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”Länsförsäkringar Hypotek continued to strengthen its position on the mortgage market. Mortgage volumes are increasing in line with the rising number of customers choosing Länsförsäkringar as their primary bank, at the same time as market shares are strengthening. Länsförsäkringar succeeded in advancing its positions despite a mortgage market that in the first half of the year was characterised by slightly lower market growth than in the preceding year. In April, Länsförsäkringar Hypotek became for the first time the player that captured the largest share of market growth in a single month and, accumulated up to May, was also the player that had captured most of the market growth since the start of the year. Housing prices for the period were relatively stable, supported by, for example, low interest rates. Indications that housing construction is now declining will probably mean a lower supply in the future, which could again increase focus on the imbalances and structural problems in the housing market. Structural political reforms are still needed to resolve these problems and create a healthier housing market that functions efficiently with greater turnover”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.
The period in brief:
- Operating profit increased 9% to SEK 587.8 M (541.7) and the return on equity amounted to 7.9% (7.9).
- Net interest income rose 6% to SEK 1,270 M (1,198).
- Credit losses amounted to SEK –0.5 M (–0.8), net, corresponding to a credit loss level of –0.00% (–0.00).
- Lending increased 11% to SEK 232.6 billion (210.4).
- The Common Equity Tier 1 capital ratio amounted to 17.8% (18.1*) on 30 June 2019.
- According to Statistics Sweden (SCB), Länsförsäkringar Hypotek was by the end of May, the player on the mortgage market that had captured the largest share of market growth since the start of the year.
Figures in parentheses pertain to the same period in 2018.
* Pertains to 31 March 2019.
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 18 July 2019.
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.