Handelsbanken’s sustainable values and prudent approach see consistent growth in Q1

Local relationship bank, Handelsbanken, has today announced its Q1 2020 results, showing ongoing steady growth in lending and deposit-taking, driven by the Bank’s core values of trust, customer focus and sustainable business.

In the first quarter of 2020, Handelsbanken, which places a predominant focus on providing high levels of bespoke customer service through its distinct relationship banking model, saw a 3% year-on-year increase in net lending to both individual and corporate customers to £21.7bn, and a 13% increase in overall customer deposits to £16.5bn.

With over 200 branches across the UK, the Bank saw particularly strong growth in corporate deposits, up 13 per cent to £11.3bn, along with a 2% rise in corporate lending, to £14.7bn.

Mikael Sorensen, UK CEO, says: “It is pleasing to see that Handelsbanken’s distinct approach has once again led to a consistent growth in Q1. Our model has been tried and tested over 50 years, and has shown itself to be stable and resilient. This gives our customers some much-needed reassurance at times like these.

“As always, our focus is on supporting our customers and, especially now, we are seeing the benefits of the long-term personal relationships our branches have formed with them. Our empowered local teams are acting as their customers’ trusted partners, helping them with their short-term needs, while also helping them look to the longer term.

“The strength of our liquidity and capital position means we are well prepared to continue supporting our customers in this way, during the extended market turbulence the coronavirus pandemic is causing.

“Meanwhile, looking ahead, we continue to invest in our UK bank, building the foundations and infrastructure to ensure our continued growth in the very long term.”

Handelsbanken customers enjoy direct access to experienced branch teams who are empowered to make decisions locally and deliver high levels of bespoke customer service, 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 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’s successful 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.

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.

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.