and cost-efficient business. Financing: The Bank conducts responsible funding, for example, by issuing green bonds for which the proceeds are used to finance projects with a clear sustainability focus. Handels banken offers several forms of financing that support the climate transition and sustainable development, including green loans, sustainability-linked loans, and climate and energy loans, both for companies and for private individuals. The lending volumes related to the Bank’s sustainability activities at year-end amounted to SEK 225.1 billion (189.6), of which SEK 157.0 billion (123.4) com - prised green loans and SEK 68.1 billion (66.2) sustainability-linked loans. The Bank intends to continue the development of financing prod - ucts to support customers in their transition. Asset management: Handels banken offers a wide range of funds, portfolios and insurance solutions with a sustainability profile, including funds that track Paris Aligned Benchmarks (PABs) and funds that invest in sustainable bonds. Funds reported as article 8 or 9 under the SFDR are also offered for institutional and pri - vate customers. At the end of 2025, 13 of the Group’s funds, representing 21 per cent of assets under man - agement, were reported subject to the regula - tions of the SFDR ¹, in the highest category (Article 9), i.e., a fund that has sustainable 1) Excluding Handels banken Wealth & Asset Management Limited, which is not subject to the SFDR. The other funds (five in total) are reported as Article 6 funds. 62 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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investment or a reduction in carbon emissions as its objective. A total of 97 funds, representing 79 per cent of the managed fund volume, were reported in the second highest category (Article 8), i.e., funds that promote environmental or social characteristics ¹. Transaction management: The Bank offers reliable and efficient services for payments and other business-critical transactions, with a focus on security, fraud prevention and anti- money laundering. This ensure stability for customers and provides a robust infrastructure for the Bank. The primary operating areas – financing, asset management and transac - tion management – jointly form the basis of the Bank’s business model and value chain. By integrating sustainability factors into these operations, the Bank can contribute to cus - tomer benefit, lower risk and long-term value creation. A competitive offering increases cus - tomer satisfaction, while responsible risk man - agement leads to fewer credit losses and thus lower costs for the Bank. Responsible lending also protects individual customers from expe - riencing financial difficulties due to over-in - debtedness. This benefits the Bank, the cus - tomer and the rest of society. Preventing fraud and financial crime helps achieve both business goals – enhancing security for customers and reducing financial risks for the Bank. In this way, sustainability activities support the Bank’s overall financial goals. The Bank operates in the four home markets of Sweden, the UK, Norway and the Netherlands, as well as in Luxembourg and the US. In 2021, the decision was made to initiate a process to divest the operations in Finland. Handels - banken’s remaining operations in Finland are being handled in a separate sales process. For more information, see note G14 on page 225. The customer base comprises private individu - als and corporate customers, with a particular focus on property companies and owner- managed companies. The Bank maintains long-term, close and locally rooted customer relationships. The Bank is a knowledge-based organisation whereby the skills of its co-work - ers are crucial to supporting customers in their green transition. Disclosures on the total number of employees, including the number of employees in home markets, are presented in section S1-6 on page 99. The Bank has high exposure to the real estate sector, which the Bank manages by leveraging its in-depth expertise in the risks and opportunities in the real estate sector to meet energy efficiency and climate adaptation requirements. Handels banken actively pro - motes green financing products in its dia - logues with customers so as to support their transition and at the same time reduce the Bank’s own risk exposure. Analysis of these issues is integrated into the credit process and is supplemented by advisory services and financing solutions that can help reduce risks both for customers and for the Bank. For sav - ings and investments, the Bank offers a wide and varied range of funds that includes both products with a distinct sustainability profile and options that satisfy other investment preferences. This allows Handels banken to meet differing customer needs while its advi - sory services help increase knowledge about sustainable investment choices. The Bank works continuously on developing new solutions, enhancing the data quality of sustainability analyses and more clearly understanding and monitoring how the Bank’s lending and asset management relate to science-based emission reduction trajectories. The Bank monitors and reports on how this relates to the Paris Agree - ment, European Climate Law and national cli - mate targets in the Bank’s home markets. According to the Bank’s guidelines regarding the environment and climate change, financing of new coal mines, oil or gas extraction proj - ects and companies with significant exposure to fossil fuel infrastructure are to be avoided. Lending to the fossil-fuel sector has declined by 68 per cent since 2021, and now repre- sents a very limited share of the Bank’s total lending, see table Loans to the public, by sec - tor. For Handels banken, the Paris Agreement’s goal of net-zero emissions by 2050 is a tool for assessing how the Bank can help its custom - ers in their climate transition while managing its own risks. The Bank also has well-defined guidelines for specific sectors. Handels banken does not engage in business relationships with companies that manufacture, maintain or trade in weapons that are prohibited under interna - tional conventions signed by Sweden. Business relationships with companies involved in the production and distribution of tobacco prod - ucts require processes to identify and manage sustainability risks over the entire product life cycle. Relationships with companies involved in cigarette production are also avoided. By applying this approach, the Bank aims to cre - ate lasting value for customers, investors and society as a whole. Handels banken’s value chain Mapping and understanding Handels banken’s value chain is crucial for identifying the Bank’s impacts, risks and opportunities upstream, downstream and in its own operations, and how these impact the Bank’s stakeholders. The Bank carried out an in-depth analysis of the value chain in 2025, which resulted in cer - tain adjustments to the content and descrip - tions compared with the 2024 reporting. In general, Handels banken’s value chain consists of the following areas and activities: upstream, downstream and own operations. The customer perspective is mainly considered in the downstream areas where the Bank is a direct party, but also in other areas where cus - tomer needs and expectations affect business decisions. The areas of the value chain reflect the Bank’s core business flows, such as lend - ing, asset management, transaction manage - ment and internal governance. Activities have Loans to the public, by sector 31 December 2025 SEK bn Proportion of total lending, % Private individuals 1,159 50.2 Housing co-operative associations 262 11.4 Real estate management and development 700 30.3 Manufacturing 35 1.5 Retail 21 0.9 Hotel and restaurant 7 0.3 Passenger and goods transport by sea 0 0.0 Other transport and communication 5 0.2 Construction 16 0.7 Electricity, gas and water 7 0.3 Agriculture, hunting and forestry 23 1.0 Other services 14 0.6 Holding, investment, insurance companies, mutual funds, etc. 19 0.8 Sovereigns and municipalities 14 0.6 Other corporate lending 25 1.1 Total 2,307 100 Loans to the public 2025 – Geographical breakdown % Sweden 70.7 UK 9.9 Norway 12.5 Finland 1.9 The Netherlands 4.8 Other countries 0.3 Total 100 Loans to the public 2025 – Sector breakdown % Private individuals 50.2 Corporates 37.8 Housing co-operative associations 11.4 Sovereigns and municipalities 0.6 Total 100 63Handelsbanken Annual Report 2025 2.4
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been identified in each area in order to under - stand and manage the Bank’s impacts, risks and opportunities. For quantitative data related to the value chain, see IRO-1 on page 71. Upstream in the value chain primarily com - prises funding, which is vital for the Bank to maintain financial stability, and sufficient capi - tal and liquidity for lending to customers. Capi - tal is mainly raised by issuing bonds in the capital market, deposits from customers through transaction and savings accounts, which over time represent about half of the volumes, and borrowing from other financial institutions. Upstream also includes suppliers from whom purchased goods and services, particularly IT -related services, are central to the Bank’s information management and processes. Downstream includes granting credit and lending to households, corporates and the public sector, deposit products in the form of transaction and savings accounts (which also include upstream for funding), asset management and transaction management. Asset management involves managing cus - tomers’ savings and providing advisory ser - vices through fund management, discretionary management, and pension and insurance solu - tions. Transaction management includes the provision of payment services including pay - ment cards. Handels banken’s value chain in relation to material sustainability matters Upstream Own operations Downstream ESRS Funding Suppliers Branches and premises Co-workers Systems and processes Deposits Asset management Transaction management Lending E1 Climate change adaptation Climate change mitigation Energy S1 Working conditions Equal treatment and opportunities for all S4 Information-related impacts for consumers and end-users ES¹ Contribute to society G1 Corporate culture Management of relationships with suppliers Corruption and bribery ES¹ Counteract financial crime ES¹ Financial stability 1) Entity specific matter Handels banken’s value chain Main areas 1) Deposits are also an upstream funding activity Co-workers Branches and premises Systems and processes Funding Suppliers Deposits¹ Lending Asset management Transaction management Upstream DownstreamOwn operations 64 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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Own operations comprise internal processes and functions such as IT systems, risk manage- ment, work environment and human resources as well as the development and provision of the Bank’s services and offerings. These sup - port and facilitate the Bank’s operations across the entire value chain. The Bank’s value chain is illustrated in the diagram Handels banken’s value chain and main areas, and in the associ - ated table showing where in the value chain the Bank’s material sustainability matters have been identified. SBM-2: Interests and views of stakeholders Handels banken’s principal stakeholders are customers, co-workers, owners and investors, trade unions and the rest of society, including special interest organisations, public authori - ties and legislators. These stakeholder groups have been identified on the basis of their sig - nificant impact on, or impact from, the Bank’s activities. Dialogues with these stakeholders take place regularly in a variety of formats and to different extents. For more information, refer to the Stakeholder dialogue table. The Bank also maintains continual dialogue with other stakeholders, such as equity research analysts and investors, trade associations, sustainability analysts, non-profit organisations, international organisations, municipalities and regions, press and media, students and educational estab - lishments. Dialogue takes place in, for example, investor meetings, responding to different types of surveys related to sustainability and participating in forums. Handels banken is also a member of Finance Sweden’s sustainability council and sustainability committee. Business conduct for Handels banken means acting in a manner that meets the expectations of stakeholders and maintains their trust. Stakeholder perspectives are integrated into the Bank’s strategy and business model, with sustainability incorporated into the decen - tralised way of working and feature a long-term approach, customer focus and low risk toler - ance. Stakeholder perspectives are also used to develop offerings, guidelines and pro - cesses, and to adapt the operations to chang - ing customer preferences and regulatory requirements. Viewpoints from affected stake - holders are addressed under the standard governance process. The operating sustain - ability manager is responsible for reporting such matters to the Head of Handelsbanken Savings and Financing, who in turn reports to the CEO and, when necessary, to the Board. Stakeholder dialogue Stakeholders How stakeholder engagement and dialogue takes place Purpose of dialogue Co-workers • Annual activity plan linked to a co-worker’s goals through the Planning and Development Interview (PLUS). Group-wide work environment survey. • Employee representatives on the Board. • Joint health and safety forum comprising employer and workers’ representatives. • That each employees has an individual action plan that is followed up during the year and which forms the basis for salary negotiations. • Ensure that co-worker perspectives and interests are taken into account in strategic decisions at the highest level. • Promote a safe and healthy work environment through continuous dialogue and follow-up between employers and co-workers. Customers • Daily meetings, both advisory services and customer support. Meetings take place physically at branches, by phone, digitally and on social media. • Regular customer surveys. • Have more satisfied customers than peer competitors. • Maintain a close relationship with customers and adapt services to their needs. • Ensure that customer needs and queries are handled quickly and efficiently across all channels. • Collect feedback to better understand customer expectations and improve the Bank’s products and services. Owners and investors • Annual General Meeting. • Quarterly and annual reports are presented followed by investor calls. • Individual investor meetings. • Present financial results and allow shareholders to vote on important issues. • Provide information about the company’s profits and strategy, followed by talks with investors to answer questions. • Opportunity to discuss specific issues, such as sustainability. Authorities and legislators • Ongoing dialogue with stakeholders including supervisory authorities, central banks and regulatory bodies. • Ensure compliance with laws and regulations and contribute to the development of new regulations for a stable and sustainable financial sector. Trade unions • Ongoing dialogue with trade unions at national level and via the European Works Council on common cross-border issues. • Regular meetings to discuss health and safety issues and conduct risk assessments. • Ensure cooperation on labour practices, health and safety and strategic issues, both at national and international level. • Promote a safe work environment. Society • Cooperation on local community projects. • Partnerships with NGOs. • Dialogue with Handels banken’s research foundations and representatives from the research community in many different contexts. Offer independent journalism through the subsidiary EFN. • Support and contribute to community development through local initiatives. • Collaborate with non-profit organisations to drive social and environmental issues. • Promote economic research and other non-profit purposes through partnerships with foundations affiliated with Handelsbanken. • Raise awareness about finances to empower people to make informed financial decisions and thereby improve their economic and social situation. Suppliers • Continuous dialogue. • Implementation of the Code of Conduct. • Monitoring key performance indicators. • Enhance sustainability work at the Bank and its suppliers. • Ensures compliance with the Bank’s high ethical and social standards. 65Handelsbanken Annual Report 2025 2.4
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SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Twelve sustainability matters have been identi - fied as material to Handels banken based on the double materiality assessment. For more information, see section IRO-1 on page 71. The sustainability matters are addressed in the sections E1 Climate change, S1 Own workforce, S4 Consumers and end-users, G1 Business conduct and the entity specific matters of Contribute to society, Counteract financial crime and Financial stability. As a well-man - aged and responsible bank, Handels banken has a positive impact on the economy, includ - ing by contributing to financial stability and society by raising financial literacy. To whom and under what conditions the Bank lends money makes a difference, both for individuals and for society. Handels banken thus works actively to support and accelerate its custom - ers’ sustainable development through dialogue and advice, within the framework of financing, savings and long-term customer relationships. Although its direct environmental and cli - mate impact is limited, the Bank works contin - uously to reduce this impact, including by using energy more efficiently, reducing the consumption of resources and by increasing the use of digital solutions and virtual meet - ings. Handels banken currently sees no signifi - cant changes in the business model, value chain, strategy or decision-making as a result of identified positive or negative impacts. Risks and opportunities are managed on an ongoing basis as part of daily work by conducting continuous assessments and any adjustments as necessary. The actions taken to manage impacts, risks and opportunities are reported for each topical standard and entity specific matter in the relevant sections of this sustainability statement. The Bank’s strategy and business model is well-posi - tioned to manage material impacts and risks, and capitalise on identified opportunities. Through long-term business relationships, low risk tolerance and cost-consciousness, the Bank is able to address sustainability-related challenges, such as climate change and social risks. Sustainability risks are integrated into standard processes and procedures since social and environmental issues could impact credit risk, investment risk and reputation risk. As described in section SBM-1, the Bank’s strategy and business model creates a foun - dation for building risk resilience, managing negative impacts, contributing to positive impacts and capitalising on business opportu - nities. For more information on quantitative resilience in the context of climate change work, see the ESRS 2 SBM-3 E1 section on page 82. The tables for each topical standard and entity specific matter on pages 67 –70 present the location of the sustainability matters in the Bank’s business model and value chain, and a description of the associated impacts, risks and opportunities, including time horizons. Information on changes to material impacts, risks and opportunities including topical stan - dards compared with the previous reporting period is presented in section BP-2 on page 59. 66 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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Environmental information E1 Climate change – material impacts, risks and opportunities Climate change adaptation Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Enabling customers to adapt to physical climate risk The Bank can make a positive contribution to helping customers adapt to climate change through its products, services and advisory services. Potential positive impact Downstream Asset management & lending Short/medium/long Physical climate risk can pose a financial risk Particularly in the long term, climate change may pose new and higher risks to geographies, industries and sectors that are relevant to the Bank, not least flood risk linked to the Bank’s collateral in property. Risk Downstream Lending Long Adapting to physical climate risk requires investment Investments may be necessary in order to manage the physical risks caused by climate change, which could generate business opportuni - ties for the Bank. Opportunity Downstream Lending Short/medium/long Climate change mitigation Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Financing and invest - ment to enable transition Products and services that support customers’ transition by facilitating long-term sustainable investment and financing decisions. Actual positive impact Downstream Asset management & lending Short/medium/long Financing and invest - ment with high climate impact Financing operations or investing in companies that do not reduce their climate impact, such as GHG emissions, at the required rate. Actual negative impact Downstream Asset management & lending Short/medium/long Transition risk can pose a financial risk The transition to net-zero GHG emissions will require investments and emission reductions. If the Bank’s customers are unable to make the transition, or are unable to bear the costs of necessary investments, the transition may pose financial risks to the Bank, especially in the long term. Risk Downstream Lending Long Financing transition The transition to net-zero GHG emissions will in many cases require increased investment, not least in the real estate sector where the Bank has many customers, which may bring new business opportuni - ties for the Bank. Opportunity Downstream Lending Long Energy Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Energy transition Energy transition includes actions to improve energy efficiency. Positive impact can be generated by enabling customers to invest in energy-saving solutions or by investing in companies that provide solutions for energy transition. Actual positive impact Downstream Asset management & lending Short/medium/long Energy consumption Energy consumption takes place across the Bank’s value chain, which has a negative impact, and fossil energy consumption in particular contributes to climate change, geopolitical tensions and loss of nature and biodiversity. Actual negative impact Own operations & downstream Asset management, branches and premises & lending Short/medium/long 67Handelsbanken Annual Report 2025 2.4
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Social information S1 Own workforce – material impacts, risks and opportunities Working conditions Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Safe labour practices and positive work environment Handels banken is a secure employer that focuses on long-term relationships. For the Bank’s employees, this means a positive work environment, a good work-life balance and benefits over and above statutory conditions to promote long-term employment that results in co-workers staying with the Bank for a long time. Actual positive impact Own operations Co-workers Short/medium/long Work-related incidents Work-related incidents arise in the Bank’s operations that could affect co-worker safety and well-being. These incidents could have a negative impact on co-workers’ working capacity and health. Actual negative impact Own operations Co-workers Short/medium/long Equal treatment and opportunities for all Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Skills development Handels banken’s decentralised approach to skills and career devel - opment is based on the interaction between the needs of the busi - ness and the individual and on prioritising internal recruitment, which gives co-workers the opportunity to influence and pursue their own development by having access to a broad internal labour market and the opportunity to test new roles in all parts of the Bank. Actual positive impact Own operations Co-workers Short/medium/long Diversity and inclusion at the workplace Handels banken endeavours to cultivate an inclusive culture based on trust and respect for every co-worker regardless of their background, and if the Bank fails in this respect, this could have a negative impact on co-workers’ sense of inclusion and engagement. Potential negative impact Own operations Co-workers Short/medium/long Unfair pay gaps The Bank could have a potential negative impact because of unfair pay gaps between women and men. An unfair pay gap is an injustice and may affect the economic position of employees now and in the future, including both their economic independence and their financial security, due to lower savings and future pensions, for example. Potential negative impact Own operations Co-workers Short/medium/long S4 Consumers and end-users – material impacts, risks and opportunities Information-related impacts for consumers and end-users Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Disruption in service deliveries Disruptions in service deliveries to customers could be caused either directly or indirectly as a result of a cyber-attack or inadequate procedures when introducing changes to the IT environment. Potential negative impact Own operations & downstream Deposits, asset management, systems and processes, transaction management & lending Short/medium/long Leakage of customer data Leakage of customer data, such as personal data, may result from a cyber-attack or inadequate procedures. Potential negative impact Own operations & downstream Deposits, asset management, systems and processes, transaction management & lending Short/medium/long Fines or sanctions Failure to handle customer data properly, or significant disruptions in service delivery, may result in higher costs due to fines or sanctions. Risk Own operations & downstream Deposits, asset management, systems and processes, transaction management & lending Short/medium/long 68 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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Entity specific Contribute to society – material impacts, risks and opportunities Contribute to society Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Responsible and local banking opera - tions coupled with a particular com - mitment to financial knowledge in society create public benefit and growth through access to good advisory services, raising knowledge and responsible lending. The Bank makes a positive contribution to society through its local presence, which enables responsible advisory services and lending as well as financial literacy-raising activities that promote stable eco - nomic growth for individuals and for society. The Bank builds stronger relationships with customers and communities through the branches’ involvement in local initiatives such as associations, education or social projects. Increasing financial literacy via the independent media house EFN helps bring about a stronger and better informed finances for both private individuals and companies locally and society as a whole. Actual positive impact Own operations & downstream Deposits, asset management, co-workers & lending. Short/ medium/long Responsible banking operations with a strong local presence and particular focus on personal meetings create customer satisfaction, distribution and business opportunities, and thus income at low risk. By offering responsible banking services and a local presence, the Bank creates a unique offering in the banking market, which attracts and retains customers and creates long-term business opportunities. This provides a robust foundation for distributing products and services while minimising the level of risk in the Bank’s operations. Opportunity Own operations & downstream Deposits, asset management, co-workers & lending. Short/ medium/long 69Handelsbanken Annual Report 2025 2.4
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Governance information G1 Business conduct – material impacts, risks and opportunities Corporate culture Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Strong corporate culture Handels banken’s decentralised way of working, with trust and respect for individuals, permeates the Bank’s corporate culture. Co-workers have great responsibility and authority to make decisions in all kinds of matters that concern our customers. The strong corporate culture creates commitment, a clear structure for development and gives every co-worker an opportunity to influence the Bank’s operations. Actual positive impact Own operations Co-workers Short/medium/long Corruption and bribery Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Risk of incidents linked to corruption and bribery In Handels banken’s operations, there is a risk of incidents linked to corruption and bribery and certain specific roles are more exposed to risk. Potential negative impact Own operations Co-workers Short/medium/long Management of relationships with suppliers Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Business relationships with suppliers who fail to address sustainability issues The Bank could have a negative impact by having agreements with suppliers who fail to address sustainability issues. Potential negative impact Upstream Suppliers Short/medium/long Entity specific Counteract financial crime – material impacts, risks and opportunities Counteract financial crime Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Risk of incidents link to financial crime The risk of incidents where the Bank’s customers, products or services are exploited for financial crime. Actual negative impact Own operations & downstream Co-workers, systems and processes & transaction management Short/medium/long Risk of loss of revenue and/or fines Reduced confidence in the Bank with fewer customers and possible fines if there are shortcomings in the Bank’s work. Risk Own operations & downstream Co-workers, systems and processes & transaction management Short/medium/long Entity specific Financial stability – material impacts, risks and opportunities Financial stability Description Impact, risk, opportunity Value chain Area in the value chain Time horizon Contribute to financial stability The Bank makes a positive contribution to financial stability through its resilience to financial shocks, which is created by the Bank’s strong financial position, low risk tolerance, long-term approach and high operational resilience. Customers can receive support and loans regardless of market conditions, which helps create financial security and stability for households and companies. By contributing to stability, the bank also reduces the likelihood that society will incur costs associated with disruptions in the financial system. Actual positive impact Upstream, own operations & downstream Funding, systems and processes & lending Short/medium/long Financial stability enables business Handels banken’s strong financial position, featuring low credit losses and a robust capital and liquidity situation, attracts investors and customers and creates good conditions for new business. For the Bank’s financing, investors and deposit customers are attracted by the Bank’s high credit rating, which allows for longer and less expen - sive market funding and more stable deposit volumes. In lending, customers are attracted by the Bank’s financial strength, which enables the Bank to expand lending when needed, regardless of market conditions. Opportunity Upstream, own operations & downstream Funding, systems and processes & lending Short/medium/long 70 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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Impact, risk and opportunity management IRO-1: Description of the processes to identify and assess material impacts, risks and opportunities A double materiality assessment is based on two dimensions: impact materiality and finan - cial materiality. Impact materiality refers to how the company’s operations and management of sustainability matters impact the macro envi - ronment, including society, people and the climate. This assessment covers both actual and potential, positive and negative impacts. Financial materiality refers to how sustainability matters could impact the company’s financial position and financial performance, based on risks and opportunities over the short, medium and long term. In 2025, the Bank updated the double mate - riality assessment that forms the basis of the sustainability reporting. This updated involved further developing the methodology and structure and expanding contextual informa - tion about the Bank’s business model related to the various areas of the value chain, busi - ness relationships and geographical presence. The methodology was aligned with the final EFRAG Materiality Assessment Implementation Guidance, and the scales used for assessing identified impacts, risks and opportunities were clarified to ensure consistent application. The assessment resulted in 12 sustainability matters being deemed to be material to report on. These are reported in section SBM-3 on pages 67 –70. The changes compared with last year are presented under BP-2 on page 59. The 2025 assessment was mainly based on a qualitative approach, in line with the previous year. This was motivated by the limited access to complete and reliable data and the absence of accepted models for assessing the nature of different sustainability matters, as opposed to more established models for financial risks, for instance. The Bank intends to gradually develop the methodology further as data qual - ity and methods improve. The assessment was based on the sustain - ability matters identified as material in 2024. To ensure that material sustainability matters for the financial sector were not overlooked, the internal stakeholders involved in the process were responsible for ensuring that feedback was obtained from ongoing dialogues with the external stakeholders. Comparisons with other banks’ reported material sustainability matters were also carried out. The assessment encom - passed all areas of the Bank’s value chain and related activities linked to the Bank’s lending to different sectors, asset management, transac - tion management, suppliers and the Bank’s own operations in its home markets. These activities were also taken into account when assessing business conduct matters. The assessment of upstream and down - stream impacts, risks and opportunities was limited to the first tier of the value chain, as the Bank’s primary opportunities for impact arise in direct relationships with customers and suppli - ers, and due to limited access to relevant data across multiple tiers. The assessment did not identify any heightened risks linked to geo - graphical aspects or business relationships. Financial crime is still considered to be an area with a generally heightened risk in the banking sector, which is managed by applying estab - lished procedures and processes. The assess - ment took into account the Bank’s business model, low risk tolerance and long-term approach, as well as the difference between the Bank’s limited direct impact and the more significant indirect impact arising from lending and investment. Therefore, the Bank’s own operating sites and customers’ sites were not considered for the disclosure requirements of ESRS E2, E3 and E5, since the availability of relevant and complete information was not deemed sufficient for such an assessment. The sectoral and industry-specific breakdowns of the Bank’s lending by geographical area were considered in order to strengthen the quantitative basis for assessing the down - stream impact, where the Bank has the great - est impact. Given the Bank’s large exposure to the real estate sector, the breakdown of prop - erty lending by energy class and home market was also analysed. For the Bank’s primary asset management volumes, portfolio data was used to map investment sectors and geo - graphical spread. For suppliers, information on the breakdown of purchase volumes by sec - tors was used, which is where IT and commu - nication services represent a majority. The materiality assessment process was led by Handels banken Sustainability, and took into account the Bank’s entire operations and value chain. Central staff functions, support functions and product owners were involved to ensure that multiple perspectives on impacts, risks and business opportunities were taken into account. The Bank’s Group Risk Control function participated and helped to highlight how sustainability risks are integrated into existing risk management processes, risk tolerances and risk frameworks. Sustainability risks were deemed to be integrated into other risk classes, such as credit risk, operational risk and compliance risk. Sustainability risks are managed within the framework of the Bank’s decentralised model, where the busi - ness operations are responsible for identifying and managing through established processes and tools. For more information about the Bank’s risk management, see note G2 Risk and capital management on page 164. The materiality assessment process was performed according to a documented meth - odology and procedure description. The final outcome was adopted by the CEO and the Board’s Audit committee was informed of the results, which were also forwarded to the rele - vant business development units and to the Executive Team to identify business opportu - nities. Ongoing sustainability efforts are integrated into the business operations and are subject to the established governance of the operations. Feedback from stakeholder dialogues con - ducted in the connection with the 2024 mate - riality assessment, including with customers, employees, owners and NGOs, was used as supporting data in the updated 2025 assess - ment. The dialogues indicated that ESRS E4 Biodiversity and ecosystems and ESRS S2 Workers in the value chain are deemed to have the lowest information value. Accordingly, the Bank decided that reporting in these areas in 2024 was of limited value to users of the sus - tainability statement in accordance with ESRS 1. In light of this, a new, targeted external stake - holder dialogue was not deemed necessary for 2025. Instead, internal stakeholders, including sustainability experts, management and mem - bers of the Board, were involved to ensure that feedback from ongoing external dialogues in customer meetings was taken into account. Impact materiality The assessment of material impacts on people and the environment was carried out to iden - tify both actual and potential impacts of the Bank’s operations in different parts of the value chain. This assessment was based on the Bank’s existing processes for due dili - gence processes in each area in the value chain. Scale and scope were assessed for actual positive impacts. Severity, based on scale, scope and irremediable character, was analysed in the assessment of actual negative impacts. Potential impacts were assessed based on the likelihood of their occurrence. Potential positive impacts were graded according to scale, magnitude and likelihood, while negative impacts were assessed based on the likelihood combined with severity. All factors were used to calculate an overall value for each sustainability matter, which was then compared against established thresholds to determine whether the impact can be con - sidered to be material. The factors rated according to five-point qualitative and quanti - tative scales were: • Scale: Assessment of the extent of the Bank’s impact, graded from minimal to absolute impact. 71Handelsbanken Annual Report 2025 2.4
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• Scope: Assessment of the extent to which the Bank’s stakeholders are affected, including the spread and frequency of the event, graded from minimal to global impact. • Likelihood: Assessment of the likelihood of an impact occurring, graded from very unlikely to very likely. • Irremediable character: For negative impacts, the ease of remedying or restoring the damage was assessed, graded from very easy to remedy to irremediable character. Financial materiality The double materiality assessment considered the interdependence between impact materi - ality and financial materiality by assessing impact materiality as the first stage, and then performing an analysis of risks and opportuni - ties. This ensured that the impact materiality became a central part of the assessment of potential financial risks and opportunities. The assessment of financial materiality focused on sustainability risks and business opportunities could impact the Bank’s financial position and financial performance, and the likelihood of their occurrence. The assessment was conducted using both qualitative and quantitative scales. To strengthen the link to financial reporting, monetary thresholds were applied as a basis for quantifying the financial impact. Each sustainability matter was assigned a score based on the assessed financial effect multiplied by the likelihood of its occurrence, which was then compared against an estab - lished threshold to determine materiality. The factors used were graded as follows: • Likelihood: The likelihood of a risk or oppor - tunity occurring, graded on a five-point scale from very unlikely to very likely. • Financial effect: Financial effect was assessed on a five-point scale, with minimal to critical effect graded on the basis of mon - etary thresholds linked to the Bank’s income statement. The process of determining monetary limits for financial materiality took into account estab - lished monetary thresholds that are used to determine materiality in the balance sheet and income statement, and the monetary limits applied by the Group’s Risk Control function for various risk classes. Ultimately, it was decided that the limits in relation to the Bank’s income statement should be determined in order to obtain uniform thresholds. The limits were then graded on a scale to assess financial risks and opportunities. Results The double materiality assessment resulted in 12 sustainability matters being deemed to be material to report on. The results are reported in section SBM-3, see page 66. The final stage of the assessment involved assessing the materiality of each datapoint in the disclosure requirements related to the material sustainability matters in order to determine which of these datapoints was to be included in the 2025 sustainability statement. An annual review of the materiality assess - ment is planned for future sustainability report - ing in order to ensure continued relevance. ESRS 2 IRO-1 E1: Description of the processes to identify and assess material climate-related impacts, risks and opportunities The determination of material climate-related impacts, risks and opportunities followed the same process and methodology as the overall process for identifying and determining other sustainability matters, see section IRO-1 on page 71. Lending For Handels banken, climate-related risks are mainly related to the business operations, rather than to the supply chain or own opera - tions. The Bank’s core business is lending, and a large part of this lending is collateralised with real estate. As a result, the analysis of physical climate risks and transition risks pri - marily focus on risks related to real estate in the credit risk area. Physical climate risks can cause damage to property, which could reduce the value of the collateral or income generated from the property. Transition risks, such as those resulting from new regulations requiring energy efficiency improvements, could lead to adjustment costs or decreases in value if necessary investments are not made. In both cases, credit risk may be negatively affected by a reduced repayment capacity or a decline in the value of the collateral. The assessment of potentially adverse financial impact on the Bank associated with climate risks under the framework of the dou - ble materiality assessment was based on cli - mate scenario analyses of physical risk and transition risk that were carried out in 2024. These analyses were updated in 2025 with new business volumes, which did not lead to any change in identified material sustainability matters. For definitions of short, medium and long term perspectives, see BP-2 on page 59. Physical climate risks can stem from many factors, such as floods, storms, drought, fires, landslides and subsidence. The assessment of these risks can be conducted through stress tests based on climate scenarios. Due to lim - ited availability of relevant scenario data and certain property-specific data, it is not possible to make quantitative assessments of all identi - fied potential risks at present. For non-financial undertakings, the total exposure to the factors analysed is reported in the Bank’s Pillar 3 Report, Table ESG 5. The analysis of physical climate risks con - centrated on flood risk. An estimate of the flood risk both from watercourses and sea level rise, and in some cases surface water, was carried out for the Bank’s four home markets for loans to the public, a large share of which is collateralised with real estate. The analysis is based on climate scenario data with the aim of getting as close to RCP 8.5 as pos - sible and with long time horizons up to 2050– 2100 (RCP 8.5 forecasts a temperature increase of 3.2–5.4°C by 2100 according to the IPCC Fifth Assessment Report, AR5). The scenarios applied for each home market are presented in the table Applied scenarios – Lending on page 73. For example, in Sweden the flood risk from seas is calculated by deter - mining the highest sea level that has histori - cally occurred at an interval of 100 years. The level is then adjusted based on the RCP 8.5 scenario for 2100, taking land elevation into account. Data from the Swedish Meteorologi - cal and Hydrological Institute (SMHI) is used to estimate future sea level rise, while data from the Swedish Civil Contingencies Agency (MSB) is used to identify the geographical areas that are affected by the new sea level. The Physical risk – Lending table on page 73 shows the Bank’s total loans to the public in the four home markets, and the share of the exposure that is collateralised with real estate that is deemed to be exposed to flood risk from watercourses and sea level rise. Due to differences in available scenario data, these risks are assessed separately in Sweden and Norway, but collectively in the UK and the Netherlands. The uncertainty in the analysis is deemed to be significant, mainly due to uncertainties in the input data, such as climate scenarios and flood data, and the use of data from several providers with differing assumptions and mod - els. Accordingly, the quantitative assessments are therefore not fully comparable across countries and should be interpreted as indica - tive. Furthermore, the analysis does not distin - guish between different levels of flooding or building designs, and consideration of existing safeguards differs between countries. The analysis indicates that the Bank’s real estate collateral in Sweden has limited expo - sure to flood risk both from watercourses and seas, partly because the land elevation com - pensates for the anticipated sea level rise. For Norway, the exposure to flood risk from the sea is deemed to be slightly higher, yet it is still limited. The analysis for the Netherlands, which has extensive flood protection in place, shows a limited exposure despite the fact that large parts of the country are below sea level. 72 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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The risk of flooding is deemed to be higher in the UK than in the Bank’s other home markets, which is also reflected in Handels banken’s exposures. The risk of flooding is already rela - tively high today and is expected to increase further as a result of climate change. It is the climate-related increase that is presented in the table for the UK. However, this risk may be overestimated since the analysis for the UK is based on postcode areas for the location of properties, unlike other home markets where the analysis is based on individual property coordinates. The analysis shows the extent of the Bank’s exposure to flood risk, but does not include an estimate of the risk of actual credit losses since these are also affected by the financial position of the borrower, the vulnerability of the property and the existence of insurance cover. Handels banken assesses the credit risk of individual counterparties via an internal rating. An analysis of the distribution of flood risk exposures across the different rating grades shows that the volumes are limited for the weaker rating grades. Overall, the risk of credit losses due to flood risk is deemed to be limited. In the context of the transition to a more sustainable economy, regulations on, for example, energy performance and GHG emis - sions, as well as new technological advances and changing preferences among customers and society, may present financial risks in the form of transition risks. Handels banken assesses that the Bank has no significant exposure to sectors that are directly incompatible with the transition to a climate-neutral economy. Exposure to sectors that are hard to abate, such as steel, cement and petrochemicals, is limited. However, the Bank is exposed to sectors where consider - able investment is required to achieve climate neutrality, such as the real estate sector. For more information about the Bank’s sectoral lending exposure, see table Lending (gross) to TCFD sectors. The Bank’s lending to private individuals mainly comprises mortgages collateralised by real estate. Transition risks related to real estate collateral are thus central to the assess - ment of Handels banken’s exposure to transi - tion risks. In order to analyse these risks, the Bank performed scenario analyses both for mandatory energy efficiency improvements to properties and for how the potential impact of the climate transition on the real economy could affect the Bank’s customers. The revised EU Energy Performance of Buildings Directive (EPBD) sets out the requirements for energy efficiency improve - ments for commercial buildings and for resi - dential buildings through national building ren - ovation plans. The investments required to improve the energy performance of buildings can be financed by Handels banken, which presents a business opportunity. In certain cases, when customers experience financial strain, the risk of a credit loss could potentially increase if the necessary investments are not made and thus affect the value of the property used as collateral. Lending (gross) to TCFD sectors SEK m Energy 5,459 Oil and gas 510 Coal 0 Electric utilities 4,949 Transportation 3,062 Air freight 7 Passenger air transportation 0 Maritime transportation 459 Rail transportation 511 Trucking services 2,010 Automobiles and components 75 Materials and buildings 719,096 Metals and mining 1,500 Chemicals 1,375 Construction materials (excluding wood products) 1,003 Capital goods 57 Real estate management and development 715,161 Agriculture, food, and forest products 28,313 Beverages 389 Agriculture 12,717 Packaged foods and meats 2,403 Paper and forest products 12,804 Total 755,930 Applied scenarios – Lending Risk type Home market Climate scenario Time horizon Data source Geographical position Frequency Flooding from watercourses Sweden Expected climate at end of time horizon 2100 Swedish Civil Contingencies Agency (MSB) Geographic coordinates 1/200 Sea level rise (acute and chronic) Sweden RCP 8.5 2100 Swedish Civil Contingencies Agency (MSB) Swedish Meteorological and Hydrological Institute (SMHI) Geographic coordinates 1/100 Flooding from watercourses Norway Expected climate at end of time horizon 2100 NVE (Norwegian Water Resources and Energy Directorate) Geographic coordinates 1/200 Sea level rise (acute and chronic) Norway RCP 8.5 2080– 2100 Norwegian Mapping Authority Geographic coordinates 1/200 Flooding from watercourses, sea level rise and surface water UK RCP 8.5 2100 JBA Risk Management Postcode Several Flooding from watercourses, sea level rise The Netherlands Warm High (WH) 2050 Climate Impact Atlas Geographic coordinates 1/300 Physical risk – Lending Sweden Norway UK The Netherlands SEK m 2025 2024 2025 2024 2025 2024 2025 2024 Lending 1,615,555 1,614,796 287,550 320,219 243,787 260,363 109,871 104,739 of which collaterised by real estate 1,493,727 1,480,946 274,220 300,751 223,999 241,200 109,274 104,049 Flooding, watercourses¹ 10,834 10,582 586 525 0.7% 0.7% 0.2% 0.2% 6,612 7,040 390 477 Flooding, sea level rise¹ 8,115 7,832 5,207 5,322 2.7% 2.7% 0.4% 0.5% 0.5% 0.5% 1.8% 1.7% 1) Data for the UK and the Netherlands make no distinction between watercourses and sea level rise. 73Handelsbanken Annual Report 2025 2.4
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Scenario analyses to estimate the effects of regulatory changes related to energy efficien - cies in properties were carried out for loans to Swedish and Norwegian real estate companies and to Swedish households. The analyses indi - cate low credit losses as a result of these tran - sition risks. These are based on scenarios with a five-year time horizon, in which each cus - tomer is individually analysed on the basis of their income statement and balance sheet to determine whether the changed economic conditions would cause a default and potential credit losses. The analyses are based on an expected or stressed macro-scenario created by Handels banken. The expected macro- scenario is based on the Bank’s published economic forecasts, while the stressed sce - nario corresponds to a severe recession sce - nario. In the assessment of transition risk, it is assumed that investments are required in the customer’s properties to achieve energy classes in line with the regulatory require - ments. The effect is analysed by reducing the value of the real estate collateral by an amount equal to the investment cost. The analyses indicate low additional credit losses due to the reduced collateral values in both the expected and the stressed scenarios. Data on energy classes for individual build - ings is compiled from energy declarations. When energy classes are not available, mod - elled energy classes are used based on the Bank’s other real estate collateral. Assump - tions regarding investment costs per square meter for different property types are based on assessments from relevant expert authorities. The scenario analysis of the impact of the climate transition on the national economy and thus on the Bank’s customers is based on a macroeconomic scenario developed by the Network for Greening the Financial System (NGFS), named Net Zero 2050. The scenario is based on a global climate policy for reaching net-zero GHG emissions by 2050 and limiting global warming to 1.5ºC. The scenario assumes the introduction of costs for GHG emissions, under which customers are charged for the emissions generated by their properties. The emissions data was obtained from energy dec - larations, and estimates from the Partnership for Carbon Accounting Financials (PCAF). Using the same scope, methodology and time horizon as in the other scenario analyses of transition risk, this scenario is also expected to result in low credit losses. In its lending, the Bank always conducts an individual credit assessment of each customer based on Business Evaluation. This methodol - ogy includes a credit risk assessment that evaluates repayment capacity and collateral. Relevant sustainability risks are integrated into the credit assessment if they could impact repayment capacity or the value of the collat - eral. Climate scenarios or scenario analysis are not used in the credit process. Climate-related physical risks and transition risks that may affect customers in the credit portfolio over different time horizons are described in the Bank’s credit risk assessment instructions. The risks relevant to an individual customer depend on the customer’s industry and operating con - ditions. The branch office responsible for the customer is responsible for identifying and analysing the risks, taking into account the guidelines set by the CEO regarding business relationships with certain industries. Climate-related physical risks and transition risks are important sustainability aspects in the credit risk assessment, particularly for property companies. The assessment includes an anal - ysis of the risk of climate-related damage to properties and requirements for energy effi - ciency improvements in the property portfolio. The magnitude of these risks and the custom - er’s ability to manage them are key factors in the Bank’s credit risk assessment. Overall, there are few customers in the Bank’s portfolio for whom the credit risk is considered high due to these types of sustainability risks. In analysing the business opportunities associated with the climate transition, the Bank considered changes in climate-related regula - tions and policies, specifically concentrating on areas related to fossil fuels, renewable energy and energy efficiency improvements. The Bank also analysed market changes, such as changing consumer and investor prefer - ences towards more sustainable products and services that present financial opportunities for companies transitioning to a low-carbon economy. The data was based on external monitoring and analyses conducted by expert authorities. An example of this is the EU Energy Perfor - mance of Buildings Directive (EPBD). The EPBD aims to improve the energy performance of buildings and reduce GHG emissions by setting common minimum standards and tar - gets for new and existing buildings. According to the European Commission, annual invest - ments of more than EUR 300 billion – with an investment shortfall of at least EUR 165 billion per year – will be required to meet the energy efficiency targets for 2030. Given the Bank’s market position and long-term customer rela - tionships in the real estate sector, this devel - opment could result in increased business vol - umes. Handels banken also integrates scenario analysis to evaluate the potential effects of transition events on its business. The Bank applies scenarios from the International Energy Agency (IEA), for example, and frameworks such as the Net-Zero Banking Alliance (NZBA) to assess how well its credit portfolio aligns with the 1.5°C goal, and to identify climate- related risks and business opportunities. Asset management It is crucial for Handels banken as an asset manager to understand how climate change could affect financial assets, markets and investment strategies. For the year 2025, a climate scenario analysis has therefore been carried out to identify and assess potential climate-related risks and opportunities. The analysis was carried out by ISS ESG (a pro - vider of climate and ESG data, including tools and models for climate scenario analyses), and included both physical risk and transition risks for Handels banken Fonder, Handels banken Wealth & Asset Management (HWAM), Optimix, Handels banken Liv and discretionary manage - ment. Integrating climate risks into the invest - ment process enhances the Bank’s ability to safeguard the long-term value of its portfolios and make informed investment decisions. For physical climate risks current and future risk exposure is analysed for six of the most costly physical climate threats: coastal floods, droughts, heat stress, river floods, tropical cyclones and wild fires. The future risk expo - sure extends up to 2050 and is assessed for both a likely scenario, Representative Concen - tration Pathway (RCP) 4.5, corresponding to a temperature increase of 1.7 –3.2°C by 2100, and a worst-case scenario, RCP 8.5, corre - sponding to a temperature increase of 3.2– 5.4°C by 2100, based on the IPCC Fifth Assessment Report (AR5). The effects are simulated using scientific climate models and the risks are then assessed based on the geo - graphical exposure of companies’ revenue streams and assets. The identified risks were quantified in terms of operational risks, such as business interruption and repair costs, and market risks. These are used in a forward- looking valuation to derive the company’s Physical Value at Risk (PVaR), meaning the estimated change in the share price due to the impact of physical climate risks. In the likely scenario, the PVaR of the analysed portfolio of listed equities and corporate bonds increases from 0.1 per cent to 0.4 per cent. In the worst- case scenario, the PVaR rises to 0.7 per cent. These estimates provide an indication of the potential impact on value resulting from physi - cal climate-related risks. However, the model does not include all possible risk factors, meaning that the actual impact in a real worst- case scenario could be higher. Risk levels vary between different parts of the portfolio. The analysis showed that at 27.8 per cent Industrials was the largest contributor to the identified physical risk exposure, due to the geographical range of the businesses and dependence on physical assets and supply chains. Transition risks and opportunities are anal - ysed using an ISS ESG model based on the IEA’s Net Zero Emissions 2050 (NZE2050) 74 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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scenario, which involves a rise in temperature of 1.5°C. The analysis takes a long-term per - spective until 2050, although the effects of the transition are expected to materialise grad - ually in the short and medium term. The poten - tial financial impact of the transition is esti - mated by modelling changes in demand, cost structure and investment needs, and a Transi - tion Value at Risk (TVaR) is derived, which reflects the potential impact on the value of the companies as a result of transition-related events. The model covers three types of tran - sition risks: • Policy transition risks: Changes in costs and revenue due to changing policy envi - ronments. • Market risks: Impact of carbon prices on relevant sectors. • Technological risks: Changes in relative prices and demand for fossil fuel technolo - gies and low-carbon technologies. The analysis shows that asset management’s TVaR for the investment portfolio was 1.1 per cent. The results indicate that the largest con - tributions to the portfolio’s transition risk derive from exposure to Industrials at 48.2 per cent, and Materials, at 39.7 per cent. These sectors include business where changes in climate-re - lated regulations, technology shifts and market conditions may have an impact on the future value trend. The overall level of risk in the portfolio is also affected by sector and asset allocation as well as the Bank’s policies and guidelines. Handels banken’s restrictive approach to fossil fuel investments limits exposure to businesses with high climate-related transition risk, which is reflected in the overall TVaR level for the portfolio. The analysis is one of several bases for assessing how transition risks could affect the value of the portfolio over time and is based on assumptions according to available scenarios and assumptions. The results are continuously updated as methodology, data and scenario assumptions are developed. IRO-2: Disclosure requirements in ESRS covered by Handels- banken’s sustainability statement A list of the disclosure requirements included in the sustainability statement, based on the results of Handels banken’s double materiality assessment and the materiality assessment at datapoint level, is presented at the beginning of each topic area. See page 58 for ESRS 2, see page 80 for E1, see page 94 for S1 and S4 including the entity specific matter Contribute to society, and see page 106 for G1 and the entity specific matters Counteract financial crime and Financial stability. Other sustaina - bility matters covered by the other topical reporting standards have not been assessed as material since Handels banken has no mate - rial direct impact on them through its own operations or in the value chain. A description of the Bank’s identification of material informa - tion to be disclosed in relation to material im - pacts, risks and opportunities is presented in the section IRO-1, see page 71. The materiality assessment at datapoint level was based on the regulatory framework and involves an assessment of the materiality of each data - point for users. A list of datapoints related to other EU legislation can be found on pages 76–79. 75Handelsbanken Annual Report 2025 2.4
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Datapoints related to other EU legislation Datapoints related to other EU legislation The table Relationship to other EU legislation shows the datapoints in the sustainability statement that derive from other EU legislation. References are made to the SFDR, Pillar III, the Benchmark Regulation, and the European Climate Law. Relationship to other EU legislation Disclosure Requirement and related datapoint SFDR reference¹ Pillar 3 reference² Benchmark Regulation reference³ EU Climate Law reference⁴ Material/ Not material Page ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816)⁵, Annex II Material 59 ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) Delegated Regulation (EU) 2020/1816, Annex II Material 59 ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex 1 Material 62 ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i Indicators number 4 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453)⁶, Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818⁷, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2(1) Material 81 ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate Change transi - tion risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 Material 82 ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate Change transi - tion risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6 Material 84 ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 Not material ESRS E1-5 Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 Material 85 ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 Indicator number 6 Table #1 of Annex 1 Not material 76 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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Disclosure Requirement and related datapoint SFDR reference¹ Pillar 3 reference² Benchmark Regulation reference³ EU Climate Law reference⁴ Material/ Not material Page ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 Indicators number 1 and 2 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate Change transi - tion risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) Material 87 ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate Change transi - tion risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 8(1) Material 88 ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) 2021/1119, Article 2(1) a. Not material b. Material 90 ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk Not material ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book – Climate change transition risk: Loans collater - alised by immovable property – Energy efficiency of the collateral Not material ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II Not material ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 Not material ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex 1 Not material ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8 Table 2 of Annex 1 Not material ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Not material ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 Not material ESRS E3-4 Total water consumption in m 3 per net revenue on own operations paragraph 29 Indicator number 6.1 Table #2 of Annex 1 Not material ESRS 2 – IRO 1 – E4 Paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not material 77Handelsbanken Annual Report 2025 2.4
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Disclosure Requirement and related datapoint SFDR reference¹ Pillar 3 reference² Benchmark Regulation reference³ EU Climate Law reference⁴ Material/ Not material Page ESRS 2 – IRO 1 – E4 Paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not material ESRS 2 – IRO 1 – E4 Paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not material ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) Indicator number 11 Table #2 of Annex 1 Not material ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) Indicator number 12 Table #2 of Annex 1 Not material ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 Not material ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 Not material ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1 Not material ESRS 2 – SBM3 – S1 Risk of incidents of forced labour paragraph 14 (f) Indicator number 13 Table #3 of Annex 1 Not material ESRS 2 – SBM3 – S1 Risk of incidents of child labour paragraph 14 (g) Indicator number 12 Table #3 of Annex 1 Not material ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I Material 96 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II Material 96 ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22 Indicator number 11 Table #3 of Annex I Material 96 ESRS S1-1 Workplace accident prevention policy or management system paragraph 23 Indicator number 1 Table #3 of Annex 1 Not material ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c) Indicator number 5 Table #3 of Annex 1 Material 96 ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) Indicator number 2 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Indicator number 3 Table #3 of Annex 1 Not material ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material 100 ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex 1 Material 100 ESRS S1-17 Incidents of discrimination paragraph 103 (a) Indicator number 7 Table #3 of Annex 1 Material 100 78 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement General information
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Disclosure Requirement and related datapoint SFDR reference¹ Pillar 3 reference² Benchmark Regulation reference³ EU Climate Law reference⁴ Material/ Not material Page ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 104 (a) Indicator number 10 Table #1 and Indicator number 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS 2 – SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) Indicators number 12 and 13 Table #3 of Annex 1 Not material ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I Not material ESRS S2-1 Policies related to value chain workers paragraph 18 Indicators number 11 and 4 Table #3 of Annex 1 Not material ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 Indicator number 14 Table #3 of Annex I Not material ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 of Annex 1 and Indicator num - ber 11 Table #1 of Annex 1 Not material ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex I Not material ESRS S4-1 Policies related to consumers and end-users paragraph 16 Indicator number 9 Table #3 and Indi- cator number 11 Table #1 of Annex I Material 101 ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex I Not material ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) Indicator number 15 Table #3 of Annex I Not material ESRS G1-1 Protection of whistle-blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 Not material ESRS G1-4 Fines for violation of anti-corruption and anti- bribery laws paragraph 24 (a) Indicator number 17 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material 109 ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b) Indicator number 16 Table #3 of Annex I Material 109 1) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1). 1). 2) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation “CRR”) (OJ L 176, 27.6.2013, p. 1). 1). 3) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1). 1). 4) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1). 1). 5) Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published (OJ L 406, 3.12.2020, p. 1). 6) Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/637 as regards the disclosure of environmental, social and governance risks (OJ L 324,19.12.2022, p.1.). 7) Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17). 79Handelsbanken Annual Report 2025 2.4
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Environmental information Environmental information Disclosure Requirements ESRS E1 Climate change Strategy 81 E1-1: Transition plan for climate change mitigation 81 ESRS 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 82 Impact, risk and opportunity management 82 E1-2: Policies related to climate change mitigation and adaptation 82 E1-3: Actions and resources in relation to climate change policies 83 Metrics and targets 84 E1-4: Targets related to climate change mitigation and adaptation 84 E1-5: Energy consumption and mix 85 E1-6: Gross Scopes 1, 2, 3 and Total GHG emissions 85 E1-7: GHG removals and GHG mitigation projects financed through carbon credits 90 E1-8: Internal carbon pricing 90 Reporting in accordance with EU Taxonomy Development of Taxonomy reporting 91 Key performance indicators 91 Methodology for the credit institution 92 Data quality banking operations 93 Methodology for asset management and insurance 93 80 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Environmental information
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ESRS E1 Climate change Environmental information This section describes how Handels banken impacts, and is impacted by, climate change, and how the Bank manages environmental and climate-related matters. The section addresses the Bank’s emissions from its own operations and its indirect impact through financed emis - sions. By integrating climate and environment aspects into business decisions and risk management, Handels banken is strengthening its resilience and contributing to long-term sustainable development. Strategy E1-1: Transition plan for climate change mitigation Handels banken published its first Group-wide climate transition plan in 2023, which is regularly updated in line with new regulatory requirements and as the operations develop. The plan is based on the Bank’s business model and seeks to contribute to EU and national climate targets in each home market, and the Paris Agreement’s goal of limiting global warming to close to 1.5°C. The transition plan encompasses the Bank’s financed emis - sions from lending and asset management, which account for more than 99 per cent of the Bank’s reported emissions. The aim is to include the Bank’s own operations in the transition plan over the next few years. The transition plan describes how the Bank will mitigate climate-related risks, seize business opportunities and support customers. The struc ture of the plan is based on guidance for the financial sector from the Glasgow Financial Alliance for Net Zero (GFANZ) and has been adopted by the Head of Handelsbanken Savings and Financing, who also has Group-wide respon- sibility for sustainability. Handels banken’s Group-wide target is to reduce the Bank’s absolute Scope 1 and 2 emissions in its home markets. The Bank has not adopted a Group-wide climate target for lending, but calculates financed emissions and monitors developments against science-based sector pathways in line with the 1.5°C target. This is used as guidance for monitoring the lending portfolio, see also section E1-6 on page 85. For asset management, Handels banken Fonder has, within the scope of its objective of achieving long-term risk-adjusted returns for savers and investors, set a target of net-zero emissions from the total investment portfolio by 2040. In addition, interim targets were set for the portfolio companies’ transition to net- zero and for dialog and stewardship. The tar - gets encompass Scopes 1, 2 and 3. For the Bank’s lending, financed emissions are measured and compared with scientific emission reduction pathways, including from the Science Based Targets initiative (SBTi), which forms a basis for monitoring and devel - oping relevant KPIs, see section E1-4 on page 84. The Bank’s resilience to climate and transi - tion risks is analysed through, for example, stress tests of lending and investment portfolios. Since the majority of the Bank’s emissions are linked to financed emissions, Handels - banken focuses on actions aimed at support - ing customers’ transition. The Bank engages in structured customer dialogues on sustainabil - ity in finance, supplemented with advisory ser - vices, training courses and incentives linked to loan terms. The Bank has also established spe - cific criteria for business relationships with companies in the extraction of fossil fuels, in line with the International Energy Agency’s (IEA) Net Zero by 2050 scenario, see section E1-2. In asset management, exposure to fossil fuels-related risks is reduced through CEO guidelines on the environment and climate, while investments in solutions that promote the climate transition are prioritised, combined with active stewardship. The transition plan is to be integrated into the standard business planning in all home markets and in relevant business areas. Each home market has a Steering committee that sets national roadmaps and prioritises activi - ties. The implementation is coordinated by Handels banken’s sustainability department through the Group-wide Task force on Climate, which is chaired by the Operational Head of Sustainability. The governance and business development elements of the climate transition plan are implemented throughout the opera - ESRS E1 Climate change Climate change adaptation Impact, risk, opportunity Value chain Area in the value chain Time horizon Enabling customers to adapt to physical climate risk Potential positive impact Downstream Asset management & lending Short/ medium/long Physical climate risk can pose a financial risk Risk Downstream Lending Long Adapting to physical climate risk requires investment Opportunity Downstream Lending Short/ medium/long Climate change mitigation Financing and investment to enable transition Actual positive impact Downstream Asset management & lending Short/ medium/long Financing and investment with high climate impact Actual negative impact Downstream Asset management & lending Short/ medium/long Transition risk can pose a financial risk Risk Downstream Lending Long Financing transition Opportunity Downstream Lending Long Energy Energy transition Actual positive impact Downstream Asset management & lending Short/ medium/long Energy consumption Actual negative impact Own operations & downstream Asset management, branches and premises & lending Short/ medium/long 81Handelsbanken Annual Report 2025 2.4
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tions. The focal points for the next few years are further developing dialogue with custom - ers and improving metrics. Handels banken’s share is not excluded from the EU Paris-aligned Benchmarks. ESRS 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Handels banken’s strategy and business model are based on a strong local presence, long- term customer relationships, low risk-taking, a decentralised approach, stable finances and sustainability. Climate change and the transi - tion to a low-carbon economy entails risks and opportunities. This requires the continuous development of capacity building, products, services and customer dialogue, and improve - ments to processes to identify, measure and manage climate-related risks and opportuni - ties. The Bank believes that the fundamental principles of its business model are highly resilient to the risks and opportunities arising from climate change. Adapting products, pro - cesses and staff competence can take place in stages within the framework of the Bank’s established working methods and low risk tol - erance. Lending Handels banken’s core business is lending, and a large part of the Bank’s lending is collat - eralised with real estate. As a result, the analy - sis of climate-related risks concentrates on physical climate risks and transition risks related to property in the credit risk area. The Bank’s resilience is analysed by stress tests that has been carried out as of 31 December 2025. For physical climate risks, exposure to mainly flood risk from watercourses and sea- level rise was analysed in all home markets over long time horizons up to 2050–2100. For transition risk, effects on credit losses were analysed due to energy efficiency require - ments under the EU’s revised Energy Perfor - mance of Buildings Directive (EPBD), focusing on property companies and households, and applying a medium-term time horizon of five years. A stress test, based on the NGFS’s Net Zero 2050 scenario, was also carried out to determine how the climate transition’s impact on the real economy could affect the Bank’s customers. For a more detailed description of the stress tests and the results, see ESRS 2 IRO-1 E1 on page 72. Asset management Handels banken conducts asset management both for private and for institutional investors through a globally diverse portfolio. Asset management’s exposures are analysed and stress tested in the short, medium and long term in order to assess the impact of climate- related risks and opportunities on the port - folios. The climate scenario analyses has been performed as of 31 December 2025 for Handels banken Fonder, Handels banken Wealth & Asset Management, Optimix, Handels banken Liv and discretionary manage - ment. The analysis of physical climate risks shows that asset management’s investment portfolio generally has the ability to effectively manage identified climate-related risks. At the same time, risk levels vary between sectors, which provides important insights into where climate-related risks are more concentrated. For a detailed description, see ESRS 2 IRO-1 E1 on page 74. Transition risks and opportunities are anal - ysed from a long-term perspective according to the IEA’s Net Zero Emissions 2050 sce - nario. The analysis includes political, market and technological risks. Overall, it showed that asset management’s investment portfolio has limited exposure and high resilience to transi - tion risks. A more detailed description is pro - vided in ESRS 2 IRO-1 E1 on page 75. Impact, risk and opportunity management E1-2: Policies related to climate change mitigation and adaptation The steering documents that primarily address the Bank’s material sustainability matters related to climate change and energy are: • Policy for sustainability, for more information, see page 60 • Credit policy, for more information, see page 60 • Guidelines regarding the environment and climate change, for more information, see page 60. For more information, see section GOV-1 on page 60. The policy for sustainability stipulates the overall direction for the Group’s sustain - ability activities and applies to employees, customers, suppliers and other business part - ners. The policy states that Handels banken is to support customers’ transition to more sus - tainable business and economy, for example, through the Bank’s products, services and advisory services that promote sustainable investments and business models. In doing so, Handels banken can indirectly reduce negative impacts on the environment and climate and increase positive impacts. The policy also stip - ulates that the Bank strives to minimise its own direct environmental and climate impact. The guideline regarding the environment and climate change supplements the Policy for sustainability and clarify the Bank’s approach to environmental and climate-related matters, and how they are to be integrated into busi - ness operations, lending, asset management, advisory services, product development, pur - chasing and relevant control functions. It states, among other things, that the Bank shall work towards a greenhouse gas neutral economy in line with the Paris Agreement, integrate physi - cal and transition risks into credit assessments and stress tests, and ensure that reporting and key performance indicators comply with appli - cable regulations. The guidelines also include actions for reducing the Bank’s own environ - mental and climate impact based on resource efficiency and the use of renewable energy. The initiatives that Handels banken supports and participates in are reported on handels - banken.com. Handels banken has established specific cri - teria for business relationships with fossil fuel companies, based on the IEA’s Net Zero by 2050 scenario. According to these criteria, the Bank must avoid new business relationships with, or finance or invest customers’ funds in, companies involved in coal mining and must avoid financing new oil and gas exploration. Handels banken’s credit policy defines credit risk, risk tolerance and goals for level of credit loss, and stipulates how credit risks are to be identified, assessed and followed up. The credit risk assessment also incorporates sus - tainability risks, including environmental and climate risks. The Bank must be cautious with granting credit to operations where the impact of sustainability risks on credit risk is deemed too high. Through its lending, the Bank can also support customer investments in energy efficiency and climate adaptation, which could reduce risks for both the customer and the Bank and help to reduce climate impact over time. The credit policy has not been specifi - cally prepared to serve as a policy on climate change mitigation and adaptation or energy efficiency. Instead it forms the very basis of the credit process. The policy is available on the intranet for all co-workers. In addition to the Group-wide policies, Handels banken’s asset management is gov - erned by steering documents for the subsidiar - ies Handels banken Fonder, Handels banken Liv, Optimix and Handels banken Wealth & Asset Management. The steering documents stipu - late how climate-related risks and opportuni - ties are to be integrated into the investment processes and are based on international norms and initiatives, such as the UN Principles for Responsible Investment (UN PRI) and the UN Global Compact. The steering documents define which managed funds and portfolios are 82 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Environmental information
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included and are updated at least annually by the board, CEO or investment committee of each company. A central aspect for asset man - agement at the Bank is managing assets in the interests of the portfolio and fund unit holders, with the aim of achieving the best possible long-term risk-adjusted returns under the scope of given objectives and investment restrictions. The steering documents also describe how stewardship, dialogue and ex - clusion are applied to manage climate-related risks and sustainable business models in the portfolio companies. Society as a whole is also a stakeholder, and by integrating sustainability factors into the investment process, asset management ensures that the interests of soci - ety are considered. The steering documents are publicly available at handels banken.com. E1-3: Actions and resources in relation to climate change policies Handels banken seeks to support its customers and portfolio companies in their transition towards net-zero GHG emissions. The Bank does not quantify the impact of individual actions. The actions are identified based on the conditions for each operation and home market, and the recommendations from indus - try partnerships such as GFANZ and NZBA, with the aim of prioritising activities that are expected to have the highest positive impact in the real economy by reducing emissions. This includes both developing and adapting the offering to customers and the Bank’s efforts to reduce emissions from its own oper - ations. The section describes the activities that Handels banken carried out during the year as well as planned initiatives. These activities are considered to be the most central to the Bank’s climate work and their impact is evalu - ated at an aggregate level through reduced GHG emissions. The activities are regularly reviewed and further developed. Own operations Energy efficiency is a central component of efforts to reduce the Bank’s emissions from its own operations. The Bank acts continuously to reduce energy consumption and monitors results to provide a basis for making future pri - orities. The Bank’s own premises in Sweden are switching to LEDs, with the reuse of about 1,600 fittings after being converted. About 40 per cent were replaced in 2025 and the aim is to complete the work in 2026. The Bank has also established an ambassador network in its IT department in Sweden that drives action on more efficient IT systems, with the aim of reducing the need for hardware and energy consumption. Impacts are estimated in the prioritisation process and followed up in connection with the annual carbon footprint compilation. In Norway, the process of implementing the Eco-Lighthouse label continued and an addi - tional seven premises were certified during the year. One office remains to be certified in 2026. This certification means that the opera - tions meet comprehensive and relevant envi - ronmental and climate requirements. In the UK, installation started of smart elec - tricity meters and sensors to improve energy data and to help identify efficiency measures. Installations took place at about 40 per cent of premises in 2025 and the aim is to complete the remaining premises in 2026. An environ - mental module was also developed in the UK which, from 2026, will enable monitoring of emissions from energy, business travel and paper consumption per office. In 2025, efforts continued in Sweden to achieve the energy target set in 2024: reduc - ing energy consumption per square metre by an average of at least 2.5 per cent per year at headquarters and internal departments. The outcome for 2025, and the average per year to date, was a reduction of 11 per cent (1.9). Some of the reasons for this reduction were a decrease in office space and using free cool - ing instead of district cooling. Since 2018, the Bank’s home markets have purchased 100 per cent renewable electricity for their operations. Lending Handels banken can support customers’ transi - tion by providing advisory services, training, services and incentives linked to loan terms. Regular capacity building initiatives are con - ducted to enhance advisory services. In Swe - den and the Netherlands, regular meetings and training seminars were held for sustainability managers at the branches with a focus on cli - mate change and energy efficiency. In Norway, the expertise of advisors on ESG financing products was strengthened by organising online training courses and providing new support resources. In Sweden, the Bank also arranged cus - tomer meetings, webinars and targeted mail - ings to housing co-operative associations on energy, maintenance planning and upcoming regulations. The Bank has previously clarified instruc - tions in the credit process for companies on the assessment of physical climate risks and transition risks. In 2025, an e-learning course was launched in Sweden on sustainability risks when granting credit, which includes cli - mate-related physical and transition risks. In the Netherlands, the Bank continued to integrate sustainability into the local credit policy, with the target of at least 80 per cent of customers’ real estate portfolios achieving Dutch energy label A by 2030. This policy was updated during the year to apply to all real estate collateral as of 2026. Handels banken Netherlands continues to offer interest rate discounts for private and corporate customers who meet the sustainability criteria. In 2025, the green loan for forests was launched in Sweden, which offers financing for forest land, forest management and land resto - ration with the aim of promoting biodiversity, long-term climate benefits and climate change adaptation. In August 2025, Handels banken published an updated green bond framework, imple - mented in Sweden, Norway, the Netherlands and the UK. Green bond issues finance, for example, energy efficiency improvements in buildings, renewable energy and climate adap - tation projects such as flood protection and strengthening critical infrastructure. In the UK, the Bank introduced Sustainable Home Reward, which gives customers up to GBP 1,000 when their home meets specified criteria related to energy label A or B. The UK Green Finance Institute assigned “pioneer sta - tus” to this initiative. The Bank has developed a Group-wide pro - cess for customer dialogues on sustainability in financing. The strategy aims to structure work on identifying, measuring and managing risks and opportunities related to the climate transition, and to clarify how the Bank can sup - port its corporate customers in their transition towards net-zero GHG emissions. In the com - ing years, the strategy will be implemented and followed up through key indicators. During the year, the Bank updated its meth - ods for emission calculations in accordance with new industry standards, revised the base year and prepared new sector-specific reduc - tion pathways. The home markets have im - proved data collection and quality assurance to enhance comparability and the reliability of risk assessment and reporting. Asset management During the year, the asset management carried out activities to reduce emissions from the portfolio and strengthen the integration of cli - mate and environmental aspects into invest - ment processes and stewardship. In Sweden, Handels banken Liv developed sustainable investment alternatives in the fund offering in its insurance. The number of funds in unit- linked insurance reported as Article 8 or 9 under the SFDR increased by 2.1 per cent to 98.7 per cent compared with last year. New portfolios with a higher share of sustainable investments were also launched in discretion - ary portfolio management in Sweden. In the Swedish market, Handels banken Fonder launched the Focus Funds, which are actively managed funds that invest in the equity and fixed income markets, with at least 50 per cent of holdings comprising sustainable investments. Six of Handels banken Fonder’s 83Handelsbanken Annual Report 2025 2.4
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products were also selected by the Swedish Fund Selection Agency for the premium pension fund platform during the year. The selected funds integrate environmental and climate aspects into the investment processes. During the year, Handels banken Fonder, together with a large Swedish property com - pany, developed a green bond with a focus on energy efficiency in properties with high energy consumption (Energy Efficiency Bond). The bond finances measures in buildings that do not yet meet the criteria for being classified as green under the EU Taxonomy. There is a yearly follow up and it includes reporting on investments and gradual improvements to energy efficiency. Handels banken Fonder further developed its reporting on the climate, nature and other sus - tainability issues and published two impact reports. The fund company also updated interim targets linked to the target of net-zero GHG emissions by 2040, read more on page 85. The companies that account for 70 per cent of the fund company’s financed emissions were identified during the year and climate dialogues were initiated with 17 (13) companies who are not yet aligned with net-zero emissions. The fund company participates in interna - tional climate dialogue initiatives, including Climate Action 100+, and engages in active stewardship, such as voting at shareholders’ meetings. In 2025, the fund company voted on 110 issues related to the environment and climate. Ahead of the 2026 general meeting season, the fund company together with other Swedish fund companies wrote and distributed its expectations to major listed companies about their long-term incentive plans, empha - sising the importance of considering relevant sustainability factors. Ahead of shareholders’ meetings in 2025, the fund company participated in 57 nomina - tion committees (66), at which expertise related to sustainability risks and opportunities were considered when evaluating the compo - sitions of the boards. In the latter part of 2025, Optimix, Handels banken Wealth & Asset Management, the discretionary portfolio man - agement, as well as Handels banken Liv and Handels banken Fonder, worked with a more standardised method for calculating and assessing financed emissions and climate risks. Activities are monitored within the scope of each unit’s steering documents and is com - piled by the Bank’s sustainability unit. Metrics and targets E1-4: Targets related to climate change mitigation and adaptation Handels banken believes that the transition towards net-zero emissions by 2050 and limit - ing global warming to close to 1.5°C requires that both the Bank and the Bank’s customers reduce their emissions in line with national and EU climate targets. Handels banken’s ambition is to use products, services and advisory ser - vices to support its customers and portfolio companies in developing and executing ambi - tious transition strategies. An overwhelming majority (over 99 per cent) of the Bank’s reported emissions are linked to its lending and asset management. Own operations Handels banken’s Group-wide target is to reduce the total volume of its absolute Scope 1 and 2 emissions by 50 per cent in all home markets by 2030 compared with 2021. The base year was decided in line with recommen - dations from the SBTi. In addition, the home markets have set targets for electricity procure- ment, which means that 100 per cent renew - able electricity will be purchased until 2030. Energy efficiency is a central action for reducing the climate impact of own operations. The target is to reduce energy consumption per square metre in the headquarters and internal departments in Sweden by an average of at least 2.5 per cent per year between 2023 and 2030. The target is followed up annually (see table GHG emission reduction targets on page 84). The target is not science-based and stakeholders were not involved in setting it, although energy efficiency is an established method for reducing emissions. The targets for own operations are based on the Bank’s com - mitment to reduce its direct environmental and climate impact over time, see section E1-2. Lending Handels banken strives to help achieve the EU and national climate targets in its home mar - kets by integrating climate-related risks and opportunities into governance, risk manage - ment and business development in line with the Bank’s decentralised business model. The Bank has not set a Group-wide climate target for lending. Instead, financed emissions from lending are calculated and developments are monitored in relation to sector pathways in line with the 1.5°C target, see section E1-6. The financed emissions arise from customer oper - ations and are heavily impacted by factors outside the Bank’s direct control. The available emissions data is largely based on standar d- ised emission factors, assumptions and esti - mates, with varying degrees of coverage across sectors and customer segments, par - ticularly for smaller companies and lending to private individuals, such as mortgages. Overall, the correlation between estimated financed emissions and the Bank’s governance mecha - nisms are currently considered to be limited, which is why an absolute emissions target for lending is deemed to be of limited value. In light of this, and since sustainability tar - gets are incorporated into the Bank’s overall corporate goals, Handels banken has decided not to apply for validation of its climate targets with the SBTi for the time being. However, the Bank is monitoring the development of the SBTi’s framework for the financial sector and applies its principles as support in climate analyses and in the development of indicative sector pathways. During the year, the Bank extended its cal - culations of financed emissions to include all corporate lending. In addition to the real estate sector, a reduction pathway in line with the 1.5°C goal was prepared for power production. For more information on the development of calculation methods and changes in base years, see section E1-6. Handels banken has a highly restrictive approach to lending to coal, oil and gas. Expo - sure to these sectors has fallen by 68 per cent since 2021. The Bank’s guidelines regarding the environment and climate change state that the financing of new coal mines, oil or gas extraction projects or companies involved in fossil fuel infrastructure must be avoided due to the risks linked to the climate transition and GHG emission reduction targets Base year Target year Unit Target (%) Scope included Change since preceding year (%) Change since base year (%) Scopes 1 + 2 – Own operations 2021 2030 tCO₂e -50 Scopes 1 + 2 −17 −36 Scope 3. 15 – Asset management Investments 2020 2030 tCO₂e/EVIC -50¹ Scopes 1 + 2 + 3 8 −26 1) The target covers the total of Scope 1, 2 and Scope 3 for all assets under management within Handels banken Fonder, corresponding to 90 per cent of total assets under management. 84 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Environmental information
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credit risk. Exceptions can be made for com - panies classified as transition companies, which requires clear and credible transition plans. For climate change adaptation, Handels - banken strives to contribute to raising knowl - edge about climate-adaptation measures. The target has yet to be quantified but will be achieved by sharing information, including mail-outs and by engaging with customers on climate adaptation. Asset management In addition to the overall objective of generating long-term financial returns, Handels banken’s asset management can contribute to the tran - sition to a sustainable economy by investing in companies and projects that have a lower carbon footprint and by actively promoting the green transition in the portfolios. During the year, work was carried out to further enhance the methods for calculating and assessing financed emissions and identifying climate risks. This included shared analytical models for financed emissions, and physical and tran - sition-related risks in order to achieve more standardised and transparent management of climate impacts in the investing activities. Handels banken reports financed GHG emis - sions and GHG intensity for investments in equities and corporate bonds, including direct and indirect investments via fund-of-funds structures. For more information, see the table Financed emissions on page 88. The Bank has not established a Group-wide climate target that applies to all asset manage - ment units. The common starting point, how - ever, is to generate sustainable long-term returns and offer funds whereby customers can choose asset management that contrib - utes to the achievement of the EU and national climate targets in the Bank’s home markets. Handels banken Fonder in Sweden, which accounts for about 90 per cent of the Group’s assets under management, has set an overall target of achieving net-zero emissions from its investment portfolio by 2040 in line with the Net Zero Investment Framework 2.0 (NZIF 2.0). The target has been set in accordance with the Bank’s decentralised operating model and the subsidiary’s mandate to determine the direction of its sustainability activities. Handels banken Fonder has also set an interim target stating that 50 per cent of the compa - nies in the investment portfolio are to be align - ing with a net-zero pathway by 2030, and to engage in dialogue with those companies that together account for 70 per cent of the fund company’s financed GHG emissions and that have not yet aligned with a net-zero pathway. The target includes Scopes 1, 2 and 3. The fund company also follows a reference target in accordance with NZIF 2.0 to reduce the portfolio’s carbon footprint by 50 per cent by 2030 compared with the base year 2020. The reference target serves as a follow-up indica - tor and is a supplementary target since port - folio emissions can be reduced without a reduction in emissions in the real economy. The carbon footprint is measured as tCO 2e per EVIC (Enterprise Value Including Cash), and covers all emissions in the portfolio com - panies’ value chain, i.e., Scopes 1, 2 and 3. The determination of the targets was reconciled with internal stakeholders as well as external stakeholders such as the Institutional Investors Group on Climate Change (IIGCC). The fund company continues to develop a relevant product offering based on customer demand and works towards its established emission targets. As part of this work, the exclusion cri - teria in the product offering are continuously reviewed to ensure their appropriateness in relation to both customers and risks. E1-5: Energy consumption and mix Energy consumption and mix 2024 2025 Total fossil energy consumption (MWh) 39,539 30,892 Share of fossil sources in total energy consumption (%) 59 50 Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh) 317 344 Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 26,594 30,239 The consumption of self-generated non-fuel renewable energy (MWh)¹ 61 61 Total renewable energy consumption (MWh) 26,973 30,644 Share of renewable sources in total energy consumption (%) 41 50 Total energy consumption (MWh) 66,512 61,536 1) Refers to self-generated solar energy. Handels banken has not signed any agree - ments to purchase nuclear energy in any of its home markets. However, nuclear energy can be part of the local energy mix consumed by the Bank, but its share has not been calculated separately and is included in the total reported energy volume, see table Energy consumption and mix. During the year, the Bank signed a supplementary agreement for the district heat - ing supplied to the Bank’s own properties. This means that some of the energy that was clas - sified as fossil last year could be classified as renewable energy from 2025. The main princi - ple is that energy that is not originally labelled as renewable is classified as fossil in the reporting. E1-6: Gross Scopes 1, 2, 3 and Total GHG emissions Handels banken calculates and reports emis - sions for its four home markets, broken down by own operations, lending and asset manage - ment. The vast majority of the Bank’s emis - sions arise in the value chain through financed emissions. Emission calculations have not been verified by a third party. Own operations Emissions from the consolidated Group are reported according to the GHG Protocol and are divided into Scopes 1, 2 and 3 based on the Bank’s operational control. Scope 1 includes direct emissions from refrigerant leaks, stationary combustion and company vehicles, among others. Scope 2 comprises indirect emissions from purchased electricity, heating and cooling in company-owned and leased facilities. Scope 3 emissions are indirect emissions in the Bank’s supply chain, see table Scope 3 content on page 86. In the first instance, the calculations are based on primary data directly from the sup - plier. In the absence of such data, estimates are used based on emissions of neighbouring units, average data or other available esti - mates, see share of primary data in the table Scope 3 content on page 86. Underlying data, such as energy consumption in kWh, is multi - plied by an emission factor from national authorities, industry bodies or licensed data sources to produce an emission figure. For the Bank’s electricity consumption in its home markets, 92 per cent (92) of purchases have guarantees of origin from hydropower, 4 per cent (4) from solar energy and 4 per cent (4) from wind power. The Bank’s biogenic emissions primarily arise from the use of biogas (Scope 1) and dis - trict heating based on organic material (Scope 2). Only biogenic emissions from biogas are reported separately, as the emission factors for district heating in the Scope 2 calculations do not separate biogenic and fossil emissions. Scope 3 biogenic emissions are not calcu - lated. In 2025, Scope 1 biogenic emissions amounted to 69 tCO 2e (63). Lending The calculation of financed emissions for lending involves uncertainty related to meth - odology and data. The emissions arise in customers’ operations and are heavily im - 85Handelsbanken Annual Report 2025 2.4
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Scope 3 content Scope 3 category Included? Share of primary data Justification and method 3. 1 Purchased goods and services Partly¹ 98% Encompasses the most material suppliers in the areas of IT equipment, paper consumption and water consumption. Emissions from cloud services are omitted due to data shortages. 3.2 Capital goods No n/a Handels banken does not operate or control any capital goods to any significant extent from a GHG accounting perspective. 3.3 Fuel and energy-related activities Partly¹ 66% Includes transmission and distribution losses from electricity consumption. Estimated using emissions factors. Other sources in this category have so far been omitted, such as Well-to- Tank (WTT) emissions. 3.4 Upstream transportation and distribution Partly¹ 83% Includes postal and transportation services internally and to customers. 3.5 Waste generated in operations No n/a As a financial services provider, the Bank does not generate significant waste. For the waste generated in day-to-day operations, there are few practical ways to measure this, and the results for the Bank would probably not be material. 3.6 Business travel Yes 98% Includes business travel by air, rail and road, as well as hotel stays. Taxi journeys and other business travel are not included. 3.7 Employee commuting No¹ n/a This category is material but the Bank has not yet adopted a calculation method. 3.8 Upstream leased assets No n/a Handels banken does not lease upstream assets to any significant extent from a GHG accounting perspective. 3.9 Downstream transportation No n/a All distribution services for communicating with customers are reported under upstream transportation and distribution. Emissions from customers’ transport to the office are not included, as this is difficult to measure and most customer activities take place digitally. 3. 10 Processing of sold products No n/a Handels banken does not sell physical products that require any significant processing from a GHG perspective. 3. 11 Use of sold products No n/a Handels banken does not sell physical products to any significant extent from a GHG perspective. 3. 12 End-of-life treatment of sold products No n/a Handels banken does not sell physical products that require end-of-life treatment to any significant extent from a GHG perspective. 3. 13 Downstream leased assets No¹ n/a This category may be included in the future as emission calculations for investment and financing are developed. 3. 14 Franchises No n/a Handels banken does not have any franchises. 3. 15 Investments Partly 74% Emissions linked to the Bank’s lending are calculated for real estate financing, including mortgage loans (Scope 1 and 2) and corporate lending (Scope 1, 2 and 3) and are consistent with the PCAF method. This corresponds to 94 per cent of loans to the public. For asset management, emissions are calculated for 95.6 per cent of the share of total assets under management where established calculation methods exist. In turn, this accounts for 87.9 per cent of total assets under Handels banken’s management and includes Scopes 1, 2 and 3. 1) Handels banken intends to continue to develop its Scope 3 reporting. pacted by factors outside the Bank’s direct control. The availability of emissions data var - ies between sectors, geographies and cus - tomer segments, particularly for Scope 3, which means that in many cases the calcula - tions are based on standard values and as - sumptions. Therefore, changes in reported emissions over time are largely due to im - proved data quality and a higher coverage rather than changes in real world emissions. In 2025, Handels banken expanded emission calculations for the loan portfolio and now covers 94 per cent (88) of total loans to the public. In addition to real estate financing, the calculations now also cover other corporate lending. The calculations were performed using a methodology from the Partnership for Carbon Accounting Financials (PCAF), which increases transparency and comparability. For a more detailed description of the calculation methods, see Methodology financed emis - sions – lending at handels banken.com. Base year update During the year, Handels banken updated the base year for emission calculations linked to lending from 2021 to 2024. The aim is to improve coverage and accuracy due to updated industry standards for parts of the real estate portfolio, expanded availability of data for properties in certain markets, expanded scope to all corporate lending, and limited availability of historical data. Due to the change of base year and the updated calcu - lation methods, previously reported emission calculations cannot be compared with the emissions calculated in the 2025 reporting. The base year for targets linked to asset man - agement and own operations is unchanged. See table GHG emission reduction targets in section E1-4 on page 84. Fossil fuels Fossil fuels in the form of coal, oil and gas are the biggest cause of climate change and global GHG emissions. For this reason, Handels banken adopts a restrictive approach to business relationships with companies operating in these sectors and believes that an orderly transition in line with the 1.5°C goal is vital to avoid the worst consequences of climate change. The Bank has no lending to companies involved in the extraction of coal, oil or gas. In 2025, the volume of lending to companies operating in the manufacture of refined petro - leum products increased compared with 2024. However, this lending represented only 0.02 per cent of the Bank’s total loans to the public. The increase in volume relates to counterparties whose targets and transition plans are deemed to be compatible with the EU’s climate targets, in line with the Bank’s own guidelines. As a result, financed emissions from this sector 0 5,000 10,000 15,000 20,000 25,000 30,000 20242025 Emissions from companies active in the value chain for fossil fuels tCO2e Downstream (2025: 16,910/2024: 3,930) Midstream (2025: 0/2024: 0) Upstream (2025: 53/2024: 2) 86 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Environmental information
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Total GHG emissions disaggregated by Scopes 1, 2 and 3 Retrospective Milestones and target years 2021 2024 2025 % 2025/2024 2025 2030 2050 Annual target in %/ Base year Scope 1 GHG emissions Gross Scope 1 GHG emissions (tCO₂e) 339 143 128 −10 -1705 -65 Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 0 0 0 Scope 2 GHG emissions Gross location-based Scope 2 GHG emissions (tCO₂e) 5,567 4,468 3,719 −17 Gross market-based Scope 2 GHG emissions (tCO₂e) 2,718 2,205 1,829 −17 -1 3595 -65 Significant Scope 3 GHG emissions Total Gross indirect (Scope 3) GHG emissions (tCO₂e) 40,880,055 49,638,577 54,376,358 10 1 Purchased goods and services 3,764 2,714 2,127 −22 2 Capital goods 3 Fuel and energy-related activities (not included in Scopes 1 or 2) 650 669 460 −31 4 Upstream transportation and distribution 119 119 111 −7 5 Waste generated in operations 6 Business travel 417 2,489 1,927 −23 7 Employee commuting 8 Upstream leased assets 9 Downstream transportation 10 Processing of sold products 11 Use of sold products 12 End-of-life treatment of sold products 13 Downstream leased assets 14 Franchises 15 Investments¹ 40,875,105 49,632,586 54,371,733 10 Lending² 4,368,617 4,971,639 14 Asset management³ 40,875,105 45,263,969 49,400,094 9 For interim targets, see section E1-4. Total GHG emissions⁴ Total GHG emissions (location-based) (tCO₂e) 40,885,961 49,643,188 54,380,205 10 Total GHG emissions (market-based) (tCO₂e) 40,883,112 49,640,925 54,378,315 10 1) Includes Scopes 1, 2 and 3, except in real estate financing where only Scopes 1 and 2 are included in line with the PCAF recommendations. 2) 2021 is not reported due to the new base year (2024). 3) 2021 includes only Handels banken Fonder. In subsequent years, Handels banken Fonder, Handels banken Wealth & Asset Management, Optimix, Handels banken Liv and discretionary portfolios are included. 4) The calculations do not include associates. 5) Refers to the target to reduce the total volume of absolute Scope 1 and 2 emissions by 50 per cent by 2030 from 2021 levels. 87Handelsbanken Annual Report 2025 2.4
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GHG intensity based on net revenue 2024 2025 Change since preceding year (%) Total GHG emissions (location-based) per net revenue (tCO₂e/SEK m) 265 375 42 Total GHG emissions (market-based) per net revenue (tCO₂e/SEK m) 265 375 42 Net revenue used to calculate GHG intensity (SEK m) 2024 2025 Net revenue used to calculate GHG intensity¹ ² 187,671 144,867 Net revenue (other) 61 39 Net revenue for the group in accordance with Income statement, Group on page 144² 187,732 144,906 1) Information on net revenue based on Consolidated Situation. 2) The definition of net revenue is based on Section 4a of the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559). Financed emissions Emissions intensity Exposure (SEK m) Coverage rate of calculations¹ (%) Total financed emissions (tCO₂e) Of which Scope 1 + 2 (tCO₂e) Of which Scope 3 (tCO₂e) PCAF Data Quality Score 1–5 (Scope 1 +2/ Scope 3) Unit 2024 2025 2025/2024 (%) Scope 3.15 Investments Lending (on-balance) 2,307,191 94 4,971,639 1,164,865 3,806,774 Mortgages 1,148,313 99 237,028 237,028 3.6 / - kgCO₂e/m2 6.6 6.5 −2 Commercial real estate² 953,702 98 519,571 519,571 3.6 / - kgCO₂e/m2 12.0 12.4 3 Fossil fuels² 394 100 16,963 5,212 11,751 4.0/4.0 tCO₂e 3,933 16,963 331 Power production² 1,355 100 21,177 20,882 295 3.0/3.0 kgCO₂e/MWh 32.2 35.3 10 Large companies, high emitters³ 2,097 100 170,485 44,111 126,374 2.8/2.8 tCO₂e/SEK m 102.7 81.3 −21 Large companies, other 54,182 97 3,227,486 101,093 3,126,393 2.7/3.1 tCO₂e/SEK m 40.6 61.6 52 SMEs 42,531 99 778,929 236,967 541,962 4.3/4.2 tCO₂e/SEK m 18.1 18.5 2 Other loans to the public 104,617 0 - Asset management (off-balance)⁴ 1,120,521 96 49,400,094 1,864,492 47,535,602 1.3/3.0 tCO₂e/SEK m 38.0 46.1 21 Total emission 3.15 Investments 54,371,733 3,029,357 51,342,376 1) The coverage rate for asset management is calculated based on the share of total assets under management where it is possible to calculate emissions using established calculation methods. In turn, this accounts for 87.9 per cent of total assets under management. 2) Includes small, medium and large enterprises. 3) The sectors covered are aluminium, cement, aviation, vehicle manufacturing, freight, steel and iron, agriculture, chemicals, passenger transport and shipping. 4) The coverage for calculating emissions intensity is 95.6 per cent. 88 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Environmental information
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increased compared with last year, but contin - ued to represent a limited share (0.3 per cent) of the Bank’s total financed emissions. The bar chart Exposure to sector codes in - cluded in value chain for fossil fuels shows the Bank’s exposure over time to the fossil fuel sector (coal, oil, gas and peat) as defined in the Pillar 3 reporting. To ensure a correct over - view of actual exposure, a manual analysis was carried out of all companies in the relevant sector codes since certain codes may include companies that are not active in fossil fuel operations. Emissions from companies that have been assessed as operating in the fossil sector are presented in the chart Emissions from companies active in the value chain for fossil fuels. Real estate sector Handels banken contributes to the transition by offering products, services and advice that facilitate energy efficiency. This involves green and favourable loans for energy efficiency measures, advice that helps customers to identify both climate benefits and potential cost savings when renovating, and improve - ments to commercial and residential proper - ties. The financed emissions are calculated every quarter to monitor the development of the real estate portfolio, and are compared with sector-specific pathways in line with the 1.5°C target. The pathways are based on data and methods provided by the SBTi. Emissions are calculated using methodologies from PCAF and are based on the properties’ Energy Per - formance Certificate (EPC). When no EPC is available, PCAF estimates are used based on the building type and country. Compared with last year, emissions intensity for mortgages decreased in three of four home markets and for the Group as a whole by more than 2 per cent. The share of buildings with a valid EPC increased by just under 2 per cent and the share of properties with energy labels A-C increased by just over 1 per cent. For commercial buildings, emissions intensity fell in all home markets compared with las year. Despite this, emissions intensity for the Group increased just over 3 per cent, which was mainly attributable to a change in the com po si- tion of the portfolio involving a relative increase in financed square metres in the Netherlands where emissions intensity is relatively high. The share of valid EPCs increased by just under 3 per cent and the share of properties with energy labels A-C increased by just under 3 per cent. For more information on actions carried out during the year, see section E1-3 on page 83. Power production Demand for electricity is expected to grow rapidly as the electrification of society accel - erates. According to the IEA, the energy sector is one of the first sectors that will need to achieve net-zero emissions, which is expected to be attainable due to access to proven and cost-efficient technology. Handels banken’s exposure to power gener - ation is limited, and comprises approximately 0.1 per cent of the Bank’s loans to the public. The sector is nevertheless monitored, partly because it indirectly impacts emissions in the real estate portfolio and partly because it is central to the climate transition. Emissions reported from power generation include companies that produce electricity and cogeneration (combined heat and power generation). Data on production volumes and emissions is obtained from data providers, public sources or directly from the companies. Estimates are used if company-specific data is not available. The financed emissions are calculated to monitor the development of the power production portfolio, and are compared with pathways in line with the 1.5°C target, using methods from the SBTi. During the year, the Bank’s exposure to the power production sector decreased by more than 40 per cent compared with last year, while total financed emissions fell by more than 22 per cent. Emissions intensity increased by about 10 per cent to 35 kgCO₂e/MWh, which was mainly due to changes in the customer portfolio, whereby new customers had slightly higher emissions intensity than customers who left the Bank. Despite the increase, emissions intensity remains far below the European average for power production, which was 187 kgCO₂e/ MWh in 2024, and well below the level of 165 kgCO₂e/MWh set in the IEA’s NZE2050 scenario for 2030. Other corporate lending Emissions are calculated using company- specific data and sector-specific estimates from the PCAF. The Bank has limited exposure to several high-emitting sectors, in certain cases only individual commitments. In order to ensure continuous and consistent reporting, other corporate lending is presented in the following categories: • Large companies, high emitters • Large companies, other • SMEs. For these categories, the emissions intensity of financed Scope 1 and 2 emissions de - creased by 15 per cent. At the same time, the emissions intensity of financed Scope 3 emis - sions increased by 37 per cent. In total, this 0 2 4 6 2050204520402035203020252024 6.1 6.56.6 2024 2025 Mortgages kgCO2e/m2 Calculated emissions intensity Pathways 0 3 6 9 20502045204020352030202520242024 2025 12.0 12.4 11.0 2024 2025 Commercial real estate kgCO2e/m2 Calculated emissions intensity Pathways 0 100 200 300 400 20242025 394 272 117 140 Exposure to sector codes included in value chain for fossil fuels SEK m Operations active in the value chain for fossil fuels Active in other activities 0 10 20 30 20502045204020352030202520242024 2025 32.2 25.3 35.3 2024 2025 Power production kgCO2e/MWh Calculated emissions intensity Pathways 89Handelsbanken Annual Report 2025 2.4
