Handelsbanken CEO Views Cautious Customers as a Positive Sign

The share in Handelsbanken is plummeting downwards in the initial stock market trading after the bank's report for the year's second quarter. Both the profit and the net interest income – what the bank earns on the difference between deposit and lending rates – were lower than expected. We try to be as unaffected by currencies and interest rates as we can, says Handelsbanken's CEO Michael Green.

» Published: July 16 2025

Handelsbanken CEO Views Cautious Customers as a Positive Sign
Photo: Claudio Bresciani/TT

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In the initial trading on the Stockholm stock exchange after the report, Handelsbanken is at a minus of 8 percent.

Handelsbanken reports an operating profit of almost 7.2 billion kronor for the second quarter of 2025. This can be compared to the profit of 8.1 billion kronor for the corresponding period the previous year and was also slightly worse than the market's expectations, which were at 7.5 billion kronor.

The report shows that lending to mortgages decreased. Handelsbanken's CEO Michael Green says that mortgages are now a low-margin product for the bank.

But we are where our customers are, if they become more confident in the financial future and are not so worried about tariffs, inflation, and interest rates. Then they will actively increase and want to make their investments. Then we are with them, says CEO Michael Green and notes that there is still low activity among both private individuals and companies.

When you are not safe in what you see ahead, then you wait. I think it's fundamentally healthy.

Net interest income fell by 6 percent

Net interest income, what the bank earns on the difference between deposit and lending rates, fell at the same time by 6 percent to 10.7 billion.

Even there, one had from the market expected significantly better (on average 10.9 billion kronor). Total revenue amounted to 13.6 billion kronor, compared to 14.8 billion kronor for the corresponding period the year before.

It's not surprising, in a falling interest rate environment, it will have an impact on all banks' net interest income. It will come at slightly different times, now it looks like this for us.

Fewer employees

Positive for the bank, however, is that costs are being kept in check and now amount to just over 6 billion kronor, in line with the corresponding quarter of the same period in 2024. The report notes that the bank has fewer employees.

Now we are in a situation where we are working on and always being careful about our costs and trying to be frugal in our operations.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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