Landshypotek Bank’s Year-end report 2024: Return to growth

In 2024, Landshypotek’s lending grew SEK 6.3 billion, of which SEK 4 billion was lent in the last quarter and our total lending volume amounted to SEK 111 billion.

“2024 has been a year of contrast. The softer lending market continued to strongly impact our operations in the first half of the year. However, in the second half of the year, we returned with full force to being on track for growth – with considerable customer interest, which we are now doing everything we can to meet,” says Johan Ericson, CEO of Landshypotek Bank.

The bank consistently grew lending to farmers and foresters, captured market shares and confirmed its position as the leading bank for financing Swedish farming and forestry.

A strong start in the autumn saw Landshypotek also get back on track for growth in mortgages. The bank has attracted customer attention and interest by being active in the market and in customer relations, and has often been quick to adjust interest rates.

In November, as part of Landshypotek’s ambition to become a bank for more people, we took the next step by also launching lending to owners of tenant-owner apartments. Previously, market interest in the bank’s lending was considerable but now the bank is seeing record-breaking interest levels. The year-end spurt and growth for the quarter were quite remarkable.

Net interest income amounted to SEK 1.1 billion. The year-on-year decrease of SEK 148 million was due to lending interest rates falling faster than deposit and funding rates. The bank continued to post extremely good credit quality and growth in costs was controlled according to plan.

Earnings of SEK 489 million are lower than the exceptionally strong 2023 (SEK 636 million), primarily due to falling interest rates.

“While a dip in earnings is not positive, given developments this year and now that we are back on the growth track, we end 2024 on a positive note. Following a strong performance at the end of the year, we met our growth ambitions for our lending,” says Johan Ericson, who was introduced as the new CEO during the quarter.

The bank has good conditions for continued growth. Lower interest rates, combined with tax cuts and rising real wages, should provide scope to households for increased consumption and some growth in the economy. As their household finances improve, customers will become increasingly active, resulting in higher demand for credit and benefitting Landshypotek’s growth strategy.

The positive economic climate for forest owners is continuing and looks set to last. Prices for timber, pulp wood and fuel wood remain high. With a perceived positive outlook for farmers, more are now discussing different investments and how to finance and prioritise them.

The bank’s earnings will be used in the continued development and also allow for a nice dividend to the owners of the bank, our loan customers within farming and forestry.

Based on our earnings, the bank’s Board has resolved to distribute a Group contribution of SEK 251 million (264) to the cooperative association, which will enable, inter alia, a dividend to every member and the continued operations of the association. This is a strong contribution to Swedish farming.

In the last quarter, the bank also presented an analysis of its credit portfolio from a climate perspective. The calculations found that emissions by loan customers were outweighed by their carbon uptake, amounting to a positive climate impact.

More information is available in the year-end report about the year’s performance as well as about events in our operating market.

The full report is attached.

Summary of the year-end report:

January – December 2024
compared with January – December 2023

• Operating profit amounted to SEK 489 million (636).
• Net interest income amounted to SEK 1,078 million (1,220).
• Costs totalled SEK 603 million (589).
• Net credit losses impacted earnings with SEK 4 million (recoveries: 5).
• Loans to the public amounted to SEK 111.1 billion (104.8).
• Deposits from the public amounted to SEK 27.1 billion (29.1).

October – December 2024
compared with July – September 2024

• Operating profit amounted to SEK 97 million (149).
• Net interest income amounted to SEK 266 million (269).
• Costs totalled SEK 167 million (126).
• Net credit losses impacted earnings with SEK 8 million (recoveries: 1).
• Loans to the public amounted to SEK 111.1 billion (107.1).
• Deposits from the public amounted to SEK 27.1 billion (28.0).

Landshypotek Bank AB is required to disclose this information pursuant to the Securities Market Act (2007:528). This information was submitted for publication on 30 January 2024 at 8:00 a.m. (CET).

For further information, please contact:

Jonas Feinberg, Press Officer Landshypotek Bank, +46 70 349 24 10, jonas.feinberg@landshypotek.se

Landshypotek – secure financing since 1836

Landshypotek was founded in 1836 and is currently one of the ten largest lending banks in Sweden. The bank is deemed systemically important for lending to 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 nearly 32,500 farming and forestry customers who are organised as a cooperative association. The bank has almost 240 employees located at branches across Sweden.