10/27/2021 | 02:01am EDT
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SBAB Interim Report January-September 2021
SBAB's Interim Report January-September 2021 is now available for download on www.sbab.se/IR. Q3 2021 (Q2 2021)
-- Total lending increased 2.2% to SEK 451.3 billion (441.7). -- Net interest income fell to SEK 1,025 million (1,031), mainly driven by lower interest-rate margins onmortgage lending. -- Operating profit was essentially unchanged compared with the previous quarter and amounted to SEK 662million (663) since income and expenses were on a par with the previous quarter. -- Net credit losses remained low and amounted to recoveries of SEK 5 million (loss: 4). -- The return on equity was 11.0% (11.3), the C/I ratio amounted to 34.8% (35.5) and the C/L ratio to 0.31%(0.33). Financial information
2021  2021    2021    2020                                                  Q3    Q2      Jan-Sep Jan-SepTotal lending, SEK bn                             451.3 441.7   451.3   412.3Total deposits, SEK bn                            140.6 138.1   140.6   133.9Net interest income, SEK million                  1,025 1,031   3,097   2,737Net result of financial transactions, SEK million -32   -21     -68     -49Expenses, SEK million                             -351  -366    -1 040  -933Credit losses, SEK million                        5     -4      10      -34Operating profit, SEK million                     662   663     2,053   1,742Return on equity, %                               11.0  11.3    11.7    10.8C/L ratio, %                                      0.31  0.33    0.32    0.31C/I ratio, %                                      34.8  35.5    33.7    34.4CET1 capital ratio, %                             13.3  13.1    13.3    12.7
CEO statement from Klas Danielsson:
The market climate for housing finance and housing services remained generally healthy through the third quarter. However, stiff competition intensified in the residential mortgage market, which dampened our market share trend despite relatively good volume growth. Nonetheless we continued to gain market share in property finance for multi-family dwellings. Housing market activity was high in the third quarter, with above normal turnover and continued rising housing prices. The coronavirus pandemic has led to increased demand for larger homes and housing being prioritized over other consumption. This has contributed to the very large housing price increases during the pandemic. We expect the next few quarters to be much calmer, with lower housing turnover and essentially stable housing prices now that most of the social restrictions have been lifted. Mortgage amortisation relief ended as of 1 September. When granting new loans, despite the relief, banks have been including the amortisation requirement and we believe that the removal of the relief will have a negligible effect on the temperature of the housing market. Financial performance remains strong
The third quarter operating profit of SEK 662 million was one of our best quarterly results to date and operating profit of SEK 2,053 million for the nine-month period January-September was our best ever. Overall, we posted strong lending growth in the nine-month period with new lending of SEK 75.8 billion and lending growth of SEK 28.4 billion. In September, our new lending for residential mortgages set a new single month record of SEK 6.7 billion. On 31 August, our market shares were relatively unchanged compared with the year end with 8.47% for residential mortgages, property loans on multi-family dwellings rose from 14.29% to 14.94% and property loans to tenant-owners' associations decreased from 10.06% to 9.92%. We have strong customer offerings in residential mortgages and property loans that provide good preconditions for continued growth and increasing market shares in the future. Margins have developed positively, driven by a favourable funding market with low borrowing costs. Moving forward, increasing competition in the residential mortgage market and a funding market characterised by the Riksbank reducing its mortgage bond purchases may adversely impact our margins. Our deposits continue to grow but have recently posted a lower growth rate relative to lending. Therefore, we will focus more on our deposit offering and on increasing deposit growth in the immediate future. Far too much money is being held in zero-interest savings accounts with the major banks, and we want to help change that. Housing search market
We are continuing to develop our customer offering in the housing and household finances ecosystem, and we are noting our users and customers using more of our services. One of our most important services in the ecosystem is the Booli housing search. The number of unique visitors per month to www.booli.se averaged around 1.5 million in the third quarter. Over the nine-month period, Booli's market position strengthened as it captured a larger share of the home search market traffic, due to Booli's collected offering of homes for sale being almost double that of Hemnet. The reason Booli has significantly more homes for sale depends on the structural changes over the past few years for housing listings - today, nearly half of all homes for sale are posted on estate agents' own websites under homes "coming soon". Booli reads and collects all these homes and displays them free of charge on booli.se. User numbers for Booli's market-leading home valuation service continued to grow and reached more than 600,000 monthly subscribers at the end of the third quarter. Digitalisation
Our technical infrastructure, which includes the banking systems, comprises a basic prerequisite for our digitalisation. Extensive efforts are ongoing with modernizing and replacing large parts of our technical infrastructure within the framework of our current IT strategy. A significant part of the IT strategy has been implemented and work will continue over the next few years. The expectations of our users and customers are evolving and changing in pace with the general increase in digitalisation. Simplicity and speed are self-evident. Our digital services and tools require continuous improvement and development. Housing transaction and mortgage cases are both complex, but this is no excuse and we always need to innovate, challenge and simplify. One good example is our Smart loan commitment. We've taken the standard loan commitment that is required for bidding on a home, and made it smart by enabling continuous and easy adjustment, adaptation and changes to be made by customers themselves, completely digitally. Capital requirement
In September, we received the Swedish FSA's (Finansinspektionen) decision on the increased own funds requirement for SBAB. The Swedish FSA's decision was based on the result of the completed
supervisory review and evaluation process (SREP). The total consolidated CET1 capital requirement was calculated as 9.2%, as compared with SBAB's CET1 capital ratio of 13.3% at the end of the third quarter 2021, which continues to provide us with a healthy margin in terms of external capital requirements and internal capital targets. Altogether, the risk-based CET1 capital requirement under Pillar 2 amounted to 2.19% and pertained to credit-related concentration risk, interest-rate risk in other operations, commercial properties and faults linked to internal models, of which the latter accounted for 1.21%. We have previously identified faults with our internal models used to cover capital requirements for credit risk and have therefore voluntarily applied an Article 3 surcharge on capital adequacy and in our reporting, and we have also completed efforts to update our internal ratings-based models. An application has been submitted for approval of the models. Our assessment is that the implementation of the updated models, following approval from the Swedish FSA, should rectify the identified faults and therefore lead to a lowered Pillar 2 requirement. A sustainable business
We are purpose-driven, and by applying the same goals for sustainability and steering our operations, we fully integrate sustainability into our operations. In parallel, the demands and expectations of our operating environment are evolving and sustainability regulations are increasing in number and scope. We use a gap analysis to ensure we continuously manage and operate our business sustainably at the pace and in the direction required. The gap analysis applies a stakeholder and materiality analysis based on what our operating environment and stakeholders consider material sustainability topics for SBAB. We conduct regular stakeholder and materiality analyses and update our gap analysis as well as set new targets. The gap analysis was updated in the third quarter. One of Europe's best workplaces
In September, we were named as one of Europe's best workplaces in the Large Organisations category by the global organization Great Place to Work. We came in at 28. This was the third consecutive year that SBAB qualified for inclusion in the list of Europe's best workplaces. Fantastic! Our strong corporate culture in combination with our values-driven way of working are key to our success as well as growing and developing our business. Being ranked as one of Europe's best workplaces confirms that. Each year, Great Place to Work surveys the workplace culture for 11.5 million employees in 90 countries. The ranking is based on a cultural assessment of how the company actively works to create an engaging corporate culture as well as on the results of an employee survey measuring engagement drivers. The very best organisations are then ranked in national lists. Sweden's best workplaces were named in the spring and, for the third consecutive year, SBAB was ranked fourth among Large Organisations. (MORE TO FOLLOW) Dow Jones Newswires
October 27, 2021 02:00 ET (06:00 GMT)

