Handelsbanken sees UK growth despite Brexit

Handelsbanken, Wells Road Business Centre, Wells Road, Ilkley.
Date:5th February, 2014. Picture James Hardisty.

Handelsbanken, Wells Road Business Centre, Wells Road, Ilkley. Date:5th February, 2014. Picture James Hardisty.

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Swedish challenger bank Handelsbanken said its business in Britain grew in the third quarter, shrugging off concerns that the vote to leave the European Union would hurt its ability to grow.

Handelsbanken, which has around 200 branch offices in Britain, saw UK operating profit in sterling currency increase by 9 per cent due to growing income and lower loan losses.

The bank said that while the underlying business was good the profit rise was offset by the sharp fall in the sterling against the dollar.

Group operating profit in the quarter rose to 5.69 billion Swedish crowns (£525.22m) compared with 4.73 billion a year earlier, in line with the mean forecast in a poll of analysts.

The result was helped by a 764 million crown windfall related to the sale of shares in Industrivarden, the bank’s main owner.

Net interest income rose to 7.04 billion crowns from 6.83 billion a year ago, while commission income fell to 2.26 billion crowns from 2.31 billion a year ago.

Loan losses totalled 476 million crowns, compared with 458 million a year earlier and a loss of 362 million seen by analysts.

Net gains on financial transactions rose to 1.11 billion crowns from 226 million in the year-ago period.

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