Interim report for the Landshypotek Group January − June 2005

Consolidated operating profit amounted to MSEK 92.2 (26.6), while lending at the end of the period amounted to MSEK 35,247.3 (34,612.6), an increase by 1.8 percent. The phase-out of lending in the subsidiaries has dampened the rate of growth in the Group. The Group’s single largest exposure relates to credits to ESS-gruppen totalling MSEK 620. MSEK 40 has already before been set aside for these credits. The capital adequacy stood at 10.31 percent at the end of the period (10.39) and the core capital ratio was 8.88 percent (8.39). For the period the Group reports loan loss provisions of MSEK 11.5 (74.1). MSEK 115 has previously been set aside for loans to ESS-gruppen. MSEK 75 hereof was reported as realised losses during the period. Marketing efforts in Landshypotek are aimed at three segments – production farms, residential farms and forestry. − We are now beginning to see the effects of a steadfast focus on these segments and that our regional offices are becoming more efficient in their work for our customers. Thanks to favourable lending terms and more active marketing the development of our business was very positive during the past quarter, says Kjell Stillman, Managing Director of Landshypotek The interim report is available upon request by telephone +46-8-459 04 00 or via info@landshypotek.se this week.