Svenska Handelsbanken Ab Publ Stock Earnings Reports

Handelsbanken reported a solid Q1 2026: operating profit rose 9% quarter-on-quarter and reported ROE was 14% (11.7% adjusted for a SEK 1.1bn VAT refund). Net interest income (NII) and fees were largely stable, while underlying operating profit declined modestly due to margin and FX/day-count effects. Key growth drivers were continued lending expansion in the U.K. and the Netherlands and strong net inflows to the savings/mutual funds business across markets. Swedish lending remained flat amid soft domestic activity. Costs declined again and cost/income was strong (39.5% reported; 42.8% adjusted), reflecting ongoing cost discipline. Asset quality is very strong with negligible credit losses (SEK 35m, 1 bp). Capital is robust: CET1 is calibrated to 17.2% (250 bps above regulatory minimum) and the board proposed an anticipated dividend of SEK 2.93/share (91% of Q1 earnings). The bank issued SEK 6bn of AT1 (booked in Q2) to increase flexibility; Marten confirmed AT1 coupon will be booked in equity. Rating momentum: Moody’s upgraded Handelsbanken’s BCA to A1. For investors: the bank emphasizes a resilient, low-risk, customer-focused model, continued savings-led fee growth, disciplined capital management with a modest reduction in the management buffer, and selective growth in attractive home markets (notably U.K. and Netherlands).