Landshypotek Bank’s first quarter: Stable performance in a stagnant market
Landshypotek reports stable earnings for the year’s first quarter. Even during this period of weak market credit growth, the bank is secure and developing for the future. The bank’s interim report for January – March 2024 is being published today.
Year-on-year, earnings have declined to SEK 132 million from SEK 162 million. 2023 posted an exceptionally strong first quarter before earnings settled. The quarter’s operating profit is on a par with the previous quarter’s SEK 126 million.
“We continue to generate healthy earnings, our capital position is very strong and we are confident in our robust credit quality. Our long-term growth ambitions remain firm. We are making optimal use of the time by maintaining close relationships with our customers, sustaining strong customer offerings and fully focusing on our development to strengthen customer values and the bank in the long term,” says Per Lindblad, CEO of Landshypotek Bank.
While the bank’s costs are stable, net interest income has declined compared with the exceptional 2023. The lending volume has increased marginally to SEK 105.1 billion compared with SEK 104.8 billion last quarter.
“In line with expectations, weak market credit growth set the tone for Q1 2024. We have noted that many of our customers are pausing their investment decisions. Overall, we have a stable lending volume and we are pleased that, as a leading bank, we continue to grow lending and capture market shares in lending to farming and forestry,” says Per Lindblad, CEO of Landshypotek Bank.
Landshypotek has often been ahead of the trend in adjusting interest rates for customers on both deposits and lending. Once again, as the first quarter of 2024 closed, the bank has chosen to steal a march on the market and any Riksbank announcement with a broad cut in mortgage interest rates and a minor adjustment for savings.
During the quarter, the Association Board presented the dividend proposal. The General Meeting on 7 May will take a decision on the distribution of SEK 244 million to farmers around the country.
More information is available in the interim report regarding the results, the CEO’s statement and events in the world around us, both in the financial markets in general and in farming and forestry.
Summary of the interim report:
January – March 2024
compared with January – March 2023
- Operating profit amounted to SEK 132 million (162).
- Net interest income amounted to SEK 278 million (312).
- Costs totalled SEK 153 million (151).
- Net credit losses positively impacted earnings with recoveries of SEK 0.5 million (recoveries: 2).
- Loans to the public amounted to SEK 105.1 billion (105.7).
- Deposits from the public amounted to SEK 28.5 billion (27.2).
January – March 2024
compared with October – December 2023
- Operating profit amounted to SEK 132 million (126).
- Net interest income amounted to SEK 278 million (302).
- Costs totalled SEK 153 million (164).
- Net credit losses positively impacted earnings with recoveries of SEK 0 million (loss: 1).
- Loans to the public amounted to SEK 105.1 billion (104.8).
- Deposits from the public amounted to SEK 28.5 billion (29.1).
Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 3 May 2024 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. The bank is growing rapidly in the homeowner mortgage and savings markets and remains the leading bank for financing farm and forest properties. Landshypotek Bank is owned by 34,000 farming and forestry customers who are organised as a cooperative association. The bank has almost 240 employees located at branches across Sweden.