Landshypotek Bank (LHB) investor relations material

Executive summary

• Lending reached SEK 120.8bn, up from SEK 116.5bn a year earlier; credit quality remained very good, with low credit losses.

• Specialist lending in agriculture and forestry is supported by 99.9% first-lien mortgages, 44% average LTV and personal liability from 99% of those customers.

• Total credit losses since 1985 were SEK 384m, a 0.026% average annual loss rate; covered-bond funding carries an AAA rating.

• Strategy focuses on specialist lending and savings, growing the customer offering and maintaining credit quality.

Financial highlights

• Q3 net interest income was SEK 289m, up SEK 2m YoY and down SEK 15m QoQ; higher deposit margins supported the YoY increase.

• Q3 total income was SEK 299m versus SEK 296m YoY; expenses were SEK 142m versus SEK 134m.

• Q3 operating profit was SEK 143m versus SEK 111m in Q2; net profit was SEK 113m versus SEK 88m QoQ and SEK 116m a year earlier.

• Jan–Sep net interest income was SEK 886m versus SEK 867m; operating profit was SEK 382m versus SEK 399m and net profit SEK 302m versus SEK 313m.

• Jan–Sep expenses were SEK 481m versus SEK 453m; net credit losses reduced earnings by SEK 12m versus SEK 10m.

Outlook and guidance

• Priorities include strengthening agriculture and forestry leadership, growing core retail segments, and improving profitability and efficiency.

• Green funding target is 50% growth by 2030 from SEK 11.5bn in 2024; green bonds for sustainable forestry and agriculture totaled SEK 12.4bn.

• Lending portfolio climate target is net zero by 2045; climate risk and transition plans are integrated into business planning, risk management and customer engagement.

• Final-quarter focus: continued lending growth, preserving credit quality and converting progress into a stronger customer offering.