Highlights of Handelsbanken’s Annual Report

JANUARY – DECEMBER 2020

Q4 2020
- compared with Q3 2020

• Operating profit, adjusted for foreign exchange movements and items affecting comparability, increased by 4%.

• A provision of SEK -213m was made for the Oktogonen profit-sharing scheme in the quarter. Profit during the previous quarter was impacted by a provision for a restructuring reserve of SEK -1,470m. Including this item, operating profit increased to SEK 5,712m (4,227).

• Return on equity increased to 10.9% (8.4).

• Earnings per share increased to SEK 2.21 (1.68).

• Income climbed by 4% to SEK 11,431m (11,014). The foreign exchange effect was marginal.

• Adjusted for items affecting comparability and foreign exchange movements, expenses grew by 4%. Including these expenses decreased to SEK -5,616m
  (-6,738).

• Adjusted for items affecting comparability, and foreign exchange movements the C/I ratio was 47.3% (47.7). Including these items, the C/I ratio was 49.1% (61.2).

• The credit loss ratio was 0.03% (0.00). Expected credit losses in Stage 3 totalled SEK -145m (-28).

• The Board proposes a dividend of SEK 4.10 per share, and that the existing mandate to repurchase shares is extended for a further year. 

January – December 2020
- compared with January – December 2019

• Operating profit, adjusted for foreign exchange movements and items affecting comparability, increased by 1%. Including these effects, profit decreased to SEK 20,135m (21,796).

• Return on equity, adjusted for items affecting comparability and foreign exchange movements, was 11.0% (11.9); including these items, it was 10.0% (11.9).

• Earnings per share decreased to SEK 7.87 (8.65).

• The common equity tier 1 ratio increased to 20.3% (18.5).

• The credit loss ratio was 0.03% (0.04).

• Income, adjusted for foreign exchange movements and items affecting comparability, increased by 1%. Including foreign exchange movements, income decreased by 1% to SEK 44,248m (44,564).

• The total net inflow to the Bank’s mutual funds increased by 37% to SEK 41bn (30).

• The proportion of Swedish net inflows that were made to the Bank’s mutual funds was 46%.

• The underlying cost increase, adjusted for foreign exchange movements and items affecting comparability, was 1%. Including these effects, expenses increased to SEK
  -23,334m (-21,743).

• Adjusted for foreign exchange movements and items affecting comparability, the C/I ratio was 48.8% (48.3). Including these items, the C/I ratio was 52.7% (48.8).

A provision of SEK -213m was made for the Oktogonen profit-sharing scheme in the fourth quarter. In Q3 2020, a provision for a restructuring reserve of SEK -1,470m and an impairment loss on IT systems of SEK -38m were booked. 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 the second and third quarters of 2019, restructuring reserves of SEK -30m and -900m respectively were recognised. In Q2 2019, the Bank received a dividend of SEK 55m from VISA Sweden.

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 3 February 2021.

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

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