Landshypotek Bank (LHB) Q2 2025 earnings summary

Executive summary

• Market-leading, low-risk agriculture and forestry bank with 24% market share and sustainability integrated into strategy.

• Lending volumes grew by SEK 10 billion year-over-year, reaching SEK 115.7 billion, with SEK 2 billion growth in the last quarter, outpacing a cautious market.

• Profits are reinvested or returned to agriculture and forestry sectors.

• 99.8% of loan portfolio is first-lien mortgages; average LTV is 44%.

• Credit quality remains strong, with minimal credit losses and no net provisions or losses in Q2.

Financial highlights

• Net interest income for Q2 2025 was SEK 283m, up from SEK 268m in Q2 2024; H1 2025 net interest income was SEK 560m.

• Operating profit for Q2 2025 was SEK 128m, up from SEK 112m in Q2 2024; H1 2025 operating profit was SEK 252m.

• Total income for Q2 2025 was SEK 292m; total expenses increased to SEK 165m.

• Credit losses for Q2 2025 were SEK 0m; H1 2025 credit losses SEK 7m (0.03%).

• Loans to the public at period end were SEK 115.7bn, up from SEK 105.6bn year-over-year.

Outlook and guidance

• Focus on growth with new and existing customers, especially in retail (agriculture and residential), and further development of digital services.

• Continued integration of ESG risks into risk management and credit assessment.

• Ongoing development of transition financing for agriculture, forestry, and residential mortgage customers.

• Management remains cautious due to global and political uncertainty but expects continued growth based on a solid liquidity and capital base.

• Customers, especially in farming and forestry, are optimistic and planning further investments.