Svenska Handelsbanken Ab Class A · OMXSTO:SHB_A
Svenska Handelsbanken Ab Class A — Q2 2024 Earnings Presentation
18 slides from Svenska Handelsbanken Ab Class A's earnings presentation, Jul 17, 2024
Slide 1: January – June 2024
January – June 2024 17 July 2024 1
Slide 2: Q2 2024 highlights
Q2 2024 ROE ▪ 15.2% ROE ▪ SEK 8.5bn in operating profit ▪ 41.5% C/I ratio ▪ 18.9% CET1 ratio, 400bp above SREP ▪ New more decentralised, efficient and business oriented organisation from April 1 ▪ One of the highest rated banks globally by rating agencies (raised outlook and confirmed Aa2 rating by
Slide 3: Key ratios
Key ratios: 41.5% C/I-ratio -0.02% Net credit loss ratio 15.2% ROE 18.9% CET1-ratio * Items affecting comparability consists of foreign exchange effects, Oktogonen, non-recurring items and special items. 3
Slide 4: Key ratios
Key ratios: 41.9% C/I-ratio -0.01% Net credit loss ratio 14.4% ROE 18.9% CET1-ratio * Items affecting comparability consists of foreign exchange effects, Oktogonen, non-recurring items and special items. 4
Slide 5: NII change
NII change: +1.4% Contribution from: ▪ FX effects: +0.8%-points ▪ Margins and funding: +0.4%-points SEK m 5
Slide 6: Net fee and commission income
SEK m CAGR: +6% Savings related* 69% of net fee and commissions Net fee and commission income SEK m SEK m CAGR: +4% Payment fees, net CAGR: +3% 15% SEK m Other, net CAGR: -3% 15% * Provisions from mutual funds, asset management, securities, and insurance. 6
Slide 7: Other expenses and staff costs
Other expenses, Staff costs incl depreciation & amortisation SEK m SEK m 3,990 3,935 * Excl. depreciations, amortisations and write offs 7
Slide 8: Credit loss ratio 1997 – 2023 and credit losses Q2 2022 – Q2 2024
Credit loss ratio 1997 – 2023 Credit losses Q2 2022 – Q2 2024 Credit loss SEK m ratio 0.01% -0.01% 0.01% 0.01% 0.00% 0.00% 0.00% -0.01% -0.02% * SEB, Nordea, Swedbank, Danske bank and DNB. 8
Slide 9: Strong capital position above the bank's target range
SEK bn Long term target Strong capital position with CET1 ratio: range 15.9 – 17.9% 400 bp above the FSA minimum requirement 100 bp above the bank’s target range Outlook 2024: Anticipated dividends to align the CET1 ratio at 400bp above the regulatory requirement Anticipated dividends of SEK 5.2 per
Slide 10: Norway, Sweden, United Kingdom, The Netherlands
Norway Sweden 9% of operating profits in the group 76% of operating profits in the group Q2 2024 vs Q1 2024: Q2 2024 vs Q1 2024: ▪ Operating profit SEK 0.7bn ▪ Operating profit SEK 6.5bn ▪ Operating profit qoq +37% ▪ Operating profit qoq +2% ▪ C/I ratio 46.4% (51.8) ▪ C/I ratio 30.1% (30.8) ▪ Return
Slide 11: Solid earnings in Q2
Solid earnings in Q2 Higher income, lower costs, net credit loss reversals New more business oriented organisation in place Efficiency initiatives initiated with continued work ahead Solid financial position enables growth potential 11 Handelsbanken
Slide 12: Appendix
Appendix Handelsbanken
Slide 13: Key ratios
Key ratios: 41.5% C/I-ratio -0.02% Net credit loss ratio 15.2% ROE 18.9% CET1-ratio 13
Slide 14: Key ratios
Key ratios: 41.9% C/I-ratio -0.01% Net credit loss ratio 14.4% ROE 18.9% CET1-ratio 14
Slide 15: Net effect of margins and funding costs
Net effect of margins and funding costs SEK 50m 15
Slide 16: Expected credit losses
▪ Expert based addon SEK +75m ▪ Rating migrations SEK -88m ▪ Better quality on new loans compared to exits SEK +39m ▪ Other (incl. effects from change in loan durations and migrations to stage 3) SEK +74m Expected credit losses Credit losses Credit losses, net Stage 3, net SEK m SEK m SEK 133m SEK m
Slide 17: CET1 ratio and REA
CET1-ratio REA Capital REA generation effects % SEK bn 17
Slide 18: Disclaimer
Disclaimer Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or pe
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