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means that the combined emissions intensity for financed Scope 1, 2 and 3 emissions in - creased by 30 per cent compared with last year in this category. The increase in emissions intensity for financed Scope 3 emissions, meaning emis - sions that arise in companies’ value chains, is mainly due to the fact that Scope 3 reporting is still being developed. Many of the Bank’s customers are working to improve the cover - age and quality of their reporting, which means that more parts of the value chain will be grad - ually included. Improved data quality may therefore result in higher reported emission levels in the short term. This trend is expected and may continue over the next few years, partly as a result of the implementation of EU Directives such as the CSRD and stricter demands from investors and other stakeholders. The decline in emissions intensity for financed Scope 1 and 2 emissions is expected to be less affected by this trend since report - ing of these emissions is more established and the data quality is generally higher. Asset management In 2025, Handels banken’s asset management developed and applied a standardised method for measuring and reporting the climate impact of the investment portfolios. Financed emis - sions are calculated in accordance with the PCAF standard and the GHG Protocol, which ensures harmonisation with international prac - tice. The emissions are calculated based on the Bank’s proportionate share in the capital structure of each company, comparing the size of the investment with the company’s enter - prise value including cash (EVIC). This means that Handels banken is attributed a corre - sponding share of the portfolio companies’ total GHG emissions. Emissions data is pro - vided by ISS ESG and is based on a combina - tion of emissions reported by companies and estimated emission figures if reporting is not available or deemed to be of insufficient qual - ity. Sector-specific emissions intensity models following the PCAF methodology are used when estimating data. The calculations are ini - tially based on the Scope 1 and 2 emissions of the portfolio companies, and are supple - mented by Scope 3 emissions when data becomes available and is deemed to be suffi - ciently reliable. The calculations currently include invest - ments in listed shares and corporate bonds, enabled by standardised methodology and reliable datapoints. Government bonds and derivatives are not included. The calculations are associated with uncertainties related to variations in the reporting quality among the companies, shortcomings in data coverage and time-based differences between emis - sions data and financial values such as EVIC. These uncertainties are handled in accor - dance with the PCAF’s Data Quality Score System. The average PCAF score for the port - folio for Scope 1 and Scope 2 emissions is 1.3 and for Scope 3 is 3.0. The Bank works con - tinuously on further developing methods and improving data quality. This work includes expanding the coverage of assets classes, strengthening requirements for data providers and external managers, and dialogue with portfolio companies to improve GHG emissions reporting. The method is regularly updated as the PCAF standards are developed and in line with the definitions of the Principal Adverse Impact Indicators of the EU’s Sustainable Finance Disclosure Regulation (SFDR). The greenhouse gases included are those defined in the Kyoto Protocol. The calculations were carried out for Handels banken Fonder, Handels- banken Wealth & Asset Management (HWAM), Optimix, Handels banken Liv and discretionary management. Total financed GHG emissions in asset man - agement amount to approximately 49 million tCO₂e (approximately 45 million tCO₂e). The year-on-year increase was mainly due to vol - ume growth, improved data coverage and a higher number of portfolio companies report - ing emissions or being included in estimates. The reported emissions refer to the portfolio companies’ total Scope 1, 2 and 3 emissions. The analysis includes investments in corporate instruments in asset management and has a coverage rate of 95.6 per cent, corresponding to 87.9 per cent of total assets under manage - ment. Handels banken intends to continue to develop methods and processes for measur - ing and reporting on the climate impact of its investment portfolio. E1-7: GHG removals and GHG mitigation projects financed through carbon credits Achieving the goals of the Paris Agreement primarily requires extensive emission reduc - tions. At the same time, additional actions such as carbon capture and storage (CCS) will be required to handle residual emissions. To sup - port the development of CCS, Handels banken has invested in projects via Milkywire’s Climate Transformation Fund, which in 2025 supported 18 Carbon Dioxide Removal (CDR) projects that are estimated to capture approximately 80 tonnes of CO 2. All projects follow estab - lished standards such as Puro.earth, Isometric, Rainbow and CSI C-Sink. About 10 per cent of the contracted tonnes refer to projects in Europe. The supported projects included Kairos Carbon, which converts wet organic residues into carbon dioxide for geological storage; Planeteers, which captures carbon dioxide from biogenic flue gases and converts it into ocean-stable hydrogen carbonate; Arbon, which is developing Direct Air Capture (DAC) based on humidity-swing technology; and Releaf Earth, which converts palm kernel waste into biochar for use in soil improvement. Handels banken did not make any other pur - chases of carbon removal credits during the year. Credits generated by these project do not count as a corresponding adjustment under Article 6 of the Paris Agreement. Handels banken does not to date have a developed strategy for negative carbon emis - sions, nor does it have any existing plans, hold - ings or agreements regarding carbon credits to be cancelled. E1-8: Internal carbon pricing Handels banken does not apply internal carbon pricing in any of its operating areas. 90 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Environmental information
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Reporting in accordance with EU Taxonomy The EU Taxonomy Regulation (2020/852) is a classification system and a framework that defines which economic activities are environ - mentally sustainable so that it is easier for investors to identify sustainable investments. Handels banken uses the Taxonomy as one of several tools to evaluate the environmental sustainability of its operations. In line with the Paris Agreement and the goal of limiting global warming to 1.5°C, Handels - banken is working towards a transition to an economy with net-zero GHG emissions. This work takes place via the Bank’s customers by supporting them in their transition with the products and advisory services that the Bank offers. By continuing to develop products and services that contribute to this transition, the Bank is working to meet the requirements and objectives of the Taxonomy, and create good conditions for increasing the share of Taxono - my-aligned assets. Handels banken has adapted its Green Bond Framework to better align with the Taxonomy’s technical screening criteria, enabling the financing of more projects that promote energy efficiency and climate adaptation. During the year, Handels banken launched products and incentive structures aimed at increasing the proportion of assets that meet the require - ments of the financing framework which, in turn, increases the volume of Taxonomy- aligned assets. Development of Taxonomy reporting Since 2021 Handels banken has reported the share of Taxonomy-eligible assets on and off the balance sheet. In 2025, the EU updated the reporting framework in terms of the com - panies covered, the data to be reported and the methods for calculating the green asset ratio for financial undertakings. Handels banken reports in accordance with the updated Dele - gated Act. This entails both a reduction in the amount of data and a better balance between Taxonomy-aligned assets in the numerator and the denominator. Assets that cannot achieve Taxonomy alignment, such as exposures to sovereigns, are now excluded from the denom - inator. The change makes the KPIs more accu - rate but higher, all other things being equal. This year’s KPIs are therefore not directly comparable with those of the previous year. The separate tables for gas and nuclear power have been excluded in the new regula - tions, and the information is now included in the standard tables. Reporting of trading book assets and fee and commission income has been postponed to the 2027 financial year. Handels banken is a financial conglomerate with operations in several business segments. The regulatory framework and earlier answers from the European Commission require the Bank to report the Green Asset Ratio (GAR) for the various parts of the Group’s operations. To increase transparency and provide a good overview, Handels banken has again this year opted to report the Taxonomy alignment of its banking operations in the consolidated situa - tion, and the insurance business segment sep - arately, and in total for the Group. A summary table has been included later in this section. Two weighted KPIs for the Group – one turn - over-based, and one capital expenditure- based (CapEx) – are calculated by weighting each business segment’s KPI by its share of the Group’s total income. This provides a true and fair view of the Group’s assets while avoiding double counting. Other assets from non-financial activities are minimal and have no impact on the Bank’s total green assets. In its reporting, Handels banken took into account the applicable sections of the guid - ance published by the European Commission in December 2025. The definition of assets in the Taxonomy reporting is based on Delegated Regulation C (2021) 4987, and Commission Implementing Regulation (EU) 2021/451 with regard to supervisory reporting of institutions. Key performance indicators The share of consolidated green assets for the Group amounted to 8.0 per cent based on turnover and 8.3 per cent for CapEx as of 31 December 2025. This represents an increase from last year’s figures 3.3 per cent and 3.4 per cent, respectively, primarily due to a change in the calculation method, which means that the figures are not directly com - parable. As in the previous year, the largest contribution to the consolidated green assets was from assets in the banking operations. For a compilation of the Group’s consolidated KPIs, see the Handels banken Group EU Taxonomy KPIs table. Handels banken’s main KPI for banking oper - ations is the Green Asset Ratio (GAR), which shows the proportion of assets on the balance sheet at the end of the period that meet the Taxonomy criteria. The KPI is mainly affected by the energy performance of Handels - banken’s mortgage portfolio, and also to a minor extent by the proportion of corporate lending that is directed to environmentally sustainable operations at companies that are subject to Taxonomy reporting requirements. Corporate lending represents 35 per cent of the Bank’s assets in the balance sheet. How - ever, only 1 per cent of non-financial under - takings were required to report under the Taxonomy for the 2024 financial year. GAR on the balance sheet was 8.1 per cent (3.4) in terms of turnover and 8.3 per cent (3.5) in terms of CapEx as of 31 December 2025. This corresponds to a sharp increase compared to the previous year, which is largely attributable to the change in calculation method. The Taxonomy-aligned assets amounted to SEK 110,967 million (83,940) for assets in terms of turnover and SEK 114,985 million (86,920) in terms of CapEx. The option of including companies reporting on a volun - tary basis increases the Taxonomy alignment of the stock, on the basis of both a significant volume and high Taxonomy alignment. In other respects, the increase was mainly due to a higher proportion of Taxonomy-aligned assets in housing financing in the household portfolio, both because more properties have an energy declaration and because many have improved their energy rating. Taxonomy alignment among non-financial undertakings required to report has decreased slightly as a proportion of turnover but increased in relation to CapEx. For financial counterparties, the reason was changes in the volume and the Taxonomy alignment of individual counterparties with large exposures. 6.5 per cent (1.5) of the Bank’s off-balance sheet assets in the asset management port - folio was Taxonomy-aligned in terms of turn - over and 8.3 per cent (2.0) in terms of CapEx as of 31 December 2025. Taxonomy alignment was mainly driven by energy efficiency measures, 91Handelsbanken Annual Report 2025 2.4
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real estate-related holdings and investments in renewable energy. 6.4 per cent (3.2) of the portfolio of the insurance operations was Taxonomy-aligned in terms of turnover and 8.3 per cent (0.2) in terms of CapEx as of 31 December 2025. The proportion of Taxonomy-aligned assets in asset management and the insurance oper - ations is significantly higher compared with last year, mainly in terms of CapEx. This trend reflects a continued focus on energy effi - ciency and renewable energy. However, the change between years was mainly due to the calculation methodology and improved data quality rather than major changes in portfolio allocation. For tables in accordance with EU Taxonomy rules, see pages 114–138 and the List of Taxonomy tables. Methodology for the credit institution The KPIs stipulated for the banking operations in the credit institution are reported for assets in the balance sheet, financial guarantees and asset management. The proportion of assets at the end of the period and the inflow of new assets during the year, which are eligible and aligned with the EU Taxonomy’s technical screening criteria for all six environmental objectives, are reported in the updated set templates for credit institutions. The calculation of the green asset ratio for Handels banken’s corporate portfolio is based on figures reported by financial and non-finan - cial counterparties from the previous financial year (2024). Non-financial undertakings required to report according to Taxonomy Regulation published the proportion of their operations that is Taxonomy eligible and aligned both as a proportion of turnover and as a proportion capital expenditure (CapEx). Both of these key KPIs are used by financial under - takings to calculate the green asset ratio for general purpose lending, equities and debt securities. No estimates are allowed in the mandatory reporting. Exposures to undertak - ings that do not report under the Taxonomy cannot be assessed using the Taxonomy and they are also not included in the GAR calcula - tion. The reporting obligation is defined as undertakings that were obliged to report as of 2024, meaning financial and non-financial undertakings in the EU, public-interest entities with more than 500 employees. Other com - panies in the EU that report on a voluntary basis are included where the data is available from an external provider. Taxonomy alignment for bonds and financ - ing where use of proceeds is known is only included in the calculation for undertakings that are required to report under the Taxonomy and thus is based on the counterparty’s reported figures. Household exposures, such as loans with real estate collateral, motor vehicle exposures and other household financing, are to be assessed by the Bank using applicable criteria in the Taxonomy. Motor vehicle financing and other types of unsecured household financing, such as financing for solar panels, cannot be considered to be Taxonomy-aligned as all the necessary data is not available. Household exposures with real estate collateral are deemed to be Taxonomy-aligned based on the building’s energy performance according to the energy declaration, given that they are not deemed to be exposed to physical risk due to climate change. The assessment does not include minimum safeguards. List of Taxonomy tables Consolidated Taxonomy disclosure Group in accordance with article 8 in the Taxonomy Regulation Page Handels banken key performance indicators in accordance with EU Taxonomy, Group Turnover and capital expenditure 114 Taxonomy disclosures for credit institution in accordance with article 8 in the Taxonomy Regulation Summary of KPIs 117 Assets for the calculation of GAR Turnover and capital expenditure 118 GAR sector information Turnover and capital expenditure 126 GAR KPI stock Turnover and capital expenditure 128 GAR KPI flow Turnover and capital expenditure 132 KPI off-balance-sheet exposures Turnover and capital expenditure, stock and flow 136 KPI on fees and commission income from services other than lending and asset management Disclosed for financial year 2027 n/a KPI Trading book portfolio Disclosed for financial year 2027 n/a Taxonomy disclosures for life insurance in accordance with article 8 in the Taxonomy Regulation KPI life insurance portfolio 138 Handels banken Group EU Taxonomy KPIs Business segment Income Taxonomy KPIs of Handels banken Group, 31 Dec 2025 MSEK Proportion % KPI Turnover based KPI Turnover based KPI weighted Capex based KPI Capex based KPI weighted Banking Credit portfolio 137,137 94.6 Green asset ratio (GAR) 8.1 7.6 8.3 7.9 Financial guarantees 35 0.0 Green asset ratio (GAR) 1.5 0.0 4.2 0.0 Asset management 5,418 3.7 Green investment ratio (GIR) 6.5 0.2 8.3 0.3 Insurance (life) 2,317 1.6 Green investment ratio (GIR) 6.4 0.1 8.3 0.1 Consolidated, Group 144,906 100.0 Consolidated KPI, Group 8.0 8.3 92 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Environmental information
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Collateral exposed to physical risk is not deemed to be aligned with the Taxonomy. This is part of the criteria to do no significant harm (DNSH) to the other environmental objectives, and is assessed using the same method and external climate data applied for the Pillar 3 physical risk disclosure. The main source of physical risk in the markets where the Bank operates is flooding from seas or watercourses. A description of the method is presented in ESRS2 E1 IRO-1 on page 72. The Taxonomy alignment of buildings is to be assessed according to various criteria depending on the date of application for the construction permit. Due to a lack of available data for the application date for the construc - tion permit, the year of construction is used for the assessment, which must be considered a conservative approach. Buildings constructed before 2021 in Sweden are Taxonomy-aligned if they have energy class A or an energy dec - larations according to construction regulation BBR 29 with an energy performance that is below national thresholds corresponding to the top 15 per cent. For other countries no data or studies meeting the criteria for calculating best energy performance are available, and only energy class A can be used in such cases. In the entire mortgage portfolio, about 50 per cent of properties lack energy declara - tions as of 31 December 2025 and thus can - not be assessed. Household exposures to properties built after 2021, where the energy performance should be at least 10 per cent lower than the national thresholds for nearly zero-energy buildings, can only be assessed in Sweden. In other countries information to assess Taxonomy alignment is lacking. Furthermore, assets held for sale are included in the other assets category and are thus not included in the calculation. This mainly includes the remaining part of the Bank’s Finnish portfolio. Flow of assets in the balance sheet is defined as new loans, i.e. the agreements originated during the year. The reporting of Taxonomy-eligible assets by sector provides reporting of exposures by the ten largest counterparties’ in the ten sectors with the largest total exposures, summarised using the counterparty’s main four-digit NACE code. Reporting by the Bank as a credit institution is based on prudential consolidation determined in accordance with CRR. The life insurance undertaking of Handels banken is not included in consolidation but is disclosed in accordance with the equity method, see note G54 on page 268. Assets in the balance sheet related to the life insurance undertaking are not included in the calculation of GAR for banking operations. The green asset ratio in the life insurance undertaking is reported separately on page 138, and is also included in the calculation of the consolidated KPI for the Group. Data quality banking operations Handels banken’s GAR in the balance sheet is calculated based on the energy performance of household exposures with real estate collat - eral and based on the GAR of corporate coun - terparties in the credit portfolio. The calcula - tions are based on reliable data, such as energy declarations of properties, and published key performance indicators from our corporate counterparts. The Bank works continuously to improve the availability and quality of data, for example, by increasing access to energy dec - larations. Taxonomy data reported by corporate counterparts that do not have data from exter - nal providers should be supplemented through manual collection where possible. Controls are in place to increase the reliability of coverage and data quality, and manual collection, wher - ever possible, is used to supplement values that are not available or are incorrect. Reporting is based on data from internal systems that are also used for capital ade - quacy reporting and other tables in the annual report. This information used is of good quality, without known flaws. The KPIs reported by companies are obtained from an external pro - vider, and information on the requirement is compared to information in internal systems. Information on physical risk for real estate is based on physical location and information on physical risks from external providers. Methodology for asset management and insurance The green asset ratio of assets under manage - ment is reported and calculated under the consolidated situation and presented under banking operations for credit institutions (GAR AuM). The calculations encompass asset man - agement’s mutual funds and discretionary vol - umes excluding the volumes of the insurance operations. Handels banken Liv is reported separately in the table designated for life insur - ance operations. Calculation and reporting are based on the balance sheet as at year-end 2025. The calculation includes holdings in listed shares and corporate bonds of companies subject to the reporting requirements, or vol - untarily reporting under them, as well as hold - ings issued by local authorities. Investments in fixed-income instruments with central banks, supernational bodies, derivatives and assets in non-reporting undertakings are excluded in line with the regulatory framework. The calcu - lation is performed by screening the holdings at security level, which means that fund hold - ings are assessed based on their underlying assets. The green investment ratio is based on companies’ reported KPIs, and proportion of turnover and CapEx, which is then aggre - gated at portfolio level. Reporting is based on data from the Bank’s internal portfolio systems, which is used for other financial reporting and considered to be of high quality. Information on the reported KPIs of the mutual fund and port - folio holdings is collected from an established external data providers and the corporate data available to the market on the portfolio date is used to calculate the aggregate amounts. The KPIs are calculated by comparing the market value of Taxonomy-aligned investments with total assets in included portfolios. The table for the life insurance operations in the updated regulatory framework now includes exposure to fossil gas and nuclear energy activities. 93Handelsbanken Annual Report 2025 2.4
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Social information Social information Disclosure Requirements ESRS S1 Own workforce Strategy 95 ESRS 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 95 Impact, risk and opportunity management 95 S1-1: Policies related to own workforce 95 S1-2: Processes for engaging with own workforce and workers’ representatives about impacts 96 S1-3: Processes to remediate negative impacts and channels for own workers to raise concerns 96 S1-4: Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 97 Metrics and targets 98 S1-5: Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 98 S1-6: Characteristics of Handels banken’s employees 99 S1-7: Characteristics of non-employee workers in Handelsbanken’s own workforce 99 S1-8: Collective bargaining coverage and social dialogue 99 S1-9: Diversity metrics 99 S1-10: Adequate wages 100 S1-11: Social protection 100 S1-13: Training and skills development metrics 100 S1-14: Health and safety metrics 100 S1-15: Work-life balance metrics 100 S1-16: Remuneration metrics (pay gap and total remuneration) 100 S1-17: Incidents, complaints and severe human rights impacts 100 ESRS S4 Consumers and end-users Strategy 101 ESRS 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 101 Impact, risk and opportunity management 101 S4-1: Policies related to consumers and end-users 101 S4-2: Processes for engaging with consumers and end-users about impacts 101 S4-3: Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 102 S4-4: Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions 102 Metrics and targets 102 S4-5: Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 102 Entity specific – Contribute to Society Strategy 104 Impact, risk and opportunity management 104 Metrics and targets 105 94 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Social information
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ESRS S1 Own workforce Strategy ESRS 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Handels banken’s values and strong corporate culture are vitally important to the Bank’s long- term success and serve as its foundation for being an attractive employer. The Bank’s busi - ness concept is based on trust and respect for individuals, both customers and co-workers. The decentralised way of working creates commitment, clear responsibilities and oppor - tunities for co-workers to make an impact, strengthening the level of engagement and the Bank’s operations. The Bank’s long-standing and constructive relationships with trade unions play an important role in this regard. The Bank promotes the right of all employees ¹ to join a trade union or employee organisation. The collective competence of co-workers ² is crucial to the Bank’s competitiveness. Co- worker development is therefore a prerequisite for the Bank’s ability to ensure customer satis - faction and conduct its operations in a long- term sustainable manner. All co-workers are offered continuous skills development in line with the changing needs of the business, its customers and the world in accordance with current policies and regulations. As a large employer with operations in several markets, the Bank may be exposed to social risks related to health, safety and respect at the workplace. Handels banken works actively to ensure a safe, inclusive and respectful work environment. A good work environment is a prerequisite for co-workers’ health and well-being and thus also for the Bank’s long-term profitability. Attracting, devel- oping and retaining co-workers with different backgrounds and experiences, strengthens the Bank’s capacity to understand its custom - ers’ needs and to adapt to changes in society. Handels banken adopts a long-term approach to employment and aims to offer competitive and equal terms of employment. Remuneration is to be gender-neutral. The Bank engages in structured and continuous efforts to identify and address unfair pay gaps as part of its work on achieving equal pay and equal terms. Overall, the Bank’s assessment is that the identified positive and negative impacts linked to working conditions and equal treatment and opportunities are mainly linked to the Bank’s role as a large employer in several markets. These impacts are not deemed to be directly linked to Handels banken’s strategy or business model and are instead managed as part of the Bank’s employer responsibility and its established governance procedures for personnel-related issues. Impact, risk and opportunity management S1-1: Policies related to own workforce Handels banken has a number of steering doc - uments in place to address the Bank’s positive and negative impacts with respect to labour practices and equal treatment and opportuni - ties for its own workforce. The main steering documents are: • Policy for remuneration • Guidelines for work environment • Policy for ethical standards, for more infor - mation, see section GOV- 1 on page 60 • Policy for sustainability, for more information, see section GOV-1 on page 60 • Guidelines regarding human rights and working conditions. All steering documents apply to all co-workers in the Group and form the basis for the Bank’s work to minimise negative impacts and amplify positive impacts on its own workforce. For more information on the policies, see the sec - tion GOV-1 on page 59. Handels banken aims to create a healthy, good and safe workplace characterised by trust and respect, where all co-workers have Social information This section describes the Bank’s impacts, risks and opportunities with regard to social sustainability. It covers the Bank’s own work - force as well as customers and other consum - ers and end-users, including targets, gover - nance and work methods to amplify positive impacts and minimise negative impacts and risks. For consumers and end-users, the Bank ensures the protection of personal data and data security through established steering documents, technical safeguards and continu - ous follow-up. Handels banken works continu - ously to protect its customers’ data, transac - tions and IT environments in accordance with international standards and current legislation. ESRS S1 Own workforce Working conditions Impact, risk, opportunity Value chain Area in the value chain Time horizon Safe labour practices and positive work environment Actual positive impact Own operations Co-workers Short/ medium/long Work-related incidents Actual negative impact Own operations Co-workers Short/ medium/long Equal treatment and opportunities for all Skills development Actual positive impact Own operations Co-workers Short/ medium/long Diversity and inclusion at the workplace Potential negative impact Own operations Co-workers Short/ medium/long Unfair pay gaps Potential negative impact Own operations Co-workers Short/ medium/long 1) “Employees” refers to all Bank employees excluding external consultants. For more information about the Bank’s employees, see S1-6 on page 99. 2) “Co-workers” refers to all Bank employees as well as external consultants. For more information about external consultants, see S1-7 on page 99. 95Handelsbanken Annual Report 2025 2.4
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a solid foundation to feel good and develop. This is a core element of the Bank’s corporate culture and a prerequisite for long-term busi - ness success. The policy for remuneration states that the Bank’s remuneration system should be appropriate, support a sound risk culture and be aligned with the Bank’s busi - ness model and values. Remuneration must be market-based, equal and gender-neutral, and enable the Bank to attract, recruit, retain and develop talented co-workers. As a general rule, Handels banken offers fixed remuneration. Performance-based vari - able remuneration is applied restrictively. Handels banken HR ensures that remuneration within Handels banken is applied in accordance with external and internal regulations. The independent control functions monitor and analyse the remuneration system and report material risks and flaws to the Board’s Remu - neration and Risk committees. For more infor - mation on remuneration and governance, see section GOV-3 on page 61 and the Bank’s remuneration report on handelsbanken.com. The guidelines for work environment state that systematic work environment activities are to be carried out throughout the Group, with the aim of ensuring that co-workers feel good, develop and function optimally and feel secure and respected and that they are able to enjoy a good work-life balance. Work environ - ment management includes regular risk assessments, follow-up and actions, and is integrated into the Bank’s annual business planning. The CEO has overall responsibility for the work environment and delegates tasks to the responsible managers, with support from the HR function. The policy for ethical standards states that all operations within Handels banken shall observe high ethical standards. Discrimination, victimisation, sexual harassment or other forms of harassment based on gender, transgender identity or expression, ethnicity, religion or other beliefs, disability, sexual orientation, age or on any other grounds are not accepted, either internally or in relation to external parties. The Bank has an established whistleblower system that allows suspected irregularities to be reported. For more information on ethics, the whistleblower system and compliance, see section GOV-1 on page 60. The guidelines regarding human rights and working conditions complement the policy for sustainability and clarify the Bank’s commitment related to human rights and fundamental labour prac - tices. The Bank is to avoid causing or contrib - uting to negative impacts on human rights in its own operations and remedy such impacts if they arise. The guideline applies to the Bank’s own workforce and its business relationships. Handels banken supports the UN Guiding Prin - ciples on Business and Human Rights and act in compliance with international norms, such as the ILO Core Conventions, the OECD Guidelines for Multinational Enterprises and the UN Global Compact. The Bank does not accept child labour, forced labour or human trafficking in its own operations or in its busi - ness relationships. Handels banken’s framework for gender equality, diversity and inclusion complements the above steering documents and is an inte - gral part of the Bank’s corporate culture. The framework aims to ensure equal rights, oppor - tunities and conditions for all co-workers and to ensure that the Bank reflects the diversity of the communities in which it operates. This work is followed up as part of the ongoing governance of the operations. Due diligence processes, management of identified impacts, and the Bank’s dialogue with co-workers are described in further detail in sections S1-2, S1-3 and S1-4 on pages 96–98. The framework for gender equality, diversity and inclusion is central to Handels banken’s efforts to be an equal opportunity workplace, to utilise the benefits of diversity and to create an inclusive culture. The framework is estab - lished by the Head of Handels banken HR and supplements the other steering documents that apply to the entire Group. S1-2: Processes for engaging with own workforce and workers’ representatives about impacts Handels banken’s decentralised way of work - ing aims to foster commitment and give every co-worker both considerable responsibility and opportunities to make an impact on the Bank’s operations. All managers are respon - sible for maintaining a close and regular dia - logue with their co-workers and with trade union or workers’ representatives as part of the daily operations. These dialogues allow early signals – for example, regarding the work environment – to be identified and addressed. In addition to ongoing dialogues, Handels - banken has an established structure for busi - ness and co-worker development whereby all employees participate in establishing targets and activities in the annual, joint business plan. As part of the Bank’s framework of co-worker development, at least one individual planning and performance review is conducted be - tween managers and co-workers each year, resulting in an individual action plan. Perfor - mance reviews address the current situation, the work environment, work duties, the co- worker’s development in their current position, and future career opportunities. The dialogue focuses on the individual and aims to ensure the co-worker’s well-being, development and a sustainable work-life balance. The Bank has not conducted any in-depth analysis of groups at particular risk of vulnerability during the year. As part of this ongoing dialogue with the Bank’s co-workers and workers’ representa - tives, a Group-wide work environment survey is conducted annually, based on the Bank’s health factors. For the health factor of commu - nication, which focuses in part of the continu - ous dialogue between the Bank’s managers and co-workers, 95 per cent of co-workers said they have had regular follow-ups during the year. For more information about the work environment survey and the Bank’s systematic work environment management, see section S1-4 on page 97. Handels banken has a long-standing tradition of cooperating with trade unions, which is an integral part of the Bank’s working methods. These dialogues take place both directly with the Bank’s co-workers and via workers’ repre - sentatives. This cooperation is governed by national legislation as well as local and central collective bargaining agreements and covers various areas, including organisational changes, employee and rehabilitation issues, new pro - cedures, and the appointment of new manag - ers. Country-specific cooperation forums have been established in all home markets and meet at least quarterly. In addition to matters dealt with in the dialogue with union organisa - tions at the national level in each country, Handels banken also has a European Works Council (EWC). For more information about EWC, see section S1-8 on page 99. S1-3: Processes to remediate negative impacts and channels for own workers to raise concerns A good and inclusive work environment is cru - cial to co-workers’ health and well-being and is a prerequisite for Handels banken’s long-term profitability. The Bank works systematically to identify, manage and remediate negative impacts on its own workforce. The Group-wide work environment survey, which covers all co-workers, is a central part of the Bank’s sys - tematic work environment management. The survey includes questions about co-workers’ knowledge of how to handle instances of victi - misation, discrimination, sexual harassment or other forms of harassment, and threatening or violent situations. In this year’s survey, 98 per cent of co-workers said they have a good understanding of how to respond to such occurrences. For more information about monitoring of work environment management, see section S1-4 on page 97. Handels banken has clear procedures and guidelines for managing poor health, illness and other work environment incidents. All employees are covered by local company healthcare programmes or the equivalent, and the Bank has partnership agreements with external providers of work environment expertise. 96 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Social information
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All work environment incidents are to be reported in the Bank’s internal system, WEIN. This includes work-related injuries, accidents, work-related illnesses, near-misses, victimisa - tion or harassment, and intimidation. Incidents are investigated by the responsible manager – if appropriate, in consultation with a workers’ representative – and measures are taken to prevent recurrence similar events from recur - ring. Whenever possible, the individual con - cerned should be involved in the investigation. WEIN is available to all co-workers via the Bank’s intranet. All co-workers undergo mandatory safety training each year, which includes information on incident reporting. Handels banken encourages an open climate where co-workers can report misconduct or irregularities. Reports should firstly be made to the co-worker’s immediate supervisor or senior manager. If this is not appropriate, the Bank’s whistleblower system can be used. The sys - tem is managed by an external party and pro - tects the reporter’s identity in accordance with applicable legislation and the Bank’s policy for ethical standards. Handels banken’s whistle- blower system is available for both internal and external stakeholders via the intranet and the Bank’s public website. Information on the Bank’s reporting channels, incident manage - ment procedures and follow-up is available on the intranet. Co-workers’ awareness of – and confidence in – the Bank’s reporting channels is monitored through the annual work environ - ment survey. The ongoing dialogue conducted as part of the Bank’s daily operations and in planning and performance reviews between managers and co-workers offers further opportunities to gather viewpoints and manage both positive and negative impacts related to working con - ditions and work environment. S1-4: Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions Handels banken aims to be an attractive employer and offers competitive terms of employment for all forms of employment. During the year, the proportion of permanent employees was 95 per cent (94). In addition to statutory requirements and collective bargain - ing agreements, the Bank provides benefits that aim to promote long-term employment, gender equality and involvement in the Bank’s performance. Collective bargaining agreements form the basis for the terms of employment in the Bank's markets. In addition, the Bank offers competitive benefits, including supplementary remuneration for parental leave, pension solu - tion adapted to local legislation and, in certain cases, credit with special terms for employees. Pensions are a central part of the total remu - neration and may include retirement pension, disability pension and surviving family member protection. The Oktogonen profit-sharing scheme allows all employees to benefit from the Bank’s long-term value creation, provided that the Bank’s corporate goals are met. Handels banken promotes the right of all employees to join a trade union or employee organisation. In addition to collective bargain - ing agreements, the Bank also engages in dia - logues through local and national cooperation forums, such as Work Councils in certain countries. Information about collective cover - age is provided in section S1-8. Handels - banken engages in systematic work environ - ment management encompassing the physical, organisational and social work envi - ronment. This work is based on an annual pro - cess that includes regular work environment surveys, risk assessments, actions, controls of actions, follow-up and reporting in accordance with local legislation. The Group-wide work environment survey, which is based on the Bank’s health factors, is conducted annually and serves as the basis for work environment plans and activities at unit level. During the year, a new tool was introduced for the work environment survey that offers improved ana - lytical features. However, this means that the results are not fully comparable with last year. Handels banken does not accept instances of victimisation, discrimination or harassment, including sexual harassment. All co-workers have a responsibility to take action when they witness unacceptable behaviour. Incidents and actions are followed up at local and national level as part of the joint health and safety forum. Appropriate action is taken depending on the nature of the incident, for example, in the form of a customised rehabilitation pro - gramme or via occupational health services. Handels banken offers an allowance for well- being and leisure activities, and also regularly organises healthy living initiatives. Handels banken works actively to ensure equal pay and to rectify unfair pay gaps between women and men. This work takes place on a continuous basis, in connection with recruitment and salary reviews, and when employees return from parental leave. In sev - eral countries, salaries are mapped out every year in collaboration with trade unions. More information about pay gaps is provided in sec - tion S1-16. Handels banken’s strength is derived from the combined expertise of its co-workers. Through continuous skills development, the Bank ensures its long-term competitiveness, its ability to meet customer needs and its compliance with applicable regulations. Each co-worker’s development takes place in dia - logue with their immediate supervisor and is based on the individual, operations, customers and the business environment. Skills development primarily takes place through on-the-job learning, supplemented with structured training and programmes. Handels banken offers a wide range of Group- wide training courses and uses a digital learn - ing platform to monitor and document partici - pation in formal training courses. Co-workers are also given the opportunity to participate in external training based on individual develop - ment plans. To ensure compliance with regulations and industry standards, several mandatory training courses are conducted for all co-workers: In 2025, this included training in financial crime, with a focus on measures to counteract money laundering, terrorist financing and related crime, security training covering phys - ical security and cybersecurity, and training in the General Data Protection Regulation (GDPR). The results of the training in financial crime are presented in section G1 on page 109. Leadership development is a central part of the Bank’s skills supply management. Leaders with one to two years of managerial experience have the opportunity to participate in the Handels banken Leadership programme, which aims to create a shared foundation for leader - ship at the Bank. A total of 142 (183) leaders completed the programme during the year. Sustainability is an integral component of the Bank’s skills development. The “Sustain - ability in the financial industry” course is mandatory for all co-workers and consultants with assignments longer than six months. The course includes sections on international and European regulations, climate risks, the EU Taxonomy Regulation and the SFDR, and requirements relating to advisory services and product oversight governance. Since the course was launched, 96.5 per cent of co-workers have completed the training. In addition, targeted sustainability refresher courses were arranged for 3,800 advisors in Sweden in 2025, focusing on companies and human rights as well as AI and sustainability. Through these courses, Handels banken works systematically to ensure that its co-workers have relevant and up-to-date skills to perform their duties responsibly and in accordance with the Bank’s values, business model and long-term targets. Handels banken’s work related to gender equality, diversity and inclusion is based on the Bank’s core values and steering documents, which are described in sections S1-1 and ESRS 2 SBM-3. This section describes how these principles are put into practice through struc - tures, targets and follow-up. The Bank endeavours to reflect the diversity of the communities where it operates, and to achieve or maintain a balanced gender repre - sentation in different roles and parts of the organisation. To support these efforts, the 97Handelsbanken Annual Report 2025 2.4
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Bank prioritises management succession planning and recruitment, skills development, health and work environment, work-life balance and gender-equal salaries. The Bank applies a skills-based approach to recruitment in order to ensure a structured and objective assessment of candidates’ qualifica - tions against established requirements. This promotes equal treatment and helps to prevent unfair assessments in the recruitment process. Work related to gender equality, diversity and inclusion is coordinated at Group level through a Diversity Council, with representa - tives from different parts of the organisation. Local committees and forums have also been created in Sweden, the UK and Norway to address these issues based on local condi - tions. Handels banken in Sweden is also a member of the Diversity Charter Sweden. Women accounted for 49 per cent (49) of all employees, and the proportion of women in management positions was 44 per cent (44). Handels banken in Norway and the UK are signatories to the Women in Finance Charter. The target in the UK is for the proportion of female managers to be 40 per cent by 2031. In 2025, the proportion of female managers was 31 per cent (30) in the UK and 43 per cent (42) in Norway. More detailed information on gender balance and related workforce metrics is provided in section S1-5 and S1-6 on pages 98–99. Metrics and targets S1-5: Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Handels banken aims to be a workplace where all co-workers have equal rights, opportunities and conditions to develop and contribute to the Bank’s long-term success. A good and inclusive work environment is a fundamental prerequisite for ensuring that co-workers feel good, develop and perform at optimal capacity. All metrics and targets are internal, and the Bank’s own workforce and workers’ represen - tatives were not involved in formulating the targets. The metrics have not been externally validated. To manage the Bank’s impacts, risks and opportunities related to its own workforce, the Bank has established targets for equal pay, an even gender balance, and a good and inclu - sive work environment. The gender balance and equal pay targets were established in 2024 and the target for a good and inclusive work environment in 2025. Progress is moni - tored annually and reported in the table “Targets – own workforce”. The gender balance target is set for 2026. The target for a good and inclusive work envi - ronment is measured annually through the Bank’s Group-wide work environment survey. A new survey platform was introduced in 2025, and the target formulation is now based on the index scale applied in the new platform. Work related to equal pay is based on the Bank’s policy for remuneration. While this work is monitored continuously, it is not set as a measurable target. This is due to the fact that gender pay gaps are partly structural in nature and require long-term commitments, while the Bank’s work on this issue also needs to be adaptable to collective bargaining agreements as well as current and future legislation. More information on how the Bank works to achieve equal pay can be found in section S1-4 on page 97. Employees by contract type, broken down by gender 2025 Female Male Others Not disclosed Total² Number of employees 1 6,114 6,323 - - 12,437 Number of permanent employees 1 5,762 5,997 - - 11,759 Number of temporary employees 1 79 61 - - 140 Number of non-guaranteed hours employees 1 273 265 - - 538 2024 Female Male Others Not disclosed Total³ Number of employees 1 6,320 6,480 - - 12,800 Number of permanent employees 1 5,980 6,175 - - 12,155 Number of temporary employees 1 88 68 - - 156 Number of non-guaranteed hours employees 1 252 237 - - 489 1) Number of employees refers to the head count used to calculate FTEs. Number of temporary employees refers to the number of temporary employees with a monthly salary. Number of non-guaranteed hours employees refers to the number of temporary employees with an hourly contract. 2) Calculation is an average for the year. 3) The information applies as per 31 December 2024. Targets – own workforce Targets Targets and metrics 2025 2024 Equal pay – The Bank aims to achieve equal pay across all areas of the Bank. Average pay gap, gap between women and men in relation to men, all employees, % ¹ Sweden 17 17 UK 25 25 Norway 9 11² The Netherlands 18 19 Total 20 20 Good and inclusive work environment – Handels banken aims to achieve a score of at least 80 ³ for Trust and Respect ⁴. All co-workers 87 -⁵ Gender balance – the Bank aims to have a gender- balanced workforce, with women or men accounting for at least 40% of all employees and managers. The target is to achieve and/or maintain gender balance in these roles by 2026. Gender breakdown, women/men, % All employees Managers 49/51 44/56 49/51 44/56 1) Objective factors that explain pay gaps (such as complexity of work duties and experience) were not taken into account. 2) The comparative figure for 2024 was corrected after an improved process featuring enhanced and more in-depth internal control was implemented. 3) Index scale 0–100. 4) The Trust and Respect Index includes questions on equal treatment and an inclusive work environment in the Bank’s annual work environment survey. 5) No comparable result for 2024 as the Bank has a new tool for the Group-wide work environment survey. For more information about the target process, see page 75. 98 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Social information
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S1-6: Characteristics of Handels banken’s employees Employee head count by gender Number of employees (head count) Gender 2025 2024 Male 6,323 6,713 Female 6,114 6,578 Other - - Not reported - - Total employees 12,437 13,291 Number of employees refers to the head count used to calculate full-time equivalents (FTEs). Calculation is an average for the year. Gender is based on legal gender. Number of employees in home markets Number of employees (head count) Country 2025 2024 Sweden 7,453 7,851 UK 3,079 3,184 Norway¹ 1,083 1,098 The Netherlands¹ 520 508 1) These markets represent less than 10% of the Bank’s total number of employees. Number of employees refers to the head count used to calculate full-time equivalents (FTEs). Calculation is an average for the year. In 2025, staff turnover in the Group amounted to 9.7 per cent (7.5), and 1,206 employees (993) ended their employment at Handels - banken. For more information, see note G8 of the Annual Report on page 210. S1-7: Characteristics of non-employee workers in Handelsbanken’s own workforce Non-employees in Handels banken’s own workforce 2025 2024 Number of external consultants¹ 555 960 1) A majority of external consultants work with IT -related activities. Characteristics of non-employees in Handels - banken’s own workforce pertain to consultants and are compiled by country on a monthly basis, based on the scope of the contract on the last day of the preceding month. Consul - tants are reported as full-time equivalents (FTEs) calculated on the basis of each con - tract. The compilation is coordinated by the Bank’s consultancy procurement unit in Swe - den. Once all the data for the preceding year have been reported, an average is calculated using the number of non-employees in the Group’s own workforce. During the year, the number of consultants was reduced as a result of the Bank’s increased focus on efficiency and cost adjustments. S1-8: Collective bargaining coverage and social dialogue The percentage of employees at the Bank covered by collective bargaining agreements amounted to 70 per cent (70), which pertains to employees in Sweden, Norway, Finland and Luxembourg. Employees who are not mem - bers of a union are also covered by the terms of the collective bargaining agreement, but are not represented by the employee organisation in individual matters. Collective bargaining agreements are the foundation of the terms of employment that the Bank offers to both tem - porary and permanent employees. In addition to the dialogue with union organi - sations or Work Councils at the national level, in accordance with collaboration agreements or national legislation, Handels banken also has a European Works Council (EWC). The EWC has served as a forum for information and dia - logue concerning cross-border matters in the Group, such as the work environment and future performance, since the 1990s. This work is regulated through a collaboration agreement and consists of representatives from the Executive Team as well as workers’ representatives from Sweden, Norway, the UK, the Netherlands and Luxembourg. As a general rule, the EWC meets four times a year, supple - mented with an ongoing dialogue according to established processes. S1-9: Diversity metrics Diversity metrics 2025 2024 Gender breakdown, number of women/men Executive Team¹ 3/5 4/5 Gender breakdown, women/men, % Executive Team¹ 38/62 44/56 Age breakdown, number All employees <30 yrs 1,840 2,005 30–50 yrs 5,616 5,903 >50 yrs 4,833 4,892 Managers <30 yrs 26 31 30–50 yrs 924 961 >50 yrs 804 846 Executive Team¹ <30 yrs 0 0 30–50 yrs 2 2 >50 yrs 6 7 Age breakdown, % All employees <30 yrs 15 15.7 30–50 yrs 45.7 46.1 >50 yrs 39.3 38.2 Managers <30 yrs 1.5 1.7 30–50 yrs 52.7 52.3 >50 yrs 45.8 46 Executive Team¹ <30 yrs 0 0 30–50 yrs 25 22.2 >50 yrs 75 77.8 1) The Bank’s highest management body is the Executive Team. The Executive Team comprises a forum available to the Chief Executive Officer to coordinate the strategic governance of the Group, and to address operational Group-wide issues and other critical matters from a Group perspective. The members of the Executive Team are appointed by the Board. For more information on the members of the Executive Team, see page 55 of the Corporate Governance Report. Collective bargaining coverage and social dialogue in home markets Collective bargaining coverage Social dialogue Coverage rate Employees – EEA (for countries with >50 empl. representing >10% total empl.) Employees – Non-EEA (estimate for regions with >50 empl. representing >10% total empl.) Workplace representation (EEA only) (for countries with >50 empl. representing >10% total empl.) 0–19% The Netherlands¹ UK 20–39% 40–59% 60–79% 80–100% Sweden, Norway¹ Sweden, Norway¹, the Netherlands¹ 1) These markets represent less than 10% of the Bank’s total number of employees. 99Handelsbanken Annual Report 2025 2.4
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S1-10: Adequate wages Total employee remuneration at Handels - banken is to be on market terms, gender- neutral and help to strengthen the Bank’s competitiveness and profitability. The level of remuneration is to be sufficient to allow the Bank to attract, recruit, retain and develop skilled co-workers, and to ensure good man - agement succession planning. This is stated in the Bank’s remuneration policy, which is set by the Board. For more information on follow-up of the remuneration policy, see section GOV-3 on page 61. Handels banken applies individual salaries, where salary is determined in connection with recruitment, following a change in role and through annual salary reviews between the manager and employee. Terms and benefits may vary between countries depending on local market conditions, collective bargaining agreements and legislation. All employees receive a salary that is deemed adequate and, at a minimum, equivalent to the reference sala - ries applicable under collective bargaining agreements and/or national legislation. S1-11: Social protection All Handels banken employees are covered by social protection against loss of income in the event of illness, unemployment, work-related injury, parental leave and pension. This is regu - lated either by collective bargaining agree - ments or in accordance with local legislation. S1-13: Training and skills development metrics A focus on skills development is a prerequisite for high-quality operations, regulatory compli - ance and a long-term sustainable workforce. Leaders play a crucial role in creating the con - ditions for learning, and each co-worker is expected to assume responsibility for their own development and that of the organisation. For more information about training and skills development, see section S1-4 on page 97. Average number of registered training hours per employee, by gender, hours¹ 2025 2024 Female 20.5 22.8 Male 18.6 21.7 1) Pertains to training completed via Handels banken’s training platforms. All of the Bank’s employees are covered by a recurring performance evaluation. In this year’s work environment survey, 96 per cent of the Bank’s employees stated they had annual performance reviews with their immediate manager . More information about performance reviews is provided in section S1-2 on page 96. Proportion of co-workers who participated in a performance evaluation and performance review, by gender, %¹ 2025² 2024 Female 97 97 Male 96 96 Prefer not to state - 94 Other gender identity 90 100 1) Refers to the proportion of the Bank’s co-workers who responded positively to the statement, “Do you have regular PLUS reviews with your manager?” in the Bank’s Group-wide work environment survey. The denominator for the calculation is the number of work environment survey respondents. 2) No comparable result for 2024 as the Bank has a new tool for the Group-wide work environment survey. S1-14: Health and safety metrics Work environment activities at Handels banken are conducted in accordance with local legis - lation and applicable regulations in all markets where the Bank operates. All co-workers are included in the Bank’s Group-wide work envi - ronment survey, which forms the foundation of the Bank’s health and safety management system and aims to prevent work-related ill health and injuries. More information about the Bank’s systematic work environment manage - ment and the annual work environment survey is provided in section S1-4 on page 97. For additional health and safety metrics, see sec - tion S1-5 on page 98. S1-15: Work-life balance metrics Handels banken aims to meet its employees’ needs during various phases of their life in a flexible way. 100 per cent (100) of the Bank’s employees are entitled to family-related leave in accordance with local legislation and/or collective bargaining agreements. In 2025, 22 per cent (19) of the Bank’s employees took such leave. Of these employ - ees, 56 per cent (56) were women and 44 per cent (44) were men. S1-16: Remuneration metrics (pay gap and total remuneration) Average pay gap, gap between women and men in relation to men, all employees, %¹ 2025 2024² Sweden 17 17 UK 25 25 Norway 9 11³ The Netherlands 18 19 Total 20 20 Annual total remuneration ratio 2025 2024² Total remuneration ratio (highest paid individual to the median annual total remuneration for all employees excluding the highest-paid individual) 22 22 1) Objective factors that explain pay gaps (such as complexity of work duties and experience) were not taken into account. 2) Data was produced using the new calculation basis according to the European Sustainability Reporting Standards (ESRS). Accordingly there are no comparative figures for 2023 since earlier data does not provide comparability with the current year. 3) The comparative figure for 2024 was corrected after an improved process featuring enhanced and more in-depth internal control was implemented. S1-17: Incidents, complaints and severe human rights impacts To promote a safe and good work environ - ment, all work-related incidents and complaints must be documented and investigated. In 2025, 72 cases (73) related to discrimination including harassment were reported through the Bank’s Group-wide and local channels. The number of reported complaints related to working conditions, and equal treatment and opportunities for all – including work-related injuries, accidents, work-related illnesses, near-misses, and intimidation – amounted to 208 (233). No complaints were received by the National Contact Points under the OECD Guidelines for Multinational Enterprises. The majority of reported cases related to discrimi - nation, including harassment and working con - ditions, as well as equal treatment and oppor - tunities for all, refer to incidents that involve persons outside the Bank and have exposed the Bank’s co-workers to situations that create a sense of insecurity or lack of respect in the workplace. All reported cases are handled ac - cording to the Bank’s procedures and guide - lines. The cases are reviewed and actions are taken to prevent events from being repeated. For more information on the Bank’s proce - dures and the channels that co-workers can use to raise concerns, see section S1-3 on page 96. During the reporting period, Handels - banken paid SEK 0 (81,043) in compensation, fines or penalties related to the incidents and complaints described above. For more infor - mation about Handels banken’s staff costs, see note G8 of the Annual Report on page 210. 100 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Social information
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ESRS S4 Consumers and end-users ESRS S4 Consumers and end-users Strategy ESRS 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Ensuring customers feel secure and confident in the Bank is crucial to Handels banken’s busi - ness model and long-term performance. The Bank continuously endeavours to strengthen its information security and data protection in order to protect customers’ data, privacy and transactions as well as the Bank’s IT environ - ment, including its control over outsourced IT operations. Accessible and secure IT services are a prerequisite for the Bank’s operations and for enabling customers to reliably use its services in an increasingly digital environment. Failures in the processing of customer infor - mation, such as incidents or personal data leaks, could have a significant negative impact on individuals and damage trust in the Bank. Severity and potential consequences are assessed based on the type of information involved. The Bank’s processes for information security and data protection are therefore based on the type of information and its pro - tection value, classified and assessed in terms of confidentiality, integrity and availability. In line with applicable data protection rules, the Bank takes into consideration in its pro - cesses whether the personal data processing concerns particularly vulnerable groups, such as children and employees. The CEO establishes guidelines stating the overall goals and strategy of IT operations in the Handels banken Group. For further informa - tion, see G2 Operational Risk: IT operations in the Handels banken Group, Security and data protection on page 200. Impact, risk and opportunity management S4-1: Policies related to consumers and end-users The steering documents that address the Bank’s material impact and financial risks related to consumers and end-users area are: • Policy for operational risk in the Handels banken Group • Guidelines for security and data protection in the Handels banken Group • Policy for complaints management in the Handels banken Group. For more information, see section GOV-1 on page 59 and the Selection of steering docu - ments table page 60. The policy for operational risk, which is adopted by the Board, includes IT and informa - tion security risks and states that the Bank has a low risk tolerance for operational risks. The policy emphasises a proactive approach to preventing risks and mitigating potential losses and describes overall strategies and measures for risk management with the aim of maintain - ing a high level of operational resilience, with a particular focus on information and communi - cation technology and security. The policy also specifies the basic conditions required to maintain the Bank’s operational resilience and the ability to maintain critical operations in the event of disruptions, attacks or interruptions in digital environments. The policy is supple - mented with more detailed guidelines endorsed by the CEO with respect to security and data protection in the Handels banken Group. The guidelines for security and data protec - tion include both administrative and technical security measures, including rules, instruc - tions, technical protection, physical protection, and protection of security-sensitive activities. Security solutions should be proportionate to the negative consequences of inadequate security or mishandling of information, taking into account the Bank’s low risk tolerance and its need to protect customer privacy. All co-workers are responsible for complying with the rules for information protection, and all managers are responsible for compliance in their own area of responsibility. Annual training is conducted to ensure awareness and compli - ance. Security activities are conducted based on an information security management sys - tem in accordance with the ISO/IEC 27001 international standard, with the aim of structur - ing, monitoring and continuously improving the Bank’s security work. The guidelines were updated in 2025 to clarify methods and pro - cesses for risk management as well as man - agement of information and communication technology services and assets to meet the requirements of the Digital Operational Resil - ience Act (DORA). The guidelines were also clarified with regard to the security require - ments when engaging external suppliers. According to the policy for complaints man - agement, customer complaints should be han - dled promptly and in accordance with applica - ble regulations. Every complaint is taken very seriously and is seen as an opportunity to cor - rect errors and address shortcomings or mis - understandings. The aim is that the person who has made the complaint should feel acknowl - edged and treated with respect. The policy is supplemented with instructions describing Handels banken’s processes for managing complaints. S4-2: Processes for engaging with consumers and end-users about impacts Handels banken attaches great importance to being available and being close to its cus - tomers when a need arises. Having a local presence combined with digital solutions enables the Bank to offer personalised cus - tomer meetings and advisory services, both through local bank branches and through digi - tal channels. In Sweden, customers can con - tact the Bank all hours of the day by phone by accessing Personal service using secure identification. The Bank’s communication with customers and end-users must inspire trust, be accurate, Information-related impacts for consumers and end-users Impact, risk, opportunity Value chain Area in the value chain Time horizon Disruption in service deliveries Potential negative impact Own operations & downstream Deposits, asset management, systems and processes, transaction management & lending Short/ medium/long Leakage of customer data Potential negative impact Own operations & downstream Deposits, asset management, systems and processes, transaction management & lending Short/ medium/long Fines or sanctions Risk Own operations & downstream Deposits, asset management, systems and processes, transaction management & lending Short/ medium/long 101Handelsbanken Annual Report 2025 2.4
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factual and easy to understand, and be char - acterised by openness, accessibility and speed. These principles are set out in Handels - banken’s communication policy and apply both in normal circumstances and in crisis situ - ations, including unplanned events such as IT outages affecting customers. Shared instruc - tions and templates for business continuity planning are available for such situations and are updated regularly, at least annually. In the event of a personal data breach that is deemed to have had a significant impact on one or more individuals, the individuals in question are informed in accordance with applicable regulations. Such events are assessed and managed on a case-by-case basis and, where necessary, the customer is contacted by the responsible branch following guidance from the Privacy Officer. While information-related incidents could have particularly serious consequences, including for vulnerable groups such as chil - dren, the Bank applies the same procedures for all customers. Customers who wish to lodge a complaint should first contact the person who assisted with the matter or the branch manager at the local branch. For a review of the branch’s deci - sion there are designated complaints officers in each home market whose contact details are available on the Bank’s website. S4-3: Processes to remediate negative impacts and channels for consumers and end-users to raise concerns Handels banken endeavours to ensure that customers who lodge complaints are to feel respected and acknowledged. Complaints can be submitted by e-mail, phone or letter and are handled carefully and promptly in accordance with regulations and internal guidelines. Each complaint is formally reviewed and, if the com - plaint cannot be fully or partially rectified, a statement of the reasons for this is provided in writing upon request. Customers who are dissatisfied with the Bank’s decision and wish to appeal may con - tact the National Board for Consumer Disputes (ARN) in Sweden or the corresponding body in the Bank’s other home markets. Information on complaints management is available on the Bank’s website. In order to ensure a high level of customer protection and an efficient com - plaints process, co-workers undergo regularly training in complaints management. Any com - plaints received are compiled and analysed on a quarterly basis and, where necessary, action is taken to improve processes and the Bank’s products and services. In cases where com - plaints about the process are received, these are followed up and adjustments are made if necessary. The Bank continuously reviews its relevant policies to clarify how customers are protected against negative consequences when complaints are made. S4-4: Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions Handels banken operates in a changing threat landscape where security risks linked to digi - talisation, geopolitics and technology develop - ment could have material impacts on consum - ers and end-users. To prevent and mitigate negative impacts, the Bank takes a systematic approach to security, information protection and operational resilience, integrating these components into its daily operations. The Bank continuously monitors and as - sesses emerging threats and risks, including those related to the introduction of new tech - nologies and changes in the IT environment. This work is supplemented with updated inter - nal instructions and working methods as well as ongoing training for co-workers in relevant risk areas. Lessons learned from previous inci - dents, both internal and external, are followed up to improve the Bank’s ability to take appro - priate and timely action. Handels banken has established processes for incident, continuity and crisis management. Skills and resource planning is managed as part of the Bank’s annual business planning. When necessary, dedicated functions and resources can be mobilised promptly to handle incidents or extraordinary events that have a major impact on customers or the Bank’s operations. To strengthen its cybersecurity and ope- rational resilience, the Bank participates in national and international forums such as Trusted Introducer, the Forum of Incident Response and Security Teams (FIRST), Finance Sweden’s Banks Security Committee, and the Swedish National Cybersecurity Centre’s Finance Sector Forum. The Bank also partici - pates in a close collaboration with other major Swedish banks aimed at strengthening the sector’s collective resilience to cyber threats. The Bank’s work related to operational resil - ience aims to ensure the continued availability of critical services in the event of disruptions, outages or attacks. This includes operational risk management, business continuity and incident management, and setting require - ments for third-party suppliers, which are sub - ject to the same information security require - ments as the Bank’s own operations. During the year, targeted activities were conducted to strengthen the Bank’s recovery capacity. The work related to DORA transitioned to the main - tenance phase during 2025. Information security work is undertaken in accordance with the ISO/IEC 27001 interna - tional standard. In 2025, the Bank underwent recertification and at the same time expanded the scope of the certification to include iden - tity and access management for internal users. Security activities are process-driven based on established control frameworks and risk analy - sis methods, including the Information Security Forum’s (ISF) Standard of Good Practice and IRAM2. The certificate showing the total scope is available on handelsbanken.com. Data protection is to be conducted continu - ously and be risk-based to ensure compliance with applicable legislation. During the year, the Bank continued to implement shared system support for governance, risk and compliance (GRC), which is expected to strengthen its documentation, risk assessment and monitor - ing of personal data processing and data pro - tection risks. The GRC project is a long-term improvement effort and the Bank aims to com - plete work in the next few years. Any complaints received are analysed on a regular basis in order to identify and address shortcomings that could impact consumers and end-users. The Group’s complaints offi - cers regularly present analyses to the Board, the CEO and product owners, including identi - fied areas for improvement. Individual assess - ments of cases and potential claims are con - ducted in accordance with applicable legis - lation. For more information on handling customer complaints, see section S4-3. Metrics and targets S4-5: Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Handels banken’s overall goal regarding secu - rity is to protect the safety, security and integ - rity of customers and co-workers and to pro - tect assets managed by the Bank. The Bank must deliver reliable and secure services with high availability, which is crucial for maintaining customer confidence and stability in the finan - cial system. Customer needs and expectations are a central component of the Bank’s business and development. However, customers were not directly involved in the formulation or follow-up of the reported metrics and targets. Targets 102 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Social information
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are established and followed up internally, without external validation. To strengthen the Bank’s resilience to secu - rity incidents, all co-workers complete manda - tory cybersecurity training annually in accor - dance with the guidelines for security and data protection and the policy for operational risk. The target is for at least 96 per cent of the Group’s co-workers to have completed the training. The outcome for 2025 was 97.7 per cent (96.6). This metric refers to the share of co-workers who were enrolled in the training course before 1 December and completed it before the end of the year. A high completion rate is considered to indicate good knowledge of security requirements and how to prevent security incidents. Ensuring that the Bank’s self-service sys - tems have a high level of operational reliability and availability is essential to customers’ ability to use the Bank’s services. The Bank’s target is for the Bank’s self- service systems in the Group to have at least 99.30 per cent availability. The level of avail - ability of the Bank’s self-service systems in 2025 was 99.43 per cent (99.41). The metric, calculated as the percentage of uptime in relation to total time, is followed up monthly, but is reported as a weighted full-year out - come. Some improvements were made by the Bank during the year in the calculation method to further increase reliability. The target is set internally in line with the Bank’s low risk tolerance for operational disruptions and is used to highlight operational stability and deviations. The metric for customer privacy and poor management of customer data, which was reported in 2024, has been excluded since it is not deemed to add material value to impact follow-up. The metric for personal data breaches remains in place and is deemed to provide a relevant overview of information- related impacts on consumers and end-users. In 2025, a total of 613 (640) personal data breaches were reported internally in the Group. Of these, 12 (17) breaches pertaining to the Group, excluding the UK, were deemed to require notification under the GDPR and thus were reported to the Swedish Authority for Privacy Protection (IMY) or an equivalent local supervisory authority. In the UK, 1 (0) incident was reported to the Information Commissioner's Office (ICO). All breaches were handled in accordance with the Bank’s processes and procedures. There is no target with respect to the number of incidents. The Bank implements continuous improvements and has determined that a quantitative target is not appropriate since each incident is analysed individually and measures are taken to prevent similar events from occurring. Handels banken endeavours to actively pre - vent and mitigate incidents by applying robust security measures and continuous monitoring of processes to ensure that customer informa - tion is handled securely and correctly. 103Handelsbanken Annual Report 2025 2.4
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Entity specific – Contribute to Society Strategy Handels banken operates on the basis of firm trust in the individual co-worker’s willingness and ability to make independent decisions. The organisation is characterised by a decen - tralised way of working, which means that decisions are made as close to the customer as possible. Handels banken has 407 branches and meeting places in its home markets and operates where its customers live and work. A local branch always has overall responsi - bility for all customers – private individuals, companies and public organisations alike. The branches are independent profit centres with their own responsibilities and extensive man - dates, which sets Handels banken apart from many of its competitors. The branch manager leads the operations based on local conditions and co-workers with customer responsibility have a mandate to make credit decisions in accordance with the Bank’s credit policy. Handels banken has a low risk tolerance, which is reflected in continuously lower credit losses. The aim of this prudent approach is not only to protect the Bank, but also to avoid customers finding themselves in an untenable financial situation. Unhealthy debt can have serious consequences for both households and companies, and the Bank’s approach allows it to assume a social responsibility that extends beyond individual business. In its largest home market, Sweden, Handels - banken has the market’s largest branch net - work with 206 branches and meeting places. At a time when physical banking is on the decline in many places, Handels banken’s local presence helps to maintain its availability, per - sonal relationships and financial infrastructure in local communities. The Bank’s activities in its other home markets also have a similar focus. Through a combination of personal meetings and digital solutions, the Bank can build long-term customer relationships and contribute to the economic stability and devel - opment of the communities where it operates. Its advisory services cover areas such as housing financing, savings, pensions and investments, and aim to strengthen customers’ ability to make informed financial decisions. Increased financial literacy leads to higher customer satisfaction, more sustainable deci - sions and lower credit risk. In light of this, Handels banken has decided to concentrate its community engagement on sharing knowledge about finances. EFN makes financial news, analyses and insights available to a wide audience through various forms of journalism, largely free of charge, contributing to increased financial literacy in society. EFN has a local presence in six locations in Sweden. Handels banken Foundation and Publishing was established in 2024 to coordinate the Bank’s community engagement. Its activities include support for independent research and knowledge sharing on economic and societal issues, as well as the independent EFN Ekonomi- kanalen, which is a wholly owned subsidiary. The Bank works closely with the Handels - banken’s research foundations, which aim to contribute to society by supporting social sci - ences research in business administration, economics and economic history and is the leading private financier of Swedish economic research. In 2025, the research foundations awarded SEK 314 million in grants for eco - nomic research. About 1,200 researchers are estimated to have received some form of financial aid. Impact, risk and opportunity management The main steering documents that address the entity specific sustainability matter of Contribute to society and form the basis of the manage - ment and governance of this matter are: • Policy for ethical standards, for more infor - mation, see page 60. • Policy on governance and steering docu - ments, for more information, see page 60. For more information, see the Selection of steering documents table in section GOV-1 on page 60. These policies affect how Handels banken manages this entity specific sustainability matter, where the Bank has an actual positive impact that in turn can create financial oppor - tunities. The Bank’s concept and working method form the basis for managing these impacts and realising opportunities, through action that is continuously implemented throughout the Group’s operations. The Bank contributes to society by provid - ing responsible financial services that support economic stability and long-term development. Its low risk tolerance means that the Bank refrains from high-risk transactions, even when there is potential for achieving short-term prof - itability. Co-workers and managers in customer- facing roles do not receive variable remunera - tion and do not have volume requirements or centrally set sales targets, which reduces the risk of aggressive sales and enhances customer value. This decentralised approach allows the Bank to adapt to local needs and contributes to long-term customer relationships. Financial stability and profitability provide the Bank with the conditions to reinvest in the business, offer long-term lending and generate tax revenue for society. Measures that strengthen the Bank’s positive impacts and opportunities are an integral part its daily operations, with the aim of maintaining high customer satisfaction. Entity specific – Contribute to Society Contribute to society Impact, risk, opportunity Value chain Area in the value chain Time horizon Responsible and local banking operations coupled with a particular commitment to financial knowledge in society create public benefit and growth through access to good advisory services, raising knowledge and responsible lending. Actual positive impact Own operations & downstream Deposits, asset management, co-workers & lending Short/ medium/ long Responsible banking operations with a strong local presence and particular focus on personal meetings creates customer satisfaction, distribution and business opportunities and thus income at low risk. Opportunity Own operations & downstream Deposits, asset management, co-workers & lending Short/ medium/long 104 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Social information
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Metrics and targets Handels banken’s overall goal is to conduct responsible banking operations that contribute to society. For a relationship bank, customer satisfaction is a key performance indicator for determining whether the business model is effective and the Bank is creating public benefit. Customer satisfaction is followed up through internal and independent external surveys. EPSI Rating Group, which includes the Swedish Quality Index (SQI), conducts annual validated surveys in all of the Bank’s home markets. The Bank aims to achieve its corporate goal – higher profitability than the average of its peer competitors – in part by having more satisfied customers than its competitors. Handels banken does not intend to introduce additional targets or metrics for the area Con - tribute to society other than its established metrics for customer satisfaction. These have been monitored continuously since 1989 and are deemed to provide a long-term and rele - vant foundation for monitoring. The Bank main - tained its strong position in terms of customer satisfaction in 2025. For more information about the survey, see page 16. The credit loss ratio is a supplementary metric that measures how responsibly the Bank conducts its lending. For more information, see Financial stability on page 112. 105Handelsbanken Annual Report 2025 2.4
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Governance information Governance information Disclosure Requirements ESRS G1 Business conduct Impact, risk and opportunity management 107 G1-1: Business conduct policies and corporate culture 107 G1-2: Management of relationships with suppliers 108 G1-3: Prevention and detection of corruption and bribery 108 Metrics and targets 108 G1-4: Incidents of corruption or bribery 108 Entity specific – Counteract financial crime Governance 110 Impact, risk and opportunity management 110 Metrics and targets 110 Entity specific – Financial stability Governance 112 Impact, risk and opportunity management 112 Metrics and targets 113 106 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Governance information
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ESRS G1 Business conduct ESRS G1 Business conduct Impact, risk and opportunity management G1-1: Business conduct policies and corporate culture The steering documents that address the Bank’s material sustainability matters, corporate culture, and corruption and bribery, within busi - ness conduct are: • Policy for ethical standards, for more infor - mation, see page 60 • Policy for management of conflicts of interest • Policy for sustainability, for more information, see page 60 • Policy against corruption, for more informa - tion, see page 60 • Guidelines for supplier arrangements at the Handels banken Group. For more information about steering docu - ments, see GOV-1 on page 59. Handels - banken’s policy against corruption stipulates the Bank’s zero-tolerance of corruption. The policy for management of conflicts of interest stipulates the Bank’s requirements for identi - fying, managing and reporting conflicts of interest. It also stipulates that units where the risk of conflicts of interest is considered to be higher must report identified conflicts and action taken annually. All heads of units are responsible for continuously identifying and managing potential conflicts of interest within their own operations. For information on the management of suspected irregularities and the whistleblower system, see G1-3 on page 108. The Bank’s policies and established risk tolerance form the basis of internal instructions that apply to all employees of the Group and are applied in daily work in all operating areas. Handels banken’s corporate culture is based on a decentralised approach, with trust and respect for individuals. The corporate culture target is long-term and is followed up through the annual work environment survey, which is also used to evaluate such factors as clear and transparent communication, the right condi - tions in place to perform duties as well as per - ceptions of respect, trust and pride. Corporate culture and associated monitoring are closely linked to the Bank’s work with its own work - force. For more information on targets, actions and outcomes, see section S1 beginning on page 95 and S1-5 on page 98. The guidelines for supplier arrangements regulate how the Bank is to manage supplier relationships when suppliers deliver products, services or functions on an ongoing basis. All Governance information This section describes how Handels banken manages governance issues with regard to material impacts, risks and opportunities. The section also provides an account of how the Bank controls and targets identified issues. Through close customer relationships, clear processes and regular training, the Bank ensures that its products and services are not used for criminal purposes. Handels banken also invests in new technologies, cooperates with other community stakeholders and develops ways of working to strengthen protection against financial crime. Corporate culture Impact, risk, opportunity Value chain Area in the value chain Time horizon Strong corporate culture Actual positive impact Own operations Co-workers Short/ medium/long Corruption and bribery Risk of incidents linked to corruption and bribery Potential negative impact Own operations Co-workers Short/ medium/long Management of relationships with suppliers Business relationships with suppliers who fail to address sustainability issues Potential negative impact Upstream Suppliers Short/ medium/long Employee conduct Extracts from codes of conduct included in the Bank’s policies and guidelines that relate to staff. Handels banken’s co-workers • must not be in a position where they may be suspected of taking improper advantage of knowledge about the financial markets which they obtain in the course of their work • must be familiar with legislation con - cerning trading in financial instruments and observe the Bank’s rules for employees’ private securities and cur - rency transactions • must, in their work at the Bank and in their private affairs, refrain from busi - ness transactions that violate the Bank’s rules • must refrain from transactions or other commitments that could seriously jeopardise their personal financial position • are not permitted to process transac - tions in which they, or persons closely associated with them, have a personal interest – this also applies to compa - nies in which co-workers, or persons closely associated with them, are involved • must report to a manager or can notify Compliance or Internal Audit if they suspect irregularities at the Bank. Handels banken’s separate whistle- blowing system provided by an exter - nal supplier may be used as well as these reporting channels • must notify the Bank of assignments outside the Bank and obtain approval – this also applies to secondary occu - pations and certain posts in clubs, societies and the like. 107Handelsbanken Annual Report 2025 2.4
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procurement follows established processes, which are described in the Bank’s instructions. The guidelines apply across the Group and, where applicable, also to subsidiaries, unless binding local regulations require deviations. G1-2: Management of relationships with suppliers Handels banken’s purchases include property and premises, external IT costs, communica - tion, travel and marketing, purchased services, supplies and other overhead costs. External IT and communication services are primarily purchased from international suppliers. The Bank strives to coordinate purchases across national borders to take into account cost, quality and environmental impacts. Supplier management follows a risk-based working method in line with the Bank’s low risk toler - ance. Sustainability risks are considered in the procurement process to identify and manage suppliers with potential negative impacts. Internal instructions and the purchasing department provide support to ensure that purchasing takes place in compliance with the Bank’s policy for sustainability. Dialogue with suppliers is a key element of this work, with sustainability as one focus area. As guidance in the procurement process, the Bank refers to internationally recognised frameworks that include: • UN Global Compact • OECD Guidelines for Multinational Enterprises • UN Guiding Principles on Business and Human Rights • ILO Guiding Principles on Business and Human Rights. In addition, the Bank’s subsidiaries in the UK comply with the UK’s Modern Slavery Act and in Norway the Bank complies with the Trans - parency Act. More information can be found on the relevant country website of Handels - banken. The Bank has clarified suppliers’ responsibilities via a Supplier Code of Conduct, based on international standards and the Bank’s integrated sustainability targets. The Code of Conduct is primarily applied for larger suppliers in Sweden and increasingly also in other home markets. In some cases, the Bank may, following a review, accept a supplier’s own code of conduct if this is deemed to meet the Bank’s requirements. Before entering into a contract, due diligence is conducted to ensure that the supplier meets the Bank’s ethical and sustainability requirements, in accordance with the Bank’s Supplier Code of Conduct. For example, the supplier may answer questions about whether it has a policy for sustainability in place. This is supported by sustainability data from external data providers, including risk classification tools linked to operations and geographical exposure. Collected sustain - ability data forms part of the supplier assess - ment. The Bank conducts risk-based and regular follow-ups of supplier arrangements. The scope and frequency of monitoring are adapted to the size and risk level of the con - tract, and contracts with high risk are always followed up at least annually. Identified short - comings are documented in action plans and followed up. A new risk assessment is carried out following significant changes in risk or when contracts are renegotiated. During the year, the Bank developed its work through a Group-wide collaboration on purchasing, focusing on sustainability strategy, an update of the Code of Conduct and adjustments to the due diligence process. To ensure com - pliance, regular internal training sessions are conducted for the purchasing function, con - tract owners and other relevant functions. The Bank has had an internally established target since 2024 that at least 90 per cent of suppliers in the home markets with an annual purchase volume exceeding SEK 5 million must have signed the Bank’s Code of Conduct or have their own code approved by the Bank. Monitoring is conducted each year and is based on purchase volume in per cent. The outcome for 2025 was 90.3 per cent (83.3). Monitoring is managed internally via a register of contracts and suppliers and is not subject to external controls. G1-3: Prevention and detection of corruption and bribery Handels banken is committed to having high ethical standards and works systematically to prevent and detect corruption and bribery. Corruption risks undermining confidence in the Bank and the financial sector, distorting com - petition and exposing the Bank to unwanted operational and legal risks. Banken does not accept any form of corruption, bribery or improper influence, and also has established procedures for managing conflicts of interest and ensuring that there is no negative impact on customers’ interests. This work is based on the Bank’s policy against corruption, policy for ethical standards and policy for management of conflicts of interest, which emphasise that co-workers must never engage in acts that may involve bribery or other improper influence. The Bank performs regular risk analyses to prevent and detect corruption. The annual evaluation encompasses the entire Group, including international branches and subsidi - aries, and covers 100 per cent of the Bank’s operations. The overall risk assessment regarding money laundering and terrorist financing also analyses the risk of corrup - tion-related crime by the Bank’s customers as a predicate offence to money laundering. Particular attention is paid to operations, industries and geographies where the risk of corruption is considered to be higher. Co-workers with customer contact, decision- making mandates for lending, purchasing or procurement, or have access to sensitive information are considered to be particularly exposed to risks related to bribery and corrup - tion. Training on anti-corruption and other financial crime is therefore mandatory for all co-workers and consultants with an assign - ment of longer than six months. The training discusses the Bank’s steering documents and provides concrete examples of behaviour that is permissible and not permissible. Handels - banken’s Board and subsidiary boards undergo annual training in this area that includes the link between corruption, money laundering and terrorist financing. Anti-corruption work is an ongoing process in which the Bank continuously invests in sys - tem support, skills development and improved work processes. The Bank encourages co-workers and external parties to report suspected irregulari - ties or misconduct. An external whistleblower system allows for anonymous reporting and is available to co-workers, consultants and exter - nal stakeholders. All cases are investigated promptly by a function that is independent of operations. For more information about the whistleblower system, see section S1-3 on page 96. No incidents of corruption or bribery were reported during the year. Metrics and targets G1-4: Incidents of corruption or bribery Handels banken is to actively work to prevent corruption and bribery. This work follows a risk- based approach, starting from the Bank’s poli - cies and guidelines, where resources are prior - itised to the areas identified as having the highest risk. The risk-based working method allows for efficient use of resources and adap - tation to changing risk scenarios. The Bank continuously evaluates existing metrics and reviews the potential to develop additional relevant and appropriate indicators. Information on confirmed cases of corrup - tion and bribery is collected annually through inquiries to central and local functions, includ - ing legal and HR. In 2025, there were 0 (0) confirmed incidents of corruption or bribery. There have also been no legal cases, disci - 108 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Governance information
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plinary measures, dismissals of co-workers or termination of business relationships with busi - ness partners or suppliers due to corruption or bribery. The data includes confirmed cases of giving and receiving bribes, breach of trust or use of one’s position to gain improper advan - tage for oneself or others. The reporting was not verified by an external party. Incidents related to money laundering are reported and presented separately in the section Counter - act financial crime on page 111. To enhance preventive efforts, at least 90 per cent of the Bank’s employees must com - plete anti-corruption training every year. For the Board, the target is 100 per cent. The tar - gets are developed internally and the outcome is monitored internally via the Bank’s training system without external controls. The target for employees takes into account that a per - centage of employees may be on parental or official leave during the year. Training is com - pulsory for employees and consultants, who will only be registered as having completed the course after receiving a passing grade. Board training is conducted in a different format and reported separately. The table Board member training shows the number and percentage of Board members, in the Handels banken Group and in the Bank’s subsidiaries, who have com - pleted the training in anti-corruption, anti-money laundering, and combating the financing of terrorism. The Employee training table shows the percentage of employees who have received anti-corruption, anti-money laundering and anti-terrorist financing training. The percentage also includes employees on parental or official leave. Board member training 2025 2024 2023 2022 2021 Number of Board members who have completed the training in anti-corruption, anti-money laundering and combating the financing of terrorism ¹ 9 9 10 10 9 Percentage of Board members who have completed the training in anti-corruption, anti-money laundering and combating the financing of terrorism ¹ 100 100 100 100 100 Total number of subsidiary Board members who have completed the training in anti-corruption, anti-money laundering and combating the financing of terrorism 43 43 41 45 43 Percentage of subsidiary Board members who have completed the training in anti-corruption, anti-money laundering and combating the financing of terrorism ¹ 100 100 89 100 100 1) The majority of Board members reside in Sweden Employee training 2025 2024 2023 2022 2021 Percentage of employees who have completed the training in anti-corruption, anti-money laundering and combating the financing of terrorism 94 92 91 92 90 109Handelsbanken Annual Report 2025 2.4
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Entity specific – Counteract financial crime Entity specific – Counteract financial crime Governance Handels banken works constantly and pro- actively to minimise the risk of the Bank’s cus - tomers, products or services being exploited for financial crime. Financial crime includes money laundering, terrorist financing, tax eva - sion, corruption, fraud and breaches of interna - tional sanctions. The work is governed cen - trally and is headed by the Bank’s specially appointed executive with Group-wide respon - sibility the area. A separate compliance func - tion for financial crime monitors and acts in an advisory capacity in this work. Starting points are the Bank’s low risk tolerance and the body of applicable regulations addressing financial crime in the countries where the Bank oper - ates. For more information, see note G2 on page 201. Impact, risk and opportunity management Prevention is a fundamental principle in Handels banken’s work to combat financial crime. The steering documents that address the area are: • Policy for ethical standards, for more information, see page 60 • Policy on measures against financial crime • Policy for sustainability, for more information, see page 60 • Policy against corruption, for more informa - tion, see page 60 • Guidelines for actions against financial crime. For more information about steering documents, see GOV-1 on page 59. Both the policy and the guidelines on actions against financial crime represent Handels banken’s position against financial crime and apply throughout the Group. Where relevant, stakeholder views are taken into account in reviews of the Bank’s steering documents, see information in GOV-1 on page 59. The Bank must not participate in transac - tions that are not fully understood or with sus - pected links to criminal activities. As one of Sweden’s largest banks with extensive opera - tions, the risk of being exposed to attempted money laundering is deemed high, which requires robust and effective control pro - cesses. The work is risk based. It starts with a gen - eral risk assessment to identify and analyse relevant risks. Handels banken’s decentralised organisation and local presence provide a solid basis for close customer relationships and in-depth customer due diligence. Customer relationships are normally initiated at a branch through a customer due diligence process that includes identification, understanding of the customer’s business and needs, and screening of politically exposed persons (PEPs). Local customer due diligence is comple - mented by routine automated transaction monitoring to identify suspicious behaviour. In case of suspicion of money laundering or terrorist financing, cases are reported to the relevant authorities in accordance with the applicable regulations. If there is strong sus - picion the Bank terminates the customer rela - tionship, or implements product restrictions in order to prevent continued misuse of the Bank’s services. Fraud is a significant source of income for organised crime and is a priority area for the Bank. In recent years, social engineering has increased, particularly aimed at elderly people. Handels banken therefore works actively with customer information and preventive mea - sures, including through participation in the cross-bank information campaign “Scamaware!” Customers who have been the victim of fraud can contact the Bank around the clock for help with emergency measures, advice and sup - port, including assistance with reporting to the police and filing a complaint. Handels banken collaborates with other banks, the Swedish Bankers' Association, the Swedish Police’s national fraud centre (NBC) and the Financial Intelligence Unit of the Swed - ish Police, including under the SAMLIT Finan - cial Crime Prevention collaboration. The Bank also participates in the enhanced cooperation enabled by legislation from 2023 and in the financial intelligence centre established in 2025 to enhance efforts against the criminal economy. The Bank welcomes this develop - ment and the concrete effects the collabora - tion has already had. Metrics and targets Handels banken is to actively work to prevent and limit incidents related to money laundering. The Bank takes action to prevent its products and services from being used for financial crime. This work follows a risk-based approach, starting from policies and guidelines. The Bank’s ambition is to gradually evaluate and, if necessary, develop further relevant metrics in addition to already established metrics. In the case of low suspicion, a Suspicious Activity Report (SAR) must be prepared. No evidence of money laundering or terrorist financing is therefore required. The notification requirement also applies to cases where the Bank has refused to execute transactions due to suspected money laundering or terrorist financing. A SAR report may relate to private individuals, companies and several transactions. The effectiveness of this work is monitored, for example, by measuring the frequency of fraud, maintaining a high level of customer due diligence, and promptly investigating and reporting suspicious transactions. A central part of this work is to ensure that the Bank’s co-workers have sufficient knowledge to iden - tify and manage risks linked to financial crime. Counteract financial crime Impact, risk, opportunity Value chain Area in the value chain Time horizon Risk of incidents linked to financial crime Actual negative impact Own operations & downstream Co-workers, systems and processes & transaction management Short/ medium/long Risk of loss of revenue and/or fines Risk Own operations & downstream Co-workers, systems and processes & transaction management Short/ medium/long 110 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Governance information
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Mandatory training courses on combating financial crime are assigned to all employees and consultants with an assignment of longer than six months. For each calendar year, the Bank’s target is that at least 90 per cent of the Bank’s employees must have completed train - ing in the area, while for the Board, the figure is 100 per cent. The training target for employees is set at 90 per cent since a certain percent - age of employees may be on parental or offi - cial leave during the year and are therefore not expected to undertake training during this period. All monitoring of metrics and targets is performed internally and evaluated in relation to the Bank’s risk tolerance. The outcome for the training of employees, the Board and sub - sidiary boards are presented in section G1-4, see page 109. Suspicious transactions reported 2025 2024 2023 2022 2021 Number of suspicious transactions involving money laundering/terrorist financing (SAR) ¹ 5,372 5,529 5,245 6,194 5,039 1) According to the Swedish Anti-Money Laundering Act, Handels banken is also obligated, without delay, to report suspicions of money laundering or terrorist financing (suspicious activity reporting, SAR) to the Financial Intelligence Unit of the Swedish Police or equivalent authority. 111Handelsbanken Annual Report 2025 2.4
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Entity specific – Financial stability Entity specific – Financial stability Governance The financial system plays an important role in the economy by mediating payments and pro - viding services for savings, granting credit and risk management for households and compa - nies. A stable and functioning system is a pre - requisite for the economy to function well and foster growth. Handels banken has a long tradi - tion of conducting banking operations with strong finances, low risk tolerance and a focus on long-term customer relationships. The strength of the Bank’s financial position is based on low credit losses and a robust capital and liquidity situation. The business model not only contributes to the Bank’s own financial stability, but also has a positive impact on households, companies and society as a whole. This makes Financial stability a material sustainability matter for the Bank. The Bank’s strong financial position attracts investors and customers and creates good conditions for new business. According to the independent company Global Finance, Handels banken is the safest bank in Europe and the fifth safest commercial bank in the world. No other privately-owned bank in the world has a higher combined credit rating from Fitch, Moody’s and Standard & Poor’s than Handels banken. Regardless of the market environment, the Bank can ensure continued access to financial services, including lending. This means that households can buy a home, companies can invest in their operations and risks can be limited even when the economy is in turmoil. The Bank’s business model thereby contributes to the resilience of the economy and economic growth and to confidence in society and the financial system. Strong finances also strengthen the Bank’s ability to continuously finance sustainable projects and thereby contribute to the climate transition, which is important for the economy and long- term financial stability. In the event of a financial crisis, there is a risk of serious disruption to basic functions of the financial system, which can lead to signifi - cant costs to society. Historically, Handels - banken has managed its way through financial crises and sharp macroeconomic downturns well, and has never needed financial assis - tance from governments or central banks. Nor has the Bank had to ask shareholders for any capital contributions through new share issues in the past 30 years. By contributing to stabil - ity, the Bank also reduces the likelihood that society will incur costs associated with dis - ruptions elsewhere in the financial system. In addition to a strong financial position, Handels banken has strong operational resil - ience, which is important to ensure that essen - tial societal functions can operate without dis - ruption. Disruptions at an individual bank may also spread to other parts of the financial system through payment systems and other market functions. Financial stability affects all three perspec - tives of the value chain – upstream, down - stream and own operations. Upstream, the Bank’s financial position provides good and continuous access to financing for the Bank as investors and depositors can be confident that their investments and savings are secure. Downstream, the financial security and resil - ience of customers is strengthened by the Bank’s ability to support customers in all eco - nomic situations, for example, by maintaining credit supply and a functioning payment sys - tem. In its own operations, the Bank’s corpo - rate governance and operational resilience help to avoid disruptions in the financial system. Impact, risk and opportunity management By conducting banking operations with a low risk tolerance and high operational resilience as well as stable finances and a long-term approach to business relationships, the Bank contributes to the stability of the financial sys - tem and the economy. At the same time, this enables the Bank to further develop its busi - ness with existing customers, support them regardless of the economic situation and attract new customers and investors who value stability and responsibility. Overall, this means that the Bank has a positive impact while also creating financial opportunities. The main steering documents that address the entity specific sustainability matter of Financial stability and form the basis of the management and governance of this matter are the following policies issued by Handels - banken’s Board: • Credit policy for the Handels banken Group, for more information, see page 60 • Capital policy for the Handels banken Group • Financial policy for the Handels banken Group. These policies, which apply to the entire Group, establish the framework for capital planning and for managing the credit risks and financial risks to which the Bank’s business may give rise and express its tolerances for these risks. For more information on policies, including which are public, see the section GOV-1 on page 59. Granting credit Through a restrictive credit process, with a low risk tolerance and based on assessing the borrower’s repayment capacity, Handels banken can safeguard both the Bank’s and its cus - tomer’s financial positions. The Bank can reduce the risk of credit losses and at the same time counteract excessive levels of customer debt. The financial strength of the Bank resulting from a restrictive credit process also attracts long-term investors and customers, which offers business opportunities. Handels banken’s credit policy states that the Bank has a low tolerance for credit risk. This is achieved by establishing long-term relationships with customers who have good repayment capacity. The requirement for high Financial stability Impact, risk, opportunity Value chain Area in the value chain Time horizon Contribute to financial stability Actual positive impact Upstream, own operations & downstream Funding, systems and processes & lending Short/ medium/long Financial stability enables business Opportunity Upstream, own operations & downstream Funding, systems and processes & lending Short/ medium/long 112 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.4 Administration report Sustainability statement Governance information
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credit quality must never be neglected in favour of higher business volumes, prices or market shares. The Bank’s credit risk tolerance is reflected in the expectation that the Bank will be able to have good capacity for granting credit without government support, even in a serious recession. Lending must be responsible and meet high ethical standards, taking into account the long-term interests of the customer. The Bank’s credit process is centralised and common across the Group, while individual business decisions are made on a decentral - ised basis. The local connection, where the branch knows the customer, improves the Bank’s ability to make an accurate credit assessment. This is further reinforced by a well-functioning quality assurance process. The branch’s close relationships with its cus - tomers means that any problems can be swiftly identified and appropriate actions can be taken. For more information about the Bank’s risk management, risk tolerance and risk strategy for credit risk, see note G2 beginning on page 164. Capital planning Handels banken has a strong capital situation that enables it to absorb unexpected losses, such as in conjunction with a financial crisis, and thereby maintain its operations, which safeguards households and companies that depend on its services. The capital should be viewed in relation to Handels banken’s high quality on the assets side, which is a result of the Bank’s conservative approach to risk. A strong capital situation also reinforces trust in the Bank among customers, investors and other counterparties. This contributes to the resilience of the financial system and also leads to business opportunities and strength - ens the Bank’s access to funding in different market situations. Handels banken’s capital policy aims to ensure that the Group’s capital situation is always reliable and regulates how the Bank should conduct its capital planning. The Group shall at all times be well-capitalised in relation to its risks and meet the targets set by the Board and the capital requirements set by supervisory authorities, even in situations of financial stress. The Bank’s capital planning is to ensure that the Group has the right amount of financial resources available at all times given the Group’s risks, business development, regula - tory requirements and the capital targets set by the Bank. At least annually, a long-term capital plan is drawn up, which provides an overview of the Group’s current capital situa - tion, a forecast of expected capital performance, and the outcome in various market scenarios with different time horizons. This forecasting is necessary to enable continual adaptation of the size and composition of own funds. For more information about the Bank’s capital planning, see note G2 beginning on page 164. Liquidity management Handels banken has a strong liquidity situation. Through long-term and stable funding and by maintaining high-quality liquidity reserves, Handels banken can meet its payment obliga - tions over time and regardless of the market situation and in the event of potential in - creased deposit outflows in conjunction with a financial crisis. A strong liquidity situation rein - forces confidence in the Bank, which en - hances the resilience of the financial system and presents business opportunities for the Bank. Handels banken’s financial policy establishes the framework under which the funding opera - tions are to be conducted. The Group’s funding and liquidity management shall ensure that Handels banken can meet its payment obliga - tions in both the short and long term. Handels - banken is to have a sufficient liquidity reserve to be able to continue its operations without new borrowing on the financial markets for set periods of time. This must also apply under stressed conditions. The Bank’s liquidity planning aims to ensure that the Group has sufficient liquidity at all times to fulfil its obligations with varying matu - rities and in different currencies. Stress tests confirm that this is also the case in various stressed market situations. At its core lies a funding strategy in which illiquid assets are financed in a long-term and stable manner. The Bank also holds significant liquidity reserves that can provide or be converted into liquidity at short notice. These primarily consist of bal - ances with central banks, liquid securities and unutilised issue amounts for covered bonds. For more information about the Bank’s risk management, risk tolerance and risk strategy for liquidity risk, see note G2 beginning on page 164. Metrics and targets Handels banken has several targets and metrics for financial stability in general. For the sustain - ability matter of Financial stability, the Bank has chosen as its targets to strive for low credit losses and a strong capital and liquidity situation. These targets are supplemented by: • A target linked to the capital situation that the common equity tier 1 ratio must, under normal circumstances, be between 1 and 3 percentage points above the Swedish Financial Supervisory Authority’s require - ment. The target is decided by the Bank’s Board. • A target linked to the liquidity situation that the Net Stable Funding Ratio (NSFR) must be at least 100 per cent, in line with require - ments by the Swedish Financial Supervisory Authority. The outcome is measured using the following metrics: • Average credit loss ratio, pages 24, 168, 340 • Common equity tier 1 ratio, pages 24, 206, 341 • Tier 1 ratio, pages 24, 206, 341 • Net Stable Funding Ratio (NSFR), pages 195, 341 • Liquidity Coverage Ratio (LCR), pages 195, 341. The Bank complies with regulatory require - ments and internally set targets for which internal stakeholders have been involved. The metrics are monitored by the Swedish Finan - cial Supervisory Authority and are subject to audit by external auditors. Information on mea - surement methodologies, assumptions and outcomes can be found in the table Key met - rics per year in the administration report on page 24, in note G2 beginning on page 164 and in the section Definitions and explanations beginning on page 340. 113Handelsbanken Annual Report 2025 2.4
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. EU Taxonomy – continued Reporting in accordance with EU Taxonomy – continued As a credit institution, Handelsbanken is required to provide information about the extent to which its assets fund Taxonomy- eligible and Taxonomy-aligned economic activities in accordance with Regulation (EU) 2020/852. The EU Taxonomy defines criteria that must be met for a large number of eco - nomic activities to be classified as sustainable. This section presents expanded information on the Taxonomy and associated compulsory tables, which together with the disclosures in section 2.4 Environmental information com - prise Handelsbanken’s complete Taxonomy reporting. The reporting for the banking opera - tions is based on the consolidated situation and is presented in the prescribed tables for credit institutions in accordance with the updated Delegated Act. The assets of the insurance operations are presented separately on page 138. The Group’s total green asset ratio is calculated by aggregating key performance indicators (KPIs) for on-balance-sheet credit agreements, for financial guarantees, in asset management and in insurance operations. Two weighted KPIs – one turnover-based, and one capital expenditure-based – are calculated by weighting each business segment’s KPIs by its share of the Group’s total income. Handelsbanken Group EU Taxonomy KPIs 2025−12−31 Business segment and group consolidated KPIs, turnover based Revenue Of which Taxonomy-eligible Of which Taxonomy-alignedSEK m Proportion % Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Banking Credit portfolio 137,137 94.6 93.7 8.1 8.1 0.0 Financial guarantees 35 0.0 7.6 1.5 1.5 0.0 Assets under management 5,418 3.7 31.2 6.5 6.1 0.1 Insurance 2,317 1.6 32.1 6.4 5.9 0.1 Consolidated KPI, turnover based (weighted) 144,906 100.0 90.3 8.0 7.9 0.0 2025−12−31 Business segment and group consolidated KPIs, capital expenditure based Revenue Of which Taxonomy-eligible Of which Taxonomy-alignedSEK m Proportion % Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Banking Credit portfolio 137,137 94.6 94.0 8.3 8.3 0.0 Financial guarantees 35 0.0 10.9 4.2 4.2 Assets under management 5,418 3.7 32.1 8.3 8.0 0.0 Insurance 2,317 1.6 31.8 8.3 8.1 Consolidated KPI, turnover based (weighted) 144,906 100.0 90.7 8.3 8.3 0.0 114 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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Handelsbanken Group EU Taxonomy KPIs 2025−12−31 Of which Taxonomy-aligned Non-assessed exposures Breakdown per environmental objective Of which transitional Of which enabling Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 0.0 0.0 0.1 0.0 0.0 1.2 0.3 0.0 0.3 2.2 0.4 0.3 2.4 0.0 0.0 0.0 0.2 2025−12−31 Of which Taxonomy-aligned Non-assessed exposures Breakdown per environmental objective Of which transitional Of which enabling Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 0.0 0.0 0.1 0.0 1.4 0.2 0.0 0.0 0.3 2.4 0.2 0.2 2.5 0.0 0.0 0.0 0.0 0.2 2025−12−31 Business segment and group consolidated KPIs, turnover based Revenue Of which Taxonomy-eligible Of which Taxonomy-alignedSEK m Proportion % Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Banking Credit portfolio 137,137 94.6 93.7 8.1 8.1 0.0 Financial guarantees 35 0.0 7.6 1.5 1.5 0.0 Assets under management 5,418 3.7 31.2 6.5 6.1 0.1 Insurance 2,317 1.6 32.1 6.4 5.9 0.1 Consolidated KPI, turnover based (weighted) 144,906 100.0 90.3 8.0 7.9 0.0 2025−12−31 Business segment and group consolidated KPIs, capital expenditure based Revenue Of which Taxonomy-eligible Of which Taxonomy-alignedSEK m Proportion % Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Banking Credit portfolio 137,137 94.6 94.0 8.3 8.3 0.0 Financial guarantees 35 0.0 10.9 4.2 4.2 Assets under management 5,418 3.7 32.1 8.3 8.0 0.0 Insurance 2,317 1.6 31.8 8.3 8.1 Consolidated KPI, turnover based (weighted) 144,906 100.0 90.7 8.3 8.3 0.0 115Handelsbanken Annual Report 2025 2.4
