Handelsbanken continues record of strong growth following launch of new subsidiary

For immediate release, 6 February 2019

Handelsbanken, the local relationship bank with over 200 branches across the UK, has today announced solid year-on-year growth with the publication of its 2018 annual results(1). The results are the first to be announced since the launch of the Bank’s UK subsidiary in December.

In keeping with a robust set of Group results for 2018 available at www.handelsbanken.co.uk, the Bank’s UK business reported 10 per cent growth in net lending to both individual and corporate customers to £20.3bn, with customer deposits rising 11 per cent to £13.8bn.

The Bank saw particularly strong growth in household deposits, up 22 per cent to £4.6bn, while corporate deposits also increased by 6 per cent to £9.2bn. Operating profits increased by 55 per cent to £227.7m(2) and income increased by 14 per cent to £558.3m.

The result before credit losses meanwhile rose 11 per cent to £238.5m(3) – as the Bank continues to benefit from a focus on delivering exceptionally high levels of customer service, prudent banking and cost efficiency, through its network of branches, all empowered to make the majority of everyday banking decisions.

Mikael Sorensen, UK CEO, says: “Our continued growth demonstrates ongoing appetite for our distinctive banking model, which is based on the development of long term, personal relationships with our customers. Through these relationships we aim to consistently deliver the highest levels of service possible, whilst doing our utmost to meet our customers’ specific banking needs.

“Our network of 208 branches, stretching from Inverness to Truro, Colwyn Bay to Canterbury, enables us to operate in this way. We are fully committed to branch-based, relationship banking, which we see as fundamental to our growth and success.

“Our long term commitment to the UK was reaffirmed by the creation of our UK authorised subsidiary in December. This was a natural next step for us in our development. We see lots of potential for growth in the UK and are excited to embark on this new journey, building a bank for the future.”

Handelsbanken’s UK subsidiary has been assigned a long term credit rating of AA with a stable outlook by international credit ratings agency, Fitch; and a long term credit rating of AA- 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.

Handelsbanken customers enjoy direct access to experienced branch staff who are empowered to make decisions locally and deliver high levels of customer satisfaction, without the presence of product or sales targets. Over the years Handelsbanken, which launched in the UK in 1982, has developed into a bigger and broader UK business, based on customer demand for its distinctive approach to banking.

Handelsbanken’s successful formula has 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 for the first time in August 2018(4).

In October last year, Handelsbanken was rated as having the most satisfied and loyal customers of all British banks for the tenth year in a row, according to an independent survey of British banking customers run by EPSI Rating(5).

- ENDS -

For more information please contact:

Mariana Wall, Corporate Communications

020 7578 8198 / 07483 036 936


Notes to editors

1 Please note that the release reports Svenska Handelsbanken AB (publ)’s UK segment figures for 2018. 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 Excluding a one-off positive effect related to a change in the pension plan, UK operating profit rose by 46%.

3 Excluding a one-off positive effect related to a change in the pension plan, UK result before credit losses rose by 5%.

4 Competition and Markets Authority, August 2018. For more information, please visit – www.bva-bdrc.com/products/business-banking-service-quality-great-britain/ Opens in a new window.

5 EPSI Rating, October 2018. For more information, please visit - www.epsi-rating.com/wp-content/uploads/2016/07/EPSI-Rating-UK-Banking-2018.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 almost 800 branches in more than 20 countries, and approximately 12,000 employees.

Handelsbanken was established in Stockholm in 1871 and has operated in the UK since 1982. The local relationship bank manages a decentralised network of over 200 branches across Britain, with further expansion ongoing. The UK is one of Handelsbanken’s six “home market” countries, where the bank offers full service banking to domestic market customers, the other countries being Sweden, Denmark, Norway, Finland and the Netherlands.

In the UK, Handelsbanken is a full-service bank with a decentralised way of working, a strong local presence due to a nationwide network of over 200 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 management services provided by specialists, Handelsbanken Wealth Management. Its investment management services are provided through its UK subsidiary, Heartwood Investment 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 the bank does not offer its branch staff bonuses.

Heartwood Investment Management is a trading name of Heartwood Wealth Management Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA) in the conduct of investment business, and is a wholly-owned subsidiary of Handelsbanken.

The value of any investment and the income from it is not guaranteed and can fall as well as rise, so that you may not realise the amount originally invested.