Handelsbanken’s Interim Report January – March 2021

January – March 2021
- compared with January – March 2020

• Operating profit increased by 9% to SEK 5,612m (5,142). Adjusted for foreign exchange effects and the year’s provision for Oktogonen, operating profit increased by 15%.
• Return on equity inreased to 10.6% (10.3).
• Earnings per share increased to SEK 2.21 (1.99).
• The common equity tier 1 ratio increased to 20.2% (17.6).
• The credit loss ratio was 0.01% (0.08).
• Income increased by 1% to SEK 11,292m (11,178). Adjusted for foreign exchange effects, income increased by 3%.
• Continued large inflows to the Bank’s mutual funds. Net inflows amounted to SEK 25bn (-6) during the period. The managed fund volume increased by 46% to SEK 848bn (582).
• Of the total net flows in the Swedish mutual fund market, 40% was to Handelsbanken’s funds.
• The underlying increase in expenses, adjusted for Oktogonen and foreign exchange effects, was SEK 115m, or 2%, with the entire increase and more being attributable to increased development costs. Including Oktogonen and foreign exchange effects, expenses grew by 3% to SEK -5,683m (-5,506).
• The C/I ratio was 50.3% (49.3).

Q1 2021
- compared with Q4 2020

• Credit quality remains very good and credit losses consisted of net recoveries of SEK +8m (-97). Expected credit losses in Stage 3 totalled SEK -24m (-145).
• The cost-cutting programme is proceeding according to plan, and thus far, measures corresponding to SEK 1bn have been decided on/initiated since Q3 2020, with achieved positive effects on profit of SEK 200m.
• Operating profit decreased by 2% to SEK 5,612m (5,712).
• Return on equity was 10.6% (10.9).
• Earnings per share amounted to SEK 2.21 (2.21).
• Income decreased by 1% to SEK 11,292m (11,431).
• Expenses increased by 1% to SEK -5,683m (-5,616).
• The C/I ratio was 50.3% (49.1).
• The Bank presented measurable sustainability goals for its core business, including one specific climate goal: Net zero emissions of greenhouse gases as soon as possible, and by 2040 at the latest.
• An additional sustainability goal is that the Bank aims to reduce the wealth gap that exists today between men and women. To this end, the Bank’s ambition is to create better conditions for women to achieve higher returns on their savings.

 
As in the fourth quarter of 2020, a provision of SEK -213m was made for the Oktogonen profit-sharing scheme in the first quarter.
 

The slide presentation for today’s press conference will be available at 7:00 a.m. CET at handelsbanken.com/ir

For further information, please contact:
Carina Åkerström, President and Group Chief Executive
Tel: +46 (0)8 22 92 20

Carl Cederschiöld, CFO
Tel: +46 (0)8 22 92 20

Lars Höglund, Head of Investor Relations
Tel: +46 (0)8 701 51 70, laho01@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 7:00 a.m. CET on 21 April 2021.

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

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