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Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation 2025−12−31 Total exposure to Taxonomy-aligned activities (SEK m) KPI¹ (%) KPI² (%) % coverage (over total assets)³ (%) Non-assessed exposures (% of covered assets)⁴ (%) Non-assessed exposures (% of covered assets)⁴ (%) Turnover-based CapEx-based Turnover-based CapEx-based Turnover-based CapEx-based Main KPI Green asset ratio (GAR) stock 110,967 114,985 8.1 8.3 44.8 Total exposure to Taxonomy-aligned activities (SEK m) KPI¹ (%) KPI² (%) % coverage (over total assets)³ (%) Non-assessed exposures (% of covered assets)⁴ (%) Non-assessed exposures (% of covered assets)⁴ (%) Turnover-based CapEx-based Turnover-based CapEx-based Turnover-based CapEx-based Additional KPIs GAR (flow) 21,413 22,329 4.0 4.1 63.7 Trading book Financial guarantees 46 128 1.5 4.2 0.1 Assets under management 25,954 33,249 6.5 8.3 13.0 Fees and commissions income⁵ 1) Based on the Turnover KPI of the counterparty. 2) Based on the CapEx KPI of the counterparty. 3) % of assets covered by the KPI over banks’ total assets. 4) In accordance with Article 7(8) of this Regulation. 5) Fee and commission income from services other than lending and AuM. Handelsbanken’s taxonomy disclosures for banking operations in the credit institution 117Handelsbanken Annual Report 2025 2.4
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2025−12−31 Stock (SEK m) Total [gross] carrying amount Of which Taxonomy- eligible Of which Taxonomy- aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 1,377,710 1,290,250 110,967 110,948 6 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 1,347,497 1,263,220 98,325 98,306 6 3 Financial undertakings 54,977 23,330 2,062 2,060 1 4 Loans and advances 19,666 6,903 783 783 1 5 Debt securities, including UoP 35,280 16,411 1,277 1,276 6 Equity instruments 31 16 1 1 7 Non-financial undertakings 56,447 23,493 3,799 3,782 5 8 Loans and advances 56,447 23,493 3,799 3,782 5 9 Debt securities, including UoP 10 Equity instruments 0 0 0 0 11 Households 1,236,073 1,216,397 92,464 92,464 12 of which loans collateralised by residential immovable property 1,216,160 1,216,160 92,464 92,464 13 of which building renovation loans 14 of which motor vehicle loans 237 237 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on voluntary basis³ 30,213 27,030 12,642 12,642 0 20 Total GAR assets 1,377,710 21 Assets not covered for GAR calculation 1,700,313 22 Central governments and Supranational issuers 63,220 23 Central banks exposure 560,762 24 Trading Book 51,289 25 Undertakings and entities not subjected to CSRD 940,120 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 604,110 27 Loans and advances 600,980 28 of which loans collateralised by residential immovable property 126,586 29 of which building renovation loans 30 Debt securities 3,012 31 Equity instruments 117 32 Non-EU country counterparties not subject to CSRD disclosure obligations 336,010 33 Loans and advances 335,579 34 Debt securities 431 35 Equity instruments 36 Derivatives 13,841 37 On demand interbank loans 952 38 Cash and cash-related assets 5 39 Other categories of assets (e.g. Goodwill, commodities etc.) 70,125 40 Total assets 3,078,023 Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 3,057 233 46 46 0 42 Assets under management 398,685 124,512 25,954 24,276 223 31 43 of which debt securities 98,107 30,508 10,184 9,835 30 25 44 of which equity instruments 289,647 92,518 15,407 14,079 194 6 1) In accordance with Article 7(8)(a) and (b) of this Regulation. 2) In accordance with Article 4(1a) of this Regulation. 3) in accordance with Article 7(3) of this Regulation. Assets for the calculation of GAR (turnover) 118 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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2025−12−31 Stock (SEK m) Total [gross] carrying amount Of which Taxonomy- eligible Of which Taxonomy- aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 1,377,710 1,290,250 110,967 110,948 6 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 1,347,497 1,263,220 98,325 98,306 6 3 Financial undertakings 54,977 23,330 2,062 2,060 1 4 Loans and advances 19,666 6,903 783 783 1 5 Debt securities, including UoP 35,280 16,411 1,277 1,276 6 Equity instruments 31 16 1 1 7 Non-financial undertakings 56,447 23,493 3,799 3,782 5 8 Loans and advances 56,447 23,493 3,799 3,782 5 9 Debt securities, including UoP 10 Equity instruments 0 0 0 0 11 Households 1,236,073 1,216,397 92,464 92,464 12 of which loans collateralised by residential immovable property 1,216,160 1,216,160 92,464 92,464 13 of which building renovation loans 14 of which motor vehicle loans 237 237 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on voluntary basis³ 30,213 27,030 12,642 12,642 0 20 Total GAR assets 1,377,710 21 Assets not covered for GAR calculation 1,700,313 22 Central governments and Supranational issuers 63,220 23 Central banks exposure 560,762 24 Trading Book 51,289 25 Undertakings and entities not subjected to CSRD 940,120 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 604,110 27 Loans and advances 600,980 28 of which loans collateralised by residential immovable property 126,586 29 of which building renovation loans 30 Debt securities 3,012 31 Equity instruments 117 32 Non-EU country counterparties not subject to CSRD disclosure obligations 336,010 33 Loans and advances 335,579 34 Debt securities 431 35 Equity instruments 36 Derivatives 13,841 37 On demand interbank loans 952 38 Cash and cash-related assets 5 39 Other categories of assets (e.g. Goodwill, commodities etc.) 70,125 40 Total assets 3,078,023 Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 3,057 233 46 46 0 42 Assets under management 398,685 124,512 25,954 24,276 223 31 43 of which debt securities 98,107 30,508 10,184 9,835 30 25 44 of which equity instruments 289,647 92,518 15,407 14,079 194 6 1) In accordance with Article 7(8)(a) and (b) of this Regulation. 2) In accordance with Article 4(1a) of this Regulation. 3) in accordance with Article 7(3) of this Regulation. Assets for the calculation of GAR (turnover) 2025−12−31 Of which Taxonomy-aligned Non-assessed exposures Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Of which financing non-material activities of counterp arties¹ Of which exposures financing counter- parties reporting in accordance with Article 7(9) Of which not assessed considered non-material by the credit institution²Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 8 5 50 1,064 8 5 50 1,064 1 36 40 17 24 1 18 16 7 5 14 1,025 7 5 14 1,025 92,464 92,464 0 0 0 0 36 1,371 53 1,317 8,610 274 21 256 1,560 1,096 32 1,061 6,922 119Handelsbanken Annual Report 2025 2.4
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Assets for the calculation of GAR (CapEx) 2025−12−31 Stock (SEK m) Total [gross] carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 1,377,710 1,295,662 114,985 114,983 0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 1,347,497 1,268,930 104,904 104,902 0 3 Financial undertakings 54,977 22,930 2,149 2,148 0 4 Loans and advances 19,666 6,428 798 798 0 5 Debt securities, including UoP 35,280 16,486 1,349 1,349 6 Equity instruments 31 16 1 1 7 Non-financial undertakings 56,447 29,603 10,291 10,289 0 8 Loans and advances 56,447 29,603 10,291 10,289 0 9 Debt securities, including UoP 10 Equity instruments 0 0 0 0 11 Households 1,236,073 1,216,397 92,464 92,464 12 of which loans collateralised by residential immovable property 1,216,160 1,216,160 92,464 92,464 13 of which building renovation loans 14 of which motor vehicle loans 237 237 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on voluntary basis³ 30,213 26,733 10,081 10,081 0 20 Total GAR assets 1,377,710 21 Assets not covered for GAR calculation 1,700,313 22 Central governments and Supranational issuers 63,220 23 Central banks exposure 560,762 24 Trading Book 51,289 25 Undertakings and entities not subjected to CSRD 940,120 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 604,110 27 Loans and advances 600,980 28 of which loans collateralised by residential immovable property 126,586 29 of which building renovation loans 30 Debt securities 3,012 31 Equity instruments 117 32 Non-EU country counterparties not subject to CSRD disclosure obligations 336,010 33 Loans and advances 335,579 34 Debt securities 431 35 Equity instruments 36 Derivatives 13,841 37 On demand interbank loans 952 38 Cash and cash-related assets 5 39 Other categories of assets (e.g. Goodwill, commodities etc.) 70,125 40 Total assets 3,078,023 Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 3,057 332 128 128 42 Assets under management 398,685 127,848 33,249 32,072 93 47 43 of which debt securities 98,107 36,927 10,080 9,622 22 45 44 of which equity instruments 289,647 89,015 22,599 21,880 71 2 1) In accordance with Article 7(8)(a) and (b) of this Regulation. 2) In accordance with Article 4(1a) of this Regulation. 3) in accordance with Article 7(3) of this Regulation. 120 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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Assets for the calculation of GAR (CapEx) 2025−12−31 Stock (SEK m) Total [gross] carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 1,377,710 1,295,662 114,985 114,983 0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 1,347,497 1,268,930 104,904 104,902 0 3 Financial undertakings 54,977 22,930 2,149 2,148 0 4 Loans and advances 19,666 6,428 798 798 0 5 Debt securities, including UoP 35,280 16,486 1,349 1,349 6 Equity instruments 31 16 1 1 7 Non-financial undertakings 56,447 29,603 10,291 10,289 0 8 Loans and advances 56,447 29,603 10,291 10,289 0 9 Debt securities, including UoP 10 Equity instruments 0 0 0 0 11 Households 1,236,073 1,216,397 92,464 92,464 12 of which loans collateralised by residential immovable property 1,216,160 1,216,160 92,464 92,464 13 of which building renovation loans 14 of which motor vehicle loans 237 237 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on voluntary basis³ 30,213 26,733 10,081 10,081 0 20 Total GAR assets 1,377,710 21 Assets not covered for GAR calculation 1,700,313 22 Central governments and Supranational issuers 63,220 23 Central banks exposure 560,762 24 Trading Book 51,289 25 Undertakings and entities not subjected to CSRD 940,120 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 604,110 27 Loans and advances 600,980 28 of which loans collateralised by residential immovable property 126,586 29 of which building renovation loans 30 Debt securities 3,012 31 Equity instruments 117 32 Non-EU country counterparties not subject to CSRD disclosure obligations 336,010 33 Loans and advances 335,579 34 Debt securities 431 35 Equity instruments 36 Derivatives 13,841 37 On demand interbank loans 952 38 Cash and cash-related assets 5 39 Other categories of assets (e.g. Goodwill, commodities etc.) 70,125 40 Total assets 3,078,023 Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 3,057 332 128 128 42 Assets under management 398,685 127,848 33,249 32,072 93 47 43 of which debt securities 98,107 36,927 10,080 9,622 22 45 44 of which equity instruments 289,647 89,015 22,599 21,880 71 2 1) In accordance with Article 7(8)(a) and (b) of this Regulation. 2) In accordance with Article 4(1a) of this Regulation. 3) in accordance with Article 7(3) of this Regulation. 2025−12−31 Of which Taxonomy-aligned Non-assessed exposures Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Of which financing non-material activities of counterparties¹ Of which exposures financing counter- parties reporting in accordance with Article 7(9) Of which not assessed considered non-material by the credit institution²Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 2 0 123 1,136 2 0 123 1,110 39 54 28 32 11 22 2 0 84 1,056 2 0 84 1,056 92,464 92,464 0 26 0 43 972 65 0 1,023 9,545 352 38 0 257 2,106 620 26 0 766 7,168 121Handelsbanken Annual Report 2025 2.4
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Assets for the calculation of GAR (turnover) 2025−12−31 Flow (SEK m) Total [gross] carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 540,109 211,650 21,413 21,413 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 233,745 207,661 19,023 19,022 3 Financial undertakings 20,091 7,604 908 908 4 Loans and advances 13,087 4,815 675 675 5 Debt securities, including UoP 6 Equity instruments 7 Non-financial undertakings 12,232 4,876 644 644 8 Loans and advances 12,232 4,876 644 644 9 Debt securities, including UoP 10 Equity instruments 11 Households 201,422 195,181 17,470 17,470 12 of which loans collateralised by residential immovable property 194,996 194,996 17,470 17,470 13 of which building renovation loans 14 of which motor vehicle loans 185 185 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on voluntary basis³ 306,364 3,989 2,391 2,391 20 Total GAR assets 540,109 21 Assets not covered for GAR calculation 308,144 22 Central governments and Supranational issuers 224 23 Central banks exposure 24 Trading Book 25 Undertakings and entities not subjected to CSRD 307,010 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 159,206 27 Loans and advances 158,745 28 of which loans collateralised by residential immovable property 38,123 29 of which building renovation loans 30 Debt securities 461 31 Equity instruments 32 Non-EU country counterparties not subject to CSRD disclosure obligations 147,804 33 Loans and advances 147,619 34 Debt securities 185 35 Equity instruments 36 Derivatives 37 On demand interbank loans 612 38 Cash and cash-related assets 39 Other categories of assets (e.g. Goodwill, commodities etc.) 297 40 Total assets 848,252 Off-balance sheet exposures (flow) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 1,240 221 35 35 0 42 Assets under management 182,952 56,651 11,528 10,850 93 15 43 of which debt securities 52,068 16,549 5,345 5,203 12 12 44 of which equity instruments 124,405 39,323 6,033 5,496 82 3 1) In accordance with Article 7(8)(a) and (b) of this Regulation. 2) In accordance with Article 4(1a) of this Regulation. 3) in accordance with Article 7(3) of this Regulation. 122 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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Assets for the calculation of GAR (turnover) 2025−12−31 Flow (SEK m) Total [gross] carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 540,109 211,650 21,413 21,413 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 233,745 207,661 19,023 19,022 3 Financial undertakings 20,091 7,604 908 908 4 Loans and advances 13,087 4,815 675 675 5 Debt securities, including UoP 6 Equity instruments 7 Non-financial undertakings 12,232 4,876 644 644 8 Loans and advances 12,232 4,876 644 644 9 Debt securities, including UoP 10 Equity instruments 11 Households 201,422 195,181 17,470 17,470 12 of which loans collateralised by residential immovable property 194,996 194,996 17,470 17,470 13 of which building renovation loans 14 of which motor vehicle loans 185 185 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on voluntary basis³ 306,364 3,989 2,391 2,391 20 Total GAR assets 540,109 21 Assets not covered for GAR calculation 308,144 22 Central governments and Supranational issuers 224 23 Central banks exposure 24 Trading Book 25 Undertakings and entities not subjected to CSRD 307,010 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 159,206 27 Loans and advances 158,745 28 of which loans collateralised by residential immovable property 38,123 29 of which building renovation loans 30 Debt securities 461 31 Equity instruments 32 Non-EU country counterparties not subject to CSRD disclosure obligations 147,804 33 Loans and advances 147,619 34 Debt securities 185 35 Equity instruments 36 Derivatives 37 On demand interbank loans 612 38 Cash and cash-related assets 39 Other categories of assets (e.g. Goodwill, commodities etc.) 297 40 Total assets 848,252 Off-balance sheet exposures (flow) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 1,240 221 35 35 0 42 Assets under management 182,952 56,651 11,528 10,850 93 15 43 of which debt securities 52,068 16,549 5,345 5,203 12 12 44 of which equity instruments 124,405 39,323 6,033 5,496 82 3 1) In accordance with Article 7(8)(a) and (b) of this Regulation. 2) In accordance with Article 4(1a) of this Regulation. 3) in accordance with Article 7(3) of this Regulation. 2025−12−31 Of which Taxonomy-aligned Non-assessed exposures Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Of which financing non-material activities of counterparties¹ Of which exposures financing counter- parties reporting in accordance with Article 7(9) Of which not assessed considered non-material by the credit institution²Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0 0 8 343 0 0 8 343 0 8 21 4 10 0 0 0 322 0 0 0 322 17,470 17,470 0 0 25 546 24 397 3,472 109 9 117 780 437 15 280 2,639 123Handelsbanken Annual Report 2025 2.4
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Assets for the calculation of GAR (CapEx) 2025−12−31 Flow (SEK m) Total [gross] carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 540,109 213,470 22,329 22,329 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 233,745 209,523 20,268 20,267 3 Financial undertakings 20,091 7,581 926 926 4 Loans and advances 13,087 4,773 677 677 5 Debt securities, including UoP 6 Equity instruments 7 Non-financial undertakings 12,232 6,760 1,871 1,871 8 Loans and advances 12,232 6,760 1,871 1,871 9 Debt securities, including UoP 10 Equity instruments 11 Households 201,422 195,181 17,470 17,470 12 of which loans collateralised by residential immovable property 194,996 194,996 17,470 17,470 13 of which building renovation loans 14 of which motor vehicle loans 185 185 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on voluntary basis³ 306,364 3,947 2,061 2,061 20 Total GAR assets 540,109 21 Assets not covered for GAR calculation 308,144 22 Central governments and Supranational issuers 224 23 Central banks exposure 24 Trading Book 25 Undertakings and entities not subjected to CSRD 307,010 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 159,206 27 Loans and advances 158,745 28 of which loans collateralised by residential immovable property 38,123 29 of which building renovation loans 30 Debt securities 461 31 Equity instruments 32 Non-EU country counterparties not subject to CSRD disclosure obligations 147,804 33 Loans and advances 147,619 34 Debt securities 185 35 Equity instruments 36 Derivatives 37 On demand interbank loans 612 38 Cash and cash-related assets 39 Other categories of assets (e.g. Goodwill, commodities etc.) 297 40 Total assets 848,252 Off-balance sheet exposures (flow) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 1,240 317 119 119 42 Assets under management 182,952 59,554 15,079 14,565 35 21 43 of which debt securities 52,068 19,943 5,183 4,971 7 20 44 of which equity instruments 124,405 38,642 9,656 9,354 29 1 1) In accordance with Article 7(8)(a) and (b) of this Regulation. 2) In accordance with Article 4(1a) of this Regulation. 3) in accordance with Article 7(3) of this Regulation. 124 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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Assets for the calculation of GAR (CapEx) 2025−12−31 Flow (SEK m) Total [gross] carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 540,109 213,470 22,329 22,329 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 233,745 209,523 20,268 20,267 3 Financial undertakings 20,091 7,581 926 926 4 Loans and advances 13,087 4,773 677 677 5 Debt securities, including UoP 6 Equity instruments 7 Non-financial undertakings 12,232 6,760 1,871 1,871 8 Loans and advances 12,232 6,760 1,871 1,871 9 Debt securities, including UoP 10 Equity instruments 11 Households 201,422 195,181 17,470 17,470 12 of which loans collateralised by residential immovable property 194,996 194,996 17,470 17,470 13 of which building renovation loans 14 of which motor vehicle loans 185 185 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on voluntary basis³ 306,364 3,947 2,061 2,061 20 Total GAR assets 540,109 21 Assets not covered for GAR calculation 308,144 22 Central governments and Supranational issuers 224 23 Central banks exposure 24 Trading Book 25 Undertakings and entities not subjected to CSRD 307,010 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 159,206 27 Loans and advances 158,745 28 of which loans collateralised by residential immovable property 38,123 29 of which building renovation loans 30 Debt securities 461 31 Equity instruments 32 Non-EU country counterparties not subject to CSRD disclosure obligations 147,804 33 Loans and advances 147,619 34 Debt securities 185 35 Equity instruments 36 Derivatives 37 On demand interbank loans 612 38 Cash and cash-related assets 39 Other categories of assets (e.g. Goodwill, commodities etc.) 297 40 Total assets 848,252 Off-balance sheet exposures (flow) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 1,240 317 119 119 42 Assets under management 182,952 59,554 15,079 14,565 35 21 43 of which debt securities 52,068 19,943 5,183 4,971 7 20 44 of which equity instruments 124,405 38,642 9,656 9,354 29 1 1) In accordance with Article 7(8)(a) and (b) of this Regulation. 2) In accordance with Article 4(1a) of this Regulation. 3) in accordance with Article 7(3) of this Regulation. 2025−12−31 Of which Taxonomy-aligned Non-assessed exposures Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Of which financing non-material activities of counterparties¹ Of which exposures financing counter- parties reporting in accordance with Article 7(9) Of which not assessed considered non-material by the credit institution²Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0 0 7 292 0 0 7 285 7 24 4 12 0 0 1 261 0 0 1 261 17,470 17,470 7 0 34 432 26 0 349 3,880 168 17 119 1,065 264 9 0 230 2,702 125Handelsbanken Annual Report 2025 2.4
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GAR sector information (turnover) 2025−12−31 Breakdown by sector – NACE 4 digits level (code and label) (SEK m) Total (Gross) carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Climate Change Mitigation (CCM) 1 6820 – Renting and operating of own or leased real estate 12,230 12,230 7,094 7,094 2 4646 – Wholesale of pharmaceutical and medical goods 3,463 3 2822 – Manufacture of lifting and handling equipment 3,251 325 325 325 4 7010 – Activities of head offices 3,127 3,127 1,313 1,313 5 2611 – Manufacture of electronic components 2,702 162 6 2740 – Manufacture of lighting equipment 2,280 1,879 155 155 7 4614 – Agents involved in the sale of machinery, industrial equipment, ships and aircraft except office machinery and computer equipment 2,259 7 8 8299 – Other business support service activities n.e.c. 1,762 1,727 88 88 9 4120 – Construction of residential and non-residential buildings 1,722 1,619 10 5510 – Hotels and similar accommodation 980 960 49 49 11 Nuclear activities¹ 542 3 1 12 Fossil gas activities² 546 3 0 13 Of which non-assessed exposures³ 1) Referred to in Sections 4.26, 4.27, and 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2) Referred to in Sections 4.29, 4.30, and 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3) In accordance with Article 7(8) of this Regulation. 2025−12−31 Breakdown by sector – NACE 4 digits level (code and label) (SEK m) Total (Gross) carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Climate Change Mitigation (CCM) 1 6820 – Renting and operating of own or leased real estate 12,230 11,986 4,525 4,525 2 4646 – Wholesale of pharmaceutical and medical goods 3,463 1,524 3 2822 – Manufacture of lifting and handling equipment 3,251 260 260 260 4 7010 – Activities of head offices 3,127 3,127 782 782 5 2611 – Manufacture of electronic components 2,702 127 6 2740 – Manufacture of lighting equipment 2,280 1,391 160 160 7 4614 – Agents involved in the sale of machinery, industrial equipment, ships and aircraft except office machinery and computer equipment 2,259 833 8 8299 – Other business support service activities n.e.c. 1,762 1,762 1,112 1,112 9 4120 – Construction of residential and non-residential buildings 1,722 1,447 1,378 1,378 10 5510 – Hotels and similar accommodation 980 980 618 618 11 Nuclear activities¹ 542 0 0 12 Fossil gas activities² 546 0 13 Of which non-assessed exposures³ 1) Referred to in Sections 4.26, 4.27, and 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2) Referred to in Sections 4.29, 4.30, and 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3) In accordance with Article 7(8) of this Regulation. GAR sector information (CapEx) 126 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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GAR sector information (turnover) 2025−12−31 Breakdown by sector – NACE 4 digits level (code and label) (SEK m) Total (Gross) carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Climate Change Mitigation (CCM) 1 6820 – Renting and operating of own or leased real estate 12,230 12,230 7,094 7,094 2 4646 – Wholesale of pharmaceutical and medical goods 3,463 3 2822 – Manufacture of lifting and handling equipment 3,251 325 325 325 4 7010 – Activities of head offices 3,127 3,127 1,313 1,313 5 2611 – Manufacture of electronic components 2,702 162 6 2740 – Manufacture of lighting equipment 2,280 1,879 155 155 7 4614 – Agents involved in the sale of machinery, industrial equipment, ships and aircraft except office machinery and computer equipment 2,259 7 8 8299 – Other business support service activities n.e.c. 1,762 1,727 88 88 9 4120 – Construction of residential and non-residential buildings 1,722 1,619 10 5510 – Hotels and similar accommodation 980 960 49 49 11 Nuclear activities¹ 542 3 1 12 Fossil gas activities² 546 3 0 13 Of which non-assessed exposures³ 1) Referred to in Sections 4.26, 4.27, and 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2) Referred to in Sections 4.29, 4.30, and 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3) In accordance with Article 7(8) of this Regulation. 2025−12−31 Breakdown by sector – NACE 4 digits level (code and label) (SEK m) Total (Gross) carrying amount Of which Taxonomy-eligible Of which Taxonomy-aligned Climate Change Mitigation (CCM) 1 6820 – Renting and operating of own or leased real estate 12,230 11,986 4,525 4,525 2 4646 – Wholesale of pharmaceutical and medical goods 3,463 1,524 3 2822 – Manufacture of lifting and handling equipment 3,251 260 260 260 4 7010 – Activities of head offices 3,127 3,127 782 782 5 2611 – Manufacture of electronic components 2,702 127 6 2740 – Manufacture of lighting equipment 2,280 1,391 160 160 7 4614 – Agents involved in the sale of machinery, industrial equipment, ships and aircraft except office machinery and computer equipment 2,259 833 8 8299 – Other business support service activities n.e.c. 1,762 1,762 1,112 1,112 9 4120 – Construction of residential and non-residential buildings 1,722 1,447 1,378 1,378 10 5510 – Hotels and similar accommodation 980 980 618 618 11 Nuclear activities¹ 542 0 0 12 Fossil gas activities² 546 0 13 Of which non-assessed exposures³ 1) Referred to in Sections 4.26, 4.27, and 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2) Referred to in Sections 4.29, 4.30, and 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3) In accordance with Article 7(8) of this Regulation. 2025−12−31 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 2025−12−31 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) GAR sector information (CapEx) 127Handelsbanken Annual Report 2025 2.4
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2025−12−31 % (compared to corresponding total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 93.7 8.1 8.1 0.0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 93.7 7.3 7.3 0.0 3 Financial undertakings 42.4 3.8 3.7 0.0 4 Loans and advances 35.1 4.0 4.0 0.0 5 Debt securities, including UoP 46.5 3.6 3.6 6 Equity instruments 51.3 3.4 3.4 7 Non-financial undertakings 41.6 6.7 6.7 0.0 8 Loans and advances 41.6 6.7 6.7 0.0 9 Debt securities, including UoP 10 Equity instruments 51.3 3.4 3.4 11 Households 98.4 7.5 7.5 12 of which loans collateralised by residential immovable property 100.0 7.6 7.6 13 of which building renovation loans 14 of which motor vehicle loans 100.0 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on a voluntary basis² 89.5 41.8 41.8 0.0 20 GAR – Total GAR assets 93.7 8.1 8.1 0.0 1) in accordance with Article 7(8) of this Regulation. 2) in accordance with Article 7(3) of this Regulation. GAR KPI stock (turnover) 128 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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2025−12−31 % (compared to corresponding total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 93.7 8.1 8.1 0.0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 93.7 7.3 7.3 0.0 3 Financial undertakings 42.4 3.8 3.7 0.0 4 Loans and advances 35.1 4.0 4.0 0.0 5 Debt securities, including UoP 46.5 3.6 3.6 6 Equity instruments 51.3 3.4 3.4 7 Non-financial undertakings 41.6 6.7 6.7 0.0 8 Loans and advances 41.6 6.7 6.7 0.0 9 Debt securities, including UoP 10 Equity instruments 51.3 3.4 3.4 11 Households 98.4 7.5 7.5 12 of which loans collateralised by residential immovable property 100.0 7.6 7.6 13 of which building renovation loans 14 of which motor vehicle loans 100.0 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on a voluntary basis² 89.5 41.8 41.8 0.0 20 GAR – Total GAR assets 93.7 8.1 8.1 0.0 1) in accordance with Article 7(8) of this Regulation. 2) in accordance with Article 7(3) of this Regulation. GAR KPI stock (turnover) 2025−12−31 Taxonomy-aligned Proportion of Taxonomy-aligned in Taxonomy-eligible Non-assessed exposures¹ Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enablingCircular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 0.0 0.0 0.1 8.6 0.0 0.0 0.0 0.1 7.8 0.0 0.1 0.1 8.8 0.1 0.1 11.3 0.0 0.1 0.0 7.8 6.6 0.0 0.0 0.0 1.8 16.2 0.0 0.0 0.0 1.8 16.2 6.6 7.6 7.6 0.0 0.0 46.8 0.0 0.0 0.0 0.1 8.6 129Handelsbanken Annual Report 2025 2.4
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GAR KPI stock (CapEx) 2025−12−31 % (compared to total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 94.0 8.3 8.3 0.0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 94.2 7.8 7.8 0.0 3 Financial undertakings 41.7 3.9 3.9 0.0 4 Loans and advances 32.7 4.1 4.1 0.0 5 Debt securities, including UoP 46.7 3.8 3.8 6 Equity instruments 51.5 3.5 3.5 7 Non-financial undertakings 52.4 18.2 18.2 0.0 8 Loans and advances 52.4 18.2 18.2 0.0 9 Debt securities, including UoP 10 Equity instruments 51.5 3.5 3.5 11 Households 98.4 7.5 7.5 12 of which loans collateralised by residential immovable property 100.0 7.6 7.6 13 of which building renovation loans 14 of which motor vehicle loans 100.0 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on a voluntary basis² 88.5 33.4 33.4 0.0 20 GAR – Total GAR assets 94.0 8.3 8.3 0.0 1) in accordance with Article 7(8) of this Regulation. 2) in accordance with Article 7(3) of this Regulation. 130 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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GAR KPI stock (CapEx) 2025−12−31 % (compared to total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 94.0 8.3 8.3 0.0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 94.2 7.8 7.8 0.0 3 Financial undertakings 41.7 3.9 3.9 0.0 4 Loans and advances 32.7 4.1 4.1 0.0 5 Debt securities, including UoP 46.7 3.8 3.8 6 Equity instruments 51.5 3.5 3.5 7 Non-financial undertakings 52.4 18.2 18.2 0.0 8 Loans and advances 52.4 18.2 18.2 0.0 9 Debt securities, including UoP 10 Equity instruments 51.5 3.5 3.5 11 Households 98.4 7.5 7.5 12 of which loans collateralised by residential immovable property 100.0 7.6 7.6 13 of which building renovation loans 14 of which motor vehicle loans 100.0 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on a voluntary basis² 88.5 33.4 33.4 0.0 20 GAR – Total GAR assets 94.0 8.3 8.3 0.0 1) in accordance with Article 7(8) of this Regulation. 2) in accordance with Article 7(3) of this Regulation. 2025−12−31 Taxonomy-aligned Proportion of Taxonomy-aligned in Taxonomy-eligible Non-assessed exposures¹ Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enablingCircular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 0.0 0.0 0.1 8.9 0.0 0.0 0.0 0.1 8.3 0.1 0.1 9.4 0.1 0.2 12.4 0.0 0.1 8.2 6.8 0.0 0.0 0.1 1.9 34.8 0.0 0.0 0.1 1.9 34.8 6.8 7.6 7.6 0.0 0.1 37.7 0.0 0.0 0.0 0.1 8.9 131Handelsbanken Annual Report 2025 2.4
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GAR KPI flow (turnover) 2025−12−31 % (compared to total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 39.2 4.0 4.0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 88.8 8.1 8.1 3 Financial undertakings 37.8 4.5 4.5 4 Loans and advances 36.8 5.2 5.2 5 Debt securities, including UoP 6 Equity instruments 7 Non-financial undertakings 39.9 5.3 5.3 8 Loans and advances 39.9 5.3 5.3 9 Debt securities, including UoP 10 Equity instruments 11 Households 96.9 8.7 8.7 12 of which loans collateralised by residential immovable property 100.0 9.0 9.0 13 of which building renovation loans 14 of which motor vehicle loans 100.0 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on a voluntary basis² 1.3 0.8 0.8 20 GAR – Total GAR assets 39.2 4.0 4.0 1) in accordance with Article 7(8) of this Regulation. 2) in accordance with Article 7(3) of this Regulation. 132 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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GAR KPI flow (turnover) 2025−12−31 % (compared to total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 39.2 4.0 4.0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 88.8 8.1 8.1 3 Financial undertakings 37.8 4.5 4.5 4 Loans and advances 36.8 5.2 5.2 5 Debt securities, including UoP 6 Equity instruments 7 Non-financial undertakings 39.9 5.3 5.3 8 Loans and advances 39.9 5.3 5.3 9 Debt securities, including UoP 10 Equity instruments 11 Households 96.9 8.7 8.7 12 of which loans collateralised by residential immovable property 100.0 9.0 9.0 13 of which building renovation loans 14 of which motor vehicle loans 100.0 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on a voluntary basis² 1.3 0.8 0.8 20 GAR – Total GAR assets 39.2 4.0 4.0 1) in accordance with Article 7(8) of this Regulation. 2) in accordance with Article 7(3) of this Regulation. 2025−12−31 Taxonomy-aligned Proportion of Taxonomy-aligned in Taxonomy-eligible Non-assessed exposures¹ Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enablingCircular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 0.0 0.0 0.1 10.1 0.0 0.0 0.0 0.1 9.2 0.0 0.0 0.1 11.9 0.0 0.1 14.0 0.0 0.0 0.0 2.6 13.2 0.0 0.0 0.0 2.6 13.2 9.0 9.0 59.9 0.0 0.0 0.0 0.1 10.1 133Handelsbanken Annual Report 2025 2.4
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GAR KPI flow (CapEx) 2025−12−31 % (compared to total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 39.5 4.1 4.1 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 89.6 8.7 8.7 3 Financial undertakings 37.7 4.6 4.6 4 Loans and advances 36.5 5.2 5.2 5 Debt securities, including UoP 6 Equity instruments 7 Non-financial undertakings 55.3 15.3 15.3 8 Loans and advances 55.3 15.3 15.3 9 Debt securities, including UoP 10 Equity instruments 11 Households 96.9 8.7 8.7 12 of which loans collateralised by residential immovable property 100.0 9.0 9.0 13 of which building renovation loans 14 of which motor vehicle loans 100.0 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on a voluntary basis² 1.3 0.7 0.7 20 GAR – Total GAR assets 39.5 4.1 4.1 1) in accordance with Article 7(8) of this Regulation. 2) in accordance with Article 7(3) of this Regulation. 134 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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GAR KPI flow (CapEx) 2025−12−31 % (compared to total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 GAR – Covered assets in both numerator and denominator 39.5 4.1 4.1 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 89.6 8.7 8.7 3 Financial undertakings 37.7 4.6 4.6 4 Loans and advances 36.5 5.2 5.2 5 Debt securities, including UoP 6 Equity instruments 7 Non-financial undertakings 55.3 15.3 15.3 8 Loans and advances 55.3 15.3 15.3 9 Debt securities, including UoP 10 Equity instruments 11 Households 96.9 8.7 8.7 12 of which loans collateralised by residential immovable property 100.0 9.0 9.0 13 of which building renovation loans 14 of which motor vehicle loans 100.0 15 Local governments financing 16 Housing financing 17 Other local government financing 18 Collateral obtained by taking possession: residential and commercial immovable properties 19 Exposures included on a voluntary basis² 1.3 0.7 0.7 20 GAR – Total GAR assets 39.5 4.1 4.1 1) in accordance with Article 7(8) of this Regulation. 2) in accordance with Article 7(3) of this Regulation. 2025−12−31 Taxonomy-aligned Proportion of Taxonomy-aligned in Taxonomy-eligible Non-assessed exposures¹ Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enablingCircular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 0.0 0.0 0.1 10.5 0.0 0.0 0.0 0.1 9.7 0.0 0.1 12.2 0.0 0.1 14.2 0.0 0.0 0.0 2.1 27.7 0.0 0.0 0.0 2.1 27.7 9.0 9.0 0.0 52.2 0.0 0.0 0.0 0.1 10.5 135Handelsbanken Annual Report 2025 2.4
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KPI off-balance sheet exposures (stock, turnover) 2025−12−31 % (compared to corresponding totaloff-balance sheet assets) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 Financial guarantees (FinGuar KPI) 7.6 1.5 1.5 0.0 2 Assets under management (AuM KPI) 31.2 6.5 6.1 0.1 0.0 1) In accordance with Article 7(8) of this Regulation. KPI off-balance sheet exposures (stock, CapEx) 2025−12−31 % (compared to corresponding totaloff-balance sheet assets)) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 Financial guarantees (FinGuar KPI) 10.9 4.2 4.2 2 Assets under management (AuM KPI) 32.1 8.3 8.0 0.0 0.0 1) In accordance with Article 7(8) of this Regulation. KPI off-balance sheet exposures (flow, turnover) 2025−12−31 % (compared to corresponding totaloff-balance sheet assets) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 Financial guarantees (FinGuar KPI) 17.8 2.8 2.8 0.0 2 Assets under management (AuM KPI) 31.0 6.3 5.9 0.1 0.0 1) In accordance with Article 7(8) of this Regulation. KPI off-balance sheet exposures (flow, CapEx) 2025−12−31 % (compared to corresponding totaloff-balance sheet assets) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 Financial guarantees (FinGuar KPI) 25.6 9.6 9.6 2 Assets under management (AuM KPI) 32.6 8.2 8.0 0.0 0.0 1) In accordance with Article 7(8) of this Regulation. 136 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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KPI off-balance sheet exposures (stock, turnover) 2025−12−31 % (compared to corresponding totaloff-balance sheet assets) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 Financial guarantees (FinGuar KPI) 7.6 1.5 1.5 0.0 2 Assets under management (AuM KPI) 31.2 6.5 6.1 0.1 0.0 1) In accordance with Article 7(8) of this Regulation. KPI off-balance sheet exposures (stock, CapEx) 2025−12−31 % (compared to corresponding totaloff-balance sheet assets)) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 Financial guarantees (FinGuar KPI) 10.9 4.2 4.2 2 Assets under management (AuM KPI) 32.1 8.3 8.0 0.0 0.0 1) In accordance with Article 7(8) of this Regulation. KPI off-balance sheet exposures (flow, turnover) 2025−12−31 % (compared to corresponding totaloff-balance sheet assets) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 Financial guarantees (FinGuar KPI) 17.8 2.8 2.8 0.0 2 Assets under management (AuM KPI) 31.0 6.3 5.9 0.1 0.0 1) In accordance with Article 7(8) of this Regulation. KPI off-balance sheet exposures (flow, CapEx) 2025−12−31 % (compared to corresponding totaloff-balance sheet assets) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) 1 Financial guarantees (FinGuar KPI) 25.6 9.6 9.6 2 Assets under management (AuM KPI) 32.6 8.2 8.0 0.0 0.0 1) In accordance with Article 7(8) of this Regulation. 2025−12−31 Taxonomy-aligned Non-assessed exposures¹ Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enablingCircular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 0.0 1.2 0.3 0.0 0.3 2.2 2025−12−31 Taxonomy-aligned Non-assessed exposures¹ Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enablingCircular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 1.4 0.2 0.0 0.0 0.3 2.4 2025−12−31 Taxonomy-aligned Non-assessed exposures¹ Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enablingCircular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 0.0 2.0 0.3 0.0 0.2 1.9 2025−12−31 Taxonomy-aligned Non-assessed exposures¹ Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enablingCircular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 0.0 2.7 0.2 0.0 0.0 0.2 2.1 137Handelsbanken Annual Report 2025 2.4
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KPIs of life insurance undertakings Investment KPI Exposures % SEK m 1 Total AUM 100.0 316 875 2 Assets covered by the KPI 45.6 144 339 % of covered assets % Turnover based % CapEx based 3 Taxonomy eligible 32.1 31.8 4 Nuclear activites¹ 0.1 0.0 5 Fossil gas activites² 0.0 0.0 6 Taxonomy aligned 6.4 8.3 7 Undertakings subject to Article 19a and 29a of Directive 2013/34/EU 4.8 6.9 8 of which Non-financial undertakings 4.8 6.9 9 of which Financial undertakings 10 Other covered counterparties and real estate assets 11 Investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders 0.1 0.1 12 Exposures included on a voluntary basis³ 1.5 1.3 13 Transitional activities 0.3 0.2 14 Enabling activities 2.4 2.5 15 Nuclear activites¹ 0.1 0.0 16 Fossil gas activites² 0.0 0.0 Taxonomy aligned per objective % Turnover based % CapEx based 17 Climate Change Mitigation (CCM) 5.9 8.1 18 Climate Change Adaptation (CCA) 0.1 19 Water and marine resources (WTR) 20 Circular economy (CE) 0.4 0.2 21 Pollution (PPC) 22 Biodiversity and Ecosystems (BIO) 23 Non-assessed exposures 24 Exposures financing non-assessed non -material activities of counterparties⁴ 25 Exposures financing counterparties reporting in accordance with Article 7(9) to this Regulation⁵ 26 Non-assessed exposures considered non-material by the reporting entity⁶ Breakdown of covered assets % SEK m 27 Undertakings subject to Article 19a and 29a of Directive 2013/34/EU 85.5 123,358 28 of which Non-financial undertakings 70.9 102,283 29 of which Financial undertakings 30 Other covered counterparties and real estate assets 31 Investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders 1.9 2,710 32 Exposures included on a voluntary basis³ 12.7 18,272 1) Referred to in Sections 4.26, 4,27, and 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2) Referred to in Sections 4.29, 4.30, and 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3) In accordance with Article 7(3) of this Regulation. 4) In accordance with Article 7(8)(a) and (b) of this Regulation. 5) Figures should be the same in both columns. 6) In accordance with Article 6(1b) of this Regulation. Figures should be the same in both columns. 138 HandelsbankenAnnual Report 2025 Introduction Financial statements OtherAdministration report Sustainability statement EU Taxonomy 2.4
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2.5 Auditor’s limited assurance report of Svenska Handelsbanken AB (publ)’s statutory sustainability statement To the general meeting of the shareholders of Svenska Handels banken AB (publ), corporate identity number 502007 -7862 This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail. Conclusion We have conducted a limited assurance engagement of the sustainability statement for Svenska Handels banken AB (publ) for the financial year 2025. The sustainability state - ment is included on pages 57 -139 in this document. Based on our limited assurance engagement as described in the section Auditor’s responsi - bility, nothing has come to our attention that causes us to believe that the sustainability statement does not, in all material respects, meet the requirements of the Swedish Annual Accounts Act which includes, • whether the sustainability statement meets the requirements of ESRS, • whether the process the company has car - ried out to identify reported sustainability information has been conducted as described in IRO- 1 of the sustainability state - ment, • compliance with the reporting requirements of the EU’s Green Taxonomy Regulation Article 8. Basis for conclusion We have conducted the limited assurance engagement in accordance with FAR’s recom - mendation RevR 19 Revisorns översiktliga granskning av den lagstadgade hållbarhets rapporten. Our responsibility according to this recommendation is further described in the section Auditor’s responsibility. We believe that the evidence we have obtained is sufficient and appropriate to pro - vide a basis for our conclusion. Other information than the sustainability statement This document also contains other information than the sustainability statement and is found on pages 1-56 and 143-347. The Board of Directors and the Managing Director are responsible for this other information. Our conclusion on the sustainability state - ment does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our limited assurance engagement on the sustainability statement, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the sustainability statement. In this procedure we also take into account our knowledge other - wise obtained in the limited assurance engage- ment and assess whether the information other wise appears to be materially misstated. If we, based on the work performed con - cerning this information, conclude that there is a material misstatement of this other informa - tion, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors, and the Managing Director, are responsible for the preparation of sustainability statement in accordance with Chapter 6, Sections 12-12f of the Swedish Annual Accounts Act, and for such internal control as the Board of Directors and the Managing Director determines necessary to enable the preparation of the sustainability statement that is free from material misstate - ments, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express a conclusion on whether the sustainability report has been prepared in accordance with Chapter 6, Sec - tions 12-12f of the Swedish Annual Accounts Act based on our review. The limited assur - ance engagement has been conducted in accordance with FAR’s recommendation RevR 19 Revisorns översiktliga granskning av den lagstadgade hållbarhetsrapporten . This recom - mendation requires that we plan and perform our procedures to obtain limited assurance that the sustainability statement is prepared in accordance with these requirements. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assur - ance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. This means that it is not pos - sible for us to obtain such assurance that we become aware of all significant matters that could have been identified if a reasonable assurance engagement had been performed. Our firm applies ISQM 1 (International Stan - dard on Quality Management), which requires the firm to design, implement and operate a system of quality management, including poli - cies and procedures regarding compliance with ethical requirements, professional stan - dards, and applicable legal and regulatory requirements. We are independent of Svenska Handels - banken AB (publ) in accordance with profes - sional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibili - ties in accordance with these requirements. A limited assurance engagement involves performing procedures to obtain evidence about the sustainability statement. The auditor selects the procedures to be performed, in - cluding assessing the risks of material mis - statements in the sustainability statement, whether due to fraud or error. In this risk assess - ment, the auditor considers the parts of the internal control that are relevant to how the Board of Directors and the Managing Director prepares the sustainability statement, in order to design procedures that are appropriate under the circumstances, but not for the pur - pose of providing a conclusion on the effec - tiveness of the company’s internal control. The review consists of making inquiries, primarily of persons responsible for the preparation of the sustainability statement, performing analytical review, and conducting other limited review procedures. The review procedures primarily include: Our procedures regarding the process that the company has implemented to identify sustain - ability information to be reported included, but were not limited to, the following: • Making inquiries to management and other individuals within the company to under - stand the sources of information used. • Reviewed selected internal documentation of the company. • Evaluating whether the information obtained is consistent with the description of the pro - cess in the sustainability report. 140 HandelsbankenAnnual Report 2025 Introduction Financial statements Other 2.5 Administration report Sustainability statement Auditor’s report Auditor’s limited assurance report of Svenska Handelsbanken AB (publ)’s statutory sustainability statement
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Our procedures regarding the sustainability report included, but were not limited to, the following: • Through inquiries to management and other individuals within the company, obtained a general understanding of the internal control environment, reporting processes, and information systems relevant to the prepara - tion of the information in the sustainability statement. • Evaluate whether the information identified by the Process is included in the sustaina - bility statement; • Through inquiries, analytical procedures and sample testing concerning selected disclo - sures in the sustainability report • Evaluate whether the presentation of the sustainability statement is in accordance with the ESRS Our procedures regarding the taxonomy dis - closures included, but were not limited to, the following: • Through inquiries to management and other individuals within the company, obtained a general understanding of the processes and sources of information used in the taxon - omy disclosures • Evaluated whether the presentation of the taxonomy disclosures is consistent with the requirements of the EU Taxonomy Regulation. Inherent limitations in preparing the sustainability statement In reporting forward-looking information in accordance with ESRS, the Board of Directors and the Managing Director of Svenska Handels banken AB (publ) are required to pre - pare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by Svenska Handels banken AB (publ). Actual outcomes are likely to be differ - ent since anticipated events frequently do not occur as expected. Stockholm, 25 February 2026 Öhrlings PricewaterhouseCoopers AB Deloitte AB Magnus Svensson Henryson Malin Lüning Authorized Public Accountant Authorized Public Accountant 141Handelsbanken Annual Report 2025 2.5
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3.0 Financial statements Financial statements 143Handelsbanken Annual Report 2025 3.0
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3.1 Group Income statement Consolidated income statement SEK m Note 2025 2024 Interest income G3 129,379 171,125 of which attributable to financial assets at amortised cost¹ 115,233 150,587 Interest expenses G3 −86,837 −124,284 Net interest income 42,542 46,841 Fee and commission income G4 13,417 13,252 Fee and commission expenses G4 −1,554 −1,526 Net fee and commission income 11,863 11,726 Net gains/losses on financial transactions G5 1,692 3,103 Insurance result 137 126 Return on assets held on behalf of policyholders 152 297 Net insurance result G6 289 422 Other dividend income 11 16 Share of profit of associates and joint ventures −9 27 Other income G7 408 209 Total income 56,796 62,345 Staff costs G8 −14,777 −15,731 Other expenses G9 −6,770 −7,474 Depreciation, amortisation and impairment of tangible and intangible assets G10 −2,020 −2,004 Total expenses −23,567 −25,209 Profit before credit losses and regulatory fees 33,229 37,136 Net credit losses G11 313 601 Gains/losses on disposal of tangible and intangible assets G12 8 13 Regulatory fees G13 −2,800 −2,733 Operating profit 30,750 35,016 Taxes G37 −6,755 −7,795 Profit for the year from continuing operations 23,995 27,221 Profit for the year from discontinued operations, after tax G14 −266 234 Profit for the year 23,729 27,456 attributable to Shareholders in Svenska Handels banken AB 23,727 27,451 of which from continuing operations 23,993 27,217 of which from discontinued operations −266 234 Non-controlling interest 3 5 Earnings per share, total operations, SEK G15 11.98 13.86 after dilution G15 11.98 13.86 Earnings per share, continuing operations, SEK G15 12.12 13.75 after dilution G15 12.12 13.75 Earnings per share, discontinued operations, SEK G15 −0.13 0.12 after dilution G15 −0.13 0.12 1) This item includes interest income according to the effective interest method and interest on derivatives in hedge accounting. 144 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Statement of comprehensive income Consolidated statement of comprehensive income SEK m 2025 2024 Profit for the year 23,729 27,456 Other comprehensive income Items that will not be reclassified to the income statement Defined benefit pension plans 622 344 Equity instruments measured at fair value through other comprehensive income −1 207 Tax on items that will not be reclassified to the income statement −123 −77 of which defined benefit pension plans −122 −36 of which equity instruments measured at fair value through other comprehensive income −1 −41 Total 498 475 Items that may subsequently be reclassified to the income statement Cash flow hedges −88 160 Debt instruments measured at fair value through other comprehensive income −8 6 Insurance contracts −16 66 Translation difference for the year −5,425 1,758 of which hedges of net investments in foreign operations 710 −230 Tax on items that may subsequently be reclassified to the income statement 329 −52 of which cash flow hedges 18 −33 of which debt instruments measured at fair value through other comprehensive income −2 −1 of which hedges of net investments in foreign operations −146 47 of which translation difference 459 −65 Total −5,209 1,937 Total other comprehensive income −4,711 2,412 Total comprehensive income for the year 19,018 29,868 attributable to Shareholders in Svenska Handels banken AB 19,020 29,870 Non-controlling interest −2 −2 The year’s reclassifications to the income statement are presented in the Statement of changes in equity. For January-December 2025, other comprehensive income amounted to SEK -4,711 million (2,412) after tax. The main reason for the large negative effect on other comprehensive income was the translation of foreign operations amounting to SEK -5,112 million (1,740) after tax. The reason for this was the SEK strengthening during the year against all currencies in the countries in which the Group operates. Other comprehensive income was positively affected by SEK 500 million (308) after tax during the period, primarily due to a higher discount rate for the Swedish pension obligation. The discount rate amounted to 3.9% compared with 3.6% at year-end 2024. 145Handelsbanken Annual Report 2025 3.1
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Balance sheet Consolidated balance sheet SEK m Note 2025 2024 Assets Cash and balances with central banks 408,154 529,995 Other loans to central banks G16 24,526 12,547 Interest-bearing securities eligible as collateral with central banks G17 188,272 172,606 Loans to other credit institutions G18 21,694 18,922 Loans to the public G19 2,263,765 2,297,878 Value change of interest-hedged item in portfolio hedge −5,510 −6,399 Bonds and other interest-bearing securities G20 53,631 47,508 Shares G21 16,549 14,746 Investments in associates and joint ventures G22 881 860 Assets where the customer bears the value change risk G23 312,284 287,984 Derivative instruments G24 21,752 47,069 Intangible assets G27 7,991 8,426 Tangible assets G28 4,956 4,803 Current tax assets 14 100 Deferred tax assets G37 631 157 Pension assets G8 14,920 13,102 Assets held for sale G14 43,580 74,506 Other assets G29 6,956 11,896 Prepaid expenses and accrued income G30 2,518 2,468 Total assets G43 3,387,566 3,539,173 Liabilities and equity Liabilities Due to credit institutions G31 64,525 84,280 Deposits and borrowing from the public G32 1,293,784 1,310,739 Liabilities where the customer bears the value change risk G33 312,714 288,263 Issued securities, etc. G34 1,429,185 1,550,027 Derivative instruments G24 26,211 15,956 Short positions G35 2,163 1,007 Insurance liabilities G36 7,310 7,808 Current tax liabilities 726 957 Deferred tax liabilities G37 4,028 3,744 Provisions G38 538 378 Liabilities held for sale G14 413 10,623 Other liabilities G39 10,524 15,376 Accrued expenses and deferred income G40 2,029 2,935 Subordinated liabilities G41 34,061 37,054 Total liabilities G43 3,188,211 3,329,146 Equity Non-controlling interest 3 6 Share capital 3,069 3,069 Share premium reserve 8,758 8,758 Provisions G42 13,953 18,659 Retained earnings 149,845 152,085 Profit for the year (attributable to shareholders of Svenska Handels banken AB) 23,727 27,451 Total equity 199,355 210,027 Total liabilities and equity 3,387,566 3,539,173 146 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Statement of changes in equity Consolidated statement of changes in equity 2025 SEK m Share capital Share premium reserve Other reserves Retained earnings incl. profit for the year Non- controlling interest Total Defined benefit pension plans Cash flow hedges Fair value through other comprehen- sive income Insurance contracts Translation of foreign operations Opening balance 3,069 8,758 12,271 308 369 462 5,249 179,535 6 210,027 Profit for the year 23,727 3 23,729 Other comprehensive income 500 −70 −13 −16 −5,107 −5 −4,711 of which reclassification within equity −10 −10 Total comprehensive income for the year 500 −70 −13 −16 −5,107 23,727 −2 19,018 Reclassified to retained earnings 10 10 Dividend¹ −29,700 −29,700 Share-based payment to employees at Handels banken plc² 22 22 Settlement of share-based payments to employees² −22 −22 Closing balance 3,069 8,758 12,771 238 356 446 142 173,572 3 199,355 2024 SEK m Share capital Share premium reserve Other reserves Retained earnings incl. profit for the year Non- controlling interest Total Defined benefit pension plans Cash flow hedges Fair value through other comprehen- sive income Insurance contracts Translation of foreign operations Opening balance 3,069 8,758 11,963 181 197 396 3,502 177,011 8 205,085 Profit for the year 27,451 5 27,456 Other comprehensive income 308 127 171 66 1,747 −7 2,412 of which reclassification within equity −3 −811 −814 Total comprehensive income for the year 308 127 171 66 1,747 27,451 −2 29,868 Reclassified to retained earnings 814 814 Dividend¹ −25,740 −25,740 Share-based payment to employees at Handels banken plc² 54 54 Settlement of share-based payments to employees² −54 −54 Closing balance 3,069 8,758 12,271 308 369 462 5,249 179,535 6 210,027 1) The total dividend paid in 2025 for 2024 amounted to SEK 15 per share. The total dividend paid in 2024 for 2023 amounted to SEK 13 per share. 2) As of the 2020 earnings year, all employees at Handels banken plc are covered by a Share Incentive Plan (SIP). 147Handelsbanken Annual Report 2025 3.1
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Statement of cash flows Consolidated statement of cash flows SEK m Note 2025 2024 Operating activities Operating profit 30,750 35,016 Profit from discontinued operations, before tax −287 307 of which paid-in interest 133,143 178,825 of which paid-out interest −90,658 −127,203 of which paid-in dividends 193 191 Adjustment from operating activities to investing activities 43 1,767 of which to Divestment of operations and subsidiaries 0 1,767 of which to Sales of shares 43 Adjustment for non-cash items in operating profit and profit for the year from discontinued operations Credit losses −54 −576 Unrealised value changes 1,631 −89 Amortisation and impairment 1,941 2,435 Paid income tax G37 −7,162 −8,519 Changes in the assets and liabilities of operating activities Other loans to central banks G16 −12,610 20,212 Interest-bearing securities eligible as collateral with central banks G17 −15,665 26,522 Loans to other credit institutions G18 −2,927 479 Loans to the public G19 9,747 43,885 Bonds and other interest-bearing securities G20 −6,422 2,106 Shares G21 −3,236 −1,993 Due to credit institutions G31 −7,140 −4,719 Deposits and borrowing from the public G32 14,816 −37,234 Issued securities G34 −80,823 4,872 Derivative instruments, net positions G24 35,692 −35,154 Short positions G35 1,116 −1,260 Claims and liabilities from unsettled trades 2,034 −1,997 Other −7,739 −1,531 Cash flow from operating activities −46,294 44,529 Investing activities Divestment of operations and subsidiaries 0 17,147 Divestment of portfolios 1,231 Acquisitions of and contributions to associates and joint ventures G22 −162 −175 Divestment of associates and joint ventures G22 132 Divestment of shares G21 10 6 Acquisitions of tangible assets G28 −535 −949 Disposals of tangible assets G28 5 398 Acquisitions of intangible assets G27 −558 −678 Cash flow from investing activities 123 15,748 Financing activities Repayment of subordinated liabilities G41 −13,371 Issued subordinated liabilities G41 5,704 Dividend paid −29,700 −25,740 Cash flow from financing activities −29,700 −33,407 Cash flow for the year −75,871 26,870 Cash and cash equivalents at beginning of year 530,009 476,181 Cash flow from operating activities −46,294 44,529 Cash flow from investing activities 123 15,748 Cash flow from financing activities −29,700 −33,407 Foreign exchange effects on cash and cash equivalents −45,983 26,957 Cash and cash equivalents at end of year 408,155 530,009 The statement of cash flows has been prepared in accordance with the indirect method, which means that operating profit and profit for the year from discontinued operations have been adjusted for transactions that did not entail paid-in or paid-out cash, such as depreciation/amortisation and credit losses. Cash and cash equivalents is defined as cash and balances with central banks. The method for allocating foreign exchange effects on cash flow assets and liabilities was modified in 2025. Accordingly, the comparative figures were adjusted to align with the same method. The statement of cash flows in the above table includes the discontinued operations in Finland, see note G14. 148 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Change in liabilities in financing activities SEK m 2025 2024 Opening balance 37,054 43,117 Cash flow −7,667 Non-cash changes, foreign exchange fluctuations −3,668 1,908 Non-cash changes, foreign exchange hedges 774 −16 Non-cash changes, accrued interest −99 −287 Closing balance 34,061 37,054 Divestment of operations and subsidiaries SEK m 2024 Purchase price Total purchase price 18,843 Claim on purchaser −1,696 Payment received 17,147 Divested assets and liabilities Loans to the public 34,119 Other assets 6 Total assets 34,124 Deposits and borrowing from the public 15,170 Other liabilities 40 Total liabilities 15,210 Cash flow from operating activities −1,766 The purchase price in its entirety is received in the form of cash and cash equivalents. Consolidated statement of cash flows, cont. 149Handelsbanken Annual Report 2025 3.1
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Notes for the Group Notes for the Group G1 Material accounting policies 151 G2 Risk and capital management 164 G3 Net interest income 207 G4 Net fee and commission income 207 G5 Net gains/losses on financial transactions 209 G6 Net insurance result 209 G7 Other income 209 G8 Staff costs 210 G9 Other expenses 217 G10 Depreciation, amortisation and impairment of tangible and intangible assets 217 G11 Net credit losses 218 G12 Gains/losses on disposal of tangible and intangible assets 224 G13 Regulatory fees 224 G14 Assets and liabilities held for sale, and discontinued operations 225 G15 Earnings per share 227 G16 Other loans to central banks 227 G17 Interest-bearing securities eligible as collateral with central banks 228 G18 Loans to other credit institutions 228 G19 Loans to the public 228 G20 Bonds and other interest-bearing securities 229 G21 Shares 229 G22 Investments in associates and joint ventures 230 G23 Assets where the customer bears the value change risk 230 G24 Derivative instruments 231 G25 Hedge accounting 232 G26 Offsetting of financial instruments 237 G27 Intangible assets 238 G28 Tangible assets 240 G29 Other assets 241 G30 Prepaid expenses and accrued income 241 G31 Due to credit institutions 241 G32 Deposits and borrowing from the public 242 G33 Liabilities where the customer bears the value change risk 242 G34 Issued securities 243 G35 Short positions 243 G36 Insurance liabilities 244 G37 Taxes 249 G38 Provisions 251 G39 Other liabilities 251 G40 Accrued expenses and deferred income 251 G41 Subordinated liabilities 252 G42 Specification of changes in equity 253 G43 Classification of financial assets and liabilities 254 G44 Fair value measurement of financial instruments 256 G45 Pledged assets, collateral received and transferred financial assets 258 G46 Contingent liabilities 260 G47 Leases 260 G48 Segment reporting 262 G49 Geographical information 264 G50 Assets and liabilities by material currency 265 G51 Interests in unconsolidated structured entities 266 G52 Related-party disclosures 267 G53 Events after the balance sheet date 267 G54 Capital adequacy 268 150 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G1 Material accounting policies Contents 1. Statement of compliance 2. Changed accounting policies 3. Changes in IFRS which are yet to be applied 4. Financial instruments 5. Principles for fair value measurement of financial assets and liabilities 6. Credit losses 7. Hedge accounting 8. Insurance operations 9. Assets held for sale and accounting of discontinued operations 10. Equity 11. Income 12. Employee benefits 13. Regulatory fees 14. Material assessments and estimates 1. Statement of compliance Basis of accounting The consolidated accounts have been pre - pared in accordance with IFRS® Accounting Standards and interpretations of these stan - dards as adopted by the EU. In addition, the accounting policies also adhere to the Annual Accounts Act for Credit Institutions and Secu - rities Companies (1995:1559), and the regula - tions and general guidelines issued by the Swedish Financial Supervisory Authority in FFFS 2008:25, Annual Reports in Credit Institutions and Securities Companies. RFR 1 Supplementary Accounting Rules for Groups, and statements from the Swedish Corporate Reporting Board, are also applied in the con - solidated accounts. The presentation currency is the Swedish krona and all figures are rounded to the nearest million kronor (SEK m) unless otherwise stated. The parent company’s accounting policies are shown in note P1. Issuing and adoption of Annual Report and company information Svenska Handels banken Aktiebolag’s Annual Report and consolidated accounts for the period 1 January 2025–31 December 2025 were approved for issue by the Board and Chief Executive Officer on 19 February 2026 and will be presented for adoption by the AGM on 25 March 2026. The parent company, Svenska Handels - banken AB (publ), is domiciled in Stockholm at the address Kungsträdgårdsgatan 2, 106 70 Stockholm, Sweden. Handels banken is a credit institution that offers financial services and products in its home markets, Sweden, the UK, Norway and the Netherlands. The operations are described in more detail in the Administra - tion report. 2. Changed accounting policies The changes in accounting regulations appli - cable from 1 January 2025 have not had any impact on Handels banken’s financial state - ments, capital adequacy, large exposures or other circumstances according to applicable operating regulations. The accounting policies and calculation methods applied by the Group during the financial year are consistent with the policies applied in the Annual and Sustainability Report for 2024. 3. Changes in IFRS which are yet to be applied Presentation and Disclosure in Financial Statements (IFRS 18) In April 2024, the IASB published the new stan - dard IFRS 18 Presentation and Disclosures in Financial Statements, which replaces IAS 1 Presentation of Financial Statements. Provided that the EU endorses IFRS 18, and the effec - tive date proposed by the IASB is not changed, the standard will be applied from the 2027 financial year. IFRS 18 introduces new require - ments for the presentation and disclosure of information in financial statements. The stan - dard sets out requirements for the presenta - tion of the primary financial statements to help ensure they provide relevant and useful struc - tured summaries of an entity’s recognised assets, liabilities, equity, income, expenses and cash flows. The particular focus is on making the income statement more structured by including defined subtotals, which is expected to assist users in understanding the informa - tion and making comparisons across entities since differences in reporting between entities are expected to decrease. Furthermore, the notes are to supplement the information in the primary financial statements by providing material information to ensure comprehension of line items. Under the new requirements, all items of income and expense are to be classified into five categories based on the main business activity, which may impact the presentation of the income statement. Of these, the catego - ries Operating, Investing and Financing are new, while Income taxes and Discontinued operations are unchanged. The standard also introduces additional requirements to aggre - gate and disaggregate financial information, which may affect the presentation in both the primary financial statements and the notes. In addition, the standard introduces requirements to disclose management-defined performance measures (MPMs) in a single note, which are performance measures outside the financial statements identified by management. The new category requirements for the income statement and the aggregation and disaggregation principle for financial informa - tion entail changes to the aggregation and disaggregation of items in both the Bank’s primary financial statements and the notes. A note containing MPMs will also be added. The new requirements are not currently expected to have a significant impact on the presentation and disclosure of Handels banken’s financial statements. The standard is also not expected to have any financial impact on Handels banken since IFRS 18 does not entail any new valuation principles and instead focuses on the presentation and disclosures in the financial statements. The Bank will continue to analyse its preliminary conclusion on the effects of the standard in 2026. Amendments to the classification and measurement of financial instruments (IFRS 9 and IFRS 7) Amendments to the Classification and Mea - surement of Financial Instruments – Amend - ments in IFRS 9 and IFRS 7 were adopted by the EU on 27 May 2025 and are to be applied from the 2026 financial year. The amendments to IFRS 9 mainly clarify assessing whether contractual cash flows in financial assets, which include terms that are dependent on future events, meet the criteria for solely pay - ments of principal and interest (SPPI criteria). The amendments mainly provide guidance for assessing whether the SPPI criteria are met for loans with ESG-linked features. In some cases, a contingent event gives rise to contractual cash flows that meet the SPPI criteria, both before and after the change in cash flows, but the nature of the contingent event does not relate directly to changes in basic lending risks 151Handelsbanken Annual Report 2025 3.1
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and costs. An example is loans with ESG-linked features under which the interest rate accord - ing to the contractual terms is adjusted based on the reduction in the borrower’s carbon emissions. In such a case, the SPPI criteria are met only if the contractual cash flows in all potential scenarios are not materially different from a financial asset with identical contractual cash flows but without such a contingent event. Furthermore, clarification is provided that contractual cash flows do not meet the SPPI criteria if they are based on a variable that does not constitute basic lending risks and costs, for example, follows an equity index or commodity index, or if they represent a share of the borrower’s income or profit, even if such terms and conditions are common in the market. The amendments to IFRS 7 include provid - ing qualitative and quantitative disclosures about the effect of contractual terms that could change the amount of contractual cash flows dependent on the occurrence (or non- occurrence) of a contingent event that does not relate directly to changes in basic lending risks and costs. The disclosure requirements encompass financial assets measured at amortised cost or fair value through other comprehensive income and financial liabilities measured at amortised cost. The amendments to IFRS 9 also clarify the date of initial recognition of financial assets and liabilities, and the date of derecognition of financial assets and liabilities from the state - ment of financial position. The amendments also include an optional exemption whereby financial liabilities settled using an electronic payment system can be derecognised from the statement of financial position before the obligation is extinguished, i.e. before the con - tractual obligation is discharged, cancelled or expires, provided that certain criteria specified in the regulations are met. These amendments are not deemed to have any material impact on Handels banken’s finan - cial statements, capital adequacy, large expo - sures or other circumstances according to applicable operating regulations. Other future changes in accounting regulations Other future changes in accounting regula - tions issued for application are not deemed to have any material impact on Handels banken’s financial statements, capital adequacy, large exposures or other circumstances according to applicable operating regulations. 4. Financial instruments (IFRS 9 Financial Instruments, IAS 32 Financial Instruments: Presentation) Recognition and derecognition Purchases and sales of equities and money market and capital market instruments on the spot market are recognised on the trade date. The same applies to derivatives. Other finan - cial assets and liabilities are normally rec - ognised on the settlement date. Financial assets are derecognised from the balance sheet when the contractual rights to the cash flows originating from the asset expire or when all risks and rewards related to the asset are transferred to another party. A financial liability is derecognised from the balance sheet when the obligation is fulfilled, ceases or is cancelled. Measurement categories Financial assets are allocated to one of the following measurement categories: 1. amortised cost 2. fair value through other comprehensive income 3. fair value through profit or loss a) mandatory b) fair value option. The starting points for the classification of financial assets into the respective measure - ment categories is the company’s business model for managing such assets and the asset’s contractual terms. Financial liabilities are allocated to one of the following measurement categories: 1. amortised cost 2. fair value through profit or loss a) mandatory b) fair value option. As a general rule, financial liabilities are rec - ognised at amortised cost. The exceptions are financial liabilities which are required to be measured at fair value through profit or loss, such as derivatives, and liabilities which, upon initial recognition, are irrevocably identified as being measured at fair value (fair value option). Financial assets and liabilities recognised on the same row on the balance sheet may be classified in different measurement categories, see note G43 Classification of financial assets and liabilities. Upon initial recognition, all financial assets and liabilities are recognised at fair value. For financial instruments at fair value through profit or loss, the transaction costs are recognised in the income statement on the acquisition date. For other financial instruments, the transaction costs are included in the acquisition cost. Assessment of the business model for financial assets The assessment of the business model for managing financial assets defines classifica - tion into measurement categories. For the pur - poses of the business model, Handels banken has divided its financial assets into portfolios on the basis of how they are managed, reported and evaluated by the Bank’s management. When the business model is determined for the respective portfolio, the factors consid - ered include established guidelines and objec - tives with a portfolio and how these are imple - mented in the operations, the risks which affect the performance of the portfolio and how the risks are managed, as well as the fre - quency, volume, reasons for and times of sales. Assessment of financial assets’ contractual terms The assessment of whether contractual cash flows constitute solely payments of principal and interest, and thus are consistent with a basic lending arrangement, is significant for the classification into measurement catego - ries. For the purposes of this assessment, “principal” is defined as the financial asset’s fair value upon initial recognition. “Interest” is defined as consideration for the time value of money, credit risk, other fundamental lending risks (such as liquidity risk) and costs (such as administrative expenses), as well as a profit margin. If the financial asset has contractual terms that could change the timing or amounts of the contractual cash flows, modify the con - sideration for the time value of money, cause leverage or entail extra costs for prepayment and extension, then the cash flows are assessed as not constituting solely payments of principal and interest. The Bank offers corporate customers loans with ESG-linked features, which provide incen - tives for borrowers to achieve improvements within predetermined sustainability targets by adjusting the interest rate based on the bor - rower’s fulfillment of these sustainability tar - gets. The difference compared with loans without ESG-linked features is that the interest rate is adjusted by a percentage stated in the contract (mainly between 1.5–5.0 basis points) based on the borrower meeting these sustain - ability targets. The sustainability-related tar - gets are thus specific to each borrower. The Bank has evaluated the loans with ESG-linked features and the contractual cash flows are deemed to consist solely of payments of prin - cipal and interest. The contractual cash flows are thus considered to be consistent with a basic lending arrangement and the loans with ESG-linked features are measured at amor - tised cost. G1 cont. 152 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Amortised cost A financial asset is to be measured at amortised cost if both of the following conditions are met: • The objective of the business model is to collect contractual cash flows. • The contractual cash flows constitute solely payments of principal and interest. Financial assets recognised in this measure - ment category consist of loans and holdings of interest-bearing securities. These assets are subject to impairment testing. Financial liabili - ties recognised in this measurement category consist primarily of liabilities due to credit insti - tutions, deposits and borrowing from the pub - lic, and issued securities. Amortised cost consists of the discounted present value of all future cash flows relating to the instrument where the discount rate is the instrument’s effective interest rate at the time of acquisition. Interest and credit losses are recognised in the income statement items Net interest income and Credit losses, respec - tively. Early repayment charges for loans re - deemed ahead of time, capital gains/losses generated from repurchases of the Bank’s own issued securities, and foreign exchange effects are recognised in the income statement under Net gains/losses on financial transactions. Fair value through other comprehensive income A financial asset is to be measured at fair value through other comprehensive income if both of the following conditions are met: • The objective of the business model is both to collect contractual cash flows and to sell the asset. • The contractual cash flows constitute solely payments of principal and interest. Holdings of interest-bearing securities in the Bank’s liquidity portfolio which satisfy the above conditions are recognised in this measurement category. These assets are subject to impair - ment testing. Interest income is recognised under Net interest income. Foreign exchange effects and credit losses are recognised under Net gains/losses on financial transactions. Unrealised changes in value are recognised in other comprehensive income and reclassified to the income statement in conjunction with a sale, under the item Net gains/losses on finan - cial transactions. Upon initial recognition, equity instruments that are not held for trading may be irrevocably classified as measured at fair value through other comprehensive income. This valuation principle is applied for certain shareholdings in companies which engage in activities to sup - port the Bank, such as participating interests in clearing organisations and infrastructure collaboration in the Bank’s home markets. Subsequent changes in value, both realised and unrealised and including exchange gains/ losses, are recognised in other comprehensive income. Realised changes in value are reclas - sified in equity to retained earnings, i.e. not to the income statement. Only dividend income from these holdings is recognised in the income statement. Fair value through profit or loss, mandatory If a financial asset does not meet the condi - tions for measurement at amortised cost or for measurement at fair value through other com - prehensive income, measurement at fair value through profit or loss is mandatory. Financial assets and liabilities held for trading are always classified as measured at fair value through profit or loss, as are financial assets managed and evaluated on a fair value basis. This measurement category mainly consists of listed shares, units in mutual funds, interest- bearing securities and derivatives. Interest, dividends, foreign exchange effects, and real - ised and unrealised changes in value are rec - ognised under Net gains/losses on financial transactions. For the recognition of derivatives through hedge accounting, see section 7. Fair value through profit or loss, fair value option There is an option, at initial recognition, to irrevocably designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency (“accounting mismatch”) that would otherwise arise from measuring the asset. There is a corresponding option to irrevoca - bly designate, at initial recognition, a financial liability as measured at fair value through profit or loss if either of the following conditions is met: • It eliminates or significantly reduces a mea - surement or recognition inconsistency (“accounting mismatch”) that would other - wise arise from measuring the liability. • A group of financial liabilities, or a group of both financial assets and financial liabilities, is managed and its performance is evalu - ated on a fair value basis, in accordance with a documented risk management or investment strategy. Information about these instruments is provided internally to the Bank’s management on that same basis. This valuation principle has been applied to avoid inconsistencies when measuring assets and liabilities which are counter-positions of each other and which are managed on a portfolio basis, such as liabilities resulting from unit-linked insurance contracts and cer - tain holdings in the liquidity portfolio which are hedged with economic hedges. Unreal - ised and realised changes in value are rec - ognised under Net gains/losses on financial transactions. Interest is recognised under Net interest income. Reclassifications of financial instruments As a general rule, financial assets are not reclassified after initial recognition. Reclassi - fication is permitted in the rare case that the Bank changes the business model it applies for the management of a portfolio of financial assets. The reclassification of financial liabili - ties is not permitted after initial recognition. Financial guarantees and loan commitments Issued financial guarantees entail an obligation to reimburse the holder of a debt instrument (loan or interest-bearing security) for losses incurred in the event that a specified borrower fails to make a payment when due in accor - dance with the contractual terms, for example, a credit guarantee. The fair value of an issued guarantee is the same as the premium received when it was issued. Upon initial recognition, the premium received for the guarantee is rec - ognised as a liability under Accrued expenses and deferred income on the balance sheet. The guarantee is subsequently measured at the higher of the amortised premium or the provision for the expected loss. Premiums for issued financial guarantees are amortised under Net fee and commission income over the validity period of the guarantee. In addition, the total guaranteed amount relating to guar - antees issued is reported off-balance as a contingent liability, see note G46 Contingent liabilities. Loan commitments are reported off-balance until the settlement date of the loan, see note G46 Contingent liabilities. Fees received for loan commitments are accrued under net fee and commission income over the maturity of the commitment unless it is highly probable that the commitment will be fulfilled, in which case the fee is included in the loan’s effective interest. Financial guarantees and irrevocable loan commitments are subject to impairment testing. Compound financial instruments A compound financial instrument consists of a derivative component known as an embedded derivative, and a non-derivative host contract. If the host contract in a compound financial instrument is a financial liability, an embedded derivative must be separated from the host contract and recognised individually as a derivative if all of the following terms are met: • The economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract. • A separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. G1 cont. 153Handelsbanken Annual Report 2025 3.1
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• The compound financial instrument is not already recognised at fair value through profit or loss. Consequently, derivatives embedded in financial liabilities measured at fair value through profit or loss are not recognised separately. Separate recognition is applied, for example, to the embedded derivative in issues of equity- linked bonds and other structured products. Embedded derivatives in financial assets are not recognised separately. Financial assets with embedded derivatives are regarded as a whole when assessing whether their contrac - tual cash flows constitute solely payments of principal and interest. The inherent value of the option to convert in issued convertible debt instruments is rec - ognised separately in equity. The value of the equity component is determined at the time of issue as the difference between the fair value of the convertible debt instrument in its entirety reduced by the fair value of the liability component. The carrying amount of the equity component is not adjusted during the life of the convertible debt instrument. The liability component is measured and recognised at fair value on the balance sheet at the time of issue. After initial recognition, the liability component is recognised at amortised cost based on the original effective interest rate. Repurchase transactions Repurchase transactions refer to agreements where the parties simultaneously agree on the sale of specific securities and the repurchase of these securities at a pre-determined price. Securities sold in a repurchase transaction remain on the balance sheet during the life of the transaction, as the Group is still exposed to the value change risk applying to the security. Depending on the counterparty, cash collateral received is recognised under Due to credit institutions or as Deposits and borrowing from the public. The security sold is reported off- balance as pledged assets, see note G45 Pledged assets, collateral received and trans - ferred financial assets. Correspondingly, when the Bank buys securities with a commitment to sell them at a pre-determined price, known as a reverse repurchase agreement, the security is reported off-balance. Depending on the counterparty, the cash collateral paid is recognised under Other loans to central banks, Loans to other credit institutions or Loans to the public. The purchased security is reported off-balance as collateral received, see note G45 Pledged assets, collateral received and transferred financial assets. Purchased securities that are sold on are reported off-balance as a commit- ment, see note G46 Contingent liabilities. Securities loans Securities lending agreements are transac - tions whereby the Bank lends securities to a counterparty and receives a fee. Lent securi - ties remain on the balance sheet during the life of the transaction, as the Group is still exposed to the value change risk applying to the secu - rity. Depending on the counterparty, cash col - lateral received is recognised under Due to credit institutions or as Deposits and borrowing from the public. The lent security is reported off-balance as pledged assets, see note G45 Pledged assets, collateral received and trans - ferred financial assets. Correspondingly, securities borrowed by the Bank are reported off-balance. Depending on the counterparty, the cash collateral paid is recognised under Other loans to central banks, Loans to other credit institutions or Loans to the public. The borrowed security is reported off-balance as collateral received, see note G45 Pledged assets, collateral re - ceived and transferred financial assets. If the borrowed security is sold, an amount corre - sponding to the fair value of the security sold is recognised as a short position liability. Bor - rowed securities that are lent to a third party are reported off-balance as a commitment, see note G46 Contingent liabilities. Derivative instruments All derivatives are measured at fair value on the balance sheet. Derivatives with positive fair values are recognised on the assets side under Derivative instruments. Derivatives with negative fair values are recognised on the liabilities side under Derivative instruments. Realised and unrealised gains and losses on derivatives are recognised in the income state - ment under Net gains/losses on financial transactions. For the recognition of derivatives through hedge accounting, see section 7. Offset of financial assets and liabilities Financial assets and liabilities are offset and reported at a net amount on the balance sheet if the Bank has a contractual right to offset, in its operating activities and in the event of bankruptcy, and if the intention is to settle the items on a net basis or to simultaneously liqui - date the asset and settle the liability. Further information about set-off of financial assets and liabilities is provided in note G26 Offset - ting of financial instruments. 5. Principles for fair value measure- ment of financial assets and liabilities (IFRS 13 Fair Value Measurement) Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between independent market participants. For financial instruments traded on an active market, the fair value is the same as the quoted market price. An active market is one where quoted prices are readily and regularly avail - able from a regulated market, execution venue, reliable news service or equivalent, and where the price information can be verified by means of regularly occurring transactions. The current market price corresponds to the price between the bid price and the offer price which is most representative of fair value under the circum - stances. For groups of financial instruments which are managed on the basis of the Bank’s net exposure to market risk, the current market price is presumed to be the same as the price which would be received or paid if the net position were divested. When there is no reliable information about market prices for financial instruments, fair value is established using valuation models. The valuation models used are based on input data which essentially can be verified using market observations such as market interest rates and share prices. If necessary, an adjust - ment is made for other variables which a mar - ket participant would be expected to take into consideration when setting a price. The assump- tions used in the valuation are based on market practice and are continuously reviewed by the risk control function, as well as being com- pared with the counterparty valuation. Interest-bearing securities Interest-bearing securities issued by govern - ments and Swedish mortgage bonds are val - ued using current market prices. Corporate bonds are valued using valuation techniques based on market yields for the corresponding maturity adjusted for credit and liquidity risk. The values are regularly reviewed in order to ensure that they reflect the current market price. The reviews are mainly performed by obtaining prices from several independent price sources and by reconciliation with re - cently performed transactions in the same or equivalent instruments. Shares Shares listed on an active market are valued at market price. When valuing unlisted shares and participations, the choice of model is determined by what is deemed appropriate for the individual instrument. Holdings of unlisted shares mainly consist of shares in companies which engage in activities to support the Bank. In all material respects, unlisted shares are classified at fair value through other compre - hensive income. In general, such holdings are valued at the Bank’s share of the company’s net asset value. For unlisted shares for which the company agreement regulates the price at which the shares can be divested, the holdings are valued at the predetermined divestment price. G1 cont. 154 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Derivatives Derivatives which are traded on an active market are valued at market price. Most of the Group’s derivative contracts, including interest rate swaps and various types of linear currency derivatives, are valued using valuation models based on market rates and other market prices. The valuation of non-linear derivative contracts that are not actively traded is also based on a reasonable assumption of market-based input data such as volatility. When performing model valuation for deriv - atives, in some cases there are differences between the transaction price and the value measured by a valuation model upon initial recognition. Such differences occur when the applied valuation model does not fully incorpo - rate all the components that affect the value of the derivative. Unrealised results due to posi - tive differences between the transaction price and the value measured by a valuation model (known as day 1 gains/losses) are comprised of the Bank’s profit margin and compensation to cover, for example, the cost of capital and administrative expenses. Unrealised positive day 1 gains/losses are not recognised in profit/ loss upon initial recognition, but are amortised over the life of the derivative. Assets and liabilities where the customer bears the value change risk Assets where the customer bears the value change risk mainly comprise mutual fund units in unit-linked insurance contracts. These mutual fund units are valued using the fund’s current market value (NAV). Each asset corre - sponds to a liability where the customer bears the value change risk. The valuation of these liabilities reflects the valuation of the assets. Since the policyholders/unit holders have prior rights to the assets, there is no motive to adjust the valuation for credit risk. Assets and liabilities where the customer bears the value change risk have essentially been classified at fair value through profit or loss. 6. Credit losses (IFRS 9 Financial Instruments) Expected credit losses The impairment rules presented in IFRS 9 apply to financial assets at amortised cost, financial assets at fair value through other comprehensive income, as well as financial guarantees and irrevocable loan commitments, and are based on a model for the recognition of expected credit losses. This model stipulates that the provision must reflect a probability- weighted amount determined through the evaluation of a number of potential outcomes, with consideration given to all reasonable and verifiable information available on the reporting date without unreasonable expense or exer - tion. The assessment takes into account historical, current and future-oriented factors. The assets to be tested for impairment are divided into the following three stages, depending on the degree of credit impairment: • Stage 1 comprises financial assets with no significant increase in credit risk since initial recognition. • Stage 2 comprises financial assets with a significant increase in credit risk since initial recognition, but for which there is no objec - tive evidence that the claim is credit-impaired at the time of reporting. • Stage 3 comprises financial assets for which objective circumstances have been identified indicating that the claim is credit- impaired. In Stage 1, provisions are to be recognised which correspond to the loss expected to occur within 12 months as a result of default. In Stage 2 and Stage 3, provisions are to be recognised corresponding to the loss expected to occur at some time during the whole of the remaining maturity of the asset as a result of default. For agreements in Stage 1 and Stage 2, there is a Group-wide, central process using model-based calculation. The process begins for all agreements with an assessment of whether there has been a significant increase in the credit risk since initial recognition (start date of the agreement). For a detailed descrip - tion of significant increases in credit risk, see the “Credit risks” section of note G2. The pro - visions in the different impairment stages are calculated on an individual basis. Manual cal - culation is used for agreements in Stage 3, with the exception of a small portfolio of homogeneous claims which have a model- calculated provision in Stage 3. In conjunction with each reporting date, an assessment is made at agreement level as to whether an agreement will be subject to a model-based calculation or a manual calculation. The calculations of expected credit losses are primarily affected by the risk parameters “probability of default” (PD), “exposure at default” (EAD) and “loss given default” (LGD). Expected credit losses are determined by cal - culating PD, EAD and LGD up to the expected final maturity date of the agreement. The three risk parameters are multiplied and adjusted by the survival probability or, alternatively, the probability that a credit exposure has not defaulted or been repaid in advance. The esti - mated expected credit losses are then dis - counted back to the reporting date using the original effective interest rate and are totalled. Total credit losses in Stage 1 is calculated using the probability of default during the com - ing 12-month period. For Stage 2 and Stage 3, credit losses are calculated using the probability of default during the asset’s remaining time to maturity. Model-based calculation The calculation of the expected credit losses takes into consideration at least three macro - economic scenarios (one neutral, one upturn and one downturn scenario) with relevant macroeconomic risk factors, such as unemploy- ment, key/central bank rates, GDP, inflation and property prices, by country. The various scenarios are used to adjust the risk parame - ters. Every macroeconomic scenario is assigned a probability, and the expected credit losses are obtained as a probability-weighted average of the expected credit losses for each scenario. For additional information on the models used to calculate expected credit losses for agreements in Stage 1 and Stage 2, and for an explanation of concepts such as PD, EAD and LGD, expected maturity, significant increase in credit risk and macroeconomic information, see the “Credit risks” section in note G2. For sensitivity analyses for expected credit losses, see note G11 Net credit losses. Manual calculation Assets in Stage 3 are tested for impairment on an individual basis using a manual calculation. This testing is carried out on a regular basis and in conjunction with every reporting date by the local branch with business responsibility (unit with customer and credit responsibility) and is decided by the local and central credit departments. Impairment testing is carried out when there are objective circumstances which indicate that the counterparty will not be able to fulfil its contractual obligations, according to the defi - nition of default. Such objective circumstances could be, for example, late payment, non- payment or an indication of unlikely payment. Impairment testing involves an estimation of the future cash flows and the value of the col - lateral (including guarantees). Consideration is normally given to at least two forward-looking scenarios for expected cash flows, based on both the customer’s repayment capacity and the value of the collateral. The outcome of these scenarios is probability-weighted and discounted with the loan’s original effective interest rate. The scenarios used can take into account both macroeconomic and agreement- specific factors, depending on what is deemed to affect the individual counterparty’s repay - ment capacity and the value of the collateral. The assessment takes into account the spe - cific characteristics of the individual counter - party. An impairment loss is recognised if the estimated recoverable amount is less than the carrying amount. Expert-based calculation Expert-based calculation is carried out for credit losses, in order to incorporate the esti - mated impact of factors not deemed to have been considered in the model (Stage 1 and Stage 2), or which have not been considered G1 cont. 155Handelsbanken Annual Report 2025 3.1
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in manual calculations (Stage 3). The model- based calculations are constructed with the ambition of making as accurate estimations as possible of the individual contributions to the overall provision requirement. However, it is very difficult to incorporate all of the partic - ular characteristics that define an individual agreement into a general model. For this rea - son, a manual analysis is carried out of the agreements which give the largest contri - butions to the overall provision requirement. The manual analysis aims to apply expert knowledge about the individual credits to an assess ment of whether the model-based or manual calculations need to be replaced with an expert-based calculation. An expert- based calculation may entail either a higher or lower provision requirement than the original calculation. Expert-based calculation can also be carried out at a more aggregate level to adjust the model-based calculations for a sub-portfolio or similar. These adjustments are distributed proportionally over the agreements involved. An expert-based calculation may entail either a higher or lower provision requirement than the original calculation. Recognition and presentation of credit losses • Financial assets measured at amortised cost are recognised on the balance sheet at their net amount, after the deduction of expected credit losses. • Off-balance sheet items (financial guaran - tees and irrevocable loan commitments) are recognised at their nominal amounts. Provi - sions for expected credit losses on these instruments are recognised as a provision on the balance sheet. • Financial assets at fair value through other comprehensive income are measured at fair value on the balance sheet. Provisions for expected credit losses on these instruments are recognised in the fair value reserve in equity and do not, therefore, reduce the car - rying amount of the instrument. • For financial assets measured at amortised cost and off-balance sheet items, the period’s credit losses (expected and actual) are rec - ognised in the income statement under the item Credit losses. The item Credit losses consists of the period’s provisions for expected credit losses, less reversals of previous provisions, as well as write-offs and recoveries during the period. • For financial assets measured at fair value through other comprehensive income, the credit losses for the period (expected and actual) are recognised in the income state - ment under the item Net gains/losses on financial transactions. • Write-offs consist of actual credit losses, less reversals of previous provisions for expected credit losses in Stage 3 and may refer to either the entirety or parts of a finan - cial asset. Write-offs are recorded when there is deemed to be no realistic possibility of repayment. Following a write-off, the claim on the borrower and any guarantor normally remains and is thereafter, as a rule, subject to enforcement activities. Enforce - ment activities are not pursued in certain situations, such as when a trustee in bank - ruptcy has submitted their final accounts of the distribution of assets in conjunction with the bankruptcy, when a scheme of arrange - ment has been accepted or when a claim has been conceded in its entirety. Claims for which a concession is granted in conjunc - tion with a restructuring of financial assets are always recognised as actual credit losses. • Payments to the Bank in relation to written- off financial assets are recognised in in - come as recoveries. Further information on credit losses is provided in note G11 Net credit losses. Default/Credit-impaired asset The Bank’s definition of default is identical to the definition applied in the Capital Require - ments Regulation (CRR), entailing either that the counterparty is over 90 days overdue with a payment or that an assessment has been made that the counterparty will be unable to fulfil its contractual payment obligations. Such an assessment implies that it is deemed to be more likely that the borrower will be unable to pay than that they will be able to pay. The assessment is founded on all available infor - mation about the borrower’s repayment capacity. Consideration is given to indicators of insolvency such as insufficient liquidity, late and cancelled payments, records of non- payment or other signs of impaired repayment capacity. Other signals may include the bor - rower entering into bankruptcy or the granting of a substantial forbearance measure entailing a decrease in the value of the Bank’s claim on the borrower. The probability of default is calculated before each reporting date and is incorporated in the assessment of whether there has been a significant increase in the credit risk since the initial recognition, as well as in the calculation of expected credit losses for financial assets in Stage 1 and Stage 2. A credit-impaired financial asset, which is an exposure in Stage 3, is defined as an exposure in default. This means that the assessment for accounting purposes is consistent with the assessment used in the Group’s credit risk management. Interest In Stage 1 and Stage 2, recognition of interest income attributable to items on the balance sheet is based on gross accounting, which means that the full amount of interest income is recognised under Net interest income. In Stage 3, interest income is recognised net, that is, taking into account impairment. Interest rate effects arising due to discounting effects, attributable to the decrease of the period until the expected payment, result in a reversal of previously provisioned amounts and are rec - ognised as interest income in accordance with the effective interest method. Valuation of repossessed property and equipment to protect claims Upon initial recognition, repossessed property and equipment is recognised at fair value on the balance sheet. Repossessed property and equipment (including repossessed lease assets) which is expected to be divested in the near future is valued at the lower of the carry - ing amount and fair value less costs to sell. Unlisted shareholdings taken over to protect claims are normally recognised at fair value through profit or loss. Modified financial assets A loan is seen as modified when the terms and provisions which determine the cash flows are amended relative to those in the original agreement as the result of forbearance mea - sures or commercial renegotiations. Forbear - ance measures refer to changes in terms and conditions in conjunction with restructurings or other financial relief measures. Such changes are implemented with the objective of securing repayment in full, or of maximising the repay - ment of the outstanding loan amount, from lenders experiencing, or facing, financial diffi - culties. Commercial renegotiations refer to changes to terms and conditions which are not related to a borrower’s financial difficulties, such as changes in the cash flow for a loan arising due to changes in the market condi - tions for repayment or interest. If the cash flows from a financial asset which is classified as measured at amortised cost have been modified, but the cash flows have not significantly changed, the modification does not normally cause the financial asset to be derecognised from the balance sheet. In such cases, the gross carrying amount is recalculated on the basis of the changed cash flows of the financial asset, and the adjustment amount is recognised in the income statement. As there may be various reasons for carry - ing out a modification, there is no unconditional connection between modifications and as - sessed credit risk. When a financial asset is subject to forbearance measures and the asset remains on the balance sheet, it is clas - sified in Stage 2 or Stage 3, based on the out - come of the assessment made when granting G1 cont. 156 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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the forbearance measure. The assessment in - volves a check of whether a provision is re - quired for credit loss, or other circumstances which result in classification in Stage 3. If a financial asset is modified in a way that results in significantly changed cash flows, the modified financial asset is derecognised from the balance sheet and replaced with a new agreement. In such cases, the modification date constitutes the initial recognition date for the new agreement and this date is used thereafter for the calculation of expected credit losses and for the assessment of whether there has been a significant increase in the credit risk since the initial recognition. 7 . Hedge accounting (IAS 39 Financial Instruments: Recognition and Measurement) Handels banken has elected to continue to apply the hedge accounting rules in IAS 39, in accordance with the transitional rules in IFRS 9. The Group applies different methods for hedge accounting, depending on the purpose of the hedge. Derivatives – mainly interest rate swaps and cross-currency interest rate swaps – are used as hedging instruments. When hedging foreign exchange risks related to net investments in foreign operations, liabilities in the functional currency of the respective foreign operation are used as a hedging instru - ment. As part of the Group’s hedging strate - gies, the value changes of a hedging instru - ment are sometimes divided into separate components and included in more than one hedging relationship. Therefore, one and the same hedging instrument can hedge different risks. Division of hedging instruments is only done if the hedged risks can clearly be identi - fied, the efficiency can be reliably measured, and the total value change of the hedging in - strument is included in any hedging relationship. Fair value hedges are used to protect the Group against undesirable impact on profit/ loss due to exposure to changes in market prices. Fair value hedges are applied for indi - vidual assets and liabilities and for portfolios of financial instruments. Hedged risks in hedging relationships at fair value comprise the interest rate risk on lending and funding at fixed inter - est rates. The hedging instruments in these hedging relationships consist of interest rate swaps. In the case of fair value hedges, the hedging instrument and hedged risk are both recognised at fair value. Changes in value are recognised directly in the income statement under Net gains/losses on financial transac - tions. When portfolio hedging is applied, the value of the hedged item is reported as a sep - arate line item in the balance sheet in conjunc - tion with Loans to the public. When fair value hedges are terminated early, the accrued value change on the hedged item is amortised under Net gains/losses on financial transactions during the remaining time to maturity. When a fair value hedge is terminated early, and the hedged item no longer exists, the value change generated is reversed directly under Net gains/ losses on financial transactions. Cash flow hedges are applied to manage exposures to variations in cash flows relating to changes in the floating interest rates on lending and funding. The expected maturity for this type of lending and funding is normally much longer than the interest rate adjustment period, which is very short. Cash flow hedging is also used to hedge foreign exchange risk in future cash flows deriving from lending and funding. Foreign exchange risks deriving from intra-group monetary items can also be sub - ject to this type of hedging, if they give rise to currency exposures which are not fully elimi - nated on consolidation. Derivatives which are hedging instruments in cash flow hedges are measured at fair value. If the derivative’s value change is effective – that is, it corre - sponds to future cash flows related to the hedged item – it is recognised as a component of Other comprehensive income and in the hedge reserve in equity. Ineffective compo - nents of the derivative’s value change are rec - ognised in the income statement under Net gains/losses on financial transactions. When a cash flow hedge is terminated early, the cumu - lative gain or loss on the hedging instrument previously recognised in other comprehensive income is amortised under Net gains/losses on financial transactions during the period in which the hedged cash flows are expected to occur. If cash flow hedges are terminated early and the hedged cash flows are no longer expected to occur, the accumulated value change in the hedge reserve is reclassified to Net gains/ losses on financial transactions. Hedging of net investments in foreign entities is applied to protect the Group from exchange differences due to operations abroad. Loans in foreign currencies are used as hedging instruments. The hedged item in these hedges comprises the exposure in the foreign currency attributable to the carrying amount of the initial portion of the net assets in a foreign operation. Loans in foreign currency that hedge net investments in foreign opera - tions are recognised in the Group at the exchange rate on the balance sheet date. The effective part of the exchange differences for such loans is recognised as a component of Other comprehensive income and in the trans - lation reserve in equity. The ineffective com - ponents of hedges of net investments in for - eign operations are recognised in the income statement under Net gains/losses on financial transactions. For more information, see note G25 Hedge accounting. 8. Insurance operations Classification Handels banken’s insurance contracts can be comprised of risk insurance components, savings insurance components, or both. Classification as an insurance contract or an investment contract is determined by the spe - cific insurance components (savings insurance components/risk insurance components) in the contract, as these have differing financial implications. The savings insurance compo - nents of traditional life insurance contracts, as well as risk insurance contracts and risk insur - ance components separated from combined traditional life insurance contracts and unit- linked insurance contracts, transfer significant insurance risk and are classified, measured and recognised as insurance contracts. The savings insurance component in unit-linked insurance contracts and portfolio bond insur - ance contracts is classified as an investment contract and recognised in accordance with IFRS 9. Insurance contracts’ level of aggregation Handels banken has identified portfolios of insurance contracts on the basis of the insur - ance risks to which they expose the Bank. For the savings insurance components of the tra - ditional life insurance contracts, all contracts have been deemed to be profitable. Further - more, a significant amount of time has elapsed since these contracts were signed and it is no longer possible to sign new contracts of this product type, which is why only one portfolio and grouping have been identified. For risk insurance contracts and risk insurance com - ponents, each respective insurance product constitutes a separate portfolio. Since all con - tracts have been deemed to be profitable, only one grouping per portfolio has been identified. These groupings have been separated further based on the contracts signed more than one year apart not being included in the same grouping. Measurement of insurance contracts Handels banken applies the general measure - ment model when measuring the liability for the remaining insurance coverage for the savings insurance components of the traditional life insurance contracts. The reason that the gen - eral measurement model is applied is that these contracts have tenors that are signifi - cantly longer than one year, and the high ben - efits in the contracts results in non-conditional disbursements of supplementary amounts, which are those that vary according to the returns on the underlying assets, that are not expected to comprise a material proportion of the total disbursements. Under the general measurement model, the liability for remaining G1 cont. 157Handelsbanken Annual Report 2025 3.1
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coverage is measured as the total of the expected present value of future cash flows, a risk adjustment and a contractual service margin. Handels banken has not identified onerous contracts. Liability for incurred claims are measured as the total of the expected present value of future cash flows and a risk adjustment. How - ever, claims with an expected settlement date within 12 months are not discounted. For a more detailed description of the expected present value of future cash flows, risk adjust - ment and contractual service margin, see note G36 Insurance liabilities. Handels banken applies the premium alloca - tion approach when measuring the liability for remaining coverage in risk insurance contracts and risk insurance components separated from combined traditional life insurance con - tracts and unit-linked insurance contracts, and for reinsurance contracts. The reason that the premium allocation approach is applied is that these contracts have a tenor of a maxi - mum of one year. The liability for remaining coverage is not discounted and instead is measured at received, but not yet earned pre - miums. Received premiums are recognised as income on a straight-line basis as the coverage is provided. Handels banken has not identified onerous contracts. Recognition of insurance contracts and reinsurance contracts held The liability for remaining coverage and liability for incurred claims are recognised under the balance-sheet item Insurance liabilities. Assets and liabilities relating to reinsurance contracts held are recognised in the items Other assets and Other liabilities, respectively. The net result from insurance contracts is presented as a total under the item Net insurance result in profit or loss. Net insurance result includes the items Insurance result and Return on assets held on behalf of policyholders. The line Insur - ance result includes income and expenses attributable to insurance contracts as well as operating expenses. The line Return on assets held on behalf of policyholders is recognised in accordance with IFRS 9, but is included in net insurance result since the assets are attributable to contracts that are recognised as insurance contracts. The effects of a changed discount rate when measuring the savings insurance component of traditional life insurance contracts, which are accumulated in the item Insurance contracts in equity, are recognised in Other comprehensive income. Upon the transition to IFRS 17, the amount in Other comprehensive income was zero. Recognition and measurement of investment contracts The savings insurance component in unit- linked insurance contracts and portfolio bond insurance contracts comprises investment contracts. These contracts and the associated investment assets are measured at fair value through profit or loss. These items are rec - ognised on the balance sheet under Assets and Liabilities where the customer bears the value change risk, respectively. Premium fees, asset fees and other administrative charges from investment contracts are recognised in the income statement under Fee and commis - sion income. Acquisition costs are also rec - ognised directly in the income statement. Changes in the values of assets and liabilities are recognised under Net gains/losses on financial transactions. 9. Assets held for sale and accounting of discontinued operations (IFRS 5) Non-current Assets Held for Sale and Discontinued Operations Non-current assets or a group of assets, pos - sibly with some directly associated liabilities, (disposal group) are classified as held for sale when the carrying amount will be mainly recov - ered through a sale and when a sale is highly probable. If an asset is classified as held for sale, special valuation principles are applied. These principles essentially mean that, with the exception of items such as financial assets and liabilities (see point 4), assets held for sale and disposal groups are measured at the lower of the carrying amount and fair value less costs to sell. Thus, tangible or intangible assets held for sale are not depreciated or amortised. Any impairment losses and subsequent revalua - tions are recognised directly in the income statement. However, a gain is not reported to the extent that it exceeds previously recog - nised accumulated impairment. Assets and lia - bilities held for sale are reported as a separate item on the Group’s balance sheet until the time of sale. Independent operations of a material nature which can be clearly differentiated from the Group’s other operations, and which have either been divested or are classified as held for sale using the policies described above, are recognised as discontinued operations. In rec - ognition as a discontinued operation, the oper - ation’s profit is reported on a separate line in the income statement, separately from other profit/loss items. Profit or loss from discontinued operations comprises the profit or loss after tax of discontinued operations, the profit or loss after tax that arises when valuing the assets held for sale/disposal groups that are included in discontinued operations at fair value less costs to sell, and realised gains/ losses from the disposal of discontinued oper - ations. For disclosures regarding assets and liabilities held for sale and discontinued opera - tions, see note G14 Assets and liabilities held for sale, and discontinued operations. 10. Equity Equity comprises the components described here. Share capital There are two classes of Handels banken’s share: class A and class B. Class A shares each carry one vote, while class B shares have one-tenth of a vote. Both classes of share entail the same right to dividends. Share premium reserve The share premium reserve comprises the options component of issued convertible debt instruments and the amount that in the issue of shares and conversion of convertible debt instruments exceeds the quota value of the shares issued. Other reserves Defined benefit pension plans The item Defined benefit pension plans is comprised of actuarial gains and losses on the pension obligation, as well as the return on plan assets that exceeds or falls below the return based on the discount rate. Cash flow hedges Unrealised changes in the value of derivative instruments which comprise hedging instru - ments in cash flow hedges are reported in the item Cash flow hedges (Hedge reserve) to the extent that the hedge is effective, that is to say, has corresponding future cash flows attributable to the hedged item. Fair value through other comprehensive income Unrealised changes in the value of financial assets classified as measured at fair value through other comprehensive income are recognised in the item Fair value through other comprehensive income (Fair value reserve). Furthermore, the item includes provisions for expected credit losses on debt instruments classified as measured at fair value through other comprehensive income. Realised changes in the value of debt instruments classified as measured at fair value through other compre - hensive income are reclassified from the item fair value through other comprehensive income to profit or loss. Realised changes in the value of equity instruments classified as measured at fair value through other comprehensive in - come are reclassified from the item fair value through other comprehensive income to retained earnings. Insurance contracts The effects of a changed discount rate when measuring the savings insurance component of traditional life insurance contracts are recog - nised in the item Insurance contracts. G1 cont. 158 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Translation of foreign operations The item Translation foreign currencies (Translation reserve) comprises unrealised foreign exchange effects arising due to trans - lation of foreign entities to the presentation currency of the consolidated accounts. In addition, effective parts of hedges of net in - vestments in foreign operations are recog - nised in the item, as well as translation differ - ences that have arisen from non-monetary items classified as measured at fair value through other comprehensive income. Retained earnings including profit for the year Retained earnings comprise the profits gener - ated from the current and previous financial years. Dividends and repurchases of own shares are reported as deductions from retained earnings. Realised gains/losses attributable to equity instruments classified as measured at fair value through other comprehensive income are re - classified from the item fair value through other comprehensive income to retained earnings. Non-controlling interest Non-controlling interest consists of the portion of the Group’s net assets that is not directly or indirectly owned by holders of the parent com - pany’s ordinary shares. Non-controlling interest is recorded as a separate component of equity. 11. Income Net interest income Interest income and interest expenses are rec - ognised as Net interest income in the income statement, with the exception of interest flows deriving from financial instruments mandatorily measured at fair value through profit or loss, which are recognised under Net gains/losses on financial transactions, where the overall activity in the trading book is recognised. Interest income and interest expenses for financial instruments at amortised cost are cal - culated and recognised by applying the effec - tive interest method or, where considered appropriate, by applying a method that results in an amount constituting a reasonable esti - mate of the results of a calculation based on the effective interest method. Effective inter - est includes fees which are considered an integral part of the effective interest rate of a financial instrument (generally fees compen - sating for risk). The effective interest rate cor - responds to the rate used to discount future contractual cash flows to the carrying amount of the financial asset or liability. Net interest income also includes interest from derivative instruments recognised through hedge accounting and interest from deriva - tives in economic hedges, as these hedge items for which the interest flows are rec - ognised under Net interest income. In addition to interest income and interest expenses, net interest income includes fees for deposit insurance. Net fee and commission income Fee and commission income is recognised at the point in time at which the performance obligation is satisfied, which corresponds to the transfer of control over the service to the customer. The total income is divided between each service and recognition in income depends on whether the services are fulfilled at a specific point in time, or over time. Fee and commission income in the form of, for example, management fees in asset management, is usually recognised at the rate these services are performed. Fee and commission income in the form of, for example, brokerage, card fees or payment commissions, is generally recognised when the service has been per - formed, i.e., at a specific point in time. When the income includes variable remuneration, such as a refund, bonus or performance-based element, the income is recognised only when it is highly probable that no repayment of the amount will take place. Lending fees not in - cluded in the effective interest are recognised as fee and commission income. Fee and com - mission expenses are transaction-based and directly related to transactions for which the income is recognised as Fee and commission income. Net gains/losses on financial transactions Net gains/losses on financial transactions includes all items with an impact on profit or loss that arise when measuring financial assets and liabilities at fair value through profit or loss, and when financial assets and liabilities are realised (with the exception of equity instru - ments classified as measured at fair value through other comprehensive income). • Gains/losses on financial instruments at amortised cost consist of realised gains and losses on financial assets and liabilities classified as measured at amortised cost, such as early repayment charges for loans redeemed ahead of time, and capital gains/ losses generated from repurchases of the Bank’s own issued securities. • Gains/losses on financial instruments at fair value through other comprehensive income consist of realised gains and losses on interest-bearing securities classified as measured at fair value through other com - prehensive income. Realised gains and losses are reclassified from other compre - hensive income to Net gains/losses on financial transactions in conjunction with a divestment/sale. The item also includes credit losses (expected and actual) on these assets. • Gains/losses on financial instruments mea - sured at fair value through profit or loss, fair value option, consist of unrealised and real - ised changes in the value of financial assets and liabilities that upon initial recognition were identified as measured at fair value through profit or loss. • Gains/losses on financial instruments mea - sured at fair value through profit or loss, mandatory, consist of unrealised and real - ised changes in value, dividend income and interest (with the exception of interest deriving from derivatives used to hedge items for which the interest flow is rec - ognised in net interest income) on financial assets and liabilities held for trading, or which are managed and evaluated on the basis of fair value. • Fair value hedges consist of unrealised and realised changes in the value of hedging instruments, and the hedged risk compo - nent in financial assets and liabilities which constitute hedged items in fair value hedges. Ineffective portion of cash flow hedges consists of changes in the value of hedging instruments which do not correspond to future cash flows attributable to the hedged item. • Gains and losses arising as a result of trans - lating monetary items in foreign currencies (meaning a different currency to the func - tional currency), using the prevailing closing rate on the balance sheet date. Gains/ losses on financial assets and liabilities in foreign currencies measured at amortised cost, translated at the prevailing closing rate on the balance sheet date, are thus rec - ognised under Net gains/losses on financial transactions. This also includes gains and losses arising as a result of using the pre - vailing closing rate on the balance sheet date to translate non-monetary items in for - eign currencies that are measured at fair value. • Return on assets held on behalf of policy - holders are deducted from Net gains/losses on financial transactions since they are included in Net insurance result. G1 cont. 159Handelsbanken Annual Report 2025 3.1
