150 Years of Handelsbanken: From Local Origins to Global Presence

Ⅰ. 150 years of Handelsbanken's history

Foundations and early expansion (1871-1919)

The history of Handelsbanken can be traced back to September 1, 1871, when the financial institution known as Stockholms Handelsbank was founded in the Swedish capital. The founding team consisted of Stockholm's business leaders and served the financing needs of the local business community. Just two years after its establishment, the bank was successfully listed on the Stockholm Stock Exchange, making it one of the first listed financial institutions in Sweden.

A key turning point in the early years was the strategic merger with Louis Frænckel Bank in 1893, which not only brought an injection of capital, but also broadened the customer base and range of services. In the 20th century, the bank embarked on a nationwide expansion, particularly in 1918-1919, when the number of branches jumped from 30 to more than 100 in three years through the merger of several regional banks in central and northern Sweden, and in 1919, to reflect the national bank's position, it was officially renamed “Svenska Handelsbanken,” marking the transition from a regional bank to a national bank. In 1919, it was officially renamed “Svenska Handelsbanken” to reflect its position as a national bank, marking its transition from a regional bank to a national bank.

Crisis response and business transformation (1920-1969)

In 1922, the post-war recession led to the first annual loss in the bank's history. However, through conservative credit policies and strict cost controls, the bank returned to profitability by the end of the 1920s and also built up sufficient capital buffers to enable it to perform well in the 1929 global depression.

In 1943, during World War II, the bank was briefly reorganized into a holding company structure in response to the special period of the operating environment, a flexible adjustment that guaranteed the continuity of wartime financial services. During the post-war reconstruction period, the bank focused on retail banking, while consolidating its market position through mergers and acquisitions.

Management revolution and model finalization (1970-1989)

The year 1970 was a watershed in the history of commercial banking in Sweden. Against a backdrop of public opinion questioning financial capital, the bank streamlined the number of branches from 800 to 400, while granting unprecedented autonomy to the remaining branches. The establishment of this decentralized management model revolutionized the bank's operating philosophy - branch managers were given core competencies such as loan approval, pricing and personnel decisions, while headquarters was transformed into a supportive role.

Deep Nordic roots and global presence (1990-2010)

In the 1990s, Commerzbank launched its “Nordic Home” strategy, systematically expanding into Denmark (1990), Norway (1991) and Finland (1998). Unlike its competitors' M&A expansion, it stuck to an organic growth model - building a team from scratch in each new city and transplanting the Swedish success story. This 'slow and steady' strategy, although initially costly, has resulted in deep local customer relationships and sustainable profitability.

The opening of the London branch in 1999 marked a new phase of internationalization. The UK market became a “testing ground” for its decentralized model - an exact replica of the Swedish model, with branch managers having full authority to approve loans and no sales targets or product quotas. By 2010, the number of branches in the UK had exceeded 150, with a mortgage market share of 2.5%, and customer satisfaction continued to be among the highest in the industry. During the same period, our presence in financial centers such as China (Shanghai branch in 2005), Singapore and the United States served the cross-border business needs of Nordic companies.

Contemporary development and business characteristics (2010-present)

Entering the second decade of the 21st century, Sveriges Riksbank has faced new challenges from digitalization and a low interest rate environment. Its response has been distinctive: on the one hand, it has invested heavily in upgrading its core banking system (2015-2018), while on the other hand, it has adhered to a “bricks and clicks” strategy - maintaining a high-density branch network while developing mobile banking services.

Ⅱ. Handelsbanken's market share

Swedish domestic market

Handelsbanken has a domestic market share of over 8% in Sweden for deposits and about 7% for loans. The bank is one of the largest banks in Sweden and, together with Swedbank, SEB and Nordea, holds a large share of the Swedish financial market. In the mortgage market, approximately 44% of Swedbank's total loans are linked to the Swedish real estate market.

International markets

Commerzbank has less influence in the international markets. In contrast, the bank has a relatively high share of the Nordic and UK markets, with business focus in mortgage lending and retail banking. In the UK, the bank's business is growing rapidly, with the number of branches surpassing 200 by 2016. The bank also operates local businesses with branches in Nordic countries such as Denmark and Norway, as well as in Singapore and China. Commerzbank has branches in China, mainly serving Nordic and British companies. The bank opened its representative office in Beijing in 2002 and its Shanghai branch, located at Bund 12, was officially opened in 2005.

Ⅲ. Handelsbanken's main types of business

Retail Banking

Handelsbanken offers a comprehensive range of financial services to individual customers, including products such as savings accounts, transaction accounts, mortgages, credit cards and personal loans. The bank provides customers with convenient digital banking services through its online and mobile banking platforms, covering account management, transfers and payments, and other daily financial needs.

Corporate Banking

For corporate customers, Swedbank offers corporate lending services, including equipment financing, vehicle loans and commercial real estate loans. The bank also provides cash management solutions for businesses to help optimize cash flow and financial management. In terms of international trade, the bank provides specialized trade finance services to support enterprises' cross-border business development.

Investment Banking

Commerzbank's investment banking business includes asset management services, providing professional investment management for institutional and individual investors. In the area of transaction banking, the bank provides market research, information services and trading services for various financial products. In addition, the Bank provides corporate clients with specialized services such as merger and acquisition advisory and corporate finance.

Insurance Business

The Bank's Insurance segment offers life insurance products, including individual and group life insurance plans. In the health insurance segment, Commerzbank offers its customers comprehensive health insurance and group health insurance solutions.

International business

Handelsbanken's international business serves subsidiaries of Nordic and British companies established abroad, especially in the Chinese market. Through its branches in China, the bank provides specialized cross-border banking services and support to multinational companies.

Through this diversified portfolio, Handelsbanken offers a comprehensive range of financial solutions for different customer groups, meeting a wide variety of financial needs, from individuals to corporations.