Handelsbanken operating profit rises 10% quarter-on-quarter to 7.35 billion kronor, falls year-on-year
Key Facts
Handelsbanken's operating profit rose 10% from the previous quarter to 7.35 billion Swedish kronor in the third quarter of 2026, according to Investing's report on the bank's results. The quarterly improvement was accompanied by a higher return on equity, while operating profit remained below its year-earlier level. On a year-on-year basis, operating profit fell 4% from the corresponding quarter of the previous year. The bank had reported operating profit of 7.69 billion kronor in that period of 2025. Return on equity reached 13.5% in the third quarter, compared with 12.8% in the previous quarter, according to figures cited by the website.
Total income reached 13.96 billion Swedish kronor in the third quarter, according to Investing. Net interest income for the same period stood at 10.05 billion Swedish kronor. In its interest business, the bank faced higher funding costs as market interest rates rose, according to the website's account of the results. The increase weighed on net interest income when adjusted for currency movements and the number of days in the reporting period. Adjusted net interest income thus came under pressure from funding costs, alongside the quarter-on-quarter improvement in the group's operating profit.
Net fee and commission income, meanwhile, rose 6% from the previous quarter to 3.33 billion Swedish kronor in the third quarter, according to Investing. Fund management, custody and other asset management commissions drove the increase in the bank's fee and commission income. Assets under management increased 4% during the reporting period. Their value reached a record 1,508 billion Swedish kronor, according to figures reported by the website. The increase in assets managed by the bank was supported by higher market valuations and strong net inflows, alongside growth in commissions linked to asset management and custody activities.
The bank's expenses totaled 5.91 billion Swedish kronor in the third quarter, according to Investing's report on the financial results. The bank attributed the decline in other expenses to "seasonally lower activity," explaining the movement in this cost item during the period. The cost-to-income ratio improved, falling to 42.3% in the third quarter from 44.3% in the previous quarter. The improvement coincided with a decline in credit losses recorded in the bank's quarterly accounts. Those losses totaled 5 million Swedish kronor in the third quarter, according to the published figures. That compared with credit losses of 30 million Swedish kronor in the previous quarter, marking a decline between the periods.
Handelsbanken's core home markets include Sweden, Norway, the Netherlands and the United Kingdom, according to the bank's description of its operations. The bank describes its geographical footprint by saying: "Our home markets are Sweden, Norway, the Netherlands and the United Kingdom." In trading ahead of the results announcement, the bank's Class A shares closed the 20 October 2026 session at 153.70 Swedish kronor per share, according to historical data published by Investing. The shares rose 0.39% in that session, ahead of the quarterly results announcement. That closing price was recorded in the session preceding the announcement, while the bank's investor relations page lists 21 October as the date for the results presentation.
After the reporting period ended, the Swedish Financial Supervisory Authority approved the bank's new model for its household-sector exposures, according to Investing. The bank expects the approval to result in a net reduction in capital requirements of about 3 billion Swedish kronor. The effect is expected in the following quarter, the fourth quarter of 2026, according to the timing provided with the results. On the bank's investor communications calendar, the results presentation was scheduled for 21 October at 08:15, in the time zone described on the investor relations page as Central European Time. The presentation follows results showing a quarterly improvement in profit, which remained below the level of the corresponding quarter of the previous year. The bank's investor relations page lists 3 February 2027 as the next date for its annual results announcement.