Svenska Handelsbanken AB (publ) (SHB_A) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to this presentation of Handelsbanken's result for the fourth quarter and full year of 2025. The bank reported a solid fourth quarter with net profits from continuing operations up slightly compared to Q3 and the return on equity of 13%. The savings business continued to perform well with strong inflows in customer savings. Asset under management reached an all-time high in our home markets. Household lending has started to grow again in most of our home markets. And in the UK and the Netherlands, we now have also seen several quarters with steadily growth also in corporate lending. All in all, the income increase in the quarter by the normal seasonal pickup in expenses was fairly modest. Asset quality remained very strong, and we added yet another quarter with net credit loss reversals, bringing the consecutive count to eight quarters in a row with net reversals. Given the solid asset quality and strong financial position of the bank, the board proposes a dividend of 17 kronor and 50 öre per share to the AGM, of which an ordinary dividend of 1,8 kronor per share and an extra dividend of 9 kronor and 50 öre per share. The CET1 ratio of 17.6 was 2.85% above the regulatory requirement. In other words, the bank is now back again in the long-term range of 100 to 300 basis points above the regulatory requirement. Now, if we look closer at the financials of the fourth quarter compared to our previous quarter, our RE amounted to 13% and the cost-income ratio was 41%. Operating profits were down marginally, but net profits from continuing operations increased slightly. Adjusted for currency effects, the NII declined by 3%. The drop was explained by negative margin effects due to lower short-term market rates and by a year-end calibration o...