Länsförsäkringar Hypotek: January – June 2021
"The trend in the Swedish housing market remains stable and housing prices increased again during the quarter, particularly for single-family homes for which the increase was relatively substantial. Higher demand for larger homes, mainly in the large cities, combined with expectations that interest rates will remain low were the main reasons for this strong price trend. In addition, the relatively limited impact on home buyers’ finances during the pandemic contributed to the upturn. This increase also highlights the structural imbalance in the Swedish housing market. In parallel with the strong housing market, we can see that the competitive landscape in the mortgage market has intensified since the start of the year. We can conclude that the mortgage market is experiencing a period of major change with the largest players successively losing market shares in new lending. At the same time, several smaller players have periodically captured a larger share of new lending relative to their market shares. The growth in lending for Länsförsäkringar Hypotek has been favourable and we are continuing to capture market shares due to the tremendous work performed locally by the regional insurance companies. Our position in the mortgage market is continuously strengthening, while earnings are continuing to perform well”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.
The period in brief:
- Operating profit increased 4% to SEK 696.2 M (666.7) and the return on equity amounted to 8.1% (8.3).
- Net interest income rose 3% to SEK 1,330 M (1,288).
- Credit losses amounted to SEK –3.2 M (0.4), net, corresponding to a credit loss level of –0.00% (0.00).
- Lending increased 8% to SEK 269.2 billion (248.5).
- The Common Equity Tier 1 capital ratio amounted to 18.3% (18.5*) on 30 June 2021.
Figures in parentheses pertain to the same period in 2020.
* Pertains to 31 March 2021.
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 Bank 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 report contains such information that Länsförsäkringar Hypotek AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication on 21 July 2021 at 12:00 a.m. CET.
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.