Handelsbanken Reports Decline in Q2 2025 Financial Performance
Handelsbanken reports a decline in operating profit and revenues for Q2 2025, missing market expectations.
Key Points
- • Handelsbanken's Q2 2025 operating profit fell to 7.2 billion kronor, down from 8.1 billion kronor a year earlier.
- • Net interest income decreased by 6% to 10.7 billion kronor, below the expected 10.9 billion kronor.
- • Total revenues for the quarter dropped to 13.6 billion kronor from 14.8 billion kronor year-on-year.
- • Loan volumes modestly increased but were offset by external economic factors.
- • Operating costs remained stable, reflecting cost-reduction strategies.
Handelsbanken has released its financial report for the second quarter of 2025, revealing a notable decline in operating profit and net interest income, falling short of both last year's performance and market expectations.
The bank reported an operating profit of nearly 7.2 billion kronor, a decrease from 8.1 billion kronor in Q2 2024, and it fell below market forecasts of 7.5 billion kronor. Net interest income dropped by 6% to 10.7 billion kronor, which was also less than the expected 10.9 billion kronor. Despite modest growth in loan volumes across all home markets, the bank's net interest income was adversely impacted by a strong Swedish krona and the inability to replicate previous favorable pricing effects between lending and borrowing rates.
Handelsbanken maintained its operating costs steady at just over 6 billion kronor, consistent with the same period in the previous year, thanks to ongoing cost-cutting measures. Total revenues also decreased to 13.6 billion kronor, down from 14.8 billion kronor year-on-year. In their interim report, the bank highlighted these challenging conditions within the economic landscape, impacting their overall financial results.
"While we have seen loan volume growth, the challenging conditions have led to a lower net interest income compared to our expectations," said a spokesperson from Handelsbanken.
As the economic situation continues to evolve, Handelsbanken is focusing on cost efficiency and resource management to navigate through these financial challenges.