Major banks have outperformed the market over the past year, but the risk of profit-taking is mounting ahead of the upcoming earnings season, according to an analysis by Dagens industri.
First-quarter net profit is expected to decline by an average of just over 9 percent compared to last year, according to Factset forecasts. All major banks are being weighed down by falling net interest income, with Handelsbanken expected to post a double-digit drop while other major peers are projected to see declines of around 4-5 percent.
Following strong share price performance and increased global uncertainty, the probability of negative price reactions in connection with the reports is deemed greater than the potential for gains.
"Unfortunately, the stage is set for a dull repeat of the reactions seen during the full-year results," Di writes.
Svenska Handelsbanken AB is one of the leading Scandinavian banking groups. Income breaks down by activity as follows:
- corporate banking (43.5%);
- retail banking (33.6%);
- asset management (11.5%);
- capital markets and investment banking (5.2%): financial engineering, intervention in interest rate, foreign exchange and equity markets, stock market intermediation, etc.;
- insurance and pension fund management (1.4%);
- other (4.7%).
At the end of 2024, the group managed SEK 1,320.5 billion in current deposits and SEK 2,372.1 billion in current loans.
Income is distributed geographically as follows: Sweden (63.4%), the United Kingdom (19%), Norway (9.6%), the Netherlands (3.5%) and other (4.5%).
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