Summary of 2020 annual results, January-December 2020 figures compared with January-December 2019 (1):
- Lending up 1% to £21.7bn (corporate lending up 1% to £14.8bn)
- Deposits up 15% to £17.6bn (corporate deposits up 19% to £12.5bn)
- Assets under management steady at £4.0bn
- Income decreased by 4% to £557.1m
- Result before credit losses down by 15% to £187.9m
- Loan loss ratio of 0.04%
- Operating profits down by 20% to £177.2m
Mikael Sorensen, UK CEO, says: “As a bank, we see it as our duty to stand strong and support our customers through the economic cycle. Over the last 12 months we have sought to fulfil this responsibility by keeping our branches open throughout, staying close to our customers and providing proactive support tailored to meet customers’ distinct needs.
“We’ve been encouraged by the trust our customers continue to place in us, which is well illustrated by the steady rise in deposits since the crisis began, as well as by how effectively we’ve been able to deal with any difficulties together. We remain focused on assisting our customers through these uncertain times, as well as helping them prepare for a world beyond the pandemic, both in terms of economic recovery and the longer-term transition to a low-carbon economy.
“Our local, relationship banking approach appears to be particularly valued at times like these. This year and beyond, we will be enhancing this approach through further investment in our digital capabilities. This investment is part of our plans to build a bank for the future, placing expertise and support closer to our branches so that our customers can choose how they want to engage with us and enjoy the best of both worlds - excellent personal service coupled with improved digital platforms and tools.”
Handelsbanken forms long-term, personal relationships with customers, through its distinct local relationship banking model. Customers have direct access to experienced branch teams who are empowered to make decisions locally, based on each customer’s specific needs and without product or sales targets.
This formula has, for the fifth time, led to the Bank topping recommendations for its services in four of the five categories of the Competition and Markets Authority’s independent service quality survey for business banking, the results of which were published in August 20202. In addition, for the twelfth year in a row, Handelsbanken has been top-ranked for satisfaction, for both personal and business banking, in an independent survey of British bank customers3.
Handelsbanken launched in the UK in 1982 and, over the years, has developed its UK business, based on customer demand for its personal approach to banking.
In December 2018, in a demonstration of its long-term commitment to the UK, Handelsbanken became a fully licensed UK bank, Handelsbanken plc, a wholly-owned subsidiary of its Swedish parent, Svenska Handelsbanken AB (publ).
Handelsbanken has since continued to invest in its UK infrastructure, strengthening its foundations for ongoing growth and securing its long-term presence in the UK.
Handelsbanken plc has been assigned a long-term credit rating of AA with a negative outlook by international credit ratings agency, Fitch – a position reaffirmed in September 2020. Handelsbanken plc also has a long-term credit rating of AA- with a stable outlook by Standard & Poor’s. The ratings are the same as those given for the subsidiary’s Swedish parent, Svenska Handelsbanken AB (publ), and confirm the Bank’s strength, stability and creditworthiness.
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For more information please contact:
Mariana Wall, Corporate Communications UK
07483 036 936