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How was the bank’s third quarter?
Good. The bank makes a profit of SEK 4.2 billion for the quarter. It is true that it is about 700 million less than last quarter and somewhat less than what several analysts expected.
This is largely explained by the fact that the bank set aside almost SEK 1.5 billion in a “restructuring reserve”. In other words, the money you want to meet the costs that may arise in connection with staff reductions and office closures that CEO Carina Åkerström spoke about a little over a month ago.
What about those office closings then?
The bank came out in mid-September and reported what’s called an upcoming “power meeting” at the offices. The approximately 360 offices in the country today will be 180, and about 1,000 employees appear ready to leave the bank.
Which offices or locations are affected, the bank has promised to come back later after a more detailed analysis. No information is provided in this report. Perhaps the analysis is more likely to be delayed after the turn of the year. The financial statements will be presented in February.
Will they save money on that?
Yes, the physical offices and especially the staff are expensive. Certainly closing offices and getting rid of people also costs money, 1.5 billion have been set aside for this. But in the end, it’s clear that the bank has counted office closures.
The proportion of clients who actually rely on physical visits to the bank is declining over the years.
Of course, there will be those who are upset and threaten to change banks. A small part may also be forced to do so for practical reasons. But for most, there seems to be a long way between words and deeds.
No less Swedbank is a receipt for this. The image as the “people’s bank” has darkened significantly since the money laundering scandal broke out in early 2019. Despite this and reports from concerned customers, there does not appear to have been a significant need for such a bank. The thresholds for changing banks are high and Handelsbanken knows it. The report indicates that negative revenue effects are not expected, which is a sign of this.
Read more:
Reduced profit for Handelsbanken
