Länsförsäkringar Hypotek: Year-end report 2018

”Our strategy of strong local presence together with leading digital services continues to be successful and we can see that customers appreciate our mortgage offering. This can be seen particularly in terms of customer satisfaction where Länsförsäkringar has the most satisfied retail mortgage customers according to the 2018 Swedish Quality Index. The number of customers is continuing to grow and market shares are gradually increasing as we further strengthen our position in the mortgage market. Länsförsäkringar Hypotek continued to perform well and we delivered strong operating profit for the year. Lending growth is stable, while credit quality remains high and credit losses very low. The Swedish economy remained buoyant and household finances are favourable despite some macroeconomic risks becoming more tangible over the year. The housing market was again a focal point and based on the price trend we can summarise the year as relatively stable.”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.

The year in brief:

• Operating profit increased 33% to SEK 1,084 M (813.0) and the return on equity increased to 7.7% (6.9).
• Net interest income increased 16% to SEK 2,434 M (2,101).
• Credit losses amounted to SEK –1.3 M (0.0), net, corresponding to a credit loss level of –0.00% (0.00).
• Lending increased 12% to SEK 221.1 billion (197.7).
• The Common Equity Tier 1 capital ratio amounted to 18.3% (54.5*) on 31 December 2018.
• The number of customers rose 7% to 274,000 (255,000).
• According to the 2018 Swedish Quality Index customer satisfaction survey, Länsförsäkringar is the player on the market with the most satisfied retail mortgage customers.
  
  

Figures in parentheses pertain to the same period in 2017.

* Pertains to 30 September 2018. As of 31 December 2018, the application of the risk weight floor for Swedish mortgages will change, which consequently reduces the capital ratios for the current period.

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

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

Tags: