Interim report. a Svenska Handelsbanken company JANUARY JUNE Lending increased to SEK 427bn (400).

Transcription

1 Interim report JANUARY JUNE Lending increased to SEK 427bn (400). Operating profi t was up by SEK 52m to SEK 2,680m (2,628). Net interest income rose by SEK 47m to SEK 2,679m (2,632). Expenses decreased by SEK 6m to SEK 69m (75). Recoveries exceeded new loan losses for the period Bond loans issued with maturities up to 12 years a Svenska Handelsbanken company

2 Stadshypotek s Interim report Profits continue to grow Operating profit was SEK 2,680m (2,628), a rise of 2%. Operating profit for the second quarter was SEK 1,318m (1,272), an increase of 4% compared with the corresponding quarter in the previous year. The improvement in profits is mainly due to higher income and lower expenses. Return on equity was 17.3% (16.5). Higher income Income increased by 3% to SEK 2,694m (2,607). Of the total increase in income of SEK 87m, SEK 47m was net interest income and SEK 40m was Net gains/losses on items at fair value. The increase in net interest income to SEK 2,679m, (2,632) is due to higher lending volumes and an increased proportion of private market loans, which could compensate for pressure on margins due to a continued tough competitive situation. Net interest income has been negatively impacted by reduced shareholders equity and by lower interest rates. Net gains/losses on items at fair value is in its entirety due to the new accounting standards according to IAS39. Lower expenses and low loan losses Expenses, excluding loan losses, were down 8% and amounted to SEK 69m (75). Staff costs decreased by 10% and other administrative expenses by 8%. Recoveries exceeded new loan losses and the net amount recovered was SEK 55m (96), and thus the loan loss ratio was -0.03% (-0.05) of lending. As at, Stadshypotek s bad debts before deduction of the provision for probable loan losses amounted to SEK 839m (1,106). Of the bad debts, SEK 98m (211) were non-performing loans and SEK 741m (895) were loans on which the borrowers pay interest and amortisation but which are considered doubtful in view of the borrowers repayment capacity and due to uncertainty as to the value of the collateral. After deduction of the provision for probable loan losses, the volume of bad debts was SEK 627m (813). Growth in lending Loans to the public were SEK 427bn, an increase of 27bn compared to the same period in the previous year. The whole increase was attributable to private market loans. Since yearend, loans to the public have increased by SEK 14m. Increased funding opportunities During the spring, Stadshypotek has issued new bonds loans with maturities up to 12 years. The longest maturity issued until then was 5 years. This satisfies the increased demand from borrowers for longer interest rate fixing periods and also meets investors wishes for longer-term investment alternatives. Capital ratio As at, the capital ratio was 8.9% (8.7). As at 31 December, the capital ratio was 8.1%. The increase is due to a debenture loan for SEK 3,500m raised in January. Rating Stadshypotek s rating was unchanged. Stadshypoteks rating Long-term Short-term Moody s Aa1 P1 Standard & Poor s AA- A-1+ Other disclosures The accounts comply with the IASB accounting standards adopted by the EU. In addition to these standards, the Finansinspektionen s accounting regulations and the provisions of the Annual Accounts Act for Credit Institutions and Securities Companies (ÅRKL) make additional disclosure requirements. The interim report is adapted to these. Stockholm August 23, Claes Norlén Chief executive This interim report has not been examined by the company s auditors.

3 Profi t and loss account Group Change % Full year Interest income % Interest expense % Net interest income % Net gain/losses on items at fair value Comission income % 12 Comission expense % -65 Total income % General administrative expenses Staff costs % -20 Other % -130 Depreciation according to plan Total expenses % -150 Profit before loan losses % Loan losses, net Note % 170 Operating profit % Taxes % Net profit for the period % Net earnings per share, SEK Note 1 Loan losses Specific provision for individually assessed loan receivables The period s write-down for actual loan losses Writeback of previous provisions for probable loan losses reported as actual loan losses in the period s accounts The period s provision relating to probable loan losses -4-8 Recovered from actual loan losses in previous years Write-back of provisions for probable loan losses which are no longer necessary Net expense for the period for individually assessed loan receivables INTERIM REPORT JANUARY JUNE

4 Balance sheet Group Assets Lending to credit institutions Loans to the public Note Tangible assets Other assets Total assets Liabilities and shareholders equity Liabilities to credit institutions Issued securities etc Other liabilities and provisions Total liabilities Shareholders equity Note Total liabilities and shareholders equity Note 2 Loans to the public by sector Lending before deduction of provisions Provisions for probable loan losses Lending after deduction of provisions Household Municipalities Housing co-operatives Other legal entities Total lending to the general public Bad debts and/or non-performing loans, by sector Bad debts of which non-performing Book value* Book value* Provisions Non-performing loans which are not included in bad debts Household Municipalities Housing co-operatives Other legal entities Total * With account taken of provisions.the reserved amount for probable losses refers to a specific provision for individually assessed receivables. Note 3 Change in shareholder s equity Opening shareholder s equity Group contribution Tax on paid group contribution Net impact of changeover to measuring at fair value according to IAS Profit for the year Closing shareholder s equity INTERIM REPORT JANUARY JUNE

5 Cash fl ow statement Cash flow on operating activities Cash flow on investing activities 0 0 Cash flow on financing activities Cash flow for the period Liquid funds at beginning of period Cash flow for the period Liquid funds at end of period Derivatives Interest-rate related instruments Currency-related instruments Fair value Book value Fair value Book value Positive values Negative values Stadshypotek uses derivatives in order to hedge against risks on its own balance sheet. Quarterly performance Q2 Q1 Q4 Q3 Q2 Interest income Interest expense Net interest income Net gain/losses on items at fair value Net operating income Total income General administrative expenses Staff costs Other Depreciation according to plan Total expenses Profit before loan losses Loan losses Operating profit INTERIM REPORT JANUARY JUNE

6 Key fi gures Full year Overall interest margin, % C/I ratio before loan losses, % C/I ratio after loan losses, % Loan loss ratio, % Proportion of bad debts, % Bad debt provision ratio, % Return on shareholders equity, % Capital ratio, % Tier 1 capital ratio, % Parent Company Net turn over for the period was 2,694 m (2,607). Profit before appropiations and tax was 2,680 m (2,628). TREND FOR LENDING 31 March Lending to credit institutions Loans to the public Total TREND FOR BORROWING 31 March Liabilities to credit institutions Issued securities Total a Svenska Handelsbanken company Stockholm, Telephone , Stadshypotek Photos: Johnér bildbyrå