SBAB reports a net operating income of SEK 360 million for the first six months of 2004.

SBAB reports a net operating income of SEK 360 million for the first six months of 2004. The first six months of 2004 have seen SBAB's loan portfolio increase in size. The retail market loan portfolio now amounts to SEK 70.1 billion of which securitised loans make up SEK 15.8 billion, an increase of 22 per cent compared to the corresponding period in 2003 (SEK 57.3 billion of which SEK 16.4 billion were securitised loans). Continued positive development of the net loan losses position has resulted in a net gain of SEK 8 million, a SEK 27 million improvement on the same period in 2003. SBAB continues to perform strongly and posts a good result for the first six months of 2004, though slightly lower than for the first half of the previous year. The result has had to bear higher costs than the corresponding period in the previous year. The net operating income for the first half of 2004 is SEK 360 million (SEK 371 million). Lending SBAB's lending to the retail market has increased in the first half of 2004. New lending for the period amounted to SEK 12 464 million (SEK 7 337 million) and occurs predominantly via the Internet. The total of new lending to the property-company market for the period amounted to SEK 2 472 million (SEK 1 702 million). Loan portfolio and securitised loans, SEK billion June 2004 June 2003 Total of which Total of which securitised securitised loans loans Retail market 70.1 15.8 57.3 16.4 Property-company market 84.8 9.4 95.0 1.0 Total 154.9 25.2 152.3 17.4 Market shares SBAB's share of the retail market continues to increase and is now 8.1 per cent (7.5 per cent). The share of the property-company market is 17.3 per cent (19.2 per cent) giving a total market share of 11.4 per cent (12.0 per cent). Focus on specific customer segments in combination with the discontinuation of unprofitable commitments has lead to a contraction of the property-company market portfolio. Funding Long-term funding amounted to SEK 28 593 million (SEK 24 412 million) for the first half of 2004 of which SEK 15 019 million (SEK 13 090 million) was raised in the international market and SEK 13 574 million (SEK 11 322 million) in the domestic bond market. Short-term debt, defined as short-term on the issue date, totalled SEK 24 841 million (SEK 39 077 million). Expenses Total expenses have increased and amounted to SEK 263 million (SEK 235 million). The increase has been occasioned by larger investments in IT, higher staff costs and increased administration costs amongst other items compared to the corresponding period for 2003. Loan losses and doubtful loan receivables Net loan losses continued to be low and posted a positive result of SEK 8 million, which is an improvement of SEK 27 million over the same period in 2003. Doubtful loan receivables have been reduced since the start of the year from SEK 220 million to SEK 217 million. Collective provisions for individually assessed loan receivables amount to SEK 169 million. Business partners SBAB co-operates with Ikano Bank, Sparbanken Finn and Sparbanken Gripen, Salus Ansvar and ICA Banken. As earlier SBAB's business partners constitute important distribution channels. Prospects for 2004 The result for the full year 2004 is expected to be in line with the result for 2003. Summary for the SBAB Group June 2004 June 2003 Net interest income, SEK million 629 639 Net operating income, SEK million 360 371 Net profit, SEK million 256 267 Loan losses net, SEK million (8) 19 Return on equity, % 1) 10.5 10.4 Capital ratio, % 10.1 10.1 Primary capital ratio, % 8.4 7.9 Equity ratio, % 4.0 3.5 Doubtful loan receivables after specific provisions for individually assessed loan receivables, SEK million 113 230 Income/Expenditure ratio, excluding loan 2.3 2.7 losses Income/Expenditure ratio, including loan 2.4 2.5 losses Rating, long-term debt Standard & Poor's AA- AA- Moody's A1 A1 Rating, short-term debt Standard & Poor's A-1+ A-1+ Moody's P-1 P-1 Lending, SEK million 129 651 134 818 Loans securitised, SEK million 25 212 17 450 Average number of employees for the period 381 381 1) Net profit for the last twelve months in relation to the average equity capital. SBAB's interim report for 1st January - 30th June 2004 is attached (4 pages). Questions will be answered by Eva Cederbalk, Chief Executive Officer, tel +46 8 614 4301 or +46 70 523 23 02 Annelise Jansson, Chief Communication Officer, tel +46 8 614 4355 or +46 70 637 12 72 SBAB, the independent home loans company, contributes efficiently and profitably to competition and choice in the Swedish housing mortgage market. We are the foremost challenger in the housing market, with approximately 10 000 customers and a market share of 17.3 per cent in the property-company market and with around 240 000 customers and a market share of 8.1 per cent in the retail market. SBAB offers loans via Internet and telephone. Around 65 per cent of our retail customers apply for loans via Internet, which helps SBAB to offer one of the lowest interest rates for housing loans in the market. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/08/26/20040826BIT21590/wkr0001.pdf The full report