Landshypotek Bank’s Year-end report 2022

Landshypotek Bank total volume of loans outstanding increased SEK 11.7 billion over the year and operating profit improved 16.4 percent. The bank continues to post strong growth in the lending market and passed SEK 100 billion in lending during the year. Landshypotek strengthened its leading position in farming and forestry by growing faster than the market, thus increasing its market share. Lending to house owners also continued to post rapid growth. This can be seen in the year-end report for January – December 2022.

During the year, Landshypotek’s volume of loans outstanding grew SEK 11.7 billion, or 12.4 percent, to close with total loans outstanding of SEK 105.6 billion (94.0). Increased lending also means increased earnings. The full-year operating profit was SEK 548 million (471), comprising an improvement of 16.4 percent. This is historically strong growth.

“From a financial perspective, 2022 was Landshypotek’s best year ever. Our total lending volume passed the SEK 100 billion milestone and we posted an operating profit of almost SEK 550 million. Through our growth and our actions in the market, we have strengthened our position as the leading bank for farmers and foresters. We have continued our growth within homeowner mortgages at an accelerating pace and have thus consolidated our position as an alternative for aware homeowners,” says Per Lindblad, CEO of Landshypotek Bank.

During the autumn, Landshypotek took the lead in raising the interest rate on the simple savings account Landshypotek offers for deposits. The interest from existing and new customers has been at record highs. The volume of deposits increased SEK 8 billion to SEK 23.5 billion, which represents an increase of more than 50 percent.

Landshypotek Bank aims to continue its development.

“Our strategy remains firm, despite a rapidly changing business environment. We aim to continue growth in 2023, although we humbly acknowledge that it will be a challenging year. Our growth plans remain firm as we focus on our fundamentals: first lien mortgage loans to farm and forest properties and houses, the strongest product in a banking relationship, and a critical enabler of safe, enterprising and richer lives on farms and in houses across the country,” says Per Lindblad.

The results provide healthy scope for dividends to our owners, Sweden’s farmers and foresters, who borrow for farming and forestry at Landshypotek. The Board of the bank has decided to appropriate a Group contribution of approximately SEK 197 million (172) for the owner, Landshypotek Ekonomisk Förening, to use for its operations and to distribute a dividend to some 35,500 members of Landshypotek’s circular business model.

More information is available in the year-end report regarding the results as well as events in the world around us in terms of the financial markets generally, and farming and forestry.

The full report is attached.

Summary of the interim report:

January – December 2022 (compared with January – December 2021)
• Operating profit amounted to SEK 548 million (471).
• Net interest income amounted to SEK 1,087 million (972).
• Costs totalled SEK 551 million (498).
• Net credit losses positively impacted earnings by SEK 4 million (recoveries: 5).
• Loans to the public amounted to SEK 105.6 billion (94.0).
• Deposits from the public amounted to SEK 23.5 billion (15.3).

October – December 2022 (compared with July – September 2022)
• Operating profit amounted to SEK 143 million (181).
• Net interest income amounted to SEK 322 million (270).
• Costs totalled SEK 154 million (123).
• Net credit losses negatively impacted earnings by SEK 6 million (recoveries: 12).
• Loans to the public amounted to SEK 105.6 billion (102.9).
• Deposits from the public amounted to SEK 23.5 billion (20.1).

Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 3 February 2023 at 8:00 a.m. (CET).

For more information, please contact:
Jonas Feinberg, Press Officer, +46 70 349 24 10

About Landshypotek Bank
Landshypotek was founded in 1836 and is currently 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 35,500 farming and forestry customers, who are organised as a cooperative association. The bank has almost 210 employees located at branches across Sweden.