Handelsbanken in the UK continues prudent approach whilst focus remains on customers

16 July 2021

Summary of Q2 2021 results, January-June 2021 figures compared with January-June 2020 (1): 

  • Deposits up 14% to £19.2bn (corporate deposits up 17% to £13.7bn)
  • Lending down 4% to £20.9bn (corporate lending down 4% to £14.3bn)
  • Assets under management up 19% to £4.4bn
  • Income decreased by 5% to £269.8m
  • Result before credit losses down by 24% to £73.7m 
  • Loan loss ratio of -0.04% 
  • Operating profits down by 10% to £78.8m 

Mikael Sorensen, UK CEO, says: “At this time of continuing uncertainty, with economic recovery still at an early, tentative stage, our naturally responsible banking approach feels as relevant as ever. We continue to take a prudent, long-term view in our decision-making, and remain focused on helping our customers navigate the challenges and opportunities that lie ahead of them. 

“We value greatly the high levels of trust our customers have in us demonstrated through the strong development we are seeing in deposits and increased levels of investment through our wealth and asset management arm. 

"As well as our branches' daily efforts to provide their customers with the best possible banking and wealth management service, we are focusing on enhancing our digital offering. Our aim is to provide customers with a Handelsbanken quality of service however and wherever they choose to interact with us and to use digital opportunities to make much more of the strong, real-world relationships that characterise our approach." 

“As the Government's plans for decarbonising the economy become clearer through the rest of this year and beyond, we will be engaging more with our customers on how these changes may affect their homes, lifestyles and businesses, and how we can support them in their own transitions to Net Zero, in turn helping us reach our own ambitious 2040 commitment.”

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 sixth time, led to the Bank topping recommendations for overall quality of service in the Competition and Markets Authority’s independent service quality survey for business banking, the results of which were most recently published in February 2021 (2). 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 customers (3).

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. 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.

- ENDS -

For more information please contact: 

Mariana Wall, Corporate Communications UK

07483 036 936

mariana.wall@handelsbanken.co.uk


Notes to editors

1 Please note that the release reports Svenska Handelsbanken AB (publ)’s UK segment figures for Q2 2021. Segment reporting presents income / expenses and assets / liabilities broken down by business segments. A business segment is a part of the Group and runs operations which generate external or internal income and expenses; and of which the profit / loss is regularly assessed and followed up by the company management, as part of corporate governance. 

2 Competition and Markets Authority, February 2021. For more information, please visit:  https://www.bva-bdrc.com/products/business-banking-service-quality-great-britain/ Opens in a new window.

3 EPSI Rating, September 2020. For more information, please visit - https://www.epsi-rating.com/wp-content/uploads/2021/05/EPSI-Rating-UK-Banking-2020.pdf Opens in a new window

For photos and logos, please visit: www.handelsbanken.co.uk/media.

Handelsbanken is the trading name of Handelsbanken plc, which is incorporated in England and Wales with company number 11305395. Registered office: 3 Thomas More Square, London, E1W 1WY, UK. Handelsbanken plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 806852.

Handelsbanken plc is a wholly-owned subsidiary of Svenska Handelsbanken AB (publ).

In Sweden, Handelsbanken is one of country’s leading banks with approximately 600 branches across six home markets, and over 12,000 employees.

Handelsbanken was established in Stockholm in 1871 and has operated in the UK since 1982. The UK is one of Handelsbanken’s six “home market” countries, where the bank offers relationship banking to domestic market customers, the other countries being Sweden, Denmark, Norway, Finland and the Netherlands. 

In the UK, Handelsbanken is a relationship bank with a decentralised way of working, a strong local presence due to a nationwide network of branches and a long-term approach to customer relations. Handelsbanken specialises in providing personalised and competitive banking services to both businesses and individuals, as well as wealth and investment management services through its UK subsidiary Handelsbanken Wealth & Asset Management. Each Handelsbanken branch operates as a small business enabling it to make decisions at a local level and provide a service that is bespoke. The focus is always on the need of the individual customer and not on the sale of specific products, hence neither the bank nor its wealth and asset management subsidiary offers its staff bonuses.

For information regarding sustainability at Handelsbanken, please see here: https://www.handelsbanken.co.uk/en/about-us/sustainability.