Landshypotek Bank’s six-month interim report for 2023: Growth results in strong earnings in the first half of the year

Landshypotek Bank posted strong earnings for the first half of 2023. With a larger lending volume and an increased share of deposits compared with the preceding year, the bank’s operating profit improved to SEK 334 million (224). While its robust lending growth has slowed, the bank is continuing to grow through deposits.

“Our strong lending growth in the last few years has provided us with more customers and larger transactions, increasing our earnings. The deposit growth we have noted in the past year has also strengthened our earnings. With a more secure earnings engine, our earnings for full-year 2023 look promising,” says Per Lindblad, CEO of Landshypotek Bank.

As a larger bank, net interest income grew to SEK 629 million for the first half of the year, compared with SEK 495 million one year ago.  Since the second half of 2022, deposits have increased by more than SEK 12 billion. Operating profit grew SEK 110 million to SEK 334 million, compared with SEK 224 million one year ago.

At the same time, turbulent changes in the economy also affected the first half of the year for Landshypotek.

  • The prevailing uncertainty resulted in stalled credit growth in the market during the year – including for Landshypotek. The bank is continuing to grow in lending to major agriculture companies. Within lending to homes and smaller farms in the countryside, which have been affected by decreases in disposable income, the lower demand for credit is more clear. Landshypotek passed the hundred billion kronor mark last spring and now has lending of SEK 104.8 billion with continued healthy credit quality.
  • Interest in simple household savings with competitive interest rates has increased and Landshypotek has grown substantially. The bank’s deposits have grown just over SEK 12 billion since the second quarter of 2022.

“Reduced lending growth has caused a hiccup in our planned growth curve, but in terms of earnings, this is well compensated for by deposit growth. Deposits are providing us with new customers and raised visibility and awareness in the market. Landshypotek has been in operation for nearly 200 years and we take a long-term approach to our operations. During the spring we focused on continued development, being present with our customers and growth in our deposits,” says Per Lindblad.

The full interim report, including the CEO’s statement, macro comments concerning developments in agriculture and forestry and in the financial markets, and other events at Landshypotek Bank during the quarter, is attached and can be found at https://www.landshypotek.se/en/about-landshypotek/investor-relations/financial-reports/.

Summary of the interim report:

January – June 2023 (compared with January – June 2022)

  • Operating profit amounted to SEK 334 million (224).
  • Net interest income amounted to SEK 629 million (495).
  • Costs totalled SEK 301 million (274).
  • Net credit losses positively impacted earnings with recoveries of SEK 8 million (loss: 1).
  • Loans to the public amounted to SEK 104.8 billion (101.4).
  • Deposits from the public amounted to SEK 28.4 billion (15.8).

April – June 2023 (compared with January – March 2023)

  • Operating profit amounted to SEK 172 million (162).
  • Net interest income amounted to SEK 317 million (312).
  • Costs totalled SEK 149 million (151).
  • Net credit losses positively impacted earnings with recoveries of SEK 6 million (recoveries: 2).
  • Loans to the public amounted to SEK 104.8 billion (105.7).
  • Deposits from the public amounted to SEK 28.4 billion (27.2).

 

Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 26 July 2023 at 8:00 a.m. (CEST).

For more information, please contact:

Jonas Feinberg, Press Officer, +46 70 349 24 10

About Landshypotek Bank

Landshypotek was founded in 1836 and is currently 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 35,500 farming and forestry customers, who are organised as a cooperative association. The bank has almost 240 employees located at branches across Sweden.

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