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PRESS RELEASE Handelsbanken's Interim Report JANUARY - MARCH 2021 January - March 2021 - compared with January - March 2020 Operating profit increased by 9 % to SEK 5,612m ( 5,142 ) . Adjusted for foreign exchange effects and the year's provision for Oktogonen , operating profit increased by 15 % . Return on equity inreased to 10.6 % ( 10.3 ) . Earnings per share increased to SEK 2.21 ( 1.99 ) . The common equity tier 1 ratio increased to 20.2 % ( 17.6 ) . The credit loss ratio was 0.01 % ( 0.08 ) . Income increased by 1 % to SEK 11,292m ( 11,178 ) . Adjusted for foreign exchange effects , income increased by 3 % . Continued large inflows to the Bank's mutual funds . Net inflows amounted to SEK 25bn ( -6 ) during the period . The managed fund volume increased by 46 % to SEK 848bn ( 582 ) . Of the total net flows in the Swedish mutual fund market , 40 % was to Handelsbanken's funds . The underlying increase in expenses , adjusted for Oktogonen and foreign exchange effects , was SEK 115m , or 2 % , with the entire increase and more being attributable to increased development costs . Including Oktogonen and foreign exchange effects , expenses grew by 3 % to SEK -5,683m ( -5,506 ) . The C / I ratio was 50.3 % ( 49.3 ) . Q1 2021 - compared with Q4 2020 21 April 2021 Credit quality remains very good and credit losses consisted of net recoveries of SEK + 8m ( -97 ) . Expected credit losses in Stage 3 totalled SEK - 24m ( -145 ) . The cost - cutting programme is proceeding according to plan , and thus far , measures corresponding to SEK 1bn have been decided on / initiated since Q3 2020 , with achieved positive effects on profit of SEK 200m . Operating profit decreased by 2 % to SEK 5,612m ( 5,712 ) . Return on equity was 10.6 % ( 10.9 ) . Earnings per share amounted to SEK 2.21 ( 2.21 ) . Income decreased by 1 % to SEK 11,292m ( 11,431 ) . Expenses increased by 1 % to SEK -5,683m ( -5,616 ) . The C / I ratio was 50.3 % ( 49.1 ) . The Bank presented measurable sustainability goals for its core business , including one specific climate goal : Net zero emissions of greenhouse gases as soon as possible , and by 2040 at the latest . An additional sustainability goal is that the Bank aims to reduce the wealth gap that exists today between men and women . To this end , the Bank's ambition is to create better conditions for women to achieve higher returns on their savings . Change after adjustment of Change after adjustment of items affecting comparability * items affecting comparability * Q1 Q4 Change Jan - Mar Jan - Mar Change SEK m 2021 2020 % Net interest income 7,818 7,861 -1 % SEK m -78 % 2021 2020 % SEK m % -1 % 7,818 8,230 -5 % -227 -3 % Net fee and commission income 2,963 2,884 3 % 78 3 % 2,963 2,700 10 % 304 11 % Other income 511 686 -26 % -177 -26 % 511 248 106 % 272 110 % Total income 11,292 11,431 -1 % -177 -2 % 11,292 11,178 1 % 349 3 % Staff costs , excl . Oktogonen -3,435 -3,457 -1 % 35 -1 % -3,435 -3,478 -1 % -47 1 % Oktogonen -213 -213 0 % -213 0 Other expenses -2,035 -1,946 5 % -83 4 % -2,035 -2,028 0 % -68 3 % Total expenses -5,683 -5,616 1 % -48 1 % -5,683 -5,506 3 % -115 2 % of which development costs -708 -642 10 % -708 -513 38 % Total expenses , excl . Oktogonen , exchange effekts and development costs -4,743 -4,761 0 % 18 Credit losses Operating profit 8 5,612 -97 107 5,712 -2 % -117 0 % -110 % -2 % -4,913 8 -4,993 -2 % 80 -2 % -538 5,612 5,142 9 % 756 15 % * Adjusted for exchange effects and , if applicable , non - recurring and special items . As in the fourth quarter of 2020 , a provision of SEK -213m was made for the Oktogonen profit - sharing scheme in the first quarter . Handelsbanken