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Dividend Dividends on shares measured at fair value through other comprehensive income are rec - ognised in the income statement under the item Other dividend income. Dividends on shares measured at fair value through profit or loss are recognised in the income statement under the item Net gains/losses on financial transac - tions. Any dividends from associates and joint ventures are deducted from the carrying amount of the investments in associates and joint ventures. 12. Employee benefits (IAS 19 Employee Benefits) Staff costs Staff costs consist of salaries, pension costs and other forms of direct staff costs including social security costs, special payroll tax on pension costs and other forms of payroll over - heads. Any remuneration in connection with terminated employment is recognised as a liability when the agreement is reached and amortised over the remaining employment period. Accounting for pensions The Bank’s post-employment benefits consist of pension obligations that are classified as either defined contribution plans or defined benefit plans. For defined contribution plans, the Bank pays fixed premiums into a separate legal entity, and the employee bears the value change risk until the funds are paid out. For these plans, the Bank has no further obliga - tions after the premiums have been paid. Pen - sion costs for defined contribution plans are recognised as staff costs as they arise, by means of the employee rendering services to the Bank and the contributions for these ser - vices falling due for payment. Payment nor - mally takes place in connection with regular salary payments. Other pension obligations are classified as defined benefit plans. For defined benefit pension plans, the pension payable is based on the salary and period of employment, implying that the Bank bears all the material risks for fulfilling the pension obligation. The Projected Unit Credit Method is applied to cal - culate the pension obligations and associated costs, and the present value of the pension commitment is recognised as a pension obli - gation. For the majority of defined benefit plans, the Group has kept plan assets, for the purpose of covering the obligation, separately in pension foundations and a pension fund or similar. The pension obligations minus the fair value of the plan assets are reported as net pensions on the balance sheet. The pension costs for defined benefit plans are recognised in the income statement as staff costs, which comprises the cost of the pension rights earned during the year, interest expense on the pension obligation and interest income on the plan assets. The calculation of pension rights earned during the year is based on an estimated final salary and is subject to actua - rial assumptions, and refers to the proportion of the calculated final total pension payment for the year. The same interest rate is applied in calculating interest expense and interest income for the year as is used for the current corporate bond rate (the rate at the start of the year) for maturities corresponding to the period remaining until the pension liability is due to be disbursed. Actual gains and losses on the pension obligation arising when the actual outcome deviates from assumptions are recognised in other comprehensive income, as is the difference between actual return and estimated interest income on the plan assets. Calculation of costs and obligations result - ing from the Group’s defined benefit plans depends on several assessments and assump- tions which may have a considerable impact on the amounts reported. A more detailed description of these assumptions and assess - ments is provided in section 14 and in note G8 Staff costs. 13. Regulatory fees Interest-free loans to the Riksbank Based on an amendment to the Sveriges Riks - bank Act that came into effect on 1 January 2025, the Riksbank (Sweden’s central bank) can decide to receive interest-free deposits from Swedish banks and other credit institu - tions with operations in Sweden. The Riksbank may decide on interest-free deposits if the Riksbank’s equity falls below the target level decided for its equity. The amount of the inter - est-free deposits can be updated every year, after the Riksdag has adopted the Riksbank’s profit and loss statement and balance sheet. The first payment to the Riksbank was made on 31 October 2025. There is no contractual right or obligation in accordance with IAS 32 Financial Instruments: Presentation between the Riksbank and the respective institutions. Instead the require - ment for interest-free deposits is a regulatory requirement. Also, the requirement for inter - est-free deposits does not meet the criterion for cash and cash equivalents since the insti - tutions cannot readily dispose of the deposits during the period that the deposit requirement applies. Accordingly, the criteria for a financial asset under IAS 32 are not deemed to have been met. For this reason, no single IFRS applies to the reporting of the interest-free deposits the Bank is to deposit with the Riks - bank, which, from the Bank’s perspective, comprises an interest-free loan to the Riks - bank. Therefore, the Bank has developed an accounting policy that is in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The assess - ments made in developing this accounting pol - icy took into account the provisions of IFRS 9 Financial Instruments and IFRIC 21 Levies. The basis for the accounting policy is that the interest income that is not received as a result of the regulatory requirement for the Bank to make an interest-free deposit to the Riksbank constitutes a regulatory fee. The accounting policy means that: • The interest-free loan to the Riksbank is recognised as a zero-coupon instrument at amortised cost in the balance sheet item Other loans to central banks. – The loan is discounted at the point in time when the payment is made to the Riks - bank at the current market rate for a loan to the Swedish state. – The term is the period until the Riksbank’s next annual decision on interest-free deposits. – The initial discount is amortised over the term and recognised in the income state - ment under the item Interest income. • The interest-free loan results from the regu - latory requirement that the Bank has to make an interest-free deposit with the Riks - bank, and the amount corresponding to the initial discount is recognised at the point in time when the payment is made to the Riks - bank as an expense in the income state - ment under the item Regulatory fees. 14. Material assessments and estimates In certain cases, the application of the Group’s accounting policies means that management must make assessments (in addition to those applying to estimates) that have a material impact on amounts reported. The amounts reported are also affected, in a number of cases, by assumptions about the future and estimates. Assumptions and sources of uncer - tainty in estimates always imply a risk for adjustment of the carrying amount of assets and liabilities. The assessments, assumptions about the future and estimates applied always reflect management’s best and fairest assess - ments and are continually subject to examina - tion and validation. G1 cont. 160 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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The assessments, assumptions about the future and estimates that have had a material impact on the financial reports are described below. Consolidated accounts A structured entity is an entity that has been formed to achieve a limited and well-defined purpose, and designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. Handels banken’s inter- ests in structured entities are limited to hold - ings in funds. Funds for which the Bank is the asset man - ager and in which the Bank holds more than 50% of the units are consolidated. The Bank’s interests in the fund are recognised at fair value on the line Shares in the balance sheet. The remaining portion of the fund’s fair value is consolidated and recognised in the line items Assets where the customer bears the value change risk and Liabilities where the customer bears the value change risk in the balance sheet. Holdings ranging between 20% and 50% are consolidated in certain cases if the circumstances indicate that the Bank has con - trol of them, for example, because the fund has a broad management mandate and gener - ates a high proportion of variable returns. Interests under unit-linked insurance con - tracts are not assessed as entailing that the Group is exposed to variable returns. These interests are excluded from the assessment of whether control over the fund exists. Units in funds under unit-linked insurance contracts are recognised as Assets where the customer bears the value change risk, while the corre - sponding liability for unit-linked insurance con - tracts is recognised as Liabilities where the customer bears the value change risk. For further information about interests in unconsolidated structured entities, see note G51 Interests in unconsolidated structured entities. Financial instruments at fair value The categorisation of financial instruments at fair value in level 1, level 2 and level 3 requires assessments of the degree of transparency regarding market data used in the valuation. Financial instruments measured at current market prices in an active market are included in level 1. The financial instruments measured based on valuation models using inputs that essentially can be verified using market obser - vations are included in level 2. Financial instru - ments measured based on valuation models that to a material extent are affected by input data that cannot be verified using external vingly, assessments have been made to iden - tify the financial instruments that do not have an active market. Furthermore, assessments were made in selecting the valuation models to be applied and which inputs are to be used in the valuation models. The starting point is that inputs used in the val - uation models can essentially be verified using market observations, such as quoted share prices and interest rates. Whenever the inputs for a valuation model cannot be verified to a material extent using external market data, it is necessary for management to apply its own assumptions and estimates for calculating the fair value. However, the Bank’s holdings of financial assets classified in Level 3 represent only a minor share of total financial assets measured at fair value. The Bank has an estab - lished control environment for determining the fair values of financial instruments which includes a review of valuation models and mar - ket prices performed by the risk control func - tion. The carrying amounts of financial instru - ments at fair value are presented in note G44 Fair value measurement of financial instruments. For more information about material assess - ments for the fair value measurement of finan - cial instruments and the assumptions applied, see note G1 section 5 Principles for fair value measurement of financial assets and liabilities and note G44 Fair value measurement of financial instruments. Classification of insurance contracts and calculation of insurance liabilities Under IFRS 17, the basis of application of the standard is the legal insurance contract if this is deemed to transfer a significant insurance risk. The Bank has assessed that the classifica - tion as an insurance contract or an investment contract is to be determined by the specific insurance components (savings insurance components/risk insurance components) in the contract, as these have differing financial implications. A separation of the savings insur - ance and risk insurance components provides the most correct reporting since only the latter transfers significant insurance risk. The Bank’s assessment is that it would have a marginal effect on the Bank’s financial position or earn - ings if all combined unit-linked insurance con - tracts had been recognised in accordance with IFRS 17, due to the short contract tenors. The contracts refer to long-term savings but, ac - cording to the accounting judgement, have only short contract tenors (up to one year) since the price can be adjusted on an ongoing basis. Assumptions about the future are applied when calculating the expected present value of future cash flows for the insurance liability, which entails that the calculation is associated with uncertainty. The carrying amounts of insurance liabilities are presented in note G36 Insurance liabilities. For more information about material assess - ments and the assumptions and estimates applied to the calculation of insurance liabili - ties, and the decision-making process, see note G36 Insurance liabilities. Actuarial calculation of defined benefit pension plans Calculation of the Group’s expense and obli - gations for defined benefit pensions is based on a number of actuarial, demographic and financial assumptions that management has deemed have a significant impact on the car - rying amount. Note G8 Staff costs presents a list of the most significant assumptions used when calculating this year’s provision. The discount rate for defined benefit pensions is assessed every quarter and other assumptions are assessed annually or when a material change has occurred. The discount rate used by the Bank in the calculation is based on a number of first-class, liquid corporate bonds with varying maturities. For corporate bonds with maturities corre - sponding to the estimate average maturity of the pension obligation, this currently being 19.5 years, the discount rate is determined of the basis of market interest rates. In order to create a stable base of bonds, when the selec - tion of corporate bonds with maturities corre - sponding to that of the pension liability is inad - equate, corporate bonds with a maturity shorter than that of the pension liability are also used as the basis for determining the dis - count rate. For these, the discount rate is determined on the basis of a yield curve. The yield curve is constructed as a spread over the Swedish swap curve. The spread, which is based on corporate bonds, excluding own issues, is applied to the swap curve. In this way, a yield curve is modelled and a 19.5-year yield can be derived from this. The carrying amounts of pension obligations are presented in note G8 Staff costs. Note G8 Staff costs provides a sensitivity analysis of the Group’s pension obligations for all major actuarial assumptions. This shows how the obligation would have been affected by reasonably feasible changes in these assumptions. Credit losses Material assessments, assumptions about the future and estimates were made when calcu - lating expected credit losses. The valuation of expected credit losses is inherently associated with a certain degree of uncertainty. Areas involving a high degree of assessments and estimates are described below under the respective headings. Future-oriented information in macroeconomic scenarios Handels banken continuously monitors macro - economic developments, with a particular focus on the home markets. Through this mon - itoring, the Bank develops the macroeconomic scenarios which form the basis for the future- oriented information used in the model-based calculation of expected credit losses. The capacity of the Bank’s customers to fulfil their G1 cont. 161Handelsbanken Annual Report 2025 3.1
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contractual payments varies in line with macro- economic developments. Consequently, future macroeconomic developments have an impact on the Bank’s view of the provision needed to cover expected losses. The calculation of the provision requirement for expected credit losses is based on the neutral scenario proposed by the Bank’s macroeconomic research unit. As the losses may be more highly affected by a future deterioration of economic trends than by the equivalent improvement, the Bank uses at least two alternative scenarios to take into account the non-linear aspects of expected credit losses. These alternative sce - narios represent conceivable developments, one significantly worse and one significantly better than the neutral scenario. The most sig - nificant macroeconomic risk factors have been selected on the basis of the Bank’s loss history over the past decade, supplemented with experience-based assessments. These macroeconomic risk factors are then used in the Bank’s quantitative statistical models for forecasting migrations, defaults, loss rates and exposures. The macroeconomic risk factors include unemployment, key/central bank rates, GDP, inflation and property prices. The Bank’s business model, to offer credit to cus - tomers with a high repayment capacity, means that the connection between the macroeco - nomic developments and the provision requirement is not always especially pro - nounced. For a more detailed description of macroeconomic information, see the “Credit risks” section of note G2. The calculation of expected credit losses applies forward-looking information in the form of macroeconomic scenarios. A change in the macroeconomic scenarios, or in the probability weights applied, affects both the assessment of significant increases in credit risk and the estimated expected credit losses. The carrying amounts of provisions for expected credit losses are presented in note G11 Net credit losses. For a description and the outcome of sensitivity analyses, see note G11 Net credit losses. Significant increase in credit risk The Bank makes an assessment at agreement level at the end of each reporting period as to whether there has been a significant increase in credit risk since initial recognition. For a more detailed description of significant increases in credit risk, see the “Credit risks” section of note G2. Model-based calculation The quantitative models which form the basis for the calculation of expected credit losses for agreements in Stage 1 and Stage 2 make use of several assumptions and assessments. One key assumption is that the quantifiable relationships between macroeconomic risk factors and risk parameters in historical data are representative of future events. The quan - titative models applied are based on a history of approximately ten years, although this history varies by product and region due to inconsistency in the availability of historical outcomes. The quantitative models have been constructed with the help of econometric models, applying the assumption that the observations are independently conditioned by the risk factors. This means that the risk parameters can be predicted without distor - tion. Furthermore, a selection of the most sig - nificant macroeconomic risk factors is made on the basis of the macroeconomic risk fac - tors’ explanatory power in relation to individual risk parameters. The selection of the macro - economic risk factors and specification of the model are made to achieve a balance between simplicity, demonstrative ability and stability. Currently, no climate-related factors have been included in the models, but the matter is sub - ject to continuous assessment. Climate-re - lated risks, and certain other environmental risks, are assessed in the credit process and are included in the internal rating at counter - party level, which comprises a risk factor that impacts the calculation of forward-looking probabilities for the risk parameters PD, LGD and EAD. The Bank is closely monitoring the geopolitical situation. Given the structure of the Bank’s portfolio and its credit risk management processes, the assessment is that geopolitical risks, for example in the form of increased trade barriers, are, when necessary, taken into consideration in the standard credit assess - ment process at the customer level and in the macroeconomic scenarios applied. For a more detailed description of models, the effects of the geopolitical situation and model valida - tions, see the Credit risks section of note G2. Manual and expert-based calculation Assets in Stage 3 are tested for impairment at agreement level using a manual calculation. For impairment testing, material assessments are made regarding such factors as future cash flows, the scenarios to be applied and the probability of the various scenarios occurring, and to assess the value of the collateral. For a more detailed description of manual calcula - tions, see point 6 under the heading “Manual calculation” and the “Credit risks” section of note G2. Expert-based calculation is carried out for model outcomes on agreements in Stage 1 and Stage 2, in order to incorporate the estimated impact of factors not deemed to have been considered in the model, as well as for manu - ally assessed agreements in Stage 3. Expert- based calculations are performed based on expert knowledge of individual loans and/or sub-portfolios, which involves making material assessments. For a more detailed description of expert-based calculations, see point 6 under the heading “Expert-based calculation”. Other assessments Sustainability risks and geopolitical risks and uncertainties When preparing the annual report, material assess ments were made regarding the extent to which sustainability risks, mainly climate- related and certain other environmental risks, as well as geopolitical risks and uncertainties, have impacted the financial statements and the estimates and assumptions applied. The assessment is that it is essentially expected credit losses that could potentially be im - pacted by climate and other environmental risks as well as geopolitical risks and uncer - tainties (see Credit losses above). The Bank continuously performs assessments of whether sustainability risks could potentially impact other areas of the financial statements, which mainly consist of fair value measure - ment of financial instruments and provisions and contingent liabilities. The Bank also con - tinuously performs assessments of whether geopolitical risks and uncertainties could poten tially impact other areas of the financial statements, which mainly consist of fair value measurement of financial instruments. These assessments did not identify any requirement to consider sustainability risks or geopolitical risks and uncertainties for areas other than expected credit losses. The Bank’s overall assess ment is that sustainability risks and geopolitical risks and uncertainties have not had a material impact on the financial state - ments for 2025. G1 cont. 162 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G2 Risk and capital management Handels banken’s low risk tolerance is a central element of the Bank’s business concept. The low risk tolerance, together with a decentral - ised way of working, stable finances, and account a bility, make up the foundation of Handels banken’s long-term customer relation - ships. The information in this note includes the dis - posal group in Finland, which has been reclas - sified to the respective items Assets held for sale and Liabilities held for sale in the balance sheet, and which constitutes discontinued operations, see note G14. Resilient risk management The aim of Handels banken’s capital and liquid - ity planning is to ensure that the Bank remains a going concern in both normal conditions and under stress. The result of this is a strong capital and liquidity situation and continuous access to the financial markets via the Bank’s short-term and long-term funding programmes. The Bank has a large and high-quality liquid - ity reserve, which provides a good degree of resistance to possible disruptions in the finan - cial markets. The Bank’s liquidity portfolio, which is part of the liquidity reserve, has a low risk profile and primarily consists of govern - ment bonds and covered bonds. In addition, there are balances with central banks and a comprehensive unutilised issue amount for covered bonds at Stadshypotek. Liquidity reserves are kept in all currencies that are important to the Bank. Operations can thus be maintained for a considerable period of time even in an extreme situation when funding markets are closed. The total liquidity reserve including the unutilised issue amount covers the Bank’s liquidity requirements for more than three years in a stressed scenario. The capital situation is strong. Good earn - ings and low credit losses during the year have contributed to this. Regular stress tests are conducted to ensure that the Bank continuously maintains a sound liquidity and capital situation. These tests in - clude analysing the macroeconomic and geo - political situation, current market conditions and the potential effects of climate change. The prevailing geopolitical security situation has heightened the risk of different types of attacks on critical infrastructure in society. The Bank’s security department is monitoring devel - opments and assesses the risk of various scenarios on an ongoing basis. Risk tolerance Handels banken has a low risk tolerance based on an overall strategy of avoiding or minimising risk and thereby remaining a stable business partner for its customers regardless of the economic climate or market situation. The low risk tolerance is the foundation of the risk management framework applied by the Bank. This framework comprises the strategies, pro - cesses, limits, controls and reporting proce - dures that are stipulated in steering documents at various levels in the Group. The Bank’s business model is centred on taking and managing credit risks in the branch operations with the aim of establishing long- term relationships with customers that have a good repayment capacity and strong financial position. The quality requirement must never be neglected in favour of higher credit volumes, higher prices or market share. For the past few decades, Handels banken’s credit loss ratio has been significantly lower than the average of other Nordic banks. The Bank’s starting point is that no credit shall lead to a loss. This approach governs how the branches grant and follow up credits. In order to keep the Bank’s exposure to market and liquidity risks within the low risk tolerance, such risks are only to occur as a natural part of customer business, in connec - tion with the Bank’s funding and liquidity management, and in its role as market maker. These risks are limited by matching interest rate adjustment periods and cash flows in dif - ferent currencies, hedging open positions and maintaining a liquidity reserve of high quality. In line with the low risk tolerance, the Bank endeavours to prevent operational risk and com pliance risk as far as possible. Operational losses must be low. The Bank has a low tolerance for disruptions, attacks and interrup - tions on its operations, and must endeavour to prevent these from occurring as far as possible. The risk tolerance for sustainability risks is also low and these risks are managed as an integral part of the Bank’s traditional risk areas. Risk strategy The Bank’s operations entail a variety of risks that are systematically identified, measured, managed and reported in all parts of the Group. Handels banken’s restrictive approach to risk means that the Bank deliberately avoids high- risk transactions, even if the expected financial reward may be high at the time. The risk strategy is founded on a strong risk culture, embedded in the Bank’s steering doc - uments, that is sustainable in the long term and applies to all areas of the Group. The risk cul - ture is an integral part of the Bank’s work and is deeply rooted among all employees. The Bank is characterised by a clear division of responsibility where each part of the business operations bears full responsibility for its busi - ness and for risk management. This results in high levels of risk awareness and prudence in the business operations. The decentralised business model is combined with both a cen - tralised credit process and strong internal con - trols. The low risk tolerance is also reflected in the Bank’s view on remuneration. The main principle is that remuneration must be fixed since this contributes to the long-term per - spective which is a central element of Handels - banken’s business model. Performance-based variable remuneration is not offered to employ - ees who, in their professional roles, have a material impact on the Bank’s risk profile. Lending has a strong local anchoring, where the close customer relationship and local -0.2 0.0 0.2 0.4 0.6 0.8 1.0 25242322212019181716151413121110090807 Handels banken Other Nordic banks Credit losses as % of loans 2007–2025 % 164 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Risks at Handels banken Risk Description Credit risk The risk of the Bank facing economic loss because the Bank’s counterparties cannot fulfil their contractual obligations. Credit risk also includes counterparty risk in connection with transactions in currency, fixed-income, commodity and equity markets, meaning the risk that the counterparty is unable to meet its commitments. Market risk The risk arises from price and volatility changes in the financial markets and are divided into interest rate risk, equity price risk, foreign exchange risk and commodity price risk. Liquidity risk The risk that the Bank will not be able to meet its payment obligations when they fall due without being affected by unacceptable costs or losses. Operational risk The risk of loss due to inadequate or failed internal processes, human error, erroneous systems or external events. The definition includes legal risk, model risk, and information and communication technology (ICT) risk. Compliance risk The risk associated with the Bank’s failure to comply with external and internal rules and regulations, accepted market practice and relevant standards that are applicable to the Bank’s licensed operations, and the consequences that this could have for the Bank in the form of sanctions, material financial loss or loss of reputation. Remuneration risk The risk of loss or other damage arising due to the remuneration system. Insurance risk The risk in the outcome of an insurance that depends on the insured party’s longevity or health. Sustainability risk The risk of financial loss or a tarnished reputation due to factors related to the environment and climate, social responsibility as well as governance issues. Sustainability risks are an integral part of the Bank’s traditional risk areas above and may arise in own operations and through the Bank’s business, such as granting credit and investments. knowledge promote low credit risks. In addi - tion, the Group must be well capitalised in rela - tion to its risks and hold liquid assets so that it can meet its payment obligations when they fall due, including in situations of financial stress when funding is not possible in the financial markets. Handels banken thus aims for a business model which is not affected by fluctuations in the business cycle. This restrictive approach to risk means that the Bank is a stable and long-term business partner for its customers, regardless of the economic climate and market situation. It contributes to good risk management and to sustaining a high service level even when operations and the markets where the Bank operates are subject to strain. The Bank’s approach to risk applies in all countries where the Bank operates. For a more detailed descrip- tion of how the Bank manages various risk areas, capital and liquidity, refer to the relevant sections of this note. Risk organisation Handels banken works according to three lines of defence for management, follow-up and internal control of the Bank’s risks. The business operations and the units that support these operations constitute the first line of defence, with responsibility for identifying, managing and restricting the risks facing the business in accordance with external and internal rules. The control functions Handels - banken Risk Control and Handels banken Com- pliance constitute the second line of defence, and monitor and control the Group’s risks, the work of the business operations, and com - pliance with applicable rules and regulations. The third line of defence is Handels banken Internal Audit, which examines all of the Bank’s operations, including risk management, the work of the control functions and corporate governance. For additional information about the Bank’s three lines of defence for risk man - agement, refer to Handels banken’s Corporate Governance Report on pages 42–55. Handels banken’s Board has overall respon - sibility for the Bank’s risk management and establishes internal rules for this. The Board establishes policies and the CEO establishes guidelines describing how various risks should be managed and reported. The Board has established a Credit committee to decide on certain credit cases. The Board has also established a Risk com - mittee, an Audit committee and a Remunera - tion committee, whose duties include prepar - ing matters to be decided by the Board. The Risk committee also makes decisions such as on all the significant parts of the Bank’s risk rating and estimation processes linked to the IRB approach. In addition, the CEO has estab - lished a Risk and Compliance committee for follow-up of risk management and for in-depth discussions regarding the Bank’s overall risk situation prior to such matters being addressed by the Board’s Risk committee and the Board. For a more detailed description of the work of the committees and sub-committees, see Handels banken’s Corporate Governance Report on pages 42–55. The Bank also has additional committees, such as the CFO’s Asset and Liability commit - tee (ALCO) and associated liquidity, capital and valuation sub-committees. The ALCO advises the CEO and its primary task is to weigh all assessed risks and other assess - ment factors together to prepare an adequate basis in order to provide advice to the CEO and the Board regarding the Group’s capital and liquidity situation. Reporting and monitoring of the risk and capital situation In 2025, the Head of Handels banken Risk Control reported the Group’s risks, except for compliance risks (see below), to the CEO, the Board’s Risk committee and the Board at least quarterly. The reports have also been pre - sented to the CEO’s Risk and Compliance committee. The Group risk reports describe and analyse the Bank’s risk profile and include the Head of Handels banken Risk Control’s assessment of the Group’s material risks and an assessment of whether there are significant deficiencies in the operation to report and take action on. These reports also include forward- looking risk assessments and must make pos - sible an assessment of whether the Bank is fulfilling its risk strategy and maintaining the risk tolerance decided by the Board. In addi - tion, Handels banken Risk Control and Handels - banken Credit report on both an ongoing and annual basis on the Bank’s credit risk situation (including counterparty risks) and the IRB approach to the Bank’s Executive Team, the CEO’s Risk and Compliance committee, the Risk committee and the Board, as well as the boards of relevant subsidiaries. These reports include volume development and credits with heightened risk. The reporting includes evalu - ations of the internal risk rating processes, G2 cont. 165Handelsbanken Annual Report 2025 3.1
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evaluations of the Bank’s IRB models and observations from the validation of these models. Limit utilisation for market and liquidity risks is compiled and controlled on a daily basis by Handels banken Risk Control. Exceeded limits are immediately reported to the person who makes the decision about the limits. The liquid - ity risk is summarised and reported daily to the CFO and the CEO and to the Board at every regular Board meeting. The Liquidity commit - tee, chaired by the Head of Handels banken Treasury, meets before each regular Board meeting and on other occasions when neces - sary. In Liquidity committee meetings, reports are presented on the current liquidity situation, on the results of stress tests, scenario analy - ses, and other information which is relevant for the assessment of the Group’s liquidity situation. The Bank’s capital situation is reported weekly to the CFO and the CEO. In the event of a threshold being exceeded, or if the Head of Handels banken Treasury or the CFO deems it appropriate for some other reason, proposals for appropriate measures must be presented to the CEO. The capital situation in a medium- and long-term perspective is summarised quarterly by the Capital committee and the ALCO. Handels banken Treasury performs a complete update of the capital forecast on a quarterly basis, or when there are significant changes at the Bank. The capital situation, utilisation of market risk limits and the liquidity situation are reported to the Board at least quarterly. Operational risks and incidents which have occurred are reported continuously by branches and units throughout the Group to Handels banken Risk Control, where they are monitored. In turn, Handels banken Risk Control reports operational risk and incidents which have occurred to the CEO, the CEO’s Risk and Compliance committee, the Board’s Risk committee and the Board. Risks in the remuneration system are evaluated on an annual basis and reported to the Board’s Remuneration committee and Risk committee. Operational risk reporting includes information regarding significant events, major losses and an aggregated risk assessment at Group level. In addition, Handels banken Risk Control moni - tors that the actions which have been decided are implemented. G2 cont. The Board’s risk declaration and risk statement The Board has decided on the following risk declaration and risk statement. Risk declaration: Handels banken has satisfactory arrange - ments for risk management which are fit for purpose in relation to the Bank’s business goal, the risk tolerance and risk strategy which the Board has decided for the opera - tions and the Bank’s overall risk profile. Risk statement: Handels banken’s business goal is to have higher profitability than the average of peer competitors in the home markets. This goal is mainly to be achieved by having more sat - isfied customers and lower costs than its competitors. Handels banken is a bank with a strong local presence and a decentralised way of working. The Bank’s low risk tolerance means that its overall risk profile is to be low. The Group must also be well capitalised at all times in relation to the risks, fulfil all requirements imposed by the authorities, and hold liquid assets so that it can meet its payment obli - gations, including in situations of financial stress in the short and long term. The Bank must also have appropriate preventive pro - tection and incident management capabili - ties in the event of an attack, disruption or interruption to the Bank’s critical operations. The risk tolerance and the risk strategy sup - port Handels banken’s aim to have a business model that is independent of changes in the business cycle. The Bank has, and will maintain, a low level of credit risk. The Bank’s tolerance of credit risk is reflected in the expectation that the Bank will be able to have good capacity for granting credit without government support, even in a serious recession. This is achieved by such measures as its strong local pres - ence and close customer relations. The quality of credits must never be neglected in favour of achieving higher volume or a higher margin. The Bank is selective when choosing customers with the requirement that borrow - ers have a good repayment capacity. As a consequence of this, the credit portfolio has a clear concentration on risk classes where the probability of loss is low. This consistent approach is reflected in the Bank’s low credit losses over time. In 2025, credit losses were −0.01% (–0.02) of loans to the public. To ensure that the Bank is well capitalised in relation to the risks and has a good liquid - ity situation, the Board stipulates the Bank’s risk tolerance for capitalisation and liquidity. When the risk tolerance for capitalisation is decided, the capital measure is set partly in relation to the statutory requirements and partly in relation to Handels banken’s assessed capital requirement based on the Bank’s model for economic capital (EC), which encompasses all of the Group’s risks in one single metric. The risk tolerance for the Bank’s liquidity risk is decided on the one hand through requirements that the Bank under stressed circumstances must have a sufficiently large liquidity reserve in the form of liquid assets and assets which can be pledged, including liquidity-generating mea - sures to be able to continue its operations during determined time periods, and on the other hand through requirements regarding the accumulated net amount of incoming and outgoing cash flows in different time intervals. The common equity tier 1 ratio must, under normal circumstances, exceed the total common equity tier 1 capital requirement communicated by the Swedish Financial Supervisory Authority by at least 1 percent - age point. The leverage ratio must exceed the total capital requirement communicated by the Swedish Financial Supervisory Authority by at least 0.6 percentage points. The ratio between AFR (Available Financial Resources) and EC must exceed 120%. The Bank’s assessment of the Swedish Financial Supervisory Authority’s common equity tier 1 capital requirement at year-end 2025 was 14.7% (14.9), including the Swed - ish Financial Supervisory Authority’s guid - ance of 0.5% within the framework of Pillar 2. Similarly, the Bank’s assessment of the leverage ratio requirement was 3.15% (3.5), including the Swedish Financial Supervisory Authority’s guidance of 0.15% within the framework of Pillar 2. At the end of 2025, the Bank’s common equity tier 1 ratio was 17.6% (18.8) and the AFR/EC ratio was 357% (383). The Bank must have accumulated positive net cash flows over a period of at least one year, tak - ing into account the liquidity reserve, includ - ing liquidity-generating measures, and during stressed conditions that entail, for example, that parts of the non-fixed-term deposits from households and companies disappear during the first month. At the end of 2025, the outcome of this stress test showed that Handels banken’s liquidity requirement was covered for a period of more than three years. The Bank’s risk profile is in accordance with the risk tolerance and risk strategy established by the Board. 166 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G2 cont. In 2025, the Head of Handels banken Compli- ance reported compliance risks at least quar - terly to the CEO, the Board’s Risk committee and the Board. These reports included com - pliance risks linked to financial crime, as well as data protection risks. The reports have also been presented in the CEO’s Risk and Com - pliance committee. In addition, Handels - banken Compliance monitors that the actions which have been decided are implemented. The CFO reports on the progress of sus - tainability activities to the CEO and Board’s Audit committee every quarter to ensure that these activities are in line with the Bank’s overall business goals and risk management. Credit risk Credit risk is defined as the risk of the Bank facing economic loss because the Bank’s counterparties cannot fulfil their contractual obligations. Credit risk strategy Handels banken’s credit process is centralised and shared by the whole Group, although indi - vidual business decisions are made on a decentralised basis. The credit process is based on a conviction that a decentralised organisation with a local presence ensures high quality in credit decisions. The Bank is a relationship bank whose branches maintain regular contact with the customer. This gives the branch an in-depth knowledge of each individual customer and a continually updated picture of the customer’s financial situation. Rather than being a mass market bank, Handels banken is selective in its choice of customers, which means it seeks customers with a high creditworthiness. The quality requirement is never neglected in favour of higher credit volumes or to achieve higher returns. The Bank also avoids participating in financing that involves complex customer constellations, complex and opaque transac - tions, or high sustainability risks. When Handels banken assesses the credit risk of a specific customer, the assessment must start with the borrower’s repayment capacity. The assessment includes an analysis of the customer’s financial position, as well as the risks to which the customer is exposed and which could affect the stability of the custom - er’s financial position over time. Part of the risk analysis is the Bank’s assessment of how the customer is affected by sustainability risks, including climate-related risk – both physical risks and transition risks. One of the first steps in analysing the repayment capacity is deter - mining which sector the customer belongs to. It is important to understand the challenges and the risks that are specific to the sector before analysing the individual customer. A weak repayment capacity can never be accept- ed on the grounds that good collateral has been offered to the Bank. Collateral may, however, substantially reduce the Bank’s loss if the bor - rower cannot fulfil their obligations. Credits must therefore normally be adequately secured. The branch’s local presence and close rela - tionships with its customers enable the branch to quickly identify any problems and take action. In many cases, this means that the Bank can take action more rapidly than would have been possible with a more centralised management of problem loans. The branch also has full financial responsibility for granting credits. Therefore, it addresses problems that arise when a customer has repayment difficul - ties and also bears any credit losses. If neces - sary, the local branch obtains support from the local credit department and central depart - ments. The Bank’s working methods make sure that all employees whose work involves transactions linked to credit risk acquire a solid and well-founded approach to this type of risk. This approach forms an important part of the Bank’s culture. The work method and approach described are important reasons for the Bank reporting very low credit losses over a long period. Credit organisation In Handels banken’s decentralised organisa - tion, each branch responsible for customers has total credit responsibility. Customer and credit responsibility lies with the branch man - ager or with the employees at the local branch to whom the manager delegates this task. In Handels banken’s decentralised organisa - tion, the documentation that forms the basis for credit decisions is always prepared by the branch responsible for the credit, regardless of whether the final decision is to be made at the branch, at county or national level, in the Board’s Credit committee or by the Board. Credit decision documentation includes gen - eral and financial information regarding the borrower, and an assessment of their repay - ment capacity, loans and credit terms, as well as a valuation of collateral. For borrowers whose total loans exceed SEK 5 million, the credit decision is made in the form of a credit limit. Loans to private individu - als against collateral in the residential property are subject to a limit requirement if the individ - ual’s other loans exceed SEK 5 million. For loans to housing co-operative associations against collateral in the residential property, a limit is required for amounts exceeding SEK 12 million. Credit limits granted are usually valid for a period of one year. However, certain circum - stances allow for credit limits for housing co-operative associations to apply for up to a maximum of three years. When extending a credit limit, the decision procedure required is the same as for a new credit limit. Branch managers and most branch staff have personal decision limits allowing them to decide on credits to the customers they manage. For decisions on larger credit limits, there are decision-making bodies at county and national level, as well as at the central level. Each additional level of decision adds credit expertise. Each decision level has the right to reject credit limits within their own decision level and also credit limits which would other - wise have been decided at a higher level. All persons throughout the decision-making pro - cess who are responsible for granting credits, regardless of level, must be in agreement in order to positively decide on a credit limit. If there is the slightest doubt among any of these persons, the credit application is re - jected. The largest credits have been reviewed by Handels banken Credit and decided by the Board or the Credit committee established by the Board. However, no credit application may be processed in the Bank without the recom - mendation of the branch manager who is respon sible for the credit. The decision procedure for credits and credit limits is illustrated in the figure Credit process and decision levels at Handels banken. The figure also shows the percentage of credit limit decisions and amounts at the various decision levels. In Handels banken’s decentralised organisa - tion, where a large proportion of the credit and credit limit decisions are made by individual branches, a well-functioning review process is crucial for ensuring high-quality decision- making. The branch manager examines the quality of the staff’s decisions and the local credit departments examine the quality of decisions made by branch managers. The purpose of the quality review is to ensure that the Bank’s credit policy and inter - nal instructions are complied with, that credit quality is maintained, and that credit and credit limit decisions show that there is good credit judgement and a sound business approach. A corresponding quality review is also per - formed for credit limit decisions made at higher levels in the Bank. Credit limits granted by County Managers in tandem with the head of the local credit department or national Credit committees and national boards are examined by Handels banken Credit, which also prepares and examines credit limits decided by the Board or the Credit committee established by the Board. Handels banken Credit also ensures that credit assessments are consis - tent throughout the Group and that loans are granted in accordance with the credit policy decided by the Board. 167Handelsbanken Annual Report 2025 3.1
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Ecster The subsidiary Ecster AB has offered payment solutions via selected sales companies and consumer financing in Sweden and Finland. The company has been discontinued since February 2023. No new credits or loans have been granted since the spring of 2024 and the loan stock has since been a pure run-off port - folio. The company’s Finnish credit portfolios were divested during the year and the Finnish part of the operations was discontinued. Credit portfolio The Bank’s credit portfolio is presented in this section based on the categorisation of balance sheet items. The section Capital requirements for credit risks presents the credit portfolio based on CRR. Based on the consolidated balance sheet, credits are categorised as loans to the public or loans to credit institutions, while off-balance sheet items are broken down by product type. “Exposure” refers to the sum of on- and off- balance sheet items. Loans to the public is the dominant item. See table Credit risk exposures, geographical breakdown. Handels banken strives to maintain its histor - ically low level of credit losses compared to other banks, thus contributing to the Bank’s profitability goal and retaining its sound finan - cial position. Handels banken regularly evalu - ates the quality of the credit portfolio in order to identify and limit impairment requirements. In granting credits, the Bank never strives toward goals such as a predetermined volume or market share in particular sectors, and is instead selective when choosing its custom - ers, adopting the mindset that credit custom - ers must be of high quality. The demands on quality must never be neglected in favour of achieving a high credit volume. This is clearly stated in the Bank’s credit policy, endorsed each year by the Board. The Bank is closely monitoring the geopoliti - cal situation and its potential effects on the credit quality of the credit portfolio. Meticulous analyses are performed, where relevant, for the counterparties that are deemed to be sig - nificantly impacted by the geopolitical situa - tion and these are included in the internal rating at the counterparty level. Following the turbu - lence in recent years regarding the macro factors that have a major impact on the mod - el-based provisions, primarily inflation and interest rates, these factors were relatively stable in 2025, which meant that they have not caused any major change in the Stage 1 and Stage 2 model-based provisions. Based on climate scenarios, the Bank has analysed physical climate risks, focusing on flood risks, in the credit portfolio’s real estate exposures in the Bank’s four home markets. These analyses indicated limited exposure to these risks. There is generally a higher risk of flooding in the UK than in the other home mar - kets. For more information see, ESRS 2 IRO-1 E1. Scenario analyses were also carried out to investigate how the introduction of energy efficiency requirements for buildings could impact property companies in the Bank’s credit portfolio in Sweden and Norway as well as Swedish households. They analyse the impact on the value of the collateral and show a low risk of credit losses related to these tran - sition risks. For more information see, ESRS 2 IRO-1 E1. Branch level National/county level Central level Credit process and decision levels at Handels banken Breakdown of limit decisions² Proportion of number of limits 65% 33% 2% Proportion of limit amount 10% 30% 60% 1) Decides only if the case is assessed to be of special or general interest and decides on credits to Board members and certain executive officers. 2) Excluding sovereign and bank limits decided at central level and Handels banken plc. DecisionProposal Account manager Branch Manager Local credit department, credit specialist County manager with head of credit or National credit committee National Board Handels- banken Credit The Board’s credit committee The Board¹ G2 cont. 168 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Credit risk exposures, geographical breakdown 2025 SEK m Note Sweden UK Norway Finland The Netherlands Other countries Total Balance sheet items Cash and balances with central banks 31,171 96,089 4,336 1 163,366 113,192 408,155 Other loans to central banks Note G16 11,901 12,625 24,526 Loans to other credit institutions Note G18 20,709 325 17 305 355 21,711 Loans to the public Note G19 1,630,507 228,504 287,381 43,426 109,792 7,582 2,307,191 Interest-bearing securities eligible as collateral with central banks Note G17 188,272 188,272 Bonds and other interest-bearing securities Note G20 53,531 53,531 Derivative instruments Note G24 21,739 13 21,752 Total 1,957,828 324,917 304,342 43,443 273,463 121,142 3,025,137 Off-balance sheet items Contingent liabilities Note G46 335,214 75,449 67,935 610 2,811 24,844 506,863 of which contingent liabilities 21,048 2,725 3,920 573 64 12,146 40,474 of which obligations 314,166 72,724 64,016 37 2,747 12,698 466,388 Total 335,214 75,449 67,935 610 2,811 24,844 506,863 Total on- and off-balance sheet items 2,293,042 400,366 372,278 44,053 276,274 145,987 3,531,999 Credit risk exposures, geographical breakdown 2024 SEK m Note Sweden UK Norway Finland The Netherlands Other countries Total Balance sheet items Cash and balances with central banks 63,478 125,771 4,160 14 203,650 132,936 530,009 Other loans to central banks Note G16 3,352 9,195 12,547 Loans to other credit institutions Note G18 17,552 372 49 3 396 551 18,923 Loans to the public Note G19 1,616,388 246,788 320,698 75,362 104,604 8,246 2,372,086 Interest-bearing securities eligible as collateral with central banks Note G17 172,606 172,606 Bonds and other interest-bearing securities Note G20 47,508 47,508 Derivative instruments Note G24 47,042 27 47,069 Total 1,967,926 372,931 334,103 75,379 308,650 141,759 3,200,749 Off-balance sheet items Contingent liabilities Note G46 341,667 56,293 62,680 2,018 2,970 32,640 498,268 of which contingent liabilities 25,955 6,949 4,666 985 78 17,121 55,754 of which obligations 315,712 49,344 58,014 1,032 2,892 15,520 442,514 Total 341,667 56,293 62,680 2,018 2,970 32,640 498,268 Total on- and off-balance sheet items 2,309,594 429,224 396,782 77,397 311,620 174,400 3,699,017 The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. Geographical breakdown refers to the country in which the exposures are reported. Loans to the public subject to impairment testing, geographical breakdown 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net Sweden 1,592,891 34,434 3,756 −52 −73 −449 1,630,507 UK 218,898 7,795 1,961 −65 −45 −40 228,504 Norway 282,894 4,009 594 −19 −12 −85 287,381 Finland 34,638 8,295 821 −1 −17 −310 43,426 The Netherlands 108,838 915 48 −2 −1 −6 109,792 Other countries 7,580 10 0 −8 7,582 Total 2,245,739 55,448 7,190 −139 −149 −898 2,307,191 Loans to the public subject to impairment testing, geographical breakdown 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net Sweden 1,570,355 43,122 3,633 −73 −135 −514 1,616,388 UK 231,215 12,856 2,968 −88 −95 −68 246,788 Norway 312,409 7,536 956 −31 −55 −117 320,698 Finland 63,063 11,795 897 −16 −43 −334 75,362 The Netherlands 103,335 1,255 19 −1 −1 −3 104,604 Other countries 8,213 16 52 0 0 −35 8,246 Total 2,288,590 76,580 8,525 −210 −328 −1,071 2,372,086 The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 169Handelsbanken Annual Report 2025 3.1
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Loans to the public subject to impairment testing, broken down by sector and industry 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net Private individuals 1,131,205 23,943 4,216 −31 −48 −482 1,158,803 of which mortgage loans 990,509 20,170 2424 −16 −27 −87 1,012,973 of which other loans with property mortgages 120,669 3,066 1,170 −4 −6 −136 124,759 of which other loans, private individuals 20,027 707 622 −11 −15 −259 21,071 Housing co-operative associations 253,122 8,859 324 −1 −5 −12 262,287 of which mortgage loans 247,325 7,129 60 0 −3 −9 254,502 Property management 682,241 16,542 1,809 −69 −58 −116 700,349 Manufacturing 32,900 1,788 52 −5 −3 −18 34,714 Retail 19,564 1,341 87 −5 −5 −57 20,925 Hotel and restaurant 6,351 633 127 −5 −4 −18 7,084 Passenger and goods transport by sea 414 5 0 0 0 0 419 Other transport and communication 5,015 102 24 −2 −1 −16 5,122 Construction 15,575 785 186 −6 −5 −113 16,422 Electricity, gas and water 6,527 11 11 −1 0 −7 6,541 Agriculture, hunting and forestry 21,924 613 87 −4 −5 −3 22,612 Other services 13,550 534 69 −6 −5 −13 14,129 Holding, investment, insurance companies, mutual funds, etc. 18,561 180 11 −3 −2 −1 18,746 Sovereigns and municipalities 14,305 32 0 0 14,337 of which the Swedish National Debt Office 13,422 13,422 Other corporate lending 24,485 80 187 −1 −8 −42 24,701 Total 2,245,739 55,448 7,190 −139 −149 −898 2,307,191 Loans to the public subject to impairment testing, broken down by sector and industry 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net Private individuals 1,144,251 23,713 5,017 −52 −67 −588 1,172,274 of which mortgage loans 992,020 18,724 2,406 −15 −23 −58 1,013,054 of which other loans with property mortgages 129,982 3,957 1,437 −5 −5 −93 135,273 of which other loans, private individuals 22,249 1,032 1,174 −32 −39 −437 23,947 Housing co-operative associations 275,905 7,019 123 −1 −9 −8 283,029 of which mortgage loans 263,786 4,545 46 −1 −4 −7 268,365 Property management 690,119 37,156 2,565 −99 −113 −108 729,520 Manufacturing 29,983 1,634 45 −5 −6 −26 31,625 Retail 24,545 493 107 −8 −7 −69 25,061 Hotel and restaurant 6,873 819 144 −4 −7 −23 7,802 Passenger and goods transport by sea 243 2 0 0 0 0 245 Other transport and communication 5,602 164 18 −2 −2 −15 5,765 Construction 12,471 3,083 260 −16 −83 −143 15,572 Electricity, gas and water 9,903 5 11 −1 0 −3 9,915 Agriculture, hunting and forestry 20,888 883 93 −4 −6 −11 21,843 Other services 13,943 892 44 −7 −7 −17 14,848 Holding, investment, insurance companies, mutual funds, etc. 27,465 386 6 −5 −2 −4 27,846 Sovereigns and municipalities 1,483 94 0 −1 1,576 of which the Swedish National Debt Office 1,547 1,547 Other corporate lending 24,916 237 92 −6 −18 −56 25,165 Total 2,288,590 76,580 8,525 −210 −328 −1,071 2,372,086 The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 170 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Loans to the public after considering provisions, geographical breakdown by sector 2025 SEK m Sweden UK Norway Finland The Netherlands Other countries Total Private individuals 931,934 62,559 124,573 42 35,783 3,912 1,158,803 of which mortgage loans 914,343 98,619 11 1,012,973 of which other loans with property mortgages 2,815 60,332 24,386 18 34,730 2,478 124,759 of which other loans, private individuals 14,776 2,227 1,568 13 1,053 1,434 21,071 Housing co-operative associations 222,733 25,225 14,329 262,287 of which mortgage loans 221,576 24,754 8,172 254,502 Property management 332,293 147,928 117,239 28,622 73,386 881 700,349 Manufacturing 28,902 2,322 1,702 1 1,787 34,714 Retail 13,914 2,251 3,946 76 5 733 20,925 Hotel and restaurant 1,225 3,094 2,710 0 54 1 7,084 Shipping, passenger and goods transport by sea 407 12 0 419 Other transport and communication 3,883 734 196 308 1 5,122 Construction 8,209 1,993 6,186 1 33 16,422 Electricity, gas and water 3,756 234 2,517 34 0 6,541 Agriculture, hunting and forestry 21,013 1,366 220 13 22,612 Other services 8,764 3,482 1,758 101 21 3 14,129 Holding, investment, insurance companies, mutual funds, etc. 16,066 2,060 441 19 160 0 18,746 Sovereigns and municipalities 13,964 149 201 23 14,337 of which the Swedish National Debt Office 13,422 13,422 Other corporate lending 23,443 469 519 1 41 228 24,701 Net loans to the public 1,630,507 228,504 287,381 43,426 109,792 7,582 2,307,191 of which total provisions for expected credit losses (Stage 1–3) −574 −149 −117 −328 −9 −8 −1,186 Total loans to the public 1,631,081 228,653 287,498 43,754 109,801 7,590 2,308,377 Loans to the public after considering provisions, geographical breakdown by sector 2024 SEK m Sweden UK Norway Finland The Netherlands Other countries Total Private individuals 922,364 69,358 140,493 1,539 33,772 4,748 1,172,274 of which mortgage loans 902,318 110,712 24 1,013,054 of which other loans with property mortgages 2,888 66,714 27,987 132 33,070 4,482 135,273 of which other loans, private individuals 17,158 2,644 1,794 1,383 702 266 23,947 Housing co-operative associations 221,688 29,186 32,155 283,029 of which mortgage loans 218,047 28,154 22,164 268,365 Property management 333,378 156,845 128,021 40,222 70,035 1,019 729,520 Manufacturing 25,313 2,923 2,579 35 1 774 31,625 Retail 16,537 2,577 4,815 102 8 1,022 25,061 Hotel and restaurant 2,011 3,390 2,340 60 1 7,802 Shipping, passenger and goods transport by sea 228 12 5 245 Other transport and communication 4,549 568 250 353 45 5,765 Construction 6,945 2,023 6,597 1 6 15,572 Electricity, gas and water 6,137 322 3,226 115 115 9,915 Agriculture, hunting and forestry 19,877 1,743 223 0 21,843 Other services 9,260 3,757 1,411 366 15 39 14,848 Holding, investment, insurance companies, mutual funds, etc. 24,167 2,847 593 36 202 1 27,846 Sovereigns and municipalities 660 177 739 1,576 of which the Swedish National Debt Office 1,547 1,547 Other corporate lending 23,274 423 782 52 37 597 25,165 Net loans to the public 1,616,388 246,788 320,698 75,362 104,604 8,246 2,372,086 of which total provisions for expected credit losses (Stage 1–3) −722 −250 −203 −393 −5 −35 −1,608 Total loans to the public 1,617,110 247,038 320,901 75,755 104,609 8,282 2,373,695 The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 171Handelsbanken Annual Report 2025 3.1
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Collateral The Bank’s credit policy states that credits must normally have satisfactory collateral. A weak repayment capacity can never be accepted on the grounds that good collateral has been offered to the Bank. Collateral may, however, substantially reduce the Bank’s loss if the borrower cannot fulfil their obligations. The Bank’s measures to limit its credit risk include the acceptance of collateral from cus - tomers. The primary means of reducing credit risk in the Bank are the pledging of immovable property, such as residential properties and other real estate, floating charges on assets, guaran - tees (including guarantor commitments) and the use of netting agreements (see the section on Counterparty risks for more information). The basic principle applied in property finance is that credits must be covered by collateral in the form of properties. For expo - sures with properties as collateral, an LTV ratio is calculated by dividing the credit exposure by the value of the collateral. The Bank follows internal recommendations and external regula - tions which limit the maximum amount of a loan for which the collateral is property. The value of the properties is reviewed at least annually, and is based on the estimated market value. Checks are performed more often if market conditions have changed significantly. Since collateral is not generally utilised until a bor - rower faces serious repayment difficulties, the valuation of collateral focuses on the expected value in the case of a sale in unfavourable cir - cumstances in connection with insolvency. For unsecured long-term credit commit - ments to companies, the Bank often enters into an agreement with the customer on special credit terms which allow the Bank to renegotiate or terminate the loan in the case of unfavourable performance. In special circumstances, the Bank may buy credit derivatives or financial guarantees to hedge the credit risk in claims, but this is not part of the Bank’s normal lending process. A minor part of loans to credit institutions consists of reverse repurchase agreements. A reverse repurchase agreement is a repur - chase transaction in which the Bank buys interest- bearing securities or equities with a special agreement that the security will be resold to the seller at a specific price on a spe - cific date. Handels banken regards reverse repurchase agreements as secured lending. Only collateral used in the calculation of the capital requirement for credit risk is specified in the table Credit risk exposures, breakdown by type of collateral. Credit risk exposures, breakdown by type of collateral 2025 SEK m Residential property¹ Other property Sovereigns, municipalities and county councils² Guarantees as for own debt³ Financial collateral Collateral in assets Other collateral Unsecured Total Balance sheet items Cash and balances with central banks 408,155 408,155 Other loans to central banks Note G16 24,526 24,526 Loans to other credit institutions Note G18 21,711 21,711 Loans to the public Note G19 1,728,934 384,352 47,488 4,149 9,999 14,384 5,477 112,408 2,307,191 Interest-bearing securities eligible as collateral with central banks Note G17 186,958 1,314 188,272 Bonds and other interest-bearing securities Note G20 4,716 46,860 1,955 53,631 Derivative instruments Note G24 542 1,579 3,595 160 38 137 15,701 21,752 Total 1,729,476 385,931 675,438 4,309 10,037 14,384 52,474 153,089 3,025,237 Off-balance sheet items Contingent liabilities Note G46 86,248 62,499 26,432 9,715 9,904 688 7,750 303,626 506,862 of which contingent liabilities 285 387 4,841 264 698 507 33,492 40,474 of which obligations 85,963 62,112 21,591 9,451 9,206 688 7,243 270,134 466,388 Total 86,248 62,499 26,432 9,715 9,904 688 7,750 303,626 506,862 Total on- and off-balance sheet items 1,815,724 448,430 701,870 14,024 19,941 15,072 60,224 456,715 3,532,100 Credit risk exposures, breakdown by type of collateral 2024 SEK m Residential property¹ Other property Sovereigns, municipalities and county councils² Guarantees as for own debt³ Financial collateral Collateral in assets Other collateral Unsecured Total Balance sheet items Cash and balances with central banks 530,009 530,009 Other loans to central banks Note G16 12,547 12,547 Loans to other credit institutions Note G18 0 18,923 18,923 Loans to the public Note G19 1,780,542 384,401 40,257 7,015 12,419 16,513 6,080 124,859 2,372,086 Interest-bearing securities eligible as collateral with central banks Note G17 170,604 2,002 172,606 Bonds and other interest-bearing securities Note G20 3,784 43,724 47,508 Derivative instruments Note G24 391 1,138 6,853 383 87 38,217 47,069 Total 1,780,933 385,539 764,054 7,398 12,506 16,513 6,080 227,725 3,200,749 Off-balance sheet items Contingent liabilities Note G46 86,470 61,944 26,041 2,778 10,319 563 6,943 303,210 498,268 of which contingent liabilities 262 556 2,401 188 777 596 50,974 55,754 of which obligations 86,208 61,388 23,640 2,590 9,542 563 6,347 252,236 442,514 Total 86,470 61,944 26,041 2,778 10,319 563 6,943 303,210 498,268 Total on- and off-balance sheet items 1,867,403 447,483 790,095 10,176 22,825 17,076 13,023 530,935 3,699,017 1) Including housing co-operative apartments. 2) Refers to direct exposures to sovereigns and municipalities and government guarantees. 3) Does not include government guarantees. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 172 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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On- and off-balance sheet items subject to impairment testing, breakdown by type of collateral 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Balance sheet items Cash and balances with central banks 408,150 Sovereigns, municipalities and county councils¹ 408,150 Other loans to central banks Note G16 24,526 Sovereigns, municipalities and county councils¹ 24,526 Loans to other credit institutions Note G18 21,711 0 0 Sovereigns, municipalities and county councils¹ Guarantees as for own debt² Unsecured 21,711 0 Loans to the public Note G19 2,245,739 55,448 7,190 −139 −149 −898 Residential property³ 1,684,884 39,513 4,953 −51 −65 −300 Other property 377,398 6,290 870 −52 −35 −119 Sovereigns, municipalities and county councils¹ 42,017 5,119 363 −1 −10 0 Guarantees as for own debt² 4,129 20 1 −1 0 0 Financial collateral 9,896 105 1 −2 −1 0 Collateral in assets 14,005 361 60 −12 −12 −18 Other collateral 4,892 561 128 −3 −8 −93 Unsecured 108,518 3,479 814 −17 −18 −368 Interest-bearing securities eligible as collateral with central banks Note G17 Bonds and other interest-bearing securities Note G20 9,056 −1 Total 2,709,182 55,448 7,190 −141 −149 −898 Off-balance sheet items Contingent liabilities Note G46 274,652 4,431 111 −31 −26 −17 of which contingent liabilities 39,808 601 65 −2 −1 −17 Residential property³ 269 16 0 0 Other property 376 6 5 0 0 −4 Sovereigns, municipalities and county councils¹ 4,831 9 1 0 0 0 Guarantees as for own debt² 253 11 0 0 Financial collateral 645 52 2 0 0 0 Collateral in assets Other collateral 482 21 4 0 0 0 Unsecured 32,952 497 42 −2 −1 −13 of which obligations 234,844 3,830 46 −29 −25 0 Residential property³ 85,018 941 4 −9 −1 0 Other property 61,895 210 7 −4 −1 0 Sovereigns, municipalities and county councils¹ 21,590 1 0 0 Guarantees as for own debt² 9,422 29 −1 −1 Financial collateral 9,180 25 2 0 0 0 Collateral in assets 685 3 0 0 Other collateral 6,801 430 11 −3 −8 0 Unsecured 40,253 2,192 21 −12 −14 0 Total 274,652 4,431 111 −31 −26 −17 Total on- and off-balance sheet items 2,983,834 59,879 7,301 −172 −175 −915 1) Refers to direct exposures to sovereigns and municipalities and government guarantees. 2) Does not include government guarantees. 3) Including housing co-operative apartments. G2 cont. 173Handelsbanken Annual Report 2025 3.1
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On- and off-balance sheet items subject to impairment testing, breakdown by type of collateral 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Balance sheet items Cash and balances with central banks 530,003 Sovereigns, municipalities and county councils¹ 530,003 Other loans to central banks Note G16 12,547 Sovereigns, municipalities and county councils¹ 12,547 Loans to other credit institutions Note G18 18,872 55 −1 −3 Sovereigns, municipalities and county councils¹ Guarantees as for own debt² Unsecured 18,872 55 −1 −3 Loans to the public Note G19 2,288,590 76,580 8,525 −210 −328 −1,071 Residential property³ 1,722,581 52,800 5,560 −76 −119 −204 Other property 372,266 10,995 1,474 −59 −86 −189 Sovereigns, municipalities and county councils¹ 33,223 7,026 24 −1 −15 0 Guarantees as for own debt² 6,778 242 −2 −3 Financial collateral 11,680 743 1 −2 −3 0 Collateral in assets 15,734 774 68 −17 −30 −16 Other collateral 5,423 634 167 −4 −23 −117 Unsecured 120,905 3,366 1,231 −49 −49 −545 Interest-bearing securities eligible as collateral with central banks Note G17 Bonds and other interest-bearing securities Note G20 13,259 Total 2,863,270 76,635 8,525 −213 −331 −1,071 Off-balance sheet items Contingent liabilities Note G46 292,278 6,282 159 −39 −90 −26 of which contingent liabilities 54,384 1,315 55 −6 −12 −26 Residential property³ 233 23 6 0 0 −5 Other property 539 15 2 0 0 −1 Sovereigns, municipalities and county councils¹ 2,391 10 0 0 Guarantees as for own debt² 166 22 0 0 Financial collateral 693 79 4 0 0 0 Collateral in assets Other collateral 509 73 13 0 −1 −6 Unsecured 49,853 1,093 30 −6 −11 −14 of which obligations 237,894 4,967 104 −33 −78 0 Residential property³ 85,291 882 34 −8 −2 0 Other property 60,816 551 21 −3 −3 0 Sovereigns, municipalities and county councils¹ 23,632 5 3 0 0 0 Guarantees as for own debt² 2,555 35 0 −4 Financial collateral 9,430 113 0 −1 Collateral in assets 554 9 0 0 Other collateral 5,721 604 22 −2 −18 0 Unsecured 49,895 2,768 24 −20 −50 0 Total 292,278 6,282 159 −39 −90 −26 Total on- and off-balance sheet items 3,155,548 82,917 8,684 −252 −421 −1,097 1) Refers to direct exposures to sovereigns and municipalities and government guarantees. 2) Does not include government guarantees. 3) Including housing co-operative apartments. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 174 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Credit risk concentrations Handels banken’s branches focus strongly on establishing long-term relationships with cus - tomers of sound creditworthiness. If a branch identifies a good customer, it should be able to do business with this customer, irrespective of whether the Bank as a whole has a major exposure to the business sector that the cus - tomer represents. As a consequence, the Bank has relatively large concentrations in some individual sectors. However, the Bank monitors the performance and quality of the credit port - folio and calculates concentrations for various business sectors and geographic areas. The Bank also measures and monitors exposures to major individual counterparties. Special lim - its are applied to restrict the maximum credit exposure to individual counterparties, to aug - ment the credit risk assessment. If the credit portfolio has a concentration in a particular sector or counterparty that can be assumed to increase risk, this concentration is monitored. Concentration risks are reflected in the Bank’s calculation of economic capital for credit risks and in the stress tests conducted in the inter - nal capital adequacy assessment and as a part of the follow-up of the Bank’s risk tolerance. The Swedish Financial Supervisory Authority also calculates a separate capital adequacy requirement under Pillar 2 for concentration risks in the credit portfolio. This ensures that Handels banken has sufficient capital, also tak - ing into account concentration risks. If the concentration risks are judged to be exces - sive, the Bank has the opportunity and capac - ity to apply various risk mitigation measures. In addition to mortgage loans and lending to housing co-operative associations, Handels banken has significant lending to property management of SEK 700 billion (730). Here, “property management” refers to all companies classified as “property companies” for risk assessment purposes. It is common for groups operating in other industries to have subsidiaries managing the properties in which the group conducts business. Such property companies are also considered here to belong to property management. However, the under - lying credit risk in such cases is not solely property-related, because the counterparty’s repayment capacity is determined by business operations other than property management. Also, private individuals with substantial prop - erty holdings are classified as property com - panies for risk-assessment purposes. A very large part of property lending con - sists of property mortgages with low LTVs, which reduces the Bank’s credit loss risk. In addition, a large proportion of property lending is to government-owned property companies, Loans to the public subject to impairment testing, Property management 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net Loans in Sweden State-owned property companies 12,238 0 12,238 Municipally owned property companies 9,488 88 0 0 9,576 Multi-family dwellings/Residential property 150,482 3,189 194 −4 −8 −19 153,834 of which mortgage loans 144,984 3,123 168 −4 −7 −14 148,250 Commercial properties 154,312 2,078 280 −5 −5 −15 156,645 of which mortgage loans 92,257 1,233 196 −2 −4 −11 93,669 Total loans in Sweden 326,520 5,355 474 −9 −13 −34 332,293 Loans outside Sweden UK 142,670 4,488 852 −48 −31 −3 147,928 Norway 116,086 985 192 −10 −2 −12 117,239 Finland 23,511 4,900 291 −1 −12 −67 28,622 The Netherlands 72,573 814 −1 0 73,386 Other countries 881 0 881 Total loans outside Sweden 355,721 11,187 1,335 −60 −45 −82 368,056 Total loans – Property management 682,241 16,542 1,809 −69 −58 −116 700,349 Loans to the public subject to impairment testing, Property management 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net Loans in Sweden State-owned property companies 11,200 0 11,200 Municipally owned property companies 8,378 132 0 0 8,510 Multi-family dwellings/Residential property 149,035 12,928 159 −7 −21 −20 162,074 of which mortgage loans 140,174 12,436 155 −6 −21 −17 152,721 Commercial properties 147,033 4,415 191 −5 −8 −32 151,594 of which mortgage loans 84,124 2,301 65 −2 −4 −10 86,474 Total loans in Sweden 315,646 17,475 350 −12 −29 −52 333,378 Loans outside Sweden UK 147,258 8,151 1,567 −70 −58 −3 156,845 Norway 124,504 3,073 500 −15 −8 −33 128,021 Finland 32,794 7,318 148 −1 −17 −20 40,222 The Netherlands 68,898 1,139 −1 −1 70,035 Other countries 1,019 0 1,019 Total loans outside Sweden 374,473 19,681 2,215 −87 −84 −56 396,142 Total loans – Property management 690,119 37,156 2,565 −99 −113 −108 729,520 The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 175Handelsbanken Annual Report 2025 3.1
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muni cipal housing companies and other housing- related operations where the borrow - ers consistently have strong, stable cash flows and thus very high creditworthiness. Thus a large part of lending to the real estate sector is to companies with a very low probability of en coun tering financial difficulties. The Bank’s exposure to the real estate sector is specified in the tables below. The proportion of exposures to property counterparties (property companies and hous - ing co-operative associations) with a lower rating than the Bank’s risk class 5 (normal risk) is low. 98.5% (94.6) of total property lending in Sweden is in risk class 5 or better. The equivalent figure for property lending in Norway is 99.4% (98.6) and in Finland is 94.9% (96.2). The capital requirement for the UK and the Netherlands is calculated using the standard - ised approach with prescribed risk weights – meaning that the risk classes are irrelevant to the calculation of the capital requirement. For counterparties in lower risk classes than normal, the majority are in risk classes 6 and 7 with only low volumes in the higher risk classes 8 and 9. For information about Handels banken’s risk ratings, see the section Calculation of capital requirements for credit risks in note G2. Handels banken’s lending to property com - panies declined over the past year. The port - folio in Sweden was largely unchanged. In local currencies, the portfolio in the Netherlands has grown, while the portfolios in Norway, Finland and the UK have shrunk. Handels banken applies the same strict requirements on repay - ment capacity, LTVs and collateral quality in all markets. Loans to the public, Property management, type of collateral and country (gross) 2025 2024 SEK m Lending Sovereigns and municipalities¹ Residential property Commercial property and other collateral Unsecured Lending Sovereigns and municipalities¹ Residential property Commercial property and other collateral Unsecured Sweden 332,349 22,334 178,752 125,462 5,801 333,471 20,219 182,053 124,229 6,972 UK 148,010 69,538 76,067 2,405 156,976 3 81,792 72,696 2,485 Norway 117,263 22 16,280 95,046 5,915 128,077 23 18,454 102,125 7,475 Finland 28,702 23,745 3,053 1,894 10 40,260 28,962 5,204 6,071 23 The Netherlands 73,387 44,227 29,029 131 70,037 47,527 22,428 82 Other countries 881 213 582 86 1,019 445 574 Total 700,592 46,101 312,063 328,080 14,348 729,840 49,207 335,475 328,123 17,037 1) Companies owned by sovereigns and municipalities/property lending guaranteed by sovereigns and municipalities. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. Loans to the public, Property management, risk class and country 2025 Sweden UK Norway Finland The Netherlands Other countries Total % Risk class 1 13,608 556 5,328 19,492 2.78 2 88,344 11,632 3,220 103,196 14.73 3 129,486 70,015 8,404 207,905 29.68 4 62,958 26,857 4,181 93,996 13.42 5 32,932 7,450 6,098 46,480 6.63 6 3,502 421 553 4,476 0.64 7 758 124 138 1,020 0.15 8 169 2 116 287 0.04 9 109 11 372 492 0.07 Defaults 475 192 291 958 0.14 Standardised approach¹ 8 148,010 3 1 73,387 881 222,290 31.73 Total 332,349 148,010 117,263 28,702 73,387 881 700,592 100 Loans to the public, Property management, risk class and country 2024 Sweden UK Norway Finland The Netherlands Other countries Total % Risk class 1 11,282 601 7,978 19,861 2.72 2 72,529 10,041 4,391 86,961 11.92 3 121,031 70,408 12,424 203,863 27.93 4 72,310 33,565 5,683 111,558 15.29 5 38,125 11,704 8,241 58,070 7.96 6 16,035 944 679 17,658 2.42 7 1,132 297 77 1,506 0.21 8 176 2 95 273 0.04 9 336 9 543 888 0.12 Defaults 350 500 148 998 0.14 Standardised approach¹ 165 156,976 6 1 70,037 1,019 228,204 31.27 Total 333,471 156,976 128,077 40,260 70,037 1,019 729,840 100 1) The standardised approach uses predetermined risk weights, for which reason risk classes are not relevant. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 176 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Loans to the public, Property management, risk class and type of collateral 2025 Lending Collateral SEK m Residential property Commercial properties Guarantees from sovereigns and municipalities Other collateral Unsecured Risk class 1 19,492 6,268 3,069 8,200 1,211 744 2 103,196 49,179 32,220 18,661 385 2,751 3 207,905 74,897 117,237 9,316 248 6,207 4 93,996 40,459 47,407 4,059 675 1,396 5 46,480 23,247 17,694 4,929 150 460 6 4,476 2,705 1,186 451 21 113 7 1,020 535 342 33 97 13 8 287 164 74 43 6 9 492 114 67 298 3 10 Defaults 958 517 312 111 18 Standardised approach¹ 222,290 113,978 105,398 284 2,630 Total 700,592 312,063 325,006 46,101 3,074 14,348 Loans to the public, Property management, risk class and type of collateral 2024 Lending Collateral SEK m Residential property Commercial properties Guarantees from sovereigns and municipalities Other collateral Unsecured Risk class 1 19,861 5,388 3,076 9,959 680 758 2 86,961 43,464 23,159 17,683 101 2,554 3 203,863 66,445 118,702 10,464 1,345 6,906 4 111,558 47,466 57,610 4,227 184 2,071 5 58,070 28,188 22,547 5,924 726 688 6 17,658 12,918 3,039 500 24 1,177 7 1,506 989 404 7 106 8 273 87 123 47 2 14 9 888 419 57 400 3 9 Defaults 998 345 633 1 19 Standardised approach¹ 228,204 129,766 95,382 3 318 2,735 Total 729,840 335,475 324,732 49,207 3,391 17,037 1) The standardised approach uses predetermined risk weights, for which reason risk classes are not relevant. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. Calculation of capital requirements for credit risks Risk rating system The capital requirement for credit risk is calcu - lated according to the standardised approach and the IRB approach in accordance with regulation (EU) No 575/2013 (CRR). The cal - culation of capital requirements for credit risk according to the standardised approach means that the risk weights are stipulated in the regu - lations. The calculation of capital requirements for credit risk using the IRB approach entails that the institution estimates risk parameters through the use of its own IRB models (internal risk rating systems). When applying the IRB approach, there are two different methods: the foundation IRB approach and the advanced IRB approach. In the foundation IRB approach, pro- bability of default (PD) is calculated using the Bank’s own IRB models, while the figures for loss given default (LGD) and credit conversion factor (CCF) are specified in the regulations. CCF is used when calculating the exposure amount for off-balance sheet commitments. In the advanced IRB approach, probability of default (PD), loss given default (LGD) and the credit conversion factor (CCF) are each cal - culated using the Bank’s own IRB models. Handels banken’s IRB approach comprises all of the systems, methods, processes and pro - cedures to support the Bank’s classification and quantification of credit risk. Customers are assigned a rating based on a credit risk assessment. This rating, together with other risk rating criteria, determines how exposures are assessed with regard to the IRB approach’s division into risk classes. The rating for all exposures except for retail exposures to private individuals has two dimensions: risk of financial strain (A) and the counterparty’s financial powers of resistance in the case of such strain (B). The rating is based on a five-point scale from very low risk to very high risk. When applying the IRB approach, the rating is converted to an internal risk class (A+B- 1) for corporates and exposures to institutions, as well as for exposures to sovereigns and central banks (sovereign exposures). However, for government agencies and municipalities, the risk class is set as the lower of (A+B) or 9. A municipality with the same rating as a sover - eign is thus assigned a lower risk class. The reason for this is that the exposures to govern - ment agencies and municipalities are higher in risk than sovereign exposures. The rating for exposures to SMEs (included in the retail exposures category) is assigned using the same two dimensions as corporate exposures. The rating for exposures to private individu - als (known as retail exposures) comprises a number on a scale of one to five, in one dimension, and is not converted directly into a risk class as for corporate exposures. Instead, the different exposures are sorted into a num - ber of smaller groups on the basis of certain factors. These factors include the type of credit, the counterparty’s debt-servicing G2 cont. 177Handelsbanken Annual Report 2025 3.1
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record and the number of borrowers. An average default rate is calculated for each of the smaller groups, and on the basis of this, the groups are sorted into one of the ten risk classes. Accordingly, the Bank’s IRB approach for all exposures thus means that the exposures to ten different risk classes are based on their degree of risk. A clear majority of the Bank’s exposures are in risk classes 1–4, which means that the average risk level in the credit portfolio is significantly lower than the level which is assessed as normal risk. Risk class 5 corre - sponds to normal risk and risk class 10 is for counterparties in default. Exposure classes Each exposure is assigned to an exposure class. There are nine categories of exposure classes under the IRB approach, which in some cases consist of several exposure classes. These are: • exposures to central governments and central banks • exposures to regional governments, local authorities and public sector entities, to be assigned to the following exposure classes: – exposures to regional governments and local authorities – exposures to public sector entities • exposures to institutions • exposures to corporates, to be assigned to the following exposure classes: – general corporates – specialised lending exposures – corporate purchased receivables • retail exposures, to be assigned to the following exposure classes: – qualifying revolving retail exposures (QRRE) – retail exposures secured by residential property – retail purchased receivables – other retail exposures • equity exposures • exposures in the form of units or shares in a CIU • items representing securitisation positions • other non credit-obligation assets. Corporate exposures refer to exposures to non-financial undertakings, consisting of legal entities with a total exposure within the Group in excess of SEK 5 million (excluding housing financing) or where the company’s turnover is more than SEK 50 million, and SMEs with a total exposure within the Group in excess of SEK 5 million. Corporate exposures also include exposures to insurance companies and housing co-operative associations. Retail exposures include both exposures to private individuals and exposures to SMEs, where the total exposure within the Group does not exceed SEK 5 million (excluding mortgage loans). Credit risk exposures by risk class 2025 Balance sheet items Off-balance sheet items SEK m Loans to the public Loans to other credit institutions Cash and balances with central banks Other loans to central banks Derivative instruments Interest- bearing securities Contingent liabilities Obligations Total Risk class 1 503,079 12,074 148,700 24,526 5,331 193,710 1,166 58,347 946,933 2 561,453 1,217 6,787 45,042 3,292 131,253 749,044 3 546,274 124 3,960 1,835 3,429 107,648 663,270 4 211,640 4 1,478 2 913 46,507 260,544 5 81,224 333 807 13,820 96,184 6 11,235 20 133 5,299 16,687 7 24,790 1 495 6,600 31,886 8 1,140 6 29 4,989 6,164 9 6,504 5 2,509 9,018 Defaults 4,124 34 38 4,196 Standardised approach¹ 355,728 8,292 259,455 3,836 1,314 30,171 89,378 748,174 Total 2,307,191 21,711 408,155 24,526 21,752 241,903 40,474 466,388 3,532,100 Credit risk exposures by risk class 2024 Balance sheet items Off-balance sheet items SEK m Loans to the public Loans to other credit institutions Cash and balances with central banks Other loans to central banks Derivative instruments Interest- bearing securities Contingent liabilities Obligations Total Risk class 1 482,720 4,337 404,232 12,547 19,948 164,741 8,605 54,529 1,151,659 2 545,789 4,967 16,974 52,362 16,836 109,889 746,817 3 560,238 218 5,673 909 16,783 117,450 701,271 4 235,433 2 1,385 7,006 45,701 289,527 5 107,202 57 287 3,787 18,985 130,318 6 26,641 40 103 6,304 33,088 7 29,152 50 927 7,226 37,355 8 931 33 5,207 6,171 9 8,185 6 2,795 10,986 Defaults 4,109 37 58 4,204 Standardised approach¹ 371,686 9,342 125,771 2,712 2,102 1,631 74,370 587,614 Total 2,372,086 18,923 530,003 12,547 47,069 220,114 55,754 442,514 3,699,010 1) The standardised approach uses predetermined risk weights, for which reason risk classes are not relevant. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 178 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Equity exposures refer to the Bank’s holdings of shares that are not in the trading book. Exposures to be calculated according to the standardised approach can be allocated to 17 different exposure classes. For division into exposure classes according to the standard - ised approach, the Bank’s volumes are assigned to the following exposure classes: • exposures to central governments or central banks • exposures to regional governments and local authorities • exposures to public sector entities • exposures to multilateral development banks • exposures to international organisations • exposures to institutions • exposures to corporates • retail exposures • exposures secured by mortgages on immovable property and ADC exposures • defaulted exposures • subordinated debt exposures • exposures in the form of covered bonds • items representing securitisation positions • exposures to institutions and corporates with a short-term credit assessment • exposures in the form of units or shares in collective investment undertakings (CIUs) • equity exposures • other items. Risk rating methods In order to quantify the Bank’s credit risks, calculations are made of PD, EAD and LGD. Default is considered to have occurred when the borrower is more than 90 days past due with a significant payment, or when the Bank deems it unlikely that the borrower will be able to fulfil its commitments to the Bank. The PD value is expressed as a percentage where, for example, a PD value of 0.5% means that one of 200 borrowers with the same PD value is expected to default within one year. Corporate exposures are divided into four counterparty types and exposures to sover - eigns and municipalities into two counterparty types based on the business evaluation tem - plate used for the counterparty. PD is calcu - lated individually for each risk class and coun - terparty type. For exposures that are subject to a capital requirement according to the foun - dation IRB approach, prescribed values are applied for LGD. The prescribed value that may be used is determined by the collateral pro - vided for each exposure. For retail exposures as well, an average default rate is calculated for each of the risk classes. Different models are used for expo - sures to private individuals and SMEs (that are also classified as retail exposures), but the principle is the same. For retail exposures and for corporate expo - sures such as medium-sized enterprises, prop - erty companies and housing co-operative associations, the LGD is determined using the Balance sheet items subject to impairment testing, breakdown by risk class 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Risk class 1 810,704 2,348 −2 −2 2 604,582 6,269 −7 −4 3 540,898 5,505 −12 −5 4 208,916 4,229 −16 −5 5 71,895 9,696 −21 −16 6 9,750 1,518 −7 −6 7 15,246 9,568 −2 −20 8 175 979 0 −8 9 217 6,314 0 −27 Defaults 4,889 −765 Standardised approach¹ 446,799 9,022 2,301 −74 −56 −133 Total 2,709,182 55,448 7,190 −141 −149 −898 Balance sheet items subject to impairment testing, breakdown by risk class 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Risk class 1 821,158 1,815 −2 −2 2 643,271 2,834 −9 −3 3 556,715 6,345 −15 −6 4 229,582 5,883 −24 −6 5 91,880 15,748 −29 −55 6 17,336 9,382 −13 −27 7 17,930 11,326 −2 −52 8 222 723 0 −14 9 335 7,889 −1 −38 Defaults 4,842 −733 Standardised approach¹ 484,841 14,690 3,683 −118 −128 −338 Total 2,863,270 76,635 8,525 −213 −331 −1,071 1) The standardised approach uses predetermined risk weights, for which reason risk classes are not relevant. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 179Handelsbanken Annual Report 2025 3.1
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Bank’s own loss history. For exposures to large corporates for which the capital requirement is calculated using the advanced IRB approach, the LGD is determined on the basis of histori - cal losses and external observations. For retail exposures secured by property in Sweden and for real estate exposures to medium-sized enterprises, property companies and housing co-operative associations, different LGD val - ues are applied depending on the LTV of the collateral. For other exposures, the LGD value is determined by factors that may depend on the existence and valuation of collateral the product type and similar factors. For each exposure class, the PD is calcu - lated for each of the risk classes that refer to non-defaulted counterparties or agreements. PD is based on calculations of the percentage of exposures that have defaulted in the past. The average default rate is then adjusted by various margins of conservatism. When establishing LGD, the risk measure must reflect the loss rates during economically unfavourable circumstances, known as down - turn LGD. For corporate exposures in the IRB approach with own estimates of LGD and CCF, the LGD is adjusted for downturns so that the Bank’s observed losses in the crisis years of 1991–1996 are taken into account. The LGD is, in many cases, estimated on the basis of the property’s LTV. Given that the value of proper - ties, and thereby also the LTV, usually varies in line with the business cycle, this means that the capital requirement will also demonstrate a certain correlation with the business cycle. For other collateral for retail exposures, observed LGD is adjusted for downturns by a factor which depends on the PD and type of product. When the exposure amount (EAD) is to be calculated, certain adjustments are made to the carrying amount. Examples of this are revolving credits, where the Bank agrees with the customer that the customer may borrow up to a certain amount in the future. This type of commitment constitutes a credit risk for which the capital requirement must also be calculated. Normally, this means that the credit granted is adjusted using a certain credit con - version factor for the part of the credit that is unutilised at the time of reporting. For certain product categories for corporate exposures and exposures to institutions, the credit con - version factors are determined by the regula - tory code, while for retail exposures and cer - tain product categories for large corporates, medium-sized enterprises, property compa - nies and housing co-operative associations, the Bank uses its own calculated conversion factors. Which conversion factor is used is pri - marily governed by the product referred to, but the utilisation level may also be of relevance. The capital requirements for equity expo - sures in the IRB approach are calculated according to the simple risk weight approach. In addition to the capital adequacy calcula - tion, the risk parameters (PD, CCF, LGD) are used to calculate the cost of capital in each individual transaction and to calculate eco - nomic capital (EC). Regarding the Bank’s IRB models, which use historical data to generate risk estimates, the Loans to the public, breakdown by stage and risk class 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Risk class 1 500,735 2,348 −2 −2 2 555,194 6,269 −6 −4 3 540,786 5,505 −12 −5 4 207,432 4,229 −16 −5 5 71,564 9,696 −20 −16 6 9,730 1,518 −7 −6 7 15,244 9,568 −2 −20 8 169 979 0 −8 9 217 6,314 0 −27 Defaults 4,889 −765 Standardised approach¹ 344,668 9,022 2,301 −74 −56 −133 Total 2,245,739 55,448 7,190 −139 −149 −898 Loans to the public, breakdown by stage and risk class 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Risk class 1 480,909 1,815 −2 −2 2 542,966 2,833 −7 −3 3 553,914 6,345 −15 −6 4 229,581 5,882 −24 −6 5 91,590 15,695 −28 −55 6 17,296 9,382 −13 −24 7 17,880 11,326 −2 −52 8 222 723 0 −14 9 335 7,889 −1 −38 Defaults 4,842 −733 Standardised approach¹ 353,897 14,690 3,683 −118 −128 −338 Total 2,288,590 76,580 8,525 −210 −328 −1,071 1) The standardised approach uses predetermined risk weights, for which reason risk classes are not relevant. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 180 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Bank does not currently have sufficient his - torical data to include sustainability risks as a risk driver. However, sustainability risks are addressed for corporates by setting the inter - nal rating that forms the basis of the PD risk class. Work is being undertaken with the aim of including sustainability risks as a risk driver in future IRB models when sufficient historical data is available. Quality assurance of the credit risk model The Bank performs an annual review of its risk rating systems. The review checks that the internal ratings on which the Bank’s risk ratings are based are applied in a consistent, correct and fit-for-purpose manner (evaluation) and also that the models used measure risk in a satisfactory manner (validation). Calculation of expected credit losses The impairment rules presented in IFRS 9 apply to financial assets at amortised cost, financial assets at fair value through other comprehensive income, as well as financial guarantees and irrevocable commitments. This section provides descriptions of the processes and methods applied in Handels - banken’s model-based calculations of pro- visions for expected credit losses (ECL). Estimations of expected credit losses are made at agreement level, whereby the charac - teristics of the agreement and the counter - party govern the classification and quantifica - tion of the provision requirement. The estimation is made using either a model-based or manual calculation, with the choice of method mainly dependent on whether the agreement is deemed to be credit impaired. For information pertaining to the recognition and measurement of expected credit losses and for definitions, see note G1, section 6, Credit losses. Model-based calculations for agreements in Stage 1 and Stage 2 Handels banken’s Group-wide, central process for model-based calculations of expected credit losses incorporates a number of differ - ent processes and methods which support the quantification of the provision requirement in Stage 1 and Stage 2. The model-based calculations factor in historical, current and forward-looking data. Historical data forms the basis for the con - struction of the model and parameters applied, current data comprises the prevailing balances on the reporting date (as included in the cal - culation requirements) and forward-looking data refers to the macroeconomic scenarios used to calculate future risk parameters and exposures. Off-balance sheet items that are subject to impairment testing, breakdown by risk class 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Risk class 1 26,914 72 0 0 2 52,248 190 −3 −1 3 51,771 241 −3 −1 4 21,032 606 −5 −1 5 6,129 317 −7 −3 6 5,282 149 −2 −2 7 5,359 1,735 −1 −12 8 4,839 178 −2 −1 9 2,365 148 −1 −2 Defaults 71 −17 Standardised approach¹ 98,713 795 40 −7 −3 0 Total 274,652 4,431 111 −31 −26 −17 Off-balance sheet items that are subject to impairment testing, breakdown by risk class 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Risk class 1 33,043 52 2 58,035 204 −4 3 47,901 266 −5 −1 4 42,364 351 −7 −1 5 16,483 1,329 −11 −29 6 6,060 346 −2 −8 7 5,686 2,466 −1 −21 8 5,063 176 −2 −2 9 2,647 153 −1 −4 Defaults 94 −26 Standardised approach¹ 74,996 939 65 −6 −24 Total 292,278 6,282 159 −39 −90 −26 1) The standardised approach uses predetermined risk weights, for which reason risk classes are not relevant. The table above includes the disposal group in Finland, which has been reclassified to Assets held for sale in the balance sheet, see note G14. G2 cont. 181Handelsbanken Annual Report 2025 3.1
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The models use the same historical risk data as the IRB models, meaning that the accounting of provisions and calculations of capital requirements are based on the same basic loss history. Similar to how the risk rating system affects capital adequacy calculations, the internal rating (from which the risk rating derives) is a significant part of the models for calculating expected credit losses. The cal - culations are primarily affected by the risk parameters known as PD, EAD and LGD. The expected credit loss in a future period is obtained by multiplying the present value of the EAD by the PD and by the LGD. In con - trast to the calculation of credit losses in the Capital Requirements Regulation, which also uses the risk parameters PD, EAD and LGD, the estimation of expected credit losses pursuant to IFRS 9 is based on current for - ward-looking assessments. As the regulations have different purposes, the calculation mod - els differ in terms of how the risk parameters are set and in how they are constructed. The main differences between IFRS 9 and the IRB approach are presented in table Differences between IFRS 9 and the IRB approach. Macroeconomic information The calculations regarding model-based assessments of significant increases in credit risk and expected credit losses are made with the application of models for the respective risk parameters (PD, EAD and LGD). In order to ensure that the calculations take into account non-linear aspects, three forward- looking macroeconomic scenarios are used in the models (one base case, one downturn and one upturn) for exposures outside the UK. For exposures in the UK, four scenarios are used (one base case, two downturn and one upturn). Each scenario includes significant macroeconomic risk factors, such as unem - ployment, GDP, property prices, key/central bank rates and inflation, by country. The signifi- cant macroeconomic risk factors have been identified from an assessment of the Bank’s historical data and the relation to the risk parameters is estimated using the same histor - ical material. The various scenarios are used to adjust the risk parameters in question. Each macroeconomic scenario represents a proba - bility determined by the Bank. These probabili - ties are currently set at 70% (70) for the base case scenario, 15% (15) for the upturn scenario and 15% (15) for the downturn scenario. For exposures in the UK, the weightings are 50% (60) for the base case scenario, 5% (5) for the upturn and 35% (20) for the downturn, with 10% (15) assigned to the severe downturn sce - nario. Expected credit losses are recognised as a probability-weighted average of the expected credit losses for the respective scenarios. All of the macroeconomic scenarios have been produced by the Bank’s economic research unit, which is responsible for all eco - nomic analysis delivered by Handels banken, whether for internal or external use. These macroeconomic scenarios comprise region- specific, 30-year forecasts for Sweden, Norway, Finland, the UK, the Eurozone and the USA, together with a global forecast. The Bank does not apply any specific scenarios related to sustainability risks in the expected credit loss calculations, but the impact of this type of risk, primarily climate-related risks, is partly included in the macroeconomic scenarios applied. A change in the macroeconomic scenarios, or in the probability weights applied, affects both the assessment of significant increases in credit risk and the estimated expected credit losses. The scenarios are updated on a quarterly basis by the Bank’s economic research unit and are presented for approval to the relevant decision-makers before being applied in the ECL calculations. Portfolio segmenting Statistical models are used in the model-based assessment. These have been developed for different segments in the portfolio, with each segment being comprised of similar risk expo - sures, and the risk parameters can be esti - mated on the basis of a common set of risk factors. For retail exposures the portfolio seg - menting is based on product type and for other exposures it is based on counterparty type. The segments have been identified on the basis of statistical analysis and expert assessment. For retail exposures the portfolio has the following nine segments: exposures with residential property as collateral for pri - vate individuals, revolving credits including credit card exposures for private individuals and for SMEs, other exposures for private indi- viduals and for SMEs, card credits for retail financial services for private individuals and for SMEs, and hire purchase for retail financial ser - vices for private individuals and for SMEs. Other exposures are split into the following six segments: property companies, housing co-operative associations, other large non- financial undertakings, other non-financial undertakings, sovereigns as well as financial companies and banks. Within the respective portfolio segments, the agreements are further categorised into different states, based on risk factors such as internal rating, payment history, country affilia - tion, collateral type and LTV. These states have been determined on the basis of statisti - cal analysis of historical outcomes. For every state, statistical models are used for migrations between states in order to calculate the for - ward-looking probabilities for the risk parame - ters PD, LGD and EAD. One important risk fac - tor for the states is the counterparty’s internal rating, which is set in conjunction with the credit decision and which is updated at least annually, or whenever there are indications that the counterparty’s repayment capacity has changed. Climate-related risks, and certain other environmental risks, are assessed in the credit process and affect the internal rating at counterparty level. There are states for “not in default”, “in default” and “early repayment” exposures. Retail exposures are divided into nine different states and other exposures into 12 states. Significant increase in credit risk A significant increase in credit risk reflects the risk of default and is a measurement by which the agreement’s relative change in credit risk since initial recognition is measured. For calcu - lating significant increases in credit risks, the same underlying model is used in Handels - banken as is used for the calculation of expected credit losses, with consideration given to his - torical, current and future-oriented information. Collateral is not taken into account in the assessment. At each reporting date, the Group- wide, central, model-based process begins for all agreements with an assessment of whether there has been a significant increase in the credit risk since initial recognition (start date of the agreement). This assessment then determines whether the expected credit loss is assessed over a 12-month horizon after the reporting date (Stage 1) or during the agree - ment’s remaining lifetime (Stage 2). An import - ant aspect which affects the size of the provi - sion for credit losses is therefore which factors and thresholds are defined as triggers for the transfer of assets from Stage 1 to Stage 2. The Bank’s definition of a significant increase in credit risk, which is decisive in the transfer of agreements to Stage 2, is based on both quali - tative and quantitative factors. The quantitative indicator which is primarily used to assess the change in credit risk is the relative change, between the instrument’s initial recognition and up to the most recent reporting date, in the PD during the agreement’s remaining lifetime. In cases where an unreasonable expense or exertion was required to establish the PD in conjunction with the initial recognition of an instrument, changes in the counterparty’s or the agreement’s internal rating or risk rating since initial recognition have been used to assess the significant change in the credit risk. For agreements recognised initially on or after 1 January 2018, the forecasts regarding the risk of default are based on three scenarios. The primary criterion when assessing whether an agreement is deemed to have in - curred a significant increase in credit risk and is thus transferred to Stage 2 is, as defined by Handels banken, that the estimated remaining PD on the reporting date is greater than a G2 cont. 182 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Differences between IFRS 9 and the IRB approach Risk parameter IRB IFRS 9 PD, probability of default Average risk of default within 12 months over one business cycle, including statistical margins of conservatism and regulatory floors. Business cycle-dependent (“point-in-time”) risk of default within 12 months. “Lifetime PD” refers to the risk of default during the agreement’s expected remaining lifetime. LGD, loss given default The maximum value of expected loss rate on exposure at default within 12 months in the long term and in conjunction with an economic downturn, including statistical margins of conservatism and regulatory floors. The quantification of loss for corporate exposures is based on recoveries within 12 months and remaining reserves (24 months for retail exposures). Business cycle-dependent expected loss rate on exposure at default. LGD is adjusted on the basis of forward-looking macro- economic scenarios. EAD, exposure at default The maximum value of expected exposure at default within 12 months in the long term and in conjunction with an economic downturn, including statistical margins of conservatism and regulatory floors. Business cycle-dependent expected exposure at default within 12 months. EAD is adjusted on the basis of contractual terms and conditions and forward-looking macroeconomic scenarios, and is updated for each future 12-month period. Term The agreement’s contractual maturity, with consideration given to the customer’s option to extend. Expected lifetime. The agreement’s contractual maturity, with consideration given to the probability of early repayment. Forecast horizon 12 months. Up to 12 months for agreements in Stage 1 or the remaining lifetime for agreements in Stage 2–3. Discounting Forecast losses are not discounted to the reporting date. When quantifying the recovery rate, observed recoveries are discounted to the date of default using the average cost of capital. Forecast losses are discounted to the reporting date using the agreement’s contractual interest rate on the reporting date. multiple of 2.5 times the corresponding proba - bility of default upon initial recognition. The threshold value of 2.5 is based on statistical analysis of the Bank’s historical data and com - pares the increase in the remaining risk that the counterparty will default with the corre - sponding estimated risk upon the initial recog - nition of the agreement. In addition, there are other qualitative factors which the Bank has assessed as entailing a significant increase in credit risk, such as the agreement having payments that are more than 30 days overdue, or that counterparty having been granted concessions as the result of a deteriorated credit rating. If a significant increase in credit risk has arisen since initial recognition, a provision is recognised which corresponds to the expec - ted credit losses for the entirety of the remain - ing lifetime of the asset and the financial in - strument is transferred to Stage 2. The model is symmetrical, meaning that, if the financial instrument’s credit risk decreases and there is therefore no longer a significant increase in credit risk since initial recognition, the financial asset is transferred back to Stage 1. Models for risk parameters and expected lifetime The risk parameters PD, LGD and EAD are cal - culated for every agreement and future point in time, based on statistical models. These models are, as far as possible, founded on the relationships between the significant risk fac - tors and relevant risk outcomes identifiable in the Bank’s own loss history. The majority of risk parameters which are quantified are based on approximately ten years of internal data. In cases where the Bank lacks sufficient informa - tion due to, for example, too few defaults, the data is complemented with external informa - tion. The historical outcomes are analysed with regard to the covariation in agreement-specific, counterparty-specific and region-specific risk factors, such as product type, internal rating, length of customer relationship, collateral type, LTV, unemployment, interest rates and GDP growth. The risk factors identified as significant for a specific risk parameter are included in the model and the historical correlation is quantified. Probability of default (PD) PD refers to the probability that a customer or an agreement will go into default at a given point in time during the asset’s remaining life - time. 12-month PD refers to the probability of default during the coming 12-month period. Lifetime PD refers to the probability of default during the asset’s remaining lifetime (up to a maximum of 30 years). The future PDs are forecast on the reporting date, using forward- looking macroeconomic scenarios and cur - rent agreement and counterparty information. The forecast risk of default takes into account the development of scenarios and the proba - bility of migrations between different states over time. The models calculate annual migra - tion and default probabilities, whereby the migration model presents a probability that the agreement will belong to a particular state with a given risk of default in the future. The agreement’s expected PD for a given year is calculated as the probability-weighted PD over all conceivable states and scenarios. Expected PD for the remaining lifetime is based on the annual expected default fore - casts and the probability that the agreement will be subject to early repayment. The degra - dation of an economic outlook based on fore - cast macroeconomic risk factors for each scenario, or an increase in the probability that the downturn scenario will be realised, normally results in a higher PD. Exposure at default (EAD) EAD refers to the expected credit exposure at default. On the reporting date, future exposure at default is forecast on the basis of current repayment plans, the probability of early repayment and the expected utilisation of, for example, credit facilities, financial guarantees and loan commitments. EAD is forecast on an annual basis and comprises the amount at which losses and recoveries take place in conjunction with future defaults. Expected lifetime An instrument’s expected lifetime is relevant to both the assessment of significant increase in credit risk, which takes into account changes in PD during the expected remaining lifetime, and the measurement of expected credit losses for the asset’s expected remaining life - time. The expected lifetime is considered when calculating the remaining PD by weigh - ing the forecast annual PD values during the agreement’s contractual duration against the probability that the agreement will not be sub - ject to early repayment before defaulting. G2 cont. 183Handelsbanken Annual Report 2025 3.1
