Landshypotek Bank Year-end report 2018: Strong results and continued healthy growth
Operating profit for the year amounted to MSEK 387.6 (339.2). Operating profit excluding the net result of financial transactions was MSEK 370.4 (387.3).
Both lending and deposits continue to increase. The bank now has SEK 72.5 billion (68.5) in loans outstanding and SEK 14.1 billion (12.7) in deposits. The bank’s mortgage lending passed the SEK 3.7 billion mark in the fourth quarter.
“2018 can be summed up as a year of healthy results and growth, and a year when considerable progress was made with preparing for the future. Our earnings capacity and ability to generate results is stronger than in previous years. We continue to grow as the farmers and foresters’ own bank. Our mortgage venture is for the long term, but we it is already starting to positively impact results,” says Per Lindblad, CEO of Landshypotek Bank.
Costs are also rising in line with plans and amounted to MSEK 425.8 (402.5) for the year. The bank has expanded its business development activities and employee numbers, in part to administer new mortgage customers and in part to allow the continued strengthening of the bank as a whole.
“We are developing based on what we have and what we represent. Step by step, we are becoming a better bank for more customers – and are continuing to grow as a challenger and a bank with a difference in Sweden’s banking market,” adds Per Lindblad.
Last summer’s drought dominated the year for many of the bank’s customers. As the farmers’ and foresters’ own bank, we have maintained close dialogues with customers and made individual assessments to identify the best solutions together with customers.
Based on the results, the Board has decided to disburse a Group contribution from the bank of MSEK 158 to the cooperative association, whose members comprise loan customers in the farming and forestry sector. The Group contribution funds the association’s operations and a dividend to its members — in other words, Sweden’s farmers and foresters.
More information is available in the interim report regarding the results as well as events in our operating environment in terms of the financial and mortgage markets, and farming and forestry.
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 January at 9:00 a.m. (CET).
At a glance:
January – December 2018
compared with January – December 2017
• Operating profit amounted to MSEK 387.6 (339.2).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 370.4 (387.3).
• Net interest income amounted to MSEK 799.0 (800.4).
• Costs totalled MSEK 425.8 (402.5).
• Net credit losses resulted in a recovery of MSEK 8.0 (12.5).
• Lending amounted to SEK 72.5 billion (68.5).
• Deposits amounted to SEK 14.1 billion (12.7).
October – December 2018
compared with July – September 2018
• Operating profit amounted to MSEK 89.0 (100.7).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 88.9 (102.8).
• Net interest income amounted to MSEK 208.5 (204.5).
• Costs totalled MSEK 105.3 (101.5).
• Net credit losses resulted in a recovery of MSEK 15.4 (1.4).
• Lending amounted to SEK 72.5 billion (71.5).
• Deposits amounted to SEK 14.1 billion (13.7).