Sweden · Delayed Price · Currency is SEK Svenska Handelsbanken AB Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw strong profitability with ROE at 13% and robust asset quality, though underlying operating profit dipped 6% due to temporary valuation effects. Fee and commission income hit record highs, driven by savings, while margin pressure persisted in Sweden and Norway.
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Q2 is expected to reflect a large dividend payout, a minor FX tailwind, and stable cost discipline, with no new VAT refunds or material changes in credit losses. CET1 ratio remains strong, and regulatory fees will cover a longer period. AML investigation is routine.
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Operating profit and ROE increased, driven by strong lending in the U.K. and Netherlands, while Swedish lending remained flat. Cost efficiency improved, credit losses stayed minimal, and a one-off VAT refund boosted results. CET1 ratio remains robust at 17.2%.
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Volumes in Swedish mortgages picked up while corporate lending stayed muted; CET1 ratio remains strong and funding activities are on plan. Policy and market rate impacts, fee trends, and regulatory costs were discussed, with no new guidance provided.
Fiscal Year 2025
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Q4 2025 saw modest profit growth, robust asset quality, and strong savings inflows, with ROE at 13% and cost discipline maintained. The CET1 ratio is well above regulatory requirements, and a SEK 17.50 per share dividend is proposed.
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Volumes in Swedish mortgages and select European markets are gradually improving, but margin pressure persists due to lower policy rates and FX headwinds. Capital remains strong, with a CET1 ratio well above requirements, and regulatory changes will impact risk and deposit requirements in 2025.
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Operating profit rose 8% sequentially, with improved cost efficiency and strong asset quality. Lending and savings volumes are growing in key markets, though NII faces margin pressure from lower rates. CET1 ratio remains robust, and management is optimistic about future lending demand.
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Volume growth remains subdued and lower policy rates are pressuring deposit margins, though tighter credit spreads are reducing funding costs. No new guidance was provided, and capital ratios remain strong with ongoing review of CET1 headroom.
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Q2 2025 saw operating profit of SEK 7.2 billion and ROE of 13%, with income down 8% sequentially due to rate and FX effects. Costs fell year-on-year, asset quality remained strong, and lending growth returned to positive territory in all home markets.
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Q1 2025 saw stable operating profit and 13% ROE, with resilient NII and fee growth offsetting policy rate cuts. Costs fell 7% year-over-year, improving efficiency, while asset quality and capital buffers remain strong amid macro uncertainty.
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Q1 saw subdued volume growth, FX headwinds for income, and seasonal cost reductions, with no new guidance provided. CET1 ratio remains strong and capital is fully hedged to currency movements. Efficiency initiatives and Finnish divestment were finalized.
Fiscal Year 2024
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Q4 2024 saw record operating profit and strong ROE, driven by efficiency gains and stable asset quality. The bank proposes a SEK 15 per share dividend, maintains a high CET1 ratio, and continues to focus on organic growth and cost discipline across all markets.
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Q3 2024 delivered higher ROE, improved cost-income ratio, and strong operating profit growth, supported by efficiency gains and net credit loss recoveries. The CET1 ratio remains robust, dividend accruals are high, and asset quality is stable, with continued strong customer satisfaction.
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Earnings and profitability improved in Q2 2024, with higher ROE, lower cost income ratio, and net credit loss recoveries. Efficiency measures, including staff reductions and consultant cuts, are underway, while the CET1 ratio remains strong at 18.9%.