Handelsbanken (SHB) Investor presentation summary

Safety and stability

• Maintains one of the highest credit ratings among peers, with low net credit loss ratios and stable earnings growth over cycles.

• CET1 capital ratio stands at 17.6%, well above regulatory requirements, providing significant buffer against losses.

• Over 90% of lending is collateralized, with conservative balance sheet and ample liquidity reserves.

• Short-term assets exceed short-term liabilities by 1.9x, supporting resilience in stressed scenarios.

• NSFR at 119% and LCR at 191%, indicating strong liquidity and funding positions.

Financial performance and results

• Q4 2025 saw growth in savings and lending, especially in the UK and Netherlands, with income up and costs controlled.

• Net interest income decreased by 4% quarter-on-quarter, while net fee and commission income rose by 5%.

• Operating profit was SEK 7,682m, with a return on equity of 13.0% and a cost/income ratio of 40.7%.

• Eighth consecutive quarter of net credit loss reversals, with net credit loss ratio at 0.00%.

• Proposed dividend of SEK 17.50 per share.

Asset quality and risk management

• Credit portfolio is diversified across geographies and sectors, with low average LTVs in both commercial and residential real estate.

• Stage 2 provisions for property management remain stable, with better quality on new loans compared to exits.

• Macro assumptions for expected credit losses incorporate conservative scenarios, including downturns in key markets.

• Average LTV for household mortgages is 58%, with only 3.2% above 75% LTV.