Länsförsäkringar Hypotek: January-June 2023
”Länsförsäkringar Hypotek’s mortgage business continued to perform well in the first half of 2023.
Despite lower growth in the mortgage market, Länsförsäkringar succeeded well in the first half of the year and was one of the banks with the highest lending growth in mortgages. Based on a high level of activity locally combined with the strength of our brand, we could continue to capture market shares against an uncertain global backdrop.
The global economic outlook improved slightly during the first half of the year, and both growth and unemployment were surprisingly positive. However, inflation remains at high levels, and thus the Riksbank continued its efforts to curb inflation and make interest rate hikes. Although we can now probably start to discern a peak in interest rate rises, there is still the risk of a weaker macroeconomic trend in the future.
Activity and the volume trend in the housing and mortgage markets were weaker, but prices in the housing market stabilised slightly after the decline in prices last year, and we have seen a rise in house prices of a few percent to date this year. Households are experiencing higher interest rates and costs of living, but we can nevertheless see that our customers continue to show good resilience.
It is reassuring that Länsförsäkringar Hypotek’s very high credit quality and strong financial position remain firm. In light of this, we are convinced that we will continue to offer security in people’s everyday lives in the tough and uncertain economic situation currently prevailing – and with our competitive mortgage offering we have the aim of continuing to do new mortgage business and see volumes rise”, says Anders Larsson, President of Länsförsäkringar Hypotek
The period in brief:
- Operating profit rose 15% to SEK 730 M (637) and return on equity was 7.2% (6.8).
- Net interest income fell 13% to SEK 1,163 M (1,343).
- Credit losses amounted to SEK 2 M (0), net, corresponding to a credit loss level of 0.00% (0.00).
- Operating profit was impacted by fees levied of SEK 120 M, of which risk tax comprised SEK 65 M.
- Lending increased 7% to SEK 306 billion (287).
- The Common Equity Tier 1 capital ratio amounted to 18.8% (18.9*) on 30 June 2023.
Figures in parentheses pertain to the same period in 2022.
* Refers to 31 December 2022.
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 21 July 2023 at 12:00 p.m. CEST.
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.