Sweden's Handelsbanken Q2 profit falls as IT investments rise
Sweden's Handelsbanken Q2 profit falls as IT investments rise
Overview
Sweden-based retail bank's Q2 operating profit and EPS declined yr/yr
Lending and deposit volumes grew, led by UK, Netherlands, and Swedish household lending
Credit loss ratio remained at 0.00%, reflecting strong asset quality
Outlook
Handelsbanken did not provide specific guidance or forecasts for the current or future periods
Result Drivers
LENDING AND DEPOSIT GROWTH - Co said lending and deposit volumes increased, with strongest lending growth in the UK, Netherlands, and Swedish household segment
STABLE COST BASE - Co said total expenses decreased compared with the preceding year, despite salary adjustments and cost inflation, while IT investments increased
STRONG ASSET QUALITY - Asset quality remained favourable with a credit loss ratio of 0.00% for the second quarter
Company press release: ID:nWkrbw6PKF
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EPS |
| SEK 2.60 |
|
Q2 CET1 Capital Ratio |
| 17.20% |
|
Q2 Operating Profit |
| SEK 6.68 bln |
|
Q2 ROE |
| 12.80% |
|
Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 13 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Svenska Handelsbanken AB is SEK133.00, about 7.5% below its July 14 closing price of SEK143.85
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)