Handelsbanken (SHB) investor relations material

Executive summary

• Net profits from continuing operations rose slightly in Q4 compared to Q3, with return on equity (ROE) at 13% for both the quarter and full year 2025.

• Asset under management reached record highs, driven by strong inflows in the savings business and positive stock market developments.

• Household lending growth resumed in most home markets, with corporate lending also growing in the U.K. and Netherlands.

• Cost discipline remained strong, with expenses trending down despite inflation and salary increases.

• Credit quality remained robust, with eight consecutive quarters of net credit loss reversals.

Financial highlights

• Q4 net profits from continuing operations increased slightly, while operating profits were down marginally from Q3; Q4 2025 operating profit was SEK 7,682m, down 1% sequentially.

• ROE was 13% in Q4 and for the full year; cost-income ratio was 41% in Q4 and 41.5% for the year.

• Net interest income for 2025 fell 9% year-over-year to SEK 42,542m; net fee and commission income rose 5% in Q4 and 2% for the year.

• Net credit loss reversals totaled SEK 313 million for the year, with a net credit loss ratio of -0.01%.

• Total income for 2025 was SEK 56,796m, down 9% year-over-year; total expenses fell 7% to SEK 23,567m.

Outlook and guidance

• Management expects continued growth in household and corporate lending, especially in the U.K. and Netherlands.

• Cost focus will remain, with investments tied to business growth and customer needs.

• No specific guidance on NII trough timing, but volume growth in the U.K. may offset margin pressure.

• The bank maintains a long-term target of a CET1 ratio 1-3 percentage points above the regulatory requirement.