Handelsbanken Q2 results confirm continued focus on supporting local customers

For immediate release, 15 July 2020

Local relationship bank, Handelsbanken, has today announced its second quarter (Q2 2020) results(1), showing ongoing steady increases in both lending and deposit-taking, as the Bank continues to focus on supporting local customers through the ongoing crisis.

Over the first half of 2020, Handelsbanken saw a 3 per cent year-on-year increase in overall net lending to individual and corporate banking customers to £21.9bn; with the majority of the increase in corporate lending taking place in Q2, in response to the coronavirus pandemic.

The Bank also recorded a 15 per cent increase in overall customer deposits to £16.9bn, including 17 per cent growth in corporate deposits. This year-on-year increase included a net influx of corporate deposits during the last quarter (Q2 2020), in part reflecting the Bank’s reputation for financial prudence and solidity.

Mikael Sorensen, UK CEO, says: “We’ve always been a conservative bank and lent responsibly to our customers whatever the economic conditions. We are fortunate to work with customers who share our values, including the desire to have a local, individual relationship with their bank, and now more than ever, our priority is to use our knowledge of how the crisis is affecting them to offer targeted advice and support.

“Our branches have remained open throughout the last three months, with our colleagues across the Bank working flexibly to cater to each customer’s needs and help them navigate their individual challenges. As well as providing access to government schemes such as mortgage payment deferrals and the Coronavirus Business Interruption Loan Scheme, we have strived to respond to the needs of each of our customers from ‘Day One’, and have introduced further crisis funding support of our own.

“With small businesses being the backbone of our economy, we are particularly pleased to report continued corporate lending support, much of which to our SME customers.

“We’re accurately aware of the anxiety and uncertainty that so many will be feeling as this historic economic crisis unfolds, and are therefore pleased if our stable, responsible banking approach can bring some level of reassurance to both customers and employees. As we move through new phases of this crisis, our focus on supporting our customers will remain just as sharp, looking both to the short and long term.”

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 fourth 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 February 2020(2). In addition, for the eleventh 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 into a bigger and broader 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; 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 UK

07483 036 936


Notes to editors

1 Please note that the release reports Svenska Handelsbanken AB (publ)’s UK segment figures for Q2 2020. 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 2020. 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 2019. For more information, please visit - www.epsi-rating.com/wp-content/uploads/2016/07/EPSI-Rating-UK-Banking-2019.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 750 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 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.