Svenska Handelsbanken Ab Class A · OMXSTO:SHB_A
Svenska Handelsbanken Ab Class A — Q3 2024 Earnings Presentation
19 slides from Svenska Handelsbanken Ab Class A's earnings presentation, Oct 23, 2024
Slide 1: January – September 2024
January – September 2024 23 October 2024 1
Slide 2: Q3 2024 highlights
Q3 2024 ROE ▪ 15.6% ROE ▪ SEK 9.1bn in operating profit 15.6% 15.2% ▪ Income up, costs down and net credit loss reversals 13.7% ▪ 38% C/I ratio ▪ 18.8% CET1 ratio, 400bp above SREP ▪ High customer satisfaction levels in all home markets 2
Slide 3: Key ratios: Q3 2024
Key ratios: 38.3% C/I-ratio -0.02% Net credit loss ratio 15.6% ROE 18.8% CET1-ratio * Items affecting comparability consists of foreign exchange effects, Oktogonen, non-recurring items and special items. 3
Slide 4: Key ratios: January–September 2024
Key ratios: 40.7% C/I-ratio -0.02% Net credit loss ratio 14.8% ROE 18.8% CET1-ratio * Items affecting comparability consists of foreign exchange effects, Oktogonen, non-recurring items and special items. 4
Slide 5: NII change
NII change: +0% Contribution from: ▪ Day count effect: +1%-points ▪ Margins and funding: -1%-points SEK m 5
Slide 6: Net fee and commission income
SEK m Savings related* CAGR: +9% 68% of net fee and commissions Net fee and commission income SEK m SEK m Payment fees, net CAGR: 0% CAGR: +5% 15% SEK m Other, net CAGR: -3% 16% * Provisions from mutual funds, asset management, and insurance 6
Slide 7: Strong and persistent net inflow
Strong and persistent net inflow 23% Handelsbanken Market share of net inflows SEK +322bn 2011-2024 (Sep)
Slide 8: Total expenses and FTE + external resources
Total expenses* FTE + external resources** SEK m Total staff 6,400 13,600 6,200 13,349 13,400 6,000 13,200 5,800 13,000 12,908 5,600 12,800 5,400 12,600 5,200 12,400 5,000 4,800 12,200 4,600 12,000 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324 * Excluding
Slide 9: Credit loss ratio 1997 – 2024
Credit loss ratio 1997 – 2024** Credit losses Q3 2022 – Q3 2024 Credit loss SEK m ratio -0.01% 0.01% 0.01% 0.00% 0.00% 0.00% -0.01% -0.02% -0.02% * Average for SEB, Nordea, Swedbank, Danske bank and DNB ** Jan-Sep 2024 for Handelsbanken and Jan-June 2024 for comparable banks 9
Slide 10: CET1 ratio, capital and anticipated dividends
SEK bn 400 bp above the FSA minimum requirement Long term target range 100 bp above the Bank’s target range 15.8 – 17.8% Outlook 2024: Anticipated dividends to align the CET1 ratio at 400bp above the regulatory requirement Anticipated dividends: ▪ Jan-Sep 2024: SEK 9.20 per share (88% of earnings) ▪
Slide 11: Results by home market: Norway, Sweden, UK, Netherlands
Norway Sweden 8% of Group operating profits 74% of Group operating profits Q3 2024 vs Q2 2024: Q3 2024 vs Q2 2024: ▪ Operating profit SEK 0.7bn ▪ Operating profit SEK 6.7bn ▪ Operating profit qoq +5% ▪ Operating profit qoq +3% ▪ C/I ratio 43.5% (46.4) ▪ C/I ratio 28.0% (30.1) ▪ Return on allocated c
Slide 12: Summary
▪ Higher income, lower costs, net credit loss reversals ▪ Increased ROE ▪ High customer satisfaction ▪ Strong financial position 12
Slide 13: Appendix
Appendix Handelsbanken
Slide 14: Key ratios: Q3 2024
Key ratios: 38.3% C/I-ratio -0.02% Net credit loss ratio 15.6% ROE 18.8% CET1-ratio 14
Slide 15: Key ratios: January–September 2024
Key ratios: 40.7% C/I-ratio -0.02% Net credit loss ratio 14.8% ROE 18.8% CET1-ratio 15
Slide 16: Net effect of margins and funding costs
Net effect of margins and funding costs SEK -109m 16
Slide 17: Expected credit losses
▪ Expert based add-on SEK +76m ▪ Rating migrations SEK -26m ▪ Better quality on new loans compared to exits SEK +33m ▪ Other (incl. effects from change in loan durations and migrations to stage 3) SEK +42m Expected credit losses Credit losses Credit losses, net Stage 3, net SEK m SEK m SEK 133m SEK
Slide 18: CET1 ratio and REA
CET1-ratio REA Capital REA effects effects % SEK bn Including effect from sale of operations in Finland of SEK 2bn 18
Slide 19: Disclaimer
Disclaimer 19 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
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