Highlights of Stadshypotek’s Annual Report January – December 2019

JANUARY – DECEMBER 2019 COMPARED WITH JANUARY – DECEMBER 2018

Stadshypotek’s operating profit increased by SEK 18m, or 0%, to SEK 12,419m (12,401). Net interest income grew by SEK 309m to SEK 13,997m (13,688), mainly due to higher lending volumes to the private and corporate markets in Sweden.

Of the net interest income, SEK 801m (862) was attributable to the branch in Norway, SEK 439m (408) to the branch in Finland and SEK 524m (475) to the branch in Denmark. Excluding the branches, net interest income increased by SEK 289m (257). Net gains/losses on financial transactions increased by SEK 79m to SEK 67m (-12).

Expenses rose by SEK 387m to -1,624m (-1,237). 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 the sale and administration of mortgage loans.

Net credit losses totalled SEK 9m (-12). The credit loss ratio was unchanged at 0.00% (0.00).

 
LENDING

Loans to the public increased by 6%, or SEK 73bn, compared to the end of the corresponding period in the previous year, and stood at SEK 1,373bn (1,300). In Sweden, loans to the public increased by 5%, or SEK 59bn, to SEK 1,175 (1,116).

 
FUNDING

Issues of Stadshypotek’s benchmark programme loans in Swedish kronor totalled SEK 125.3bn (136.4) during the period. During the period, a nominal volume totalling SEK 95.9bn (148.6) matured or was repurchased. The carrying amount of the outstanding Swedish kronor bonds was SEK 471.0bn (440.0) at the end of the period.

Issues of bonds under the EMTCN programme totalled EUR 1.3bn (1.2) and GBP - bn (0.6). The outstanding volume in the programme at the end of the period was nominally EUR 10.4bn (11.5). There were no outstanding volumes in the European commercial paper programme at the end of the period (SEK 10,0).

No issues were made in USD or AUD during the period. The outstanding volume in the US programme totalled USD 2.3bn (3.7) at the end of the period. There is no longer any outstanding volume in AUD. Issues in NOK totalled NOK 5.0bn (5.0). The outstanding volume at the end of the period totalled NOK 24.0bn (23.5).

 
CAPITAL ADEQUACY

The total capital ratio according to CRD IV was 21.3% (20.8) while the common equity tier 1 ratio calculated according to CRD IV was 13.4% (12.6).

 
RATING

Stadshypotek's ratings was unchanged during the period.

 
Stockholm, 5 February 2020

Göran Stille
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 5 February 2020.