Handelsbanken's Interim Report January - March 2025

30 Apr 2025 07:00 CEST

Q1 2025
(Q4 2024)

· Operating profit was SEK 8,136m (9,177).
· Return on equity was 12.9% (14.2).
· Earnings per share amounted to SEK 3.19 (3.46).
· The C/I ratio was 40.7% (39.7).
· The credit loss ratio was -0.01% (-0.03).
· The common equity tier 1 ratio was 18.4% (18.8).

January - March 2025
(January - March 2024)

· Operating profit was SEK 8,136m (8,267).
· Return on equity was 12.9% (13.7).
· Earnings per share amounted to SEK 3.19 (3.33).
· The C/I ratio improved to 40.7% (42.2).
· The credit loss ratio was -0.01% (-0.01).
· The common equity tier 1 ratio was 18.4% (18.8).

Income resilient, despite impacts of reduced policy rates
In spite of significant cuts to policy rates in the Bank's home markets over the
past year, net interest income was relatively stable compared with the
corresponding period of the previous year. Net fee and commission income
increased, primarily on the back of continued positive developments within the
savings business. Activity and interaction with customers were at the same time
high, with increased demand for advisory services at local branches, when
customers are to navigate an ever more uncertain macroeconomic climate.

Lower expenses and a reduced ongoing cost base
As a result of the efficiency measures carried out during the previous year, a
lower cost base has now been established at the Bank. Central departments and
business support units have been streamlined and more closely aligned with the
business-generating activities, and the number of external resources has been
reduced. The strengthened cost control contributed to the continued contraction
of expenses during the quarter, despite the annual salary adjustments
materialiseing in the beginning of the year, and contributed to an improved C/I
ratio compared to the previous year.

Strong asset quality and stable capital and liquidity position.
The Bank is considered one of the world's most stable counterparties, with the
highest overall credit rating among peer banks worldwide according to the
leading rating agencies, and is well prepared to face uncertain times. Asset
quality is strong, with net recoveries for the fifth consecutive quarter.
Funding and liquidity risks are kept low, and the liquidity reserve is
maintained at a high level. The capital situation is robust. The common equity
tier 1 ratio, after anticipated dividends for the quarter totalling SEK 5.00 per
share, was 0.5 percentage points above the long-term target range of 1-3
percentage points above the regulatory requirement. This level identifies the
Bank as a first-class counterparty with full capacity act even in uncertain
times. It also means that, regardless of surrounding developments, the Bank has
the capacity to take responsibility for the supply of credit and to grow its
business in pace with customer demand.

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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 30 April 2025 at 09:00 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 30 April 2025.

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

More information:
Access the news on Oslo Bors NewsWeb site

644819_Interim_Report_Q1_2025.pdf
644819_Press_release_Q1_2025.pdf