Handelsbanken

Q4 2024

(Q3 2024)
 

• Operating profit increased to SEK 9,177m (9,061).
• Return on equity was 14.2% (15.6).
• Earnings per share amounted to SEK 3.46 (3.64).
• The C/I ratio was 39.7% (38.3).
• The credit loss ratio was -0.03% (-0.02).
• The common equity tier 1 ratio was 18.8% (18.8).

January – December 2024

(January – December 2023)
 

• Operating profit was SEK 35,016m (36,322).
• Return on equity was 14.6% (15.9).
• Earnings per share amounted to SEK 13.86 (14.70).
• The C/I ratio was 40.4% (37.2).
• The credit loss ratio was -0.02% (0.01).
• The common equity tier 1 ratio was 18.8% (18.8).
• The Board of Directors proposes an ordinary dividend of SEK 7.50 (6.50) per share and a special dividend of SEK 7.50 (6.50) per share.

 
Stable profitability based on robust income and improved cost effectiveness
Operating profit improved continuously from the year’s first quarter onward. Income grew, measures were taken to improve cost efficiency and net credit loss reversals increased. Net interest income was stable in spite of the negative margin effects due to reduced central bank policy rates. A continued strong development of the savings business contributed to net fee and commission income reaching its highest ever level during the year. In order to strengthen Bank’s efficiency and competitiveness, efforts have been made since the start of the year to identify potential efficiency improvements, mainly within central and business support units, and to then implement these. The Bank’s total staffing (i.e. the number of employees plus external resources) decreased by a net amount of 778 people, or 6%, from the first quarter, despite increased staffing in the branch operations as a response to increasing customer activity. The majority of the identified efficiency initiatives had been implemented by the end of the year, not only reducing the overall level of costs but also further strengthening the Bank’s cost culture.

Enhanced local presence at around 20 new locations and business growth with satisfied customers

During the year, the Bank was the largest player in terms of net inflows in the Swedish mutual fund market. Customer and advisory activity for both private and corporate customers increased during the year, and during Q4 lending volumes again increased in all of the home markets – for the first time in almost 5 years. Increased customer activity and demand to physically meet the Bank locally, led to the Bank expanding the availability of advisory meetings and other services at some 20 new locations across Sweden during the year. The Bank also continued to strengthen the availability of specialists at local branches, in areas such as Private Banking and occupational pensions. Independent surveys show that the Bank also in 2024 had more satisfied customers than the average among comparable peers in the home markets, among both private and corporate customers. Handelsbanken was also named Sweden’s “Business Bank of the Year” and – for the thirteenth consecutive year – “Small Enterprise Bank”.

Increased dividend and strong financial position

The Bank distiguishes itself as one of the world’s most stable banks, which is reflected in the fact that no other privately owned bank in the world has a higher overall credit rating from the leading rating agencies. The explanation lies in a locally connected, long-term oriented, and customer-centric business model with a low risk tolerance and a strong financial position. The Bank’s long term target range for the common equity tier 1 ratio is 1-3 percentage points above the regulatory requirement set by the Swedish Financial Supervisory Authority. Given the prevailing surrounding environment and in order to underscore Handelsbanken’s position as a first-class counterparty and one of the world’s safest banks, the dividend proposed to the Annual General Meeting is at a level entailing a common equity tier 1 ratio just under 4 percentage points above the regulatory requirement. Re-assessments of the appropriate capital level will be made on an ongoing basis.

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

Information regarding the press conference and telephone conference

A press conference will be held on 5 February 2025 at 08:30 a.m.

Press releases, presentations, a fact book and a recording of the press conference will be available 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, peter.grabe@handelsbanken.se

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 5 February 2025.

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