Länsförsäkringar Hypotek: January – March 2020
”We can see that the conditions in the housing market have been impacted by the outbreak of COVID-19 given the far-reaching effects that the pandemic has had on society and the economy thus far. The housing market has been stable for a longer period, but there is a significant risk that new lock-in effects will be created in the market due to the macroeconomic climate. We are closely monitoring the situation and working together with the regional insurance companies to take action to ease the situation for affected customers. The financial performance of Länsförsäkringar’s mortgage lending operations was favourable during the quarter despite the circumstances. The credit quality of the mortgage portfolio remained very high and credit losses were unaffected and remained low. Despite the turbulence in the financial markets in the wake of the outbreak of COVID-19, the funding situation was favourable and the Swedish covered bond market has functioned well during the period”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.
The period in brief:
- Operating profit increased 11% to SEK 330.1 M (297.9) and the return on equity strengthened to 8.3% (8.1).
- Net interest income rose 4% to SEK 654.7 M (631.5).
- Credit losses amounted to SEK 1.6 M (–0.4), net, corresponding to a credit loss level of 0.00% (–0.00).
- Lending increased 8% to SEK 243.4 billion (225.9).
- The Common Equity Tier 1 capital ratio amounted to 18.1% (18.2*) on 31 March 2020.
- Länsförsäkringar remains one of the players on the market with the most satisfied retail mortgage customers according to the 2019 Swedish Quality Index customer satisfaction survey.
Figures in parentheses pertain to the same period in 2019.
* Pertains to 31 December 2019.
Read more
https://www.lansforsakringar.se/financial-hypotek/
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. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 28 April, 2020.
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.