Stadshypotek Interim Report January – June 2020
JANUARY – JUNE 2020 COMPARED WITH JANUARY – JUNE 2019
Stadshypotek’s operating profit rose by SEK 77m, or 1%, to SEK 6,329m. (6,252). Net interest income grew by SEK 337m to SEK 7,276m (6,939). This is mainly due to higher lending volumes to the private and corporate markets in Sweden.
Of the net interest income, SEK 404m (424) was attributable to the branch in Norway, SEK 250m (226) to the branch in Finland and SEK 275m (267) to the branch in Denmark. Excluding the branches, net interest income increased by SEK 325m (99). Net gains/losses on financial transactions increased by SEK 3m to SEK 19m (16).
Expenses increased by SEK 190m to SEK -900m (-710). 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 administration and sale of mortgage loans, which is driven chiefly by an increase in business volumes.
Net credit losses totalled SEK ‑53m (21). The credit loss ratio amounted to 0.01% of lending (0.00).
Compared with the end of the corresponding period of the previous year, loans to the public increased by 5%, or SEK 64bn, to SEK 1,406bn (1,342). In Sweden, loans to the public increased by 5%, or SEK 61bn, to SEK 1,207bn (1,146).
Issues of Stadshypotek’s benchmark programme loans in Swedish kronor reached a nominal volume of SEK 66.7bn (78.6) during the period, and a nominal volume totalling SEK 82.9bn (42.4) matured or was repurchased. The carrying amount of the outstanding Swedish kronor bonds was SEK 485.8bn (479.3) at the end of the period.
No bonds were issued under the EMTCN programme during the period (EUR 1.2bn). The nominal outstanding volumes in the programme at the end of the period were EUR 10.4bn (10.4) and GBP 0.7bn (0.7).
The outstanding volume in the US programme totalled USD 1.3bn (3.8) at the end of the period. An issue in NOK was made for the nominal amount of NOK 6.0bn (5.0). The outstanding volume at the end of the period was NOK 25.5bn (23.5).
The total capital ratio according to CRD IV was 21.1% (21.2), while the common equity tier 1 ratio calculated according to CRD IV was 13.4% (13.2). Further information on capital adequacy is provided in note 18, Capital adequacy, on page 28.
Stadshypotek's ratings was unchanged during the entire period.
|Standard & Poor’s||AA-||A-1+|
EFFECTS OF COVID-19
Uncertainty in financial markets and throughout the economy in general have had a limited impact on Stadshypotek AB. The option to apply for a temporary exemption from amortisation, initiated by the Swedish Financial Supervisory Authority and applying until August 2021, has been taken up by some customers. In accordance with IFRS 9, an extra provision of SEK 77m was made in Q1 to cover the expected credit losses due to the Covid-19 pandemic.
Stockholm, 15 July 2020
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 15 July 2020.