Highlights of Stadshypotek’s Annual Report January – December 2014


Stadshypotek’s operating profit increased by 8 per cent or SEK 645 million to SEK 8,741 million (8,096). Net interest income grew by SEK 809 million to SEK 10,240 million (9,431). SEK 1,014 million (1,003) of the net interest income was attributable to the branch in Norway, SEK 398 million (329) to the branch in Finland and SEK 221 million (166) to the branch in Denmark. Excluding the branches, net interest income increased by SEK 674 million, due to higher lending volumes and improved margins, mainly for the private market, but also for the corporate market. The increase in net interest income at the Norwegian branch was attributable to higher lending volumes to both the private and corporate markets, although these advances were offset by lower margins and a negative currency effect. The increase in net interest income at the Finnish branch can mainly be explained by higher lending volumes to the corporate market, while at the Danish branch it was mainly due to an increase in lending volumes to the private market. Net gains/losses on financial transactions decreased to SEK 7 million (70).

Costs increased by SEK -143 million to SEK -1,521 million (-1,378). This increase was mainly due to a higher level of sales 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.

Net loan losses totalled SEK 22 million (-22) as recovered loan losses exceeded new loan losses.


Loans to the public increased by 7 per cent, or SEK 64 billion, to SEK 1,019 billion (955). In Sweden, loans to the public increased by 5 per cent, or SEK 45 billion, to SEK 879 billion (834). Loans to the private market in Sweden increased by 6 per cent, or SEK 31 billion, to SEK 577 billion (546).

The credit quality of our lending operations remains very good. Before deduction of the provision for probable loan losses, the volume of impaired loans was SEK 175 million (283). Of this amount, non-performing loans accounted for SEK 128 million (227), while SEK 47 million (56) 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 607 million (833) that are not classed as being impaired loans. After deductions for specific provisions totalling SEK -43 million (-48) and collective provisions of SEK -4 million (-5) for probable loan losses, impaired loans totalled SEK 128 million (230).


Issues made under Stadshypotek’s Swedish covered bond programme totalled SEK 111.1 billion (119.1). During the year, a nominal volume totalling SEK 20.1 billion matured and SEK 90.4 billion was repurchased. In Norway, bonds to the value of NOK 6.7 billion (4.0) were issued during the year. Issues of covered bonds under the EMTCN programme totalled EUR 2.8 billion (5.4). During the year, EUR 1.5 billion, CHF 0.1 billion and SEK 12.1 billion matured.


The total capital ratio according to CRD IV was 67.1 per cent (62.3) while the Tier 1 ratio calculated according to CRD IV was 42.4 per cent (41.0). Further information on capital adequacy is provided in the ‘Own funds and capital requirement’ section on page 22.

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

Stockholm, 4 February 2015

Ulrica Stolt Kirkegaard
Chief Executive

Stadshypotek discloses the information provided herein pursuant to the Securities Markets Act.
Submitted for publication on 4 February 2015, at 11.00 CET.