Handelsbanken (SHB) Q2 2025 earnings summary

Executive summary

• Q2 2025 operating profit was SEK 7.2 billion, with ROE at 13%, stable sequentially, and volume growth in all home markets despite income declines from rate cuts, lower fees, and SEK appreciation.

• Cost base remained stable and materially lower year-on-year, with underlying costs down 4–5% due to efficiency measures and lower headcount.

• Net credit losses saw reversals for the sixth consecutive quarter, highlighting strong asset quality and prudent risk management.

• CET1 ratio was 18.4%, 3.5 percentage points above regulatory minimum and 50bps above long-term target.

• Dividend of SEK 7.15 per share accrued for H1, representing 120% of earnings generated.

Financial highlights

• Q2 2025 operating profit was SEK 7,164m, down 12% sequentially and year-over-year; total income dropped 8% quarter-on-quarter.

• Net interest income declined 6% to SEK 10.7 billion quarter-on-quarter, or 4% adjusted for FX; net fee and commission income down 1% to SEK 2.87 billion.

• H1 2025 net interest income was SEK 22,036m, down 6% year-over-year; net fee and commission income rose 1% to SEK 5,766m.

• Cost-to-income ratio was 44% in Q2 and 42% for H1, reflecting improved efficiency.

• Net profit for Jan-Jun 2025 was SEK 11,811m, a 12% decrease from the previous year.

Outlook and guidance

• Lending volume growth remains slow but positive in all markets, with a slight pickup in corporate client activity.

• Management expects income growth to follow economic recovery, with cost control supporting future earnings growth.

• Focus remains on cost efficiency and maintaining strong capital and liquidity positions.