Heartwood Wealth, the UK wealth management subsidiary of Handelsbanken, grew client assets under management by £0.5 billion during 2017 to £3.4 billion, according to the Stockholm-based banking group’s latest results release.
“Handelsbanken Wealth Management specialists across the branch network, combined with the investment services from the bank’s subsidiary, Heartwood Investment Management contributed to a 14 percent increase in net fee and commission income,” it said in a statement. “The bank saw particularly strong growth in household deposits, up 39 percent, while corporate deposits also increased by 22 percent.”
The results did not provide revenue, or pre-tax profits details for Heartwood, which will be reported separately later in 2018.
Notwithstanding an enhanced UK presence as a result of its 2013 acquisition by Handelsbanken and the boost this has given to business Heartwood has struggled to generate profits over the past two years.
Although it increased income by £1.71 million in 2016 to £22.64 million it recorded a pre-tax loss of £632,000 for the year, a £365,000 improvement on the £997,000 recorded for the previous year.
Handelsbanken is currently preparing to create a new Brexit- inspired UK subsidiary and is currently investing in infrastructure, systems and additional UK-based expertise.