Landshypotek Bank (LHB) Q1 2025 earnings summary

Executive summary

• Market leader in agriculture and forestry lending with a 24% share and a low-risk, sustainability-focused business model.

• Lending growth continued across all segments, with record-high interest in mortgages and a strong start to 2025 despite margin pressure and a turbulent environment.

• Profits are reinvested or returned to the agriculture and forestry sectors; CET1 buffer of 8.2% and leverage ratio of 5.5%.

• 99.8% of the loan portfolio is first-lien mortgages; average LTV is 43%; 99% of customers have personal liability.

• Operating profit for Q1 2025 was SEK 124 million, down from SEK 131 million year-over-year but up from SEK 97 million sequentially.

Financial highlights

• Net interest income increased slightly in Q1 2025 to SEK 277 million from SEK 275 million in Q1 2024; expenses remained stable.

• Credit losses negatively impacted net earnings by SEK 7 million in Q1 2025.

• Operating profit for Q1 2025 was SEK 124 million, down from SEK 131 million in Q1 2024.

• Total lending grew 8.2% year-over-year to SEK 113.7 billion; lending to agriculture up 4%, mortgage lending up 12%.

• Deposits from the public decreased to SEK 26.6 billion from SEK 28.5 billion year-over-year.

Outlook and guidance

• Focus on growing with new and existing customers, especially in retail (agriculture and residential).

• Continued integration of sustainability and ESG into strategy and risk management.

• Management expects continued opportunities for deposit growth due to market volatility and demand for secure savings.

• Ongoing development of transition financing and climate data collection from agricultural customers.

• The bank remains well-capitalized and liquid, with stable funding and strong demand for covered bonds.