Länsförsäkringar Hypotek: January – September 2021
"Länsförsäkringar Hypotek continued to perform positively and we can report strong operating profit for the period. Growth in lending volumes is continuing and we are still capturing larger shares of new mortgage lending compared with our market shares, largely thanks to the outstanding work performed locally by the regional insurance companies. Loss allowances remain at very low levels and we can state that credit quality has mostly been unaffected throughout the COVID-19 pandemic. High competition remains a feature of the mortgage market, with many players capturing larger shares of new lending. The housing market performed strongly during the pandemic and the price trend has reached record-breaking levels despite a cautious price trend for a couple of months in the summer. The strong performance can partly be explained by expectations of low interest rates for a long time. The underlying problem of a poorly functioning housing market and the imbalance between supply and demand for housing remain areas for which there are no clear initiatives, but it is probably also one of the reasons behind the price increase”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.
The period in brief:
- Operating profit increased 3% to SEK 1,064 M (1,029) and the return on equity amounted to 8.2% (8.4).
- Net interest income rose 3% to SEK 2,005 M (1,950).
- Credit losses amounted to SEK –3.8 M (1.9), net, corresponding to a credit loss level of –0.00% (0.00).
- Lending increased 8% to SEK 273.6 billion (253.3).
- The Common Equity Tier 1 capital ratio amounted to 18.6% (18.3*) on 30 September 2021
Figures in parentheses pertain to the same period in 2020.
* Pertains to 30 June 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
Stefan Karkamanis, Investor Relations, Länsförsäkringar Bank AB,
+46 (0)8-588 402 90, +46 (0)72-310 00 80
This report contains such information that Länsförsäkringar Hypotek AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 27 October 2021 at 12:00 a.m. CET.
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.