Handelsbanken to Exit Denmark and Finland
October 19 2021 - 1:32PM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Svenska Handelsbanken said Tuesday that it will cease
operating in Denmark and Finland and is beginning a process to
divest its operations in the countries.
The bank said that together, Denmark and Finland account for 10%
of group income, 13% of costs and 8% of operating profit and it
sees little opportunity to scale up its offering without
significant investment.
"From a commercial perspective, we want to have a presence in
those locations offering the best conditions for profitable growth
and a strong market position," said Handelsbanken Chief Executive
Carina Akerstrom.
"With this decision, we are strengthening the bank's ambitions
in our primary markets: Sweden, Norway and the U.K.," she said.
Handelsbanken said the synergies of running banking operations
with lower volumes in disparate geographical locations have
decreased as new regulatory frameworks have been introduced,
meaning the bank now needs central staff functions and
infrastructure in each market.
Handelsbanken's business in the Netherlands is more focused on
real-estate finance and asset management and from Jan. 1, 2022, it
will become a part of its capital-markets unit, together with
Luxembourg and New York, it said.
The bank also announced third-quarter earnings, posting a net
profit of SEK5.19 billion against SEK4.58 billion seen in a FactSet
consensus forecast.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 19, 2021 13:17 ET (17:17 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.