Landshypotek Bank Interim Report January – June 2020: Continued volume growth and stable earnings

Landshypotek Bank continues to grow with higher lending and stable earnings. This was confirmed in the six-month interim report released today. “Despite the prevailing uncertainty in the world around us, we continue to attract new customers and post stable results. The bank has a strong financial position and good credit quality,” notes the bank’s CEO Per Lindblad.

The bank’s operating profit amounted to SEK 175 million (187) for the first six months. The change in earnings was mainly due to a lower net result of financial transactions and higher costs, which were partly offset by an improvement in net interest income. The cost increase was due to the effect of putting investments into operation, increased investment in strengthening IT security and higher amortisation and depreciation as a result of the bank implementing a new credit scoring system in the third quarter of 2019.

Excluding the net result of financial transactions, operating profit amounted to SEK 183 million (189). The bank’s loans to the public increased SEK 1.1 billion in the second quarter.

“The fight to stop Covid-19 that has impacted the economy and society has, naturally, also affected us. But this has not led us to pause in any way our long-term and continuous work for our customers, nor our growth with yet more customers. This was important for us and our customers, even during these strange first six months,” says Per Lindblad.

Growing with more customers means a more stable foundation for financial sustainability over time. The bank’s loans to the public amounted to SEK 78.2 billion (76.4 at 31 December 2019). More farming and forestry customers are choosing to make digital applications for loans with the bank. Moreover, lending volumes and customer numbers continue to rise for mortgage loans.

“Our first six months confirm our strength. Despite the uncertainty in in the world around us and a cautious lending market, we continue to attract new customers and post stable results. The high credit quality of our customers and the low-risk nature of the operations we conduct result in a secure and stable bank, as shown by the development of our credit portfolio. Following the somewhat cautious spring period, we are now noting increased activity among customers in our lending markets,” says Per Lindblad.

Compared with many other sectors, the farming and forestry sectors have been much less affected by the pandemic and its economic effects. Moreover, self-sufficiency discussions have continued to boost interest in food produced in Sweden.

More information is available in the interim report regarding the results as well as events in our operating environment in terms of the financial markets, and farming and forestry.

The full report is attached (pdf).

For more information, please contact

Tomas Uddin, Chief Communications Officer, +46 70 299 24 08
Jonas Feinberg, Press Officer, jonas.feinberg@landshypotek.se, +46 70 349 24 10

About Landshypotek Bank

Landshypotek Bank was founded in 1836 and is one of the ten largest lending banks in Sweden. The bank is 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, who are organised as a cooperative association. The bank has around 200 employees located at branches across Sweden.


Summary of the interim report

January – June 2020 (compared with January – June 2019)

  • Operating profit amounted to SEK 175 million (187).
  • The underlying operating profit, excluding the net result of financial
    transactions, was SEK 183 million (189).
  • Net interest income amounted to SEK 421 million (409).
  • Costs totalled SEK 244 million (226).
  • Net credit losses positively impacted earnings by SEK 4 million (2).
  • Loans to the public amounted to SEK 78.2 billion (73.9).
  • Deposits from the public amounted to SEK 14.6 billion (14.6).

    April – June 2020 (compared with January – March 2020)
  • Operating profit amounted to SEK 76 million (99).
  • The underlying operating profit, excluding the net result of financial transactions, was SEK 90 million (93).
  • Net interest income amounted to SEK 210 million (211).
  • Costs totalled SEK 124 million (120).
  • Net credit losses positively impacted earnings by SEK 2 million (2).
  • Loans to the public amounted to SEK 78.2 billion (77.1).
  • Deposits from the public amounted to SEK 14.6 billion (14.1).

    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 20 July at 8:00 a.m. (CEST).

Published