FINANCIAL PERFORMANCE Q1 2010 compared with Q1 2009 Stadshypotek's operating profit was SEK 1,373 million (1,421), a decrease of SEK 48 million compared with the corresponding period of the previous year. Net interest income was SEK 1,432 million (1,493), of which SEK 119 million (112) was attributable to the branch in Norway. The decrease in operating profit was thus partly due to the net interest income being SEK 61 million lower than the corresponding period in the previous year. Net gains/losses on financial operations were SEK -13 million (-18). Expenses were SEK 54 million (53). Recoveries exceeded new loan losses and the net amount recovered was SEK 12 million (5), which corresponds to a loan loss ratio of -0.01 percent (0.00). After deduction of the provision for probable loan losses, the volume of impaired loans was SEK 111 million (194). SEK 44 million (64) of the impaired loans were non-performing loans, while SEK 67 million (130) were loans on which the borrowers pay interest and amortisation, but which are nevertheless considered impaired. In addition, there were non-performing loans of SEK 512 million (773) that are not assessed as being impaired loans. After deductions for specific provisions totalling SEK -48 million (-69) and provisions by group of SEK -7 million (-14) for probable loan losses, impaired loans totalled SEK 56 million (111). Q1 2010 compared with Q4 2009 Stadshypotek's operating profit for the first quarter of 2010 went up by SEK 32 million to SEK 1,373 million (1,341). Net interest income was SEK 1,432 million (1,414), of which SEK 119 million (130) was attributable to the branch in Norway. The average margin on the private market in Sweden was unchanged compared with the fourth quarter of 2009 at 0.65 percent. Net gains/losses on financial operations were SEK -13 million (-12). GROWTH IN LENDING Loans to the public increased during the first quarter by SEK 13 billion to SEK 698 billion (685). Compared with 31 March 2009, the increase in lending volume was SEK 70 billion. Stadshypotek's share of the private market in Sweden was approximately 25 percent and its share of the corporate market in Sweden was approximately 30 percent. CAPITAL RATIO The capital ratio according to Basel II was 42.3 percent (37.7) while the Tier 1 ratio calculated according to Basel II was 30.8 percent (26.2). Further information concerning capital adequacy is provided in the 'Capital base and Capital requirement' section. Rating Stadshypotek's rating remained unchanged, with a stable outlook. Stadshypotek Covered bonds Long-term Short-term Moody's Aaa - P-1 Standard & Poor's AA- A-1+ Fitch AA- F1+ Accounting policies The accounts comply with the IASB accounting standards adopted by the EU. The regulations of the Annual Accounts Act for Credit Institutions and Securities Companies and the directives issued by the Swedish Financial Supervisory Authority are also applied. The accounting policies are unchanged compared to the latest annual report. Stockholm, 28 April 2010 Lars Kahnlund Chief executive [HUG#1409159]
Stadshypotek's interim report January - March 2010
| Source: Stadshypotek AB
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