Q2 2026 Svenska Handelsbanken AB Earnings Call Transcript
Key Points
- Svenska Handelsbanken AB (SVNLF) reported a solid operating profit of SEK 6.7 billion with a return on equity (ROE) of nearly 13% for the second quarter.
- The bank experienced business growth with increases in lending, deposits, and assets under management, alongside stable net interest income (NII) and expenses.
- Fee and commission income reached near all-time highs, driven by strong performance in the savings business.
- Asset quality remains robust with a credit loss ratio of 0%, indicating prudent risk management.
- The bank's financial position is strong, with a CET1 ratio 250 basis points above the regulatory minimum, allowing for anticipated dividends equating to 82% of profits.
- Operating profit decreased by 6% due to negative valuation effects on derivatives, impacting net financial income (NFI).
- The bank faces margin pressure in Sweden, both in the mortgage and corporate sectors, due to competitive dynamics.
- In Norway, increased low-margin competition has led to a drop in volumes, although deposits have increased.
- The bank's lending growth in Sweden has been flat over the past year, lagging behind the market's growth rate.
- Regulatory fees increased by 11% due to mandatory interest-free deposits at the central bank, impacting overall expenses.
Good morning everyone and welcome to this presentation of Handelsbanken's results for the second quarter and the first half of 2026.
The second quarter was yet another solid quarter for the bank, operating profit was _____ SEK6.7 billion and the ROE almost 13%.
We saw business growth with lending deposits and assets under management growing in the quarter, both NII and expenses were stable and fee and commission grew to close to all-time high, mainly thanks to continued strong progress in our savings business.
Income reached 13.5 billion and with expenses of _____ SEK6 billion the C/I ratio was 44%.
Asset quality remains solid and the credit loss ratio was 0.
And as always, the financial position of the bank was robust.
After deducting deduction of anticipated dividends for the first half year of SEK4.777 per share, equivalent to 82% of the profits for the period, the CET1 ratio was 250 basis points above the regulatory minimum.
In other words, within the target range of 100 to 300 basis points above the
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