Handelsbanken Balances Lower 2025 Earnings With Cost Cuts, Strong Capital and Higher Dividend

An announcement from Svenska Handelsbanken AB ( ($SE:SHB.A) ) is now available.

Handelsbanken reported a decline in full-year 2025 operating profit to SEK 30.75bn from SEK 35.02bn and lower return on equity of 13.0% versus 14.6%, as lower market rates compressed net interest margins and total income fell 9%. Despite this, the bank highlighted record assets under management and continued lending growth in the UK and Netherlands, a 7% year-on-year reduction in expenses driven by improved efficiency, and strong asset quality with net credit loss reversals for an eighth consecutive quarter. The common equity tier 1 ratio stood at 17.6%, or 2.85 percentage points above the regulatory minimum after proposed dividends, underscoring its capital strength and supporting the Board’s plan to raise the total dividend to SEK 17.50 per share, reinforcing Handelsbanken’s positioning as a highly rated, financially robust bank geared for continued stable, profitable growth.

The most recent analyst rating on ($SE:SHB.A) stock is a Sell with a SEK137.00 price target. To see the full list of analyst forecasts on Svenska Handelsbanken AB stock, see the SE:SHB.A Stock Forecast page.

More about Svenska Handelsbanken AB

Svenska Handelsbanken AB is a Nordic-based universal bank offering retail, corporate and investment banking services, with a particular strength in deposit-taking, lending and savings products. The bank focuses on locally anchored, long-term customer relationships in markets including Sweden, the UK and the Netherlands, and positions itself as a low-risk institution with one of the strongest credit ratings among privately owned banks globally.

Average Trading Volume: 4,696,829

Technical Sentiment Signal: Buy

Current Market Cap: SEK281.7B

See more data about SHB.A stock on TipRanks’ Stock Analysis page.