Handelsbanken (SHB) Investor presentation summary

Safety, stability, and credit ratings

• Maintains the highest combined credit ratings among peers from Moody's, S&P, and Fitch, reflecting strong safety and stability.

• Net credit loss ratio remains exceptionally low, with recoveries for five consecutive quarters.

• CET1 capital ratio stands at 18.4%, significantly above regulatory requirements and peer averages.

• Over 90% of lending is collateralized, with conservative risk management and low market risk exposure.

• Earnings growth volatility is lower than most peers, supporting a stable financial profile.

Balance sheet structure and liquidity

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

• NSFR at 122%, with SEK 385bn excess stable funding, equating to 1.5 years of market funding needs.

• LCR at 184% with a SEK 372bn liquidity cushion, and additional SEK 700bn in prepared liquidity measures.

• Diversified deposit base across geographies and customer segments, with 34% of deposits guaranteed.

Financial performance and profitability

• Q1 2025 operating profit reached SEK 8.1bn, with a 13% ROE and a cost/income ratio of 40.7%.

• Net interest income declined 3% quarter-on-quarter, mainly due to margin and FX effects.

• Lending to households and corporates remains stable, with household mortgages comprising 49% of lending.

• Expenses decreased by 5% from the previous quarter, with staff numbers stable.