Handelsbanken (SHB) Q2 2025 earnings summary

Executive summary

• Operating profit for Q2 2025 was SEK 7.2 billion, down 12% sequentially and year-over-year, with ROE at 13% and volume growth in all home markets.

• Sixth consecutive quarter of net credit loss reversals, reflecting strong asset quality.

• Costs remained stable and materially lower year-on-year, down 4–5% on an underlying basis despite inflation and efficiency measures.

• Low funding and liquidity risks, with a CET1 ratio of 18.4%, 3.5 percentage points above regulatory requirements.

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

Financial highlights

• Net interest income declined 6% sequentially to SEK 10.7 billion; net fee and commission income was SEK 2.9 billion, down 1% sequentially.

• Total income dropped 8% sequentially to SEK 13.6 billion; H1 total income was SEK 28.4 billion, down 8% year-over-year.

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

• Net credit loss reversals were SEK 219 million in Q2 and SEK 273 million for H1; credit loss ratio at -0.03% in Q2.

• Earnings per share were SEK 2.77 in Q2 and SEK 5.96 for H1, both down year-over-year.

Outlook and guidance

• Lending volume growth remains slow but has returned to positive territory in all home markets.

• Management expects income growth to resume as GDP and customer activity recover, supported by a strong branch network and cost control.

• Continued focus on cost efficiency and maintaining strong capital and liquidity positions.

• Dividend policy is to use the dividend as a residual to maintain CET1 targets.