Handelsbanken (SHB) Q4 2024 earnings summary

Executive summary

• Q4 2024 operating profit reached SEK 9.2 billion, the highest Q4 in the bank's history, with ROE at 14.2% and full-year ROE at 14.6%.

• Full-year operating profit was SEK 35,016m, down 4% year-over-year; adjusted decrease was 2%.

• The board proposes a total dividend of SEK 15.00 per share, including a special dividend.

• CET1 ratio remained strong at 18.8%, nearly 400bp above regulatory requirements.

• Cost initiatives and efficiency programs led to a 6% reduction in staffing since Q1.

Financial highlights

• Q4 cost-to-income ratio was 39.7%; full-year C/I ratio at 40.4%.

• Net interest income was SEK 11,745m in Q4, stable sequentially; full-year net interest income declined 2% to SEK 46,841m.

• Net fee and commission income grew 3% sequentially and 5% year-over-year to SEK 11,726m.

• Net credit loss recoveries in Q4 were SEK 232m; full-year net credit losses at SEK 601m.

• Profit for the period was SEK 27,456m, down 6% year-over-year.

Outlook and guidance

• No further restructuring costs expected in 2025; focus remains on cost discipline, digitalisation, and commission income growth.

• Capital buffer above long-term target will be reviewed quarterly in response to the business environment.

• No specific cost growth outlook provided for 2025.