Interim Report Q3 2019: Landshypotek Bank continues to grow

“Landshypotek Bank remains a growing bank. We are increasingly active on behalf of our farming and forestry customers and are gradually establishing ourselves as a mortgage bank. During the quarter, we sold our only remaining property, however earnings were also boosted by volume growth,” says Per Lindblad, CEO of Landshypotek Bank.

The banks’ operating profit for the first three quarters amounted to SEK 345 million (297 for the year-earlier period). The underlying operating profit excluding the net result of financial transactions amounted to SEK 341 million (280). For the third quarter, operating profit amounted to SEK 158 million (100) and excluding the net result of financial transactions, was SEK 153 million (102).

Volume growth in the first three quarters resulted in an increase in net interest income to SEK 614 million (591). In parallel, costs have risen according to plan by SEK 11 million, to a total of SEK 333 million (322) compared with the first three quarters last year. This was mainly attributable to the systems investments made to manage the bank’s growth and to continue the overall strengthening of the bank.

The bank’s lending amounts to almost SEK 75.4 billion, up SEK 1.5 billion. Growth in farming and forestry was stable. Customers quickly expressed positive interest when the bank, ahead of the summer, was first in the market to make it possible for farming and forestry customers to apply for loans online. By September, applications for more than SEK 350 million had been processed through the new digital flow.

In the autumn, the bank’s mortgage loan growth increased considerably, and at the end of September, lending had reached SEK 5.7 billion to houseowners across the country.

“We are investing heavily to strengthen customer value and are continuing to open our doors to many new customers. Our digital application process opens new possibilities for farmers and foresters. And in parallel with increasing competition in the mortgage market, we have noted that an increasing number of homeowners continue to seek a mortgage provider that combines competitive interest rates with strong values,” adds Per Lindblad.

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 25 October 2019 at 8:00 a.m. (CEST).

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 – September 2019
compared with January – September 2018

• Operating profit amounted to SEK 345 million (297).
  • Capital gain of SEK 55 million attributable to the sale
  of property.
  • The underlying operating profit, excluding the net result
  of financial transactions, was SEK 341 million (280).
  • Net interest income amounted to SEK 614 million (591).
  • Costs totalled SEK 333 million (322).
  • Net credit losses totalled SEK 0 million (positive: 7).
  • Lending amounted to SEK 75.4 billion (71.5).
  • Deposits amounted to SEK 14.6 billion (13.7).

July – September 2019
compared with April – June 2019

• Operating profit amounted to SEK 158 million (100).
  • Capital gain of SEK 55 million attributable to the sale
  of property.
  • The underlying operating profit, excluding the net result
  of financial transactions, was SEK 153 million (102).
  • Net interest income amounted to SEK 205 million (203).
  • Costs totalled SEK 107 million (114).
  • Net credit losses totalled SEK 3 million (positive: 11).
  • Lending amounted to SEK 75.4 billion (73.9).
  • Deposits amounted to SEK 14.6 billion (14.6).