Highlights of Stadshypotek’s Annual Report January – December 2018

JANUARY – DECEMBER 2018 COMPARED WITH JANUARY – DECEMBER 2017
Stadshypotek’s operating profit increased by 1%, or SEK 152m, to SEK 12,401m (12,249). Net interest income grew by SEK 331m to SEK 13,688m (13,357), mainly due to higher lending volumes to the private and corporate markets in Sweden. Of the net interest income, SEK 862m (885) was attributable to the branch in Norway, SEK 408m (363) to the branch in Finland and SEK 475m (422) to the branch in Denmark. Net gains/losses on financial transactions decreased by SEK 54m to SEK -12m (42).

Expenses increased by SEK 103m to SEK -1,237m (-1,134). This increase was mainly attributable to an increase in the sales compensation paid to the parent company for the services performed by the branch office operations on behalf of Stadshypotek in relation to administration.

Credit losses totalled SEK -12m (10). The credit loss ratio pursuant to IFRS 9 was 0.00% (0.00% in 2017 under IAS 39).

LENDING 
Compared with the end of the corresponding period of the previous year, loans to the public increased by 6%, or SEK 78bn, to SEK 1,300bn (1,222). In Sweden, loans to the public increased by 6%, or SEK 64bn, to SEK 1,116bn (1,052). Mortgage lending to households in Sweden increased by 5%, or SEK 41bn, to SEK 800bn (759).

FUNDING 
Issues of Stadshypotek’s benchmark programme loans in Swedish kronor totalled SEK 136.4bn (109.8) during the year. During the year, a nominal volume totalling SEK 148.6bn (105.0) matured or was repurchased. The carrying amount of the outstanding Swedish kronor bonds was SEK 440.0bn (452.9) at year-end, including accrued interest.

Issues of Swedish kronor commercial paper totalled SEK 10bn during the year, and the outstanding volume at year-end was the same amount.

Issues of bonds under the EMTCN programme totalled EUR 1.2bn (1.7) and GBP 0.6bn (0.0). The nominal outstanding volume in the programme at year-end was EUR 11.5bn (10.9).

No issues were made in USD or AUD during the year. The outstanding volume in the US programme totalled USD 3.7bn (5.0) at year-end. There is no longer any outstanding volume in AUD.

The Norwegian kroner issue was a nominal amount of NOK 5bn (0). The outstanding volume at year-end was NOK 23.5bn (23.0).

CAPITAL ADEQUACY
The total capital ratio according to CRD IV was 20.8% (53.1), while the common equity tier 1 ratio calculated according to CRD IV was 12.6% (30.7).

RATING 
Stadshypotek's ratings remained unchanged during the year.

Stockholm, 6 February 2019
Maria Lidström Andersson 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 February 6, 2019.

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