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The probability of the agreement being sub - ject to early repayment is based on statistical analysis and on the Bank’s internal history for approximately the past ten years, and is in - cluded as a component of the model for EAD. Potential risk factors in the form of agreement, counterparty and macroeconomic risk factors have been assessed in the analysis. The risk factors identified as significant are included in the model. For revolving credits with no matu - rity date, such as credit cards, a 30-year matu - rity from the reporting date is applied. The same 30-year maturity from the reporting date is also applied to mortgage loans with interest- rate fixing periods of a maximum of three months. On these maturities probability of early repayment according to the above is applied. Loss given default (LGD) LGD reflects the financial loss which the Bank expects to incur in the event of default. The most important risk factors when calculating LGD are the value and type of collateral, and the characteristics of the counterparty. For - ward-looking macroeconomic risk factors are reflected in the LGD calculations through their impact on the value of collateral and the LTV. The quantification of the loss is divided between a probability that the counterparty recovers without causing the Bank any finan - cial loss, and a recovery rate if the counter - party does not recover. The recovery rate is affected by the LTV, in that a higher LTV is associated with a lower recovery rate. The col - lateral value of properties, and thus the LTV and the recovery rate, is affected by the price trend for the property, whereby an expected decline in real estate values pushes up the LTV and the expected loss given default. Differences between IFRS 9 and the IRB approach Handels banken’s IFRS 9 models are based on the same historical data and the same overall model-based approach as the Bank’s IRB models, which use the risk parameters PD, LGD and EAD. As the regulations have differ - ent purposes, the calculation models differ in terms of how the risk parameters are set and in how they are constructed and in certain cases separate models have been imple - mented to fulfil the requirements of IFRS 9. The main differences between IFRS 9 and the IRB approach are presented in the table Differences between IFRS 9 and the IRB approach. Validation of IFRS 9 models and model-based calculations The models and the risk parameters used in them are regularly validated by Handels banken Risk Control according to established princi - ples, independently of the units responsible for developing the models. The purpose of the validations is to ensure that at several aggre - gation levels the model-based calculations demonstrate a good forecasting accuracy, without any unexpected deviations between forecasts and the most recent outcomes. The inputs used in the calculations are also verified to ensure that they are of high quality and that the design of the models is fit for purpose. The result of the validation is reported to the Head of Handels banken Credit, Head of Handels - banken Risk Control and CFO. No significant deviations with a material effect on the Bank’s provisions were identified in the validation that was carried out during the year. Manual calculations for agreements in Stage 3 Assets in Stage 3 are tested for impairment at the individual level using a manual calcula - tion (with the exception of a small portfolio of homogeneous claims which have a model-cal - culated provision in Stage 3). This testing is performed on a regular basis and in conjunc - tion with every reporting date by the local branch with business responsibility (unit with customer and credit responsibility) and is decided at county level and by the national Credit committee or Handels banken Credit. Impairment testing is carried out when there are objective circumstances which indicate that the counterparty will not be able to fulfil its contractual obligations, according to the defi - nition of default. Such objective circumstances could be, for example, late or non-payment or an indication of unlikely payment. Impairment testing involves an estimation of the future cash flows and the value of the col - lateral (including guarantees). Consideration is normally given to at least two forward-looking scenarios for expected cash flows, based on both the customer’s repayment capacity and the value of the collateral. The outcome of these scenarios is probability-weighted and discounted with the loan’s original effective interest rate. The scenarios used can take into account both macroeconomic and agree - ment-specific factors, depending on what is deemed to affect the individual counterparty’s repayment capacity and the value of the col - lateral. The assessment takes into account the specific characteristics of the individual counterparty. An impairment loss is recognised if the estimated recoverable amount is less than the carrying amount. Governance and internal control For calculating the expected credit losses on agreements in Stage 1 and Stage 2, Handels - banken has a Group-wide, central process using internally developed statistical models (model-based calculation). Manual calculation is used for agreements in Stage 3. The description below primarily refers to the model- calculated provisions for expected credit losses. This process is covered by a number of inter - nal controls. The various stages of the process also entail different approvals/adoptions, cre - ating a governance structure. Models Before a new quantitative model is included in the overall model system, it is subject to vali - dation and must be approved for use by the Head of Handels banken Credit. The quantitative models which form the basis for the calculations of expected credit losses involve several assumptions and assess - ments. Examples include the assumption that the quantifiable aspects of relationships between macroeconomic risk factors and risk parameters in historical data are representa - tive for future events, and the assumption that an agreement’s expected lifetime can be based on historical behavioural data. Whether these historical relationships and their repre - sentativeness of the future are affected by climate-related risks is assessed in the model - ling process. As of the reporting date, no such climate-related factors have been specifically included in the models, but the matter is sub - ject to continuous assessment. A selection of the most significant macroeconomic risk factors is made on the basis of the macro- economic risk factors’ explanatory power in relation to individual risk parameters. The selection of the macroeconomic risk factors and specification of the model are made to achieve a balance between simplicity, demon - strative ability and stability. All assumptions and discretionary decisions are presented to the Head of Handels banken Credit for approval. Any expert-assessed changes to provisions in model-calculated agreements in Stage 1 and Stage 2 require the approval of the CFO and are decided on by the Head of Handels banken Credit before they are applied. G2 cont. 184 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Macroeconomic scenarios The macroeconomic scenarios have been produced by the Bank’s economic research unit, based on instructions issued by the Head of Handels banken Credit. These instructions specify the desired macroeconomic risk fac - tors, geographical areas to be included, and the number of scenarios and probability- weighting between them. Before every reporting date, the current macroeconomic scenarios are presented to the Head of Handels banken Credit and the CFO, who approve the scenarios for use in the reporting process. Size of the provisions The total estimated provisions in Stage 1 and Stage 2 require the approval of the CFO and are decided on by the Head of Handels banken Credit. Estimated provisions in Stage 3 are proposed by the Bank branch with business responsibility (unit with customer and credit responsibility) and are approved at the county level and by the national Credit committee or a central unit, depending on the size of the pro - vision. Of the credit provisions in Stage 3 which are approved locally, a selection is subsequently reviewed/quality assured by Handels banken Credit. In addition, Handels - banken Risk Control submits an independent review on every reporting date of a selection of the credit provisions in Stage 3 which are approved centrally. The role of the control functions Handels banken Risk Control determines the validation principles and ensures that models are validated. An independent review is con - ducted on every reporting date of a selection of the credit provisions in Stage 3 which are approved centrally. Handels banken Risk Con - trol is described in more detail on pages 47 and 48. Handels banken Internal Audit reviews the estimations of expected credit losses as part of its assignment to independently exam - ine internal governance and control, and to evaluate the reliability of the Group’s financial reporting. Handels banken Internal Audit is described in more detail on pages 47 and 48. Counterparty risk Counterparty risk arises when the Bank has entered into derivative contracts or contracts with a counterparty regarding loans of securi - ties. In addition to derivatives, the capital adequacy regulations therefore treat both repurchase agreements and equity loans as counterparty risks. In calculating both the capital requirement and EC, counterparty exposures are taken into account based on the exposure amounts stipulated by the capital adequacy regulations. Handels banken applies the standardised approach for counterparty risk (SA-CCR) to calculate exposure amounts on derivative contracts for capital adequacy purposes. Counterparty risk is regarded as a credit risk where the market value of the contract deter - mines the size of the exposure. If the contract has a positive value, the default of the counter - party means a potential loss for the Bank. Reduction of counterparty risk Counterparty risk arises from the trade date until the date of delivery, whereby the Bank could be charged a termination fee if the counterparty is unable to meet its commit - ments. This risk exists in all derivative transac - tions and in securities transactions where the Bank has not secured payment in advance. The size of counterparty exposures is restricted by setting credit limits in the regular credit process. The size of the exposures may vary substantially due to fluctuations in the price of the underlying asset. In order to take account of the risk that the exposure may increase, supplements are added to the value of the exposure when setting credit limits. The exposures are calculated and followed up daily. The counterparty risk in derivatives is reduced through close-out netting agree - ments, which involve setting off positive values against negative values in all derivative trans - actions with the same counterparty. Netting agreements are supplemented with agree - ments for issuing collateral for the net expo - sure (credit support annex, CSA), which further reduce the credit risk. The collateral for these transactions is mainly cash, but government securities are also used. Due to the high pro - portion of cash, the concentration risks in the collateral are limited. The majority of Handels banken’s agreements include close-out netting, and the agreements with the largest exposures, which are to finan - cial institutions, also include CSAs. Derivatives which are cleared via central counterparties also give rise to capital require - ments. Central counterparties are clearing houses which act as the counterparty for both the buyer and seller in various transactions, and thus assume the responsibility for fulfilling the parties’ obligations. All parties which use a central counterparty must provide collateral for all transactions. In most cases, the risk weight for centrally cleared derivatives is consider - ably lower than for other types of derivatives. G2 cont. 185Handelsbanken Annual Report 2025 3.1
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Market risk The risk arises from price and volatility changes in the financial markets and are divided into interest rate risk, equity price risk, foreign exchange risk and commodity price risk. The financial markets were characterised by continued geopolitical uncertainty and the global trade conflict during the year, among other factors. There was uncertainty in the first half of the year due to threats from the US to impose high tariffs. Following market reactions, a more lenient approach was taken to intro - ducing tariffs and subsequent bilateral negoti - ations helped markets stabilise. The financial markets were strong in the second half of 2025, partly driven by interest rate cuts. Despite market recovery, uncertainty nonetheless remains about the impact of tariffs on global trade and inflation, and there are growing con - cerns regarding US debt. The tense geopoliti - cal situation also contributed to continued uncertainty. The impact of external events on the Bank’s market risks have been limited, and risk utilisation remained low during the year, in line with the risk tolerance. The Bank’s market risks are to be low, regardless of economic conditions and market fluctuations. Market risk strategy Handels banken has a restrictive view of market risks. Market risks must be limited by matching cash flows and interest rate adjustment periods, hedging open positions and taking other actions to limit risk. Market risks arise in Handels banken’s opera - tions in the banking book mainly as a result of interest rate and currency positions in the Bank’s funding and lending activities. A resid - ual market risk arises in cases where risk expo - sures cannot be perfectly hedged. Alongside risk exposures in the customer business, mar - ket risks may also derive from exposures that are necessary for conducting the banking operations, such as Handels banken Treasury’s liquidity portfolio. Market risks also arise in the trading book when the Bank meets customers’ demand for financial instruments with exposure to the fixed-income, currency, equity or commodity markets. Besides these customer-driven expo - sures, market risks may also arise in connec - tion with the Bank’s market maker function. In addition to the above, market risks also arise as a part of the subsidiary Handels banken Liv’s operations. The market risks in Handels - banken Liv are described in a separate section of this note. Consequently, the information on market risks given in this section refers to risks excluding Handels banken Liv. Organisational structure Handels banken’s Board has overall responsi - bility for the Bank’s management of market risks and articulates the risk tolerance by estab- lishing policy documents and setting limits. The CEO has delegated the functional responsibility for the Group’s funding and liquidity management to the CFO. Under the CFO, the Head of Handels banken Treasury has the operational responsibility for the Group’s funding and liquidity management, regardless of unit, country and subsidiary. This responsi - bility includes managing the Group’s ALM risks, meaning liquidity, foreign exchange and interest rate risks. Handels banken Markets is responsible for trading in financial instruments and manages most of the Bank’s trading book. To meet customers’ demand for financial instruments with exposure to the fixed- income, currency, equity or commodity markets, a cer - tain level must be maintained in the trading book, which results in market risks. The ALM risks arising in Handels banken Markets’ opera - tions are included in Treasury’s overall respon - sibility, while Handels banken Markets assumes overall responsibility for managing other market risks. The Bank’s limit system restricts the size of the exposure to various types of market risks. Measurement methods and limits are estab - lished by the Board. The limits for interest rate, foreign exchange and liquidity risk are then delegated by the CEO and the CFO to the Head of Handels banken Treasury, who in turn delegates these to the business-operating units. Limits for equity price risk and commod - ity price risk are delegated from the Board via the CEO to the CFO. The CFO then delegates these to Handels banken Markets. Within the boundaries of the limit system, each part of the business operations bears the responsibility for its own business activities and its management of all risks. The control functions monitor that the business operations are conducted within the Bank’s risk tolerance, and regularly report on the risks to the Board and Executive Team. The CEO and the CFO also decide on sup - plementary risk measures, intraday limits and instructions. The supplementary risk measures aim to reduce the Bank’s sensitivity to volatility changes in the financial markets, and to limit the risks of specific holdings and the liquidity risk per currency. The supplementary risk measures also limit the risks from a maturity perspective. Board Chief Executive Officer Chief Financial Officer Handels banken Treasury Handels banken Markets Stads hypotek Handels banken plc Local treasury units Other subsidiaries Decision levels for market and liquidity risks G2 cont. 186 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Market risks at Handels banken Market risks are measured using several differ - ent methods. The sensitivity measures used show which changes in value would occur in the event of predefined changes in prices and volatilities. Position-related risk measures and probability-based Value at Risk (VaR) models are also used. VaR VaR is calculated for the portfolios at Handels - banken Markets and Treasury which are classi - fied as trading book. VaR is a probability-based measure and expresses the losses in Swedish kronor from risk positions that cannot be expected to be exceeded due to movements in the underlying markets over a specified holding period and for a given confidence level. VaR is calculated using historical simula - tion and is determined for individual risk fac - tors, risk classes and at portfolio level with a 99% confidence level and one-day and ten- day holding periods. For a one-day holding period, this means that the Bank would be expected to make a loss exceeding the VaR outcome on one out of every 100 trading days. The model means that different risk classes can be handled in a uniform way so that they can be compared and aggregated into a total market risk. The overall risk in the portfolios which are classified as trading book was SEK 7 million (5) at year-end. The VaR model uses historically observed outcomes and thus does not cover all potential outcomes, such as in the case of extreme, rapid market movements. The calculations are therefore supplemented with stress tests where the portfolios are tested against scenarios based on events in the financial markets since 1994. The outcome of these stress tests was SEK 66 million (61) at year-end. Value at Risk (99%, 1 day) for the trading book Total Equities Interest rate Foreign exchange Commodities SEK m 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Average 8 9 1 0 9 10 1 1 0 0 Maximum 14 15 3 2 16 16 2 3 0 0 Minimum 4 5 0 0 5 5 0 0 0 0 Year-end 7 5 1 0 9 5 1 1 0 0 Worst outcome in stress test for the trading book SEK m 2025 2024 Average 70 61 Maximum 244 217 Minimum 20 16 Year-end 66 61 Interest rate risk Interest rate risk is measured in several ways at the Bank. General interest rate risk is mea - sured daily, and limits are set as the absolute sum of the least favourable changes in fair value per currency in the case of instanta - neous parallel shifts of 1 percentage point for all interest rates. At year-end, the Bank’s total general interest rate risk was SEK 1,138 million (1,274). Interest rate adjustment periods for non-maturity deposits are established accord - ing to an internal method. The risk measure includes interest-bearing items measured at market value as well as items not measured at market value and is therefore not appropriate when assessing the impact on the income statement. Instead, sup - plementary measures capture this for the respective business types. Credit spread risk is measured and limited by using sensitivity to changes in credit spreads, that is, the difference between the interest on the current holding and the interest on a gov - ernment bond with the same maturity. This risk arises at Handels banken Markets and in Treasury’s liquidity portfolio. The risk is mea - sured and limits are set on the basis of differ - ent rating classes and is calculated as the least favourable change in market value in the case of an upward or downward shift of one basis point in all credit spreads. This is performed for each individual counterparty and the outcomes are summed as an absolute total. The total credit spread risk at the end of the year was SEK 7 million (5). Changes in the risks in the case of hypo - thetical changes in various interest rate curves, such as steepening, flattening and basis risk, are measured and followed up on a regular basis. Interest rate risk in the trading book At year-end, the general interest rate risk in the trading book was SEK 60 million (34) and the credit spread risk was SEK 3 million (1). The non-linear interest rate risk, for example, part of the risk in interest rate options, is mea - sured and a limit set with pre-defined stress scenarios expressed in matrices. This means that the risk is measured as changes in under - lying market interest rates and volatilities. VaR and other risk measures are also used for the trading book, supplemented by various stress scenarios. G2 cont. 187Handelsbanken Annual Report 2025 3.1
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Interest rate risk in the banking book Interest rate risk arises as a result of the lend - ing partly having different interest rate adjust - ment periods than the funding. Interest rate risk is mainly managed by means of interest rate swaps. Interest rate risk also arises in Handels banken Treasury’s liquidity portfolio, and is managed via bond futures and interest rate swaps. At year-end, the general interest rate risk in the banking book was SEK 1,121 million (1,291) and the credit spread risk was SEK 4 million (4). To estimate the effect of interest rate changes on the income statement, the net interest income risk is also measured. The net interest income risk is measured as the least favour - able change in net interest income over a 12-month period in the case of a 1 percentage point increase or decrease in market rates. This effect reflects the differences in interest rate adjustment periods and volume composi - tion between assets, liabilities and derivatives outside the trading book, assuming that the size of the balance sheet is constant. In this calculation, interest rate adjustment periods for non-maturity deposits and portions of the lending are established according to an inter - nal method. This model is based on historical observations and only adjusting the portions that are insensitive to interest-rate movements. The net interest income risk at year-end was SEK 2,398 million (2,141). General interest rate risk in the banking book Change in fair value as the worst outcome in the case of a 1 percentage point parallel shift of all interest rates. SEK m 2025 2024 SEK 581 670 EUR 300 124 NOK 132 94 USD 95 161 GBP 10 236 Other currencies 3 6 Total 1,121 1,291 Interest rate adjustment periods for assets and liabilities 2025 The table shows the interest rate adjustment periods for interest-rate related assets and liabilities as at 31 December 2025. SEK m Up to 3 mths 3–6 mths 6–12 mths 1–5 yrs Over 5 yrs Total Cash and balances with central banks 424,272 8,408 432,680 Bonds and other interest-bearing securities 147,685 9,411 26,510 32,308 25,988 241,903 Loans to credit institutions 21,705 5 21,711 Loans to the public 1,634,567 84,767 178,050 362,194 47,614 2,307,191 Other assets 384,081 384,081 Total assets 2,612,310 102,587 204,565 394,502 73,602 3,387,566 Due to credit institutions 35,441 27,693 675 716 64,525 Deposits and borrowing from the public 1,053,249 59,980 65,097 105,590 9,868 1,293,784 Issued securities 409,276 231,336 137,584 616,262 68,789 1,463,247 Other liabilities 566,010 566,010 Total liabilities 2,063,976 319,008 203,356 722,568 78,658 3,387,566 Off-balance sheet items −381,635 40,815 −24,729 361,938 5,508 1,898 Interest rate adjustment periods for assets and liabilities 2024 SEK m Up to 3 mths 3–6 mths 6–12 mths 1–5 yrs Over 5 yrs Total Cash and balances with central banks 542,556 542,556 Bonds and other interest-bearing securities 147,668 2,424 930 62,898 6,195 220,115 Loans to credit institutions 18,921 1 1 18,923 Loans to the public 1,638,434 104,460 146,645 426,091 56,456 2,372,086 Other assets 385,493 385,493 Total assets 2,733,071 106,886 147,575 488,989 62,651 3,539,173 Due to credit institutions 53,893 28,596 1,110 659 270 84,528 Deposits and borrowing from the public 1,099,711 64,466 57,425 91,305 7,573 1,320,481 Issued securities 459,018 157,583 222,691 662,642 85,146 1,587,081 Other liabilities 547,083 547,083 Total liabilities 2,159,706 250,645 281,226 754,606 92,989 3,539,173 Off-balance sheet items −380,326 3,823 26,343 355,666 35,859 41,366 Assets and liabilities in the table above include the disposal group in Finland, which has been reclassified to the respective items Assets held for sale and Liabilities held for sale in the balance sheet (see note G14). G2 cont. 188 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Equity price risk The Bank’s equity price risk mainly arises at Handels banken Markets through customer trading and in the Bank’s own equity portfolio. The risk is measured as the market value change in the Bank’s total equity positions in the case of an instantaneous change in equity prices of +/– 10% and in volatilities of +/–25%. At year-end, the Bank’s worst case outcome for this risk was SEK 39 million (66). The largest exposure in equities comes from the UK market. Equity price risk in the trading book The equity price risk at Handels banken Markets arises in customer-driven transactions. Handels banken has market maker commit - ments in securities, equity derivatives and exchange-traded funds (ETFs). Equity price risk arises primarily from these commitments. The Bank also limits and measures the equity price risk in the trading book using matrices. The advantage of this method is that it effec - tively identifies equity price risk including the non-linear risk. VaR is used, together with other risk measures and stress scenarios, as a com - plement when measuring the equity price risk. At year-end, the Bank’s VaR for equity price risk in the trading book was SEK 1 million (0). Equity price risk in the banking book The Group’s holdings of equities outside the trading book include level 3 shares, mainly consisting of various types of Bank-wide operations related to the Bank’s core business. The holdings are classified as measured at fair value through other comprehensive income and are measured at fair value on the balance sheet. In general, such holdings are valued at the Bank’s share of the company’s net asset value, or alternatively at the price of the last completed transaction. The equity price risk is low. Equity price risk Change in equity price SEK m Change in volatility 2025 2024 −25% 0% 25% −25% 0% 25% 10% 75 77 79 70 69 67 −10% −39 −37 −35 −66 −64 −62 Equity exposures in the banking book SEK m 2025 2024 Holdings classified as measured at fair value through other comprehensive income 798 804 of which Levels 1 and 2 648 642 of which Level 3 150 162 Holdings classified as measured at fair value through other comprehensive income 798 804 of which business-related 262 271 of which other holdings 536 533 Fair value reserve at beginning of year 440 273 Unrealised market value change during the year for retained and new holdings 7 170 Realised due to sales and settlements during the period −10 −3 Fair value reserve at end of year 437 440 Included in tier 2 capital 0 0 G2 cont. 189Handelsbanken Annual Report 2025 3.1
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Commodity price risk Trading in commodities is conducted exclu - sively at Handels banken Markets. Exposure in commodity-related instruments only occurs as a result of customer-driven trading in the inter - national commodity markets. Commodity price risk, both linear and non-linear, is measured as the absolute total of risk for all commodities to which the Bank is exposed. At year-end, the commodity price risk was SEK 1 million (1), measured as the maximum loss on price changes up to 20% in underlying commodities and changes in volatility up to 35%. At year- end, the Bank’s VaR for commodity price risk was SEK 0 million (0). Other market risks Market risk also arises in the Bank’s pension system and comprises the risk of changes in the value of the pension assets securing the Bank’s pension obligations, together with changes in discount rates that affect the pres - ent value of the pension obligations. Fair value measurement The business operations are responsible for the correct valuation of financial instruments, and these valuations are then validated by Handels banken Risk Control. This validation responsibility includes the control of market data upon which the valuation is based and ensuring that this control is independent of the risk-taking parties. Sources of market data are independent of the business operations. When market data has been obtained from the business opera - tions, documented controls are performed against external sources to assess whether the data is reasonable. Market prices and mar - ket data for models must be verified at least once a month but are also essentially verified daily. Valuation models are validated by Handels banken Risk Control which is indepen - dent of the developer of the model. The Valua - tion committee, whose purpose is to coordi - nate valuation matters in the Handels banken Group, fulfils an important function in ensuring that each valuation is correct and adheres to current market practices. The valuation of financial instruments mea - sured at fair value is performed in accordance with IFRS 13. See note G44 for more informa - tion about the assets and liabilities measured at fair value and for additional information on the Bank’s valuation process. Prudent valuation In accordance with the valuation rules in the CRR, Handels banken makes a quarterly adjustment to own funds relating to uncer - tainty in the valuation of positions at fair value. This adjustment aims to assess the minimum value of own funds to the Bank with 90% accuracy in the event of a sale or the closing of the positions. The adjustment is calculated as the difference between a prudent valuation and the carrying amount representing the most probable value. The adjustments are based on various factors, including assess - ments of uncertainty in market data, concen - trated positions and model risks. G2 cont. Foreign exchange risk As the Bank has lending in several different currencies, foreign exchange exposure of a structural nature arises, because the Group’s accounts are presented in Swedish kronor. This structural risk is managed by considering the trade-off between the respective impacts of foreign exchange movements on either capital ratios or equity. The Board has estab - lished the maximum permitted impact on equity which the structural foreign exchange position is permitted to give rise to in the hedging of the common equity tier 1 ratio, and the maximum permitted position and sensitiv - ity in the common equity tier 1 ratio due to fluctuations in exchange rates. The other for - eign exchange movements that affect the Bank’s equity are shown in the table Statement of changes in equity, Group, on page 147. The Bank’s direct foreign exchange expo - sure arises as a consequence of custom - er-driven, intra-day trading in the international foreign exchange markets. This trading is con - ducted at Handels banken Markets. The Board, CEO and CFO have set VaR limits for this for - eign exchange risk. Some foreign exchange exposure also arises in the normal banking operations as part of managing customer payment flows and in funding operations at Handels banken Treasury. The Board, CEO and CFO have set position limits for these risks. At year-end, the aggre - gate net position amounted to SEK 214 million (162), not including the structural currency position. This foreign exchange risk does not depend on trends for an individual currency or group of currencies, because the positions are very short and arise in management of cus - tomer-driven flows. The total foreign exchange risk in the banking book was SEK 9 million (17)¹, measured as the impact of an instanta - neous 5% change in the Swedish krona on the Bank’s reported profit. 1) The figure for 2024 differs from previously reported amounts due to a change in method. Exchange rate sensitivity in the banking book Worst outcome +/-5% change in SEK against the respective currency. SEK m 2025 2024 EUR 2 8 NOK 0 3 USD 3 0 GBP 2 3 Other currencies 2 3 190 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Funding and liquidity risk Liquidity risk is the risk that the Bank will not be able to meet its payment obligations when they fall due without being affected by unacceptable costs or losses. Funding strategy Handels banken has a low tolerance of liquidity risks, both at aggregate level and in individual currencies. The Bank strives to have good access to liquidity, low variation in results and a considerable capacity to meet customers’ funding needs, even in difficult times. This is achieved by maintaining a good matching of incoming and outgoing cash flows over time in all currencies essential to the Bank and by maintaining large liquidity reserves of good quality. The Bank thus minimises the economic risks in funding and can thereby maintain sta - ble and long-term funding for the business- operating units. The Bank strives for a balanced usage of deposit and market funding. Furthermore, the Bank aims for breadth in its funding pro - grammes and their use. This ensures that the Bank can keep its core business intact for a long period of time, even if there is extensive disruption in the financial markets. This results in a well-matched balance sheet, where illiquid assets are financed using stable funding. The illiquid assets comprise credits to households and companies; these credits constitute the Bank’s core business. The long-term stable funding of these assets consists of covered bonds issued by Stads - hypotek, senior bonds issued by Handels - banken, deposits from households and a certain amount of deposits from companies, subordinated liabilities and equity. The balance sheet is structured in such a way that the real economy participants in the form of companies and households and their needs for credit can be supported even during lengthy periods of stress in the financial mar - kets. To ensure that the Bank’s obligations to customers and investors are fulfilled, it is therefore important to adopt a forward-looking perspective in funding and liquidity risk man - agement. Short-term assets cover short-term liabilities by a good margin. The figure Compo - sition of the balance sheet from a maturity per - spective describes the balance sheet in a stressed scenario where 20% of deposits are assumed to disappear within one year and all access to new market funding disappears. Despite the stress, short-term assets are estimated to exceed short term liabilities by a considerable amount at year-end. A long-term crisis could result in a reduced balance sheet with retained core business, whereby the vol - ume of short-term assets is gradually used to pay back maturing short-term liabilities. In the event of a more serious crisis, measures are in place to generate liquidity which will provide more support to the business operations. The market has great confidence in Handels banken, and its assessment is that Handels banken has a low credit risk. The Bank stands out as one of the most stable banks in the world, as reflected in the fact that no other privately-owned bank in the world has a higher combined credit rating from Fitch, Moody’s and Standard & Poor’s than Handels banken. The high level of confidence is also reflected in the fact that during the year the Bank has continued to have access to all of its preferred funding markets on reasonable terms com - pared to the Bank’s competitors. Good diversification between different types of funding sources in various markets, currencies and forms of funding instruments is a key component of the funding strategy. This reduces the significance of individual markets or sources of funding. Most of the long-term market funding comprises issues of covered bonds through Stads hypotek. This funding Composition of the balance sheet from a maturity perspective, SEK bn 0 500 1000 1500 2000 2500 3000 3500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Short-term assets, SEK 1,330 bn Cash and balances with central banks Bonds and other liquid securities including derivatives Loans to banks <1 year Loans repaid and amortised within 1 year¹ Loans to general public 1–5 years Loans to general public >5 years Other assets Short-term liabilities, SEK 1,002 bn Liabilities to banks <1 year Issued covered bonds <1 year Issued other securities <1 year Stress on deposits: 20% of deposits leaving Other liabilities <1 year including derivatives Issued securities >1 year Remaining deposits after stress Other liabilities >1 year Equity Assets Liabilities 1) Scheduled amortisations, contractual maturities and estimated additional loan repayments. G2 cont. 191Handelsbanken Annual Report 2025 3.1
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G2 cont. takes place in Swedish kronor, Norwegian kroner and euro. Handels banken’s long-term senior international funding is geographically well diversified, and the Bank issued significant volumes of bonds in US dollars, euro and Australian dollars during the year. The most important sources of funding are deposits from households and companies as well as covered and senior bonds. The short-term funding mainly comprises deposits from financial com - panies and institutions as well as issues of commercial papers (CP) and certificates of deposit (CD). Handels banken Treasury has a number of different funding programmes for market funding at its disposal. Bonds, commer - cial papers and certificates of deposit are issued under these programmes in the Bank’s, Stads hypotek’s and Handels banken plc’s names. The funding programmes ensure well-diversified access to funding in terms of different currencies, the number of investors, debt types and geographic breakdown. Organisational structure Handels banken has a decentralised business model, but all funding and liquidity manage - ment in the Group is centralised to Handels - banken Treasury. No branch, county, district or country organisation is permitted to assume liquidity risk. Funding and liquidity management is governed by policies established by the Board, which also decides on limits. Instruc - tions from the CFO concretise these policies. The instructions establish parameters such as the composition of the funding and assump - tions that form the basis of the Bank’s stress tests. Liquidity limits are delegated in the oper - ations from the Board via the CEO, CFO and finally the Head of Handels banken Treasury. Handels banken Treasury is also responsible for the Bank’s liquidity reserve, including the pledged assets that must be kept in different payment and clearing systems. Treasury moni - tors liquidity flows during the day to ensure that the Bank has sufficient collateral in its payment systems at any given time to meet the Bank’s payment obligations. Market funding – composition During the year, Handels banken issued a total of SEK 149 billion (157) in long-term market funding allocated across the Bank’s most important funding currencies. Short-term fund - ing is mainly raised by issuing certificates of deposit and commercial papers in Europe and the USA. This funding is supplemented by fixed-term deposits from large corporates, both financial and non-financial. In connection with the funding operations, the Bank contin - ued to meet investors to the same extent as previously, updated its funding programmes and also in other respects maintained the conditions for bond funding in all relevant global funding markets. This enabled the fund - ing operations to continue as normal during the year. Maturity profile of long-term market funding¹ Issued securities as at 31 December 2025 with a long-term ² original maturity. SEK bn 2026 2027 2028 2029 2030 2031 2032 >2033 Total Covered bonds 92 181 151 111 100 7 11 3 656 Senior bonds 40 44 54 9 8 1 5 160 Senior non-preferred bonds (SNP) 17 5 9 11 11 8 8 18 88 Others Long-term market funding by currency Issued securities as at 31 December 2025 with a long- term² original maturity. SEK bn SEK 546 EUR 251 USD 60 Others 46 of which covered bonds SEK 546 EUR 89 Others 21 1) For subordinated liabilities, see note G41 Subordinated liabilities. 2) Long-term maturity refers to a maturity equal to or in excess of one year and one month. 3) Short-term maturity refers to a maturity of less than one year and one month. Short-term market funding by currency Issued securities as at 31 December 2025 with a short- term³ original maturity. SEK bn SEK EUR 169 USD 328 Others 27 192 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Encumbered assets and cover pools Another important part of Handels banken’s liquidity management consists of retaining sig - nificant volumes of unutilised collateral that can be used in the event of disruptions in the financial markets. One prerequisite for being able to pledge additional collateral is for the Bank to have unutilised collateral at its disposal from the outset. The Bank therefore retains substantial volumes of non-encumbered assets that could be used as collateral in the issue of covered bonds and liquid securities with very high credit ratings. The Bank is restrictive about entering into agreements, such as CSA agreements, that stipulate that the Bank, according to certain criteria, may be forced to provide collateral to a counterparty. Such agreements are generally only signed with credit institutions. Cash col - lateral pledged under CSA agreements for out - standing derivatives totalled SEK 11,211 million (4,800). For more information about the Bank’s encumbered assets, see the Assets pledged table in Handels banken’s Fact Book. In addi - tion to securing the Bank’s liquidity, this restrictive approach contributes to limiting the extent to which the Bank’s senior lenders have lower priority than lenders who invest in covered bonds, known as subordination. To assess the degree of subordination between investors of unsecured funding and secured funding, the volume and credit quality of the non-encumbered assets are the rele - vant factors. Handels banken’s restrictive approach to risk-taking means that the non- encumbered assets are of high quality. Since Handels banken has a balanced utilisation of covered and senior bonds, there is a large volume of mortgage loans which are not encumbered. The table Non-encumbered/non-pledged assets shows that the volume of non-encum - bered assets for Handels banken is 266% (252) of the outstanding volume of unsecured funding. The majority of the encumbered assets consist of Stads hypotek’s cover pools, which comprise mortgage loans provided as collat - eral for outstanding covered bonds. The Bank also has voluntary OC (over-collateralisation) – extra assets in addition to those which are needed to cover the issued bonds, and in addition to the 2% statutory requirement of 8% which is included in the pool. These extra assets are in the pool in case the value of the mortgage loans were to fall to a level such that further assets are needed to match the volume of outstanding bonds. When assessing the risk that it will be nec - essary to add further assets, the loan to value (LTV) of the mortgage loans in the cover pool is of fundamental importance. The lower the LTV, the lower the risk that more mortgage loans are required in the pool if prices fall in the property market. Handels banken’s average volume-weighted LTV – LTV Max – was 54.6% (54.3) in the Swedish pool and 57.5% (58.5) in the Norwegian pool. This shows that the Bank can withstand substantial drops in prices of underlying property assets before further mortgage loans have to be added to the pools. The assets which the Bank has chosen to keep outside the cover pools are shown in the table Non-encumbered/non-pledged assets and can be used for issues of covered bonds if necessary. Non-encumbered/non-pledged assets 2025 2024 SEK bn NEA¹ Accumulated cov- erage ratio of un- secured funding², % NEA Accumulated cov- erage ratio of un- secured funding, % Balances with central banks and securities in the liquidity portfolio ³ 675 81 777 82 Mortgage loans 827 180 793 166 Other household lending 125 194 137 180 Property company lending lowest risk class (1–3) 254 225 256 207 Other corporate lending lowest risk class (1–3) 80 234 95 217 Loans to credit institutions lowest risk class (1–3) 1 234 2 217 Other corporate lending 264 266 325 252 Other assets 0 266 0 252 Total non-encumbered assets 2,226 266 2,385 252 Encumbered assets without underlying liabilities⁴ 66 69 Encumbered assets with underlying liabilities 1,095 1,085 Total assets, Group 3,388 3,539 1) NEA: Non-encumbered assets. 2) Issued short and long non-secured funding and liabilities due to credit institutions. 3) Relates to eligible as collateral value in central banks. 4) Over-collateralisation (OC) in cover pool and assets to cover Operational Continuity in Resolution requirement in the UK. G2 cont. 193Handelsbanken Annual Report 2025 3.1
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Cover pool data Sweden Norway SEK m 2025 2024 2025 2024 Stads hypotek total lending, public 1,426,321 1,407,203 130,681 146,185 Available assets for cover pool 1,316,425 1,298,858 123,939 137,562 Utilised assets in cover pool 652,944 671,531 68,401 78,979 Substitute assets, cash on a blocked account 500 500 500 500 Maximum LTV %, weighted average ASCB¹ definition 54.55 54.32 57.50 58.55 LTV , breakdown, % 0–10% 21.9 22.0 22.3 21.6 10–20% 19.9 20.0 19.8 19.4 20–30% 17.5 17.5 17.2 17.0 30–40% 14.7 14.7 14.4 14.4 40–50% 11.3 11.3 11.3 11.6 50–60% 7.9 7.8 8.1 8.5 60–70% 5.1 5.0 5.3 5.6 70–75% 1.7 1.6 1.7 1.9 Loan amount, weighted average, SEK 842,300 809,200 2,972,960 3,035,345 Loan term, weighted average, no. of months² 82 80 29 26 Interest rate adjustment periods, breakdown Floating rate, % 68.7 61.1 91.9 91.9 Fixed rate, % 31.3 38.9 8.1 8.1 1) Association of Swedish Covered Bond issuers. 2) Calculated from the date on which the loan is granted. Liquidity risk The Bank handles a large number of incoming and outgoing cash flows as part of its opera - tions. In order to limit risk in liquidity manage - ment, the Bank has a robust risk tolerance framework including both limits and qualitative targets for liquidity risk. Handels banken Risk Control is responsible for measuring risks and reports risk utilisation daily to the CEO and the CFO, and on a regular basis to the Board. Liquidity planning is based on an analysis of cash flows for the respective currency. The funding strategy is that illiquid assets are financed in a stable and long-term manner, and that a positive liquidity position (cash flows plus liquid assets) must be maintained – even in stressed conditions. The governance of the Bank’s liquidity situa - tion is therefore based on stress tests, which are performed at an aggregate level and also individually for the currencies that are essential to the Bank. The stress tests ensure that the Bank has sufficient liquidity, from both a short- term and long-term perspective, in various stressed scenarios and with various liquidi - ty-generating measures. The stress tests are carried out with the application of both mar - ket-wide and idiosyncratic stress on a daily basis. These are also supplemented with sce - nario analyses which consider substantial falls in housing prices. In these stress tests, it is assumed that the Bank does not have access to market funding, at the same time as parts of the deposits from households and companies gradually disappear in the first month. It is fur - ther assumed that the Bank will continue to conduct its core business by renewing loans to households and companies at maturity and that customers will partly utilise issued com - mitments and credit facilities. The stress tests assume that the cash assets in the liquidity reserve are used and that securities can immediately supply liquidity if provided as collateral or sold. In the long-term stress tests, it is assumed that the Bank will be able to generate further liquidity through the unutilised issue amount for covered bonds and by implementing other liquidity-generating measures to gradually provide the Bank with liquidity. The overall resilience of the Bank to sustained liquidity stress is illustrated by the outcome of the Bank’s long-term stress test, which shows that the Bank would maintain liquid for more than three years under a severe and prolonged crisis scenario. The table Maturity analysis for financial assets and liabilities shows undiscounted cash flows for the contracted payment obligations, including interest flows, due for payment at the latest within the stated time intervals. The table shows holdings of bonds and other inter - est-bearing securities in the time intervals in which they can be converted to liquidity if they are pledged as collateral or sold. Furthermore, assets, liabilities and interest flows that mature are shown in the time intervals corresponding to the contractual maturity dates. Financial guarantees, loan commitments and unutilised overdraft facilities are reported in their entirety in the time interval up to 30 days. The total outstanding amount of these commitments does not necessarily represent future funding requirements. For derivative instruments, cash flows are reported on a net basis. Cash flows on a gross basis are reported in the separate table Derivatives. G2 cont. 194 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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The liquidity coverage ratio (LCR) states the ratio between the Bank’s liquidity buffer and net cash flows in a very stressed scenario during a 30-day period. The requirement ap - plies to LCR at aggregate level and the ratio must be at least 100%. The Swedish Financial Supervisory Authority also stipulates LCR in in - dividual currencies within the framework of the supervisory review and evaluation process in Pillar 2. At year-end, the Group’s aggregated LCR was 205% (207), which shows that the Bank has a high level of resistance to short- term disruptions in the funding markets. The minimum requirement for the structural liquidity measure, the net stable funding ratio (NSFR) – the ratio between available stable funding and required stable funding – requires the Bank to have sufficient stable funding to cover its funding needs under both normal and stressed circumstances during lengthy peri - ods. The minimum requirement applies at aggregate level and the ratio must be at least 100%. At year-end 2025, NSFR was 119% (124) at Group level. Pricing of liquidity risk An important part of liquidity risk management is that deposits and lending are priced inter - nally, taking into account the liquidity risks that they give rise to. When the Bank grants a loan with a long maturity, this creates the need to obtain additional long-term funding – which is normally more expensive than short-term funding. This is because investors who pur - chase the Bank’s long-term bonds normally demand higher compensation the longer the maturity of the bond is. This is taken into account in the Bank’s internal pricing based on the price that internal units in the Bank have to pay for the funding they receive from Handels - banken Treasury. The internal pricing is import - ant in order to create the right incentive and to avoid unsound risk-taking. The Bank has applied maturity-based internal interest rates for a long time which ensures that the price at contract level takes into account the funding cost and liquidity risk that the agreement has given rise to. Liquidity coverage ratio (LCR) – sub-components SEK m 2025 2024 High-quality liquidity assets 670,104 772,623 Cash outflows 373,186 419,464 Retail deposits and deposits from small business customers 61,235 59,319 Unsecured wholesale funding 235,605 278,914 Secured wholesale funding 1,900 2,452 Other cash outflows 74,446 78,779 Cash inflows 46,360 45,871 Inflows from fully performing exposures 38,236 33,911 Other cash inflows 8,124 11,960 Liquidity coverage ratio (LCR), % 205 207 The sub-components are defined as stated in Commission Delegated Regulation (EU) 2015/61. Net stable funding ratio (NSFR) – sub-components SEK m 2025 2024 Available stable funding 2,025,068 2,143,849 Capital items and instruments 193,962 219,139 Retail deposits 744,937 708,715 Wholesale funding 1,082,156 1,212,274 Other liabilities 4,013 3,722 Required stable funding 1,700,566 1,734,333 Total high-quality liquid assets 7,687 7,019 Assets encumbered for a residual maturity of one year or more in a cover pool 486,171 499,810 Performing loans and securities 1,111,099 1,136,619 Other assets 72,952 68,494 Off-balance sheet items 22,657 22,391 Net stable funding ratio (NSFR), % 119 124 G2 cont. 195Handelsbanken Annual Report 2025 3.1
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For deposit volumes, the column “Unspecified maturity” refers to deposits payable on demand. The table contains interest flows, which means that the balance sheet items are not reconcilable with the Group’s balance sheet. Maturity tables without interest flows, including maturity tables in foreign currencies, can be found in the Fact Book at handels banken.com/ir. Maturity analysis for financial assets and liabilities 2025 SEK m Up to 30 days 31 days– 6 mths 6–12 mths 1–2 yrs 2–5 yrs Over 5 yrs Unspecified maturity Total Cash and balances with central banks 432,847 432,847 Interest-bearing securities eligible as collateral with central banks¹ 188,272 188,272 Bonds and other interest-bearing securities² 53,631 53,631 Loans to credit institutions 19,976 380 410 288 167 662 21,883 of which reverse repurchase agreements 13,463 13,463 Loans to the public 88,031 297,956 252,497 264,220 434,187 1,289,734 2,626,625 of which reverse repurchase agreements 18,156 18,156 Other 20,220 363,861 384,081 of which shares and participating interests 16,549 16,549 of which assets from unsettled trades 3,671 3,671 Total assets 802,977 298,337 252,907 264,508 434,355 1,290,396 363,861 3,707,339 Due to credit institutions 14,628 38,058 847 103 857 10,883 65,377 of which repurchase agreements of which deposits from central banks 31,140 264 31,404 Deposits and borrowing from the public 69,540 157,898 8,692 1,676 1,478 157 1,056,530 1,295,971 of which repurchase agreements Issued securities³ 75,952 421,378 200,540 249,306 490,901 66,698 1,504,775 of which covered bonds 6,260 86,487 12,869 193,069 378,503 21,797 698,986 of which certificates of deposit (CDs) with original maturity of less than one year 24,592 101,004 54,486 180,083 of which commercial paper (CPs) with original maturity of less than one year 44,396 189,858 108,377 342,631 of which certificates of deposit (CDs) and commercial paper (CPs) with original maturity of over one year 1,942 1,942 of which senior non-preferred bonds 10,034 9,253 7,296 35,110 37,782 99,476 of which senior bonds and other securities with original maturity of over one year 328 32,238 12,844 48,043 75,511 7,209 176,173 Subordinated liabilities 738 744 12,015 15,938 10,232 39,666 Other 5,619 254 356 691 1,119 710 557,261 566,010 of which short positions 2,163 2,163 of which liabilities from unsettled trades 3,343 3,343 Total liabilities 165,739 618,327 211,180 263,791 510,292 77,798 1,624,674 3,471,800 Off-balance sheet items Financial guarantees and unutilised loan commitments 506,863 Derivatives 2025 SEK m Up to 30 days 31 days– 6 mths 6–12 mths 1–2 yrs 2–5 yrs Over 5 yrs Unspecified maturity Total Total derivatives inflow 181,400 527,365 115,898 104,014 224,991 80,474 1,234,142 Total derivatives outflow 182,430 532,262 114,805 102,977 220,639 76,713 1,229,826 Net −1,030 −4,897 1,093 1,037 4,352 3,761 4,316 G2 cont. 196 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Maturity analysis for financial assets and liabilities 2024 SEK m Up to 30 days 31 days– 6 mths 6–12 mths 1–2 yrs 2–5 yrs Over 5 yrs Unspecified maturity Total Cash and balances with central banks 542,808 542,808 Interest-bearing securities eligible as collateral with central banks¹ 172,606 172,606 Bonds and other interest-bearing securities² 47,508 47,508 Loans to credit institutions 16,704 163 161 588 793 865 19,274 of which reverse repurchase agreements 11,291 11,291 Loans to the public 76,230 327,674 238,805 299,417 462,128 1,293,888 2,698,142 of which reverse repurchase agreements 17,995 17,995 Other 20,056 365,437 385,493 of which shares and participating interests 14,746 14,746 of which assets from unsettled trades 5,310 5,310 Total assets 875,911 327,837 238,966 300,005 462,921 1,294,754 365,437 3,865,831 Due to credit institutions 38,239 33,459 1,462 120 904 349 11,192 85,726 of which repurchase agreements of which deposits from central banks 12,943 247 13,190 Deposits and borrowing from the public 88,382 163,368 8,871 2,064 1,203 179 1,059,731 1,323,798 of which repurchase agreements Issued securities³ 91,156 383,727 303,623 194,999 578,061 78,764 1,630,331 of which covered bonds 377 13,204 100,840 126,656 449,922 45,219 736,218 of which certificates of deposit (CDs) with original maturity of less than one year 41,693 172,414 56,211 270,318 of which commercial paper (CPs) with original maturity of less than one year 48,020 158,976 142,232 349,227 of which certificates of deposit (CDs) and commercial paper (CPs) with original maturity of over one year 2,876 718 3,594 of which senior non-preferred bonds 918 729 20,937 31,425 32,600 86,609 of which senior bonds and other securities with original maturity of over one year 429 32,818 2,327 47,990 99,678 1,120 184,363 Subordinated liabilities 849 799 1,647 29,918 11,707 44,920 Other 4,039 219 329 626 1,258 572 540,040 547,083 of which short positions 1,007 1,007 of which liabilities from unsettled trades 2,865 2,865 Total liabilities 221,816 581,622 315,084 199,456 611,345 91,571 1,610,963 3,631,858 Off-balance sheet items Financial guarantees and unutilised loan commitments⁴ 498,268 Derivatives 2024 SEK m Up to 30 days 31 days– 6 mths 6–12 mths 1–2 yrs 2–5 yrs Over 5 yrs Unspecified maturity Total Total derivatives inflow 234,647 488,324 107,772 155,359 253,407 82,081 1,321,590 Total derivatives outflow 232,617 477,157 106,862 147,381 242,625 75,086 1,281,728 Net 2,030 11,167 910 7,978 10,782 6,995 39,862 1) SEK 155,002 million (138,235) of the amount (excl. interest) has a time to maturity of less than one year. 2) SEK 21,830 million (6,865) of the amount (excl. interest) has a time to maturity of less than one year. 3) SEK 672,919 million (750,403) of the amount (excl. interest) has a time to maturity of less than one year. 4) The figure for 2024 differs from previously reported amounts due to a change in method. Assets and liabilities in the table above include the disposal group in Finland, which has been reclassified to the respective items Assets held for sale and Liabilities held for sale in the balance sheet (see note G14). G2 cont. 197Handelsbanken Annual Report 2025 3.1
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Liquidity reserve To ensure sufficient liquidity to support its core business in stressed financial conditions, the Bank holds large liquidity reserves in all curren - cies of relevance to the Bank. The liquidity reserve comprises several differ - ent parts. Cash, balances and other lending to central banks are components which can pro - vide the Bank with immediate liquidity. The re - serve also comprises liquid securities such as government bonds, covered bonds and other securities of very high credit quality which are liquid and eligible as collateral with central banks. These can also provide the Bank with immediate liquidity. The remainder of the liquid - ity reserve comprises an unutilised issue amount for covered bonds and other liquidity- generating measures. Holdings with central banks, and securities holdings in the liquidity reserve, market value 2025 SEK m SEK EUR USD Other Total Level 1 assets 245,312 169,369 119,711 139,391 673,783 Cash and balances with central banks 30,207 164,114 112,971 112,249 419,541 Securities issued or guaranteed by sovereigns, central banks, MDBs and international organisations 172,670 5,181 6,739 7,204 191,794 Securities issued by municipalities and PSEs 149 42 191 Extremely high-quality covered bonds 42,285 75 19,896 62,256 Level 2 assets 652 202 36 890 Level 2A assets 632 36 668 Securities issued or guaranteed by sovereigns, central banks, municipalities and PSEs 36 36 High-quality covered bonds 632 632 Corporate debt securities (lowest rating AA-) Level 2B assets 20 202 222 Asset-backed securities High-quality covered bonds Corporate debt securities (rated A+ to BBB-) 20 202 222 Shares (major stock index) Total liquid assets 245,964 169,571 119,711 139,428 674,673 Holdings with central banks, and securities holdings in the liquidity reserve, market value 2024 SEK m SEK EUR USD Other Total Level 1 assets 252,323 210,426 142,411 171,044 776,204 Cash and balances with central banks 62,533 204,795 132,563 138,239 538,130 Securities issued or guaranteed by sovereigns, central banks, MDBs and international organisations 154,706 5,516 9,848 3,115 173,185 Securities issued by municipalities and PSEs 19 19 Extremely high-quality covered bonds 35,066 115 29,690 64,871 Level 2 assets 912 163 121 1,196 Level 2A assets 909 121 1,030 Securities issued or guaranteed by sovereigns, central banks, municipalities and PSEs 95 95 High-quality covered bonds 909 27 936 Corporate debt securities (lowest rating AA-) Level 2B assets 2 163 165 Asset-backed securities High-quality covered bonds Corporate debt securities (rated A+ to BBB-) 2 163 165 Shares (major stock index) Total liquid assets 253,235 210,590 142,411 171,165 777,401 G2 cont. 198 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Operational risk Operational risk refers to the risk of loss due to inadequate or failed internal processes, human error, erroneous systems or external events. The definition includes legal risk, model risk, and information and communication technology (ICT) risk. The Board establishes the Handels banken Group’s tolerance of operational risk. Handels - banken has a low tolerance for operational risk, although this risk is an inevitable component in all operations. As far as possible, Handels - banken must endeavour to prevent these risks. Operational losses must be low. An operational risk which could have serious adverse conse - quences for the Bank, the Bank’s customers or the financial system in the event of an incident must be reduced to a lower risk level. The Bank must have appropriate and preventive protection against attacks, disruptions or inter - ruptions to the Bank’s critical operations and have incident management capabilities in the event of such attacks, disruptions or interrup - tions. Losses resulting from an incident can be covered by insurance, although insurance may never replace sound risk management. The Chief Executive Officer decides on manage - ment guidelines and limits for operational risks. In 2025, Handels banken’s recognised op - erational losses, which comprise expected and recognised losses exceeding SEK 25,000 together with any recoveries, totalled SEK 123 million (119). Organisational structure The responsibility for identifying, assessing and managing operational risk is an integral part of managerial responsibility at all levels in the Handels banken Group. The Bank’s decen - tralised way of working and cost-conscious - ness promote good management of opera - tional risk, which leads to vigilance against potential risks of loss in daily procedures and events. Operational risk is managed in the business operations, and this management is controlled by Handelsbanken Risk Control. Specially appointed local coordinators for operational risk (local OpRisk coordinators) are in place to assist managers in their management of oper - ational risk. The local OpRisk coordinators are responsible for supporting the business oper - ations on operational risks, incident manage - ment, risk indicators, action plans, limits and reporting. Handels banken Risk Control is responsible for regularly evaluating the various methods, processes and procedures used by the opera - tions for identifying, assessing, managing and reporting operational risks, and for verifying that the operations monitor the implementation of the actions which have been decided. Handels banken Risk Control is also responsi - ble for ensuring that risks are evaluated before decisions are made concerning new or materi - ally changed products, services, markets, pro - cesses and IT systems or in the case of major changes in the Group’s operations or organi - sational structure. In addition, Handels banken Risk Control is responsible for identifying, assessing, analysing, and reporting at the Group level all material operational risks and their development to management and the Board. The risk reports presented to manage - ment and the Board also contain information about material incidents and risk mitigation measures. Methods for identifying, assessing and managing operational risk The business operations are responsible for owning and managing risks associated with day-to-day operational activities within their units. The Bank monitors the development of operational risk according to different risk cat - egories that are of importance to the Group. The Chief Executive Officer decides on these risk categories. The Group-wide methods for identifying, assessing and managing operational risk are incident reporting, risk indicators and self-assessment of operational risk. Incident reporting All incidents that are deemed to have, or have had, a severe impact on the operations, the Bank’s customers or the financial system, as well as incidents with operational losses exceeding SEK 25,000, are reported. Incidents are analysed to identify any shortcomings or weaknesses that may pose operational risks. Risk indicators Risk indicators with thresholds are used to continuously monitor developments and pro - vide early warning signals of heightened oper - ational risks. If a threshold for a risk indicator is exceeded, a risk assessment must be carried out to serve as a basis for assessing the risk management measures to be taken. 1b Local coordinator for operational risk 2 Handels banken Risk Control 3 Handels banken Internal Audit1a Business operations Exchange of experience Three lines of defence G2 cont. 199Handelsbanken Annual Report 2025 3.1
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Self-assessment for operational risk The units make use of methods and processes for identifying, assessing and managing opera - tional risk based on self-evaluations. The Group-wide operational risk analysis process and methodology supports the entities in sys - tematically and regularly identifying opera - tional risks in their individual areas of responsi - bility. Identified risks are assessed according to a Group-wide assessment scale and docu - mented in a risk register. Operational risk analyses also support entities in regularly monitoring and reporting operational risks. ORX The Bank is a member of the Operational Risk - data eXchange Association (ORX). The main purpose of ORX is for participating banks to exchange anonymised data concerning inci - dents leading to operational losses. ORX also has an important function in standardising and ensuring the quality of data on operational risk. Extensive research is being done on methods regarding operational risk, and ORX is an impor - tant forum for the exchange of experiences. IT operations in the Handels banken Group The Bank’s operations are dependent on the availability and security of its IT systems and the Bank’s ability to maintain a high level of digital operational resilience in the Bank’s digi - tal services. The CEO establishes guidelines relating to the overall goal and strategy of IT operations in the Handels banken Group. Oper - ational risk in this area is managed according to the same procedures as in other parts of the Bank, with the addition of special procedures for identifying and managing ICT -related oper - ational risks within the area. These include: • monitoring IT systems and digital services • management of IT incidents • management of new or changed IT systems • monitoring and management of cyber threats and data breach risks • implementation of security tests • implementation of risk analyses of IT systems • screening and monitoring supplier arrange - ments, including as regards information and IT security • continuity management of IT systems. • testing and exercises of the digital opera - tional resilience. Security and data protection Security and data protection activities at Handels banken aim to safeguard the safety, security and privacy of both employees and customers, and to protect customers’ and the Bank’s assets, and the good name and reputa - tion of the Group. In its operations, a bank continuously processes sensitive information about customers and customer relationships. The overall aim of Handels banken’s informa - tion security efforts is to protect this informa - tion based on its availability, accuracy, confi - dentiality and traceability. This also encom - passes physical protection, personal safety and protection of sensitive activities and clas - sified information. Information and business systems must be available based on the busi - ness requirements of the operations. The CEO establishes guidelines for security and data protection at Handels banken. All employees of the Bank are responsible for compliance with the rules for protection of information, and all managers are responsible for compliance with the rules on security and data protection in their own area of responsibility. The Bank engages in systematic data protection and security work that meets requirements and heads off possible threats and risks, and there are procedures for managing changes in the IT and physical environment that could have a negative impact. In the case of deficient man - agement, or if information were to be leaked by mistake, the consequences could be serious, including weakened confidence in the Bank or financial losses. Within the framework of the systematic work, structured development is under way to increase the level of awareness among employees and customers concerning the threats and risks in security, through pre - sentations, training programmes and informa - tion initiatives. Security and data protection cover administrative solutions such as rules and instructions, technical security solutions, physical protection, and protection of sensitive activities and classified information. Security activities are conducted based on an information security management system that follows international standards, such as ISO 27001. Handels banken’s information secu - rity work is certified according to ISO 27001. The Bank’s management system for infor - mation security is based on ISO 27001 together with the Standard of Good Practice developed by the Information Security Forum (ISF), an organisation which counts many of the largest companies in the world as mem - bers, as standard providers. The work with data protection, information and IT security is pursued systematically, and the Bank works with this from a process perspective, where security testing and risk analysis play a central role. Risk analyses employ the various meth - ods from ISF’s Information Risk Analysis Methodology (IRAM2) and the Privacy Impact Analysis (PIA). The Handels banken Group’s physical safety measures include protection against fire, pro - cesses and procedures concerning threats to employees and employee protection, travel safety, perimeter protection, the Bank’s liability and property insurance cover, as well as exter - nal environment monitoring and instructions. Instructions within the Group for managing risks related to physical safety require, among other things, that a fire evacuation review be carried out at least annually and be followed up via the annual work environment survey. G2 cont. Breakdown of loss amounts over SEK 25,000 by number, 2021–2025 % Execution, delivery and process management 58 Business disruptions and system failures 5 Clients, products and business practices 4 External fraud 32 Damage to physical assets 0 Employment practices and workplace safety 1 Internal fraud 0 Breakdown of loss amounts over SEK 25,000, 2021–2025 % Execution, delivery and process management 35 Business disruptions and system failures 3 Clients, products and business practices 40 External fraud 22 Damage to physical assets 0 Employment practices and workplace safety 0 Internal fraud 0 200 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Financial crime The Bank works constantly to minimise the risk of the Bank’s customers, products or services being exploited for financial crime. Financial crime includes money laundering, terrorist financing, tax evasion, corruption, fraud and breaches of international sanctions. The work is managed by a central department that reported to the Bank’s specially appointed executive with Group-wide responsibility for the work to prevent financial crime in accor - dance with the Swedish Act on Measures against Money Laundering and Terrorist Financing. Starting points for these efforts to combat financial crime are the Bank’s low tolerance of risk and the body of external regulations addressing financial crime in the countries where the Bank operates. The Bank also has a separate compliance department for financial crime, which also has Group-wide responsibility, and prepares Group-wide instructions, and monitors and acts in an advi - sory capacity in the Bank’s work to counteract financial crime. The department is headed up by the Bank’s central function owner. For fur - ther information on the Bank’s work to coun - teract financial crime, refer to Handels banken’s Corporate Governance Report on pages 42–55. Change management The change management area covers new or materially changed products, services, mar - kets, processes and IT systems, or when there are material changes in the Group’s operations or organisational structure. The activities and actors involved in the process are described in the Bank’s instructions and approval process for change management, which also describe how and when to involve the control functions. The process also includes requirements that risk analyses are carried out and that these consider, for example, areas such as financial crime, environment and climate, information security and data quality. Decisions related to changes must also be documented. Essential processes Essential processes refer to processes which are of material importance for providing sup - port to the Bank’s critical business operations. The Bank’s essential processes are reviewed for relevance each year and in conjunction with material changes, and are updated where necessary, as well as being subject to a risk assessment. The identification of essential processes is fundamental to the scope of the Bank’s con - tinuity management, i.e., which parts of the operations are to be prioritised in the event of disruptions or stoppages. Continuity planning and crisis management The purpose of the Bank’s continuity planning and crisis management is to ensure that the Bank is well prepared to continue its business operations in the event of an unpredictable sit - uation. This means that preparatory measures must be taken to mitigate the effects of a seri - ous disruption on the business operations, such that these can continue at an acceptable level for the duration of the disruption. The CEO’s guidelines for continuity planning and crisis management and supplementary instructions state that consequence analyses are to be performed each year, in order to ascertain which operations and IT systems are of such critical importance that they require continuity plans. The continuity plans include planning the maintenance of operations during the disrup - tion and recovery to normal operations. For essential processes, the plans must include the longest permitted duration of a stoppage. There is a Central Crisis Team for the entire Group. In addition, crisis teams are to be established in some subsidiaries and units. Work in the crisis functions is to be undertaken according to special crisis manuals. Continuity plans and crisis manuals must be revised on an annual basis at a minimum. The plans must be tested each year, at a minimum, and crisis drills are carried out by the units required to have crisis functions. The work is evaluated annually and reported to the Board as part of the overall reporting of the Bank’s digital operational resilience. Handels banken also participates in the vol - untary work organised by the Swedish financial sector’s private-public partnership organisa - tion (FSPOS) to strengthen the sector’s capacity to manage disruptions and stoppages. One FSPOS exercise was carried out in 2025. Supplier arrangements The Bank has a designated process for man - aging supplier arrangements, including out - sourcing agreements, within the Group. As the starting point, the Bank applies a risk-based working method, taking into account the Bank’s low risk tolerance, in assessments prior to decisions on supplier arrangements and their administration. According to the guide - lines issued by the CEO, outsourcing agree - ments related to operations of material sig - nificance and other supplier arrangements deemed to entail a high risk for the Bank are to be treated as particularly important. These guidelines also apply to contracts for informa - tion and communication technology (ICT) ser - vices that support critical or important func - tions. The guidelines apply throughout the Handels banken Group and also cover the sub - sidiaries in the Group. Reputation risk, conduct risk and training Reputation risk is the risk of losses due to a deterioration of confidence in the Bank. This may occur for reasons such as deficiencies in ethical standards, inappropriate actions, poor information or badly planned development of new or changed products. Handels banken manages and minimises reputation risk in its operations through proactive business intelli - gence and accompanying, relevant corrective action when needed, and by conducting oper - ations to a high ethical standard. In 2025, three training programmes were mandatory for all employees in the Group: Financial Crime, GDPR, and Security Training – Cybersecurity. In addition, the Bank’s different units have other locally adapted mandatory training courses. Handels banken’s low risk tolerance is also reflected in its approach to employee benefits. The Bank regards fixed remuneration as con - tributing to sound operations, so this is applied as a fundamental rule. G2 cont. 201Handelsbanken Annual Report 2025 3.1
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Compliance risk Compliance risk refers to risks associated with non-compliance. Compliance refers to the observation of and compliance with external and internal rules and regulations, accepted market practice and rel - evant standards that are together applicable to the Bank’s licensed operations. Compliance risk is the risk associated with the Bank’s fail - ure to comply with this framework, and the consequences that this could have for the Bank in the form of sanctions, material financial loss or loss of reputation. Handels banken has a low tolerance for compliance risks and must prevent these risks as far as possible and pri - oritise the work that needs to be carried out to quickly address any risks which have been identified. A compliance risk is beyond risk tolerance if the Compliance function deems that the risk is major or critical, and is of the view that there is no adequate action plan, or that there are material deviations from the existing action plan. Organisational structure The responsibility for compliance in the opera - tions is an integral part of managerial responsi - bility at all levels of the Group, and is allocated at unit/department level. Function managers and product managers have a special respon - sibility for ensuring that work in each area of responsibility throughout the Group is carried out in accordance with internal and external rules and regulations, including the responsibil - ity to follow up compliance with the Group- wide instructions that they issue within their areas. Handels banken Legal is responsible for providing legal support to the business, and for carrying out the requisite legal assessments, including definitive interpretations of regula - tions, on behalf of other units. It is also respon - sible for coordinating work involving legal sup - port and legal assessments at the central and local levels. Within the Handels banken Group, managers and employees must have a sound awareness and understanding of the require - ments imposed through internal and external rules, as well as the risks associated with non-compliance, and must seek support from Handels banken Legal or a local legal function for the requisite legal assessments. The Compliance function – Handels banken Compliance – is the control function responsi - ble for identifying, monitoring, controlling and reporting on compliance risks in relation to the Bank’s licensed operations. The Head of Handels banken Compliance reports directly to the Chief Executive Officer. The function is organisationally divided into Handels banken Compliance, which generally also includes local compliance units, and into local units in certain subsidiaries. Handels banken Compli- ance also includes specifically defined roles such as the Appointed Officer for Controlling and Reporting Obligations according to the applicable money laundering and terrorist financing regulations, and the Data Protection Officer (DPO) according to the applicable reg - ulations on data protection and personal data processing. Risk-based work The Compliance function applies a risk-based approach to its work. In practice, this means that the function performs an annual overall risk assessment aimed at identifying the areas on which the function is to focus its activities. The Head of Handels banken Compliance reports on the current risk situation in the Group to the Chief Executive Officer, the Risk committee and the Board every quarter. This includes the report from the Appointed Officer, as well as the DPO. Risk in the remuneration system Remuneration risk is the risk of loss or other damage arising due to the remuneration system. The remuneration system At Handels banken, remuneration is estab - lished individually when an employee takes up a new position and in local salary reviews. Remuneration takes into account the collec - tive bargaining agreements that are binding for Handels banken or corresponding local standardised contracts or agreements. It is based on the Bank’s model for setting salaries and the salary-setting factors it specifies: the nature and level of difficulty of the work, com - petency and skills, work performance and results achieved, leadership, the market, and being a cultural ambassador for the Bank. These principles have been applied for many years. They mean that managers at all levels participate regularly in salary processes, and take responsibility for the Bank’s salary policy and the growth in their own unit’s staff costs. To ensure that Handels banken has a well-designed remuneration system, risks in the remuneration system are managed as a separate risk class, with the risk management following the same allocation of responsibilities as other types of risk. Handels banken has low tolerance of remuneration risks and actively strives to keep them at a low level. Performance- based variable remuneration must be applied with great caution and is not offered to employ - ees who, in their professional roles, can have a material impact on the Bank’s risk profile. In 2025, a provision of SEK 49 million (49) was made for performance-based variable remuneration. Organisational structure and responsibility The principles for the Bank’s remuneration system are stipulated in the remuneration pol - icy decided on by the Board. More detailed guidelines and implementation directives are decided by the Chief Executive Officer. Handels banken Compliance reviews these steering documents to ensure observance of the regulations applying in this area. The responsibility for identifying and managing remuneration risks rests with every responsi - ble manager in the operations. Handels banken Risk Control ensures that the remuneration system and its application are evaluated every Performance-based variable remuneration 2025 2024 Earned performance-based variable remuneration¹, SEK m 49 49 Salaries and fees, SEK m 10,483 11,375 No. of persons able to earn performance-based variable remuneration² 137 137 Average number of employees 11,888 12,703 Earned performance-based variable remuneration, as a proportion of total salaries and fees, % 0.5 0.4 Earned performance-based variable remuneration, as a proportion of common equity tier 1 capital, % 0.04 0.03 No. of persons able to earn performance-based variable remuneration as a proportion of average number of employees, % 1.2 1.1 1) The amounts are excluding social security costs. The amounts are determined after the Annual Report is published. 2) The number of persons who are allocated performance-based variable remuneration is determined after the Annual Report is published. Of the 137 persons who were able to earn performance-based variable remuneration in 2024, 127 received an allocation. G2 cont. 202 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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year from a risk perspective. This evaluation must also include an analysis of the impact of the remuneration system on the Bank’s risk, capital and liquidity situation. Risks in the remuneration system Handels banken’s remuneration policy and remuneration system are deemed to generate low risks, align with the Bank’s low tolerance of risks and support the Bank’s long-term inter - ests. The remuneration system has a low impact on the Bank’s financial risk, capital and liquidity situation. The total amount reserved for performance-based variable remuneration to employees in the Handels banken Group must not exceed 0.4% of the Handels banken Group’s common equity tier 1 capital during any given year. The data for the calculation of performance-based variable remuneration is risk-adjusted based on an assessment of present and future risks. There are rules about deferring the disbursement of variable remu - neration and for completely or partly reducing the allocated deferred variable remuneration. For more detailed information and statistics about the Bank’s remuneration system, see the Corporate Governance Report and note G8 in the Annual Report. Risk in the insurance operations The risks in the insurance operations mainly comprise market risks and insurance risks. Handels banken conducts life insurance opera- tions in its subsidiary Handels banken Liv. Handels banken Liv’s contracts are comprised of unit-linked insurance and portfolio bond insurance, risk insurance contracts (primarily in the form of health insurance, waiver of pre - mium insurance and death insurance), as well as traditional life insurance contracts. Handels banken Liv has a low risk tolerance and follows the Bank’s risk management prin - ciples. The risks in the insurance business primarily comprise market risks and insurance risks. For a description of the Bank’s risk man - agement, risk organisation and reporting and monitoring of risk, see the introduction to this note and the relevant risk sections of this note. Handels banken Liv’s risk policy sets out the risks to which the company is exposed, defines the Board’s tolerance regarding these risks and stipulates the principles and internal rules for risk management. The principles for identifying, measuring, taking action on and reporting risks are also regulated in the policy. Handels banken Liv’s investment policy restricts exposure to financial risks and pro - vides overall instructions on the management of assets given the obligations to its policy - holders and statutory requirements. It also provides instructions on how governance and control of the investments are to be implemented, and how the total risk level in the assets is to be managed. Assets are to be invested in a prudent manner so that risks can be identified, measured, analysed, and reported. The risks in the insurance operations are reported to the board and CEO of Handels - banken Liv, the Board and CEO of the Bank and Handels banken Risk Control. Market risk Market risk refers to the combined risk that changes in risk factors in financial markets – such as changes in interest rates, equity prices, or exchange rates – will result in changes in the value of the company’s invest - ment assets and/or its commitments. Market risk primarily arises in traditional life insurance and indirectly from unit-linked insurance and portfolio bond insurance contracts under which the policyholders bear the risk of change in value but for which the Bank’s fee and commission income is impacted by the value of the assets managed. For a description of material market risks arising in traditional life insurance and risk insurance reported in accordance with IFRS 17, see note G36. Credit risk Credit risk primarily arises in traditional life insurance. For a description of credit risks arising in traditional life insurance reported in accordance with IFRS 17, see note G36. Liquidity risk Liquidity risk primarily arises in traditional life insurance. For a description of liquidity risks arising in traditional life insurance reported in accordance with IFRS 17, see note G36. Insurance risk Insurance risk refers to risk other than finan - cial risk that is transferred from the policy - holder to Handels banken Liv. Insurance risks primarily arise in traditional life insurance and risk insurance. For a description of material insurance risks arising in traditional life insur - ance and risk insurance reported in accor - dance with IFRS 17, see note G36. External capital requirements Handels banken Liv applies the Solvency 2 regulations, which is a risk-based framework, to establish own funds and capital require - ments in order to ensure that the insurance company has adequate capital for meeting its obligations to policyholders even when unfore - seen negative events occur. Handels banken Liv applies the regulatory standard formula for its entire insurance portfolio. The ratio between own funds and the capital requirement is to exceed 1 by a healthy margin at any time. The solvency capital requirement amounted to SEK 12,868 million (12,849) as at 31 December 2025, and own funds amounted to SEK 29,800 million (28,431), which resulted in a solvency ratio of 2.32 (2.21). The minimum capital requirement amounted to SEK 3,217 million (3,212) as at 31 December 2025. Handels banken Liv carries out an own risk and solvency assessment (ORSA) at least once a year to forecast future capital requirements based on given scenarios and stress tests. Sustainability risks The risk of financial loss or a tarnished reputation due to factors related to the environment and climate, social responsibility as well as governance issues. Sustainability risks arise from the impact of sustainability-related risk factors on the tradi - tional risk classes, such as (1) environment and climate including physical climate change, transition to a sustainable economy and bio- diversity, (2) social responsibility including human rights, labour, gender equality and information security of personal data, and (3) governance including anti-corruption and combating bribery. The Bank’s sustainability risks mainly arise indirectly through the Bank’s credit granting, as described in this section. In addition, there are operational risks related to shortcomings in the processing of customer data or major dis - ruptions to service deliveries, as well as finan - cial crime that could lead to a loss of confi - dence in the Bank and potential fines or sanctions should the Bank fail to perform its duties. These risks are described in more detail in note G2 in the Operational risks section. G2 cont. 203Handelsbanken Annual Report 2025 3.1
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Sustainability risk strategy The Board stipulates in Handels banken’s pol - icy for sustainability that responsible actions are essential to long-term value creation at Handels banken and for maintaining confi - dence in the Bank. By integrating sustainabil - ity into the Bank’s operations, the Bank can contribute to a long-term stable and responsi - ble development that benefits customers, society and the climate. Sustainability risks are to be managed in line with Handels banken’s generally low risk tolerance and comply with the risk tolerance for the risk classes in which sustainability risks are an integral part of the risk assessment. The Board’s policy forms the basis for a number of guidelines issued by the Chief Executive Officer that regulate in more detail how the Handels banken Group is to act in relation to environment and climate change, forestry and agriculture, human rights and labour, the weapons and defence industry, the tobacco industry, financial crime, supplier arrangements, tax management, and security and data protection. Handels banken’s primary operations are granting credit, and sustainability aspects are part of the Bank’s credit policy. The policy states that sustainability risks related to envi - ronmental, climate, social and governance fac - tors are to be an integral part of the credit risk assessment. The credit policy also states that lending must be responsible and meet high ethical standards. Handels banken shall enable and create the conditions for customers to make the transi - tion through the Bank’s products, services and advisory services. In doing so, Handels banken can help to indirectly reduce negative impacts on the environment and climate, and increase positive impacts. Handels banken shall also work to reduce its own direct environmental and climate impact. Organisational structure The Board and the Chief Executive Officer set out the basic principles and frameworks for the Group’s sustainability activities. The Chief Executive Officer has delegated the functional responsibility for sustainability in the Handels - banken Group to the Head of Handelsbanken Savings and Financing, who reports to the CEO. Under the Head of Handelsbanken Sav - ings and Financing, there is a Groupwide spe - cialist function, Handels banken Sustainability, that has the operational responsibility for coor - dinating sustainability activities at the Bank and supporting the business in integrating sus - tainability into its operations and in identifying significant sustainability risks. Handels banken’s sustainability work is decentralised and carried out wherever the Bank’s business and operational decisions are made. The responsibility for identifying and managing relevant sustainability risks is there - fore an integral part of managerial responsibil - ity at all levels in the Handels banken Group. Coordination between the Bank’s units takes place through such forums as Handels - banken’s Sustainability committee, which is headed by the operating sustainability man - ager under the responsibility of the Head of Handelsbanken Savings and Financing and includes executives from the business opera - tions and central departments. The scope of the Sustainability committee’s work includes proactively identifying and addressing busi - ness opportunities as well as sustainability risks and other potential issues. Handels banken Finance and the CFO, who is a member of the Bank’s Executive Team, are responsible for sustainability reporting. The CFO reports on the Bank’s sustainability activities to the Chief Executive Officer and the Board’s Audit committee every quarter to ensure that these activities are in line with the Bank’s over - all business goals and risk management. The Group’s sustainability risks are also reported to the Chief Executive Officer’s Risk and Compli - ance Committee at least once a year. G2 cont. Various types of sustainability risks Handels banken takes sustainability risks into account when assessing all traditional risk classes. An illustrative description of how sustainability risks could potentially negatively impact the Bank’s operations and customers is presented below. The Bank’s overall assessment is that sustain - ability risks have the greatest potential impact on credit risks and operational risks. Accordingly, sustainability risks are described in note G2 only under the sec - tions on these risk classes and not under the sections on other risk classes. • Credit risk Sustainability-related risks and events may, depending on the extent to which they can be preventively managed, result in a weakening of a customer’s financial position and the value of the collateral for the credit. Physical climate risks could cause damage to real property and transi - tion risk from new regulations could result in adjustment costs. Deficiencies in terms of environmental, social and legal matters among the Bank’s customers may result in higher credit risks. • Liquidity risk An increased level of sustainability-related risks to the Bank’s assets could risk im - pairing the Bank’s funding capabilities or increasing the cost of funding. An unex - pectedly high transition rate, restoration following acute physical climate risk events or other types of events linked to sustain - ability factors could led to unusually strong lending growth and thus increased funding requirements for the Bank. • Market risk Major sustainability-related risks could lead to a negative change in the value of finan - cial assets, such as shares and bonds in the pension scheme. The Bank’s management of market risks could be affected by weaker market liquidity and increased volatility due to uncertainty about the future. At the national level, interest rates and exchange rates may be affected by how the country is expected to suffer from acute and chronic climate events and the assessment of the country’s willingness and capacity to transition. • Operational risks including reputation risk Operational losses may arise due to events resulting from, for example, shortcomings in information security regarding personal data, financial crime or weather-related business disruptions. The risk of impaired reputation and decreased customer satis - faction could increase if the Bank or those customers receiving financing are deficient from a sustainability perspective. This could be the case if the Bank is perceived to be guilty of greenwashing its products and the level of ambition communicated for its sus - tainability activities. • Compliance risk Non-compliance regarding sustainability could lead to sanctions or loss of reputation for the Bank. 204 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Management of sustainability risks at Handels banken Managing sustainability risks follows the Bank’s decentralised model, and the Bank’s business operations assume the primary responsibility for identifying sustainability risks and managing them under the framework of established risk management processes. By including sustainability risks in the Bank’s change process, material sustainability risks can be prevented from entering and negatively impacting the Bank. In lending, sustainability aspects, including physical climate risks and transition risks, form an integral part of the Bank’s decision-making process since these aspects could affect both repayment capacity and the assessment of collateral. The magnitude of these risks to the customer and the customer’s ability to manage them are key factors in the Bank’s credit risk assessment in each individual case. An import - ant component in managing the Bank’s sus - tainability risks is also supporting customers in their transition to more sustainable operations. A high proportion of the Bank’s lending is collateralised with real estate. Physical climate risk can cause damage to and reduce the value of properties, increase repair and insur - ance costs or reduce the income generated from properties used for rentals or in other operations. Similarly, transition risk can result in adjustment costs for energy-efficiency measures or reduce the value of the property if investments are not made. By supporting customers, for example, through providing funding and advisory services, the Bank can work together with them to reduce these risks. The Bank’s financial resilience to climate risks is analysed based on scenario analyses, among other things, including stress tests for exposures collateralised with real estate. For physical climate risks, exposure to mainly flood risk from watercourses and sea-level rise was examined. The analysis indicated limited exposure to these risks. There is gen - erally a higher risk of flooding in the UK than in the other home markets. For transition risk, the changed credit risk for the Bank’s cus - tomers was examined due to the fact that the EU Energy Performance of Buildings Directive (EPBD) sets requirements for energy effi - ciency improvements in buildings. The analy - sis of the potential impact of the regulations on the value of the collateral showed a low risk of credit losses. Furthermore, stress tests analyse the impact of a transition to a net-zero macroeconomy on the credit risk of the Bank’s customers. This analysis also indicated low credit losses. For a more detailed description of the scenario analyses and their results, see section ESRS 2 IRO-1 E1 on pages 72–74 of the Sustainability statement. More information about sustainability risks is also available in the ESG Prudential disclosures section of the Bank’s Pillar 3 report. Economic capital Handels banken’s model for calculating economic capital (EC) identifies in one measurement the Group’s overall risks and indicates the capital which, with very high probability, will cover unexpected losses or decreases in value. Handels banken Risk Control is responsible for comprehensive monitoring of the Group’s various risks. The Bank’s model for EC is an instrument in this monitoring. It is also part of the Bank’s assessment of the internal capital requirement which is reported quarterly to the Board. This assessment is intended to ensure that the Group has sufficient capital at all times in relation to all risks in the Group. The Group perspective means that economic capital also includes risks in the insurance operations and risks in the Bank’s pension obligations. Economic capital is calculated with a time horizon of one year and a confidence level that reflects an acceptable level of risk and desired rating. The Board has determined that the cal - culation of economic capital must be made with a 99.97% confidence level, which cap - tures an event which is extremely unfavourable for the Bank. EC is the difference between the outcome in an average year – with positive results and good growth in the value of the Bank’s assets – and the outcome at a 99.97% confidence level. Diversification effects between the different risk classes are taken into account when cal - culating EC. Since the risks are partly indepen - dent of each other, the capital requirement for all risks is lower than the sum of the economic capital for each individual risk. The capital and other financial resources which form a buffer that can absorb negative outcomes are called available financial resources (AFR). AFR is Handels banken’s equity with the addition of other financial val - ues on and off the balance sheet, available to cover losses with a one-year time horizon. In risk and the capital situation, the Group applies a shareholder perspective. The economic capital model provides an overall view of the Group which makes it possible to optimise the risk and capital situation from the shareholder’s perspective. The outcome of the calculations plays an important role when new transactions or structural changes are considered. Credit risk is calculated using simulated out - comes of default for all the Group’s counter - parties and exposures. Market risks comprise the risk in the assets classified as the trading book, the interest rate risk in the banking book, market risks in the insurance operations, and the risk in share - holdings in the banking book. The risk in the pension obligations mainly consists of the risk of a decrease in the assets that exist for securing the Bank’s defined bene - fit pensions, and the fact that the values of these obligations are sensitive to interest rates. Most of the pension obligations are in Sweden and are secured there in a pension foundation and an occupational pension association. The other risks are operational risk, business risk, property risk and insurance risk. Business risk is related to unexpected changes in finan - cial performance in each business area. For example, these may arise due to demand or competition changing unexpectedly, thus resulting in lower volumes and squeezed mar - gins. Property risk captures the risk of a fall in the value of the properties which the Bank owns. At year-end, EC was SEK 55.5 billion (58.9), of which credit risks accounted for the main part of the total risk. The Board stipulates that the AFR/EC ratio should be at least 120%. The ratio was 357% (383) at year-end, which illustrates that the Bank is well-capitalised in relation to its overall risks. The Swedish Finan - cial Supervisory Authority has come to the same conclusion in its overall capital assess - ment of the Bank. The risk and capital situation reported is a snapshot picture, even though the risk calcula - tions include margins of conservatism for busi - ness cycle fluctuations. To perform a final assessment of the Group’s capital adequacy requirements, consideration must also be given to the stress and scenario analysis car - ried out as part of the Bank’s capital planning. G2 cont. 0 50 100 150 200 ECAFR Total of AFR and EC including diversification 2025 SEK bn Risk in pension obligations Non-financial risks Market risk Credit risk 205Handelsbanken Annual Report 2025 3.1
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Capital planning Handels banken’s capital planning aims to ensure that the Group has the right amount of financial resources available at all times. The capital requirement is a function of the Group’s risks, expected development, the regu - lations and target ratios, Handels banken’s model for EC and stress tests. The Bank’s capi - tal requirement is reported weekly to the CFO and the CEO and at least quarterly to the Board. As part of proactive capital planning, there is a contingency and action plan with specific measures that can be taken if the Bank needs to improve its capital position. The purpose of the contingency and action planning is to ensure that there is a warning system that identifies potential threats at an early stage and that the Group is prepared to take rapid action, if necessary. At least annually, a long-term capital plan is drawn up, which is designed to give a compre - hensive overview of the Group’s current capi - tal situation, a forecast of expected capital performance, and the outcome in various sce - narios. These scenarios are designed to sub - stantially differ from expected events and thus harmonise with the Group’s low risk tolerance. The capital plan also contains proposals for how to maintain the capital situation at a satis - factory level in a strongly negative business environment, from both a regulatory and shareholder perspective. The capital planning is divided into short- term and mid- to long-term forecasting. The part of capital planning that comprises short- term forecasts up to two years ahead princi - pally focuses on assessing existing perfor - mance and the development of the capital requirement. This forecasting is necessary to enable continual adaptation of the size and composition of own funds. Capital planning is performed through ongo - ing analysis of changes in volume, risk and performance, and by monitoring events that may affect the capital requirements and capi - tal level. Short-term forecasting includes all sub-components that make up the Group’s own funds and, in addition to the regulatory minimum requirements and buffers, the capi- tal requirement includes a Pillar 2 requirement, the leverage ratio requirement and the mini - mum requirement for own funds and eligible liabilities (MREL). The forecasting work also includes conducting various sensitivity analy - ses, with a short-term perspective, of the expected change in the capital adequacy requirement and own funds. The Bank can thus be prepared to alter the size and com - position of its own funds if required – for example, through market operations. The result of the short-term analysis forms the basis of any capital operations performed and is reported weekly to the CFO and the CEO and, if necessary, to the Board. The anal - ysis is based on a baseline scenario, with deci - sion points in the near future for how existing earnings capacity can cope with various changes in volume, as well as other effects that are expected to impact the capital situa - tion. The weekly reporting also includes sensi - tivity analyses based on various market factors that could impact the baseline forecast. The part of capital planning that comprises mid- to long-term forecasts aims to ensure compliance with statutory capital adequacy requirements and that the Group’s available financial resources (AFR) at all times cover by a good margin all risks calculated according to the EC model. The long-term forecast also includes an assessment of the trend for the Bank’s overall capital over the period: the minimum require - ments, the combined buffer requirements, the Pillar 2 requirement, the leverage ratio require - ment and the MREL requirement. The objective is to forecast the expected performance and judge whether the Bank’s resilience is satisfac - tory in various scenarios. The planning horizon is at least five years and takes account of the Group’s overall business performance trend. A baseline scenario forms the foundation of the long-term capital forecast. This scenario is obtained from expected performance in the next five years regarding profit, volume growth, financial assumptions such as credit losses, and performance of the equity, prop - erty and fixed-income markets. The baseline scenario is then compared to the outcomes in a number of business cycle and crisis scenar - ios. The stress scenarios have been estab - lished following analysis of the historical links between the impacts of different macroeco - nomic variables on the financial markets and have been selected by using the scenarios expected to have the most severe impact on Handels banken. The prevailing macroeconomic situation is a combination of a trade war, which is resulting in weaker global trade, and geopo - litical risks. Lower consumption, a cooler busi - ness climate and a weaker Swedish labour mar- ket can be seen in the wake of this. These are factors that are included the Bank’s forecasts and analysed from the Bank’s perspective. At the end of 2025, the common equity tier 1 ratio was 17.6% (18.8). The ratio between AFR and EC was 357% (383) at the same date. Thus, AFR exceeds the assessed internal capital requirement (EC) by a very good margin. The Bank’s strong position is further empha - sised by the result of the various forward-look - ing stress scenarios which are carried out, showing that Handels banken’s long-term capital situation is very stable from both a financial and regulatory perspective. Capital planning also monitors regulatory developments and assesses the impact and needs arising due to additional new requirements. The Group’s regulatory capital targets The Board continuously sets the targets for the Bank’s capitalisation. A cornerstone of the internal capital requirement assessment of the regulatory capital situation is stress and sce - nario analysis of the Bank’s situation, both long- term and short-term. The scenarios used are principally based on the Bank’s internal risk tolerance and the direct requirements resulting from the regulations and other requirements from public authorities. In addition to the inter - nal assessment of the capital requirement, the Swedish Financial Supervisory Authority has communicated that the target figures of Swed - ish banks must not be lower than the total assessed capital requirement calculated by the Supervisory Authority, regardless of the banks’ internal calculations. The Bank has taken this into account when setting the target figures for the regulatory capitalisation. The Board has decided that the common equity tier 1 ratio, which is the most relevant measure for the governance of the Bank under the current regulatory framework, under nor - mal circumstances must be between 1 and 3 percentage points above the total common equity tier 1 capital requirement communicated to the Bank by the Swedish Financial Supervi - sory Authority. The other capital tiers (the tier 1 ratio and the total capital ratio) must be at least 1 percentage point above the total capital assessment communicated to the Bank by the Swedish Financial Supervisory Authority for the respective capital tiers. The leverage ratio must be at least 0.6 percentage points above the total capital requirement communicated to the Bank by the Swedish Financial Supervisory Authority. In addition, the Bank must fulfil all other capital requirements imposed by public authorities. Moreover, the Board has decided that “the dividend level must not lead to the capital ratios falling below a level of 1 percent - age point above the requirements communi - cated by the Swedish Financial Supervisory Authority”. In the Bank’s assessment, the Swedish Financial Supervisory Authority’s common equity tier 1 capital requirement at the end of the fourth quarter was 14.7%. G2 cont. 206 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G3 Net interest income SEK m 2025 2024 Interest income Loans to credit institutions and central banks 24,882 34,514 Loans to the public 86,469 104,409 Interest-bearing securities eligible as collateral with central banks 5,103 8,491 Bonds and other interest-bearing securities 2,356 2,362 Derivative instruments 11,663 23,545 Other interest income 408 354 Total 130,882 173,675 Deduction of interest income reported in net gains/losses on financial transactions −1,503 −2,550 Total interest income 129,379 171,125 of which interest income according to effective interest method and interest on derivatives in hedge accounting 115,233 150,587 Interest expenses Due to credit institutions and central banks −4,007 −3,362 Deposits and borrowing from the public −27,087 −42,684 Issued securities, etc. −45,433 −53,716 Derivative instruments −9,849 −25,760 Subordinated liabilities −1,581 −1,611 Deposit guarantee fees −303 −236 Other interest expenses −590 −505 Total −88,851 −127,874 Deduction of interest expenses reported in net gains/losses on financial transactions 2,014 3,591 Total interest expenses −86,837 −124,284 of which interest expenses according to the effective interest method and interest on derivatives in hedge accounting −81,405 −115,886 Net interest income 42,542 46,841 The derivative instrument rows include net interest income related to hedged assets and liabilities. These may have both a positive and a negative impact on interest income and interest expenses. G4 Net fee and commission income SEK m 2025 2024 Brokerage and other securities commissions 517 449 Mutual funds 5,893 5,980 Custody and other asset management fees 1,294 1,171 Advisory services 180 208 Insurance 813 776 Card payments 1,808 1,780 Payment processing 1,086 1,097 Loans and deposits 889 1,017 Guarantees 170 191 Other 766 582 Total fee and commission income 13,417 13,252 Securities −224 −318 Card payments −800 −785 Payment processing −317 −292 Other −214 −131 Total fee and commission expenses −1,554 −1,526 Net fee and commission income 11,863 11,726 207Handelsbanken Annual Report 2025 3.1
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Fee and commission income by segment 2025 SEK m Sweden UK Norway The Netherlands Markets Other Adjustments and eliminations Total Brokerage and other securities commissions 197 11 14 11 298 8 −22 517 Mutual funds 5,275 340 211 54 12 1 5,893 Custody and other asset management fees 960 36 162 112 1 23 1,294 Advisory services 0 51 1 133 6 −11 180 Insurance 769 2 43 0 −1 813 Card payments 1,564 77 179 −12 1,808 Payment processing 711 240 124 1 0 11 1,086 Loans and deposits 600 145 90 12 4 42 −3 889 Guarantees 85 14 32 1 39 −1 170 Other 750 3 5 1 299 1 −293 766 Total fee and commission income 10,910 919 862 192 734 129 −330 13,417 Fee and commission income by segment 2024 SEK m Sweden UK Norway The Netherlands Markets Other Adjustments and eliminations Total Brokerage and other securities commissions 164 9 13 15 254 11 −17 449 Mutual funds 5,211 345 226 74 181 −57 5,980 Custody and other asset management fees 870 40 131 103 1 26 1,171 Advisory services 50 1 179 8 −30 208 Insurance 756 1 19 1 −1 776 Card payments 1,550 82 160 −12 1,780 Payment processing 712 250 123 1 13 1,097 Loans and deposits 636 151 120 10 3 100 −3 1,017 Guarantees 98 14 36 1 43 −1 191 Other 559 4 4 1 314 2 −302 582 Total fee and commission income 10,557 945 832 207 752 373 −413 13,252 Fee and commission income refers to income from contracts with customers. Income from Brokerage and other securities commissions, Advisory services, Payments and Loans and deposits is generally recognised in conjunction with the rendering of the service, i.e., at a specific point in time. Income from Mutual funds, Custody and other asset management fees, Insurance and Guarantees is generally recognised as the services are rendered, i.e., on a straight-line basis over time. Assets under management SEK bn 2025 2024 Mutual funds, excl. PPM and unit-linked insurance 853 788 PPM 118 93 Unit-linked insurance 239 227 less external funds −1 −1 Total mutual funds 1,210 1,107 Structured products 4 3 Portfolio bond insurance 74 62 less Handelsbanken mutual funds and structured products −49 −35 Traditional insurance 5 6 less Handelsbanken mutual funds and structured products −5 −6 Discretionary and Institutional assets, excl. insurance 425 398 less Handelsbanken mutual funds and structured products −380 −343 Total assets under management, excl. securities in custody accounts 1,284 1,192 Securities in custody accounts, excluding mutual funds 925 810 Securities in custody accounts, excluding mutual funds, for foundations associated with Handelsbanken 40 36 G4 cont. 208 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G5 Net gains/losses on financial transactions SEK m 2025 2024 Amortised cost 415 605 of which loans 105 169 of which interest-bearing securities 0 of which issued securities 311 435 Fair value through other comprehensive income 1 0 of which interest-bearing securities – expected credit losses 1 0 of which interest-bearing securities – reclassified from other comprehensive income 0 Fair value through profit or loss, fair value option −525 −112 of which interest-bearing securities −525 −112 Fair value through profit or loss, mandatory incl. foreign exchange effects 1,992 2,949 of which assets held on behalf of policyholders 152 297 Hedge accounting −40 −43 of which net gains/losses on fair value hedges 5 −59 of which cash flow hedge ineffectiveness −45 15 Total 1,844 3,399 Less return on assets held on behalf of policyholders −152 −297 Net gains/losses on financial transactions 1,692 3,103 The accumulated value change due to changes in credit risk from initial recognition from financial assets which are classified at fair value through profit or loss, fair value option, amounted to SEK 91 million (-5). G6 Net insurance result SEK m 2025 2024 Insurance revenue 1,156 1,186 Insurance service expenses¹ −955 −992 Insurance service result 201 194 Result from reinsurance contracts held 10 −1 Financial income and expenses from insurance contracts −73 −67 Insurance result 137 126 Return on assets held on behalf of policyholders 152 297 Net insurance result 289 422 1) Acquisition costs are recognised directly in the income statement and amounted to SEK -11 million (-13). G7 Other income SEK m 2025 2024 Rental income 16 16 Other¹ 392 193 Total 408 209 1) The repayment of VAT attributable to prior years expensed in 2025 increased other income by SEK 196 million. The repayment of VAT attributable to prior years expensed in 2024 increased other income by SEK 52 million. The item Other also consists of various minor items for each year. 209Handelsbanken Annual Report 2025 3.1
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G8 Staff costs SEK m 2025 2024 Salaries and fees −10,210 −10,744 Social security costs −2,553 −2,599 Pension costs −1,459 −1,701 Provision for the profit-sharing scheme −142 −96 Other −836 −1,017 Total −15,200 −16,157 Deduction of staff costs attributable to insurance contracts¹ 75 78 Deduction of staff-related expenses capitalised as intangible assets² 349 348 Total staff costs −14,777 −15,731 1) Staff costs attributable to insurance contracts are recognised in Net insurance result, see Note G6. 2) Staff-related expenses capitalised and recognised as Intangible assets, see note G27. Salaries and fees SEK m 2025 2024 Executive officers¹ −145 −141 Others −10,065 −10,603 Total −10,210 −10,744 1) Executive officers and Board members in the parent company and CEOs, Executive Vice Presidents and Board members in subsidiaries, on average 51 people (51). Staff costs attributable to the discontinued operations in Finland are presented in note G14. Gender distribution 2025 2024 % Men Women Men Women Executive officers excluding Boards 70 30 65 35 of which in parent company 62 38 56 44 of which in subsidiaries 74 26 71 29 Boards 60 40 62 38 of which in parent company 54 46 54 46 of which in subsidiaries 61 39 64 36 Average number of employees 2025 2024 Total Men Women Total Men Women Sweden 7,083 3,473 3,610 7,462 3,639 3,823 UK 2,991 1,652 1,339 3,095 1,717 1,378 Norway 1,043 556 487 1,056 557 499 The Netherlands 471 304 167 458 292 166 USA 52 30 22 53 30 23 Luxembourg 50 23 27 53 29 24 Poland 8 2 6 14 3 11 Other countries 17 8 9 33 14 19 Total 11,715 6,048 5,667 12,224 6,281 5,943 The average numbers of employees attributable to the discontinued operations in Finland are presented in note G14. Remuneration¹ exceeding EUR 1 million No. of persons 2025 2024 Range EUR 1.0–1.5m 3 5 Range EUR 1.5–2.0m 1 1 Total 4 6 1) Including earned pension and other salary benefits. 210 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Remuneration¹ to risk-takers², business segments 2025 2024 SEK m Remuneration No. of persons Remuneration No. of persons Handels banken Sweden 449 284 441 288 Handels banken UK 363 173 413 187 Handels banken Norway 101 49 120 53 Handels banken Netherlands 80 41 88 45 Handels banken Markets 71 16 69 17 Other 333 116 386 119 Discontinued operations³ 38 15 142 38 Total 1,435 694 1,659 747 1) Earned remuneration, including pensions and other salary benefits, has been recognised as an expense in its entirety. 2) Employees whose duties can have a material impact on the Bank’s risk profile pursuant to the Commission Delegated Regulation (EU) 923/2021. There may be risk-takers or other specially regulated employees with variable remuneration in subsidiaries whose remuneration policy is subject to other EU regulations or regulations published by the Swedish Financial Supervisory Authority. 3) Discontinued operations in Finland. Remuneration¹ to risk-takers² 2025 2024 Executive Team³ Other risk-takers Executive Team³ Other risk-takers Earned fixed remuneration, SEK m 79 1,324 87 1,510 Earned performance-based variable remuneration, SEK m Earned other variable remuneration, SEK m 0 32 0 62 Total 79 1,356 87 1,572 No. of persons with fixed remuneration only 48 25 No. of persons who may receive both fixed and performance-based remuneration No. of persons with both fixed and variable remuneration 8 638 10 712 Total number of persons 8 686 10 737 Guaranteed variable remuneration recognised as an expense in connection with new employment, SEK m Contracted guaranteed variable remuneration recognised as an expense in connection with new employment, SEK m 1) Earned remuneration, including pensions and other salary benefits, has been recognised as an expense in its entirety. Performance-based variable remuneration is allocated at an individual level during the financial year after it is earned and is disbursed or deferred in accordance with the Bank’s policy for variable remuneration. No employees identified as risk-takers as a result of their duties earned performance-based variable remuneration in 2025. In addition to the above, two employees were identified as risk-takers in 2025 due to their remuneration level, with remuneration amounting to SEK 8.8 million. The payment of earned performance-based variable remuneration for the earnings year 2025 will take place in spring 2026. In 2024, one employee was identified as a risk-taker due to their remuneration level, and was awarded performance-based variable remuneration totalling SEK 0.5 million, of which SEK 0.2 million was paid in 2025. All performance-based variable remuneration is paid in cash or in financial instruments. The amounts are excluding social security costs. The right of disposal of the deferred remuneration transfers to the employee at the time of disbursement. Other variable remuneration refers to disbursements from the Oktogonen profit-sharing scheme and contracted termination benefits. The disbursement of remuneration from the Oktogonen profit-sharing scheme amounted to SEK 5 million (12). The amount is excluding social security costs. Total contracted termination benefits during the year amounted to SEK 28 million (50), with the highest individual amount being SEK 4.1 million (7.2). During the year, SEK 53 million (28) in termination benefits was paid to 20 (13) risk-takers. No guaranteed variable remuneration is paid. 2) Employees whose duties can have a material impact on the Bank’s risk profile pursuant to the Commission Delegated Regulation (EU) 923/2021. There may be risk-takers or other specially regulated employees with variable remuneration in subsidiaries whose remuneration policy is subject to other EU regulations or regulations published by the Swedish Financial Supervisory Authority. 3) According to the Swedish Financial Supervisory Authority’s regulations FFFS 2011:1. G8 cont. Employee benefits Information about remuneration principles for all employees in the Handels banken Group is provided in more detail in the Corporate Governance Report on pages 48–49. Pursuant to the Swedish Financial Supervi - sory Authority’s regulation FFFS 2011:1 and the European Commission Delegated Regulations (EU) 575/2013 and (EU) 923/2021, banks must identify employees whose professional activities have a material impact on the bank’s risk profile. Handels banken has identified 696 (748) employees who are risk-takers. The tables above present the Handels banken Group’s remuneration to these risk-takers pursuant to the aforementioned regulations. In 2025, the Handels banken Group had no employees whose duties have a material impact on the Bank’s risk profile, who earned performance-based variable remuneration. For the 2025 financial year, Handels banken has made a provision of SEK 142 million (96) for the Oktogonen profit-sharing scheme. Oktogonen profit-sharing scheme The Oktogonen profit-sharing scheme covers all employees in the Handels banken Group. The provision is classified as variable remuner - ation and is based on profitability metrics linked to Handels banken’s corporate goal being met and the Board’s overall assessment regarding the Bank’s performance. Disburse - ments are mainly made in cash to the employ - ees, or alternatively to a pension plan, savings plan or a combination of the two. Share-based payment All employees at Handels banken plc are covered by a Share Incentive Plan (“SIP”), in accordance with applicable UK law. Remuner - ation in the plan is settled in the form of shares in the parent company, Handels banken AB. A SIP requires that a UK-based trust is used to manage the share incentive plan on behalf of the company. A trust has thus been estab - lished, which is administrated by a SIP trustee. The trust acquires and allocates shares to the employees, and thereafter holds the allocated shares on behalf of the employees. The employees’ allocated shares must be vested in the SIP for a minimum of five years to prevent 211Handelsbanken Annual Report 2025 3.1
