Highlights of Stadshypotek’s Annual Report 2020

JANUARY – DECEMBER 2020 COMPARED WITH JANUARY – DECEMBER 2019
Stadshypotek’s operating profit increased by SEK 422m, or 3%, to SEK 12,841m (12,419). Net interest income grew by SEK 643m to SEK 14,640m (13,997), mainly due to higher lending volumes to the private and corporate markets in Sweden.

Of the net interest income, SEK 924m (801) was attributable to the branch in Norway, SEK 476m (439) to the branch in Finland and SEK 517m (524) to the branch in Denmark. Excluding the branches, net interest income increased by SEK 490m (289). Net gains/losses on financial transactions increased by SEK 1m to SEK 68m (67).

Expenses rose by SEK 207m to SEK -1,831m (-1,624). This increase was mainly attributable to an increase in the compensation paid to the parent company for the services performed by the branch office operations on behalf of Stadshypotek in relation to the sale and administration of mortgage loans, an increase driven primarily by higher business volumes.

Net credit losses totalled SEK -9 million (9). This amount includes expert-based calculations that take into account the effects of Covid-19, and entail an additional provision requirement of SEK -23 million. The credit loss ratio remained unchanged, at 0.00 per cent of lending (0.00).

LENDING
Loans to the public increased by 5%, or SEK 66bn, and stood at SEK 1,439bn (1,373). In Sweden, loans to the public increased by 6%, or SEK 65bn, to SEK 1,240bn (1,175).

FUNDING
Issues of Stadshypotek’s benchmark programme¹ loans in Swedish kronor totalled SEK 101.6bn (125.3) during the period, and a nominal volume totalling SEK 93.9bn (95.9) matured or was repurchased. The carrying amount of outstanding Swedish kronor bonds was SEK 475.2bn (471.1) at the end of the period.

Issues of bonds under the EMTCN programme totalled EUR 1.0bn (1.3). The outstanding volumes in the programme at the end of the period were nominally EUR 10.4bn (10.4) and GBP 0.7bn (0.7).

The outstanding volume in the US programme totalled USD 1.3bn (2.3) at the end of the period. Issues in NOK totalled NOK 6.0bn (5.0). The outstanding volume at the end of the period totalled NOK 25.5bn (24.0).

CAPITAL ADEQUACY
The total capital ratio according to CRD IV was 20.7% (21.3) while the common equity tier 1 ratio calculated according to CRD IV was 13.1% (13.4). Further information on capital adequacy is provided in note 18, Capital adequacy, on page 29.

RATING
Stadshypotek's ratings was unchanged during the entire period.

Stockholm, 3 Febuary 2021

David Haqvinsson
Chief Executive

This information is of the type that Stadshypotek is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication through the agency of the contact person set out above, at 11,00 CET on 3 February 2021.

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