FINANCIAL PERFORMANCE January - June 2012 compared with January - June 2011 For the period January to June 2012, operating profit increased by SEK 1,063 million to SEK 3,876 million (2,813). Net interest income amounted to SEK 3,937 million (2,921), with the branch in Norway accounting for SEK 280 million (198), the branch in Denmark accounting for SEK 51 million (39) and the branch in Finland, which was established on 1 May 2011, accounting for SEK 107 million (1). Excluding these branches, net interest income thus increased by SEK 816 million. The increase in net interest income is due to an increase in lending volume and to improved margins due to the company's good position in the funding market. Net gains/losses on financial items at fair value amounted to SEK 75 million (1). Expenses rose by SEK 8 million to SEK 132 million (124), primarily due to increased IT expenses related to the branch in Finland. Net loan losses were SEK 0 million since new loan losses during the period were offset by recoveries. During January to June of the previous year, recoveries exceeded new loan losses and the net amount recovered was SEK 21 million. Before deduction of the provision for probable loan losses, the volume of impaired loans was SEK 98 million (85). Of this amount, non-performing loans accounted for SEK 62 million (51), while SEK 36 million (34) related to loans on which the borrowers pay interest and amortisation, but which are nevertheless considered impaired. There were also non-performing loans of SEK 995 million (753) that are not classed as being impaired loans. After deductions for specific provisions totalling SEK -40 million (-33) and collective provisions of SEK -6 million (-5) for probable loan losses, impaired loans totalled SEK 52 million (47). Q2 2012 compared with Q1 2012 Stadshypotek's operating profit for the second quarter of 2012 decreased by SEK 12 million to SEK 1,932 million (1,944). However, net interest income increased by SEK 21 million to SEK 1,979 million (1,958). SEK 164 million (116) of the net interest income was attributable to the branch in Norway, SEK 28 million (23) to the branch in Denmark and SEK 59 million (48) to the branch in Finland. The increase in net interest income at the branches outside Sweden was mainly due to improved margins. Excluding these branches, net interest income went down by SEK 43 million, which was mainly due to a slightly higher funding cost. Net gains/losses on financial items at fair value amounted to SEK 19 million (56). Expenses were unchanged at SEK 66 million (66). GROWTH IN LENDING During the period, loans to the public increased by SEK 13 billion (36) to SEK 857 billion. CAPITAL ADEQUACY The capital ratio according to Basel II was 60.4 per cent (60.7) while the Tier 1 ratio calculated according to Basel II was 44.0 per cent (41.4). Further information on capital adequacy is provided in the 'Capital base and capital requirement' section on page 15. RATING Stadshypotek's rating remained unchanged during the period, with a stable outlook. ----------------------------------------------------- Stadshypotek Covered bonds Long-term Short-term ----------------------------------------------------- Moody's Aaa - P-1 Standard & Poor's AA- A-1+ Fitch AA- F1+ Stockholm, July 17 2012 Per Beckman Verkställande direktör [HUG#1627217]
Stadshypotek's interim report January - June 2012
| Source: Stadshypotek AB
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