Q4 2025 Svenska Handelsbanken AB Earnings Call Transcript
Key Points
- Svenska Handelsbanken AB (SVNLF) reported a solid fourth quarter with net profits from continuing operations up slightly compared to Q3 and a return on equity of 13%.
- The savings business performed well with strong inflows, and assets under management reached an all-time high in home markets.
- The bank has maintained strong asset quality with eight consecutive quarters of net credit loss reversals.
- The Board proposes a dividend of SEK17.50 per share, reflecting a strong financial position.
- The bank's CET1 ratio of 17.6% is 2.85% above the regulatory requirement, indicating a robust capital position.
- Operating profits were down marginally, and adjusted for currency effects, the net interest income (NII) declined by 3% due to negative margin effects.
- Total income dropped by 9% for the full year 2025 compared to 2024, primarily due to central bank policy rate cuts affecting margins.
- The NII was burdened by a higher-than-expected deposit guarantee fee, impacting the financial results.
- Corporate lending volumes in Sweden remain stagnant, with expectations for recovery tied to general economic growth.
- The bank faces fierce competition in the Norwegian mortgage market, impacting lending and deposit volumes.
Good morning, everyone, and welcome to this presentation of Handelsbanken's results for the fourth quarter and full year of 2025.
The bank reported a solid fourth quarter with net profits from continuing operations, up slightly compared to Q3 and a return on equity of 13%. The savings business continued to perform well with strong inflows in customer savings. Assets under management reached an all-time high in our home markets. Household lending has started to grow again in most of our home markets. And in the UK and the Netherlands, we now have also seen several quarters with steadily growth also in corporate lending.
All in all, the income increased in the quarter, while the normal seasonal pickup in expenses was fairly modest. Asset quality remained very strong, and we added yet another quarter with net credit loss reversals, bringing the consecutive count to eight quarters in a row with net reversals.
So given the solid asset quality and strong financial position of the bank, the Board proposes a
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