Landshypotek Bank six-month interim report for 2019: Strong results and continued growth
Landshypotek Bank continues to grow – both in terms of customer numbers and in volumes for savings and lending. Operating profit excluding financial transactions improved on the previous quarter and on the corresponding period last year. This is confirmed in the six-month interim report released today.
“Step by step, we are becoming a better bank for more customers — and are thus continuing to develop and serve more people as a bank with a difference in the Swedish banking market. Our ambitions are even higher, but it is positive that we are continuing on our journey of growth,” says Per Lindblad, CEO of Landshypotek Bank.
The bank’s operating profit amounted to SEK 187 million (197). Excluding the net result of financial transactions, operating profit amounted to SEK 189 million (178).
Net interest income was SEK 409 million (386), up SEK 23 million. Net interest income was SEK 667 million (609), up SEK 58 million, mainly attributable to increased lending.
The bank’s lending amounted to almost SEK 74 billion. While growth in lending to farming and forestry is stable, more and more are turning to the bank as their new mortgage bank. After six months, the bank’s mortgage lending is approaching SEK 5 billion and growing steadily.
“It is noticeable that competition has stiffened. But, considerable consumer benefit in the form of improved openness and lower market interest rates has already been created through Landshypotek and other new mortgage providers establishing operations,” adds Per Lindblad.
The increase in customers provides Landshypotek Bank with a more stable base for financial sustainability over time. The mortgage venture is for the long term, but it has already strengthened the bank.
As planned, costs have increased SEK 6 million year-on-year with the aim of managing the bank’s growth and continuing to strengthen the bank as a whole.
Moreover, the quarter also saw the profit for 2018 distributed to our owners: our farming and forestry customers. This year, SEK 138 million strengthened agriculture and forestry, and our farmers’ and foresters’ enterprises. The dividend confirms Landshypotek Bank’s unique foundation as a bank.
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.
Read the entire report here.
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 19 July at 8:00 a.m. (CEST).
For more information, please contact:
Tomas Uddin, Chief Communications Officer, +46 70 299 24 08
Jonas Feinberg, Press Officer, firstname.lastname@example.org, +46 70 349 24 10
Per Lindblad, CEO of Landshypotek Bank, can be contacted through Tomas Uddin.
Summary of the interim report
January – June 2019
compared with January – June 2018
- Operating profit amounted to SEK 187 million (197).
• The underlying operating profit, excluding the net result of financial transactions, was SEK 189 million (178).
• Net interest income amounted to SEK 409 million (386).
• Costs totalled SEK 226 million (220).
• Net credit losses had a positive earnings impact of SEK 2 million (positive: 9).
• Lending amounted to SEK 73.9 billion (70.8).
• Deposits amounted to SEK 14.6 billion (13.5).
April – June 2019
compared with January – March 2019
- Operating profit amounted to SEK 100 million (87).
• The underlying operating profit, excluding the net result of financial transactions, was SEK 102 million (87).
• Net interest income amounted to SEK 203 million (206).
• Costs totalled SEK 114 million (112).
• Net credit losses had a positive earnings impact of SEK 11 million (negative: 8).
• Lending amounted to SEK 73.9 billion (73.3).
• Deposits amounted to SEK 14.6 billion (14.4).