Landshypotek Bank Six-month Report: Improved result and high tempo toward becoming a broader bank
Landshypotek Bank posts improved results and continues to grow. At the same time, the bank is developing for the future. For the first six months, the bank posted an operating profit excluding the net result of financial transactions of MSEK 190.7. This is an improvement of MSEK 18.1 year-on-year.
With net earnings from financial transactions, which vary considerably between the quarters, operating profit amounted to MSEK 147.8 (202.8) for the first six months.
“We have posted strong results in parallel with sustaining our investments in the bank’s continued development,” says Catharina Åbjörnsson Lindgren, Acting CEO.
Both lending and deposits are continuing to increase. The bank has SEK 67.2 billion (65.7) in loans outstanding and SEK 12.4 billion (11.3) in deposits. Costs remain at last year’s level and loan losses have decreased.
During the first six months of the year, the bank presented a campaign to also offer mortgages to home-owners throughout Sweden.
“We are gradually becoming increasingly active in our introduction to the mortgage market. The offering is still being prepared, but the first customers have already found us through our new digital application process. This will make us a larger bank, with increased relevance for more customers in the Swedish banking market. The strategy of growing through increasing the customer base remains firm. The implementation is ongoing at a high pace,” says Catharina Åbjörnsson Lindgren.
During the quarter, MSEK 158 was paid in dividends to the owners, the customers who borrow for farming and forestry, for the 2016 results. At the same time, the possibility was offered of reinvesting some of the dividend.
“Our positive view of the future is shared by our members. Many chose to reinvest their dividend during the quarter,” says Catharina Åbjörnsson Lindgren.
Further comments and information:
Catharina Åbjörnsson Lindgren, Acting CEO of Landshypotek Bank, can be contacted through Tomas Uddin, +46 70 299 24 08
Fredrik Sandberg, CFO and Acting Deputy CEO of Landshypotek Bank, +46 8 459 04 06, or can be contacted through Tomas Uddin, +46 70 299 24 08
Tomas Uddin, Chief Communications Officer, +46 70 299 24 08
This information is information that Landshypotek Bank AB is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 9.00 am CET on 19 July 2017.
January – June 2017 (compared with January – June 2016)
- Operating profit amounted to MSEK 147.8 (202.8).
- The underlying operating profit, excluding the net result of financial transactions, was MSEK 190.7 (172.6).
- Net interest income amounted to MSEK 386.9 (374.3).
- Costs totalled MSEK 193.4 (196.5)
- Net loan losses declined and amounted to MSEK 3.8 (9.7).
- Lending amounted to SEK 67.2 billion (65.7).
- Deposits amounted to SEK 12.4 billion (11.3).
April – June 2017 (compared with January – March 2017)
- Operating profit amounted to MSEK 83.2 (64.5).
- The underlying operating profit, excluding the net result of financial transactions, was MSEK 93.1 (97.6).
- Net interest income amounted to MSEK 201.4 (185.5).
- Costs totalled MSEK 103.3 (90.1)
- Net loan losses were MSEK 5.5 (recovery: 1.7).
- Lending amounted to SEK 67.2 billion (66.6).
- Deposits amounted to SEK 12.4 billion (12.0).