Handelsbanken profit up, UK business grows despite Brexit vote (updated)
19/10/2016 07:42
* Handelsbanken Q3 profit in line w expectations
* Op profit rose 20 pct vs Q3 2015
* Result helped by sale of Industrivarden shares
* UK business volumes continue to grow
(Adds details)
STOCKHOLM, Oct 19 (Reuters) - Sweden's Handelsbanken
SHBa.ST said its business in Britain grew in the third
quarter, shrugging off concerns that Britain's 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 percent 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.
Shares in the bank have risen around 17 percent since the
Brexit vote.
Group operating profit in the quarter rose to 5.69 billion
Swedish crowns ($644 million) compared with 4.73 billion a year
earlier, in line with the mean forecast in a Reuters poll of
analysts.
The result was helped by a 764 million crown windfall
related to the sale of shares in Industrivarden INDUa.ST , 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.
($1 = 8.8350 Swedish crowns)
(Reporting by Johan Ahlander; editing by Niklas Pollard and
Louise Heavens)
((johan.ahlander@thomsonreuters.com; +46 707 211027; Reuters
Messaging: johan.ahlander.reuters.com@reuters.net))
Keywords: HANDELSBANKEN RESULTS/