Handelsbanken (OTCPK:SVNL.F) Update / Briefing Transcript

Summary of Conference Call Company and Industry - The conference call pertains to a banking institution, discussing its financial performance and market conditions ahead of the interim report. Key Points and Arguments 1. Volume Growth: Overall volume growth in home markets remains subdued, as indicated by official statistics from Statistics Sweden [2] 2. Net Interest Income (NII) and Margin Sensitivity: The bank refrains from providing guidance on NIM due to various influencing factors such as funding and competition. Lower policy rates have negatively impacted transaction account deposit margins [2][3] 3. Day Count Effect: In Q3, there is one additional day compared to Q2, expected to contribute approximately SEK 30 million per day to net income [3] 4. Foreign Exchange (FX) Impact: FX movements across operating countries are expected to offset each other, with modest net FX effects on both income and cost lines [3][5] 5. Fee and Commission Trends: Savings-related fees, which constitute about two-thirds of commissions, are influenced by daily average stock market indices, which have shown a slight increase in Q3 compared to Q2 [4] 6. Non-Financial Trading (NFT): NFT income has averaged SEK 500 million to SEK 600 million per quarter, with potential volatility due to market conditions. No significant events were reported for Q3 [5] 7. Cost Management: Previous restructuring costs of SEK 58 million in Q2 are not expected to recur in Q3. Historical cost patterns are referenced for Q3 versus Q2 comparisons [6] 8. Capital Ratios: The CET1 ratio reported in Q2 was 18.4%, significantly above the SREP requirement. The bank aims to maintain a headroom of 50 basis points above the target range, with plans to eventually increase this to 100-300 basis points [6][7] 9. Risk-Weighted Assets (RWAs): No new information was provided regarding RWAs in Norway, with decisions pending from the Swedish Financial Supervisory Authority [10][11] 10. Wholesale Funding Costs: Credit spreads are tight in various markets, leading to lower funding costs. The bank has maintained normal funding activities, including two senior trades during the quarter [23] Other Important Content - The call emphasized that no new guidance or information would be provided, focusing instead on existing public information and historical trends [1][2] - The bank's strategy regarding balance sheet structure and funding activities remains unchanged despite market fluctuations [17][19] - There is uncertainty regarding the Single Resolution Fund fee for 2026, with no new information available from the regulatory authority [20]