Stadshypotek Interim Report January – June 2022

JANUARY – JUNE 2022 COMPARED WITH JANUARY – JUNE 2021

Stadshypotek’s operating profit decreased by SEK 595m, or 9%, toSEK 5,921m (6,516). Net interest income fell by SEK 231m to SEK 7,587m (7,818), mainly due to higher borrowing costs that stemmed from rising market rates. In Sweden, net interest income decreased by SEK 187m, while in the Norwegian branch net interest income decreased by SEK 68m, as customers are contractually entitled to a notification of a change in their interest rate 90 days in advance.

Of the net interest income, SEK 487m (555) was attributable to the branch in Norway, SEK 304m (283) to the branch in Finland and SEK 263m (260) to the branch in Denmark. Excluding the international branches, net interest income decreased by SEK 187m (+135). Net gains/losses on financial transactions decreased by SEK 62m to SEK -31m (31).

Expenses rose by SEK 30m to SEK -1,002m (-972). This was mainly attributable to an increase in the 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, which was driven primarily by higher business volumes.

Net credit losses totalled SEK -43m (6) mainly due to an increased provision for Stage 1 and Stage 2. This amount includes expert-based calculations that take into account the geopolitical landscape, which resulted in an additional provision requirement of SEK 45m. The credit loss ratio corresponded to 0.01% (0.00) of lending. The risk tax introduced on 1 January 2022 had a SEK 160m negative impact on profit for the year. The resolution fee increased by SEK 53m.

LENDING

Compared to the close of the corresponding period during the previous year, loans to the public increased by 6%, or SEK 88bn, and stood at SEK 1,571bn (1,483). In Sweden, loans to the public increased by 5%, or SEK 66bn, to SEK 1,337bn (1,271).

FUNDING

Issues of Stadshypotek’s benchmark programme1 loans in Swedish ­kronor totalled SEK 63.7bn (54.0) during the period. During the period, a nominal volume totalling SEK 32.9bn (51.0) matured or was repurchased. The carrying amount of outstanding Swedish kronor bonds was SEK 535.1bn (481.9) at the end of the period.

Issues of commercial paper in Swedish kronor during the period amounted to a nominal amount of SEK 6.0bn (-), and the outstanding volume at the end of the period was SEK 6.0bn (-).

Issues of foreign currency bonds under the EMTCN programme totalled EUR – bn (-). The outstanding volumes at the end of the period were nominally EUR 7.8bn (9.2) and GBP 0.7bn (0.7).

The outstanding volume in the US programme totalled USD – bn (1.3) at the end of the period. Issues in NOK totalled NOK – bn (8.0). The outstanding volume at the end of the period totalled NOK 24.0bn (29.0).

CAPITAL ADEQUACY

The total capital ratio according to CRD IV was 18.4% (19.0) while the common equity tier 1 ratio calculated according to CRD IV was 12.7% (13.0). ­Further information on capital adequacy is provided in note 19, Capital adequacy, on page 29.

RATINGS

Stadshypotek’s ratings remained unchanged during the entire period.
 

Stockholm, 15 July 2022

David Haqvinsson

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 15 July 2022.

Tags: