Year-end report 2017: Strengthened annual earnings and successful mortgage launch for Landshypotek Bank

Landshypotek Bank reports strong earnings for 2017. Excluding the net result of financial transactions, operating profit improved by some MSEK 60 to MSEK 387. The bank is also growing both in terms of deposits and lending. In the autumn, Landshypotek Bank made a successful mortgage market entrance. 

“Our underlying earnings posted a historic high. Above all else, we have had a great autumn with a successful market launch of our mortgage loans and a substantial increase in our visibility. This means we have been able to welcome numerous new customers — both for farming and forestry and for mortgages — to our bank,” says Catharina Åbjörnsson Lindgren, Acting CEO of Landshypotek Bank.

The volume of loans outstanding increased SEK 2 billion to SEK 68.5 billion (66.5) during the year. Deposits also rose and totalled SEK 12.7 billion (11.7) at year end.

The decrease in the net result of financial transactions for the year negatively impacted earnings after inclusion of these items. Operating profit including the net result of financial transactions amounted to MSEK 339,2 (353,4) down MSEK 14,2 compared with 2016. The underlying operating profit, excluding the net result of financial transactions, posted an improvement to MSEK 387,3 (327,3).

The bank’s loan losses remain extremely low. The bank reported net loan losses of MSEK 12.5 (14.8). Net interest income improved slightly and costs remained on a par with last year.

Landshypotek Bank launched itself in the mortgage market during the fourth quarter. Through several market activities and a separate introductory offer, the bank reached new customers. With in just a few months, by the end of the year, lending to mortgage customers amounted to SEK 0.5 billion, and there was also an increase in farming and forestry customers moving to the bank. 

“We have made a positive start to 2018 and have full focus on strengthening our presence as the bank to save with and borrow from, for houses or for farming and forestry. We want to widen the exposure of our bank in the Swedish banking market,” says Catharina Åbjörnsson Lindgren, Acting CEO of Landshypotek Bank.

In the annual accounts, the Board of Landshypotek Bank has decided to distribute MSEK 170, in Group contributions to its owners. The bank is owned by its 40,000 loan customers in the farming and forestry sector, organised as members of Landshypotek Ekonomisk Förening. Group contributions are used for the operations of the cooperative association and, after resolution by the association, as member dividends. The association will decide on member dividends at the General Meeting being held in April.

For further information and comments, please contact:

Tomas Uddin, Chief Communications Officer at Landshypotek Bank, +46 70 299 24 08

Catharina Åbjörnsson Lindgren, Acting CEO, and Fredrik Sandberg, CFO, can be contacted through Tomas Uddin. 

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 26 January 2018.

In brief:

January – December 2017 (compared with January – December 2016)

  • Operating profit amounted to MSEK 339,2 (353,4).
  • The underlying operating profit, excluding the net result of financial transactions, was MSEK 387,3 (327,3).
  • Net interest income amounted to MSEK 800,4 (737,2).
  • Costs totalled MSEK 402.5 (402.4).
  • Net loan losses amounted to a recovery of MSEK 12.5 (loss: 14.8).
  • Lending amounted to SEK 68.5 billion (66.5).
  • Deposits amounted to SEK 12.7 billion (11.7).

October – December 2017 (compared with July – September 2017)

  • Operating profit amounted to MSEK 91,2 (93,2).
  • The underlying operating profit, excluding the net result of financial transactions, was MSEK 96,0 (93,5).
  • Net interest income amounted to MSEK 208,6 (197,8).
  • Costs totalled MSEK 108.7 (100.4).
  • Net loan losses amounted to a recovery of MSEK 4.6 (loss: 4.1).
  • Lending amounted to SEK 68.5 billion (67.6).
  • Deposits amounted to SEK 12.7 billion (12.5).

About Us

Landshypotek Bank's fundamental mission is to finance the investments of farmers and foresters, and has remained the same since founded in 1836. Since April 2013, Landshypotek Bank is one of Sweden’s ten largest banks. We are a unique niche bank, we are owned by our members and we challenge the prices for farming and forestry industries to offers the best rates possible. The profit we earn is invested back into the agricultural and farming industry for continuous growth and development.

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