Handelsbanken 2Q Net Profit Rises 29%
18 July 2018 - 3:24PM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Svenska Handelsbanken AB (SHB-B.SK) on Wednesday
posted a 29% rise inits second-quarter net profit, boosted by
higher income and the sale of its stake in a credit reference
agency.
Net profit at the Sweden-based bank rose to 5.23 billion Swedish
kronor ($593.2 million) in the three months ended June 30 from
SEK4.06 billion in the same period a year ago, against analysts'
expectations for SEK5.03 billion in a FactSet poll.
The bank said that technical advances will mean that, over time,
most administration can be digitalized. Handelsbanken is carrying
out a strategic initiative for improving efficiency, and will
gradually implement this.
It said it intends to quantify the effects of the efficiency
measures in its third quarter interim report.
In its IT investments over the next few years, the bank will
carry out digital integration within both its mortgage loan
business and its broader corporate business.
In the U.K., Handelsbanken said it is preparing for the
implementation of Brexit in close consultation with public
authorities in both Sweden and the U.K.
"The bank's low tolerance of risk, sound capitalisation and
strong liquidity situation mean that Handelsbanken is also
well-equipped to operate under substantially more difficult market
conditions than those experienced during the past few years," it
said.
The SEK300 million cost guidance for development work on U.K.
operations during 2018 still stands, it said.
Second-quarter net interest income at the bank rose 7.9% on year
to SEK7.9 billion from SEK7.32 billion, while loan losses edged
higher to SEK222 million from SEK186 million.
Handelsbanken's common equity Tier 1 ratio--a key measure of
financial strength--fell to 21.4% at the end of the quarter from
23.4% a year earlier.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
July 18, 2018 01:09 ET (05:09 GMT)
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