Landshypotek Bank’s third quarter interim report: Back to growth

The Bank’s lending volume continues to grow and business volumes have never been higher. Activity in the credit market is on the rise. Landshypotek made a flying start in the autumn with strong marketing activities – and is now growing in all segments of the bank’s lending. This is confirmed in the third quarter interim report presented today.

Operating profit for Landshypotek’s third quarter amounted to SEK 149 million, up compared with the second quarter (SEK 112 million). Compared with the second quarter, the third quarter posted stable net interest income of SEK 269 million (268) and lower costs (126 compared with 156). For a large bank with growth ambitions, costs are growing in a controlled manner and as planned.

Lending market activity has increased markedly following interest rates peaking and their subsequent decline. After a tougher year for lending in 2023, the bank’s lending is again growing and business volumes have never been higher. Lending grew SEK 1.5 billion in the last quarter, to total lending of just over SEK 107 billion, and the bank continues to welcome new customers.

“We made a flying start in the autumn with increased activity and growth in all our customer segments for lending. To date this year, we are performing in line with our record 2022 performance. We have returned to growth, with a strong capital situation and good credit quality,” says Per Lindblad, CEO of Landshypotek Bank

Growth in lending to Sweden’s professional farmers continues to increase. The lending growth confirms Landshypotek’s strength as well as confidence in the market and from customers. During the quarter, the bank passed the milestone of SEK 80 billion lent to Swedish agriculture. In the last quarter, growth has also strengthened among smaller scale farmers and foresters.

And most importantly, growth has once again picked up for mortgages. There is much media discussion about various difficulties in dealing with traditional banks, and in this context Landshypotek has emerged as a strong alternative. In terms of lending volume, September was the best month for the bank in two years with more than SEK 800 million lent in September alone.

“We have become a bank that serves more people – and we intend to serve even more. We are now open to customers who want to borrow on their tenant-owner apartments. Over the years as a bank for houseowners, we have had many inquiries about loans on tenant-owner apartments – so for many, this is more like, At last!” says Per Lindblad.

More information is available in the third quarter interim 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 – September 2024 (compared with January – September 2023)

  • Operating profit amounted to SEK 392 million (510).
  • Net interest income amounted to SEK 811 million (921).
  • Costs totalled SEK 436 million (425).
  • Net credit losses positively impacted earnings with recoveries of SEK 4 million (recoveries: 6).
  • Loans to the public amounted to SEK 107.1 billion (104.7).
  • Deposits from the public amounted to SEK 28.0 billion (29.5).
     

July – September 2024 (compared with April – June 2024)

  • Operating profit amounted to SEK 149 million (112).
  • Net interest income amounted to SEK 269 million (268).
  • Costs totalled SEK 126 million (156).
  • Net credit losses positively impacted earnings with recoveries of SEK 1 million (recoveries: 3).
  • Loans to the public amounted to SEK 107.1 billion (105.6).
  • Deposits from the public amounted to SEK 28.0 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 6 November 2024 at 8:00 a.m. CET.

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.

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