Svenska Handelsbanken : Change in methodology at Group level for calculating capital requirement for credit risk at Handelsbanken's UK subsidiary

Handelsbanken's UK subsidiary, Handelsbanken plc, calculates the capital
requirement for credit risk with the application of the standardised approach.
At Group level, Handelsbanken applies the internal ratings-based approach to
calculate the credit requirement for credit risk, including for those parts of
its volumes which are reported by Handelsbanken plc. This is a requirement under
the licence granted by the Swedish Financial Supervisory Authority.

The Swedish Financial Supervisory Authority has decided that, from 1 January
2021, the Bank is also to use the standardised approach at Group level, when
calculating the capital requirement for credit risk at Handelsbanken plc. The
risk exposure amount (REA) at the Bank will consequently increase by
approximately SEK 65 billion in conjunction with the introduction of the new
method. As at 30 June 2020, the total REA was around SEK 705 billion. The common
equity tier 1 ratio was 18.7 per cent, while the common equity tier 1 capital
requirement communicated to the Bank by the Swedish Financial Supervisory
Authority was 14.0 per cent.

The Bank does not yet know what capital requirement the Swedish Financial
Supervisory Authority will assign to the UK volumes at Group level, for which
reason the impact of this decision on the common equity tier 1 ratio and total
capital ratio at Group level will be announced at a later date. However, the
Bank assesses that following this change, and in combination with other,
previously announced changes, the common equity tier 1 ratio as at 30 June 2020,
pro forma, remains over the target ratio range.

For further information, please contact:
Lars Höglund, Head of Investor Relations, [phone]
This information is of the type that Handelsbanken is obliged to make public
pursuant to the EU Market Abuse Regulation, the Swedish Securities Markets Act
and the Swedish Financial Instruments Trading Act. The information was submitted
for publication through the agency of the contact person set out above, at 13:00
CET on 15 September 2020. For more information about Handelsbanken, see:
www.handelsbanken.com

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