Handelsbanken’s Q4 profits beat analysts’ predictions

Svenska Handelsbanken AB, Sweden’s biggest property lender, unexpectedly offered a dividend that surpassed the highest prediction, as its profit for the fourth quarter exceeded analysts’ forecasts.

The bank, based in Stockholm, reported on Wednesday a net income of 7.24 billion kronor ($690 million), surpassing Bloomberg analysts’ estimates.

Handelsbanken’s net interest income, which reflects profits from loans and deposits, increased by 15 per cent to 12.22 billion kronor in the fourth quarter compared to the same period last year, aligning with the average estimate.

The bank plans to distribute a dividend of 13 kronor per share, surpassing Bloomberg’s highest estimate of 11.34 kronor. Half of this amount is an additional payout.

Nordic banks’ net interest income showed varied trends from the third to the fourth quarter, indicating that the benefits from previous interest rate hikes are fading.

Handelsbanken’s net interest income didn’t change between these quarters. Meanwhile, Swedish banks have seen a rise in attention towards their substantial real estate loans.

This comes as property companies face financial scrutiny due to high borrowing and a spike in interest rates.

Handelsbanken holds the most significant loans in the sector, in both relative and absolute measures.

The net credit losses stayed fairly low at 52 million kronor, much lower than the 301 million kronor predicted by analysts.