”The positive performance for Länsförsäkringar Hypotek continues and operating profit trended positively due to continued strong net interest income. Lending growth is stable, while credit quality remains high and credit losses very low. Our market share in the mortgage market is continuously increasing and the inflow of new customers is continuing, which indicates that customers value Länsförsäkringar’s mortgage offering. The price trend of the housing market remained in focus during the period and the stricter repayment requirements came into effect in March. Although a stricter repayment culture is essentially a healthy development, politicians must further concentrate on the function of the housing market, make it less sluggish and reduce lock-in effects moving forward.”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.
The period in brief:
- Operating profit increased 37% to SEK 236.4 M (172.2) and the return on equity amounted to 6.9% (6.6).
- Net interest income increased 19% to SEK 585.4 M (490.6).
- Credit losses amounted to SEK –0.3 M (–0.7), net, corresponding to a credit loss level of –0.00% (–0.00).
- Lending increased 17% to SEK 203.9 billion (174.2).
- The Common Equity Tier 1 capital ratio amounted to 54.8% (56.3*) on 31 March 2018.
- The number of customers rose 10% to 260,000 (236,000).
- According to the 2017 Swedish Quality Index customer satisfaction survey, Länsförsäkringar is the single player on the market with the most satisfied retail mortgage customers.
Figures in parentheses pertain to the same period in 2017.
* Refers to 31 December 2017.
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
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.