Swedish bank sees strong UK loan growth

Tim Wallace
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THE UK arm of Swedish group Handelsbanken recorded a large jump in consumer and business lending in the year to the third quarter, according to its results published yesterday, as well as a rise in deposits.

Personal lending hit £2.6bn in the three months to September, up 29 per cent on the year.

And lending to businesses jumped 24 per cent to £7.3bn, taking total lending up 25 per cent on the year.

Deposits increased 53 per cent over the period to £3bn.

The increase drove UK operating profits up 87 per cent to £72.2m in the year to date, compared with the same period of 2011.

Meanwhile the bank has continued to expand, opening an average of one new branch every ten days through the recession.

That leaves it with 124 branches in the UK open and a further 13 planned.

Overall the group recorded a nine per cent rise in operating profits over the year to date, coming in at SEK13.5bn (£1.28bn), compared with SEK12.43bn a year ago. Earnings per share rose seven per cent.

Operating profits in the third quarter were one per cent higher than a year ago.