Interim report: Lending grows at Landshypotek Bank
Landshypotek Bank continues to grow. Public interest in Landshypotek is substantial for lending on farm and forest properties as well as for houses. Since the third quarter of last year, the bank has increased its volume of loans outstanding with SEK 12 billion. During the quarter, Landshypotek’s total volume of loans outstanding amounted to close to SEK 103 billion.
The bank’s lending on housing as well as on farm and forest properties grew faster than the market. This is confirmed in Landshypotek Bank’s interim report for the January to September period released today.
In the first half of the year, growth was at a record level and a historic milestone was passed with SEK 100 billion in lending. In the third quarter the rate of growth slowed somewhat, with an increase of approximately SEK 1.5 billion in total loans for the quarter. The slower growth rate was attributable to a more cautious market. Total lending amounted to SEK 102.9 billion (90.6), up SEK 12 billion, corresponding to 14 percent compared with the year-earlier quarter.
Landshypotek Bank specialises in homeowner mortgages and lending on farm and forest properties, and is attracting increasing numbers of customers in the market.
“We continue to develop healthily and stand securely in an increasingly uncertain world. Even if the growth rate continues to slow, we are capturing market shares as a challenger in the mortgage market and to strengthen our leading market position for lending to farming and forest entrepreneurs. We are confident in our operations and our business model, and will ensure we continue to create the right preconditions for our existing and future customers in an uncertain world,” says Per Lindblad, CEO of Landshypotek Bank.
Operating profit for the first three quarters amounted to SEK 405 million (363). Costs continued to develop according to plan and the pace of development remains high.
With major fluctuations in the lending market, it is difficult for banks to find the right interest rates for customers, but Landshypotek has succeeded well and the bank’s net interest income has grown with an increase in volume of SEK 765 million (721).
Opportunities for a challenger like Landshypotek to reach out to customers was made evident in September when the bank was early to raise interest rates for savings accounts. Landshypotek met considerable demand and witnessed a record inflow of new customers and increased volumes. Deposits now amount to over SEK 20 billion, growth of SEK 4 billion during the quarter.
Summary of the interim report:
January – September 2022 (compared with January – September 2021)
- Operating profit amounted to SEK 405 million (363).
- Net interest income amounted to SEK 765 million (721).
- Costs totalled SEK 397 million (357).
- Net credit losses positively impacted earnings with recoveries of SEK 11 million (recoveries: 1).
- Loans to the public amounted to SEK 102.9 billion (90.6).
- Deposits from the public totalled SEK 20.1 billion (15.0).
July – September 2022 (compared with April – June 2022)
- Operating profit amounted to SEK 181 million (102).
- Net interest income amounted to SEK 270 million (245).
- Costs totalled SEK 123 million (141).Net credit losses positively impacted earnings with recoveries of SEK 12 million (negative: 3).
- Loans to the public amounted to SEK 102.9 billion (101.4).
- Deposits from the public totalled SEK 20.1 billion (15.8).
Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 2 November 2022 at 8:00 a.m. CET.
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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 around 230 employees, over 100 elected representatives and is operational throughout Sweden.