Landshypotek Bank (LHB) Q4 2025 earnings summary

Executive summary

• Market leader in agriculture and forestry lending with a 24% market share and robust growth in both mortgage and farming lending, reinforcing a market-leading position in agricultural finance.

• Net profit for 2025 rose to SEK 502 million, driven by increased customer base, higher lending, and improved deposit margins.

• 99.8% of the loan portfolio is first-lien mortgages; average LTV is 44%; 99% of customers have personal liability.

• Profits are reinvested or returned to the agriculture and forestry sectors, supporting sustainable governance.

• Customer satisfaction remained high, with top rankings in the Swedish Quality Index for mortgage banks.

Financial highlights

• Net interest income increased in 2025 due to higher lending volumes, reaching SEK 1,158 million (1,124 in 2024).

• Total lending grew 7% year-over-year to SEK 118.2bn; lending to agriculture up 4%, mortgage lending up 15%.

• Operating profit for 2025 was SEK 502m, up SEK 13m from 2024.

• Credit losses for 2025 were SEK 14m (0.012%), up from SEK 3.7m in 2024, with actual losses limited to a few counterparties.

• Cost/income ratio remained stable at 0.53.

Outlook and guidance

• Focus on growing with new and existing customers, especially in retail (agriculture and residential), and expectation of increased market activity due to stabilizing interest rates and economic recovery.

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

• Continued investment in sustainability, efficiency improvements, new products, and digital services.

• Board adopted a new strategy in Q4 2025, with organizational changes effective February 2026 to support strategic goals.