** Svenska Handelsbanken & Intesa Sanpaolo stand out for F&C Investments' head of Europeanequities David Moss in sector far better capitalized now afterregulatory pressure to bolster balance sheets post-Lehman
** Moss sees scope for Sweden's HB, which has expanded atgreat clip in Britain since 2007-2009 financial crisis, to rampup number of UK branches which are more profitable than inSweden & for branches themselves to increase balance sheet size
** HB vastly different to UK rivals, whose public perceptionsoured by mis-selling scandal & generous bonuses; HB hasthrowback local approach giving branch managers control overlending decisions, shuns bonuses
** HB trading at a premium vs other UK banks (P/B at 2.1 vsLloyds at 1.5 & both StanChart & RBS on 0.8), but Moss backing it for >10-yr UK growth story
** Moss says Italy's Intesa Sanpaolo, which he sees as verywell run, well capitalized (particularly vs local peers) &conservative bank, overlooked amid country's poor economicbackdrop
** Sees scope for some growth, as well as increase in diviover time
** Story on European banks' stress tests in nine Italianbanks failed (RM: tricia.wright1.thomsonreuters.com@reuters.net)