SHARE
COPY LINK

BANK

Handelsbanken profits up as loan losses fall

Sweden’s Handelsbanken reported 12 percent increase in net profits for the third quarter on Wednesday, as reduced losses on lending activities made up for falling net interest income.

Handelsbanken profits up as loan losses fall

Between July and September, Sweden’s second-biggest bank in terms of capitalisation made a net profit of 2.71 billion kronor ($402.2 million).

The amount beat the expectations of analysts surveyed by Dow Jones Newswires, who had forecasted a net profit of 2.66 billion kronor.

Handelsbanken said its net interest income fell five percent on a year-on-year basis to 5.33 billion kronor, attributing the drop to an unfavorable exchange rate and weak lending demand from businesses.

But the bank noted “the improving economic climate was reflected in an increased volume of credit commitments, which continued to rise during the quarter.”

“Household credit volumes continued to increase,” it said.

Compared to the previous quarter, net interest income was up 5.0 percent and slightly above the expected level of 5.25 billion.

The bank slashed its losses on lending activities to 294 million kronor from 866 million kronor a year earlier, thanks to a 92-percent-drop in losses in Sweden, where the economy is healthier than elsewhere in Europe.

Handlesbanken has little exposure to Baltic countries which have been severely affected by the global economic crisis, in contrast to competitor banks Nordea, SEB and Swedbank which have taken big losses in the region.

Shortly after noon, the bank’s share price was trading down 1.82 percent at 221.5 kroner on a flat Stockholm stock exchange.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

BREXIT

Brits in EU risk losing UK bank accounts ‘within weeks’

Some of Britain's biggest banks have begun contacting customers in European Union countries, warning them that their accounts will be closed down within weeks because the cost and complexity of operating without a continuation of pan-European banking rules is too much.

Brits in EU risk losing UK bank accounts 'within weeks'
Lloyds Bank expects to close at least 13,000 accounts. Photo: Lloyds Bank
According to a report in The Times, thousands of Britons who live in Europe face being stripped of their UK bank accounts and credit cards, because of the UK government's failure to agree rules for operating after Brexit. 
 
Each of the EU's 27 member states has different rules for cross-border bank accounts which will start to apply immediately the UK's transition period ends on 31st December 2020. 
 
“In some cases, continuing to serve customers would be incredibly complex, extremely expensive and very time-consuming, and simply would not make economic sense,” a source at one British bank told the newspaper. “This is passporting — this is the reality of Brexit.”
 
 
If a way is not found to continue pan-European banking rules, or passporting, UK banks will br breaking the law if they don't apply for new banking licenses in each European Union Country. 
 
 
Lloyds, Britain’s biggest banking group, began writing to customers in August, warning them that their bank accounts would  close down on December 31.
 
The bank estimates that 13,000 customers, including those based in Holland, Slovakia, Germany, Ireland, Italy and Portugal, would lose their accounts. 
 
“If customers have regular deposits into, or payments out of, their account, they will need to make other arrangements before their account is closed,” the bank said. 
 
Barclays and Coutts have also started contacting customers. 
 
“In light of the UK leaving the EU at the end of 2020, we continue to review the services we offer to customers within the European Economic Area (EEA), and any impacted customers will be contacted directly,” Barclays said in a statement. “The timings for account closure will depend on the type of product that a customer holds, but we will always give notice to customers.”
 
“In the event that no alternative to the European Economic Area passporting regime for financial services is agreed between the UK and EU, we have taken the difficult decision to withdraw from offering our services to clients who reside in the EEA,” Coutts said. 
 
SHOW COMMENTS