Handelsbanken (SHB) Pre-close call summary

Executive summary

• The call reiterated that no new information or guidance would be provided, focusing on reminders of publicly disclosed matters and housekeeping for analyst estimates ahead of the interim report.

• Q1 2026 included a SEK 1.1 billion VAT reversal as a one-off in other income.

Trading performance and revenue trends

• Swedish mortgage volumes saw a slight pickup in Q1, while corporate lending growth in Sweden remained slow; Norway's lending growth was subdued, but the UK and Netherlands showed gradual volume increases.

• A large SEK 35 billion dividend payout in late March/early April reduced interest-generating cash balances in Q2.

• Q2 has one more day than Q1, with a net day count effect of SEK 20–30 million per day.

• Weaker Swedish krona provided a slight tailwind to sequential NII development.

• Daily average stock market indices were up slightly in Q2, supporting savings-related fee trends.

• NFT income line remains minor and stable, averaging SEK 500–600 million per quarter, with customer-driven NFT at SEK 400–500 million.

Profitability and margins

• Net interest margin sensitivity to short-term rates is not guided due to multiple moving factors like funding, competition, and mix effects.

• FX movements, particularly the weaker SEK, are expected to increase costs in foreign markets in SEK terms.

• IT-related and purchased services costs were down year-on-year and quarter-on-quarter in Q1 2026, with no temporary effects identified.

• The bank is operating at a lower cost level than in previous years.