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Handelsbanken Q3 net profit beats forecast, amidst economic slowdown

EditorPollock Mondal
Published 10/18/2023, 02:45 AM
© Reuters.

Svenska Handelsbanken reported a Q3 net profit of SEK7.95 billion ($728.6 million) on Wednesday, exceeding the FactSet consensus forecast of SEK6.75 billion. This marks a significant increase from SEK5.79 billion year-on-year.

Net interest income rose to SEK12.18 billion from SEK9.58 billion, surpassing the forecast of SEK11.93 billion. Amidst an economic slowdown and higher interest rates, deposit and lending volumes have leveled off as competition in the banking sector has intensified.

Despite these challenges, CEO Carina Akerstrom confirmed an income rise and steady growth in net interest income and the savings business amidst economic deceleration. Akerstrom emphasized that cost-efficiency measures have led to an improved cost-to-income ratio along with limited credit losses, contributing to robust, stable growth and profitability.

The bank's common equity Tier 1 ratio, a key measure of financial strength, increased to 19.4% from 19.0%. This improvement is indicative of the bank's resilience in a challenging economic environment.

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