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tax consequences for the employees. Divi - dends received during the vesting period accrue to the employees. The conditions for an allocation to the SIP and the earnings conditions are identical to those for the Oktogonen profit-sharing scheme. The earning period is thus the pre - ceding financial year. See the Principles for remuneration at Handels banken section. Handels banken plc’s Board of Directors decides on the final allocation to the share incentive plan. During the 2025 financial year, share-based payments of SEK 22.0 million (54.7) have been charged to expenses for the 2024 earnings year, which has been recognised as an increase in equity. The Bank’s expenses for share-based payment cannot subsequently be changed. The payment has been settled via the purchase of 168,499 shares (531,263) in Handels banken AB in the market by the trust, on behalf of the employees, at an aver - age market price of SEK 124.5 (100.3) per share. See the Statement of changes in equity. Remuneration to executive officers Executive officers in Handels banken are Board members, the Chief Executive Officer, Execu - tive Vice Presidents, and other members of the Executive Team, see also the Corporate Governance Report on pages 52–55. The remuneration to executive officers of the par - ent company is in accordance with the guide - lines for remuneration established by the 2024 Annual General Meeting. See also page 50. Information regarding remuneration to, pen - sion obligations for, credits to and deposits from executive officers of Handels banken is provided on these pages. This also applies to the subsidiaries’ Chief Executive Officers, Executive Vice Presidents and Board members. Remuneration to executive officers of the Handels banken Group is paid only in the form of fixed salary and pension provisions, as well as customary benefits such as a company car. Following a special Board decision, the Bank can provide housing as part of the remunera - tion. The executive officers in question who are employed at the Bank are included in the Oktogonen profit-sharing scheme on the same terms as all employees of the Bank. No performance-based variable remuneration is paid. Executive officers who are employees of the Bank are entitled to convert salary to pen - sion on the same conditions as all employees. Board members who are not employees of the Bank or any of the Bank’s subsidiaries have only received a fee according to the decision of the AGM. Board members who are employees of the Bank or the Bank’s subsidiaries receive remu - neration and pension benefits by virtue of their employment. No further remuneration or pen - sion benefits are paid for serving on the Board. Information regarding fees to Board members in the parent company is shown on pages 52–55 of the Corporate Governance Report. The pension cost stated by the Bank in the remuneration information for executive offi - cers consists of the service cost relating to defined benefit pensions according to IAS 19 and the agreed premiums for defined contribu - tion pensions. Fees for serving on the boards of other companies on behalf of the Bank have been paid to the Bank. Remuneration to the Chief Executive Officer, Executive Vice President and Executive Team Fixed remuneration Variable remuneration Pension costs, defined benefit and defined contribution plans Fixed and variable remuneration, including pension costs Proportion fixed remuneration/total remuneration Basic salary Benefits SEK m 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Chief Executive Officer Michael Green ¹ 14.6 14.0 0.1 0.1 0.0 0.0 5.1 4.9 19.8 19.0 100% 100% Executive Vice Presidents Carl Cederschiöld ² 5.8 8.4 0.2 0.2 0.0 0.0 1.6 2.3 7.6 10.9 100% 100% Per Beckman ³ 9.6 9.6 0.3 0.3 0.0 0.0 3.4 3.4 13.3 13.3 100% 100% Other member of Executive Team⁴ 29.6 34.5 1.8 2.2 0.0 0.1 7.0 7.8 38.4 44.6 100% 100% Average number of persons; Chief Executive Officer, Executive Vice Presidents, Executive Team 8 10 Number of persons as at December; Chief Executive Officer, Executive Vice Presidents, Executive Team 8 9 The pension cost refers to pension earned under defined benefit pension plans in accordance with IAS 19, or alternatively paid premiums for defined contribution pension plans. An accrued defined benefit pension is vested and secured in the Bank’s pension foundation or assured in the Bank’s pension fund. If service ceases before retirement age, the person receives a paid-up policy for the defined benefit and/or defined contribution pension earned. Payments of variable remuneration in the form of the Oktogonen profit-sharing scheme took place in 2025. Before local taxes and social security costs, the amount was SEK 8,935 (20,499) per employee. 1) Defined contribution pension of 35% of salary since becoming Chief Executive Officer. Previously earned defined benefit pension is placed in a paid-up policy. 2) Executive Vice President between 2 February 2021 and 31 August 2025. Defined benefit pension according to the collective bargaining agreement, in combination with a defined contribution plan amounting to a maximum of 30% of salary above 30 income base amounts. The defined benefit pension is fully earned at the age of 65. 3) Defined contribution pension of 35% of salary. Previously earned defined benefit pension has been fully earned and is placed in a paid-up policy. 4) Other executive officers employed by the Bank receive a defined benefit or defined contribution pension according to collective bargaining agreements, in combination with a defined contribution plan amounting to a maximum of 35% of salary exceeding the income ceiling in the collective bargaining agreement. The defined benefit pension is fully earned at the age of 65. The amount for basic salary and pension is stated before any salary sacrifice. Among other members of the Executive Team, three employees have converted SEK 2.9 million from salary to pension. G8 cont. 212 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G8 cont. Pensions Pension obligations/assets, net SEK m 2025 2024 Pension obligations 31,736 31,683 Fair value of plan assets 46,657 44,785 Net pensions 14,920 13,102 In addition to the pension obligation and plan assets in the above table, provisions have been made in the years 1989-2004 to Svenska Handels bankens Pensionsstiftelse (pension foundation) for a special supplementary pension (SKP). This includes plan assets whose market value amounts to SEK 5,816 million (6,666). SKP entails a commitment by the Bank amounting to the same amount as the plan assets. A part of this commitment, SEK 4,502 million (5,150), is conditional. Pension costs SEK m 2025 2024 Service cost¹ −446 −510 Interest on pension obligations −1,153 −1,099 Interest on plan assets 1,654 1,535 Social security costs, defined benefit plans 0 0 Total pension costs, defined benefit plans 55 −74 Pension costs, defined contribution plans −1,129 −1,236 Social security costs, defined contribution plans −386 −391 Total pension costs, defined contribution plans² −1,515 −1,627 Total pension costs −1,459 −1,701 1) In addition to the estimated service cost, this includes non-recurring items related to the Bank’s restructuring process. 2) Pension costs attributable to the discontinued operations in Finland are presented in note G14. Remuneration to executive officers at subsidiaries Fees paid to the 21 board members (21) of sub- sidiaries who are not employees of the Bank or its subsidiaries totalled SEK 18.0 million (15.9). In 2025, the Chief Executive Officers and Executive Vice Presidents in the subsidiaries, 14 individuals (13), received fixed salaries after conversion to pension amounting to SEK 49.4 million (45.6). Other salary benefits were SEK 3.4 million (7.7) and the Bank’s pension cost was SEK 7.3 million (6.4). Before conversion to pension, the pension cost was SEK 5.8 million (4.9), corresponding to 11.5% of the salary (10.4). Variable remuneration in the form of the Oktogonen profit-sharing scheme amounted to SEK 0.1 million (0.2). Remuneration is not paid to Chief Executive Officers and Executive Vice Presidents in sub - sidiaries who have other main work duties at Handels banken. Pension obligations to executive officers As at 31 December 2025,¹ the pension obliga - tion for the Chief Executive Officer Michael Green, earned before he took up the position of Chief Executive Officer and now placed in a paid-up policy, was SEK 63.6 million (64.5). The pension obligation for Executive Vice President Per Beckman was SEK 113.2 million (109.8) as at 31 December 2025, and for the other executive officers in the parent company – 6 individuals (6) – pension obligations were SEK 57.9 million (54.1). Pension obligations in the Handels banken Group for all current and former executive offi - cers were SEK 2,213 million (2,667) as at 31 December 2025, of which pension obligations for all current and former executive officers in the parent company were SEK 2,039 million (2,466) as of the same date. The number of people covered by these obligations in the Group is 84 (82), of whom 67 (66) are pen - sioners. The corresponding number for the parent company is 66 (66), of whom 58 (57) are pensioners. Credits to and deposits from executive officers As at 31 December 2025, credits to executive officers were SEK 3.7 million (1.7) in the parent company and SEK 130.2 million (121.4) in the subsidiaries. Deposits in the parent company from these persons totalled SEK 684.6 million (537.7). In 2025, the Bank’s interest income from these persons for credits totalled SEK 0.1 million (0.0) in the parent company and SEK 3.3 million (4.0) in the subsidiaries. Interest paid to these persons for deposits in the par - ent company was SEK 13.8 million (24.5). As at 31 December 2025, credits to execu - tive officers in the subsidiaries in the Handels - banken Group were SEK 169.4 million (142.8). Credit and deposit terms for executive offi - cers employed in the Handels banken Group are in line with the principles applicable for all other employees of the Handels banken Group. All credits are subject to a credit assessment. 1) Pension obligations are amounts which, in accordance with IAS 19, the Bank reserves for payment of future defined benefit pensions. The size of the obligations depends on financial and demographic assumptions which may change from year to year. 213Handelsbanken Annual Report 2025 3.1
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G8 cont. Change in pension obligations SEK m 2025 2024 Opening balance 31,683 31,097 Service cost 474 476 Interest on pension obligations 1,153 1,099 Paid benefits −1,358 −1,335 Actuarial gains (-)/losses (+) −16 191 Foreign exchange effects −199 155 Closing balance¹ 31,736 31,683 1) In the closing balance for both years, the hedging according to the inflation assumption has been included in the calculation of the Swedish pension obligation. Change in plan assets SEK m 2025 2024 Opening balance 44,785 42,796 Interest on plan assets 1,654 1,535 Funds contributed by the employer 1,088 1,005 Compensation to employer −851 −842 Funds paid directly to employees −422 −417 Actuarial gains (+)/losses (-) 619 535 Foreign exchange effects −216 173 Closing balance 46,657 44,785 Return on plan assets SEK m 2025 2024 Interest on plan assets 1,654 1,535 Actuarial gains (+)/losses (-) 619 535 Total 2,273 2,070 Allocation of plan assets SEK m 2025 2024 Shares and mutual fund units on an active market¹ 36,518 36,271 Shares not listed on an active market 1 Interest-bearing securities listed on an active market 8,433 7,178 Other plan assets 1,705 1,335 Total 46,657 44,785 1) The mutual fund units amount to SEK 27,313 million (27,068) of which fixed-income funds accounted for SEK 20,518 million (20,387). No shares or bonds issued by Svenska Handels banken AB (publ) are included in the plan assets as of the balance sheet date. 214 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G8 cont. Actuarial gains (-)/losses (+), pension obligations SEK m 2025 2024 Changes in demographic assumptions −30 98 Changes in financial assumptions −1,405 −698 Experience-based adjustments 1,419 791 Total −16 191 Future cash flows SEK m Outcome 2025 Forecast 2026 Paid benefits −1,358 −1,352 Funds contributed by the employer 1,088 1,109 Defined benefit pension plans The Group’s defined benefit pension plans are being discontinued. All defined benefit pension plans are closed to new employees. The defined benefit pension plan in Sweden covers only persons employed before 1 March 2020. In the UK, the defined benefit plan was closed for new earnings in 2018. In Norway, the defined benefit plan was discontinued in 2017 when the pension obligation was taken over by Storebrand. Only a few smaller scale defined benefit plans remain but considering their respective sizes, these are considered insignificant and are therefore not reported in further detail. Of the total net pension obligation, the Swedish plan accounts for SEK 30,001 million (29,724) and the UK plan (closed for new earnings) for SEK 1,685 million (1,902). Of the total plan assets, the Swedish plan assets are SEK 44,777 million (42,708), while an amount of SEK 1,880 million (2,077) is attributable to the closed plan in the UK. In Sweden, a retirement pension is paid from the age of 65 in accordance with the pension agreement between the Employers’ Association of the Swedish Banking Institutions (BAO) and Finansförbundet/Swedish Confederation of Professional Associations (Saco). The amount is 10% of the annual salary up to 7.5 income base amounts. On the part of the salary between 7.5 and 20 income base amounts, the retirement pension is 65% and in the interval between 20 and 30 income base amounts, it is 32.5% of the annual salary. No retirement pension is paid on the portion of the salary in excess of 30 income base amounts. The pension plans are funded externally, meaning plan assets are held by pension funds, trusts or similar legal entities. The trusts’ (or equivalent) activities are regulated by national laws and practices, as is the relationship between the Group and the trust (or equivalent) managing the plan assets and the framework for how the plan assets may be invested. In Sweden, the Act on Safeguarding Pension Obligations and the Occupational Pension Undertakings Act are the main national laws and practices. National legislation pertaining to pensions and tax is applied in the UK. Defined contribution pension plans All new employees of the Group are covered by defined contribution pension plans since 2020, which was when the defined benefit pension plan in Sweden was closed to new employees. These pension plans follow collective bargaining agreements and/or local regulations in each country. A defined contribution pension means that the employer pays a pre-defined premium (usually a certain percentage of salary) into the employee’s future pension. The size of the pension then depends on the amount paid in and how the money has been invested and performed over time. Pensions based on defined contribution pension plans do not entail any pension obligation for Handels banken. For a description of the accounting policies, see note G1. Significant assumptions Sweden UK 2025 2024 2025 2024 Discount rate, % 3.9 3.6 5.6 5.4 Expected salary increase, % 3.5 3.5 Pension indexing, % 2.0 2.0 2.8 3.0 Income base amount, % 3.0 3.0 Inflation, % 2.0 2.0 2.9 3.1 Staff turnover, % 4.5 4.5 Remaining life expectancy at retirement age, years 22.8 22.8 24.3 24.0 Average duration (Macaulay), years 14.4 14.6 12.0 13.0 The assumptions on future salary increases, inflation, etc., are based on the anticipated long-term trend and the estimates are associated with uncertainty. The assumptions are set to reflect the long-term economic prospects and to be internally consistent. The calculation of pension obligations for employees in Sweden is based on DUS23, which are assumptions on longevity that are generally accepted in the market, based on statistics produced by Insurance Sweden. 215Handelsbanken Annual Report 2025 3.1
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Sensitivity analysis of pension obligation Effects on the pension obligation, SEK m Changes in assumptions Increased pension obligation Decreased pension obligation 2025 2024 2025 2024 Discount rate, % 0.5 34,166 2,480 29,567 −2,206 Expected salary increase, % 1.0 30,195 972 28,600 −824 Pension indexing, % 0.5 33,254 1,574 30,322 −1,466 Remaining life expectancy at retirement age, years 1.0 32,780 1,006 30,683 −1,010 The sensitivity analysis includes the assumptions that have the greatest effect on the pension obligation and is based on a change in one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the pension obligation to the actuarial assumptions above, the same method has been applied as when calculating the pension obligation recognised within the statement of financial position. The method is described in the Bank’s accounting policies (see note G1, section 12). Compared with the 2024 Annual Report, there have been no changes in the methods used when preparing the sensitivity analysis. Risks in defined benefit pension plans Through its defined benefit pension plans, the Bank is exposed to a number of risks. The most significant of these are described below: Asset volatility: The pension obligations are calculated using a discount rate set with reference to corporate bond yields. If plan assets underperform this yield, the risk of a deficit arising is low because there is a surplus value in the plan assets. The plan assets include a significant share of equities and equity funds which are expected to outperform corporate bonds in the long term while being associated with volatility and risk in the short term. The Bank believes that due to the long-term nature of the pension obligations, a substantial proportion of shares is an appropriate element of the Bank’s long-term strategy to manage the plans efficiently. Changes in bond yields: A decrease in corporate bond yields will increase pension obligations. However, this will be partially offset by an increase in the value of the plans’ bond holdings. Inflation risk: The pension obligations are linked to inflation. Higher inflation will lead to increased pension obligations. Valuation of the plan assets is not directly affected by inflation in a material way. This means that an increase in inflation will probably increase the deficit in the pension plans. Life expectancy: The pension schemes are to provide benefits during the lifetime of the members. Increases in life expectancy will thus result in an increase in the pension obligation. Asset-Liability matching (ALM): The composition of the plan assets is matched to the pension liabilities composition and expected development. The overall goal is to generate a return over the medium and long term, that at least corresponds to the development of the pension obligations. A proportion of the plan assets is invested in equities, but investments are also made in fixed income instruments and cash and cash equivalents. A substantial proportion of shares is deemed appropriate in order to manage the plans effectively. Funding arrangements: Minimum funding requirements differ between plans but where such requirements are based on collective bargaining agreements or internal policies, the funding requirement is generally that the pension obligations measured according to local requirements shall be covered in full. Funding levels are monitored regularly. The Bank considers that the current contribution rate is appropriate. G8 cont. 216 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G10 Depreciation, amortisation and impairment of tangible and intangible assets 2025 2024 SEK m Depreciation and amortisation Impairment Total Depreciation and amortisation Impairment Total Equipment −404 −404 −359 −359 Property −40 −40 −39 −38 −77 Right-of-use assets −730 −19 −749 −704 −12 −716 Total tangible assets −1,174 −19 −1,193 −1,102 −50 −1,152 Customer contracts −36 −36 −37 −37 Internally developed software −800 −800 −786 −3 −789 Other 0 0 −33 −33 Total intangible assets −836 −836 −856 −3 −859 Total −2,010 −19 −2,029 −1,958 −53 −2,011 Deducted depreciation attributable to insurance contracts¹ 9 9 7 7 Total depreciation, amortisation and impairment of tangible and intangible assets −2,001 −19 −2,020 −1,951 −53 −2,004 1) Depreciation attributable to insurance contracts is recognised in net insurance result, see Note G6. G9 Other expenses SEK m 2025 2024 IT -related expenses −3,325 −3,658 Purchased services¹ −1,612 −2,094 Property and premises −720 −708 Telephone and postage −270 −263 Travel and entertainment −180 −178 Marketing −110 −104 Supplies −123 −146 Other −665 −673 Total −7,005 −7,822 Deduction of other expenses attributable to insurance contracts² 40 23 Deduction of other expenses capitalised as intangible assets³ 195 326 Total other expenses −6,770 −7,474 1) Remuneration to auditors and audit companies is included in Purchased services. 2) Other expenses attributable to insurance contracts are recognised in Net insurance result, see Note G6. 3) IT -related expenses, Purchased services and Other expenses capitalised are recognised as Intangible assets, see note G27. Remuneration to auditors and audit companies¹ Öhrlings PricewaterhouseCoopers AB Deloitte AB SEK m 2025 2024 2025 2024 Audit assignment −45 −39 −7 −8 Audit operations outside the audit assignment −8 −5 −2 −2 Tax advice 0 Other services −1 −3 1) The amounts in the table are exclusive of VAT. 217Handelsbanken Annual Report 2025 3.1
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G11 Net credit losses SEK m 2025 2024 Expected credit losses on balance sheet items The year’s provision Stage 3 −187 −377 Reversed Stage 3 provision from previous years 172 111 Total expected credit losses in Stage 3 −14 −266 The year’s net provision Stage 2 150 485 The year’s net provision Stage 1 47 218 Total expected credit losses in Stage 1 and Stage 2 197 703 Total expected credit losses on balance sheet items 183 438 Expected credit losses on off-balance sheet items The year’s net provision Stage 3 −7 1 The year’s net provision Stage 2 59 111 The year’s net provision Stage 1 6 54 Total expected credit losses on off-balance sheet items 58 166 Write-offs Actual credit losses for the year¹ −219 −290 Utilised share of previous provisions in Stage 3 147 213 Total write-offs −72 −77 Recoveries 144 74 Net credit losses 313 601 of which loans to the public 254 435 1) Of the year’s actual credit losses, SEK 126 million (114) is subject to enforcement activities. SEK m 2025 2024 1) Expected credit losses in Stage 3 on and off the balance sheet −22 −264 Change in the model-based provision in Stage 1 and Stage 2: Updating of macroeconomic scenarios and risk factors −2 179 Transfer of exposures in exposed industries from Stage 1 to Stage 2¹ 7 9 Change in risk of default in included portfolio (net rating changes) 16 −60 Effect of changed exposure (existing, new and terminated exposures) 99 138 Other in Stage 1 and Stage 2 7 139 Deduction of discontinued operations −14 8 Model-based credit losses in Stage 1 and Stage 2 113 413 Expert-based provision Expert-based provision 0 −149 Deduction of discontinued operations 0 0 Expert-based provision in continuing operations 0 −149 Expert-based credit losses Stage 1 and Stage 2 (change in provision compared with the previous year) 149 455 2) Expected credit losses in Stage 1 and Stage 2 on and off the balance sheet 262 868 3) Write-offs −72 −77 4) Recoveries 144 74 Net credit losses (1+2+3+4) 313 601 1) Expert-based assessment of significant increase in credit risk. The provision requirement declined in 2025. The model-based provision declined SEK 113 million. The main cause of the decline was volume changes in the lending portfolio, which accounted for SEK 99 million of the decline. At the end of 2024, the Bank applied an expert-based provision based on elevated credit risks relating to uncertainty factors which were not deemed to be fully considered in the Bank’s risk models. These uncertainty factors were mainly related to the macro- economic climate and potential significant changes in the demand profile. At the end of 2025, the Bank had not identified any need for an expert-based provision, which has there- fore been discontinued. This entails a reversal of previous provisions of SEK 149 million. The impairment testing process for agree - ments in Stage 3 has not been changed, and the customary procedure with individual assessment has continued. 218 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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On- and off-balance sheet items that are subject to impairment testing 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3¹ Stage 1 Stage 2 Stage 3 Balance sheet items Cash and balances with central banks 408,150 Other loans to central banks 24,526 Loans to other credit institutions 21,711 0 0 Loans to the public 2,245,739 55,448 7,190 −139 −149 −898 Bonds and other interest-bearing securities 9,056 −1 Total 2,709,182 55,448 7,190 −141 −149 −898 Off-balance sheet items Contingent liabilities 274,652 4,431 111 −31 −26 −17 of which contingent liabilities 39,808 601 65 −2 −1 −17 of which obligations 234,844 3,830 46 −29 −25 0 Total 274,652 4,431 111 −31 −26 −17 On- and off-balance sheet items that are subject to impairment testing 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3¹ Stage 1 Stage 2 Stage 3 Balance sheet items Cash and balances with central banks 530,003 Other loans to central banks 12,547 Loans to other credit institutions 18,872 55 −1 −3 Loans to the public 2,288,590 76,580 8,525 −210 −328 −1,071 Bonds and other interest-bearing securities 13,259 −2 Total 2,863,270 76,635 8,525 −213 −331 −1,071 Off-balance sheet items Contingent liabilities 292,278 6,282 159 −39 −90 −26 of which contingent liabilities 54,384 1,315 55 −6 −12 −26 of which obligations 237,894 4,967 104 −33 −78 0 Total 292,278 6,282 159 −39 −90 −26 1) Gross volume in Stage 3 for which no provision has been made, due to collateral received, amounts to SEK 5,331 million (6,016). G11 cont. 219Handelsbanken Annual Report 2025 3.1
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Key metrics, credit losses, % Loans to the public 2025 2024 Credit loss ratio, acc. −0.01 −0.02 Total provision ratio 0.05 0.07 Provision ratio Stage 1 0.01 0.01 Provision ratio Stage 2 0.27 0.43 Provision ratio Stage 3 12.49 12.56 Proportion of loans in Stage 3 0.27 0.31 Change analysis Change in provision for expected credit losses, balance sheet items that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening provision −213 −331 −1,071 −1,614 −430 −820 −1,150 −2,400 Derecognised assets 35 76 195 307 63 114 125 303 Write-offs 0 0 168 169 0 1 263 264 Remeasurements due to changes in credit risk −45 71 −86 −60 −38 297 −68 191 Changes due to update in the methodology for estimation Foreign exchange effects, etc. 11 8 24 43 −7 −15 −9 −32 Purchased or originated assets −18 −5 −5 −27 −17 −8 −7 −33 Transfer to Stage 1 −11 10 1 0 −27 63 1 37 Transfer to Stage 2 50 −60 1 −8 49 −150 4 −96 Transfer to Stage 3 49 81 −127 3 192 188 −229 151 Closing provision −141 −149 −898 −1,187 −213 −331 −1,071 −1,614 Change in provision for expected credit losses, loans to the public that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening provision −210 −328 −1,071 −1,608 −426 −819 −1,150 −2,395 Derecognised assets 35 76 195 307 63 114 125 302 Write-offs 0 0 168 169 0 1 263 264 Remeasurements due to changes in credit risk −46 68 −86 −64 −37 294 −68 189 Changes due to update in the methodology for estimation Foreign exchange effects, etc. 11 8 24 43 −7 −15 −9 −32 Purchased or originated assets −18 −5 −5 −27 −17 −8 −7 −32 Transfer to Stage 1 −11 10 1 0 −27 63 1 37 Transfer to Stage 2 50 −60 1 −8 49 −145 4 −93 Transfer to Stage 3 49 81 −127 3 192 188 −229 151 Closing provision −139 −149 −898 −1,186 −210 −328 −1,071 −1,608 Provisions for expected credit losses in the tables above include the disposal group in Finland, which has been reclassified to Assets held for sale on the balance sheet, see note G14. Change in the provision for expected credit losses, off-balance sheet items that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening provision −39 −90 −26 −155 −94 −203 −42 −340 Derecognised assets 8 11 19 17 21 38 Write-offs 0 0 0 0 Remeasurements due to changes in credit risk 3 56 16 75 43 107 17 167 Changes due to update in the methodology for estimation Foreign exchange effects, etc. 1 0 1 1 −1 1 Purchased or originated assets −10 −1 −4 −15 −10 −3 −13 Transfer to Stage 1 −1 1 0 −2 7 5 Transfer to Stage 2 6 −7 0 4 −25 −21 Transfer to Stage 3 1 2 −4 2 6 8 Closing provision −31 −26 −17 −74 −39 −90 −26 −155 The change analysis shows the net effect on the provision for the Stage in question for each explanatory item during the period. The effect of derecognitions and write-offs is calculated on the opening balance. The effect of revaluations due to changes in the methodology for estimation and foreign exchange effects, etc., is calculated before any transfer of the net amount between Stages. Purchased or originated assets and amounts transferred between Stages are recognised after the effects of other explanatory items are taken into account. The transfer rows present the effect on the provision for the stated Stage. G11 cont. 220 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Change in gross volume, balance sheet items that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening volume 2,863,270 76,635 8,525 2,948,430 2,833,004 136,859 7,064 2,976,927 Derecognised assets −198,196 −16,789 −2,456 −217,442 −199,493 −17,154 −1,596 −218,243 Write-offs −8 −5 −240 −253 −22 −6 −318 −346 Remeasurements due to changes in credit risk −38,080 1,786 −711 −37,005 −47,420 −2,860 −321 −50,600 Foreign exchange effects, etc. −109,409 −3,187 −237 −112,832 41,365 2,008 135 43,508 Purchased or originated assets 188,204 2,400 317 190,921 193,925 3,187 72 197,184 Transfer to Stage 1 47,371 −47,206 −165 99,595 −99,432 −164 Transfer to Stage 2 −42,992 43,566 −574 −55,756 56,648 −892 Transfer to Stage 3 −980 −1,753 2,732 −1,929 −2,615 4,544 Closing volume 2,709,181 55,448 7,190 2,771,819 2,863,270 76,635 8,525 2,948,430 Change in gross volume, loans to the public that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening volume 2,288,590 76,580 8,525 2,373,695 2,292,700 136,848 7,064 2,436,612 Derecognised assets −191,170 −16,789 −2,456 −210,416 −194,324 −17,154 −1,596 −213,075 Write-offs −8 −5 −240 −253 −22 −6 −318 −346 Remeasurements due to changes in credit risk 12,256 1,764 −711 13,309 −37,281 −557 −321 −38,159 Foreign exchange effects, etc. −44,648 −3,187 −237 −48,071 −7,484 2,008 135 −5,341 Purchased or originated assets 177,396 2,400 317 180,113 190,744 3,187 72 194,004 Transfer to Stage 1 47,289 −47,124 −165 99,590 −99,426 −164 Transfer to Stage 2 −42,987 43,562 −574 −53,404 54,297 −892 Transfer to Stage 3 −980 −1,753 2,732 −1,929 −2,615 4,544 Closing volume 2,245,739 55,448 7,190 2,308,377 2,288,590 76,580 8,525 2,373,695 Balance sheet items in the tables above include the disposal group in Finland, which has been reclassified to Assets held for sale on the balance sheet, see note G14. Change in gross volume, off-balance sheet items that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening volume 292,278 6,282 159 298,719 284,693 11,262 164 296,119 Derecognised assets −58,575 −1,223 −69 −59,866 −43,837 −1,717 −24 −45,579 Write-offs 0 0 0 0 −1 0 1 0 Remeasurements due to changes in credit risk −10,747 −58 −9 −10,814 37,596 −1,931 −62 35,602 Foreign exchange effects, etc. −7,461 −147 −1 −7,609 −45,203 52 3 −45,148 Purchased or originated assets 58,028 731 5 58,764 57,369 355 0 57,724 Transfer to Stage 1 3,079 −3,079 0 5,855 −5,851 −3 Transfer to Stage 2 −1,936 1,952 −16 −4,164 4,174 −11 Transfer to Stage 3 −14 −28 42 −29 −62 90 Closing volume 274,652 4,431 111 279,194 292,278 6,282 159 298,719 Like the analysis for provisions, the change analysis for gross volumes shows the effect of selected explanatory items on the volumes for a stated Stage. The items showing transfers between Stages, and “Purchased or originated assets”, present the amounts in the stated Stage at the end of the period. Other items present the effect in the Stage applying at the start of the period. G11 cont. 221Handelsbanken Annual Report 2025 3.1
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Sensitivity analysis Sensitivity analysis, macroeconomic scenarios The calculation of expected credit losses applies forward-looking information in the form of macroeconomic scenarios. The expected credit loss is a probability-weighted average of the estimated forecasts. Three scenarios are applied for exposures outside the UK. The forecast in the base case scenario is assigned a weight of 70% (70), while an upturn in the economy is assigned 15% (15), and a downturn 15% (15). For exposures in the UK, a fourth, more severe downturn scenario was applied. The probability weighting for severe downturn/downturn/base case/upturn scenarios for the UK is 10%/35%/50%/5% (15/20/60/5). These scenarios and weightings have formed the basis for the calculation of expected credit losses in Stage 1 and Stage 2 as at 31 December 2025. Downturn scenario Neutral scenario Upturn scenario Macroeconomic risk factors 2026 2027 2028 2026 2027 2028 2026 2027 2028 GDP growth Sweden −1.49 −0.30 1.90 2.51 2.20 1.90 3.81 3.20 2.20 UK −2.94 −1.36 1.60 1.06 1.14 1.60 2.36 2.14 1.90 UK, severe downturn scenario −4.94 −2.86 1.10 Norway −2.41 −0.85 1.60 1.59 1.65 1.60 2.89 2.65 1.90 Finland −2.99 −0.70 1.50 1.01 1.80 1.50 2.31 2.80 1.80 Eurozone −3.04 −1.07 1.30 0.96 1.43 1.30 2.26 2.43 1.60 USA −2.54 −0.64 2.20 1.46 1.86 2.20 2.76 2.86 2.50 Policy interest rate Sweden 4.00 4.50 4.25 1.75 2.25 2.25 1.25 1.25 1.25 UK 5.75 5.50 5.00 3.50 3.25 3.00 3.00 2.25 2.00 UK, severe downturn scenario 1.00 0.50 0.50 Norway 5.75 5.75 5.00 3.50 3.50 3.00 3.00 2.50 1.75 Finland 4.00 4.25 4.00 1.75 2.00 2.00 1.25 1.00 1.00 Eurozone 4.00 4.25 4.00 1.75 2.00 2.00 1.25 1.00 1.00 USA 5.63 5.38 5.00 3.38 3.13 3.00 2.88 2.13 2.00 Unemployment Sweden 9.75 10.45 10.10 8.55 7.95 7.60 8.15 7.25 7.10 UK 6.93 7.85 7.50 5.53 5.35 5.00 5.13 4.65 4.50 UK, severe downturn scenario 7.53 8.85 9.00 Norway 3.50 4.60 4.60 2.10 2.10 2.10 1.70 1.40 1.60 Finland 11.10 11.20 10.20 9.70 8.70 7.70 9.30 8.00 7.20 Eurozone 7.80 8.75 8.75 6.40 6.25 6.25 6.00 5.55 5.75 USA 6.20 7.08 7.00 4.80 4.58 4.50 4.40 3.88 4.00 Property price trend, residential real estate Sweden −2.58 −1.43 1.92 4.95 5.92 4.50 9.76 8.67 5.64 UK −5.44 −3.10 4.01 1.90 2.22 2.64 7.03 4.52 2.46 UK, severe downturn scenario −7.29 −9.81 0.81 Norway 5.62 −0.23 1.01 6.21 5.01 3.50 9.57 9.31 4.10 Finland −6.20 −0.18 6.67 2.36 3.91 3.06 6.73 6.58 2.43 Eurozone 1.38 3.84 3.70 2.88 3.34 3.20 3.78 3.64 2.90 Property price trend, commercial real estate Sweden −7.77 −1.99 −0.07 1.42 4.30 3.66 6.93 7.81 3.66 UK −13.12 −6.75 2.38 −1.29 −0.15 −0.17 7.30 5.87 −0.99 UK, severe downturn scenario −17.55 −8.72 3.78 Norway −8.53 −5.49 −2.88 0.75 2.18 1.47 5.10 5.98 1.45 Finland −10.60 −3.70 4.57 0.16 2.84 2.53 5.08 6.51 2.14 Eurozone −7.63 −1.78 0.97 0.66 2.54 1.57 7.66 4.60 1.77 Sensitivity analysis The table below shows the percentage increase/decrease in the provision for expected credit losses in Stage 1 and Stage 2, as at 31 December, which arises when a probability of 100% is assigned to the downturn and upturn scenarios, respectively. The effect of assigning a probability of 100% to the severe downturn scenario for the UK is not included in the total. 2025 2024 % Increase in the provision in a downturn scenario Decrease in the provision in an upturn scenario Increase in the provision in a downturn scenario Decrease in the provision in an upturn scenario Sweden 24.74 −10.35 32.98 −14.39 UK 23.97 −30.33 32.43 −30.87 UK, severe downturn scenario 29.61 37.19 Norway 32.47 −12.22 37.79 −14.98 Finland 24.38 −11.13 15.66 −6.40 The Netherlands 32.50 −17.80 47.07 −18.81 USA 59.84 −23.07 77.81 −28.43 Other countries 18.90 −7.42 25.02 −10.66 Total 25.58 −17.27 31.81 −19.08 G11 cont. 222 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Sensitivity analysis, significant increase in credit risk The table below shows how the provision in Stage 1 and Stage 2 as at 31 December is affected if the threshold value applied for the ratio between residual credit risk calculated on the reporting date and on initial recognition were to be set 0.5 percentage points lower and higher, respectively, than the applied threshold value of 2.5. A reduction of 0.5 to the threshold value would increase the number of loans transferred from Stage 1 to Stage 2 and would also entail an increase in the provision for expected credit losses. An increase of 0.5 to the threshold value would have the opposite effect. The Bank uses both quantitative and qualitative indicators to assess significant increases in credit risk. Further information is provided in note G2 under the heading “Credit risk”. Change in the total provision in Stage 1 and Stage 2, % Threshold value 2025 2024 2 3.58 4.35 2.5 0.00 0.00 3 −3.16 −2.73 Credit exposures that are subject to impairment testing, by PD range Balance sheet items by PD range 2025 2024 Gross volume Gross volume PD value¹ Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 0.00 to <0.15 2,285,208 12,355 2,455,914 12,858 0.15 to <0.25 257,919 4,750 231,936 6,235 0.25 to <0.50 105,248 6,767 98,830 9,222 0.50 to <0.75 13,160 632 11,920 1,754 0.75 to <2.50 41,942 8,776 56,774 21,807 2.50 to <10.00 5,547 19,970 7,683 21,950 10.00 to <100 156 2,198 214 2,808 100 (default) 7,190 8,525 Total 2,709,181 55,448 7,190 2,863,270 76,635 8,525 Loans to the public by PD range 2025 2024 Gross volume Gross volume PD value¹ Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 0.00 to <0.15 1,894,292 12,355 1,962,994 12,849 0.15 to <0.25 213,799 4,750 185,384 6,231 0.25 to <0.50 87,244 6,767 78,994 9,216 0.50 to <0.75 10,909 632 9,527 1,753 0.75 to <2.50 34,768 8,776 45,379 21,791 2.50 to <10.00 4,598 19,970 6,141 21,934 10.00 to <100 129 2,198 171 2,806 100 (default) 7,190 8,525 Total 2,245,739 55,448 7,190 2,288,590 76,580 8,525 Off-balance sheet items by PD range 2025 2024 Gross volume Gross volume PD value¹ Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 0.00 to <0.15 182,493 371 195,904 541 0.15 to <0.25 26,429 359 24,404 188 0.25 to <0.50 32,131 698 39,409 676 0.50 to <0.75 21,969 346 21,092 433 0.75 to <2.50 10,863 436 10,699 1,413 2.50 to <10.00 475 2,061 589 2,757 10.00 to <100 292 161 181 274 100 (default) 111 159 Total 274,652 4,431 111 292,278 6,282 159 1) Refers to 12-month PD value as at the reporting date. Assets repossessed for protection of claims SEK m 2025 2024 Movable property 2 2 Total 2 2 Movable property mainly consists of repossessed lease assets. The valuation principles for assets and liabilities repossessed for protection of claims are described in note G1. G11 cont. 223Handelsbanken Annual Report 2025 3.1
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G12 Gains/losses on disposal of tangible and intangible assets SEK m 2025 2024 Equipment 8 13 Total 8 13 G13 Regulatory fees SEK m 2025 2024 Risk tax −1,596 −1,655 Resolution fee −1,050 −1,031 Cost for interest-free deposits at the Riksbank −98 Bank of England Levy −56 −47 Total −2,800 −2,733 The risk tax amounted to 0.06% (0.06) of the tax base, which is based on the total liabilities of the credit institution at the beginning of the income year. The resolution fee amounted to 0.05% (0.05) of the fee base plus a risk adjustment factor. The fee base is based on the institution’s liabilities two years before the fee year. Based on an amendment to the Sveriges Riksbank Act that came into effect on 1 January 2025, the Riksbank (Sweden’s central bank) can decide to receive interest-free deposits from Swedish banks and other credit institutions with operations in Sweden. The Bank’s assessment is that no single IFRS applies to the reporting of the interest-free deposits the Bank is to deposit with the Riksbank, which, from the Bank’s perspective, comprises an interest-free loan to the Riksbank. Therefore, the Bank has developed an accounting policy that is in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The basis for the accounting policy is that the interest income that is not received as a result of the regulatory requirement for the Bank to make an interest-free deposit to the Riksbank constitutes a regulatory fee. For a description of the accounting policy, see note G1. The Bank of England Levy was introduced in 2024 to fund the costs of the Bank of England’s monetary policy and financial stability operations. The Levy is based on the proportion of the Bank’s total eligible liabilities among UK institutions who have are subject to the levy. 224 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Assets and liabilities held for sale SEK m 2025 2024 Assets Cash and balances with central banks 1 14 Loans to other credit institutions 17 1 Loans to the public 43,426 74,209 of which households 384 816 of which corporates 43,042 73,393 Other 137 282 Total assets 43,580 74,506 Liabilities Due to credit institutions 247 Deposits and borrowing from the public 9,742 of which households 235 of which corporates 9,507 Provisions 189 182 Other 224 451 Total liabilities 413 10,623 The translation reserve includes an amount totalling an accumulated SEK 420 million (749) attributable to the translation of assets and liabilities held for sale, which is included in the translation reserve presented in the Statement of changes in equity, Group. The purchase price remains in the selling entities and the disposals thus do not give rise to a reclassification of the translation reserve to the income statement. The sale process is continuing, with a focus on the remaining operations for corporate lending. Finland previously comprised a separate operating segment. G14 Assets and liabilities held for sale, and discontinued operations The Finnish operations, consisting of the SME operations, were divested to Oma Sparbank Abp in the third quarter of 2024. The portion of Finnish operations that consisted of private customers, including asset management and investment services as well as life insurance operations, was then divested to S-banken Abp and the insurance company Fennia Liv in the fourth quarter of 2024 . The operations remain - ing in Finland after the divestments continued to constitute assets and liabilities held for sale and discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The following units in Finland are included in the disposal group and in the discontinued operations: Handels - banken AB (publ) international branch in Finland and Handels banken Asuntoluottopankki, Stads hypotek AB (publ) international branch in Finland. A minor lending portfolio of card credits was divested in the first quarter of 2025. A sales process is ongoing for the divestment of the remaining business in Finland. The valuation of the disposal group at the lower of fair value after deductions for selling costs, and the carrying amount, led to an impairment loss during the fourth quarter 2024. A small proportion of this loss was reversed during the first quarter of 2025. All assets eligible for impairment in accordance with IFRS 5 are thereafter fully impaired. 225Handelsbanken Annual Report 2025 3.1
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Discontinued operations Income, expenses and profit, discontinued operations SEK m 2025 2024 Net interest income 499 1,895 Net fee and commission income 10 376 Net gains/losses on financial transactions −5 −8 Net insurance result 15 Other income 1 5 Total income 504 2,284 Staff costs −369 −790 Other expenses −259 −580 Depreciation, amortisation and impairment of tangible and intangible assets 0 Total expenses −628 −1,369 Net credit losses −105 53 Gains/losses on disposal of tangible and intangible assets −1 −1 Regulatory fees −124 −131 Profit for the year for Finland, before tax −354 835 Taxes¹ 34 −178 Profit for the year for Finland, after tax −319 657 Other expenses attributable to discontinued operations² −3 −11 Impairment attributable to discontinued operations³ 70 −446 Taxes¹ −13 92 Profit for the year from discontinued operations, including additional costs after tax −266 291 Capital gains on sale of disposal groups constituting discontinued operations Capital gain before tax −71 Taxes¹ 14 Capital gain after tax −57 Profit for the year from discontinued operations, after tax −266 234 Material internal transactions with continuing operations, which are eliminated in the income statement above⁴: Income 17 36 Expenses −79 −113 1) The tax lines include current tax amounting to SEK 82 million (-107). 2) Certain expenses arise in Sweden as a result of the divestment of the discontinued operations, deriving from requirements linked to the discontinuation of the operations. These include, for example, consultancy fees and legal costs. 3) Measuring each disposal group at the lowest of fair value, less costs to sell, and carrying amount resulted in impairment, which is attributable to non-current assets. 4) Only external income and expenses are included in profit for the year both from continuing and from discontinued operations. The discontinued operations have material internal transactions with the continuing operations, which are thus eliminated in the accounting. Eliminating internal transactions attributable to the net interest income between the discontinued operations in Finland and Treasury have been adjusted and internal interest income and internal interest expenses are thus presented in continuing and discontinued operations. Fee and commission income by product, discontinued operations SEK m 2025 2024 Brokerage and other securities commissions 0 4 Mutual funds 0 5 Custody and other asset management fees 0 28 Insurance 73 Payments 11 264 Loans and deposits 1 38 Guarantees 3 13 Other 2 7 Total 18 433 G14 cont. 226 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G14 cont. G15 Earnings per share 2025 2024 Profit for the year attributable to shareholders in Svenska Handels banken AB, SEK m 23,727 27,451 Average number of shares converted during the year, millions Average holdings of own shares in trading book, millions Average number of outstanding shares, millions 1,980.0 1,980.0 Average dilution effect, number of shares, millions Average number of outstanding shares after dilution, millions 1,980.0 1,980.0 Earnings per share, total operations, SEK 11.98 13.86 after dilution 11.98 13.86 Earnings per share, continuing operations, SEK 12.12 13.75 after dilution 12.12 13.75 Earnings per share, discontinued operations, SEK −0.13 0.12 after dilution −0.13 0.12 Staff costs, discontinued operations SEK m 2025 2024 Salaries and fees¹ −273 −631 Social security costs −8 −15 Pension costs −37 −102 Other staff costs −51 −42 Total −369 −790 1) Of which SEK – million (2.2) to executive officers (President and Chief Executive Officers and boards in subsidiaries). Average number of employees discontinued operations 2025 2024 Total Men Women Total Men Women Finland 173 75 98 479 220 259 Cash flows, discontinued operations SEK m 2025 2024 Cash flow from operating activities 15,597 17,592 Cash flow from investing activities 119 17,152 Cash flow from discontinued operations 15,716 34,744 G16 Other loans to central banks SEK m 2025 2024 Other loans to central banks¹ 24,526 12,547 Provision for expected credit losses Total other loans to central banks 24,526 12,547 Average volumes SEK m 2025 2024 Other loans to central banks 18,539 8,167 1) Based on an amendment to the Sveriges Riksbank Act that came into effect on 1 January 2025, the Riksbank (Sweden’s central bank) can decide to receive interest-free deposits from Swedish banks and other credit institutions with operations in Sweden. The carrying amount of the interest-free loan, due to the regulatory requirement for the Bank to make an interest-free deposit to the Riksbank, amounted to SEK 8,320 million on 31 December 2025 and is recognised in the balance sheet item Other loans to central banks. For a description of the accounting policy for the interest-free deposit to the Riksbank, see note G1. 227Handelsbanken Annual Report 2025 3.1
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G17 Interest-bearing securities eligible as collateral with central banks 2025 2024 SEK m Carrying amount Fair value Nominal amount Carrying amount Fair value Nominal amount¹ Governments and municipalities 60,309 60,309 61,302 35,680 35,680 35,958 Sveriges Riksbank 127,963 127,963 128,000 136,927 136,927 137,000 Total 188,272 188,272 189,302 172,606 172,606 172,958 1) The nominal amounts for 2024 have been updated in connection with the changes to the presentation of this note. Average volumes SEK m 2025 2024 Interest-bearing securities eligible as collateral with central banks 239,219 257,685 G18 Loans to other credit institutions SEK m 2025 2024 Banks 20,382 16,128 Other credit institutions 1,312 2,797 Total 21,694 18,926 Provision for expected credit losses 0 −4 Total loans to other credit institutions 21,694 18,922 of which reverse repurchase agreements 13,446 11,274 of which cash collateral pledged 5,665 3,427 Average volumes SEK m 2025 2024 Loans to other credit institutions 35,192 38,342 G19 Loans to the public SEK m 2025 2024 Households 1,226,600 1,241,726 Corporates 1,024,601 1,055,968 National Debt Office 13,422 1,547 Total 2,264,623 2,299,241 Provision for expected credit losses −857 −1,363 Total loans to the public 2,263,765 2,297,878 of which finance leases 10,586 12,410 of which reverse repurchase agreements 18,128 17,977 of which cash collateral pledged 5,387 1,751 of which subordinated 0 0 Average volumes, excl. National Debt Office SEK m 2025 2024 Loans to the public 2,286,985 2,305,252 228 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G21 Shares SEK m 2025 2024 Equities 10,170 8,365 Mutual fund units 6,363 6,365 Housing co-operative apartments 16 16 Total 16,549 14,746 of which recognised at fair value through other comprehensive income 798 804 Holdings at fair value through other comprehensive income SEK m 2025 2024 Visa Inc 520 517 VIPPS A/S 58 58 CLS 49 51 SWIFT 31 33 Other 140 145 of which mutual fund units 112 109 of which housing co-operative apartments 16 16 of which other 12 20 Total 798 804 Handels banken classifies the shareholdings above as measured at fair value through other comprehensive income, as these holdings are not held for trading. Unrealised changes in value of these holdings are recognised in the fair value reserve and amounted to SEK -2 million (167) after tax, see Note G42 Specification of changes in equity. During the year, the Bank divested the holding in Eksportfinans A/S for a value of SEK 10 million (3), see note G42 Specification of changes in equity. This realised change in value has been reclassified from the fair value reserve to retained earnings, see note G42 Specification of changes in equity. Dividends on shares were received from holdings that the Bank continues to own, which amounted to SEK 11 million (16) and are recognised in the income statement as Other dividend income. G20 Bonds and other interest-bearing securities 2025 2024 SEK m Carrying amount Fair value Nominal amount Carrying amount Fair value Nominal amount² Credit institutions 11,773 11,773 11,713 10,428 10,428 10,319 Mortgage institutions 37,298 37,298 35,942 31,653 31,653 31,733 Other financial issuers 3,750 3,750 3,725 4,576 4,576 4,560 Non-financial issuers 809 809 803 851 851 850 Total¹ 53,631 53,631 52,184 47,508 47,508 47,462 1) Bonds and other interest-bearing securities that are subject to impairment testing amounted to SEK 9,056 million (13,259). These are measured at fair value through other comprehensive income. Provision for expected credit losses recognised in the fair value reserve in equity amounted to SEK -1 million (-2). 2) The nominal amounts for 2024 have been updated in connection with the changes to the presentation of this note. Average volumes SEK m 2025 2024 Bonds and other interest-bearing securities 65,824 59,973 229Handelsbanken Annual Report 2025 3.1
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G22 Investments in associates and joint ventures Carrying amount, SEK m Corporates¹ Corporate identity number Domicile Number of shares 2025 Ownership share, % 2025 2025 2024 Associates Bankomat AB 556817-9716 Stockholm 150 20.00 80 88 BGC Holding AB 556607-0933 Stockholm 454 Dyson Group plc ² 163096 Sheffield 74,733,672 27,00 20 3 Finansiell ID-teknik BID AB 556630-4928 Stockholm 12,735 28.30 117 106 Getswish AB 556913-7382 Stockholm 10,000 20.00 122 115 USE Intressenter AB 559161-9464 Stockholm 2,448 24.48 0 0 Total 339 767 Joint ventures Finansinfrastruktur i Sverige AB 559198-9610 Stockholm 22,500 22.50 535 87 Tibern AB 559384-3542 Stockholm 4,000 14.29 7 6 Total 542 93 Total investments in associates and joint ventures 881 860 1) All companies except Dyson Group plc are strategic holdings since they perform supporting activities, such as payment services. 2) Voting power, 24.01% Other associates and joint ventures have the same voting power and ownership share. Change in investments in associates and joint ventures SEK m 2025 2024 Opening balance 860 657 Acquisitions 27 23 Share of profit after tax for the year −9 28 Shareholders’ contribution 135 152 Disposals −132 Closing balance 881 860 There are no individually significant investments in associates or joint ventures held by Handelsbanken. All investments are unlisted. In 2025, a shareholders’ contribution of SEK 135 million was paid to Finansinfrastruktur i Sverige AB and participations in Finansinfrastruktur i Sverige AB were acquired for SEK 27 million. In addition, BGC Holding AB was acquired by Finansinfrastruktur i Sverige AB and Handelsbanken received SEK 132 million. In 2024, the Bank paid shareholders’ contributions of SEK 62 million to Finansiell ID-teknik BID AB and SEK 90 million to Getswish AB. Additional participations in the joint venture Finansinfrastruktur i Sverige AB were also acquired for SEK 23 million. G23 Assets where the customer bears the value change risk SEK m 2025 2024 Mutual fund units 294,593 273,725 Equities 16,986 13,484 Derivatives 632 625 Interest-bearing securities 71 132 Other 2 18 Total 312,284 287,984 230 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G24 Derivative instruments 2025 2024 SEK m Nominal amount Positive market values Negative market values Nominal amount Positive market values Negative market values Derivatives held for trading Interest rate-related contracts Options 30,127 80 118 35,056 166 238 Futures/FRA 1,412,612 156 152 771,447 347 310 Swaps 1,901,862 19,232 20,855 1,889,941 28,593 29,273 Currency-related contracts Options 8,636 16 48 19,747 58 89 Futures 54,316 508 1,022 69,653 1,058 619 Swaps 671,066 4,686 12,675 708,516 16,891 5,386 Equity-related contracts Options 6,934 388 220 5,427 229 113 Futures 1,957 6 6 281 2 2 Swaps 9,685 102 1,021 8,760 299 232 Commodity-related contracts Options 36 36 19 19 Futures 398 5 2 135 1 4 Credit-related contracts Swaps 4,798 161 159 4,171 164 147 Total 4,102,427 25,340 36,315 3,513,153 47,808 36,432 Derivatives for fair value hedges Interest rate-related contracts Swaps 678,704 14,000 7,194 694,937 15,686 11,679 Currency-related contracts Swaps 926 12 1,046 83 Total 679,630 14,000 7,206 695,983 15,769 11,679 Derivatives for cash flow hedges Interest rate-related contracts Swaps 48,071 1,295 341 82,436 2,078 954 Currency-related contracts Swaps 244,216 13,731 5,349 253,478 25,558 1,222 Total 292,287 15,027 5,690 335,914 27,636 2,176 Total gross amount 5,074,342 54,367 49,210 4,545,050 91,213 50,287 Amounts offset −2,332,268 −32,615 −22,999 −2,368,886 −44,144 −34,331 Total derivative instruments 2,742,074 21,752 26,211 2,176,164 47,069 15,956 Currency breakdown of market values gross SEK 115,745 445,973 −297,599 −3,889 EUR 112,234 −78,938 174,889 −6,713 NOK −120,882 47,177 −201,725 −17,060 GBP 2,340 10,647 −21,459 −1,593 USD −69,171 −364,803 437,043 103,653 Others 14,100 −10,846 63 −24,111 Total 54,367 49,210 91,213 50,287 Derivative contracts are presented gross in the note. Amounts offset consist of the offset market value and the associated nominal amounts of contracts for which the Bank has the legal right and intention to settle contractual cash flows net (including cleared contracts). These contracts are presented on a net basis on the balance sheet per counterparty and currency. The Bank amortises positive differences between the value measured by a valuation model upon initial recognition and the transaction price (day 1 gains/losses) over the life of the derivative. Such not yet recognised day 1 gains amounted to SEK 412 million (500) at year-end. 231Handelsbanken Annual Report 2025 3.1
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G25 Hedge accounting The Group’s overall objective for its risk man - agement and hedge accounting is to protect itself against the risk of variations in fair values and future cash flows attributable to lending and funding arising from changes in interest rates and exchange rates. In order to achieve this objective, the Group makes use of deriva - tives. Hedge accounting is applied to ensure that the Group’s risk management strategy is reflected in the financial reports. For informa - tion about the Group’s management of market risk, see note G2. The hedging strategies and various types of hedge accounting applied by the Group are described below, divided into risk categories. For a description of the accoun - ting policies for hedge accounting, see note G1. Fair value hedges Interest rate risk in fixed-rate lending and funding The purpose of this hedging strategy is to min - imise the risk of changes in the fair values of fixed-interest lending and funding arising from changes in market interest rates. The hedged risk is defined as a reference rate, which com - prises an observable component of the inter - est. The hedged items are comprised of fixed-interest loans to the public and issued fixed-interest securities. The hedging instru - ments consist of interest rate swaps, in which a fixed interest rate is paid and a variable inter - est rate is received, or a fixed interest rate is received and a variable interest rate is paid. Measuring effectiveness The effectiveness of the hedges is measured through a comparison of the change in the fair value of the hedged risk in lending and funding with the change in fair value of the interest rate swaps from the time when the hedging rela - tionship was entered into. The effectiveness is measured from both a prospective and retro - spective standpoint. Prospectively by shifting yield curves and discount curves. A qualitative method is used to assess prospective effec - tiveness for cases in which there is a “match of critical terms” when the hedging relationship is entered into and in subsequent periods. Retro - spectively, the dollar-offset method and a regression analysis are applied. The effective - ness of a hedging relationship is tested when the relationship is entered into and thereafter on a monthly basis. Criteria applied in measuring effectiveness In order to qualify for hedge accounting, the ratio between the change in fair value of the hedged risk in the hedged item, and the actual derivative must be within the 80–125% interval when applying the dollar-offset method. Effec - tiveness is also measured by applying a regres - sion analysis, and in such case the following criteria must be fulfilled in order to establish an effective hedging relationship: • The gradient of the curve must be within the interval 0.8 <b <1.25. • R2 must be >0.96. Ineffectiveness Ineffectiveness is measured through a com - parison of the change in the fair value of the interest rate swap with the change in fair value of the hedged risk in lending and funding from the hedging relationship’s start date to the end of the period. The main explanation for ineffectiveness in these hedging relationships is changes in fair value arising from the variable interest in the interest rate swap, which is not matched by a change in value in the hedged risk in the lending or funding. Portfolio hedging of fair value, with regard to interest rate risk Interest rate risk in fixed-rate lending portfolios This hedging strategy aims to minimise the risk of changes in the fair values of fixed-interest lending portfolios arising from changes in mar - ket interest rates. The hedged risk is defined as changes in the fair value of a portion of a lending portfolio with fixed interest, with regard to changes in a reference rate in each cur - rency. The hedged item consists of an amount in a currency determined on the basis of a fixed-rate lending portfolio. The lending port - folio is divided into interest rate fixing periods. The hedged amount is established on the basis of the interest rate risk the Bank wishes to hedge in the selected interest rate fixing periods. The hedging instruments consist of interest rate swaps, in which a variable interest rate is received and a fixed interest rate is paid. One or more hedging instruments are defined for each interest rate fixing period. A description of the measuring of effective - ness and ineffectiveness is provided in the Fair value hedges section above. Hedging instruments in fair value hedges 2025 2024 SEK m Up to 1 yr 1–5 yrs Over 5 yrs Up to 1 yr 1–5 yrs Over 5 yrs Interest rate risk Interest rate swaps, variable interest paid and fixed interest received Nominal amount 80,665 442,259 55,117 42,694 455,479 73,920 Average fixed interest, % 2.00 2.73 3.30 2.09 2.74 2.21 Cross-currency interest rate swaps, variable interest paid and fixed interest received Nominal amount 926 1,046 Average fixed interest, % 3.69 3.69 Total 80,665 443,185 55,117 42,694 456,525 73,920 232 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Hedging instruments and ineffectiveness in fair value hedges 2025 SEK m Nominal amount hedging instruments Carrying amount hedging instruments Change in fair value used to calculate ineffectiveness Ineffectiveness recognised in the income statementAssets Liabilities Interest rate risk Interest rate swaps, variable interest paid and fixed interest received 578,041 8,167 6,803 2,531 −12 Cross-currency interest rate swaps, variable interest paid and fixed interest received 926 0 12 53 −3 Total 578,967 8,167 6,815 2,584 −15 Portfolio fair value hedges Interest rate risk Interest rate swaps, fixed interest paid and variable interest received 100,663 5,833 391 −869 20 Total 100,663 5,833 391 −869 20 Hedging instruments and ineffectiveness in fair value hedges 2024 SEK m Nominal amount hedging instruments Carrying amount hedging instruments Change in fair value used to calculate ineffectiveness Ineffectiveness recognised in the income statementAssets Liabilities Interest rate risk Interest rate swaps, variable interest paid and fixed interest received 572,093 8,882 11,422 4,664 −74 Cross-currency interest rate swaps, variable interest paid and fixed interest received 1,046 83 0 6 Total 573,139 8,965 11,422 4,664 −68 Portfolio fair value hedges Interest rate risk Interest rate swaps, fixed interest paid and variable interest received 122,844 6,803 258 −3,248 9 Total 122,844 6,803 258 −3,248 9 The carrying amount of hedging instruments is included in the item Derivative instruments in the balance sheet. Ineffectiveness recognised in the income statement is included in the item Net gains/losses on financial transactions. Hedged items in fair value hedges 2025 SEK m Carrying amount hedged item Accumulated fair value adjustment included in the carrying amount of the hedged item Change in fair value used to calculate ineffectivenessAssets Liabilities Assets Liabilities Interest rate risk Issued fixed-interest securities and subordinated liabilities 578,565 −3,919 −2,599 Total 578,565 −3,919 −2,599 Portfolio fair value hedges¹ Interest rate risk Fixed-interest loans to the public −5,510 −5,510 889 Total −5,510 −5,510 889 Hedged items in fair value hedges 2024 SEK m Carrying amount hedged item Accumulated fair value adjustment included in the carrying amount of the hedged item Change in fair value used to calculate ineffectivenessAssets Liabilities Assets Liabilities Interest rate risk Issued fixed-interest securities and subordinated liabilities 567,278 −6,595 −4,733 Total 567,278 −6,595 −4,733 Portfolio fair value hedges¹ Interest rate risk Fixed-interest loans to the public −6,399 −6,399 3,258 Total −6,399 −6,399 3,258 1) The nominal volume of the underlying lending portfolio was SEK 100,663 million (122,844) as at 31 December 2025. No accumulated amount of adjustments to fair value hedges remained on the balance sheet for hedged items which are no longer adjusted for changes in fair value either this year or last year. G25 cont. 233Handelsbanken Annual Report 2025 3.1
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Cash flow hedges Interest rate risk in variable-rate lending and funding The purpose of this hedging strategy is to min - imise the uncertainty associated with future incoming and outgoing payments of interest arising due to changes in variable interest rates, and instead to receive and pay amounts according to fixed interest rates which are known when entering into the hedge. The hedged item consists of highly probable future incoming and outgoing payments relating to variable-rate loans and to issued floating-rate securities. The hedged risk is defined as a floating reference rate in the respective cur - rency, which comprises an observable compo - nent of the interest. The hedging instruments consist of interest rate swaps, in which a fixed interest rate is received and a variable interest rate is paid, or a fixed interest rate is paid and a variable interest rate is received. Foreign exchange risk in funding The hedging strategy aims to minimise the uncertainty associated with future payments of interest arising due to changes in exchange rates, and instead to pay interest in the func - tional currency, at a rate which is known when entering into the hedge. The hedged item con - sists of highly probable future interest pay - ment and repayments of nominal amounts attributable to issued securities in a currency other than the functional currency. The hedged risk is comprised of the risk of changes in these future payments arising due to fluctuations in the exchange rate between the funding currency and the functional cur - rency. The hedging instruments consist of for - eign exchange derivatives. Foreign exchange risk in internal loans to or from foreign operations The intention of this hedging strategy is to minimise the risk of volatility linked to fluctua - tions in exchange rates on internal loans to or from foreign operations. The hedged item con - sists of the nominal amount of an internal loan between the Group’s treasury department and a foreign operation, issued in the functional currency of the foreign operation. The hedged risk consists of the risk of changes in cash flows attributable to interest payments, and repayments of nominal amounts, due to differ - ences in the exchange rate between the cur - rency of the internal loan and the parent com - pany’s functional currency, the Swedish krona. The hedging instruments consist of foreign exchange derivatives. Measuring effectiveness The effectiveness of a hedging relationship is tested when the relationship is entered into and thereafter on a monthly basis. The effec - tiveness of hedges is tested from both a pro - spective and retrospective standpoint. Pro - spectively by shifting yield curves and discount curves. A qualitative method is used to assess prospective effectiveness for cases in which there is a “match of critical terms” when the hedging relationship is entered into and in subsequent periods. Retrospectively, a regression analysis and the dollar-offset method are applied. When effectiveness is measured, the hedged risk is represented by a perfectly effective hypothetical derivative (PEH), which matches the critical terms of the hedged item. The fair value of the hypothetical derivative (PEH) is zero at the start date of the hedging relationship. Measuring effectiveness entails a comparison of the change in fair value of the hypothetical derivative (PEH) with the change in fair value of the actual derivative from the start date of the hedging relationship. Criteria applied in measuring effectiveness In order to qualify for hedge accounting, the ratio between the change in fair value of the hedged risk in the hedged item, represented by the hypothetical derivative (PEH), and the actual derivative must be within the 80–125% interval when applying the dollar-offset method. Effectiveness is also measured by applying a regression analysis, and in such case the following criteria must be ful - filled in order to establish an effective hedg - ing relationship: • The gradient of the curve must be within the interval 0.8 <b <1.25. • R2 must be >0.96. Ineffectiveness Ineffectiveness is measured through a com - parison of the change in the fair value of the hedged risk in the hedged item, represented by the hypothetical derivative (PEH), with the change in fair value of the actual derivative from the hedging relationship’s start date to the end of the period. The hedge is deemed ineffective if the change in fair value of the derivative exceeds the change in value of the hypothetical derivative (PEH) in absolute terms. The main explanations for ineffectiveness in these hedging relationships are differences in market interest rates and exchange rates between the start date of the hedging relation - ship and the transaction date for the derivative. Ineffectiveness is also explained by changes in fair value attributable to certain interest components in the derivative which are not included in the hedged risk. G25 cont. 234 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Hedging instruments in cash flow hedges SEK m 2025 2024 Up to 1 yr 1–5 yrs Over 5 yrs Up to 1 yr 1–5 yrs Over 5 yrs Interest rate risk Interest rate swaps, fixed interest paid and variable interest received Nominal amount 3,125 10,414 3,867 8,338 12,627 6,078 Average fixed interest, % 0.62 0.68 0.97 0.47 0.72 0.77 Interest rate swaps, variable interest paid and fixed interest received Nominal amount 15,506 12,217 2,942 25,498 28,746 1,148 Average fixed interest, % 0.75 2.15 3.09 2.13 1.35 1.54 Foreign exchange risk Foreign exchange derivatives, EUR/SEK Nominal amount 17,218 25,216 11,944 10,865 43,747 1,089 Average exchange rate EUR/SEK 0.0933 0.0899 0.0916 0.0975 0.0913 0.0970 Foreign exchange derivatives, EUR/NOK Nominal amount 18,519 67,612 23,543 2,758 75,390 31,183 Average exchange rate EUR/NOK 0.0996 0.0950 0.0864 0.1008 0.0953 0.0932 Foreign exchange derivatives, USD/GBP Nominal amount 930 1,076 Average exchange rate USD/GBP 1.3157 1.3157 Foreign exchange derivatives, USD/NOK Nominal amount 15,050 21,318 8,923 36,864 Average exchange rate USD/NOK 0.1082 0.0979 0.1064 0.1027 Foreign exchange derivatives, USD/SEK Nominal amount 2,990 10,857 4,556 3,646 11,551 5,011 Average exchange rate USD/SEK 0.0930 0.1033 0.1105 0.1016 0.1003 0.1105 Foreign exchange derivatives, AUD/EUR Nominal amount 3,969 5,567 2,872 10,353 Average exchange rate AUD/EUR 1.5279 1.5573 1.5287 1.5451 Foreign exchange derivatives, AUD/NOK Nominal amount 11,066 3,749 Average exchange rate AUD/NOK 0.1491 0.1427 Foreign exchange derivatives, other currency pairs Nominal amount 3,861 331 4,071 Total 76,377 169,058 46,852 63,231 228,174 44,509 Hedging instruments and ineffectiveness in cash flow hedges 2025 SEK m Nominal amount hedging instruments Carrying amount hedging instruments Change in fair value used to calculate ineffectiveness Change in the value of the hedging instruments recognised in other comprehensive income Ineffectiveness recognised in the income statement Reclassified from the hedge reserve to the income statementAssets Liabilities Interest rate risk Interest rate swaps, fixed interest paid and variable interest received 17,406 1,282 1 −416 −408 −8 Interest rate swaps, variable interest paid and fixed interest received 30,665 13 340 572 572 0 171 Foreign exchange risk¹ Foreign exchange derivatives, EUR/SEK 54,378 366 1,330 194 196 −2 Foreign exchange derivatives, EUR/NOK 109,674 10,541 105 198 227 −29 Foreign exchange derivatives, USD/GBP 930 24 −1 −1 Foreign exchange derivatives, USD/NOK 36,368 2,028 1,400 −141 −134 −7 Foreign exchange derivatives, USD/SEK 18,403 185 1,160 −301 −301 0 Foreign exchange derivatives, AUD/EUR 9,536 1,183 −29 −31 2 Foreign exchange derivatives, AUD/NOK 11,066 173 147 −10 −7 −3 Foreign exchange derivatives, other currency pairs 3,861 439 −3 −5 2 25 Total 292,287 15,027 5,690 63 108 −45 196 G25 cont. 235Handelsbanken Annual Report 2025 3.1
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Hedging instruments and ineffectiveness in cash flow hedges 2024 SEK m Nominal amount hedging instruments Carrying amount hedging instruments Change in fair value used to calculate ineffectiveness Change in the value of the hedging instruments recognised in other comprehensive income Ineffectiveness recognised in the income statement Reclassified from the hedge reserve to the income statementAssets Liabilities Interest rate risk Interest rate swaps, fixed interest paid and variable interest received 27,043 1,785 −708 −702 −6 Interest rate swaps, variable interest paid and fixed interest received 55,392 293 954 1,496 1,496 154 Foreign exchange risk¹ Foreign exchange derivatives, EUR/SEK 55,701 3,061 114 −143 −144 1 1 Foreign exchange derivatives, EUR/NOK 109,331 11,893 39 −498 −521 23 10 Foreign exchange derivatives, USD/GBP 1,076 50 6 6 Foreign exchange derivatives, USD/NOK 45,787 7,249 80 79 1 Foreign exchange derivatives, USD/SEK 20,208 2,829 94 96 −2 Foreign exchange derivatives, other currency pairs 21,376 476 1,069 22 24 −2 9 Total 335,914 27,636 2,176 349 334 15 174 1) When analysing for the purposes of hedge accounting, the conversion to the parent company’s functional currency, SEK, is taken into account by imputing nominal derivative legs in the hedging relationships. The imputed derivative legs are not included in the nominal volumes presented in the tables above. The carrying amount of hedging instruments is included in the item Derivative instruments in the balance sheet. Ineffectiveness recognised in the income statement is included in the item Net gains/losses on financial transactions. Reclassified to the income statement is included under Net gains/losses on financial transactions and refers to cash flow hedges terminated before their maturity date. Hedged items in cash flow hedges 2025 2024 SEK m Change in value used to calculate ineffectiveness Hedge reserve Amounts remaining in the hedge reserve from hedging relation- ships for which hedge accounting is no longer applied Change in value used to calculate ineffectiveness Hedge reserve Amounts remaining in the hedge reserve from hedging relation- ships for which hedge accounting is no longer applied Interest rate risk Issued variable-interest securities 408 1,235 702 1,647 Variable-interest loans to the public −572 −297 446 −1,496 −699 618 Foreign exchange risk Issued securities and subordinated liabilities in EUR and internal loans in NOK −424 −692 665 −1,094 Issued securities and subordinated liabilities in USD and internal loans in EUR, GBP and NOK 437 18 31 −181 488 58 Issued securities and internal loans in other currencies 43 35 0 −24 46 −2 Total −108 299 477 −334 388 674 G25 cont. 236 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G26 Offsetting of financial instruments Assets 2025 2024 SEK m Derivatives Reverse repurchase agreements Securities borrowing Total Derivatives Reverse repurchase agreements Securities borrowing Total Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements Gross amount 54,367 32,369 1,014 87,750 91,213 32,986 513 124,712 Amounts offset −32,615 −795 −33,410 −44,144 −3,735 −47,879 Carrying amount on the balance sheet 21,752 31,574 1,014 54,340 47,069 29,251 513 76,833 Related amounts not offset on the balance sheet Financial instruments, netting arrangements −7,366 −7,366 −4,787 −4,787 Financial assets received as collateral −12,355 −31,574 −1,014 −44,943 −37,378 −29,208 −513 −67,099 Total amounts not offset on the balance sheet −19,721 −31,574 −1,014 −52,309 −42,165 −29,208 −513 −71,886 Net amount 2,031 0 2,031 4,904 43 4,947 Liabilities 2025 2024 SEK m Derivatives Repurchase agreements Securities lending Total Derivatives Repurchase agreements Securities lending Total Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements Gross amount 49,210 795 50,005 50,287 3,736 54,023 Amounts offset −22,999 −795 −23,794 −34,331 −3,735 −38,066 Carrying amount on the balance sheet 26,211 0 26,211 15,956 1 15,957 Related amounts not offset on the balance sheet Financial instruments, netting arrangements −7,789 −7,789 −4,787 −4,787 Financial assets pledged as collateral −11,578 −11,578 −3,554 −1 −3,555 Total amounts not offset on the balance sheet −19,367 0 −19,367 −8,341 −1 −8,342 Net amount 6,844 6,844 7,615 7,615 Derivative instruments are offset on the bal - ance sheet when this reflects the Bank’s antic - ipated cash flows in the settlement of two or more agreements. Repurchase agreements and reverse repurchase agreements with cen - tral counterparty clearing houses are offset on the balance sheet when this reflects the Bank’s anticipated cash flows in the settlement of two or more agreements. This occurs when the Bank has both a contractual right and an intention to settle the agreed cash flows with a net amount. The amount offset for derivative assets includes offset cash collateral of SEK 9,987 million (11,617) derived from the balance sheet item Deposits and borrowing from the public. The amount offset for derivative liabili - ties includes offset cash collateral of SEK 371 million (1,804), derived from the balance sheet item Loans to the public. The remaining counterparty risk in deriva - tives is reduced through netting agreements, i.e., netting positive values against negative values in all derivative transactions with the same counterparty in a bankruptcy situation. Handelsbanken’s policy is to sign netting agreements with all bank counterparties. Netting agreements are supplemented with agreements for issuing collateral for the net exposure. The collateral used is mainly cash, but government securities are also used. Col - lateral for repurchase agreements and borrow - ing and lending of securities is normally in the form of cash or other securities. 237Handelsbanken Annual Report 2025 3.1
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G27 Intangible assets 2025 Indefinite useful life Finite useful life SEK m Goodwill Trademarks and other rights Customer contracts Internally developed software¹ Other Total Cost, opening balance 4,360 3 754 6,867 168 12,152 Acquisitions 559 559 Disposals and retirements −363 −164 −527 Foreign exchange effects −66 −57 −109 −232 Cost, closing balance 4,294 3 697 6,954 3 11,952 Accumulated amortisation and impairment, opening balance −363 −3,199 −164 −3,727 Disposals and retirements 363 164 527 Amortisation −36 −800 −836 Impairment Foreign exchange effects 30 45 75 Accumulated amortisation and impairment, closing balance −369 −3,591 0 −3,961 Carrying amount 4,294 3 328 3,363 3 7,991 2024 Indefinite useful life Finite useful life SEK m Goodwill Trademarks and other rights Customer contracts Internally developed software¹ Other Total Cost, opening balance 4,356 3 718 6,453 168 11,697 Acquisitions 680 680 Disposals and retirements −302 −302 Foreign exchange effects 4 36 37 77 Cost, closing balance 4,360 3 754 6,867 168 12,152 Accumulated amortisation and impairment, opening balance −309 −2,691 −131 −3,132 Amortisation −37 −786 −33 −856 Impairment −3 −3 Disposals and retirements 302 302 Foreign exchange effects −17 −21 −38 Accumulated amortisation and impairment, closing balance −363 −3,199 −164 −3,727 Carrying amount 4,360 3 391 3,668 3 8,426 1) For internally developed new software or for developing existing software for new business activities, costs incurred that can be reliably calculated are capitalised from the date on which it is probable that economic benefits will flow. In other cases, development expenses are expensed as they arise. During the year, development expenses amounting to SEK 2,607 million (2,994) were expensed and are included in the income statement item Other expenses. Cash-generating units Indefinite useful life Goodwill Trademarks and other rights SEK m 2025 2024 2025 2024 Handelsbanken Sweden 3,341 3,341 3 3 Handelsbanken UK 177 198 Handelsbanken Norway 604 639 Handelsbanken Netherlands 172 183 Total 4,294 4,360 3 3 238 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Intangible assets with an indefinite useful life Intangible assets with an indefinite useful life are recorded at cost less any impairment losses. The Group’s intangible assets with an indefinite useful life primarily comprise goodwill. These assets are tested annually for impairment when preparing the Annual Report or when there is an indication that the asset is impaired. Impairment testing is performed by calculating the recoverable amount of the assets, i.e., the higher of the value in use and the fair value less costs to sell. As long as the recoverable amount exceeds the carrying amount, no impairment loss needs to be rec - ognised. Impairment losses are recognised directly in the income statement. Impairment testing of goodwill Recognised goodwill has arisen on business combinations and mainly derives from tradi - tional banking operations in Handelsbanken’s home markets. To test goodwill for impairment, it was allocated on the acquisition date to the cash-generating unit, or units, that are expected to benefit from the acquisition. A cash-generating unit is the smallest identi - fiable group of assets that generates cash inflows that are largely independent of other assets. In the Bank, the cash-generating units are operating segments and goodwill is moni - tored at the operating segment level, see the table that specifies goodwill by operating seg - ment. When performing impairment testing, the value in use of each cash-generating unit is calculated by discounting expected future cash flows and the terminal value. The terminal value used is the forecast value of the net assets of each cash-generating unit. Previ - ously recognised impairment losses on good - will are not reversed. The expected future cash flows for the first five years are based on forecasts of risk- weighted volumes, income, expenses and credit losses. The forecasts are mainly based on an internal assessment of assumptions about the future income and cost develop - ment, economic climate and expected interest rates. After the first five-year period, a forecast is made based on the assumption of a long- term growth rate. The estimated cash flows are based on historical real GDP growth as well as the Riksbank’s long-term inflation target. The year’s impairment test is based on an assump - tion of a long-term growth rate of 2% (2). The total forecast period is 20 years, which is justi - fied based on the Bank’s intention to conduct operations in its home market for the long term. The expected future cash flows have been discounted at a rate based on a risk-free interest rate and a risk adjustment correspond - ing to the market’s average return requirement. In the annual impairment test, the discount rate was 6.4% (6.5) after tax. The corresponding rate before tax was 9.7% (9.2). The same dis - count rate was used for all operating segments. The difference between the recoverable amounts and the carrying amounts in the annual impairment test of goodwill was deemed to be satisfactory. The calculated value in use of goodwill is sensitive to a num - ber of assumptions, which are significant for expected cash flows and the discount rate. The assumptions that are of greatest signifi - cance to the calculation are the assumptions for interest rates and the business cycle as well as assumptions about future income and cost development. No reasonably possible change in significant assumptions would affect the carrying amount of goodwill. Intangible assets with a finite useful life Intangible assets for which it is possible to establish an estimated useful life are amor - tised. The amortisation is on a straight-line basis over the useful life of the asset. Currently this means that customer relationships are amortised over 20 years and that internally developed software is normally amortised over five years. In certain infrastructure projects, the useful life is assessed to be more than five years. For these types of investment, the amortisation period is up to 15 years. Brand names which are subject to amortisation are amortised over five years. The amortisation period is tested on an individual basis at the time of new acquisition and also continually if there are indications that the useful life may have changed. Intangible assets with a finite useful life are reviewed for impairment when there is an indication that the asset may be impaired. The impairment test is performed according to the same principles as for intangi - ble assets with an indefinite useful life, i.e., by calculating the recoverable amount of the asset. G27 cont. 239Handelsbanken Annual Report 2025 3.1
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G28 Tangible assets SEK m 2025 2024 Property 1,344 1,271 Equipment 879 908 Right-of-use assets 2,732 2,622 Property repossessed for protection of claims 2 2 Total 4,956 4,803 2025 SEK m Property Equipment Right-of-use assets Total Cost, opening balance 1,910 2,305 5,604 9,819 Acquisitions 113 418 910 1,441 Impairment −15 −15 Assessment and modifications 44 44 Disposals and retirements −4 −314 −826 −1,144 Foreign exchange effects −2 −119 −140 −260 Cost, closing balance 2,018 2,276 5,592 9,885 Accumulated depreciation and impairment, opening balance −639 −1,397 −2,982 −5,018 Depreciation −39 −404 −730 −1,174 Impairment −2 −20 −21 Disposals and retirements 4 326 826 1,156 Foreign exchange effects 2 80 45 127 Accumulated depreciation and impairment, closing balance −673 −1,397 −2,860 −4,931 Property repossessed for protection of claims 2 Carrying amount 1,344 879 2,732 4,956 2024 SEK m Property Equipment Right-of-use assets Total Cost, opening balance 1,844 2,098 5,307 9,249 Acquisitions 90 475 401 964 Impairment −37 −37 Assessment and modifications 150 151 Disposals and retirements −25 −296 −357 −677 Foreign exchange effects 1 65 103 169 Cost, closing balance 1,910 2,305 5,604 9,819 Accumulated depreciation and impairment, opening balance −588 −1,313 −2,573 −4,474 Depreciation −38 −359 −704 −1,101 Impairment −38 28 −12 −22 Disposals and retirements 25 291 357 672 Foreign exchange effects 0 −44 −50 −93 Accumulated depreciation and impairment, closing balance −639 −1,397 −2,982 −5,018 Property repossessed for protection of claims 2 Carrying amount 1,271 908 2,622 4,803 The Group’s tangible assets consist of property (owner-occupied properties) and equipment as well as right-of-use assets. These assets are recorded at cost of acquisition less accumulated depreciation and impairment losses. Depreciation is based on the estimated useful lives of the assets and a straight-line depreciation plan is applied. The estimated useful lives are reviewed annually. No material changes were made to the useful lives in 2025. The useful life of equipment is deemed to be 2–10 years. Separate depreciation plans are applied to the different sub-components of properties. The useful life for the buildings structure is deemed to be 100 years and the remaining sub-components are deemed to have useful lives of between 10 and 35 years. The useful life of the right-of-use assets that are primarily leased premises is deemed to be the same as the term of the lease. Information about the corresponding lease liability is presented in note G47 Leases. Impairment testing of tangible assets is carried out when there is an indication that the value of the asset may have decreased. There was no indication on the balance sheet date that tangible assets required impairment. 240 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G29 Other assets SEK m 2025 2024 Claims on investment banking settlements 3,671 5,310 Accounts receivable 2,017 4,576 Tax and VAT receivables 837 121 Reinsurance assets 24 21 Other 407 1,868 Total 6,956 11,896 G30 Prepaid expenses and accrued income SEK m 2025 2024 Accrued income 1,424 1,397 Prepaid expenses 1,093 1,071 Total 2,518 2,468 G31 Due to credit institutions SEK m 2025 2024 Banks 62,447 76,538 Other credit institutions 2,078 7,742 Total 64,525 84,280 of which repurchase agreements 0 of which cash collateral received 12,446 32,374 Average volumes SEK m 2025 2024 Due to credit institutions 145,127 145,140 241Handelsbanken Annual Report 2025 3.1
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G32 Deposits and borrowing from the public SEK m 2025 2024 Households 511,167 488,269 Corporates 562,484 573,184 National Debt Office 1 1 Total deposits 1,073,652 1,061,454 Households 121,033 130,632 Corporates 98,836 118,653 National Debt Office 263 Total borrowing 220,133 249,285 Total deposits and borrowing from the public 1,293,784 1,310,739 of which repurchase agreements 0 1 of which cash collateral received 2,406 3,941 Average volumes SEK m 2025 2024 Deposits and borrowing from the public 1,449,562 1,483,429 G33 Liabilities where the customer bears the value change risk SEK m 2025 2024 Unit-linked insurance liabilities 238,334 226,268 Portfolio bond insurance liabilities 74,378 61,977 Other 2 17 Total 312,714 288,263 242 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G34 Issued securities 2025 2024 SEK m Carrying amount Nominal amount Carrying amount Nominal amount¹ Certificates of deposit (CD) 179,446 178,713 273,323 270,441 Commercial paper (CP) 341,827 345,070 347,394 351,790 Other certificates 659 607 614 582 Covered bonds 657,652 653,256 679,583 676,726 Senior bonds 163,657 162,910 173,226 173,281 Senior non-preferred bonds 85,944 87,500 75,887 78,229 Total 1,429,185 1,428,056 1,550,027 1,551,049 1) The nominal amounts for 2024 have been updated in connection with the changes to the presentation of this note. Change in issued securities, etc. SEK m 2025 2024 Opening balance 1,550,027 1,523,481 Issued 935,374 1,060,981 Repurchased −46,358 −54,766 Matured −937,207 −1,035,785 Foreign exchange effects −81,573 40,372 Other 8,923 15,743 Closing balance 1,429,185 1,550,027 Average volumes SEK m 2025 2024 Issued securities, etc. 1,524,611 1,602,234 G35 Short positions SEK m 2025 2024 Equities 851 621 Interest-bearing securities 1,312 386 Total 2,163 1,007 Average volumes SEK m 2025 2024 Short positions 15,215 15,653 243Handelsbanken Annual Report 2025 3.1
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G36 Insurance liabilities Insurance liabilities 2025 SEK m Liability for remaining coverage (GMM) Liability for incurred claims (GMM) Liability for remaining coverage (PAA) Liability for incurred claims – Present value of future cash flows (PAA) Liability for incurred claims – Risk adjustment (PAA) Total Opening balance 7,530 0 6 262 10 7,808 Insurance revenue – GMM −594 −594 of which expected insurance service expenses −542 −542 of which write-off of contractual service margin −35 −35 of which write-off of risk adjustment −19 −19 Insurance revenue – PAA 1 −561 −560 Insurance service expenses 541 404 −1 944 Insurance service result −594 541 −561 404 −1 −211 Financial income and expenses through profit or loss 70 3 73 Financial income and expenses through other comprehensive income 16 16 Cash flows – premiums paid 12 557 569 Cash flows – disbursements −541 −404 −945 Foreign exchange effects 0 Closing balance 7,033 0 1 266 9 7,310 Insurance liabilities 2024 SEK m Liability for remaining coverage (GMM) Liability for incurred claims (GMM) Liability for remaining coverage (PAA) Liability for incurred claims – Present value of future cash flows (PAA) Liability for incurred claims – Risk adjustment (PAA) Total Opening balance 8,129 0 8 260 9 8,407 Insurance revenue – GMM −610 −610 of which expected insurance service expenses −557 −557 of which write-off of contractual service margin −35 −35 of which write-off of risk adjustment −19 −19 Insurance revenue – PAA 1 −576 −575 Insurance service expenses 550 428 1 979 Insurance service result −610 550 −576 428 1 −207 Financial income and expenses through profit or loss 62 4 66 Financial income and expenses through other comprehensive income −66 −66 Cash flows – premiums paid 14 574 588 Cash flows – disbursements −550 −430 −980 Foreign exchange effects 0 0 Closing balance 7,530 0 6 262 10 7,808 244 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Insurance liabilities GMM – by component 2025 SEK m Present value of future cash flows Risk adjustment Contractual service margin Total Opening balance 6,646 329 554 7,530 Changes related to future services −3 −18 21 0 Changes related to services for current period 1 −19 −35 −53 Changes related to previous services Insurance service result −2 −37 −14 −53 Financial income and expenses through profit or loss and other comprehensive income 83 −2 5 86 Cash flows −529 −529 Closing balance 6,198 291 545 7,033 Insurance liabilities GMM – by component 2024 SEK m Present value of future cash flows Risk adjustment Contractual service margin Total Opening balance 7,138 351 641 8,129 Changes related to future services 62 −5 −57 0 Changes related to services for current period −5 −20 −35 −60 Changes related to previous services Insurance service result 57 −25 −92 −60 Financial income and expenses through profit or loss and other comprehensive income −12 3 5 −4 Cash flows −536 −536 Closing balance 6,646 329 554 7,530 Yield curve used for discounting Locked-in yield curve, % Current yield curve, % Term 2025 2024 2025 2024 1 yr 1.00 0.89 1.97 2.25 2 yrs 0.94 0.95 2.09 2.27 5 yrs 1.00 0.92 2.47 2.41 10 yrs 1.86 1.61 2.90 2.65 20 yrs 2.70 2.57 3.13 2.94 Mortality table Remaining life expectancy in years, from age 65 Cohort Women Men 1940 23.9 22.2 1950 24.6 21.8 1960 25.3 23.3 1970 25.8 24.0 1980 26.2 24.4 Contractual service margin Proportion of contractual service margin expected to remain, % Year 2025 2024 2024 100 2025 100 94 2026 94 88 2030 71 67 2040 32 29 2050 11 10 G36 cont. 245Handelsbanken Annual Report 2025 3.1
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The bank’s insurance operations are con - ducted by Handels banken Liv. The bal- ance-sheet item Insurance liabilities comprises insurance contracts that transfer significant insurance risk from the policyholders to Handels banken Liv and comprise traditional life insurance contracts and risk insurance, primar - ily in the form of health insurance, waiver of premium and death insurance taken out by small companies and private individuals in Sweden. Other than all insurance having been taken out in Sweden, no risk concentrations have been identified. The insurance liability comprises the total of the liability for remaining coverage and liability for incurred claims. For risk insurance and risk insurance components recognised in accordance with the premium allocation approach (PAA), the liability for remaining coverage is measured at received, but not yet earned premiums. For the savings insurance components in traditional life insur - ance contracts recognised according to the general measurement model (GMM), the liabil - ity for remaining coverage contains cash flows for commitments for future services and the portion of the contractual service margin that has not yet been recognised as income. Liabil - ity for incurred claims contain cash flows for commitments for previous services. The cash flow for commitments comprises the expected present value of future cash flows and a risk adjustment. The overall aim of the section below is to describe the components of the lia - bility: the expected present value of future cash flows, risk adjustment and contractual service margin. For more information on the classification and measurement of insurance contracts, see note G1 section 8. Expected present value of future cash flows The expected present value of future cash flows attributable to signed insurance con - tracts is calculated by taking into account the probability of different outcomes and dis - counting. Future cash flows include premiums, claims, claims handling and administrative expenses attributable to fulfilling the insurance contracts. The calculation is made by predict - ing the cash flows using relevant assumptions and information about each insurance con - tract. Assumptions in calculating the expected present value of future cash flows Assumptions are applied when calculating the expected present value of future cash flows which entails that the calculation is associated with uncertainty. The same assumptions are applied to the liability for remaining coverage and liability for incurred claims where relevant. The assumptions applied are based on internal historical data, industry statistics and the mar - ket situation. Handels banken Liv regularly analyses the sensitivity of the insurance liabil - ity to changes in various assumptions and any differences in the actual outcome compared with the assumed outcome. Assumptions are prepared based on an established process whereby Handels banken Liv’s actuarial department (first line of defence) is responsi - ble for regularly, and if necessary, analysing and preparing proposals for changes to assumptions. The actuarial function (second line of deference) reviews and comments on the proposal. A decision to change the assumption is made by the CEO of Handels - banken Liv. A decision on any changes to assumptions is reported to the Bank’s Valua - tion committee. The two most significant assumptions are future mortality and the yield curve used to discount future cash flows. Other significant assumptions include assump- tions on future administrative expenses and lapse assumptions, for example, transfers and surrender. Assumptions on mortality Assumptions on future mortality are based on industry statistics and internal historical data. The assumption is stated as a one-year death probability per age and year cohort and there - fore is too extensive to be presented in a table. Instead, the table shows the mortality assump - tion in the form of expected life expectancy from the age of 65. Assumptions on yield curve The current yield curve used to discount future cash flows is based on observable market prices for interest rate swaps up to 10 years, adjusted for credit risk. The yield curve for maturities over 10 years is determined by con - vergence using the Smith-Wilson method to a long-term forward interest rate. The current long-term forward interest rate was estimated to be 3.30% (3.30). The convergence period was estimated to be 10 years (10). The finan - cial market scenarios are market consistent, based on assumptions on absence of arbitrage and are consistent with the relevant risk-free interest rates used for discounting. The current yield curve and the locked-in yield curve (meaning the yield curve that was determined on the transition date) used for discounting the insurance liability are presented in the table. Risk adjustment Risk adjustment corresponds to the compen - sation required by the Bank for assuming the uncertainty in future cash flows resulting from signed insurance contracts for non-financial risk. In order to ensure a high level of solvency in Handels banken Liv, this compensation has been set as the risk margin that Handels - banken Liv has to maintain under the Solvency 2 regulations. Risk adjustment is thus calcu - lated by applying a cost of capital method whereby the future cost of capital is predicted using a cost of capital rate of 6% (6) and then discounted to a present value. The risk adjust - ment for 2025 amounted to SEK 300 million (340). Based on the assumption that the expected present value of future cash flows will follow normal distribution, this corresponds to a one-year confidence level corresponding to approximately 99.81% (99.86), valued using the current yield curve. The risk adjustment is recognised in the income statement divided between insurance service result and financial income and expenses. Contractual service margin Contractual service margin refers to the unearned gain that the Bank will recognise when the insurance coverage is provided in the future. A contractual service margin arose on the savings insurance component of tradi - tional life insurance contracts in connection with the transition to IFRS 17, comprising the difference between the fair value and the total of the expected present value of future cash flows and the risk adjustment. No new tradi - tional life insurance contracts can be taken out, and thus no further contractual service margin on new contracts will arise after the transition to IFRS 17. Handels banken has made the assessment that both the return-related services and the services associated with the provision of insurance coverage will be carried out proportional over time. Accordingly, the insurance coverage components have been chosen such that the dissolution of the con - tractual service margin will emulate a propor - tional dissolution over time. The table shows the expected rate of dissolution of the con - tractual service margin. Significant changes and events during the year The assumptions regarding transfers and sur - render for traditional life insurance policies were reviewed during the year, but resulted in no changes to the assumptions. The mortality assumptions were also reviewed during the year, which resulted in an adjustment that is not deemed material. G36 cont. 246 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Sensitivity analysis 2025 SEK m Impact on net insurance result Impact on other comprehensive income Total impact on equity Impact on insurance liability Impact on assets held on behalf of policyholders Risk variables Scenario Increase in assumption Decrease in assumption Increase in assumption Decrease in assumption Increase in assumption Decrease in assumption Increase in assumption Decrease in assumption Increase in assumption Decrease in assumption Mortality risk¹ +/-10% change in expected mortality 6 −7 −4 4 2 −3 −2 3 Disability recovery risk +/-10% change in disability recovery rate 11 −13 11 −13 −11 13 Lapse risk +/-1 percentage point change in assumed frequency of transfers and surrender 2 −2 −6 6 −4 4 4 −4 Administrative expenses risk +/-10% change in expenses for administration −2 2 2 −2 0 0 0 0 General interest rate risk +/-1 percentage point parallel shift in relevant interest rates −98 96 385 −546 287 −450 −394 556 −107 107 Specific interest rate risk (spread risk) +/-1% change in value of holdings with spread risk 30 −30 −3 2 27 −28 3 −2 30 −30 Equity price risk +/-10% change in value of equities 54 −54 −3 2 51 −53 4 −2 55 −55 Foreign exchange risk +/-10% change in other currencies against SEK 53 −53 −4 2 49 −51 5 −3 54 −54 Sensitivity analysis 2024 SEK m Impact on net insurance result Impact on other comprehensive income Total impact on equity Impact on insurance liability Impact on assets held on behalf of policyholders Risk variables Scenario Increase in assumption Decrease in assumption Increase in assumption Decrease in assumption Increase in assumption Decrease in assumption Increase in assumption Decrease in assumption Increase in assumption Decrease in assumption Mortality risk¹ +/-10% change in expected mortality 7 −8 −2 0 5 −8 −5 8 Disability recovery risk +/-10% change in disability recovery rate 11 −13 11 −13 −11 13 Lapse risk +/-1 percentage point change in assumed frequency of transfers and surrender 2 −3 −6 6 −3 3 3 −3 Administrative expenses risk +/-10% change in expenses for administration −2 2 2 −2 0 0 0 0 General interest rate risk +/-1 percentage point parallel shift in relevant interest rates −90 89 443 −606 352 −517 −452 616 −99 100 Specific interest rate risk (spread risk) +/-1% change in value of holdings with spread risk 34 −34 −4 3 31 −31 4 −3 35 −35 Equity price risk +/-10% change in value of equities 61 −61 −3 2 58 −59 4 −3 62 −62 Foreign exchange risk +/-10% change in other currencies against SEK 89 −89 −8 5 81 −84 9 −6 90 −90 1) The sensitivity analysis above includes the entire liability except for the liability for remaining coverage for insurance contracts measured according to the PAA method since this liability is measured at received, but not yet earned premiums. As a result, a changed risk variable would not have any immediate impact on this liability other than an increase in premium in the future if it was deemed to be insufficient. The risks and the sensitivity in the portfolio of traditional life insurance and risk insurance have been quantified in the table above as the effect that reasonably likely changes in material risk variables would have on net insurance result, other comprehensive income, equity, the insurance liability and assets held on behalf of policyholders. The sensitivity analysis was based on one risk variable changing and other risk variables remaining constant. In practice, it is unlikely that only one risk variable will change since changes in some of the risk variables may be correlated. When calculating the sensitivity to material risk variables, the same method was applied as that used for the reported insurance liability. The sensitivity analysis has been prepared by applying the same method for both years. Assets in traditional life insurance held on behalf of policyholders SEK m 2025 2024 Equity funds¹ 550 619 Fixed-income funds¹ 4,704 4,979 Private Equity¹ 9 16 Cash and cash equivalents 95 49 Total 5,358 5,663 1) Recognised as Shares, see note G21. G36 cont. 247Handelsbanken Annual Report 2025 3.1
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Duration Fixed-income funds Traditional life insurance Present value of future cash flows SEK m 2025 2024 2025 2024 0–1 yrs 2,645 3,233 533 518 1–5 yrs 1,802 1,446 1,807 1,796 5–10 yrs 153 195 1,592 1,701 >10 yrs 105 105 2,267 2,630 Total 4,704 4,979 6,198 6,646 Risks in insurance contracts The Bank is, through its insurance contracts, primarily exposed to market risk, credit risk, liquidity risk and insurance risk. The most material risks are described below: Market risk Market risk refers to the combined risk that changes in risk factors in financial markets – such as changes in interest rates, equity prices, or exchange rates – will result in changes in the value of investment assets and/or commitments. Interest rate risk General interest rate risk arises in traditional life insurance as a result of the difference in duration between the investment assets and the insurance liability. The duration of the liabil - ity is long, which is why the sensitivity to inter - est rates if the discount rate changes is signifi - cant. The duration of the investment assets is short, which is why the sensitivity to interest rates if the market rate changes is limited. Handels banken Liv has chosen short durations of the investment assets due to the structure of traditional life insurance. Specific interest rate risk (spread risk) arises in traditional life insurance management in hold - ings in fixed-income funds when credit spreads change, that is, the difference between the yield on the current holding and the yield on a government bond with the same maturity. The investment assets are recognised and measured at fair value through profit or loss, mandatory, see note G5 and note G6. To avoid volatility in the income statement for traditional life insurance, the effects of changed discount rates are recognised in Other comprehensive income, which comprises the difference between the liability discounted by a locked-in yield curve and the liability discounted by the current yield curve. Equity price risk Equity price risk arises in traditional life insur - ance management due to investments in mainly equity funds. Traditional life insurance contracts provide the opportunity for the poli - cyholder to receive additional benefits in addi - tion to the guaranteed benefits, if the actual return exceeds the guaranteed level. This means that Handels banken is primarily exposed to the downside of equity price risk. The expo - sure to equity price risk in the portfolio of tradi - tional life insurance management was SEK 559 million (635) at year-end. Foreign exchange risk Foreign exchange risk mainly arises in tradi - tional life insurance management as a result of investments in mutual funds with underlying assets in primarily EUR and USD. This expo - sure is limited by using currency derivatives as needed. At year-end, the net exposure in EUR corresponded to SEK 245 million (417) the net exposure in USD was SEK 261 million (457). Credit risk Credit risk arises in traditional life insurance management on holdings in fixed-income funds. This risk is limited since the underlying holdings in mutual funds are only permitted to have a minimum credit rating of BBB- (invest - ment grade) or equivalent. Liquidity risk Liquidity risk arises primarily as a result of tra - ditional life insurance providing policyholders with the opportunity to transfer their insurance capital to another insurer. This risk is managed by daily monitoring of future disbursements and is limited by investing investment assets, as far as possible, in ucits funds with very good liquidity. Insurance risk Insurance risk refers to risk other than financial risk that is transferred from the policyholder to Handels banken Liv. The most significant insur - ance risks are described below. Mortality risk The risk of loss, or of an adverse change in the value of insurance commitments, resulting from changes in mortality. Mortality risk primar - ily arises in mortality insurance. Increased mor - tality leads to an increase in the value of the insurance commitments. Longevity risk The risk of loss, or of an adverse change in the value of insurance commitments, resulting from changes in mortality. Longevity risk arises in traditional life insurance contracts under which policyholders receive a guaranteed benefit that may be life-long. Decreased mor - tality leads to an increase in the value of the insurance commitments. Disability recovery risk The risk of loss, or of an adverse change in the value of insurance commitments, resulting from changes in the disability recovery rate. Disability recovery risk primarily arises in health insurance. Decreased disability recov - ery leads to an increase in the value of the insurance commitments. Lapse risk The risk of loss, or of an adverse change in the value of insurance commitments, resulting from changes in the frequency of transfers and surrender. Lapse risk primarily arises in traditional life insurance contracts. Transfer rights exist for the entire portfolio. Administrative expenses risk The risk of loss, or of an adverse change in the value of insurance commitments, resulting from changes in expenses for administering insurance contracts. Administrative expenses risk primarily arises in traditional life insurance contracts. Increased administrative expenses lead to an increase in the value of the insur - ance commitments. G36 cont. 248 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Risk management and limitation Handels banken Liv has a low risk tolerance and follows the Bank’s risk management principles. Risks are primarily managed by Handels banken Liv maintaining a sufficient level of capital in order to be able to meet its commitments to policyholders even when unforeseen negative events occur. For more information, see the section on risks in the insurance operations in note G2. Handels banken Liv’s investment policy restricts exposure to financial risks and pro - vides overall instructions on the management of assets given the obligations to its policy - holders and statutory requirements. It also pro - vides instructions on how governance and control of the investments are to be imple - mented, and how the total risk level in the assets is to be managed. Assets are to be invested in a prudent manner so that risks can be identified, measured, analysed, and reported. Handels banken limits its exposure to insur - ance risk in several ways. Medical risk assess - ments based on the health status of the in - sured are conducted before granting mortality and health insurance if necessary. Premiums are set based on assumptions regarding the expected cost of incurred insurance events, including appropriate prudence margins, and are regularly reviewed to ensure their suffi - ciency to cover expected costs. To avoid vola - tility in the income statement, the largest mor - tality and health insurance contracts are reinsured according to established limits for self retention, see note G29 for reinsurance assets and G39 for reinsurance liabilities. G37 Taxes Tax expenses recognised in the income statement SEK m 2025 2024 Current tax −7,408 −7,814 Deferred tax 452 53 Adjustment of tax relating to prior years 201 −34 Total tax expenses, continuing operations −6,755 −7,795 Total tax expenses, discontinued operations −21 −72 Difference between the Group’s tax expense and tax expense according to applicable Swedish tax rate SEK m 2025 2024 Profit before tax 30,750 35,016 Tax on profit before tax at Swedish tax rate −6,334 −7,213 Tax recognised in the Group −6,755 −7,795 Difference −420 −582 The difference is explained by the following items: Non-taxable income/non-deductible expenses −20 −23 Non-deductible expense on subordinated liabilities −424 −515 Different tax rate in insurance operations 282 316 Non-taxable capital gains and dividends 3 0 Different tax rates in other countries −472 −487 Tax prior years 201 −34 Other 10 161 Total −420 −582 G36 cont. 249Handelsbanken Annual Report 2025 3.1
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Deferred tax assets 2025 2024 SEK m Hedging instru- ments Tangible assets Pensions Foreign tax¹ Other Off- setting Total Hedging instru- ments Tangible assets Pensions Foreign tax¹ Other Off- setting Total Opening balance 355 0 439 121 185 −943 157 546 347 300 101 −936 358 Recognised in income statement 40 232 −120 152 92 −179 84 −3 Recognised in other compre - hensive income −166 −166 −191 −191 Foreign exchange effects 0 0 Offsetting 488 488 −7 −7 Closing balance 189 0 479 353 65 −455 631 355 0 439 121 185 −943 157 Deferred tax liabilities 2025 2024 SEK m Loans to general public² Hedging instru- ments In- tangible assets Tangible assets Pen- sions Other Off- setting Total Loans to general public² Hedging instru- ments In- tangible assets Tangible assets Pen- sions Other Off- setting Total Opening balance 1,667 239 67 118 2,478 118 −943 3,744 1,878 448 65 91 2,212 211 −936 3,969 Recognised in income statement −394 −10 −12 248 −118 −286 −211 −69 2 27 215 −86 −122 Recognised in other compre - hensive income −38 122 84 −204 36 −168 Foreign exchange effects −1 −1 −2 64 15 −7 72 Offsetting 488 488 −7 −7 Closing balance 1,273 200 57 106 2,847 0 −455 4,028 1,667 239 67 118 2,478 118 −943 3,744 1) Foreign tax to be deducted in the future. 2) Of which lease assets SEK 1,205 million (1,622). Disclosures on Pillar 2 The Group has conducted an assessment of the impact of the Pillar 2 rules on the Bank based on the 2025 country-by-country (CbC) report. Handels banken does not operate in low-tax countries and no significant minimum taxes were identified for 2025 and 2024. Handels banken applies the exemption in IAS 12 entailing that the Group does not recognise or disclose deferred tax assets or liabilities related to income tax due to Pillar 2. CbC reporting Handels banken complies with the OECD Transfer Pricing Guidelines, meaning that the Group’s earnings are taxed where value is created. As part of this, the Bank produces a country-by- country report that includes information on earnings and tax paid by country. This report is submitted to the tax authority in Sweden, which then shares the report with the tax authorities in the other countries where the Bank operates. Note G49 provides essentially the same information as the CbC report that is submitted to the tax authorities. Handels banken pays tax in the countries in which the Bank conducts real operations and for which the Bank is taxed locally in accordance with the normal local tax regulations. This also applies to the Bank’s operations in Luxembourg, which consequently are not subject to local Luxembourg tax regimes that allow for lower tax rates. Unrecognised deferred tax assets and deficits Deferred tax assets on loss carry forwards and other future deductible temporary differences are recognised only if it is probable that they can be utilised in the foreseeable future. Unrecognised deferred tax assets are available locally in Stadshypotek AB and amount to SEK 247 million (124). Tax on loss carryforwards in international branches has a limited lifetime of five years and amounted to SEK 111 million. The loss carryfoward has no value because it was also taxed in the country of the head office. G37 cont. 250 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G38 Provisions SEK m 2025 2024 Expected credit losses 73 135 Other 466 243 Total 538 378 Change in provisions 2025 2024 SEK m Expected credit losses¹ Other² Total Expected credit losses¹ Other² Total Opening balance 135 243 378 299 301 601 Provisions during the year 397 397 159 159 Utilised during the year −35 −35 −41 −41 Reversal of unutilised reserves −139 −139 −177 −177 Change in expected credit losses, net −62 −62 −165 −165 Closing balance 73 466 538 135 243 378 1) This item refers to provisions for credit losses on off-balance sheet items, for more information, see notes G11 and G46. 2) The amounts allocated for future settlement of the claims on the Bank are presented under Other. This item also includes the provision for Oktogonen and variable remuneration that was reclassified from accrued expenses in 2025. Last year’s figures were not restated since the amount is immaterial. G39 Other liabilities SEK m 2025 2024 Lease liability 2,859 2,751 Liabilities from unsettled trades 3,343 2,865 Accounts payable 458 1,253 Reinsurance liabilities 112 128 Tax and VAT liabilities 1,421 2,350 Other 2,331 6,029 Total 10,524 15,376 G40 Accrued expenses and deferred income SEK m 2025 2024 Accrued expenses 1,666 2,055 Deferred income 363 880 Total 2,029 2,935 251Handelsbanken Annual Report 2025 3.1
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G41 Subordinated liabilities SEK m 2025 2024 Fixed term 25,394 27,241 Perpetual 8,667 9,813 Total 34,061 37,054 Change in subordinated liabilities SEK m 2025 2024 Opening balance 37,054 43,117 Issued 5,673 Matured −13,369 Foreign exchange effects −3,631 1,814 Other 638 −181 Closing balance 34,061 37,054 Average volumes SEK m 2025 2024 Subordinated liabilities 36,197 35,603 Specification of subordinated liabilities Year of issuance Maturity Original maturity date First possible redemption date Currency Original nominal amount in each currency Convertible/ Non-convertible Interest rate, % Outstanding amount, SEK m 2020 Perpetual¹ ² 1 Mar 2027 USD 500 Convertible⁴ 4,375 4,577 2020 Perpetual¹ ² 1 Mar 2031 USD 500 Convertible⁴ 4,750 4,090 2022 Fixed term³ 1 Jun 2033 1 Jun 2028 EUR 500 Non-convertible 3,250 5,435 2022 Fixed term³ 23 Aug 2032 23 Aug 2027 GBP 500 Non-convertible 4,625 6,199 2023 Fixed term³ 16 Aug 2034 16 Aug 2029 EUR 750 Non-convertible 5,000 8,431 2024 Fixed term³ 4 Nov 2036 4 Nov 2031 EUR 500 Non-convertible 3,625 5,329 Total subordinated liabilities 34,061 1) Subordinated to all instruments except for equities, the immediately senior is fixed-term subordinated liabilities. 2) Can be redeemed on each subsequent rate fixing date after the initial redemption date. 3) Subordinated to all senior debt. 4) The liabilities are converted to ordinary shares in Svenska Handels banken AB if Svenska Handels banken AB’s common equity tier 1 ratio falls below 5.125% or if the consolidated situation’s common equity tier 1 ratio falls below 8.0%. 252 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G42 Specification of changes in equity Change in hedge reserve SEK m 2025 2024 Opening balance 308 181 Effective part of change in fair value Interest rate risk 164 794 Foreign exchange risk −56 −460 Reclassified to the income statement¹ −196 −174 Tax 18 −33 Closing balance 238 308 Change in fair value reserve SEK m 2025 2024 Opening balance 369 197 Unrealised value change – equity instruments −2 167 Realised value change – equity instruments 10 3 Unrealised value change – debt instruments −10 5 Change in provision for expected credit losses – debt instruments −1 0 Reclassified to retained earnings – equity instruments² −10 −3 Reclassified to the income statement – debt instruments³ 0 Closing balance 356 369 Change in translation reserve, foreign operations SEK m 2025 2024 Opening balance 5,249 3,502 Change in translation difference −5,052 266 Reclassified to the income statement⁴ −55 −248 Reclassified to retained earnings⁵ −811 Closing balance 142 5,249 1) Tax reclassified to the income statement pertaining to this item amounted to SEK 40 million (35). 2) Tax reclassified to retained earnings pertaining to this item amounted to SEK – million (–). 3) Tax reclassified to the income statement pertaining to this item amounted to SEK – million (0). 4) Tax reclassified to the income statement pertaining to this item amounted to SEK 11 million (-70). 5) Tax reclassified to retained earnings pertaining to this item amounted to SEK – million (8). 253Handelsbanken Annual Report 2025 3.1
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G43 Classification of financial assets and liabilities 2025 Fair value through profit or loss SEK m Note Mandatory Fair value option Derivatives identified as hedging instruments Fair value through other comprehensive income Amortised cost Total carrying amount Fair value Assets Cash and balances with central banks 408,155 408,155 408,155 Other loans to central banks G16 24,526 24,526 24,526 Interest-bearing securities eligible as collateral with central banks G17 16,461 171,810 188,271 188,272 Loans to other credit institutions G18 21,711 21,711 21,704 Loans to the public G19 2,307,191 2,307,191 2,301,152 Value change of interest-hedged item in portfolio hedge −5,510 −5,510 Bonds and other interest-bearing securities G20 14,117 30,458 9,056 53,631 53,631 Shares G21 15,751 798 16,549 16,549 Assets where the customer bears the value change risk G23 312,284 312,284 312,284 Derivative instruments G24 7,912 13,841 21,753 21,752 Other financial assets G29 14 6,953 6,966 6,966 Total financial assets 366,539 202,268 13,841 9,855 2,763,026 3,355,527 3,354,991 Investments in associates and joint ventures G22 881 Non-financial assets 31,158 Total assets 3,387,566 Liabilities Due to credit institutions G31 64,524 64,524 61,409 Deposits and borrowing from the public G32 1,293,784 1,293,784 1,293,635 Liabilities where the customer bears the value change risk G33 312,714 312,714 312,714 Issued securities G34 659 1,428,526 1,429,185 1,431,665 Derivative instruments G24 20,849 5,361 26,210 26,211 Short positions G35 2,163 2,163 2,163 Other financial liabilities G39 15 10,648 10,663 10,663 Subordinated liabilities G41 34,062 34,062 35,173 Total financial liabilities 23,687 312,714 5,361 2,831,544 3,173,306 3,173,634 Non-financial liabilities 14,905 Total liabilities 3,188,211 254 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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2024 Fair value through profit or loss SEK m Note Mandatory Fair value option Derivatives identified as hedging instruments Fair value through other comprehensive income Amortised cost Total carrying amount Fair value Assets Cash and balances with central banks 530,009 530,009 530,009 Other loans to central banks G16 12,547 12,547 12,547 Interest-bearing securities eligible as collateral with central banks G17 4,862 167,745 172,607 172,606 Loans to other credit institutions G18 18,923 18,923 18,632 Loans to the public G19 2,372,086 2,372,086 2,365,414 Value change of interest-hedged item in portfolio hedge −6,399 −6,399 Bonds and other interest-bearing securities G20 10,329 23,920 13,259 47,508 47,508 Shares G21 13,942 804 14,746 14,746 Assets where the customer bears the value change risk G23 287,984 287,984 287,984 Derivative instruments G24 21,340 25,729 47,069 47,069 Other financial assets G29 13 11,903 11,916 11,916 Total financial assets 338,470 191,665 25,729 14,063 2,939,069 3,508,995 3,508,431 Investments in associates and joint ventures G22 860 Non-financial assets 29,317 Total assets 3,539,173 Liabilities Due to credit institutions G31 84,527 84,527 84,592 Deposits and borrowing from the public G32 1,320,481 1,320,481 1,320,543 Liabilities where the customer bears the value change risk G33 288,263 288,263 288,263 Issued securities G34 614 1,549,413 1,550,027 1,545,408 Derivative instruments G24 14,583 1,373 15,956 15,956 Short positions G35 1,007 1,007 1,007 Other financial liabilities G39 12 15,687 15,700 15,700 Subordinated liabilities G41 37,054 37,054 38,263 Total financial liabilities 16,216 288,263 1,373 3,007,162 3,313,015 3,309,732 Non-financial liabilities 16,131 Total liabilities 3,329,146 Assets and liabilities in the table above include the disposal group in Finland, which has been reclassified to the respective items Assets held for sale and Liabilities held for sale in the balance sheet (see note G14). G43 cont. 255Handelsbanken Annual Report 2025 3.1
