Stadshypotek's operating profits went up by SEK 654m to SEK 1,421m (767). As of August 2008, Stadshypotek's

branch in Norway is included and this made a contribution of SEK 103m in the first quarter. Excluding the branch in

Norway, operating profits increased by SEK 551m, mainly because net interest income increased by SEK 510m. Both higher volumes and margins and also the company's healthy position in the funding market contributed to the higher net interest income. Net gains/losses on financial operations grew by SEK 44m to SEK -18m (-62).

 

Expenses were SEK 53m (45). Net loan losses were SEK 5m (11), which corresponds to a loan loss ratio of 0.00% (-0.01) of lending. After deduction of the provision for probable loan losses, the volume of bad debts was SEK 194m (266). SEK 64m (58) of the bad debts were non-performing loans, while SEK 130m (208) were loans on which the borrowers pay interest and amortisation, but which are considered doubtful. In addition, there were non-performing loans of SEK 773m (416) that are not assessed as being bad debts. After deductions for specific provisions totall­ing SEK -69m (-75) and provisions by group of SEK -14m (-) for probable loan losses, bad debts totalled SEK 111m (191).

 

Stadshypotek's operating profits for the first quarter of 2009 went up by SEK 424m to SEK 1,421m (997). SEK 43m of the increase was attributable to the Norwegian branch and excluding this, operating profits went up by SEK 381m.

 

Net interest income was SEK 1,493m (1,164), of which SEK 112m (69) was attributable to the branch in Norway. The underlying increase of SEK 286m is partly due to higher volumes and margins but also to the fact that the company's healthy position in the funding market resulted in low funding costs. The average margin in the private market was 0.66% during the quarter.

 

Net gains/losses on financial operations grew by SEK 75m to SEK -18m (-93). Net gains/losses on financial operations are mainly unrealised changes in market value on assets and ­liabilities subject to hedge accounting and derivatives, which were negatively affected during the fourth quarter of 2008 due to substantially lower market interest rates.

 

Stadshypotek's lending volume continued to increase during the period. Loans to the public increased during the first quarter by SEK 13bn to SEK 629bn (615). Compared with the same period in the previous year, lending volumes increased by SEK 95bn, of which SEK 47bn was attributable to the branch in Norway. Stadshypotek's share of the private market in Sweden was maintained at around 25%. Stadshypotek retained its strong position as a leading player on the Swedish corporate market, with a market share of some 30%. 

 

The capital ratio calculated according to Basel II was 37.7% (40.6) and the Tier 1 capital ratio calculated according to Basel II was 26.2% (28.8). Further information concerning capital adequacy is provided in the 'Capital base and Capital requirement' section.

 

Stadshypotek's rating remained unchanged, with a "stable outlook".

 

	Long-term	Short-term
Moody's	Aa1	P-1
Standard & Poor's	AA-	A-1+
Fitch	AA-	F1+
Covered bonds
Moody's		Aaa

 

 

The accounts comply with the IASB accounting standards adopted by the EU. The regulations of the Annual Accounts Act for Credit Institutions and Securities Companies and the directives issued by the Swedish Financial Supervisory Authority are also applied.

 

The accounting policies are unchanged compared to the latest annual report.

 

 

Stockholm, 28 April 2009

 

Lars Kahnlund

Chief executive