Landshypotek Bank Annual Report 2019: “Starting the 2020s as a broader, better and safer bank”
“Landshypotek Bank starts the 2020s as a broader, better and safer bank than the credit institution that entered the previous decade. Our focus is on being better at creating values for customers. When we grow through adding customers, we strengthen our long-term financial sustainability,” says Per Lindblad, CEO of Landshypotek 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 a capital gain from the sale of one property.
“We have continued to increase our lending to farmers and foresters as well as mortgage customers. We have also stabilised deposits at healthy levels. Our results for the year were satisfactory but were affected by rising borrowing costs and increasing competition. However, we take a long-term approach to our bank and to our business. We have advanced further in our development through new ways of meeting customers, for example. Based on the services we offer and the bank that we are, we are gradually becoming an increasingly popular and better bank with full focus on improving customer relationships even more in 2020.”
2019 was an intense year for Landshypotek. Landshypotek was the first bank to enable digital loan applications for customers who live or run companies on farming and forest properties. The bank thereby increased customer benefit and availability for those seeking finance for farming and forestry.
In November, the bank issued another green bond backed exclusively by forests and sustainable Swedish forestry. Forests on properties contribute an estimated climate benefit of around 750,000 tons of carbon dioxide, while concurrently preserving biodiversity. Investor interest was considerable and the bank raised funding of SEK 3 billion through the bond.
During the autumn, Landshypotek was a strong advocate of sustainable Swedish forestry when the EU proposed a new classification system to define what should be considered green and sustainable.
Moreover, 2019 was a year when Landshypotek continued to challenge and grow in the residential mortgage market. The organisation for house owners, Villaägarna, recently acclaimed Landshypotek as the best mortgage bank for 2019 in its mortgage report, which is based on a weighted comparison with other mortgage providers in the market.
Landshypotek Bank is owned by its farming and forestry loan customers and organised as a cooperative association. Its earnings have been assessed as justifying a Group contribution of SEK 162 million to Landshypotek Ekonomisk Förening. In turn, the Group contribution funds the association’s operations and a dividend to its members. The Association Meeting in April will resolve on the dividend to members.
At a glance - figures for Landshypotek Bank 2019
- 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).
- Lending amounted to SEK 76.4 billion (72.5).
- Deposits amounted to SEK 14.4 billion (14.1).
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.
For more information, please contact
Jonas Feinberg, Press Officer Landshypotek Bank, +46 70 349 24 10
Per Lindblad, CEO of Landshypotek Bank, can be contacted through Jonas Feinberg.