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G44 Fair value measurement of financial instruments Financial instruments at fair value 2025 2024 SEK m Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Interest-bearing securities eligible as collateral with central banks Fair value through profit or loss, mandatory 16,396 66 16,461 4,778 84 4,862 Fair value through profit or loss, fair value option 171,810 171,810 167,745 167,745 Fair value through other comprehensive income Bonds and other interest-bearing securities Fair value through profit or loss, mandatory 13,862 254 14,117 9,610 719 10,329 Fair value through profit or loss, fair value option 30,458 30,458 23,920 23,920 Fair value through other comprehensive income 8,020 1,036 9,056 11,752 1,507 13,259 Shares Fair value through profit or loss, mandatory 14,796 945 9 15,751 13,340 586 16 13,942 Fair value through other comprehensive income 601 47 150 798 548 94 161 803 Assets where the customer bears the value change risk 309,203 3,079 2 312,284 285,122 2,845 17 287,984 Derivative instruments 96 21,656 21,752 52 47,017 47,069 Total 565,243 27,084 161 592,488 516,867 52,852 194 569,913 Liabilities Liabilities where the customer bears the value change risk 309,633 3,079 2 312,714 285,400 2,845 17 288,263 Issued securities 659 659 614 614 Derivative instruments 89 26,122 26,211 39 15,916 15,955 Short positions 2,161 1 2,163 992 15 1,007 Total 311,883 29,862 2 341,746 286,431 19,390 17 305,839 Financial instruments in the table above include the disposal group in Finland, which has been reclassified to the respective items Assets held for sale and Liabilities held for sale on the balance sheet (see note G14). A change in unobservable inputs is not deemed to result in any significantly higher or lower measurement of the level 3 holdings, which is the reason that a sensitivity analysis is not provided. Change in holdings in financial instruments in level 3 2025 2024 SEK m Shares Derivative assets Derivative liabilities Assets where the customer bears the value change risk Liabilities where the customer bears the value change risk Shares Derivative assets Derivative liabilities Assets where the customer bears the value change risk Liabilities where the customer bears the value change risk Opening balance 177 0 0 17 −17 174 2 −2 77 −77 Acquisitions 1 Repurchases/sales −11 −9 9 −5 Matured Unrealised value change in income statement −7 −6 6 −6 −2 2 −60 60 Unrealised value change in other comprehensive income 13 Transfer from level 1 or 2 Transfer to level 1 or 2 Closing balance 159 0 0 2 −2 177 0 0 17 −17 Financial instruments in the table above include the disposal group in Finland, which has been reclassified to the respective items Assets held for sale and Liabilities held for sale on the balance sheet (see note G14). A change in unobservable inputs is not deemed to result in any significantly higher or lower measurement of the level 3 holdings, which is the reason that a sensitivity analysis is not provided. Valuation hierarchy In the tables, financial instruments at fair value have been categorised in terms of how the valuations have been carried out and the degree of transparency regarding market data used in the valuation. The categorisation is shown as levels 1–3 in the tables. Financial instruments which are valued at a direct and liquid market price are categorised as level 1. These financial instruments mainly comprise government securities and other interest- bearing securities that are traded actively, listed shares and short-term positions in correspond - ing assets. Level 1 also includes the majority of shares in mutual funds and other assets which are related to unit-linked insurance contracts and similar agreements and the corresponding liabilities. Financial instruments which are val - ued using valuation models which substantially are based on market data are categorised as level 2. Level 2 mainly includes interest- bearing securities and interest and foreign exchange derivatives. Financial instruments whose value to a material extent is affected by input data that cannot be verified using external 256 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G44 cont. Fair value of financial instruments at amortised cost 2025 2024 SEK m Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash and balances with central banks 408,155 408,155 530,009 530,009 Other loans to central banks 24,526 24,526 12,547 12,547 Loans to other credit institutions 6,064 15,355 285 21,704 4,305 13,966 362 18,633 Loans to the public 41,057 33,299 2,226,797 2,301,152 27,977 1,137 2,336,300 2,365,414 Total 479,802 48,654 2,227,082 2,755,538 574,838 15,103 2,336,662 2,926,603 Liabilities Due to credit institutions 18,491 42,918 61,409 39,764 44,828 84,592 Deposits and borrowing from the public 1,278,299 15,336 1,293,635 1,312,915 7,628 1,320,543 Issued securities 1,405,749 25,257 1,431,006 917,859 626,936 1,544,795 Subordinated liabilities 35,173 35,173 38,263 38,263 Total 2,702,539 118,684 2,821,223 2,270,538 717,655 2,988,193 Financial instruments in the table above include the disposal group in Finland, which has been reclassified to the respective items Assets held for sale and Liabilities held for sale on the balance sheet (see note G14). A change in unobservable inputs is not deemed to result in any significantly higher or lower measurement of the level 3 holdings, which is the reason that a sensitivity analysis is not provided. Differences between the transaction price and the value measured by a valuation model As stated in the accounting policies in note G1, when applying a model to value derivatives, material positive differences between the valu - ation at initial recognition and the transaction price (known as day 1 gains/losses) are amor - tised over the life of the derivative. Unrealised results due to positive differences between the transaction price and the value measured by a valuation model (known as day 1 gains/ losses) are comprised of the Bank’s profit mar - gin and compensation to cover, for example, the cost of capital and administrative expenses. As a consequence of the application of this principle, SEK 119 million (164) has been rec - ognised in Net gains/losses on financial trans - actions during the year. At the end of the year, non-recognised day 1 gains amounted to SEK 412 million (500). Principles for information about the fair values of financial instruments measured at amortised cost Information about the fair values of financial instruments measured at amortised cost is presented in note G43 and in the table below. These instruments essentially comprise lend - ing, deposits and borrowing. For means of pay - ment and short-term receivables and liabilities, the carrying amount is considered to be an acceptable estimate of the fair value. Receiv - ables and liabilities with a maturity date or the date for next interest rate fixing falling within 30 days are defined as short-term. The valuation of fair-value lending is based on the current market rate with an assumption about contract-specific margins. Interest- bearing securities have been valued at the current market price where this has been avail - able. Funding and interest-bearing securities for which market price information has not been available have been valued using a valuation model based on market data in the form of prices or interest for similar instruments. In the table, the valuation used for the infor - mation about the fair value of financial instru - ments measured at amortised cost is catego - rised in the valuation hierarchy described above. Means of payment and deposits are considered to be equivalent to cash and have been categorised as level 1. Level 1 also con - tains interest-bearing securities (assets and liabilities) for which there is a current market price. Lending where the assumption about contract-specific margins has materially affected the information about fair value has been categorised as level 3. Other instruments are categorised as level 2. market information are categorised as level 3. Level 3 includes unlisted shares, certain holdings of private equity funds and certain derivatives. The categorisation is based on the valuation method used on the balance sheet date. If the category for a specific instrument has changed since the previous balance sheet date (31 December 2024), the instrument has been moved between the levels in the table. During the year, SEK 0.3 billion relating to hold - ings of bonds and other interest-bearing secu - rities was transferred from level 2 to level 1. The transfer between levels was performed following a new assessment of market activity. Changes in level 3 holdings during the year are shown in a separate table below. The holdings in level 3 mainly comprise unlisted shares. The Group’s holdings of unlisted shares are mainly comprised of par - ticipating interests in companies which pro - vide supporting operations to the Bank. For example, these may be participating interests in clearing organisations and infrastructure collaboration on Handels banken’s home mar - kets. Such holdings are generally valued at the Bank’s share of the company’s net asset value, or alternatively at the price of the last completed transaction. In all material respects, unlisted shares are classified at fair value through other comprehensive income. Value changes for these holdings are thus reported in Other comprehensive income. Certain holdings of private equity funds are categorised as belonging to level 3. These are valued using valuation models mainly based on a relative valuation of comparable listed companies in the same sector. The per - formance measurements used in the compari - son are adjusted for factors which distort the comparison between the investment and the company used for comparison. Subsequently, the valuation is based on earnings multiples, such as P/E ratios and EV/EBITA. Most of these holdings represent investment assets in the Group’s insurance operations. The year’s realised value changes on finan - cial instruments in level 3 reported in the income statement is SEK 4 million (1). 257Handelsbanken Annual Report 2025 3.1
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G45 Pledged assets, collateral received and transferred financial assets Assets pledged for own debt SEK m 2025 2024 Cash and cash equivalents 22,710 14,590 Interest-bearing securities, repurchase agreements 1,269 1,077 Interest-bearing securities, other 3,383 1,325 Loan receivables for covered bonds 721,345 750,510 Shares, securities lending 195 129 Shares, other 5,311 5,677 Encumbered assets on behalf of policyholders 313,804 289,253 Other 1,289 1,336 Total 1,069,307 1,063,896 of which pledged assets that may be freely withdrawn by the Bank 10 15 Other pledged assets SEK m 2025 2024 Cash and cash equivalents 62 256 Interest-bearing securities 85,719 87,535 Shares, securities lending 5,589 2,546 Shares, other 713 Total 92,082 90,336 of which pledged assets that may be freely withdrawn by the Bank 75,538 77,729 Other pledged assets refers to collateral pledged for obligations not reported on the balance sheet. Collateral received SEK m 2025 2024 Reverse repurchase agreements 34,692 39,743 of which sold or re-encumbered 2,710 5,109 Securities borrowing 8,789 4,503 of which sold or re-encumbered 5,075 2,750 Total 43,480 44,246 Transferred financial assets reported on the balance sheet 2025 2024 SEK m Carrying amount Carrying amount attributable to liability Carrying amount Carrying amount attributable to liability Shares, securities lending¹ 5,784 91 2,674 106 Interest-bearing securities, repurchase agreements 787 0 1,077 0 Interest-bearing securities, other 483 Other 2 2 17 17 Total 7,055 93 3,768 124 1) Carrying amount attributable to liability related to securities lending refers to cash collateral received. 258 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Pledged assets Financial assets reported on the balance sheet and pledged as collateral or encumbered by companies in the Group are also recognised as pledged assets. Companies in the Group regularly pledge collateral and encumber financial assets to secure their obligations to, for example, central banks, stock exchanges, central securities depositories, clearing organi - sations and other institutions with similar or related functions, as well as to holders of covered bonds and policyholders. Assets pledged for own debt Cash collateral is received in connection with repurchase agreements and securities lending and, depending on the counterparty, is rec - ognised under Due to credit institutions or as Deposits and borrowing from the public on the balance sheet. Interest-bearing securities and shares sold or lent in connection with these transactions are recognised as pledged assets as well as on the balance sheet. Stadshypotek issues covered bonds, which are recognised as Issued securities on the bal - ance sheet. In order to protect covered bond holders in the event of insolvency, the loan receivables to which holders have prior rights have been encumbered. Loan receivables for covered bonds consist of mortgage loans and these loans are recognised as pledged assets as well as on the balance sheet. Handels banken Liv has insurance commit - ments that are recognised as Insurance liabili - ties and Liabilities where the customer bears the value change risk on the balance sheet. In order to protect policyholders in the event of insolvency, the assets to which the policyhold - ers have prior rights have been encumbered. These assets primarily comprise Assets where the customer bears the value change risk and Shares, and these assets are recognised as pledged assets as well as on the balance sheet. Other pledged assets than for own debt Other pledged assets than for own debt mainly comprise interest-bearing securities pledged as collateral to central banks and other credit institutions, for payment systems, securities trading and clearing. Other pledged assets than for the Bank’s own debt also include col - lateral pledged on behalf of third parties or for the Bank’s own contingent liabilities. Collateral received The Bank receives collateral as a guarantee to cover a counterparty’s obligation under reverse repurchase agreements and securities borrowing. This collateral is reported off-bal - ance. Collateral received under reverse repur - chase agreements and agreements regarding securities borrowing can be sold or repledged to a third party. For more information on repur - chase transactions and securities loans, see note G1. Information about received pledges for lending and other received collateral is shown in note G2. Transferred financial assets reported on the balance sheet Transferred financial assets are recognised as assets on the balance sheet but, for these, the rights to future cash flows are directly or indirectly transferred to an external counterparty. Most of the transferred financial assets rec - ognised on the balance sheet comprise secu - rities which have been sold under a repurchase transaction and lent equities. Repurchase agreements are a form of borrowing against collateral whereby the Bank sells securities with an agreement to repurchase them at a fixed price at a pre-determined future date. Securities lending agreements are transac - tions whereby the Bank lends securities to a counterparty and receives a fee. Repurchase agreements and securities loan agreements generally involve issuing collateral. The Bank transfers the right of ownership of the financial assets in connection with the repurchase agreement and securities loans, which means that the buyer/borrower has the right to sell on, repledge or otherwise dispose of the purchased/borrowed securities. Despite the transfer of the right of ownership in these transactions, the asset remains on the balance sheet at market value for the term of the agreement. The reason for this is that both the repurchase agreements and the securities loans involve the Bank being exposed to the value change risk for the securities during the term of the transaction and the securities return to the Bank at the end of the agreement. Cash collateral is received in connection with repurchase agreements and securities lending and, depending on the counterparty, is rec - ognised under Due to credit institutions or as Deposits and borrowing from the public on the balance sheet. Attributable liabilities are reported in the note before any offsetting in the balance sheet. In addition to the cash col - lateral received as presented in the table for securities loans, collateral in the form of other securities is received to cover the difference between the fair value of the transferred assets and the fair value of the recognised liability. For more information on repurchase transactions and securities loans, see note G1. Interest-bearing securities provided as col - lateral for securities trading, clearing, etc. where the title to the instrument has been transferred to the counterparty are reported as other transferred financial assets. G45 cont. 259Handelsbanken Annual Report 2025 3.1
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G46 Contingent liabilities SEK m 2025 2024 Contingent liabilities Guarantees, credits 3,855 8,135 Guarantees, other 36,085 45,697 Irrevocable letters of credit 118 665 Other 417 1,256 Total 40,474 55,754 of which subject to impairment testing 40,474 55,754 Obligations Loan commitments 331,591 333,969 Unutilised part of granted overdraft facilities 99,033 100,717 Other 35,765 7,828 Total 466,388 442,514 of which subject to impairment testing 238,720 242,965 Total contingent liabilities 506,863 498,268 Provision for expected credit losses reported as provisions, see note G38. 74 155 Contingent liabilities Contingent liabilities mainly consist of various types of guarantees. Credit guarantees are provided to customers in order to guarantee commitments in other credit and pension institutions. Other guarantees are mainly commercial guarantees such as bid bonds, guarantees relating to advance payments, guarantees during a warranty period and export-related guarantees. Contingent liabilities also comprise unutilised irrevocable import letters of credit and confirmed export letters of credit. These transactions are included in the Bank’s services and are provided to support the Bank’s customers. The nominal amounts of the guarantees are shown in the table. Claims The Bank has a portfolio of CHF denominated mortgages to borrowers in Poland, which amounted to approximately SEK 52 million at year-end. There is uncertainty in Polish law regarding the application of various credit terms and conditions involving foreign currency. The aforementioned legal developments may mean that certain contractual terms and conditions in the Bank’s lending to borrowers in Poland cannot be applied and that compensation may have to be paid to certain customers. A provision of SEK 144 million for estimated compensation to borrowers attributable to disputes was recognised as per 31 December 2025, which is included in the item Other in Note G38. Furthermore, it is not currently practically feasible to estimate the potential additional financial impact on the Bank or the likelihood of various outcomes and no disclosure on contingent liabilities is therefore submitted. The assessment is that the other actions will essentially be settled in the Group’s favour. The assessment is that the amounts in dispute would have no material impact on the Group’s financial position or profit/loss, and no disclosure on contingent liabilities is therefore submitted. G47 Leases Handels banken as lessor Finance leases SEK m 2025 2024 Finance income from net investments 389 611 Variable lease payments 320 539 Total¹ 709 1,150 1) Included in income statement item Interest income. Distribution of undiscounted lease receivables by maturity and net investment SEK m 2025 2024 Up to 1 yr 1,945 2,876 1 yr to 2 yrs 2,586 2,542 2 yrs to 3 yrs 3,425 2,984 3 yrs to 4 yrs 1,296 2,455 4 yrs to 5 yrs 482 1,120 Over 5 yrs 2,066 2,508 Total undiscounted lease receivables 11,800 14,485 Unearned finance income −610 −957 Net investment 11,190 13,528 All leases where the Group is the lessor have been defined as finance leases. Lease agreements of this kind are accounted for as loans on the balance sheet, initially for an amount corresponding to the net investment. The change between the years was due to lower lease volumes attributable to the divestment of the lease portfolio. Lease assets mainly consist of vehicles and machines. All leases have guaranteed residual values. At year-end, the Group had one lease exposure that had a carrying amount exceeding SEK 1 billion. 260 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Handels banken as lessee Income statement items SEK m 2025 2024 Interest expenses for lease liabilities −90 −74 Total¹ −90 −74 Depreciation and impairment of right-of-use assets Property −735 −702 Equipment −14 −14 Total² −749 −716 Expenses for short-term leases −81 −76 Expenses for leases in which the underlying asset is of low value −56 −54 Variable lease payments that are not included in the calculation of lease liabilities −172 −175 Total³ −309 −262 Total expenses for leases −1,148 −1,052 Balance sheet items SEK m 2025 2024 Right-of-use assets⁴ Property 2,703 2,593 Equipment 29 29 Total 2,732 2,622 New right-of-use assets⁵ 891 392 Lease liabilities⁶ 2,859 2,751 Total cash outflows for leases −1,110 −1,078 1) Included in income statement item Interest expenses. 2) Included in income statement item Depreciation, amortisation and impairment of tangible and intangible assets, of which SEK -19 million (-12) is an impairment loss. 3) Included in income statement item Other expenses. 4) Right-of-use assets are included in the balance sheet item Tangible assets. 5) New lease agreements during the year included in right-of-use assets. 6) Lease liabilities are included in the balance sheet item Other liabilities. Time to maturity regarding lease liabilities SEK m 2025 2024 Up to 6 mths 362 377 6 mths to 1 yr 351 320 1 yr to 2 yrs 682 607 2 yrs to 5 yrs 1,111 1,201 Over 5 yrs 710 474 Total 3,216 2,979 The Bank’s lease agreements primarily consist of contracts for the rental of premises. Excepting such contracts, other lease agreements refer mainly to multi-function printers, personal computers and various other office equipment. The majority of contracts for the rental of premises have a term of three to ten years. Some of the Bank’s contracts for the rental of premises include an option to extend the term of the agreement, entailing that the contract is extended for a specific period of time if it is not terminated by a specific point in time. There are also contracts for the rental of premises which include an option for the Bank to terminate the agreement before expiry. When determining the lease term, the options of extending the term or terminating the agreement before expiry are only included when it is highly probable that these options will be exercised. The Bank has entered into lease agreements with maturities of under 12 months, and lease agreements in which the underlying asset is of low value, which are recognised as expenses in accordance with the exemption in IFRS 16 Leases, and thus are not included in lease liabilities or right-of-use assets. G47 cont. 261Handelsbanken Annual Report 2025 3.1
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G48 Segment reporting Segment reporting 2025 SEK m Sweden UK Norway The Netherlands Markets Other Adjustments and eliminations Total Net interest income 25,415 9,401 4,969 1,817 5 935 42,542 Net fee and commission income 9,463 838 716 177 595 73 11,863 Net gains/losses on financial transactions 852 207 78 22 1,079 −547 1,692 Net insurance result 289 289 Share of profit of associates and joint ventures −9 −9 Other income 90 8 19 4 5 295 419 Total income 36,109 10,454 5,782 2,019 1,684 748 56,796 Staff costs −5,133 −3,738 −1,282 −616 −941 −3,368 302 −14,777 Other expenses −1,158 −992 −236 −118 −510 −3,754 −6,770 Internal purchased and sold services −4,520 −831 −878 −319 57 6,489 Depreciation, amortisation and impairment of tangible and intangible assets −753 −470 −120 −66 −155 −433 −23 −2,020 Total expenses −11,563 −6,032 −2,516 −1,119 −1,548 −1,067 279 −23,567 Profit before credit losses and regulatory fees 24,546 4,423 3,266 900 135 −319 279 33,229 Net credit losses 133 92 44 −4 0 47 313 Gains/losses on disposal of tangible and intangible assets 7 −1 2 0 8 Regulatory fees −2,030 −56 −418 −141 −23 −130 −2,800 Operating profit 22,655 4,457 2,894 754 112 −402 279 30,750 Profit allocation 359 43 50 0 −402 −50 Operating profit after profit allocation 23,014 4,501 2,945 754 −290 −452 279 30,750 Internal income¹ 1,451 2,928 −8,807 −735 −1,076 6,240 C/I ratio, % 31.7 57.5 43.1 55.4 120.7 41.5 Credit loss ratio, % −0.01 −0.03 −0.01 0.00 0.00 −0.01 Loans to the public 1,591,612 228,508 287,383 109,792 17,862 28,609 0 2,263,765 Deposits and borrowing from the public 858,339 266,404 96,220 37,960 −1,550 36,425 −14 1,293,784 Allocated capital 120,494 26,510 21,991 6,457 1,564 3,355 18,953 199,355 Return on allocated capital, % 15.3 13.0 10.8 9.7 −14.6 13.1 Average number of employees 4,602 2,784 981 430 432 2,486 11,715 1) Internal income which is included in Total income comprises income from transactions with other operating segments and Other. Since interest income and interest expenses are reported net as income, this means that internal income includes the net amount of the internal funding cost among segments and Other. The “Other” column includes allocated capital attributable to the disposal group in Finland. The business segments are recognised in accordance with IFRS 8 Operating Segments, which means that the segment information is presented in a similar manner to that which is applied internally as part of company gover - nance. Handels banken’s operations are pre - sented in the following segments: Sweden, the UK, Norway, the Netherlands and Markets. The branch operations in Handels banken pro- vide a focused offering within financing, pay - ments, financial advisory services, savings and pensions. The country segments include the branch operations together with the asset management and insurance operations. Each country is followed up as an independent profit centre and is managed by a Country General Manager. In Sweden and the UK, the branch operations are organised by county and district, respectively. The Markets seg - ment is Handels banken’s investment bank, including securities trading and investment advisory services. Profit/loss for the segments is reported before and after internal profit allo - cation. Internal profit allocation means that the unit which is responsible for the customer is allocated all the profits deriving from its cus - tomers’ transactions with the Bank, regardless of the segment where the transaction was per - formed. Furthermore, income and expenses for services performed internally are reported net in the line item Internal purchased and sold services. Transactions among the segments are reported primarily according to the cost price principle. The Other and Adjustments and eliminations columns show items which do not belong to a specific segment or which are eliminated at Group level. The column Other overwhelmingly includes Treasury and central business support units. It also includes the Bank’s international operations outside the home markets and transactions attributable to the provision for the Oktogonen profit-sharing scheme. The Adjustments and eliminations column includes adjustments for staff costs. Adjustments for staff costs comprise the difference between the Group’s pension costs calculated in accordance with IAS 19 Employee Benefits, and locally calculated pension costs. Internal income mainly consists of internal interest and commissions. The segment income statements also include internal items in the form of payment for internal services rendered. Internal debiting is primarily accord - ing to the cost price principle. In branch opera - tions, assets consist mainly of loans to the public and liabilities of deposits from the public and internal funding. The assets in the Other column are mainly internal lending to the vari - ous segments, while the liabilities are mainly external funding. The allocated capital for the segments is the same as the capital allocation according to the internal financial control model. 262 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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Segment reporting 2024 SEK m Sweden UK Norway The Netherlands Markets Other Adjustments and eliminations Total Net interest income 29,003 10,729 5,162 1,967 −17 −3 46,841 Net fee and commission income 9,066 869 695 188 621 288 11,726 Net gains/losses on financial transactions 959 225 80 18 1,220 602 3,103 Net insurance result 423 −1 422 Share of profit of associates and joint ventures 27 27 Other income 84 15 21 3 3 99 225 Total income 39,535 11,837 5,957 2,176 1,826 1,015 62,345 Staff costs −5,073 −3,579 −1,307 −611 −985 −4,428 252 −15,731 Other expenses −1,173 −841 −517 −145 −509 −4,290 −7,474 Internal purchased and sold services −4,899 −1,445 −809 −322 72 7,404 Depreciation, amortisation and impairment of tangible and intangible assets −773 −378 −106 −58 −145 −520 −24 −2,004 Total expenses −11,918 −6,242 −2,739 −1,136 −1,567 −1,834 228 −25,209 Profit before credit losses and regulatory fees 27,617 5,595 3,217 1,040 259 −819 228 37,136 Net credit losses 377 139 72 2 0 12 601 Gains/losses on disposal of tangible and intangible assets 8 0 5 0 0 13 Regulatory fees −2,033 −47 −411 −132 −25 −86 −2,733 Operating profit 25,969 5,686 2,883 910 234 −893 228 35,016 Profit allocation 371 49 61 0 −423 −58 Operating profit after profit allocation 26,339 5,736 2,943 910 −189 −951 228 35,016 Internal income¹ 5,009 4,045 −10,458 −152 −156 1,712 C/I ratio, % 29.9 52.5 45.5 52.2 111.7 40.4 Credit loss ratio, % −0.02 −0.06 −0.02 0.00 0.00 −0.02 Loans to the public 1,589,948 246,790 320,705 104,604 15,335 20,496 2,297,878 Deposits and borrowing from the public 848,854 289,072 97,713 44,743 711 29,671 −25 1,310,739 Allocated capital 123,381 27,866 22,684 5,690 1,831 5,915 22,660 210,027 Return on allocated capital, % 17.3 17.1 10.4 13.0 −9.1 14.5 Average number of employees 4,764 2,842 993 425 470 2,729 12,224 1) Internal income which is included in Total income comprises income from transactions with other operating segments and Other. Since interest income and interest expenses are reported net as income, this means that internal income includes the net amount of the internal funding cost among segments and Other. The “Other” column includes allocated capital attributable to the disposal group in Finland. G48 cont. Income per product area SEK m 2025 2024 Household deposits and lending 19,009 20,935 Corporate deposits and lending 23,614 27,139 Payments, net 1,778 1,802 Asset management 7,187 7,151 Pension & insurance 950 901 Investment bank services 2,470 3,226 Other 1,788 1,192 Total 56,796 62,345 263Handelsbanken Annual Report 2025 3.1
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G49 Geographical information Geographical information 2025 SEK m Income Operating profit Tax of which current tax Profit for the year from discontinued operations, after tax Assets Non-current assets of which tangible assets Sweden 37,482 21,617 −3,906 −4,234 3,039,170 5,461 2,963 UK 11,243 5,421 −1,510 −1,517 369,917 1,772 1,254 Norway 5,315 2,652 −823 −873 348,508 1,015 460 The Netherlands 2,010 784 −314 −315 283,861 221 163 USA 547 403 −115 −134 309,323 57 57 Luxembourg 233 77 −23 −23 11,922 13 13 Denmark 19 18 −5 −5 Poland −3 65 0 Finland −266 44,906 18 1 Goodwill and other Group surpluses 4,366 4,366 22 Eliminations −50 −286 −59 −92 −1,024,407 24 24 Total 56,796 30,750 −6,755 − 7,1 93 −266 3,387,566 12,948 4,956 Geographical information 2024 SEK m Income Operating profit Tax of which current tax Profit for the year from discontinued operations, after tax Assets Non-current assets of which tangible assets Sweden 40,307 23,330 −4,478 −4,648 3,148,069 5,447 2,805 UK 12,710 6,748 −1,882 −1,877 425,253 1,692 999 Norway 5,837 2,968 −844 −871 381,499 1,125 560 The Netherlands 2,296 1,072 −397 −398 310,052 260 199 USA 664 515 −87 −84 389,127 81 81 Luxembourg 300 134 −31 −31 13,319 4 4 Denmark 39 28 −10 −10 6 0 0 Poland −23 −91 0 209 0 0 Finland 234 100,630 −6 −43 Goodwill and other Group surpluses 4,452 4,452 24 Eliminations 216 310 −66 6 −1,233,444 174 174 Total 62,345 35,016 −7,795 − 7,913 234 3,539,173 13,228 4,803 Income, operating profit and profit for the year from discontinued operations after tax, as well as assets presented in the geographical information, are composed of internal and external income, expenses and assets in the respective country. The geographical distribution of income and expenses is based on the country where the business transaction has been carried out, and is not comparable with the reported segment information. Tax includes current and deferred taxes. Additional geographical information is provided in note P20 concerning the domicile of Group companies and associates and in note G8 concerning average number of employees per country. Since Finland is recognised as Assets and liabilities held for sale, and discontinued operations, more detailed information about Finland is provided in note G14. 264 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G50 Assets and liabilities by material currency 2025 SEK m SEK EUR NOK GBP USD Other currencies Total Assets Cash and balances with central banks 31,171 163,466 4,336 96,089 113,093 0 408,155 Other loans to central banks 8,954 2,947 12,625 24,526 Interest-bearing securities eligible as collateral with central banks 169,300 9,217 66 9,689 188,272 Loans to other credit institutions 689 6,033 13,096 322 1,521 48 21,711 Loans to the public 1,588,027 188,451 291,766 231,671 4,408 2,868 2,307,191 of which corporates 597,538 126,674 167,902 168,691 4,283 2,065 1,067,153 of which households 977,067 61,776 123,864 62,980 125 802 1,226,615 Bonds and other interest-bearing securities 44,840 1,016 7,775 0 53,631 Other items not broken down by currency 384,081 384,081 Total assets 2,227,063 371,129 329,665 328,082 128,711 2,916 3,387,566 Liabilities and equity Due to credit institutions 12,308 30,767 19,836 675 537 401 64,525 Deposits and borrowing from the public 823,482 75,271 104,220 261,024 25,830 3,957 1,293,784 of which corporates 325,687 61,020 57,148 191,529 23,251 2,948 661,584 of which households 497,795 14,251 47,072 69,495 2,580 1,009 632,200 Issued securities 551,261 417,922 21,202 26,638 387,200 24,963 1,429,185 Subordinated liabilities 19,195 6,199 8,667 34,061 Other items not broken down by currency, incl. equity 566,010 566,010 Total liabilities and equity 1,953,062 543,154 145,258 294,536 422,235 29,321 3,387,566 Other assets and liabilities broken down by currency, net 171,898 −184,369 −33,492 293,508 26,498 Net foreign currency position −128 38 54 −15 93 42 2024 SEK m SEK EUR NOK GBP USD Other currencies Total Assets Cash and balances with central banks 63,478 203,777 4,160 125,771 132,799 23 530,009 Other loans to central banks 3,352 9,195 12,547 Interest-bearing securities eligible as collateral with central banks 152,122 8,971 74 11,440 172,606 Loans to other credit institutions 1,930 3,047 10,924 617 2,218 188 18,923 Loans to the public 1,567,637 219,855 325,257 249,285 7,583 2,469 2,372,086 of which corporates 598,763 155,273 185,593 179,980 7,423 1,565 1,128,597 of which households 967,327 64,582 139,665 69,305 160 904 1,241,943 Bonds and other interest-bearing securities 34,053 555 12,900 0 47,508 Other items not broken down by currency 385,493 385,493 Total assets 2,204,712 439,557 362,511 375,673 154,039 2,681 3,539,173 Liabilities and equity Due to credit institutions 21,125 34,762 27,340 485 337 479 84,528 Deposits and borrowing from the public 808,538 100,333 103,939 282,784 21,170 3,718 1,320,481 of which corporates 330,706 85,798 58,033 206,315 17,598 2,896 701,346 of which households 477,832 14,535 45,906 76,469 3,572 822 619,136 Issued securities 560,189 447,647 28,294 35,214 456,621 22,062 1,550,027 Subordinated liabilities 20,519 6,722 9,814 37,054 Other items not broken down by currency, incl. equity 547,083 547,083 Total liabilities and equity 1,936,934 603,261 159,573 325,205 487,942 26,258 3,539,173 Other assets and liabilities broken down by currency, net 163,620 −202,929 −50,508 333,936 23,579 Net foreign currency position −84 8 −40 34 1 −80 Note G2 describes the Bank’s view of foreign exchange risk. Assets and liabilities in the table above include the disposal group in Finland, which has been reclassified to the respective items Assets held for sale and Liabilities held for sale in the balance sheet (see note G14). 265Handelsbanken Annual Report 2025 3.1
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G51 Interests in unconsolidated structured entities Fund holdings SEK m 2025 2024 Shares 6,363 6,365 Assets where the customer bears the value change risk 293,869 273,071 Total 300,232 279,436 A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the rele - vant activities are regulated by means of con - tractual arrangements. Handels banken’s inter- ests in unconsolidated structured entities are limited and consist of mutual fund holdings. Holdings in mutual fund units through unit-linked insurance contracts Funds are owned primarily through unit-linked insurance contracts at Handels banken Liv. The policyholder chooses how to invest the savings, under the terms of the insurance contract, and bears the risk of changes in the value of the mutual fund units. For funds man - aged by Handels banken in unit-linked insur - ance, the Bank holds 50% or more of the units in 11 (11) funds on behalf of its customers. The total assets in these funds amounted to SEK 220,413 million (211,517), of which Handels - banken holds SEK 139,602 million (132,626) on behalf of its customers. The assessment is that the Group’s holdings in mutual fund units under unit-linked insurance contracts with customers do not entail that the Group is exposed to variable returns. Accordingly, these holdings are excluded from the assessment of whether control over a fund exists. As a result, investments in mutual fund units through unit- linked insurance contracts are not consolidated, and thus comprise unconsolidated structured entities. The holdings are recognised as Assets where the customer bears the value change risk and the corresponding liability to the policyholders is recognised in the balance sheet item Liabilities where the customer bears the value change risk. The Group’s total holdings in mutual fund units through unit- linked insurance contracts are presented on the line Assets where the customer bears the value change risk in the table above. Other holdings in mutual fund units In addition, the Group owns some mutual fund units that comprise investment assets in tradi - tional life insurance at Handels banken Liv and in its role as market maker. Funds for which the Bank is the asset manager and in which the Bank holds more than 50% of the units are consolidated. Holdings ranging between 20% and 50% are consolidated in certain cases if the circumstances indicate that the Bank has control of them, for example, because the fund has a broad management mandate and gener - ates a high proportion of variable returns. The Bank’s interests in the fund are recognised at fair value on the line Shares in the balance sheet. The remaining portion of the fund’s fair value is consolidated and recognised in the balance sheet items Assets where the cus - tomer bears the value change risk and Liabili - ties where the customer bears the value change risk. No holdings in mutual fund units met the criteria for consolidation as at 31 December 2025 and 31 December 2024. The Group’s holdings in mutual fund units in traditional life insurance and in its role as market maker thus constituted unconsolidated structured entities and these are presented in the line Shares in the table above. The maximum exposure to loss attributable to interests in unconsolidated structured entities is the current carrying amount of the interest. The total assets for these entities are not considered meaningful for the purpose of understanding the related risks and so have not been presented. 266 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G52 Related-party disclosures Associates and joint ventures Other related parties SEK m 2025 2024 2025 2024 Assets Loans to the public 485 434 1,832 1,920 Other assets 19 23 821 798 Total 504 457 2,653 2,718 Liabilities Deposits and borrowing from the public 973 919 2,110 1,544 Total 973 919 2,110 1,544 Contingent liabilities 7,320 7,601 Income and expenses Interest income 21 19 71 101 Interest expenses −1 −10 −172 −193 Fee and commission income 0 1 21 17 Fee and commission expenses −216 −202 Other income 19 19 Other expenses −216 −205 621 611 Total −412 −397 560 555 A list of associates and joint ventures, as well as information about shareholders’ contributions to associates, is presented in note G22. The operations of associates and joint ventures comprise various types of services related to the Bank’s operations. The following companies comprise the group of other related parties: Svenska Handels bankens Pensionsstiftelse (pension foundation), Svenska Handels bankens Personalstiftelse (staff foundation) and Pensionskassan SHB, Tjänstepensionsförening (pension fund). These companies use Svenska Handels banken AB for normal banking and accounting services. It also includes companies controlled by executive officers of Handels banken or by close relatives of these persons. The parent company’s Swedish subsidiaries have paid pension premiums relating to defined benefit pensions in an amount of SEK 86 million (73) to the pension fund. The pension fund’s commitments to the employees of subsidiaries are guaranteed by the parent company, so if the pension fund cannot pay its commitments, the parent company is liable to take over and pay the commitment. The pension fund’s obligations amounted to SEK 7,223 million (7,494). Svenska Handels banken AB has requested compensation from Svenska Handels bankens Pensionsstiftelse amounting to SEK 757 million (762) regarding pension costs and from Svenska Handels bankens Personalstiftelse amounting to SEK 61 million (28) for measures to benefit the employees. As per the balance sheet date, the parent company has issued guarantees, mainly guarantees for advance payments, amounting to SEK 97 million (107) to companies controlled by executive officers or close relatives of these persons. Information regarding loans to executive officers of Handels banken, and conditions and other remuneration to executive officers is given in note G8. G53 Events after the balance sheet date No significant events have occurred after the balance sheet date. 267Handelsbanken Annual Report 2025 3.1
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Capital policy The Bank aims to maintain a robust capital level which meets the risk entailed in the Group’s operations and which exceeds the minimum requirements prescribed by legisla - tion. A healthy capital level is needed to man - age situations of financial strain and also for other events such as acquisitions and major growth in volumes. Capital requirements regulations According to the capital adequacy regulations, Regulation (EU) No 575/2013 EU (CRR) and Directive 2013/36/EU (CRD IV), the Bank must have common equity tier 1 capital, tier 1 capital and total own funds which at least correspond to the individual requirements relative to the total risk-weighted exposure amount for credit risk, market risk and operational risk. In addi - tion to holding capital in accordance with the minimum requirement, the Bank must also hold common equity tier 1 capital to comply with the combined buffer requirement which, in Sweden, comprises the sum of a capital con - servation buffer, a countercyclical buffer, a systemic risk buffer and a buffer for other systemically important institutions. The Bank has a minimum capital requirement under Pillar 2. The Pillar 2 requirement is an individual requirement determined by the Swedish Finan - cial Supervisory Authority which is intended to cover risks that are underestimated or not covered by the regulation’s minimum require - ment and combined buffer requirements. There is also guidance on these requirements in Pillar 2 decided on by the Swedish Financial Supervisory Authority, representing the authority’s view of the Bank’s minimum buffer requirement in addition to the established capital requirement. The Bank must perform an internal capital assessment. Handels banken’s capital policy states the guidelines for the internal capital assessment. In addition, the Bank must comply with a capital requirement at the financial conglomerate level in accor - dance with the Financial Conglomerates (Special Supervision) Act (2006:531), see Capital adequacy for the financial conglomer - ate below. Furthermore, the resolution author - ity, which in Sweden is the National Debt Office, must set a minimum requirement for own funds and eligible liabilities (MREL) for the Bank. In 2025, the Bank met all the statutory minimum and buffer levels by a comfortable margin. More detailed information about the Bank’s own funds and capital requirement is available in note G2, Risk and capital manage - ment, and in the Bank’s Pillar 3 report (see handels banken.com/ir). This publication also provides a complete description of the terms and conditions applying to all of Handels - banken’s own funds and eligible liabilities. Description of consolidated situation The regulatory consolidation (consolidated situation) consists of the parent company, subsidiaries and associates that are also included in the consolidated Group accounts, see table EU LI3 Outline of the differences in the scopes of consolidation (entity by entity) in the Bank’s Pillar 3 report. The companies that are included in the consolidated accounts but are excluded from the consolidated situa - tion are also shown in table EU LI3. Just as in the consolidated accounts, associates are consolidated using the equity method in the regulatory consolidated situation. All subsidiar - ies which are subject to the regulations are included in the consolidated situation. Handels - banken has no subsidiaries where the actual own funds are less than the prescribed own funds. Description of own funds for consolidated situation Own funds consist of tier 1 capital and tier 2 capital. The tier 1 capital is divided into com - mon equity tier 1 capital and additional tier 1 capital. Common equity tier 1 capital consists mainly of share capital, retained earnings and other reserves in the companies that are included in the consolidation. Additional tier 1 capital consists of additional tier 1 instruments. The tier 2 capital mainly consists of subordi - nated loans. Certain deductions are subse - quently made from own funds. The deductions are made mainly from the common equity tier 1 capital. For the Bank’s risk management, it is important that in risk terms, both the Group and the regulatory consolidation can be viewed as one unit. To enable efficient risk management in the Group, capital may need to be re-allocated among the various companies in the Group. In general, Handels banken is able to re-allocate capital among the Group com - panies, to the extent that is permitted by legis - lation, for example, capital adequacy require - ments and restrictions in corporate law. The Bank sees no other material or legal obstacles to a rapid transfer of funds from own funds, or repayment of liabilities between the parent company and its subsidiaries. Tier 1 capital Tier 1 capital consists of common equity tier 1 capital and additional tier 1 capital. Common equity tier 1 capital Common equity tier 1 capital consists mainly of share capital, retained earnings and other reserves in the companies that are included in the regulatory consolidation. Since the Group’s insurance companies are not part of the consolidation, shown in the table EU LI3, retained earnings in these companies are not included in the common equity tier 1 capital in the Bank’s Pillar 3 report. The items to be excluded from the common equity tier 1 capital are mainly goodwill and other intangible assets, and also capital contributions to the insurance companies in the Group or certain deferred tax assets which exceed 10% of the common equity tier 1 capital. The total of capi - tal contributions and deferred tax assets must not exceed 15% of the common equity tier 1 capital. Since neither the capital contributions to the insurance companies in the Group nor the deferred tax assets exceed the threshold value, these do not reduce the common equity tier 1 capital. Neutrality adjustments are made for the effect of cash flow hedges on equity. A price adjustment must also be calculated and when necessary, be made for a prudent valua - tion of instruments at fair value. Institutions with permission to use internal ratings-based models must make a deduction for the differ - ence between expected credit losses accord - ing to the IRB approach and the provisions made for probable credit losses if the expected credit losses exceed the provisions made. A deduction must also be made for the net value of recognised surplus values in pension assets. However, the deduction may be reduced by an amount corresponding to the Bank’s right to reimbursement for pension costs from Handels banken’s pension founda - tion. In addition, a deduction is made for per - mission to hold own shares in its capacity as market maker. The deduction must correspond to the highest market value covered by the permission. Finally, a deduction is made for investments in securitisation, an adjustment is made for the effect of changes in own credit risk in derivative instruments and a deduction is made for insufficient coverage for non-per - forming exposures. Additional tier 1 capital Additional tier 1 capital consists of instruments which fulfil the requirements for additional tier 1 instruments. This capital must be perpetual and must be redeemable after five years at the earliest, but only after permission is granted by the supervisory authority. It must be possible G54 Capital adequacy 268 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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to write down the nominal value or convert it to shares to create common equity tier 1 capital at a pre-defined level for the common equity tier 1 capital and it must be possible to uncon - ditionally suspend interest payments. The Bank’s total additional tier 1 instruments amount to SEK 9.1 billion, were issued in 2020 and fulfil the requirements of the CRR. If there are no distributable funds, coupon payments must be suspended for additional tier 1 instruments. Tier 2 capital The tier 2 capital consists of subordinated loans with a maturity of at least five years. Capital requirements Credit risk The capital requirements for credit risk are calculated according to the standardised approach and the IRB approach according to CRR. There are two different IRB approaches: the IRB approach, with own estimates of PD but without own estimates of LGD and CCF (the foundation approach), and the IRB approach with own estimates of PD, LGD and CCF (the advanced approach). Handels banken uses the foundation IRB approach for exposures to institutions and sovereign exposures, and for certain product and collateral types for corporate exposures, and for certain exposures in the subsidiaries Stadshypotek AB and Handels banken Finans AB. The advanced IRB approach is applied to most exposures to large corporates, medium- sized enterprises, property companies and housing co-operative associations, and in Stadshypotek AB and Handels banken Finans AB. The same applies to retail exposures in Sweden, Norway and Finland, and in the sub - sidiaries Stadshypotek and Handels banken Finans AB. The capital requirements for equity exposures in the IRB approach are calculated according to a simple risk weight approach. The credit risk for all exposures at Handels - banken’s subsidiary Handels banken plc is cal - culated at solo and aggregated level according to the standardised approach. At year-end, the IRB approach was applied to 74% (75) of the total risk-weighted exposure amount for credit risk. For the remaining credit risk exposures, the capital requirements are calculated using the standardised approach. The average risk weight for exposures approved for the IRB approach increased during the year to 8.8% (11.9). The average risk weight, including the risk weight floor under Pillar 1 for Swedish and Norwegian mortgage loans, and for corporate exposures with collat - eral in property in Norway, is 18.4% (19.1). Credit quality is good. Of Handels banken’s corporate exposures, 98.4% (96.9) were cus - tomers with a repayment capacity assessed as normal or better than normal, i.e., with a rat - ing grade between one and five on the Bank’s ten-point risk rating scale. Market risks The capital requirement for market risk is cal - culated for the Bank’s consolidated situation. The capital requirements for interest rate risk and equity price risk are, however, only calcu - lated for positions in the trading book. When calculating the capital requirement for market risk, the standardised approach is applied. Operational risk Handels banken previously used the standard - ised approach to calculate the capital require - ment for operational risk. With the introduction of CRR3, the previously allowed methods have been replaced by one method – the Standard - ised Approach. The capital requirement under the Standard - ised Approach is based on the size and com - plexity of the bank, with progressively higher capital requirements for larger institutions. At the end of 2025, the total capital requirement for operational risks for the consolidated situa - tion was SEK 8,734 million (6,841). The in - crease was mainly due to a change in the cal - culation method. Capital adequacy for the financial conglomerate Institutions and insurance companies which are part of a financial conglomerate must have own funds which are adequate in relation to the capital requirement for the financial con - glomerate. Own funds and the capital require - ment for the financial conglomerate have been calculated according to the deduction and aggregation method (method 2, Annex I, Directive 2002/87/EC). The financial con - glomerate’s total own funds exceed the finan - cial conglomerate’s capital requirement. Minimum requirement for eligible liabilities (MREL) The Bank Recovery and Resolution Directive (2014/59/EU, BRRD), was implemented in Swedish law through the Resolution Act (2015:1016). These regulations state ways to manage bank crises, and enable authorities, within a set framework, to assume control of, restructure and sell either all or parts of a bank, without liquidating the bank or entering it into bankruptcy. In addition to these crisis manage - ment measures, the regulations offer the opportunity to write down certain debt instru - ments to recapitalise a crisis-hit bank. One aspect of these regulations was the introduction of a minimum requirement for such liabilities eligible for impairment (MREL) from 1 January 2018. The minimum requirement is set in the Bank’s resolution plan, drawn up by the Swedish National Debt Office and the Swedish Financial Supervisory Authority. The requirement is comprised of a loss absorption amount and a recapitalisation amount. MREL is to be expressed as two ratios: a risk-weighted ratio and a total exposure, non risk-weighted ratio. The combined buffer requirement must be met through common equity tier 1 capital (not including the common equity tier 1 capital used for MREL) and a man - datory subordination requirement is being introduced. To meet this subordination require - ment, a new type of debt instrument was intro - duced in Swedish legislation in December 2018. This type is subordinate to current senior debt instruments, but ranks more highly than own funds instruments as part of a resolution procedure. Handels banken has issued this type of subordinated debt instrument since 2019. The new requirements were fully phased in on 1 January 2024. For 2026, Handels banken’s total MREL requirement for the risk-weighted ratio is 26.3% and for the non risk-weighted ratio is 6.0% at consolidated level. Correspondingly, the subordination requirement amounts to 19.1% and 6.0%, respectively. Handels banken meets all MREL requirements. G54 cont. 269Handelsbanken Annual Report 2025 3.1
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EU LI2 – Main sources of differences between regulatory exposure amounts and carrying values in financial statements The table shows the difference between the carrying amount under the scope of regulatory consolidation and exposures considered for regulatory purposes. 2025 Items subject to SEK m Total Credit risk framework Securitisation framework CRR framework Market risk framework 1 Assets carrying amount under the scope of regulatory consolidation (as per template EU LI1) 3,076,683 2,935,395 77,304 258 63,726 2 Liabilities carrying amount under the scope of regulatory consolidation (as per template EU LI1) 26,933 26,933 3 Total net amount under the regulatory scope of consolidation 3,049,750 2,935,395 77,304 258 36,793 4 Off-balance sheet amounts 490,448 490,448 5 Differences in valuations 6 Differences due to different netting rules, other than those already included in row 2 −25,653 −7,366 −18,287 7 Differences due to consideration of provisions 988 988 0 8 Differences due to the use of credit risk mitigation techniques (CRMs) −30,914 14,029 −44,943 9 Differences due to credit conversion factors −367,120 −367,120 10 Differences due to Securitisation with risk transfer 11 Other differences 100 100 12 Exposure amounts considered for regulatory purposes 3,117,599 3,073,740 25,095 258 18,506 EU INS2 – Financial conglomerates information on own funds and capital adequacy ratio SEK m 2025 2024 1 Supplementary own funds requirements of the financial conglomerate (amount) 12,867 12,482 2 Capital adequacy ratio of the financial conglomerate (%) 122.4 127.0 G54 cont. 270 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G54 cont. EU KM1 – Key metrics template Key metrics 2025 2025 2024 Available own funds (amounts) 1 Common equity tier 1 capital 137,084 155,345 2 Tier 1 capital 146,233 166,296 3 Total capital 171,268 193,191 RWAs 4 Total risk-weighted exposure amount 779,729 825,457 4a Total risk exposure pre-floor 779,729 Capital ratios 5 Common Equity Tier 1 ratio (%) 17.6 18.8 5a Not applicable 5b Common Equity Tier 1 ratio considering unfloored TREA 17.6 6 Tier 1 ratio (%) 18.8 20.2 6a Not applicable 6b Tier 1 ratio considering unfloored TREA 18.8 7 Total capital ratio (%) 22.0 23.4 7a Not applicable 7b Total capital ratio considering unfloored TREA 22.0 Additional own funds requirements to address risks other than the risk of excessive leverage EU 7d Additional own funds requirements to address risks other than the risk of excessive leverage 1.6 1.8 EU 7e of which: to be made up of CET1 capital 1.0 1.2 EU 7f of which: to be made up of Tier 1 capital 1.2 1.4 EU 7g Total SREP own funds requirements 9.6 9.8 Combined buffer requirement 8 Capital conservation buffer 2.5 2.5 EU 8a Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State 9 Institution-specific countercyclical capital buffer 2.0 2.0 EU 9a Systemic risk buffer 3.2 3.2 10 Global systemically important institution buffer EU 10a Other systemically important institution buffer 1.0 1.0 11 Combined buffer requirement (%) 8.7 8.7 EU 11a Overall capital requirements (%) 18.3 18.5 12 CET1 available after meeting the total SREP own funds requirements 12.0 13.1 Leverage ratio 13 Total exposure measure 3,193,942 3,368,806 14 Leverage ratio (%) 4.6 4.9 Additional own funds requirements to address the risk of excessive leverage EU 14a Additional own funds requirements to address the risk of excessive leverage 0.15 0.50 EU 14b of which: to be made up of CET1 capital 0.15 0.50 EU 14c Total SREP leverage ratio requirements 3.0 3.0 Leverage ratio buffer and overall leverage ratio requirement EU 14d Leverage ratio buffer requirement (%) EU 14e Overall leverage ratio requirement (%) 3.0 3.0 Liquidity coverage ratio 15 Total high-quality liquid assets (HQLA) (Weighted value – average) 928,004 962,211 16 Cash outflows – Total weighted value 552,923 603,635 EU 16a Cash inflows – Total weighted value 62,809 75,835 EU 16b Total net cash outflows (adjusted value) 490,114 527,801 17 Liquidity coverage ratio (LCR) (%) 190.7 183.4 Net Stable Funding Ratio 18 Total available stable funding 2,025,068 2,143,849 19 Total required stable funding 1,700,566 1,734,333 20 NSFR (%) 119.1 123.6 271Handelsbanken Annual Report 2025 3.1
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EU OV1 – Overview of total risk exposure amounts The table shows risk-weighted exposure amounts (RWA) for credit risk, counterparty risk, market risk and operational risk the end of 2025 and the previous year. Credit risk is calculated according to the standardised approach, the foundation IRB approach and the advanced IRB approach. Market risk is calculated according to the standardised approach. Operational risk is calculated according to the standardised approach. Total risk exposure amounts (TREA) Total own funds requirements SEK m 2025 2024 2025 1 Credit risk (excl. CCR) 644,829 706,444 51,586 2 of which standardised approach 165,401 196,867 13,232 3 of which the foundation IRB (F-IRB) approach 64,578 51,667 5,166 4 of which slotting approach EU 4a of which equities under the simple risk - weighted approach 2,922 5 of which the advanced IRB (A-IRB) approach 160,862 234,160 12,869 5a of which risk weight floors (CRR Article 458) 253,988 220,828 20,319 6 CCR 5,043 8,858 403 7 of which standardised approach 4,637 8,194 371 8 of which internal model method (IMM) EU 8a of which exposures to a CCP 239 266 19 EU 8b of which other CCR 167 398 13 9 Credit valuation adjustment risk – CVA 2,176 2,127 174 10 of which standardised approach (SA) 2,127 11 of which the basic approach (F-BA and R -BA) 2,176 174 12 of which the simplified approach 13 Disability recovery risk 2 0 14 Securitisation exposures in the non-trading book (after the cap) 15 of which SEC-IRBA approach 16 of which SEC-ERBA (including IAA) 17 of which SEC-SA approach 18 of which 1,250% / deduction 19 Position, foreign exchange and commodities risks (Market risk) 18,506 22,511 1,481 EU 19a of which standardised approach 18,506 22,511 1,481 20 of which IMA 21 Large exposures 22 Operational risk 109,172 85,517 8,734 23 Exposures to crypto-assets EU 23a Amounts below the thresholds for deduction (subject to 250% risk weight) EU 23b Output floor applied (%) 50 EU 23c Floor adjustment (before application of transitional cap) 24 Floor adjustment (after application of transitional cap) 25 Total 779,729 825,457 62,378 G54 cont. 272 HandelsbankenAnnual Report 2025 3.1 Introduction Administration report Financial statements Group Other
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G54 cont. Market risk under the standardised approach The table shows capital requirements for market risk according to the standardised approach at year-end 2025. Capital requirements SEK m 2025 2024 Outright products Interest rate risk (general and specific) 331 277 Equity price risk (general and specific) 2 1 Foreign exchange risk 1,139 1,514 Commodity risk 0 0 Options Simplified method Delta-plus method Scenario approach 8 9 Securitisation (specific risk) Total capital requirements for market risk 1,481 1,801 Minimum requirement for eligible liabilities (MREL) The MREL requirement is expressed as a share of own funds and eligible liabilities relative to the risk weighted exposure amount and the non risk-weighted exposure amount, respectively (SFS 2015:1016). The Bank’s requirement is determined on an annual basis by the Swedish National Debt Office. Minimum requirement for eligible liabilities (MREL) % 2025 2024 Risk-weighted MREL requirement 26.3 27.1 Available own funds and eligible liabilities 38.5 40.9 Non-risk-weighted MREL requirement 6.0 6.0 Available own funds and eligible liabilities 11.5 12.1 Minimum requirement for own funds and eligible liabilities (MREL) % 2025 2024 Risk-weighted subordination requirement 19.1 20.0 Available own funds and subordinate eligible liabilities 23.2 24.0 Non-risk-weighted subordination requirement 6.0 6.0 Available own funds and subordinate eligible liabilities 7.8 8.0 273Handelsbanken Annual Report 2025 3.1
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3.2 Parent company Income statement Parent company income statement SEK m Note 2025 2024 Interest income P3 88,009 125,879 Leasing income P3 1,522 1,650 Interest expenses P3 −66,447 −102,112 Net interest income 23,084 25,417 Dividends received P4 15,673 21,673 Fee and commission income P5 7,166 6,208 Fee and commission expenses P5 −1,431 −1,437 Net fee and commission income 5,735 4,771 Net gains/losses on financial transactions P6 1,142 2,880 Other operating income P7 3,749 3,953 Total operating income 49,383 58,693 General administrative expenses Staff costs P8 −11,799 −12,865 Other administrative expenses P9 −6,677 −7,745 Depreciation, amortisation and impairment of tangible and intangible assets P10 −2,153 −2,258 Total expenses −20,628 −22,867 Profit before credit losses, impairment loss on financial fixed assets and regulatory fees 28,755 35,825 Net credit losses P11 63 446 Impairment loss on financial fixed assets P12 −1,374 −2,163 Regulatory fees P13 −1,645 −1,655 Operating profit 25,800 32,454 Appropriations P14 166 336 Profit before taxes 25,965 32,790 Taxes P33 −4,326 −5,131 Profit for the year 21,639 27,659 274 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Statement of comprehensive income Parent company statement of comprehensive income SEK m 2025 2024 Profit for the year 21,639 27,659 Other comprehensive income Items that will not be reclassified to the income statement Equity instruments measured at fair value through other comprehensive income −4 198 Tax on equity instruments measured at fair value through other comprehensive income −1 −39 Total −5 159 Items that may subsequently be reclassified to the income statement Cash flow hedges −899 −767 Debt instruments measured at fair value through other comprehensive income −8 6 Translation difference for the year −2,035 −219 Tax on items that may subsequently be reclassified to the income statement 576 88 of which cash flow hedges 185 158 of which debt instruments measured at fair value through other comprehensive income −2 −1 of which tax on translation difference 392 −69 Total −2,367 −892 Total other comprehensive income −2,372 −733 Total comprehensive income for the year 19,267 26,926 The year’s reclassifications to the income statement are presented in the Statement of changes in equity. 275Handelsbanken Annual Report 2025 3.2
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Balance sheet Parent company balance sheet SEK m Note 2025 2024 Assets Cash and balances with central banks 312,066 404,238 Interest-bearing securities eligible as collateral with central banks P15 188,272 172,606 Loans to credit institutions P16 979,785 996,917 Loans to the public P17 495,790 524,171 Value change of interest-hedged item in portfolio hedge −5,510 −6,399 Bonds and other interest-bearing securities P18 56,480 53,569 Shares P19 11,122 8,952 Shares in Group companies P20 64,977 67,101 Investments in associates and joint ventures P21 568 490 Assets where the customer bears the value change risk 2,316 2,087 Derivative instruments P22 25,903 52,686 Intangible assets P25 2,792 3,023 Tangible assets P26 5,567 5,875 Current tax assets Deferred tax assets P33 558 159 Other assets P27 14,557 18,097 Prepaid expenses and accrued income P28 1,612 1,481 Total assets P40 2,156,856 2,305,053 Liabilities and equity Liabilities Due to credit institutions P29 125,274 169,394 Deposits and borrowing from the public P30 1,045,994 1,050,028 Liabilities where the customer bears the value change risk 2,316 2,087 Issued securities, etc. P31 749,777 840,866 Derivative instruments P22 37,540 30,312 Short positions P32 2,163 1,007 Current tax liabilities 721 244 Deferred tax liabilities P33 0 55 Provisions P34 543 423 Other liabilities P35 6,824 10,792 Accrued expenses and deferred income P36 1,511 2,070 Subordinated liabilities P37 34,062 37,054 Total liabilities P40 2,006,724 2,144,333 Untaxed reserves P38 365 531 Equity Share capital 3,069 3,069 Share premium reserve 8,758 8,758 Other funds P39 5,582 8,164 Retained earnings 110,718 112,540 Profit for the year 21,639 27,659 Total equity 149,766 160,189 Total liabilities and equity 2,156,856 2,305,053 276 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Statement of changes in equity Parent company statement of changes in equity 2025 Restricted equity Non-restricted equity SEK m Share capital Statutory reserve Fund for internally developed software Share premium reserve Cash flow hedges¹ Fair value through other comprehen- sive income¹ Translation of foreign operations¹ Retained earnings incl. profit for the year Total Opening balance 3,069 2,682 2,984 8,758 1,675 361 473 140,187 160,189 Profit for the year 21,639 21,639 Other comprehensive income −714 −15 −1,643 −2,372 of which reclassification within equity −10 −10 Total comprehensive income for the year −714 −15 −1,643 21,639 19,267 Reclassified to retained earnings 10 10 Dividend −29,700 −29,700 Fund for internally developed software −221 221 Closing balance 3,069 2,682 2,764 8,758 961 346 −1,170 132,357 149,766 2024 Restricted equity Non-restricted equity SEK m Share capital Statutory reserve Fund for internally developed software Share premium reserve Cash flow hedges¹ Fair value through other comprehen- sive income¹ Translation of foreign operations¹ Retained earnings incl. profit for the year Total Opening balance 3,069 2,682 3,140 8,758 2,284 197 761 137,541 158,431 Profit for the year 27,659 27,659 Other comprehensive income −609 164 −288 −733 of which reclassification within equity −3 −570 −573 Total comprehensive income for the year −609 164 −288 27,659 26,926 Reclassified to retained earnings 573 573 Dividend −25,740 −25,740 Fund for internally developed software −155 155 Closing balance 3,069 2,682 2,984 8,758 1,675 361 473 140,187 160,189 1) Reserves in fair value fund. 277Handelsbanken Annual Report 2025 3.2
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Statement of cash flows Parent company statement of cash flows SEK m Note 2025 2024 Operating activities Operating profit 25,800 32,454 of which paid-in interest 89,747 125,803 of which paid-out interest −69,179 −102,528 of which paid-in dividends 15,673 21,673 Adjustment from operating activities to investing activities −43 2,602 of which to Divestment of operations and subsidiaries 0 of which to Divestment of credit portfolio 8 2,602 of which to Divestment of associates and joint ventures −51 Adjustment for non-cash items in operating profit Credit losses 3 −427 Unrealised value changes 1,776 −128 Amortisation and impairment 3,526 4,079 Group contribution to be received −8,080 −8,945 Paid income tax P33 −4,085 −5,627 Changes in the assets and liabilities of operating activities Interest-bearing securities eligible as collateral with central banks P15 −15,562 26,988 Loans to credit institutions P16 14,147 13,495 Loans to the public P17 9,426 55,524 Bonds and other interest-bearing securities P18 −3,211 −3,250 Shares P19 −3,846 −2,878 Due to credit institutions P29 −38,295 −7,032 Deposits and borrowing from the public P30 7,270 −45,792 Issued securities P31 −53,940 15,256 Derivative instruments, net positions P22 34,131 −29,536 Short positions P32 1,116 −1,260 Claims and liabilities from unsettled trades −111 216 Other −6,200 −289 Cash flow from operating activities −36,178 45,449 Investing activities Divestment of operations and subsidiaries 0 2,167 Acquisitions of and contributions to subsidiaries 0 Divestment of credit portfolio 118 Acquisitions of and contributions to associates and joint ventures P21 −162 −175 Divestment of associates and joint ventures P21 132 Divestment of shares P19 10 6 Acquisitions of tangible assets P26 −2,329 −4,365 Disposals of tangible assets P26 1,000 3,534 Acquisitions of intangible assets P25 −373 −459 Cash flow from investing activities −1,603 707 Financing activities Repayment of subordinated liabilities P37 −13,371 Issued subordinated liabilities P37 5,704 Dividend paid −29,700 −25,740 Dividends from Group companies 8,944 11,338 Cash flow from financing activities −20,756 −22,069 Cash flow for the year −58,538 24,087 Cash and cash equivalents at beginning of year 404,238 362,536 Cash flow from operating activities −36,178 45,449 Cash flow from investing activities −1,603 707 Cash flow from financing activities −20,756 −22,069 Foreign exchange effects on cash and cash equivalents −33,634 17,615 Cash and cash equivalents at end of year 312,066 404,238 The statement of cash flows has been prepared in accordance with the indirect method, which means that operating profit has been adjusted for transactions that did not entail paid-in or paid- out cash such as depreciation/amortisation and credit losses. The method for allocating foreign exchange effects on cash flow assets and liabilities was modified in 2025. Accordingly, the comparative figures were adjusted to align with the same method. Cash and cash equivalents is defined as cash and balances with central banks. 278 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Change in liabilities in financing activities SEK m 2025 2024 Opening balance 37,054 43,117 Cash flow −7,667 Non-cash changes, foreign exchange fluctuations −3,668 1,908 Non-cash changes, foreign exchange hedges 774 −16 Non-cash changes, accrued interest −99 −287 Closing balance 34,061 37,054 Divestment of operations and subsidiaries SEK m 2024 Purchase price Total purchase price 4,638 Claim on purchaser −2,471 Payment received 2,167 Divested assets and liabilities Loans to the public 19,957 Other assets 5 Total assets 19,963 Deposits and borrowing from the public 15,170 Other liabilities 23 Total liabilities 15,193 Cash flow from operating activities −2,602 The purchase price in its entirety is received in the form of cash and cash equivalents. Parent company statement of cash flows, cont. 279Handelsbanken Annual Report 2025 3.2
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Five-year overview Parent company five-year overview Income statement SEK m 2025 2024 2023 2022 2021 Net interest income 23,084 25,416 25,946 18,230 13,502 Dividends received 15,673 21,673 15,957 16,953 17,611 Net fee and commission income 5,735 4,771 4,573 5,167 5,230 Net gains/losses on financial transactions 1,142 2,880 1,745 820 1,808 Other operating income 3,749 3,953 4,230 4,841 3,576 Total operating income 49,383 58,693 52,452 46,011 41,727 General administrative expenses Staff costs −11,799 −12,865 −11,456 −11,990 −10,242 Other administrative expenses −6,677 −7,745 −7,453 −7,415 −6,002 Depreciation, amortisation and impairment of tangible and intangible assets −2,153 −2,258 −2,334 −2,459 −2,803 Total expenses −20,628 −22,867 −21,243 −21,864 −19,047 Profit before credit losses, impairment loss on financial fixed assets and regulatory fees 28,755 35,825 31,208 24,148 22,680 Net credit losses 63 446 58 −41 −55 Impairment loss on financial fixed assets −1,374 −2,163 −1,524 −2,305 −1,180 Regulatory fees −1,645 −1,655 −1,633 −1,331 −366 Operating profit 25,800 32,454 28,110 20,471 21,079 Appropriations 166 336 −160 227 Profit before tax 25,965 32,790 28,110 20,311 21,306 Taxes −4,326 −5,131 −5,747 −4,856 −4,618 Profit for the year 21,639 27,659 22,363 15,455 16,688 Dividend for the year¹ 34,650 29,700 25,740 15,840 9,900 1) For the current year, the dividend is the Board’s proposal to the shareholders’ meeting. Statement of comprehensive income SEK m 2025 2024 2023 2022 2021 Profit for the year 21,639 27,659 22,363 15,455 16,688 Other comprehensive income Items that will not be reclassified to the income statement Equity instruments measured at fair value through other comprehensive income −4 198 63 41 62 Tax on equity instruments measured at fair value through other comprehensive income −1 −39 −11 −19 −3 Total −5 159 52 22 59 Items that may subsequently be reclassified to the income statement Cash flow hedges −899 −767 −1,571 3,411 246 Debt instruments measured at fair value through other comprehensive income −8 6 25 −61 6 Translation difference for the year −2,035 −219 −1,289 1,326 1,034 of which hedges of net assets in foreign operations 5 −83 −63 Tax on items that may subsequently be reclassified to the income statement 576 88 522 −1,251 −39 of which cash flow hedges 185 158 324 −703 −51 of which debt instruments measured at fair value through other comprehensive income −2 −1 −5 6 −1 of which hedges of net assets in foreign operations −1 17 13 of which translation difference in foreign operations 392 −69 204 −572 Total −2,367 −892 −2,313 3,425 1,247 Total other comprehensive income −2,372 −733 −2,262 3,447 1,306 Total comprehensive income for the year 19,267 26,926 20,100 18,902 17,994 280 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Balance sheet SEK m 2025 2024 2023 2022 2021 Assets Cash and balances with central banks 312,066 404,238 362,536 376,010 338,768 Interest-bearing securities eligible as collateral with central banks 188,272 172,606 199,128 132,778 100,538 Loans to credit institutions 979,785 996,917 1,007,992 1,025,664 986,897 Loans to the public 495,790 524,171 600,997 637,721 611,852 Bonds and other interest-bearing securities 56,480 53,569 50,791 33,339 34,323 Other assets 124,462 153,552 138,900 157,377 157,756 Total assets 2,156,856 2,305,053 2,360,344 2,362,889 2,230,134 Liabilities and equity Due to credit institutions 125,274 169,394 176,143 169,617 153,490 Deposits and borrowing from the public 1,045,994 1,050,028 1,109,471 1,137,272 1,173,172 Issued securities, etc. 749,777 840,866 806,167 806,013 679,808 Subordinated liabilities 34,062 37,054 43,117 42,404 32,257 Other liabilities 51,618 46,990 66,147 52,829 46,481 Untaxed reserves 365 531 867 867 706 Equity 149,766 160,189 158,431 153,887 144,220 Total liabilities and equity 2,156,856 2,305,053 2,360,344 2,362,889 2,230,134 Key metrics 2025 2024 2023 2022 2021 Common equity tier 1 ratio, according to CRR 29.8 31.4 29.8 29.4 30.2 Tier 1 ratio, according to CRR 32.3 34.2 33.4 32.9 33.4 Total capital ratio, according to CRR 39.1 41.0 39.9 37.2 37.4 Return on total assets 0.91 1.13 0.90 0.63 0.72 For definitions of alternative performance measures, see page 340 and, for the calculation of these measures, see the Fact Book which is available at handelsbanken.com/ir. Parent company five-year overview, cont. 281Handelsbanken Annual Report 2025 3.2
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Notes for the parent company Notes for the parent company P1 Material accounting policies 283 P2 Risk and capital management 285 P3 Net interest income 290 P4 Dividends received 290 P5 Net fee and commission income 291 P6 Net gains/losses on financial transactions 291 P7 Other operating income 291 P8 Staff costs 292 P9 Other administrative expenses 293 P10 Depreciation, amortisation and impairment of tangible and intangible assets 294 P11 Net credit losses 294 P12 Impairment loss on financial fixed assets 300 P13 Regulatory fees 300 P14 Appropriations 300 P15 Interest-bearing securities eligible as collateral with central banks 300 P16 Loans to credit institutions 301 P17 Loans to the public 301 P18 Bonds and other interest-bearing securities 302 P19 Shares 302 P20 Shares in Group companies 303 P21 Investments in associates and joint ventures 304 P22 Derivative instruments 305 P23 Hedge accounting 306 P24 Offsetting of financial instruments 309 P25 Intangible assets 310 P26 Tangible assets 310 P27 Other assets 312 P28 Prepaid expenses and accrued income 312 P29 Due to credit institutions 312 P30 Deposits and borrowing from the public 313 P31 Issued securities 314 P32 Short positions 314 P33 Taxes 315 P34 Provisions 316 P35 Other liabilities 316 P36 Accrued expenses and deferred income 317 P37 Subordinated liabilities 317 P38 Untaxed reserves 318 P39 Specification of changes in equity 318 P40 Classification of financial assets and liabilities 319 P41 Fair value measurement of financial instruments 321 P42 Pledged assets, collateral received and transferred financial assets 323 P43 Contingent liabilities 324 P44 Net pensions 324 P45 Assets and liabilities by material currency 326 P46 Related-party disclosures 327 P47 Proposed appropriation of profits 328 P48 Share information 328 P49 Events after the balance sheet date 328 P50 Disclosures regarding assets and liabilities held for sale, and discontinued operations 329 P51 Capital adequacy 331 282 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P1 Material accounting policies Statement of compliance The parent company’s Annual Report is pre - pared in accordance with the Swedish Annual Accounts Act for Credit Institutions and Secu - rities Companies (1995:1559) and the regula - tions and general guidelines issued by the Swedish Financial Supervisory Authority, FFFS 2008:25, on annual reports in credit institu - tions and securities companies. The parent company also applies the Swedish Corporate Reporting Board’s recommendation RFR 2 Accounting for legal entities and statements. In accordance with the Swedish Financial Supervisory Authority’s general advice, the parent company applies statutory IFRS. This means that the international accounting stan - dards and interpretations of these standards as adopted by the EU have been applied to the extent that is possible within the framework of national laws and directives and the link between accounting and taxation. The relationship between the parent company’s and the Group’s accounting policies The parent company’s accounting policies correspond largely to those of the Group. The following reports only on the areas where the parent company’s policies differ from those of the Group. In all other respects, reference is made to the accounting policies in note G1. Presentation The parent company applies the presentation models for the income statement and balance sheet in compliance with the Annual Accounts Act for Credit Institutions and Securities Com - panies and the Swedish Financial Supervisory Authority’s regulations. This mainly implies the following differences relative to the presenta - tion models used by the Group: • Claims on central banks that are immedi - ately available upon demand are reported as Loans to credit institutions in the parent company’s balance sheet. These are reported under Other loans to central banks in the Group. • Broker and stock exchange costs are reported in the parent company as commis - sion expenses. • Dividends received are reported on a sepa - rate line in the parent company’s income statement. • The gain/loss arising when divesting tangi - ble and intangible assets in the parent com - pany is reported as other income or expenses. • Untaxed reserves are reported as a sepa - rate balance sheet item in the parent com - pany. These are split into an equity share and a tax liability in the Group. Assets held for sale and discontinued operations Non-current assets with a limited useful life are depreciated/amortised over their useful life in accordance with the Swedish Annual Accounts Act for the duration of their classi - fication as held for sale. Net profit after tax from discontinued operations is not rec - ognised separately in the parent company’s income statement. Also, neither assets nor lia - bilities held for sale are presented separately on the balance sheet. For disclosures regard - ing assets and liabilities held for sale and dis - continued operations, see note P50. Shares in subsidiaries and investments in associates and joint ventures Shares in subsidiaries and investments in associates and joint ventures are measured at cost. All holdings are tested on each balance sheet date in order to assess whether they require impairment. If a value has decreased, impairment is recognised to adjust the value to the consolidated value. Any impairment costs are classified as Impairment loss on financial assets in the income statement. Dividends on shares in subsidiaries and associates and joint ventures are recognised as income in profit or loss under Dividends received. Hedge accounting Fair value hedges are used for the foreign exchange risk attributable to shares in foreign subsidiaries. The hedged item consists of the first part of the nominal amount for the invest - ment in shares in the respective foreign sub - sidiary. The hedging instrument consists of the funding in the parent company that finances the investment. The gain or loss on the hedg - ing instrument is recognised in the income statement together with the change in foreign exchange risk on the part of the investment in the subsidiary that constitutes a hedged item. Financial guarantees Financial guarantees, in the form of guarantee commitments on behalf of subsidiaries and associates and joint ventures, are recognised in the parent company as a provision on the balance sheet, where the parent company has an existing commitment and payment will prob - ably be required to settle this commitment. 283Handelsbanken Annual Report 2025 3.2
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Dividends The item Dividends received comprises all div - idends received in the parent company includ - ing dividends from subsidiaries and associates and joint ventures, and Group contributions received. Anticipated dividends are recognised only if the parent company has the right to decide the amount of the dividend and the decision has been taken before the financial reports were published. Accounting for pensions The parent company does not apply the provi - sions of IAS 19 concerning accounting for de - fined benefit plans. Instead, pension costs are calculated on an actuarial basis in the parent company in accordance with the provisions of the Act on Safeguarding Pension Obligations and the Swedish Financial Supervisory Author - ity’s regulations. This mainly means that there are differences regarding how the discount rate is established and that the calculation of the future commitment does not take into account assumptions of future salary in - creases. The recognised net cost of pensions is calculated as the sum total of disbursed pensions, pension premiums and an allocation to the pension foundation, with a deduction for any compensation from the pension foun - dation. The net pension cost for the year is re - ported under Staff costs in the parent compa - ny’s income statement. Excess amounts as a result of the value of the plan assets exceeding the estimated pension obligations are not recognised as an asset in the parent company’s balance sheet. Deficits are recognised as a liability. Taxes In the parent company, untaxed reserves are recognised as a separate item in the balance sheet. Untaxed reserves comprise one com - ponent consisting of deferred tax liabilities and one component consisting of equity. P1 cont. 284 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P2 Risk and capital management The Handels banken Group’s risk management is described in note G2. Specific information about the parent company’s risks is presented below. Credit exposures, geographical breakdown 2025 SEK m Note Sweden Norway Finland The Netherlands Other countries Total Balance sheet items Cash and balances with central banks 31,171 4,336 1 163,366 113,192 312,066 Loans to credit institutions P16 942,823 23,596 13,058 14 294 979,785 Loans to the public P17 190,904 156,700 30,812 109,792 7,582 495,790 Interest-bearing securities eligible as collateral with central banks P15 188,272 0 0 0 0 188,272 Bonds and other interest-bearing securities P18 56,480 0 0 0 0 56,480 Derivative instruments P22 25,890 0 0 0 13 25,903 Total 1,435,540 184,632 43,871 273,172 121,082 2,058,295 Off-balance sheet items Contingent liabilities P43 624,205 71,340 2,871 2,811 24,844 726,071 of which contingent liabilities 31,603 8,117 2,834 64 12,146 54,764 of which obligations 592,602 63,223 37 2,747 12,698 671,307 Total 624,205 71,340 2,871 2,811 24,844 726,071 Total on- and off-balance sheet items 2,059,745 255,972 46,742 275,983 145,926 2,784,367 Credit exposures, geographical breakdown 2024 SEK m Note Sweden Norway Finland The Netherlands Other countries Total Balance sheet items Cash and balances with central banks 63,478 4,160 14 203,650 132,936 404,238 Loans to credit institutions P16 941,967 9,279 45,175 27 470 996,917 Loans to the public P17 192,541 174,513 44,267 104,604 8,246 524,171 Interest-bearing securities eligible as collateral with central banks P15 172,606 172,606 Bonds and other interest-bearing securities P18 53,569 53,569 Derivative instruments P22 52,659 27 52,686 Total 1,476,820 187,952 89,456 308,281 141,678 2,204,187 Off-balance sheet items Contingent liabilities P43 640,350 66,668 5,555 2,970 32,640 748,183 of which contingent liabilities 36,986 9,758 4,408 78 17,121 68,352 of which obligations 603,364 56,910 1,147 2,892 15,520 679,832 Total 640,350 66,668 5,555 2,970 32,640 748,183 Total on- and off-balance sheet items 2,117,170 254,620 95,011 311,250 174,319 2,952,370 Geographical breakdown refers to the country in which the exposures are reported. 285Handelsbanken Annual Report 2025 3.2
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Loans to the public, by sector 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net Private individuals 78,844 1,337 712 −5 −7 −295 80,586 Housing co-operative associations 5,768 1,730 263 0 −3 −3 7,755 Property management 269,772 7,374 563 −14 −15 −84 277,596 Manufacturing 19,178 1,705 32 −4 −5 −13 20,893 Retail 11,497 1,147 65 −3 −6 −54 12,646 Hotel and restaurant 3,290 46 21 −1 0 −18 3,338 Passenger and goods transport by sea 396 1 0 0 0 0 397 Other transport and communication 2,628 53 19 −1 −1 −16 2,682 Construction 11,930 373 167 −5 −3 −110 12,352 Electricity, gas and water 4,200 11 11 0 0 −7 4,215 Agriculture, hunting and forestry 3,116 89 52 −1 −1 −2 3,253 Other services 7,201 221 43 −2 −3 −10 7,450 Holding, investment, insurance companies, mutual funds, etc. 7,123 85 7 −1 0 −1 7,213 Sovereigns and municipalities 48,009 29 0 0 0 0 48,038 Other corporate lending 7,348 19 36 −1 0 −26 7,376 Total 480,300 14,220 1,991 −38 −44 −639 495,790 Loans to the public, by sector 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net Private individuals 82,332 1,722 844 −5 −9 −280 84,604 Housing co-operative associations 12,119 2,473 77 −1 −5 −1 14,662 Property management 286,035 13,418 720 −19 −29 −78 300,047 Manufacturing 25,974 1,517 33 −4 −3 −22 27,495 Retail 20,766 354 77 −6 −6 −67 21,118 Hotel and restaurant 3,593 97 25 −1 −1 −22 3,691 Passenger and goods transport by sea 222 1 0 0 0 0 223 Other transport and communication 3,344 109 17 −1 −1 −15 3,453 Construction 9,783 1,911 184 −18 −47 −110 11,703 Electricity, gas and water 6,712 4 11 0 0 −3 6,724 Agriculture, hunting and forestry 3,039 78 69 −1 −1 −9 3,175 Other services 7,238 428 30 −3 −3 −16 7,674 Holding, investment, insurance companies, mutual funds, etc. 18,399 83 5 −3 −1 −3 18,480 Sovereigns and municipalities 8,509 86 0 0 −1 0 8,594 Other corporate lending 12,348 158 63 −1 0 −40 12,528 Total 500,413 22,439 2,155 −63 −106 −666 524,171 P2 cont. 286 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Credit risk exposures, breakdown by type of collateral 2025 SEK m Note Residential property¹ Other property Sovereigns, municipalities and county councils² Guarantees as for own debt³ Financial collateral Collateral in assets Other collateral Unsecured⁴ Total Balance sheet items Cash and balances with central banks 312,066 312,066 Loans to credit institutions Note P16 189,848 789,937 979,785 Loans to the public Note P17 134,522 198,158 98,719 4,047 9,278 4,358 5,474 41,234 495,790 Interest-bearing securities eligible as collateral with central banks Note P15 186,958 1,314 188,272 Bonds and other interest-bearing securities Note P18 7,665 46,860 1,955 56,480 Derivative instruments Note P22 433 25,470 25,903 Total 134,522 198,158 795,689 4,047 9,278 4,358 52,334 859,910 2,058,296 Off-balance sheet items Contingent liabilities Note P43 83,554 52,278 27,069 9,710 9,884 1,584 7,747 534,245 726,071 of which contingent liabilities 4,001 1,136 6,679 264 702 1,232 507 40,243 54,764 of which obligations 79,553 51,142 20,390 9,446 9,182 352 7,240 494,002 671,307 Total 83,554 52,278 27,069 9,710 9,884 1,584 7,747 534,245 726,071 Total on- and off-balance sheet items 218,076 250,436 822,758 13,757 19,162 5,942 60,081 1,394,155 2,784,367 Credit risk exposures, breakdown by type of collateral 2024 SEK m Note Residential property¹ Other property Sovereigns, municipalities and county councils² Guarantees as for own debt³ Financial collateral Collateral in assets Other collateral Unsecured⁴ Total Balance sheet items Cash and balances with central banks 404,238 404,238 Loans to credit institutions Note P16 220,340 776,577 996,917 Loans to the public Note P17 150,723 206,065 64,421 4,685 11,802 4,450 5,967 76,058 524,171 Interest-bearing securities eligible as collateral with central banks Note P15 170,604 2,002 172,606 Bonds and other interest-bearing securities Note P18 9,845 43,724 53,569 Derivative instruments Note P22 1,662 19 51,005 52,686 Total 150,723 206,065 871,110 4,685 11,821 4,450 5,967 949,366 2,204,187 Off-balance sheet items Contingent liabilities Note P43 81,415 51,074 28,156 5,070 10,274 1,651 6,939 563,605 748,183 of which contingent liabilities 4,591 1,034 5,856 2,482 782 1,360 596 51,651 68,352 of which obligations 76,824 50,040 22,300 2,588 9,492 291 6,343 511,954 679,832 Total 81,415 51,074 28,156 5,070 10,274 1,651 6,939 563,605 748,183 Total on- and off-balance sheet items 232,138 257,139 899,266 9,755 22,095 6,101 12,906 1,512,971 2,952,370 1) Including housing co-operative apartments. 2) Refers to direct exposures to sovereigns and municipalities and government guarantees. 3) Does not include government guarantees. 4) This column includes the parent company’s internal lending and commitments to the Group’s subsidiaries. For balance sheet items, this internal lending amounted to SEK 971,615 million (969,085), and for off-balance sheet items it amounted to SEK 295,867 million (272,990). Market risks SEK m 2025 2024² Interest rate risk 1,090 1,303 Foreign exchange risk¹ 14 8 Equity price risk 39 66 Commodity price risk 1 1 1) Worst outcome in the case of +/–5% change in SEK. 2) The result for Foreign exchange risk 2024 differs from previously reported results due to a change in method. P2 cont. 287Handelsbanken Annual Report 2025 3.2
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Maturity analysis for financial assets and liabilities 2025 SEK m Up to 30 days 31 days– 6 mths 6–12 mths 1–2 yrs 2–5 yrs Over 5 yrs Unspecified maturity Total Cash and balances with central banks 334,887 334,887 Interest-bearing securities eligible as collateral with central banks¹ 188,272 188,272 Bonds and other interest-bearing securities² 56,480 56,480 Loans to credit institutions 104,597 175,796 148,121 120,960 435,744 53,225 1,038,443 of which reverse repurchase agreements 14,059 14,059 Loans to the public 75,507 96,156 85,401 68,218 106,970 213,721 645,972 of which reverse repurchase agreements 18,156 18,156 Other 14,748 109,715 124,463 of which shares and participating interests 11,122 11,122 of which assets from unsettled trades 3,626 3,626 Total assets 774,490 271,951 233,522 189,177 542,714 266,946 109,715 2,388,517 Due to credit institutions 23,171 49,601 10,261 8,216 2,842 5,710 29,486 129,287 of which repurchase agreements of which deposits from central banks 31,140 264 31,404 Deposits and borrowing from the public 46,226 116,649 6,401 8,792 1,467 64 867,868 1,047,467 of which repurchase agreements 0 0 Issued securities³ 68,303 317,708 181,537 54,885 109,683 44,618 776,734 of which covered bonds of which certificates of deposit (CDs) with original maturity of less than one year 23,377 85,049 50,736 159,162 of which commercial paper (CPs) with original maturity of less than one year 44,396 189,858 108,377 342,631 of which certificates of deposit (CDs) and commercial paper (CPs) with original maturity of over one year 1,869 1,869 of which senior non-preferred bonds 10,034 9,253 7,296 35,110 37,782 99,476 of which senior bonds and other securities with original maturity of over one year 328 32,238 12,844 48,043 75,511 7,209 176,173 Subordinated liabilities 738 744 12,015 15,938 10,232 39,666 Other 5,466 196,283 201,749 of which short positions 2,163 2,163 of which liabilities from unsettled trades 3,303 3,303 Total liabilities 143,166 484,696 198,943 83,907 129,930 60,623 1,093,638 2,194,904 Off-balance sheet items Financial guarantees and unutilised loan commitments 726,071 Derivatives 2025 SEK m Up to 30 days 31 days– 6 mths 6–12 mths 1–2 yrs 2–5 yrs Over 5 yrs Unspecified maturity Total Total derivatives inflow 181,657 545,542 125,173 118,533 289,730 95,621 1,356,256 Total derivatives outflow 182,521 552,277 124,961 118,518 288,166 91,686 1,358,129 Net -864 -6,735 212 15 1,564 3,935 -1,873 P2 cont. 288 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Maturity analysis for financial assets and liabilities 2024 SEK m Up to 30 days 31 days– 6 mths 6–12 mths 1–2 yrs 2–5 yrs Over 5 yrs Unspecified maturity Total Cash and balances with central banks 416,820 416,820 Interest-bearing securities eligible as collateral with central banks¹ 172,606 172,606 Bonds and other interest-bearing securities² 53,569 53,569 Loans to credit institutions 121,107 192,692 101,814 159,244 272,893 218,597 1,066,347 of which reverse repurchase agreements 12,681 12,681 Loans to the public 60,252 112,400 77,324 88,920 113,920 216,082 668,898 of which reverse repurchase agreements 17,995 17,995 Other 12,011 141,541 153,552 of which shares and participating interests 8,952 8,952 of which assets from unsettled trades 3,059 3,059 Total assets 836,364 305,093 179,138 248,163 386,813 434,679 141,541 2,531,791 Due to credit institutions 57,520 60,930 14,544 9,512 2,782 284 26,955 172,527 of which repurchase agreements of which deposits from central banks 12,943 247 13,190 Deposits and borrowing from the public 59,735 117,791 5,663 2,047 1,180 80 865,759 1,052,255 of which repurchase agreements Issued securities³ 87,467 347,492 199,811 69,342 131,914 33,924 869,950 of which covered bonds of which certificates of deposit (CDs) with original maturity of less than one year 38,703 150,653 53,589 242,946 of which commercial paper (CPs) with original maturity of less than one year 48,020 158,976 142,232 349,227 of which certificates of deposit (CDs) and commercial paper (CPs) with original maturity of over one year 2,876 684 3,560 of which senior non-preferred bonds 918 729 20,937 31,425 32,600 86,609 of which senior bonds and other securities with original maturity of over one year 429 32,818 2,327 47,990 99,678 1,120 184,363 Subordinated liabilities 849 799 1,647 29,918 11,707 44,920 Other 3,854 203,856 207,710 of which short positions 1,007 1,007 of which liabilities from unsettled trades 2,847 2,847 Total liabilities 208,576 527,062 220,818 82,548 165,795 45,995 1,096,570 2,347,363 Off-balance sheet items Financial guarantees and unutilised loan commitments⁴ 748,183 Derivatives 2024 SEK m Up to 30 days 31 days– 6 mths 6–12 mths 1–2 yrs 2–5 yrs Over 5 yrs Unspecified maturity Total Total derivatives inflow 235,249 494,452 123,672 182,922 317,801 95,749 1,449,845 Total derivatives outflow 232,889 482,784 123,544 177,014 310,440 90,447 1,417,118 Net 2,360 11,668 128 5,908 7,361 5,302 32,727 1) SEK 155,002 million (138,235) of the amount (excl. interest) has a time to maturity of less than one year. 2) SEK 21,830 million (6,865) of the amount (excl. interest) has a time to maturity of less than one year. 3) SEK 557,073 million (621,170) of the amount (excl. interest) has a time to maturity of less than one year. 4) The figure for 2024 differs from previously reported amounts due to a change in method. For deposit volumes, the column “Unspecified maturity” refers to deposits payable on demand. The table contains interest flows, which means that the balance sheet items are not reconcilable with the parent company’s balance sheet. P2 cont. 289Handelsbanken Annual Report 2025 3.2
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P3 Net interest income SEK m 2025 2024 Interest income Loans to credit institutions and central banks 46,901 63,520 Loans to the public 23,098 30,160 Interest-bearing securities eligible as collateral with central banks 5,103 8,491 Bonds and other interest-bearing securities 2,356 2,362 Derivative instruments 11,663 23,545 Other interest income 391 350 Total 89,512 128,428 Deduction of interest income reported in net gains/losses on financial transactions −1,503 −2,550 Total interest income 88,009 125,879 of which interest income according to effective interest method and interest on derivatives in hedge accounting 74,250 105,952 Leasing income 1,522 1,650 Interest expenses Due to credit institutions and central banks −5,520 −7,030 Deposits and borrowing from the public −23,041 −39,102 Issued securities, etc. −28,548 −37,968 Derivative instruments −8,669 −19,019 Subordinated liabilities −1,581 −1,611 Deposit guarantee fees −304 −245 Other interest expenses −798 −729 Total −68,461 −105,703 Deduction of interest expenses reported in net gains/losses on financial transactions 2,014 3,591 Total interest expenses −66,447 −102,112 of which interest expenses according to the effective interest method and interest on derivatives in hedge accounting −61,014 −93,705 Net interest income 23,084 25,416 Depreciation according to plan for finance leases¹ −1,292 −1,330 Total net interest income incl. depreciation according to plan for finance leases 21,792 24,085 1) Recognised in the item Depreciation, amortisation and impairment of tangible and intangible assets. The derivative instrument rows include net interest income related to hedged assets and liabilities. These may have both a positive and a negative impact on interest income and interest expenses. P4 Dividends received SEK m 2025 2024 Dividends on shares 186 184 Dividends from Group companies¹ 7,407 12,544 Group contributions received 8,080 8,945 Total 15,673 21,673 1) Of which SEK 958 million (1,261) refers to dividends on common equity tier 1 capital loans which Stadshypotek has classified as equity instruments. 290 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P5 Net fee and commission income SEK m 2025 2024 Brokerage and other securities commissions 505 436 Mutual funds 1,073 125 Custody and other asset management fees 1,157 1,060 Advisory services 129 152 Card payments 1,731 1,729 Payment processing 858 1,084 Loans and deposits 710 785 Guarantees 160 191 Other 844 646 Total fee and commission income 7,166 6,208 Securities −227 −227 Card payments −791 −806 Payment processing −294 −268 Other −120 −136 Total fee and commission expenses −1,431 −1,437 Net fee and commission income 5,735 4,771 Fee and commission income refers to income from contracts with customers. Income from Brokerage and other securities commissions, Advisory services, Payments and Loans and deposits is generally recognised in conjunction with the rendering of the service, i.e., at a specific point in time. Income from Mutual funds, Custody and other asset management fees, Insurance and Guarantees is generally recognised as the services are rendered, i.e., on a straight-line basis over time. P6 Net gains/losses on financial transactions SEK m 2025 2024 Amortised cost 30 30 of which loans 30 30 Fair value through other comprehensive income 1 0 of which interest -bearing securities – expected credit losses 1 0 of which interest -bearing securities – reclassified from other comprehensive income 0 Fair value through profit or loss, fair value option −525 −112 of which interest -bearing securities −525 −112 Fair value through profit or loss, mandatory incl. foreign exchange effects 1,644 3,013 Hedge accounting −9 −51 of which net gains/losses on fair value hedges 28 −56 of which cash flow hedge ineffectiveness −37 5 Total 1,142 2,880 P7 Other operating income SEK m 2025 2024 Rental income 9 8 Services sold to subsidiaries 3,342 3,673 Other¹ 398 272 Total 3,749 3,953 1) The repayment of VAT attributable to prior years expensed in 2025 increased other income by SEK 196 million. Furthermore, the sale of BGC Holding impacted other operating income in the amount of SEK 51 million. In 2024, Svenska Handels banken AB divested its SME operations in Finland to Oma Sparbank Abp, which increased operating income by SEK 96 million. The repayment of VAT attributable to prior years was also expensed in 2024, which increased operating income by SEK 52 million. 291Handelsbanken Annual Report 2025 3.2
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P8 Staff costs SEK m 2025 2024 Salaries and fees −7,238 −7,940 Social security costs −2,041 −2,113 Pension costs¹ −2,124 −2,267 Provision for the profit-sharing scheme −86 −96 Other −594 −705 Total −12,083 −13,121 Deduction of staff-related expenses capitalised as intangible assets² 284 255 Total staff costs −11,799 −12,865 1) Information about pension costs is presented in note P44 Net pensions. 2) Staff-related expenses capitalised are recognised as intangible assets, see note P25 Intangible assets. Salaries and fees SEK m 2025 2024 Executive officers¹ −77 −85 Others −7,161 −7,855 Total −7,238 −7,940 1) Executive officers including Board members, an average of 18 individuals (19). Gender distribution 2025 2024 % Men Women Men Women Board 54 46 54 46 Executive officers excluding Board members 62 38 56 44 Average number of employees 2025 2024 Total Men Women Total Men Women Sweden 6,768 3,305 3,463 7,132 3,468 3,664 Norway 1,043 556 487 1,056 557 499 Finland 173 75 98 472 217 255 The Netherlands 436 275 161 422 262 160 USA 49 29 20 50 29 21 Luxembourg 50 23 27 53 29 24 Poland 8 2 6 14 3 11 Other countries 2 0 2 2 0 2 Total 8,528 4,265 4,263 9,201 4,565 4,636 Note G8 provides information about the principles for remuneration to executive officers in the parent company. 292 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P9 Other administrative expenses SEK m 2025 2024 IT -related expenses −3,270 −3,710 Purchased services −1,137 −1,629 Property and premises −1,361 −1,359 Telephone and postage −208 −209 Travel and entertainment −128 −130 Marketing −91 −92 Supplies −107 −126 Other¹ −563 −766 Total −6,865 −8,022 Deduction of other expenses capitalised as intangible assets² 189 276 Total other administrative expenses −6,677 −7,745 1) In 2024, Svenska Handels banken AB divested its private and life insurance operations in Finland to S-Banken Abp, which had an impact of SEK -227 million on other administrative expenses. 2) IT -related expenses, Purchased services and Other expenses capitalised and recognised as intangible assets, see note P25 Intangible assets. Remuneration to auditors and audit companies¹ Öhrlings PricewaterhouseCoopers AB Deloitte AB SEK m 2025 2024 2025 2024 Audit assignment −16 −10 −7 −7 Audit operations outside the audit assignment −3 −1 −2 −2 Other services −1 −2 1) Remuneration to auditors and audit companies is included in Purchased services. The amounts in the table are exclusive of VAT. Expenses for operating leases¹ SEK m 2025 2024 Fixed lease payments and lease payments that depend on an index −1,095 −1,107 Variable lease payments −113 −109 Total −1,208 −1,216 1) Expenses for operating leases are included in the row Property and premises above. Operating leases are mainly related to agreements that are normal for the operations regarding office premises and office equipment. Rental costs for premises normally have a variable fee related to the inflation rate and to property taxes. Contracted irrevocable future operating lease payments distributed by maturity SEK m 2025 2024 Within 1 yr −916 −871 Between 1 and 5 yrs −2,566 −2,656 Over 5 yrs −2,698 −2,868 Total −6,180 −6,395 293Handelsbanken Annual Report 2025 3.2
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P11 Net credit losses SEK m 2025 2024 Expected credit losses on balance sheet items The year’s provision Stage 3 −226 −215 Reversed Stage 3 provision from previous years 123 141 Total expected credit losses in Stage 3 −104 −74 The year’s net provision Stage 2 66 272 The year’s net provision Stage 1 24 82 Total expected credit losses in Stage 1 and Stage 2 91 354 Total expected credit losses on balance sheet items −13 280 Expected credit losses on off-balance sheet items The year’s net provision Stage 3 1 16 The year’s net provision Stage 2 42 114 The year’s net provision Stage 1 8 34 Total expected credit losses on off-balance sheet items 50 164 Write-offs Actual credit losses for the year¹ −137 −173 Utilised share of previous provisions in Stage 3 97 156 Total write-offs −41 −17 Recoveries 66 19 Net credit losses 63 446 of which loans to the public 15 284 1) Of the year’s actual credit losses, SEK 105 million (33) is subject to enforcement activities. P10 Depreciation, amortisation and impairment of tangible and intangible assets 2025 2024 SEK m Depreciation and amortisation Impairment Total Depreciation and amortisation Impairment Total Equipment −290 −290 −288 −288 Property −2 −2 −2 −2 Total tangible assets −292 −292 −290 −290 Internally developed software −560 −560 −597 0 −597 Other −1,301 −1,301 −1,370 −1,370 Total intangible assets −1,861 −1,861 −1,967 0 −1,967 Total depreciation, amortisation and impairment of tangible and intangible assets −2,153 −2,153 −2,258 0 −2,258 294 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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On- and off-balance sheet items that are subject to impairment testing 2025 Gross Provisions SEK m Stage 1 Stage 2 Stage 3¹ Stage 1 Stage 2 Stage 3 Balance sheet items Cash and balances with central banks 312,061 Loans to credit institutions 979,336 0 0 Loans to the public 480,300 14,220 1,991 −38 −44 −639 Bonds and other interest-bearing securities 9,056 −1 Total 1,780,754 14,220 1,991 −40 −44 −639 Off-balance sheet items Contingent liabilities 558,066 3,958 90 −26 −24 −17 of which contingent liabilities 54,042 669 53 −5 −3 −17 of which obligations 504,024 3,289 37 −21 −21 0 Total 558,066 3,958 90 −26 −24 −17 On- and off-balance sheet items that are subject to impairment testing 2024 Gross Provisions SEK m Stage 1 Stage 2 Stage 3¹ Stage 1 Stage 2 Stage 3 Balance sheet items Cash and balances with central banks 404,231 Loans to credit institutions 996,521 55 −1 −3 Loans to the public 500,413 22,439 2,155 −63 −106 −666 Bonds and other interest-bearing securities 13,259 −2 Total 1,914,424 22,494 2,155 −66 −109 −666 Off-balance sheet items Contingent liabilities 573,979 5,736 115 −34 −67 −26 of which contingent liabilities 66,761 1,525 66 −6 −9 −25 of which obligations 507,218 4,211 49 −28 −58 −1 Total 573,979 5,736 115 −34 −67 −26 1) Gross volume in Stage 3 for which no provision has been made, due to collateral received, amounts to SEK 1,069 million (1,038). Key metrics, credit losses, loans to the public % 2025 2024 Credit loss ratio, acc. 0.00 −0.05 Total provision ratio 0.15 0.16 Provision ratio Stage 1 0.01 0.01 Provision ratio Stage 2 0.31 0.47 Provision ratio Stage 3 32.09 30.90 Proportion of loans in Stage 3 0.27 0.28 P11 cont. 295Handelsbanken Annual Report 2025 3.2
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Change analysis Change in provision for expected credit losses, balance sheet items that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening provision −66 −109 −666 −841 −146 −393 −786 −1,326 Derecognised assets 8 31 74 113 35 52 97 183 Write-offs 0 0 97 97 0 0 156 156 Remeasurements due to changes in credit risk 0 7 −73 −67 −26 242 −35 181 Changes due to update in the methodology for estimation Foreign exchange effects, etc. 1 3 20 24 4 0 −5 −1 Purchased or originated assets −5 −1 −5 −10 −6 −2 −6 −15 Transfer to Stage 1 −3 3 1 1 −6 13 0 7 Transfer to Stage 2 12 −15 0 −2 13 −50 3 −34 Transfer to Stage 3 12 37 −86 −37 67 29 −90 6 Closing provision −40 −44 −639 −723 −66 −109 −666 −841 Change in provision for expected credit losses, loans to the public that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening provision −63 −106 −666 −836 −143 −392 −786 −1,321 Derecognised assets 8 31 74 113 35 52 97 183 Write-offs 0 0 97 97 0 0 156 156 Remeasurements due to changes in credit risk −2 4 −73 −71 −26 239 −35 178 Changes due to update in the methodology for estimation Foreign exchange effects, etc. 1 3 20 24 4 0 −5 −1 Purchased or originated assets −5 −1 −5 −10 −6 −2 −6 −15 Transfer to Stage 1 −3 3 1 1 −6 13 0 7 Transfer to Stage 2 12 −15 0 −2 13 −46 3 −30 Transfer to Stage 3 12 37 −86 −37 67 29 −90 6 Closing provision −38 −44 −639 −722 −63 −106 −666 −836 Change in the provision for expected credit losses, off-balance sheet items that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening provision −34 −67 −26 −127 −69 −181 −42 −292 Derecognised assets 7 10 18 11 16 27 Write-offs 0 0 0 0 0 0 0 0 Remeasurements due to changes in credit risk 3 36 16 55 28 106 16 151 Changes due to update in the methodology for estimation Foreign exchange effects, etc. 1 0 1 2 0 2 Purchased or originated assets −8 −1 −4 −13 −9 −1 −10 Transfer to Stage 1 −1 1 0 −2 6 4 Transfer to Stage 2 6 −6 0 4 −18 −14 Transfer to Stage 3 1 2 −3 1 4 5 Closing provision −26 −24 −17 −67 −34 −67 −26 −127 The change analysis shows the net effect on the provision for the Stage in question for each explanatory item during the period. The effect of derecognitions and write-offs is calculated on the opening balance. The effect of revaluations due to changes in the methodology for estimation and foreign exchange effects, etc., is calculated before any transfer of the net amount between Stages. Purchased or originated assets and amounts transferred between Stages are recognised after the effects of other explanatory items are taken into account. The transfer rows present the effect on the provision for the stated Stage. P11 cont. 296 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Change in gross volume, balance sheet items that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening volume 1,914,424 22,494 2,155 1,939,073 1,936,562 46,619 2,476 1,985,658 Derecognised assets −60,949 −4,055 −651 −65,655 −63,903 −8,034 −487 −72,425 Write-offs −2 −3 −130 −134 −3 −3 −166 −172 Remeasurements due to changes in credit risk −54,702 −811 −160 −55,673 −26,449 −8,228 −170 −34,846 Foreign exchange effects, etc. −69,520 −1,172 −40 −70,733 18,622 164 19 18,805 Purchased or originated assets 49,406 554 127 50,088 41,098 924 31 42,053 Transfer to Stage 1 9,854 −9,829 −25 29,940 −29,930 −9 Transfer to Stage 2 −7,565 7,675 −110 −20,888 21,331 −444 Transfer to Stage 3 −192 −632 824 −556 −349 905 Closing volume 1,780,754 14,220 1,991 1,796,965 1,914,424 22,494 2,155 1,939,073 Change in gross volume, loans to the public that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening volume 500,413 22,439 2,155 525,007 553,233 46,608 2,476 602,318 Derecognised assets −53,958 −4,055 −651 −58,664 −58,856 −8,034 −487 −67,378 Write-offs −2 −3 −130 −134 −3 −3 −166 −172 Remeasurements due to changes in credit risk 7,454 −833 −160 6,461 −22,121 −5,925 −170 −28,216 Foreign exchange effects, etc. −15,954 −1,172 −40 −17,166 −20,713 164 19 −20,530 Purchased or originated assets 40,327 554 127 41,008 38,031 924 31 38,986 Transfer to Stage 1 9,773 −9,748 −25 29,935 −29,925 −9 Transfer to Stage 2 −7,561 7,670 −110 −18,536 18,980 −444 Transfer to Stage 3 −192 −632 824 −556 −349 905 Closing volume 480,300 14,220 1,991 496,511 500,413 22,439 2,155 525,007 Change in gross volume, off-balance sheet items that are subject to impairment testing 2025 2024 SEK m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening volume 573,979 5,736 115 579,830 547,062 10,415 122 557,599 Derecognised assets −56,886 −1,193 −46 −58,125 −39,772 −1,467 −16 −41,255 Write-offs 0 0 −3 −3 0 0 −1 −2 Remeasurements due to changes in credit risk −8,126 −50 −7 −8,183 57,586 −1,816 −49 55,721 Foreign exchange effects, etc. −5,783 −59 0 −5,843 −46,434 −33 1 −46,466 Purchased or originated assets 53,724 709 5 54,438 53,930 303 0 54,233 Transfer to Stage 1 2,862 −2,862 0 5,373 −5,372 −1 Transfer to Stage 2 −1,691 1,705 −15 −3,743 3,747 −4 Transfer to Stage 3 −13 −28 41 −22 −41 63 Closing volume 558,066 3,958 90 562,114 573,979 5,736 115 579,830 Like the analysis for provisions, the change analysis for gross volumes shows the effect of selected explanatory items on the volumes for a stated Stage. The items showing transfers between Stages, and “Purchased or originated assets”, present the amounts in the stated Stage at the end of the period. Other items present the effect in the Stage applying at the start of the period. P11 cont. 297Handelsbanken Annual Report 2025 3.2
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Sensitivity analysis Sensitivity analysis, macroeconomic scenarios The calculation of expected credit losses applies forward-looking information in the form of macroeconomic scenarios. The expected credit loss is a probability-weighted average of the estimated forecasts over three scenarios. The forecast in the base case scenario is assigned a weight of 70% (70), while an upturn in the economy is assigned 15% (15), and a downturn 15% (15). These have formed the basis for the calculation of expected credit losses in Stage 1 and Stage 2 as at 31 December 2025. Macroeconomic risk factors Downturn scenario Neutral scenario Upturn scenario 2026 2027 2028 2026 2027 2028 2026 2027 2028 GDP growth Sweden −1.49 −0.30 1.90 2.51 2.20 1.90 3.81 3.20 2.20 Norway −2.41 −0.85 1.60 1.59 1.65 1.60 2.89 2.65 1.90 Finland −2.99 −0.70 1.50 1.01 1.80 1.50 2.31 2.80 1.80 Eurozone −3.04 −1.07 1.30 0.96 1.43 1.30 2.26 2.43 1.60 USA −2.54 −0.64 2.20 1.46 1.86 2.20 2.76 2.86 2.50 Policy interest rate Sweden 4.00 4.50 4.25 1.75 2.25 2.25 1.25 1.25 1.25 Norway 5.75 5.75 5.00 3.50 3.50 3.00 3.00 2.50 1.75 Finland 4.00 4.25 4.00 1.75 2.00 2.00 1.25 1.00 1.00 Eurozone 4.00 4.25 4.00 1.75 2.00 2.00 1.25 1.00 1.00 USA 5.63 5.38 5.00 3.38 3.13 3.00 2.88 2.13 2.00 Unemployment Sweden 9.75 10.45 10.10 8.55 7.95 7.60 8.15 7.25 7.10 Norway 3.50 4.60 4.60 2.10 2.10 2.10 1.70 1.40 1.60 Finland 11.10 11.20 10.20 9.70 8.70 7.70 9.30 8.00 7.20 Eurozone 7.80 8.75 8.75 6.40 6.25 6.25 6.00 5.55 5.75 USA 6.20 7.08 7.00 4.80 4.58 4.50 4.40 3.88 4.00 Property price trend, residential real estate Sweden −2.58 −1.43 1.92 4.95 5.92 4.50 9.76 8.67 5.64 Norway 5.62 −0.23 1.01 6.21 5.01 3.50 9.57 9.31 4.10 Finland −6.20 −0.18 6.67 2.36 3.91 3.06 6.73 6.58 2.43 Eurozone 1.38 3.84 3.70 2.88 3.34 3.20 3.78 3.64 2.90 Property price trend, commercial real estate Sweden −7.77 −1.99 −0.07 1.42 4.30 3.66 6.93 7.81 3.66 Norway −8.53 −5.49 −2.88 0.75 2.18 1.47 5.10 5.98 1.45 Finland −10.60 −3.70 4.57 0.16 2.84 2.53 5.08 6.51 2.14 Eurozone −7.63 −1.78 0.97 0.66 2.54 1.57 7.66 4.60 1.77 The table below shows the percentage increase/decrease in the provision for expected credit losses in Stage 1 and Stage 2, as at 31 December, which arises when a probability of 100% is assigned to the downturn and upturn scenarios, respectively. 2025 2024 % Increase in the provision in a downturn scenario Decrease in the provision in an upturn scenario Increase in the provision in a downturn scenario Decrease in the provision in an upturn scenario Sweden 26.95 −10.99 34.36 −13.92 Norway 34.29 −12.85 38.99 −15.32 Finland 23.39 −10.97 23.84 −8.85 The Netherlands 32.50 −17.80 47.07 −18.81 USA 59.84 −23.07 77.81 −28.43 Other countries 18.90 −7.42 25.02 −10.66 Total 28.72 −11.71 35.11 −13.91 Sensitivity analysis, significant increase in credit risk The table below shows how the provision in Stage 1 and Stage 2 as at 31 December is affected if the threshold value applied for the ratio between residual credit risk calculated on the reporting date and on initial recognition were to be set 0.5 percentage points lower and higher, respectively, than the applied threshold value of 2.5. A reduction of 0.5 to the threshold value would increase the number of loans transferred from Stage 1 to Stage 2 and would also entail an increase in the provision for expected credit losses. An increase of 0.5 to the threshold value would have the opposite effect. The Bank uses both quantitative and qualitative indicators to assess significant increases in credit risk. Change in the total provision in Stage 1 and Stage 2, % Threshold value 2025 2024 2 3.78 3.70 2.5 0.00 0.00 3 −3.11 −1.23 P11 cont. 298 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P11 cont. Credit exposures that are subject to impairment testing, by PD range Balance sheet items by PD range 2025 2024 Gross volume, SEK m Gross volume, SEK m PD value¹ Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 0.00 to <0.15 1,577,693 2,810 1,736,862 4,800 0.15 to <0.25 54,809 266 63,081 827 0.25 to <0.50 103,622 4,223 65,393 5,591 0.50 to <0.75 14,310 133 12,519 515 0.75 to <2.50 28,859 1,696 34,226 3,943 2.50 to <10.00 1,382 4,196 2,265 5,490 10.00 to <100 79 897 79 1,328 100 (default) 1,991 2,155 Total 1,780,754 14,220 1,991 1,914,424 22,494 2,155 Loans to the public by PD range 2025 2024 Gross volume, SEK m Gross volume, SEK m PD value¹ Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 0.00 to <0.15 425,531 2,810 454,000 4,788 0.15 to <0.25 14,783 266 16,489 825 0.25 to <0.50 27,949 4,223 17,093 5,578 0.50 to <0.75 3,860 133 3,272 513 0.75 to <2.50 7,784 1,696 8,946 3,933 2.50 to <10.00 373 4,196 592 5,477 10.00 to <100 21 897 21 1,325 100 (default) 1,991 2,155 Total 480,300 14,220 1,991 500,413 22,439 2,155 Off-balance sheet items by PD range 2025 2024 Gross volume, SEK m Gross volume, SEK m PD value¹ Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 0.00 to <0.15 376,738 360 390,514 511 0.15 to <0.25 51,341 297 47,418 173 0.25 to <0.50 65,838 632 76,469 645 0.50 to <0.75 43,692 243 41,147 309 0.75 to <2.50 18,810 258 16,918 1,041 2.50 to <10.00 1,007 2,020 1,129 2,785 10.00 to <100 641 148 385 272 100 (default) 90 115 Total 558,066 3,958 90 573,979 5,736 115 1) Refers to 12-month PD value as at the reporting date. Assets repossessed for protection of claims SEK m 2025 2024 Movable property 2 2 Total 2 2 Movable property mainly consists of repossessed lease assets. The valuation principles for assets and liabilities repossessed for protection of claims are described in note G1. 299Handelsbanken Annual Report 2025 3.2
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P12 Impairment loss on financial fixed assets SEK m 2025 2024 Shares in subsidiaries and investments in joint ventures Handels banken Rahoitus Oy −1,615 Handels banken Finans AB −1,364 −546 Handels banken Ventures AB −10 −2 AB Handel och Industri 0 0 Total −1,374 −2,163 P13 Regulatory fees SEK m 2025 2024 Risk tax −1,188 −1,240 Resolution fee −380 −415 Cost for interest-free deposits at the Riksbank −77 Total −1,645 −1,655 The risk tax amounted to 0.06% (0.06) of the tax base, which is based on the total liabilities of the credit institution at the beginning of the income year. The resolution fee amounted to 0.05% (0.05) of the fee base plus a risk adjustment factor. The fee base is based on the institution’s liabilities two years before the fee year. Based on an amendment to the Sveriges Riksbank Act that came into effect on 1 January 2025, the Riksbank (Sweden’s central bank) can decide to receive interest-free deposits from Swedish banks and other credit institutions with operations in Sweden. The Bank’s assessment is that no single IFRS applies to the reporting of the interest-free deposits the Bank is to deposit with the Riksbank, which, from the Bank’s perspective, comprises an interest-free loan to the Riksbank. Therefore, the Bank has developed an accounting policy that is in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The basis for the accounting policy is that the interest income that is not received as a result of the regulatory requirement for the Bank to make an interest-free deposit to the Riksbank constitutes a regulatory fee. For a description of the accounting policy, see note G1. P14 Appropriations SEK m 2025 2024 Change in accelerated depreciation, machinery, equipment and lease assets 166 336 Total 166 336 P15 Interest-bearing securities eligible as collateral with central banks 2025 2024 SEK m Carrying amount Fair value Nominal amount Carrying amount Fair value Nominal amount¹ Governments and municipalities 60,309 60,309 61,302 35,680 35,680 35,958 Sveriges Riksbank 127,963 127,963 128,000 136,927 136,927 137,000 Total 188,272 188,272 189,302 172,606 172,606 172,958 1) The nominal amounts for 2024 have been updated in connection with the changes to the presentation of this note. Average volumes SEK m 2025 2024 Interest-bearing securities eligible as collateral with central banks 239,219 257,685 300 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P16 Loans to credit institutions SEK m 2025 2024 Central banks and banks¹ 42,372 27,782 Other credit institutions² 937,413 969,139 Total 979,785 996,921 Provision for expected credit losses 0 −4 Total loans to credit institutions 979,785 996,917 of which reverse repurchase agreements 14,043 12,665 of which cash collateral pledged 5,541 3,377 of which subordinated 80,119 73,749 Average volumes SEK m 2025 2024 Loans to credit institutions 969,181 1,011,160 1) Based on an amendment to the Sveriges Riksbank Act that came into effect on 1 January 2025, the Riksbank (Sweden’s central bank) can decide to receive interest-free deposits from Swedish banks and other credit institutions with operations in Sweden. The carrying amount of the interest-free loan, due to the regulatory requirement for the Bank to make an interest-free deposit to the Riksbank, amounted to SEK 6,589 million on 31 December 2025 and is recognised in the balance sheet item Loans to credit institutions. For a description of the accounting policy for the interest-free deposit to the Riksbank, see note G1. 2) Of which SEK 18,149 million (18,045) refers to common equity tier 1 capital loans which Stadshypotek has classified as equity instruments. P17 Loans to the public SEK m 2025 2024 Households 105,727 112,181 Corporates 377,362 411,279 National Debt Office 13,422 1,547 Total 496,511 525,007 Provision for expected credit losses −722 −836 Total loans to the public 495,790 524,171 of which reverse repurchase agreements 18,128 17,977 of which cash collateral pledged 5,387 1,751 of which subordinated 0 0 Average volumes, excl. National Debt Office SEK m 2025 2024 Loans to the public 524,391 588,359 301Handelsbanken Annual Report 2025 3.2
