Third quarter interim report 2023: Stable Landshypotek in exceptional times

An excellent customer base with good credit quality, together with substantial deposit growth, generated strong earnings for Landshypotek Bank for the first three quarters. This is clear from the bank’s interim report which is being published today.

Net interest income was SEK 928 million after three quarters (SEK 765 million), and at SEK 425 million (SEK 397 million) costs are being kept well within our planned scope. We posted a strong operating profit for the first three quarters of SEK 510 million (SEK 405 million).

This good financial performance has been built on healthy lending growth over the last few years and now on the bank’s decisive initiatives to grow deposits. 

“The imbalance in the economy and the financial markets is affecting us all. The uncertain economic climate will continue, with loan customers under pressure from conditions and a market dominated by weak credit growth. When combined with declining deposits growth, this will impact the bank’s earnings moving forward. However, our financial performance to date this year provides us with the security and opportunity to focus on our customers and actively work with initiatives that make us an even better bank,” says Per Lindblad, CEO of Landshypotek Bank.

The performance is built on strategic choices and a stable underlying business. The bank’s strategic pursuit of growth for several years has significantly increased lending volumes and the number of customers. The bank’s lending has almost doubled in the past decade, thereby creating a strong engine for earnings. During this period, the initiatives and fine efforts to strengthen deposits have since proved decisive. Deposit volumes have almost doubled over the past year and now total SEK 29 billion, making, thereby enabling this strong performance.

“The recent years’ growth has delivered us the preconditions to be self-reliant, and deposits have played a decisive financial role for us in these times. Financial security frees us from having to act in the short term. Our strong growth will return when the market is more balanced. We can now focus on our customers and on continued development,” says Per Lindblad.

While margins are tight between the bank’s market borrowing costs and its lending interest rates, deposits strengthen overall earnings. This is despite Landshypotek’s limited deposits compared with some other banks and, moreover, the bank consistently leading the way in raising interest rates for savers over the past year.

The banks’ customer groups comprise farmers, homeowners in the countryside, house owners and savers. This year’s arable farming season presented challenges for farmers in the form of an initial drought followed by substantial rainfall. The good year in 2022 for many farmers was financially very positive and provides them with scope to manage uncertainty and higher costs. However, said uncertainty is strongly affecting the investment rate in Swedish agriculture. Fundamentally, this growing challenge for Sweden requires farmers who can increase their investments and have the possibility of strengthening their profitability.

January – September 2023 (compared with January – September 2022)

  • Operating profit amounted to SEK 510 million (405).
  • Net interest income amounted to SEK 928 million (765).
  • Costs totalled SEK 425 million (397).
  • Net credit losses positively impacted earnings with recoveries of SEK 6 million (recoveries: 11).
  • Loans to the public amounted to SEK 104.7 billion (102.9).
  • Deposits from the public amounted to SEK 29.5 billion (20.1).

July – September 2023 (compared with April – June 2023)

  • Operating profit amounted to SEK 176 million (172).
  • Net interest income amounted to SEK 299 million (317).
  • Costs totalled SEK 124 million (149).
  • Net credit losses negatively impacted earnings with SEK 1 million (recoveries: 6).
  • Loans to the public amounted to SEK 104.7 billion (104.8).
  • Deposits from the public amounted to SEK 29.5 billion (28.4).


Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 1 November 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

35,000 farming and forestry customers, who are organised as a cooperative association. The bank has almost 240 employees located at branches across Sweden.