Stadshypotek Interim Report January–June 2019

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Stadshypotek’s operating profit rose by SEK 29m (406), or 0% (7), to SEK 6,252m (6,223). Net interest income grew by SEK 98m (464) to SEK 6,939m (6,841). This is mainly due to higher lending volumes to the private and corporate markets in Sweden.

Of the net interest income, SEK 424m (465) was attributable to the branch in Norway, SEK 226m (211) to the branch in Finland and SEK 267m (242) to the branch in Denmark. Excluding the branches, net interest income increased by SEK 99m (296). Net gains/losses on financial transactions increased by SEK 21m to SEK 16m (-5).

Expenses increased by SEK 124m (31) to SEK -710m (-586). 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.

Credit losses led to net recoveries of SEK 21m (-14). The credit loss ratio remained unchanged at 0.00% of lending (0.00).

Compared with the end of the corresponding period of the previous year, loans to the public increased by 5% (8), or SEK 69bn (90), to SEK 1,342bn (1,273). In Sweden, loans to the public increased by 6% (7), or SEK 62bn (67), to SEK 1,146bn (1,084).

Issues of Stadshypotek’s benchmark programme loans in Swedish kronor reached a nominal volume of SEK 78.6bn (71.3) during the period. A nominal volume totalling SEK 42.4bn (76.6) matured or was repurchased during the period. The carrying amount of the outstanding Swedish kronor bonds was SEK 479.3bn (450.2) at the end of the period.

Issues of bonds under the EMTCN programme totalled EUR 1.25bn (0.2) and GBP 0bn (0.7). The nominal outstanding volume in the programme at the end of the period was EUR 10.4bn (9.8). There were no outstanding volumes in the European commercial paper programme at the end of the period.

No issues were made in USD or AUD during the period. The outstanding volume in the US programme totalled USD 3.8bn (3.8) at the end of the period. There is no longer any outstanding volume in AUD. The Norwegian kroner issue was a nominal amount of NOK 5bn (5). The outstanding volume at the end of the period was NOK 24bn (24).

The total capital ratio according to CRD IV was 21.2% (52.8), while the common equity tier 1 ratio calculated according to CRD IV was 13.2% (31.3).

The rating was unchanged during the period.

Stadshypotek        Covered bonds Long-term Short-term
Moody’s Aaa - P-1
Standard & Poor’s AA- A-1+
Fitch AA F1+

Stockholm, 17 July 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 17 July 2019.