Svenska Handelsbanken AB (publ) (SHB_A) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to this presentation on Handelsbanken's results for the first nine months. The bank reported a solid quarter with earnings growing compared to Q2. Operating profit grew by 8% and the ROE amounted to 13%. As income grew, increased by 4% and costs dropped by 5%, the cost-income ratio improved from 44% to 40%. The cost-income ratio improved in all of our home markets in this quarter. Net credit losses again, now for the seventh consecutive quarter, amounted to net credit loss reversals. And clearly the asset quality remains very strong. And highlighted many times before, the bank is not only around low credit risk, but also with low funding and liquidity risks, and an ample liquidity portfolio amounting to around one quarter of the total balance sheet. The CET1 ratio stood at 18.2%, which was 350 basis points above the regulatory minimum, and thereby 50% above our long-term target range. The anticipated dividend for the first nine months, which deducted from the capital base, amounted to 10 krona and 65 euro per share, or 119% of the earnings generated this year to date. During the quarter, the bank received a number of external recognitions, highlighting the customer's appreciation of our way of running a bank. For the fourth consecutive year, the bank received the reward The Business Bank of the Year, and for the 13th consecutive year, Sweden's SME Bank. In the annual EPSI survey in each of our home markets, the bank scored higher overall customer satisfaction among households and corporates than the sector average, as well the larger peers. And to note in the comments by the Swedish arm of EPSI, or SKI, as it's called here in Sweden, the companies do not only appreciate the local presence and offering, but also rank our digital off...