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Year end report 2016: Improved annual earnings and growth for Landshypotek Bank

Published: 27 januari 2017

Landshypotek Bank continues to post improved results. The bank has grown both in terms of deposits and lending in 2016. Operating profit improved MSEK 22 to MSEK 353 (331), including the net result of financial transactions.

Excluding the net result of financial transactions, earnings improved MSEK 4, up from MSEK 323 to MSEK 327 in 2016.A significant portion of the earnings improvement was attributable to lower net loan losses.  

“We have posted historically strong earnings and we are a bank with a growing presence in the lending and savings markets. We also grew stronger as a bank during the year. We are building to meet more bank customers — both current and future — through initiatives including our digitalisation and our system improvements,” says Liza Nyberg, CEO of Landshypotek Bank.

The volume of loans outstanding increased SEK 2 billion to SEK 66.5 billion (64.5). Deposits also continued to increase and totalled SEK 11.7 billion (10.3).

Asset quality in the credit portfolio has continued to improve and the bank reported net loan losses of MSEK 14.8 compared with MSEK 45.9 in the preceding year. Costs have increased slightly year-on-year, but the increase was planned and part of developments to increase the bank’s competitiveness.

Landshypotek Bank is now taking the next step in its development and is working to meet more customers. In 2017, customers will be able to apply for mortgage loans from Landshypotek Bank.

“We will target a market outside the major cities and offer brand new lending possibilities. More customers will also strengthen us in our assignment for the farming and forestry sectors. More banking alternatives are needed in the lending market,” says Liza Nyberg.

Landshypotek Bank has decided to distribute half of its profit, MSEK 176, in Group contributions to its owners, Landshypotek Ekonomisk Förening. The bank is owned by its 41,000 loan customers in the farming and forestry sector. Group contributions are used as member dividends and for the operations of the cooperative association. The association will decide on member dividends at the General Meeting being held in April.

Read the entire report

For further information and comments, please contact:
Tomas Uddin, Chief Communications Officer at Landshypotek Bank, +46 70 299 24 08
Liza Nyberg, CEO, and Fredrik Sandberg, CFO, can be contacted through Tomas Uddin. 

 

In brief:

January – December 2016 (compared with January – December 2015)

Operating profit amounted to MSEK 353.4 (330.6)

The underlying operating profit, excluding the net result of financial transactions, was MSEK 327.3 (322.8).

Net interest income amounted to MSEK 727.2 (743.4).

Costs totalled MSEK 404.3 (387.2)

Net loan losses were MSEK 14.8 (45.9).

Lending amounted to SEK 66.5 billion (64.5).

Deposits amounted to SEK 11.7 billion (10.3).

 

October – December 2016 (compared with July – September 2016)

Operating profit amounted to MSEK 4.4 (146.3)

The underlying operating profit, excluding the net result of financial transactions, was MSEK 47.5 (107.2).

Net interest income amounted to MSEK 172.6 (184.4).

Costs totalled MSEK 123.3 (83.4)

Net loan losses were MSEK 8.0 (2.9).

Lending amounted to SEK 66.5 billion (66.2).

Deposits amounted to SEK 11.7 billion (11.7).

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