Handelsbanken (SHB) Investor presentation summary

Financial performance and profitability

• Q2 2025 operating profit reached SEK 7.2bn, with a 13% return on equity and a cost/income ratio of 44%.

• Net interest income declined 6% quarter-on-quarter, mainly due to margin and funding pressures.

• Volume growth was recorded in all home markets, with stable or increasing deposits and assets under management.

• Net fee and commission income showed a 2% CAGR, with savings-related fees comprising 66% of the total.

• Expenses remained stable, and staff numbers were consistent quarter-on-quarter.

Asset quality and credit risk

• Net credit loss ratio remained very low, with six consecutive quarters of net credit loss reversals.

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

• Stage 2 provisions for property management loans have increased, but overall asset quality remains strong.

• Macro assumptions for expected credit losses include conservative scenarios, with additional severe downturn scenarios for the UK.

• Credit portfolio is well-diversified geographically and by sector, with a significant share in Sweden.

Capital and liquidity position

• CET1 ratio stood at 18.4%, 350bp above regulatory requirements, with a long-term target range of 15.9–17.9%.

• Ample liquidity reserves, with a 12-month average LCR of 187% and NSFR at 122%.

• Short-term assets exceed short-term liabilities by 1.8x, supporting resilience in stressed scenarios.

• Total capital ratio is 22.7%, with significant buffers to regulatory minimums and distribution restrictions.

• MREL requirements are well covered by available funds, both on a risk-based and leverage-based basis.