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Swedish banking giant quits Baltics – says it’s not worth the cost

Swedish banking giant Handelsbanken is closing down its Baltic operations, but denied the decisionhad anything to do with recent money laundering scandals tied to two other Scandinavian banks.

Published: 16 May 2019 11:54 CEST
Swedish banking giant quits Baltics – says it's not worth the cost
Handelsbanken's office in Stockholm. Photo: Alexander Larsson Vierth/TT

Handelsbanken said on Thursday it was leaving the Baltics due to unsatisfactory performance.

“We have come to the conclusion that profitability is too low, while costs are too high. Despite efficiency-enhancing measures in the past few years, the operations in the three Baltic States have not shown satisfactory profits,” Richard Johnson, head of Handelsbanken International, told AFP.

He went on to say that circumstances had also changed drastically since the bank established its presence in the region a decade earlier, and that local offices were no longer necessary.

“Rapid technological advances, which have resulted in new players on the market, and new opportunities, mean that we can now help many of our customers directly from the home markets,” Johnson said.

The bank would therefore start to wind down its business in Estonia, Latvia and Lithuania during 2020.

READ ALSO: What you need to set up a bank account in Sweden

Johnson also stated that the bank's decision had nothing to do with the recent scandals surrounding allegations of extensive money laundering at two other Scandinavian banks tied to Baltic operations.

Denmark's largest bank Danske Bank is currently the target of criminal probes in several countries over some 200 billion euros ($226 billion) in transfers that passed through its Estonian branch between 2007 and 2015, involving some 15,000 foreign clients, many Russian.

Swedish competitor Swedbank has also been embroiled in a scandal since February when an investigative news show on public broadcaster SVT claimed to have seen documents showing that at least 40 billion kronor ($4.3 billion) of suspicious transactions had been channelled to Baltic countries from Swedbank accounts.

Many of the transactions took place between 2007 and 2015, and some of the money may have first transited Danske Bank.

Handelsbanken has largely remained clear of the money laundering scandals and its operations in the Baltic States have only represented a fraction of some of its Nordic competitors.

For instance, according to the Estonian Banking Assocation, Handelsbanken's market share in Estonia in 2017 was only one percent, compared to Swedbank's 40 percent.

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TRANSPORT

How to save money at Sweden’s airports

Sweden is not a cheap country by any means, and the extra charges at airports can make travelling feel even more costly. Luckily, there are ways to make trips to Swedish airports more affordable.

Published: 11 July 2024 08:30 CEST
Updated: 13 July 2024 06:26 CEST
How to save money at Sweden's airports

Sweden has become increasingly expensive over the past few years, in line with the cost of living crisis, inflation and rising food prices affecting much of Europe.

These significant price increases make the high costs at Swedish airports even more noticeable, leaving many travellers, already burdened by inflation, feeling the pinch.

Luckily, there are ways to make your stay at Swedish airports more affordable.

Bring your own food – or buy it before getting to the airport

When travelling through a Swedish airport, according to the official information on the Sweden’s Transport Agency’s website, you are allowed to bring solid food through security and onto the plane.

However, if the food is considered a liquid, restrictions will apply. Liquids include foods such as jellies, creams, drinks, soups, and dishes with both solid and liquid components (like meat and potatoes with sauce or pickled cucumbers). This rule applies even if the food is frozen.

Use this information to prepare your own meals (sandwiches are a good option for longer flights, while snacks may do the trick for shorter ones) or buy food before you get to the airport.

Both will lead to saving a lot of money compared to airport food prices.

Cutting (transport) costs on your way to the airport

Sweden’s major airports have express services that make getting there quick and efficient, but these can be a tad expensive.

Fortunately, there are cheaper alternatives.

For example, in Stockholm, you can take the non-express commuter train instead of the Arlanda Express or combine a train plus bus option.

Both options cost less, though they do take longer (the express train trip lasts around 20 minutes, while the cheaper alternatives will take around 40 minutes).

For a detailed guide to your transport options if you want to skip the Arlanda Express (or if it isn’t running), check out The Local’s guide on the topic here.

Do your research before getting there

All of Sweden’s busiest airports are operated by the state-owned company Swedavia, which makes it easier to check out your dining options in advance.

Knowing where to find the cheaper and more expensive eateries can help you plan better.

You can find an overview of available restaurant, bar, and cafe options on a per airport and per terminal basis, as well as their opening hours, on the company’s website.

For Arlanda Airport, check here. For Landvetter, here.

Keep in mind that the most affordable options might be before security.

Are lounges worth it?

While suggesting you spend money on a lounge might seem counterintuitive, it can sometimes be a cost-effective option. You’ll just need to do some simple maths to determine whether it’s worth it.

A meal and a drink at a Swedish airport could easily cost a few hundred kronor.

Lounges, which typically include buffet food and drink options, might offer better value for money, if you’re planning to buy food in a restaurant at the airport rather than bringing your own with you. They also often have shower facilities, office spaces including printers, and children’s areas, which may make the cost worth it depending on your journey and whether you’re travelling with family or not.

For the SAS international lounge at Arlanda, the cost is usually around 350 kronor when purchased in advance online and slightly higher if bought at the lounge reception on the day of your visit​.

Note that if you are a frequent flyer or have certain credit cards, you might have access to lounges for free or at a discounted rate, using points to pay for some or all of the fee.

Don’t buy the first thing that seems cheap at the airport – a better deal might be waiting outside

Many items found in airport stores and duty-free shops are available outside the airport, and often at better prices.

While duty-free items are tax-free, you might still find better deals by shopping around elsewhere (in fact, this is often the case for both food and drinks).

Resist the temptation to buy stuff that seems cheap at the airport unless you’re absolutely sure you’re getting a fair price. You can always do a quick Google search before you buy to see if you can get it cheaper somewhere else.

You will likely save more by purchasing it outside the airport.

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