FINANCIAL PERFORMANCE January - September 2012 compared with January - September 2011 Operating profit increased by SEK 1,462 million to SEK 5,815 million (4,353). Net interest income amounted to SEK 5,891 million (4,530), with the branch in Norway accounting for SEK 441 million (305), the branch in Denmark for SEK 82 million (64) and the branch in Finland, which was established on 1 May 2011, for SEK 176 million (33). Excluding these branches, net interest income thus increased by SEK 1,064 million. The increase in net interest income is due to an increase in lending volume and to improved margins due to the company's good position in the funding market. Net gains/losses on financial items at fair value amounted to SEK 128 million (-4). Expenses rose by SEK 9 million to SEK 193 million (184), primarily due to increased IT expenses related to the branch in Finland. Net loan losses totalled SEK 6 million. During the period January - September 2011, recoveries exceeded new loan losses and the net amount recovered was SEK 21 million. Before deduction of the provision for probable loan losses, the volume of impaired loans was SEK 118 million (93). SEK 82 million (55) of the impaired loans were non-performing loans, while SEK 36 million (38) were loans on which the borrowers pay interest and amortisation, but which are nevertheless regarded as impaired. There were also non-performing loans of SEK 1,142 million (850) that are not classed as being impaired loans. After deduction for specific provisions totalling SEK -44 million (-38) and collective provisions of SEK -5 million (- 6) for probable loan losses, impaired loans totalled SEK 69 million (49). Q3 2012 compared with Q2 2012 Stadshypotek's operating profit increased by SEK 7 million to SEK 1,939 million (1,932). However, net interest income decreased by SEK 25 million to SEK 1,954 million (1,979). SEK 161 million (164) of the net interest income was attributable to the branch in Norway, SEK 31 million (28) to the branch in Denmark and SEK 69 million (59) to the branch in Finland. Excluding these branches, net interest income went down by SEK 35 million. Net gains/losses on financial items at fair value amounted to SEK 53 million (19). Expenses fell by SEK 5 million to SEK 61 million (66). GROWTH IN LENDING Loans to the public increased by around 4 per cent, or SEK 31 billion, compared to the end of the third quarter of the previous year, and stood at SEK 869 billion (838). On 1 September, Stadshypotek's branch in Finland acquired a loan portfolio of around EUR 0.5 billion from the parent company's branch in Finland, which corresponds to approximately SEK 4 billion of the increase in lending during the period. CAPITAL ADEQUACY The capital ratio according to Basel II was 62.3 per cent (55.2), while the Tier 1 ratio calculated according to Basel II was 46.0 per cent (37.7). Further information on capital adequacy is provided in the 'Capital base and capital requirement' section on page 15. RATING Stadshypotek's rating remained unchanged during the period, 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+ The full Interim report can be downloaded here Reports Stadshypotek Stockholm, October 22 2012 Per Beckman Chief Executive Stadshypotek discloses the information provided herein pursuant to the Securities Markets Act. Submitted for publication on 22 October 2012, at 12.30 CET. [HUG#1650993]
Stadshypotek's Interim Report January - September 2012
| Source: Stadshypotek AB
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