SBAB Bank AB (publ) : SBAB Interim Report January-September 2021

02/11/2021 | 02:01am EST
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Press release 11 February 2021SBAB Year-end report 2020SBAB's Year-end Report 2020 is now available for download on www.sbab.se/IR.Q4 2020 (Q3 2020)  ? Strong growth in total lending, which increased 2.5% to SEK 422.8 billion (412.3). Total deposits increased 1.3% to    SEK 135.7 billion (133.9). ? Net interest income grew 6.9% to SEK 1,010 million (945). ? Operating profit decreased 2.7% to SEK 619 million (636). ? Expenses grew to SEK 402 million (310), of which SEK 67 million derived from a write-down of tangible and    intangible assets. ? Net credit losses amounted to a recovery of SEK 2 million (recovery: 4). ? According to Swedish Quality Index (Svenskt Kvalitetsindex, SKI), SBAB had the most satisfied customers in Sweden    in 2020 in terms of residential mortgages to private individuals and property loans to corporates and    tenant-owners' associations.January-December 2020 (January-December 2019)  ? Strong growth in total lending, which increased 10.2% to SEK 422.8 billion (383.8). Total deposits increased 4.0%    to SEK 135.7 billion (130.5). ? Operating profit grew 2.3% to SEK 2,361 million (2,308). Net interest income grew 7.9% to SEK 3,747 million    (3,473). ? Expenses grew to SEK 1,335 million (1,187), mainly driven by increased investments and a write-down of tangible and    intangible assets. ? Net credit losses were SEK 32 million (loss: 26). ? The return on equity was 10.8% (11.7). ? The Board proposes no dividend for the 2020 financial year. The proposal strengthens SBAB's capitalisation and    promotes continued growth as well as strengthens its position in terms of increased capital requirements in the    future. The Common Equity Tier 1 capital ratio increased to 13.4% (13.1).CEO statement from Klas Danielsson:The extremely noteworthy year of 2020 wrapped up with another strong quarter for SBAB. The coronavirus pandemiccharacterised most of the year with a major impact on areas like our work environment and our way of working. Acontributing factor in our positive operational trend was our ability to adapt and the incredible responsibility thateveryone at SBAB took during the year. We have the most satisfied residential mortgage customers for the secondconsecutive year and the most satisfied property loan customers for the third consecutive year. We continued to growand capture market shares within residential mortgages and property loans while we posted a positive financialperformance.A strong year that ended with a strong quarterThe year could be summarised as another in a long line of successful years for SBAB. In the journey to our vision, Ican note that we are continuing to achieve most of our annual goals in our three target areas - Responsibility andtransparency, Attractive workplace and Sound finances.In December, the Swedish Quality Index (Swe: Svenskt Kvalitetsindex (SKI)) announced that we once again have Sweden'smost satisfied customers in terms of residential mortgages and property loans. Fantastic results. Our residentialmortgage customers particularly value and appreciate our reliability, simplicity and value. Our property loancustomers, in the form of property companies and tenant-owners' associations, particularly value and appreciate ourreliability and service. We see a clear connection between our customers' satisfaction andSBAB's strong brand position as the considerate friend within household finances - with strong values likeresponsibility, sustainability, credibility, competence and consideration.During the quarter we resumed efforts to further strengthen and develop the SBAB brand by making household financesreally fun. Season three of our communication concept "Household finances are really fun" is underway, with humorousfilms that highlight the opportunities and challenges along the housing journey. Our communication also strengthensSBAB's position as one of the most well-known players in the increasingly competitive residential mortgage market.Competition in the residential mortgage market was intense last year. Nonetheless, our new lending for mortgages in thefourth quarter amounted to SEK 19.6 billion, one of our strongest quarters ever. During the year, our net residentialmortgage lending increased SEK 19.3 billion and our market share increased to 8.47% from 8.42%. We focused onstrengthening our customer offering by prioritizing our ecosystem of housing and householdfinances services for the different phases of the housing journey. We clearly integrated our services across Booli,HittaMäklare and SBAB through a shared graphic profile. During the fourth quarter we launched our unique and dynamicsmart loan commitment, where customers in search of new homes can easily adjust their loan needs to the housing marketand offering. Booli.se has Sweden's largest offering of homes for sale, which many housing customers are still unawareof. To that end, we carried out a marketing campaign for