By Dominic Chopping
STOCKHOLM--Svenska Handelsbanken's second-quarter net profit fell, missing analysts' expectations, as lower costs failed to offset a decline in income.
The Swedish bank on Wednesday reported net profit of 5.49 billion Swedish kronor ($564.3 million), down from 6.79 billion kronor a year earlier. Analysts polled by FactSet had forecast 5.92 billion kronor.
Net interest income fell to 10.69 billion kronor from 11.75 billion kronor, missing a forecast of 10.94 billion kronor.
Lending volumes increased in all home markets, albeit to a limited extent, while net interest income was held back by the significant appreciation of the Swedish krona, the bank said.
Execution on efficiency improvement work has contributed to a lower expense level in the bank, despite general cost inflation and the inclusion of salary adjustments for the year, it added.
The work to reduce expenses and improve efficiency has mainly been concentrated on central departments and business support units. Implemented measures have resulted in a lower head count among both employees and external resources, and an increased expense and efficiency focus--within all units--has also contributed to an improved cost base, Handelsbanken said.
The bank's common equity Tier 1 ratio, a key measure of financial strength, fell to 18.4%, from 18.9%.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
07-16-25 0145ET
