SBAB Bank AB (publ)
SBAB Bank AB (publ): Interim Report January-March 2022
SBAB Bank AB (publ): Interim Report January-March 2022
Press Release 28 April 2022
SBAB Interim Report January-March 2022
SBAB’s Interim Report January-March 2022 is now available for download on www.sbab.se/IR.
Q1 2022 (Q4 2021)
Financial information
CEO statement from Mikael Inglander:
SBAB’s healthy business performance continued through the first quarter of the year and once again we have posted stable financial results and good volume growth. The outbreak of war in Ukraine dominated the quarter and gave rise to increased uncertainty and a deteriorating outlook.
Russia is continuing its invasion of Ukraine. The situation amounts to a humanitarian tragedy, which is causing tremendous human suffering. It is distressing that people are being forced to abandon homes and families; meanwhile, the economic consequences of the war are becoming increasingly apparent. The situation is unparalleled in modern times and impacts all of us – not least those of SBAB’s employees with close family ties to Ukraine. In addition to offering support and various external contributions, we also support our employees in helping new arrivals – for example, by allowing them to use their volunteer days for this purpose.
Continued strong lending trend 2022 had a challenging start. Rising inflation, the after-effects in the wake of the coronavirus pandemic and rising uncertainty in the fixed-income market have created a new reality for us to contend with. Even though it has been pushed into the background by other events, naturally, the crisis in Ukraine also entails some economic consequences, both globally and in Sweden. Sharp price rises have been noted in recent months for electricity, fuel and food. Electricity costs have started to be factored into new home purchases in some parts of the country (a factor we highlighted during the quarter, including in one analysis).
Sweden’s economy remains strong, however, and housing turnover and time taken to complete a sale remain at high levels. We are growing and capturing market shares. SBAB’s total lending increased to SEK 479 billion during the quarter. An increase of 3% on the previous quarter and up 10% year-on-year. Retail lending increased 2% in the quarter to a total of SEK 343 billion, of which SEK 341 billion comprised residential mortgages and SEK 2 billion consumer loans. Lending to corporates and tenant-owners’ associations continues to perform well and increased in the quarter, from SEK 130 billion at the start to SEK 136 billion at the end of the quarter. This corresponds to an increase of 5% on the previous quarter and a full 20% year-on-year. The growth is a clear signal that our customers appreciate the service we provide and our competitive offering.
Western central banks have clearly announced future increases in market interest rates, which has led to raised funding costs for us and other banks. Due to the above, we have raised mortgage rates for essentially all maturities during the quarter. Transparency and attractive terms and conditions represent central components of our customer offering and we continuously adjust our interest rates to reflect the prevailing market circumstances.
Stable financial performance despite rising uncertainty The underlying earnings trend for the quarter was good and profitability remained at a stable level. However, as a result of increased competition from new and existing mortgage providers, higher market interest rates and the introduction of the new risk tax, we believe that mortgage margins and therefore profitability may decline going forward. For SBAB, the tax alone entails an additional cost (reported together with the resolution fee on a separate line in the income statement) of about SEK 261 million in the current year and thereafter around SEK 332 million in 2023. SBAB has previously highlighted how inappropriate the new tax is since it risks creating unfair competition in the market and raising borrowing costs for households and companies. Costs developed as planned and amounted to SEK 358 million for the first quarter of the year. We are investing in new technology to enhance our customer offering and to increase cost efficiency in our operations. As previously communicated, my objective is for us to become even better at prioritising and reaching goals in various development and investment initiatives.
Finally, I would like to give my sincere thanks to all employees for performing so well during the quarter.
Mikael Inglander Acting CEO, SBAB
For more information, please contact: Douglas Norström, Head of Press, SBAB. Tel: +46 (0)73-027 19 65, E-mail: douglas.norstrom@sbab.se
File: SBAB Bank AB (publ)_Q12022_ENG |
Language: | English |
Company: | SBAB Bank AB (publ) |
Box 4209 | |
171 04 Solna | |
Sweden | |
Phone: | 08- 614 43 00 |
E-mail: | erik.wennergren@sbab.se |
Internet: | www.sbab.se |
ISIN: | DK0030034343 |
EQS News ID: | 1337555 |
SBAB Bank AB (publ)
/ 68 Quarterly report
Dissemination of a Swedish Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
End of Announcement | EQS News Service |