Landshypotek Bank’s interim report: Historically strong lending growth
Landshypotek’s lending is increasing in mortgages and to farming and forestry. Our first quarter lending growth of SEK 2.7 billion is one of the strongest in the bank’s history. The growth, together with cost control, means we also recorded healthy earnings for the quarter of SEK 116 million (99). This is apparent in the interim report that was presented today.
“Naturally, our main strength is lending to farms and forestry and will remain so, but this is a small lending market compared to the home mortgage market, for example. Our mortgage market entry is now starting to have a positive effect and our volumes are growing. It’s a nice testament to the benefit we’re providing for customers and the market as a whole.” says Per Lindblad, CEO of Landshypotek Bank.
With lending growth of SEK 2.7 billion, the quarter was one of the strongest in Landshypotek’s history. Strong lending growth also leads to strong earnings. Net interest income amounted to SEK 233 million (211) and costs developed to plan. As a result, operating profit totalled SEK 116 million (99).
In the first quarter, the bank also succeeded in implementing several digital improvements for customers and forged new partnerships that have provided an extra boost to an already strong performance. In terms of mortgages, the bank has continued to stand for competitive interest rates. The new partnership with Avanza enables more people to discover Landshypotek’s mortgage offering.
Good energy and positive feelings in Sweden’s agricultural community.
The eleven annual regional meetings of Landshypotek Ekonomisk Förening, Landshypotek Bank’s owner organisation of farming and forestry customers, were held at the end of March. All members could participate online to hear more about developments at their own bank and association, participate in the association’s resolutions, and learn about what is relevant for the sector in general and in their own region specifically.
“Our hearts beat for farming and forestry and for customers across the country. We are now noting a positive trend for farming and forestry. Demand for Swedish food is on the increase and there are also many positives for forestry. The popularity of home renovation projects means the market for sawn timber is buoyant. Healthy exports are also driving demand,” says Per Lindblad.
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.
Summary of the interim report
January – March 2021
compared with January – December 2020
• Operating profit amounted to SEK 116 million (99).
• The underlying operating profit, excluding the net result of financial transactions, was SEK 116 million (93).
• Net interest income amounted to SEK 233 million (211).
• Costs totalled SEK 122 million (120).
• Net credit losses positively impacted earnings by SEK 4 million (2).
• Loans to the public amounted to SEK 85.8 billion (77.1).
• Deposits from the public amounted to SEK 14.7 billion (14.2).
January – March 2021
compared with October – December 2020
• Operating profit amounted to SEK 116 million (106).
• The underlying operating profit, excluding the net result of financial transactions, was SEK 116 million (116).
• Net interest income amounted to SEK 233 million (235).
• Costs totalled SEK 122 million (127).
• Net credit losses positively impacted earnings by SEK 4 million (4).
• Loans to the public amounted to SEK 85.8 billion (83.0).
• Deposits from the public amounted to SEK 14.7 billion (14.7).
Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 5 May 2021 at 8:00 a.m. CEST.
For more information, please contact:
Jonas Feinberg, Press Officer, firstname.lastname@example.org, +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 almost 200 employees located at branches across Sweden.