Highlights of Stadshypotek’s Annual Report for January – December 2012


Stadshypotek’s operating profit increased by 3 per cent or SEK 210 million to SEK 8,096 million (7,886). Net interest income grew by SEK 1,379 million to SEK 9,431 million (8,052). The increase in lending volume and improved margins both contributed to the growth in net interest income. SEK 1,003 million (649) of the net interest income was attributable to the branch in Norway, SEK 329 million (258) to the branch in Finland and SEK 166 million (115) to the branch in Denmark. The increase in net interest income at the Norwegian branch was mainly due to higher margins. Excluding the branches, net interest income increased by SEK 903 million. Net gains/losses on financial transactions decreased to SEK 70 million (150).

Expenses rose by SEK 1,090 million to SEK 1,378 million (288). The increase was mainly due to sales compensation to the parent company. Stadshypotek’s branches outside Sweden already make payments to Handelsbanken’s branches in the respective countries for services rendered by them on behalf of Stadshypotek. As of 1 January 2013, the parent company is also compensated for the services performed by the branch office operations on behalf of Stadshypotek in relation to the sale and administration of mortgage loans in Sweden. In addition, staff costs increased by SEK 30 million, primarily due to the fact that all property valuers in Sweden at the parent company Handelsbanken were reorganised under Stadshypotek with effect from 1 January 2013. 

Net loan losses totalled SEK 22 million (21). Before deduction of the provision for probable loan losses, the volume of impaired loans was SEK 283 million (141). Of this amount, non-performing loans accounted for SEK 227 million (94), while SEK 56 million (47) related to loans on which the borrowers pay interest and amortisation, but which are nevertheless considered impaired. There were also non-performing loans of SEK 833 million (1,008) that are not classed as being impaired loans. After deductions for specific provisions totalling SEK -48 million (-50) and collective provisions of SEK -5 million (-4) for probable loan losses, impaired loans totalled SEK 230 million (87). 


Lending to the public increased by 7 per cent, or SEK 64 billion, to SEK 955 billion (891). In Sweden, loans to the public increased by 7 per cent, or SEK 53 billion to SEK 834 billion (781). Lending to the private market in Sweden increased by 5 per cent, or SEK 28 billion, to SEK 546 billion (518).


Issues of covered bonds from Stadshypotek’s benchmark series totalled SEK 119.1 billion (90.0). Issues of covered bonds under the EMTCN programme totalled the equivalent of approximately EUR 5.4 billion (3.9), and under the American programme, an issue of USD 1.25 billion was carried out. In Norway, bonds to the value of NOK 4 billion were issued during the year.


The capital ratio according to Basel II was 62.3 per cent (56.9) while the tier 1 ratio calculated according to Basel II was 41.2 per cent (40.6). Further information on capital adequacy is provided in the ’Capital base and capital requirement’ section on page 20.


Stadshypotek’s ratings remained unchanged during the year.

Stadshypotek Covered bonds Long-term Short-term
Moody’s Aaa - P-1
Standard & Poor’s   AA- A-1+
Fitch AA- F1+

Stockholm, 5 February 2014

Per Beckman
Chief Executive

Stadshypotek discloses the information provided herein pursuant to the Securities Markets Act.
Submitted for publication on 5 February 2014, at 11.00 CET.