Booli during the fourth quarter that strengthened Booli'srecognition and number of users.The coronavirus pandemic showed that our focus on housing finance creates value for our corporate customers. In theseuncertain times, we have focused 100% on being accessible, providing service and opportunities for our corporatecustomers and tenant-owners' associations. This was greatly appreciated and helped us increase our lending tocorporate clients during the year from SEK 38.4 billion to SEK 54.2 billion, capturing a new lending market share of34%. Lending to tenant-owners' associations also had a strong year and our lending increased over our market share. Ourmarket shares increased from 11.23% to 14.29% for property companies and from 9.55% to 10.06% for tenant-owners'associations.A very different yearWhen it became clear during the first quarter that we were facing a pandemic, most pundits thought that the housingmarket would weaken and that housing prices would fall. But soon demand for housing recovered thanks to the stabilizingeconomic measures taken and the low residential mortgage interest rates. Instead, housing prices began to increase andsales of homes picked up speed, likely also driven by the demand for larger homes to ensure a better work environmentat home.Naturally, the housing market's resiliency and strength has been positive for SBAB. Record high new lending forresidential mortgages in December was a further indication of the housing market's strength. The low interest rate andcontinued measures from the Riksbankand the government make it likely that the housing market will remain stable and strong.Since March, a large number of us at SBAB have been working from home. Those of us who have direct contact with ourretail customers, primarily in customer service at our Karlstad office, need to work from the office. Banking secrecyand security are some of the practicalissues that affect our work environment and way of working, including the possibility of working from home. To reducethe risk of infection, we expanded our office space by renting two additional smaller independent offices in Karlstad.A values-driven companySBAB is a values-driven company. This is one of the reasons for our strong operational development and our success inmanaging SBAB and our customers so well during the pandemic. This year, we were ranked as Sweden's fourth and Europe'sfourteenth best workplace according to Great Place to Work. Our values-driven way of working is based on inclusion andwe strive to maintain a brisk pace. Inclusion creates preconditions for everyone to understand the bigger picture, takeresponsibility, make their own decisions, and drive and carry out initiatives. This creates tempo. During the year,everyone at SBAB took responsibility all the way, stepped up fantastically and met the challenges that needed to besolved. We have kept up a brisk pace and accomplished a lot despite all of the year's challenges, including a new wayof working with more working from home.The debate concerning remote working is intense and many are wondering how future work life will be affected and howoffices will develop. Working from home to better manage the work-life balance was starting to trend, in certain casesand jobs, even before the coronavirus pandemic took hold in society. Digitalisation and new communication tools createnew opportunities that will change and develop work environments and ways of working in new and positive ways. At thesame time, I think that several material issues tend to be minimised or forgotten entirely in the debate, like thebasic human need for solidarity to provide meaning and the motivation that comes with being part of a team at work.Over the long term, those working at home and those working at the office risk creating separate teams and subculturesat the company. Isolation and siloing affect our well-being, creativity and innovation negatively. We need spontaneousinteraction to develop. Corporate culture is governed and strengthened by growing through shared visual and verbalexperiences. Successfully onboarding new employees requires presence and continuity. In the short term, theseconsequences can go unnoticed at the workplace and in the company. Conversely: in the short term, working from home canbe a positive and efficient experience, since employees save on commuting time and can possibly work uninterrupted onpreviously planned tasks. In the long term, I think the consequences of the increased scope of working from home mightbe troubling for many people and companies. In 2021, we will have several discussions about what we learned from thisway of working during the coronavirus pandemic and how we can be an even better team, coordinated by our values.A purpose-driven companySBAB is also a purpose-driven company. This is another reason for our strong operationalperformance. Our purpose and our mission - to contribute to better housing and household finances - motivates us and
(MORE TO FOLLOW) Dow Jones Newswires
February 11, 2021 02:00 ET (07:00 GMT)

