Landshypotek Bank posts historically strong growth

“Landshypotek is growing in terms of customers and volumes at an unprecedented pace. The conscious and gradual focus on more customer groups has boosted the bank’s lending growth and improved earnings,” says Per Lindblad, CEO of Landshypotek Bank.

With lending growth of SEK 5.6 billion, the first six months was the strongest in Landshypotek’s history. Net interest income amounted to SEK 472 million (421) and costs developed to plan. As a result, operating profit for the first six months totalled SEK 219 million (175).

And the bank’s healthy growth continues in the form of first lien mortgage loans to farmers and foresters and homeowner mortgages. Within Landshypotek’s core areas – first lien mortgage loans to farming and forestry customers – the bank increased lending SEK 1.9 billion to a total lending volume of SEK 73.6 billion. This represents higher growth than in recent years, but was in line with market growth.

Within homeowner mortgages, the bank grew lending SEK 3.7 billion and surpassed SEK 15 billion in lending volume. The bank’s total lending amounted to SEK 88.6 billion. 

Strong trend for Sweden’s farming
“There are many positives for farmers and foresters, with rising interest in locally produced food, the countryside, and forest-related products and services in society. Moreover, low interest rates reduce financial costs and increase willingness to invest in agriculture. At the same time, spring sowing was delayed for many farmers and it remains to be seen how crops develop. In forestry, concerns exist for how more policy proposals could impact the industry,” says Per Lindblad.

More information is available in the interim report regarding the results as well as influences in our operating environment, in the financial markets, and farming and forestry. 

The full report is attached.

Summary of the interim report

January – June 2021
compared with January – June 2020
• Operating profit amounted to SEK 219 million (175).
• The underlying operating profit, excluding the net result
of financial transactions, was SEK 227 million (183).
• Net interest income amounted to SEK 472 million (421).
• Costs totalled SEK 251 million (244).
• Net credit losses positively impacted earnings by SEK 2 million (positive: 4).
• Loans to the public amounted to SEK 88.6 billion (78.2).
• Deposits from the public amounted to SEK 14.9 billion (14.6).

April – June 2021
compared with January – March 2021
• Operating profit amounted to SEK 103 million (116).
• The underlying operating profit, excluding the net result
of financial transactions, was SEK 111 million (116).
• Net interest income amounted to SEK 239 million (233).
• Costs totalled SEK 129 million (122).
• Net credit losses negatively impacted earnings by SEK 2 million (positive: 4).
• Loans to the public amounted to SEK 88.6 billion (85.8).
• Deposits from the public amounted to SEK 14.9 billion (14.7).

Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 22 July at 8:00 a.m. (CEST).

For more information, please contact:
Jonas Feinberg, Press Officer, jonas.feinberg@landshypotek.se, +46 70 349 24 10

About Landshypotek Bank
Landshypotek Bank was founded in 1836 and is one of the ten largest lending banks in Sweden. The bank is deemed systemically important for the farming and forestry industries. Historically, lending has focused on customers for farming and forestry, but now also includes homeowner mortgages and savings. Landshypotek Bank is owned by some 37,000 farming and forestry customers, who are organised as a cooperative association. The bank has almost 200 employees located at branches across Sweden.