Handelsbanken

Operations

Handelsbanken is a universal bank with the business concept of offering a comprehensive range of high quality financial services to private and corporate customers in the Nordic region and the U.K. A fundamental tenet of this concept is that overall customer responsibility rests with the local branch that serves the customer.

This enables deep and enduring customer relationships that are characterized by availability, simplicity and a high degree of service.

The branches conduct their marketing activities by assigning local priorities to customer categories or product areas. Through consistent application of this highly effective business model, Handelsbanken has strengthened its position despite a tough market.

Handelsbanken has a strong position in the Swedish market, with 461 branches. In the other Nordic countries the bank has a total of 146 branches, plus 83 branches in the U.K. and 32 in the rest of the world. In all, Handelsbanken is active in 22 countries. Operations are geared for continued growth, mainly organic, in selected markets. Handelsbanken aspires to have the most satisfied customers while achieving higher cost effectiveness than its peer banks. Profitability is always prioritized above volume. In the bank’s lending activities, this entails that credit quality may never be sacrificed to achieve higher volumes or margins.

Handelsbanken - Our ownership perspective

A well developed universal banking business and decentralized branch network with local customer responsibility contribute to high customer satisfaction which enables good profitability.

• Consistently applied business model.
• Higher profitability than the average for peer competitors.
• Higher market shares, improved productivity and strengthened positions in a tough market.
• Organic growth in priority markets in the Nordic countries and
  the UK.

Ownership focus

Good profitability and organic growth with broadened geographic base..

Handelsbanken - Performance 2010

• Operating income rose 8% to SEK 14.8 billion (13.7) Total income amounted to SEK 31.3 billion (32.3). Net interest fell 3% to SEK 21.3 billion and net commissions rose 9% to SEK 8.0 billion.
• Loan losses fell to SEK 1.5 billion (3.4).
• Return on equity increased to 12.9% (12.6%).