Banks, EU – Baltic States, Financial Services

International Internet Magazine. Baltic States news & analytics Thursday, 28.05.2020, 00:42

Handelsbanken set to close its branches in Baltics

BC, Tallinn, 16.05.2019.Print version
Sweden's Handelsbanken is set to gradually discontinue its operations in the three Baltic countries and will close the branches in Tallinn, Riga and Vilnius, informed LETA/BNS.

Despite the implementation of efficiency-enhancing measures, the operations in the region have not performed satisfactorily. Profitability is too low, while costs are too high, the bank said.

This, combined with changes in many customers' behavior and an increase in the investments needed, has resulted in the bank deciding to gradually wind down the operations during 2020. 

Handelsbanken has had business operations in the Baltic states for 10 years. The purpose of these operations was to assist the bank's home market customers with their business in the region. In the future, these customers will be served by local branches in the home markets.

Handelsbanken's business in Estonia is very small, with the bank's balance sheet total in the country only approximately 104 mln euros. In 2017, the bank earned an operating loss of five million Swedish kronor or approximately 460,000 euros in Estonia.

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