Interim report 2 2016: Improved results for Landshypotek Bank
Landshypotek Bank continues to grow and post improved results. The improved earnings for the first half of 2016 were MSEK 7 not including the net result of financial transactions and MSEK 38 when these items were included.
“Our earnings and improved result enable us and give us the vigour to continue to develop the bank into a broader bank for entrepreneurs in farming and forestry and for people living on farms,” says Liza Nyberg, CEO of Landshypotek Bank.
Consolidated operating profit for the first half of 2016 amounted to MSEK 203, up MSEK 38 compared with the year-earlier period (MSEK 165). This takes into consideration that the net result of financial transactions was MSEK 31 higher than in the year-earlier period. Excluding the net result of financial transactions, operating profit amounted to nearly MSEK 173 (166), up MSEK 7 year-on-year.
Landshypotek Bank continues to develop. The bank’s services are being refined and its competitiveness and market presence are being strengthened as part of a long-term strategic development. At the same time, net credit losses declined during the first half of the year.
“We are developing all of our different methods of meeting customers. During the year, we have invested specifically in strengthening contacts with customers who rely on income from employment and not only their agriculture. The response from the customers has been considerable. We are now increasing contact with this broader group of customers. The changes will enable us to grow and allow us to serve more customers” says Liza Nyberg.
In the first half of 2016, lending increased SEK 1.2 billion to SEK 65.7 billion. Deposits also continued to grow, amounting to SEK 11.3 billion. During the first half of the year, the bank issued covered bonds, senior bonds and subordinated loans.
“We operate in a turbulent macro environment. Negative interest rates are now being followed by a market reacting to political risks ahead of the US election and following the UK’s EU referendum. However, we have both strengthened our capital and our liquidity during the quarter. Our ratings agencies confirmed our ratings. Many members choose to reinvest their dividends, which provides us with stability in these turbulent times. It also shows there is substantial interest and confidence in a bank with a difference in the Swedish banking market,” says Liza Nyberg.
Landshypotek Bank Q2 in brief
January – June 2016 compared with January – June 2015
• Operating profit amounted to MSEK 202.8 (164.8).
• The underlying operating profit, profit excluding financial transactions, totalled MSEK 172.6 (165.8).
• Net interest income declined MSEK 5.4 and totalled MSEK 370.2 (375.6).
• Costs increased and totalled MSEK 197.7 (192.6).
• Net loan losses declined and amounted to MSEK 9.7 (23.4).
• Lending amounted to SEK 65.7 billion (63.6).
• Deposits totalled SEK 11.3 billion (8.1), up SEK 3.2 billion.
April – June 2016 compared with January – March 2016
• Operating profit amounted to MSEK 87.4 (115.4).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 97.7 (74.9).
• Net interest income amounted to MSEK 193.6 (176.5).
• Costs totalled MSEK 101.2 (96.5).
• Net loan losses were MSEK 1.4 (8.3).
• Lending amounted to SEK 65.7 billion (65.1).
• Deposits amounted to SEK 11.3 billion (10.7).
For further information and comments, please contact:
Tomas Uddin, Chief Communications Officer at Landshypotek Bank, +46 70 299 24 08 firstname.lastname@example.org