Handelsbanken's Q1 results show steady growth, as it builds a bank for the future

For immediate release, 17 April 2019

Handelsbanken, the local relationship bank with over 200 branches across the UK, has today announced its Q1 results1, showing steady growth as it builds a bank for the future, following its launch as a fully-licenced UK bank in December last year.

As the Bank invests in building strong and stable foundations for future growth, its emphasis on customer satisfaction, prudent banking and cost efficiency continued to help its branches deliver consistent quarterly increases in its business volumes.

Summary of the Q1 2019 figures compared to Q1 2018:

UK income increased by 7% to £142.3m

UK operating profit is up 8% to £54.6m for the quarter, excluding a one-off positive effect in 2018 related to a change in the pension plan (including the one-off positive effect, UK operating profit was down by 13%)

UK lending up 7% to £21.1bn: household lending (largely mortgages) up 4% to £6.7bn, corporate lending up 9% to £14.4bn

UK deposits up 11% to £14.6bn: household deposits up 7% to £4.6bn, corporate deposits up 13% to £10.0bn

Mikael Sorensen, UK CEO, says: “Having converted our UK operations to a subsidiary, and gained our UK banking licence last December, our priority has been to build strong and stable foundations for long term, sustainable growth.

“Strengthening our foundations for future growth allows us to pave a steady path, as we continue to focus on what we are good at: consistently meeting the ongoing demand we see for our distinctive model, delivered through the long term, personal relationships we form with our customers.

“As we build a bank for the future, it is encouraging to see our quarterly results confirm the health and soundness of our approach.

“This is supported by the most recent results of the Competition and Markets Authority’s independent service quality survey for business banking, in which we came top in four out of five of the categories identified for the second time2.”

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.

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 Rating3.

Handelsbanken plc, the official name of 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.

- 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 Q1 2019. 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 2019. For more information, please visit – www.bva-bdrc.com/products/business-banking-service-quality-great-britain/ Opens in a new window.

3 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 19 countries, and approximately 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 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.