Länsförsäkringar Hypotek: Year-end Report 2023

” Länsförsäkringar Hypotek’s mortgage business continued to perform well in the second half of 2023.
Despite low growth in the mortgage market, Länsförsäkringar was highly successful in the second half of the year and was the bank that reported the highest growth in mortgage lending. With a high level of activity locally, combined with the strength of our brand, we were able to continue to help current and new customers and capture market shares.
The economic factors in the second half of the year showed far more signs of a recession since GDP started to fall and unemployment has risen slightly. At the same time, inflation started to decline and expectations of future interest-rate cuts have increased.
Households remain impacted by higher interest rates and costs of living, but we can state that our customers are continuing to show good resilience. Activity and the volume trend in the housing and mortgage markets remained weak, while prices in the housing market have stabilised.
It has been reassuring this year that Länsförsäkringar Hypotek is maintaining its very high credit quality and strong financial position. In light of this, I am convinced that we will continue to provide security for people’s everyday lives in the current difficult and uncertain economic climate – and with our competitive mortgage offering we aim to continue to provide new mortgages and see volumes grow.”, says Anders Larsson, President of Länsförsäkringar Hypotek

The period in brief:

• Operating profit rose 14% to SEK 1,629 M (1,423) and the return on equity amounted to 7.9% (7.5).
• Net interest income declined 15% to SEK 2,285 M (2,692).
• Credit losses amounted to SEK 2 M (4), net, corresponding to a credit loss level of 0.00% (0.00).
• Operating profit was impacted by fees levied of SEK 240 M, of which risk tax comprised SEK 130 M.
• Lending increased 6% to SEK 314 billion (297).
• A Group contribution of SEK 200 M gross and SEK 159 M net after tax was paid at year-end.
• The Common Equity Tier 1 capital ratio amounted to 19.2% (18.8*) on 31 December 2023.

Figures in parentheses pertain to the same period in 2022.
* Refers to 30 June 2023.
 

Read more

https://www.lansforsakringar.se/financial-hypotek/

For further information, please contact:
 

Anders Larsson, President, Länsförsäkringar Hypotek AB,

+46 (0)8 588 411 54, +46 (0)73 964 11 54

Martin Rydin, CFO, Länsförsäkringar Bank AB,

+46 (0)8 588 412 79, +46 (0)73 964 28 23

Andreas Larsson, Head of Investor Relations, Länsförsäkringar Bank AB,

+46 (0)10 498 7029, +46 (0)720 84 36 34

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 9 February 2024 at 12:00 p.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.