Handelsbanken in cost-cutting drive
Handelsbanken reported a double-digit dip in net profit this morning as it revealed a major cost-cutting strategy.
The Swedish lender plans to cut 800 jobs and pull out of several markets globally in an effort to slash annual spending by roughly 1.5bn crowns (£120m).
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Net profit tumbled from 4.1bn crowns to 3.5bn crowns, falling 13 per cent when compared with the same quarter last year due to restructuring charges of roughly 900m crowns during the three-month period.
The Stockholm-based firm has been revamping its strategy to target western economies such as the UK, where it now has a network of over 200 branches.
The Nordic markets and the Netherlands will also be priorities for the bank, while it is pulling out of both Germany and Asia.
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Handelsbanken’s common equity Tier 1 ratio, a key financial benchmark, fell year-on-year from 21.7 per cent to 17.4 per cent.