Länsförsäkringar Hypotek
About Länsförsäkringar Hypotek
One of Sweden’s largest mortgage institutions
Länsförsäkringar Hypotek is one of Sweden's largest mortgage institutions. The strategy is based on the Länsförsäkringar Alliance's large customer base, a strong brand and local presence through the customer-owned regional insurance companies.
Mortgages are primarily offered to the slightly more than 3.9 million customers of the Länsförsäkringar Alliance. Customer contact takes place during personal meetings at 128 of the regional insurance companies' branches throughout Sweden and via digital services and telephone.
The aim is, based on low risk, to continue to have growth in volumes and profitability, have the most satisfied customers and increase the share of customers who have both banking and insurance with Länsförsäkringar.
Contacts
Länsförsäkringar Hypotek AB (publ)
Street address: Tegeluddsvägen 11-13
Postal address: SE-106 50 Stockholm
Telephone: +46 8 588 400 00
Anders Borgcrantz
President, Länsförsäkringar Hypotek AB
+46 8 588 412 51
+46 73 96 412 51
Anders.Borgcrantz@lansforsakringar.se
Martin Rydin
CFO, Länsförsäkringar Hypotek AB
+46 8 588 412 79
+46 73 964 12 79
Martin.Rydin@lansforsakringar.se
Stefan Karkamanis
Investor Relations Länsförsäkringar Bank AB
+46 8 588 402 90
+46 72-310 00 80
Stefan.Karkamanis@lansforsakringar.se
Financial Information
Year-end report 2018
The year in brief
-
Operating profit increased 33% to SEK 1,084 M (813.0) and the return on equity increased to 7.7% (6.9).
-
Net interest income increased 16% to SEK 2,434 M (2,101).
-
Credit losses amounted to SEK –1.3 M (0.0), net, corresponding to a credit loss level of –0.00% (0.00).
-
Lending increased 12% to SEK 221.1 billion (197.7).
-
The Common Equity Tier 1 capital ratio amounted to 18.3% (54.5*) on 31 December 2018.
-
The number of customers rose 7% to 274,000 (255,000).
-
According to the 2018 Swedish Quality Index customer satisfaction survey, Länsförsäkringar is the player on the market with the most satisfied retail mortgage customers.
Figures in parentheses pertain to the same period in 2017.
* Pertains to 30 September 2018. As of 31 December 2018, the application of the risk weight floor for Swedish mortgages will change, which consequently reduces the capital ratios for the current period.
| Financial calendar | |
|---|---|
| Date | Report |
| February 7 | Year-end report 2018 |
|
March 27 |
Annual report 2018 |
|
April 26 |
Interim report, January – March 2019 |
| July 18 | Interim report, January – June 2019 |
| October 24 | Interim report, January – September 2019 |
Current Rating – Covered Bonds
Long Term Credit Rating
- Standard & Poor's: AAA/Stable
- Moody's: Aaa
Historical Ratings
2007 May Länsförsäkringar Hypotek's covered bonds graded Aaa from Moody's.
2007 June Länsförsäkringar Hypotek's covered bonds graded AAA long-term and A-1 + short-term from Standard & Poor's.
Funding
In nominal values and excluding repurchase agreements, as of December 31, 2018.
| Funding programmes | |||
|---|---|---|---|
| Limit Nom | Outstanding Nom | Remaining average term | |
| Benchmark | Unlimited | SEK 122.0 billion | 3.5 years |
| Medium Term Covered Note | SEK 30 billion | SEK 6.3 billion | 6.7 years |
| Euro Medium Term Covered Note | EUR 5 billion | SEK 35.7 billion | 4.0 years |
| Total | SEK 163.0 billion | 3.8 years |
|
Risks and Capital Adequacy
Länsförsäkringar Hypotek applies the Internal Ratings Based (IRB) approach. The Foundation IRB Approach is applied to household risk exposure and for counterparty exposures to corporates and the agricultural sector up to SEK 5 M.
The Foundation IRB Approach is applied for counterparty exposures to corporates and the agricultural sector above SEK 5 M. The Standardised Approach is applied to other exposures.
As of December 31, 2018
- Core Tier 1 and Tier 1 capital amounted to SEK 11,291 M
- Core Tier 1 and Tier 1 ratio was 18.3%
- Capital base amounted to SEK 11,952 M
- The total capital ratio 19.4%
Cover Pool
Collateral comprises only private homes, including single-family homes, tenant-owned apartments and, to a marginal extent vacation homes. Lending only takes place in Sweden and the geographic distribution in Sweden is well-allocated. All lending is in SEK and all foreign currency is swapped to SEK.
Länsförsäkringar Hypotek gives information in accordance with the ECBC "The Covered Bond Label", a common standard for increased transparency in the European covered bond market.
Corporate Governance
Board of Directors
- Sven Eggefalk Chairman, born 1969. Board member since 2018.
- Gert Andersson born 1959, Head of Product & Process. Board member since 2014.
- Christian Bille born 1962, President of Länsförsäkringar Halland and board member since 2010. Other Board appointments: Board member of Länsförsäkringar Bank AB and Länsförsäkringar Halland.
- Bengt Clemedtson born 1964, Head of Business at Länsförsäkringar Bank AB and Board member since 2009. Other Board appointments: Chairman of AB Superb Produkt.
- Göran Zakrisson, born 1953. External, board member since 2017.
Management
- Anders Borgcrantz born 1961, President
- Martin Rydin born 1968, CFO