FX.co ★ Handelsbanken Q1 Profit Down, Despite Higher Net Interest Income; Plans Strategic Refocus

Svenska Handelsbanken AB (SVNLF.PK), a banking institution based in Sweden, announced on Wednesday that its profit for the first quarter fell three percent to 6.60 billion Swedish kronor compared to 6.81 billion kronor from the same period in the previous year.

Earnings per share also decreased, coming in at 3.33 kronor which is a drop from last year's 3.44 kronor. Profits from continuing operations within the time frame were 6.39 billion kronor, marking a three percent drop from the 6.58 billion kronor earned a year ago.

The operating profit for the quarter was 8.27 billion kronor, once again reflecting a three percent decline. Conversely, total income exhibited a two percent increase, amounting to 15.32 billion kronor from last year's 14.99 billion kronor. Net interest income also experienced a slight increase of one percent from last year, coming in at 11.59 billion kronor.

However, the bank acknowledged that the net interest income has been adversely affected by decreasing margins. Lastly, the company mentioned that due to the prolonged weak performance of Norwegian operations, they've decided to undertake a strategic refocus following a thorough review.