Highlights of Handelsbanken's Annual Report January - December 2024

05 Feb 2025 07:00 CET

Q4 2024

(Q3 2024)


· Operating profit increased to SEK 9,177m (9,061).
· Return on equity was 14.2% (15.6).
· Earnings per share amounted to SEK 3.46 (3.64).
· The C/I ratio was 39.7% (38.3).
· The credit loss ratio was -0.03% (-0.02).
· The common equity tier 1 ratio was 18.8% (18.8).

January - December 2024

(January - December 2023)


· Operating profit was SEK 35,016m (36,322).
· Return on equity was 14.6% (15.9).
· Earnings per share amounted to SEK 13.86 (14.70).
· The C/I ratio was 40.4% (37.2).
· The credit loss ratio was -0.02% (0.01).
· The common equity tier 1 ratio was 18.8% (18.8).
· The Board of Directors proposes an ordinary dividend of SEK 7.50 (6.50) per
share and a special dividend of SEK 7.50 (6.50) per share.


Stable profitability based on robust income and improved cost effectiveness
Operating profit improved continuously from the year's first quarter onward.
Income grew, measures were taken to improve cost efficiency and net credit loss
reversals increased. Net interest income was stable in spite of the negative
margin effects due to reduced central bank policy rates. A continued strong
development of the savings business contributed to net fee and commission income
reaching its highest ever level during the year. In order to strengthen Bank's
efficiency and competitiveness, efforts have been made since the start of the
year to identify potential efficiency improvements, mainly within central and
business support units, and to then implement these. The Bank's total staffing
(i.e. the number of employees plus external resources) decreased by a net amount
of 778 people, or 6%, from the first quarter, despite increased staffing in the
branch operations as a response to increasing customer activity. The majority of
the identified efficiency initiatives had been implemented by the end of the
year, not only reducing the overall level of costs but also further
strengthening the Bank's cost culture.

Enhanced local presence at around 20 new locations and business growth with
satisfied customers

During the year, the Bank was the largest player in terms of net inflows in the
Swedish mutual fund market. Customer and advisory activity for both private and
corporate customers increased during the year, and during Q4 lending volumes
again increased in all of the home markets - for the first time in almost 5
years. Increased customer activity and demand to physically meet the Bank
locally, led to the Bank expanding the availability of advisory meetings and
other services at some 20 new locations across Sweden during the year. The Bank
also continued to strengthen the availability of specialists at local branches,
in areas such as Private Banking and occupational pensions. Independent surveys
show that the Bank also in 2024 had more satisfied customers than the average
among comparable peers in the home markets, among both private and corporate
customers. Handelsbanken was also named Sweden's "Business Bank of the Year" and
- for the thirteenth consecutive year - "Small Enterprise Bank".
Increased dividend and strong financial position

The Bank distiguishes itself as one of the world's most stable banks, which is
reflected in the fact that no other privately owned bank in the world has a
higher overall credit rating from the leading rating agencies. The explanation
lies in a locally connected, long-term oriented, and customer-centric business
model with a low risk tolerance and a strong financial position. The Bank's long
term target range for the common equity tier 1 ratio is 1-3 percentage points
above the regulatory requirement set by the Swedish Financial Supervisory
Authority. Given the prevailing surrounding environment and in order to
underscore Handelsbanken's position as a first-class counterparty and one of the
world's safest banks, the dividend proposed to the Annual General Meeting is at
a level entailing a common equity tier 1 ratio just under 4 percentage points
above the regulatory requirement. Re-assessments of the appropriate capital
level will be made on an ongoing basis.

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* Items affecting comparability consist of foreign exchange effects, non
-recurring items and special items, which are presented in the tables on pages 5
and 7.

Information regarding the press conference and telephone conference

A press conference will be held on 5 February 2025 at 08:30 a.m.

Press releases, presentations, a fact book and a recording of the press
conference will be available at handelsbanken.com/ir.

For further information, please contact:

Michael Green, President and Chief Executive Officer

Tel: +46 (0)8 22 92 20

Carl Cederschiöld, CFO

Tel: +46 (0)8 22 92 20

Peter Grabe, Head of Investor Relations

Tel: +46 (0)70 559 11 67, peter.grabe@handelsbanken.se

This information is of the type that Handelsbanken is obliged to make public
pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets
Act. The information was submitted for publication through the agency of the
contact person set out above, at 07:00 a.m. CET on 5 February 2025.

For more information about Handelsbanken, please go to: handelsbanken.com

More information:
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637718_Press_release_Q4_2024.pdf
637718_Interim_Report_Q4_2024.pdf