Länsförsäkringar Hypotek: January – June 2022
"The period was characterised by changes in the macro environment with rising inflation, higher interest rates and reduced growth prospects. The housing market started to show signs of a weaker trend, with indications that prices have started to fall. In the future, mortgage customers will encounter higher mortgage rates, which naturally impacts household purchasing power. With our credit process, we can rest assured that Länsförsäkringar’s mortgage customers have healthy margins to cope with higher interest rates and we can confirm that our credit quality remains very high. High competition remains a feature of the mortgage market. Following a slightly weaker start to the year in terms of volumes, growth was again stronger in recent months. Länsförsäkringar Hypotek’s earnings for the first half of the year were stable and we are well prepared financially.” says Anders Borgcrantz, President of Länsförsäkringar Hypotek.
The period in brief:
- Operating profit declined 9% to SEK 636.7 M (696.2) and the return on equity amounted to 6.8% (8.1).
- Net interest declined 3% to SEK 1,343 M (1,380).
- Credit losses amounted to SEK –0,3 M (-3,2), net, corresponding to a credit loss level of –0.00% (-0.00).
- Lending increased 6,5% to SEK 286,7 billion (269,2).
- The Common Equity Tier 1 capital ratio amounted to 18.4% (17.8*) on 30 June 2022.
Figures in parentheses pertain to the same period in 2021.
* Pertains to 31 December 2021.
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 Bank AB,
+46 (0)8-588 412 79, +46 (0)73-964 28 23
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 2022 at 13:00 p.m. CET.