Highlights of Handelsbanken’s Annual Report

External income and expenses in the operations in Denmark and Finland that are to be divested are recognised as profit/loss from discontinued operations. Unless otherwise stated, descriptions in this highlights report refer to continuing operations. A presentation of the income statement according to previous reporting standards can be found of page 29 of the Fact Book.

JANUARY – DECEMBER 2021

January – December 2021
- compared with January – December 2020

• Profit for the year increased by 25% to SEK 19,543m (15,588). Profit for the year from continuing operations increased by 29% to SEK 18,848m (14,557).
• Earnings per share grew by 25% to SEK 9.86 (7.87).
• Return on equity increased to 11.8% (10.0).
• Operating profit went up by 25% to SEK 23,475m (18,797).
• Net interest income increased by 1% to SEK 29,391m (29,079).
• Net fee and commission income went up by 18% to SEK 11,458m (9,670). Commission income from fund management grew by 36%.
• Income climbed by 7% to SEK 43,347m (40,368).
• Expenses decreased by 5% to SEK -19,843m (-20,927). Adjusted for the provision for Oktogonen, items affecting comparability and exchange rate movements, expenses rose by 3%, or SEK 603m; this was entirely attributable to a SEK 718m increase in development costs.
• The C/I ratio improved to 45.8% (51.8).
• The credit loss ratio was 0.00% (0.03).
• The common equity tier 1 ratio was 19.4% (20.3).
• The Board proposes a dividend of SEK 5.00 per share.

Q4 2021
- compared with Q3 2021

• Profit for the period amounted to SEK 5,236m (5,193). Profit for the period from continuing operations increased by 9% to SEK 5,311m (4,875).
• Earnings per share amounted to SEK 2.64 (2.62).
• Return on equity was 12.5% (12.4).
• Operating profit climbed by 4% to SEK 6,369m (6,127).
• Net interest income increased by 2% to SEK 7,503m (7,353).
• Net fee and commission income went up by 10% to SEK 3,163m (2,867). Commission income from fund management grew by 7%.
• Income climbed by 7% to SEK 11,561m (10,854).
• Expenses went up by 13% to SEK -5,187m (-4,600). Adjusted for the provision for Oktogonen, expenses rose by 5%, or SEK 249m; this was primarily attributable to a SEK 206m increase in development costs.
• The C/I ratio was 44.9% (42.4).
• The credit loss ratio was 0.00% (0.01).
• Business volumes linked to the Bank’s sustainability activities continued to grow. During the year, the volume of green loans increased by 45% to SEK 31.1bn (21.4); as part of this total, green mortgage loans grew by 61% to SEK 8.7bn (5.4).

Non-recurring items and special items: In the fourth quarter of 2021, a one-off income item of SEK 408m from the sale of card acquiring operations was booked; also booked was a provision of SEK -64m for Oktogonen. During the third quarter, part of the preliminary provision for Oktogonen, amounting to SEK +263m, was reversed. In 2021, a provision of SEK -69m (-213) was made for Oktogonen. In 2020, a provision for a restructuring reserve of SEK -1,470m and an impairment loss on IT systems of SEK -38m had been booked.
 

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

Peter Grabe, Head of Investor Relations

Tel: +46 (0)8 701 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 7:00 a.m. CET on 9 February 2022.

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

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