Landshypotek Bank interim report Jan – March 2020: Solid operations and stable results in worrying times

Landshypotek Bank’s operating profit for the first quarter of the year amounted to SEK 99 million, up slightly year-on-year (MSEK 87) and on the previous quarter (MSEK 74). This is confirmed in the interim report released today.

“Our results only show minor traces of the drama that has dominated the world and its financial markets of late. Earnings are stable and our performance was up slightly year-on-year, and even compared with last quarter. Our volumes continue to grow, albeit slightly slower than planned. Our part of the lending market is somewhat cautious, given the Riksbank’s interest rate change at the start of the year and the socio-economic crash triggered by efforts to combat Covid-19,” says Per Lindblad, CEO of Landshypotek Bank.

The measures to prevent the spread of Covid-19 have adversely impacted many aspects of society and our operating environment during the quarter. Economies have ground to a halt. The government and the Riksbank have taken extensive measures to attempt to soften the effects for households and companies. However, the farming and forestry sectors have been much less affected than many other sectors. A positive aspect for farming has been the debate regarding self-sufficiency and choosing goods produced in Sweden in stores.

Landshypotek Bank continues to report stable earnings and costs are under control. The bank maintains close contact with customers and, given the socio-economic situation, has analysed the credit portfolio from overall and individual perspectives. The bank is secure in its lending, however, a more conservative stance on the development of the property market and GDP has been included in its model for credit loss provisions. Therefore, provisions for credit losses have increased, but at the same time, net credit losses were positively impacted by individual commitments in the period.

“We have particular responsibility to maintain the operations of our bank in these turbulent times. We have strengthened our customer dialogue and acted swiftly to ensure continued access to finance for our customers. We have stable finances and a secure business, and we both want and have the capacity to continue growing. Making continued lending and savings possible for existing and new customers is a societal task that we stand for, nurture and develop. If possible, this is even more important today, during these exceptional times,” says Per Lindblad.

The full report is attached (pdf)

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 – March 2020 compared with January – March 2019

  • Operating profit amounted to SEK 99 million (87)
  • The underlying operating profit, excluding the net result of financial transactions, was SEK 93 million (87).
  • Net interest income amounted SEK 211 million (206).
  • Costs totalled SEK 120 million (112).
  • Net credit losses positively impacted earnings by SEK 2 million (negative: 8).
  • Loans to the public totalled SEK 77.1 billion (73.3).
  • Deposits from the public amounted to SEK 14.1 billion (14.4).

January – March 2020 compared with October – December 2019

  • Operating profit amounted to SEK 99 million (74).
  • The underlying operating profit, excluding the net result of financial transactions, was SEK 93 million (79).
  • Net interest income amounted SEK 211 million (202).
  • Costs totalled SEK 120 million (127).
  • Net credit losses positively impacted earnings by SEK 2 million (3).
  • Loans to the public totalled SEK 77.1 billion (76.4).
  • Deposits from the public amounted to SEK 14.1 billion (14.4).

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 April at 8:00 a.m. (CEST).

Published