Handelsbanken’s Interim Report January – June 2020
Summary January - June 2020, compared with January - June 2019
- Strong capital situation and further increase to liquidity reserve. The common equity tier 1 ratio increased to 18.7% (17.1).
- The credit loss ratio was 0.04% (0.06).
- Operating profit went down by 11% to SEK 10,196m (11,460). Adjusted for items affecting comparability, operating profit decreased by 3%.
- Return on equity went down to 10.3% (12.8).
- Earnings per share decreased to SEK 3.99 (4.61).
- Income went down by 1% till SEK 21,803m (22,075). Net interest income was affected in the amount of SEK -236m by the further strengthening of the liquidity reserve.
- Expenses rose by 11% to SEK -10,980m (-9,907). The underlying increase in expenses, adjusted for items affecting comparablity, was 3%.
- The C/I ratio rose to 50.4% (44.9). Adjusted for items affecting comparability, the C/I ratio was 50.2% (48.6).
Summary Q2 2020, compared with Q1 2020
- Profit after tax rose by 1% to SEK 3,959m (3,937).
- Earnings per share amounted to SEK 2.00 (1.99).
- Operating profit went down by 2% to SEK 5,054m (5,142). Adjusted for foreign exchange effects, operating profit decreased by 1%.
- Return on equity was 10.2% (10.3).
- Income went down by 5% to SEK 10,625m (11,178). Adjusted for foreign exchange effects, the decrease was 4%.
- Expenses fell by 1% to SEK -5,474m (-5,506). Adjusted for foreign exchange effects, there was no change in expenses between the quarters.
- The C/I ratio rose to 51.5% (49.3). Adjusted for foreign exchange effects, the C/I ratio was 51.5% (49.3).
- The credit loss ratio was 0.00% (0.08). Expected credit losses in Stage 3 were SEK -11m (-84).
- Handelsbanken has the most satisfied private customers of all Swedish banks with regard to its handling of the covid-19 crisis, according to Swedish Quality Index (SKI)
During the first half of 2019, the preliminary provision for the Oktogonen profit-sharing scheme made in 2018, amounting to SEK 829m, was reversed. In Q2 2019, a restructuring reserve of SEK 30m was recognised. In Q2 2019, the Bank received a dividend of SEK 55m from VISA Sweden.
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, email@example.com
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 6:30 a.m. CET on 15 July 2020.
For more information about Handelsbanken, please go to: handelsbanken.com