Good afternoon and welcome to this call ahead of our silent period that starts on October 7. This is Peter Grabe, Head of Investor Relations speaking, and with me today, I have the Investor Relations team: Dahlkjær & Dahlqvist, Andreas Skoglid, and Per Aronsson. We would like to remind you that this call will be recorded. This call is intended for sell-side analysts and will not include any communication of new information, information that is not publicly known, or any new guidance. The aim of this call is to remind about publicly communicated matters for housekeeping purposes of estimates and expectations ahead of the interim report. In this call, we are not aiming at steering you towards any specific numbers, and the outcome of the quarterly results will occasionally deviate more or less from the trends we comment on in this call.
We will only answer questions relating to public information and related to Q3. If you would like to ask a question, please raise a hand within the Teams app. Now, let's go through the respective lines and start with NII. First, in terms of volume development, we can only refer to official statistics, such as Statistics Sweden. The general observation is, once again, that volume growth overall in our home markets appears to have remained relatively subdued. Second, in terms of margin development and NIM sensitivity, we don't guide, as you know, as it is a challenge to have a clear view of the net of several factors affecting, such as funding, competition, mixed effects, etc. On a general note, though, lower policy rates typically burden the transaction account deposit margins. As you know, there have been a few cuts in most of our home markets since June.
The Bank can, at the same time, adjust other rates, such as lending rates and rates on term deposits, that potentially, to a degree, can offset the effect. We cannot guide you on the net effect expected in the quarter. Just to remind, in the previous quarter, we did not state nor quantify any specific one-off related effects to the NIM. Third, in Q3, there's one more day than in Q2. As we previously highlighted, you should expect the net day count effect to be around SEK 30 million per day. Finally, in terms of FX, the currencies in the countries where we operate have moved in different directions. Overall, the FX effects from the movements should more or less offset each other.
As always, when assessing the FX impact on the P&L lines, look at the average FX level in a quarter compared to the previous and take that times the P&L line in the local currency in respective segments. Over to fee and commissions, starting with savings-related fees, which account for around two-thirds of the commissions. The development of the daily average stock market indices during the quarter usually tends to be somewhat of a leading indicator for the savings-related fees. There are, of course, several other factors affecting the savings-related fees, such as level of inflows, mix effects, etc. We can note that the daily average of the market indices is up somewhat in Q3 compared to Q2. In terms of the development of other fee lines, we can only refer to the historical seasonal patterns. Moving on to NFT.
The NFT is a minor income line, as you know, and has averaged around SEK 500 million to SEK 600 million per quarter over the past few years. As seen in the past, and in Q2 in particular, it can vary by a few hundreds of millions in between quarters when, for example, credit spreads, interest rates, currencies are particularly volatile. In Q2, it was also burdened by negative realization results relating to the divestment of a credit card portfolio in Finland. There is nothing specific that has occurred in Q3, which we can highlight now in this call. The cost lines. Just like on the income side, it is fairly easy to get a sense of the FX impact also on the cost side. As mentioned previously, the net FX effects appear to have been fairly modest in the quarter.
In Q2, there were restructuring costs of SEK 58 million. As we mentioned earlier, the cost initiatives addressed last year should be seen as more or less behind us now. We have not guided for any restructuring costs in Q3. In terms of potential octagonal provisions, we do not guide, as you know. As always, we appreciate when you are transparent about your octagonal estimates in order to assess the underlying expectations for the staff costs. Apart from that, we can only refer to historical patterns of the costs in Q3 versus Q2. Credit losses. The only thing we can say is that there have been no public disclosures that you might have missed for Q3. Finally, on capital, the reported CET1 ratio in Q2 was 18.4%, which was 350 basis points above the SREP.
What we have said is that the 50 basis points headroom to the target range will be reviewed continuously, and the ambition of the Bank is to eventually move into the 100 to 300 basis point target range above the SREP. When that is, we can't say at this point, though. With those final words, we are open for any questions you might have. Please raise your hand in the Teams app. Andreas, you were quick. You're first up. Please go ahead.
