Svenska Handelsbanken AB on Wednesday reported an 8% rise in third-quarter operating profit, citing improved efficiency and income growth that offset pressure on interest rate margins.
The Swedish lender's operating profit for the three months ended Sept. 30 was 7.77 billion Swedish kronor, up from SEK 7.16 billion in the second quarter.
For the first nine months of the year, however, operating profit fell to SEK 23.07 billion from SEK 25.84 billion a year earlier.
The bank said its cost-to-income ratio improved to 40.5% from 44.2% in the prior quarter, attributing the gain to a focus on trimming expenses.
Asset management and lending volumes climbed in all its home markets, particularly in the U.K. and the Netherlands, according to the company.
Handelsbanken said credit quality remained good, with credit losses consisting of net reversals for the seventh consecutive quarter.
The bank's common equity tier 1 ratio, a key measure of financial strength, stood at 18.2%, compared with 18.4% at the end of June.
Anticipated dividends for the first nine months amounted to SEK 10.65 per share, equivalent to 119% of profit for the period, the company said.
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Svenska Handelsbanken AB on Wednesday reported a fall in second-quarter profit but said it anticipates paying a dividend for the first half of the year that is larger than its earnings for the period.