January - December 2023
(January - December 2022)

• Operating profit increased by 35% to SEK 36,322m (26,829).
• Return on equity increased to 15.9% (12.8).
• The C/I ratio improved to 37.2% (42.1).
• The credit loss ratio was 0.01% (0.00).
• The common equity tier 1 ratio after the proposed dividends was 18.8% (19.6).
• The Board of Directors proposes an ordinary dividend of SEK 6,50 (5.50) per share and a special dividend of SEK 6,50 (2.50) per share.

Q4 2023
(Q3 2023)

• Operating profit was SEK 9,057m (9,908).
• Return on equity was 15.2% (17.3).
• The C/I ratio was 38.4% (35.0).
• The credit loss ratio was 0.00% (0.00).

Stable earnings build a stable bank. Steep rises in market interest rates led to a higher return on the Bank's equity, which compensated for slimmer mortgage margins during the year. The C/I ratio improved, credit quality remained strong and return on equity increased. The Bank is ranked as one of the world's most stable banks by the leading rating agencies, and the robust financial position was further bolstered by the extraordinary upturn in profit. Financial stability is an absolute necessity in enabling the Bank, regardless of what is happening in the wider world, to take a meaningful responsibility for the supply of credit. Overall, Handelsbanken is the largest lender to households and companies in the Swedish market.

High level of preparedness in an uncertain environment. The Bank has historically managed its way through financial crises and sharp macroeconomic downturns very well, and has not needed assistance or guarantees from governments, nor from shareholders in the form of diluting new share issues. The key factors behind this have been, and still are, a long-term approach and low risk tolerance. Given the current economic environment, the Bank's assessment is that an extra common equity tier 1 capital buffer of one percentage point above the Bank's ordinary target range of 1-3 percentage points above the requirement by the Swedish Financial Supervisory Authority is justified. This level differentiates Handelsbanken as a first-class counterparty in uncertain times, and contributes to a clarification of the Bank's financial position as one of the world's safest banks. The Bank intends to anticipate dividends in 2024 at a level entailing a common equity tier 1 ratio at 4 percentage points above the requirement communicated by the Swedish Financial Supervisory Authority. A reassessment will be made annually.

More satisfied customers. Ever since independent customer surveys began, Handelsbanken has had more satisfied customers than peer banks, in all its home markets. Customer satisfaction improved even further during the year, from an already high level.
 

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* Foreign exchange effects and other items affecting comparability are presented in the tables on pages 5 and 6.

The slide presentation for today's press conference will be available at 07:00 a.m. CET 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 7 October 2024.
For more information about Handelsbanken, please go to: handelsbanken.com