Handelsbanken (SHB) Q3 2021 earnings summary

Executive summary

• Jan–Sep operating profit rose 26% to SEK 18,154m; excluding FX, Oktogonen and prior-year comparability items, growth was 14%.

• Q3 operating profit increased 9% QoQ to SEK 6,554m; adjusted for FX and Oktogonen, growth was 4%.

• Income growth, higher fee income and lower credit losses supported earnings; cost-reduction work continued according to plan.

Financial highlights

• Jan–Sep income increased 6% YoY to SEK 34,709m; excluding FX, it rose 7%.

• Jan–Sep net income was SEK 14,307m, up 28%; Q3 net income was SEK 5,193m, up 10% QoQ.

• Jan–Sep net fee and commission income rose 16% to SEK 9,175m; Q3 increased 3% QoQ to SEK 3,157m.

• Jan–Sep expenses fell 7% to SEK 16,554m reported; adjusted for FX, Oktogonen and comparability items, expenses rose 3%, driven by development costs.

Outlook and guidance

• Cost-reduction measures were progressing according to plan, with no abatement; development costs were the source of underlying expense growth.

• A process was initiated to divest the Denmark and Finland operations following the decision to cease operations in both markets.