Länsförsäkringar Hypotek: Interim Report January–March 2016

”During the quarter, Länsförsäkringar Hypotek reported a favourable performance in the mortgage market, where we successively continued to capture market shares and deliver a strong operating profit. Lending is growing at a steady rate with high credit quality, while loan losses remain very low. It is clear that our strong local presence and our high customer satisfaction are continuing to be a winning combination. The trend in housing prices remained one of the most debated issues and it is positive that the price trend at the end of last year and start of this year appears to have entered into a calmer phase. The new regulation on mortgage repayments is expected to finally come into force during the second quarter of the year, which will further strengthen the distinct trend towards an improved mortgage repayment culture. Additional measures are being discussed by the authorities and it is important in this respect that any effects on the function of the housing market are carefully analysed before the measures are introduced. It is also important that the underlying problem of insufficient new housing construction is addressed” says Anders Borgcrantz, President of Länsförsäkringar Hypotek.

The period in brief

  • Operating profit increased 108% to SEK 187 M (90) and return on equity amounted to 8.1% (4.5).
  • Net interest income increased 26% to SEK 372 M (296).
  • Loan losses amounted to SEK 0.1 M (-3.1), net, corresponding to loan losses of 0.00% (-0.01).
  • Lending increased 15.5% to SEK 151 billion (131).
  • The Common Equity Tier 1 capital ratio amounted to 40.8% (37.4*) on 31 March 2016.
  • The number of customers rose 7% to 219,000.

*) Refers to 31 December 2015.
Figures in parentheses pertain to the same period in 2015.

http://www.lansforsakringar.se/om-oss/in-english/financial-reports/lansforsakringar-hypotek/

For further information please contact:

Anders Borgcrantz, President, Länsförsäkringar Hypotek AB, +46 (0)8-588 412 51, +46 (0)73-964 12 51

Martin Rydin, Executive Vice President, Länsförsäkringar Hypotek AB, +46 (0)8-588 412 79, +46 (0)73-964 28 23

The Länsförsäkringar Alliance comprises 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring and total solutions for reliable mortgage transactions are offered through Länsförsäkringar Fastighetsförmedling.

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About Us

Länsförsäkringar is Sweden’s only customer-owned and locally established banking and insurance group. The customers in each of the counties in the country own their local and independent regional insurance company. The 23 regional bank and insurance companies cooperate in the jointly owned Länsförsäkringar AB, which conducts development and provides services within banking, life assurance, non-life insurance and animal insurance. Länsförsäkringar offers a broad range of insurance and banking services for individuals, companies and farming. All companies within the Länsförsäkringar Alliance are environmentally certified in accordance with ISO 14001.