Länsförsäkringar Hypotek: January – June 2020
The Swedish housing market displayed resilience to the deep economic decline resulting from the effects of COVID-19. Housing prices were essentially unchanged, supported by, for example, expectations of continued very low interest rates for a long time to come. Despite this, there are naturally households that have been affected by a loss of income or unemployment. Customers who apply for an exemption from the repayment requirements have the possibility to be granted a temporary repayment holiday in accordance with the Swedish Financial Supervisory Authority’s guidelines. The financial security of our customers is important to Länsförsäkringar and we are working locally to support them. Despite the turbulent markets, growth in mortgage lending continued and it is pleasing that, through the effective local efforts of the regional insurance companies, we are still capturing a larger share of new loans compared to our market share. The credit quality of the loan book remains very high and in spite of the weaker macroeconomic outlook we see no increase in expected credit losses. Funding via covered bonds functioned very well, which creates a strong liquidity situation for the mortgage operations and the Bank Group as a whole”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.
The period in brief:
- Operating profit increased 13% to SEK 666.7 M (587.8) and the return on equity strengthened to 8.3% (7.9).
- Net interest income rose 1% to SEK 1,288 M (1,270).
- Credit losses amounted to SEK 0.4 M (0.5), net, corresponding to a credit loss level of 0.00% (0.00).
- Lending increased 7% to SEK 248.5 billion (232.6).
- The Common Equity Tier 1 capital ratio amounted to 18.2% (18.1*) on 30 June 2020.
Figures in parentheses pertain to the same period in 2019.
* Pertains to 31 March 2020.
For further information, please contact:
Anders Borgcrantz, President, Länsförsäkringar Hypotek AB,
+46 (0)8-588 412 51, +46 (0)73-964 12 51
Martin Rydin, CFO, Länsförsäkringar Hypotek AB,
+46 (0)8-588 412 79, +46 (0)73-964 28 23
Stefan Karkamanis, Investor Relations, Länsförsäkringar Bank AB,
+46 (0)8-588 402 90, +46 (0)72-310 00 80
This is information that Länsförsäkringar Hypotek AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 22 July 2020.
The Länsförsäkringar Alliance is comprised of 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and life and non-life insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions through Länsförsäkringar Fastighetsförmedling, and financing services such as leasing, instalment payments, and loans through Wasa Kredit.