Sweden's Handelsbanken Q3 operating profit below consesus estimates (updated)
UPDATE 1-Sweden's Handelsbanken Q3 operating profit below consesus estimates Adds consesus estimates and rewrites headline
Overview
Sweden-based bank's Q3 operating profit rose 10% vs Q2, adjusted for comparability items
Q3 EPS increased
Income rose and expenses fell as lending and assets under management reached record levels
Outlook
Company expects CET1 capital requirement to fall by about SEK 3 bln after new PD model
Handelsbanken says financial strength supports continued stable and profitable growth
Result Drivers
INCOME GROWTH - Co said higher net interest income, fee and commission income, and gains on financial transactions lifted income
EXPENSE CONTROL - Co said lower expenses contributed to improved results
LENDING AND SAVINGS - Lending volumes rose, mainly in the UK and Netherlands, and assets under management reached record levels due to market gains and net inflows
Company press release: ID:nWkr5GWvWC
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS |
| SEK 2.87 | 2.93 |
Q3 CET1 Capital Ratio |
| 17.00% |
|
Q3 Operating Profit |
| SEK 7.35 bln | 7.80 bln |
Q3 ROE |
| 13.5% |
|
Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 14 "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 SEK145.00, about 5.7% below its October 20 closing price of SEK153.70
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin
Oct 20 - Bank OZK Q3 net income falls 9%
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)