Stadshypotek’s Interim Report January – June 2015


Stadshypotek’s operating profit increased to SEK 5,384m (4,145). Net interest income rose by SEK 1,041m to SEK 5,868m (4,827). Of the net interest income, SEK 470m (517) was attributable to the branch in Norway, SEK 211m (186) to the branch in Finland and SEK 130m (103) to the branch in Denmark. Excluding the branches, net interest income increased by SEK 1,036m. This increase was mainly due to higher lending volumes and lower funding costs. The decrease in net interest income at the Norwegian branch was attributable to lower margins for both the private market and corporate markets, although this was offset slightly by an increase in lending volumes. The increase in net interest income at the Finnish branch can mainly be explained by higher lending volumes to the corporate market, while at the Danish branch it was mainly due to an increase in lending volumes to the private market. Currency effects also caused branches’ net interest income to increase by SEK 14m. Net gains/losses on financial transactions decreased to SEK 59m (82).

Expenses decreased by SEK 213m to SEK -544m (-757). This was mainly due to a reduction in the compensation paid to the parent company for the services performed by the branch operations on behalf of Stadshypotek in relation to the sale and administration of mortgage loans. The decrease was due to further enhancements of IT systems and processes in the Swedish regional bank operations.

Net loan losses totalled SEK 3m (-4) as recovered loan losses exceeded new loan losses.


Loans to the public increased by 5%, or SEK 52bn, compared to the end of the corresponding period in the previous year, and stood at SEK 1,047bn (995). In Sweden, loans to the public increased by 5%, or SEK 39bn, to SEK 902bn (863). Lending to the private market in Sweden increased by 6%, or SEK 36bn, to SEK 597bn (561).

The credit quality of lending operations remains very good. The volume of impaired loans, before deduction of the provision for probable loan losses, decreased by SEK 101m and amounted to SEK 146m (247). Of this amount, non-performing loans accounted for SEK 102m (195), while SEK 44m (52) related to loans on which the borrowers pay interest and amortisation, but which are nevertheless considered impaired. There were also non-performing loans of SEK 509m (708) that are not classed as being impaired loans. After deductions for specific provisions totalling SEK -35m (-34) and collective provisions of SEK -4m (-4) for probable loan losses, impaired loans totalled SEK 107m (209).


Issues made under Stadshypotek’s Swedish covered bonds programme totalled SEK 50.8bn (41.6) for the first six months of the year. A nominal volume totalling SEK 26.2bn matured and SEK 24.8bn was repurchased. In Norway, bonds to the value of NOK 1.5bn (4.0) were issued. Issues made under the US 144A programme totalled USD 1bn (0). During the first six months of the year, EUR 1.25bn, CHF 80m and NOK 3bn matured.


The total capital ratio according to CRD IV was 66.7% (60.9) while the common equity tier 1 ratio calculated according to CRD IV was 39.0% (36.9). Further information on capital adequacy is provided in the ‘Capital base and capital requirement’ section on page 21.


Stadshypotek’s 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, 21 July 2015

Ulrica Stolt Kirkegaard
Chief Executive

Stadshypotek discloses the information provided herein pursuant to the Securities Markets Act. Submitted for publication on 21 July 2015, at 11.00 CET.