Landshypotek Bank’s Year-end report January – December 2020: Healthy lending growth in the autumn strengthens earnings for the year

In the autumn, growth in Landshypotek’s lending to farming and forestry was better than it has been for many years and, moreover, mortgage volumes have posted record growth. The operating profit excluding the net result of financial transactions amounted to SEK 414 million (420).

“Through healthy growth in the market during uncertain times for customers, we have demonstrated our strength during this unusual year. Following a cautious start to the year, our lending grew vigorously through the autumn. This shows our capacity and potential within lending for farming and housing,” says Per Lindblad, CEO of Landshypotek Bank.

Following a spring of limited growth in the credit market, the bank’s volume growth accelerated during the summer before increasing even faster during the autumn. In the last months of the year, the bank’s lending records to mortgage customers were surpassed. By the third quarter, the bank had already passed a total mortgage volume of more than SEK 10 billion, before ending the year at SEK 11.5 billion, up SEK 4.4 billion for the year. Farming and forestry lending grew SEK 2.3 billion to SEK 71.5 billion during the year. In total, the bank’s loans to the public now amount to SEK 83 billion.

“We have continued to invest in our digitalisation and improved customer interfaces, while maintaining good cost control. Net profit for the year of SEK 303 million was up year-on-year given that last year’s figures included a capital gain from a property sale. We will carry with us 2020’s robust growth and positive earnings into 2021 to continue building an even better and more sustainable bank,” says Per Lindblad.

Based on the strong earnings, SEK 163 million has been allocated as a Group contribution to the bank’s owner, Landshypotek Ekonomiska Förening, whose members comprise the bank’s farming and forestry customers across the country.

More information is available in the interim report regarding the results as well as events in the world around us in terms of the financial markets, and farming and forestry.

The full report is attached.

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.

Summary of the year-end report:

January – December 2020
compared with January – December 2019

• Operating profit amounted to SEK 397 million (418). Operating profit for 2019 included a capital gain of SEK 55 million attributable to the sale of one property.
• The underlying operating profit, excluding the net result of financial
transactions, was SEK 414 million (420).
• Net interest income amounted to SEK 872 million (815).
• Costs totalled SEK 478 million (461).
• Net credit losses positively impacted earnings by SEK 13 million (3).
• Loans to the public amounted to SEK 83.0 billion (76.4).
• Deposits from the public amounted to SEK 14.7 billion (14.4).

October – December 2020
compared with July – September 2020

• Operating profit amounted to SEK 106 million (116).
• The underlying operating profit, excluding the net result
of financial transactions, was SEK 116 million (115).
• Net interest income amounted to SEK 235 million (215).
• Costs totalled SEK 127 million (106).
• Net credit losses positively impacted earnings by SEK 4 million (4).
• Loans to the public amounted to SEK 83.0 billion (80.0).
• Deposits from the public amounted to SEK 14.7 billion (14.5).

Landshypotek Bank AB is required to disclose this information pursuant to the Market Abuse Regulation (EU) No 596/2014 and the Securities Market Act (2007:528). This information was submitted for publication on 3 February 2021 at 8:00 a.m. (CET).