Handelsbanken, the largest player in Sweden for capital-protected investments aimed at retail investors, has reported having a 21% market share in the capital-protected products space, according to the bank’s Q3 2014 interim report.

The bank also reported that the total fund volume, which includes exchange-traded funds, increased during the first three quarters of 2014 by 18% to SEK319bn (€34.67bn) from SEK271bn (€29.46m), which represents the highest volume ever in this segment. Total assets under management (AUM) in the group also increased by 13% to SEK512bn (€55.66bn) from SEK452bn (€49.14bn) in 2013.

The bank reported that asset management operations, excluding Handelsbanken Liv, increased their profits to SEK440m (€47.83m) from SEK301m (€32.72m) in 2013, while in the investment bank profits rose to SEK561m (€61m) from SEK316m (€34.35m) in 2013.

SRP data
SRP data shows that in the first three quarters of 2014 Handelsbanken had a 12% market share of the domestic retail structured products market (including capital-at-risk structures), which represents a decrease of 3% from 2013.

Handelsbanken’s sales volume stood at €326m at the end of Q3 2014, down by 54% from the €709m registered at the end of 2013. In the Finnish market nine retail products worth €25m were marketed by the Swedish bank in the first three quarters of 2014.

According to SRP data, Handelsbanken brought to market 91 products during the first three quarters of 2014 in Sweden. The sales of products with capital protection (90.91% to 100%) stood at €216.54m, including 35 products with capital protection of between 97.09% and 90.91% and 24 products with full protection. In Finland, of the nine products marketed six structures worth €19.18m featured capital protection of between 97.09% and 90.91% while the two fully protected structures sold €4.27m.

Market-making
Handelsbanken’s capital markets function as a market-maker for structured products was up by 19% in Q3 2014 compared with the same period last year, according the bank.

Handelsbanken also reported that its brokerage income decreased by 4% to SEK843m (€91.64m) with asset management commissions increasing by 25% to SEK2.2bn (€240m) compared with the same period last year.

Insurance commissions grew to SEK482m (€52.34m) while assets under management and net gains/losses on financial transactions increased by 17% to SEK1.3bn (€141.54m). Currency transactions relating to branch operations, which are included in net gains/losses on financial transactions, resulted in a currency gain of SEK262m (€28.48m).

Brokerage income decreased by 24% to SEK222m (€24.13m) compared with Q2 2014, mainly due to lower activity during the summer. Asset management commissions increased by 7% to SEK787m (€85.55m) due to larger management volumes while currency transactions for customers in the branch had a net gain of SEK22m (€2.39m).

Click here to read the whole outlook in Swedish and here in English.

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