Länsförsäkringar Hypotek: January – September 2020

"The coronavirus pandemic dominated most of the period and both presented a strain on society and had a major macroeconomic impact. However, the housing market showed considerable resilience and housing prices even rose during the year, despite higher unemployment. This trend was partly due to expectations regarding low interest rates, but also such factors as the unbalanced supply and demand for housing which is likely to continue to have an effect. There is nonetheless continuing uncertainty about the macroeconomic trend going forward, and it cannot be ruled out that there are risks related to housing prices. Länsförsäkringar Hypotek’s mortgage lending operations continued to perform positively and we can report strong operating profit for the period. Lending performed well and we are continuing to capture market shares due to the tremendous work performed locally by the regional insurance companies. Loss allowances remain at very low levels and we can state that credit quality has largely been unaffected by COVID-19”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.


The period in brief:

• Operating profit increased 16% to SEK 1,029 M (889.9) and the return on equity strengthened to 8.4% (7.9).
• Net interest income rose 3% to SEK 1,950 M (1,889).
• Credit losses amounted to SEK 1.9 M (–0.8), net, corresponding to a credit loss level of 0.00% (0.00).
• Lending increased 7% to SEK 253.3 billion (236.1).
• The Common Equity Tier 1 capital ratio amounted to 18.3% (18.2*) on 30 September 2020.
  
  Figures in parentheses pertain to the same period in 2019.
  * Pertains to 30 June 2020.

Read more
https://www.lansforsakringar.se/financial-hypotek/


For further information, please contact:

Anders Borgcrantz, President, Länsförsäkringar Hypotek AB,
+46 (0)8-588 412 51, +46 (0)73-964 12 51

Martin Rydin, CFO, 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


This is information that Länsförsäkringar Hypotek AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 23 October 2020.


The Länsförsäkringar Alliance is comprised of 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and life and non-life insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions through Länsförsäkringar Fastighetsförmedling, and financing services such as leasing, instalment payments, and loans through Wasa Kredit.

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