Handelsbanken’s Q3 results show strong UK growth
Handelsbanken, the local relationship bank with over 200 branches across the UK, has today announced its Q3 results, showing continued growth across the country.
The relationship bank’s long-term focus on customer satisfaction, prudent banking and cost efficiency has helped Handelsbanken deliver a strong set of results for the third quarter of the year, with household deposits again seeing a particularly high increase of 25%.
Summary of the Q3 results January – September 2018 figures compared with January – September 2017:
UK lending up 11% to £20.1bn: household lending (largely mortgages) up 7% to £6.5bn, corporate lending up 13% to £13.6bn
UK deposits up 12% to £13.5bn: household deposits up 25% to £4.5bn, corporate deposits up 6% to £9.0bn
UK income increased by 13% to £411.4m
UK operating profits up by 18% to £171.6m*
Handelsbanken’s unique, customer-centric approach has not only enabled it to deliver a strong set of quarterly results, it has also resulted in the Bank having the most satisfied and loyal customers of all British high street banks for the tenth year in a row, according to an independent survey of British banking customers run by EPSI Rating.The survey also found Handelsbanken to have more satisfied customers than the average for the banking sector in each of Handelsbanken’s five other home markets.
Both sets of results are encouraging as Handelsbanken progresses with its plans to create a UK authorised subsidiary – a natural next step in its development. Over recent years Handelsbanken has developed into a bigger and broader UK business based on demand for its local decision-making approach, where customers enjoy direct contact with experienced branch staff who have no product or sales targets. It is a successful formula that recently also led to Handelsbanken receiving top recommendations for its services to SME customers in 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.
Mikael Sorensen, Handelsbanken UK CEO, comments: “Both our strong Q3 results and our positive EPSI ratings reinforce the continued demand for our relationship banking here in the UK.
“Customer satisfaction is our absolute priority and we are very proud to have the most satisfied and loyal customers for the tenth year in a row.
“We are currently investing in creating a UK subsidiary that will enable us to take full advantage of the growth potential we see in the UK.
“We are building a bank for the future that will combine our branch-based model with compelling digital solutions, ensuring that we continue delivering the excellent service customers have come to expect of us.
“The investments we are currently making in these areas will strengthen our foundations for future growth and enable us to take full advantage of the growth potential we see in the UK market.”
Dr Jacob Hallencreutz, EPSI CEO, says: “Ever since we started running this survey in the UK ten years ago, Handelsbanken has consistently stood out amongst its peers.
“Customers clearly appreciate Handelsbanken’s idea of combining local, personal relationships with digital services.
“Such high levels of customer satisfaction and loyalty for both private and business banking tell us that there’s something fundamental about Handelsbanken’s approach that produces these results.”
International credit rating agency, Fitch, assigned the subsidiary, Handelsbanken plc, with an expected rating of AA with a stable outlook – the same rating as Handelsbanken Group. The expected rating was partly based on Fitch’s belief of an extremely high probability of support from Group for its UK subsidiary.
Today’s UK results for Q3 2018 are published among a set of strong Group results (available at www.handelsbanken.co.uk) and reaffirms the Bank’s exceptionally strong capital and liquidity positions and its consistently low credit loss ratios. These and other factors have earned Handelsbanken among the highest credit rating of any international bank