Landshypotek Bank’s six-month interim report for January – June 2024: Strong earnings in a cautious market

Net interest income for the first six months totalled SEK 548 million (629) and profit SEK 243 million (334). While down on last year, this is an improvement if one excludes the exceptional 2023 and compares with previous years such as the first half of 2022.

“While it is never pleasing when earnings are down on the previous year, the unequivocal long-term earnings trend is positive and in line with the continued building of a stable bank for low risk first lien mortgage loans. We are retaining our market position and continuing to grow lending to farmers. This confirms our strength in the market and the confidence of our customers,” says Per Lindblad, CEO of Landshypotek Bank.

For the first six months, the bank’s lending totalled SEK 105.6 billion (104.8) and savings accounts for the general public amounted to SEK 28.5 billion (28.4). At SEK 310 million (301), our costs are under control and provisions for credit losses had a positive impact on earnings.

Landshypotek has a strong capital situation with a solid position in terms of own funds that provides scope both for growth and for development. Moreover, S&P Global Ratings has made the assessment that the bank has strengthened its capital position through measures including the successful AT1 issue in the spring. In the beginning of July, S&P affirmed the bank’s long-term A rating and revised the outlook upward from negative to stable.

“Our long-term growth ambitions remain firm. In the current times, it is a strength to be able to work for the present and for the future. We continue our long-term development to better meet customers’ expectations, while being both active in the market and present for customers in the here and now. As part of our strategic development, we are focusing on broadening the bank so that we can meet and be relevant to many more customers,” says Per Lindblad.

More information is available in the half-year report on the results, the CEO’s statement, macrodata on developments in farming and forestry, and in the financial markets, and a summary of other events at the bank.

The full report is attached.

Summary of the interim report:

January – June 2024
(compared with January – June 2023)

• Operating profit amounted to SEK 243 million (334).
• Net interest income amounted to SEK 548 million (629).
• Costs totalled SEK 310 million (301).
• Net credit losses positively impacted earnings with recoveries of SEK 3 million (recoveries: 8).
• Loans to the public amounted to SEK 105.6 billion (104.8).
• Deposits from the public amounted to SEK 28.5 billion (28.4).

April – June 2024
(compared with January – March 2024)

• Operating profit amounted to SEK 112 million (131).
• Net interest income amounted to SEK 270 million (277).
• Costs totalled SEK 156 million (154).
• Net credit losses positively impacted earnings with recoveries of SEK 3 million (recoveries: 0).
• Loans to the public amounted to SEK 105.6 billion (105.1).
• Deposits from the public amounted to SEK 28.5 billion (28.5).

 

Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 24 July 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.