Handelsbanken (SHB) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw ROE rise to 15.6% from 15.2% in Q2, with operating profit up 6% sequentially to SEK 9.1 billion, supported by higher income, lower costs, and net credit loss reversals.

• Customer satisfaction remains high, with top scores among private and corporate clients in all home markets and multiple awards in Sweden.

• Financial position remains robust, with a CET1 ratio of 18.8%, 400 basis points above regulatory requirements.

• Operating profit for Jan–Sep 2024 was SEK 25,839m, down 5% year-over-year, but Q3 profit rose 6% sequentially.

Financial highlights

• Q3 2024 operating profit rose 6% sequentially to SEK 9,061m; net profit increased 6% to SEK 7,210m.

• Net interest income for Q3 was SEK 11,763m (flat q/q); net fee and commission income up 1% to SEK 2,966m quarter-over-quarter.

• Total expenses fell 7% sequentially in Q3; cost-income ratio improved to 38.3% from 41.5%.

• Net credit loss recoveries amounted to SEK 141 million in Q3, with a net credit loss ratio of -0.02%.

• For Jan–Sep, ROE was 14.8%, cost-income ratio 40.7%, and expenses increased by 10% due to salary inflation and higher staff costs.

Outlook and guidance

• Management expects continued efficiency improvements and cost reductions, with further initiatives planned.

• The Banking Package (Basel III implementation) is expected to have a neutral or slightly positive effect on risk exposure amounts from 2025.

• Dividend guidance will be updated in Q4, with a holistic assessment by the board; anticipated dividend for Jan–Sep is SEK 9.20 per share (88% of profit for the period).

• CET1 capital buffer to be maintained at 400 basis points above regulatory requirement through 2024.