Svenska Handelsbanken AB (publ)

Q2 operating profit was SEK 6.7 billion, with ROE almost 13%, income of SEK 13.5 billion, expenses of SEK 6.0 billion, and a 44% cost/income ratio. Credit losses were SEK 30 million, equal to a credit loss ratio of 0%. Versus Q1, NII was largely unchanged and down 1% adjusted for currency effects; fee and commission income rose 2%; total income was down 2% adjusted for currency effects and the VAT regain; and underlying operating profit fell 6%, mainly due to the NFT line. For the first half of 2026, ROE was 13%, the cost/income ratio was 42%, NII declined 10% (9% adjusted for FX), net fee and commission income rose 8% adjusted for FX, and underlying operating profit fell 10%. Management did not give formal next-quarter or full-year guidance, but said NII volume growth is starting to filter through, the Q2 notice-period impact in Norway should reverse, and the temporary derivative valuation effects in NFT should wash out over time.

Michael Green emphasized Handelsbanken’s relationship-driven model, prudent risk appetite, and long-term focus, arguing that these are the reasons the bank has historically delivered stable shareholder value through different cycles. He said all four home markets showed improved numbers and overall business growth, with especially strong customer satisfaction and savings momentum. Tone-wise, he was confident and defensive of the strategy, repeatedly stressing that the bank is happy with its four-market footprint and is focused on organic growth rather than major strategic changes.

Mårten Bjurman highlighted that the quarter’s flat NII reflected offsetting factors: SEK 90 million from higher volumes, about SEK 249 million of negative margin/funding effects, plus a SEK 156 million benefit from day count and currency, with the previous quarter’s SEK 35 billion dividend also reducing interest-earning assets. He said fee income was supported by strong AUM inflows and market development, and that savings-related fees rose 14% year over year. On costs, he noted expenses were unchanged adjusted for Oktogonen and currency effects, while IT development spending is roughly SEK 3 billion to SEK 3.5 billion per year and was 6% higher in Q2; credit losses stayed at 0%, and CET1 remained 250 bps above the regulatory minimum after anticipated dividends.

Analysts focused on why returns are lower outside Sweden, especially in the U.K., Norway, and the Netherlands, and whether capital should be reallocated or the footprint reviewed. Management said the U.K. is growing into its cost base, the Netherlands is growing strongly but is still small, and Norway faces intense competition but has improving savings/AUM and deposit trends; Michael Green said the bank is comfortable staying in all four home markets and is focused on long-term organic growth. Questions also centered on Swedish margin pressure, the flat Swedish loan book, and whether zero credit losses should justify taking more risk; management said margins are under pressure in both mortgages and corporates, volume weakness partly reflects customer exits and netting effects, and lending discipline remains centered on risk-adjusted profitability rather than chasing volume.