Landshypotek Bank’s Year-end report January – December 2023: Strong performance for the year provides security in uncertain times

The past years’ positive trends for customers and market growth enables Landshypotek Bank to create security for customers even in times of increased uncertainty. Over the past years, the bank has grown significantly and its operating profit of SEK 636 million is the best in the bank’s history. This can be seen in the 2023 year-end report presented today, 7 February.

Landshypotek strengthened its market position in financing farm and forest properties over the year, and remains the safe choice for aware mortgage customers and continued to act as challenger in the savings market. Even though lending growth has slowed, the bank has continued to grow in the household savings market. Our high-quality customer base, together with last year’s growth in lending and deposits, resulted in this year’s full-year operating profit of SEK 636 million (548) being the best in the Landshypotek’s history.

“2023 was an exceptional year for the world and for the global economy, which has naturally impacted us. In softening credit markets, our focus has been on creating security and maintaining close relations with customers in these uncertain times. We act with a long-term rather than a quarterly perspective to our business and our goal is entirely focused on making a long-term difference for customers and the market. The good performance stems from our growth in recent years to become a bigger and better bank for increasing numbers of customers, both in lending and in savings. This performance ensures our continued development for customers moving forward, which is needed with continued uncertainty in 2024,” says Per Lindblad, CEO of Landshypotek Bank.

Landshypotek Bank posted strong net interest income of SEK 1.2 billion (1.1). The bank has a customer base with good credit quality and good control of costs, which at SEK 589 million (551) enables necessary development and personnel growth. The bank has no credit losses that adversely impact on earnings.  

“We will use this year’s excellent earnings to build additional stability and capacity for change. It also allows for an excellent dividend to our owners in Landshypotek’s circular business model: our loan customers within farming and forestry,” says Per Lindblad.

The bank’s surplus goes back to Landshypotek Ekonomiska Förening, through which all customers who borrow for farm and forest properties own the bank. Based on these earnings, the bank’s Board has resolved to distribute the largest Group contribution to date to the cooperative association, SEK 263 million (197). It enables, inter alia, a dividend to every member and thus makes a strong contribution to Swedish farming and forestry. The dividend is decided by the cooperative association after the regional meetings in the spring and finally at the Annual Association Meeting in May.

More information is available in the year-end report about the year’s performance as well as about events in our operating market, both in the financial markets generally as well as in farming and forestry.

The full report is attached.

Summary of the interim report:

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

  • Operating profit amounted to SEK 636 million (548).
  • Net interest income amounted to SEK 1,230 million (1,087).
  • Costs totalled SEK 589 million (551).
  • Net credit losses positively impacted earnings with recoveries of SEK 5 million (recoveries: 4).
  • Loans to the public amounted to SEK 104.8 billion (105.6).
  • Deposits from the public amounted to SEK 29.1 billion (23.5). 

October – December 2023 (compared with July – September 2023)

  • Operating profit amounted to SEK 126 million (176).
  • Net interest income amounted to SEK 302 million (299).
  • Costs totalled SEK 164 million (124).
  • Net credit losses negatively impacted earnings with SEK 1 million (loss: 1).
  • Loans to the public amounted to SEK 104.8 billion (104.7).
  • Deposits from the public amounted to SEK 29.1 billion (29.5).

Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 7 February 2024 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 34,000 farming and forestry customers, who are organised as a cooperative association. The bank has almost 240 employees located at branches across Sweden.