Interim report: Landshypotek’s robust lending growth continues
Landshypotek Bank continues to grow. With lending growth of SEK 3.6 billion in the second quarter, lending has increased almost SEK 13 billion in one year. During the quarter, Landshypotek exceeded SEK 100 billion in total lending volume.
Accordingly, on a percentage basis, the bank’s lending grew faster in the quarter than the market for lending on housing and farm and forest properties. This is confirmed in Landshypotek Bank’s Q2 interim report released today.
Landshypotek Bank specialises in homeowner mortgages and lending on farm and forest properties, and is attracting increasing numbers of customers in the market.
“In this time of increased economic uncertainty, it is gratifying that we continue to assist and create security for increasing numbers of customers who want to borrow for houses and farm and forest properties. Our growth was up on the corresponding period last year,” says Per Lindblad, CEO of Landshypotek Bank.
Moreover, Landshypotek Bank’s performance trend remains positive, despite interest rates in borrowing markets rising faster than they have for customers. And therefore, net interest income has not grown in line with the increased lending volume.
The operating profit for the first six months amounted to SEK 224 million (219), of which the second quarter contributed SEK 102 million (122). Concurrently, the bank continues to demonstrate very good credit quality with costs under control and increasing according to the plan for long-term sustainable growth.
The world economy is undergoing rapid change. During the quarter, interest rates have risen both for bank funding operations and for customers, yet Landshypotek can still identify future opportunities.
“We have a well-functioning business model with a firm and positive course moving forward. It is in times of challenge that a bank built on a long-term business model with long-term customer relationships works best and is needed most. Therefore, our outlook remains positive in terms of our continued growth and increased earnings, although the pace of lending may slow somewhat. We are investing to be an even better bank for our customers. Our position is stable and we are open and available to customers,” says Per Lindblad.
More information is available in the interim report regarding the results, Per Lindblad’s comments as CEO as well as events in the world around us in terms of the financial markets generally, and farming and forestry.
Summary of the interim report:
January – June 2022 (compared with January – June 2021)
- Operating profit amounted to SEK 224 million (219).
- Net interest income amounted to SEK 495 million (472).
- Costs totalled SEK 274 million (251).
- Net credit losses impacted earnings with SEK 1 million
- Loans to the public amounted to SEK 101.4 billion (88.6).
- Deposits from the public totalled SEK 15.8 billion (14.9).
April – June 2022 (compared with January – March 2022)
- Operating profit amounted to SEK 102 million (122).
- Net interest income amounted to SEK 245 million (250).
- Costs totalled SEK 141 million (133).
- Net credit losses impacted earnings with SEK 3 million
- Loans to the public amounted to SEK 101.4 billion (97.8).
- Deposits from the public totalled SEK 15.8 billion (15.4).
Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 21 July 2022 at 8:00 a.m. (CEST).
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Jonas Feinberg, Press Officer, email@example.com, +46 70 349 24 10 or alternatively Tomas Uddin, Chief Communications Officer, firstname.lastname@example.org+46 70 299 24 08.
Landshypotek – financing farming and forestry since 1836
Landshypotek was founded in 1836. The bank specialises in homeowner mortgages and financing farm and forest properties as well as household savings for the general public. In terms of lending, Landshypotek is one of the ten largest banks in Sweden. The bank is deemed systemically important for the farming and forestry industries, and is owned by its some 36,000 farming and forestry customers, who are organised as a cooperative association. Landshypotek has just over 220 employees, over 100 elected representatives and is operational throughout Sweden.