SBAB Bank AB (publ) : SBAB Year-end report 2020

Booli

Ethix SRI Advisors

Acando

Edge Consulting

Valtech

Linkoping University

Uppsala University

Advanta

Booli is a real estate search engine with a large selection of homes for sale, final prices and digital valuations. The company is based in Stockholm, Sweden.

Name	Firm	Work History	Other Seats
Charlotta Selin			Booli
Fredrik Strömqvist			Booli

Name	Charlotta Selin	Fredrik Strömqvist
Firm
Work History
Other Seats	Booli	Booli

Name	Work History	Title	Status
Mikael Arborelius	Ethix SRI Advisors, Acando, Edge Consulting, Valtech, and Linkoping University	Founder	Current
Mikael Halén	Uppsala University	Founder	Current
Patrik Söderberg	Uppsala University	Founder	Current
Sebastian Wickert		Chief Executive Officer	Current
Fredrik Zettergren	Advanta	Founder	Former

Name	Mikael Arborelius	Mikael Halén	Patrik Söderberg	Sebastian Wickert	Fredrik Zettergren
Work History	Ethix SRI Advisors, Acando, Edge Consulting, Valtech, and Linkoping University	Uppsala University	Uppsala University		Advanta
Title	Founder	Founder	Founder	Chief Executive Officer	Founder
Status	Current	Current	Current	Current	Former

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