Handelsbanken (SHB) Q4 2025 earnings summary

Executive summary

• Net profits from continuing operations rose slightly in Q4 2025 compared to Q3, with ROE at 13% and operating profit for Q4 at SEK 7,682m, down 1% sequentially.

• Asset under management reached record highs, driven by strong inflows in the savings business and lending growth in the UK and Netherlands.

• Credit quality remained robust, with eight consecutive quarters of net credit loss reversals and a net credit loss ratio of 0.00% in Q4.

• The board proposed a dividend of SEK 17.50 per share, up from SEK 15.00, with a payout ratio of 146% and payment scheduled for April 1, 2026.

• Total shareholder return exceeded 30% in 2025.

Financial highlights

• Q4 2025 ROE was 13%, cost-income ratio 40.7%, and CET1 ratio 17.6%, 2.85% above regulatory requirements.

• Net interest income declined 4% sequentially in Q4 to SEK 10,038m and 9% year-over-year to SEK 42,542m; net fee and commission income rose 5% in Q4 to SEK 3,118m and 1% for the year to SEK 11,863m.

• Total income for Q4 2025 increased 1% quarter-over-quarter to SEK 14,262m; full year total income was SEK 56,796m, down 9% year-over-year.

• Expenses for the year dropped 7% to SEK 23,567m, with underlying decline at 3% after adjustments.

• Net credit losses were minimal at SEK 5 million in Q4, with a full-year credit loss ratio of -0.01%.

Outlook and guidance

• Management expects continued growth in household and corporate lending, especially in the UK and Netherlands, with a focus on cost efficiency and stable, profitable growth.

• Cost discipline remains a focus, with ongoing productivity improvements and investments in technology, including AI.

• The bank maintains a long-term target of a CET1 ratio 1-3 percentage points above the regulatory requirement.

• No specific guidance on NII trough timing, but volume growth in the UK may offset margin pressure.