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SVENSKA HANDELSBANKEN ISSUES JANUARY-MARCH 1993 QUARTERLY REPORT

 STOCKHOLM, Sweden, May 11 /PRNewswire/ -- The president and group chief executive of Svenska Handelsbanken, Arne Martensson, today announced the following results for the period from January to March 1993:
 From 1993, Svenska Handelsbanken is changing from four-monthly reporting to quarterly reporting. In the comparative figures for 1992, loan losses are calculated at 3/12 of the full year. Other items have been adjusted to 3/4 of the first four months of 1992.
 The Svenska Handelsbanken Group's result for the first quarter of 1993 was a profit of Swedish kronor (SEK) 351 million (loss of SEK 314).
 Return on shareholders' equity after 30 percent tax was 5.8 percent (down 5.1 percent).
 Earnings per share for this quarter were SEK 1.60 (loss of SEK 1.31).
 The result before loan losses increased by 29 percent to SEK 2,171 million (SEK 1,686 million).
 Income rose by 17 percent.
 Net interest income went up by 15 percent, mainly due to a shift in lending from foreign currency to Swedish kronor.
 Commission rose by 12 percent. In particular, international and investment banking commission increased.
 Expenses went up by 2 percent which was mainly due to increased investment in systems development. Personnel expenses were unchanged. The number of staff fell by just over 300 which compensated for the salary increase as at April 1, 1992.
 The income/expenses ratio before loan losses increased from 2.28 to 2.62.
 Svenska Handelsbanken
 Loan losses fell by 9 percent to SEK 1,820 million (SEK 2,000). These losses correspond to 2.5 percent of lending volume and are a reflection of the long recession and the still weak property market.
 During the first quarter, Svenska Handelsbanken's subsidiary Fastighets AB Naackebro took over properties worth SEK 410 million in order to protect the Bank's claims. At the end of March, the book value of property taken over was SEK 3.7 billion. When taken over, the property was written down to a market value fixed by an external valuer. In those cases where this market value is less than the value of the Bank's original collateral, the difference is reported as an actual loan loss.
 The total amount of non-performing loans and loans with interest deferrals was largely unchanged since the year-end -- SEK 15.6 billion compared to SEK 15.5 billion. This is a decrease from 5.5 percent to 5.4 percent of lending volume.
 Non-performing loans were SEK 10.8 billion (SEK 10.2) and loans with interest deferrals SEK 4.8 billion (SEK 5.3).
 At the end of the quarter, the Group's capital cover was 10.0 percent compared to 10.1 percent at the beginning of the year. In accordance with the Swedish Financial Supervisory Authority's instructions, the profit for the quarter is not included in the capital base.
 SVENSKA HANDELSBANKEN GROUP
 Profit and loss account
 (Millions Swedish kronor)
 January-March Percentage
 1993 1992 Change
 Net interest income 2,643 2,302 15
 Commission 641 574 12
 Other income 228 129 77
 Total operating income 3,512 3,006 17
 Personnel expenses 670 669 0
 Other expenses 671 651 3
 Total expenses 1,341 1,320 2
 Result before loan losses 2,171 1,686 29
 Loan losses 1,820 2,000 (9)
 Net operating profit/loss 351 (314)
 Personnel expenses for 1992 have been reduced by a preliminary allocation to the profit-sharing foundation Oktogonen, since no allocation was made for 1992.
 SVENSKA HANDELSBANKEN GROUP
 Balance Sheet
 (Millions Swedish kronor)
 3/31/93 12/31/92 Percent Change
 Government securities and bonds 45,413 41,917 8
 Lending 272,588 269,031 1
 Financial institutions 48,866 49,266 (1)
 Other 34,178 32,996 4
 Total assets 401,045 393,210 2
 Funding 175,302 170,860 3
 Deposits 163,621 160,476 2
 Other liabilities 33,812 33,251 2
 Subordinated loans 10,991 11,550 (5)
 Shareholders' equity 17,319 17,073 1
 Total asses and
 shareholders' equity 401,045 393,210 2
 Dividends for 1992, SEK 16 million, are reported under other liabilities. Shareholders' equity in 1993 includes 70 percent of the reported operating profit.
 KEY FIGURES FOR THE GROUP
 (Expressed as a percent)
 January-March 1993 1992
 Return on equity 5.8 (5.1)
 Efficiency, I/E ratio
 - before loan losses 2.62 2.28
 - after loan losses 1.11 0.91
 Earnings per share (A)
 - Jan.-March, SEK 1.60 (1.31)
 - last twelve months, SEK (0.55) 7.67
 (A) -- Before extraordinary items, after 30 percent standard notional tax and after full conversion of convertible notes.
 SVENSKA HANDELSBANKEN GROUP
 Profit and loss account
 (Millions Swedish kronor)
 January-March Percentage
 1993 1992 Change
 Net interest income 2,263 1,960 15
 Commission 608 510 19
 Other income 159 127 25
 Total operating income 3,030 2,597 17
 Personnel expenses 579 578 0
 Other expenses 582 569 2
 Total expenses 1,161 1,147 1
 Result before loan losses 1,869 1,450 29
 Loan losses 1,697 1,771 (4)
 Net operating profit/loss 172 (321)
 This quarterly report has not been examined by the Bank's auditors.
 -0- 5/11/93
 /CONTACT: Arne Martensson, president and group chief executive, or Sven Grevelius, executive vice president and head of central control department of Svenska Handelsbanken, in Stockholm: 46-8-22-92-20/


CO: Svenska Handelsbanken ST: IN: SU: ERN

TS -- NY012 -- 6820 05/11/93 07:48 EDT
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