The operating result was somewhat lower than expected.
“In a quarter where costs are rising faster than revenues, we are of course not satisfied. The outcome means that in the future we will work even more focused, with resolute change work at a higher pace,” the company writes in the report.
The total revenues amounted to SEK 15,318 million (14,985), which was in line with the analyst consensus from Modular Finance.
Net interest amounted to SEK 11,587 million (11,485), expected SEK 11,961 million. Net interest has been negatively affected by shrinking margins.
The net commission was SEK 2,754 million (2,766), which was expected to be SEK 2,848 million.
Net trading amounted to SEK 750 million (602), consensus SEK 447 million.
Made many new hires
Operating expenses amounted to SEK 6,470 million (5,776), analyst consensus was SEK 6,074 million. Personnel costs increased by 13 percent, or SEK 465 million, to -3,935 million (-3,470). But part of the increase is due to new hires in the office operation, which is a good sign of increasing customer and business activity, the bank states.
During the first quarter, a provision was made to the profit sharing system Oktogonen with -233 million kroner (-202), of which -170 million kroner referred to the adjustment of the previous year’s preliminary provision regarding the profit year 2023.
The credit losses were positive (net reversals) with SEK 95 million. Last year, the credit losses were SEK 30 million. Credit losses of SEK 306 million were expected.
The operating profit was SEK 8,267 million (8,516), which was expected to be SEK 8,364 million.
The net result for remaining operations was SEK 6,393 million (6,582).
Handelsbanken also announces today that Marion Ulander has been appointed acting head of Handelsbanken Norge. Arild Andersen transitions to a role as senior advisor to President and CEO Michael Green.
“After conducting a review of our Norwegian operations, we have decided on a strategic review. When we now increase the pace of the change work, it is natural to have a new leadership. I look forward to continuing the collaboration with Arild in his new role”, says Michael GreenCEO of Handelsbanken.
| Income | 15,318 | 15,400 | -0.5% | 14,985 | 2.2% |
| Net interest | 11,587 | 11,961 | -3.1% | 11,485 | 0.9% |
| Commission net | 2,754 | 2,848 | -3.3% | 2,766 | -0.4% |
| Trading net | 750 | 447 | 67.8% | 602 | 24.6% |
| Operating costs | -6,470 | -6,074 | -5,776 | ||
| Credit losses | 95 | -306 | -30 | ||
| Operating results | 8,267 | 8,364 | -1.2% | 8,516 | -2.9% |
| Net result | 6,393 | 6,582 | -2.9% |
