Landshypotek Bank (LHB) investor relations material

Executive summary

• Market leader in agriculture and forestry lending with a 23% share, focusing on sustainability and reinvesting profits into the sector.

• Lending and deposits grew during a cautious market, highlighting the appeal of the customer offering and supporting continued investment in new products and market expansion.

• Strategic focus remains on lending to farming and forestry, with resilience in the sector despite global uncertainties and margin pressure.

• Fitch upgraded the long-term credit rating to A+, reflecting strong balance sheet and pioneering green bond initiatives.

Financial highlights

• Net interest income for H1 2026 was SEK 597 million, up from SEK 580 million year-over-year; Q2 2026 net interest income also rose compared to Q2 2025, driven by higher deposit margins and increased lending.

• Loans to the public reached SEK 119.3 billion, up from SEK 115.7 billion year-over-year; total lending grew 7% YoY to SEK 118.2bn.

• Operating profit for H1 2026 was SEK 240 million, down from SEK 252 million; Q2 2026 operating profit was SEK 111m, down from SEK 128m in Q2 2025.

• Net profit for Q2 2026 was SEK 88m, down from SEK 100m; expenses increased year-over-year, partly due to strategic initiatives and imposed fees.

• Net credit losses negatively impacted earnings by SEK -7m for H1 2026 and SEK -5m in Q2 2026.

Outlook and guidance

• Continued focus on growing with new and existing customers, especially in retail (agriculture and residential), and expanding customer value and market reach.

• Strategic initiatives aim for higher profitability and efficiency, with continued investment in product development.

• Plans to increase green bond issuance by 50% by 2030 from 2024 levels.

• Lending growth expected to remain limited by margin pressure and economic uncertainty.