Highlights of Stadshypotek’s Annual Report January – December 2012


Full year 2012 compared with full year 2011
Operating profit increased by SEK 1,892 million to SEK 7,886 million (5,994). Net interest income amounted to SEK 8,052 million (6,244), with the branch in Norway accounting for SEK 649 million (396), the branch in Denmark for SEK 115 million (89) and the branch in Finland, which was established on 1 May 2011, for SEK 258 million (79). Excluding the branches, net interest income thus increased by SEK 1,350 million. The growth in net interest income was attributable to an increase in lending volume and to improved margins due to the company’s good position in the funding market. Net gains/losses on financial items at fair value amounted to SEK 150 million (19).

Expenses rose by SEK 19 million to SEK 288 million (269). This increase was primarily due to IT expenses related to the branch in Finland, and to services purchased from the parent company. Net loan losses totalled SEK 21 million. In 2011, recoveries exceeded new loan losses and totalled SEK 12 million net. Before deduction of the provision for probable loan losses, the volume of impaired loans was  SEK 141 million (110). SEK 94 million (57) of the impaired loans were non-performing loans, while  SEK 47 million (53) were loans on which the borrowers pay interest and amortisation, but which are nevertheless regarded as impaired. There were also non-performing loans of SEK 1,008 million (906) that are not classed as being impaired loans. After deduction for specific provisions totalling  SEK -50 million (-44) and collective provisions of SEK -4 million (-6) for probable loan losses, impaired  loans totalled SEK 87 million (60).

Q4 2012 compared with Q3 2012
Stadshypotek’s operating profit increased by SEK 132 million to SEK 2,071 million (1,939). Net interest income grew by SEK 207 million to SEK 2,161 million (1,954). SEK 208 million (161) of the net interest income was attributable to the branch in Norway, SEK 33 million (31) to the branch in Denmark and SEK 82 million (69) to the branch in Finland.Excluding the branches, net interest income increased by SEK 145 million. Net gains/losses on financial items at fair value amounted to SEK 22 million (53). Expenses grew by SEK 34 million to SEK 95 million (61), mainly due to an increase of SEK 27 million in administrative expenses. The increase was chiefly attributable to services purchased from the parent company, expenses related to the updating of existing international loan programmes, and IT expenses.


Loans to the public increased by around 6 per cent, or SEK 47 billion, from the end of the previous year, and stood at SEK 891 billion (844).On 1 September, Stadshypotek’s branch in Finland acquired a mortgage loan portfolio of around EUR 0.5 billion from the parent company’s branch in Finland, which corresponds to approximately SEK 4 billion of the increase in lending during the year.


Issues of covered bonds from Stadshypotek's benchmark series during the year totalled SEK 90.0 billion (102.8). Issues of covered bonds under the EMTCN programme totalled the equivalent of approximately EUR 3.9 billion (4.1), and under the American programme, an issue of USD 1.5 billion was carried out.During the year, Stadshypotek issued covered bonds on the Norwegian market for the first time.
In total, NOK 8.8 billion was issued in 2012. Also carried out during the year were Stadshypotek’s first issues of covered bonds on the Australian market, totalling AUD 0.75 billion.


The capital ratio according to Basel II was 56.9 per cent (58.1), while the tier 1 ratio calculated according to Basel II was 40.6 per cent (40.5).Further information on capital adequacy is provided in the ‘Capital base and capital requirement’ section on page 15.


Stadshypotek’s rating remained unchanged during the year, with a stable outlook.  

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

Stockholm, 6 February 2013

Per Beckman
Chief Executive

Stadshypotek discloses the information provided herein pursuant to the Securities Markets Act. Submitted for publication on 6 February 2013, at 11.00 CET.

For more information about Stadshyotek, please go to: www.stadshypotek.se