Landshypotek Bank interim report for Q3 2018: Mortgage loans boost a growing Landshypotek
Landshypotek Bank reports strong earnings for the first three quarters of 2018. The bank’s growth has been noticeable in terms of the numbers of customers and volume, and is now becoming evident in its earnings. “Our mortgage venture is for the long term, and we have already noted that the volume increase is starting to positively impact results,” says Per Lindblad, CEO of Landshypotek Bank.
Operating profit for the first three quarters of 2018 amounted to MSEK 298.7 (248.0). Operating profit excluding the net result of financial transactions was MSEK 281.5 (291.3).
Both lending and deposits continue to increase. The bank now has SEK 71.5 billion (67.6) in loans outstanding and SEK 13.7 billion (12.5) in deposits. In the third quarter, the bank passed the three billion Swedish krona mark for homeowner mortgages.
“We have strong underlying earnings and it is gratifying that this now shows more clearly in the results. Our diversification is also starting to have a noticeable impact, earnings are becoming more stable and the bank is more sustainable,” says Per Lindblad.
Costs are rising in line with plans and amounted to MSEK 320.4 (293.7) for the first three quarters of the year. The bank has expanded its business development activities and employee numbers, in part to administer new mortgage customers and in part to allow the continued strengthening of the bank as a whole.
This summer’s drought continued to dominate the quarter for many of the bank’s customers. As the farmers and foresters’ own bank, we have been in close dialogue with customers and used individual assessments to discuss what is good and what is possible for each entrepreneur.
“We have taken action by gearing up our organisation to keep even closer customer contact, to encourage dialogue and to accurately assess the situation right now and moving forward,” adds Per Lindblad.
More information is available in the interim report regarding the results as well as events in our operating environment in terms of the economy, the mortgage market and farming and forestry.
The information in this report is such that Landshypotek Bank AB is obligated to disclose in accordance with the Securities Market Act. This information was submitted for publication on 25 October at 8:00 a.m. (CEST).
At a glance:
January – September 2018
compared with January – September 2017
• Operating profit amounted to MSEK 298.7 (248.0).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 281.5 (291.3).
• Net interest income amounted to MSEK 590.5 (591.8).
• Costs totalled MSEK 320.4 (293.7).
• Net credit losses resulted in a gain of MSEK 7.3 (loss: 7.9).
• Lending amounted to SEK 71.5 billion (67.6).
• Deposits amounted to SEK 13.7 billion (12.5).
July – September 2018
compared with April – June 2018
• Operating profit amounted to MSEK 100.7 (95.7).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 102.8 (91.4).
• Net interest income amounted to MSEK 204.5 (198.6).
• Costs totalled MSEK 101.5 (112.5).
• Net credit losses amounted to MSEK 1.4 (gain: 4.0).
• Lending amounted to SEK 71.5 billion (70.8).
• Deposits amounted to SEK 13.7 billion (13.5).