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P19 Shares SEK m 2025 2024 Equities 10,161 8,350 Mutual fund units 945 586 Housing co-operative apartments 16 16 Total 11,122 8,952 of which recognised at fair value through other comprehensive income 686 694 Holdings at fair value through other comprehensive income SEK m 2025 2024 Visa Inc 520 517 VIPPS A/S 58 58 CLS 49 51 SWIFT 31 33 Other 28 35 of which housing co-operative apartments 16 16 of which other 12 19 Total 686 694 Handels banken classifies the shareholdings above as measured at fair value through other comprehensive income, as these holdings are not held for trading. Unrealised changes in value of these holdings are recognised in the fair value reserve and amount to SEK -4 million (159) after tax, see Note P39 Specification of changes in equity. During the year, the Bank divested the holding in Eksportfinans A/S for a value of SEK 10 million (3), see note P39 Specification of changes in equity. This realised change in value has been reclassified from the fair value reserve to retained earnings, see note P39 Specification of changes in equity. Dividends on shares were received from holdings that the Bank continues to own, which amount to SEK 11 million (16) and are recognised in the income statement as Dividends received, see note P4. P18 Bonds and other interest-bearing securities 2025 2024 SEK m Carrying amount Fair value Nominal amount Carrying amount Fair value Nominal amount² Credit institutions 11,773 11,773 11,713 10,428 10,428 10,319 Mortgage institutions 40,147 40,147 38,764 37,713 37,713 37,759 Other financial issuers 3,750 3,750 3,725 4,576 4,576 4,560 Non-financial issuers 809 809 803 851 851 850 Total¹ 56,480 56,480 55,006 53,569 53,569 53,488 1) Bonds and other interest-bearing securities that are subject to impairment testing amounted to SEK 9,056 million (13,259). These are measured at fair value through other comprehensive income. Provision for expected credit losses recognised in the fair value reserve in equity amounted to SEK -1 million (-2). 2) The nominal amounts for 2024 have been updated in connection with the changes to the presentation of this note. Average volumes SEK m 2025 2024 Bonds and other interest-bearing securities 65,824 59,973 302 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P20 Shares in Group companies Carrying amount, SEK m Corporate identity number Domicile Number of shares 2025 Ownership share, % 2025 2025 2024 Handels banken Finans AB¹ 556053-0841 Stockholm 1,550,000 100 5,032 6,396 Stadshypotek AB¹ 556459-6715 Stockholm 162,000 100 26,870 26,870 Handels banken Fonder AB 556418-8851 Stockholm 15,000 100 2 2 Handels banken Liv Försäkrings AB 516401-8284 Stockholm 100,000 100 6,189 6,189 SHB Liv Försäkringsaktiebolag 2478149-7 Helsinki Handels banken Fastigheter AB 556873-0021 Stockholm 100 Ecster AB 556993-2311 Stockholm 50,000 100 1,750 1,750 Handels banken plc¹ 11305395 London 5,050,401 100 24,329 25,029 Handels banken Wealth & Asset Management Limited 4132340 London 1,319,206 100 Optimix Vermogensbeheer N. V . 33194359 Amsterdam 10,209 100 691 734 Add Value Fund Management BV 19196768 Amsterdam 80 Other subsidiaries EFN Ekonomikanalen AB 556930-1608 Stockholm 100 100 0 0 AB Handel och Industri 556013-5336 Stockholm 100,000 100 12 12 Handels banken Markets Securities, Inc. 11-3257438 New York 1,000 100 36 43 Handels banken Rahoitus Oy 0112308-8 Helsinki Handels banken Skadeförsäkrings AB 516401-6767 Stockholm 1,500 100 31 31 Rådstuplass 4 AS 910508423 Bergen 40,000 100 0 0 Svenska Re S.A. RCS Lux B-32053 Luxembourg 20,000 100 35 35 SHB Hospitality AB 556993-9084 Stockholm 50 100 0 Handels banken Ventures AB 556993-9357 Stockholm 10 Total 64,977 67,101 1) Credit institution Change in shares in Group companies SEK m 2025 2024 Opening balance 67,101 68,674 Impairment −1,364 −2,163 Group contributions 0 1 Disposals −10 Foreign exchange effects −750 589 Closing balance 64,977 67,101 The list of Group companies contains directly owned subsidiaries and active subsidiaries of these companies. The voting power in each company corresponds to the share of equity. All companies are unlisted. In the second quarter of 2025, Hospitality AB was acquired from Handels banken Ventures AB and in the third quarter Handels banken Ventures was divested. In the fourth quarter of 2025, Handels banken Finans was written down in the amount of SEK 1,364 million. Handels banken Rahoitus Oy went into liquidation in the fourth quarter of 2024, which resulted in an impairment loss of SEK 1,615 million, and Handels banken Finans AB was written down in the amount of SEK 546 million. 303Handelsbanken Annual Report 2025 3.2
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P21 Investments in associates and joint ventures Carrying amount, SEK m Corporate identity number Domicile Number of shares 2025 Ownership share, % 2025 2025 2024 Associates¹ Bankomat AB 556817-9716 Stockholm 150 20.00 67 67 BGC Holding AB 556607-0933 Stockholm 81 Dyson Group plc² 163096 Sheffield 74,733,672 27.00 22 24 Finansiell ID-teknik BID AB 556630-4928 Stockholm 12,735 28.30 86 86 Getswish AB 556913-7382 Stockholm 10,000 20.00 111 111 USE Intressenter AB 559161-9464 Stockholm 2,448 24.48 0 0 Total 286 369 Joint ventures¹ Finansinfrastruktur i Sverige AB 559198-9610 Stockholm 22,500 22.50 277 115 Tibern AB 559384-3542 Stockholm 4,000 14.29 5 5 Total 282 120 Total investments in associates and joint ventures 568 489 1) All companies except Dyson Group plc are strategic holdings since they perform supporting activities, such as payment services. 2) Voting power, 24.01% Other associates and joint ventures have the same voting power and ownership share. Change in investments in associates and joint ventures SEK m 2025 2024 Opening balance 489 312 Acquisitions 27 23 Disposals −81 Shareholders’ contribution 135 152 Foreign exchange effects −1 2 Closing balance 568 489 There are no individually significant investments in associates or joint ventures held by Handels banken. All shares and investments are unlisted. In 2025, a shareholders’ contribution of SEK 135 million was paid to Finansinfrastruktur i Sverige AB and participations in Finansinfrastruktur i Sverige AB were acquired for SEK 27 million. In addition, BGC Holding AB was acquired by Finansinfrastruktur i Sverige AB and Handels banken received SEK 132 million. In 2024, shareholders’ contributions of SEK 90 million were paid to Getswish AB and SEK 62 million to Finansiell ID- Teknik BID AB. Additional participations in Finansinfrastruktur i Sverige AB were also acquired for SEK 23 million. 304 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P22 Derivative instruments 2025 2024 SEK m Nominal amount Positive market values Negative market values Nominal amount Positive market values Negative market values Derivatives held for trading Interest rate-related contracts Options 30,127 80 118 35,056 166 238 Futures/FRA 1,412,612 156 152 771,447 347 310 Swaps 2,669,994 28,824 30,539 2,643,208 40,477 41,208 Currency-related contracts Options 8,636 16 48 19,747 58 89 Futures 54,316 508 1,022 69,653 1,058 619 Swaps 843,606 10,483 18,471 887,982 24,930 13,424 Equity-related contracts Options 6,934 388 220 5,427 229 113 Futures 1,957 6 6 281 2 2 Swaps 9,686 102 1,021 8,760 299 232 Commodity-related contracts Options 36 36 19 19 Futures 398 5 2 135 1 4 Credit-related contracts Swaps 4,798 161 159 4,171 164 147 Total 5,043,099 40,728 51,795 4,445,886 67,732 56,404 Derivatives for fair value hedges Interest rate-related contracts Swaps 322,524 7,752 4,186 360,026 9,424 6,970 Currency-related contracts Swaps 926 12 1,046 83 Total 323,450 7,752 4,198 361,072 9,507 6,970 Derivatives for cash flow hedges Interest rate-related contracts Swaps 20,185 1,287 13 40,713 2,072 46 Currency-related contracts Swaps 157,946 8,750 4,533 163,746 17,519 1,222 Total 178,131 10,038 4,546 204,459 19,591 1,269 Total gross amount 5,544,679 58,518 60,539 5,011,417 96,830 64,643 Amounts offset −2,332,268 −32,615 −22,999 −2,368,886 −44,144 −34,331 Total derivative instruments 3,212,411 25,903 37,540 2,642,531 52,686 30,312 Currency breakdown of market values gross SEK 150,254 437,279 −295,713 −40,467 EUR 81,876 −21,596 178,621 93,770 NOK −120,882 9,858 −201,725 −56,664 GBP 2,340 10,647 −21,459 −1,593 USD −69,171 −364,803 437,043 104,150 Others 14,100 −10,846 63 −34,553 Total 58,518 60,539 96,830 64,643 Derivative contracts are presented gross in the note. Amounts offset consist of the offset market value and the associated nominal amounts of contracts for which the Bank has the legal right and intention to settle contractual cash flows net (including cleared contracts). These contracts are presented on a net basis on the balance sheet per counterparty and currency. The Bank amortises positive differences between the value measured by a valuation model upon initial recognition and the transaction price (day 1 gains/losses) over the life of the derivative. Such not yet recognised day 1 gains amounted to SEK 412 million (500) at year-end. 305Handelsbanken Annual Report 2025 3.2
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P23 Hedge accounting Hedging instruments in fair value hedges 2025 2024 SEK m Up to 1 yr 1–5 yrs Over 5 yrs Up to 1 yr 1–5 yrs Over 5 yrs Interest rate risk Interest rate swaps, variable interest paid and fixed interest received Nominal amount 50,013 130,416 41,432 20,694 176,443 40,045 Average fixed interest, % 2.07 3.24 3.53 2.45 3.01 2.89 Cross-currency interest rate swaps, variable interest paid and fixed interest received Nominal amount 926 1,046 Average fixed interest, % 3.69 3.69 Total 50,013 131,342 41,432 20,694 177,489 40,045 Hedging instruments and ineffectiveness in fair value hedges 2025 Nominal amount hedging instruments Carrying amount hedging instruments Change in fair value used to calculate ineffectiveness Ineffectiveness recognised in the income statementSEK m Assets Liabilities Interest rate risk Interest rate swaps, variable interest paid and fixed interest received 221,861 1,918 3,795 1,996 11 Cross-currency interest rate swaps, variable interest paid and fixed interest received 926 12 52 −3 Total 222,787 1,918 3,807 2,048 8 Portfolio fair value hedges Interest rate risk Interest rate swaps, fixed interest paid and variable interest received 100,663 5,834 391 −869 20 Total 100,663 5,834 391 −869 20 Hedging instruments and ineffectiveness in fair value hedges 2024 Nominal amount hedging instruments Carrying amount hedging instruments Change in fair value used to calculate ineffectiveness Ineffectiveness recognised in the income statementSEK m Assets Liabilities Interest rate risk Interest rate swaps, variable interest paid and fixed interest received 237,182 2,621 6,712 2,993 −71 Cross-currency interest rate swaps, variable interest paid and fixed interest received 1,046 83 0 6 Total 238,228 2,704 6,712 2,993 −65 Portfolio fair value hedges Interest rate risk Interest rate swaps, fixed interest paid and variable interest received 122,844 6,803 258 −3,248 9 Total 122,844 6,803 258 −3,248 9 The carrying amount of hedging instruments is included in the item Derivative instruments in the balance sheet. Ineffectiveness recognised in the income statement is included in the item Net gains/losses on financial transactions. 306 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Hedged items in fair value hedges 2025 Carrying amount hedged item Accumulated fair value adjustment included in the carrying amount of the hedged item Change in fair value used to calculate ineffectivenessSEK m Assets Liabilities Assets Liabilities Interest rate risk Issued fixed-interest securities and subordinated liabilities 219,140 −3,686 −2,040 Total 219,140 −3,686 −2,040 Portfolio fair value hedges¹ Interest rate risk Fixed-interest loans to the public −5,510 −5,510 889 Total −5,510 −5,510 889 Hedged items in fair value hedges 2024 Carrying amount hedged item Accumulated fair value adjustment included in the carrying amount of the hedged item Change in fair value used to calculate ineffectivenessSEK m Assets Liabilities Assets Liabilities Interest rate risk Issued fixed-interest securities and subordinated liabilities 231,475 −5,727 −3,059 Total 231,475 −5,727 −3,059 Portfolio fair value hedges¹ Interest rate risk Fixed-interest loans to the public −6,399 −6,399 3,257 Total −6,399 −6,399 3,257 1) The volume of the underlying lending portfolio was SEK 100,663 million (122,844) as at 31 December 2025. No accumulated amount of adjustments to fair value hedges remained on the balance sheet for hedged items which are no longer adjusted for changes in fair value either this year or last year. Hedging instruments in cash flow hedges 2025 2024 SEK m Up to 1 yr 1–5 yrs Over 5 yrs Up to 1 yr 1–5 yrs Over 5 yrs Interest rate risk Interest rate swaps, fixed interest paid and variable interest received Nominal amount 3,125 10,414 3,867 7,588 12,627 6,078 Average fixed interest, % 0.62 0.68 0.97 0.35 0.72 0.77 Interest rate swaps, variable interest paid and fixed interest received Nominal amount 918 1,861 13,321 1,099 Average fixed interest, % 3.98 3.99 3.58 3.98 Foreign exchange risk Foreign exchange derivatives, EUR/NOK Nominal amount 13,638 34,323 22,550 2,758 45,538 19,512 Average exchange rate EUR/NOK 0.0976 0.0955 0.0857 0.1008 0.0958 0.0896 Foreign exchange derivatives, USD/GBP Nominal amount 930 1,076 Average exchange rate USD/GBP 1.3157 1.3157 Foreign exchange derivatives, USD/NOK Nominal amount 15,050 21,318 8,923 36,864 Average exchange rate USD/NOK 0.1082 0.0979 0.1065 0.1027 Foreign exchange derivatives, USD/SEK Nominal amount 2,990 10,857 4,556 3,646 11,551 5,011 Average exchange rate USD/SEK 0.0930 0.1033 0.1105 0.1017 0.1003 0.1105 Foreign exchange derivatives, AUD/EUR Nominal amount 3,969 5,567 2,872 10,353 Average exchange rate AUD/EUR 1.5279 1.5573 1.5287 1.5451 Foreign exchange derivatives, AUD/NOK Nominal amount 11,066 3,749 Average exchange rate AUD/NOK 0.1491 0.1427 Foreign exchange derivatives, other currency pairs Nominal amount 3,878 7,254 331 11,561 Total 42,650 102,647 32,834 39,439 134,418 30,601 P23 cont. 307Handelsbanken Annual Report 2025 3.2
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Hedging instruments and ineffectiveness in cash flow hedges 2025 Nominal amount hedging instruments Carrying amount hedging instruments Change in fair value used to calculate ineffectiveness Change in the value of the hedging instruments recognised in other comprehensive income Ineffectiveness recognised in the income statement Reclassified from the hedge reserve to the income statement SEK m Assets Liabilities Interest rate risk Interest rate swaps, fixed interest paid and variable interest received 17,406 1,281 1 −411 −403 −8 Interest rate swaps, variable interest paid and fixed interest received 2,779 6 12 −44 −44 0 93 Foreign exchange risk¹ Foreign exchange derivatives, EUR/NOK 70,511 5,926 105 107 130 −23 Foreign exchange derivatives, EUR/SEK 7,271 514 15 15 0 Foreign exchange derivatives, USD/GBP 930 24 −1 −1 Foreign exchange derivatives, USD/NOK 36,368 2,028 1,400 −142 −135 −7 Foreign exchange derivatives, USD/SEK 18,403 185 1,160 −301 −301 0 Foreign exchange derivatives, AUD/EUR 9,536 1,183 −29 −31 2 Foreign exchange derivatives, AUD/NOK 11,066 173 147 −10 −7 −3 Foreign exchange derivatives, other currency pairs 3,861 439 −3 −5 2 25 Total 178,131 10,038 4,546 −819 −782 −37 118 Hedging instruments and ineffectiveness in cash flow hedges 2024 Nominal amount hedging instruments Carrying amount hedging instruments Change in fair value used to calculate ineffectiveness Change in the value of the hedging instruments recognised in other comprehensive income Ineffectiveness recognised in the income statement Reclassified from the hedge reserve to the income statement SEK m Assets Liabilities Interest rate risk Interest rate swaps, fixed interest paid and variable interest received 26,293 1,779 −695 −689 −6 Interest rate swaps, variable interest paid and fixed interest received 14,420 293 46 97 97 70 Foreign exchange risk¹ Foreign exchange derivatives, EUR/NOK 67,808 6,888 39 −280 −293 13 Foreign exchange derivatives, EUR/SEK 7,490 27 114 −8 −8 0 Foreign exchange derivatives, USD/GBP 1,076 50 6 6 Foreign exchange derivatives, USD/NOK 45,787 7,249 81 79 2 Foreign exchange derivatives, USD/SEK 20,208 2,829 95 97 −2 Foreign exchange derivatives, other currency pairs 21,376 476 1,069 22 24 −2 9 Total 204,458 19,591 1,268 −682 −687 5 79 1) When analysing for the purposes of hedge accounting, the conversion to the parent company’s functional currency, SEK, is taken into account by imputing nominal derivative legs in the hedging relationships. The imputed derivative legs are not included in the nominal volumes presented in the tables above. The carrying amount of hedging instruments is included in the item Derivative instruments in the balance sheet. Ineffectiveness recognised in the income statement is included in the item Net gains/losses on financial transactions. Reclassified to the income statement is included under Net gains/losses on financial transactions and refers to cash flow hedges terminated before their maturity date. Hedged items in cash flow hedges 2025 2024 SEK m Change in value used to calculate ineffectiveness Hedge reserve Amounts remaining in the hedge reserve from hedging relationships for which hedge accounting is no longer applied Change in value used to calculate ineffectiveness Hedge reserve Amounts remaining in the hedge reserve from hedging relationships for which hedge accounting is no longer applied Interest rate risk Issued variable-interest securities 403 1,235 689 1,641 Variable-interest loans to the public 44 194 204 −97 329 297 Foreign exchange risk Issued securities and subordinated liabilities in EUR and internal loans in NOK −145 −273 301 −395 Issued securities and subordinated liabilities in USD and internal loans in EUR, GBP and NOK 437 18 31 −182 488 58 Securities issued in AUD 43 36 0 −2 −2 Securities issued and internal loans in other currencies −24 48 Total 782 1,210 235 687 2,109 353 P23 cont. 308 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P24 Offsetting of financial instruments Assets 2025 2024 SEK m Derivatives Reverse repurchase agreements Securities borrowing Total Derivatives Reverse repurchase agreements Securities borrowing Total Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements Gross amount 58,518 32,965 1,014 92,497 96,830 34,377 513 131,720 Amounts offset −32,615 −795 −33,410 −44,144 −3,735 −47,879 Carrying amount on the balance sheet 25,903 32,170 1,014 59,087 52,686 30,642 513 83,841 Related amounts not offset on the balance sheet Financial instruments, netting arrangements −7,366 −7,366 −4,787 −4,787 Financial assets received as collateral −12,355 −32,170 −1,014 −45,539 −37,378 −30,599 −513 −68,490 Total amounts not offset on the balance sheet −19,721 −32,170 −1,014 −52,905 −42,165 −30,599 −513 −73,277 Net amount 6,182 0 6,182 10,521 43 10,564 Liabilities 2025 2024 SEK m Derivatives Repurchase agreements Securities lending Total Derivatives Repurchase agreements Securities lending Total Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements Gross amount 60,539 795 61,334 64,643 3,736 68,379 Amounts offset −22,999 −795 −23,794 −34,331 −3,735 −38,066 Carrying amount on the balance sheet 37,540 37,540 30,312 1 30,313 Related amounts not offset on the balance sheet Financial instruments, netting arrangements −7,789 −7,789 −4,787 −4,787 Financial assets pledged as collateral −11,578 −11,578 −3,554 −1 −3,555 Total amounts not offset on the balance sheet −19,367 −19,367 −8,341 −1 −8,342 Net amount 18,173 18,173 21,971 21,971 Derivative instruments are offset on the balance sheet when doing so reflects the Bank’s expected cash flows upon the settlement of two or more derivatives. This occurs when the Bank has both a contractual right and the intention to settle the agreed cash flows at a net amount. The remaining counterparty risk in derivatives is reduced through netting agreements, i.e., netting positive values against negative values in all derivative transactions with the same counterparty in a bankruptcy situation. Handels banken’s policy is to sign netting agreements with all bank counterparties. Netting agreements are supplemented with agreements for issuing collateral for the net exposure. The collateral used is mainly cash, but government securities are also used. Collateral for repurchase agreements and borrowing and lending of securities is normally in the form of cash or other securities. The amount offset for derivative assets includes offset cash collateral of SEK 9,987 million (11,617) derived from the balance sheet item Deposits and borrowing from the public. The amount offset for derivative liabilities includes offset cash collateral of SEK 371 million (1,804), derived from the balance sheet item Loans to the public. 309Handelsbanken Annual Report 2025 3.2
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P25 Intangible assets 2025 SEK m Internally developed software¹ Other Total Cost, opening balance 5,538 210 5,748 Acquisitions 373 373 Disposals and retirements −345 −164 −509 Foreign exchange effects −39 −39 Cost, closing balance 5,527 46 5,573 Accumulated amortisation and impairment, opening balance −2,554 −171 −2,725 Disposals and retirements 345 164 509 Amortisation −559 −9 −568 Impairment Foreign exchange effects 5 −2 3 Accumulated amortisation and impairment, closing balance −2,763 −18 −2,781 Carrying amount 2,764 28 2,792 2024 SEK m Internally developed software¹ Other Total Cost, opening balance 5,478 164 5,643 Acquisitions 413 45 458 Disposals and retirements −345 −345 Foreign exchange effects −7 0 −7 Cost, closing balance 5,538 210 5,749 Accumulated amortisation and impairment, opening balance −2,300 −131 −2,433 Disposals and retirements 345 345 Amortisation −597 −40 −637 Impairment 0 0 Foreign exchange effects −2 0 −2 Accumulated amortisation and impairment, closing balance −2,554 −171 −2,726 Carrying amount 2,984 39 3,023 1) For internally developed new software or for developing existing software for new business activities, costs incurred that can be reliably calculated are capitalised from the date on which it is probable that economic benefits will flow. In other cases, development expenses are expensed as they arise. During the year, development expenses amounting to SEK 2,139 million (2,553) were expensed and are included in the income statement item Other expenses. The parent company’s intangible assets for which it is possible to establish an estimated useful life are amortised. The amortisation is on a straight-line basis over the useful life of the asset. Currently this means that internally developed software is normally amortised over five years. In certain infrastructure projects, the useful life is assessed to be more than five years. For these types of investment, the amortisation period is up to 15 years. The amortisation period is tested on an individual basis at the time of new acquisition and also continually if there are indications that the useful life may have changed. Intangible assets with a finite useful life are reviewed for impairment when there is an indication that the asset may be impaired. The impairment test is performed according to the same principles as for intangible assets with an indefinite useful life, i.e., by calculating the recoverable amount of the asset. The parent company does not currently have any intangible assets with an indefinite useful life. P26 Tangible assets SEK m 2025 2024 Property 29 30 Equipment 549 616 Lease assets 4,987 5,227 Property repossessed for protection of claims 2 2 Total 5,567 5,875 310 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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2025 SEK m Property Equipment Lease assets Total Cost, opening balance 63 1,431 8,675 10,169 Acquisitions 1 233 2,071 2,305 Impairment Disposals and retirements −4 −207 −2,347 −2,558 Foreign exchange effects −25 −84 −109 Cost, closing balance 60 1,432 8,315 9,807 Accumulated depreciation and impairment, opening balance −33 −815 −3,448 −4,296 Depreciation −2 −290 −1,295 −1,586 Impairment 5 5 Disposals and retirements 4 205 1,372 1,581 Foreign exchange effects 17 38 54 Accumulated depreciation and impairment, closing balance −31 −883 −3,328 −4,242 Property repossessed for protection of claims 2 Carrying amount 29 549 4,987 5,567 2024 SEK m Property Equipment Lease assets Total Cost, opening balance 57 1,383 10,055 11,495 Acquisitions 6 371 1,864 2,241 Impairment Disposals and retirements −328 −3,206 −3,534 Foreign exchange effects 5 −38 −33 Cost, closing balance 63 1,431 8,675 10,169 Accumulated depreciation and impairment, opening balance −31 −839 −3,954 −4,824 Depreciation −2 −288 −1,332 −1,622 Impairment 11 11 Disposals and retirements 315 1,807 2,122 Foreign exchange effects −3 20 17 Accumulated depreciation and impairment, closing balance −33 −815 −3,448 −4,296 Property repossessed for protection of claims 2 Carrying amount 30 616 5,227 5,875 Distribution of future lease payments by maturity SEK m Within 1 yr Between 1 and 5 yrs Over 5 yrs Total 2025 Distribution of future lease payments 1,206 3,723 335 5,264 2024 Distribution of future lease payments 1,222 4,015 467 5,704 Lease assets mainly consist of vehicles and machines. Lease assets are depreciated during the term of the lease agreement according to the annuity method. Lease payments recognised as income during the financial year amount to SEK 230 million (317), of which the variable part of the lease income is SEK 217 million (302). The parent company’s tangible assets consist of property (owner-occupied properties), equipment and lease assets. These assets are recorded at cost of acquisition less accumulated depreciation and impairment losses. Depreciation is based on the estimated useful lives of the assets. A linear depreciation plan is applied for property and equipment. No material changes were made to the useful lives in 2025. The estimated useful lives are reviewed annually. The useful life of equipment is deemed to be 2–10 years. Separate depreciation plans are applied to the different sub-components of properties. The useful life for the buildings structure is deemed to be 100 years and the remaining sub-components are deemed to have useful lives of between 10 and 35 years. The parent company recognises finance leases as operating leases. Lease assets that primarily comprise vehicles and machinery are depreciated during the term of the lease agreement according to the annuity method. Impairment testing of tangible assets is carried out when there is an indication that the value of the asset may have decreased. There was no indication on the balance sheet date that tangible assets required impairment. P26 cont. 311Handelsbanken Annual Report 2025 3.2
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P27 Other assets SEK m 2025 2024 Claims on investment banking settlements 3,626 3,059 Accounts receivable 1,715 4,233 Tax and VAT receivables 679 123 Other 8,536 10,683 Total 14,557 18,097 P28 Prepaid expenses and accrued income SEK m 2025 2024 Accrued income 602 608 Prepaid expenses 1,011 873 Total 1,612 1,481 P29 Due to credit institutions SEK m 2025 2024 Banks 62,443 76,501 Other credit institutions 62,831 92,894 Total 125,274 169,394 of which repurchase agreements 0 of which cash collateral received 12,446 32,374 Average volumes SEK m 2025 2024 Due to credit institutions 213,973 223,746 312 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P30 Deposits and borrowing from the public SEK m 2025 2024 Households 452,162 424,978 Corporates 420,773 433,473 National Debt Office 1 1 Total deposits 872,936 858,451 Households 108,667 115,210 Corporates 64,128 76,367 National Debt Office 263 Total borrowing 173,058 191,577 Total deposits and borrowing from the public 1,045,994 1,050,028 of which repurchase agreements 0 1 of which cash collateral received 2,112 3,708 Average volumes SEK m 2025 2024 Deposits and borrowing from the public 1,194,959 1,262,863 313Handelsbanken Annual Report 2025 3.2
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P31 Issued securities 2025 2024 SEK m Carrying amount Nominal amount Carrying amount Nominal amount¹ Certificates of deposit (CD) 157,690 157,146 243,746 241,284 Commercial paper (CP) 341,827 345,070 347,394 351,790 Other certificates 659 607 614 582 Senior bonds 163,657 162,910 173,226 173,242 Senior non-preferred bonds 85,944 87,500 75,887 78,229 Total 749,777 753,233 840,866 845,127 1) The nominal amounts for 2024 have been updated in connection with the changes to the presentation of this note. Change in issued securities, etc. SEK m 2025 2024 Opening balance 840,866 806,167 Issued 787,862 873,882 Repurchased −895 −4,101 Matured −812,025 −881,213 Foreign exchange effects −72,077 35,530 Other 6,045 10,601 Closing balance 749,777 840,866 Average volumes SEK m 2025 2024 Issued securities, etc. 800,010 869,775 P32 Short positions SEK m 2025 2024 Equities 851 621 Interest-bearing securities 1,312 386 Total 2,163 1,007 Average volumes SEK m 2025 2024 Short positions 15,215 15,653 314 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P33 Taxes Tax expenses recognised in the income statement SEK m 2025 2024 Current tax −4,818 −4,961 Deferred tax 287 −158 Adjustment of tax relating to prior years 205 −12 Total −4,326 −5,131 Tax expenses recognised in the income statement SEK m 2025 2024 Profit before tax 25,965 32,789 Tax on profit before tax at Swedish tax rate −5,349 −6,755 Recognised tax −4,326 −5,131 Difference 1,023 1,624 The difference is explained by the following items Non-taxable income/non-deductible expenses −22 −36 Non-deductible expense on subordinated liabilities −424 −515 Non-taxable capital gains and dividends 1,539 2,584 Impairment of shares in subsidiaries −283 −446 Tax prior years 205 −12 Other 8 49 Total 1,023 1,624 Deferred tax assets 2025 2024 SEK m Pensions Foreign tax¹ Other Offsetting Total Pensions Foreign tax¹ Other Offsetting Total Opening balance 404 121 62 −428 159 291 300 122 −339 374 Recognised in income statement 43 232 −44 231 113 −179 −60 −126 Recognised in other comprehensive income 0 0 Offsetting 168 168 −89 −89 Closing balance 447 353 18 −260 558 404 121 62 −428 159 1) Foreign tax to be deducted in the future. Deferred tax liabilities 2025 2024 SEK m Tangible assets Hedging instru- ments Other Offsetting Total Tangible assets Hedging instru- ments Other Offsetting Total Opening balance 10 434 38 −428 54 9 593 73 −339 336 Recognised in income statement 1 −38 −37 1 −35 −35 Recognised in other comprehensive income −185 −185 0 −159 −159 Offsetting 168 168 −89 −89 Closing balance 11 249 0 −260 0 10 434 38 −428 54 Unrecognised deferred tax assets and deficits Deferred tax assets on loss carry forwards and other future deductible temporary differences are recognised only if it is probable that they can be utilised in the foreseeable future. Tax on loss carryforwards in international branches has a limited lifetime of five years and amounted to SEK 111 million. The loss carryfoward has no value because the loss carryfoward was also taxed in the country of the head office. 315Handelsbanken Annual Report 2025 3.2
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P34 Provisions SEK m 2025 2024 Expected credit losses 67 127 Other 475 296 Total 543 423 Change in provisions 2025 2024 SEK m Expected credit losses¹ Other² Total Expected credit losses¹ Other² Total Opening balance 127 296 423 292 332 624 Provisions during the year 299 299 154 154 Utilised during the year −105 −105 −161 −161 Reversal of unutilised reserves −14 −14 −29 −29 Change in expected credit losses, net −60 −60 −165 −165 Closing balance 67 475 543 127 296 423 1) This item refers to provisions for credit losses on off-balance sheet items, for more information, see notes P11 and P43. 2) The amounts allocated for future settlement of the claims on the Bank are presented under Other. This item also includes the provision for Oktogonen and variable remuneration that was reclassified from accrued expenses in 2025. Last year’s figures were not restated since the amount is immaterial. P35 Other liabilities SEK m 2025 2024 Liabilities from unsettled trades 3,303 2,847 Accounts payable 402 402 Tax and VAT liabilities 1,280 2,252 Other 1,839 5,291 Total 6,824 10,792 316 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P36 Accrued expenses and deferred income SEK m 2025 2024 Accrued expenses 1,138 1,477 Deferred income 373 593 Total 1,511 2,070 P37 Subordinated liabilities SEK m 2025 2024 Fixed term 25,394 27,241 Perpetual 8,667 9,813 Total 34,062 37,054 Change in subordinated liabilities SEK m 2025 2024 Opening balance 37,054 43,117 Issued 5,673 Matured −13,369 Foreign exchange effects −3,631 1,814 Other 638 −181 Closing balance 34,062 37,054 Average volumes SEK m 2025 2024 Subordinated liabilities 36,197 35,603 Specification of subordinated liabilities Year of issuance Maturity Original maturity date First possible redemption date Currency Original nominal amount in each currency Convertible/ Non-convertible Interest rate, % Outstanding amount, SEK m 2020 Perpetual¹ ² 1 Mar 2027 USD 500 Convertible⁴ 4,375 4,577 2020 Perpetual¹ ² 1 Mar 2031 USD 500 Convertible⁴ 4,750 4,090 2022 Fixed term³ 1 Jun 2033 1 Jun 2028 EUR 500 Non-convertible 3,250 5,435 2022 Fixed term³ 23 Aug 2032 23 Aug 2027 GBP 500 Non-convertible 4,625 6,199 2023 Fixed term³ 16 Aug 2034 16 Aug 2029 EUR 750 Non-convertible 5,000 8,431 2024 Fixed term³ 4 Nov 2036 4 Nov 2031 EUR 500 Non-convertible 3,625 5,329 Total 34,062 1) Subordinated to all instruments except for equities, the immediately senior is fixed-term subordinated liabilities. 2) Can be redeemed on each subsequent rate fixing date after the initial redemption date. 3) Subordinated to all senior debt. 4) The liabilities are converted to ordinary shares in Svenska Handels banken AB if Svenska Handels banken AB’s common equity tier 1 ratio falls below 5.125% or if the consolidated situation’s common equity tier 1 ratio falls below 8.0%. 317Handelsbanken Annual Report 2025 3.2
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P38 Untaxed reserves SEK m 2025 2024 Accumulated accelerated depreciation, machinery, equipment and lease assets 365 531 Total 365 531 P39 Specification of changes in equity Change in hedge reserve SEK m 2025 2024 Opening balance 1,675 2,284 Effective part of change in fair value Interest rate risk −447 −592 Foreign exchange risk −335 −96 Reclassified to the income statement¹ −118 −79 Tax 185 158 Closing balance 961 1,675 Change in fair value reserve SEK m 2025 2024 Opening balance 361 197 Unrealised value change – equity instruments −4 159 Realised value change – equity instruments 10 3 Unrealised value change – debt instruments −10 5 Change in provision for expected credit losses – debt instruments −1 0 Reclassified to retained earnings – equity instruments² −10 −3 Reclassified to the income statement – debt instruments³ 0 Closing balance 346 361 Change in translation reserve, foreign operations SEK m 2025 2024 Opening balance 473 761 Change in translation difference −1,644 282 Reclassified to the income statement⁴ 2 0 Reclassified to retained earnings⁵ −570 Closing balance −1,170 473 1) Tax reclassified to the income statement pertaining to this item amounted to SEK 24 million (16). 2) Tax reclassified to retained earnings pertaining to this item amounted to SEK – million (–). 3) Tax reclassified to the income statement pertaining to this item amounted to SEK – million (0). 4) Tax reclassified to the income statement pertaining to this item amounted to SEK 0 million (0). 5) Tax reclassified to retained earnings pertaining to this item amounted to SEK – million (8). 318 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P40 Classification of financial assets and liabilities 2025 Fair value through profit or loss SEK m Note Mandatory Fair value option Derivatives identified as hedging instruments Fair value through other comprehensive income Amortised cost Total carrying amount Fair value Assets Cash and balances with central banks 312,066 312,066 312,066 Interest-bearing securities eligible as collateral with central banks P15 16,461 171,810 188,272 188,272 Loans to credit institutions P16 18,149 961,636 979,785 979,784 Loans to the public P17 495,790 495,790 491,645 Value change of interest-hedged item in portfolio hedge −5,510 −5,510 Bonds and other interest-bearing securities P18 16,966 30,458 9,056 56,480 56,480 Shares P19 10,436 686 11,122 11,122 Assets where the customer bears the value change risk 2,316 2,316 2,316 Derivative instruments P22 16,952 8,952 25,903 25,903 Other financial assets P27 14 14,543 14,557 14,557 Total financial assets 81,294 202,268 8,952 9,743 1,778,525 2,080,782 2,082,146 Shares in subsidiaries and investments in associates and joint ventures P20, P21 65,545 Non-financial assets 10,529 Total assets 2,156,856 Liabilities Due to credit institutions P29 125,274 125,274 122,158 Deposits and borrowing from the public P30 1,045,994 1,045,994 1,045,743 Liabilities where the customer bears the value change risk 2,316 2,316 2,316 Issued securities P31 659 749,118 749,777 752,223 Derivative instruments P22 32,995 4,546 37,541 37,540 Short positions P32 2,163 2,163 2,163 Other financial liabilities P35 15 6,809 6,824 6,824 Subordinated liabilities P37 34,062 34,062 35,173 Total financial liabilities 35,832 2,316 4,546 1,961,256 2,003,950 2,004,140 Non-financial liabilities 2,775 Total liabilities 2,006,724 319Handelsbanken Annual Report 2025 3.2
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2024 Fair value through profit or loss SEK m Note Mandatory Fair value option Derivatives identified as hedging instruments Fair value through other comprehensive income Amortised cost Total carrying amount Fair value Assets Cash and balances with central banks 404,237 404,237 404,237 Interest-bearing securities eligible as collateral with central banks P15 4,862 167,745 172,606 172,606 Loans to credit institutions P16 18,045 978,872 996,917 996,629 Loans to the public P17 524,171 524,171 520,796 Value change of interest-hedged item in portfolio hedge −6,399 −6,399 Bonds and other interest-bearing securities P18 16,389 23,920 13,259 53,569 53,569 Shares P19 8,258 694 8,952 8,952 Assets where the customer bears the value change risk 2,087 2,087 2,087 Derivative instruments P22 34,946 17,740 52,686 52,686 Other financial assets P27 13 18,084 18,097 18,097 Total financial assets 84,599 191,665 17,740 13,954 1,918,965 2,226,924 2,229,660 Shares in subsidiaries and investments in associates and joint ventures P20, P21 67,591 Non-financial assets 10,539 Total assets 2,305,053 Liabilities Due to credit institutions P29 169,394 169,394 169,459 Deposits and borrowing from the public P30 1,050,029 1,050,028 1,049,999 Liabilities where the customer bears the value change risk 2,087 2,087 2,087 Issued securities P31 614 840,253 840,866 841,682 Derivative instruments P22 29,088 1,225 30,312 30,312 Short positions P32 1,007 1,007 1,007 Other financial liabilities P35 12 10,780 10,792 10,790 Subordinated liabilities P37 37,054 37,054 38,263 Total financial liabilities 30,721 2,087 1,225 2,107,510 2,141,540 2,143,599 Non-financial liabilities 2,792 Total liabilities 2,144,332 P40 cont. 320 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P41 Fair value measurement of financial instruments Financial instruments at fair value 2025 2024 SEK m Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Interest-bearing securities eligible as collateral with central banks Fair value through profit or loss, mandatory 16,396 66 16,461 4,778 84 4,862 Fair value through profit or loss, fair value option 171,810 171,810 167,745 167,745 Fair value through other comprehensive income Loans to credit institutions 18,149 18,149 18,045 18,045 Bonds and other interest-bearing securities Fair value through profit or loss, mandatory 16,711 254 16,966 15,671 719 16,389 Fair value through profit or loss, fair value option 30,458 30,458 23,920 23,920 Fair value through other comprehensive income 8,020 1,036 9,056 11,752 1,507 13,259 Shares Fair value through profit or loss, mandatory 9,491 945 10,436 7,671 586 8,258 Fair value through other comprehensive income 489 47 150 686 439 94 161 694 Assets where the customer bears the value change risk 2,315 2 2,316 2,069 17 2,087 Derivative instruments 96 25,807 25,903 52 52,634 52,686 Total 255,786 46,304 152 302,242 234,097 73,669 179 307,945 Liabilities Liabilities where the customer bears the value change risk 2,315 2 2,316 2,069 17 2,087 Issued securities 659 659 614 614 Derivative instruments 89 37,452 37,541 39 30,272 360,312 Short positions 2,161 1 2,163 992 15 1,007 Total 4,565 38,113 2 42,679 3,101 30,901 17 34,020 The principles applied are described in note G44. Change in holdings in financial instruments in level 3 2025 2024 SEK m Shares Derivative assets Derivative liabilities Assets where the customer bears the value change risk Liabilities where the customer bears the value change risk Shares Derivative assets Derivative liabilities Assets where the customer bears the value change risk Liabilities where the customer bears the value change risk Opening balance 161 17 −17 156 2 −2 77 −77 Acquisitions Repurchases/sales −7 −9 9 −5 Matured Unrealised value change in income statement −4 −6 6 −3 −2 2 −60 60 Unrealised value change in other comprehensive income 13 Transfer from level 1 or 2 Transfer to level 1 or 2 Closing balance 150 2 −2 161 17 −17 A change in unobservable inputs is not deemed to result in any significantly higher or lower measurement of the level 3 holdings, which is the reason that a sensitivity analysis is not provided. 321Handelsbanken Annual Report 2025 3.2
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Fair value of financial instruments at amortised cost 2025 2024 SEK m Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash and balances with central banks 312,066 312,066 404,237 404,237 Loans to credit institutions 28,518 932,833 285 961,636 16,802 961,420 362 978,584 Loans to the public 41,057 30,689 419,899 491,645 27,977 1,137 491,681 520,795 Total 381,641 963,522 420,184 1,765,347 449,016 962,557 492,043 1,903,616 Liabilities Due to credit institutions 18,491 103,667 122,157 39,763 129,695 169,458 Deposits and borrowing from the public 1,030,407 15,336 1,045,743 1,042,371 7,628 1,049,999 Issued securities 748,010 3,554 751,564 243,710 597,359 841,069 Subordinated liabilities 35,173 35,173 38,263 38,263 Total 1,796,908 157,730 1,954,637 1,325,844 772,945 2,098,789 P41 cont. 322 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P42 Pledged assets, collateral received and transferred financial assets Assets pledged for own debt SEK m 2025 2024 Cash and cash equivalents 13,350 6,961 Interest-bearing securities, repurchase agreements 1,269 1,077 Interest-bearing securities, other 3,383 1,325 Shares, securities lending 195 129 Encumbered assets on behalf of policyholders 2 17 Other 878 779 Total 19,077 10,287 of which pledged assets that may be freely withdrawn by the Bank 10 15 Other pledged assets SEK m 2025 2024 Cash and cash equivalents 62 256 Interest-bearing securities 85,719 87,535 Shares, securities lending 5,589 2,546 Shares, other 713 Other 575 508 Total 92,657 90,845 of which pledged assets that may be freely withdrawn by the Bank 75,533 77,724 Other pledged assets refers to collateral pledged for obligations not reported on the balance sheet. Collateral received SEK m 2025 2024 Reverse repurchase agreements 34,692 41,134 of which sold or re-encumbered 436 6,500 Securities borrowing 8,789 4,503 of which sold or re-encumbered 5,075 2,750 Total 43,480 45,637 Transferred financial assets reported on the balance sheet 2025 2024 SEK m Carrying amount Carrying amount attributable to liability Carrying amount Carrying amount attributable to liability Shares, securities lending¹ 5,784 106 2,674 106 Interest-bearing securities, repurchase agreements 787 0 1,077 0 Interest-bearing securities, other 483 Other 2 2 17 17 Total 7,055 108 3,768 123 1) Carrying amount attributable to liability related to securities lending refers to cash collateral received. 323Handelsbanken Annual Report 2025 3.2
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P43 Contingent liabilities SEK m 2025 2024 Contingent liabilities Guarantees, credits 13,060 15,898 Guarantees, other 41,585 51,333 Irrevocable letters of credit 118 665 Other 455 Total 54,764 68,351 of which subject to impairment testing 54,764 68,352 Obligations Loan commitments 291,540 291,399 Unutilised part of granted overdraft facilities 97,742 97,846 Other¹ 282,025 290,587 Total 671,307 679,832 of which subject to impairment testing 507,350 511,478 Total contingent liabilities 726,071 748,183 Provision for expected credit losses reported as provisions, see note P34. 67 127 1) “Other” includes internal liquidity guarantees to subsidiaries amounting to SEK 274,008 million (282,918). Contingent liabilities Contingent liabilities mainly consist of various types of guarantees. Credit guarantees are provided to customers in order to guarantee commitments in other credit and pension institutions. Other guarantees are mainly commercial guarantees such as bid bonds, guarantees relating to advance payments, guarantees during a warranty period and export-related guarantees. Contingent liabilities also comprise unutilised irrevocable import letters of credit and confirmed export letters of credit. These transactions are included in the Bank’s services and are provided to support the Bank’s customers. The nominal amounts of the guarantees are shown in the table. Claims The Bank has a portfolio of CHF denominated mortgages to borrowers in Poland, which amounted to approximately SEK 52 million at year-end. There is uncertainty in Polish law regarding the application of various credit terms and conditions involving foreign currency. The aforementioned legal developments may mean that certain contractual terms and conditions in the Bank’s lending to borrowers in Poland cannot be applied and that compensation may have to be paid to certain customers. A provision of SEK 144 million for estimated compensation to borrowers attributable to disputes was recognised as per 31 December 2025, which is included in the item Other in Note P34. Furthermore, it is not currently practically feasible to estimate the potential additional financial impact on the Bank or the likelihood of various outcomes and no disclosure on contingent liabilities is therefore submitted. The assessment is that the other actions will essentially be settled in the Group’s favour. The assessment is that the amounts in dispute would have no material impact on the Group’s financial position or profit/loss, and no disclosure on contingent liabilities is therefore submitted. P44 Net pensions SEK m 2025 2024 Fair value of plan assets 35,245 34,475 Pension obligations 29,624 30,028 Net pensions¹ 5,621 4,447 1) When Net pensions is negative, the deficit is not recognised as a liability on the balance sheet, because the surplus in Pensionskassan SHB, Tjänstepensionsförening can be used to cover the parent company’s pension obligations, and because part of the commitment is conditional. The pension obligations are SEK 7,223 million (7,494) in the Bank’s pension fund (Pensionskassan SHB, Tjänstepensionsförening) and the market value of the assets is SEK 16,984 million (16,718). The surplus value in Pensionskassan SHB, Tjänstepensionsförening is thus SEK 9,761 million (9,224). Plan assets are held by Svenska Handels bankens Pensionsstiftelse and similar legal entities regarding foreign commitments. Pension obligations are calculated in accordance with the Swedish Financial Supervisory Authority’s regulations, which for the Swedish obligations means in accordance with the Act on Safeguarding Pension Obligations and for foreign pension obligations in accordance with their corresponding local regulation. SEK 5,816 million (6,666) of the fair value of the plan assets in Svenska Handels bankens Pensionsstiftelse consists of the provisions made in the years 1989–2004 to a special supplementary pension (SKP). The obligations include a commitment regarding SKP of the same amount as the fair value of the plan assets. A part of this commitment, SEK 4,502 million (5,150), is conditional. 324 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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Pension costs SEK m 2025 2024 Pensions paid −1,823 −1,813 Pension premiums −689 −840 Social security costs −369 −376 Compensation from pension foundation 757 762 Total −2,124 −2,267 The expected pensions to be paid next year for defined benefit pension plans amount to SEK 976 million. The costs for pension premiums include premiums to the BTPK plan (defined contribution pension) of SEK 140 million (141). Plan assets SEK m 2025 2024 Opening balance 34,475 33,580 Return 1,526 1,657 Compensation from pension foundation −757 −762 Closing balance 35,245 34,475 Percentage return on plan assets 4% 5% Pension obligations SEK m 2025 2024 Opening balance 30,028 29,377 Technical fee 790 784 Interest 658 649 Indexation¹ 343 1,293 Early retirement 135 32 Pensions paid −1,856 −1,778 Changed assumptions² −222 −97 Value change conditional obligation 353 432 Other change in capital value −607 −664 Closing balance 29,624 30,028 1) The effect of the hedging of pensions has declined since the indexing was reduced from 6.48% as at 1 January 2024 to 1.6% as at 1 January 2025. 2) The change in assumptions mainly comprised foreign exchange effects. Allocation of plan assets SEK m 2025 2024 Shares and mutual fund units¹ 33,145 32,937 Interest-bearing securities 1,783 1,409 Other plan assets² 315 129 Total 35,245 34,475 1) The mutual fund units are mainly invested in fixed-income funds and amount to SEK 20,487 million (20,898). 2) Other plan assets include both cash and cash equivalents and a liability for compensation that had yet to be disbursed by the pension foundation. The parent company’s defined benefit pension plans are being discontinued. All defined benefit pension plans are closed to new employees. All new employees of the Group are covered by defined contribution pension plans since 2020, which was when the defined benefit pension plan in Sweden was closed to new employees. Persons employed before 1 March 2020 in Sweden remain covered by the defined benefit pension plan included in the pension agreement between the Employers’ Association of the Swedish Banking Institutions (BAO) and Finansförbundet/Swedish Confederation of Professional Associations (Saco). From the age of 65, a retirement pension is paid in an amount of 10% of the annual salary up to 7.5 income base amounts. On the part of the salary in the interval between 7.5 and 20 income base amounts, the retirement pension is 65%, and in the interval between 20 and 30 income base amounts, it is 32.5% of the annual salary. No retirement pension is paid on the portion of the salary in excess of 30 income base amounts. With respect to Swedish pension obligations, the value of the pension obligations is calculated on the balance sheet date in accordance with the actuarial grounds stipulated in the Act on Safeguarding Pension Obligations. In Sweden, the most important calculation assumptions are mortality and the discount rate. The discount rate is 1.8% (1.8) after deductions for tax and overhead costs. Foreign pension obligations are calculated in accordance with local accounting requirements. P44 cont. 325Handelsbanken Annual Report 2025 3.2
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P45 Assets and liabilities by material currency 2025 SEK m SEK EUR NOK GBP USD Other currencies Total Assets Cash and balances with central banks 31,171 163,466 4,336 0 113,093 0 312,066 Interest-bearing securities eligible as collateral with central banks 169,300 9,217 66 9,689 188,272 Loans to credit institutions 804,095 23,849 100,554 49,759 1,459 69 979,785 Loans to the public 151,158 172,599 160,516 4,415 4,308 2,793 495,790 of which corporates 120,056 110,890 135,415 4,414 4,183 1,994 376,953 of which households 17,679 61,709 25,100 1 125 800 105,414 Bonds and other interest-bearing securities 47,689 1,016 7,775 0 56,480 Other items not broken down by currency 124,463 124,463 Total assets 1,327,877 370,147 273,247 54,174 128,548 2,862 2,156,856 Liabilities and equity Due to credit institutions 23,191 33,505 26,841 36,425 4,462 850 125,274 Deposits and borrowing from the public 841,865 72,425 103,629 2,794 21,817 3,463 1,045,994 of which corporates 344,187 59,312 56,601 2,283 20,007 2,775 485,165 of which households 497,678 13,113 47,028 511 1,810 689 560,829 Issued securities 4,022 328,664 46 4,881 387,200 24,963 749,777 Subordinated liabilities 19,195 6,199 8,667 34,062 Other items not broken down by currency, incl. equity 201,749 201,749 Total liabilities and equity 1,070,828 453,789 130,516 50,300 422,147 29,277 2,156,856 Other assets and liabilities broken down by currency, net 83,609 −142,696 −3,821 293,584 26,506 Net foreign currency position −33 35 53 −14 92 134 Note G2 describes the Bank’s view of foreign exchange risk. 2024 SEK m SEK EUR NOK GBP USD Other currencies Total Assets Cash and balances with central banks 63,478 203,777 4,160 0 132,799 23 404,238 Interest-bearing securities eligible as collateral with central banks 152,122 8,971 74 11,440 172,606 Loans to credit institutions 767,895 54,290 103,585 67,840 3,090 218 996,917 Loans to the public 147,696 184,436 178,195 4,556 6,889 2,399 524,171 of which corporates 127,518 121,090 149,366 4,555 6,730 1,498 410,757 of which households 18,631 63,346 28,829 1 160 901 111,867 Bonds and other interest-bearing securities 40,114 555 12,900 0 53,569 Other items not broken down by currency 153,552 153,552 Total assets 1,324,855 452,029 298,915 72,396 154,218 2,640 2,305,053 Liabilities and equity Due to credit institutions 31,862 54,230 36,262 41,027 5,331 682 169,394 Deposits and borrowing from the public 825,810 97,993 103,480 2,829 16,438 3,478 1,050,028 of which corporates 348,126 84,749 57,649 2,263 14,282 2,771 509,840 of which households 477,684 13,244 45,831 566 2,156 707 540,188 Issued securities 3,487 353,013 47 5,637 456,621 22,062 840,866 Subordinated liabilities 20,519 6,722 9,814 37,054 Other items not broken down by currency, incl. equity 207,710 207,710 Total liabilities and equity 1,068,869 525,754 139,789 56,215 488,204 26,222 2,305,053 Other assets and liabilities broken down by currency, net 73,752 −159,117 −16,205 334,007 23,582 Net foreign currency position 27 8 −23 21 1 33 326 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P46 Related-party disclosures Subsidiaries Associates and joint ventures Other related parties SEK m 2025 2024 2025 2024 2025 2024 Assets Loans to credit institutions 935,653 965,998 Loans to the public 485 434 1,832 1,920 Derivatives 4,151 5,617 Other assets 8,228 9,020 19 23 821 798 Total 948,032 980,635 504 457 2,653 2,718 Liabilities Due to credit institutions 60,468 84,975 Deposits and borrowing from the public 18,713 18,726 973 919 2,110 1,544 Derivatives 11,329 14,356 Other liabilities 95 98 Total 90,605 118,155 973 919 2,110 1,544 Contingent liabilities 284,179 295,867 7,320 7,601 Derivatives, nominal amounts 468,008 461,984 Income and expenses Interest income 26,397 34,559 21 19 71 101 Interest expenses −3,387 −4,842 −1 −10 −172 −193 Fee and commission income 1 21 17 Fee and commission expenses −216 −202 Other income 3,673 19 19 Other expenses −326 −410 −216 −205 818 790 Total 22,684 32,980 −412 −397 757 734 Notes P20 and P21 contain a specification of subsidiaries, associates and joint ventures. The operations of associates and joint ventures comprise various types of services related to the financial markets. Disclosures concerning shareholders’ contributions to Group and associates are provided in notes P20 and P21. The following companies comprise the group of other related parties: Svenska Handels bankens Pensionsstiftelse (pension foundation), Svenska Handels bankens Personalstiftelse (staff foundation) and Pensionskassan SHB, Tjänstepensionsförening (pension fund). These companies use Svenska Handels banken AB for normal banking and accounting services. It also includes companies controlled by executive officers of Handels banken or by close relatives of these persons. The pension fund’s commitments to the employees of subsidiaries are guaranteed by the parent company, so if the pension fund cannot pay its commitments, the parent company is liable to take over and pay the commitment. The pension fund’s obligations amounted to SEK 7,223 million (7,494). Svenska Handels banken AB has requested compensation from Svenska Handels - bankens Pensionsstiftelse amounting to SEK 757 million (762) regarding pension costs and from Svenska Handels bankens Personalstiftelse amounting to SEK 61 million (28) for measures to benefit the employees. As per the balance sheet date, the parent company has issued guarantees, mainly guarantees for advance payments, amounting to SEK 97 million (107) to companies controlled by executive officers or close relatives of these persons. Information regarding loans to executive officers of Handels banken, and conditions and other remuneration to executive officers is given in note G8. 327Handelsbanken Annual Report 2025 3.2
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P48 Share information Share class 31 December 2025 Number % of capital % of votes Share capital Quota value Class A 1,944,777,165 98.22 99.82 3,014,404,606 1.55 Class B 35,251,329 1.78 0.18 54,639,560 1.55 1,980,028,494 100.00 100.00 3,069,044,166 P49 Events after the balance sheet date No significant events have occurred after the balance sheet date. P47 Proposed appropriation of profits The Board proposes a dividend of SEK 17.50 per share, of which SEK 8.00 in ordinary dividend (SEK 15 of which 7.50 in ordinary dividend for 2024). The Board’s proposed appropriation of profits is shown on page 40. 328 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P50 Disclosures regarding assets and liabilities held for sale, and discontinued operations The Finnish operations, consisting of the SME operations, were divested to Oma Sparbank Abp in the third quarter of 2024. The portion of Finnish operations that consisted of private customers, including asset management and investment services as well as life insurance operations, was then divested to S-banken Abp and the insurance company Fennia Liv in the fourth quarter of 2024 . The operations remaining in Finland after the divestments con - tinued to constitute assets and liabilities held for sale and discontinued operations in accor - dance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The follow - ing units in Finland are included in the disposal group and in the discontinued operations: Handels banken AB (publ) international branch in Finland and Handels banken Asuntoluotto - pankki, Stadshypotek AB (publ) international branch in Finland. A minor lending portfolio of card credits was divested in the first quarter of 2025. A sales process is ongoing for the divestment of the remaining business in Finland. The valuation of the disposal group at the lower of fair value after deductions for selling costs, and the carrying amount, led to an impairment loss during the fourth quarter 2024. A small proportion of this loss was reversed during the first quarter of 2025. All assets eligible for impairment in accordance with IFRS 5 are thereafter fully impaired. Assets and liabilities held for sale SEK m 2025 2024 Assets Cash and balances with central banks 1 14 Loans to other credit institutions 11 1 Loans to the public 30,812 44,267 of which households 372 792 of which corporates 30,440 43,475 Intangible assets 17 37 Property and equipment 1 6 Other 35 2,645 Total assets 30,877 46,969 Liabilities Due to credit institutions 247 Deposits and borrowing from the public 9,742 of which households 236 of which corporates 9,507 Provisions 189 182 Other 166 268 Total liabilities 355 10,440 The translation reserve includes an amount totalling an accumulated SEK 328 million (443) attributable to the translation of assets and liabilities held for sale, refer to Statement of changes in equity, Group. Measuring each disposal group at the lowest of fair value, less costs to sell, and carrying amount did not result in any impairment. 329Handelsbanken Annual Report 2025 3.2
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Discontinued operations Income, expenses and profit, discontinued operations Finland SEK m 2025 2024 Net interest income 1,145 3,169 Net fee and commission income 9 306 Net gains/losses on financial transactions −5 15 Other income 1 4 Total income 1,150 3,493 Staff costs −369 −779 Other expenses −284 −623 Depreciation, amortisation and impairment of tangible and intangible assets −22 −39 Total expenses −675 −1,440 Net credit losses −97 54 Gains/losses on disposal of tangible and intangible assets −1 −1 Regulatory fees −94 −102 Profit for the year for Finland, before tax 283 2,004 Taxes −46 −79 Profit for the year for Finland, after tax 237 1,925 Other expenses attributable to discontinued operations¹ −3 −11 Taxes 1 2 Profit for the year from discontinued operations, including additional costs after tax 235 1,916 Capital gain on sale of disposal groups constituting discontinued operations, before tax −131 Taxes 26 Capital gain after tax −105 Profit for the year from discontinued operations, after tax 235 1,811 Material internal transactions with continuing operations, which are eliminated in the income statement above²: Income −1 −12 Expenses −82 −117 1) Certain expenses arise in Sweden as a result of the divestment of the discontinued operations, deriving from requirements linked to the discontinuation of the operations. These include, for example, consultancy fees and legal costs. 2) Only external income and expenses are included in profit for the year both from continuing and from discontinued operations. The discontinued operations have material internal transactions with the continuing operations, which are thus eliminated in the accounting. Eliminating internal transactions attributable to the net interest income between the discontinued operations in Finland and Treasury have been adjusted and internal interest income and internal interest expenses are thus presented in continuing and discontinued operations. Cash flows, discontinued operations Finland SEK m 2025 2024 Cash flow from operating activities −132 −2,168 Cash flow from investing activities 119 2,172 Cash flow from discontinued operations −13 4 P50 cont. 330 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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P51 Capital adequacy EU KM1 – Key metrics template Key metrics 2025 2025 2024 Available own funds (amounts) 1 Common equity tier 1 capital 109,198 123,977 2 Tier 1 capital 118,346 134,928 3 Total capital 143,381 161,824 Risk-weighted exposure amounts 4 Total risk-weighted exposure amount 366,417 394,451 4a Total risk exposure pre-floor Capital ratios 5 Common Equity Tier 1 ratio (%) 29.8 31.4 5a Not applicable 5b Common Equity Tier 1 ratio considering unfloored TREA 6 Tier 1 ratio (%) 32.3 34.21 6a Not applicable 6b Tier 1 ratio considering unfloored TREA 7 Total capital ratio (%) 39.1 41.0 7a Not applicable 7b Total capital ratio considering unfloored TREA Additional own funds requirements to address risks other than the risk of excessive leverage EU 7d Additional own funds requirements to address risks other than the risk of excessive leverage 1.0 1.16 EU 7e of which: to be made up of CET1 capital 0.6 0.7 EU 7f of which: to be made up of Tier 1 capital 0.8 0.9 EU 7g Total SREP own funds requirements 9.0 9.2 Combined buffer requirement 8 Capital conservation buffer 2.5 2.5 EU 8a Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State 9 Institution-specific countercyclical capital buffer 2.0 2.0 EU 9a Systemic risk buffer 0.7 10 Global systemically important institution buffer EU 10a Other systemically important institution buffer 11 Combined buffer requirement (%) 5.2 4.5 EU 11a Overall capital requirements (%) 14.2 13.7 12 CET1 available after meeting the total SREP own funds requirements 24.7 26.2 Leverage ratio 13 Total exposure measure 1,407,255 1,544,065 14 Leverage ratio (%) 8.4 8.7 Additional own funds requirements to address the risk of excessive leverage EU 14a Additional own funds requirements to address the risk of excessive leverage EU 14b of which: to be made up of CET1 capital EU 14c Total SREP leverage ratio requirements 3.0 3.0 Leverage ratio buffer and overall leverage ratio requirement EU 14d Leverage ratio buffer requirement (%) EU 14e Overall leverage ratio requirement (%) 3.0 3.0 Liquidity coverage ratio 15 Total high-quality liquid assets (HQLA) (Weighted value – average) 824,280 824,356 16 Cash outflows – Total weighted value 548,614 578,624 EU 16a Cash inflows – Total weighted value 132,267 154,650 EU 16b Total net cash outflows (adjusted value) 416,348 423,974 17 Liquidity coverage ratio (LCR) (%) 200.9 201.6 Net Stable Funding Ratio 18 Total available stable funding 1,262,845 1,306,165 19 Total required stable funding 1,109,286 1,159,673 20 NSFR (%) 113.8 112.6 331Handelsbanken Annual Report 2025 3.2
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P51 cont. EU OV1 – Overview of total risk exposure amounts The table shows risk-weighted exposure amounts (RWA) for credit risk, counterparty risk, market risk and operational risk the end of 2025 and the previous year. Credit risk is calculated according to the standardised approach, the foundation IRB approach and the advanced IRB approach. Market risk is calculated according to the standardised approach. Operational risk is calculated according to the standardised approach. Total risk exposure amounts (TREA) Total own funds requirements SEK m 2025 2024 2025 1 Credit risk (excl. CCR) 291,593 327,669 23,327 2 of which standardised approach 148,086 145,115 11,847 3 of which the foundation IRB (F-IRB) approach 53,550 45,550 4,284 4 of which slotting approach EU 4a of which equities under the simple risk-weighted approach 2,905 5 of which the advanced IRB (A-IRB) approach 52,068 106,076 4,165 5a of which risk weight floors (CRR Article 458) 37,888 28,023 3,031 6 CCR 5,043 10,980 403 7 of which standardised approach 4,637 8,189 371 8 of which internal model method (IMM) EU 8a of which exposures to a CCP 239 266 19 EU 8b of which other CCR 167 398 13 9 Credit valuation adjustment risk – CVA 2,176 2,127 174 10 of which standardised approach (SA) 11 of which the basic approach (F-BA and R-BA) 2,176 2,127 174 12 of which the simplified approach 13 Disability recovery risk 2 0 14 Securitisation exposures in the non-trading book (after the cap) 15 of which SEC-IRBA approach 16 of which SEC-ERBA (including IAA) 17 of which SEC-SA approach 18 of which 1,250% / deduction 19 Position, foreign exchange and commodities risks (Market risk) 8,435 9,224 675 EU 19a of which standardised approach 8,435 9,224 675 20 of which IMA 21 Large exposures 22 Operational risk 59,168 46,577 4,733 23 Exposures to crypto-assets EU 23a Amounts below the thresholds for deduction (subject to 250% risk weight) EU 23b Output floor applied (%) EU 23c Floor adjustment (before application of transitional cap) 24 Floor adjustment (after application of transitional cap) 25 Total 366,417 394,451 29,313 Market risk under the standardised approach The table shows capital requirements for market risk according to the standardised approach at year-end 2025. Capital requirements SEK m 2025 2024 Outright products Interest rate risk (general and specific) 331 277 Equity price risk (general and specific) 2 1 Foreign exchange risk 333 451 Commodity risk 0 0 Options Simplified method Delta-plus method Scenario approach 8 9 Securitisation (specific risk) Total capital requirements for market risk 675 738 332 HandelsbankenAnnual Report 2025 3.2 Introduction Administration report Financial statements Parent company Other
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3.3 Signatures of the Board and CEO Signatures of the Board and CEO The Board of Directors and the Chief Executive Officer hereby certify that the consolidated accounts have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and in accordance with the adopted European Sustainability Reporting Standards (ESRS) and the specifica - tions adopted under the Taxonomy Regulation (EU) 2020/852. The Board of Directors and the Chief Executive Officer also certify that the parent company’s Annual Report has been prepared in accordance with the Swedish Annual Accounts Act for Credit Institutions and Securities Companies, the regulations and general guidelines issued by the Swedish Financial Supervisory Authority (FFFS 2008:25), and RFR 2 Accounting for legal enti - ties, and in accordance with the adopted European Sustainability Reporting Standards (ESRS) and the specifi - cations adopted under the Taxonomy Regulation (EU) 2020/852. Furthermore, the Board of Directors and the Chief Executive Officer hereby certify the Annual Report and the consolidated accounts give a fair presenta - tion of the Group’s and the parent company’s financial position and performance, and that the statutory admin - istration report provides a fair view of the parent company’s and Group’s operations, financial position and performance, and describes material risks and uncertainties to which the parent company and other companies in the Group are exposed. The Annual Report was approved on 19 February 2026. Stockholm, 19 February 2026 Pär Boman Fredrik Lundberg Chairman of the Board Deputy Chairman Hélène Barnekow Stina Bergfors Hans Biörck Board member Board member Board member Kerstin Hessius Anna Hjelmberg Anders Jernhall Board member Board member Board member Louise Lindh Lena Renström Ulf Riese Board member Board member Board member Michael Green Chief Executive Officer Our audit report on the Annual report and consolidated accounts and our limited assurance report on the Sustainability statement have been submitted on 25 February 2026 Öhrlings PricewaterhouseCoopers AB Deloitte AB Magnus Svensson Henryson Malin Lüning Authorized Public Accountant Authorized Public Accountant 333Handelsbanken Annual Report 2025 3.3
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3.4 Auditor’s report Auditor’s report NOTE: this is an unofficial translation of the report originally issued in Swedish. In case of discrepancies between the original report and this translation the original Swedish version shall prevail. To the general meeting of the shareholders of Svenska Handels banken AB (publ), corporate identity number 502007 -7862 Report on the Annual report and consolidated accounts Opinions We have audited the annual report and con - solidated accounts of Svenska Handels banken AB (publ) for the year 2025 with the exception of the corporate governance statement on pages 42-56 and the sustainability report on pages 57 -139. The annual report and consoli- dated accounts of the company are included on pages 11-333 in this document. In our opinion, the annual report have been prepared in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies and present fairly, in all material respects, the financial position of parent company as of December 31, 2025 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies. The consolidated accounts have been prepared in accordance with the Annual Accounts Act for Credit Insti - tutions and Securities Companies and present fairly, in all material respects, the financial posi - tion of the group as of December 31, 2025 and their financial performance and cash flow for the year then ended in accordance with IFRS Accounting Standards, as adopted by the EU, and the Annual Accounts Act for Credit Institu - tions and Securities Companies. Our opinions do not cover the corporate governance state - ment on pages 42-56 or the sustainability report on pages 57 -139. The statutory administration report is consis - tent with the other parts of the annual report and consolidated accounts.We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group. Our opinions in this report on the annual report and consolidated accounts are consis - tent with the content of the additional report that has been submitted to the parent compa - ny’s audit committee in accordance with the Audit Regulation (537/2014) Article 11. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those stan - dards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accor - dance with professional ethics for accountants in Sweden and have otherwise fulfilled our eth - ical responsibilities in accordance with these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to pro - vide a basis for our opinions. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial state - ments and the consolidated financial state - ment for the current period. These matters were addressed in the context of the audit of, and in forming our opinion on, the financial statements and consolidated financial state - ment as a whole, and we do not provide a sep - arate opinion on these matters. The descrip - tion below of how the audit was conducted in these areas is provided in this context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these mat - ters. Accordingly, our audit included the per - formance of procedures designed to respond to our assessment of the risks of material mis - statement of the financial statements and the consolidated financial statements. The results of our audit procedures, including the proce - dures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements. 334 HandelsbankenAnnual Report 2025 3.4 Introduction Administration report Financial statements Auditor’s report Other
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Key audit matters How our audit addressed the Key audit matter Provision for expected credit losses Detailed information and description of the area are provided in the annual report and consolidated accounts. Credit risk exposure and how it is managed is described in note G2. The Group’s reported expected credit losses are specified in note G11. Disclosures regarding the parent company are presented in note P2 and P11. The relevant accounting policies for the Group in this area are described in note G1, sections 6 and 14. Note P1 indicates that the parent company’s accounting policies regarding lending and provisions for expected credit losses are consistent with the Group´s accounting policies. As of 31 December, 2025 lending to the public amounts to MSEK 2 263 765 (495 790) for the group (parent) which amounts to 67% (23%) of total assets. The total credit risk exposure, including off-balance commitments, amounts to MSEK 3 531 999 (2 784 367). Provision for expected credit losses on lending to the public amounts to MSEK 1 186 (721) for which MSEK 288 (82) is based on model and expert based calculations (Stages 1 and 2) and MSEK 898 (639) is based on manual calculations (Stage 3). Expected credit losses shall be measured in a way that reflects an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes and is based on past events, current conditions and forecasts of economic conditions. To determine the provision the Bank is required to make estimates and assumptions regarding for example criteria to identify a significant increase in credit risk and methods to calculate expected credit losses. Due to the complexity of the calculation and the fact that it requires the Bank to make estimates and assumptions with a significant impact on reported amounts, the valuation of the provision for expected credit losses is considered a key audit matter. We have evaluated whether the Bank’s assessment of probability of default, loss given default, exposure at default and expected credit loss as well as significant increase in credit risk is in accordance with IFRS 9. We have obtained an understanding of and tested the design of key controls in the credit process including credit decision, credit review, rating classification as well as identifying and determining credits deemed to be in default. We have also tested controls related to model data input and general IT controls including system access management for affected systems. Furthermore, we have on a sample basis reviewed the Bank’s initial and current credit rating. We have tested that data used from supporting systems used in the model is complete and accurate. We have reviewed and assessed the model including assumptions and parameters and verified the functionality of the model. We have assessed the reasonableness of the manual calculations in Stage 3. As part of our audit, we used our internal model specialists to support us with the audit procedures performed. We have also reviewed that the disclosures in the financial reports regarding provisions for expected credit losses are appropriate. Fair value measurement of financial instruments with no market prices available Detailed disclosures and descriptions of this area are provided in the annual report and consolidated accounts. Financial instruments measured at fair value are described in Note G44 for the Group and Note P41 for the parent company. The relevant accounting policies for the Group in this area are detailed in Note G1, section 5. Note P1 indicates that the parent compa - ny’s accounting policies regarding financial instruments measured at fair value align with the Group’s accounting policies. Key audit matter How our audit addressed the Key audit matter The Bank has financial instruments where market price is missing, thus fair value is determined using valuation models based on market data. These financial instruments are categorized as level 2 under the IFRS fair value valuation hierarchy. The Bank has also, to some extent, financial instruments whose valuation to fair value is determined using valuation models for which the value is affected by input data that cannot be verified by external market data. These financial instruments are categorized as level 3 under IFRS fair value valuation hierarchy. The group (parent company) has financial assets and financial liabilities in level 2 amount - ing to MSEK 27 084 (46 304) and MSEK 29 862 (38 113) respectively. Financial assets and liabilities in level 3 amounts to MSEK 161 (152) and MSEK 2 (2) respectively. The main part of the financial instruments in level 2 is made out of derivative contracts, among them interest rate swaps and various types of linear currency derivatives, fundshares,and interest bearing instruments. These instruments are valued through the use of valuation models based on market rates and other market prices. Financial instruments in level 3 primarily consist of unlisted shares in joint ventures,and investments in the insurance business. Due to the complexity of calculations and the fact that the Bank has to make assessments with a significant impact on reported amounts, valuation of financial instruments with no market prices is considered to be a key audit matter. We have assessed whether the Bank’s method for valuation of financial instruments where market prices are unavailable, including the classification within the valuation hierarchy, is in accordance with IFRS 13. We have tested key controls in the valuation process, including the Bank’s assessment and approval of assumptions and methods used in model-based calculations, controls over data quality as well as change management regarding internal valuation models. We have also tested general IT-controls, including system access management for affected sys - tems. Further, we have evaluated the methods and assumptions made during the valuation of financial instruments with no market prices available. We have compared the valuation models with valuation guidelines and appropriate industry practice. We have compared assumptions used against appropriate benchmarks and price sources and examined any significant discrepancies. We have verified the reasonableness of the calculations by conducting our own independent valuations on a sample basis. During the audit, we have engaged our internal valuation specialist to assist us with selected audit procedures. We have also reviewed the adequacy of the disclosures in the financial statements regarding the fair value measurement of financial instruments. Other Information than the annual report and consolidated accounts This document contains other information besides the annual report and consolidated financial statements, which is found on pages 1-10, 57 -139 and 339-347. The remuneration report for the financial year 2025 also consti - tutes other information. The Board of Directors and the CEO are responsible for this other information. Our opinion on the annual report and con - solidated financial statement does not cover this information, and we do not express any form of assurance conclusion on this other information. In connection with our audit of the annual report and consolidated financial statements, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual report and consolidated financial statements. During this review, we also con - sider the knowledge we have gained during the audit and assess whether the information otherwise appears to contain material mis - statements. If, based on the work we have performed on this information, we conclude that there is a material misstatement in this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Director’s and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual report and consolidated financial statements and that they give a fair presenta - tion in accordance with the Swedish Annual Report Act for Credit Institutions and Securi - ties Companies and, concerning the consoli - dated financial statement, in accordance with IFRS accounting standards as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual report and consolidated accounts that are free from mate - rial misstatement, whether due to fraud or error. In preparing the annual report and consoli - dated financial statements, The Board of Directors and the Managing Director are responsible for the assessment of the com - pany’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Man - aging Director intend to liquidate the company, to cease operations, or has no realistic alterna - tive but to do so. The Audit Committee shall, without prejudice to the Board of Director’s responsibilities and tasks in general, among other things oversee the company’s financial reporting process. 335Handelsbanken Annual Report 2025 3.4
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Auditor’s responsibility Our objectives are to obtain reasonable assur - ance about whether the annual report and consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual report and consolidated accounts. As part of an audit in accordance with ISAs, we exercise professional judgment and main - tain professional skepticism throughout the audit. We also: • Identify and assess the risks of material mis - statement of the annual report and consoli - dated financial statement, whether due to fraud or error, design and perform audit pro - cedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opin - ions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the over - ride of internal control. • Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropri - ate in the circumstances, but not for the pur- pose of expressing an opinion on the effec - tiveness of the company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclo - sures made by the Board of Directors and the Managing Director. • Conclude on the appropriateness of the Board of Directors’ and the Managing Direc - tor’s use of the going concern basis of accounting in preparing the annual report and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncer - tainty exists related to events or conditions that may cast significant doubt on the com - pany’s and the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual report and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion about the annual report and consolidated financial statement. Our con - clusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the annual report and con - solidated financial statement, including the disclosures, and whether the annual report and consolidated financial statement repre - sent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient and appropriate audit evi - dence regarding the financial information of the entities or business activities within the group to express an opinion on the financial statement. We are responsible for the direc - tion, supervision and performance of the group audit. We remain solely responsible for our opinions. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of sig - nificant audit findings during our audit, includ - ing any significant deficiencies in internal con - trol that we identified. We must also provide the Board of Directors with a statement confirming that we have com - plied with relevant ethical requirements regard - ing independence, and to disclose any relation - ships and other matters that could reasonably be thought to bear on our independence, as well as, where applicable, actions taken to elimi- nate threats or safeguards applied. From the matters communicated with the Board of Directors, we determine those mat - ters that were of most significance in the audit of the annual report and consolidated financial statements, including the most significant assessed risks for material misstatement, and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regulation preclude public disclo - sure about the matter. Report on other legal and regulatory requirements The auditor’s audit of the administration of the company and the proposed appropriations of the company’s profit or loss Opinions In addition to our audit of the annual report and consolidated financial statement, we have also audited the administration of the Board of Directors and the Managing Director of Svenska Handels banken AB (publ) for the year 2025 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Director’s and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those stan - dards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accor - dance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to pro - vide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal regarding the allocation of the com - pany’s profit or loss. In the case of a proposed dividend, this includes, among other things, an assessment of whether the dividend is justifi - able considering the requirements that the nature, scope, and risks of the company’s and the Group’s operations impose on the size of the parent company’s and the Group’s equity, the need for consolidation, liquidity, and overall financial position. 336 HandelsbankenAnnual Report 2025 3.4 Introduction Administration report Financial statements Auditor’s report Other
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The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company´s organization is designed so that the accounting, manage - ment of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accoun - ting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evi - dence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Banking and Financing Business Act, the Swedish Annual Report Act for Credit Institutions and Securi - ties Companies or the Articles of Association. Our objective concerning the audit of the pro - posed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assur - ance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with gener - ally accepted auditing standards in Sweden, we exercise professional judgment and main - tain professional skepticism throughout the audit. The examination of the administration and the proposed appropriations of the com - pany’s profit or loss is based primarily on the audit of the accounts. Additional audit proce - dures performed are based on our professional judgment, focusing on risk and materiality. This means that we focus the examination on such actions, areas and relationships that are mate - rial for the operations and where deviations and violations would have particular signifi - cance for the company’s situation. We review and evaluate decisions made, supporting doc - umentations, actions taken, and other circum - stances relevant to our opinion on discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss we examined the Board of Directors’ reasoned statement and a selection of supporting documents in order to be able to assess whether the proposal is in accordance with the Swedish Companies Act. The auditor’s examination of the ESEF report Opinion In addition to our audit of the annual report and consolidated accounts, we have also exam - ined that the Board of Directors and the Man - aging Director have prepared the annual report and consolidated accounts in a format that enables uniform electronic reporting (the Esef report) pursuant to Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528) for Svenska Handels banken AB (publ) for the financial year 2025. Our examination and our opinion pertain solely to the statutory requirements. In our opinion, the Esef report has been pre - pared in a format that, in all material respects, enables uniform electronic reporting. Basis for Opinion We have performed the examination in accor - dance with FAR’s recommendation RevR 18 Examination of the ESEF report. Our responsi - bility under this recommendation is described in more detail in the Auditors’ responsibility section. We are independent of Svenska Handels banken AB (publ) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical respon - sibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to pro - vide a basis for our opinion. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the Esef report in accordance with the Chapter 16, Section 4(a) of the Swedish Securities Mar - ket Act (2007:528), and for such internal con - trol that the Board of Directors and the Manag - ing Director determine is necessary to prepare the Esef report without material misstatements, whether due to fraud or error. Auditor’s responsibility Our responsibility is to obtain reasonable assur - ance whether the Esef report is in all material respects prepared in a format that meets the requirements of Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), based on the procedures performed. RevR 18 requires us to plan and execute procedures to achieve reasonable assurance that the Esef report is prepared in a format that meets these requirements. Reasonable assurance is a high level of assurance, but it is not a guarantee that an engagement carried out according to RevR 18 and generally accepted auditing standards in Sweden will always detect a material misstate - ment when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reason- ably be expected to influence the economic decisions of users taken on the basis of the Esef report. 337Handelsbanken Annual Report 2025 3.4
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The audit firms apply International Standard on Quality Management 1, which requires the company to design, implement and manage a quality management system including docu - mented policies and procedures regarding compliance with professional ethical require - ments, professional standards and legal and regulatory requirements. The examination involves obtaining evi - dence, through various procedures, that the Esef report has been prepared in a format that enables uniform electronic reporting of the annual and consolidated financial statements. The procedures selected depend on the audi - tor’s judgment, including the assessment of the risks of material misstatement in the report, whether due to fraud or error. In carrying out this risk assessment, and in order to design audit procedures that are appropriate in the circumstances, the auditor considers those elements of internal control that are relevant to the preparation of the Esef report by the Board of Directors and the Managing Director, but not for the purpose of expressing an opinion on the effectiveness of those internal controls. The examination also includes an evaluation of the appropriateness and reasonableness of assumptions made by the Board of Directors and the Managing Director. The procedures mainly include a validation that the Esef report has been prepared in a valid XHTML format and a reconciliation of the Esef report with the audited annual report and consolidated financial statements. Furthermore, the procedures also include an assessment of whether the Group´s income statement, balance sheet, statements of changes in equity, cash flow statement and notes in the Esef report have been marked with iXBRL in accordance with the Esef regulation. The auditor’s examination of the corporate governance statement The Board of Directors is responsible for the corporate governance report on pages 42-56 and for ensuring that it has been prepared in accordance with the Swedish Annual Report Act. Our review has been conducted in accor - dance with FAR’s recommendation RevR 16, The Auditor’s Examination of the Corporate Governance Report. This means that our examination of the corporate governance report has a different focus and significantly lesser scope than the focus and scope of an audit conducted in accordance with Interna - tional Standards on Auditing and generally accepted auditing standards in Sweden. We believe that this review provides us with a sufficient basis for our opinion. A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second paragraph points 2-6 of the Swedish Annual Report Act and chapter 7 section 31, second paragraph of the same act, are consistent with the other parts of the annual report and consolidated financial statements and are in accordance with the Annual Accounts Act for Credit Insti - tutions and Securities Companies. Öhrlings PricewaterhouseCoopers AB, Tors - gatan 21, 113 97 Stockholm, was appointed auditor of Svenska Handels banken AB (publ) by the general meeting of the shareholders on 26 March 2025 and has been the company’s auditor since 29 March 2017. Deloitte AB, Kungstensgatan 18, 113 57 Stockholm, was appointed auditor of Svenska Handels banken AB (publ) by the general meeting of the shareholders on 26 March 2025 and has been the company’s auditor since 22 March 2023. Stockholm, February 25 2026 Öhrlings PricewaterhouseCoopers AB Deloitte AB Magnus Svensson Henryson Malin Lüning Authorized Public Accountant Authorized Public Accountant 338 HandelsbankenAnnual Report 2025 3.4 Introduction Administration report Financial statements Auditor’s report Other
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4.0 Other Other 339Handelsbanken Annual Report 2025 4.0
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Definitions and explanations Definitions and explanations Alternative performance measures The Bank’s financial reports contain alternative performance measures which Handels banken believes provide valuable information to the reader since they are used by the Executive Team for internal financial control and follow- up of performance, and also for comparison between reporting periods. Alternative Performance Measures (APMs) are financial measures of performance, finan - cial position or cash flow that are neither defined in IFRS nor the Capital Requirements Regulation. These need not be comparable with similar key metrics (performance measures) presented by other companies. Calculations of certain key metrics are reported in the Fact Book which is available at handelsbanken.com/ir. Adjusted equity per share Equity at the end of the year reduced by the equity effect of cash flow hedges and the minority share of equity. Adjusted equity is then divided by the number of ordinary shares at the year-end reduced by buybacks. Where applicable, the dilution effect is taken into account. C/I ratio Total expenses in relation to total income. In segment reporting, profit allocation is included in total income. Credit loss ratio Losses on loans to the public in relation to gross loans to the public at the beginning of the year. Dividend yield Total dividend per share in relation to the share price of the class A share at year-end. Economic capital (EC) Economic capital is a model for calculating economic capital which, in one measurement, identifies the Group’s overall risks and indi - cates the capital which, with very high proba - bility, will cover unexpected losses or decreases in value. Interest margin Net interest income for the period calcu - lated for the full year, in relation to average total assets. Operating profit adjusted for items affecting comparability Operating profit is adjusted for foreign exchange effects as well as non-recurring items and special items in order to present operating profit that is more comparable between reporting periods. P/E ratio Share price at year-end divided by earnings per share for the year. Proportion of loans in stage 3 Net loans to the public in Stage 3 in relation to total loans to the public. Provision ratio stage 1 Provisions in Stage 1 for loans to the public in relation to total loans to the public in Stage 1. Provision ratio stage 2 Provisions in Stage 2 for loans to the public in relation to total loans to the public in Stage 2. Provision ratio stage 3 Provisions in Stage 3 for loans to the public in relation to total loans to the public in Stage 3. Return on allocated capital The segment’s operating profit after profit allocation and tax, calculated using a tax rate of 20.6%, in relation to the average capital allocated quarterly during the year. Return on equity The year’s profit in relation to average equity. Average equity for the last four quarters is adjusted for value changes on financial assets classified as fair value through other compre - hensive income, derivatives in cash flow hedges, revaluation effects from defined ben - efit pension plans and a weighted average of new share issues, dividends, and repurchases of own shares. Return on total assets The year’s profit in relation to the average of total assets for the past five quarters. Total provision ratio Total provisions for loans to the public in rela - tion to total loans to the public. Total return The total of the year’s change in share price and the total dividend per share paid during the year, divided by the share price at the end of the previous year. 340 HandelsbankenAnnual Report 2025 4.1 Introduction Administration report Financial statements Other Definitions and explanations
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Key metrics and definitions defined in the Capital Requirements Regulation Additional own funds requirement The requirement consists of an additional mini - mum requirement based on a formal decision from the regulatory authorities within the Pillar 2 framework and concerns risks that a bank is or could be exposed to that are not covered by the general minimum requirements. Additional tier 1 instruments Additional tier 1 instruments comprise perpet - ual subordinated loans which meet the require - ments stated in Regulation (EU) No 575/2013 and can therefore be included in the tier 1 capital. Capital requirements The statutory capital requirement means that an institution which is subject to CRR must have a common equity tier 1 ratio of at least 4.5%, a tier 1 ratio of at least 6% and a total capital ratio of at least 8%. This means that own funds for the respective ratio must be at least the stated percentage of the risk expo - sure amount. For definitions of the respective own funds amounts, see Common equity tier 1 capital, Tier 1 capital and Total capital. In addi - tion to the general requirements, the super - visory authority may add institution-specific requirements in accordance with Pillar 2 of the regulations. Credit conversion factor (CCF) Credit Conversion Factor (CCF) is a percent - age value by which off-balance sheet expo - sures are multiplied to calculate the exposure amount. The credit conversion factor corre - sponds to the expected utilisation level of the exposure in the event of default. Credit valuation adjustment (CVA) risk Credit valuation adjustment (CVA) risk means the risk that the market value of a derivative will decrease, owing to deterioration of the creditworthiness of the counterparty. The CVA is a component in the regulations for the valu - ation of derivatives. An exposure to a counter - party with weaker creditworthiness must have a lower carrying amount than the equivalent exposure to a counterparty with better credit - worthiness. In this context, credit valuation adjustment risk means that if a given counter - party’s creditworthiness weakens, the balance sheet values of all derivative transactions with this counterparty with a positive mar - ket value decrease – and thus the Bank’s equity decreases. Common equity tier 1 capital Common equity tier 1 capital is one of the components of own funds and mainly com - prises equity. Deductions are made for divi - dends generated, goodwill and other intangible assets, etc. and the difference between an expected loss and provisions made for prob- able credit losses. Common equity tier 1 ratio Common equity tier 1 capital in relation to total risk exposure amount. Common equity tier 1 ratio available for use as a buffer The common equity tier 1 ratio after a deduc - tion for the part of common equity tier 1 capital required to comply with all formal capital requirements. Exposure amount Exposure amount (exposure at default) is the amount which is subject to capital adequacy requirements. For off-balance sheet items, the amounts are recalculated using the credit conversion factor (CCF). For derivatives, the exposure value is calculated according to the standardised approach for counterparty risk (SA-CCR). Exposure value Exposure value is the same as exposure amount. The exposure value concept is used in the standardised approach for credit risk. Guidance in Pillar 2 Guidance in accordance with Pillar 2 of the regulations allows the supervisory authority to inform the bank of the capital level which it deems the bank must maintain, excluding the minimum and buffer requirements maintained to cover risks and manage future financial strain. Leverage ratio Tier 1 capital in relation to total assets, includ - ing certain off-balance sheet items recalcu - lated with conversion factors defined in the standardised approach and regulatory adjust - ments from own funds. Liquidity coverage ratio (LCR) High-quality liquid assets in relation to an esti - mated net outflow of liquidity over a period of 30 days. Net Stable Funding Ratio (NSFR) The structural liquidity measure that is a ratio between available stable funding and the stable funding required. Own funds Own funds are the sum of tier 1 and tier 2 capital. Risk exposure amount The capital requirement in accordance with CRR is multiplied by 12.5. Risk exposure amount is used in conjunction with market risk and operational risk. Risk weight A measure to describe the level of risk an exposure is expected to have according to the Capital Requirements Regulation. Risk-weighted exposure amount Exposure amount multiplied by risk weight. Risk-weighted exposure amount is used in con- junction with credit risk and counterparty risk. Tier 1 capital Common equity tier 1 capital including addi - tional tier 1 instruments. Tier 1 ratio Tier 1 capital in relation to total risk exposure amount. Tier 2 capital Tier 2 capital is one of the components of own funds and mainly comprises subordinated loans which meet the requirements stated in Regulation (EU) No 575/2013 and can there - fore be included in tier 2 capital. Total capital ratio Total capital in relation to total risk exposure amount. Total risk-weighted exposure amount Total risk exposure amount is the sum of risk exposure amount and risk-weighted exposure amount. 341Handelsbanken Annual Report 2025 4 .1
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Explanations CRR Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012. Defaults A default shall be considered to have occurred with regard to a particular obligor when either or both of the following have taken place: a) the institution considers that the obligor is unlikely to pay its credit obligations to the insti - tution, the parent undertaking or any of its sub - sidiaries in full, without recourse by the institu - tion to actions such as realising security; b) the obligor is past due more than 90 days on any material credit obligation to the institu - tion, the parent undertaking or any of its sub - sidiaries. Earnings per share The profit for the year attributable to share - holders divided by the average number of out - standing shares. Where applicable, the dilution effect is taken into account. Expected loss (EL) Expected loss or EL means the ratio of the amount expected to be lost on an exposure from a potential default of a counterparty or dilution over a one year period to the amount outstanding at default. Forbearance measure A forbearance measure is a concession by an institution towards an obligor that is experienc - ing or is likely to experience difficulties in meeting its financial commitments. Internal ratings-based approach (IRB approach) The internal ratings-based approach is the approach provided for in Chapter 3 of Regula - tion (EU) No 575/2013 for the calculation of risk-weighted exposure amounts for the pur - poses of points (a) and (f) of Article 92(3–4). Items affecting comparability Items affecting comparability comprise foreign exchange effects as well as non-recurring and special items that tend to vary over reporting periods. Handels banken has specified these items since they are relevant for comparisons of earnings performance. Loss given default (LGD) Loss given default or LGD means the ratio of the loss on an exposure due to the default of a counterparty to the amount outstanding at default. MREL requirement Minimum requirement for own funds and eligi - ble liabilities (MREL). The MREL requirement is expressed as a share of own funds and eligible liabilities relative to the risk-weighted exposure amount and the non risk-weighted exposure amount, respectively. The requirement is deter- mined annually by the Swedish resolution author ity, in accordance with the Swedish Resolution Act (SFS 2015:1016). Non-recurring items Non-recurring items are items which Handels - banken deems to be of a one-off nature. These are specified in Handels banken’s Fact Book, which is available at handelsbanken.com/ir. Own funds and eligible liabilities The sum total of own funds and eligible liabili - ties according to the Swedish Resolution Act (SFS 2015:1016), intended to meet the MREL requirement. Probability of default (PD) Probability of default or PD means the pro- bability of default of a counterparty over a one-year period. Securitisation Securitisation means a transaction or scheme, whereby the credit risk associated with an exposure or pool of exposures is tranched, having both of the following characteristics: a) payments in the transaction or scheme are dependent upon the performance of the expo - sure or pool of exposures; b) the subordination of tranches determines the distribution of losses during the ongoing life of the transac - tion or scheme; c) the transaction or scheme does not create exposures with all the charac - teristics listed in Article 147(8) of Regulation (EU) No 575/2013. Social security costs Fees for financing social security systems. This comprises employers’ contributions and special payroll tax in Sweden and equivalent taxes and charges for operations elsewhere. Special items Special items are items which tend to vary between financial reporting periods, such as provisions to the Oktogonen profit-sharing scheme, and which Handels banken has speci - fied in detail to facilitate comparison of finan - cial performance. Standardised approach The standardised approach is the approach provided for in Chapter 2 of Regulation (EU) No 575/2013 for the calculation of risk-weighted exposure amounts for the purposes of points (a) and (f) of Article 92(5). The standardised approach means that the risk weights used when calculating the capital requirement for credit risk are specified in the regulations. 342 HandelsbankenAnnual Report 2025 4.1 Introduction Administration report Financial statements Other Definitions and explanations
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Sustainability 2030 Agenda for Sustainable Development The action plan containing the 17 Sustainable Development Goals (SDGs) that is to be achieved by 2030 and which was adopted at the UN Sustainable Development Summit in September 2015. Article 8 fund Funds that, in accordance with the disclosure requirements stipulated in the SFDR, promote environmental or social characteristics and contribute to sustainability without having sus - tainability as the objective of management. Article 9 fund Funds that, in accordance with the disclosure requirements stipulated in the SFDR, have sustainable investment as their objective and invest in companies or projects that meet specific environmental or social objectives. Carbon footprint A calculation of the total greenhouse gas (GHG) emissions caused directly and indirectly by an individual, organisation, event or product. Corporate Sustainability Reporting Directive (CSRD) The EU Corporate Sustainability Reporting Directive that regulates how certain compa - nies will be required to report on sustainability in their annual reports. It applies to financial years beginning after 1 July 2024. ESG Environmental, social and governance criteria. EU Taxonomy An EU-wide classification system for sustain - able activities. The introduction of the Taxon - omy is part of the EU action plan for financing sustainable growth. European Sustainability Reporting Standards (ESRS) The EU standards that describe the sustain - ability reporting requirements under the CSRD. Greenhouse Gas Protocol (GHG Protocol) The most commonly used standard for calculating and reporting a company’s GHG emissions. Intergovernmental Panel on Climate Change (IPCC) The UN’s Intergovernmental Panel on Climate Change compiles the current state of scientific knowledge on climate change, its implications and potential future risks, as well as putting forward adaptation and mitigation options. Network for Greening the Financial System (NGFS) A global network of more than 100 central banks and supervisors, which was founded in 2017 to promote a sustainable and climate- friendly financial systems by integrating climate- related risks in financial decision making and regulations. Paris Agreement At the UN Climate Change Conference in Paris in December 2015, world leaders reached a new global and legally binding climate agree - ment. The agreement entered into force in 2016 and commits countries to limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C. Paris Aligned Benchmark (PAB) An index that approximates a pathway for investments to achieve alignment with the goals of the Paris Agreement. This index is part of the EU’s sustainability agenda to promote transparent and reliable climate-friendly investments. Partnership for Carbon Accounting Financials (PCAF) A global partnership of financial institutions that work together to develop and implement a harmonised approach to assess and disclose the GHG emissions associated with their loans and investments. The PCAF is the GHG Protocol’s approved standard for the financial sector. Physical climate risks Physical climate risks arise as a consequence of global warming brought about by increased GHG emissions. This results in increased occurrences of extreme weather events, as well as rising sea levels, coastal erosion and similar consequences. Sustainable Development Goals The Sustainable Development Goals (SDGs) are part of the 2030 Agenda. There are a total of 17 SDGs, which in turn have 169 associated targets. With these SDGs, the countries of the world have pledged to eradicate extreme pov - erty, combat inequalities and injustice and take action to combat climate change by 2030. Sustainable Finance Disclosure Regulation (SFDR) An EU regulation that aims to make it easier to compare the sustainability performance of different funds by requiring fund companies to disclose how sustainability risks are integrated into investment decisions, how the principal adverse impacts of sustainability factors are considered, and whether a fund has sustain - able investment as its objective or promotes environmental or social characteristics. Transition company A company that is transitioning its operations to be more sustainable. An example is a com - pany that is shifting away from fossil energy production to renewable energy. Transition risks Transition risks are risks that arise through changes to legislation, in demand for products and services, customer behaviour or other structural shifts which take place as part of society’s attempts to transition to a climate- neutral economy. Representative Concentration Pathways (RCP) Scenarios showing how future GHG emissions might develop and the resulting climate impact. These pathways have been formally adopted by the IPCC and are used in models to esti - mate future increases in temperature with each RCP representing a potential level of radiative forcing (heating effect) by 2100. Science Based Targets initiative (SBTi) A global framework that enables companies and financial institutions worldwide to set climate targets in line with science to limit global warming. The organisation validates and approves targets to ensure that they are consistent with 1.5°C pathways and the Paris Agreement. Scope (1, 2 and 3) These are different categories of emissions set by the GHG Protocol. Scope 1 includes direct GHG emissions that occur in the compa - ny’s own operations. Scope 2 refers to indirect greenhouse gas emissions from the genera - tion of purchased electricity, steam, heating, or cooling consumed by a company. Scope 3 comprises all other indirect GHG emissions that occur from a company’s value chain that are not owned or controlled by the company. Task Force on Climate-related Financial Disclosure (TCFD) A global initiative that developed a framework to help businesses identify and prevent their climate-related risks and opportunities. The framework also provides guidance on report - ing and transparency. 343Handelsbanken Annual Report 2025 4 .1
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Branches and branch managers Branches and branch managers Handels banken’s strength lies in close relationships and local presence. With a nationwide network of branches in Sweden, the UK, Norway and the Netherlands, local experts are always available to provide qualified advice based on customer needs. This closeness to customers is not only the foundation that enables Handels banken to offer high-quality advisory services, but also one of the reasons why Handels banken is one of the most stable banks in the world. Local business decisions are made by employees who know both the customer and the local market, which results in more satisfied customers and better decisions. The information applies as per 31 December 2025. Sweden Alingsås Malin Bern Alviks Torg Linda Unger Arboga Larry Andersson Arenastaden Christer Örtegren Blasieholmstorg Large Corporates Kenneth Holmström Boden Jimmy Vikström Bollebygd Anders Roos Bollnäs Anna Ekström Borlänge Henrik Bergenström Borås City Joakim Antonsson Brommaplan Charlotta Hallqvist Lindström Bålsta Anna Karlsson Båstad Adam Bergqvist Djursholm Fredrik Enander Edsbyn Anna Ekström Ekerö Thomas Wedholm Enköping Lars Olsson Eskilstuna Katharina S Hellmark Eslöv Angelica Lund Fagersta Ida Eriksson Falkenberg Kristian Gårdenfelt Falköping Ulf Carrick Falun Henrik Ragnarsson Farsta Centrum Jessica Nirvin Gislaved Per Risberg Globen Katarina Alf Gotland CarlOscar Sjöström Gällivare Marcus Lagerqvist Gävle City Peter Brodin Gothenburg Almedal Helena Johansson Gothenburg Avenyn Veronica Wallin Johansson Gothenburg City Johan Martinsson Gothenburg Frölunda Patrik Niklasson Gothenburg Masthuggskajen Peter Romedahl Gothenburg Sisjön Christian Sjöberg Gothenburg Torslanda Marko Milutinovic Gothenburg Volvo PVB Marko Milutinovic Gothenburg Örgryte Linda Hellsten Hallstavik Lize Drakman Halmstad Magnus Landbring Hammarby Sjöstad Erik Lundmark Haninge Maria Sjöstedt Hedemora Jonas Lund Helsingborg Stortorget Erik De La Motte Hovås Eva Bergholtz Huddinge Centrum Heléne Ferlin Hudiksvall Thony Nylund Hägersten Philip Vikman Härnösand Andreas Linder Hässleholm Matz Nilsson Höganäs Erik De La Motte Höllviken Maria Hägerström Järfälla Karin Morin Jönköping Jens Claesson Kalix Petter Hahne Kalmar Annelie Johansson Karlastaden Jan-Olof Strand Karlshamn Kristina Helander Krona Karlskoga Jonna Hagelbrand Karlskrona Malin Nilsson Karlstad Magdalena Gunnarsson Katrineholm Terese Klöver Kiruna Alexander Steen Kista Johannes Thornell Knivsta Agneta Sturesson Kramfors Kim Brändström Kristianstad Åhus Rebecca Törnkvist Krokom Henrik Lindqvist Kumla Nina Bertebo Kungsbacka Sophia von Sydow Witte Kungsängen Anna Karlsson Kungälv Gustav Olsson Kävlinge Roger Håkansson Köping Annette Holmsten Landskrona Elin Olsson Leksand Anders Ekström Lerum Annika Eriksson Lidingö Mikael Gustafson Lidköping Andreas Hauge Lima Camilla Enqvist Lindesberg Maria Ekdahl Linköping Petri Rask Ljungby Maria Larsson Ljusdal Tove-Li Häll Lomma Philip Cederholm Ludvika Edvin Rogefors Luleå Storgatan Maria Mörk Lund City Roger Håkansson Lund Ideon Erik Hultgren Lycksele Fredrik Karlsson 344 HandelsbankenAnnual Report 2025 4.2 Introduction Administration report Financial statements Other Branches and branch managers
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Malmö City Erik Bredberg Malmö Fosie Anders Persson Malmö Fridhem Göran Camitz Malmö Limhamn Cecilia Leijgård Malmö Stortorget Pernilla Hanserup Malmö Öster Cecilia Wahlberg Mariestad Pernilla Ljungkvist Marievik Thomas Hernbäck Mjölby Sebastian Fröberg Mora Anette Skoglund Motala Sebastian Fröberg Mölndal Helena Johansson Mölnlycke Fredrik Gårlin Mörby Centrum Sofie Ehrström Nacka Forum Nesrin Atci Nordmaling Camilla Björk Norrköping Caroline Bragner Norrtälje Diana Israelsson Norsjö – Malå Henrik Widman Nyköping Terese Klöver Nynäshamn Erik Johansson Nässjö Peter Fråhn Oskarshamn Marie-Louise Mobelius Pajala Maria Grym Partille Rickard Åhrén Piteå Stefan Uddström Sala Heby Helen Emnerud Vilhelmsson Saltsjö-Boo Jennie Widlund Sandviken Johan Björk Sigtuna Johanna Estman Larsson Simrishamn Mohammad Mokhtari Sjöbo Thomas Hansson Skanör Maria Hägerström Skellefteå Henrik Widman Skövde Rebecca Ingwall Sollefteå Kim Brändström Sollentuna Centrum Fredrik Andersson Solna Maria Lidström Andersson Staffanstorp Roger Håkansson Stenungsund Per Marcher Stockholm Arbetargatan Beril Kadayifci Stockholm Gärdet Patrik Lönnstad Stockholm Hornsberg Nahir Oussi Stockholm Humlegården Anne-Marie Dahlstedt Stockholm Högalid Malin Cederlund Stockholm Karlaplan David Forner Stockholm Kungsholmstorg Franck Eklund-Morén Stockholm Kungsträdgården Lena Stenmark Stockholm Norrmalmstorg Maria Wedholm Stockholm Odenplan Linda Norman Monteil Stockholm S:t Eriksplan Emelie Franck Stockholm Skanstull Camilla Esgård Stockholm Slussen Anna Andersson Stockholm Strandvägen Carl-Magnus Gustafsson Stockholm Stureplan Hans Lundin Stockholm Vanadisplan Tobias Jarder Stockholm Vasagatan Anders Lindegren Stockholm Östermalmsgatan David Forner Stockholm Östermalmstorg Jan Larsson Strängnäs Hanna Ripdal Strömsund Marlene Wahlström Sundbyberg Martin Nordfeldt Sundsvall Helena Johansson Sunne Sara Brask Sveg Emil Olsson Grind Söderhamn Thomas Frykberg Södertälje Mårten Larsson Tierp Hampus Udell Tranås Anna Gyllenhammar Trelleborg Cecilia Pilo Trollhättan Ingela Karlsson Tullinge Anna Zickert Söderström Tyresö Maria Grahn Täby Susanne Ädel Uddevalla Fredrik Sköld Ulricehamn Jasmin Karlsson Umeå City Anders Sundström Umeå Teg Henrik Lundström Upplands Väsby Carl-Fredrik Boija Uppsala Boländerna Kristina Carlsson Uppsala City Micael Lindström Uppsala Luthagen Ann-Sofie Sivander Uppsala Rosendal Sofie De Jounge Vallentuna Nina Ersson Vansbro Fredrik Hallkvist Vara Hanna Carlsson Varberg Alexander Turesson Vetlanda Malin Zeilon Vilhelmina Sabitha Rolandsson Vimmerby Marie-Louise Mobelius Vällingby Eric Nolerstedt Vänersborg Alisa Kasumovic Vännäs Alexander Bagrov Värmdö Johanna Lagerbäck Värnamo Eva Fälth Västervik Marie-Louise Mobelius Västerås City Marie Strandberg Västerås Köpingsvägen Mats Söderlund Västerås Öster Mälarstrand Emilie Lövgren Växjö Maj-Lis Pettersson Ystad Katerina Bosevska Åkersberga Carin Björnestam Söderlind Åmål Dennis Göransson Ånge Niclas Södergren Åre Kim Lundin Älmhult Fredrik Roghner Älvsborg Allison Åsblom Älvsbyn David Åkerlund Älvsjö Daniel Andersson Ängelholm Irene Andersson Öland Annelie Johansson Örebro Drottningparken Kristin Pettersson Örebro Ekersgatan Ida Karlsson Örebro Stortorget Michael Johnsson Örnsköldsvik Kari Pessa Östersund Hans Albert Lindgren Östhammar Anna Lydell Bjälmén Sweden cont. 345Handelsbanken Annual Report 2025 4.2
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UK Altrincham Rachel Farnan Banbury Martin Randall Barnsley and Rotherham Steven Stocker Bath Frank Green Bedford Chris Spurgeon Birmingham Stephen Breen Bolton and Wigan Mark Hutchinson Bradford David Brady Bristol Aztec West Matt Bevan Bristol Queens Square Illtyd Francis Bromley Chris Pye Bromsgrove Gavin Oliver Cambridge Cambourne Paul Smith Cambridge North Paul Smith Canterbury and Ashford Gavin Coleman Cardiff Christoper Price Central Scotland Karl Lejman Chelmsford Thomas Smith Chelsea Ceri Baker Chester Nicola Arrowsmith Chesterfield Karen Claydon Chichester Brett Charles Chiswick Raakesh Teeluck Clapham Michelle Groome Clifton Neil Humphreys Colchester Russell Felstead Cotswold Stephen Ellis Coventry Brett Salisbury Crawley David Barden Croydon Stephen Gutteridge Darlington Andrew Kerley Dartford Danesh Kumar Derby Michael Alldread Doncaster Natalie Simpson Dorset Alex Newey Durham Jonathan Leonard Ealing Raakesh Teeluck East Lancashire Richard Lancaster East Sussex Simon Nicholson Edgbaston Oliver Longmore Edinburgh East Karl Lejman Edinburgh West End Iain Henderson Enfield Andrew Walker Exeter Jim Durrant Fylde Coast Adam Short Glasgow City David Waddell Gloucester Emma Gray Grimsby Julie Williamson Guildford Jason May Halifax and Huddersfield Neil Whittaker Hampstead Jake Ellson Harrogate James Cornell Harrow Mark Hunter Henley on Thames Brian Palmer Hertford Debbie Chilton High Wycombe Cara Taylor Hull Hesslewood Timothy Kitching Hull Marina Court James Gray Kensington Navid Shah Kingston and Wimbledon Mark Lobo Leamington Spa Danielle Coe Leeds Lawnswood Andy Lowther Leeds City Andrew Shakeshaft Leicester Jane Morris Lincoln Di Jones Liverpool Duke Street Alexia Hayes Liverpool Exchange Station Catherine Joynt London Large Corporates Paul Highmore London Bridge Mark Lilliott London Holborn David Boaden London City Mark Earlam London Kings Cross Will Lamb London Marylebone Andrew Rowlands London West End Roy Budgett Luton Phil Bidwell Maidstone Jack Thomas Manchester and Trafford Philip Basten Manchester Trinity Way Anthony Flynn Milton Keynes Lisa Robey Morpeth Neil Black Newbury Kevin Heppell Newcastle upon Tyne Marie Richardson North Cumbria Michelle Raffles North Wales Louise Harper Northern Scotland Steve Rae Northampton Timothy Richardson Norwich Jim Braithwaite Nottingham Ropewalk Darryn Evans Nottingham West Bridgford Nick Pulley Oxford & Abingdon Graham Beith Oxford Parkway Graham Beith Peterborough Helen Hickingbotham Plymouth Paul Warnham Portsmouth Jonathan Hughes Preston John Williams Reading Nick Oliver Redhill & Epsom Barry Sexton Richmond Nerpal Singh Romford George Dench Salisbury Ian Townsend Scarborough Owen Mahoney Sheffield Pete Gray Shrewsbury Lindsay Pearson Solihull Sean Leckenby South Lakes & Lancaster Michael Fell Southampton Philip Dedman Southend on Sea Phil Clarke St Albans Steve Smith Stafford Helen Brown Stoke on Trent Lee Vickers Suffolk Martin Fish Swansea Martin Griffiths Swindon David Cook Tamworth Paul Thacker Taunton Peter Kirby Teesside David Thompson Truro Elizabeth Stansfield West Kent Dan Batchelor Wakefield David Haslehurst Warrington Ian Foster Watford Andrew Samarasinghe Weybridge Geoff Harrison Wilmslow Haydn Aird Winchester Jack Walters Windsor and Ascot Faisal Khan Wolverhampton Ian Gough Worcester and Hereford Stephen Ellis York Joy Newton 346 HandelsbankenAnnual Report 2025 4.2 Introduction Administration report Financial statements Other Branches and branch managers
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Norway Arendal Vidar Akselsen Asker Anita Kongsgård Bergen Nord Bjørn Tore Riise Bergen Sentrum Geir Flaa Bergen Syd Thomas Espeseth Rasmussen Bodø Håvard Vik Drammen Cathrine Bjørge Follo Hanne Bjørnå Berntsen Fredrikstad Fredrik Gerhard Monsen Halden Trond Andre Grothe Hamar Hans Alf Skjelbreid Haugesund Ole Henry Slette Jessheim Helene Warhuus Molund Kongsberg Cathrine Bjørge Kristiansand Vidar Akselsen Larvik Hans Jørgen Ormar Lillehammer Hans Alf Skjelbreid Lillestrøm Helene Warhuus Molund Lysaker Glenn Steinbø Molde Kristin Farstad Vang Moss Ole Petter Garberg Oslo Bjørvika Liv Hårstadhaugen Oslo Bryn Ole Almedal Hellevik Oslo Majorstuen Andreas Münster Oslo Nord Jon Are Skarholt Oslo Skøyen Linda Rognes Stensrud Oslo Vika Henrik Gunnestad Bjerkreim Sandefjord Hans Jørgen Ormar Sandnes Sindre Bergsagel Sandvika Aslak Olimb Nanseth Sarpsborg Trond Andre Grothe Skien Mårten Jacobsson Stavanger Rolf Inge Knutsen Tønsberg Sveinung Dahl Tromsø Terje Polden Trondheim Ola Grøtte Ålesund Johan Gerhard Myklebust The Netherlands Alkmaar Ronald Smit Amersfoort Jeroen Ammerdorffer Amstelveen Caroline Mesters Amsterdam Amstel Erik van den Brom Amsterdam Centrum Tim Neu Amsterdam Zuid Lars Vissers Apeldoorn Jeroen Altena Arnhem Kees van Yren Bergen op Zoom Jeroen Wiertz Breda Edwin Boonk ‘s-Hertogenbosch Nicole van Rijmenam The Hague Marc de Brey Drenthe Shiëstha de Jonge Eindhoven Pieter van de Koolwijk Friesland Tammo Oosterhof Groningen Martijn Popken Haarlem Daniël van Til Het Gooi Laurens de Jong Leiden Gelte Olijve Maastricht Gaston van den Biggelaar Rijnmond Zuid Hidde van der Wind Roermond Luc Geisen Rotterdam Riewing van Eerden Tilburg Erik de Beer Twente Martijn Peters Utrecht Siger Seinen Zwolle Peter Hulsbergen Other countries Luxembourg Camilla Sjöberg New York Johan Lorentzon 347Handelsbanken Annual Report 2025 4.2
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Production: Handels banken in cooperation with Hallvarsson & Halvarsson. Photo: Magnus Fond (Fond & Fond Photographers), Pär Olsson (Studio Pär Olsson), Rickard Kilström (Fotograf Rickard Kilström), Handels banken. Print: Larsson Offsettryck, Linköping 2026.
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