SWEDEN - The asset management arm of Handelsbanken has reported an increase in assets under management of 10.8% in 2006, bringing the total to SEK371bn (€40bn).

The operating profit of the unit increased to 35% to SEK805m.

Handelsbanken's custody business in the Nordic region saw custody holdings increase by 4% to SEK790bn in the asset management division. This brings the total assets under custody for the group to SEK1.8trn.

Its pension & insurance business increased its operating profit almost five times to SEK2.6bn. The business comprises Handelsbanken Liv and SPP.

Handelsbanken Liv saw its managed assets rise by 16% to SEK59bn. SPP's assets under management increased by 7% to SEK112bn including a net inflow of SEK3.3bn. 

As a group Handelsbanken saw its operating profit rise by 10% o SEK17.2bn over 2006. Assets under management for the whole group increased also by 10.8% to SEK435bn.