“In a quarter where costs are rising faster than revenues, we are of course not satisfied,” the bank writes in a press release.
The unexpectedly weak result means that the bank is now flagging for “resolute change work at a faster pace”.
Handelsbanken, one of the largest players in the Swedish mortgage market, reports an operating profit of SEK 8.3 billion for the first quarter of 2024. In the corresponding quarter a year earlier, the profit was SEK 8.5 billion.
Net interest, what the bank earned from the difference between deposit and lending rates rose to 11.6 billion in the most recently completed quarter. That compares with 11.5 billion a year earlier and analysts had expected it to rise to around 12.0 billion, according to a compilation of forecasts by Bloomberg.
According to the bank, the fact that it is a leap year this year, which gives an extra day during the quarter, contributed SEK 103 million to the net interest income. It would therefore have been unchanged if it had not been a leap year.
Net commissions, what the bank earns from fees and commissions was unchanged at 2.8 billion – also somewhat worse than expected.
In terms of credit losses, this was a positive item for Handelsbanken in the first quarter as a result of net reversals that amounted to plus SEK 95 million. During the first quarter of 2023, the credit losses were minus SEK 30 million.
However, costs for the bank are moving upwards by 12 percent during the quarter, to SEK 6.5 billion. This can be compared with 5.8 billion a year earlier. Personnel costs rise by 13 percent.
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Tags: Handelsbankens profit decreases slightly DN .se
