Landshypotek Bank interim results Q3 2017: Continued growth and focus on introduction as a mortgage bank
Landshypotek Bank continues to grow. Lending and deposits both increased in the first three quarters of the year. In parallel, the bank started its introduction as a new mortgage bank in the Swedish banking market.
For the first three quarters, the bank posted an operating profit excluding the net result of financial transactions of MSEK 277.2 (279.8), which was well in line with the same period in 2016.
“We continue to strengthen profitability in our existing operations with growth in both deposits and lending. However, the quarter was marked chiefly by our introduction to the market as a mortgage bank. During the summer, we always run many activities that reinforce our market presence in farming and forestry but, this year, we also started to present ourselves as the bank for homeowner mortgages,” says Catharina Åbjörnsson Lindgren, Acting CEO of Landshypotek Bank.
Together with net earnings from financial transactions, which vary considerably between the quarters, operating profit amounted to MSEK 233.9 (349.1) for the January – September 2017 period. Both lending and deposits continue to increase. The bank has SEK 67.6 billion (66.2) in loans outstanding and SEK 12.5 billion (11.7) in deposits.
Net interest income improved slightly during the year and loan losses remained low. Costs are following the planned increases and are part of the process of developing into a broader bank and reaching new customer groups.
“The need for a new, but safe bank in the mortgage market was confirmed when we met our new customer group. There is considerable interest in the bank with a difference that has societal responsibility ingrained in its business model, and which has enabled Swedish food production, open landscapes and well-kept forests for almost two centuries. We are working hard to become an even better bank to save with and borrow from — for even more customer groups,” says Catharina Åbjörnsson Lindgren.
For more information, please contact:
Catharina Åbjörnsson Lindgren, Acting CEO of Landshypotek Bank, can be contacted through Tomas Uddin, +46 (0)70 299 24 08
Fredrik Sandberg, CFO and Acting Deputy CEO of Landshypotek Bank, +46 (0)8 459 04 06
Tomas Uddin, Chief Communications Officer, +46 (0)70 299 24 08
This information is information that Landshypotek Bank AB is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 8.45 am CET on 27 October 2017.
Summary of Q3 interim report:
January – September 2017 (compared with January – September 2016)
• Operating profit amounted to MSEK 233.9 (349.1).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 277.2 (279.8).
• Net interest income amounted to MSEK 577.8 (561.1).
• Costs totalled MSEK 293.7 (279.4).
• Net loan losses were MSEK 7.9 (6.8).
• Lending amounted to SEK 67.6 billion (66.2).
• Deposits amounted to SEK 12.5 billion (11.7).
July – September 2017 (compared with April – June 2017)
• Operating profit amounted to MSEK 86.2 (83.2).
• The underlying operating profit, excluding the net result of financial transactions, was MSEK 86.5 (93.1).
• Net interest income amounted to MSEK 190.8 (201.4).
• Costs totalled MSEK 100.4 (103.3).
• Net loan losses were MSEK 4.1 (5.5).
• Lending amounted to SEK 67.6 billion (67.2).
• Deposits amounted to SEK 12.5 billion (12.4).
About Landshypotek Bank
Landshypotek Bank is one of the ten largest banks in Sweden and has the primary task of providing finance to farmers and foresters. The bank also offers savings accounts to the general public in Sweden and mortgages to homeowners. The bank’s customers help strengthen the agroforestry industries and thus mean that we can all benefit from locally produced food and Swedish forest products. Landshypotek Bank has around 170 employees and has offices in 19 locations across Sweden.