Handelsbanken (SHB) Investor presentation summary

Safety, stability, and credit quality

• Maintains the highest credit ratings globally (Aa2/AA-/AA) and strong asset quality among peers.

• CET1 capital ratio at 18.8%, nearly 400bp above regulatory requirements, with significant headroom above the MDA line.

• Net credit loss ratio remains extremely low, with historical resilience through economic cycles.

• Over 90% of lending is collateralized, with low loan-to-value ratios across commercial and residential real estate portfolios.

• Conservative funding structure, ample liquidity buffers, and no reliance on central bank or government-guaranteed funding.

Financial performance and profitability

• Achieved record Q4 2024 operating profit of SEK 9.2bn, with a 14.2% return on equity and a cost/income ratio of 39.7%.

• Full-year 2024 operating profit was SEK 35.0bn, with stable total income and increased expenses mainly due to higher staff costs.

• Net interest income remained stable quarter-on-quarter, with positive volume effects offset by margin pressure.

• Proposed total dividend of SEK 15.00 per share for 2024.

Lending, deposits, and market position

• Lending in home markets totals SEK 2,288bn, with 75% related to residential property and low average LTVs.

• Deposits from the public remain diversified and stable, with a strong presence in Sweden, Norway, UK, and the Netherlands.

• Swedish mortgage business maintains a 21% market share, with a 5% CAGR in lending since 2011.