Good afternoon, everyone, and welcome to this call ahead of our Silent Period that starts on January 8th. This is Peter Grabe, Head of Investor Relations, speaking, and with me today, I have the Investor Relations team consisting of Lars Kenneth Dahlqvist, Andreas Skogelid 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's not publicly known, or any new guidance. The aim of this call is rather 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 Q4. If you would like to ask a question, please raise a hand within the Teams app. First, to start off, as we stated in the Q3 report, the change to the Swedish Riksbank Act, effective from January 1st, 2025, allows the Riksbank to demand a certain amount of interest-free deposits from Swedish banks and other credit institutions operating in Sweden for the purpose of restoring the Riksbank's equity and to contribute to the funding of its ongoing operations. The scale of the interest-free deposits is based on a proportion of the respective institution's deposit base, comprised of its deposits and issued debt securities. As determined by the Riksbank, the requirement for interest-free deposits from Handelsbanken, including Stadshypotek, amounts to SEK 8.4 billion, which will be recognized starting upon implementation on October 31st, 2025.
In Q4, we will book the exempt interest on these funds for the full period until the next Riksbank decision in July on the P&L line Government Fees, i.e., eight months of the central bank deposit rate times the interest-free deposit amount of around SEK 8.4 billion. Second, again, as stated in the Q3 report, the Swedish FSA has resolved to recognize the Norwegian Ministry of Finance's decision to raise the average risk weight floor for Norwegian mortgages from 20% to 25% as of December 31st, 2025. Based on the bank's lending volumes at the end of the third quarter, the higher risk weights correspond to approximately SEK 7 billion in additional risk exposure amounts. Now let's go through the respective lines and start with the NII. First, in terms of volume development, we can only refer to the official statistics, such as Statistics Sweden.
The general observation is that volumes slightly picked up in October on the Swedish mortgage side, while corporate lending growth remains muted. What we have otherwise stated in the Q3 report was that we see signs of volumes gradually picking up in the UK and the Netherlands, while remaining muted in Norway. Second, in terms of margin development and net interest margin sensitivity, we don't guide, as you know, as it's challenging to have a clear view of the net of several factors affecting, such as funding, competition, mixed effects, etc. But again, just to reiterate what we have said generally, lower policy rates burden the transaction account deposit margins, and as you know, there have been a few policy rate cuts in Q3.
In August, there was a 25 basis point cut in the UK, and in late September in Sweden and Norway, there were also 25 basis point cuts of the policy rates. But as always, the bank can sometimes be able to adjust other rates, such as lending rates or rates on term deposits, that potentially partly could offset the negative effects. But we cannot guide you on the net of the effects in this quarter. J ust to remind, in the previous quarter, we did not state any specific one-off related effects to the net interest margins. Third, on the NII, in Q4, there should be no day count effect. F inally, on NII, in terms of FX, the Swedish Krona has strengthened compared to the currencies in the other home markets where we operate, which should mean a headwind to sequential NII development.
As always, when assessing the FX impact on the P&L lines, look at the average FX level in the quarter compared to the previous and take that times the P&L line in local currency in the respective segments. Then 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, however, of course, several other factors affecting the savings-related fees, such as level of inflows, mixed effects, etc. But we can note that the daily average of the stock market indices are up somewhat in Q4 compared to Q3. In terms of the development of the other fee lines, we can only refer to the historical seasonal patterns.
Moving on to NFT, the NFT line is a minor income line, as you know, and has averaged around SEK 500 million-SEK 600 million per quarter over the past few years. However, as seen in the past and in Q2 this year in particular, it can vary by a few hundreds of millions in between quarters when, for example, credit spreads, interest rates, and currencies are particularly volatile. There's nothing specific that has occurred in Q4 that we can highlight. Then the cost lines. Just like on the income side, it's fairly easy to get a sense of the FX impact also on the cost side. As mentioned previously, the Swedish krona has strengthened, which should mean slightly lower costs in our foreign home markets in Swedish krona terms.
In terms of potential Oktogonen provisions, we do not guide, as you know, but as always, we appreciate when you're transparent about your Oktogonen estimates in order to assess the underlying expectations for your staff cost estimates. Apart from that, we can only refer to the historical patterns of the costs in Q4 compared to Q3. Credit losses. The only thing we can say is that there have been no public disclosures that you might have missed for Q4. Finally, on capital, the reported CET1 ratio in Q3 was 18.2%, which was 350 basis points above the SREP requirement. What we have said is that the 50 basis point headroom to the target range of 100 to 300 basis points above the SREP will be reviewed continuously, and the ambition of the bank is to eventually move back into the target range.
But when that is, we can't say at this point, though. In the full year report in Q4, the board will, as always, communicate a dividend proposal to the AGM based on a holistic assessment of the current forward-looking capital situation. We have no other remarks than that in terms of capital. W ith those final words, we take a short break, and then we open up for questions if there are any raised hands. I can't see any raised hands. Oh, here we go. Magnus, please go ahead.
Yes, just one question that you probably won't answer, but it's very strange for us that you still reiterate your target, 100-300 basis points, but remains above, and you said you can't say when you will lower it within your buffer range. My question is, can you say anything about what we should look for that could trigger such a move? Because now it seems like we don't know anything.
I'm afraid I'm going to have to answer just as you have predicted. We really have no comments to make on that point, I'm afraid. We said that we will go back into the target range over time, and that's the last phrasing.
Okay.
All right. Any other questions? I see no raised hands. Well, it doesn't seem to be any more questions. If you would have any such, you know where to reach us, and we'll be happy to discuss with you after this call, of course. W ith those words, a big thank you to you all for listening in. I f we don't speak ahead of Christmas, we wish you all a very, very nice and relaxing holiday. Thank you very much.