Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  NASDAQ OMX STOCKHOLM  >  Svenska Handelsbanken AB    SHB A   SE0007100599

SVENSKA HANDELSBANKEN AB

(SHB A)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Svenska Handelsbanken : Handelsbanken cuts jobs, closes Swedish branches to invest in IT

share with twitter share with LinkedIn share with facebook
09/16/2020 | 05:29am EDT

Handelsbanken is to close almost half of its branch network and cut about 1,000 jobs in Sweden over the next two years and use the cost savings to invest in its IT systems.

The changes mark a major strategy shift for Handelsbanken which has long prized its branch network and in 2016 even ousted a previous CEO for entertaining plans to slim down the bank.

The closures also highlight a shift away from cash and traditional branch banking that is forcing change across the industry. Sweden is already the world's least cash dependent economy.

"We have reached a tipping point where we see that our customers are opting more to meet us in a digital space or other forums," CEO Carina Akerstrom said on Wednesday.

The cuts and closures would lower costs by about 1.7 billion Swedish crowns ($194 million) compared with 2019, to around 20 billion crowns by the end of 2022, the bank said.

Handelsbanken will invest 1 billion crowns in its IT and digital services over the next two years.

The bank's shares were up about 2.4% by 0813 GMT.

Analysts were however critical of the restructuring.

"I fear that the big changes due on the branch network will lead to a very volatile, even painful, couple of years for Handelsbanken," Andreas Hakansson, senior analyst at Danske Bank, said.

"When all the cost savings and revenue losses are delivered, it's a very small benefit that you get out of this restructuring, which is a little disappointing."

The bank said it would reduce its branch network to about 200 from 380 and set aside around 1.5 billion crowns in the fourth quarter to pay for the cuts.

The cuts would see the bank's income "contracting by around SEK 1 billion", but it did not specify in what business areas.

Handelsbanken has prioritised keeping its large, local network, where branch managers have considerable decision-making autonomy, over investment in digital banking. A strong local presence has been credited with keeping the bank's loan losses among the lowest in Europe.

"Branches remain the backbone of our business model," CEO Akerstrom said, adding that the changes would not make Handelsbanken riskier.

Anna Hjelmberg, the Finance Union's representative at Handelsbanken, said: "It is a very sad decision. We will do everything to ensure that every individual, employee, member is treated with a lot of respect."

($1 = 8.7804 Swedish crowns)

(Additional reporting by Helena Soderpalm and Johan Ahlander in Stockholm, editing by Anna Ringstrom, Jason Neely and Jane Merriman.)

By Colm Fulton

share with twitter share with LinkedIn share with facebook
All news about SVENSKA HANDELSBANKEN AB
09/22SVENSKA HANDELSBANKEN : Danish watchdog tells Handelsbanken to improve customer ..
RE
09/18Travel stocks slump in Europe as virus cases surge, banks drag
RE
09/18Travel stocks slump in Europe as virus cases surge, banks drag
RE
09/17SVENSKA HANDELSBANKEN : Oslo Børs - Quotes - Sold Out State
AQ
09/16SVENSKA HANDELSBANKEN : Handelsbanken cuts jobs, closes Swedish branches to inve..
RE
09/16EUROPE : Retail gains support European stocks, Fed in focus
RE
09/16SVENSKA HANDELSBANKEN : The Board of Directors has resolved against calling an e..
PU
09/16SVENSKA HANDELSBANKEN : The Board of Directors has resolved against calling an e..
AQ
09/16SVENSKA HANDELSBANKEN : Handelsbanken gathering its forces at branches, accelera..
AQ
09/16SVENSKA HANDELSBANKEN : Handelsbanken gathering its forces at branches, accelera..
AQ
More news
Financials
Sales 2020 43 907 M 4 811 M 4 811 M
Net income 2020 14 391 M 1 577 M 1 577 M
Net Debt 2020 - - -
P/E ratio 2020 10,1x
Yield 2020 6,08%
Capitalization 148 B 16 168 M 16 178 M
Capi. / Sales 2020 3,36x
Capi. / Sales 2021 3,27x
Nbr of Employees 12 524
Free-Float 89,2%
Chart SVENSKA HANDELSBANKEN AB
Duration : Period :
Svenska Handelsbanken AB Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SVENSKA HANDELSBANKEN AB
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 94,56 SEK
Last Close Price 74,34 SEK
Spread / Highest target 48,0%
Spread / Average Target 27,2%
Spread / Lowest Target 0,89%
EPS Revisions
Managers
NameTitle
Carina Åkerström President, Chief Executive Officer & Director
Pär Boman Chairman
Katarina Berner Frösdal Chief Operating Officer
Carl Cederschiöld Chief Financial Officer
Lars Fredrik Elis Lundberg Deputy Chairman
Sector and Competitors