Landshypotek’s members get refund of 3 percent

Landshypotek ekonomisk förening (incorporated association) reports an operating result of MSEK –2.1 (157.1). Despite the loss, most of it which can be explained by the phasing-out of the large credit exposure in Energisystem, the Board of Directors proposes that the members get a refund in the amount of MSEK 42.4, which is equivalent to 3 percent of regular loan interest paid. During 2005 the Group increased its lending by 3.3 percent to MSEK 35 954. Net interest income amounted to MSEK 368 (392) and operating expenses were MSEK 227 (198). The capital adequacy ratio amounted to 9.84 (10.48) percent and the core capital ratio to 8.53 (9.00) percent. – After a few years of internal improvement programs and investments, we have begun to reap the fruits of our efforts; The increase in volume in Landshypotek AB has never been higher than in 2005. We had an increase in volume of 5 percent. Obviously, the Landshypotek Group is greatly impacted by the one-time costs associated with our subsidiary Lantbrukskredit phasing out the credit exposure in Energisystem. In spite of this, the Group’s financial position is so strong that the members get a refund equivalent to 3 percent of regular loan interest paid, says Kjell Stillman, Managing Director. – Efforts expended on building both systems and competence for BASEL II, covered bonds, new accounting rules (IFRS) and an entirely new IT platform for handling lending to our customers, have resulted in substantially higher cost. We are expecting these efforts to give us advantages in the years to come. The market continues to be competitive. A growing number of banks are giving priority to first mortgage lending, which leads to pressure on margins, concludes Kjell Stillman. The complete Swedish annual report will be available during the week of 27 March and the English annual report will be available during the week of 24 April. The annual report can be requested by telephone, +46-8-459 04 00, or via info@landshypotek.se. The Swedish annual report will be available on our website www.landshypotek.se during the week of 13 March. The English annual report will be available on our website during the week of 10 April.