Handelsbanken defies brexit – want to grow in the UK – Swedish Dagbladet

happy and proud, Handelsbanken’s CEO Frank Vang-Jensen when he presented the company’s second quarter report. Photo: Daniella Backlund

There are a CEO that is obviously satisfied with his bank’s result for the first half.

– It’s been good. We have good earnings growth and we have good growth. We also have a good profitability increasing and very strong financial position, he said.

Sure it’s troubled times, but it has not affected the bank. Although some increases demands on doing right.

– Our task is to make a bank regardless of the environment we live in. There has been much volatility in the market, and a lot has happened. It requires all our employees that we all do our best, but I think the second quarter shows that we coped.

The situation of Handelsbanken is unique in the Swedish context, the bank has a large business in UK with around 200 branches and about 2000 employees. It also makes brexit will affect Handelsbanken far more than other Swedish banks. But despite that, is not afraid Frank Vang-Jensen continued investment in the UK market.

What were you thinking Midsummer morning?

– Yes, it took not long to be awake I can say. We have a very nice business in the UK. Handelsbanken is popular there, but we are not particularly large market share. We are niched towards strong customers, and we are fully confident that the trend will continue.

Though some may might wonder why a Swedish bank wants to be in a country that is likely will be characterized by great anxiety for a long time to come – but Handelsbanken’s CEO highlighted other aspects of the UK market.

– There is a very large country with 65 million inhabitants and the world’s fifth largest economy. All are in need of banking products like cards and mortgages. So it is today, and it will be tomorrow, he says, and continues:

– I am absolutely convinced that there are good opportunities for Handelsbanken to grow in the UK to come.

He speaks very if the bank’s strength – and believes that Handelsbanken already meets the new stricter requirements on banks’ exposure to companies that enter into force later this year.

While conducting Handelsbanken now an extensive restructuring program that was announced as the first quarter presented. According to the bank, it is a “bet”, but in practice it means a reduction. The branches are being merged and become what Handelsbanken call full service. Sometime next year, the restructuring will be completed.

How can you term this a bet?

– Because we reinforce the offices in their meeting with customers. I totally agree that the number of office runs from somewhere around 460 to somewhere 400, says Frank Vang-Jensen, and concludes:

– But we must have a branch network in the future to meet our customer requirements and the expectations and needs of our customers. If we do not, we get problems, and that is what we have done anything.

Trade Bank report in figures

Handelsbanken’s operating profit in the second quarter was 5.277 billion crowns better than last year’s 5.256 billion crowns – and far better than analysts were expecting (4.917 billion according to Reuters). Net interest income was 6.808 billion kronor, against 7.019 billion kronor in the second quarter last year.

Net commission income landed at 2.28 billion kronor (2.359 billion SEK), expenses decreased from 4,607,000,000 to SEK 4,417,000,000 million and credit losses landed at SEK 229 million (SEK 359 million).