Handelsbanken, one of Europe's most profitable banks, fired its chief executive Frank Vang-Jensen after less than 18 months in the job, calling on his successor to push ahead with overseas expansion.

Anders Bouvin, head of its operations in Britain, where the bank has been growing rapidly, will take over from Mr Vang-Jensen who was himself rushed into the top job last year following a shake-up at the bank's main owner, Industrivarden.

"The last job became a little too tough for him. He could not live up to the expectations," Handelsbanken chairman Par Boman said of Mr Vang-Jensen, who was promoted from the role of head of the company's Swedish business.

“This recruitment was a mistake,” Mr Boman said.

Decentralised model

He cited failings when it came to leading a large number of managers in a bank which has a very decentralised model.

Mr Vang-Jensen’s moves to slim down operations may also have ruffled feathers at the bank which has long prized a focus on its branch network and giving local managers great autonomy, such as making decisions on whether to approve mortgages.

During his short time as chief executive, Mr Vang-Jensen closed about 60 bank branches, mainly in Sweden’s biggest cities but also in the countryside, prompting protests from some customers.– (Reuters)