Sweden's Handelsbanken Q3 operating profit below consesus estimates

Overview

• Sweden-based bank's Q3 operating profit rose 10% vs Q2, adjusted for comparability items

• Q3 EPS increased

• Income rose and expenses fell as lending and assets under management reached record levels

Outlook

• Company expects CET1 capital requirement to fall by about SEK 3 bln after new PD model

• Handelsbanken says financial strength supports continued stable and profitable growth

Result Drivers

• INCOME GROWTH - Co said higher net interest income, fee and commission income, and gains on financial transactions lifted income

• EXPENSE CONTROL - Co said lower expenses contributed to improved results

• LENDING AND SAVINGS - Lending volumes rose, mainly in the UK and Netherlands, and assets under management reached record levels due to market gains and net inflows

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "sell" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 14 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Svenska Handelsbanken AB is SEK145.00, about 5.7% below its October 20 closing price of SEK153.70

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

• Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin

• Oct 20 - Bank OZK Q3 net income falls 9%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)