Handelsbanken (SHB) Pre-Close Call summary

Executive summary

• Call focused on reiterating publicly available information and clarifying Q1 expectations without providing new guidance or undisclosed data.

• Emphasis on transparency for analysts' estimates ahead of the interim report, with no steering toward specific numbers.

Trading performance and revenue trends

• Volume growth in home markets remained subdued, as indicated by official statistics.

• Net interest income (NII) impacted by positive volume development but offset by negative funding and margin effects in the previous quarter.

• Swedish krona strengthened in Q1, creating a headwind for NII from FX movements.

• Savings-related fees track daily average stock market index, with other fee lines following historical seasonal patterns.

• NFT income line remains minor and volatile, averaging SEK 600 million per quarter.

Profitability and margins

• No specific guidance on margin development or NIM sensitivity due to multiple influencing factors.

• Day-count effect in Q1 (two days less than Q4) estimated at around SEK 100 million per day.

• Restructuring costs in Q4 were SEK 146 million, with most efficiency initiatives finalized by year-end.

• Annual salary revisions in Q1 typically align with labor union agreements; most Swedish staff are union members.

• Other operating expenses historically drop in Q1 due to seasonality.