Highlights of Stadshypotek s Annual Report 2001

Transcription

1 12 February 2002 Press release Highlights of Stadshypotek s Annual Report 2001 Summary Operating profit continued to increase to SEK 4 543m, Stadshypotek s best result ever Expenses still falling due to continual efficiency gains Recoveries exceeded new loan losses Continued substantial growth in volume in the private market Increased market shares in both the private and the corporate market Property bidding on the Internet, is continually winning ground as a tool for estate agents in Sweden. This market place had had more than visits at the year-end Redemption of preference shares in Handelsbanken Hypotek Result The Stadshypotek Group's operating profit increased by SEK 421m to SEK 4 543m (4 122), the best result ever. Operating profit before loan losses increased by SEK 250m to SEK 4 350m (4 100). Operating income The SEK 164m increase in the group s net interest income to SEK 4 608m (4 444) is mainly due to increasing lending volumes and an improved lending margin through a continued shift toward lending in the private market. Net interest income has been affected negatively by reduced return on equity due to lower interest rates and decreased shareholders equity. Street address Mail address Phone Fax Stadshypotek AB (publ) Registered in: Stockholm Business org. no.: Kungsträdgårdsgatan 20 SE STOCKHOLM

2 2 Expenses Group expenses amounted to SEK 323m (377), a decrease of SEK 54m or 14%. partly due to continued efficiency gains. Not counting a write-back of pension surplus from SPP of SEK 18m in 2000, expenses decreased by SEK 72m or 18%. Expenses include the agent s commission which Handelsbanken Hypotek pays to Handelsbanken. Compared to the year before, these commissions decreased by SEK 58m as a consequence of the subsidiary's reduction of volume. Loan losses Recoveries exceeded net loan losses and were SEK 193m (-22), which corresponds to a loan loss ratio of 0.06% (-0.01). As at 31 December 2001, Stadshypotek s volume of bad debts before deduction of the reserve for possible loan losses amounted to SEK 2 717m (3 672). Of the bad debts, SEK 620m (656) were non-performing loans and SEK 2 097m (3 016) 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 reserve for possible loan losses the volume of bad debts was SEK 1 887m (2 599). Lending Lending to the general public was SEK 350bn (326) as at 31 December Of the increase in volume amounting to SEK 24bn, private market lending represented SEK 21bn and corporate lending SEK 3bn. At the end of 2001, a monthly increase in private market lending could be reported for the forty-first consecutive month. During 2001, the Stadshypotek group has increased its market shares in both the private market and the corporate market. The market share of the mortgage institutions lending to the general public was 31.1% (30.5) at the end of November 2001 measured by category of property. The market share in the private market was 30.5% (30.3) and in the corporate market 31.7% (30.8). - property bidding on the Internet - can be considered a contributing factor to the strong development in the private market. During 2001, more than 400 estate agents have been linked up to the service, more than properties have been available for bidding and more than bids have been submitted for these. By year-end, had had more than visits! Redemption of preference shares in Handelsbanken Hypotek As at 1 July 2002, the board of the subsidiary Handelsbanken Hypotek intends to redeem of the outstanding preference shares, pursuant to the articles of association and following the approval of the balance sheet and profit and loss account by the shareholders annual general meeting. The redemption amount is SEK 252.6m and is assessed to have only marginal impact on the capital adequacy of the Stadshypotek group.

3 3 Capital ratio As at 31 December 2001, the capital ratio was 10.8% (12.1). The lower capital ratio is mainly due to increased lending volumes. Stockholm, 12 February 2002 Claes Norlén Chief Executive

4 4 Profit and loss account Group Parent company Amounts in SEKm Change % Interest income Interest expense Net interest income Other operating income Total income General administrative expenses - Staff costs Other Depreciation according to plan Total expenses Profit before loan losses Loan losses, net 1) Operating profit Minority interests Appropriations Profit before taxes Taxes Net profit for the year ) Loan losses Individually valued claims This year s write-downs for actual loan losses Write-back of previous provisions for possible loan losses which are reported as actual loan losses in the period's accounts The year s write-down relating to possible loan losses Recovered from actual loan losses in previous years Write-back of provisions for possible loan losses which are no longer necessary The year s net expense for loan losses

5 5 Balance sheet Group Parent company 31 December SEK m SEK m SEK m SEK m Assets Lending to credit institutions Lending to the general public Tangible assets Other assets Total assets Liabilities and shareholders' equity Liabilities to credit institutions Deposits from the general public Issued securities etc Other liabilities and provisions Minority interest Subordinated liabilities Total liabilities Shareholders' equity Total liabilities and shareholders' equity The Group s bad debts 31 December SEK m SEK m Bad debts, gross Reserve for possible loan losses Bad debts, net Loans with reduced interest rate without a provision for possible loan losses 6 7 Total problem loans Problem loans before write-downs for possible loan losses Non-performing loans for which interest is reported as income

6 6 Derivative instruments 31 December 2001 Interest-rate Currency related related instruments instruments Fair Book Fair Book value, SEK m value, SEK m value, SEK m value, SEK m Positive values Negative values Stadshypotek uses derivatives in order to hedge against risks on its own balance sheet and therefore applies the deferral method of hedge accounting. This means that the book values stated here only express the accrued interest amounts on the instruments. The differences between the fair values of the derivatives and the book values correspond to equally large, but opposite, differences between the fair values and the book values of the items on the balance sheet which are hedged by the derivatives. Quarterly earnings for the Stadshypotek Group SEK m 2001:4 2001:3 2001:2 2001:1 2000:4 Interest income Interest expense Net interest income Other operating income Total income General administrative expenses Staff costs Other Depreciation according to plan Total expenses Profit before loan losses Loan losses Operating profit

7 7 Key Financial Figures and Ratios The Group Jan - Dec Jan - Dec Overall interest margin, % C/I ratio before loan losses, % C/I ratio after loan losses, % Loan loss level Proportion of bad debts, % Bad debt reserve ratio, % Return on shareholders' equity, % Capital ratio, % Tier 1 capital ratio, % Cash flow statement The Group Jan - Dec Jan - Dec Cash flow on operating activities Cash flow on investing activities 0 0 Cash flow on financing activities Cash flow for the year Liquid funds at beginning of period Cash flow for the year Liquid funds at end of period Publication dates for interim reports Jan-Mar 22 April 2002 Jan-June 20 Aug 2002 Jan-Sep 22 Oct 2002