Länsförsäkringar Hypotek: January – December 2020

"The year was deeply impacted by the coronavirus pandemic, which put both the Swedish society and the global economy under stress. Despite an uncertain business environment, the Swedish housing market nonetheless displayed its resilience to the broad economic decline caused by the spread of COVID-19. The trend in housing prices was stable, particularly in the autumn, despite an uncertain macroeconomic outlook and rising unemployment. Länsförsäkringar Hypotek’s mortgage operations continued to perform positively despite the ongoing coronavirus pandemic. Net interest income trended well and we reported strong operating profit for the fullyear. Lending growth was stable and the credit quality of the mortgage portfolio remained very high with unaffectedly low credit losses. One of the reasons for this success is the employees of Länsförsäkringar’s banking operations who worked tremendously hard during the year, given the circumstances. Hopes of a quicker recovery have increased as the vaccination programmes have started, however uncertainty about the macroeconomic development and how it will affect the housing market in the future still remains”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.
 

The year in brief:

• Operating profit increased 10% to SEK 1,348 M (1,229) and the return on equity strengthened to 8.2% (8.1).
• Net interest income rose 4% to SEK 2,612 M (2,522).
• Credit losses amounted to SEK 0.8 M (–0.9), net, corresponding to a credit loss level of 0.00% (–0.00).
• Lending increased 8% to SEK 259.5 billion (240.1).
• The Common Equity Tier 1 capital ratio amounted to 18.4% (18.3*) on 31 December 2020.
  
  Figures in parentheses pertain to the same period in 2019.
  * Pertains to 30 September 2020.
   

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

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. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 8 February 2021.

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.