Yeah, hi, guys. I understand you're not going to guide on it exactly, but considering how the rates moved in Q2, when I guess we didn't see any of those much discussed timing effects. Now in the quarter, we, of course, had a June rate cut and now we had mid-early September rate cuts. Shouldn't this be a quarter where there should be timing effects regardless of the size? Is that how we should look at things?
To some degree, yes. At the same time, we refrain from providing any guidance, I'm afraid, as to the impact.
You didn't say in Q2 if there were no impact in Q2. I can't remember.
In Q2, we said that there were no impacts, and the rate cut came very, very late in the quarter, so it hardly had an effect at all. Thank you. All right, thanks. Namita, you're up next.
Hi, Peter. You know the increased risk-weighted asset flows in Norway on mortgages? Do you take that in Q3?
It's Andreas. We have no change to communicate in the matter. We're taking it into account as we have previously, but we haven't got any new information to date regarding the risk-weighted asset flaws in Norway.
Don't you like the increase, right? Don't you have to take additional RWAs?
From our perspective, we need decisions from the Swedish Financial Supervisory Authority since they are the relevant regulator from our perspective.
Okay, thanks.
I think what Andreas is saying is that if it doesn't come in Q3, it could potentially come in Q4, but there's a formal decision to be required from the FSA first. It's a bit of a technicality.
That's clear. Thank you.
Thank you. Sophie, you're up next.
Yeah, hi. I'm just following up on Namita's question. How much is the potential impact on the Norwegian risk-weighted asset increase?
We haven't guided on anything, and I have to do the math, and I haven't done it, so no comment. You have the volumes, and you have the previous risk-weighted flows in Norway.
Okay, we can do that.
The calculations. What about my second question, would be on the U.S. carry trade? How should we think about the impact from the Fed cut in the third quarter?
The only thing we can say regarding that is that we haven't changed anything when it comes to how we have structured the balance sheet or how we have conducted our funding activities, short and long-term, on group level.
Okay. Okay. We shouldn't expect any significant impacts from there.
I didn't say that. I just said that we haven't changed any strategy whatsoever regarding funding activities or structure of the balance sheet.
Okay. A final question, maybe not exactly related to the third quarter, but how should we think about the banking levies going forward? Do you have any news on the Single Resolution Fund fee for 2026? Will it go down, or will you continue to pay the SRF in 2026?
We haven't got any publicly available information from the Swedish Financial Supervisory Authority regarding the Single Resolution Fund fee for 2026. Just to state the obvious, we are moving closer and closer in time when the Single Resolution Fund should be filled. We haven't got any more information regarding the matter as of now.
Okay. That's very clear. Thank you.
Thank you, Sophie. Let's go to Namita again.
Sorry. Just a question on the wholesale funding. You have issued some SNP and some SP. I guess some has matured, but how should we think about wholesale funding costs? Is it linked to sort of like rates falling or just any color there would be helpful?
Yeah, I guess you are all aware of the fact that credit spreads in general are very, very tight in euros, U.S. dollars, and for that matter, also in the Swedish covered bond market, which is the cornerstone of our market funding activities. The tighter spreads, the lower funding costs for us as an issuer, all else equal. We have, to some extent, then benefited from that. We haven't changed the funding activities. It follows normal routines. We have been as active, for instance, in the Swedish covered bond market as previous quarters and historically. We have done two senior trades during the quarter, one in euros and one in U.S. dollars. It follows exactly normal funding routines, long-term funding routines.
Okay. Thank you.
All right. I don't see any raised hands, but I'll give you a few more moments to see if anyone has an additional question. That doesn't seem to be the case. Thank you very much, everyone, for listening in. If you have any follow-up questions, you know where to find us in the IRT. Thank you very much. Bye-bye.