Svenska Handelsbanken AB (publ)

In Q2 2026, Handelsbanken reported operating profit of SEK 6.7 billion, ROE of almost 13%, income of SEK 13.5 billion, expenses of SEK 6.0 billion, and a cost/income ratio of 44%. Credit losses were SEK 30 million, corresponding to a 0% credit loss ratio. Versus Q1, NII was largely unchanged and down 1% adjusted for FX, fee and commission income grew 2%, NFT fell to SEK 160 million after negative valuation effects, and total income was down 2% adjusted for FX and the prior-quarter VAT regain. For H1 2026, ROE was 13%, the cost/income ratio was 42%, NII declined 10% (9% FX-adjusted), net fee and commission income increased 8% FX-adjusted, expenses fell 1%, and underlying operating profit was down 10%. For capital, after anticipated H1 dividends of SEK 9.4 billion, or SEK 4.77 per share, equivalent to 82% of earnings, the CET1 ratio was 250 bps above the regulatory minimum. Management did not give formal forward guidance, but said Q2 showed stable NII, continued fee growth from savings, controlled costs, and a solid capital position supporting healthy dividends.

Michael Green emphasized Handelsbanken’s long-term relationship model, prudent risk appetite, and focus on stable markets in northwest Europe. He said the bank believes customers value its branch-based support and that it will keep strengthening branch capacity as long as demand remains clear. On strategy, he said the bank is happy with its current four home markets, remains focused on organic growth, and is not looking at new countries at the moment, though it will consider inorganic opportunities if they fit.

Mårten Bjurman highlighted that costs were unchanged adjusted for Oktogonen and FX, while credit losses were SEK 30 million and regulatory fees rose 11% due to mandatory interest-free central-bank deposits booked for the next 12 months. He said the Q2 NII drag came from a mix of higher funding costs, timing effects, the Norway notice-period lag, and the impact of the record H1 dividend on liquid assets; he also noted that volume growth is starting to feed through into NII again. He pointed to strong savings-driven fee income, said IT development spend is roughly SEK 3 billion-SEK 3.5 billion per year with Q2 spend up 6%, and reiterated that the CET1 ratio remained 250 bps above the requirement, within the 100-300 bps target range.

Analysts focused on why returns and growth are weaker outside Sweden, especially in Norway and the U.K., and whether capital should be reallocated or even strategic alternatives considered. Management said the U.K. has strong customer satisfaction and room to grow into the cost base, the Netherlands is growing quickly but remains small, and Norway faces tough competition but still offers a viable long-term business, so the group is comfortable staying in those markets. Questions also probed Sweden’s flat lending and margin pressure; management acknowledged competition is pressuring both mortgage and corporate margins and said they are not happy with flat Swedish loan growth, but pointed to strong branch activity, deposit inflows, and corporates moving into asset management. On NII and the trading/NFT line, management said the Norway notice-period effect is temporary, the dividend-related NII hit is ongoing only until the balance sheet rebuilds, and NFT swings from derivative valuation effects should average out to zero over time, while declining to comment on the position itself.