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Year-end report 2019: Strong results and continued growth for Landshypotek Bank

Landscape
Published: 29 januari 2020

Landshypotek Bank continues to grow in the lending market and posts stronger earnings. Through 2019, lending to farmers and foresters as well as mortgage customers grew for the bank.

The bank’s operating profit amounted to SEK 418 million, up SEK 32 million year-on-year. The underlying operating profit excluding the net result of financial transactions amounted to SEK 420 million (369). The earnings improvement includes the sale of one property resulting in a capital gain of SEK 55 million.

“We take a long-term approach to banking and to business, whereby we develop continuously to increase and improve customer relations. Given the conditions, net profit for the year is satisfactory, but it is evident from the results that over the last year, borrowing costs rose and we did not raise our lending rates at a corresponding pace. Our prime objective is becoming an increasingly popular and better bank. Landshypotek Bank starts the 2020s as a broader, better and safer bank,” says Per Lindblad, CEO of Landshypotek Bank.


Net interest income was SEK 815 million (799), up SEK 16 million. Interest income totalled SEK 1,351 million (1,229), up SEK 122 million. In total, lending to the public increased SEK 3.9 billion and credit losses remained low. The bank continues to have stable deposits. The bank continued its growth in mortgage lending and at year end, had passed the milestone of SEK 7 billion in lending to houseowners across Sweden. Moreover, the bank has continued development of farming and forestry lending, including by becoming the first bank to enable digital loan applications for customers who live or run companies on farming and forest properties.

Costs have increased SEK 33 million year-on-year due to the number of employees and expanded business development activities. This follows the plan, which aims in part to manage the bank’s growth and in part to continue strengthening the bank as a whole.

The results also enable distribution of a dividend to the owners. This year, the bank is distributing a Group contribution of SEK 162 million to the cooperative association, whose members encompass our loan customers in the farming and forestry sector. In turn, the Group contribution funds the association’s operations and a dividend to its members — in other words, Sweden’s farmers and foresters. The Association Meeting in April will resolve on the dividend.

Please find the full report attached.

For more information, please contact:
Jonas Feinberg, Press Officer, jonas.feinberg@landshypotek.se, +46 70 349 24 10
Per Lindblad, CEO of Landshypotek Bank, can be contacted through Jonas Feinberg.


Summary of the interim report

January – December 2019 compared with January – December 2018

• Operating profit amounted to SEK 418 million (386). Operating profit for the year included a capital gain of SEK 55 million attributable to the sale of one property.
• The underlying operating profit, excluding the net result of financial transactions, was SEK 420 million (369).
• Net interest income amounted to SEK 815 million (799).
• Costs totalled SEK 461 million (428).
• Net credit losses positively impacted earnings by SEK 3 million (negative: 8).
• Loans to the public amounted to SEK 76.4 billion (72.5).
• Deposits from the public amounted to SEK 14.4 billion (14.1).
October – December 2019
compared with July – September 2019
• Operating profit amounted to SEK 74 million (158). Operating profit for the previous quarter included a capital gain of SEK 55 million attributable to the sale of one property.
• The underlying operating profit, excluding the net result of financial transactions, was SEK 79 million (152).
• Net interest income amounted to SEK 202 million (205).
• Costs totalled SEK 127 million (107).
• Net credit losses positively impacted earnings by SEK 3 million (negative: 3).
• Loans to the public amounted to SEK 76.4 billion (75.4).
• Deposits from the public amounted to SEK 14.4 billion (14.6).

About Landshypotek Bank:
Landshypotek Bank was founded in 1836 and is one of the ten largest lending banks in Sweden. The bank is deemed systemically important for the farming and forestry industries. Historically, lending has focused on customers for farming and forestry, but now also includes homeowner mortgages and savings. Landshypotek Bank is owned by some 38,000 farming and forestry customers, and is organised as a cooperative association. The bank has almost 200 employees located at branches across Sweden.

Landshypotek Bank AB is required to disclose this information pursuant to the Market Abuse Regulation (EU) No 596/2014, the Securities Market Act (2007:528), the Financial Instruments Trading Act (1991:980) and Nasdaq Stockholm’s Rule Book for Issuers. This information was submitted for publication on 29 January at 8:00 a.m. (CET).

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