Handelsbanken (SHB) investor relations material

Executive summary

• Q3 operating profit was SEK 7,353m, up 10% QoQ; total income rose 4%, expenses fell 1% and net profit increased 10% to SEK 5,753m.

• Operating profit increased in all home markets; Q3 ROE was 13.5% and the net credit loss ratio was 0.00%.

• Lending and deposits grew QoQ; AUM reached SEK 1,508bn, supported by market values and net inflows.

Financial highlights

• Q3 total income was SEK 13,959m; net interest income was SEK 10,051m and fee and commission income rose 6% QoQ to a record SEK 3,330m.

• Q3 lending and deposit growth added SEK 87m to NII, while margin and funding effects reduced it by SEK 194m; NII was marginally higher QoQ but lower adjusted for currency effects.

• Q3 net gains on financial transactions rose to SEK 515m from SEK 116m QoQ, including improved funding and liquidity valuation effects.

• Jan-Sep NII declined 9% YoY to SEK 30,075m; fee and commission income rose 9% to SEK 9,538m.

• Jan-Sep operating profit was SEK 22,226m, down 3% YoY and 8% adjusted for comparability items; net profit was SEK 17,339m, down 2%.

Outlook and guidance

• Household PD models are expected to be implemented in Q4 2026; the capital requirement is expected to fall by ~SEK 3bn net of removal of the related Pillar 2 requirement.

• Long-term CET1 target is 17.0%, with a 15.5–17.5% target range; no fixed management buffer or dividend level was guided.

• Organic growth remains preferred; M&A is not ruled out, but no transactions are currently under consideration.

• Internal macroeconomic forecasts indicate one or two rate hikes; lending offers and customer activity will be adapted to observed behavior.