Landshypotek Bank’s Interim Report January – September 2020: Strong growth continues

The bank’s lending volumes increased in the third quarter both for loans on agricultural properties and home mortgages. The bank’s lending volume now totals SEK 80 billion as shown in the third quarter interim report, which was published today.

Landshypotek Bank posts strong volume growth and satisfactory earnings. During the third quarter, the bank’s net interest income improved and loans to the public rose SEK 1.8 billion.

“In these turbulent times, it is gratifying that we were able to quickly adapt and continue to grow, both for lending on agricultural properties and houses. The bank has maintained high levels of activity and the underlying earnings have improved. We are seeing clear progress from our constant efforts to become even better at meeting our customers,” says the bank’s CEO, Per Lindblad.

The operating profit amounted to SEK 291 million (345), and excluding the net result of financial transactions to SEK 299 million (341). It should be noted that last year’s figures included the sale of one property that resulted in a capital gain of SEK 55 million.

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.

“Given society’s substantial interest in everything green, locally produced and sustainable, we have noted that many farmers have positive outlooks. Farmers also now appear to see new opportunities after recovering from the major drought in 2018. More members of our Lantbrukspanel, eight out of ten, feel positively about being a farmer at the moment,” says Per Lindblad.

“Our financial situation provides us with security, since we have not noted any negative impact on the bank’s customers or decline in credit quality. Our earnings capacity remains stable with a positive trend. The capital situation is healthy and we have capacity to lend to more customers and for new customer investments,” says Per Lindblad.

Given the above, the Board of Directors of Landshypotek Ekonomisk Förening proposes an extraordinary general meeting to resolve on the distribution of a dividend of SEK 141 million to the association’s members. Landshypotek Bank is owned through a cooperative association, the members of which comprise our customers in agriculture.

Member returns are a core principle for a cooperative association and thus a foundation for the business model. The profit distribution strengthens the finances of farms across the country that account for Swedish food production and forestry. This boosts the liquidity of Swedish farmers thereby contributing to strengthening food production, a societally important area of business as defined by the authorities.

More information is available in the interim report regarding the results as well as events in the world around us in terms of the financial markets, and farming and forestry. The full report is attached.

LHB report jan-sept 2020 (pdf)

For more information, please contact:
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 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 37,000 farming and forestry customers, who are organised as a cooperative association. The bank has some 200 employees located at branches across Sweden.

Summary of the interim report

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

  • Operating profit amounted to SEK 291 million (345). Operating profit for 2019 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 299 million (341).
  • Net interest income amounted to SEK 636 million (614).
  • Costs totalled SEK 350 million (333).
  • Net credit losses positively impacted earnings by SEK 8 million (0).
  • Loans to the public amounted to SEK 80.0 billion (75.4).
  • Deposits from the public totalled SEK 14.5 billion (14.6).

July – September 2020 (compared with April – June 2020)

  • Operating profit amounted to SEK 116 million (76).
  • The underlying operating profit, excluding the net result of financial transactions, was SEK 115 million (90).
  • Net interest income amounted to SEK 215 million (210).
  • Costs totalled SEK 106 million (124).
  • Net credit losses positively impacted earnings by SEK 4 million (2).
  • Loans to the public amounted to SEK 80.0 billion (78.2).
  • Deposits from the public totalled SEK 14.5 billion (14.6).

Landshypotek Bank AB is required to disclose this information pursuant to the Market Abuse Regulation (EU) No 596/2014 and the Securities Market Act (2007:528). This information was submitted for publication on 28 October 2020 at 8:00 a.m. (CET).

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