INTERIM REPORT JANUARY–SEPTEMBER 2009
- OPERATING PROFIT, NOT INCLUDING “NET RESULT OF FINANCIAL TRANSACTIONS”, FOR THE FIRST THREE QUARTERS OF 2009 AMOUNTED TO MSEK 103.1 (149.9) The change in profit is explained by lower net interest income and lower recoveries. Net interest income for the first three quarters of 2009 amounted to MSEK 220.8, a decrease by MSEK 33.7 compared to the corresponding period 2008. The lower net interest income is explained primarily by lower market interest rates which has meant a lower return on the portion of equity invested in lending operations. - LOAN VOLUME AMOUNTED TO MSEK 44,885 (40,802) ULoans outstanding increased during the year by 8.7 percent to MSEK 44,885. The loan volume increased by 2.7 percent during the corresponding year-ago period. The increase in growth in 2009 compared to 2008 is explained by increased activity in the market. There is great interest in purchasing additional land, as well as investment in buildings and machinery. Landshypotek is also attracting a flow of new customers. - LOAN LOSS LEVEL 0.01 PERCENT (–0.06 PERCENT) Loan losses for the first nine months of 2009 amounted to MSEK 4.2, equivalent to 0.01 percent of loans outstanding. For the corresponding period 2008 recoveries exceeded loan losses and Landshypotek then reported recoveries of MSEK 11.6, equivalent to –0.06 percent of loans outstanding. As of September 30 2009 doubtful credits amounted to MSEK 27.1 (1.4), equivalent to 0.06 percent (0.00 percent) of loans outstanding. - CAPITAL ADEQUACY AMOUNTED TO 37.9 PERCENT; TIER I CAPITAL ADEQUACY WAS 34.4 PERCENT Based on the Basel II capital adequacy rules, Landshypotek has a very strong capital situation. Transitional rules remain in effect during 2009; under the transitional rules Landshypotek has capital adequacy of 8.9 percent and Tier 1 capital adequacy of 8.0 percent.