Q1 2026 Svenska Handelsbanken AB Earnings Call Transcript
Key Points
- Svenska Handelsbanken AB (SVNLF) reported a 9% increase in operating profit compared to Q4, with a return on equity (ROE) of 14%.
- The bank's lending growth in the UK and the Netherlands continued to be strong, both in household and corporate sectors.
- The savings business performed well, with market shares of net inflows into mutual funds exceeding the market share in both Sweden and Norway.
- Expenses declined, demonstrating strong cost efficiency, and the bank maintained a robust capital position with a CET1 ratio of 17.2%.
- Asset quality remained very strong, with insignificant credit losses, and the bank's credit rating was upgraded by Moody's to A1, placing it among the highest-rated banks globally.
- Lending growth in Sweden was flat due to slow economic growth, impacting overall lending volumes.
- Net interest income (NII) declined by 13% year-on-year, affected by lower margins due to lower short-term market rates.
- Operating profit declined by 12% on an underlying basis, despite a 9% increase in reported figures.
- The bank's cost/income ratio increased to 42.8% on an adjusted basis, indicating pressure on profitability.
- There was a 50 basis points negative impact on the CET1 ratio from other factors, including claims on investment banking settlements.
(audio in progress) 2026. We can conclude that the bank reported yet another solid quarter. Operating profit increased by 9% compared to Q4 and the ROE amounted to 14%. The main income lines, NII and fee and commissions were stable. While the lending growth in Sweden was held back a bit by a general slow Swedish economic growth, -- it was, again, very encouraging to see that the lending growth trend in the UK and the Netherlands continued both on the household and on the corporate side.
This has now been a consistent trend for more than a year. The savings business continued to perform well with market shares of net inflows into mutual funds far exceeding the market share in our books in both Sweden and in Norway. Cost efficiency is always a top priority in the bank.
And again, we saw expenses declining. The net asset quality remained very strong with more or less insignificant credit losses once again. The capital remains robust. The anticipated dividends for the quarter earnings were increased a bit in order
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