Svenska Handelsbanken Ab Class A · OMXSTO:SHB_A

Svenska Handelsbanken Ab Class A — Q4 2024 Earnings Presentation

20 slides from Svenska Handelsbanken Ab Class A's earnings presentation, Feb 5, 2025

  1. Slide 1: Handelsbanken January – December 2024

    Handelsbanken January – December 2024 5 February 2025 1

  2. Slide 2: Highest Q4 operating profit so far

    Highest Q4 operating profit so far Q4 2024  SEK 9.2bn in operating profit Operating profit SEK bn  14.2% ROE 10 9.1 9.2  39.7% C/I ratio 8 7.6 6.4  Resilient income and continued focus on cost efficiency 6  Net credit loss recoveries 4  18.8% CET1 ratio, almost 400bp above SREP 2  Proposed di

  3. Slide 3: Financial summary Q4 2024

    Key ratios: Financial summary Q4 2024 compared to previous quarter 39.7% C/I-ratio Adjusted for items affecting SEK m Q4 2024 Q3 2024 Change comparability* Net interest income 11,745 11,763 0% -1% -0.03% Net fee and commission income 3,067 2,966 3% 3% Net credit loss ratio Total income 16,025 15,545

  4. Slide 4: Financial summary Jan-Dec 2024

    Key ratios: Financial summary Jan-Dec 2024 compared to previous year 40.4% C/I-ratio Adjusted for Full year Full year items affecting SEK m 2024 2023 Change comparability* Net interest income 46,841 47,578 -2% -2% -0.02% Net fee and commission income 11,726 11,139 5% 5% Net credit loss ratio Total i

  5. Slide 5: Net interest income development

    NII change: 0% Net interest income development Contribution from: Q4 2024 compared to previous quarter  Volumes: +1%-points  Margins and funding: -2%-points SEK m  FX-effects: +1%-points 11,900 11,850 105 11,800 11,750 -218 17 11,700 70 11,650 0 8 11,600 11,763 11,745 11,550 11,500 11,450 11,400

  6. Slide 6: Net fee and commission income

    SEK m 2,200 Net fee and Savings related* 2,100 2,000 CAGR: +10% commission income 68% of net fee and 1,900 1,800 1,700 2,076 commissions 1,819 1,600 1,717 Net fee and commission income 1,500 Q4 Q4 Q4 2022 2023 2024 SEK m SEK m 1,000 3,200 900 800 3,100 700 Payment fees, net CAGR: +4% 3,000 CAGR: +7%

  7. Slide 7: Savings business in Sweden

    Savings business in Sweden Accumulated net inflows in Strong and persistent net inflow Swedish mutual fund market* SEK bn 400 24% Market share of net inflows Handelsbanken 350 SEK +346bn 2011-2024 300 250 200 Largest in the market in 2024 with 18% 150 market share of net inflows 100 Peer 1-9 50 0 -5

  8. Slide 8: Expenses and staff

    Expenses and staff Staff costs + Other expenses Total staffing* SEK m Number of staff 6,000 13,600 5,900 13,400 5,800 13,200 13,000 5,700 12,800 5,600 12,600 5,500 12,400 5,400 13,276 12,200 5,300 5,600 5,627 12,000 12,571 5,200 11,800 5,100 11,600 5,000 11,400 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q32

  9. Slide 9: Net credit losses

    Net credit losses Credit loss ratio 1997 – 2024** Credit losses Q4 2022 – Q4 2024 Credit loss SEK m ratio 1.20% Handelsbanken Comparable Nordic banks* -1,200 1.20% 1.00% -1,000 1.00% -800 0.80% 0.80% -600 0.60% 0.60% -400 0.40% 0.40% -200 0.20% 0.20% 0 0.00% 0.01% 0.01% 0.00% 0.00% 0.00% -0.01% -0.0

  10. Slide 10: CET1 ratio and regulatory requirement

    CET1 ratio and regulatory requirement Q4 2024 SEK bn 20% 18.8% 160 19% 18% Long term target 17% 140 range Strong financial position: 16% 15.9 – 17.9% 14.9%  Almost 400bp CET1 ratio above the FSA requirement 15% 120  Almost 100bp above the long term target range 14% 13% 12% 100 11% Proposed dividen

  11. Slide 11: Home markets

    Home markets Norway Sweden 10% of Group operating profits 69% of Group operating profits Q4 2024 vs Q3 2024: Q4 2024 vs Q3 2024:  Operating profit SEK 0.9bn  Operating profit SEK 6.4bn  Operating profit, qoq +18%  Operating profit, qoq -5%  C/I ratio 41.2% (43.5)  C/I ratio 30.5% (28.0)  Retu

  12. Slide 12: Q4 in sum

    Q4 in sum  Resilient income  Delivery on efficiency initiatives materialising in the cost base  Solid asset quality with increasing net credit loss recoveries  Strong capital position and increased special dividend  Expanded local footprint 12

  13. Slide 13: Appendix

    Appendix Handelsbanken

  14. Slide 14: The Board’s proposal to the AGM 2025

    The Board’s proposal to the AGM 2025 Earnings year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Ordinary dividend, SEK/share 7.50 6.50 5.50 5.00 4.10 5.50 5.50 5.00 4.50 4.17 3.83 3.58 3.25 Extra dividend Industrivärden, 4.30 SEK/share Extra dividend, SEK/share 7.50 6.50 2.5

  15. Slide 15: Income statement Q4 2024

    Key ratios: Income statement Compared to previous quarter 39.7% C/I-ratio SEK m Q4 2024 Q3 2024 Change Net interest income 11,745 11,763 0% Net fee and commission income 3,067 2,966 3% Net gains/losses on financial transactions 1,147 626 83% Other income 66 190 -65% -0.03% Total income 16,025 15,545

  16. Slide 16: Income statement full year 2024

    Key ratios: Income statement Compared to the previous year 40.4% Full year Full year C/I-ratio SEK m 2024 2023 Change Net interest income 46,841 47,578 -2% Net fee and commission income 11,726 11,139 5% Net gains/losses on financial transactions 3,103 2,661 17% Other income 675 871 -23% -0.02% Total

  17. Slide 17: Change in NII from previous quarter

    Change in NII from previous quarter Net interest income continuing operations Q3 2024, SEK m 11,763 Deposit volume 35 Lending volume 3 Net effect margins and funding costs -262 Day count effect 0 Deposit guarantee fee 8 Other -20 Sweden -236 -2.0% Deposit volume 52 Lending volume 15 Net effect of ma

  18. Slide 18: Asset quality

    Asset quality  Expert based add-on SEK +229m  Rating migrations SEK +8m  Better quality on new loans compared to exits SEK +25m  Other (incl. effects from change in loan durations and migrations to stage 3) SEK +43m Expected credit losses Credit losses Credit losses, net Stage 3, net SEK m SEK m

  19. Slide 19: Change in CET1-ratio from previous quarter

    Change in CET1-ratio from previous quarter CET1-ratio REA Capital REA effects effects % SEK bn 19.8 845 2 19.6 840 19.4 835 10 12 11 19.2 0.8 830 7 3 6 19.0 825 2 1.4 842 18.8 820 0.3 18.6 815 825 0.1 0.1 18.4 18.8 18.8 810 0.3 0.0 0.2 0.2 0.1 0.1 18.2 0.0 805 18.0 800 CET1 ratio Earnings Deducted I

  20. Slide 20: 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

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