Svenska Handelsbanken AB (publ) (SHB_A) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to this presentation of Handelsbanken's result for the second quarter and the first six months of 2025. The second quarter showed an operating profit of 7.2 billion. The ROE was 13%, which was unchanged compared to the previous quarter. Income dropped compared to the first quarter this year. This was mainly due to catch-up effects from central bank rate cuts seen in the previous quarter, which affected NII. A touch lower asset management fee and commissions as the average asset under management were affected by lower average stock market indicates. Temporary effects on the NFT relating to valuation of instrument used to hedge risk and not least effects from a significant strengthening of the Swedish krona affecting mainly the NII. Cost, on the other hand, remains stable at a materially lower level compared to a year ago, being down 4% on underlying basis. Year on year, despite general inflation, also the annual salary revision was carried out in the beginning of the year. The cost-income ratio amounted to 44% in the quarter and 42% in the first half of the year. Up a touch from last year, but still at a low level in an historical context. Net credit losses again, now for the sixth consecutive quarter, amounted to net credit loss reversals. And we have highlighted, as we have highlighted many times before, the bank is run with not only low credit risk, but also low funding and liquidity risks and an ample liquidity portfolio amounting to around one fourth of the total balance sheet. In addition, the capital position is robust, with a CE1 ratio of 18.4%, which is 50 basis points above the long-term range target. This all in all puts the bank in a solid financial position. The anticipated dividend, which is deducted from the capital b...