Interim report 1 January – 30 June 2014: Volume growth and stronger profits

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| Source: SBAB
SBAB’s CEO, Per Anders Fasth, comments:

SBAB’s operating profit, which continued to grow stronger in the second quarter
of the year, amounted to SEK 502 million. Return on equity amounted to 14.3%,
exceeding the 10% target.

Positive volume growth
The lending business remained affected by strong competition in the market, but
SBAB still experienced positive volume growth in the quarter. New lending to
households rose, while new lending to companies and tenant-owner associations
were in line with the previous quarter. SBAB’s total lending amounted to SEK 259
billion at midyear. During the period, SBAB adapted its residential mortgage
product according to the Swedish Bankers’ Association’s recommendation regarding
individual repayment plans, which entered into effect on 1 July.

The second quarter was also characterised by continued stable growth in
deposits, which now amount to SEK 55 billion.

Positive information from Moody’s
Early in the year, the rating agency Moody’s initiated a review of SBAB’s
rating, which could have resulted in a potential downgrade. The review was
finalised in June, whereupon the current long- and short-term ratings were
confirmed by Moody’s.

New CEO in August
In June, the Board of Directors made a decision on the appointment of new CEO of
SBAB. I therefore welcome Klas Danielsson, who begins his new role on 14 August.

Second quarter of 2014 compared with the first quarter of 2014

  · Operating profit totalled SEK 502 million (340)
  · Profit, excluding net result from financial instruments, amounted to SEK 273
million (258)
  · Net interest income amounted to SEK 514 million (496)
  · Expenses totalled SEK 219 million (219)
  · The net effect of loan losses amounted to a gain of SEK 20 million (gain 1)
  · Return on equity was 14.3% (10.8), and 8.4% (8.2) excl. net result from
financial instruments
  · The Common Equity Tier 1 capital ratio, without transitional rules, amounted
to 23.5% (22.6)
  · New lending for the quarter amounted to SEK 11.7 billion (9.5) and the total
lending volume was SEK 259.0 billion (258.0)
  · New deposits for the quarter amounted to SEK 3.5 billion (6.1) and the total
volume of deposits was SEK 55.5 billion (52.0)

January–June 2014 compared with January–June 2013

  · Operating profit totalled SEK 842 million (584)
  · Profit, excluding net result from financial instruments, amounted to SEK 531
million (620)
  · Net interest income amounted to SEK 1,010 million (1,040)
  · Expenses totalled SEK 438 million (396)
  · The net effect of loan losses amounted to a gain of SEK 21 million (gain 29)
  · Return on equity was 12.6% (10.7), and 8.4% (10.7) excl. net result from
financial instruments
  · The Common Equity Tier 1 capital ratio, without transitional rules, amounted
to 23.5% (23.8)

SBAB’s interim report is available for download from: www.sbab.se/investor
For further information, please contact:
Per Anders Fasth, CEO
Telephone: +46 8-614 43 01, per.anders.fasth@sbab.se

Adrian Westman, Head of Corporate Communications
Telephone: +46 735 09 04 00, adrian.westman@sbab.se

 (adrian.westman@sbab.se)
SBAB’s business concept is to provide a new banking experience to consumers in
Sweden by treating every customer as unique and being the bank that is easiest
to access and understand. Today, savings and loans services are offered to
private individuals, tenant-owner associations and companies. SBAB was founded
in 1985 and is owned by the Swedish state. SBAB has about 350,000 customers and
some 480 employees. Read more at www.sbab.se/2/in_english.