Highlights of Stadshypotek’s Annual Report January–December 2023

JANUARY–DECEMBER 2023 COMPARED WITH JANUARY–DECEMBER 2022
Stadshypotek’s operating profit decreased by SEK 3,589m, or 28%, to SEK 9,298m (12,887). Net interest income fell by SEK 2,767m to SEK 12,212m, (14,979), mainly due to higher funding costs arising from rising market rates, and decreased margins for Swedish and Norwegian private loans. In Sweden, net interest income fell by SEK 2,020m, while in the Norwegian branch it fell by SEK 164m.
   Of the net interest income, SEK 688m (852) was attributable to the branch in Norway and SEK 469m (557) to the branch in Finland. Exclud- ing the divested Danish branch and the Finnish disposal group, net interest income decreased by SEK 2,184m to SEK 11,726m (13,910). Net gains/losses on financial transactions increased by SEK 702m to SEK 690m (-12). Other income fell by SEK 1,189m, with the amount attributable in its entirety to capital gains relating to the divestment of Stadshypotek’s Danish branch in 2022.
   Expenses rose by SEK 365m to SEK -2,400m (-2,035). This increase was mainly attributable to an increase in the compensation paid to the parent company for services rendered on behalf of Stadshypotek in the Bank’s branches, relating to the sale and administration of mortgage loans.
   Net credit losses totalled SEK -95m (-63). The credit loss ratio corre- sponded to 0.01% (0.00) of lending.

LENDING
Compared to the close of the corresponding period during the previous year, loans to the public increased by 1%, or SEK 15bn, and stood at SEK 1,581bn (1,566). In Sweden, loans to the public increased by 1%, or SEK 19bn, to SEK 1,395bn (1,376).

 
FUNDING
Issues of covered bonds in Swedish kronor totalled SEK 143.8bn (120.7) during the period. During the period, a nominal volume totalling SEK 89.8bn (89.2) matured or was repurchased. The carrying amount of out- standing Swedish kronor bonds was SEK 619.6bn (544.3) at the end of the period.
    Issues of foreign currency bonds under the EMTCN programme totalled EUR 1.0bn (1.0). The outstanding volumes at the end of the period were nominally EUR 8.7bn (8.9) and GBP - bn (0.7).
   The outstanding volume in the US programme totalled USD - bn (-) at the end of the period. Issues in NOK totalled NOK 8.0bn (-). The outstand- ing volume at the end of the period totalled NOK 27.0bn (24.0).

 
CAPITAL ADEQUACY
The total capital ratio according to CRR 575/2013 was 16.6% (18.5) while the common equity tier 1 ratio was 11.6% (12.9). Further information Further information on capital adequacy is provided in note 19, Capital adequacy.

 
RATINGS
Stadshypotek’s ratings remained unchanged during the entire period.

 
OTHER
During the second quarter of 2023, Handelsbanken entered into an agreement to divest parts of the Finnish operations, pending the custom- ary approvals from the relevant authorities. Stadshypotek’s Finnish branch is included in the agreement. The transaction is expected to be completed during the second half of 2024.

 
Stockholm February 7 2024

 
Cecilia Hasselbo
Chief Executive Stadshypotek AB

This information is of the type that Stadshypotek is obliged to make public pursuant to the Swedish Securities Markets Act. The information was submitted for publication through the agency of the contact person set out above, at 11:00 a.m. CET on 7 February 2024.

For more information about Stadshypotek please go to Handelsbanken.com.

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