Long-term sustainability and customer satisfaction drives consistent growth
Local relationship bank, Handelsbanken, has today announced its 2019 annual results, showing consistent year-on-year growth driven by its ongoing commitment to long-term sustainable values, and a focus on delivering high levels of customer satisfaction.
In its first year as a fully-licensed UK bank, Handelsbanken has continued to invest in its UK infrastructure, strengthening its foundations for continued growth and securing its long-term presence in the UK.
Meanwhile the Bank’s commitment to its local relationship banking model which, delivered through over 200 branches across the UK, places a predominant focus on providing high levels of bespoke customer service, has helped achieve consistent and profitable growth throughout the year.
Indeed, for 2019, the Bank’s UK business reported 5% growth in net lending to both individual and corporate customers to £21.4bn, with customer deposits rising 10% to £15.3bn.
The Bank saw particularly strong growth in corporate deposits, up 14% to £10.5bn, while household deposits also increased by 4% to £4.8bn. Operating profit increased by 4% to £222.8m and income increased by 4% to £582.3m.
Mikael Sorensen, UK CEO, says: “2019 was an exciting year in the development of Handelsbanken, marking our first full year as a UK licensed bank. Over the course of the last year we have continued to consolidate our business, investing further in developing the systems, infrastructure and expertise that have helped us build the foundations for future growth.
“Maintaining consistent growth in our business volumes, whilst undergoing this period of change demonstrates the strength of Handelsbanken’s local relationship banking proposition, and is testament to the hard work and unwavering commitment of our colleagues up and down the country.
“The investments we are making in our business mean we are now in an even stronger position to take full advantage of the strong growth potential we see in the UK. We have been here for almost four decades, but the truth is we are only just getting started. We look forward to providing our services to more and more customers who share our long-term thinking and sustainable values.”
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 distinct 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’s successful formula has, for the third 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 August 2019. And 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 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.
