Better on pretty much every point

It was fairly clear that Handelsbanken would not be able to measure up to the tough comparison figures that 2023 entailed. The profit before tax was less than quarter 3 last year but still 12%!  higher than analysts expected.

What the market has wanted to see for a long time is the item concerning Handelsbanken’s costs, which have long been a wet blanket. Costs rose by 5% but were significantly lower than expected. In addition, the bank ensures that instead of depositing more for future credit losses, SEK 141 million is returned. It shows that there is a strong belief that credit losses will continue to be at a low level.

When the half-yearly report came, we could read that they had taken some one-off costs and got rid of staff. This was one of the points that CEO Michael Green raised in his streamlining process, which is now beginning to show effect. Many have previously made fun of him when he stopped the marble floor that was to be laid in the head office while costs continued to rise despite it. But many streams small…

If you try to fish for something negative, it is that the bank’s Swedish mortgage share fell by 1%. This is by far the most important part for Handelsbanken, which accounts for 41% of total lending. Growth in the Swedish mortgage market was 0.9% at an annual rate in August.

Good dividend next year

The average forecast for the dividend next year is SEK 11.5/share and the question is whether it will not be increased slightly after today’s report. In any case, it gives a direct return of just over 11% if you buy the cheaper A share.

Of course, this is not a figure that will be maintained in the coming years, where you can instead count on maybe 5-6%. Now is a good time to pick up shares for a large upcoming dividend.