Handelsbanken (SHB) Q3 2025 earnings summary

Executive summary

• Q3 2025 operating profit rose 8% sequentially to SEK 7,768m, with ROE at 13.3% and cost/income ratio at 40.5%, reflecting increased income and decreased costs.

• Net credit loss reversals continued for the seventh consecutive quarter, supporting strong asset quality.

• CET1 ratio stood at 18.2%, 350bp above regulatory requirements, reflecting a robust capital position.

• Customer satisfaction remains high, with top rankings in digital offerings and local presence.

• Anticipated dividend for the first nine months is SEK 10.65 per share, representing 119% of profit for the period.

Financial highlights

• Q3 2025 total income was SEK 14,121m, up 4% sequentially; expenses decreased 5% to SEK 5,715m.

• Net interest income in Q3 2025 declined 2% to SEK 10,468m; net fee and commission income rose 4% to SEK 2,979m.

• For Jan–Sep 2025, operating profit was SEK 23,068m, down 11% year-over-year; net interest income fell 7% and total income declined 8%.

• Net credit loss ratio remained at -0.01% for both Q3 and Jan–Sep 2025.

• Net credit loss reversals totaled SEK 35m in Q3 and SEK 308m for the nine months.

Outlook and guidance

• Positive signs of lending growth in the UK, Netherlands, and Swedish mortgage market.

• Management expects household and corporate lending demand to pick up as macro conditions improve.

• Fiscal stimulus and lower rates are anticipated to support household sentiment and investment.

• Signs of volume growth and improved cost/income ratio are expected to support future earnings.

• Ongoing focus on efficiency and cost control is expected to support profitability.