Handelsbanken’s Interim Report January – June 2024

Q2 2024
(Q1 2024)

• Operating profit increased to SEK 8,511m (8,267).
• Return on equity increased to 15.2% (13.7).
• Earnings per share increased to SEK 3.43 (3.33).
• The C/I ratio improved to 41.5% (42.2).
• The credit loss ratio was -0.02% (-0.01).
• The common equity tier 1 ratio was 18.9% (18.8).
• The anticipated dividend was SEK 4.00 per share, equivalent to 116% of profit for the quarter.

January – June 2024

(January – June 2023)

• Operating profit was SEK 16,778m (17,357).
• Return on equity was 14.4% (15.6).
• Earnings per share amounted to SEK 6.77 (7.03).
• The C/I ratio was 41.9% (37.8).
• The credit loss ratio was -0.01% (0.01).
• The common equity tier 1 ratio was 18.9% (19.8).
• The anticipated dividend was SEK 5.20 per share, equivalent to 78% of profit for the period.

 
A stable quarter, with improved return on equity in all home markets
Income increased as net interest margins recovered and asset management and payment commissions increased. Expenses decreased and again net recoveries of credit losses were reported. Both the C/I ratio and return on equity improved. In the Bank’s Norwegian operations, a new management group has taken measures with a focus on profitable growth. With balanced business growth, margin-driven increase in net interest income, and reduced expenses, the Norwegian operations reported improved earnings and return on equity during the quarter.

Measures taken to enhance efficiency

Actions were taken during the second quarter to improve efficiency. Group-wide functions have been streamlined and downsized, business support units have been rationalised and organised closer to the business-generating activities. During the quarter, agreements were reached with just over 200 employees regarding the termination of their employment, giving rise to a restructuring charge of just above SEK 300m. Around half of these individuals remained employed until the final day of the quarter, and the remainder will conclude their employment during the second half of the year. In addition, we have scaled back by 15% on agreements with external consultants during the quarter, corresponding to the equivalent of around 160 consultants. A lower cost base in business support units sharpens the Bank’s competitive edge, and this efficiency work will continue throughout the rest of the year.

 

Stability, a long-term approach and a position of financial strength

The Bank’s robust financial position, together with a business model based on a local presence, long-term approach and decentralisation, creates good conditions for the Bank to achieve profitable growth and high customer satisfaction. Demonstrating the strength of the Bank’s business model, low level of risk and financial stability, Moody’s raised the Bank’s outlook from negative to stable, and confirmed the Bank’s Aa2 rating. Credit ratings from the leading rating agencies put the Bank in a class with but a few others across the globe, sharing the highest combined rating.

 

 

    * Items affecting comparability consist of foreign exchange effects, non-recurring items and special items, which are presented in the tables on page 5 and 7.

 
The slide presentation for today’s press conference will be available at 07:00 a.m. CET at handelsbanken.com/ir

 

For further information, please contact:

Michael Green, President and Chief Executive Officer

Tel: +46 (0)8 22 92 20

 

Carl Cederschiöld, CFO

Tel: +46 (0)8 22 92 20

 

Peter Grabe, Head of Investor Relations

Tel: +46 (0)70 559 11 67, [email protected]

 

This information is of the type that Handelsbanken is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication through the agency of the contact person set out above, at 07:00 a.m. CET on 17 July 2024.

For more information about Handelsbanken, please go to: handelsbanken.com