Stadshypotek’s Interim Report January – June 2016
JANUARY – JUNE 2016 COMPARED WITH JANUARY – JUNE 2015
Stadshypotek’s operating profit increased by 3%, or SEK 166m, to SEK 5,550m (5,384). Net interest income rose by SEK 166m to SEK 6,034m (5,868). Of the net interest income, SEK 299m (470) was attributable to the branch in Norway, SEK 191m (211) to the branch in Finland and SEK 160m (130) to the branch in Denmark. Excluding the branches, net interest income increased by SEK 327m, mainly due to higher lending volumes to the private market. The decrease in net interest income at the Norwegian branch was attributable to lower margins for both the private and corporate markets, although this was offset slightly by an increase in lending volumes. The decrease in net interest income at the Finnish branch can be explained by lower margins, while net interest income rose at the Danish branch, due to an increase in lending volumes to the private market. Net gains/losses on financial transactions decreased to SEK 43m (59).
Expenses decreased by SEK 26m to SEK -518m (-544), mainly due to a lower level of sales compensation paid to the parent company for the services performed by the branch operations on behalf of Stadshypotek in relation to the sale and administration of mortgage loans.
Net loan losses totalled SEK 5m (3) as recovered loan losses exceeded new loan losses.
Compared to the end of the corresponding period for the previous year, loans to the public increased by 7%, or SEK 71bn, to SEK 1,118bn (1,047). In Sweden, loans to the public increased by 6%, or SEK 58bn, to SEK 960bn (902). Loans to the private market in Sweden increased by 9%, or SEK 54bn, to SEK 651bn (597).
The credit quality of lending operations remains very good. Impaired loans, before deduction of the provision for probable loan losses, decreased by SEK 50m and totalled SEK 96m (146). Of this amount, non-performing loans accounted for SEK 50m (102), while SEK 46m (44) related to loans on which the borrowers pay interest and amortisation, but which are nevertheless considered impaired. There were also nonperforming loans of SEK 305m (509) that are not classed as being impaired loans. After deductions for specific provisions totalling SEK -24m (-35) and collective provisions of SEK -3m (-4) for probable loan losses, impaired loans totalled SEK 69m (107).
Issues made under Stadshypotek’s Swedish covered bond programme totalled SEK 61.5bn (50.8) for the first six months of the year. A nominal volume totalling SEK 30.8bn matured or was repurchased. In Norway, bonds to the value of NOK 10bn (1.5) were issued during the period. In addition, bonds to the value of EUR 2.25bn (1.25) were issued, while bonds to the value of EUR 1.5bn and GBP 350m matured.
The total capital ratio according to CRD IV was 69.4% (66.7) while the common equity tier 1 ratio calculated according to CRD IV was 38.3% (39.0). Further information on capital adequacy is provided in the ‘Own funds and capital requirement’ section on page 21.
During the period, Fitch upgraded Stadshypotek’s long-term rating from AA- to AA. All other ratings remained unchanged during the period.
|Standard & Poor’s||AA-||A-1+|
Stockholm, 15 July 2016
Ulrica Stolt Kirkegaard
This information is of the type that Stadshypotek is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication through the agency of the contact person set out above, at 11.00 CET on 15 July 2016.