Improved earnings for Landshypotek Bank


Landshypotek Bank continues to improve its earnings. The bank is growing both in
terms of deposits and lending. Operating profit for the first three quarters
amounted to SEK 280 million, excluding the net result of financial transactions,
up SEK 25 million.
Lending growth showed the continued interest in agroforestry investments. The
growth in deposits demonstrated customers’ interest in a bank with a difference
— tasked with a commitment to Sweden’s countryside.

“Our growth and continued strong results are pleasing to note. The bank’s
strength is shown in its results, a strength that was recognised by the rating
agencies during the quarter,” says Liza Nyberg, CEO of Landshypotek Bank.

Lending increased SEK 1.7 billion to SEK 66.2 billion in the first three
quarters of 2016. This corresponded to lending growth of 2.7 percent, compared
with 3.7 percent in the year-earlier period. Deposits also continued to grow and
amounted to SEK 11.7 billion.

“The summer months are a quieter period in the farming and forestry sector, but
an excellent time to meet customers at various trade fairs and meetings in the
Swedish summer. We are working intensively with the bank’s continued development
and, in parallel, we have boosted our market presence,” says Liza Nyberg.

Operating profit for the first three quarters amounted to SEK 279.9 million
(255.0), excluding the net result of financial transactions, up SEK 25 million
year-on-year. Including the net result of financial transactions, operating
profit increased SEK 81 million, which was partly attributable to reduced loan
losses.

The bank reported a SEK 32 million reduction in loan losses compared with the
first three quarters in 2015. Costs have increased slightly year-on-year, but
the increase was planned and part of developments to increase the bank’s
competitiveness.

In particular, among the bank’s loan customers, meat producers have had
favourable market conditions. Dairy farmers have been under pressure for an
extended period but prices are now rising. The lending interest rates, according
to published prices, offered to customers remained unchanged in the third
quarter and interest rates continue to be low.

 January–September 2016 (compared with January–September 2015)

  · Operating profit amounted to MSEK 349.2 (267.9).
  · Underlying operating profit, excluding the net result of financial
transactions, was MSEK 279.9 (255.0).
  · Net interest income amounted to MSEK 554.6 (554.4).
  · Costs totalled MSEK 280.9 (269.5).
  · Net loan losses were MSEK 6.8 (38.7).
  · Lending amounted to SEK 66.2 billion (64.0).
  · Deposits amounted to SEK 11.7 billion (8.8).

July–September 2016 (compared with April–June 2016)

  · Operating profit amounted to MSEK 146.4 (87.4).
  · Underlying operating profit, excluding the net result of financial
transactions, was MSEK 107.3 (97.7).
  · Net interest income amounted to MSEK 184.4 (193.6).
  · Costs totalled MSEK 83.2 (101.2).
  · Net loan losses resulted in a recovery of MSEK 2.9 (Loss: 1.4).
  · Lending amounted to SEK 66.2 billion (65.7).
  · Deposits amounted to SEK 11.7 billion (11.3).

Read the
report (http://www.landshypotek.se/globalassets/bilder/nyhetsarkiv/finansiella
-rapporter/lhab-q3-engelsk_final.pdf)

For further information and comments, please contact:

Tomas Uddin, Chief Communications Officer at Landshypotek Bank, +46 70 299 24 08

Liza Nyberg, CEO, and Fredrik Sandberg, CFO, can be contacted through Tomas
Uddin.

Attachments

10271327.pdf