Landshypotek Bank interim results for Q1 2018: Continued interest and growth in the bank’s mortgage loans
“We have made a strong start to the year, with continued growth in terms of customers and volumes for saving and lending. We are working actively to reach more customers. During the winter, in parallel with the mortgage launch, we focused particularly on presenting ourselves as the bank for forest owners,” says Per Lindblad, CEO of Landshypotek Bank.
Operating profit for the first quarter of 2018 totalled MSEK 102.2 (64.5). Excluding the net result of financial transactions, operating profit for the first quarter was MSEK 87.4 (97.6). While net interest income at SEK 187.4 million (185.5) was negatively impacted by the raised resolution fee when compared with the preceding quarter, the underlying interest margin remains favourable and on a par with Q1 last year. Costs are under control and in line with previous quarters at SEK 106.4 million (90.1).
The growth in residential mortgages continues with an ever increasing number of challengers in the market.
“Our focus is long-term and we also want to build long-term relationships with our new customers. We have experience of financing homes and operations on farms that stretches back almost two centuries. For this reason, when we entered the mortgage market, we did so with new solutions, but these were based on our extensive experience thus providing ourselves and our customers with security. We believe in a whole that combines new technology, compiled know-how and security, “says Per Lindblad.
Both lending and deposits continue to increase. The bank has SEK 69.6 billion (66.6) in loans outstanding and SEK 13.0 billion (12.0) in deposits.
During the quarter, regional meetings were arranged for the cooperative association’s members across Sweden and for which many locations set attendance records. The association has decided to distribute a dividend of SEK 153 million to members based on the results for 2017. The bank is participating in a nationwide “Lokalsamtal” tour that showcases issues relevant to the entire country.
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.
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 09:30 pm CET on 26 April 2018.
For more information, please contact:
Sofie Essayh, Communication and Press Officer, firstname.lastname@example.org, +46 70 2851363
Fredrik Sandberg, CFO Landshypotek Bank, +46 8 459 04 06
Tomas Uddin, Chief Communications Officer, +46 70 299 24 08
Per Lindblad, CEO of Landshypotek Bank, can be contacted through Tomas Uddin and Sofie Essayh.
Summary of Q1 interim report:
January – March 2018 (compared with January – March 2017)
• Operating profit amounted to MSEK 102.2 (64.5).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 87.4 (97.6).
• Net interest income amounted to MSEK 187.4 (185.5).
• Costs totalled MSEK 106.4 (90.1).
• Net loan losses resulted in a gain of MSEK 4.7 (gain: 1.7).
• Lending amounted to SEK 69.6 billion (66.6).
• Deposits amounted to SEK 13.0 billion (12.0).
January – March 2018 (compared with October – December 2017)
• Operating profit amounted to MSEK 102.2 (91.2).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 87.4 (96.0).
• Net interest income amounted to MSEK 187.4 (208.6).
• Costs totalled MSEK 106.4 (108.7).
• Net loan losses resulted in a gain of MSEK 4.7 (loss: 4.6).
• Lending amounted to SEK 69.6 billion (68.5).
• Deposits amounted to SEK 13.0 billion (12.7).