Year-end report 2017

”Länsförsäkringar Hypotek performed very well in 2017 and operating profit continued to report a positive trend, driven by strong underlying net interest income. Lending is growing at a stable rate, while credit quality remains highs and loan losses very low. We can see that the number of customers is continuing to grow and we are successively capturing market shares, which is largely due to our high customer satisfaction and our strong local presence. The Swedish economy continued to perform well and household finances remain healthy, although there are macroeconomic risks related to household indebtedness and housing prices. Given these risks, the Swedish FSA decided to introduce stricter mortgage repayment requirements. While a stronger repayment behavior and a certain correction to housing prices are healthy developments, it is important that politicians going forward instead focus on the functionality of the housing market.” says Martin Rydin, President of Länsförsäkringar Hypotek.

The year in brief

  • Operating profit increased 23% to SEK 813.0 M (658.4) and the return on equity strengthened to 6.9% (6.7).
  • Net interest income increased 28% to SEK 2,101 M (1,647).
  • Loan losses amounted to SEK 0.0 M (–4.8*), net, corresponding to a loan loss level of 0.00% (–0,01).
  • Lending increased 17% to SEK 197.7 billion (168.9). The Common Equity Tier 1 capital ratio amounted to 56.3% (54.5**) on 31 December 2017.
  • The number of customers rose 10% to 255,000 (231,000).
  • According to the 2017 Swedish Quality Index customer satisfaction survey, Länsförsäkringar is the single player on the market with the most satisfied retail mortgage customers.

Figures in parentheses pertain to the same period in 2016.
* Includes the dissolution of reserves of SEK 3.1 M.
** Pertains to 30 September 2017.

For further information please contact:

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

Stefan Karkamanis, Investor Relations, Länsförsäkringar Bank AB
+46 (0)8-588 402 90, +46 (0)72-310 00 80

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.


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.


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